The Art of Leadership and Supervision Version 1.1 145339155X, 9781453391556

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The Art of Leadership and Supervision Version 1.1 Laura Portolese, Phil Upperman, and Bob Trumpy

978-1-4533-9155-6 © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

The Art of Leadership and Supervision Version 1.1 Laura Portolese, Phil Upperman, and Bob Trumpy

Published by: FlatWorld 292 Newbury Street Suite #282 Boston, MA 02115-2832 © 2018 by Boston Academic Publishing, Inc. d.b.a. FlatWorld All rights reserved. Your use of this work is subject to the License Agreement available at https://catalog.flatworldknowledge.com/legal. No part of this work may be used, modified, or reproduced in any form or by any means except as expressly permitted under the License Agreement. Gen: 202201242204 © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

Brief Contents Author Bios Acknowledgments Dedications Preface Chapter 1

Introduction to Leadership, Management, and Followership

Chapter 2

Developing Interpersonal Skills for Success

Chapter 3

Leadership Theories and Styles

Chapter 4

Building Teams, Adaptive and Situational Leadership, and Leadership Power

Chapter 5

The Leader’s Responsibility for Setting Organizational Direction

Chapter 6

Developing Employees as Followers

Chapter 7

Motivation as a Responsibility of Leadership

Chapter 8

Effective Decision Making

Chapter 9

The Ethical Leader

Chapter 10

Operational Leadership Considerations

Chapter 11

Intervening and Aiding Employees with Performance Issues

Chapter 12

Leading Change

Chapter 13

The Leadership Development Process

Index

© 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

© 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

Contents Author Bios

1

Acknowledgments

3

Dedications

5

Preface

7

Chapter 1

Chapter 2

Introduction to Leadership, Management, and Followership

9

1.1

Defining Moments

1.2

Introduction to Leadership

10

1.3

Leadership

11

Defining Leadership: A Baseline

12

Leadership Art and Managerial Science

13

Leadership Charisma

17

1.4

Management

24

Distinction between Leadership and Management

24

1.5

Followers

27

Defining the Employee and Subordinate

27

1.6

Chapter Summary and Case

29

1.7

Endnotes

31

Developing Interpersonal Skills for Success

33

2.1

Getting Defensive to Prove Your Superiority or to Expose Your Insecurity?

33

2.2

Personality Types and Leadership Traits

34

The Big 5

36

Emotional Intelligence

39

The MBTI

40

Single- and Double-Loop Learning

42

Single- versus Double-Loop Learning

43

2.4

Chapter Summary and Case

46

2.5

Endnotes

46

2.3

Chapter 3

9

Leadership Theories and Styles

49

3.1

Power and Leadership

49

3.2

Leadership Theories

49

Approaches to Leadership Theory

51

3.3

Leadership Styles

62

Autocratic Leadership

62

Charismatic Leadership

63

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Democratic/Participative Leadership

67

Inspirational Leadership

68

Laissez-Faire Leadership

68

Servant Leadership

69

Transactional Leadership

70

Transformational Leadership

71

3.4

Chapter Summary and Case

75

3.5

Chapter 3 Appendix

76

Summing Character Behavioral and Cognitive Leadership Performance: Values, Attributes, and Skills Assessment

76

Organizational Values

78

Skills

79

Traits

80

Endnotes

82

3.6

Chapter 4

Building Teams, Adaptive and Situational Leadership, and Leadership Power Building Teams

84

Creating a Leadership Climate for Team Building

84

The Team Structure the Leader Inherits

85

The Formation Stage

88

The Enrichment Stage

90

The Sustainment Stage

92

4.2

Adaptive and Situational Leadership

97

4.3

Power in Leadership

103

Elements of Personal Power

104

Elements of Position Power

105

Leader Power: A Privilege or Right?

109

The Leader-to-Follower Power Gap

109

Preventing the Abuse of Power

109

Leader and Management Power: Two Views

110

The Politics of Power

111

4.4

Chapter Summary and Case

113

4.5

Endnotes

116

4.1

Chapter 5

83

The Leader’s Responsibility for Setting Organizational Direction

117

5.1

Communicating a Direction

117

5.2

Introduction to Vision, Mission, and Overarching-Goal (Intent) Statements

118

5.3

Vision Statement

121

The Nature and Role of a Vision Statement

122

The Vision Statement Development Process

123

Mission Statements

130

The Nature and Role of Mission Statements

130

Describe the Mission Analysis Process

132

Components of the Mission Statement

133

Writing and Evaluating Mission Statements

134

5.4

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Intent Statement

138

Leader’s Intent Defined and Purpose

139

Leader’s Intent Development Process

140

5.6

Chapter Summary and Case

142

5.7

Endnotes

143

5.5

Chapter 6

Developing Employees as Followers 6.1

The Interview

145

6.2

Hiring

145

Criteria Development

146

Application and Résumé Review

147

Interviewing

149

Test Administration

153

Making the Offer

155

Attaining a Leadership Position

156

Hiring and Union Considerations

157

Training

159

Employee Orientation

159

In-House Training

160

Mentoring

161

External Training

162

Training Program Framework Development

162

Career Development Programs and Succession Planning

164

6.4

Chapter Summary and Case

165

6.5

Endnotes

168

6.3

Chapter 7

145

Motivation as a Responsibility of Leadership 7.1

7.2

169

Human Motivation at Work

169

Theories on Job Dissatisfaction

170

Theories on Human Motivation

171

Sources of Employee Satisfaction and Motivation Data

174

Strategies Used to Increase Motivation

177

Salaries and Benefits

178

Training and Development

178

Performance Appraisals

178

Succession Planning

179

Flextime, Telecommuting, and Sabbaticals

179

Leader-Member Exchange

180

Management Training

180

Conflict Management, Morale, and Fairness

181

Job Design, Job Enlargement, and Empowerment

181

Create a Compelling Company Culture

182

Pay-for-Performance Strategies

182

Effective Delegation

183

Other Ways to Motivate

184

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Chapter 8

7.3

Chapter Summary and Case

186

7.4

Endnotes

187

Effective Decision Making 8.1

Social Media Blues

189

8.2

Decision-Making Models

190

Ethical Priorities in Decision Making

190

Procedural Justice and Distributive Justice

191

Rational Decision-Making Model

191

Edward de Bono’s Six Thinking Hats

193

Intuitive Decision Making

195

Vroom-Jago Decision Model

195

Assessment Model

197

A Closer Look at the Seven Factors

197

Faulty Decision Making

200

Overconfidence Effect

201

Framing Bias

201

Illusion of Control

202

Sunk Cost Bias / Escalation of Commitment

202

Status Quo Bias

203

Team Decision Making and Change

204

Team Decision-Making Challenges

204

Kotter’s Eight Stages of Change

205

Groupthink

206

Avoiding Groupthink

207

Communicating the Decision

208

8.5

Chapter Summary and Case

209

8.6

Endnotes

210

8.3

8.4

Chapter 9

189

The Ethical Leader

211

9.1

Unethical or the “Way We Do Business”?

211

9.2

An Ethics Framework

212

What Are Ethics?

212

Levels of Ethics: An Organizational Framework

212

Sources of Personal Ethics

214

Sources of Company Ethics

216

Making Ethical Decisions

221

The Twelve Questions Model

222

Josephson Institute of Ethics Model

224

Steps to Ethical Decision Making

225

Philosopher’s Approach

227

9.4

Social Responsibility

229

9.5

Chapter Summary and Case

233

9.6

Endnotes

234

9.3

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Chapter 10

Operational Leadership Considerations 10.1 Hiring Multiculturally

237

10.2 Company Culture

237

10.3 Diversity and Multiculturalism

239

Power and Privilege

10.4 Employee Law

242 242

EEOC Federal Legislation

243 248

Job Protection Rights

248

Privacy Rights

249

Labor Unions

251

10.6 Stress

252

10.7 Power Positioning and Power Sources

258

10.8 Chapter Summary and Case

261

10.9 Endnotes

263

Intervening and Aiding Employees with Performance Issues 11.1 Handling Performance

265 265

Types of Performance Issues

265

What Influences Performance?

267

Defining Discipline

267

Performance Issue Model

268

Investigation of Performance Issues

269

Options for Handling Performance Issues

270

Employee Separation

273

Rightsizing and Layoffs

274

11.2 Performance Evaluations

Chapter 12

239

Equal Employment Opportunity Commission (EEOC)

10.5 Understanding Employee Rights

Chapter 11

237

276

Performance Appraisal Process

276

Best Practices in Performance Appraisals

281

Improvement Plans

283

11.3 Chapter Summary and Case

285

11.4 Endnotes

286

Leading Change

287

12.1 Change at the Fruit Warehouse

287

12.2 What Is Change?

287

What Is Change?

288

Outcomes of Poor Change Management

291

Change Management

291

12.3 Change Process

294

Kotter’s Change Model

294

Lewin’s Model

295

Beer and Nohria’s Model

297

12.4 Guidelines for Change Implementation

© 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

299

Chapter 13

12.5 Chapter Summary and Case

304

12.6 Endnotes

305

The Leadership Development Process

307

13.1 A Shining Star

307

13.2 Personal Leadership Plans

307

Applying the Self-Assessment Phase

308

Application of Self-Assessment

309

Goal-Setting Phase

309

Reflection Phase

315

13.3 Career Growth: Impression Management

316

Introductions

316

Dining Out

317

Clothing

319

Technology

319

Reputation Management

320

General Etiquette for Career Success

321

13.4 Continual Learning and Feedback

322

13.5 Chapter Summary and Case

332

13.6 Endnotes

334

Index

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335

Author Bios

Laura Portolese Dr. Laura Portolese holds a master’s of business administration from City University and a doctorate of business administration from Argosy University. This is Laura’s third book with FlatWorld. Previous books included Human Resource Management, Human Relations, Consumer Behavior Today. She has previously published two books with McGraw-Hill. Laura has been published in the Journal of Online Educators and the Journal of Fashion Marketing and Management and has presented “Baby Boomers: A Study in Their Buying Behaviors” to the Marketing Management Association. Laura has also written case studies for DECA (Distributive Education Clubs of America) competitions and written numerous supplemental materials for management and customer service textbooks. Laura is an associate professor at Central Washington University in the Department of Information Technology and Administrative Management. Before becoming a professor, Laura worked for several small and large organizations in management and operations. She is also an entrepreneur who has performed management and consulting work for companies such as Microsoft.

Dr. Phil Upperman Dr. Phil Upperman has more than thirty-five years of experience as a leader and staff officer as well as a lecturer, trainer, and instructor at midmanagement and leadership development schools and universities. Phil is currently serving as a lecturer and adviser at Central Washington University. He has held a department chair position as the professor of military science at Seattle University. In this position, he was the program director responsible for developing undergraduate students in the areas of leadership character, individual and team development, and organizational and operations management. As an instructor at the US Army Infantry School, he taught leadership, tactical and operational art and science, organizational management, and physical fitness development. At the US Military Academy (West Point), he served as a university-level psychology counselor responsible for the personal leadership development of cadets as individuals and in groups. Phil has twenty-eight years of service, commanding at the company and field-grade levels as a platoon leader, twice in company command positions, and as a battalion commander. Phil has served on general officer staffs as an aide-de-camp of a Corps Logistics Command, chief of operations at the division and battalion levels in the 101st Airborne Division, and as a deputy chief of operations on the I Corps staff. At West Point, he held the position of deputy garrison commander (deputy city manager). He has also held several executive officer staff positions at the brigade and company levels. In the private industry sector, he held positions as a program, region, and national director for a technology education company serving government and private education programs. Phil has a proven experiential track record of long-term success and achievement in the areas of fiscal management, human resources,

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The Art of Leadership and Supervision

operations, marketing, organizational training, and operational and leadership program development. Phil holds a doctorate from the School of Education at Seattle University, a master’s degree in education and counseling psychology from Washington State University, and a master’s degree in business management science from Troy University. As an Army officer, he graduated from the Army’s Command and General Staff College, Officer Advanced (midcareer) and Officer Basic (entrylevel) leadership courses, with a professional education focus on tactical and operational art and science as well as organizational leadership and management.

Dr. Bob Trumpy Dr. Bob Trumpy is currently an associate professor of administrative management in the Department of Information Technology and Administrative Management (ITAM) at Central Washington University. From 1998 to 2009, Bob had been an administrator in the Division of Student Affairs and Enrollment Management (Senior Director of Health and Counseling Services), having also served in the role as lecturer in the College of Education and Professional Studies for the Department of Teacher Education and the Department of Information Technology and Administrative Management. Bob holds a doctorate of education (educational leadership–higher education administration) from Seattle University. His experience includes more than twenty-three years in leadership and supervisory positions in the fields of health care, consultation and training, and higher education. Bob is certified to administer and interpret the Strong Interest Inventory as well as the MyersBriggs Type Indicator and is a State of Washington licensed mental health counselor and a State of Wisconsin licensed clinical social worker.

© 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

Acknowledgments We would like to thank the following colleagues whose comprehensive feedback and suggestions for improving the material helped us make a better text: • Jim Fullerton, College of Coastal Georgia • Cheryl Harrison, Manhattan College • Robert Hirsch, North Park University • Kozhi Makai, Lone Star College • Thomas Mengel, University of New Brunswick, Renaissance College • Carrie Messal, College of Charleston • Cheryl Stenmark, Angelo State University • V. Lynn Tankersley, Mercer University

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4

The Art of Leadership and Supervision

© 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

Dedications

Laura Portolese This book is dedicated to the students of the information technology and administrative management (ITAM) department of Central Washington University. May you continue your quest for leadership knowledge long after leaving the department!

Phil Upperman This book is dedicated to students, instructors, soldiers, and leaders who taught, coached, and mentored me in life and work.

Bob Trumpy I’d like to thank our coauthor and friend, Dr. Laura Portolese, for her dedicated focus on the details and vision needed to compose an applied skills textbook on leadership. Thanks again, Laura.

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6

The Art of Leadership and Supervision

© 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

Preface There are many excellent leadership books on the market. Likewise, there are many excellent supervision books on the market. However, most of the books on this topic only cover one or the other (leadership or supervision) and do little to combine both topics—which is the most beneficial to our students in their future management careers. For example, most leadership books only discuss leadership from an academic perspective and don’t do enough to show how to apply those leadership characteristics and theories to the actual management and supervision of people. In addition, the authors believe that in order to be good leaders, people must understand themselves; therefore, the book focuses on self-assessments, allowing students to better understand their own strengths and weaknesses as a leader. This book will combine the topics and show students how to be a leader and a supervisor. To this point, the authors believe leadership, management, and supervision are interrelated and should be discussed as such in order to develop the most effective leaders. The three components of an umbrella come to mind in describing leadership in visual terms: leadership would be the overarching cloth held up by the arms, or stanchions; management would be the pole, and supervision would be the handle. Each component supports the other and is necessary for leading a successful organization. If any part is missing or damaged, the umbrella becomes useless in solving the many problems that rain down upon us over the course of a day. That is the philosophy behind this book. Based on the interrelatedness of leadership, management, and supervision, the book will include the following topics: • Real-life perspectives • Self-assessments • Situational examples • Conversational tone and experiential practices

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8

The Art of Leadership and Supervision

This book could be used in any of the following courses: • Foundations of Leadership • Introduction to Supervision • Introduction to Management • Administrative Supervision • Introduction to Supervisory Management • Professional Development • Character Development • Introduction to Leadership • Educational Leadership • Business Leadership • Industrial Psychology • Student Development Services

Features Each chapter opens with a realistic example that introduces a concept to be explained in detail. Each chapter contains relevant examples, YouTube videos, figures, learning objectives, key takeaways, and exercises. An “Additional Perspectives” section is included in in each chapter, which addresses diversity in leadership. Many of the end-of-section exercises offer self-assessment quizzes so the student may engage in self-understanding and development. Additionally, FlatWorld’s publishing model helps keep examples relevant and timely without publishing a completely new edition—saving students money and saving professors time! The customizable model FlatWorld has pioneered will allow instructors discretion to dictate the content they choose to use in their course. No more wasted chapters: if a professor chooses not to use a chapter, he or she simply customizes the book to leave that chapter out. Additionally, the book will provide a comprehensive set of instructor materials, including an instructor manual, test bank, and PowerPoint presentations.

What’s New in Version 1.1 • New and updated examples added throughout the text • Updated leadership and supervision research implemented and discussed within the text • New and updated video content added throughout the text • Content revised throughout to aid in student comprehension

© 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

CHAPTER 1

Introduction to Leadership, Management, and Followership If your actions inspire others to dream more, learn more, do more and become more, you are a leader. — John Quincy Adams A leader takes people where they want to go. A great leader takes people where they don’t necessarily want to go, but ought to be. — Rosalynn Carter

1.1 Defining Moments The weekly meeting ended and the leadership team disbanded to their work areas and departments to disseminate the information and tasks needed to accomplish the organization’s vision and mission. Claire, the chief executive officer (CEO), found the habit of reviewing the company vision and mission statements was useful in reminding the managers of what, why, and how they were going to stay the long-term course by achieving the organization’s short-term goals. Now it was time for the division managers to reinforce this message to their section and program managers. She knew that reinforcing the goals would influence the action necessary to motivate employees to accomplish the tasks set before them. As she walked back to her office, she trusted that the managers were focused on directing and supervising their sections and divisions. Claire knew her focus was to synchronize the parts of the organization and synergize the organizational employees’ effort in accomplishing the vision, mission, and goals. Grant, the operations manager, left Claire’s weekly meeting with a lot on his mind. He was sure his counterparts felt the same way. He was glad she took the time to look at the long-term plan, as he had his hands full with keeping day-to-day activities on track. He knew she trusted him because he had a solid reporting system in place that assured quality in their product and he consistently met the stringent timelines set for his team. He also knew that he was in charge of supervising the people who were at the forefront of the company mission. Grant informed Caroline, an employee on the floor, that Claire was going to visit their department today. She heard Claire often made the rounds to speak to employees in different departments and, during this time, seemed to take a personal interest in their relationship to the company while asking about their families and personal and professional interests. Even though the discussion focused on what they thought about their part in fulfilling the company mission, Claire also took the time to have a cursory discussion about their progression. Caroline thought it was nice to have the head of the company speak to them one-on-one, as it showed she cared not only about the company but also about them.

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10

The Art of Leadership and Supervision

Claire thought it essential to take the time to provide a leadership presence in all parts of the company not only to acknowledge the individual managers’ accomplishments but also to inspire the employees. Circulating around the organization and talking to small groups or individual employees about what was on their minds and how the company can best support them in the long run was crucial to accomplishing the mission because the employees are central to achieving success. She knew this action alone provided credibility to what the managers stated on her behalf, and she never wanted employees to think it was something they just made up to get the job done.

1.2 Introduction to Leadership Learning Objectives 1. Understand personal leadership and management experience in the context of academic and scholarly work. 2. Define your leadership and managerial leadership principles.

FIGURE 1.1 Transcending Roles and Responsibilities

What is leadership, and how does it differentiate from the concept of management? Can a manager be a leader? Does leadership require understanding or having management skills? What leadership abilities or management skills are necessary to be competent in performing your duties? These are some questions this chapter explores. In this chapter, we investigate a process of how you can define what your personal leadership and management styles are. Understanding this is the beginning of a very personal journey to explore your continued leadership development requirements. For example, how you define your personality in terms of the leadership connection to behavioral sciences, as well as the professional skills necessary to be an effective manager—which are then added to your understanding and development as a leader—are all part of the leadership development journey discussed in this and other chapters. Understanding the concepts of leadership and management requires readers to first understand their leadership and management experience and place it into the context of academic or scholarly theories and concepts. Doing this provides the developing leader with a baseline of identified experience to work from. The next step of leadership development is to understand the professional cognate or language used in academia or scholarly work on leadership. Having this understanding allows the developing leader to better grasp the theories and concepts that frame the hard-earned experiences into lessons learned. The last part of leadership development involves the study of historical and even contemporary leaders. Using leadership or management

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Chapter 1

Introduction to Leadership, Management, and Followership

experience, and framing this with academic or scholarly work, provides the reader with the tools necessary to evaluate and assess the effectiveness of historical or contemporary leaders. The beginning of your leadership development journey is to first understand your leadership and management experience. To accomplish this undertaking is to define your experience in the context of academic and scholarly work, and this is where we begin the study of leadership.

Key Takeaways • Understanding the concepts of leadership and management requires understanding your personal leadership and management experience and placing it into the context of academic or scholarly theories and concepts. • Leadership development involves the study of historical and even contemporary leaders. Using leadership or management experience and framing this with academic or scholarly work provides the tools necessary to evaluate and assess the effectiveness of historical or contemporary leaders.

Exercises 1. Define your personal leadership and management experience to develop a baseline of information to place into the context of academic or scholarly work. 2. Create your own list of ten guiding leadership principles. A simple definition of a leadership principle is a fundamental truth or proposition that serves as the foundation for your leadership character and that guides the way you interact, support, and engage with followers.

1.3 Leadership Learning Objectives 1. Describe the nature and role of leadership. 2. Understand the role of charisma in leadership. 3. Identify and define the art of leadership and managerial science.

FIGURE 1.2 Defining Leadership

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11

12

The Art of Leadership and Supervision

Defining Leadership: A Baseline One way to explore the definition of leadership is to identify key words or terms that describe what a leader does. For example, a leader creates a caring and trusting environment where team members are influenced to identify with the task and purpose of a common goal to the point of being inspired and personally motivated to use their skills to achieve it. Leaders, in this case, influence people to act in a particular direction, and by doing so, the leader’s desired outcome is achieved. For example, a leader may influence individuals to create a new, popular product, or personally speaking, a leader can influence a group of friends to eat at a certain restaurant. Leadership doesn’t always have to be in a business context! Consider how these key leadership principles or terms develop a positive leadership climate in the following examples: • Influence the cognitions and behaviors of others to illicit a motivating action that leads followers to achieve a goal. • Earn the trust of followers by demonstrating that a leader is acting not out of selfishness but instead out of concern and care for the welfare of the organization and those whom it employs. • Demonstrate care by, for instance, coaching and mentoring an employee for promotion. When that employee moves on to the new position, the leader will begin the process again by coaching and training a new hire. • Inspire others by demonstrating a selfless attitude through personal sacrifice, setting an example for others to aspire to. Here is another way of defining leadership using the same principles: Leaders influence a person or group of followers by using charismatic inspiration and earn their trust by setting an example of selfless sacrifice and care that motivates the followers into achieving an individual or group goal in pursuit of the organization’s vision. For example, Southwest Airlines has a servant leadership attitude that motivates employees and satisfies customers. This has resulted in forty consecutive years of profit for the company.[1] See Video Clip 1.1 for a discussion on servant leadership and how Southwest Airlines attributes this mission to continuous profitability.

Video Clip 1 Colleen Barrett discusses servant leadership at Southwest Airlines.

View in the online reader

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Chapter 1

Introduction to Leadership, Management, and Followership

13

Developing your own definition of leadership and setting goals to figure out how to strengthen your leadership skills can help make you “hit the bull’s-eye” in your career.

Source: © Thinkstock

Leadership definitions require a very personal definition that identifies with your personality style based on an understanding of the behavioral sciences. Each leader is responsible for developing his or her unique definition and then applying it in word and deed on a consistent and predictable basis to earn enough trust to influence the follower to willingly achieve a task or goal.

Leadership Art and Managerial Science Leadership art involves a thorough understanding of behavioral sciences. This means leaders need to understand their personality and possess effective people skills before they can understand those they want to influence. Leadership art also involves an understanding of strategic and operational art. Having this understanding provides leaders with the ability to conceptualize and articulate a grand vision or end state for an organization.

© 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

leadership art The application of effects and understanding of behavioral and leadership sciences to one or more employees and other organizational stakeholders in order to influence the attainment of an organizational goal or objective. The application involves the effective use of people skills to influence stakeholder behavior. Also involves a conceptual understanding of strategic and operational art that results in a leader’s ability to articulate a grand vision or end state for an organization.

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The Art of Leadership and Supervision

leader Also referred to as leadership, can be defined in many ways as it applies to the particular organization mission and structure. The role of a leader is focused on following a group process. It involves behavioral sciences as it includes personality, induces follower or subordinate compliance, exercises personal influence to achieve motivation and interaction in others, possesses particular personal behaviors, involves persuasion and power relationships, and is goal oriented.

Leaders are experts in understanding all facets of the organizational relationships between operations, research and development, training management, marketing, information technology, human resources, logistics, and sales. This does not mean they are experts in each area, but it does mean they possess the ability to become generalists of each and can synchronize the separate activities into a unified effort. For example, a chief executive officer of an organization—in order to effectively coordinate activities—should know a bit about accounting, sales, and operations. These organizational functions or departments represent examples of a few areas of leadership and management expertise. The key is that leaders may not be “the expert” in a specific skill set to the extent that, say, a marketing or information technology manager is, but they understand how to synchronize the manager’s efforts by communicating clear tasks and purposes to the entire organization to achieve the organization’s vision. Managers understand their specific responsibility and role within a segment of the organization. Managers do possess leadership traits and skills but are limited in that they are expected to perform in a routine and narrower segment of an organization. Their responsibility is focused on their team performance as it relates to the organization and not on the performance of all teams functioning in a synergetic manner for the good of the organization. Managers leave this to the organization’s leader to accomplish. If a manager’s area is performing to standard and meets the expected outcome, he or she is content. A leader should develop the conceptual ability to create a long-term plan of action (leaders develop strategic visions). In turn, a manager is focused on a short-term plan of action (a manager’s operational view). The manager also has to be concerned with day-to-day activities, whereas the leader’s focus may be on monthly, quarterly, and annual results (not that the manager is not concerned, as he or she does provide the results). We call this conceptual gift or ability the art of leadership. Conceptual art is the ability to develop a long-term strategy by understanding management science and synchronizing many management activities (marketing, sales, product development, human resources, information technology, logistics, etc.) to attain results at the decisive time and place of the leader’s choosing (creating a synergistic effect for the organization). Leaders and managers are required to understand behavioral and management sciences to be effective in the dyadic relationship between them and the followers. Though each party needs to understand behavioral and management science, the leaders and managers require unique types of expert knowledge of an occupational or professional skill area. An example is that a leader may have unique expert knowledge in personal management, business management, and leadership at the strategic and operational levels of a company, whereas a manager may be an expert in human resources, operations, or marketing or sales skills at the operational or program-management level of the same company. In this example, leadership requires a broader understanding of behavioral and management science than the manager would be expected to have in performing his or her organizational role. In this scenario, leaders directly or indirectly influence management activities and possess unique management or administrative science skills to synchronize the entire organization’s efforts, while managers are delegated the authority to administer a specific organizational team within the larger organization. Examples of administrative management areas that require unique occupational managerial skills include the following: • Human resources • Accounting/finance • Sales/customer service • Operations • Logistics • Marketing • Information technology • Research and development Another difference between leadership and management is that leaders are more attuned to behavioral sciences—that is, both cognitive (thoughts) and behavioral (actions)—as they relate

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externally and internally to all managerial roles and work to synchronize their management efforts. Because of this, leaders may be more attuned to individuals’ emotional intelligence and influencing individual role personalities across a broad range of skills. This can occur, for example, when leaders indirectly use personal power, specifically referent power, to influence the entire organization with the use of written, video, or other technology-based communication, such as blogs. The leader uses referent and expert power in a very direct manner to influence the management team member, who then influences his or her workers. Managers, in turn, understand how to direct individual behaviors and may focus more on leveraging position power (legitimate, reward, coercive, informational, and ecological powers) to influence subordinates to commit to the management team goal. Managers are more inclined to direct bureaucratic actions in executing their supervisory role to accomplish the short-term, day-to-day wins necessary to achieve the long-term organizational vision and operational intent. Each department can be organized differently. Small organizations may have a few people, with only one or two people to perform the day-to-day operations, whereas a larger organization may have several suborganizations with two to five sections in each that are responsible for different services or products. These departments may require many employees organized into subteams, or sections, with project or program managers within each section responsible for the day-to-day execution of the operational plan. Are leadership and management roles similar in any way? We believe so, and this can be demonstrated by understanding the managerial sciences. What is managerial science? Managerial science skills are learned in administrative management and business management studies. Leaders and managers learn about specific skill sets related to their occupation in courses such as strategic management and policy development, finance, project management, information technology, and business management. The number of unique skills a leader is required to possess varies depending on the leadership or management level. An example of management distribution is when a manager occupies various levels of management activities with different skills, such as simultaneously directing and monitoring the daily activities of a technology department, a finance department, and a marketing team. Some of these management functions can be grouped together under one manager. For example, finance and human resources each have a manager who reports to an executive team leader or director. Other examples are operations, sales, and marketing functions, which each have a manager and an executive leader who not only synchronize their activities but also develop the policy they act on. Table 1.1 provides an example of management activities requiring executive leadership. The point is that each management skill set or activity requires leadership if you are going to have an organization that produces a service or product. Leaders, however, can take their skill set and move to a different organization and still lead effectively. Meanwhile, a manager may be purely focused on a particular occupational or professional skill set in an organization, which confines him or her to exercising his or her unique expertise. An example is a manager who uniquely understands a specific management area such as marketing, finance, operational, logistics, information technology, or human resources. The manager may be skilled only within one particular area and can expertly manage only this area effectively and efficiently.

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managerial science Skill sets leaders attain over the course of their professional development, such as accounting, finance, operations, human resources, information technology, marketing, and so on, that are learned in administrative management or business management studies.

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TABLE 1.1 Example Management and Executive Leadership Activities Requiring Leadership Oversight Chief Operations Officer

Chief Financial Officer

Vice President(s)

Chief executive officer or president 1. Operations 1. Accounting/ 1. Business development finance 2. Marketing 2. Research and development (human resources or other 2. Human management areas could also be placed under a specific 3. Logistics resources executive leadership directorate) 4. Sales 5. Customer service 6. Information technology Executive leaders who serve as chief executive officer (CEO), chief financial officer (CFO), chief operational officer (COO), or in research and development and sales departments are the people who set or contribute to developing organizational policy and are responsible for helping to shape the organization’s strategic vision, mission, and operational intent. Table 1.1 provides an example of the chain of responsibility or authority where the CFO, COO, and various executive vice presidents report to the CEO. Though not a rule, a COO can be responsible for the organization’s operational departments such as marketing, logistics, sales, customer relations, and training. The executive leaders accomplish their roles by leading the managers who supervise their areas of responsibility. An example is when the CFO is responsible for leading the finance and the human resource functions of the organization—in this case, the CFO is leading the managers who supervise the two departments they are the focal leader for, while the CFO is the focal leader for the two managers. What this example demonstrates is there can be several levels of leadership and management functions that require widely different leadership and management skills. In this case, you have an executive team led by the CEO and comprising the COO, CFO, and executive vice presidents (sales, marketing, etc.), who in turn lead the effort in developing strategy and form policy, as well as create the vision, mission, and operational intent for the organization. At the next level, you find the department management teams with specific management and professional skills in areas of operations, marketing, information technology, and so on. These managers report to a focal executive leader who has executive leadership and management training, as well as a functional knowledge of the professional skills required at the various management levels he or she supervises. Managers are independent in operating their department but are dependent on each other to synchronize their specific department operational role with other department managers in terms of accomplishing the overall organization vision and mission. For example, the executive leader’s long-term strategy is operationalized by the management teams to meet day-to-day, short-term goals. In this case, the management teams are each supporting efforts to the larger organization’s main effort to accomplish the vision and mission within the operational constraints identified in a strategic management plan. Leadership team members possess managerial skills, but they are focused on leading the management staff at the strategic operational level. The focus at this level is on organizational strategy or strategic management (including the development of a vision, mission, and operational intent). A manager, in turn, has to understand how to take the organization’s strategy and operationalize it. They then meet daily, weekly, monthly, quarterly, and annual goals or objectives in accordance with the leadership team’s influence. To meet these demands, the managers implement managerial sciences within their expertise. This is why some employees are elevated within specific departments, as they truly understand their jobs within the context of a specific organization. A leader, however, may have a specific managerial skill but also possess a broader and more general leadership skill set that allows him

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or her to artfully synchronize several department functions to meet the organizational vision and mission.

Video Clip 2 Are you an introvert? Watch the first ten minutes of this video to find out.

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Leadership Charisma Understanding a pragmatic definition of charisma is important to becoming an effective leader. Charismatic leaders vary widely in their pragmatism,[2] flexibility, and opportunism and display different styles to achieve their end goal. Styles such as transactional leadership or transformational leadership[3] are examples of what charismatic leaders may use in leading followers or subordinates to resolve a particular situation presented to them. An example of transactional leadership is when a leader motivates followers by appealing to their self-interests and exchanging benefits that satisfy the needs of the leader and the followers.

pragmatism A practical approach to problems and affairs that relates to matters of fact.

transformational leadership Appealing to the moral values of followers in an attempt to raise their conscientiousness about ethical issues and to mobilize their energy and resources to reform institutions.

follower An employee who acknowledges the specified leader or manager who provides the guidance, direction, and purpose of an organization or group to accomplish a specified task or project.

subordinates Someone whose primary work activity is directed and evaluated by a specified leader or manager.

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inspirational leadership Another term that can be used to describe transformational leadership where the component behaviors associated with the term include a few relationship-oriented behaviors, such as supporting and developing, and a few change-oriented behaviors, such as articulating an appealing vision and encouraging innovative thinking.

The aim of transformational leadership[4] is to appeal to the moral values of followers by raising their conscientiousness about ethical issues. By accomplishing this, the leader impacts the moral and ethical direction of an organization, and in addressing specific ethical issues, the leader influences follower motivation in conjunction with organizational resources to reform or transform the direction of the institution to perform in a moral and ethical manner. Inspirational leadership is another term that can be used to describe transformational leadership where leaders motivate by focusing on relationship-oriented behaviors such as providing coaching or support and skill development to the followers. In addition, inspirational leaders encourage employees to think innovatively.[5] Being a pragmatic leader involves increasing attention to the follower’s immediate or situational needs so the follower can continue to identify with the leader. Accomplishing this provides an enduring dyadic follower-leader relationship that may be fueled by the leader’s charismatic style. Charismatic leaders continuously espouse their vision and influence followers to move toward attaining it rather than just adhering to the short-term, day-to-day routine task manager’s focus. Leaders are positioned throughout the organization to perform a myriad of management tasks for the focal leader of the organization. In this case, leaders are also required to exhibit followership traits throughout the organization’s leadership hierarchy. Though these leaders hold legitimate roles, each differs in authority and responsibility. For example, leaders designated as program managers report to operational directors; directors report to executive administrators; executives report to the CEO; and even the CEO reports to a board of directors, oversight committee, and investors. In each case, organizational success is dependent on each leader demonstrating good followership traits. The leader’s abilities need to be commensurate with the situation’s requirement. Important leader skills and traits may include judgment and decision-making abilities; expert management skills such as in operations, marketing, finance, information technology, sales, or logistics; communication skills; the ability to persuade others; and the ability to understand calculated risk taking. This list is not exhaustive and of course depends on the profession or work environment requirements. Charismatic leaders’ personality characteristics are important to understand in terms of their having high self-esteem and taking ownership of their actions. Charismatics tend to be altruistic, gregarious, generous, open, honest, and deeply concerned for others. Charismatic leaders are also highly sensitive to the needs of followers, communicate effectively, are willing to take personal risks, are considered change agents, and are idealistic in their vision of the future. Regardless of the situation, they are consistent in displaying high levels of emotional intelligence, self-assurance, self-determination, and freedom from internal or political conflict, and they are principally minded, demonstrating strong moral and ethical conviction in their beliefs. Bernard M. Bass, in the Handbook of Leadership,[6] identifies the personality characteristics of charismatics (see Table 1.2).

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Introduction to Leadership, Management, and Followership

TABLE 1.2 Personality Characteristics of Charismatics Characteristic

Definition

Expressive behavior

Charismatic leadership manifests itself in nonverbal emotional expressiveness or cues to move, inspire, or captivate others. Related to the dramatic flair and experience in acting and politics.

Example Traits • Have a need for exhibition and dominance • Use a tone of voice that is engaging and captivating • Use relaxed but animated facial expressions • Maintain direct eye contact, which has a magnetic attraction • Use expressive cues such as rate and fluency of speech, outward-directed gestural fluency and smiles, and cues of body emphasis, contact with the body, and inward-directed gestures

Self-confidence

Charismatic leaders display complete confidence in the correctness of their positions and in their capabilities and make this confidence a clear aspect of their public image.

• Have elevated self-esteem, which helps to avoid defensiveness in conflicting interpersonal situations and to maintain the confidence that their subordinates have in them • Tend to project onto like-minded loyal followers their continuing confident opinions of themselves so that they become larger than life • Present themselves as miracle workers who are likely to succeed when others would fail

Self-determination Charismatic leaders have the personal attributes of purpose, power, and extraordinary determination that set them apart from ordinary people.

• Strong personal inner direction • Originality in thought • Self-determination • Sense of duty to others and the organization • Responsible and accountable for the unique self • Concerned with the future and create a unique vision that includes new values and goals

Insight

The charismatic leader can arouse through articulation feelings of need among followers and find radical solutions to their problems.

• Provide insight into the needs, values, and hopes of followers with an ability to build on them through dramatic and persuasive words and actions • Have the ability to conceptually develop and articulate goals that focus people out of their preoccupation • Can unite and motivate people to achieve goals and objectives • State things publically that followers feel privately but are unable to express

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Characteristic

Definition

Freedom from internal conflict

Charismatic leaders maintain their confidence and determination, despite serious setbacks and defeats, through a self-assurance that is consistent with their self-image.

Example Traits • Confidence and determination stem from their greater freedom from the internal conflict that others are more likely to experience between their emotions, impressions, and feelings • Are convinced of the goodness, rightness, and importance of their own points of view • Likely to be more forthright and candid in reprimanding subordinates and can maintain a clear conscience if they feel they must replace them

Eloquence

Charismatic leaders have an emotional flair for expressive language, and even though they may not write the work, they are effective in expressing it.

• Use high-action verbs, short pauses between phrases and sentences, and reiteration in their speeches • Create messages that are simple and focus on the collective identity of the speaker and the audience • Evoke a response from the audience.

Activity and energy level

Charismatic leaders have a high energy level, are caring and optimistic, and have a capacity to inspire loyalty.

Dark side of Charismatics can be highly self-oriented charismatics’ narcissists who are concerned with self-determination themselves rather than involved with others and are oriented in ideas for their own sake rather than for material gain.

• Take a more active role and significantly stronger actions than noncharismatic leaders. • Obstinate • Closed minded • Dogmatic • Rigid • Do not think they need to develop • Regard differences of opinion as counterproductive

Leadership requires the ability to conceptualize a vision and synchronize a staff activity to develop a long-range plan of action. This can be referred to as the art of leadership and can be extended into the science of management and supervision. Another distinguishing characteristic is that leadership and management require different professional or vocational skills. Leaders set themselves apart by having a broader or deeper understanding of behavioral sciences and how their actions or communications affect followers, in addition to management science, whereas managers have to understand the various sciences of management involving a narrower focus on their roles to develop processes to accomplish the specific tasks of their division or department.

Additional Perspectives GLOBE Project (2005)

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Introduction to Leadership, Management, and Followership

The GLOBE Project, conducted in 2005, provided many insights into cultural values and their relationship to conceptions of leadership attributes. Using data collected from more than 17,000 managers in 170 countries, the project was able to receive a holistic answer to the question of what are “Universally Desired Positive Leader Attributes”[7] from an international perspective rather than just an individual country perspective. Universally Desired Positive Leader Attributes [8] • Trustworthy • Just • Honest • Foresight • Plans ahead • Encouraging • Positive • Dynamic • Motive arouser • Confidence builder • Motivational • Dependable • Intelligent • Decisive • Effective bargainer • Win-win problem solver • Communicative • Informed • Administratively skilled • Coordinator • Team builder • Excellence oriented Negative Leader Attributes [9] • Loner • Asocial • Noncooperative • Irritable • Nonexplicit • Egocentric • Ruthless • Dictatorial The research was based on the following nine cultural dimensions:[10] 1. Performance orientation. The degree to which a collective encourages and rewards group members for performance improvement and excellence. 2. Uncertainty avoidance. The extent to which a society, organization, or group relies on social norms, rules, and procedures to alleviate the unpredictability of future events. 3. Humane orientation. The degree to which a collective encourages and rewards individuals for being fair, altruistic, generous, caring, and kind to others. 4. Institutional collectivism. The degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action. 5. In-group collectivism. The degree to which individuals express pride, loyalty, and cohesiveness in their organizations or families.

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6. Assertiveness. The degree to which individuals are assertive, confrontational, and aggressive in their relationships with others. 7. Gender egalitarianism. The degree to which a collective minimizes gender inequality. 8. Future orientation. The extent to which individuals engage in future-orientated behaviors such as delaying gratification, planning, and investing in the future. 9. Power distance. The degree to which members of a collective expect power to be distributed equally. As leaders, we may be faced with situations that require us to be sensitive to follower reaction, even if our communication, decision, or direction is the correct choice based on topics discussed in this book. Understanding some of the components, such as culture, that impact follower reaction can help us better predict, understand, and plan for reactions that we may not expect. Throughout the book, we refer to applicable cultural dimensions and discuss how these specific dimensions relate to the understanding of diversity and possible follower reaction. We refer to each of these dimensions and point out how the specific dimension relates to a leadership situation where understanding of diversity—and these cultural dimensions—are necessary for leadership effectiveness. Our first Additional Perspectives sidebar describes assertiveness. Assertiveness refers to the degree to which individuals are assertive, confrontational, and aggressive in their relationships with others. People and societies with higher levels of assertiveness tend to value competition, success, and progress while focusing on direct communication. They expect subordinates to take the initiative. People and societies with lower levels of assertiveness tend to expect subordinates to be loyal and value cooperation. In addition, they prefer indirect communication. As the manager of the information technology department, you have a daily list of tasks categorized by priority for your employees. Employees take turns going down the list to solve issues, and after one is solved, they review the list for the next available issue. After one of your employees completes a task, she always updates you on the task and asks, “What’s next?” You feel she should make more of an effort to review the list instead of coming to you with the issue. Assume you have high assertiveness and your employee has low assertiveness. Knowing we can’t change people’s individual personality or cultural traits, how can we improve this situation? Source: Based on House, R., Javidan, M., & Dorfman, P. (2001). Project GLOBE: An introduction. Applied Psychology: An International Review, 50(4), pp. 489–505.

The distinction and relationship between the leading and managing concepts proves challenging for both scholars and the business community. The perspective is that management is a component of leadership, with each having very distinct concepts in application. When the leadership team of an organization gathers, who is in charge? Are they all? Or is one person selected as the spokesperson for the group—or as the speaker, president, department chair, dean, or any other title you would like to bestow on the position that holds the focal responsibility and authority for the organization’s vision, mission, and goals? The notion of one person in charge at all times may not sit well with some followers desiring to have a flatter, or nonhierarchical, organization. This is why leaders delegate and spread authority and responsibility, tied to constraints or limits, to carry out actions across the organization. The result could be more efficiency and effectiveness in products or services for certain types of organizations with highly skilled people. But the overall responsibility always lies in the one leader in charge. Using the concept of unity of leadership, the leaders can never subordinate their personal responsibility for leading and managing a successful organization. If the subordinate leader or manager they authorize to take actions on their behalf fails, they fail as well because they may have displayed poor judgment in selecting the individual and possibly did not coach and supervise the subordinate properly. Managers, in contrast to charismatic leaders, tend to feel victimized by self-doubts and personal traumas in circumstances where they have to reprimand or remove nonperforming sub-

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Chapter 1

Introduction to Leadership, Management, and Followership

ordinates. Regardless of the length of service or career successes, managers in nearly every case have to report to the organization’s focal leader. Because of being between the leader and the led, some managers may feel responsible for subordinates’ failures, and removing or reprimanding them causes self-doubt as to how effective they are in their role. To reduce self-doubt, managers should realize the level, or constraints, of authority they have in using coercive or reward powers to influence the behavior of subordinates. Communicating with supervisors to define the level of authority and responsibility they have can help remove self-doubt in taking remedial actions to improve subordinate performance. If they have taken a remedial approach before removing a subordinate, they can reduce their personal anxiety or trauma and the ensuing guilt when taking the final step. The level of authority and responsibility from leader to manager represents a significant distinction between the two roles. Leaders influence followers to motivate them into achievement for the group and for themselves using a behavioral science approach involving emotional charismatic and inspirational appeals. Managers instead are more concerned with the transactional processes between the employee and themselves, using extrinsic motivators aimed at changing short-term behaviors to support the leader’s long-term vision. A major distinction between leaders and managers is that leaders tend to listen to followers’ recommendations. Based on followers’ input, leaders are more apt to adjust their short-term operational plans of action or direct managers to do so. Receipt of new bottom-up information from followers allows leaders to quickly identify opportunities or threats that affect the long-term attainment of their organization’s vision. Where managers are reluctant to leave the day-to-day processes, leaders should be very adaptive and flexible when the situation dictates an operational adjustment to attain the end-state vision of the organization.

Key Takeaways • Leadership is about more than simply having followers; it is not a title, and it is not achieved by just following a few principles. Leadership is complex, though at its core, it is having the courage to make the right choices—not just the popular ones—engaging others in a vision, and empowering followers to pursue a shared purpose of achieving a positive, lasting impact. • The distinction and relationship between the leading and managing concepts proves challenging for both scholars and the business community. Management is a component of leadership, each having very distinct concepts in application. • Leadership requires the ability to conceptualize a vision and synchronize a staff activity to develop a long-range plan of action. This can be referred to as the art of leadership and can be extended into the science of management and supervision.

Exercises 1. Define what leadership means. This assignment allows you to understand the distinction between the roles and position of leadership and management. 2. Introduce yourself to your instructor by writing a brief biography of your leadership/managerial experiences. Use specific examples where applicable. 3. Summarize your definition of leadership based on the chapter and your beliefs, experiences, and leadership principles. 4. In your own words, describe at least four distinctions between managing and leading. Then explain what leaders can influence in their role.

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1.4 Management Learning Objectives 1. Understand the differences between leadership and management. 2. Learn what managers can influence. 3. Understand typical activity patterns for those in management positions. This section focuses on providing distinctions between leadership and management roles and functions. FIGURE 1.3 Defining Management

Distinction between Leadership and Management A single individual can simultaneously possess leadership and management skills. The coexistence of leadership and management skills in a single individual does not mean those skills have to occur or be expressed at the same time for either to be an accurate description of leadership or management behavior. Because of this, several distinctions between managing and leading can be made. managing Managing roles describe the types of required activities that are common to most managerial and administrative positions.

leading All leaders are managers, but not all managers lead. Leaders are competent managers and are involved in managing their professional activities as well as developing long-range goals and the organization’s vision.

Managing[11] can function in the absence of leading, but leading cannot function without managing. If leading involves the art of influencing others to a desired long-term end state, then management involves the direction of day-to-day activities with more of an operational short-term focus. Leading demands a greater awareness of the big picture than managing. That is, managing tends to be more task or process focused, while leading tends to be broader in its focus. Leading requires knowing how a task or process helps complete a larger objective so that those directly responsible for the end result of a given task or set of tasks may more intelligently manage their responsibilities. It seems helpful to once again use etymology; in this case, in regards to the word “influence,” with the idea of it being necessary for a leader to see the big picture or high view in order to effectively lead and influence. Leading is more people oriented, whereas managing is more task and process oriented. Leading implies going in a specific direction with others willingly following. Managing, on the other hand, may include rewarding or coercive transactions to push people to attain a desired objective. Some managers indeed oversee the movement of workers; for example, in a warehouse where supplies are in constant flux, a manager is required to direct where products go, sometimes by actually tak-

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Chapter 1

Introduction to Leadership, Management, and Followership

ing a worker to see where the product is to be placed. A leader, however, evaluates ways a worker follows the leader. A successful leader considers how workers personally fit within the organization and knows the skills and qualities of the workers so that they are best placed.

Video Clip 3 Brian Moffitt and his guests discuss the difference between leadership and management.

View in the online reader

Other areas of distinction between the role of a leader and a manager involve a focus on activities or behaviors such as planning, performance, and styles: 1. Planning. Management is focused on the day-to-day actions of the organization and on shortterm planning results. Leadership focuses on the long-term vision and mission adhering to a well-defined strategic and operational concept developed by the leader’s executive team. As an example, managers spend a significant amount of time prioritizing and delegating tasks or the workloads of employees whom they supervise. They are concerned about the daily short-term goals necessary to move the organization forward. A logistic warehouse manager or shift manager of a restaurant are good examples of two people who hold managerial duties. These managerial roles focus on receiving a mission. Once they receive it, they plan the day by organizing their employees to attain the daily shipping plan and receive logistics or orders to accomplish the organization’s mission. In a fast food restaurant, the tasks are repetitive and use a well-defined process or method to accomplish tasks of selling the item to be purchased, preparing it, and distributing it to a customer. These managers ensure processes are in place by providing specific training and ensuring management activities are adhered to such as finance, scheduling, logistics, and employee training. Accountability of performance is supervised on a daily and routine basis. In this way, the manager brings predictability to the employees directly working for him or her. In turn, leaders focus their attention on identifying and implementing changes to the processes the manager is responsible for supervising. Leaders concern themselves with broad concepts that affect the entire organization. They develop and articulate concepts that may streamline one or more functions of the organization to improve the product and ensure customer satisfaction and loyalty. 2. Performance. Managers focus on maximizing individual and team performance in their particular section to ensure that their part of the organization is effective and efficient in performing their mission for the organization. Leaders focus on building cohesive teams. Leaders are change agents for systems and articulate the concept and vision to employees. Managers capitalize on implementing the incremental changes to meet short-term goals. Leaders in this case may take the risk of introducing a sweeping change in technology, a product, or a logistic process. Managers are limited to incorporating the scope of change to the imme-

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diate circumstance they are faced with. Managers would report an issue that disrupted their producing a product or service to the leader. The leader would ascertain if a systems change is required, develop the plan, and authorize the implementation of the change by the manager throughout the organization. In these cases, leaders are willing to take a calculated risk that may result in a short-term loss in order to gain a long-term advantage. 3. Styles. Managers use transaction-based relationships in a top-down direct authority relationship with employees to attain routine and repetitive short-term goals provided by specific missions, objectives, and goals. Leadership involves using the leader-follower relationship to influence and achieve the long-term strategic objectives. Leaders influence action by attaining additional resources to assist in the accomplishment of tasks, clarifying objectives, and nurturing the values and beliefs of employees to help inspire and motivate them to action in attaining the leader’s vision. Managers tend to use a transactional approach to guiding employees.

Source: © Thinkstock

Key Takeaways • Leadership and management can occur in the same person at the same time, but they don’t necessarily have to coincide for either to be an accurate description of leadership or management behavior. • Leading demands a greater awareness of the big picture than managing does. That is, managing tends to be more task or process focused, while leading tends to be broader in its focus. • Leading is more people oriented, whereas managing is more task or process oriented. Leading implies going someplace with others in tow. Managing, on the other hand, may include pushing people to the desired objective. Core components to the role of manager include demands, constraints, and choices. Demands and constraints are situational influences on leaders and affect the scope of the leader’s choices.[12]

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Chapter 1

Introduction to Leadership, Management, and Followership

Exercises 1. List ten differences between leadership and management roles, styles, and activities, and discuss your findings with the class. 2. Define how managers influence followers or subordinates differently than leaders. 3. List five activity patterns that managers use.

1.5 Followers Learning Objective 1. Understand the differences between an employee, follower, and subordinate. This section of the chapter focuses on providing a perspective on the influence employees or subordinates have on leadership and management activities. FIGURE 1.4 Defining the Followership

Defining the Employee and Subordinate We have described several differences between leading and managing, including the personal level on which leaders and managers connect with their followers or subordinates. We identified that a manager can be all business and is looking for results. Leaders, however, work with followers to reach a deeper personal level as a project progresses because they need to learn about the team members in terms of their personal strengths, weaknesses, and so on before they can influence the group’s direction. This key difference between leading and managing is crucial to understand because it demonstrates how effective a leader can be. Followers respond when the leader is personable and invests time in how the team is doing. Some followers may not be able to work well under the pressure of a manager who is strictly looking for results without regard to how the employee is handling the workload. Based on this, we need to briefly describe how followers or subordinates react to leaders and managers. But first let’s define the difference between a follower and a subordinate.

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associate Connotes a valued relationship between the led and a specific leader where the subordinate is empowered to perform specific organization activities.

employee A person employed by another for wages or salary and in a position below the executive level.

A subordinate, or direct report, can be described as someone in a position of less power or authority than someone else; his or her primary work activities are controlled, directed, and evaluated by a leader or manager who is given authority over the subordinate. Organizations today often use the term associate, as it connotes a relationship that is valued between the led and a designated leader, where the subordinate is empowered to perform specific organization activities within the constraints established by the leader or manager.[13] A follower is someone who supports and is guided by another person. It can be an employee[14] who acknowledges the focal leader or manager who holds a legitimate power position in a company. The leader or manager then provides the guidance, direction, and purpose of an organization to a follower or a group of followers to accomplish a specified task or project. Followers in this instance are not considered subordinates or direct reports and may be volunteers who function in the absence of a formal dyadic authoritative leader-led relationship.[15] Key characteristics leaders and managers have to keep in mind about followers are listed in Table 1.3. Note that executive leaders consider these characteristics in the managers they hire, and managers consider the same characteristics for subordinates and followers. TABLE 1.3 Personality Characteristics of Followers 1

Effective communicator

2

Proactive/Takes initiative

3

Good social skills

4

Cooperates/Team player

5

Responsible

6

Flexibile

7

Honest/Credible

8

Committed

9

Competent/Knowledgable

Source: Based on Baldwin, J.N. (2017). 9 Personality Traits of Ideal Followers. Retrieved February 2, 2018 from https://www.success. com/article/9-personality-traits-of-ideal-followers.

Leaders are not content with things remaining the same and are constantly looking to innovate and improve things as organizational environments, followers, and subordinates change. Where managers rely on control and processes, leaders inspire trust and empower their team members. Leaders prefer to empower employees, including managers, with the knowledge and resources to execute actions on their own. Leaders encourage growth in individuals as well as in teams, often coaching or mentoring employees to look beyond their current positions to see how they hope to grow in their careers as well as within the organization. Ultimately, leaders encourage employees to set specific goals and help set the direction for goal attainment and identify what steps are necessary for them to attain them.

Key Takeaways • Leaders encourage employees to set specific goals and help set the direction for goal attainment and identify what steps are necessary to get there. • A follower is an employee who acknowledges the specified leader or manager who provides the guidance, direction, and purpose of an organization or group to accomplish a specified task or project, regardless of how much formal position power or authority the leader or manager possesses.

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Chapter 1

Introduction to Leadership, Management, and Followership

Exercises 1. Define how a subordinate differs from a follower. 2. Using Table 1.3, list the nine follower characteristics and provide a short description of how a follower could effectively relate to a leader or manager.

1.6 Chapter Summary and Case Chapter Summary • The distinction between managing and leading presents a variety of behavioral and managerial concepts to study, as they pertain to how individuals lead to influence employees or manage projects within an organization. Sometimes the same terminology is used to refer to the same human behavior, yet in practice leadership and management focus on different practices and results. It is by understanding the distinction between managerial and leadership practices that we are able to better understand the roles and responsibilities each has. • The number of subordinate units in the direct leadership’s span of control influences the effectiveness and efficiency of both the leader and the organization. Because of this, a leader may want to limit their span of control to no more than five departments, divisions, or sections of an organization. A leader managing more than what they can directly influence might result in an ineffective management team and organization. • Managers are very capable experts within their professional field of study or skills and are involved in the day-to-day management science of supervision. In the end, the major contrast between a leader and a manager involves leadership art and management science. A leader’s ability includes being able to conceptually develop a strategic and operational direction and to fully understand behavioral science as it relates to their personality and leadership style and the exercise of people skills. The contrast is very important to understand with the limited scope managers have in mastering management science and their ability to properly supervise the employees under their charge. • Leaders identify with the entire purpose of the organization and the employees within it. • Leaders possess a conceptual ability to understand relationships among each managerial department and then articulate a strategic or operational plan that synchronizes all their actions to attain a long-term outcome. Leaders possess the ability to create this concept and then communicate a compelling vision for followers that excites and motivates them to action. • Leadership and management seem to interchange to a degree—that is, a leader becomes a manager when answering to his or her superiors. Likewise, a manager assumes leadership when directing a task or objective to his or her followers. • Leadership is about more than simply having followers; it is not a title, and it is not achieved by just following a few principles. Leadership is complex, though at its core, it is having the courage to make the right choices—not just the popular ones—engaging others in a vision, and empowering followers to pursue a shared purpose of achieving a positive, lasting impact.

Chapter Exercises Assignment 1: Managing versus Leading

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This assignment allows you to define what leadership means. It also helps you distinguish between the various roles and positions in leadership, particularly leadership versus management roles. Using the material covered in the text, respond to the following discussion questions: 1. Introduce yourself by writing up a brief biography of your leadership/managerial experiences. Use examples, when applicable. 2. Summarize your definition of leadership based on your readings and your beliefs/experiences/leadership principles. 3. After reviewing the text, in your words describe at least four distinctions between managing and leading. Then explain what leaders can influence in their role. Assignment 2 (Journal): Define Managerial Leadership Skills 1. Create a list of your personal managerial skills. 2. Explain why each skill is important in guiding you as a leader. Assignment 3: Defining Leadership To get us thinking about leadership and its definition, this activity helps you put an “image” to leadership. Images carry strong emotion, influence, and power. Leadership is much the same. Select and attach an image that describes what leadership means to you. Answer the following questions: 1. What is your definition of leadership? How does your picture relate to this definition? 2. What is the primary goal of leadership? 3. What/who do leaders influence? What/who does leadership influence? Why are these important? Once you have completed the assignment, have a class activity where you share your image and discuss your responses with your classmates. In your response, be sure to do the following: 1. Note how your leadership definition is the same or different. 2. Comment on the primary goals (i.e., what do you agree or disagree with?). 3. Comment on similarities or differences on importance of leadership influence.

Chapter Case In 1984, Bev joined a military unit during the Cold War in what was then the Federal Republic of Germany. She joined as an entry-level officer responsible for close to forty-five individuals organized into five sections. After four months, her leadership potential, determined based on external organization inspections and audits, was recognized by leaders at the regional headquarters, and she quickly advanced to an executive officer position in a lateral department within the region. She only stayed in this position for six months before she was offered the department management position after her supervisor was moved due to a scheduled rotation. What was unique in this situation is that she was a junior officer at the time and was advanced into a qualifying job for continued advancement ahead of five senior people. She attributes her success at the job to being extremely familiar and experienced with this particular organization and its standard operating management procedures. She would have likely succeeded in this position if given an opportunity to do so elsewhere. This particular position enhanced her ability to succeed, as she understood every facet of the organization. Her leadership potential was evident because she ascended to this particular position before attending the midlevel-management leadership course all managers in her position are scheduled to attend before leading a department of the size and complexity she was given. After completing her tour of leadership throughout the department, she attended the midlevel-management course. While in the course, she realized she did not know about organizational leadership and management as well as she thought. Upon reflection, she learned new leadership concepts and managerial skills that would serve her when leading other organizations. She was eventually selected to instruct the midlevel-management course herself and learned a lot more about how to coach and teach leadership and organizational management in the process. As circumstances and organizational timing would have it, she was selected to

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Chapter 1

Introduction to Leadership, Management, and Followership

lead the largest line company in the army (at the time). In this new leadership role, she exercised the lessons learned in a professional development school aimed at developing leaders along with her leadership experience in previous command roles. This story makes the point that a person’s leadership and management experience can be limited to similarly organized companies we serve in. We should be cautious that we do not become blinded by our previous experience and must adjust to each new environment presented to us, especially as the scope of authority and responsibility increases. This illustrates the point that we continually need to learn more about leadership and management if we want to develop the potential for further leadership or management positions. Each of us may be steeped with a specific level of experience relevant to our current position, yet we have not mastered the leadership or management requirements necessary to lead at an executive level, which requires unique skills. Formal and informal leaders exist throughout an organization. If the formal leader does not perform, informal leaders will rise to fill the gap in leadership. Government organizations reflect this concept because they are often hierarchical and bureaucratic structures with lower-level leaders constantly striving for upward leadership mobility. Today we have to be cognizant that many organizations decide to become structurally flat, and if not careful, this can have a detrimental effect in creating too many leaders and not enough followers, which puts the company’s longterm existence at risk. Members of flat organization structures can function in a very collaborative environment as the leader-to-led relationship is not necessarily as authoritative as in a line-andstaff or hierarchically structured organization. An example of a flat organization could be an entrepreneurial group coming together to deliver a service or product. One group performs the management functions, another group the service, and yet another delivers a product, and so on. One group acts as the management team that takes the lead and is responsible for synchronizing the various activities. Each subordinate organization fulfills a contractual obligation, receives a portion of the revenue, and determines what its personal profit share is for the venture. We may have participated in this type of venture in private industry, where executive leaders from each organization come together while their managerial staff works out the details. No single leader is higher in authority than the others, yet a leadership team is put together to create the vision, mission, and strategy of the venture. The other executive leaders are responsible for their operational conduct. Each level of leadership and management function relies on the others’ experience and unique capability to meet the vision and mission or scope of the contract. Often these entrepreneurial ventures are short term but can sometimes last longer. 1. Discuss the notion of leadership and management experience as it relates to the case. 2. Discuss the notion of leadership and management roles in an entrepreneurial business environment.

Endnotes 1. Southwest Airlines. (2013, January 24). Southwest Airlines reports increase in annual profits, 40th consecutive year of profitability. Retrieved August 6, 2013, from http://southwest.investorroom.com/2013-01-24Southwest-Airlines-Reports-Increase-in-Annual-Profits-40th-Consecutive -Year-Of-Profitability 2. The following citation refers to the key-term definition. Pragmatism. (1983). In Webster’s ninth new collegiate dictionary. Springfield, MA: MerriamWebster. 3. Avolio, B. J., Bass, B. M., & Jung, D. I. (1999). Re-examining the components of transformational and transactional leadership using the Multifactor Leadership. Journal of Occupational and Organizational Psychology, 72(4), pp. 441–462. 4. Leithwood, K., Jantzi, D., & Steinbach, R. (1999). Changing leadership for changing times. Changing Education Series. Florence, KY: Taylor & Francis. 5. Joshi, A., Lazarova, M. B., & Liao, H. (2009). Getting everyone on board: The role of inspirational leadership in geographically dispersed teams. Organization Science, 20(1), pp. 240–252.

6. Based on Bass, B. M. (1990). Handbook of leadership. New York: Free Press, pp. 190–192. 7. Grove, C. N. (2005). Universally desirable and undesirable leadership attributes. Retrieved April 14, 2014, from http://www.tlu.ee/~sirvir/ Leadership/Leadership Dimensions/universally_desirable_and_ undesirable_leadership_attributes.html; House, R. J., et al. (2004). Culture, leadership, and organizations: The GLOBE study of 62 societies. Thousand Oaks, CA: SAGE Publications. 8. Northouse, P. G. (2007). Leadership: Theory and practice (4th ed.). Thousand Oaks, CA: SAGE Publications, pp. 322–323. 9. Northouse, P. G. (2007). Leadership: Theory and practice (4th ed.). Thousand Oaks, CA: SAGE Publications, pp. 322–323. 10. "Project GLOBE: An Introduction," Robert House, Mansour Javidan, Peter Dorfman © 2001 Applied Psychology. Reproduced with permission of John Wiley and Sons Inc. 11. The following citation refers to the key-term definition. Mintzberg, H. (1973). The nature of managerial work. New York: Harper & Row. 12. Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: Pearson, p. 32. 13. Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: Pearson, pp. 8–9. 14. The following citation refers to the key-term definition. Employee. (1983). In Webster’s ninth new collegiate dictionary. Springfield, MA: Merriam-Webster. 15. Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: Pearson, pp. 8–9.

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CHAPTER 2

Developing Interpersonal Skills for Success The sign of intelligent people is their ability to control emotions by the application of reason. — Marya Mannes We are dangerous when we are not conscious of our responsibility for how we behave, think, and feel. — Marshall Rosenberg Never react emotionally to criticism. Analyze yourself to determine whether it is justified. If it is, correct yourself. Otherwise, go on about your business. — Norman Vincent Peale If your emotional abilities aren’t in hand, if you don’t have self-awareness, if you are not able to manage your distressing emotions, if you can’t have empathy and have effective relationships, then no matter how smart you are, you are not going to get very far. — Daniel Goleman

2.1 Getting Defensive to Prove Your Superiority or to Expose Your Insecurity? Carol is a vice president for student affairs at a public university. She’s very charismatic, has been a vice president at another college, and likes to grant favors, even if it creates an inequitable environment. Carol has decided to promote a program coordinator to a director level, with no change in duties or “direct reports.” This promotion and title change has increased both the program coordinator’s salary by more than $10,000 annually and his or her access to directors’ meetings and status. There are four other program coordinators in the student affairs division, each with similar levels of duties. One of these program coordinators has more direct reports, higher levels of risk, and a more advanced degree than the promoted “director.” Carol did not discuss this change with the other program coordinators and their respective supervisors and has no intention of promoting the other program coordinators. Now there is major grumbling, and allegations of preferential treatment are evident. Bill is an associate vice president, supervises the one program coordinator with the advanced degree, and reports directly to Carol. He has recently earned a doctorate in educational leadership, is very astute with organizational dynamics, and feels obligated to quietly and privately bring his concerns for this situation to Carol. During his weekly “one-on-one time,” Bill asks Carol if he could discuss his concerns for the recent promotion of the program coordinator. Carol agrees to hear Bill’s

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The Art of Leadership and Supervision

concerns, and Bill does his best to respectfully discuss the situation with Carol. Bill even starts out acknowledging the reasonableness of Carol’s attempt to get someone promoted and a higher salary. Partway through his discussion of the perceived inequities and repercussions of the promotion, she interrupts him and angrily accuses him of believing he knows more than she does now that he has his doctoral degree—which she describes as a simple “union card” to be qualified for upper administration. Furthermore, she reminds him that she has more than twenty-nine years of student affairs experience and doesn’t need anyone telling her what to do. Bill tries one more time and asks Carol if she would like to hear his full recommendation on how to fix the situation. She proceeds to act totally offended and responds, “I don’t need your advice or help, and if I did, I’d ask.” More than a month passes, and unexpectedly (without any acknowledgment or apology to Bill) during a directors’ meeting, Carol announces that for consistency, she is also promoting the other program managers to director. Unbeknownst to Bill, right after his attempt to give her feedback, human resources had come to Carol and insisted she change the titles and pay of all program coordinators. Furthermore, Carol has become consistently agitated around and dismissive of Bill in all public meetings and gatherings. During their weekly one-on-one meetings, Carol is abrupt and cool, and her body posture reflects a closed style in Bill’s presence.

2.2 Personality Types and Leadership Traits Learning Objectives 1. Identify and assess your personality traits and how they impact leadership style and ability. 2. Develop an understanding and appreciation of the impact the “Big 5” traits and emotional intelligence have on leadership effectiveness. 3. Through self-assessment and inquiry, apply your individual personality and trait profiles to predicted success in practicing the “Big 5” traits, skills, and emotional intelligence. Carol struggled to hear Bill’s feedback. Carol also gave the strong impression that she wasn’t open to the feedback, to the point of dismissing his thoughts as unnecessary and offensive to her selfimage. Bill is unlikely to “look out” for Carol in the future. Furthermore, Bill’s impression of Carol’s leadership, communication style, and maturity has changed for the worse.

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Chapter 2

Developing Interpersonal Skills for Success

Let’s look at some theories, concepts, and assessments to put into perspective Carol’s internal struggles and the impact of her interpersonal skills development, or lack thereof, on Bill. To this end, the chapter explores the personal factors, personality traits, and skills for individuals to consider in assessing their skills and motivations as leaders, role models, and in this case, enforcing a fair and equitable workplace. Gary Yukl[1] describes four levels of conceptualization for exploring leadership theories and levels of leader influence. Ultimately, these four levels represent four different relationship types, or processes, where we see leadership implemented and developed. Therefore, leadership relationship levels can be viewed as (1) intraindividual or internal, as evidenced by Carol’s internal struggles; (2) one-on-one or dyadic relationships, as experienced between Bill and Carol; (3) a group or team set of interactional dynamics; and (4) an organizational relationship–focused process. These relationship levels require the leader to focus and sometimes balance varying levels of follower concerns. Additionally, these levels necessitate different interpersonal skills and have significant implications on leader effectiveness in these four areas. Lastly, the intraindividual, or internal area, is viewed as the key level for the leader to consistently investigate, using openness to inquiry, throughout his or her professional career. Leaders are commonly judged and evaluated based on their respective behavioral abilities and perceived sources of motivation. Generally, the two main factors that interact to drive our motivation and behavior are viewed as traits and skills. Traits are primarily viewed as human characteristics that are “hardwired,” or innate in nature. Innate factors are usually described as a combination of inherited propensities and enculturated tendencies that form our worldviews, also known as governing variables.[2] Traits, as motivating factors, are very hard to change and are viewed as both subconscious and sometimes unconscious. Yet these important factors hold major power over our ability to benefit from constructive feedback, assess uncomfortable situations, engage in critical personal insight, and learn new skills or refine current skills.[3] Understanding that traits and skills are strongly interrelated, we explore two useful trait concepts in this chapter: the Myers-Briggs Type Indicator (MBTI) and the Big 5. We start by taking a quick look at skills, and the importance of interpersonal skills in particular, and how certain personal traits increase the likelihood of easy or even natural skill acquisition, while other traits may add to our struggle at acquiring or even seeing the value in certain interpersonal skills. Therefore, our next frame of reference involves the skills related to success in three main areas. These skills can be roughly divided into technical, conceptual, and interpersonal categories.[4] Technical skills encompass those competencies specific to our field or occupational grouping (e.g., medical, accounting, information technology, teaching, business administration). Conceptual skills encompass making sense of interrelationships, effective judgment, intuition, foresight, reasoning, and analytical ability. Interpersonal skills involve assessing human interactions and motives, comprehension of the emotions and feelings of our self and others, application of empathy and situational social sensitivity, and the ability to persuasively communicate and listen effectively. A study by Morgan McCall and Michael Lombardo[5] found technical skills help us enter our chosen professional field, as well as early management positions, but decrease in importance as we are promoted into higher-level leadership positions. Conceptual skills become an increasingly weighed factor in the evaluation of our successes as we move up the leadership ladder, and interpersonal skills, or lack thereof, account for most of how we will be judged by our coworkers and followers and promoted or terminated in positions of leadership.

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traits Personal characteristics that are dependable, consistent, representative of “default” patterns of behavior and values, and difficult to alter or refine without openness to inquiry and self-reflection. Individuals are believed to possess a combination or set of traits that are very functional in numerous situations yet dysfunctional in others or when overused.

skills Any set of behaviors that can be learned to perform a specific function. These behaviors or skills can generally be divided into technical (specific to an occupational or scientific area), conceptual (generalizable skills for assessing risk, uncovering and exploiting patterns and connections, and application of theories or research), and interpersonal, which compromises emotional intelligence, persuasion, and what is commonly referred to as “soft skills.”

Myers-Briggs Type Indicator (MBTI) A personality assessment generally based on Carl Jung’s theories of worldview and personal preference characteristics. These characteristics represent variances in interests, preferences, and values believed to be a combination of inherited and socialized tendencies.

Big 5 A summary of the top five traits and values exhibited by successful leaders.

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There are many characteristics associated with good leadership; assessing your characteristics can be a first step in further leadership development.

Source: © Thinkstock

This chapter primarily focuses on the first level of “relationship with ourselves,” or the “intra,” and our important abilities to bring our interpersonal skills to leadership situations—requiring the internal processes of self-evaluation, formal self-assessment, and continued self-reflection through seeking, valuing, and accepting personal feedback. This chapter also introduces a frame of reference to help leaders understand how we may resist change through refusing or denying the need to alter the worldview or governing variables that ultimately keep us stuck in self-defeating behaviors and other ineffective interaction patterns. Through the process of looking at ourselves and the impacts of our tendencies, worldviews, emotional reactions, natural strengths, and weaknesses, this chapter discusses a variety of methods to help you toward the end goal of becoming an effective leader. According to Long Yun Siang, of Career Success for Newbies,[6] there are definable characteristics that can help individuals become successful in their jobs, and the same goes for those in a leadership role.

The Big 5 It can be difficult to know where we stand if we do not perform some self-assessment of our weaknesses and strengths. A meta-analysis summary of research on effective leadership trait characteristics identifies leadership traits, which are beneficial to attain while working in, or toward, a leadership position in an organization. One of the first self-assessments/perspectives to consider is the “Big 5” set of personality traits. The assessment, developed by Paul Costa and Robert (Jeff) McCrae, looks at these five main personality traits:[7]

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Chapter 2

Developing Interpersonal Skills for Success

1. (O) Openness. Those who score high have overt levels of creative energy, curiosity, and insight into new ideas. They value critical feedback and are more prone to explore and act on entrepreneurial opportunities. Effective leaders tend to be somewhat moderate to high on openness traits.[8] Leaders who have low levels of openness usually struggle with change, find the impact of new information on recently made decisions very uncomfortable, and tend to shy away from innovations, improved procedures they see no use for, or critical personal feedback. In our scenario, Carol did not display openness to Bill’s feedback and perspectives. 2. (C) Conscientiousness. A high score on this trait implies a high level of thoughtfulness, meeting timelines and commitments, high impulse control, and good organization and orientation to detail. Those who score high on conscientiousness are predicted to have increased rates of effective leadership experiences. This is the second highest trait (next to extraversion) related to effective leadership.[9] Leaders with low levels of conscientiousness tend to view timelines and commitments as flexible and more negotiable than is appropriate for the situation. Furthermore, low conscientiousness leads to low trust and perceived procedural injustice by followers. In our scenario, Carol’s initial decision to make a deal with one person, while ignoring the domino impact on the other program coordinators, could be viewed as an example of both poor conscientiousness and poor impulse control. 3. (E) Extraversion. This trait includes the amount of excitability, sociability, talkativeness, and ability to assert one’s self. Extraversion also allows leaders to naturally navigate business and social situations with ease and comfort, especially with new people in new situations. High scores on extraversion are linked strongly to successful leadership abilities, more so than the other traits listed.[10] As the scenario described, Carol possessed high levels of extraversion. Those with low levels of extraversion are often viewed as sullen, uninterested in communication, insecure, and unsuitable to lead groups in problem solving and exploring unresolved issues (pay special attention to Video Clip 2.1). 4. (A) Agreeableness/tact. This dimension includes kindness, excellent timing when asked to critique ideas and activities, good emotional intelligence, a giving nature, and high levels of affection and ability to trust others. Agreeableness/tact is seen in leaders who can quickly assess a situation and ascertain what behavior or style is indicated and then act accordingly. They will avoid interrupting or being dismissive. Therefore, they will postpone critical comments until the time is right and use a persuasion style when critiquing an idea, position, plan, or worldview presented by others. “Shooting from the hip” is a style rarely, if ever, displayed by effective leaders. This trait is mildly linked to effective leadership skills.[11] In our scenario, Carol should have calmly listened to Bill’s concerns and promised to consider his thoughts and get back to him with her conclusions (also an example of openness and conscientiousness). Furthermore, Carol would have been wise to view Bill’s feedback as an example of loyalty to her, given both the risk he took to bring it up to her and how his concerns served to protect her from the repercussions of her decision to promote/recategorize only one of the program coordinators. 5. (N) Low neuroticism / stability under stress. Successful leaders have the ability to keep cool under pressure and not emotionally escalate situations that involve receiving critical feedback and/or unexpected information. This coolness and grace is especially evident while receiving opinions and advice that imply leader mistakes, oversights, or poor judgment. Successful leaders will also know when a situation demands their complete attention, when doing nothing is not an option, and when the needs of others outweigh their own needs or comfort. Conversely, people high in neuroticism tend to be unstable emotionally, especially during stressful situations. They may view critical/constructive feedback as a personal attack and as unsupportive and can be overfocused on image or impression management. They are likely to become defensive, may confuse loyalty with ubiquitous agreement, are more often depressed, and report more anxiety than those that score low on this trait.[12] In our scenario, Carol showed very high levels of neuroticism in her reaction to Bill’s feedback and concerns. She was defensive and seemed worried about giving the impression that she knew everything there was to

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persuasion A communication style primarily used to present thoughts, data, research, and other evidence to justify a position, opinion, or decision in a “respectful” process. The style uses a two-sided balancing strategy (presenting both sides of an issue) found effective in reducing resistance, demonstrating comprehension of the issue, increasing speaker’s credibility, and increasing the likelihood of the listener safely reviewing worldview/governing variables.

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The Art of Leadership and Supervision

know and that she didn’t need anyone to help her assess a situation, especially a peer with a doctorate degree. A helpful mnemonic device for remembering the Big 5 is “OCEAN.”

Video Clip 1 This TED Talk by Susan Cain, the author of Quiet: The Power of Introverts in a World that Can’t Stop Talking, discusses leadership and the introvert personality.

View in the online reader

Follow this link to take a Big 5 personality assessment: http://similarminds.com/big5.html

Since we know effective leaders are perceived to have excellent social skills and high extraversion,[13] asking yourself how you might become more extraverted in social situations is important. Attending organizational social events and networking are important opportunities to develop this skill area and should not be avoided by a leader. Many people are concerned about what to talk about at these types of events.[14] Finding topics to discuss (avoiding politics and religion) before you go can help alleviate anxiety associated with attending such an event. To develop skills in the area of conscientiousness (since it is the second highest Big 5 predictor of leadership ability), learning how to better organize your life and time is important. For example, keeping a schedule or to-do list can help ensure you don’t forget important things.

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Chapter 2

Developing Interpersonal Skills for Success

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Emotional Intelligence Related to the Big 5 traits of extraversion, agreeableness/tact, and stability under stress is the concept of emotional intelligence. Understanding your own levels of emotional intelligence and improving on them can be a valuable way to analyze your strengths and weaknesses. Emotional intelligence is the ability to not only assess and control your emotions but also understand the emotions of those around you. As noted by Daniel Goleman,[15] self-awareness, self-regulation, social skills, and empathy are all aspects of emotional intelligence. Self-awareness refers to your ability to know your strengths, weaknesses, drives, and motivations. Self-regulation involves being able to control your emotions, based on outside stimuli. Social skill is the ability to manage relationships. Empathy refers to the ability to consider others’ feelings and thoughts and be able to put yourself in their position. Throughout his research, Goleman found effective leaders in organizations tend to score high on emotional intelligence. He calls skills and technical abilities important as the gateway to get into management positions, but once people move up the ranks into executive positions, emotional intelligence skills are crucial. As we saw in the opening scenario, Carol showed very poor emotional intelligence, as evidenced by a lack of humility, an inability to control her emotions, and a refusal to see how her behavior would impact on Bill. Conversely, Bill showed good emotional intelligence by using a persuasion style in presenting his advice and concerns to Carol, in the hopes of reducing her potential for resistance to his perspective.[16] He asked for permission to give his feedback and even acknowledged the reasonableness of Carol’s idea to promote within the organization. He also showed foresight in understanding the long-term unintended consequences of Carol’s decision. And even in the face of Carol’s overreaction to the emotional stress of his feedback to her, Bill kept his cool and did not escalate the situation. Given that emotional intelligence skills are so important, how can you improve them? Here are a few ways:[17] • Practice personal observation and reflection. Look at how you work with others. For example, do you judge quickly? Being able to honestly assess how you interact with others can improve your self-awareness and your self-regulation skills. • Manage stress. Be aware of how you react to stress, as managing stress is part of self-regulation. When you are stressed, do you lash out at your significant other or colleagues? Understanding how you manage stress—and managing it—can result in better self-regulation and social skills. • Consider how your actions will affect others (foresight). This can be both a social skill and a self-regulation skill. If we consider how our actions will affect others, we can be more ethical in our decision making. • Practice humility and an appreciation of team contributions. Humility can go a long way in relationship management and social skills. When we are humble, we give credit where credit is due, which creates better connections with our employees. • Learn good listening and persuasion skills. Good listening skills result in a better ability to develop our social skills. Furthermore, presenting advice and feedback in a manner that reduces the likelihood of resistance helps us to be viewed as thorough, informed, and balanced; it will also help others to see the reasonableness of our ways. • Practice empathy and connect with people. This goes without saying, but developing our connections with others and showing true caring for others is both an empathic and a social skill. • Be aware of body language and the impact of nonverbal communication on building rapport. Understanding your body language and the body language of others can improve self-awareness, develop our social skills, and result in greater empathy for others. • Be energetic. Energy tends to create charisma, which can result in better social skills.

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emotional intelligence A set of skills and values preparing the individual to engage in communication styles appropriate for the situation. These skills encompass empathy, self-regulation, self-awareness, and comprehending when to prioritize the needs of others.

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Follow this link to take an emotional intelligence quiz: http://psychology.about.com/library/quiz/bl_eq_quiz.htm

The MBTI While there exists a plethora of personality assessment tools related to leadership, one helpful assessment is the Myers-Briggs Type Indicator (MBTI). As we’ll see, the MBTI helps us predict how “hardwired” we are for the Big 5 characteristics. All five of the “OCEAN” traits are exhibited in the MBTI profiles as either naturally occurring or needing to be consciously practiced, perfected, and appreciated. The MBTI explores the strength of certain traits and the scale (high or low) of that particular trait. Myers-Briggs looks at extraversion (E) versus introversion (I) as a source for what energizes an individual; sensing (S) versus intuition (N) helps us indicate our preferred sources of trusted information; thinking (T) versus feeling (F) reveals our main values in reviewing fairness, accountability, or justice; and judging (J) versus perceiving (P) gives us a view of how we prefer to interact with the world around us. To expand on these scales, extraversion or introversion indicates how you focus your attention (inwardly or outwardly), while sensing or intuition refers to how you take in information and what sources of information make the most impact for you. Thinking or feeling refers to how you make decisions based on the heart/compassion for the individual or via consistency, logic, and fairness for all. Judging versus perceiving addresses how you deal primarily in a planned or spontaneous style with the outside world and events. Research shows that those with the ESTJ profile are effective leaders, especially as chief executive officers, given their natural tendency to take charge while also being naturally social. ESTJ means the leader exhibits extraversion in his or her personality; he or she uses sensing by focusing on facts and details and prefer a hands-on experience. Thinking, the third aspect, means leaders tend to focus more on making decisions using facts and objective data and tend to be logical in making a decision. Leaders also tend to lean toward judging, which means they focus on structure and firm decisions. Some studies have also supported the ENTJ and even the ENTP profiles as being naturally supportive of both the Big 5 and entrepreneurial characteristics. Remember, most of us will exhibit a different style depending on the situation. In a leadership position, it is imperative to not only understand our own leadership style but also understand, based on another’s personality, the right way to lead them. Rather than solely use, or overdepend on, our own style for leadership, we should adapt our leadership style to the situation and the person. Interestingly, the interrelationship between the MBTI and the Big 5 reveals how “Ts” tend to be emotionally stable (N), yet not naturally tactful (A), and too direct. “Js” are usually very conscientious (C), but when combined with an “S” profile, they tend to be less than open to inquiry or new ideas (O). “Fs” tend to be very tactful yet find difficulty with equal application of accountability and discussing uncomfortable topics related to poor performance (N). Lastly, extraversion in social situations is key to communication and emotional intelligence (E). Table 2.1 shows some potential uses for other styles.

Follow this link to take a shortened version of the Myers-Brigg test: http://www.humanmetrics.com/cgi-win/jtypes1.htm

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TABLE 2.1 Using Myers-Briggs Type in Different Situations Description

When to Use

When Not to Use

Leadership style: Myers Briggs type, Jungian type, MTR-i team role Participative leadership: ESFJ/ENFJ, extraverted feeling (Jung), or harmonizing (MTR-i) Is people-oriented, is a motivator, builds personal relationships, likeable, has interpersonal skills, cares for others

Commitment from others Decisions need to be forced is critical, or sensitive through, or conflict is being situations avoided

Ideological leadership: ISFP/INFP, introverted feeling (Jung), or campaigning (MTR-i) Is value-driven, has passion for key issues, focuses on important themes, champions the cause

The group has lost its sense of identity, or it is doing too many unimportant things

There is a problem that needs to be solved with dispassionate objectivity (e.g., technical issues)

Change-oriented leadership: ENTP/ENFP, extraverted intuition (Jung), or exploring (MTR-i) Tries things that are new, prototypes, introduces change, looks for unexpected outcomes, creates new opportunities, experiments

The group is “stuck in a rut,” or the status quo needs to be challenged

There are already too many initiatives under way and some stability is needed

Visionary leadership: INTJ/INFJ, introverted intuition (Jung), or innovating (MTR-i) Develops long-term vision, produces radical ideas, foresees the future, anticipates what is outside current knowledge

Radical change is needed, or change is a long-term activity

There are immediate dangers and the group may not survive in the short term

Action-oriented leadership: ESTP/ESFP, extraverted sensing (Jung), or activating (MTR-i) Takes action, produces results, leads from the front, sets an example, does what is asked of others

There is some inertia, or lack of achievement has destroyed motivation

The group is being too expedient, or current success may ebb in the future

Goal-oriented leadership: ISTJ/ISFJ, introverted sensing (Jung), or clarifying (MTR-i) Observes, listens, clarifies goals, establishes realistic expectations, makes aims crystal clear

The direction is vague, or There are already too many expectations have not goals or too much information been articulated

Executive leadership: ESTJ/ENTJ, extraverted thinking (Jung), or conducting (MTR-i) Organizes, makes plans, sets measurable There is chaos/lack of There are so many processes goals, coordinates work of different organization, or there are that creativity has been stifled people, manages resources no measures of achievement Leadership theorist: ISTP/INTP, introverted thinking (Jung), or analyzing (MTR-i) Analyses, uses models, produces explanations, compares other situations, engages in intellectual debate

The situation is complex or driven by technical solutions

People’s feelings are paramount, or the group becomes caught in circular arguments

Source: Based on Team Technology. (n.d.). Leadership styles based on Myers Briggs/Jungian theory. Retrieved June 18, 2013, from http://www.teamtechnology.co.uk/leadership-styles.html#sthash.C8KSFxyF.dpuf.

TABLE 2.2 Using Myers-Briggs Type in Different Situations Big 5 Traits

Corresponding MBTI Characteristic(s)

Openness to inquiry and experience

N (Intuition) and P (Perceiving)

Conscientiousness

S (Sensing) and J (Judging)

Extraversion

E (Extraversion)

Agreeableness/tact

F (Feeling)

Stability under stress (nonneurotic)

T (Thinking) and I (Introversion)

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worldview/governing variables Beliefs, feelings, intentions, and interpretations of events (e.g., interactions, consequences, accountability issues) that govern our reactions to, and learning from, life events. Governing variables are usually considered subconscious and are formed in reaction to our interpretations of previous life events and our tendency to generalize (accurately or inaccurately) these interpretations to current and future events.

We’ve discussed the traits and skills related to predicting effective leadership behavior. As you can see from Table 2.2, Big 5 traits and MBTI characteristics can be related to one another to understand how these concepts apply to leadership. Of importance is the leader’s ability to hear critical feedback, be cool under stress, and value “openness to inquiry.” Next we explore the internal dynamics of leaders who refuse to be open to inquiry, are closed to feedback (at least in certain areas), and are resistant to challenging their beliefs (worldview/governing variables). Often these governing variables or worldviews serve to protect them from inquiry by discounting either the person giving the feedback or the need to hear critical feedback.

Key Takeaways • Interpersonal skills are one of the most important factors in leadership success. Inadequate interpersonal skills, especially in the areas of agreeableness/tact and openness to inquiry, can cause leader derailment (failure/removal). • The Big 5 traits can help predict successful leadership, and leaders should strive to appreciate these traits and the skills that derive from them. • Emotional intelligence can be viewed as the applied interpersonal skills and styles that derive from the Big 5 characteristics of extraversion, agreeableness/tact, and stability under stress. • The leader’s MBTI profile provides one way to help us see how we are “hardwired” to be naturally comfortable with, or cumbersome in, specific areas of the Big 5 and/or emotional intelligence.

Exercises 1. Perform the Big 5, Emotional Intelligence, and MBTI self-assessments. 2. Review the three assessments and summarize your results for all three. Pay special attention to themes, threads, and overlapping areas. 3. List the Big 5 (OCEAN) traits and apply how your profiles, from number 2, allow you to be naturally comfortable with the specific Big 5 traits. 4. List the Big 5 (OCEAN) traits and apply how your profiles, from number 2, may make valuing and/or acquiring these skills difficult or cumbersome.

2.3 Single- and Double-Loop Learning Learning Objectives 1. Identify and evaluate the impact of single- and double-loop learning in the workplace. 2. Discuss and identify the advantages and disadvantages in leadership associated with singleand double-loop learning. 3. Identify and apply theories of “worldview/governing variables” on our openness to inquiry and change.

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Single- versus Double-Loop Learning Understanding this model in a self-assessment context is important. The single- versus doubleloop[18] learning models describe two styles in the acquisition of skills and knowledge, or know-how. Single-loop learning is what allows you to simply perform a job effectively in avoiding negative consequences. Single-loop learning can be viewed as mostly transactional in nature—where if my behavior has negative consequences, I will change it to reduce consequences. In this type of learning style, I am unlikely to look at, review, or contemplate changing my worldview or internal “governing variables” that justified or drove my initial behavior that resulted in negative consequences. In leadership, our style should be mostly double-loop learning. In this type of learning, the ability to understand why a certain action was successful or unsuccessful—also known as “knowwhy”—is expanded to include a review of our worldview/governing variables. The advantage to this type of learning, in a self-assessment perspective, is you begin to understand not only why certain actions worked and why others didn’t but the beliefs and governing variables that drive these behaviors. This deeper level of learning is imperative for the leader to understand. It isn’t to say single-loop learning isn’t important, because it is, but if we can begin to understand why certain things occur in our organization, we can take that knowledge and apply it to both single- and double-loop learning in our self-assessment process. For example, if you have an interaction that “goes bad” with an employee, using double-loop learning is most effective to determine why it was unsuccessful and how you can apply this insight in multiple situations. To review our worldview, and possibly refine it, requires openness and emotional stability.

Video Clip 2 This short video explains the difference between single- and double-loop learning from a management perspective.

View in the online reader

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single-loop learning A reaction cycle that allows individuals to change their reaction or behavior to a situation or set of events while avoiding accountability for their part in the outcome of the events. Furthermore, their interpretation of the event, especially when involving negative consequences to themselves and others, will not use self-reflection or openness to inquiry. Lastly, single-loop learners are more likely to view accountability and critical feedback as persecution or oppressive in nature.

double-loop learning A reaction cycle to consequential events where the individual automatically becomes alert to the governing variables involved in his or her actions. Furthermore, the individual values and is able to review and adjust his or her worldview/ governing variables and learn from the event. Lastly, double-loop learners report more internal locus of control and an increased ability to take responsibility for mistakes without experiencing significant destabilization of their identity, needing to defend themselves, or needing to interpret critical feedback as persecution or oppressive in nature.

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FIGURE 2.1 Double-Loop Learning Double-loop learning allows us to not only change our behavior but change or alter the worldview/governing variables that drive or justify our behavior.

As you have guessed, as a leader, we should continually self-assess, self-reflect, and identify where we may need to develop skills, in spite of needing to challenge deep-seated, long-held beliefs (worldviews/governing variables). Many of these worldviews/governing variables are in the subconscious realm and require us to listen to feedback from our peers and followers alike. Leaders who either are naturally open to inquiry (Big 5) or see the benefit of taking feedback are more likely to be double-loop learners. In addition, understanding how to relate to others based on their personality type (rather than your own) can create effective leadership skills. Once we have assessed ourselves, we can create leadership plans based on our strengths and weaknesses. Double-loop learning in leadership can help us understand the underlying assumptions and beliefs about what we do as leaders.

Source: © Thinkstock

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As we can see in our opening scenario, Carol presented herself as a single-loop learner. She experienced uncomfortable emotions related to receiving feedback and likely had an internal driver (worldview/governing variable) that justified her dismissive, defensive, and generally negative reaction to Bill’s feedback. Carol’s worldview/governing variables are likely to revolve around her belief that it is imperative to “reject all critical feedback from direct reports, as critical feedback to her is always rude and disloyal”; “she must be viewed by her followers as all-knowing and perfect, otherwise she is incompetent”; and “to admit weaknesses or mistakes to a follower is to become vulnerable.” For Carol to successfully change and refine her interpersonal skills (Big 5 and emotional intelligence) would require her to challenge these worldviews and, ultimately, alter them. She would need to become a double-loop learner. Her altered or new worldviews could be described as coming to believe that “critical feedback, presented in private by a follower who wants me to be more successful, is a potential gift”; “no one is perfect, and I should role-model taking feedback and admitting my imperfections to help my followers grow in their leadership effectiveness”; and ultimately, “admitting weaknesses, without getting defensive, is a sign of strength.”

Video Clip 3 This video features entrepreneur and billionaire T. Boone Pickens, and his tips on leadership development.

View in the online reader

Key Takeaways • Understand and apply the concept of single- versus double-loop learning to leadership skills. • The development of leadership skills involves many of the same concepts, steps, and bravery required of individuals engaged in successful psychological counseling and personal change endeavors. • Single-loop learners are likely to have high levels of neurosis, defensiveness, and resistance to change. • Single-loop learners are more likely to see accountability as a form of oppression.

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Exercise 1. Review the scenario involving Carol and Bill. Thinking about the single- versus double-loop learning concepts, as applied to Carol, attempt to identify and analyze your personal worldviews/governing variables as they relate to your past reactions to uncomfortable life events.

2.4 Chapter Summary and Case Chapter Summary • Effective interpersonal skills for leadership can be learned or perfected, and they derive from emotional intelligence. • The Big 5 is a useful categorization scheme of identifying and evaluating effective leadership traits and skills. • The MBTI is one personality assessment to help us self-assess and reflect on how we are naturally skilled or value certain communication, decision-making, judgment, interaction, and data collection styles. • Worldview/governing values have significant impact on our ability to improve our interpersonal skills. • Inattention to our interpersonal skills will increase the likelihood of leadership failure (derailment). • Single-loop learning is a common process for avoiding responsibility for mistakes, the need for change, and altering dysfunctional worldviews/governing variables.

Chapter Case Please review our introductory scenario involving Carol and Bill. Attempt to apply the single- versus double-loop learning concepts to Carol by analyzing and identifying her likely worldviews/ governing variables and by predicting the likely consequences to Carol if she does not alter her governing variables. Last, discuss and project your thoughts on what actions Carol could take to improve her interpersonal skills.

Endnotes 1. Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: Pearson. 2. Argyris, C., & Schon, D. (1974). Theory in practice: Increasing professional effectiveness. San Francisco, CA: Jossey-Bass. 3. Collins, J. (2001). Good to great. New York: HarperCollins. 4. Katz, R. (1955). Skills of an effective administrator. Harvard Business Review, 33(1), pp. 33–42. 5. McCall, M. W., Jr., & Lombardo, M. M. (1983). Off the track: Why and how successful executives get derailed (Technical Report No. 21). Greensboro, NC: Center for Creative Leadership.

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6. Siang, L. Y. (2006). How to get promoted: 9 obvious and often not practiced tips. Retrieved March 13, 2012, from http://www.career-successfor-newbies.com/how-to-get-promoted.html 7. Costa, P. T., Jr., & McCrae, R. R. (1992). Revised NEO Personality Inventory (NEO-PI-R) and NEO Five-Factor Inventory (NEO-FFI) manual. Odessa, FL: Psychological Assessment Resources. 8. Bligh, M. (2010). Personality theories of leadership. In J. Levine & M. Hogg (Eds.), Encyclopedia of group processes & intergroup relations (pp. 640–643). Thousand Oaks, CA: SAGE Publications. Retrieved February 12, 2013, from http://www.sagepub.com/northouseintro2e/study/ chapter/encyclopedia/encyclopedia1.2.pdf 9. Bligh, M. (2010). Personality theories of leadership. In J. Levine & M. Hogg (Eds.), Encyclopedia of group processes & intergroup relations (pp. 640–643). Thousand Oaks, CA: SAGE Publications. Retrieved February 12, 2013, from http://www.sagepub.com/northouseintro2e/study/ chapter/encyclopedia/encyclopedia1.2.pdf

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10. Bligh, M. (2010). Personality theories of leadership. In J. Levine & M. Hogg (Eds.), Encyclopedia of group processes & intergroup relations (pp. 640–643). Thousand Oaks, CA: SAGE Publications. Retrieved February 12, 2013, from http://www.sagepub.com/northouseintro2e/study/ chapter/encyclopedia/encyclopedia1.2.pdf 11. Bligh, M. (2010). Personality theories of leadership. In J. Levine & M. Hogg (Eds.), Encyclopedia of group processes & intergroup relations (pp. 640–643). Thousand Oaks, CA: SAGE Publications. Retrieved February 12, 2013, from http://www.sagepub.com/northouseintro2e/study/ chapter/encyclopedia/encyclopedia1.2.pdf 12. Bligh, M. (2010). Personality theories of leadership. In J. Levine & M. Hogg (Eds.), Encyclopedia of group processes & intergroup relations (pp. 640–643). Thousand Oaks, CA: SAGE Publications. Retrieved February 12, 2013, from http://www.sagepub.com/northouseintro2e/study/ chapter/encyclopedia/encyclopedia1.2.pdf 13. McCrae, R. R., & Costa, P. T. (1987). Validation of the five-factor model of personality across instruments and observers. Journal of Personality and Social Psychology, 52, pp. 81–90.

14. Goleman, G., Boyatzis, R., & DiMatteo, M. (2002). Personal leadership: Realizing the power of emotional intelligence. Boston: Harvard Business School Press. 15. Goleman, D. (1998). Working with emotional intelligence. New York: Bantam. 16. Conger, J. (1998). Winning ’em over: A new model for management in the age of persuasion. New York: Simon & Schuster. 17. Shannon, E. (2011, December 6). 10 ways to improve your people skills and raise your emotional intelligence. Retrieved February 15, 2013, from http://academy.justjobs.com/improve-your-people-skills-and-emotionalintelligence 18. Argyris, C., & Smith, M. (2001). Theories of action, double-loop learning and organizational learning. Infed. Retrieved February 26, 2013, from http:/ /www.infed.org/thinkers/argyris.htm

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CHAPTER 3

Leadership Theories and Styles It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. The difference manifests itself in the care taken by the servant—first to make sure that other people’s highest priority needs are being served. — Robert Greenleaf

3.1 Power and Leadership Matt knows history is replete with examples of leaders whose unique personality traits and character—and the leadership situations they found themselves in—required them to use a variety of leadership styles to influence followers in accomplishing the organizational vision and its immediate mission. As the chief executive officer, his style would be judged as good or bad based on not only the accomplishments of his followers in achieving the desired end state of the company but also the specific style he chooses to adopt for the situation with which he is presented. If he chooses the wrong style, he may achieve the mission but lose credibility (referent power) as a result of the manner he used to influence the stakeholders of the organization. Possessing “good” or “bad” leadership character is formulated in the eye of the beholder, and this judgment is reserved for the end of the leader-to-led process. Each time he asserts a particular style, he becomes a change agent to influence and affect the lives of stakeholders, be it the public, followers, subordinates, family members, or peers. In the end, the stakeholders become the ultimate judges of his character and whether his leadership style established or degraded their trust and confidence in his leadership credibility (expert and referent power).

3.2 Leadership Theories Learning Objectives 1. Understand personal leadership characteristics, traits, and attributes. 2. Define leadership theories that best fit your leadership personality. There are several theories to review in the study of leadership. Each author conducting a study on a particular leadership theory provides a unique conceptualization or perspective of how leadership is defined in its application of theory. This section classifies leadership theories according to the types of variables that are most emphasized in a selected theoretical approach. Leadership variables are often classified in terms of three characteristics—namely, those of the leader, follower,

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and the situation. The “Key Variables in Leadership Theories” sidebar identifies the key variables of each leadership theory and its corresponding characteristics. integrative approach Includes more than a single variable of theoretical study, often combining more than two theories.

This section discusses five approaches to the study of leadership. They are the trait, behavioral, power-influence, situational, and integrative approaches. No theoretical approach in and of itself guarantees leadership success. Instead, a variety of leadership methods should be used to achieve leadership success. However, research explains the progress in discovering how leadership theories relate to the exercise of leadership with regard to the leader, the follower, and situational characteristics.

Key Variables in Leadership Theories Characteristics of a Leader • Traits (motives, personality) • Values, integrity, and moral development • Confidence and optimism • Skills and expertise • Leadership behavior • Influence tactics • Attributions about followers • Mental models (beliefs and assumptions) Characteristics of Followers • Traits (needs, values, self-concepts) • Confidence and optimism • Skills and expertise • Attributions about the leader • Identification with the leader • Cooperation and mutual trust Characteristics of the Situation • Type of organizational unit • Size of organizational unit • Position power and authority of leader • Task structure and complexity • Organizational culture • Environmental uncertainty and change • External dependencies and constraints • National cultural values

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Approaches to Leadership Theory Trait Approach Trait approach theories study any exceptional or distinct qualities differentiating the leader from the followers, with the implication that it should be possible to identify a leader based on those traits. Most research in this area, beginning in the 1940s, focused on the individual traits and consequences of the leader’s behavior in displaying specific traits. Chapter 3 gives detailed reviews of performance evaluations using the Leadership Practices Inventory (LPI) as an example of looking at the combination of traits and personalities that form a leader’s character. Bernard M. Bass[1] conducted a mega study using fifty-two organizational surveys. In reviewing these surveys, he identified trait factors that appeared three or more times in any one organizational survey identifying a comprehensive list of traits used by organizational leaders (see the sidebar “Bernard Bass Trait Factors Appearing in Three or More Leadership Studies”). Also highlighted in Bass’s work is whether the leader or employee possesses one or more specific traits that lend to or detract from achieving organizational success.

Bernard Bass Trait Factors Appearing in Three or More Leadership Studies • Technical skills • Social nearness, friendliness • Task motivation and application • Supportive of the group task • Social and interpersonal skills • Emotional balance and control • Leadership effectiveness and achievement • Administrative skills • General impression (halo effect) • Intellectual skills • Ascendance, dominance, decisiveness • Willingness to assume responsibility • Ethical conduct, personal integrity • Maintaining a cohesive work group • Maintaining coordination and teamwork • Ability to communicate, articulation • Physical energy • Maintaining standards of performance • Creative, independent • Conforming • Courageous, daring • Experience and activity • Nurturant behavior • Maintaining informal control of the group • Mature, cultured • Aloof, distant

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trait approach States that leaders are endowed with superior, unique, or inherent qualities, or naturally occurring tendencies, differentiating them from followers.

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Video Clip 1 This TED Talk by Drew Dudley discusses leadership traits in our daily lives.

View in the online reader

Behavioral Approach behavioral approach This theoretical approach focuses on the leader’s observable behaviors that influence followers to commit their actions to meet the specified task requirement of the leader. The theory stipulates the leader’s behavior is the cue that evokes the followers’ actions to accomplish a task or behave in a certain manner.

path-goal theory The leader reinforces change in a follower or subordinate by providing or showing the follower the “path” to the rewards available.

actions The accomplishment of one or more activities or things, usually over a period of time, in stages, or with the possibility of repetition, including major activities leaders perform in the areas of influencing, operating, and improving.

A way to better understand the behavioral approach involves an understanding of the path-goal theory[2] in terms of the operant conditioning of the follower to perform a required task or behave in a certain manner. An example of the path-goal theory is when the leader reinforces the desired change behavior in a follower or subordinate by demonstrating what reward is available to him or her. The leader shows the follower the “paths” (behaviors) through which the reward may be obtained. The focus of this particular theoretical approach is on the leader’s observable behaviors (actions) that influence followers to commit their actions to meet the specified task requirement of the leader. The path-goal theory stipulates the leader’s behavior is the operant condition cue that evokes the follower’s actions to accomplish a task or behave in the desired manner the leader is seeking. The cue often begins with the leader communicating (written or verbal) an organizational task with a purpose, such as when a leader directs a follower to complete a report (task) in order to assess the number of customer uses per type of service (purpose). The leader is performing (behaving) his or her role by eliciting a cue to the follower to begin accomplishing a task. The desired follower’s behavior to complete the report and meet the purpose of the task is in response to the leader’s initial behavioral cue. The follower’s actions to accomplish the task can act as a positive or negative consequence for the leader, reinforcing other actions from the leader that are dependent on the follower succeeding or failing at the task. Such responses may come in the form of a punishment, based on a negative consequence, or extinguish the leader’s subsequent behaviors on how he or she may cue or communicate future actions. A leader’s behavioral approach may not come from the leader’s cue but instead originate from one or more environmental cues. In this case, in the leader’s absence, an environmental situation may influence or cause the follower to perform certain organizational tasks without the leader communicating a task or purpose. This is an example where leaders do not directly cause followers’ behavior, though they do influence them by stating their intent (which can act as a communication cue) if an environmental condition or stimulus of a particular nature occurs. In this sense, the leader’s intent causes the follower to take action based on the environmental cue rather than the leader’s direct communication. Situational conditions, or cues, are important for leaders to recognize. Leaders will not always be present to “cue” the follower to take action. Because of this, leaders may set the conditions or provide a stimulus (positive or negative reinforcement cue), such as creating standard operating procedures in case of emergency responses at a school or in the workplace

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(like snow or ice storm days). The desired behavioral response the leader wants from the follower is either delayed arrival or absence. The consequence of not following the standard operating procedure, based on the situational condition, could be harmful to the employee or organization by causing safety violations. Not following such environmental cues may influence future leader and follower behaviors.

Power-Influence Approach This research approach involves a dyadic leader-follower relationship. Like most research on traits and behavior, some of the power-influence research takes a leader-centered perspective with an implicit assumption that a cause to effect, where the cause is the leader’s action and the effect is the followers’ reaction, involves a dyadic leader-to-led influence approach, where the leaders direct a task and purpose and the followers react to perform the task within the stated purpose of the action. The effectiveness of leadership power is examined in this approach in terms of the amount and type of personal and position power a leader has and how the power is managed. Chapter 4 presents a detailed section on what leadership power is and how leaders and followers use power to influence each other. Leadership power in this approach is viewed as a means to influence the behavior of not only followers but also peers, superiors, and other stakeholders coming in contact with the organization. As an introduction to position and personal power, the following definitions are offered: • Position power includes potential influence derived primarily from the opportunities inherent in a person’s position in the organization or from attributes of the leader and leader-follower relationship. There are five types of position power: legitimate, reward, information, coercive, and ecological. • Personal power includes potential influence derived from the leader’s task expertise and potential influence based on friendship and loyalty to the leader from the led. There are two types of personal power: expert and referent. Gary Yukl states the desired outcome of power for effective leaders indicates a reliance on their personal power more than on position power. Personal power includes expert and referent power, yet the more effective leaders are identified with using expert power more than referent power and as having a moderate amount of position power in the organization.[3] Power relationships in organizations are never static, as situations and organizational climate conditions constantly change the type and quantity of power used to meet the leadership demands presented by followers, subordinates, or teams. The social exchange theory, strategic contingency theory, and theories about the institutionalization of power explain how power is gained or lost in organizations. A discussion of power relationship follows a brief introduction to the social exchange and strategic contingency theories: 1. Social exchange theory. Richard M. Emerson describes the basic concepts of social exchange theory to include an understanding that most of them are employed as analytical tools within an exchange relationship.[4] Emerson believes that a leader’s use of analytical tools or resources is only effective when the social exchange of these tools is valued by the people involved in the exchange. An example of an employee agreeing in the social exchange between the leader and the led is when the leader uses position power components, such as a monetary reward or the coercive punishment tactic, with the purpose of reinforcing or extinguishing wanted or unwanted behavior. In addition, if employees identify with the organization, agree with the material resources offered, agree to the required level of productivity and profit sharing, and/or agree with the desired outcome of the organization’s vision, then the social exchange between the leader and the led will work. In summary, the use of any one of these examples can only be effective if the led “value” the exchange being proposed by the leader. In this case, resources are not possessions or attributes or qualities of any one focal leader but are relationship attributes between the leaders and the led. The examples are the basic concepts

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power-influence approach Studies influence processes between leaders and others. It is a leader-centered perspective that proposes that causality occurs when the leaders direct and the followers act on the direction.

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that involve psychology and the economic exchange of a good or service between one person and another. Emerson holds to the point that the basic conceptions of exchange are few in number and their meaning is fairly stable between the leader and led, as well as each being related to a predetermined level of value between the leader and led. Value provides the overarching stimulus or cue for motivating the social exchange between the leader and led. Emerson also states that reinforcement is the most simple and fundamental point of departure for most of the other concepts. An example is that a reward is similar to a positive reinforcement cue but with an understanding that the leader communicates it to the follower. A similar example is that a resource can be considered an ability, possession, or other leadership attribute that has the capacity to reward or punish a follower for the accomplishment of a task. Other examples include overt negotiation, bargaining, and joint decision making, each of which can be considered forms of social exchange.[5] 2. Strategic contingency theory. This theory describes how some organizational subunits gain or lose power to influence important decisions. An example is a subunit determining or influencing the organization’s competitive strategy. Uncertainty, according to D. J. Hickson, is defined as a “lack of information about future events so that alternatives and their outcomes are unpredictable.”[6] A leader’s personal (expert and referent) power comes from his or her ability to cope with uncertainty. With this ability, the uncertainty can be reduced, and people and organizational subunits become dependent on the leader’s power for survival, and the leader receives referent power from his or her followers based on their ability. In this way, a leader uses expert power to help problem solve to impose regularity on uncertainty in the situations the organization faces. D. J. Hickson argues that if employees are solely dependent on the leader for solutions, they are limiting their ability to become empowered or function on their own without the focal leader’s guidance. In this case, the followers totally subjugate themselves to the leader as the sole source of decision-making power based on his or her expertise. The leader may not gain referent power following this approach, but the follower is destined to be confined to performing his or her skill set and only able to function in his or her specified suborganization knowledge area. In this case, the follower is dependent on the leader who controls his or her activities, allowing the leader to dictate his or her activities, often using a transactional leadership style. An example is when a leader demonstrates a unique scope of expertise, or professional skill, in problem solving that creates a larger gap in personal-expert power between the leader and led, to the extent that the led are dependent on the leader’s unique expertise. In this case, the leader can control the followers’ behaviors based on the leader’s expert decision-making power. According to Hickson, if followers working in a suborganization are dependent on the leader for a single solution and cannot offer an alternative, then the followers are dependent on the leader’s specialized skills. The leader having specialized skills provides them with an advantage where the leader has greater control of them.[7] Subunit organization dependencies can override situational uncertainties in assessing how much power exists for a leader if there are appropriate power checks and balances, even in a line-andstaff organization such as the military, where position (legitimate) power authority is vested at each level of leadership. Yet in this very constrained leadership organizational structure, subunit dependencies on the leader can override organizational uncertainty in how much power exists for a leader through defined regulations and known responsibilities at each level of authority. In addition, each subunit works with an understanding of the “intent” of the leader above them. This in itself provides the subunit organizational leader and followers with less dependency on the organizational focal leader during the course of executing their duties and responsibilities. “Here is where the strategic contingency theory may not promote efficiency, functionality, or rationality.”[8] That is, there may be cases where it should not be used in developing leaders, as they become the overall expert that all units and their subunits are dependent on to solve problems.[9] An alternative developmental approach to lessen the control a leader has on a subunit is to educate suborganization personnel on how to act without the leader’s expertise and presence. This can be accomplished by subunit personnel learning how to perform their duties and responsibilities by following the leader’s intent. The amount of status and power given to an elected or emergent leader by other members of the group depends on the individual’s traits, attributes, and values. Examples are loyalty, skill com-

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Leadership Theories and Styles

petence, and level of contribution to the attainment of shared goal. Amount of status (personal or position power) can also be linked to control over scarce resources (funding or material), access to unique or critical information (position information power), individual knowledge or expert skill (personal expert power), or the ability to perform a critical collective task. Authority in the form of position power (personal expert power) for appointed leaders can make them less dependent on subordinate evaluations of their competence. Leaders can gain influence from repeated demonstration of expertise (personal expert power) and loyalty to subordinates to gain personal power (personal referent power). A psychological explanation of interpersonal influence involves understanding the motives and perceptions of the follower in relation to imitating the leader’s actions in the context in which the interaction occurs.[10] The leader’s ability to use interpersonal influence by way of personal power, or with the use of position power, can achieve the desired effect without having to coerce the follower to perform an action required to achieve the leader’s intended outcome for a goal or objective. The use of a leader’s influence in this way involves an attempt to shape the attitude and behaviors of stakeholders of the organization, employees, peers, and superiors who want to collaborate in achieving the organization’s mission. Three different types of influence processes are recognized by Yukl:[11] 1. Instrumental compliance. This process involves followers carrying out requested actions to obtain rewards for their efforts or performing tasks to avoid a punishment legitimately authorized or controlled by the leader. The motive for performing the task is purely instrumental and is used to gain some tangible benefit for followers to complete given tasks.[12] 2. Internalization. This focuses on building a long-term foundation of the leader’s objectives, where they are accepted by a follower’s beliefs, attitudes, and values. These are intrinsically accepted by the follower where he or she is committed to achieving the desired outcome to the leader’s objectives. Internalization is often associated with obtaining knowledge, training to learn a skill, or adopting ideas or beliefs. Internalization often requires habitual tasks to “internalize” the practice.[13] 3. Personal identification. The follower imitates the leader’s behavior or adopts the same attitudes to please the leader and to be like the leader. The motivation to identify with the leader can result in follower innovativeness, commitment to the leader’s objectives, and reduced turnover in the organization. Personal identification can significantly improve the dyadic relationship between the leader and led, resulting in followers accepting the leader and building their personal self-esteem through identifying with the leader.[14] Influence tactics are the types of behavior used intentionally to influence the attitudes and behavior of another person. According to Yukl, there are three general types of influence tactics that can be differentiated according to their primary purpose:[15] 1. Impression management. Impression management is a goal-directed influence process (e.g., ingratiation or self-promotion) and can be a conscious or subconscious attempt to influence the perceptions of others. It can involve the use of communication, grooming, behaving, or dressing in a certain manner to form a perception of oneself to another person or group of people. Leaders can use this to influence followers, or vice versa, to achieve a desired goal or objective. 2. Compliance. The follower acts or is in the process of complying with fulfilling a desired task or proposal willingly but is apathetic rather than enthusiastic about it and will commit to only a minimal effort to perform the task. The follower is not convinced that the decision or action is the best thing to do or even that it will be effective for accomplishing its intended purpose. Compliance may be the only necessary effort to perform simple routine task.[16] 3. Resistance. The follower is opposed to, denies, or rejects a proposal or request to perform a task rather than being indifferent about it. Resistance can take several different forms:[17] a. Outright refusal to carry out the request b. Providing justification of why it is impossible to carry out the request c. Trying to persuade the leader to withdraw or modify the request

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d. Requesting for higher-level authority to countermand the request to support the follower e. Using delay tactics in the hope that the leader might modify the request or delaying in performing the task in order to run out of time and make the task insignificant f. Feigning like the task is being completed but sabotaging its ability to be executed Leadership influence attempts also affect interpersonal relationships and the way followers perceive a leader; for example, a leader can be viewed as ethical, supportive, likable, competent, and trustworthy and be of strong moral character. Several outcomes of influence tactics are possible, including improving the leader-to-led relationship, making it less frictional, or making the relationship a more cooperative or collegiate one. Gary Yukl, Richard Lepsinger, and Antoinette Lucia[18] provide eleven examples of proactive influence tactics leaders can use in the performance of their duties. Four of these are considered core influence tactics and include rational persuasion, consultation, collaboration, and inspirational appeals (Table 3.1). The other seven are listed in Table 3.2. TABLE 3.1 Four Core Influence Tactics Tactic

Definition

Example in Use

Rational persuasion

Use of explanations, logical arguments, and factual evidence to explain why a request or proposal will benefit the organization or help to achieve an important task objective.

Andy explains to executives that using a percentage of the annual profit is necessary for the company’s strategic future. He explains the revenue attained in the last two quarters reflects an unexpected growth in profit that can now be used to help expedite the research and development of their new product.

Consultation Involves inviting the employee to participate in planning how to carry out a request, revise a strategy, or implement a proposed change.

Sam gathers the staff to conduct a strength, weakness, opportunity, and threat (SWOT) analysis to determine the company’s fiscal strategy for next year.

Collaboration Involves an offer to provide Matt and Sam agree to provide their time and necessary resources and/or individual expertise to Andy if he agrees to help them assistance if the employee develop the next quarter’s activities calendar. agrees to carry out a request or approve a proposal. Similar to exchange in that both offer to do something for the employee but differs in the underlying motivational processes and facilitating conditions. Inspirational appeals

Involves an emotional or value-based appeal, in contrast to the logical arguments used in rational persuasion and apprising. It is an attempt to develop enthusiasm and commitment by arousing strong emotions and aligning a request or proposal to a person’s needs, values, hopes, and ideals.

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Matt gathers the company’s leaders to deliver an emotional speech. He informs the group that at the beginning of the year they all agreed to attain the mission objectives for the year. They are now entering the last quarter, and even though they are slightly ahead of predicted outcomes, they cannot become complacent and expect to achieve the end state without their expertise. By fully participating, they will not only meet the company’s objectives but raise the hopes of those that work in their departments.

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TABLE 3.2 Seven Proactive Influence Tactics Tactic

Definition

Example in Use

Exchange

The leader offers an incentive, suggests an exchange of favors, or indicates willingness to reciprocate at a later time if the follower will do what the leader requests.

Katy, the store manager, offers Bill extra hours with double pay for expediting a project’s completion to standard.

Apprising

The leader explains how carrying out a request or supporting a proposal will benefit the follower personally or help advance the follower’s career. May involve the use of facts or logic. Benefits are for the target person, not for the organization or the mission.

Kacy informs her subordinate how to complete a task usually reserved for her level of authority and responsibility. Kacy states that performing the task will help her subordinate develop a key skill for her career advancement.

Ingratiation

The leader uses praise and flattery before or during an influence attempt or expresses confidence in the follower’s ability to carry out a difficult request. It is more credible and meaningful when the leader has higher status and expertise than the follower.

A key briefing is about to begin to a US state governor concerning emergency management, but Phil sees his executive officer (XO) is lacking confidence. The XO states he is unsure of his ability to conduct the briefing as he has not done it before. Phil, having held the same position previously, taught and coached the executive officer and reassured him that, as the commander, he was highly confident in the XO’s communication skills and knowledge of the topic.

Personal appeals

The leader asks the follower to carry out a request or support a proposal out of friendship, loyalty, or appeal to a person’s kindness or generosity. It involves asking for a personal favor before saying what it is. More useful in activities unrelated to work activities. Most effective with a peer or subordinate. Asking a boss may be frowned on by peers as it involves equity issues.

Sam, in preparation for a surprise after-work group activity, asks Cody if he would mind doing him a favor outside of company hours. As it is a surprise that includes members of Sam’s staff, he does not tell Cody what the task is until after he accepts.

Legitimating The leader seeks to establish the legitimacy of a request or to verify the authority to make it by referring to rules, policies, contracts, or precedent. Unlikely to be questioned for routine requests; likely to be questioned when request are unusual and clearly exceed leader’s authority.

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Andy informs his staff that according to company regulation, they are required to conduct a monthly inventory of the company’s sensitive or high-value items as listed in policy number ten (Inventory of Sensitive Items).

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Tactic

Definition

Pressure

The leader uses assertive demands, 1. As the community service chair, threats, frequent checking, or persistent Danielle reminds her fellow workers reminders to influence the target to carry that they are obligated to have the gift out a request. Useful to obtain packets for the food bank completed compliance with employees who are lazy by the following week. or apathetic. Pressure is not likely to result 2. Having just completed a walkthrough in commitment and may have serious side inspection of an area that was effects. supposed to meet company standards, Hal cataloged several major Harder forms: Threats, warnings, and deficiencies. His department is being demands are likely to cause resentment inspected by headquarters in and undermine working relationships. forty-eight hours. Because of this, he Softer forms: Persistent requests and unceremoniously states to the staff reminders of obligations are more likely to that he will conduct another inspection gain compliance without undermining the in twenty hours, and he demands relationship with the target person. every deficiency be corrected to meet the company standard.

Coalition

The leader seeks the aid of others to persuade the employees to do something or uses the support of others as a reason for the group to agree. Partners may participate in influence attempts toward the employee, or the leader may only use their endorsement of a request or proposal. When partners are involved, they usually use rational persuasion, exchange, or pressure to influence the target. When used on superiors, it is sometimes called an upward appeal.

The power-influence approach to leadership is one where the leader may utilize power either positively or negatively to influence employee behavior.

Source: © Thinkstock

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Example in Use

1. Bev seeks out the aid of Chris, a peer, to help her convince another peer, Tony, to keep a high standard of self-conduct at work. She is worried that Tony will inappropriately state something offensive that would result in a human resource complaint against him. 2. Phil informs his superior that what the superior is about to order is unethical, and he needs to stop the communication of the task he is about to issue to a subordinate.

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Situational Approach The situational approach is another possible approach. Situational theories, such as Hersey-Blanchard’s leadership theory, help people choose the right leadership style for their situation. Situational leadership theory[19] states that leaders should change their leadership styles based on the maturity of the people they are leading and the detail of the tasks to be performed. The theory states leaders should change their behaviors based on (1) the competence of the followers (this can be conceived of as maturity/development) and (2) the commitment of the followers (not the detail of the task). In this case, the leader can focus his or her behavior on either the relationship with the followers or the task. Increasing or decreasing the emphasis on the task or on the followers becomes the leader’s focus in achieving the organizational goal. In this approach, the situation influences the demand that determines who will emerge as a leader for any given situation. For example, a situational theorist will contend that an emerging leader will appear in response to revolutionary upheaval, chaotic politics, social and economic distress, and the weakening of traditional institutions. In these situations, the emerging leader is a result of time, place, and circumstance, and the leader cannot help what he or she does since the result is directed and controlled by the historical moment. An example of a historical crisis can be found when looking at the BP oil spill in the Gulf Coast of the United States in April 2010, where Lieutenant General Russel Honoré[20] was called on to serve as the crisis manager to mitigate the oil spill and its effects. In the founding of Apple Computer, Steve Jobs’s initial role as the top executive of the company is another great example of a person exercising situational leadership.[21] In 1981, Apple Computer went public and within two years attained Fortune 500 status. Jobs, at the time, also recruited John Sculley, then head of Pepsi-Cola, to be the new chief executive officer (CEO). A leadership power struggle erupted between Sculley and Jobs in 1985 when Apple’s board of directors sided with Sculley to remove Jobs from his leadership of the Macintosh project team. At the time, Jobs was Apple’s “visionary leader.” The economic and business environment dictated that Jobs assume the leadership role that put him in charge of a team that would develop Apple’s new revolutionary product, the Macintosh computer. Jobs influenced the situation by creating his own product team and then separating them from the core of Apple into a separate building with their own identity. This created a situational atmosphere of a company within a company, which ultimately created friction. Even though Jobs was successful in developing and debuting the Macintosh computer in 1984 to widespread acceptance among consumers, the sales did not match the rhetoric, thus placing the company in a negative financial position. This furthered the deteriorating relationship between Jobs (the visionary exercising situational leadership) and Sculley (the steady executive), resulting in Jobs being relieved of his responsibilities and fired from the company he founded. Situational theorists believe that key historical leaders appeared at a critically important phase of a socially valued cause, quickly devoted themselves to it, and profited greatly from the work of others in the conduct of their leadership. An example of this is the situational leadership role Mayor Rudolph “Rudy” Giuliani[22] found himself in on September 11, 2001 (9/11). What it takes to be a successful leader has not changed throughout history. The 9/11 attacks provided the situational leadership elements it takes for a leader like Giuliani to emerge. Like Winston Churchill, who took the leadership role of prime minister of England during World War II, Giuliani was provided with a great situational crisis to display personal leadership skills. Though the Churchill and Giuliani crises are vastly different, their leadership reactions to their particular situations were not, with each reacting to solve the problems presented to them. Each leader was faced with dynamic situations requiring crisis action planning and adaptive leadership decision making that affected the health and welfare of the people he led. Giuliani, like Churchill, took control of the situation and did not let others dictate the outcomes. They both used years of personal development and experi-

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situational approach In this approach the situation influences the demand that determines who will emerge as a leader for any given situation. Instead of using just one style, successful leaders change their leadership approach (styles) based on the maturity of the people they are leading and the details of the task. Using this approach, the leader’s emphasis is on accomplishing the immediate task and using the relationship the leader has with the people she or he is leading.

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ence to control their emotions and dominate their teams’ decision making. Their use of cool, logical judgment in their approach to solving problems for a nation, in the case of Churchill, and one of the largest cities in the United States and the victims of terrorist attacks, in the case of Giuliani, created a historical crisis situation where the leaders had to take control in order to make rapid lifeand-death decisions for those they led. Warren Bennis[23] concluded that theories to explain who emerges and succeeds as a leader in an organization have to take into account the following circumstances: • Impersonal bureaucracy • Informal organization and interpersonal relations • Benevolent autocracy that structures the relationship between superiors and subordinates • Job design that permits individual self-actualization • Integration of individual and organizational goals As organizations mature, the charismatic founders of a social, technological, or political movement usually give way to bureaucratic successors. In these cases, as the movement matures, so do its followers, and leading them requires new approaches. The situation presents new issues involving the match between the leader and the situation that emerges—be it social changes, an increase in legislative activities, relations among the led and the leader, or the impact of foreign competition on the business environment.

Integrative Approach The integrative approach includes more than a single variable of study. In this case, it could include a study of trait and behavioral approaches, or the power-influence and situational approaches, or a combination of more than two. It is rare, though, to find a study that includes all the approaches discussed in this section. Researchers today find that the outcome of leadership can be a matter of using various approaches; for example, situations provide self-selection of leaders, and the leader in this case must possess the appropriate traits to be effective in solving the situational problem. The study of leadership involves three key variables: the leader, the followers, and the situation the first two find themselves in. Table 3.3 summarizes the characteristics of the five leadership theory approaches discussed in this section. As evidenced by the content of this section, leadership can and has been studied in many different ways, each dependent on the researchers’ methodological preferences and definition of leadership. The trait style of leadership gives more credence to the qualities a people are born with rather than those they develop or the relationships they develop with followers. Leadership trait theory is the idea that people are born with certain character traits. This is the style that is attributed to whom others see as a “born leader.” These traits, while not totally responsible for an individual’s success as a leader, are influential in the success of the leader. This theory assumes that if you can identify people with the correct traits, you will be able to identify leaders. TABLE 3.3 Summary of Leadership Approaches Approach

Definition

Trait approach

Trait theories study any superior or unique qualities that differentiate the leader from the followers, with the implication that it should be possible to identify a leader based on those traits.

Behavioral approach

This theoretical approach focuses on the leader’s observable behaviors that influence followers to commit their actions to meet the specified task requirement of the leader. The theory stipulates the leader’s behavior is the cue that evokes the followers’ actions to accomplish a task or behave in a certain manner.

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Chapter 3

Approach

Leadership Theories and Styles

Definition

Power-influence This research approach involves a dyadic leader-follower relationship. Like most approach research on traits and behavior, some of the power-influence research takes a leader-centered perspective with an implicit assumption that causality involves a dyadic leader-to-follower influence approach where the leaders direct a task and the followers react to perform the task based on the direction. Situational approach

In this approach, the situation influences the demand that determines who will emerge as a leader for any given situation. For example, a situational theorist will contend that an emerging leader will appear in response to revolutionary upheaval, chaotic politics, social and economic distress, and the weakening of traditional institutions. In these situations, the emerging leader is a result of time, place, and circumstance, and the leader cannot help what he or she did since it was directed and controlled by the historical moment.

Integrative approach

The integrative approach includes more than a single variable of study. In this case, it could include a study of trait and behavioral approaches, or the power-influence and situational approaches, or any combination of approaches. It is rare, though, to find a study that includes all the approaches discussed in this section. Researchers today find that the outcome of leadership can be a matter of using various approaches.

Key Takeaways • There are five approaches to the study of leadership theory in this text. They are the trait, behavioral, power-influence, situational, and integrative approaches. Each is unique in the manner that it explains leadership traits and characteristics. • No theoretical approach in and of itself guarantees leadership success, with research indicating that any theory is elusive and often failing to find any single theory that can guarantee leadership success. • The study of leadership involves three key variables: the leader, the followers, and the situation. Each of the three variables displays unique characteristics identified in each of the five theoretical leadership theory approaches.

Exercises 1. Identify and define your personal leadership characteristics in the context of any one of the five theoretical approaches discussed in Chapter 3. 2. From the perspective of one or more of the three key variables (leader, follower, or the situation), summarize the characteristics of any one of the five approaches to leadership theory. 3. Conduct an Internet search of a current event identifying a political or business figure and determine what trait factors (See “Bernard Bass Trait Factors Appearing in Three or More Leadership Studies” sidebar) the leader is displaying. Ensure you outline the traits as they affect the followers and the situation that marks the event. 4. Warren Bennis identifies several factors to explain characteristics that emerge in a situation that requires a particular type of leader. Refer back to the situational approach theory and identify circumstances you have found yourself in as a leader or follower where one or more of these factors came into play.

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3.3 Leadership Styles Learning Objectives 1. Understand personal leadership behaviors. 2. Define your leadership behaviors. From leadership theories are born leadership styles. The term leadership styles is used to identify the leader’s interaction with followers and/or a situation requiring a leadership action. In effect, a leadership style is a combination of interpersonal skills and traits that form a leader’s character as judged by the follower or subordinate. Several leadership styles are used to influence the cognitions and behaviors of followers to accomplish the tasks necessary for the organization to attain its mission and vision. Each style provides a unique approach identifying what leaders say and do to influence followers or subordinates. This section aims to identify the difference in leadership behavior and unique perspectives of how a leader or manager defines and applies his or her personal style to any leader-to-led situation. To accomplish this, eight definitions and their ensuing characteristics are used to determine each of the following styles: autocratic leadership, charismatic leadership, democratic leadership, inspirational leadership, laissez-faire leadership, servant leadership, transactional leadership, and transformational leadership. These eight leadership styles can be considered the main styles leaders and managers use to influence employee behavior and cognitions.

Autocratic Leadership autocratic leadership A leadership style where the leader makes the decisions, tells employees what to do, and closely supervises workers while primarily using a coercive power strategy to motivate compliance.

span of control The number of subordinates directly reporting to a leader or manager.

The autocratic leader makes the decisions, tells employees what to do, and closely supervises workers. Managers are often known to use an autocratic leadership style. This style promotes individual control over all decisions with little to no input from group members. Autocratic leaders typically make choices based on their own ideas and judgments and rarely accept advice from followers. In this sense, it is a singular decision-making process that does not incorporate participation from the follower. Autocratic leadership can be more prevalent in large organizations where the leader or manager’s span of control is increased and there’s less participation by the followers and where only a few trusted agents or subordinates are used to influence decisions. Span of control can be defined as the number of subordinates directly reporting to a leader or manager. The military provides guidance that a leader’s span of control should not exceed three to five suborganizations (dependent on the organization’s size in terms of its mission and the number of people), as exceeding that number of suborganizations increases the complexity of controlling the organization’s activities. A more inclusive definition of autocratic leadership involves leadership influence and awareness. Using these terms can shift the rigid connotation of the term span of control to a more collaborative network that exists in organizations today. Another feature of using autocratic decision making is delegation as a means to reduce the administrative workload. Autocratic leadership often leverages coercive power to motivate subordinates to accomplish tasks. For example, an instructor provides you with an assignment or project and defines not only the task and purpose but also how you will accomplish the task and states that if you do not meet the rubric content, you will receive a low grade; in addition, if you do achieve the intended outcome of the task or project, you will be rewarded. The coercive approach is aimed at dictating the behav-

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ior and outcome of the task; through coercive motivation, the subordinate is provided little to no flexibility in defining how to best solve a problem or complete a project. Furthermore, the subordinate knows that unfavorable consequences will result if the task is not accomplished.

Video Clip 2 An animated video on some of the leadership styles discussed in Chapter 3.

View in the online reader

Charismatic Leadership Charismatic leadership manifests itself in a leader’s emotional expressiveness, interpersonal communication style, or cues to shape, inspire, and captivate others based on the personal identification of the followers to the leader. It can be a spiritual power or a personal quality that gives an individual influence or authority over large numbers of people. Chapter 1 provided us with a basic understanding of what charismatic leadership entails. As a review, we identified charismatic leaders as using a wide variety of pragmatism, flexibility, and opportunism while using a combination of different leadership styles to achieve their end goal. Charismatic leadership is usually considered a subform of transformational leadership, and transformational leadership is basically the opposite of transactional leadership. Inspirational motivation is a component of transformational leadership. The charismatic leader’s personality characteristics are described in Table 1.2. It is important to understand charismatic leaders in terms of their high self-esteem and desire to take ownership of their actions; they also tend to be generous, open, and honest and tend to have a deep concern for the welfare of others. Charismatic leaders are also highly sensitive to the needs of followers, communicate effectively, are willing to take personal risks, act as change agents, and are idealistic in their vision of the future. Regardless of the situation, they are consistent in displaying high levels of emotional expression, self-confidence, self-determination, and freedom from internal conflict, and they have strong moral and ethical convictions for their principles and highly idealistic beliefs. The Greek word charisma means “divinely inspired gift.” According to Max Weber,[24] charisma is based on followers’ perception of what the leader offers in terms of inspiration, or the leader is extraordinarily gifted with a combination of interpersonal skills and traits that form his or her charismatic leadership style. So what is the basis of charismatic leadership? Table 3.4 identifies the source of charismatic leadership and the situation that brings the charismatic leader to the forefront of the group. Robert S. Lussier and Christopher F. Achua,[25] in their book Leadership: The-

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charismatic leadership A leadership style that manifests itself in nonverbal emotional expressiveness, or cues to move, shape, inspire, or captivate others. It can be a spiritual power or personal quality that gives an individual influence or authority over large numbers of people.

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ory, Application, & Skill Development, state that the “question centers on the debate over whether charisma is primarily the result of social situations or individual qualities, namely: • The situation or social climate facing the leader. • The leader’s extraordinary qualities. • A combination of the situation and the leader’s qualities.” TABLE 3.4 Source of Charismatic Leadership and Situations Source of Charismatic Leadership

Situation

Situation or social climate

Society is in a state of crisis. The leader is capitalizing on the crisis to assert or share his or her viewpoints so followers recognize the need for the leader’s extraordinary qualities.

Leader’s extraordinary qualities

The leader’s charisma is borne out by his or her exceptional attributes as seen by followers. The leader effectively communicates a strong and unique vision, strong personal conviction, trustworthiness, high self-confidence, and intelligence.

Combination of Charisma is the result of follower attributions and is influenced by not only the the situation and leader’s characteristics and behavior but also the context of the situation. leader’s qualities The effect of charismatic leadership on followers can manifest in several ways as the leader inspires and transforms the followers by using an emotional appeal to effect radical change in a situation or organization. Followers believe the leader has the power to effect radical change and can change the status quo and strongly believe in the leader’s transcendent vision. Because of the belief, the charismatic leader is grounded in core values like integrity, hard work, responsibility, respect, and accountability; it has a transcendent effect on the follower. First, followers may develop a strong sense of trust and emotional bonding with the leader that is hard to find in any other leader-follower relationship. Second, based on this trust, followers tend to assume greater risks than they would with other types of leaders. Third, followers develop unquestioning loyalty and obedience to the leader. Lastly, followers are motivated to set or aim for higher goals and have greater confidence in their abilities to achieve the vision and goals set by the leader. The acquisition of charismatic qualities requires a determined personal developmental effort that includes the following: • Improving communication skills through practice and training • Using strategic and operational art to create vision and mission statements • Practicing assertiveness skills and learning how to have a more extroverted personality when the leadership situation requires it • Developing personality traits that reflect a behavior pattern of enthusiasm, optimism, and an energetic personality The dark side of charisma can also be a reality, and it would be foolhardy to follow someone who is charismatic and does not possess the appropriate legitimate and expert skills as well as an appropriate moral compass. If not careful, the charismatic leader who is overdependent on his or her charismatic style can be viewed as narcissistic and promoting highly self-serving and grandiose goals. Narcissistic charismatic leaders will commonly focus on self-glorification and self-transcendence motives. The self-glorification motive is about the self-maintenance and self-enhancement of the leader and not the greater good of the organization or society. Instead, the dark side of charisma seeks to protect, maintain, and enhance the leader’s self-esteem and is consistent with negative or destructive charisma. Therefore, it is common for a leader who is overdependent on charisma to be motivated more by extrinsic values and rewards rather than intrinsic rewards and values. Furthermore, it is

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very common for leaders to use the dark side of charisma as a compensation tactic to offset their deficits in expert power and skills. Kenneth Lay,[26] former head of Enron’s leadership, focused his energy on creating an aura of charisma around his leadership team. Consistent with the leadership image the company presented to the press, Enron’s leaders engaged in dramatic self-promotion and were described by the press as “revolutionary.” Jeffrey Skilling, another key Enron leader working for Lay, was equal to the task of self-promoting a charismatic image. Both acted with draconian intimidation measures to control subordinates’ behavior. Charismatic leaders and managers are easy to identify. They are seen as charismatic because they possess charm, a high energy level, and an ability to conceptualize and articulate a strategic vision. Yet charisma has its dark side. This type of leader at first appears confident and skilled to his or her peers and bosses and does well on most evaluative assessments but then turns out to be terrible for the organization. The dark side of their charismatic leadership style proves costly to the organization as it develops poor morale, excessive turnover, and reduced productivity. Charismatics have a knack for moving to the top of an organization too quickly when driven by their overpowering desire for extrinsic rewards and/or narcissism. With increased power, they soon reveal their personality flaws that were not readily apparent when they had less power. Differentiating between good and bad charismatic leaders may come down to the distinction of the level and type of narcissism and the degree to which leaders’ self-interests motivate their behavior. Leaders who display a grandiose sense of certainty, with a conviction that subordinates or followers must find the leader irreplaceable and flawless, may be in the wrong. Additionally, for followers to be accepted by the leader, the followers will be required to ingratiate themselves to their seniors and often to tolerate leader abuse. In her book The Allure of Toxic Leaders, Jean LipmanBlumen[27] refers to this dark side of charismatic leadership as toxic leadership. Charismatic leaders who are toxic seduce the follower to the extent that the follower is trying to survive and succeed in an organization where a leader first charms and then manipulates, mistreats, undermines, and ultimately leaves the follower worse off than when he or she first believed in the leader. The central figure that provides an example of the dark side of charisma is Adolph Hitler,[28] whose style helped lift the German nation out of stagnation in early 1933 and then led it to ruin by 1945. Hitler used a very charismatic personality type to first take control of the National Socialist German Workers Party. His vision was to carry out a program calling for the restructuring of Germany on a racist basis so that the country could dominate the globe and expand the German people’s living space. To many in Germany, this was a compelling idea, and Hitler was a master of communication in popularizing the thought. He believed that Germany should fight wars for vast tracts of land to enable its people to settle on them, raising large families that would replace casualties and provide soldiers for the next war of expansion. The dark side of Hitler’s charisma was demonstrated by his willingness to take more risks by invading neighboring countries and creating a series of wars around the globe. His single-minded decisions led to one catastrophic failure after another, making enemies who used his failure as an opportunity to remove him from power. Tomas Chamorro-Premuzic,[29] professor of business psychology at the University College London, identifies several negative consequences of charismatic leadership: • Charisma dilutes judgment. • Being in awe of the leader clouds or impairs the good judgment of followers. • Leaders influencing by charm rather than reason often run out of charm and then tend to revert to coercion. • Charisma is addictive. • Charisma can result in reciprocal dependence that encourages both parties to distort reality in order to prolong the charismatic effect on the follower. • Followers’ criticism of the leader is inhibited by their need for acceptance by the leader. • Failure to develop successors creates an eventual leadership crisis. • Charisma disguises psychopaths. © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

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• Egocentricity, deceit, manipulativeness, and selfishness are key career advancers for politicians and management leaders, who both rise to the top and are motivated by their own problems with authority. • Excessive confidence and optimism blind the leader to real dangers. • Denial of problems and failures reduces organization learning. • Impulsive, nontraditional behavior creates enemies as well as believers. • Charisma fosters collective narcissism. • Charisma facilitates ideological self-enhancement. The adoration for someone who expresses our beliefs is a socially acceptable way to ingratiate ourselves and the group to which we are affiliated. • Adoration by followers creates delusions of leader infallibility. • Taking sole credit for outcomes alienates key stakeholders. • Risk and overreach on projects increase the chance of failure. Charismatic leaders need to be optimistic and possess self-confidence to influence others to support the leader’s strategic vision and operational mission. Yet it is excessive optimism that inhibits leaders’ recognition of flaws in the strategies they profess to followers, with the followers becoming unwilling to point out the errors and provide recommendations. It is wise to recognize that charismatic leadership can be a transitory phenomenon that can only be sustained by creating crisis situations where the leader identifies with the followers who perceive him or her to be extraordinary during the crisis. One example used in the situational leadership theory was Winston Churchill,[30] who took the helm of leadership for England during World War II as the central public servant at the height of a situational leadership crisis. Churchill used a charismatic leadership style to lead England out of the crisis presented by Hitler. Churchill possessed a clear vision and a compelling message, represented the epitome of selfless sacrifice, and was able to clearly communicate his enduring and single-minded message to the people of England to protect the country from invasions and later defeat Germany. Churchill stood fast and alone as a pragmatic idealist in the face of what appeared to be insurmountable odds: facing a German invasion of England in 1940. However, as successful as Churchill was in securing England from invasion and later helping to end the war in 1945, his charismatic leadership style fell aside after leading England to victory and through the crises of war. The English people elected a new prime minister in his stead once the crisis was overcome and the situation changed. His charismatic attributes waned as his vision and message were no longer required. England no longer needed a charismatic hero but rather a new prime minister to the lead the country out of a wartime mentality.

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Democratic/Participative Leadership Democratic/participative leadership encourages the participation of followers in making decisions and working with employees to determine what to do and does not require the close supervision of employees. Follower participation is central to this leadership style, as the formal procedures for making important decisions give members significant influence and participation in group decisions. Followers in a democratic leadership organization may have the right to participate in open meetings of the board or council to express opinions about important issues before a decision is made. In some organizations, elected representatives come from each major subunit of the governing council, allowing lower-level members to elect one or more representatives to serve on the board of directors. Democratic leadership encourages participation in decision making.

Source: © Thinkstock

One example of participative leadership in a very top-down, line-and-staff organization is the US military. At all levels of military organizations, plans are developed using a structured Military Decision-Making Process[31] (MDMP) where the organizational leader provides his or her initial commander’s intent, based on the mission the organization receives from the higher headquarters. In addition to receiving operational input from their staff, leaders also receive input from each subordinate leader’s organization’s operational assessment. Once the leader receives staff input, he or she provides additional planning guidance and makes a decision on the operational plan’s framework. The staff then develops the final operational or strategic plan to disseminate to subordinate organizations. The leader retains overall decision making and responsibility when using the MDMP, but the staff is a full participant in the organization’s direction in achieving its mission, as the leader is dependent on the professional and skill expertise each member brings to the decision-making process.[32] The benefit of having a democratic leadership style is that employees feel they contribute to the organization at a high level, tend to have high satisfaction, and are more productive because of their participation in the organization’s decision-making process. Employees may feel they develop personal skills and fully participate based on intrinsic motivation to contribute to the organization © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

democratic/ participative leadership Encourages employee participation in decisions, working with employees to determine what to do, and supervising employees less closely. Empowerment of the follower is central to this leadership style as the formal procedures for making important decisions give members significant influence over group decisions.

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rather than being extrinsically motivated by the leader. The downside of democratic or participative leadership is that it is less effective in crisis situations where time is scarce and a quick decision is required to achieve organizational success. Another downside may be that the employee does not have the skill set or expertise to participate in the decision-making process.

Inspirational Leadership inspirational leadership Involves the use of influence tactics that involve an emotional or value-based appeal. The leader makes an inspirational appeal to stakeholders’ values and ideals or seeks to arouse the group’s emotions to gain commitment to a new task or proposal.

Inspirational leadership is often considered a component of transformational leadership. Inspirational leadership involves the use of influence tactics that have an emotional or value-based appeal. The leaders make an inspirational appeal to the stakeholder’s values and ideals or seek to arouse the group’s emotions to gain commitment to a new task or proposal. The inspirational appeal is an influence tactic to develop enthusiasm and commitment by arousing strong emotions and linking a request or proposal to a desire of fulfilling a task and purpose by relating individuals’ goals to organizational goals. The leader’s intent is to make the followers feel important and useful, all the while supporting their values with the aim of accomplishing something worthwhile and exceptional for them and the organization. Inspirational leadership is especially important for gaining commitment from stakeholders to work on new projects. The leader’s inspirational appeal is a good tactic to gain support for proposed changes that involve values and ideas as they affect subordinates and peers.

Laissez-Faire Leadership laissez-faire leadership Passive indifference about the task and subordinates. This is where the leader ignores problems and may dismiss subordinates’ needs for guidance, purpose, and direction.

Laissez-faire leadership is defined as passive indifference about the task and subordinates. This is where the leader ignores problems and may dismiss subordinates’ needs for guidance, purpose, and direction. Laissez-faire leadership can be described as the lack of effective influence tactics and leadership. Laissez-faire leaders do not interfere, instead allowing employees within the team to make many of the decisions. This approach works well when the team is highly functional and capable, is intrinsically motivated, and does not need extrinsic motivation by the leader. An example is large organizations that provide employees the latitude to work from home and only come to the office on scheduled dates or to participate in organizational meetings. These organizations may institute control measures to assess output or outcomes, yet they are trusting enough to allow employees latitude to select the time and place to perform their job functions as long as the employees perform the tasks and achieve the appropriate or desired outcomes. The negative side to this approach is when laissez-faire is an outcome of a lazy, incompetent, or distracted leader. In this case, the organization may be at risk of failing. An example of a leader becoming distracted is when a chief executive officer (CEO) who is the founder removes himself from the day-to-day activities of performing his leadership and management role and becomes involved in businesses unrelated to the company’s product. Though the subordinate executives and directors are competent, the leader focuses elsewhere, desynchronizes the effort, and causes certain strategic business units to fail, jeopardizing the entire organization.

Additional Perspectives Assertiveness in Leadership

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Assertiveness refers to the degree to which individuals are engaged, confrontational, and aggressive in their relationships with others. Highly assertive people and societies tend to value competition, success, and progress while focusing on direct communication. They expect subordinates to take the initiative. Lower assertiveness people and societies tend to expect subordinates to be loyal and value cooperation. In addition, they prefer indirect communication.[33] Assume you are a highly assertive individual, preferring to communicate directly. You tell one of your low assertive employees he needs to “pick up the pace” on his sales figures for the quarter. Your employee doesn’t say anything to you, but over the next few weeks you can see him avoiding contact with you. What happened in this situation? How might you have handled this communication better, given his low assertive nature?

Servant Leadership Servant leadership describes leaders who lead from positions of moral influence, not from a power relationship, and who are follower-centric. The attributes most commonly associated with servant leadership are empathy, kindness, honesty, humility, and respect for others, especially the less powerful followers or subordinates. Servant leadership transcends self-interest to serve the needs of others by helping followers grow professionally and personally. At the core of servant leadership is self-sacrifice, which is often displayed by a leader’s need to lead by example. The servant leader makes a conscientious decision to place importance on followers’ needs and respects their contributions no matter the level of responsibility. The leader in this case is singularly focused on serving others. The character of a servant leader is grounded in a strong moral base operating from a moral compass, with a strong sense of team effort and duty between the leader and follower. Leadership in this sense becomes a privilege and not a right; this type of leadership exhibits personality traits high on agreeableness, active listening, empathy, and integrity of action and word.

Video Clip 3 This video discusses some of Robert Greenleaf’s philosophies on servant leadership.

View in the online reader

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servant leadership Leaders who lead from positions of moral influence, not from a power relationship, and who are follower-centric. The attributes most commonly associated with this style are empathy, kindness, honesty, humility, and respect for others.

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Table 3.5 identifies the four attributes of effective servant leadership, according to Robert K. Greenleaf, the founder of servant leadership,[34] along with their corresponding applications, as identified by Robert N. Lussier and Christopher F. Achua[35] in their book Leadership. TABLE 3.5 Servant Leadership Characteristics Attribute Application Service Servant leaders are focused on helping others and take great pleasure in seeing those to others they influence succeed. Taking the right action to help others takes precedence over the protection of their position. The decisions servant leaders make are aimed at serving the group’s interest and not their own. Earning and keeping others’ trust

Integrity of word and deed are the hallmarks of earning follower or subordinate trust. There are no hidden agendas, and they are not afraid to empower others or recognize and acknowledge the strengths and accomplishments of those they lead.

Effective listening

Psychologists use the analogy of having a third ear to listen to their clients and help them formulate a strategy to help them help themselves. Servant leaders carefully listen to the problems facing those they lead in order to develop effective solutions. They demonstrate care, acceptance, and encourage their followers in an empathetic manner.

Helping others discover their inner spirit

Setting the conditions for the follower to succeed is how the servant leader helps others to help themselves. Servant leaders do not usurp the responsibility for others’ actions but instead help them find their inner strength or spirit to realize their inner potential to attain high standards and accomplishments. It is imperative for servant leaders to display empathy toward followers and not fear displaying their own vulnerabilities.

Transactional Leadership Transactional leaders work within the organizational structure as it is, whereas transformational leaders renew the organizational structure to meet the current leadership environmental demands. In short, transactional leaders motivate followers by appealing to their self-interest and an exchange of benefits. The exchange process used by transactional leaders could result in follower compliance with the leader requests. transactional leadership Motivates followers by appealing to their self-interest and exchange of benefits. The exchange process used by transactional leaders is one that could result in follower compliance with the leader requests.

Compliance does not mean the transaction between the leader and the led will generate enthusiasm or commitment to the task or objective by the follower. Transactional leadership does not motivate or increase performance as well as transformational leadership, yet it is an effective method, given the right situation, and is based on followers receiving a contingent reward for their contribution; if the subordinate is not effectively contributing, a more active or direct participation style is required to motivate the employee. If the subordinate is meeting the leader’s objectives, a more passive, or laissez-faire, management style may be used.

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Transformational Leadership The transformational leader asks followers to transcend their own self-interests for the good of the group, organization, or society; to consider their longer-term needs to develop themselves rather than their needs of the moment; and to become more aware of what is important. Using transformational leadership, followers are converted into leaders. According to Bernard Bass,[36] transformational leadership can be conceptually organized using charismatic and inspirational leadership styles in combination with intellectual stimulation and individualized consideration. Transformational leadership is not just due to charismatic leadership; instead, it is a hybrid where behavioral processes are learned and managed. The leadership process includes a systematic analysis, is consistent, and is purposeful with an organized search for changes. Once the needed changes are recognized, the transformational leader moves resources from areas of lesser to greater productivity to bring about a strategic transformation. The transformational leader renews the organization’s structure to meet the current leadership demands of the environment. In his book, On Leadership, John W. Gardiner[37] states, “Leaders must understand how and why human systems age, and must know how the processes of renewal may be set in motion.” In considering transformation, the following purposes for organizational change are offered: • To renew and refine organizational values that counter the organization’s current vision and mission • To empower followers who have been constrained by ineffective standard operating procedures, and instead instill new techniques and procedures to meet the requirements of the organizational work environment • To evaluate current goals and modify them as necessary to ensure they are feasible, acceptable, and attainable to meet the organization’s challenges • To leverage new technologies and conduct research and development that evaluates current strategies, processes, and material resources that will lead the organization to perform more efficiently and effectively • To empower followers through education and lifelong growth The pace of change for organizations is swift, and that’s the only constant organizations can depend on. This is why transformational leaders have to concern themselves with continual renewal, understand how and why human systems age, and know the unique processes for renewal for their organization. Transformational leaders do not accept the system as it is; they develop a far-reaching strategic vision on how to incrementally adapt change into their organizations. Understanding how your leadership style impacts the follower or subordinate is important to maintaining morale and consistency of work performance in your organization. Table 3.6 provides you with a summary of styles discussed in this section. By reviewing the content of this section, you can be flexible in developing your approach to leadership and become a more effective leader as the organizational situation presents itself to you. By understanding leadership styles, you can explore whether or not a particular style would benefit those you lead to accomplish the mission you are given.

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transformational leadership Asks followers to transcend their own self-interests for the good of the group, organization, or society; to consider their longer-term needs to develop themselves rather than their needs of the moment; and to become more aware of what is important.

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TABLE 3.6 Leadership Styles Style

Definition

Example of Use

Autocratic

Decisions are communicated directly by the leader to the subordinate by writing or articulation. The leader possesses a lot of power over employees. Staff and team members have little opportunity to provide suggestions, even if these would be in the team’s or the organization’s best interest.

As approved by the CEO, the COO of an organization provides direct instructions in the form of a task and purpose to subordinates. The instructions could come in the form of a mission statement or other specified task that provides no opportunity for the employee to modify it.

Democratic/ participative

Democratic leaders are responsible for the final decision and outcome of an action, but the decision-making process they use to arrive to a decision includes team members and a defined staff process. Creativity by team members is encouraged as it can provide the details necessary for an organization to succeed from top to bottom.

The CEO of the company directs his executive and management teams to provide a bottom-up review of the organization to define the strategic direction of the company for the next five years.

Charismatic

Charismatic leadership can resemble transformational leadership because leaders inspire enthusiasm in their teams, articulate a unique vision, and are energetic in motivating the core of their followers to move toward a desired end state. This ability is viewed as exceptional by followers and is what creates excitement and commitment to the leader’s far-reaching goals.

The CEO of the organization delivers an inspirational speech to members of the organization that articulates the strategic vision and mission the company is pursuing. She provides an understanding of the selfless sacrifice she and all organizational members will have to provide in attaining the vision that will benefit the altruistic values of the company and enrich everyone’s life.

Inspirational

Leadership by example defines the inspirational leader. This style is based on the power to inspire others to follow and take responsibility for their actions to the team. It can take on a spiritual quality where employees reach to greater heights of performance and success beyond meeting the minimum standard. The leader inspires passion, purpose, confidence in people’s skills, and personal contribution. The leader listens and provides meaning to others to help establish an inspiring organizational culture and vision for the future.

Taking over a position where the leader was just removed due to low morale and not achieving results is always difficult. The new leader knew the first step in taking over this particular organization would be to inspire the staff to succeed and make them believe in themselves and in their team. She decided to always be an example in word and deed. She would first listen to what the issues were and then take decisive action to remedy what she immediately knew would be effective. She would also incorporate short-term wins for the employees by building confidence and passion in each of them. Letting them know how successful they can be as individuals and as a team will be instrumental in developing their passion to succeed and meet the organization’s vision.

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Style

Definition

Example of Use

Laissez-faire

Describes leaders who allow their employees to work on their own. This type of leadership can occur naturally, especially when there is a lack of leadership. This style of leadership may occur because managers don’t have sufficient control over their personal work and the people they manage. The one thing leaders should do in a laissez-faire situation is to provide team support, resources, and advice when asked for or needed. Otherwise, leaders do not get involved. The leader ignores problems and may dismiss subordinates’ needs for guidance, purpose, and direction.

At the end of the monthly meeting, the leader provided the upcoming quarterly schedule of staff meetings and the results of the current quarter’s work performance matrix. The matrix identified the number of achievements and level of work accuracy. She asked two of the team members who were below 80% accuracy and did not meet the standard to stay behind so she could provide guidance and direction. She thanked the eight other team members, and before they left, she reinforced the point that they knew the goals and standards expected of them, that they were responsible to select the time and place to perform the required tasks, and that they should inform her if any problematic issues arose that she could help them solve.

Servant

Leaders at any level within an organization who lead by meeting the needs of the team or members of the organization at the expense of their own noteworthiness. They lead by example with integrity, have high moral and ethical standards, and are generous. This style is a form of democratic leadership because the whole team tends to be involved in decision making. The difference is that the servant leader is not often at the forefront and prefers promoting individual team members or the organization as a whole rather than accepting recognition for his or her contribution.

The department manager reported to the CEO during her official inspection visit to their retail store. The department manager began by introducing the team members to the CEO and informed her that without the team, the department would not have achieved the CEO’s mission. He then identified two key people in the team that contributed the most to the team effort and hoped the CEO could recognize their effort to the corporation by rewarding them with promotions or rewarding them for their personal self-sacrifice.

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Style

Definition

Example of Use

Transactional

The “transaction” usually involves the organization extrinsically motivating team members by paying them in return for their effort and compliance. It is understood that the leader has a right to coerce or punish team members if their work doesn’t meet an appropriate standard.

The manager stood at the podium and read off the recruitment and sales quotas of each team member. The manager suspected team members would not be happy with the monthly quota that came from higher headquarters or that the bottom-up recommendations were not factored into the quota mission. Every Friday morning, those who did not meet the weekly quota would be part of his and the higher headquarters’ leadership meeting at seven in the morning. The COO used these meetings as a coercive and punitive reminder to meet future quotas, and he was direct in reminding team members of their current failure. The eight members of the team were indirectly rewarded by not participating in the meeting and directly rewarded by their increased compensation for meeting company goals.

Transformational Transformational leaders are inspiring because they expect the best from everyone on their team as well as themselves. They often lead by example, and in organizations that provide a product or service, this leads to high productivity and engagement from everyone on their team. Leaders who use a combination of transformational and transactional leadership ensure that routine work is done reliably, while transformational initiatives can be incorporated to add value in the form of effectiveness or efficiency to the organization.

The leader recognized a downward shift in customer satisfaction in the level of service the company provided over the past year. If the business was to succeed, he knew a different approach would be needed. He reviewed the literature and recognized a new approach is required in the way they managed customers. To transform his company, he decided to invest in a customer relations management (CRM) training program to build brand and customer loyalty. To accomplish this, he would singularly motivate and lead the CRM transformation effort and ensure the appropriate change management steps were incorporated as part of the change management process. Only by his direct involvement could he inspire a dramatic transformation during the next quarter and reduce the amount of friction that change often elicits in employees.

Key Takeaways • Leadership styles are developed from a combination of personal traits, skills, and behaviors used to interact with followers. Understanding the leadership behavior pattern of traits and skills is the central component to characterizing the leader’s method used to influence action among followers. • Charismatic leadership is a transitory phenomenon that is often sustained by capitalizing on crisis situations where the leader can identify with the followers who perceive him or her to be extraordinary during a period of crisis. The positive side of charismatic leaders is that they have a socialized power orientation seeking to instill devotion to ideology more than to themselves. In terms of the influence process, they emphasize internalization rather than personal identification. Self-sacrifice and leading by example are also used to communicate commitment to a strong sense of shared values, a strategic vision, and operational mission to promote the organization and not the individual. • Inspirational leadership is often considered a component of transformational leadership. Inspirational leadership involves the use of influence tactics that involve an emotional or value-based appeal. • The dark side of charisma involves a leader who is overdependent on his or her charismatic style. These leaders can be viewed as narcissistic and promoting highly self-serving and

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grandiose goals. Narcissistic charismatic leaders will commonly focus on self-glorification and self-transcendence motives.

Exercises 1. What is your leadership style? Being a leader of character can be an arduous and often toxic enterprise as multiple entities judge and criticize leadership character. Thus a leader strives to maintain the integrity of his or her leadership character, as it is a continuous individual struggle of immense proportion. As part of this character struggle, the leader must first define his or her personal leadership style since it becomes increasingly difficult for a leader to persuade stakeholders to only see the positive aspects of his or her character. 2. Who are you mirroring or modeling yourself on (in your current or past work experience, a community service setting, or any other setting, such as education or family)? Reflect and answer the following questions: a. Define your personal leadership styles in the context of who you are mirroring. b. Who are you mirroring? Who might be mirroring you? c. What positive qualities (such as attitudes, virtues, or principles) do you possess as a leader? How might others be emulating these qualities? d. What negative qualities (such as attitudes or principles) do you possess? How might others be emulating these qualities? e. As a leader, do you wish your team (or family) to possess different attitudes or virtues from what they are seeing and mirroring from you? If so, what attitudes or virtues would you like to see changed or added? Why? If none, what might this say about you, your team, or your leadership style?

3.4 Chapter Summary and Case Chapter Summary • In Chapter 3, we discussed five unique approaches to the study of leadership theory. They consist of the trait, behavioral, power-influence, situational, and integrative approaches. • No one theoretical approach guarantees leadership success. Research indicates that no single theory can explain leadership thoroughly nor, when applied, can any theory guarantee leadership success. • The study of leadership involves three key variables identified as the leader leader, the followers (or subordinates), and the situation situation. Each of the three variables display unique characteristics identified in each of the five theoretical leadership theory approaches (trait, behavioral, power-influence, situational, and integrative). • Leadership styles are developed from a combination of personal traits, skills, and behaviors used to interact with followers. Understanding the leadership behavior pattern of traits and skills is the central component to characterizing the method a leader uses to influence follower action in eliciting a desired response. • Understanding how leadership styles impact followers is important in the maintenance and morale of the organization. Leaders can maintain flexibility in developing a unique approach to leadership to become more effective. By understanding the eight definitions and their ensuing characteristics (autocratic, charismatic, democratic, inspirational, laissez-faire, servant, transactional, and transformational), leaders and managers can influence employee behavior and cognitions to achieve the organization’s mission.

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• Charismatic leadership is a transitory phenomenon that is often sustained by an evolving crisis situation where the leader can identify with followers who perceive him or her to be extraordinary during the period of a crisis. The positive side of charismatic leaders is that they have a socialized power orientation seeking to instill devotion to ideology more than to themselves. In terms of the influence process, they emphasize internalization rather than personal identification. Self-sacrifice and leading by example are also used to communicate commitment to a strong sense of shared values, a strategic vision, and operational mission to promote the organization and not the individual. • Inspirational leadership is often considered a component to transformational leadership. Inspirational leadership involves the use of influence tactics that involve an emotional or value-based appeal. • The dark side of charisma involves a leader who is overdependent on his or her charismatic style. These leaders can be viewed as narcissistic and promoting highly self-serving and grandiose goals. Narcissistic charismatic leaders will commonly focus on self-glorification and self-transcendence motives.

Chapter Case Write three to six paragraphs answering the following questions, with at least one paragraph per question: 1. What are two new things you learned from Chapter 3? How can you either incorporate or change your leadership style based on what you learned? 2. What are the similarities and differences among charismatic, inspirational, and transformational leadership? What are the benefits and drawbacks of these styles? Use supporting details and references from the chapter. Watch the following movie clip from Hotel Rwanda: watch?v=9Z09r1Jvavk. Then answer the following questions:

https://www.youtube.com/

1. What stood out most to you from the movie clip? 2. Did the movie display charismatic leadership or transformation leadership? Why? 3. What impact did this leader have on his followers? Why?

3.5 Chapter 3 Appendix Summing Character Behavioral and Cognitive Leadership Performance: Values, Attributes, and Skills Assessment Chapter 3 provides a great amount of disparate information that categorizes leadership styles and the components and definition involved in each. What is often missing in a review of leadership theories and styles is how organizations, or people who are developing their leadership styles, measure the end result of a leadership action in terms of the various individual or organizational values, attributes, skills, and actions required in the exercise of being an effective and efficient leader. This purpose of this appendix is to provide a review of how a leadership evaluator, or any person who wants to support an individual who is developing his or her leadership style, can © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

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evaluate leadership against established standards of performance. Understand that the example provided is aimed at shaping leadership of character for the US Army Officer Corps, and the values, attributes, skills, and actions can be modified to meet a specific organization requirement or an individual’s desire to develop themselves in a particular manner. Webster’s Dictionary describes character as the way someone thinks, feels, and behaves. It is the sum of someone’s personality described by a set of qualities that are shared by many people in a group or country. Character, then, makes an organization or person different from other organizations or people. Character involves the aggregate of distinctive qualities, characteristics, or attributes of a particular type of individual distinguishing one from another. In our example, it involves a complex mix of mental and ethical traits that identify a particular person’s personality.[38] Organizations identify specific values, attributes, skills, and actions as performance indicators to enhance specific leadership performance in their profession. The US Army is one such organization that begins the development of emerging leaders by shaping the overall intended outcome of the individual’s character. The US Army Cadet Command and the US Military Academy evaluate the leadership development of all cadets each time they hold a formal leadership position over the course of their training (usually two to four years) using the Leadership Assessment Report (CDT CMD FORM 156-4A-R Jul 09)[39] (see Figure 3.1). The Leadership Assessment Report[40] is used to evaluate and shape the development of military officers prior to becoming commissioned officers. In this example, the leader’s values, attributes, and skills are evaluated in the particular action displayed. The expertise or qualification of the observer, or evaluator, is based on his or her qualifications, having gone through the course during his or her leadership development training program. To better understand the entire evaluation, we will review each of the assessment components located on the Leadership Assessment Report. FIGURE 3.1 Sample Leadership Assessment Report

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Organizational Values Organizational values provide the observer or organizational rater a means to evaluate the emerging leader’s adherence to the espoused values of those that lead them. It is important to remember that an individual’s personal values may differ than those of the organization. If an individual chooses to work for an organization, he or she should understand the differences and work to obtain congruence between his or her own values and those of the organization. In this case, those organizational values that are not displayed by the emerging leader are identified by the organization’s coach or rater so as to work on them and reinforce compliance. The following are examples of character traits adapted from the Leadership Assessment Report:[41] • Loyalty. Bears true faith and allegiance to the organization and those they serve with. • Duty. Fulfills professional, legal, and moral obligations. • Respect. Promotes dignity, consideration of others, fairness, and equal opportunity. • Selfless service. Places the organization’s priorities before self. • Honor. Adherence to the organization’s publicly declared code of values. • Integrity. Possesses high personal moral standards: honest in word and deed. • Personal courage. Manifest physical moral bravery. attributes Include the leader’s mental aptitude, physical skill, and emotional self-control.

skills Conceptual, interpersonal, and technical knowledge specific to a profession, including its operations. Skills refer to the ability to do something in an effective manner. Like traits, skills are determined jointly by learning and heredity.

Leader attributes, skills, and actions are three areas that are assessed during the US Army Cadet Leadership Development Program evaluation process of cadet leaders as they strive to become commissioned military officers. Table 3.7 defines the attributes that are most desired in an employee (in this case, an emerging cadet leader) and evaluated by the rater (one supervisory level up) and senior rater (two supervisory levels up). Each attribute, skill, and action is evaluated as it pertains to the particular task being observed. In this case, the cadet will receive immediate evaluator comments and verbal feedback on the performance that is observed. As a refresher, it is important to understand Table 3.2, where Barnard Bass[42] provides example factors of traits appearing in three or more of the fifty-two surveys he evaluated. The table also highlights whether the leader or employee possess one or more specific traits that lend to or detract from achieving organizational success. A summary of skills and traits that were identified in the study follow. TABLE 3.7 US Army Cadet Leadership-Development System Written and Verbal Feedback Areas Attributes

Include an assessment of the leader’s mental, physical, and emotional self-control

Mental

Possesses desire, will, initiative, and discipline

Physical

Maintains appropriate level of physical fitness and personal bearing

Emotional

Displays the necessary expertise to accomplish all tasks and functions

Skills

Conceptual, interpersonal, and technical skills relating to the professional body of knowledge

Conceptual Demonstrates sound judgment, critical/creative thinking, and moral reasoning Technical

Possesses the necessary expertise to accomplish all tasks and functions

Operational Demonstrates proficiency in required professional knowledge and judgment, as well as in the application of this professional knowledge and judgment Actions

Highlight major activities leaders perform in the areas of influencing, operating, and improving

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Chapter 3

Leadership Theories and Styles

Written and Verbal Feedback Areas Influencing Method of reaching goals while operating and improving: • Communicating (displays good oral, written, and listening skills for individuals and groups) • Decision making (employs sound judgment, logical mission standards, and takes care of people/resources) • Motivating (inspires, motivates, and guides others toward mission accomplishment) Operating

Short-term mission accomplishment: • Planning (develops detailed executable plans that are feasible, acceptable, and suitable) • Executing (shows tactical proficiency, meets mission standards, and takes care of people and resources) • Assessing (uses after-action and evaluation tools to facilitate consistent improvement)

Improving

Long-term improvement in the larger organization, its people, and suborganizations: • Developing (invests adequate time and effort to develop individual subordinates as leaders) • Building (spends time and resources improving teams, groups, and units; fosters ethical climate) • Learning (seeks self-improvement and organizational growth, envisioning, and adapting and leading)

Skills The following factors can be used to identify effective leaders with regard to their interpersonal, administrative, technical, and intellectual skills: • Social and interpersonal skills • Technical skills • Administrative skills • Intellectual skills • Leadership effectiveness • Achievement • Social nearness • Friendliness • Support of the group task • Task motivation and application The next most frequent set of factors concerned how leaders relate to groups. The behaviors include the following: • Maintaining cohesiveness of the group • Coordination • Task motivation • Task performance • High quality of output Concern for the group’s performance was modified by using nurturing behavior and the use of informal controls. The factors affected are as follows:

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• Maintaining a cohesive work group • Maintaining standards of performance • Maintaining informal control of the group (group freedom) • Sustaining nurturing behavior

Traits The next most frequent factors concerned the personal leadership characteristics. These included description of leaders in terms of the following: • Emotionally well balanced • Willing to assume responsibility • Ethical in conduct • Able to communicate readily • Dominant • Energetic • Experienced • Courageous • Mature The orders of frequency of the factors are significant as they relate to successful leadership performance. The Leadership Assessment Report identifies specific values, attributes, skills, and the effectiveness and efficiency of the action taken by an emerging or developing leader. In summary, the US Army’s cadet leadership assessment report identifies leadership development areas that are important to a specific organization. At the completion of the evaluation, the person—cadet in this case—is counseled and informed of those areas that require improvement as well as those areas that are encouraged to be sustained. The values, attributes, skills, and actions listed in the Leadership Assessment Report provide a means to better understand how theories and leadership styles interrelate with each other.

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Chapter 3

Leadership Theories and Styles

FIGURE 3.2 Leadership Assessment Report (Part 1)

Source: US Army. (2009, July). Leadership assessment report cadet command (REG 145-3 Requirement Control Symbol ATCC-122. CDT CMD FORM 156-4A-R JUL 09). Retrieved May 27, 2014, from http://www.montana.edu/wwwarmy/pdf/CC Form 156-4A-R (Blue Card)_Jul 09.pdf

FIGURE 3.3 Leadership Assessment Report (Part 2)

Source: US Army. (2009, July). Leadership assessment report cadet command (REG 145-3 Requirement Control Symbol ATCC-122. CDT CMD FORM 156-4A-R JUL 09). Retrieved May 27, 2014, from http://www.montana.edu/wwwarmy/pdf/CC Form 156-4A-R (Blue Card)_Jul 09.pdf

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22. Forbes, S. (2011, September 9). Remembering 9/11: The Rudy Giuliani interview. Forbes. Retrieved August 8, 2013, from http://www.forbes.com/ sites/steveforbes/2011/09/09/remembering-911-the-rudy-giulianiinterview 23. Bennis, W. (2009). On becoming a leader. New York: Basic Books. 24. Hopkins, N. S. (2011). Charisma and responsibility: Max Weber, Kurt Eisner, and the Bavarian Revolution of 1918. Max Weber Studies, 7(2), pp. 185–211. Bass, B. M. (1990). Handbook of leadership. New York: Free Press. 25. Lussier, R. N., & Achua, C. F. (2013). Leadership: Theory, application, & Bass, B. M. (1990). Handbook of leadership. New York: Free Press, p. 46. skill development (5th ed.). Mason, OH: Cengage, p. 325. Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: Pearson. 26. “Lay helped create the company in 1985; by 2000, he had turned it from a simple natural-gas corporation into an energy-trading giant worth Emerson, R. M. (1976). Social exchange theory. Annual Review of Soci$68 billion. But much of that money was based on shady accounting ology, 2, pp. 335–362. Retrieved May 26, 2014, from http://umsl.edu/ practices and losses not recorded in its financial statements.” Suddath, ~keelr/3210/resources/emerson_social_exchange.pdf C. (2010, August 10). Top 10 CEO scandals. Time. Retrieved March Emerson, R. M. (1976). Social exchange theory. Annual Review of Soci6, 2014, from http://content.time.com/time/specials/packages/article/ ology, 2, pp. 335–362. Retrieved May 26, 2014, from http://umsl.edu/ 0,28804,2009445_2009447_2009502,00.html ~keelr/3210/resources/emerson_social_exchange.pdf 27. Lipman-Blumen, J. (2005). The allure of toxic leaders. New York: Oxford Hickson, D. J., Hinings, C. R., Lee, C. A., Schneck, R. E., Pennings, J.M. University Press. (1971). A Strategic Contingencies' Theory of Intraorganizational Power. 28. History.com. (n.d.). Adolf Hitler. Retrieved August 8, 2013, from http:// Administrative Science Quarterly, 16 (2), pp. 216-229. www.history.com/topics/adolf-hitler Leadership-Central.com. (n.d.). Strategic contingencies theory. Retrieved 29. Chamorro-Premuzic, T. (2012, November 16). The dark side of charisma. May 26, 2014, from http://www.leadership-central.com/strategicHarvard Business Review. Retrieved August 8, 2013, from http://blogs. contingencies-theory.html#axzz2pDkLqy93 hbr.org/cs/2012/11/the_dark_side_of_charisma.html Hickson, D. J., Hinings, C. R., Lee, C. A., Schneck, R. E., & Pennings, 30. History.com. (n.d.). Winston Churchill. Retrieved August 8, 2013, from J. M. (1971, June). A strategic contingencies’ theory of intraorganizational http://www.history.com/topics/winston-churchill power. Administrative Science Quarterly, 16(2), pp. 216–229. Retrieved May 26, 2014, from http://www.leadership-central.com/strategic31. Department of the Army. (1997, May 31). FM 101-5, Staff Organizations contingencies-theory.html#axzz35D1vxFdZ and Operations. Washington, DC: Headquarters, TRADOC. Retrieved August 8, 2013, from http://pdf.4istudent.com/army-planning-and-ordersLeadership-Central.com. (n.d.). Strategic contingencies theory. Retrieved production-fm-5-0/free-download-ppt-ebooks/powerpoint-presentation/ May 26, 2014, from http://www.leadership-central.com/strategicebookbrowse contingencies-theory.html#axzz2pDkLqy93 32. Department of the Army. (1997, May 31). FM 101-5, Staff Organizations Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: Pearson, p. and Operations. Washington, DC: Headquarters, TRADOC. Retrieved 311. August 8, 2013, from http://pdf.4istudent.com/army-planning-and-ordersBased on Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: production-fm-5-0/free-download-ppt-ebooks/powerpoint-presentation/ Pearson. ebookbrowse Based on Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: 33. House, R., Javidan, M., & Dorfman, P. (2001). Project GLOBE: An introPearson, pp. 186–187. duction. Applied Psychology: An International Review, 50(4), pp. 489–505. Based on Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: 34. Greenleaf, R. K. (1977). Servant leadership: A journey into the nature of Pearson, p. 187, p. 313. legitimate power and greatness. New York: Paulist Press, p. 7. Based on Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: 35. Lussier, R. N., & Achua, C. F. (2013). Leadership: Theory, application, & Pearson, p. 187. skill development (5th ed.). Mason, OH: Cengage, p. 348. Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: Pearson, pp. 36. Bass, B. M. (1990). Handbook of leadership. New York: Free Press, p. 54. 406–407. 37. Gardner, J. W. (1990). On leadership. New York: Free Press, p. 122. Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: Pearson, p. 38. Character. (n.d.). Merriam-Webster’s online dictionary. Retrieved May 27, 188. 2014, from http://merriam-webster.com/dictionary/character Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: Pearson, p. 39. US Army. (2009, July). Leadership assessment report cadet command 188. (REG 145-3 Requirements Control Symbol ATCC-122. CDT CMD FORM Based on Yukl, G., Lepsinger, R., & Lucia, A. (1992). Preliminary report 156-4A-R JUL 09). Retrieved May 27, 2014, from http://www.montana. on development and validation of the influence behavior questionnaire. In edu/wwwarmy/pdf/CC%20Form%20156-4AK. Clark, D. B. Clark, & D. P. Campbell (Eds.), Impact of leadership (pp. R%20%28Blue%20Card%29_Jul%2009.pdf 417–427). Greensboro, NC: Center for Creative Leadership. 40. US Army. (2009, July). Leadership assessment report cadet command MindTools. (n.d.). Hersey-Blanchard situational leadership theory. (REG 145-3 Requirements Control Symbol ATCC-122. CDT CMD FORM Retrieved August 8, 2013, from http://www.mindtools.com/pages/article/ 156-4A-R JUL 09). Retrieved May 27, 2014, from http://www.montana. newLDR_44.htm#sthash.Mcffypop.dpuf edu/wwwarmy/pdf/CC%20Form%20156-4A“LT. General Russel L. Honoré, US Army (Ret), was widely hailed by R%20%28Blue%20Card%29_Jul%2009.pdf the media as the ‘Category 5 General’ who led Task Force Katrina in 41. US Army. (2009, July). Leadership assessment report cadet command the aftermath of the devastating hurricanes that struck the Gulf Coast (REG 145-3 Requirements Control Symbol ATCC-122. CDT CMD FORM in the summer of 2005.” General Russel Honoré, LLC. (n.d.). Home. 156-4A-R JUL 09). Retrieved May 27, 2014, from http://www.montana. Retrieved March 6, 2014, from http://www.generalhonore.com/ edu/wwwarmy/pdf/CC%20Form%20156-4A?keyword=Lieutenant%20General%20Honore&gclid=CL2H1qqr1LwCFZFrfgodHmcA3A R%20%28Blue%20Card%29_Jul%2009.pdf Siegel, J. (2011, October 6). When Steve Jobs got fired at Apple. ABC 42. Bass, B. M. (1990). Handbook of leadership. New York: Free Press. News. 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Endnotes 1. 2. 3. 4.

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10. 11. 12. 13. 14. 15. 16. 17. 18.

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Technology/steve-jobs-fire-company/story?id=14683754

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CHAPTER 4

Building Teams, Adaptive and Situational Leadership, and Leadership Power Character is like a tree and reputation like a shadow. The shadow is what we think of it; the tree is the real thing. — Abraham Lincoln Alone we can do so little; together we can do so much. — Helen Keller Sam, the department manager, appeared at the podium in front of a group of forty people he was now responsible to lead in order to meet the company vision and mission and remain within the company’s operational intent. He began by stating, “Ladies and gentlemen, welcome to our team!” A few minutes before arriving to the podium and making these comments, Sam was sitting in his office to review his notes concerning what it would take to be successful in his new position. He assured himself that he had to quickly build team cohesion, skills, and processes with the group he was now leading to ensure that each member capitalized on his or her individual strengths. He understood the purpose of the company mission and the many other concerns that are not always visible from the leadership team or employee perspective, understanding that they are directly engaged and focused on performing their day-to-day duties. Regardless of the larger issues he faced as the leader, he knew the one constant was that employees perform their duties out of professional pride for other people in their section, for others in the larger department team, and for those that are to their left and right performing their unique skill for the company. He knew that, in general, people want to get the job done—and done right—because they do not want to let their coworkers or the company down and, in the end, want to be known as a winning team. Sam, as the designated legitimate leader, knew that developing teams takes hard work, patience, interpersonal skills, and the application of specific leadership styles by being an adaptive leader and exercising the appropriate personal and position power at the right time and place and in an ethical and moral manner. He also knew the reason he was selected for this position was the trust his leaders had in him, and because of this, they were investing in his leadership skills. In turn, he was going to invest in his followers because good teams complete the mission on time with the resources given to them and with little wasted effort. With this thought etched in his mind, Sam continued his remarks, “Thank you for being part of this great department’s team, as we are all entrusted with performing a crucial part of our company’s mission to achieve its vision.”

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4.1 Building Teams Learning Objective 1. Explain the formation, development, and sustainment stages of team building. Building teamwork and cohesion are measures of the organization’s leadership climate, and as you know, the leadership climate is key in guiding the overall organization. leadership climate The state of what employees or subordinates believe regarding how the leader has shaped the organizational climate in terms of the level of trust they have in the leader and the level of empowerment they have to perform duties and responsibilities in the organization.

The leader is the “standard-bearer” for the organization and is responsible for building a leadership climate that rewards behavior consistent with the organization’s values. A positive leadership climate involves the leader creating an environment that rewards followers who are bold and innovative in accomplishing their duties and responsibilities. These types of leaders challenge the organization and each individual to take calculated risks and train to develop to their full potential. The leader uses his or her leadership team in shaping and assessing the organization’s leadership climate. The ultimate responsibility to create and maintain the leadership climate rests with the leader. This is often done by creating the proper climate for team building and utilizing the stages of the team development process in order to maximize productivity. We discuss these areas next.

Creating a Leadership Climate for Team Building Leaders who engage in building a cohesive team exhibit a selfless attitude and a strong sense of duty toward the organization’s values and mission. In this sense, they are thought of as true believers of an ideal organization, transcending their desire for personal accomplishments and instead working for those accomplishments identified by the team. Effective teamwork is required for an organization to operate efficiently and effectively. Teamwork ensures common organizational values are adhered to and that the mission and vision are achieved within the context of the leader’s operational intent. The central responsibility of the leader, then, is to encourage other members of the organization to work together while promoting group cohesion and possess pride in the accomplishment of the organization’s vision. To achieve teamwork, the leader first needs to establish a trusting environment based on the expectation that others will act for the team when the leader is not present by keeping the team’s interest ahead of their own. Leaders do the hard work of demonstrating and expecting cooperation among team members. Collaborating with team members and insisting on this standard from the outset of the team’s formation builds trust among the members. Setting a baseline standard of cooperation and expecting the same standard from other team members reduces conflicts, assists with the rapid integration of new members into the team, instills commitment to core values, ensures team tasks are identified to meet the mission, provides clear and attainable authority boundaries between the leader and led, allows for a clear understanding of personal legitimate authority (position power) to manage team members’ respective areas of responsibility, and works to keep the team membership stable to sustain and enhance cohesion over a period of time.[1] Building effective teams—in the context of forming, enriching, and sustaining—is essential for the art of leadership to succeed. The formation of teams does not develop by accident—it is purposeful (formed to achieve a desired end state), analytical (each member being vetted and critically analyzed for his or her potential contribution), and organized (positions legitimately assigned with © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

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Building Teams, Adaptive and Situational Leadership, and Leadership Power

authority and responsibility outlined for each member) to meet the organization’s mission. Once organized for the mission, leaders are charged to coach and guide teams through developmental stages to become effective and efficient. The US Army leadership[2] speaks to three specific developmental stages of team building: formation, development, and sustainment of organized teams. We cannot expect every team to be similar beyond the fact that each has a focal leader and associated followers or subordinates assigned to it. Member composition in personality and skill alone differentiates the manner in which a team performs its roles and responsibilities. The team itself is also dependent on a variety of external support structures within the larger organization’s unique vision and mission. The section or department team you are part of may be part of a larger division or department team. An example is a suborganization department team being managed by an executive team division leader within the hierarchy of an organization. The executive team’s main role and responsibility may be solely dedicated to supporting or enabling the accomplishment of the subordinate department teams’ missions. Another example is a leadership team that is structured loosely with a team configuration that includes volunteer leaders. Though there may not be any direct line-and-staff authority to the executive team, the goal of the volunteers is to provide assistance to the executive team effort. An example of volunteers working to help an executive team can be seen in not-for-profit political organizations where the volunteers are not paid but support a political candidate. Political volunteers need to be formed into areas of responsibility, enriched with training, and sustained for prolonged political campaigns. Volunteer food banks and first-responder assistance serve as additional examples. The one constant for leaders in any of these organizations is the requirement to form, enrich, and sustain each separate team regardless of whether they are executive team members or are leading a volunteer group.

The Team Structure the Leader Inherits Most of the time, you are selected to lead a team that is not of your making, and it is important to understand the organizational structure you are given to lead or manage. The two examples provided in this section discuss a traditional line-and-staff organizational structure and a “flatter” organizational structure. Each example provides an awareness of the existence of teams in a configuration that is vertical, lateral, or both. The important point to remember is that no matter what organizational structure you are leading, you will have to form, enrich, and sustain your team efforts. Figure 4.1 provides an example of larger to smaller team configurations within a line-andstaff organizational structure. Each level of the organization has a specific role and responsibility to perform. However, the vision and mission, starting at the top of the organization, “cascades” throughout the company to the bottom, allowing for a focused effort in providing a product or service to the customer that is consistent with the strategy of the higher headquarters. The one constant in this example is each level of the organization represents a team function with different roles and responsibilities that adhere to the concept of team formation, enrichment, and sustainment. Figure 4.1 represents a cascading effect of teams in a structured line-and-staff organization, with each level having a different purpose and mission at the level of the organization that supports the larger organization’s vision and mission. In a structured organization, there is often a board of directors that the chief executive officer (CEO) reports to, while the board and the CEO report to stakeholders such as investors. The board of directors can directly influence the actions of the CEO.

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FIGURE 4.1 Example of an Organization Team Structure in a More Structured Line-and-Staff Configuration

Figure 4.2 represents a flatter type of organization structure with a less defined or less formalized organizational structure, often observed in not-for-profit organizations where team members (followers) may be volunteers and not paid employees (followers or subordinates). The Red Cross[3] represents both a formal and an informal organizational structure. The formal structure provides the direction and means to collect and distribute donor blood, and the grassroots volunteers are organized across the United States to provide other emergency services with no direct authority chain to the volunteer teams. Yet the volunteer teams do influence executive team decisions and actions on how best to support the volunteers’ mission.

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Chapter 4

Building Teams, Adaptive and Situational Leadership, and Leadership Power

FIGURE 4.2 Example of an Organization Team Structure in a Less Structured Configuration Each group could represent a separate team within the organization that may not have a support relationship to another volunteer group. In this case, they are interdependent of each other but do depend on the executive team to help lead and manage their efforts.

Competent leaders are sensitive to the characteristics of their team and its individual members. In this sense, team characteristics comprise aggregate or distinctive qualities beyond those of how each member may think on an individual level, as he or she feels or behaves in accordance with his or her unique personality. Instead, the characteristics of a team consist of shared or similar cognitions and behaviors among team members, including moral and ethical positions. Only when the team achieves a shared or aggregate team outlook will it have a cohesive team outlook.[4] Teams develop differently, and the boundaries between stages are not rigid and do not represent rules that must be followed. Each organization’s mission is different, and examples abound as the product or service each organization or suborganization provides for another segment of the organization will greatly differ in size, scope of mission, and capability. A stark example is the manner in which military organizations are formed, with each having a specific mission and capability different than another. Communication corporations such as AT&T, Verizon, and T-Mobile have similar objectives but different services and products to differentiate one from another. Because of this, the personalities and skill sets of individual team members differ to complement the organization’s type of mission. Reviewing the results of the stages of team development (formation, development, and sustainment) can help determine what to expect of the team and what is needed to improve its capabilities to perform the organization’s mission. Figure 4.2 provides an example of a less formalized structure where teams are not responsible to support each other. In this example, the team leadership burden falls squarely on the executive team and its staff. Volunteer groups may report to the executive team, but there is no formal authority between the executive and the volunteer group. Many ad-hoc organizations are formed for a special purpose to meet an immediate need, especially in crisis situations. These organizations often do not form into teams until the crisis occurs, disband after the crisis is solved, and form again to meet the next crisis. In situations such as these, it is very important for leaders to understand the team development process of team formation, development, and sustainment, as the executive team is constantly forming and developing new volunteer members. Without volunteers to occupy

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the roles and responsibilities, the executive team would not have anyone to accomplish the mission for them. In Figure 4.2, the relationship between the board of directors and the executive team may not be as formalized as in a structured organization (Figure 4.1), yet the teams can provide recommendations to the chain of leadership represented by the executive team. In this type of organizational structure, there are no investors to influence the executive team beyond the stakeholders receiving the service, which is often free or at a lower cost than in a private sector organization. No matter what type of organizational structure presents itself to the leader, forming, enriching, and sustaining the team are required to not only be a successful leader but also have an effective and efficient team that provides direction, guidance, and purpose to subordinate teams within the organization. The following discussion concerning team development represents the three stages of leading teams identified in Army Field Manual (FM) 6-22 and includes the formation, enrichment, and sustainment stages of team building.[5]

The Formation Stage formation stage In team building, the leader is responsible for welcoming or receiving new team members to the organization. How the leader “receives” and “orients” a new team member is crucial to the member feeling fully accepted as part of the team.

Teams work best when new members are adopted into the organizational structure quickly, and this is what the formation stage of team building represents. The formation stage refers to how you “receive” and “orient” new members into a team and is crucial to their feeling fully accepted as part of the team. Key to orientation is establishing a sponsorship program aimed at helping new team members adjust to their new organizational and leadership environment. This stage is very important and can determine the success or failure of new arrivals to assimilate and become productive members of the team. An organization that coaches new employees to adjust to the new work environment culture, values, and standard operating procedures will cause less turmoil or friction in the team and help accelerate team cohesion.[6] The formation stage of team building identifies your leadership style to the new member. It involves the direct responsibility of receiving and orienting the new team member with your specific guidance and leadership philosophy in addition to the values and standards of the company, as well as its vision, mission, and operational intent. In this way, the team leader ensures all team members are synchronized in knowing and understanding the standard operating procedures by highlighting the organizational history and how the individual member’s role and responsibility contribute to the organization’s success. Each of these areas plays a part in achieving follower buyin to the team goals as well as the organizational vision and mission. This stage is crucial to making the team member feel fully accepted by the leader and other team members. The leader is responsible for welcoming or receiving the new team member to the organization, which should include a personal and professional introduction. The formation stage of team building (see “Formation Stage of Team Building” sidebar) begins with an orientation meeting with team members. The object of the orientation meeting is to learn about key personnel within the chain of leadership, identify the roles and responsibilities of various people in the organization (human resource and political frames), understand what resources are available and review the organization’s structural frame (line-and-staff versus flat organization and accompanying financial and material resources), and learn about the history or symbolic frames of the organization.[7] The leader accomplishes this by reviewing the organizational chart and then visiting each department to ensure the organizational chart matches what is physically present in each suborganization (section or department). The orientation should also include learning the organization’s daily schedule or work rhythm and generally getting to know the workflow and the leadership environment expectation where the work actually takes place. If applicable and available, a sponsor or coach could be assigned to a new arrival for a short period to reduce the time it takes to assimilate him or her to the team. More about employee orientations is discussed in Chapter 6.

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Chapter 4

Building Teams, Adaptive and Situational Leadership, and Leadership Power

Formation Stage of Team Building Leadership Style 1. Be sensitive to employee personal problems. Demonstrate a caring and supportive attitude. Understand the use and exercise of legitimate authority when coaching, rewarding, or punishing followers (position power). 2. Know your employees—personal data, skills, level of commitment, how they react in crisis situations, strengths, and weaknesses. 3. Be fair in issuing “assignments or tasks” and treat all employees—regardless of race, gender/sexual orientation, or religious beliefs—as you would want to be treated. 4. Work to earn the confidence and trust of your employees based on your display of experience and expert skill, which leads to the attainment of personal power. 5. Know enough about your subordinates’ jobs and personal attributes so that you can coach and teach them based on their individual potential for future success. 6. Know what leadership style best fits the situation presented to you (i.e., charismatic, inspirational, or authoritarian). Reception 1. Formally receive your employee into the organization, and make the encounter part of the organization’s culture. 2. Assign, at minimum, one peer sponsor who is regarded as a role model in the organization. 3. Provide adequate time for administrative in-processing and formal orientation into the organization. 4. Develop a symbolic ritual to conduct a formal or informal greeting and farewell for team members. Greet new members while bidding farewell to departing team members to demonstrate the chain of allegiance the organization has for its membership. Orientation (Values and Standards) 1. Live by and communicate the organization’s values, standards, and ethical principles. 2. Communicate standards of personal and team conduct clearly during employee orientations. Have other employees teach new employees what the expected standards are. 3. Recognize and reward employees for exemplifying organizational values, standards, and the display of personal initiative. 4. Instill the values and standards of the organization by coaching and teaching them on a repetitive basis. 5. Require the team to accept the organization’s espoused values and standards. Vision, Mission, and Operational Intent 1. Communicate the organization’s vision, mission, and operational intent during the orientation period. 2. Spend individual or one-on-one time with each employee to inform him or her of what is expected in terms of responsibility and accountability in the work role and to find out what he or she expects from the leadership team. Standard Operating Procedures (SOPs) 1. Ensure a simple, clear SOP is published that employees are required to read and understand. 2. Communicate the way the section and department conduct business and what critical information requirements should be reported to the leadership team. Organizational Symbolic History 1. Communicate past organizational accomplishments and rituals, or if it’s a new company, the importance of the contribution and history-making opportunity the employee has in the entrepreneurial venture. 2. Identify with the organization’s history and particular story, or create a symbolic story line that supports the company’s long-term vision.

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Source: US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 8-16–8-18. Retrieved February 23, 2014, from http://usacac.army.mil/cac2/Repository/Materials/fm6-22.pdf

The characteristics of forming a close team include the following:[8] • Developing a strong dyadic foundation of leader-member trust • Trusting that each team member is able to predict the actions of what the other will do in a work situation • Team members working together to accomplish the organization’s vision and mission within the constraints of the organization’s operational intent • Executing tasks to a high standard in the appropriate time limit with the resources provided, meeting the standard, or scope, of work and, when time and circumstances permit, exceeding the established standard • Exceling in the accomplishment of demanding challenges, reflecting to learn from the teams’ historical experiences to better synchronize the organization’s next effort and accomplish the mission more efficiently and effectively • Celebrating and developing pride in individual and team accomplishments to build on the organization’s history of success

The Enrichment Stage enrichment stage In team building, leaders learn to trust followers by listening, following up on what they hear, establishing clear lines of authority, and setting standards. The most important thing a leader does to strengthen the team is ensuring for individual and collective training.

In the enrichment stage, “new teams and team members gradually move from questioning everything to trusting themselves, their peers, and their leaders.”[9] The three areas of the enrichment stage include the leader’s actions, training, and the team’s development during the conduct of operations. Leaders’ actions include learning how to trust by listening, following up on what they hear, establishing clear lines of authority, and setting standards. In addition, taking care of team members by providing the necessary coaching, training, and resources are essential leadership actions during the enrichment stage.[10] The most important thing a leader does to strengthen the team is ensuring individuals are competent or experts in their skills and can use their individual skills in a collective setting. The leader accomplishes this by providing training of the team to ensure organizational systems are functioning. Leaders train a group of individuals and synchronize their activities into a synergistic team while preparing them to accomplish the organization’s mission. Training is a continuous process throughout all three stages of team building but is planned in the enrichment stage, including how to conduct routine individual tasks that lead to collective team accomplishments. Training is particularly important during the enrichment phase, as it builds increased individual and collective proficiency prior to executing the operational requirement of the organization. Team and individual development do not stop prior to facilitating the operation. In a learning organization, the leader ensures that at the end of each phase of an operation, the team is reflecting and learning lessons on how to perform the next operation or task in a more effective and efficient manner. In this way, the leader ensures the team learns from its mistakes and sustains those areas that result in competent action. During reflective and training periods, the leader’s presence and display of expert knowledge is required to gain the trust of team members. We discuss training and the types of training in greater detail in Chapter 6.

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Chapter 4

Building Teams, Adaptive and Situational Leadership, and Leadership Power

Enrichment Stage of Team Building Enrichment Stage of Team Building Leadership Actions 1. When employees are moving or transferring from one company location to another, allow employees time to get their personal affairs and their families settled before they are put to work. Allow new employees a short grace period to settle into the company’s routine. 2. Use employees in productive activities as soon as they finish initial in-processing and orientation. 3. Take time to listen to the employee within two weeks of joining the organization; follow up on your initial meeting to ensure the employee is ready to fully participate in work activities. 4. Retain control and respect for your employee as you allow him or her to express questions and concerns (often referred to as the storming phase, where “harmonizing” is the main leadership goal).[11] 5. Involve all employees in the organization’s goal-setting process; often a bottom-up approach is a good method of gaining follower support. 6. Periodically spend time with each employee to help clarify his or her expectations of you and the team and to help coach him or her to understand your expectations. 7. Check the level of trust employees have in one another, you, and other organization leaders. 8. Ensure the organization’s policies and practices communicate trust to the employee. 9. Ensure your actions and words encourage acceptance of who they are and what they do. 10. Protect your team from tasks or assignments beyond available resources and their abilities. 11. Be concerned about each employee’s development so that the employee is best equipped to become a productive team member and evaluate his or her potential for advancement or assignments of increasing responsibility. Training Responsibilities 1. Develop training that challenges the employee and keeps him or her actively involved. 2. Know the benefits your employee feels he or she received from the training experience. 3. Ensure your tasks and mission lead to accomplishing the organizational goal and avoid mission creep or expansion of the mission. 4. Reward your team for accomplishing training. 5. Keep training detractors or distractions to a minimum. 6. Continue to upgrade the training quality to improve individual and collective team performance. 7. Emphasize safety in all training requirements. 8. Ensure you have leadership presence during the conduct of training. 9. Make sure your training is relevant to the organizational mission and role of the employee. 10. Plan for a reflective period after training is conducted. Development during the Conduct of Operations 1. Ensure you demonstrate competence that develops referent and expert power with employees. 2. Know your employees and continuously assess them for leadership potential. 3. Pace your employees’ integration into the conduct of current operations. 4. Ensure team members are prepared to receive and assist a new employee to enter the organization. 5. Keep your employees informed. 6. Ensure you have leadership presence during operations. 7. Ensure your employees have a realistic outlook of how their current accomplishments met organizational goals and what needs to be accomplished in the future.

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Source: US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 8-17–8-18. Retrieved February 23, 2014, from http://usacac.army.mil/cac2/Repository/Materials/fm6-22.pdf

The Sustainment Stage sustainment stage In team building, employees do what is necessary to obtain organizational success without being directed to do so. They clearly identify with their team, develop personal ownership for tasks, and take pride in team accomplishments.

During the sustainment stage, employees identify with “their team.” They develop ownership, take great pride in the team’s accomplishments, and continually work for the team to succeed. At this stage, employees will do what is necessary without being directed to do so. Every new task gives the leader a chance to strengthen the bonds and challenge the team to accomplish more. The leader develops his or her employees because they will be tomorrow’s team leaders. The team should continuously train so it maintains proficiency in collective and individual tasks to accomplish its mission.

Sustainment Stage of Team Building Leadership Actions 1. Be aware of the effect of change on teamwork. Actively work to minimize the effects of change. 2. Periodically check on the progress of each employee to ensure that personal goals and team goals are compatible. 3. Use team expectations and standards as a measurement by which employees accept new members into the team. 4. Work to ensure each team member shares a commitment to the team mission. 5. Reassess team goals often to ensure timely adjustment to the changing operational environment. 6. Listen for suggestions, concerns, or complaints of employees that can assist in maintaining a high level of teamwork. 7. Develop a training program that challenges the employee and minimizes boredom. 8. Remain sensitive to your employees’ concerns. Team Activities 1. Plan team activities that build spirit, identity, and cooperation. 2. Utilize department ceremonies to acknowledge individual and team accomplishments. 3. Ensure your team is aware of contributing to community efforts outside of the organization. Sustainment during the Conduct of Operations 1. Ensure your employees reflect and learn from the actual experience of conducting current operations. 2. Ensure your employees spend time talking laterally and vertically to share operational experience to capture best practices. 3. Ensure employees know about stress-reduction activities and techniques. 4. Take decisive steps to counter rumors. 5. Take decisive actions to prevent/cope with employee despair and panic in organizational downturns. 6. Be alert to disruptions in your organization that might cause teamwork to suffer. Source: US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 8-17–8-18. Retrieved February 23, 2014, from http://usacac.army.mil/cac2/Repository/Materials/fm6-22.pdf

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Chapter 4

Building Teams, Adaptive and Situational Leadership, and Leadership Power

TABLE 4.1 Overview of Team-Building Stages Stage

Employee Actions

Leader/Manager Actions

Formation Stage General team building

• Learn about the team’s purpose, tasks, and standards

• Design effective reception and orientation

• Learn about leaders and other team members

• Create learning experiences

• Achieve belonging and acceptance

• Listen to and care for employees

• Communicate expectations • Reward positive contributions • Set a leadership example

Team building for operational success

• Adjust to uncertainty with new leadership and team structure

• Talk with employees

• Cope with the fear of the unknown

• Communicate vital information

• Adjust to organizational change

• Reassure with a calm presence • Provide a stable situation and predictability • Help employees with immediate problems

Enrichment Stage General team building

• Trust leaders and other members

• Trust and encourage trust

• Cooperate with team members

• Reinforce desired group norms

• Share information

• Establish clear lines of authority

• Accept standard operating procedures

• Establish individual and organizational goals

• Adjust to feelings about how things ought to be done

• Identify and grow leaders • Train as an organization for the mission • Build pride through accomplishments

Team building for operational success

• Demonstrate individual competence

• Demonstrate leadership competence

• Cooperate with team members in collective tasks

• Prepare collectively to accomplish the operational expectation

• Accept the standard operating procedures

• Know your employees

• Adjust to feelings about how things ought to be done

• Provide for a stable organizational climate • Emphasize safety to improve individual and team production

Sustainment Stage General team building

• Trust others

• Demonstrate trust

• Share ideas and feelings freely • Assist other team members

• Focus on teamwork, training, and maintaining

• Sustain trust and confidence

• Respond to subordinate problems

• Share tasks, missions, and values

• Devise quality collective training • Build pride and spirit in the team

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Team building for operational success

• Adjust to long-term operations

• Observe and enforce organizational standards and discipline

• Cope with employee turnover

• Sustain safety awareness

• Adjust to operational changes due to industry changes

• Know employee perceptions and mitigate unreal or unfounded expectations

• Overcome repetition and boredom • Avoid rumors • Control fear of job loss, anger, despair, and panic

• Inform employees of actions and changes

• Sustain employee production levels • Use in-process reviews and organizational reflective periods to obtain lessons learned • Act decisively in the face of employee fears

Source: US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, fig 8-1, p. 8–17. Retrieved August 19, 2013, from http://usacac.army.mil/cac2/Repository/Materials/fm6-22.pdf

Since teamwork and cohesion are measures of the leadership climate you set for the organization, it is necessary to periodically assess the climate. Taking care of people and maximizing their performance also depends on the climate a leader creates in the organization. Assessing the organizational climate provides the leader with a spot check in a specific point in time as to how followers feel in their day-to-day interactions with the company. All these things directly impact employee motivation and the trust they feel toward each other and their leadership team.

Additional Perspectives In-Group Collectivism in Leadership In-group collectivism refers to the degree to which individuals express pride, loyalty, and cohesiveness in their organization. A person with high in-group collectivism may focus on relatedness within the group, believe that duties and obligations are important parts of social behavior, and have a slower pace of life. A person with low in-group collectivist focuses on personal needs as a determinant of social behavior and might have a faster pace of life. Assume you are the leader of a five-person team and three of the team members have high in-group collectivism and two members have low in-group collectivism. The high in-group collectivism individuals often invite the entire team to lunch, but the low in-group collectivism members often refuse. The three high in-group collective members come to you concerned about the fact that the team doesn’t seem cohesive. What would you tell the high in-group collectiveness individuals in this situation? What would you tell the low in-group collectiveness individuals? Source: Based on House, R., Javidan, M. and Dorfman, P. (2001), Project GLOBE: An Introduction. Applied Psychology, 50: 489–505. doi:10.1111/1464-0597.00070.

Some of the actions leaders take to determine the leadership climate include assessing whether the leadership team feels employees have a collective sense of the organization’s values and its mission and if they truly feel a part of or are woven into the fabric of the organization. The leadership climate is directly attributed to the leader’s values, personal power (referent and expert), cognitions, and behaviors. Leaders are responsible to shape and guide the team climate of the organization, no matter the size of any particular team or if they take appropriate or inappropriate steps in doing so. It is recommended that within ninety days of forming the team, and then annually, the leader assesses the leadership/organizational climate by answering the following twenty questions modified from the US Army’s Unit Climate Profile Commander’s Handbook.[12] It is strongly encouraged that leaders review and develop questions that apply to their type of organization, as doing so can assist leaders in ascertaining what their leadership/organizational climate consists of

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Chapter 4

Building Teams, Adaptive and Situational Leadership, and Leadership Power

at a specific time and help leaders identify the actions required to develop, change, or sustain team effectiveness. Here are some sample questions: A. Organizational standard and policy questions a. Are clear priorities and goals set? b. Do leaders understand the task they are doing to support the organization’s mission? c. Do leaders actively seek input from superiors and subordinates? d. Do leaders listen and act on the feedback from superiors and subordinates? e. Do subordinate leaders feel confident they have the authority to use initiative without retribution as long as they are consistent with the leadership vision, mission, and operational intent? f. Are rules, regulations, and policies enforced in the organization? B. Organizational human resource questions 2.1. Do leaders have a system of rewards and punishments? Do they work? 2.2. Do leaders perceive high levels of internal stress and negative competition in the organization? 2.3. Are race, ethnic background, or sexual orientation made an issue in your organization? 2.4. Is the promotion policy of your organization fair to ethnic and minority employees? 2.5. Are standards of discipline high in your organization? 2.6. How do you feel about the standard discipline in the organization? 2.7. Do employees of the organization receive appropriate praise, rewards, or punishment? 2.8. While on the job, do you feel harassed by upper management? C. Organizational communication, moral, and welfare questions 3.1. Do leaders have the moral courage to admit when they are wrong? 3.2. Do leaders set the example, act selflessly, and share in the hardships when in crisis situations? 3.3. Do leaders talk to the organization regularly and keep people informed? 3.4. Is it easy or difficult to meet with a person in a leadership position? 3.5. Does the organization spend time conducting social activities? 3.6. How do you feel about the types of social activity the organization participates in? Leadership cognitions and behaviors, including the manner in which leaders communicate, the actions they take, and their physical presence in the organization, have a significant impact on the leadership climate. Leaders who perform in an ethical and moral manner and who are consistent with the organization’s espoused values create a healthy leadership climate. So far, we have discussed the steps to team development. In Section 2, we relate this discussion on leadership climate and team building to adaptive leadership.

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Video Clip 1 Knowledge Horizons discusses how the leader can support the team development process.

View in the online reader

Key Takeaways • The team you are leading may be part of a larger, formally structured company team or a more loosely defined, unstructured volunteer team. In every case, the teams will be unique to the mission they are charged to execute, with the one leadership constant involving the formation, enrichment, and sustainment of the team effort. • The formation stage of team building identifies the kind of leader you are. It involves receiving, orienting, and sharing the values and standards of the company, as well as sharing the vision, mission, and operational intent; providing the standard operating procedures the team uses; and highlighting the organizational history. Each of these areas plays a part in achieving employee buy-in to the team goals and organizational vision and mission. This stage is crucial to making team members feel fully accepted. Good sponsorship of a new team member is important and makes the difference between the success or failure of the new arrival’s integration with the entire team. • Three areas of the enrichment stage include the leader’s actions, training, and the team’s development during the conduct of operations. Leaders’ actions include learning how to trust by listening, following up on what they hear, establishing clear lines of authority, and setting standards. Taking care of team members is essential during this stage. • During the sustainment stage, employees identify with “their team.” They develop ownership, take great pride in the team’s accomplishments, and continually work for team success. At this stage, employees will do what is necessary without being directed to do so. Every new mission gives the leader a chance to strengthen bonds and challenge the team to reach for new accomplishments. The leader develops employees because he or she knows they will be tomorrow’s team leaders. • The leadership climate is directly attributable to the leader’s values, expertise, and behaviors. Leaders shape the team climate of the organization, regardless of the size of any particular team. It is recommended that the leader assess the climate within ninety days of building the team. • Effective organizations require teamwork based on individual trust and cohesion laterally and vertically within the organization. The mix of skills will dictate the need to keep versatility in planning functions. Forming the team may be an ongoing annual process. One of the early challenges facing leaders with high turnover is keeping a cohesive team together once it is formed. Only then can you meet the enrichment and sustainment goals of moving the team forward.

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Chapter 4

Building Teams, Adaptive and Situational Leadership, and Leadership Power

Exercises 1. Compare and contrast team organization structures identified in a private sector corporate business with a state organization and a not-for-profit organization. It is important to learn about the type of organization you are going to lead; because of this, determine how you would “form” your team based on the type of organizational structure, mission, and values presented by each of the organizations you selected. This can be an individual or group assignment, where each group is responsible for one of the three organizations or each individual compares and contrasts at least two types of organizations. 2. You have just taken the leadership role of the department you are currently working in or are applying for: a. What actions would you take during the formation stage to build an effective team? b. You have formed your team and are now concerned with enriching their development. What activities will you take during the individual and team enrichment stages to continue building your team’s effectiveness and efficiency? c. You have fulfilled the requirements of forming and enriching your team. What actions will you take during the sustainment stage to keep your team focused and productive to meet the organization’s vision and mission? 3. Assessing the leadership climate of an organization is important to having a healthy, productive organization. Reflect on an organization you were part of or are currently in to assess the leadership climate using the recommended questions for assessing the leadership or organization’s climate. 4. What steps would you consider using in the formation, enrichment, or sustainment phases of team building to correct any identified deficiencies?

4.2 Adaptive and Situational Leadership Learning Objectives 1. Understand adaptive leadership behaviors. 2. Define your adaptive leadership behaviors during situational or environmental changes facing the organization. The functions of teams are never stagnant, and leaders require situational awareness at all times to keep their teams effective and efficient. Situational leadership describes a way of adapting leadership behaviors or styles to the features of the situation and the employees they are confronted with. The key point is that the leader adapts to the situation by providing guidance, direction, purpose, and the means for the team to succeed.

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adaptability The adaptive leader has the ability to recognize changes in the environment affecting the organization, identify the critical elements of the situation presented to the leader, and make the appropriate decision to mitigate the situation to the benefit of the organization and its employees.

area of operation/ responsibility Conforms to the size and design of the organization so the leader can employ assigned and supporting systems to accomplish assigned tasks and take care of employees. Leaders may be presented with an internal or external situation that they have to adapt to.

area of interest This is the area where the leader adapts to and influences actions outside of the immediate scope of his or her assigned area of operation/responsibility. This area can be occupied by an organization that does not normally compete with your organization.

Adaptability involves the leader’s ability to recognize changes in the organization’s environment. There are two areas leaders need to be cognizant of: the first is identified as the area of operation or responsibility, and the second is the area of influence. Consider the area of operation/ responsibility to be the working environment that directly impacts the day-to-day operations inside and outside of the organization. The area of operations can come in the form of short-term operational opportunities and threats (regulatory changes, collective bargaining, supply chain issues, etc.). Consider the area of interest as the area the leader needs to be situationally aware of outside of the day-to-day operations. Where managers focus on the day-to-day tasks in their area of operations, leaders pay attention to long-term opportunities and threats to develop their strategic plan, which requires looking outside of the area of operations and into the area of interest. The manager focuses on mitigating day-to-day immediate crisis situations within his or her area of operation, whereas the leader may take a calculated risk in delaying taking action on the immediate threat, or take advantage of an immediate opportunity, identified in the area of interest until the threat or opportunity directly impacts the organization mission or vision. Figure 4.3 provides a conceptual view of an organization’s areas of operation and influence. Leaders often develop mitigating actions or branch plans to address environmental or situational changes that are identified in the area of interest. The leadership team’s understanding of the operational framework is important, as it needs to continually assess, prioritize, and adapt to the opportunities and threats presented to the organization. In this case, leaders are provided position power and are delegated authority and responsibility to synchronize and prioritize the work effort in a manner that is consistent with the organization’s long-term strategic vision, mission, and operational intent. The area of operation/responsibility the leader is assigned should adhere to the size, structural design, and mission (task and purpose) of the organization so team leaders can employ their assigned and supporting systems to accomplish the task. The organization leader assigns or allocates parts of the area of operation/responsibility to the subordinate team or section leaders to accomplish their assigned organizational role. The area of interest, however, is singularly the concern of the leader and his or her designated leadership team; in this case, the leader is focused beyond the organization’s day-to-day, immediate, or short-term operational requirements. This area of “interest” is of importance to the leader, as he or she can influence action outside of the immediate area of operation by mitigating threats to the area of operation or seizing on long-term opportunities. The leader must remain vigilant and aware of what can affect his or her organization. Consider the example that an area of interest is occupied by a competing organization that does not provide a strategic threat to your organization; however, the organization is changing or adding a product or service that directly competes with your current operational strategy, which now impacts your area of operations and impacts your current operations plan.

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Building Teams, Adaptive and Situational Leadership, and Leadership Power

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FIGURE 4.3 Example of Area of Operations and Area of Interest

The area of operations and area of interest represent complex adaptive systems and are used to explain how emergent processes can facilitate how organizations adapt to turbulent environments. Complexity theory involves interacting units that are dynamic (changing) and adaptive, and the complex pattern of behaviors and structures that emerge are usually unique and difficult to predict from a description of the involved units. Leaders are situationally aware of emergent processes and adaptive outcomes as these are often unpredictable due to the dynamic between the areas of operation and interest. Adaptive leaders develop teams—who, in, turn develop emergent processes—that are distinguished by having different knowledge or skills, beliefs, and preferences, with each team interacting in an attempt to solve problems and resolve conflicts. The result of the adaptive leadership process is the production of creative ideas and new completions that can facilitate conflict resolution and an adaptive response to an organizational threat or opportunity within the organization’s area of operation and interest. The team’s emergent process used to solve the problem provides an alternative explanation for organizational learning, innovation, and adaptation.[13] Developing an adaptive culture represents a leadership requirement to actively monitor the areas of operations and interest for emerging opportunities and threats and then adapting to the changes presented in a manner that solves the unique environmental situation. This adaptive culture consists of developing policies, standard operating procedures, and historical practices that support the leadership team’s ability to respond quickly to changing environmental conditions. In adaptive cultures, individuals are encouraged to take calculated risks (not gambles), experiment to develop baseline response actions, innovate to solve unique circumstances, and learn from these experiences.[14] All members in an organization should exhibit adaptive leader qualities. Followers, as adaptive members of an organization, should especially keep their leaders informed of required changes, recognizing environmental changes in advance, and learn how to build consensus among team members on how to solve the problem as the change is occurring. Depending on the immediacy of the situation, adaptive leaders may use different methods to influence their organization. These can range from crisis action meetings and taking decisive action when time is short or publishing a recommendation of action when more time is available and a more measured approach can be taken. Ultimately, leaders scan the environment, determine the characteristics of the situation, and become aware of what actions they will take to succeed in a changing environment. Leaders must be particularly observant for evidence that the environment has changed in unexpected/unan-

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complexity theory Involves interacting units that are dynamic (changing) and adaptive, and the complex pattern of behaviors and structures that emerge are usually unique and difficult to predict from a description of the involved units.

adaptive culture This culture is made up of policies, procedures, and practices that support the leadership team’s ability to respond quickly to changing environmental conditions. In adaptive cultures, individuals are encouraged to take risks, experiment, innovate, and learn from these experiences.

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ticipated ways, recognizing that they face highly adaptive environmental threats, including the natural environment, medical emergencies such as viruses, government instability, business opportunities and threats, or internal limitations and outside constraints on available organizational resources (e.g., people, time [which is always a constraint], material, equipment, or funding). Leaders need to recognize that they face highly adaptive adversaries in business who have the ability to influence their actions in the area of operations or influence, thus impacting the type of service or product you provide. In addition, government can provide an opportunity or threat to your organization, and nature itself can impact your ability to conduct operations. Because of this, leaders need to constantly prepare themselves and their teams to have an adaptive and flexible mind-set, including an instinct for making appropriate changes to meet the environmental demands or solve an unexpected situation presented to them. If leaders remain mentally rigid and inflexible and do not develop branch operational plans to account for unexpected but possible environmental changes, then they are destined to put their organizations in a position of unnecessary risk by betting on an uncertainty without addressing the problem beforehand. Being an adaptive leader requires an ability to recognize immediate or pending environmental changes that can affect your organization. The leader should possess an intuition to look ahead and identify the critical elements of the environmental situation presented to him or her and then make the appropriate decision and take the appropriate actions to mitigate an unfavorable situation or seize the opportunity presented to him or her. The organization’s ability to adapt is based on the leader’s insight and ability to conduct crisis management training for the leadership team and then provide the resources necessary to meet the potential crisis head-on. Commitment can come in the form of allocating contingency funding for environmental or other situations that arise and require mitigating actions or in the form of research and development funding to stay mentally agile and ahead of competitors. Lastly, a leader’s decision to adapt to any given situation does not produce certainty of success or certainty that any change will improve the organization’s overall situation; however, failing to adapt will undoubtedly be detrimental. Taking simple, logical steps to understand the process of taking action, understanding the environment’s reaction to your action, thinking through your response or counteraction, and allocating the appropriate resources to your decision are important mental steps in taking control of situations that can possibly harm your organization. Changes in the environment often cause an unclear and ambiguous picture of the situation. Leaders have to become accustomed to ambiguity and uncertainty. Adaptive behavior includes flexibility and innovation in any problem-solving approach. Leaders need to be ready to face the given challenge with the resources they have on hand, be confident in their skills, and learn how to manage multiple environmental demands from a competitor or the natural environment. Additionally, today many unexpected challenges occur due to technology changes. Leaders also have to learn how to shift priorities and clearly articulate a feasible, acceptable, and suitable change of direction without disrupting the entire organization. Leaders see necessary change as an opportunity rather than a liability that takes them out of their comfort zone. Adaptability has two components:[15] 1. The ability of the leader to identify the essential elements critical for performance in each new situation, while being somewhat risk tolerant. 2. The ability of the leader to change his or her practices or organization by quickly capitalizing on strengths and minimizing his or her own weaknesses. Adaptability requires self-awareness and takes a personal effort. To become adaptable, leaders must challenge their previously held ideas and assumptions by seeking out novel and unfamiliar situations to learn from. Leaders who remain safely inside the comfort zone provided by their current level of education, training, and experience will never learn to recognize change or understand the inevitable changes in their environment. To be more adaptable, leaders should do the following:[16] • Learn to adapt by moving outside of their comfort zone and experiencing unfamiliar, diverse, and dynamic situations.

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Building Teams, Adaptive and Situational Leadership, and Leadership Power

• Lead across cultures by seeking out diverse relationships and situations. • Seek challenges that engage them in activities involving major changes in the operational environment. Becoming a specialist can often detract from building a broad experiential base as a leader. In business, a leadership style called “transformational leadership” is often the most effective approach to use in a fluid environment or when a crisis situation occurs, as we discussed in Chapter 3. Transformational leaders have integrity, inspire people with a shared vision of the future, set clear goals, motivate people toward these goals, manage delivery, and communicate well with their teams. However, leadership is not “one size fits all” philosophy; often you must adapt your approach to leadership to fit a changing situation or an environmental change. This is why it’s useful to gain a thorough understanding of other leadership styles; after all, the more approaches you’re familiar with, the more you can shape your approach to the situation or the environment presented to your organization. Each day, leaders are presented with new challenges that are unpredictable or due to environmental changes. Leaders and their leadership teams must prepare themselves to face the effects of stress, external influences that threaten their organization’s products or services, government policy that could change their operational climate, and the impact of ever-changing technology. Adaptability is an individual’s ability to assess environmental changes, identify critical elements of the new situation, and trigger appropriate changes to meet new requirements. Adaptability involves an effective change in leadership behavior in response to an altered situation. Some of these factors are mitigated through situational awareness, proper training, and open dialogue with the leadership team and superiors. However, each leader must consider these external influences and plan accordingly, as effective leaders recognize the tools needed to adapt to changing situations. Leaders must be cognizant of and adapt to evolving threats to the organization and the people they serve, take advantage of innovations (technological, procedural, etc.), and adjust to societal and government changes. Leaders are guided by the larger organization’s strategic vision and mission but should consider the following:[17] • Protect the organization and its employees. • Prevent being surprised by incremental situational changes. • Prevail against environmental changes that would disrupt the product or service delivery of your organization. Learning how to modify organizational priorities to meet environmental challenges leads to the development of an agile and adaptive leader who can quickly assess and anticipate the actions necessary to mitigate unfavorable outcomes. Understanding the effects of stress on the human dimension of an organization is an important factor for the adaptive leader. While organizational stress is constant, leaders have to understand how situational changes can move an organization or an employee over the fine line between eustress (good or effective stress motivating employees to perform a task) and distress (bad stress that causes employees to become ineffective in the performance of their tasks). Another factor the adaptive leader should be cognizant of is the importance of technology. Although we, as individuals and a society, have dealt with the rapidly changing effects of technology, the current changes are increasing at a faster rate and require organizations to rethink and redesign themselves frequently, especially in the cybersecurity area, or fear losing their performance or unique edge over competing organizations. Modern, forward-thinking adaptive leaders must stay abreast of technological advances and learn about applications, advantages, and requirements that are practical to the organization, as the right technology, if properly integrated, can increase operational effectiveness and organizational survivability. Technological challenges can include the following:[18]

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• Continually learning the strengths and vulnerabilities of new technologies and adapting technology changes that support the team mission. • Conceptualizing how the organization collaborates or operates with other suborganizations or customer organizations that may have less technological capability. • Considering the effect of technology on the time available to analyze problems, make decisions, and act on a situation; events today are fast paced and the requirement for making quick decisions adds to individual uncertainty, strain on personal confidence, and the associated stress levels that accompany the risks taken by the leader. • Leveraging today’s technology to influence followers is important as many organizations work in a virtual organizational environment separated in time and space but connected by technology. • Reducing employee skill level in performing manual tasks represents a downside to technological advances. In those instances where technology fails, or is wrongly applied, the leadership challenge shifts to manual training and performance rather than a technological solution. • Being aware that the increased amounts of information available to leaders today can negatively affect decision making, as the second-order effect of enhanced technology is information overload. In this case, too much information reduces the leader’s ability to synthesize the information and inform members of the organization in a timely manner. Adaptive leaders need to understand how to leverage the positive qualities technology can provide in increasing an organization’s efficiency and effectiveness in accomplishing routine tasks, as well as help with the development of long-range operational requirements. However, technology also brings fast-paced changes to organizations, and leaders need to recognize the impact it has on their teams in the formation, enrichment, and sustainment stages and how often old technology needs to be retooled or replaced with new technology. Change affects the leadership climate, and leaders need to understand how to adapt themselves and their organization to meet the technological challenges that influence the actions of employees. Not doing so can cause an unhealthy separation between the leader and the led, preventing optimum team performance. Besides the aspects of adaptability and team leadership we have discussed thus far, a leader should understand various power positions and how each can affect team members differently. This is the focus of our discussion in Section 3.

Key Takeaways • Adaptability involves the leader’s ability to recognize changes in the organization’s environment, identified as the area of operation/responsibility or area of influence your organization works in. • Complex adaptive systems are used to explain how emergent processes can facilitate adaption by organizations to turbulent environments. Complexity theory involves interacting units that are dynamic (changing) and adaptive, and the complex pattern of behaviors and structures that emerge are usually unique and difficult to predict from a description of the involved units. • Developing an adaptive culture represents a leadership belief or value in actively monitoring the area of operation/responsibility and influence for emerging opportunities and threats and then adapting to them in a manner that solves the unique environmental situation that presents itself to the leader. • Being an adaptive leader includes the ability to recognize changes in the environment, identify the critical elements of the situation presented to the leader, and make the appropriate decision to mitigate the situation presented. Deciding to adapt is as important as determining how to adapt. • Leaders must dually be cognizant of, and adapt to, evolving threats to the organization and the people they serve, take advantage of innovations (technological, procedural, etc.), and adjust to societal changes.

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Exercises 1. Define the area of operation/responsibility and what you would consider the area of interest of the organization you work for, are considering working for, or have previously worked for. Develop an assessment of the past or current environmental opportunities or weaknesses that would cause you, as a leader, to adapt to the situation presented to you. 2. Evaluate the technology you use in your day-to-day activities and discuss new ways you can capitalize on technology to meet your work or school obligations. How can your personal work or company adapt to the changes you identified? 3. Describe a time you had to adapt your behaviors due to a work or school situation or an environmental change when moving from one position to another in an organization. 4. Research the work habits of baby boomers, generation X, and generation Y (millennial). Once you determine which generation you fit into, identify the leadership style you would use when leading the other generations. Which adaptive leadership style should you use to become a more effective leader to form, enrich, and sustain your team culture?

4.3 Power in Leadership Learning Objectives 1. Define personal and position power. 2. Define the elements of power. 3. Apply the elements of power as a leader. Leadership power is viewed as a resource that can be used at moment’s notice, and a leader can wield different types of power in order to attain immediate compliance between the leader and the led to complete the organizational mission. While the use of power in teams and in adaptive leadership is necessary, it is also important to distinguish the types of power used to influence the dyadic relationship between the leader and the led. Examples of using power in a misguided manner include when a leader views his or her position power as a right and not a privilege, uses coercive power to extinguish an unwanted employee behavior, or forces the employee to perform an illegitimate task without thinking through the long-term consequences for the employee and organization. Leaders should understand and use power sparingly, within the context of improving the dyadic leader-to-led environment, and not use it in a haphazard or unjust manner. The use of too much position power may detract from a leader’s personal power and commit the leader to a series of operational or administrative actions that fail to empower the led. Before beginning an in-depth discussion of leadership power, it is important to understand that this section is not about the empowerment of employees. Empowerment involves autonomy, shared responsibility, and influence in making important decisions. We discuss empowerment further in Chapter 7. Instead, it is about what Bernard M. Bass states about personal and positional power: “Power can derive from one’s person or one’s position. Although it may seem otherwise, the evidence to date suggests that prospective followers tend to consider the personal power of the highly esteemed expert as more important than the legitimacy and power to reward and punish that may derive from appointment to a position of leadership.” [19]

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empowerment Involves autonomy, shared responsibility, and influence in making important decisions by the leader and the led. The level of authority a leader possesses can determine the level of decentralization allowed to subordinates and subunits.

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personal power This power is derived from followers and is based on the leader’s or on a particular follower’s behaviors in terms of the amount of referent and expert power he or she possesses.

legitimate leader Possesses the formal downward flow of authority given to a leader or manager by an authorized agent (owner or executive manager) over the work activities of followers or subordinates, as well as their adherence to rules and direction. Consent of a legitimate leader’s authority rests in the hands of the follower as much as the person providing the authority.

informal leader A person, follower, or subordinate who does not hold a legitimate leadership position in an organization but may also display charismatic leadership.

position power Derived from executive leaders, this power is delegated down the chain of command as best represented in government and military organizations. A leader who holds a legitimate position of authority has more potential to influence power than an employee who is not in a position of legitimate authority.

expert power The leader possesses relevant knowledge of the organization, technical skills, and people skills. Expert power will only remain as long as dependence on the leader is maintained, based on his or her expertise. Expert power commonly justifies legitimate power.

Personal power is derived from followers and is based on the leader’s or on a particular follower’s behaviors in terms of the amount of referent and expert power the leader possesses. Charismatic leadership, displayed by a legitimate leader’s position power, is often a strong source of personal power. Charismatic leadership, which is manifested in nonverbal emotional expressiveness or in cues to move, inspire, or captivate others, often results in achieving personal power. Personal power can be viewed as a spiritual power or a personal character quality that gives an individual influence or authority over a group of people. A legitimate leader possesses the formal downward flow of authority given to him or her by an authorized leader above his or her own position (i.e., owner or executive manager) and is given authority over the work activities of followers or subordinates and ensures their adherence to rules and directions. It is important to remember that consent of a legitimate leader’s authority rests in the hands of the follower as much as the person providing the authority.[20] An informal leader is defined as a person who does not hold a legitimate leadership position in an organization. Such leaders might also display charismatic leadership. Even though followers must consent to authority based on legitimate power, followers can restrict their performance and demonstrate dissatisfaction by initiating grievances, holding demonstrations, and presenting complaints to a union, human resources department, or person with a higher authority level than the legitimate leader, thus diminishing the referent power the leader may have. Neil Alden Armstrong,[21] who was an American astronaut and the first person to walk on the moon, embodied the ideal of personal power. He embodied “expert power” by having experience as an astronaut, naval aviator, test pilot, university professor, and aerospace engineer. Because of his expertise, he possessed “referent power” as a leader, and peers and followers viewed him as a unique individual who possessed skills and knowledge that far surpassed theirs in the same field. Position power is derived or granted from executive leaders or governing bodies and is commonly delegated down the chain of command, as represented in government and military organizations. A leader who holds a legitimate position of authority in an organization has more potential to influence the dyadic relationship between the leader and the led than a leader who does not have legitimate power. This also means that there are more opportunities for abuse of the power relationship between the leader and the led. Power is used to influence followers or subordinates to do something they otherwise might not do on their own. Some leaders use power to make people do what they want in manipulative ways, which ends in negative results. “Power can corrupt and absolute power can corrupt absolutely.”[22] Without power, leaders and managers could not achieve the organization’s vision and mission. Because of this, leadership and power are intertwined, with the leader using power to influence the action of followers and subordinates to achieve a desired end state or purpose.

Elements of Personal Power Expert power involves the leader possessing task-relevant knowledge of the organization as well as technical and people skills. Organizational knowledge includes the leader’s unique knowledge about the best way to perform a task based on the position he or she holds within the organization, solving technical or management problems based on the leader’s unique skill set, or solving employee or subordinate problems based on the leader’s people skills. Each of these areas builds on recognizing the leader’s expert knowledge and provides potential influence over subordinates, peers, and superiors. Expert power is only relevant if followers, peers, or superiors are dependent on the leader’s expertise. When the leader has a lot of expert power, is trusted, and is viewed as a reliable source of information and advice, the followers, peers, or supervisors provide the leader with credibility and a reliable source for future actions. It is essential for the leader to develop and maintain a reputation for technical expertise and strong credibility within the organization to retain expert power.

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Referent power centers around others’ desire to please the leader or a particular follower and is strongly related to charisma. This is reflected in the strong positive feelings and affections, admiration, and loyalty for the leader. People are usually willing to do special favors or carry out requests without question for someone they greatly admire. The strongest form of referent power involves the influence process called personal identification, where the follower will not only follow the request of the leader but comply by mimicking the leader’s behavior and possessing similar attitudes.

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referent power Centers around the desire of others to please the leader or a particular follower. This is reflected in strong positive feelings and affections for the person and is closely related to his or her charisma.

Elements of Position Power Legitimate power derives from an owner’s or senior executive’s formal authority over work activities given to a subordinate leader. The influence processes associated with legitimate power are complex. The emphasis is on a downward flow of formal authority from executives to managers and from owners to executives. Consent of legitimate power is dependent on the led as members of the organization comply with rules and directions from leaders based on a mutual understanding of what benefits are given. The amount of legitimate power is related to the scope of authority, which is normally documented in organizations in the form of charters, contracts, or written job descriptions. Coercive power is based on the leader’s authority over punishments. This power varies by leadership responsibility in any given organization. The coercive power residing in military or government officials is generally greater than in the private sector. The coercive power of subordinates over those of their leaders or supervisors varies from organization to organization based on equal opportunity and grievance policies. In many organizations, the subordinate can indirectly influence the performance evaluation of his or her supervisor, damage the leader’s reputation, initiate grievances, hold demonstrations, or make complaints to higher management, whereas the supervisor may have legitimate authority to exercise coercive powers based on the authority and responsibility delegated to him or her but use power to punish instead of correcting the deficiency. Followers can stage sit-ins, as was done by teachers in the Wisconsin State Capitol when they became dissatisfied with contract negotiations and their loss of power.[23] Or followers can work toward having the leader removed, as in the case of Eastern Oklahoma State College, where faculty initiated a vote of no confidence for the current president.[24] This example demonstrates the effectiveness of people without legitimate authority using their power to influence the removal of a leader. Reward power is the perception by the follower that the leader controls important resources and rewards that the follower wants. Reward power stems in part from formal authority to allocate resources and rewards. Reward power involves not only the leader’s or manager’s actual control of resources and rewards but also the perception that the follower or subordinate has the capacity and willingness to follow through on his or her duties and responsibilities. Reward power can influence the unwilling and cause reluctant employees to perform at a higher level than they normally would. We address rewards further in Chapter 7.

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legitimate power Formal authority over work activities. The influence process is complex, emphasizing a downward flow of authority from owners to executives to managers. Consent of legitimate power is dependent on the led complying with rules and directions.

coercive power This type of leadership is based on the leader’s authority over punishments. This power varies by leadership responsibility in any given organization.

reward power The perception by the follower that the leader controls important resources and rewards desired by the follower. Reward power stems in part from formal authority to allocate resources and rewards. The leader’s reward power is strongly representative of followers’ judgment of the leader’s level of procedural and distributive justice.

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Reward power is a type of power where the leader controls resources and gives rewards to followers. Do you think reward power is an effective use of power by leaders? If so, in all or only some circumstances?

Source: © Shutterstock, Inc.

information power Control of information both laterally and vertically can have an upward and downward power influence. This power involves access to essential information and control over its distribution to others.

ecological power This type of power involves the control over the physical work environment. It can include access or changes in technology and the organization of work activities. Leaders can indirectly influence employees by the use of ecological power. The subtle rearrangement of the situational environment is sometimes called situational engineering or ecological control.

Information power is the control of information, both laterally and vertically, while having both an upward and a downward power influence. This power involves access to essential information and control over its distribution to others. Leaders and managers often have access to information that is not directly available to all their peers and is more than likely not available to subordinates. A leader who controls the flow of information can control the type of information that is distributed to peers, followers, or subordinates. This presents the opportunity for a leader to manage the type and quantity of information flowing to others. Leaders who are overcontrolling can even distort the information to obtain a position of advantage over others. A leader who controls information both laterally and vertically can develop an upward and downward power influence by managing access to essential information and control over its distribution to others. Interpreting information for subordinates can influence subordinates’ perception and attitudes and make them dependent on the leader. In turn, when subordinates receive needed information to make decisions by and through the leader, he or she has an information advantage. Ecological power[25] involves control over the physical environment, technology, and organization of the work and provides an opportunity for indirect influence over other people. The subtle rearrangement of the situational environment is sometimes called situational engineering or ecological control.[26] The workflow design and layout of physical facilities determine which employees interact with each other and who initiates action for whom. An example is a large bakery line where bread dough is mixed in large vats, placed in rising bins, moved to ovens, and removed from bins, and the bread is sliced and packaged for transportation and delivery. The speed of the employees’ work is controlled by each timed movement of machines.

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TABLE 4.2 Sources of Power Type

Definition

Example Leader

Example Employee

Personal Power: Leadership behavior determines the amount of expert and referent power the leader enjoys from followers or subordinates. Referent

Centers around the desire of others to please the leader or a particular follower. This is reflected in strong positive feelings and affections for the person.

A leader imitating another leader’s leadership style. Conducting themselves in a manner that they think the leader would want them to display without being asked.

A follower performing a task without question to gain acceptance from and please the leader. Displaying a form of loyalty and friendship toward the leader.

Expert

The leader possesses task-relevant knowledge of the organization as well as technical and people skills. Expert power will only remain as long as dependence on the leader is maintained based on his or her expertise.

A leader who owns intellectual property rights over the design of a medical procedure or a manufacturer who owns a patent in a new product design.

A leader relies on a subordinate’s expertise in information technology processes or a marketing concept. The leader may be a generalist, while some subordinates are experts in their professional field.

Position Power: Derived from executive leaders and delegated down the chain of command or leadership as best represented in government and military organizations. A leader who holds a legitimate position of authority has more potential to influence power than an employee who is not in a position of legitimate authority. Legitimate

Power coming from formal authority over work activities. The influence processes associated with legitimate power are complex. The emphasis is on a downward flow of authority from executives to managers and from owners to executives.

The CEO of the company is approved by a board of directors. The CEO selects a person to lead a department and provides the requisite authority and responsibility to do so.

An employee acknowledges the selection of a department manager by the CEO. The employee recognizes the legitimate position of the department head and understands that compliance with the rules and regulations and his or her performance will lead to a favorable outcome.

Reward

The perception by the follower that the leader controls important resources and rewards desired by the follower. Reward power stems in part from formal authority to allocate resources and rewards.

The leader possesses the authority to grant an economic incentive, such as a pay increase or bonus, for great performance.

The employee perceives the leader as having authority to grant a monetary reward for attaining superior performance rather than just meeting the standard.

Another example is an award bestowed for performing duties and responsibilities above and beyond what is expected.

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An employee receives a promotion to another position with more authority, responsibility, and pay.

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Type

Definition

Example Leader

Example Employee

Coercive

Coercive power is based on the leader’s authority over punishments. This power varies by leadership responsibility in any given organization.

A leader provides a letter of reprimand to a subordinate indicating what he or she did wrong to earn the admonishment and what he or she needs to do or how he or she needs to behave to ensure success in the future. Often coercive power can begin with a verbal reprimand or counseling, followed by a written reprimand and a deduction in position and pay, and may end in the firing of the employee if he or she is incorrigible. Based on the type of infraction, some punishments require automatic dismissal from the organization.

In some organizations, employees can indirectly influence the performance assessments of their supervisor. Subordinates can also damage the reputation of the leader by not performing to capacity; initiating grievances; sabotaging production or implementation efforts; initiating complaints to higher headquarters; or holding demonstrations.

Information Control of information both laterally and vertically can have an upward and downward power influence. The power involves the access to essential information and control over its distribution to others.

The leader receives the organization’s mission, which includes details to every section in the company as to what tasks and support relationship they have in order to achieve the organization’s long-term strategy.

section.

When subordinates have information the leader needs to make a decision, they have an information advantage.

Ecological

The manager provides the weekly hours and task assignments indicating what time people work and what work activities they are responsible for.

The employee’s designated lunch period has been reached. The employee has the choice to sit in the indoor break room or sit outside at the picnic area. Fifty feet from the building is the smoking area for those who smoke. The employee can also leave the company’s premises.

Ecological power involves the control over the physical environment, technology, and organization of the work and provides an opportunity for indirect influence over other people. The subtle rearrangement of the situational environment is sometimes called situational engineering or ecological control.*

The subordinate receives incomplete information of an operation his or her section is responsible for because he or she only needs to know this The leader takes this information and compartmentalizes it when speaking to detailed information to subordinate sections, only sharing the perform the section’s mission. information that pertains to their

The manager regulates employee behavior by constricting or limiting the use of a piece of technical equipment for a specific purpose.

Source: Based on Carwright, D. (1965). Leadership, influence, and control. In J. G. March (Ed.), Handbook of organizations. Chicago: Rand McNally.

From the definitions we have reviewed concerning the types of personal and position power, we can identify that some power holders have no trace of position power, as they do not hold a legitimate leadership position within an organization and, in this case, have no legitimate authority. They do, however, hold personal power in the form of referent and possibly expert power. Power relationships between the various organizational leaders concern the dyadic relationship between the leader and the led. If leaders of competing departments do not work in a cohesive manner

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and do not use power in an effective manner, they can harm the welfare of many of the organization’s employees. The following subsections discuss whether leadership power is a privilege or right, the leader-follower power gap in the absence of effective leadership, and preventing the abuse of power. This section also provides a view of power from the leader’s and manager’s perspectives. The section ends with a discussion on the politics of power.

Leader Power: A Privilege or Right? Although leadership and the exercise of power are distinguishable activities, they overlap in various ways. An example is that leaders who hold a high rank in an organized system have power stemming from their legitimate position of authority. These leaders are not hesitant to exercise or leverage their position power to influence employee behavior to achieve a desired organization outcome in order to further their personal purpose at the employee’s expense. Fortunately, leaders do use power differently. While some leaders create a leadership climate of coercion and intimidation to gain advantages for themselves, many others use position power as a supplemental gift, acting as if the power given to them is a privilege to foster a harmonious leadership climate that encourages cooperation and a willing effort from followers.

The Leader-to-Follower Power Gap This is the least attractive outcome of the exercise of power in an organization and is often the result of having a leaderless organization or one with an ineffective leader, where the leader-tofollower power gap leads to unseen illegitimate manipulators of power in the organization. This invisible gap between leader and follower can be readily envisioned by the illegitimate power holders in our society pulling the proverbial political strings of those in office. To correct situations, leaders cannot afford to be invisible and just manage the organization; instead, they need to understand the personal and position power they possess.

Preventing the Abuse of Power Organizational stakeholders, including executive board members, employees, and investors, desire to prevent a leader’s abuse of power. Because of this, they are inclined to target unpopular or abusive leaders, often becoming hostile to them, by diminishing their personal power and attempting to strip them of position power. Though leaders are essential to any organization, when corrupt or abusive leaders are held accountable, a superior leader can diminish the power of the legitimate leader and increase the power of the employees by empowering them in order to attain a collaborative balance. Organizations require effective means of holding legitimate and informal leaders accountable, and these leaders can serve as checks and balances for those unseen power brokers that keep an organization from achieving its vision and mission.

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Video Clip 2 This tongue-in-cheek video discusses the abuse of position power by Enron’s CEO.

View in the online reader

Leader and Management Power: Two Views Leaders and managers have different styles of supervision and behavior. The stereotypical manager strives to exert control over subordinates solely through a transactional leadership style. These types of managers set rules, tell others what to do, and react to nonconformity and rulebreaking swiftly to maintain organizational efficiency and effectiveness. Leaders, on the other hand, strive to exert influence over followers by persuading them that their idea is the best idea to accomplish the task at hand. Leaders attempt to excite their followers. In order to do this, leaders behave in a proactive manner by determining potential obstacles and outcomes. Leaders may break rules or encourage followers to break rules in order to reach the common goal. It is necessary for leaders to exercise power and for organizations and societies to grant power to people to achieve specific purposes. Because of this, leaders are often preoccupied with power and need to define the types and levels of power they have at their disposal. Power is directly related to relationship building and has two parts.[27] One part of leadership power is held over followers or subordinates and represents the degree to which employees are dependent on the leader for something he or she has that the employee cannot obtain from other sources. The second part is the employees’ power over the leader, which is the degree to which the leader is dependent on the employees for something that they have and that the leader cannot readily obtain from other sources. A balanced dyadic power relationship is one in which leader and led are more or less equally dependent on each other; an imbalanced power relationship occurs when either the leader or the follower is more dependent on the other. In case of a possible power imbalance, it is the responsibility of the leader to ensure an appropriate dyadic balance between the leader and led is attained, as doing so benefits the overall organizational climate.

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The Politics of Power Power politics means being very clear about where the formal organizational position power resides and how it is used. The use of political power is part of influence tactics. An example is when legitimate power (a subpower to position power) is intended to influence organizational decisions to gain benefits for a particular individual or group of people over others. One political power tactic involves an attempt to influence how important decisions are made and who makes them. An example would be the introduction of your items of discussion into the agenda to influence how a project will be accomplished or what projects are decided on. In this sense, you ensure your decision-making criteria are addressed where they benefit your area of interest or need. Political tactics can also include a more sinister or darker agenda where you are defending your position against opponents to your views with the aim of silencing or marginalizing your opposition. In other words, politics occur when people choose their words and actions based on how they want others to react rather than based on what they really think.[28] Leadership is the essential component of any organization, as without a leader the organization does not have an efficient and effective way to provide direction, guidance, and purpose to subordinate teams. Leadership should be considered a privilege and not a right, as by believing it is a right, leaders may increase the leader-follower gap and become too distant from their employees. Being too distant from followers or subordinates can lead to abuse in the position power leaders or managers have. It is also important for leaders to understand the political power that roles and responsibilities have in an organization. In most cases, leaders have management functions, and all managers have leadership responsibilities; understanding how personal and position power relate to each role is critical to being an effective manager/leader or leader/manager.

Key Takeaways • Personal power includes expert and legitimate power as subcategories. Position power includes legitimate, reward, coercive, information, and ecological power. • Personal power is derived from followers and is based on the leaders’ behaviors in terms of the amount of referent and expert power the leader possesses. • Position power is derived from executive leaders, and it is delegated down the chain of command as best represented in government and military organizations. A leader who holds a legitimate position of authority has more potential to influence than an employee who is not in a position of legitimate authority. • Power lodges itself somewhere in the organization, and if the leader is not aware of what or how to use his or her personal and position power, followers will surely take the opportunity to leverage and fill any power gap the leader leaves. Because of a misunderstanding regarding what personal and position power leaders possess and how to use it, there is often no clear succession of position power or order among organizations. This leaves us with the issue that “employees” (followers or subordinates) will take power away from an individual or group they dislike and inadvertently empower other people they like more. In worst-case scenarios, power may lodge in an organization that does not have a legitimate leader. When this occurs, the organization may become less efficient and effective, as there is no formal chain of leadership from executive to the lowest legitimate power level of the organization to communicate essential information. • The source of power for a manager is different from the source of power for a leader. Managers derive power from the formal authority vested in them. Managers often possess the ability to negatively impact the lives of subordinates through schedule changes, hour reductions, and various punishments up to, and including, termination. Managers make decisions and expect subordinates to follow the rules and ask few questions. When things go right, managers take all the credit. • Leaders, by contrast, derive power from the charm and allure they possess. Leaders are able to influence others through their charismatic style; followers naturally seek to assist and

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power politics Being very clear about where the formal organizational position power resides and how it is used.

political power Political power occurs when people choose their words and actions based on influencing how they want others to react rather than based on what they really think. Additionally, political power can derive from successful competition for perceived limited resources.

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support these types of leaders. Although they may hold no formal authority over followers, leaders, nonetheless, wield significant power. By appealing to the emotions of followers, leaders excite passion and devotion in those whom they lead. • Power is directly related to relationship building and has two parts.[29] One part of leadership power is held over the follower or subordinate, representing the degree to which the employee is dependent on the leader for something he or she has that the employee cannot obtain from other sources. The second part is the employee’s power over the leader, which is the degree the leader is dependent on the employee for something he or she has that the leader wants and cannot readily obtain from other sources. • Political power occurs when people choose their words and actions based on how they want others to react rather than based on what they really think.[30]

Exercises 1. Identify whether the following situations apply to personal or position power: a. An executive organizational leader assigned Danielle to a management position. She reviews her job description to determine the level of authority and the responsibilities associated with the position. b. Matt provides a great behavioral example to his followers. They especially trust his knowledge and willingness to coach them on topics to make them more effective and efficient in their jobs. 2. What elements of power would you use in the following situations? a. Grant performs a task without question to gain acceptance from and to please the leader. He is especially loyal to his supervisor and tries to emulate his behavior. b. Bev arrives to work to her designated cubicle along with her colleagues. There are designated lavatories for men and women, a break room, and a staff meeting room. The floor manager has a private office to perform his or her work. Policy dictates that work computers must not be used for personal business. The posted hours of work are from 9 a.m. to 5 p.m. Monday through Friday. A schedule of work activities and assignments for the work week are posted on the bulletin board in the common area. c. A supervisor relies on Reid to perform a crucial task for the organization that only he knows how to do. Without Reid’s knowledge, the supervisor cannot decide on the next months’ work activities. d. Claire receives incomplete information concerning the company’s strategic direction. She asks the supervisor for more information, but he states that she does not need to know and has enough facts to complete her section’s work. e. Claire has critical knowledge passed to her from her subordinates that can affect the supervisors’ upcoming decision on formulating the quarterly work plan. She decides to not pass it on to the supervisor at the moment. f. A group of employees does not like Bob, as he often uses coercive influence tactics to meet his personal short-term goals. They decide to only do the minimum level of work necessary to meet the company quota. If Bob persists in coercing them to work harder, they are planning to write a letter to Bob’s supervisor. If this does not work, they are considering a walk-out and will explore joining a union. g. Andrew perceives his supervisor as having the authority to grant a bonus for attaining superior results that will drive sales over the expected outcome. h. Based on Andrew’s consistent above-average performance, the supervisor is going to recommend him for a sales manager position. i. Caroline acknowledges Sam as the new department leader, as he was selected by the owner of the store. She has agreed to comply with the rules and regulations of the store manager and adhere to the directions Sam provides her for her day-to-day employment activities.

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Chapter 4

Building Teams, Adaptive and Situational Leadership, and Leadership Power

4.4 Chapter Summary and Case Chapter Summary • The team you are leading may be part of a larger formally structured company team or a more loosely defined, unstructured volunteer team. In every case, the teams will be unique to the mission they are charged to execute, with the one leadership constant involving the formation, enrichment, and sustainment of the team effort. • The leadership climate is directly attributable to the leader’s values, expertise, and behaviors. Leaders shape the team climate of the organization, no matter the size of any particular team. It is recommended that the leader assess the climate within ninety days of building the team. • Effective organizations require teamwork, which is based on individual trust and cohesion laterally and vertically within the organization. The mix of skills will dictate the need to keep versatility in planning functions. Team building is an ongoing process, as forming the team may be an ongoing annual process in certain organizations. One of the early challenges facing leaders who experience high turnover is keeping a cohesive team together once it is formed. Only then can you meet the enrichment and sustainment stages of moving the team forward. • Adaptability involves leaders’ ability to recognize changes in the organization’s environment identified in the area of operation/responsibility the organization occupies in performing their mission and the area of influence the organization is concerned about for future opportunities or threats. • Complex adaptive systems are used to explain how emergent processes can facilitate adaption by organizations to turbulent environments. Complexity theory involves interacting units that are dynamic (changing) and adaptive, and the complex pattern of behaviors and structures that emerge are usually unique and difficult to predict from a description of the involved units. • Personal power includes expert and legitimate power. Position power includes legitimate, reward, coercive, information, and ecological power. • Personal power is derived from followers and is based on the leader’s or a particular follower’s behaviors in terms of the amount of referent and expert power he or she possesses. • Position power is derived from executive leaders, and it is delegated down the chain of command as best represented in government and military organizations. A leader who holds a legitimate position of authority has more potential to influence than an employee who is not in a position of legitimate authority. • Power lodges itself somewhere in the organization, and if the leader is unaware of what or how to use his or her personal and position power, the followers will surely take the opportunity to leverage and fill any power gap the leader leaves. Because of a misunderstanding regarding what personal and position power leaders possess and how to use it, there is often no clear succession of position power or order among organizations. This leaves us with the issue that “employees” (followers or subordinates) will take power away from an individual or group they dislike and inadvertently empower other people they like more. In worst-case scenarios, power may lodge in an organization that does not have a legitimate leader. When this occurs, the organization may become less efficient and effective, as there is no formal chain of leadership from executive to the lowest legitimate power level of the organization to communicate essential information. • The formation stage of team building identifies the kind of leader you are. It involves receiving, orienting, and sharing the values and standards of the company; sharing the vision, mission, and operational intent; providing the standing operating procedures the team uses; and highlighting the organizational history. Each of these areas plays a part in achieving employee buy-in to the team goals and organizational vision and mission. This stage is crucial to making the team member feel fully accepted. Good sponsorship of a

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new team member is important and makes a difference between success or failure for the new arrival and the entire team. • Three areas of the enrichment stage include the leader’s actions, training, and the team’s development during the conduct of operations. Leaders’ actions include learning how to trust by listening, following up on what they hear, establishing clear lines of authority, and setting standards. Taking care of team members is essential during this stage. • During the sustainment stage, employees identify with “their team.” They develop ownership, take great pride in the team’s accomplishments, and continually work for the team to succeed. At this stage, employees will do what is necessary without being directed to do so. Every new mission gives the leader a chance to strengthen the bonds and challenge the team to reach for new heights of accomplishment. The leader develops his employees because he or she knows they will be tomorrow’s team leaders. • Developing an adaptive culture represents a leadership belief in actively monitoring the area of operation/responsibility and influence for emerging opportunities and threats and then adapting to them in a manner that solves the unique environmental situation that presents itself to the leader. • Being an adaptive leader includes the ability to recognize changes in the environment, identify the critical elements of the situation presented, and make the appropriate decision to mitigate the situation presented. Deciding to adapt is as important as determining how to adapt. • Leaders must be cognizant of and adapt to evolving threats to the organization and the people they serve, take advantage of innovations (technological, procedural, etc.), and adjust to societal changes. • The source of power for a manager is different from the source of power for a leader. Managers derive power from the formal authority vested in them. Managers often possess the ability to negatively impact the lives of subordinates through schedule changes, hour reductions, and various punishments up to, and including, termination. Managers make decisions and expect subordinates to follow the rules and ask few questions. When things go right, managers take all the credit. • Leaders, by contrast, derive power from the charm and allure they possess. Leaders are able to influence others through their charismatic style; followers naturally seek to assist and support these types of leaders. Although they may hold no formal authority over followers, leaders nonetheless wield significant power. By appealing to the emotions of followers, leaders excite passion and devotion in those whom they lead. • Power is directly related to relationship building and has two parts.[31] One part of leadership power is held over the follower or subordinate, representing the degree to which the employee is dependent on the leader for something he or she has that the employee cannot obtain from other sources. The second part is the employee’s power over the leader, which is the degree the leader is dependent on the employee for something he or she has that the leader wants and cannot readily obtain from other sources. • Political power occurs when people choose their words and actions based on how they want others to react rather than based on what they really think.[32]

Chapter Case Case Study: Team Building, Adaptive Leadership, and the Use of Personal and Position Power Reid was having a tough week. He had just been promoted to lead the department in a different store. He had new responsibilities, new subordinate section leaders, and new employees. Then, on the third day of his arrival, he was informed by the store manager that the district manager was coming to conduct a big inspection concerning his department’s adherence to the store layout, inventories, and policies concerning retail selling and record keeping, as well as reviewing his team-building plan and the ninety-day review he would later receive by the store and district manager. A quick check of the records showed that his section leaders were not following standard operating procedures for sales, inventories, or for record keeping. The records were sloppy

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Chapter 4

Building Teams, Adaptive and Situational Leadership, and Leadership Power

or incomplete, and a lot of the scheduled sales training and inventories had not been conducted. On top of these issues, he thought that a male section leader, who was close to the departed department head, did not like him. The employees reporting to this section leader appeared to fear him. After receiving the store manager’s guidance about the upcoming inspection and having begun the formation stage of his team-building protocol, Reid briefed his section leaders on the requirements and wanted to hear their assessment of each section and their recommended plans on how they would get ready for the inspection. He soon recognized that due to the state of the department, he would have people work late, and to do this, he needed the store manager’s approval and the buy-in of the department’s employees. Reid could have complained about his predecessor, but he thought it best to just stick to the facts and talk about what he had found out about the department’s lack of adherence to store and company standards. He suspected the abrasive section leader was the favorite of the departed department head and for all he knew may have been complicit in helping lead the department's leadership team to its current state. Reid wanted to look forward and not backward in building the new team with him at the head. The abrasive section leader asked, “You’re going to work late.” After checking his plan, Reid replied, “Yes, I think it is necessary to meet the standards set by the store manager and the company.” The abrasive section leader made a sound that could have meant “OK,” or it could have meant, “You’re being foolish and wasting our time,” but he was not sure. The next day, Reid informed the section leaders first and then addressed all employees on what they would have to accomplish before the inspection took place. One of the employees stated that the old department head would have just fudged the paperwork to get the department through. Reid thought about this and wondered if the section leaders were complicit in these actions as well. But he told the department employees to do the work correctly and that he did not accept fudging of paperwork, knowing that this would not set the correct leadership climate for the department. Reid instead informed the employees not to take shortcuts and do the work in accordance with the standing operating procedures and standards set by the district and store managers. He further explained that they would do the best they could, and if they did not pass, they would do better the next time. Reid said that he would accept responsibility for the department's deficiencies. Reid then asked the department employees for their thoughts on how to get ready. He listened to their ideas and offered some of his own. One employee suggested that they could outperform other departments by taking shortcuts like his predecessor did. Reid did not want to bad-mouth his predecessor, as he was responsible now. He dismissed the idea by stating it would be nice to be the best department, but they were not going to cheat to get ahead; they would have to earn the distinction by taking the appropriate actions. The night before the inspection, some members of the department worked longer hours with compensation; some volunteered to work a few hours later than usual the night before the inspection. At one point, Reid found an employee napping in the store’s break room. Reid asked him, “Do you want to finish up and go home?” The employee stated with surprise, “I did not think you’d still be here!” “Where else do you think I would be?” he asked. The next day, the store manager asked her if she thought they would pass the inspection. “Not a chance,” he replied. Later, when the inspector was going over documents, he asked if his employees could follow along. “I want them to see how to do a thorough inspection,” he told the inspector. As the employees followed the inspector around and learned how to look closely at the process and documents, one of them commented that the department had never allowed them to be around for any inspection up to this point. Later, when the store manager went over the results of the inspection with Reid and his section leaders, he looked up at Reid as he read the failing score. Reid was about to state, “We will try harder next time,” but decided not to say anything. Instead, the abrasive section leader spoke up

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and stated, “This is the first time the department failed an inspection, but we are already better off than we were the day before yesterday, failing grade and all, because of the team-building steps we have taken together.” 1. What team-building steps did Reid initiate as the new department leader facing an inspection shortly after taking his leadership role? 2. How did you see Reid adapt to his new role and the situation he faced? How would you use personal and position power in this case study? 3. Facing a ninety-day review by the store and district manager, what steps would you take in conducting a review of your department leadership and organization climate? What teambuilding and assessment plan would you develop and share with your leadership?

Endnotes 1. Hackman, R. J. (2002). Leading teams: Setting the stage for great performances. Boston: Harvard Business School Press. 2. US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 8-16–8-18. Retrieved August 19, 2013, from http://usacac.army.mil/cac2/Repository/ Materials/fm6-22.pdf 3. Grabianowski, E. (n.d.). How the American Red Cross works. How Stuff Works. Retrieved from http://money.howstuffworks.com/american-redcross3.htm 4. Character. (n.d.). Merriam-Webster’s online dictionary. Retrieved from http://www.merriam-webster.com/dictionary/character. 5. US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 8-16–8-18. Retrieved from http://usacac.army.mil/cac2/Repository/Materials/fm6-22. pdf 6. US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 8-16–8-18. Retrieved from http://usacac.army.mil/cac2/Repository/Materials/fm6-22. pdf 7. Bolman, L., & Deal, T. (2003). Reframing organizations: Artistry, choice, and leadership (3rd ed.). San Francisco, CA: Jossey-Bass. Bolman and Deal use a four-frame approach to evaluate organizations: Structural (p. 41), Human Resource (p. 111), Political (p. 181), and Symbolic (p. 239). 8. US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, p. 8-15. Retrieved from http://usacac.army.mil/cac2/Repository/Materials/fm6-22. pdf 9. US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 8-17–8-18. Retrieved from http://usacac.army.mil/cac2/Repository/Materials/fm6-22. pdf 10. US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 8-16–8-18. Retrieved from http://usacac.army.mil/cac2/Repository/Materials/fm6-22. pdf 11. Basadur, M. (2004). Leading others to think innovatively together: Creative leadership. Leadership Quarterly, 15(1), pp. 103–121. 12. US Army. (1986, October). Unit climate profile commander’s handbook (pamphlet 600–69). Washington, DC: Department of the Army, pp. 1–6. Retrieved from http://www.aschq.army.mil/supportingdocs/p600_69.pdf 13. Marion, R. T., & Uhl-Bien, M. (2001). Leadership in complex organization. Leadership Quarterly, 12(4), pp. 389–418. 14. Baek-Kyoo, J., & Shim, J. H. (2010). Psychological empowerment and organizational commitment: The moderating effect of organizational learning culture. Human Resources Development International, 12(4), pp. 425–441.

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15. US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 10-3–10-5. Retrieved August 19, 2013, from http://usacac.army.mil/cac2/Repository/ Materials/fm6-22.pdf 16. US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 10-3–10-5. Retrieved from http://usacac.army.mil/cac2/Repository/Materials/fm6-22. pdf 17. US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 10-3–10-5. Retrieved from http://usacac.army.mil/cac2/Repository/Materials/fm6-22. pdf 18. US Army. (2006, October). Army leadership: Competent, confident, and agile (FM 6-22). Washington, DC: Department of the Army, pp. 10-16–10-17. Retrieved from http://usacac.army.mil/cac2/Repository/ Materials/fm6-22.pdf 19. Bass, B. M. (1990). Handbook of leadership. New York: Free Press, p. 228. 20. Bass, B. M. (1990). Handbook of leadership. New York: Free Press, p. 228. 21. NASA.gov. (n.d.). Neil A. Armstrong. Retrieved from http://www.nasa.gov/ centers/glenn/about/bios/neilabio.html 22. BrainQuote. (n.d.). Lord Acton quotes. Retrieved August 19, 2013, from http://www.brainyquote.com/quotes/authors/l/lord_acton.html 23. Emergency Email and Wireless Network. (n.d.). Homeland: Wisconsin: Teachers strike; governor defiant and dictatorial. Retrieved from http:// www.emergencyemail.org//newsemergency/anmviewer.asp?a=895&z=1 24. Dishman, D. (2017, June). EOSC faculty vote no-confidence in college president. McAlester News-Capital. Accessed from http://www.mcalesternews.com/news/eosc-faculty-vote-no-confidence-in-college-president/article_de98b510-4648-11e7-8fd9-cb8a32eb7a23.html 25. The following citation refers to the key-term definition. Carwright, D. (1965). Leadership, influence, and control. In J. G. March (Ed.), Handbook of organizations. Chicago: Rand McNally. 26. Carwright, D. (1965). Leadership, influence, and control. In J. G. March (Ed.), Handbook of organizations. Chicago: Rand McNally. 27. Hackman, R. J. (2002). Leading teams: Setting the stage for great performances. Boston: Harvard Business School Press, pp. 154–155. 28. Lencioni, P. (2002). The five dysfunctions of a team: A leadership fable. San Francisco, CA: Jossey-Bass, p. 88. 29. Hackman, R. J. (2002). Leading teams: Setting the stage for great performances. Boston: Harvard Business School Press, pp. 154–155. 30. Lencioni, P. (2002). The five dysfunctions of a team: A leadership fable. San Francisco, CA: Jossey-Bass, p. 88. 31. Hackman, R. J. (2002). Leading teams: Setting the stage for great performances. Boston: Harvard Business School Press, pp. 154–155. 32. Lencioni, P. (2002). The five dysfunctions of a team: A leadership fable. San Francisco, CA: Jossey-Bass, p. 88.

CHAPTER 5

The Leader’s Responsibility for Setting Organizational Direction If a man takes no thought about what is distant, he will find sorrow near at hand. — Confucius A man to carry on a successful business must have imagination. He must see things as in a vision, a dream of the whole thing. — Charles M. Schwab

5.1 Communicating a Direction It was early in the morning, and Danielle, the chief executive officer, stood up to face the executive staff and managers to communicate her company’s vision. She had done this before, but each year there were staff member and management leadership changes, and she knew the vision statement would provide an opportunity to renew the spirit of the organization. She also thought how quickly the past year came and went and was thankful for starting her thought process early on by developing her “revised” vision last quarter. She thought of how quickly environmental influencers such as government, nature, and the business market changed, reflecting on the times her professors and mentors taught her how to adapt, use initiative, use judgment, critically analyze staff products, and, most importantly, be flexible to work with her executive team and managers to make the necessary short-term adaptive directional changes to reach her desired organizational end-state vision. The greatest lesson was that once her executives’ and the staff’s organizational planning process identified the mission and goals to meet the operational reality of the day-to-day business, her vision synthesized and complemented the mission as well as the overarching goals that would sustain the organization’s movement forward. Experience taught her that the only constant in an organization is change, and it is the enduring statements of the mission and vision that focus the organization to stay on course in the long term. She knew her managers did not have the time to think ahead and understand the organization’s far-reaching potential. They were too busy running the organization’s day-to-day activities and getting the most out of their staff. She understood her responsibility to keep managers and employees participating in a sustainable and attainable strategic and operational direction by having the staff and other stakeholders within the company participate in the vision, mission, and intent statement development. She also thought of how crucial it was for her to personally espouse the vision, as this solidified the organization’s direction. She knew to continually hammer the lesson home by frequently addressing the company mission and overarching goals at small company gatherings or directly in employee work areas. In the end, she knew the process of developing a vision, mission, and intent begins with a bottom-up review, starting with her leadership guidance to the executive management team and

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employees. Only through the use of a formal staff planning process will the vision, mission, and the overarching goals become known, understood, and accepted by the organization’s employees.

5.2 Introduction to Vision, Mission, and Overarching-Goal (Intent) Statements Learning Objectives 1. Discuss the nature and role of vision. 2. Discuss the vision statement development process. 3. Discuss how a clear and well-communicated vision statement can benefit employee or subordinate activities.

FIGURE 5.1 Introduction to Vision, Mission, and Intent Statements

mission statement An enduring statement of purpose that distinguishes one business from other similar firms. A mission statement identifies the scope of a firm’s operations in terms of its product and the market.

vision statement A statement of enduring purpose distinguishing one organization from another with a similar purpose. It is considered the first step in strategic planning and precedes the development of a mission statement.

Figure 5.1 indicates a distinct process of leadership decision making where the vision statement precedes development of the organization’s mission statement and the leader’s operational intent. The mission statement is a statement of purpose that distinguishes one business from another. It defines the scope of a firm’s operations and their overarching purpose for being in business. The vision statement is the enduring purpose distinguishing one organization from another with a similar purpose and is the way the leader sees the long-term organization end state or outcome from an operations or market perspective. Chapter 5 is organized to discuss the process of developing each of these critical leadership communication statements, as each influences the stakeholders that the leader would like to motivate to develop, produce, and sell their product or service. Leaders often struggle to understand what a vision, mission, and the overarching operational intent statements contain and how to develop them for their organization. It is the leader’s responsibility to find the common thread that links organizational requirements to the employees who carry out their work demands. Employees may read the mission but fail to comprehend the farreaching vision and overarching leader’s intent statement. For these reasons, the chapter’s purpose is to teach and coach leaders on the important concepts and processes necessary to develop meaningful vision, mission, and operational intent statements that influence the actions of the organization’s stakeholders for personal and organizational success.

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Chapter 5

The Leader’s Responsibility for Setting Organizational Direction

The method used to develop the mission, vision, and intent statements is extremely important. The aim of the process begins with the leader, as it is his or her responsibility alone to ensure they are known and understood by the organization’s stakeholders. Organizational stakeholders are considered to be staff members, followers/employees, investors, and, to some degree, the customers who receive or use the service or product. The leader may have an executive team, a primary staff, and employees to assist in the development process of these key statements, yet it is through the leader’s use of leadership art that the vision is crafted—as the vision identifies the company’s long-term strategic objective or goal; the purpose of the mission statement is to direct followers on how to attain specified and implied tasks with the purpose of attaining the vision, and the operational intent identifies the approach or concept to inform organizational stakeholders on the leader’s expectation of supporting the entire effort. Why are the vision, mission, and intent statements important? The most important reason is that employees need to know and understand what task(s) the organization is performing and why the company is moving in a particular short- or long-term direction.[1] If the leader’s vision, mission, and intent statements influence the intrinsic motivation of the management teams and employees, the organization may receive commitment from all stakeholders to achieve them. When stakeholders understand the linkages between their own intrinsic motivation in the form of achieving personal goals and the extrinsic motivators represented by the organization, they combine the two to help attain the organization’s vision, mission, and intent. This allows for a better understanding of how the employees’ compensation is linked to their organizational performance and motivates them to attain personal gratification from being part of a successful venture. It is through the leader’s vision, mission, and intent development process that individual employees’ short- and long-term life goals become surprisingly clear and congruent to the work in achieving organizational goals. For example, Starbucks’s mission is simple and easy for employees to implement:[2] “to inspire and nurture the human spirit—one person, one cup and one neighborhood at a time.” This statement gives employees (followers) a sense of how their efforts contribute to the organization, other employees, and customers. Leaders who understand how to influence the extrinsic compensation and intrinsic motivation linkage with employees understand the importance of organization and employee congruence, and the vision, mission, and intent statements help to nurture this outcome.

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stakeholders Executive leaders, staff members, employees, investors, and to some degree the customers who receive or use the organization’s service or product. Executives are not the only stakeholders to consult when formulating a vision. It is also important to understand the values and aspirations of other organizational members.

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Through use of employee involvement, the text and meaning of the vision statement should be long-term focused.

Source: © Thinkstock

leader’s intent Defines the leader’s concept of operation from the beginning of an operational mission to its accomplishment and how the organization will be postured before the next mission.

Effectively communicating clear vision, mission, and intent statements can influence stakeholders to become attached to the organization. Employees who believe in the organization’s vision and mission can influence creative and innovative thought and actions among team members to do their part in achieving the organization’s desired end state. Defining the leader’s intent helps employees to understand the leader’s concept of the operation from the preparation phase (before), to the execution phase (during), to how the organization will be postured for future missions (after). Now that we have discussed the importance of using the vision, mission, and intent statements and how they are related to stakeholder and organization success, let’s discuss the development process for these statements.

Key Takeaways • Stakeholders need to know and understand how and why the organization is moving in a short- or long-term direction. If the vision, mission, and intent influence the intrinsic motivation of the stakeholders (including the executive leadership, management teams, employees, and in some cases investors and customers), the organization might receive commitment to achieve the leadership direction of the organization. • The method used to develop the mission, vision, and goal statement is extremely important and is the leader’s responsibility. The process begins with the leader, as it is her or his responsibility alone to ensure that, once completed, these statements are known and understood to the organization’s stakeholders and are executed. • Communicating sound vision, mission, and intent statements influence employees’ attachment to an organization to the point where individual employee performance can influence creative and innovative thoughts and actions.

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Chapter 5

The Leader’s Responsibility for Setting Organizational Direction

Exercises 1. Facilitate a discussion of why vision, mission, and intent statements are important to an organization’s stakeholders. 2. Develop a list of five to ten ways stakeholders can help the leader develop vision, mission, and intent statements. 3. Identify key stakeholders who are involved in the vision development process.

5.3 Vision Statement Learning Objectives 1. Describe the nature and role of vision. 2. Describe the vision statement development process. 3. Discuss how a clear and well-communicated vision statement can benefit subordinate activities.

FIGURE 5.2 Developing the Vision Statement

This section concerns a crucial area a leader is singularly responsible for: developing and communicating the end-state vision the leader wants the organization to attain. The leader has to know the organization functions and must analyze the organization in the context of the following: • Marketing • Operations • Human resources • Information technology • Logistics • Research and development • Sales Leaders should familiarize themselves with the sociopolitical and industry economic areas using a scientific and technical approach and also understand the culture of the organization stakeholders (executives, management team, employees, investors, and customers). The leader takes this information and conceptualizes it into his or her vision statement.

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The vision statement is not created in one sitting; it often results from a lengthy process of collaboration with key company stakeholders. Exploring, collaborating, researching, refining, and brainstorming ideas begins the process of influencing followers to fix their attention on where the leader wants to take them. Following this process empowers employees to unleash their potential and, more important, nurtures personal initiative in the absence of the leader. Yet a leader’s vision also places or identifies limitations and constraints on the follower to ensure they remain within the strategic and operational intent to achieve efficiency and effectiveness while pursuing the endstate vision of the organization. We begin by understanding what Peter M. Singe, in his book The Fifth Discipline, expresses as the true outcome of using a vision statement. That is, the concept of a shared vision is not just an idea but one held in high esteem by all employees. A leader may inspire the idea of a vision and, if compelling enough, it not only is accepted by one person but moves beyond a state of abstraction and transforms into a powerful shared vision.[3]

The Nature and Role of a Vision Statement Experience as an entry-level leader, midlevel manager, and ending as a seasoned leader of an organization teaches us that a clearly communicated vision provides the necessary direction, guidance, and motivation that sets a company’s human capital in motion. John W. Gardner, in his book On Leadership, states, “The consideration leaders must never forget is that the key to renewal is the release of human energy and talent.”[4] Warren Bennis adds to the theme of human capital in his book On Becoming a Leader when he states, “Leaders manage the dream. All leaders have the capacity to create a compelling vision, one that takes people to a new place and then translates that vision to reality.”[5] These two authors support the notion that it is the head of the organization who is responsible for developing and then effectively articulating the organization’s vision statement, and, once delivered, it will place into motion the human capital necessary to reach a desired end state through the use of an executable strategic and operational plan that achieves the company’s overarching goals. A leader’s personal involvement in developing the vision statement helps employees understand what they are expected to do, why they are doing it, and how they are going to reach another year of successful goal attainment. In effect, the end result of actualizing and achieving the vision takes care of employees and the organization they serve while attaining customer trust and loyalty to the product or service they are engaged in providing. The concept of developing a vision then is part of earning the trust of employees and knowing the direction and how far the employees need to move to be successful. An employee will follow a leader who knows best what ought to be done and can communicate his or her intent in a practical and meaningful way to each member of the organization. To accomplish this, the leader needs to inspire the spirit of employees to follow him or her and must articulate a credible understanding of the organization’s vision.[6] As it is important to understand the necessity of a vision to communicating a desired end state, it is also important to understand the limits of using a vision, as it alone is insufficient to attain the overarching goals of an organization. John Woodmansee Jr., a retired army general,[7] states a vision only provides a means to an end, and it is the actualization of effort that is the real goal. In this sense, the vision may provide differentiation between competing organizations and formulation of thought, but without action and achievement, it is all for naught.[8]

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The Vision Statement Development Process In Fred R. David’s book, Strategic Management: Concept and Cases, he states that a vision statement should answer the basic question for an organization: “What do we want to become?”[9] Development of the vision statement precedes development of the mission statement, as it focuses on reaching a desired end state. Once the vision statement is understood, the mission statement is developed to define the task and purpose the organization will take to achieve the vision. The vision statement should be short (preferably a few sentences in one paragraph, and at times one sentence), and though it is the leader’s singular responsibility to author it, as many managers as possible should have input into developing the vision statement.[10]

Vision Statement Components What do we want to become? • Write a short one-sentence statement. • Involve as many managers as possible for input. • Remember that it is an enduring statement of purpose distinguishing one organization from another.

Gary Yukl, in his book Leadership in Organizations, provides a way forward to develop a vision statement.[11] Yukl’s process involves the steps found in the “Vision Development Process” sidebar. The key point of any process used to develop the vision statement begins with the leader and his or her use of analytical and conceptual skills. The leader creates the governing idea and uses stakeholder expertise and his or her employees’ organizational values to help shape the vision. The vision must also be wedded to the organization’s strategic objective and be considered by stakeholders to be feasible, attainable, and sustainable for the long-term performance of its objectives. Most important, the vision has to be credible to influence stakeholders, as hope alone will not suffice in building stakeholder optimism. Stakeholders understand that a method, plan, and systems are required to attain it. In turn, leaders must understand that change is constant and that the vision may incrementally evolve as opportunities and threats to the organization become clearer; the leader’s ability to be adaptable, use pragmatic decision making, and lead change at the right time and place will be important. This is why a vision statement must be feasible, attainable, and suitable in its development. The vision must be developed on the basis of a formal strategic and operational interactive planning process and then continually be evaluated as new information becomes available.

Vision Development Process 1. Involving key stakeholders 2. Identifying shared values and ideals 3. Identifying strategic objectives with wide appeal 4. Identifying relevant elements in the old ideology 5. Linking the vision to core competencies and prior achievements 6. Continually assessing and refining the vision

Senge states that a shared vision is anchored in a set of governing ideas built on the larger activity of developing the vision, the purpose of the mission, and the organization’s core values. Figure 5.2 identifies the central concept to his assertion that the vision and organization values need to

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be consistent with each other, as accomplishing this will inspire and motivate employees to accomplish the vision and mission within the context of the organization’s values.[12] The governing ideas in forming a vision answer three critical questions for an organization: the “What?,” or the organization’s task; the “Why?,” or the organization’s purpose; and the “How?,” or the organization’s operational concept. What follows are Senge’s definitions of the governing ideas.[13] The vision is the “What,” becoming a picture of the future the leader seeks to create. The “Why” becomes the purpose for attaining the vision, answering the question of an organization’s existence, and identifies the value of the vision to employees and stakeholders. “How” defines the core values or competencies consistent with the mission by providing a conceptual direction toward achieving the mission.[14]

Vision Statement Variables Anchoring the vision’s governing variables: • Build the vision statement on a larger activity of governing variables that include the following: • Vision = What • Purpose of the mission = How • Organization’s core values = Why • All variables must be consistent with each other. • The purpose is to inspire and motivate groups of employees.

A vision statement is a statement of enduring purpose that distinguishes one organization from another with a similar purpose. The mission statement is considered a declaration of an organization’s reason for existence and, with this in mind, David states that a vision statement answers the question, “What is our business?”[15] The “Sample Vision Statements” sidebar provides examples of vision statements, taken from various company websites, that answer David’s central question. These examples illustrate the unique approach companies use to identify what their business is, the governing variables used, and what companies want to become. No two vision statements in these examples are alike. Some identify a uniqueness of leadership thought representing what the organization’s service or product is in terms of only the vision, others combined vision and mission, and others add value statements. Some statements use a single word, while others are lengthy, yet each represents the leader’s attempt to shape thought, inspire, and motivate the stakeholders to service for his or her organization, as well as build investor confidence, customer trust, and brand loyalty.[16]

Sample Vision Statements Amazon. “We're a company of pioneers. It's our job to make bold bets, and we get our energy from inventing on behalf of customers. Success is measured against the possible, not the probable. For today’s pioneers, that’s exactly why there’s no place on Earth they’d rather build than Amazon. “Our passion for pioneering will drive us to explore narrow passages, and, unavoidably, many will turn out to be blind alleys. But—with a bit of good fortune—there will also be a few that open up into broad avenues.” —Jeff Bezos[17] Barnes & Noble. “Barnes & Noble, Inc. (NYSE:BKS) is the world’s largest bookseller and a leading retailer of content, digital media and educational products. The Company operates 632 Barnes & Noble bookstores in 50 states (as of July 29, 2017), and one of the Web’s premier ecommerce sites, BN.com. Our Nook Digital business offers a lineup of popular NOOK® tablets and eReaders and an expansive collection of digital reading content through the NOOK Store®. “A bookstore is first and foremost a place of aspiration. People enter it to pursue their personal passions, to cultivate their minds, and to nourish their dreams.” —Leonard Riggio, Founder”[18]

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Boeing. “Over the past century, generations of talented Boeing employees helped build the world’s largest aerospace company—and shaped the course of history along the way. The Boeing Vision is an expression of our company’s purpose and values, designed to inspire and focus all employees on a shared future and to reaffirm that, together, we can meet the challenges that lie ahead. Our Vision Purpose and Mission: Connect, Protect, Explore and Inspire the World through Aerospace Innovation Aspiration: Best in Aerospace and Enduring Global Industrial Champion Enterprise Strategy: • Operate as One Boeing • Build Strength on Strength • Sharpen and Accelerate to Win 2025 Goals: • Market Leadership • Top-quartile Performance and Returns • Growth Fueled by Productivity • Design, Manufacturing, Services Excellence • Accelerated Innovation • Global Scale and Depth • Best Team, Talent and Leaders • Top Corporate Citizen Enduring Values At Boeing, we are committed to a set of core values that not only define who we are, but also serve as guideposts to help us become the company we would like to be. And we aspire to live these values every day. • Integrity: We take the high road by practicing the highest ethical standards and honoring our commitments. We take personal responsibility for our own actions. • Quality: We strive for first-time quality and continuous improvement in all that we do to meet or exceed the standards of excellence stakeholders expect of us. • Safety: We value human life and health above all else and take action accordingly to maintain the safety of our workplaces, products and services. We are personally accountable for our own safety and collectively responsible for each other’s safety. In meeting our goals for quality, cost and schedule, we do not compromise safety. • Diversity & Inclusion: We value the skills, strengths and perspectives of our diverse team. We foster a collaborative workplace that engages all employees in finding solutions for our customers that advance our common business objectives. • Trust & Respect: We act with integrity, consistency, and honesty in all that we do. We value a culture of openness and inclusion in which everyone is treated fairly and where everyone has an opportunity to contribute. • Corporate Citizenship: We are a responsible partner, neighbor and citizen to the diverse communities and customers we serve. We promote the health and wellbeing of Boeing people, their families and our communities. We protect the environment. We volunteer and financially support education and other worthy causes. • Stakeholder Success: By operating profitably and with integrity, we provide customers with best-value innovation and a competitive edge in their own markets; enable employees to work in a safe, ethical environment, with a highly attractive and competitive mix of pay and benefits, and the ability to further share in the company's success; reward investors with increasing shareholder value; conduct business lawfully and ethically with our suppliers; and help to strengthen communities around the world. Business Imperative: Deliver Superior Value to Customers, Employees, Shareholders, Communities and Partners”[19]

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Coca-Cola. “Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. • People. Be a great place to work where people are inspired to be the best they can be. • Portfolio. Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs. • Partners. Nurture a winning network of customers and suppliers, together we create mutual, enduring value. • Planet. Be a responsible citizen that makes a difference by helping build and support sustainable communities. • Profit. Maximize long-term return to shareowners while being mindful of our overall responsibilities. • Productivity. Be a highly effective, lean and fast-moving organization.”[20] Costco Corporation. “Code of Ethics” • Obey the law • Take care of our members • Take care of our employees • Respect our suppliers • Reward our shareholders These inform and guide our everyday goal to do the right thing and are the foundation of our business. Costco will continue to adapt as we learn more about our impact and global challenges such as climate change, human rights issues and compromised natural resources. We have adopted the following principles and responsibilities to help us navigate the dynamic and changing future while still striving to do the right thing and remain a low-cost and efficient business operator. Our Sustainability Principles 1. For Costco to thrive, the world needs to thrive. We are committed to doing our part to help. 2. We focus on issues related to our business and to where we can contribute to real, resultsdriven positive impact. 3. We do not have all of the answers, are learning as we go and seek continuous improvement. Sustainability to us is remaining a profitable business while doing the right thing. The following responsibilities will help us sustain our business for the long term as we continue to grow globally. Our Sustainability Responsibilities 1. Take care of our employees. 2. Support the communities where our employees and members live and work. 3. Operate efficiently and in an environmentally responsible manner. 4. Strategically source our merchandise in a sustainable manner.[21] Lockheed Martin Corporation. “Our Vision: Be the global leader in supporting our customers’ missions, strengthening security and advancing scientific discovery.”[22] Mattel Company. “To be the premier Toy Brands—today and tomorrow.” Mattel is a global learning, development and play company that inspires the next generation of kids to shape a brighter tomorrow. Through our portfolio of iconic consumer brands, including American Girl®, Barbie®, Fisher-Price®, Hot Wheels® and Thomas & Friends™, we create systems of play, content and experiences that help kids unlock their full potential. Mattel also creates inspiring and innovative products in collaboration with leading entertainment and technology companies as well as other partners. With a global workforce of approximately 32,000 people, Mattel operates in 40 countries and territories and sells products in more than 150 nations.[23] The Mutual of Omaha Companies. “For every customer ... a financial future imagined, planned and secured.”[24]

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Nike. “NIKE, Inc. fosters a culture of invention. We create products, services and experiences for today’s athlete while solving problems for the next generation.”[25] Target Corporation. “What We Believe In” • Great shopping, anytime, anywhere Whether you're shopping in our stores, online or on a mobile device, we work hard to ensure your experience is always enjoyable and exciting. How do we do it? Friendly service from team members ready to assist with your list; fully stocked products and a speedy checkout process; innovative digital experiences that take your trip to the next level—and that’s just the start. Shop with us and see for yourself. • Celebrating diversity & inclusion As champions of diversity and inclusivity, we're making our business stronger, building our talented team, and working toward a more equal society. • Inclusive of all team members We believe in building a team of people with different backgrounds, distinct experiences and unique points of view—reflecting the communities where we live and work. Read more about our company culture. • Supplier diversity By developing relationships with minority- and women-owned vendors and suppliers, we invest in the success of businesses across the country. Learn more about our efforts to become industry leaders in supplier diversity. • Community engagement We couldn’t do it alone. We’ve teamed up with key organizations to strengthen the diverse needs of the communities we serve. Whether it’s assisting with innovative programs, sponsorships or volunteer opportunities, we’re building stronger communities together with our partners. • Design for all It's our belief that great design is fun, energetic, surprising and smart—and it should be accessible and affordable for everyone. When we talk about our dedication to good design, we don’t just mean how something looks, but also how it satisfies a need, how it simplifies your life, and how it makes you feel. Find out what drives our focus on design and innovation. • Community support & engagement We believe in being an active citizen and good neighbor in our communities. We give our time, talent and business strengths to make our communities strong, healthy and safe. We invest in career development and well-being of our team. And from the start, we’ve given 5 percent of our profit, a commitment that does not waver based on the economic climate. • A fun and rewarding place to work Our team is our greatest asset, so we invest in the growth and development of our team members and leaders, and have fun in all we do. We’re committed to building a team that does the right thing for our communities, our shareholders and, above all, our guests.[26]

Each vision is very unique from the others, as it is focused on the desired successful end state for that specific organization. Defining a vision is a critical part of leadership communication. It not only provides guidance to employees, but its utility is also measured by customers, as it is customers’ purchasing power that resonates with their understanding of the organization’s vision and helps in motivating their participation with the organization—a good example of why Target’s vision of “Expect More, Pay Less” may be very appealing to customers. If customers do not believe in your vision, they are less likely to trust your product or service and be loyal to your organization. Leaders can least afford to have customers move on to a competitor who is able to better communicate a unique and appealing vision. The following section discusses communicating the organization’s vision and highlights the importance of evaluating your vision statement.

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Every organization should have a vision statement that details what the organization wants to become. NASA’s vision statement, released in 2011, states, “To reach for new heights and reveal the unknown so that what we do and learn will benefit all of mankind.”

Source: © Thinkstock

Communicating Your Vision Statement Carl Jung stated, “A dream that is not understood remains a mere occurrence. Understood it becomes a living experience.”[27] It is a leader’s responsibility to reinforce the meaning of a vision by continually communicating the spirit that lies within the statement. Leaders need employees to know and understand their vision statement and take personal ownership in striving to reach it. enrollment The process of becoming part of something by choice.

commitment When an employee not only is enrolled but feels fully responsible for actualizing the vision.

compliance Where followers accept the vision and do what is expected of them.

It is important to evaluate the effects of a vision statement on followers. Senge discusses the importance of spreading the vision using enrollment, commitment, and compliance:[28] • Enrollment is the process of becoming part of something by choice. • Commitment is when you not only are enrolled but feel fully responsible for actualizing the vision. • Compliance is when followers accept the vision and do what is expected of them. The compliant followers support the vision and mission, yet they are not truly enrolled or committed. Senge explains several “possible attitudes toward a vision” including the previously discussed commitment and enrollment, as well as genuine compliance, formal compliance, grudging compliance, noncompliance, and apathy. Genuine compliance indicates that the person sees the value in the vision and commits to it. Formal compliance means that a person understands the benefits of a vision and meets expectations. Grudging compliance occurs when a person does not see the benefit of complying with a vision but does the bare minimum. Noncompliance means that the person will not do what is expected regarding a vision, while apathy means that a person is disinterested and not strongly for, or opposed, to a vision. Leaders must take these different attitudes into account and understand that writing the vision statement is only the beginning—what Senge terms a “first step in building a shared vision.” By itself, the vision statement rarely comes alive or to fruition within the organization, and this is why we now shift our attention to creating a mission statement.[29]

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Video Clip 1 This video discusses why you need vision and mission statements.

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Key Takeaways • It is the leader’s singular responsibility to form a clear vision statement answering in one short sentence “What, Why, and How” the organization will reach an end state. Doing this provides employees with the direction, guidance, and purpose that motivate an organization’s stakeholders or group of followers to achieve an operational task or an overarching strategic concept. • Evaluating the effects of a vision statement on followers is important, as it provides leaders with an answer to how effective stakeholders are influenced in committing their effort to its accomplishment. • The governing ideas in forming a vision answer three critical questions for an organization: the “What?,” or the organization’s task; the “Why?,” or the organization’s purpose; and the “How?,” or the organization’s operational concept.

Exercises 1. Develop a vision statement for the company of your choice that contains the components of Figure 5.1 and Figure 5.2. 2. Based on Senge’s “possible attitudes toward a vision,” analyze three company or corporate vision statements researched on the Internet or from the “Sample Vision Statements” sidebar.

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5.4 Mission Statements Learning Objectives 1. Describe the nature and role of a mission statement. 2. Describe the mission analysis process. 3. Identify components of the mission statement.

FIGURE 5.3 The Nature and Role of Mission Statements

The Nature and Role of Mission Statements Figure 5.3 indicates that the mission statement follows the development of the leader’s vision and precedes the leader’s intent statement. According to John Pearce II and Fred David, “Mission statements are enduring statements of purpose that distinguish one business from other similar firms. A mission statement identifies the scope of a firm’s operations in product and market terms.”[30] For any organization, the mission statement answers the most basic of questions: “what” does our business do, and “why” do we do it? Put another way, what goals (tasks) are we focusing on, and why (purpose) are the organization’s operations in terms of product or service important to accomplish?

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Chapter 5

The Leader’s Responsibility for Setting Organizational Direction

Video Clip 2 Dan Heath talks about how to write a mission statement that doesn’t “suck.”

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A clear mission statement describes the central tasks and prioritizes the organization’s effort. Developing a mission statement provides the future direction of the organization and is a constant reminder to employees about the purpose of their efforts. Whether you are a leader of a large or small organization, it is essential to formalize your mission statement. It is especially necessary for large organizations with several divisions to develop a corporate mission statement, as their lower divisions should analyze the higher headquarter mission statement and then develop their own statement that supports the corporate mission and vision.

Additional Perspectives Future Orientation in Leadership Future orientation refers to the extent to which employees engage in behaviors that reflect the future, such as planning and investing in the future. High future orientation individuals and societies focus on saving now for the future and working toward long-term success. Low future orientation individuals and societies prefer gratification as soon as possible and prefer to spend now rather than save. Assume you have a team with a mix of high future orientation and low future orientation individuals. Your department was given a $20,000 budget for computer upgrades to be spent all at once or carried over into the next three-year budget cycle. Some of your employees want to spend the money now on upgrades for everyone, while others believe you should only upgrade the computers that really need it and save the money for future upgrades next year. How would you handle this conflict that might revolve around cultural dimensions of future orientation? Source: Based on House, R., Javidan, M., & Dorfman, P. (2001). Project GLOBE: An introduction. Applied Psychology: An International Review, 50(4), pp. 489–505.

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Describe the Mission Analysis Process Language Bridging from one profession to another is important if knowledge of a subject area is to expand, such as in mission statement analysis and development. Mission statements are articulated to meet the specific needs of an organization within their industry or profession, using mission statement components and characteristics that fit their needs. The first step, then, is to review several terms which help the mission statement developer analyze and then develop their unique mission statement. These terms will also help the developer in evaluating a competitor’s mission against their own mission. Taking this approach provides the initial direction, guidance, and purpose leaders need in order to create a mission statement that informs organizational stakeholders such as customers, investors, and, most of all, the employees of the vision their organization desires to attain within their industry. METT-T analysis The mission, enemy, troops, terrain, and time analysis (METT-T) analysis provides the initial strategic or operational direction an organization will take in developing their concept of operation.

SWOT analysis An internal and external assessment identifying the strengths, weaknesses, opportunities, and threats a leadership team can use to evaluate criteria that help define “what” task or tasks the company should perform and “why” (purpose) the organization is pursuing them.

Military leaders accomplish this function using the Military Decision-Making Process (MDMP). While the staff are conducting the mission analysis, the organization’s leader analyzes and conceptualizes what is to be done using the art of leadership (experienced judgment and strategic or operational concept development). He or she understands the mission, the enemy (threats or competition to the organization), the terrain (areas of operation and influence within the market niche, or where the group provides their service or develops and sells their product), the troops available (organization resources), and time (where time is always a constraint). In effect, this is what the military calls a Mission, Enemy, Troops, Terrain, and Time analysis, or METT-T analysis, which precedes development of a tactical or operational plan. The military performs this analysis so the leader and the executive management team or staff have a starting point for further analysis. In turn, a private enterprise or government organization other than the military may use a SWOT analysis, where they review the organization’s Strengths, Weaknesses, Opportunities, and Threats to arrive at similar conclusions. See Table 5.1 for more information on what to include in a SWOT analysis. TABLE 5.1 SWOT Analysis Strength

Identify and These include internal strength factors to the company such as; list the leadership, employee skills, finances, marketing, operational functions, organization’s etc. internal strengths.

Weaknesses Identify and list the organization’s internal weaknesses.

Limitations include internal limitations and higher headquarter’s constraints. These are internal factors which an organization is unable to provide or perform. Examples include lack of finances, poor leadership, poor operational functions, inability to develop a large quantity of product in allotted time, etc. These weaknesses provide an indication that the mission task is infeasible, unacceptable, or unsuitable.

Opportunities Identify and list the organization’s external opportunities.

Beyond the immediate areas of operation lie external opportunities for the organization to expand their product and service to; increase production of a product; or conduct broader services. These often lie in the operational area of interest.

Threats

External threats abound based on situation change and/or competition. These are often evident beyond the area of operation and lie in the area of interest. Leaders and their primary staff manage daily operation, but continually scan for threats in the areas of interest.

Identify and list the organization’s external threats.

A comparison of the METT-T and SWOT analyses is provided in Table 5.2.

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TABLE 5.2 METT-T and SWOT Comparison METT-T

SWOT

Mission (if not originating from headquarters, the mission is normally given from a higher department to a subordinate department to perform a specific task or tasks with purpose)

Strengths (organization’s capabilities)

Enemy (competitors’ capabilities)

Weaknesses (internal)

Terrain (areas of operation and interest)

Opportunities (identified goals or tasks used in developing the direction the company can take)

Troops (organizational capability)

Threats (internal and external competitors’ capabilities)

Time (period of time to perform mission)

Strategy: 3–5 years; operations: one fiscal year

Though not perfectly aligned, there is utility in comparing the two methods, as they provide enough similarity for a leader to identify “what tasks or goals” the organization can and should work toward, as well as define the purpose or “why” they should do it. Creating a mission statement involves the use of components and characteristics. A component is an integral part or ingredient of a formula. In this case, mission statements have important components to them, including the Who, What, When, Where and Why of the mission statement. A characteristic, or trait, is instrumental in defining a component.

Components of the Mission Statement So what is considered important when evaluating a mission statement? The following discussion provides the reader with a checklist that can be used to review mission statements and provides components to evaluate the content when performing a mission statement analysis. The checklist follows the core process leaders use to provide clear directions, guidance, and purpose to the organizations members, as well as their customers and investors. An effective mission statement describes the task the organization aims to accomplish (“What” service or product is provided) and purpose (“Why” are they providing the service or product) of the organization. By defining the “Why” of the mission statement, an organization in effect identifies the purpose of the organization as it identifies the relationship of the task to the supporting parts of the organization. Doing so is important since every organization is constrained by time and resources; thus the aim to articulate and focus on a specified task and purpose is necessary. Developing a mission statement provides an identified unique quality the organization desires to bring to a profession or industry. It contains a short statement, allowing the organization to “differentiate” themselves from competitors within an industry or profession. Examples of this are abundant in the medical fields (e.g., Dental, Hospitals, Insurance Companies, etc.), military service components (e.g., Army, Navy, Air Force, Marine, Coast Guard), aeronautics industry (e.g. Boeing, Northrop-Grumman, Air-Bus), travel industries (e.g., Delta vs. Southwest airlines; or Hertz vs. Enterprise), clothing (e.g., JC Penney, Macy’s, etc.), shipping (e.g. rail, truck fleets, maritime fleets, etc.), and even government departments (e.g., Department of Justice, Department of Defense, State Department, etc.). Mission statements allow each specific organization to demonstrate how relevant they are to their market niches: customers who are looking for their product or service, investors who are seeking to capitalize on long-term investments, employees who are looking for a stable and secure work environment, and organizations committed to excellence in their service or product industry.

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Another feature of the mission statement is that it allows a company to identify its own unique contribution locally, regionally, nationally, and even in the larger global market. Organizations accomplish this by identifying the utility of their product or service, as well as a decision to focus on a combination of cost, quantity, and quality of product. Examples abound in types of service and products provided. What precedes the development of a mission statement is the mission analysis that is completed by organization leaders and staff. Mission analysis is performed by the organization’s leader, often assisted by his or her immediate staff, and is the starting point for developing the mission statement. Most importantly, it is crucial in developing the organizational leader’s end-state vision of “What” he or she wants the organization to focus their energy on and “Why” (or the “purpose”) they are pursuing the accomplishment of the specified task (the “What” of the mission statement). The leader should finish with an articulated description of the posture he or she wants the company to achieve as part of accomplishing the mission. Too many leaders are short-sighted and do not envision what lies beyond the immediate horizon of the area of operation into the area of interest, nor do they consider the subsequent mission that is required to achieve their vision. Not providing a clear mission statement can cause the organization’s staff and subordinate departments confusion to the point of misinterpreting the leader’s intent in the end-state. This often results in wasted time and effort. It is important, then, that the mission statement contains an clearly specified task of “What” the leader wants the organization to accomplish during the period of the mission. Implied tasks, tasks within the constraints of time, personnel, material, and skill capabilities within subordinate departments or sections, must also be performed to achieve the mission statements specified task. Implied tasks are identified not by leaders or the mission statement itself, but instead by employees conducting their staffing analysis, within the previously mentioned constraints, to accomplish such tasks within their operational environment. Here is an example: A company has set a specified task to sell a product or service at a particular geographical location. Some of the implied tasks to the mission statement specified task are the employee requirements to develop the product, the packaging of the product, the movement of the product, the sale of the product, etc. Though these tasks are not specifically mentioned in the mission statement, they are implied and require accomplishment to meet the task and purpose of the mission statement. Another key part of completing an analysis is to identify constraints. Leaders often place constraints on employees, such as time and money, to perform a task (these can be considered internal weaknesses). In this way, resources are constrained, and only necessary expenditures of time and other resources such as budgeted costs, people, and other capital are used. All types of categories of information are gathered concerning assigned tasks facts and assumptions. Facts are statements of known data or information regarding the situation that an organization faces, while assumptions are inferences and suppositions made due to the lack of facts about the current or future situation that the organization faces. The organization should identify the risks to organizations based on the lack of facts and based on the assumptions being made.

Writing and Evaluating Mission Statements The mission statement is developed once the mission analysis is completed. A good framework to work from is to first describe the mission as five parts: Who, What (the specified task), When, Where, Why (purpose). These are defined below in Table 5.3.

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TABLE 5.3 Mission Statement Analysis Core Process Component Characteristic

Example

Who

Alerts stakeholders to “Who” is responsible to achieve the task and purpose. “Who” can be the organization in total, or a specified element or department within the organization (dependent on “who” the leadership is focused on).

The Good Shoe Company

What

What involves defining the specified task the organization is operationally focused on. The end-state of the task is related to the “Why” of the mission statement. In short, the task addresses the actions the leader wants achieved. The organizations leader identifies the task through his or her decision-making process.

Sells the best quality sports footwear at a reasonable price point

When

Involves the time span to initiate the task. Specifying the time period the task is to begin and/or be achieved by.

During fiscal year 2018 or on an annual basis

Where

Defining where the task is to be achieved provides the operational boundaries for the specific “task,” or “What” is to be achieved. The leader identifies the limits or boundaries by providing constraints to areas of operation.

In small business locations across the Midwest region

Why

The “Why” of a mission statement is concerned on defining the “purpose” of completing the “task,” or “What” the organization aims to accomplish. The purpose is based on the organization’s relationship to the operational environment, including known stakeholders (customers, investors, employees, and a concern for their competition). In this case, the organization’s desired results or effect in achieving success in their operational climate.

Capture the sports footwear market niche in the Midwest, with future expansion into the Northwest region

A mission statement provides specificity to customers, investors, and organizational employees. Customers, as recipients of goods and services, better understand the motivation of the organization. Investors, as stakeholders, are assured of the organization’s short and long-term task(s) and purpose (the company’s reason for being). Employees understand and are focused on completion of the organization’s mission, including task(s) and purpose. Defining the mission statement characteristics is an important step in the development process and including stakeholders, such as customers, investors, and employees, is key. The characteristics inform employees of the “What” that their mission consists of and “Why” they are focused on it. The characteristics inform the customers’ understanding of the product or services they are to gain for engaging with the organization. Table 5.4 identifies several characteristics to consider while creating a mission statement. An evaluation of each of the components in Table 5.4 should be considered and, if applicable, addressed in the mission statement. TABLE 5.4 Mission Statement Characteristics Characteristic Concepts and Questions to Consider

Explanation

Market niche

Define a specific customer’s base to market and sell products and services.

Specify the customer base products and services are meant for.

Product and services

Define specific products and/or services offered.

What menu of products and services are provided? Include the identification of support services for products.

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Characteristic Concepts and Questions to Consider

Explanation

Equipment and Is the organization focused on technology capital equipment requirement to remain competitive in their market? Is the use of technology prevalent in communicating to the customer, investors, and employees? Is technology used in developing the product and providing service support?

Organizations are concerned with day-to-day business activities as well as their future. To ensure their survival, they must maintain current equipment and use of technology. They must also concern themselves with new technology and replacement of capital investments.

Attaining the mission, expanding the market area, meeting revenue and/or profit goals

Is the company focused on mission accomplishment? Do they indicate opportunities for future expansion of their market niche? Do they indicate revenue and/or profit goals?

Meeting the mission’s task (What) and purpose (Why) is the primary focus for the organization. The specified task needs to be feasible, attainable, and acceptable to meet the mission statement purpose.

Area of operation and interest

Are the geographical areas of operation identified? Are the leaders concerned about the areas of interest?

Areas of operation are the geographical areas where day-to-day operations take place. Areas of interest are those areas outside the area of operation where competitive threats or future opportunities exist for the organization.

Philosophical values and beliefs

What is the organization’s general understanding of values and world view? How do they express their fundamental beliefs?

The philosophy of an organization greatly differs if they are for profit or not-for-profit. Not-for-profit is primarily focused on meeting revenue requirements to attain payroll and other operational requirements. For profit companies focus on revenue for operational and payroll purposes, but also require profit to satisfy investors and meet philanthropic goals.

Concept of self What type of philanthropic activities Does the organization dispense or receive aid and mission to does the organization involve from funds set aside for humanitarian public themselves with? purposes (e.g., a not-for-profit company may receive funds from outside agencies such as donors or government sources)? A for profit company may dedicate a percentage of their profits to philanthropic purposes. Employee health and welfare

What health and welfare benefits does the company provide?

Does the company provide training or continuing education to employees? Do they provide health benefits; provide employee services, or savings accounts?

Mission Statement Examples Amazon. "Earth's most customer-centric company" When Amazon.com launched in 1995, it was with the mission “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” This goal continues today, but Amazon’s customers are worldwide now, and have grown to include millions of Consumers, Sellers, Content Creators, and Developers & Enterprises. Each of these groups has different needs, and we always work to meet those needs, innovating new solutions to make things easier, faster, better, and more cost-effective.[31] Barnes & Noble. "To operate the best omni-channel specialty retail business in America, helping both our customers and booksellers reach their aspirations, while being a credit to the communities we serve."[32]

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Boeing. Purpose and Mission: Connect, Protect, Explore and Inspire the World through Aerospace Innovation Aspiration: Best in Aerospace and Enduring Global Industrial Champion Enterprise Strategy: Operate as One Boeing[33] Coca-Cola. Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. 1. To refresh the world ... 2. To inspire moments of optimism and happiness ... 3. To create value and make a difference.”[34] Costco Corporation. “To continually provide our members with quality goods and services at the lowest possible prices.”[35] Lockheed Martin Corporation. “We solve complex challenges, advance scientific discovery and deliver innovative solutions to help our customers keep people safe.”[36] Mattel Inc. “Our mission is to act with integrity in all that we do, positively impacting our people, our products, and our planet by playing responsibly.”[37] “Mattel’s (the ‘Company’) Board of Directors (the ‘Board’) strives to ensure good corporate management and governance. It selects, monitors, evaluates and supports the Chief Executive Officer and oversees the development and pursuit of corporate policies and strategies. It serves the Company’s stockholders through a strong commitment to the effective and ethical management of the Company in a manner which optimizes sustainable long-term profitability and is responsive to the legitimate interests of other corporate constituencies, such as employees, customers, suppliers and the communities in which the Company operates.”[38] The Mutual of Omaha Companies. “We help our customers protect what they care about and achieve their financial goals.”[39] Nike. “To Bring Inspiration and Innovation to Every Athlete* in the World. *If you have a body you are an athlete.”[40] Target Corporation. “Words are just the beginning. Our purpose and beliefs work together to foster connections and conversations both inside and outside our doors. ‘Expect More—Pay Less.’”[41]

Key Takeaways • Each organization is unique in what it does and why it does it. The purpose and reason for the organization’s existence should clearly be reflected in its vision and mission statements. • Leaders take responsibility for the development of these two key aspects that unleash the human potential of their organization and draw customers to their side. This allows the organization to obtain a competitive advantage because stakeholders have a heightened sense of purpose to develop intrinsic motivation by seeing their organization’s success as their own. • A clear mission statement describes the central tasks and prioritizes the organization’s effort. Developing a mission statement provides the future direction of the organization and is a constant reminder to employees about the purpose of their efforts. • For any organization, the mission statements answer the most basic of questions: what does our business do and why do we do it? Put another way, what goals (tasks) are we focusing on and what is the purpose or scope of the organization’s operations in terms of product or service? • Developing and evaluating the impact of a mission statement on all stakeholders is important. Organizational stakeholders may focus on the task or what the product does, but customers view the product in accomplishing a particular purpose to meet their individual needs. Differentiating the product in these terms makes the organization’s mission statement unique to a particular profession or industry.

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Exercises 1. Perform an analysis of company mission statements and use the discussion of utility statements to compare their effectiveness to five Fortune 500 companies’ mission statements at the following link: http://www.missionstatements.com/fortune_500_mission_statements. html. 2. Develop a mission statement for a company that produces a service or product in a professional or business area you are passionate about using the discussion about utility statements.

5.5 Intent Statement Learning Objectives 1. Identify the potential impact of a leader’s intent. 2. Discuss the components of an intent statement and the importance of communicating it to stakeholders.

FIGURE 5.4 Developing the Intent Statement

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Figure 5.4 identifies the conclusion of a leadership decision-making process that links the vision and mission statements to the overarching goals of an organization. The intent statement assists organizational stakeholders in understanding the leader’s strategic or operational concept as it relates to the intent phase. The intent phase refers to the before, during, and after stages of organization actions to describe the leader’s concept of the operation that will lead to mission success and achieving the vision. Defining and communicating the leader’s strategic or operational intent statements not only influences the stakeholders the leader would like to motivate to develop, produce, and sell their product or service but also provides a means to empower subordinates’ actions, as they understand how best to support their collaborative relationship with other organization stakeholders.

Leader’s Intent Defined and Purpose As defined in this section, intent serves the purpose of linking the organization’s vision and mission statements to define the overarching tasks (goals or objectives) to a strategic or operational concept. It defines the leader’s concept of operation from the beginning of an operational mission to its accomplishment and how the organization will be postured before the next mission. Intent describes the end state of the organization in terms of the purpose and key goals it sets out to accomplish from the beginning of a mission to its conclusion. Developing an intent statement plays a central role in an organization’s decision-making process, allowing executive leaders and managers to develop their own concept of how a plan will unfold to transform the leader’s vision and mission into operational action, while still maintaining the overarching goals of the mission. In effect, it is the organizational leader’s intent statement that links the organization vision and mission to ensure members of the organization understand the big picture in order to accomplish the desired end state the leader professes. Intent statements describe not only the end state but also what the company will do before and during a strategy or operation by identifying key overarching goals, objectives, or tasks that need to be accomplished to attain the vision and mission statements. Leaders use intent to clarify the strategic or operational concept from beginning to end, with the aim of influencing and inspiring stakeholder initiative as it explains the broader purpose of “how” the organization will proceed from beginning to end beyond the mission statement. The goal of an intent statement is to achieve a common understanding of the strategic or operational conceptual method among stakeholders of what needs to be accomplished or achieved given the leader’s absence. Communicating the leader’s intent influences cross department collaboration to meet the leader’s vision and mission requirements, allowing departments to understand where the organization’s main (suborganization given the main effort to accomplish the mission) and supporting efforts (staff or suborganization that provides direct or indirect support to the main effort organization) are. Because leadership intent describes the end state of the organization in terms of the purpose and key goals it sets out to accomplish, its development plays a central role in decision making and planning that allows the organizational staff and subordinate leaders to develop their own plans to transform thought into action, while also maintaining the overarching goals as expressed in the vision and mission statements of the leader.

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intent statement Links the organization’s vision and mission statements to define the overarching tasks (goals or objectives) to a strategic or operational concept.

intent phase There are three intent phases: before, during, and after. The phases do not overlap. The first phase (before) must identify what success or task(s) needs to be completed before the next phase (during) begins. The during phase must be completed prior to the final phase (after) beginning. Once the after phase is completed, the mission and vision of a particular operation is completed.

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Leader’s Intent Development Process Assignment of a mission provides the initial focus for developing the leader’s intent. Organizations are dynamic, and the leader’s visualization of how a single program or project will unfold must be continuous (before, during, and after operational phasing). This is where a leader’s intent statement describes the desired end state to impart a clear understanding of the organization’s operational environment and analyzes the current situation to validate the current operational approach to meet the mission requirement. A leader’s visualization consists of conducting a mental process of developing situational understanding, determining an end state, and envisioning the broad sequence of events necessary to complete the mission that forces or impacts achievement of the desired end state. During the operational planning process, the leader works with his or her executive team, staff, and managers to help determine the desired end state and uses their input to help shape the intent statement. Once the vision and mission statements are formed, the leader views his or her course of actions to develop a strategic or operational direction. The leader can develop the intent statement to illustrate or conceptualize three strategic or operational phases to describe the strategy or operation before the start of the mission, during execution of the mission, and after attaining the desired vision. The definitions of these phases are as follows: • Before. How the organization is organized to perform the mission or operation. An example would include the organization’s various markets or product lines. Each one has a different task in the overall mission. The government sector is tasked to do one thing, private business sector another, education sector another, and research and development of products or expansion of products are separate tasks. The important point is that all program management teams are identified in the overall mission statement and understand who, what, when, where, and why they are performing their subordinate roles for the larger organization. • During. This phase of strategy or operations begins at the end of the before preparation phase, and its focus is taking action to complete or achieve the mission. The program managers fully understand their separate missions and understand the staff and support relationships their divisions or departments have to each other. This phase incorporates the actual execution of the mission. • After. This phase starts at the conclusion of accomplishing the mission and is focused on posturing the organization for future actions. The after phase informs the program managers as to how their divisions or departments should be poised for the next opportunity and prepares them to start a new or revised strategic mission or operation. intent statement components Before: How the organization is organized to perform the mission or operation. During: Taking action to complete or achieve the mission. After: Starts at the conclusion of accomplishing the mission and is focused on posturing the organization for future actions.

Intent plays a central role in the military’s decision-making process as it is a basis for staff and subordinates to develop the subordinate organization plans to transform thought into action, while still maintaining the overall vision, especially in the leader’s absence. Often, organizational stakeholders and, most important, the leader will overreach and develop vision and mission statements that are not feasible (attainable), acceptable (understood by all), or suitable (appropriate for achieving the mission and vision of the organization) to the organization’s performance. The intent statement provides the leader with a communication tool to harness stakeholder energy and focus them on what is important to accomplish or act on from the beginning of the strategy to the end. Table 5.5 identifies the intent statement components and the purpose of each component.

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TABLE 5.5 Intent Statement Components Components

Content Purpose

Before. All actions taken prior to executing an operational task

• Designing and developing a product

During. Performing the operational task

• Selling the product

• Planning and positioning of resources

• Performing the service After. How the organization is postured or is organized after having performed the task

• Reinvesting in the organization • Improving the product • Positioning the organization for follow-up operations or missions

Nike provides an industry example of this when stating, “To carry on his legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders.”[42] The Nike statement provides us with the following intent statement in terms of identifying the before, during, and after states: • Before the task is to take place, the company invokes the concept of “carrying on” the company founder’s legacy of “innovative thinking.” • The during state is when the task is to “develop products that help athletes of every level and ability reach their potential.” • And the after, or end state, is to “create business opportunities that set Nike apart from the competition and provide value for our shareholders.” The intent statement then identifies the strategic or operational linkages for all stakeholders and where they play a part in attaining the leader’s vision and the organization’s mission statement. The intent statement helps the staff to shape development of the strategic and operational plan the stakeholders will execute.

Key Takeaways • Intent describes the end state and key tasks that, along with the mission, are the basis for empowering subordinates’ initiative to accomplish the vision and mission. • Leaders use intent statements to explain a broader conceptual purpose beyond that of the mission statement, which focuses on who, what, when, where, and why an organization is focused in a certain direction. Intent explains what the leader considers the scope of the strategy or the operation it entails from the beginning of the operation, during the execution, and what the organization will look like or how the organization will be postured upon completion of the strategy or operation. • The goal of having an intent statement is for the leader to espouse a common understanding of his or her strategic or operational concept before it begins, during its execution, and after the company attains the vision and mission of the organization. It is an effort for stakeholders to know, understand, and share in attaining the overarching company goals and company vision before the staff plans the strategic and operational direction. An intent statement also helps subordinate organizational leaders and management staff to understand how best to support suborganizations within the company.

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Exercises 1. Facilitate a discussion of why an intent statement links the mission and vision statements and why it is important to organization stakeholders as they develop the strategic or operational concept. 2. Identify the key role the leader plays in the development of an intent process.

5.6 Chapter Summary and Case Chapter Summary The importance of developing the vision, mission, and intent statements of an organization is to attain the following benefits: • Ensure synchronization of purpose within the organization. • Identify the end-state vision statement; the mission statement’s who, what, when, where, why; and the intent’s overarching view of the vision and mission statements into how (i.e., the strategic or operational concept) these will be accomplished. • Serve as a focal point for stakeholders to personally identify with the organization’s purpose and direction, keep them within the leader’s intent, and empower them to take action in the absence of the leader’s physical presence. • Facilitate a framework of understanding of organizational goals to the appropriate stakeholders in the organization. • Articulate the leader’s organizational purpose into goals that meet the mission and vision.

Chapter Case Vignette 1: Evaluate and Develop Vision, Mission, and Intent Statements Step 1. Review and analyze the mission statement of Toyota: http://www.toyota-global.com/ company/vision_philosophy/toyota_global_vision_2020.html. Step 2. Identify the following key terms Toyota uses to develop their vision, mission, and intent statements (Consider “The Tree Metaphor” as a visual means or manner of identifying Toyota’s intent): • Values • Precepts • Toyota Way • Principles • Philosophy Step 3. Based on the information in their mission statement, develop your own mission statement that lends itself to the vision and operational intent of the Toyota organization. Step 4. Identify “forward looking statements” in the vision or mission that contain words such as the following • Believe • Expect • Anticipate

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• Intend • Plan • May • Likely • Should • Continue • Future • Or any other comparable expression of “forward looking statements.” These types of statements are subject to risks, assumptions and uncertainties that may cause results to significantly differ from historical results or anticipated ones. Step 5: Turn in the assignment to your instructor or conduct a classroom discussion. Vignette 2: Evaluate a Vision and Mission Statement Step 1. Conduct vision and mission statement research by contacting one or more organizations in your community to identify developed vision and mission statements. Step 2. Ask executive stakeholders questions about their particular vision and mission statements: a. How long have the current versions of your vision and mission statements been in effect? b. Who is primarily responsible for the development of the vision and mission statements? Have you modified them in any way? If so, what prompted you to do so and how often are they reviewed? c. What process is used to develop or alter your vision and mission statements? Step 3. Turn your assignment in to the instructor or conduct a class discussion based on your findings.

Endnotes 1. Baum, J. R., Locke, E. A., & Kirkpatric, S. A. (1998). A longitudinal study of the relation of vision and communication to venture growth in entrepreneurial firms. Journal of Applied Psychology, 83(1), p. 43. 2. Amabile, T., & Kramer, S. (2012, December 19). To give your employees meaning, start with the mission. Harvard Business Review. Retrieved August 6, 2013, from http://blogs.hbr.org/2012/12/to-give-youremployees-meaning 3. Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. New York: Doubleday, pp. 198–215. 4. Gardner, J. W. (1990). On leadership. New York: Free Press, pp. 132–135. 5. Bennis, W. (2009). On becoming a leader. New York: Basic Books, p. 188. 6. Kolenda, C. (2001). Leadership: The warrior’s art. Carlisle, PA: Army War College Foundation Press, p. xix. 7. Kolenda, C. (2001). Leadership: The warrior’s art. Carlisle, PA: Army War College Foundation Press. 8. Kolenda, C. (2001). Leadership: The warrior’s art. Carlisle, PA: Army War College Foundation Press, p. 348. 9. David, F. R. (2013). Strategic management concept and cases: A competitive advantage approach (14th ed.). Florence, SC: Pearson, p. 45. 10. David, F. R. (2013). Strategic management concept and cases: A competitive advantage approach (14th ed.). Florence, SC: Pearson. 11. Yukl, G. (2013). Leadership in organizations (8th ed.). Boston: Pearson, pp. 92–94. 12. Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. New York: Doubleday, pp. 207–209. 13. Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. New York: Doubleday. 14. Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. New York: Doubleday, pp. 207–209. 15. David, F. R. (2013). Strategic management concept and cases: A competitive advantage approach (14th ed.). Florence, SC: Pearson, p. 45. 16. David, F. R. (2013). Strategic management concept and cases: A competitive advantage approach (14th ed.). Florence, SC: Pearson.

17. Amazon. (n.d.). Amazon Jobs: We Pioneer. Retrieved December 1, 2017, from https://www.amazon.jobs/working/working-amazon 18. Barnes and Noble. (n.d.). About B&N. Retrieved December 1, 2017, from http://www.barnesandnobleinc.com/about-bn/ 19. Boeing. (n.d.). Our Vision. Retrieved December 1, 2017, from http://www. boeing.com/principles/vision.page? 20. Coca-Cola. (n.d.). Our Company: Mission, vision & values. Retrieved December 1, 2017, from http://www.coca-colacompany.com/ourcompany/mission-vision-values 21. Costco. (n.d.). Sustainability. Retrieved December 1, 2017, from https://www.costco.com/sustainability-introduction.html 22. Lockheed Martin. (n.d.). Who We Are. Retrieved December 1, 2017, from https://www.lockheedmartin.com/us/who-we-are.html 23. Mattel. (n.d.). Newsroom: About Us. Retrieved December 1, 2017, from http://corporate.mattel.com/about-us/default.aspx 24. Mutual of Omaha. (n.d.). Who We Are: Why Mutual of Omaha. Retrieved December 1, 2017, from https://www.mutualofomaha.com/our-story/ why-mutual-of-omaha 25. Nike. (n.d.). About Nike, Inc. Retrieved December 1, 2017, from https:// about.nike.com/ 26. Target Corp. (n.d.). A Bullseye View: Purpose & Beliefs. Retrieved December 1, 2017, from https://corporate.target.com/about/purpose-beliefs 27. Bennis, W. (2009). On becoming a leader. New York: Basic Books, p. 188. 28. Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. New York: Doubleday. 29. Based on Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. New York: Doubleday, pp. 199, 203. 30. Pearce, J. A., & David, F. (1987). Corporate mission statements: The bottom line. The Academy of Management Executive, 1(2), pp. 109–115. 31. Amazon. (n.d.). About Amazon. Retrieved November 30, 2017, from https://www.amazon.jobs/working/working-amazon. 32. Barnes and Noble. (n.d.). Our mission. Retrieved November 30, 2017, from http://beta.barnesandnobleinc.com/our_company/mission/our_ mission.html 33. Boeing. (n.d.). About us. Retrieved November 30, 2017, from http://www.boeing.com/principles/vision.page? 34. Coca-Cola. (n.d.). Mission, vision & values. Retrieved November 30, 2017, from http://www.coca-colacompany.com/our-company/mission-visionvalues 35. Costco. (n.d.). Sustainability. Retrieved November 30, 2017, from https://www.costco.com/sustainability-introduction.html

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36. Lockheed Martin. (n.d.). Mission statement. Retrieved December 1, 2017, from https://www.lockheedmartin.com/us/who-we-are.html 37. Mattel. (n.d.). Citizenship. Retrieved December 1, 2017, http://citizenship.mattel.com/ 38. Mattel. (n.d.). Mattel, Inc. Board of Directors Amended and Restated Guidelines on Corporate Governance, Retrieved December 1, 2017, from http://corporate.mattel.com/about-us/pdf/new/Amended_and_Restated_ Guidelines_on_Corporate_Governance.pdf

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39. Mutual of Omaha. (n.d.). Why Mutual of Omaha. Retrieved December 1, 2017, from https://www.mutualofomaha.com/our-story/why-mutual-ofomaha 40. Nike. (n.d.). About Nike, Inc. Retrieved December 1, 2017, from http:// nikeinc.com/pages/about-nike-inc# 41. Target Corp. (n.d.). A Bullseye View: Purpose & Beliefs. Retrieved December 1. 2017, from https://corporate.target.com/about/purpose-beliefs 42. Nike. (n.d.). About Nike, Inc. Retrieved May 27, 2014, from http://nikeinc. com/pages/about-nike-inc#

CHAPTER 6

Developing Employees as Followers Training is everything. The peach was once a bitter almond; cauliflower is nothing but cabbage with a college education. — Mark Twain

6.1 The Interview Many of us have sat or will sit in a waiting room with our best clothes on, awaiting a job (or school) interview. You can feel your palms sweat and thoughts race as you wait for your name to be called. You look around at the office environment and imagine yourself walking through those doors every day. People walk by and smile, and overall, you have a really good first impression of the organization. You hope they like you. You tell yourself to remember to smile, while recalling all your experience that makes you the perfect person for this job. A moment of self-doubt may occur as you wonder about the abilities of the other people being interviewed and hope you have more experience and make a better impression than they do. You hear your name, stand up, and give a firm handshake to the hiring manager. The interview has begun. As she walks you back to a conference room, you think you see encouraging smiles as you pass by people. She asks you to take a chair and then tells you what the interview process will be like. She then begins, “Tell me about yourself.” As you start discussing your experience, you feel yourself relax, just a little bit. After the interview finishes, she asks you to take a quick cognitive test, which you feel good about. She tells you she will be doing reference checks and will let you know by early next week. To get to this point, the hiring manager may have reviewed hundreds of résumés and developed criteria she would use for selecting the right person for the job. After she makes the hiring decision, the work has only just begun. As an effective leader, she will need to train and assess each employee to help them continually improve and stay motivated. This is the focus of our chapter—hiring, training, and employee assessment.

6.2 Hiring Learning Objective 1. Name and discuss the steps in the selection process.

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Perhaps one of the most important things we can do as leaders and managers is to build a solid team that will propel our organization to success. Hiring dynamic team members and training them is one of the first steps toward building a successful team. That is the focus of this chapter. selection process The steps involved in choosing people who have the right qualifications to fill a current or future job opening.

After a manager has determined the need for a new employee, he or she will go through the selection process. The selection process refers to the process of choosing people who have the right qualifications to fill a job opening. The selection process is expensive, which means we want to hire the right person the first time. In fact, the cost of hiring a new employee can equal six to nine times the annual salary of the employee.[1] Because it is so expensive to hire a new employee, it is imperative to hire the right person from the start. For example, a police department in Columbia, Missouri estimates the process can take nine to twelve months due to a three-month background check, four months of training, and work at the police academy. Such an extensive process can insure the right candidate is being hired, even though the process might be time consuming and expensive. [2] The selection process consists of five distinct aspects, which we discuss in this section.

Criteria Development All employees involved in the hiring process should be trained on how to properly interview. In addition, employees who hire others should be able to develop fair criteria, review résumés, and develop questions. The first aspect of selection is planning the interview, which includes developing criteria (determining which sources of information on the potential candidate will be used). Also, criteria development addresses how the sources used will be scored and weighted. It goes without saying that the criteria should be related directly to the job the candidate is expected to perform. Developing criteria before reviewing résumés ensures a fairer process. Managers should develop the criteria for hiring, as well as the interview questions, before reviewing any résumés. This allows for a streamlined process with specific guidelines already set before reviewing a résumé. For example, criteria for a project management job might include the following: cognitive ability test

• Five years of experience managing a budget of $5 million or greater

Measures a candidate’s aptitudes or achievements.

• Bachelor’s degree in business or information technology • Ability to multitask • Ability to solve problems and make decisions • Ability to manage conflict • Ability to manage a multicultural team • Score at least a 70 percent on cognitive ability test • Performance evaluation score of four or higher

KSAOs Knowledge, skills, abilities, and other personal characteristics that make a person successful on the job.

By creating the selection criteria ahead of time, the hiring team has a clear picture of exactly what qualifications are needed to be successful at the job. As a result, it is easier to determine who should move to the next round in the selection process. For example, if a criterion is a bachelor’s degree and a candidate does not have this, he or she will likely be disqualified. Likewise, if a candidate does meet all qualifications, he or she may move forward in the process. A manager will also create interview questions that relate to the required and desired qualifications—in this case, questions that show the candidates’ problem-solving, multitasking, and conflict-management abilities, for example. To make this process easier, some organizations, such as the US Department of Veterans Affairs, require applicants to address each of the KSAOs (knowledge, skills, abilities, and other personal attributes needed) listed in the job position within their cover letter.[3] While meeting criteria is important, fit is also important to a manager. Fit includes the right technical expertise, education, and experience, as well as compatibility in the company and team

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cultures. For example, at Facebook headquarters in Menlo Park, California, engineers are selected based on their willingness to take risks, as risk taking is nurtured at Facebook.[4] In addition to this component of their company culture, the company looks for the “hacker” personality, because a hacker is someone who finds ways around constraints placed on a system. At Zappos, the culture is focused on customer service and people’s willingness to provide the best customer service in all aspects of the business.[5] At the online retailer Amazon, a core value in their company culture is a focus on developing leaders to grow with the organization.[6] If a potential candidate does not want long-term career growth, he or she might not be considered a strategic fit within the organization. In today’s organizations, most people need to work within teams. As a result, a candidate’s ability to work in a team may also be an important part of fit. The company is structured so that there are marketers, accountants, developers, and many others working on one product at a time. As a result, Microsoft looks for not only company culture fit but also fit with other team members.[7] As a leader, it is important to consider this aspect of the selection criteria. FIGURE 6.1 The Selection Process at a Glance

Application and Résumé Review Once the criteria have been developed (step one) and the various recruiting techniques have been applied (we do not discuss this since human resources often handles this aspect), the applications can then be reviewed. People have different methods of going through this process, and there are a number of computer programs that can do keyword searches to look for required criteria to “pull” résumés that look to be the closest fit. Of course, the goal of this process is to narrow down the number of résumés that must be looked at and reviewed. There are a couple of managerial concerns regarding discrimination and hiring that we should point out when reviewing résumés.

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disparate impact Unintended discrimination against a protected group as a whole through the use of a particular requirement. Disparate impact may also be present in the interviewing process as well as other employment-related processes, such as pay raises and promotions.

disparate treatment Disparate treatment in hiring might include not interviewing a candidate because of one’s perception about the candidate’s age, race, or gender.

internal candidate An applicant who already works for the company he or she is seeking a position in.

external candidate An applicant who works outside the organization he or she is seeking a position in.

Disparate impact is unintended discrimination against a protected group as a whole through the use of a particular requirement. Disparate impact may occur in the interview process but can also occur in all aspects of an employee’s job, such as pay raises, promotions, and transfers. For example, a requirement of being able to lift fifty pounds might be considered as having disparate impact on women unless the job requires this ability. As we develop criteria, it is important to consider unintended disparate impact on all protected groups. For example, the requirement for certain employees to retire (such as airline pilots) could be considered disparate impact based on age; however, if the organization can prove it is necessary for safety, it may not be a discrimination issue. Disparate treatment in hiring might include not interviewing a candidate because of one’s perception about the candidate’s age, race, or gender. This type of discrimination is more intentional than disparate impact. The last consideration when reviewing résumés is the hiring of internal versus external candidates. An internal candidate is someone who already works within the organization, while an external candidate is someone who works outside the organization. A specific process may be in place to notify internal candidates of open positions. It is best to go through a formal interview process with all candidates. This way, a manager can be assured that hiring does not occur because of favoritism. For example, assume an executive of your organization just left, and you believe the assistant manager in that department is qualified to take over. Suppose, though, that the assistant manager has been lobbying you for the job and has even taken you out to lunch to talk about the job. There may be equally qualified internal candidates who did not use the same lobbying techniques. Hiring internal candidates can motivate other employees, but we need to be careful we have not made specific assumptions about employees’ abilities, as this can cause resentment and frustration. When we hire internally, posting a formal job announcement is necessary to ensure fairness. TABLE 6.1 Possible Advantages and Disadvantages of Hiring an Internal versus an External Candidate Advantages Internal Rewards contributions of current staff candidates Can be cost effective, as opposed to using a traditional recruitment strategy

Disadvantages Can produce “inbreeding,” which may reduce diversity and difference perspectives May cause political infighting between people to obtain the promotions

Can improve morale

Can create bad feelings if an internal candidate applies for a job and doesn’t Knowing the past performance of the candidate get it can assist in knowing if he or she meets the criteria External Brings new talent into the company candidates

Implementation of recruitment strategy can be expensive

Can help an organization obtain diversity goals

Can cause morale problems for internal candidates

New ideas and insight brought into the company

Can take longer for training and orientation

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Interviewing After the manager has determined which applications meet the minimum criteria, people are selected for interview. Managers do not have time to review fifteen or twenty candidates, so the field is sometimes narrowed even further with a phone interview. There are a number of different types of interviews a manager may use. Table 6.2 and Figure 6.2 show the types of interviews, along with examples from Target in Table 6.2 on how they use various interview types. In an unstructured interview, questions are changed to match the specific applicant; for example, questions about the candidate’s background in relation to his or her résumé might be used. In a structured interview, there is a set of standardized questions based on the job analysis, not on individual candidates’ résumés. A structured interview is often the preferred interview method because managers can determine “correct” responses ahead of time and determine what rating each potential response would receive. This allows for a fair interview process, according to the US Office of Personnel Management.[8]

Interviews can be nerve wracking. In this section, we discuss what goes into making the best hiring decisions.

Source: © Thinkstock

TABLE 6.2 Types of Interviews Screening

Although not a traditional “interview” style, screening is a sort of interview. The interviewer combs through résumés to see who he or she wants to interview.

Traditional interview

This type of interview normally takes place in the office. It consists of the interviewer and the candidate, and a series of questions are asked and answered.

Telephone interview

A telephone interview is often used to pare down the list of people who get a traditional interview. It can be used to determine salary requirements or other information that could rule out giving someone a traditional interview.

Panel interview

A panel interview occurs when several people interview one candidate simultaneously. While this type of interview can make the candidate more nervous, it can be a more effective use of time. If, for example, a company required three to four people to interview candidates, it would be unrealistic to ask the candidate to come in for three or four interviews. A panel interview may take place in a day with several different people.

Information interview

Informational interviews are typically used when there is no specific job opening but the candidate is exploring possibilities in a particular field. An advantage to these types of interviews is the ability to find qualified people in advance of a job opening.

Meal interviews

Many organizations offer to take the candidate to a meal for the interview. This is a more casual meeting where you might be able to observe more about the person, such as his or her manners and treatment of servers.

Group interview

In a group interview, two or more candidates interview simultaneously. This type of interview can be a good source of information to learn how they may relate to other people in their job.

Video interviews

These are the same as traditional interviews, except that video technology is used. This can save costs if one or more of your candidates is far from the job.

Nondirective In a nondirective interview, the candidate leads the discussion. Some general and interview planned questions may be asked ahead of time, but the candidate spends more time (also called talking than the interviewer. an unstructured interview) Source: Based on SME 2.0. (n.d.). Free software training materials for SMEs. Retrieved April 17, 2014, from http://source.smepro.eu.

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unstructured interview A type of interview in which questions are changed to match the specific applicant.

structured interview A type of interview with a set of standardized questions based on the job analysis, not on the individual candidate’s résumé.

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FIGURE 6.2 Interview Process for Upper Executives at Target

Video Clip 1 This video provides examples of how to answer those difficult interview questions.

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Digital Downloads Top 36 Job.docx https://images.flatworldknowledge.com/portolesediasleadsup_1.1-32507/attachments/ Top_36_Job-6969.docx Transcript for Video Clip 1

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A situational interview is one in which the candidate is given a scenario and is asked how he or she might deal with the situation. In a behavior description interview, the candidate is asked questions about what action was actually taken in different situations. The assumption with behavior description interviews is that someone’s past experiences or actions are an indicator of how he or she will behave in the future. These types of questions, as opposed to the old “tell me about yourself” questions, help the interviewer know how a person would handle or has handled situations. These interview styles also use a structured method and provide a better basis for making a hiring decision. Examples of situational interview questions might include the following: • If you saw someone stealing office supplies, what would you do? • An employee is not performing up to standards, but you know he is going through a divorce and a custody battle. When employees complain, how would you handle this? • A coworker called in sick but you saw her at the store later that day. What would you do? • You roll out a new compensation plan to your employees. When you present it, the team is not enthusiastic. What would you do?

151

situational interview An interview style in which the candidate is given a sample situation and asked how he or she might deal with the situation.

behavior description interview A type of interview in which the candidate is asked questions about what he or she actually did in a variety of given situations.

• What would you do if you disagreed with your employee on how she handled a customer service situation? Examples of behavior description interview questions might include the following: • Tell me about a time you had to make a hard decision. What type of thought process did you use to make this decision? • Give an example of how you handled an angry customer. • How have you shown leadership and initiative in your current or past job? What would be an example of a situation in which you did this? • What accomplishments have given you the most pride and why? • How do you plan to meet your career goals? Managers should be aware of their own body language in an interview. Some habits, such as nodding, can make the candidate think he or she is on the right track when answering a question. Also, be aware of interview bias, which can include a halo effect or reverse halo effect. This happens when an interviewer becomes biased because of one of the candidate’s positive or negative traits. As you already know, there are many types of interview questions that would be considered illegal. This is important to mention when discussing interviewing. Here are some examples of illegal topics: 1. National origin. You cannot ask seemingly innocent questions such as, “That’s a beautiful name, where is your family from?” This could indicate national origin, which could result in bias. You also cannot ask questions about citizenship, except by asking if a candidate is legally allowed to work in the United States. Questions about the first language of the candidate shouldn’t be asked either. However, asking, “Do you have any language abilities that would be helpful in this job?” or “Are you authorized to work in the United States?” would be acceptable. 2. Age. You cannot ask people how old they are, and it is best to avoid questions that might indicate age, such as, “When did you graduate from high school?” However, asking, “Are you over 18?” is acceptable. 3. Marital status. You can’t ask direct questions about marital status or ages of children. You could, however, ask, “Do you have any restrictions on your ability to travel, since this job requires 50 percent travel?” 4. Religion. It’s illegal to ask about religious affiliation or to ask questions that may indicate a religion-affiliated school or university. 5. Disabilities. It is not legal to ask if a candidate has disabilities or recent illnesses. However, you are able to ask if the candidate is able to perform the functions of the job with or without reasonable accommodations.

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interview bias When an interviewer makes assumptions about the candidate that may not be accurate.

halo effect or reverse halo effect This occurs when an interviewer becomes biased because of one positive or negative trait a candidate possesses.

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6. Criminal record. While it is legal to perform a criminal record check, asking candidates if they have ever been arrested is not allowed; however, questions about convictions and guilty pleadings are acceptable. 7. Personal questions. Avoid asking personal questions, including questions about social organizations or clubs, unless they relate to the job. Besides these questions, any specific questions about weight, height, gender, and arrest record (as opposed to allowable questions about criminal convictions) should be avoided. A halo effect occurs when a desirable trait makes us believe that all traits possessed by the candidate are desirable. This can be a major danger in interviewing candidates.

Here are some tips to consider when interviewing potential employees: 1. Make sure everyone involved in hiring is trained in the interviewing process. If someone with poor interviewing skills conducts the interview, you might not get the best candidate. In a worst-case scenario, someone could ask an illegal question and the candidate can sue the organization. UCLA researchers[9] calculated that plaintiffs win about half of hiring discrimination cases that go to trial, sometimes because of interviewers asking illegal questions. For example, “I see you speak Spanish, where did you study it?” is a seemingly harmless question that could be indirectly asking a candidate his or her ethnic background. To avoid such issues, it’s important to train all employees in the proper interviewing techniques. 2. Establish rapport with the candidate. Understand how nervous he or she must be and try to put him or her at ease. 3. Be realistic about the job, including the positive and not-so-positive aspects. Being honest helps a candidate know exactly what to expect when he or she begins the job. 4. Be aware of your own stereotypes and do not let them affect how you view a potential candidate.

Source: © Thinkstock

5. Pay attention to body language, which can be used to observe if someone is the right fit for a job. For example, Scott Simmons, vice president at Crist|Kolder, interviewed someone for the position of chief financial officer. The candidate had a great résumé, but during the interview, he offered a dead-fish handshake, slouched, and fidgeted in his chair. The candidate didn’t make eye contact and mumbled responses, and, of course, he didn’t get the job because his body language did not portray the expectations for the job position.[10] 6. Adhere to your hiring criteria by asking questions that have been identified in your requirements. 7. Learn to manage disagreement and determine a fair process if not everyone on the interviewing team agrees on who should be hired.

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Video Clip 2 This Monty Python sketch presents an exaggerated and funny example of an untrained interviewer.

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Test Administration Many different tests may be administered before making a hiring decision. These include drug tests, physical tests, personality tests, cognitive tests, as well as reference checks, credit report checks, and background checks.

Video Clip 3 In this TED Talk, Amy Cuddy discusses body language and interviewing.

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A variety of tests may be given in any point during the hiring process. These employment tests can gauge a person’s KSAOs (knowledge, skills, abilities, and other personal characteristics) in relation to another candidate. The major categories of tests include the following:

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job knowledge test Measures the candidate’s level of understanding about a particular job.

1. Cognitive ability tests. Measure reasoning, math, and verbal skills. 2. Personality tests. Measure job fit based on personal characteristics. 3. Physical ability tests. For jobs that require certain physical skills, such as being able to lift a set amount of weight.

work sample test

4. Job knowledge tests. Measure the specific abilities in relation to the job.

An employment test that asks candidates to show examples of work they have already done.

5. Work sample tests. A requirement to show previous work or projects, such as for a graphic designer. It is important to note that some tests may result in disparate impact. For example, the jury is still out on a case against the City of Boston. The case alleges hair follicle testing for drugs causes disparate impact on African Americans due to hair type.[11] If the case is lost by the City of Boston, the city will likely be forced to retest thousands of candidates and current employees. Reference checking is another example of a “test.” It is additional evidence that the candidate’s abilities are in line with what you were told in the interview. While employment dates and job titles can be verified with references, many employers will only verify dates and job title because of privacy laws. However, if you do find someone who is willing to discuss more than dates and job titles, it is appropriate to have a list of questions prepared. These questions might include the following: 1. What was the candidate’s title and what were his or her responsibilities while at your company? 2. Do you believe the candidate was qualified to assume those responsibilities? 3. Is this person on time and does he or she have good attendance? 4. Do you think this person is a team player? 5. What are the candidate’s three strongest and weakest characteristics? 6. Would you rehire this person? If a candidate needs to drive a company vehicle, such as a delivery truck, driving records may be checked. Criminal background checks may also be used if the position will include public interaction. If the position requires handling of money, a credit check may be required, although a written notice is required to be given to the candidate before the credit check is carried out. In addition, written permission must be provided to the credit agency, and the applicants must receive a copy of the report and a copy of their rights under the Consumer Credit Reporting Reform Act (CCRRA). All these types of tests can be used to determine if someone has been honest about his or her past employment. Some companies require drug testing, which causes some debate. While some organizations say this is a safety issue (and pay lower insurance premiums), others say it is an invasion of privacy. As long as drug tests are administered for a defensible reason (safety), many organizations will continue to require them. TABLE 6.3 What Do Employers Find Concerning on Social Networking Sites? Provocative or inappropriate photos or info

46%

Drinking or drug use

43%

Discriminatory comments

33%

Candidate badmouthed previous employer

31%

Poor communication skills

29%

Source: Career Builder, http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?ed=12/31/2016&id=pr945&sd=4/28/ 2016

As a manager, you may also consider reviewing social networking sites to gain knowledge about candidates. In fact, 60 percent of organizations use social networking such as Facebook, Twitter, or LinkedIn to gather information about potential candidates.[12] See Table 6.3 for the types of

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data found on social networking sites. This can be an effective method to see the kind of image the candidate portrays in his or her personal time.

Additional Perspectives In-Group Collectivism in Leadership In-group collectivism refers to the degree to which individuals express pride, loyalty, and cohesiveness in their organization. A high in-group collectivism individual might focus on relatedness within his or her group, believe that duties and obligations are important parts of social behavior, and have a slower pace of life. A low in-group collectivism individual focuses on personal needs as determinants of social behavior and might have a faster pace of life. As a leader, would low in-group collectivism or high in-group collectivism be important to you in the hiring process? How might you word interview questions in order to understand the candidate’s personal preference? Source: Based on House, R., Javidan, M., & Dorfman, P. (2001). Project GLOBE: An introduction. Applied Psychology: An International Review, 50(4), pp. 489–505.

Making the Offer The last step in the selection process is to choose a candidate and then offer a position. A clinical selection approach is probably the most common selection method, and it involves all who will be making the decision to hire a candidate. The decision makers review the data and, based on what they learn from the candidate and the information available to them, decide who should be hired for a job. Because interviewers have a different perception about the strengths of a candidate, this method leaves room for error. One consideration is disparate treatment, in which one’s biases may result in not hiring candidates based on their age, race, or gender. One way to handle this and limit the personal stereotypes and perceptions of the interviewers is to use a statistical method in hiring. In the statistical method, a selection model is developed that assigns scores and gives more weight to specific factors, if necessary. For example, for some jobs, the ability to work in a team might be more important, while in others, knowledge of a specific computer program is more important. In this case, a weight can be assigned to each of the job criteria listed. For example, if the job is a project manager, ability to work with the client might be more important than how someone dresses for the interview. Once you have decided whom to hire, it is time to make the official offer. According to Paul Falcone, vice president for human resources at the Fortune 500 company Cox Communications, detailed information should be asked of the candidate before the offer is even made.[13] He says that once the offer is made, power shifts to the candidate. To prepare for this, he suggests asking salary questions in the interview: 1. “If we were to make a job offer today, when would you be in a position to accept or reject the offer?” If the candidate answers “right now,” this shows he or she does not have other job offers on the table, or if he or she does, he or she prefers your organization. 2. “At what point, dollar wise, would you accept our job offer and at what point, dollar wise, would you reject the offer?” This strategy helps you understand the candidate’s expectations. If the interviewee does not respond right away, you can say, “I am asking because I would like to gauge your interest level. Share with me the ideal salary offer versus at what point you would be willing to walk away from this opportunity.”

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clinical selection approach The decision makers review the data and, based on what they learn from the candidate and the information available to them, decide who should be hired for a job.

statistical method A selection method in which a selection model is developed that assigns scores and weights on various factors, such as personality, answers to interview questions, and test scores.

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Posing these questions can help to qualify candidates based on salary expectations. For example, if a candidate requests 25 percent more than what you can pay for the position, you can both discuss this before the offer is even made, perhaps deciding that the candidate is not the right person for the job at this time. Once you discover in the interview that the salary expectation falls in the range of what can be offered, the first step is to make the offer as soon as the decision is made. In a tight labor market, delaying one or two weeks may affect your ability to hire your first choice. You probably already have a salary range in mind and can begin to narrow down the offer based on the individual’s KSAOs. Many candidates may want to negotiate salary. Because of this, being aware of upper and lower salary budget limitations is imperative.

Attaining a Leadership Position This section was written with the assumption you may already be responsible for hiring individuals in your organization. However, you may be wondering how to obtain your own leadership position to begin with! This section addresses that question. First, understanding the importance of writing a truthful, ethical résumé is important. Exaggerating abilities could end up hurting you in the end if the organization checks facts. Next, the types of questions you may receive for a leadership position may be different from those you would receive as a potential employee. For example, questions pertaining to your ability to accept feedback, process for making change, and ability to see the big picture and vision may be the focus. When interviewing for leadership positions, your communication skills, adaptability, and ability to collaborate may also be of primary concern. In addition, many organizations will require extensive background and financial checks and may require personality tests, such as the Big 5 (discussed in Chapter 2), to determine your leadership potential. The interviewer will likely look for your emotional intelligence skills, such as empathy, integrity, and fairness.

Video Clip 4 This lively video, using the movie Pirates of the Caribbean, offers great analysis and tips on how to successfully negotiate just about anything.

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Video Clip 5 This video discusses how to answer that famous “tell me about yourself” question in an interview.

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Hiring and Union Considerations If your organization has a union in place, we feel we should mention special union considerations. Collective bargaining is the process of negotiations between the company and representatives of the union. All hiring practices must meet the collective bargaining agreement between the organization and the union. FIGURE 6.3 Right-to-Work States

Source: Data from NCSL. Right to Work Resources. Retrieved February 27, 2017, from http://www.ncsl.org/research/labor-andemployment/right-to-work-laws-and-bills.aspx.

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collective bargaining The process of negotiating an agreement between management and employees.

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union shop Requires a person to join the union within a certain time period of being hired by an organization.

right-to-work states Laws passed in many states that prohibit requirements to join a union or pay dues and fees to a union.

agency shop Similar to a union shop, except that workers do not have to join the union but still must pay union dues.

closed shop A type of union agreement in which a person must be a union member to be hired.

To recruit new members, the union may require something called a union shop. A union shop requires a person to join the union within a certain time period of joining the organization. In right-to-work states, a union shop may be illegal. As of 2012, twenty-two states have passed rightto-work laws. These laws prohibit a requirement to join a union or pay dues and fees to a union. To get around these laws, agency shops were created. An agency shop is similar to a union shop in that workers do not have to join the union but still must pay union dues. A closed shop used to be a mechanism for a steady flow of membership. In this arrangement, a person must be a union member to be hired. A leader must know the union rules and regulations and the contents of the collective bargaining agreement in order to make sure hiring meets organizational standards.

Key Takeaways • The selection process refers to the steps involved in choosing someone who has the right qualifications to fill a current or future job opening. • There are five main steps in the selection process. First, criteria are developed to determine how the person will be chosen. Second is a review of the applications and résumés, often done via a computer program that can find keywords. Next is interviewing the employee. The last steps involve testing, such as a personality test or drug test, and then finally, making the offer to the right candidate. • The first step in selection is to begin reviewing résumés. Even before you do this, though, it is important to develop criteria that each candidate will be measured against. This can come from the job description as well as the job qualifications. • Other tools, such as cognitive ability tests, credit checks, and personality tests, can be used to determine qualifications. When developing your criteria for interviewing, determine the minimum level the applicant needs to meet for the criteria—for example, a minimum score on a personality test. • Setting criteria before the interview process starts ensures that disparate impact or disparate treatment does not occur in the interview process. • When hiring, there is the option of internal and external candidates. Each has its own set of advantages and disadvantages. Internal candidates may be able to “hit the ground running,” but external candidates may come in with new perspectives. • Types of interviews include traditional, telephone, panel, informational, meal, group, and video. A combination of several of these may be used to determine the best candidate for the job. A structured interview format means the questions are determined ahead of time, and unstructured means the questions are based on the individual applicant. • Interview questions can revolve around situational questions or behavioral questions. Situational questions focus on asking candidates what they would do in a given situation, while behavioral questions ask candidates what they have done in certain situations. • Interview questions about national origin, marital status, age, religion, and disabilities are illegal. To avoid any legal issues, it is important for interviewers to be trained on which questions cannot be asked. The halo effect, which assumes that one desirable trait means all other traits are desirable, should also be avoided. • Developing a rapport, being honest, and managing the interview process are tips to having a successful interview. • Once the interview process is complete, some companies use other means of measuring candidates through the use of various employment tests. • Facebook, Twitter, and other social networking websites are also used to gather information about a candidate. Calling references is another option. • Every person interviewing the candidate should have a selection model; this method utilizes a statistical approach as opposed to a clinical approach. • The manager’s job isn’t finished once the selection is made. The next step is to actually make the offer. This step is important because if it isn’t done properly, you could lose the candidate or have ill feelings at the onset of the employment relationship. • Leaders should be aware of any union agreements as they pertain to hiring.

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Exercises 1. What components are included in the selection process? Which one do you think is the most important? 2. How can the development of criteria or minimum standards help in a case of disparate treatment accusations? 3. With a partner, develop a list of five examples (not already given in the chapter) of situational and behavioral interview questions.

6.3 Training Learning Objective 1. Explain the components of an effective training program. Once we have spent time and effort hiring the right people, we need to make sure we set them up for success in their job. As the manager, it is your job to make sure the proper training takes place to prepare the employees for challenges. Lack of training can result in lost productivity, lost customers, and poor relationships between employees and managers. It can also result in dissatisfaction, which means retention problems and high turnover. All these end up being direct costs to the organization. To reduce some costs associated with lack of training or undertraining, the development of training programs can help with some of the risk. For effective employee training, there are four steps that generally occur. First, the new employee goes through an orientation, and then he or she receives in-house training on job-specific areas. Next, the employee should be assigned a mentor, and then, as comfort with the job duties grows, he or she may engage in external training. Employee training and development is the process of helping employees develop their personal and organization skills, knowledge, and abilities.

employee training and development The process of helping employees develop their personal and organization skills, knowledge, and abilities.

Employee Orientation The first step in training is an employee orientation. Employee orientation is the process used for welcoming a new employee into the organization. The importance of employee orientation is twofold. The goal is for employees to gain an understanding of the company policies and learn how their specific job fits into the big picture. The goals of an orientation are as follows: 1. To reduce start-up costs. If an orientation is done right, it can help get the employee up to speed on various policies and procedures, so the employee can start working right away. It can also be a way to ensure all hiring paperwork is filled out correctly, so the employee is paid on time. 2. To reduce anxiety. Starting a new job can be stressful. One goal of an orientation is to reduce the stress and anxiety people feel when going into an unknown situation.

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employee orientation The process used for welcoming a new employee into the organization.

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3. To reduce employee turnover. Employee turnover tends to be higher when employees don’t feel valued or are not given the tools to perform. An employee orientation can show that the organization values the employee and provides tools necessary for a successful entry. 4. To save time for the supervisor and coworkers. A well-done orientation makes for a better prepared employee, which means less time having to teach the employee. 5. To set expectations and attitudes. If employees know from the start what the expectations are, they tend to perform better. Likewise, if employees learn the values and attitudes of the organization from the beginning, there is a higher chance of a successful tenure at the company. Some companies use employee orientation as a way to introduce employees not only to the company policies and procedures but also to the staff. For an example of an orientation schedule for the day, view this one from the Louis Stokes Cleveland VA Medical Center, https://www. cleveland.va.gov/docs/NEOSchedule.pdf.

In-House Training in-house training program Any type of program in which the training is delivered by someone who works for the company. Examples might include sexual harassment training or ethics training.

In-house training programs are learning opportunities developed by the organization in which they are used. This is usually the second step in the training process and often is ongoing. In-house training programs can be training related to a specific job, such as how to use a particular kind of software. In a manufacturing setting, in-house training might include an employee learning how to use a particular kind of machinery.

Video Clip 6 This is a short video Starbucks uses to train new employees on customer service.

View in the online reader

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Many companies provide in-house training on various human resources topics as well, meaning it doesn’t always have to relate to a specific job. Some examples of in-house training include the following: • Ethics training • Sexual harassment training • Multicultural training

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On-the-job coaching is similar to mentoring. Think of on-the-job coaching as more skills-based training, while mentoring is usually a training delivery method that is more long term and goes beyond just showing the employee skills to do the job. Successful managers make coaching and mentoring part of their daily routine.

• Communication training • Management training • Customer service training • Operation of special equipment • Training to do the job itself • Basic skills training As you can tell by the list of topics, human resource departments might sometimes create and deliver this training, but often a supervisor or manager Source: © Thinkstock delivers the training. Companies such as The Cheesecake Factory, a family restaurant, make training a high priority. The company spends an average of $2,000 per hourly employee. This includes everyone from the dishwasher to the servers and managers. For The Cheesecake Factory, this expenditure has paid off. They measure the effectiveness of their training by looking at turnover, which is 15 percent below the industry average.[14] Servers make up 40 percent of the workforce and spend two weeks training to obtain certification. Thirty days later, they receive follow-up classes, and when the menu changes, they receive additional training.[15]

Mentoring After the employee has completed orientation and in-house training, companies see the value in offering mentoring opportunities as the next step in training. Sometimes a mentor may be assigned during in-house training. A mentor is a trusted, experienced advisor who has direct investment in the development of an employee. A mentor may be a supervisor, but often a mentor is a colleague who has the experience and personality to help guide someone through processes. While mentoring may occur informally, a mentorship program can help ensure the new employee not only feels welcomed but is paired up with someone who already knows the ropes and can help guide the new employee through any on-the-job challenges. To work effectively, a mentoring program should become part of the company culture; in other words, new mentors should receive in-house training to be a mentor. Mentors are selected based on experience, willingness, and personality. IBM’s Integrated Supply Chain division, for example, has successfully implemented a mentorship program. The company’s division boasts 19,000 employees and half of IBM’s revenues, making management of a mentorship program challenging. However, potential mentors are trained and put into a database where new employees can search the attributes and strengths of mentors and choose the person who best meets their needs. Then the mentor and mentee work together in development of the new employee. “We view this as a best practice,” says Patricia Lewis-Burton, vice president of human resources for the Integrated Supply Chain division. She discusses that this should not be left to human resources alone and, in fact, must become part of the company’s business model.[16] Some companies use short-term mentorship programs because they find employees training other employees to be valuable for all involved. Starbucks, for example, utilizes this approach. When it opens a new store in a new market, a team of experienced store managers and baristas are sent from existing stores to the new store to lead the store-opening efforts, including the training of new employees.[17]

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mentor A trusted, experienced advisor who has direct investment in the development of an employee.

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Video Clip 7 Employee Training & Motivation—Continuing Education Matters A small business owner explains the advantages of offering informal skills training about new products.

View in the online reader

External Training external training Includes any type of training that is not performed in-house.

External training includes any type of training that is not performed in-house. This is usually the last step in training, and it can be ongoing. It can include sending an employee to a seminar to help further develop leadership skills or helping pay tuition for an employee who wants to take a marketing class. To be a Ford automotive technician, for example, you must attend the Ford ASSET Program, which is a partnership between Ford Motor Company, Ford dealers, and select technical schools.[18]

Training Program Framework Development When developing your training plan, there are a number of considerations. Training is something that should be planned and developed in advance.

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FIGURE 6.4 Training Program Development Model

The considerations for developing a training program are as follows: 1. Needs assessment and learning objectives. This part of the framework development asks you to consider what kind of training is needed in your organization. Once you have determined the training needed, you can set learning objectives to measure at the end of the training. 2. Consideration of learning styles. Making sure to teach to a variety of learning styles is important to the development of training programs. 3. Delivery mode. What is the best way to get your message across? Is web-based training more appropriate, or should mentoring be used? Can vestibule training be used for a portion of the training while job shadowing is used for some of the training too? Most training programs will include a variety of delivery methods. 4. Budget. How much money do you have to spend on this training? 5. Delivery style. Will the training be self-paced or instructor led? What kinds of discussions and interactivity can be developed in conjunction with this training? 6. Audience. Who will be part of this training? Do you have a mix of roles, such as accounting people and marketing people? What are the job responsibilities of these individuals, and how can you make the training relevant to their individual jobs? 7. Content. What needs to be taught? How will you sequence the information? 8. Timelines. How long will it take to develop the training? Is there a deadline for training to be completed? 9. Communication. How will employees know the training is available to them? 10. Measuring effectiveness of training. How will you know if your training worked? What ways will you use to measure this?

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Career Development Programs and Succession Planning career development program Also called professional development plan, a career development program is a process developed to help people manage their careers, learn new things, and take steps to improve personally and professionally.

Another important aspect to training is career development programs. A career development program is a process developed to help people manage their careers, learn new things, and take steps to improve personally and professionally. Think of it as a training program of sorts but for individuals. Sometimes career development programs are called professional development plans. FIGURE 6.5 Sample Career Development Plan Developed by an Employee and Commented on by Her Manager As you can see, the employee developed goals and made suggestions on the types of training that could help her meet her goals. Based on this data, the manager suggested in-house training and external training for her to reach her goals within the organization.

Career development programs are necessary in today’s organizations for a variety of reasons. First, with a maturing baby boomer population, newer employees must be trained to take those jobs once boomers retire. Second, if an employee knows a particular path to career development is in place, this can increase motivation. A career development plan usually includes a list of shortand long-term goals that employees have pertaining to their current and future jobs and a planned sequence of formal and informal training and experiences needed to help them reach the goals. As this chapter has discussed, a leader should be instrumental in defining what types of training, both in-house and external, can be used to help develop employees.

Key Takeaways • Employee training and development is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. Training is important to employee retention.

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• There are four steps in training that should occur. Employee orientation has the purpose of welcoming new employees into the organization. An effective employee orientation can help reduce start-up costs, reduce anxiety for the employee, reduce turnover, save time for the supervisor and colleagues, and set expectations and attitudes. • An in-house training program is any type of program in which the training is delivered by someone who works for the company. • A mentor form of training pairs a new employee with a seasoned employee. A mentor program for training should include a formalized program and process. • External training is any type of training not performed in-house; as part of the last training step; external training can also be ongoing. It can include sending employees to conferences or seminars for leadership development or even paying tuition for a class they want to take.

Exercises 1. Why do you think some organizations do not train employees? What are the advantages of training? 2. What qualities do you think a mentor should have? List at least five. 3. Have you ever worked with a mentor in a job, at school, or in extracurricular activities? Describe your experience.

6.4 Chapter Summary and Case Chapter Summary • The selection process refers to the steps involved in choosing someone with the right qualifications for a current or future job opening. • There are five main steps in the selection process. First, criteria should be developed to determine how the person will be chosen. Second, a review of the applications and résumés is conducted, often via a computer program that can find keywords. Next, interview the employee. The last steps involve administering tests, such as a personality test or drug test, and making the offer to the right candidate. • The first step in selection is to review résumés. Even before you do this, though, it is important to develop criteria against which each candidate will be measured. • Use of criteria before the interview process starts is also important to make sure disparate impact or disparate treatment does not occur in the interview process. • When hiring, there is the option of internal and external candidates. Each has its own set of advantages and disadvantages. • Traditional, telephone, panel, informational, meal, group, and video are all types of interviews. A combination of several of these may be used to determine the best candidate for the job. A structured interview format means the questions are determined ahead of time, and unstructured means the questions are based on the individual applicant. The advantage of a structured interview is that all candidates are rated on the same criteria. Before interviewing occurs, criteria and questions for a structured interview should be developed. • Interview questions can revolve around situational questions or behavioral questions. Situational questions focus on asking candidates what they would do in a given situation, while behavioral questions ask candidates what they would have done in certain situations.

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• Interview questions about national origin, marital status, age, religion, and disabilities are illegal. To avoid any legal issues, it is important for interviewers to be trained on which questions cannot be asked. The halo effect, which assumes that one desirable trait means all other traits are desirable, should also be avoided. • Developing a rapport, being honest, and managing the interview process are tips to having a successful interview. • Once the interview process is complete, some companies use other means of measuring candidates, such as tests. For example, work samples are an excellent way of seeing how someone might perform at your company. • Facebook, Twitter, and other social networking websites are used to gather information about a candidate. Calling references is another option. • Every person interviewing the candidate should have a selection model; this method utilizes a statistical approach as opposed to a clinical approach. The selection table lists the criteria on the left and asks interviewers to provide a rating for each. This method can allow for a more consistent way of measuring candidates. • The job of the manager isn’t finished once the selection is made. The next step is to make the offer. Normally this is done through a phone call and a follow-up e-mail outlining the details of the offer. • Employee training and development is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. Training is important to employee retention. • There are four steps in training that should occur. Employee orientation has the purpose of welcoming new employees into the organization. An effective employee orientation can help reduce start-up costs, reduce anxiety for the employee, reduce turnover, save time for the supervisor and colleagues, and set expectations and attitudes. • An in-house training program is any type of program in which the training is delivered by someone who works for the company. Examples might include sexual harassment training or ethics training. • A mentor form of training pairs a new employee with a seasoned employee. This is usually the third step in employee training. A mentor program for training should include a formalized program and process. • External training is any type of training not performed in-house; as part of the last training step, external training can also be ongoing. It can include sending employees to conferences or seminars for leadership development or even paying tuition for a class they want to take.

Chapter Case In the Dog House is a retail chain specializing in dog apparel and accessories. The organization has thirty-five stores with 250 employees in Washington, Idaho, and Oregon. As the chain has grown, the training programs have been conducted somewhat piecemeal. Upon visiting some of the stores in a three-week tour as the operations director, you realize that all the stores seem to have different ways of training their in-store employees. When you dig further, you realize even the corporate offices, which employ seventy-five people, have no formal training program. In the past, they have done informal and optional brown-bag lunch training to keep employees up to date. As a result, you develop a survey using SurveyMonkey and send it to all seventy-five corporate employees. You created a rating system, with 1 meaning strongly disagree and 5 meaning strongly agree. Employees were not required to answer all questions, hence the variation in the number of responses column. After this task, you create a slightly different survey and send it to all store managers, asking them to encourage their retail employees to take the survey. The results are shown here.

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TABLE 6.4 In the Dog House Corporate Employee Survey Results Question

Number of Responses

Average Rating

I am paid fairly.

73

3.9

I feel my group works well as a team.

69

2.63

I appreciate the amount of soft skills training offered at In the Dog House.

74

2.1

I can see myself growing professionally here.

69

1.95

I feel I am paid fairly.

74

3.8

I have all the tools and equipment I need to do my job.

67

4.2

I feel confident that if there was an emergency at the office, I would know what to do and could help others.

73

2.67

I think my direct supervisor is an excellent manager.

55

2.41

The orientation training I received was helpful in understanding the expectations of the job.

75

3.1

I would take training related to 71 my job knowing there would be a reward offered for doing so.

4.24

I am content with the benefits I am receiving.

143

1.2

I feel my store works well as a 190 team.

4.1

I appreciate the amount of product training and information offered at In the Dog House.

182

2.34

My supervisor works with my schedule, so I work at times that are convenient for me.

172

3.67

I feel confident that if I had to evacuate the store, I would know what to do and could help customers.

179

2.88

I think my store manager is a great manager.

139

3.34

I am interested in developing my career at In the Dog House.

174

1.69

Based on the information you receive from your survey, you decide some changes need to be made:

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1. What training topics should be offered at In the Dog House, based on your research? 2. What steps would you need to take to develop a comprehensive training program? 3. How would you communicate the new training opportunities to all employees?

Endnotes 1. Merhar, C. (2016, February). Employee retention: The real costs of losing an employee. Retrieved from https://www.zanebenefits.com/blog/bid/ 312123/employee-retention-the-real-cost-of-losing-an-employee 2. Maslar-Donar, S. (2017, May). Columbia police hiring process goes beyond physical, written requirements. ABC-KMIZ. Retrieved from http://www.abc17news.com/news/columbia-police-hiring-processgoes-beyond-physical-written-requirements/524185704 3. US Department of Veterans Affairs. (n.d.). What are KSAs? Retrieved August 2, 2011, from http://www.va.gov/jobs/hiring/apply/ksa.asp 4. McGirt, E. (2010, February). Most innovative companies 2010. Fast Company. Retrieved from http://www.fastcompany.com/mic/2010/profile/ facebook 5. Zappos. (n.d.). Zappos family core values. Retrieved from http://about. zappos.com/our-unique-culture/zappos-core-values 6. Zappos. (n.d.). Zappos family core values. Retrieved from http://about. zappos.com/our-unique-culture/zappos-core-values 7. Yeung, K. (2013, October 27). Startup hiring isn’t just about qualifications, it’s about finding cultural fits. The Next Web. Retrieved from http:// thenextweb.com/insider/2013/10/27/startup-hiring-isnt-justqualifications-finding-cultural-fits 8. US Office of Personnel Management. (2008, September). Structured interviews: A practical guide. Retrieved from https://apps.opm.gov/ADT/ ContentFiles/SIGuide09.08.08.pdf 9. Hanricks, M. (2011, March 8). 3 interview questions that could cost your company $1 million. BNET. Retrieved from http://www.bnet.com/blog/ business-myths/3-interview-questions-that-could-cost-your-company-1million/791

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10. Reeves, S. (2006, February 16). Is your body betraying you in job interviews? Forbes. Retrieved August 2, 2011, from http://www.forbes.com/ 2006/02/15/employment-careers-interviews-cx_sr_0216bizbasics.html 11. Cano, C. (2017 January). Case Alleging That Hair Follicle Drug Testing Has Disparate Impact on African-Americans Allowed To Proceed. The National Law Review. Retrieved from http://www.natlawreview.com/article/case-alleging-hair-follicle-drug-testing-has-disparate-impact-africanamericans 12. Nikravan, L. (2016 April). Number of Employers Using Social Media to Screen Candidates Has Increased 500 Percent over the Last Decade. Career Builder, retrieved http://www.careerbuilder.com/share/aboutus/ pressreleasesdetail.aspx?ed=12/31/2016&id=pr945&sd=4/28/2016 13. Falcone, P. (n.d.). The new hire: Five questions to ask before making the job offer. Monster.com. Retrieved from http://hiring.monster.com/hr/hrbest-practices/recruiting-hiring-advice/acquiring-job-candidates/makinga-job-offer.aspx 14. Ruiz, G. (2006, April 24). Cheesecake Factory cooks up a rigorous employee training program. Workforce. Retrieved from http://www. workforce.com/section/11/feature/24/35/18 15. Ruiz, G. (2006, April 24). Cheesecake Factory cooks up a rigorous employee training program. Workforce. Retrieved from http://www. workforce.com/section/11/feature/24/35/18 16. Witt, C. (2005, December 1). Serious leadership: IBM builds a successful mentoring program. Material Handling & Logistics. Retrieved from http:// mhmonline.com/workforce-solutions/mhm_imp_4483 17. Thompson, A. A., & Gamble, J. E. (n.d.). Starbucks Corporation. Retrieved from http://www.mhhe.com/business/management/thompson/11e/case/ starbucks-2.html 18. Sheridan Technical Center. (n.d.). Ford ASSET program. Retrieved from http://www.sheridantechnical.com/CourseDescriptions/ AutomotiveTrucking/FordASSETProgram/tabid/2205/language/en-US/ Default.aspx

CHAPTER 7

Motivation as a Responsibility of Leadership People often say that motivation doesn’t last. Well, neither does bathing—that’s why we recommend it daily. — Zig Ziglar Motivation is the art of getting people to do what you want them to do because they want to do it. — Dwight D. Eisenhower Brenden decided to go to college with one goal in mind: to get a job where he could make lots of money. His hope was that the job would allow him to live in a large house, drive a nice car, and take two nice vacations per year. Once he graduated, he accepted a sales job that afforded him these things. After one year, he was promoted into a sales management role. About two years in sales management, he realized that while he was making a lot of money, he didn’t really like his job. It required a lot of travel and working with unhappy clients. Brenden then decided to create a list of the most important things to him in a job. The first on the list was the fact he would feel good about his contributions to society. The second on the list was his ability to pay his bills with a little money left over to save. The third most important thing on the list was that he would be home during the week so he could spend more time with his family. The more Brenden looked at his wish list, the more he realized what he wanted wasn’t lots of money, as he had thought. Other things, as he grew in his career, were far more important to him. Brenden’s situation is common. Often, people think they are motivated by money, but when they step back, they realize that money is just one part of a person’s overall satisfaction at work. For years, managers have tried to motivate people based on money, but research has shown this can only be effective to an extent. As leaders and future leaders of organizations, we need to remember human behavior is complicated, and as a result, it takes more than money to motivate someone. Other things, such as flexible schedules or more vacation time, can motivate people more than a pay raise. This is the topic of our chapter: human motivation and developing an understanding of what motivates our employees.

7.1 Human Motivation at Work Learning Objectives 1. Discuss why employees may not be satisfied at work. 2. Explain how the human motivation theories apply to your employees.

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Theories on Job Dissatisfaction There are a number of theories that attempt to describe what makes a satisfied employee versus an unsatisfied employee. Knowing what motivates our people—and what doesn’t—is the key to keeping a motivated workforce. It may be surprising, but much of what makes people satisfied or unsatisfied at work has little to do with money. We discuss some of these theories next.

Progression of Job Withdrawal Have you ever felt unhappy at a job? If you have, consider how you went through the process of being unhappy—because for most of us, we start out happy but then gradually become unhappy. One of the basic theories is the progression of job withdrawal theory, developed by Dan Farrell and James Petersen.[1] It says that people develop a set of behaviors in order to avoid their work situation. These behaviors include behavior change, physical withdrawal, and psychological withdrawal. Within the behavior change area, an employee will first try to change the situation that is causing the dissatisfaction. For example, if the employee is unhappy with the people he or she is working with, he or she might consider asking for a department move. In the physical withdrawal phase, the employee does one of the following: • Leaves the job • Takes an internal transfer • Starts to become absent or tardy If an employee is unable to leave the job situation, he or she will experience psychological withdrawal. The employee will become disengaged and may show less job involvement and commitment to the organization, which can create large costs to the organization, such as dissatisfied customers, not to mention the personal cost to the employee due to his or her unhappiness in the job. Often, our process of job withdrawal has to do with employee lack of motivation, which we discuss in the next section.

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FIGURE 7.1 Process of Job Withdrawal

Theories on Human Motivation Hawthorne Studies Between 1927 and 1932, a series of experiments were conducted by Elton Mayo in the Western Electric Hawthorne Works company in Illinois.[2] Mayo developed these experiments to see how the physical and environmental factors of the workplace, such as lighting and break times, would affect employee motivation. This was some of the first research performed that looked at human motivation at work. His results were surprising, as he found that no matter which experiments were performed, worker output improved. His conclusion and explanation for this was the simple fact the workers were happy to receive attention from researchers who expressed interest in them. As a result, these experiments, scheduled to last one year, extended to five years to increase the knowledge base about human motivation. The implication of this research applies to us as leaders even today. It tells us we should try to do things that make employees feel valued.

Maslow’s Hierarchy of Needs In 1943, Abraham Maslow developed what was known as the theory of human motivation.[3] His theory was developed in an attempt to explain human motivation. According to Maslow, there is a hierarchy of five needs, and as one level of need is satisfied, it will no longer be a motivator. In other words, people start at the bottom of the hierarchy and work their way up. Maslow’s hierarchy consists of the following: © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

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• Self-actualization needs • Esteem needs • Social needs • Safety needs • Physiological needs Physiological needs are our most basic needs, including food, water, and shelter. Safety needs at work might include feeling safe in the actual physical environment or job security. As humans, we have the basic need to spend time with others. Esteem needs refer to the need we have to feel good about ourselves. Finally, self-actualization needs are the needs we have to better ourselves. The implications of his research tell us, for example, that as long as our physiological needs are met, increased pay may not be a motivator. Needs might include, for example, fair pay, safety standards at work, opportunities to socialize, compliments to help raise our esteem, and training opportunities to further develop ourselves.

Video Clip 1 This video explains Maslow’s hierarchy in detail. After reviewing the video, which of Maslow’s needs are you currently focused on?

View in the online reader

Herzberg Two-Factor Theory In 1959, Frederick Herzberg published The Motivation to Work,[4] which described his studies to determine which aspects in a work environment caused satisfaction or dissatisfaction. He performed interviews in which employees were asked what pleased and displeased them about their work. From his research, he developed the motivation-hygiene theory to explain these results. The things that satisfied the employees were motivators, while the dissatisfiers were the hygiene factors. He further said the hygiene factors were not necessarily motivators, but if not present in the work environment, they would actually cause demotivation. In other words, the hygiene factors are expected and assumed, while they may not necessarily motivate. motivation factor Part of a theory developed by Herzberg that says some things will motivate an employee, such as being given responsibility.

His research showed the following as the top six motivation factors: 1. Achievement 2. Recognition 3. The work itself 4. Responsibility

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5. Advancement 6. Growth The following were the top six hygiene factors: 1. Company policies 2. Supervision 3. Relationship with manager 4. Work conditions 5. Salary

hygiene factor Part of a theory developed by Herzberg that says some things will not necessarily motivate employees but will cause dissatisfaction if not present.

6. Relationship with peers The implication of this research is clear. Salary, for example, is on the hygiene factor list. Fair pay is expected, but it doesn’t actually motivate our employees to do a better job. On the other hand, programs to further develop employees, such as management training programs, would be considered a motivator. Therefore, the actual motivators tend to be the work and recognition surrounding the work performed. As a leader, we may want to consider developing a mentorship program, sending employees to seminars to improve skills, or other motivators related to growth and recognition.

Additional Perspectives Performance Orientation in Leadership Performance orientation is the degree to which a group encourages and rewards individuals for performance. High-performance orientation refers to individuals and leaders who value training and development, prefer formal feedback, and expect direct feedback. Low-performance orientation individuals tend to value harmony with the environment, view formal feedback as judgmental, and tend to value people for who they are rather than what they do. Because of your tendency for high-performance orientation, you view performance evaluations as a development tool. You are surprised when one of your employees continually dismisses the performance evaluation process to the extent where he doesn’t show up for a performance assessment meeting. In this situation, you could be approaching from the perspective of high-performance orientation while your employee has low-performance orientation. Assume performance reviews are a necessary requirement in your organization. How can you handle the employee with low-performance orientation when giving performance evaluations? Source: Based on House, R., Javidan, M., & Dorfman, P. (2001). Project GLOBE: An introduction. Applied Psychology: An International Review, 50(4), pp. 489–505.

McGregor’s X-Y Theory Douglas McGregor proposed the X-Y theory in his 1960 book, The Human Side of Enterprise.[5] McGregor’s theory gives us a starting point to understanding how management style can impact the retention of employees. His theory suggests two fundamental approaches to managing people. Theory X managers, who have an authoritarian management style, have the following fundamental management beliefs: • The average person dislikes work and will avoid it. • Most people need to be threatened with punishment to work toward company goals. • The average person needs to be directed. • Most workers will avoid responsibility.

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Theory X manager According to McGregor, a type of manager who has a negative approach to employee motivation.

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Theory Y manager According to McGregor, a type of manager who has a positive approach to employee motivation.

Theory Y managers, on the other hand, have the following beliefs: • Most people want to make an effort at work. • People will apply self-control and self-direction in pursuit of company objectives. • Commitment to objectives is a function of expected rewards received. • People usually accept and actually welcome responsibility. • Most workers will use imagination and ingenuity in solving company problems. As you can see, these two belief systems have a large variance, and as managers, we want to avoid managing under Theory X in most situations.

Carrot and Stick It is unknown for sure where this term was first used, although some believe it was coined in the 1700s during the Seven Years’ War. In business today, the stick approach refers to “poking and prodding” to get employees to do something. The carrot approach refers to the offering of some reward or incentive to motivate employees. Many companies use the stick approach, as in the following examples: • If you don’t increase your sales by 10 percent, you will be fired. • Everyone will have to take a pay cut if we don’t produce 15 percent more than we are currently producing. As you can imagine, the stick approach does little to motivate employees in the long term! While it may work for some time, constant threats and prodding do not motivate people. The carrot approach might include the following: • If you increase sales by 10 percent, you will receive a bonus. • If production increases by 15 percent, the entire team will receive an extra day off next month. The carrot approach normally means some incentive will occur if expectations are met. The expectations should be attainable and shouldn’t be the only method used in retention planning and turnover reduction.

The carrot strategy takes a much more positive approach to employee motivation but still may not be effective. For example, this approach can actually demotivate employees if they do not feel the goal is achievable. Has this ever happened to you at work? Some reward was offered, but you knew it wasn’t really achievable? If so, you know how this can actually be demotivating! Also, if leaders use this as the only motivational technique, ignoring physiological rewards such as career growth, this could be a detriment as well. All the employee satisfaction theories we have discussed have implications for our own understanding of what motivates us at work.

Sources of Employee Satisfaction and Motivation Data After we have an understanding of employee satisfaction theories and why employees leave, research is our next step in understanding the satisfaction levels of employees.

Source: © Thinkstock

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Research can be performed in two ways. First, exit interviews of employees who are leaving the organization can provide important retention information. An exit interview is an interview performed by human resources or a manager that seeks information as to what the employee liked at the organization and what he or she thinks should be improved. Exit interviews can be a valuable way to gather information about employee satisfaction and can serve as a starting point for determining any motivation issues that may exist in the organization.

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exit interview An interview performed by human resources or a manager that seeks information as to what the employee liked at the organization and what he or she thinks should be improved.

Sample Exit Interview Questions 1. What is your primary reason for leaving? 2. What did you like most about your job? 3. What did you like least about your job? 4. Did you feel there was room for growth in your job? 5. What incentives did you utilize while at our company? 6. Which incentives would you change and why? 7. Did you have enough training to do your job effectively?

The second way to perform research is through employee satisfaction surveys. A standardized and widely used measure of job satisfaction is the job descriptive index (JDI) survey. While JDI was initially developed in 1969 at Bowling Green State University, it has gone through extensive revisions, the most recent one in 2009. JDI looks at five aspects of job satisfaction, including present job, present pay, opportunities for promotion, supervision, and coworkers.[6] Each of the five facets contains nine or eighteen questions; the survey can be given in whole or with only one facet measured. The value of the scale is that managers can measure job satisfaction over a period of time and compare current results to past results and even compare job satisfaction at their company versus their industry. This allows the manager to consider changes in the organization, such as a change in compensation structure, and see how job satisfaction is impacted by the change. Any type of survey can provide information on the employee’s satisfaction with his or her manager, workload, and other satisfaction and motivational issues. An example of a general employee satisfaction survey is shown in Figure 7.2. However, a few things should be considered when developing an employee satisfaction survey: 1. Communicate the purpose and goal of the survey. 2. Once the survey is complete, communicate what changes have been made as a result of the survey. 3. Assure employees their responses will be anonymous and private. 4. Involve others in the survey development. 5. Ask clear, concise questions that get at the root of morale issues. Once data have been gathered and analyzed, we can understand where motivational issues exist and address those, often with the help of our human resources team.

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job descriptive index (JDI) Looks at five aspects of job satisfaction: present job, present pay, opportunities for promotion, supervision, and coworkers.

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FIGURE 7.2 Sample Employee Satisfaction Survey

Source: Zarca Interactive. (n.d.). Employee satisfaction surveys. Retrieved August 18, 2011, from http://www.zarca.com/OnlineSurveys-Employee/sample-employee-surveys.html.

Generational Gap At no other time in history have organizational leaders had to manage such a large gap of generations. Currently, there are four generations in the workforce, as you can see in the following table. Each generation prefers a different leadership style and is motivated by different factors, which can also change depending on the career stage. As a result, we should understand that managers should never take a one-size-fits-all approach with employees. Generation

Leadership style preference

Traditionalist (Born 1927–45)

Direct, clear, fair, consistent

Baby boomers (Born 1946–64)

Treated as equals, warm, caring, democratic approach

Generation X (Born 1965–85)

Direct, competent, genuine, results oriented, supportive of learning opportunities

Millennial (Born 1985–2000)

Motivational, collaborative, positive, organized, coaching

Recognizing and respecting differences can help us better motivate our employees. Based on the preferred leadership style, what do you think (generally) motivates each generation? When you look at your generational category, do you think your leadership style preference fits? Source: Pitts, M., & Smyer, M. (2007, June). The 21st century multigenerational workforce (Issue Brief No. 9). Boston: The Center on Aging and Work, Boston College.

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Chapter 7

Motivation as a Responsibility of Leadership

Key Takeaways • The theory of job withdrawal explains the process an employee goes through when he or she is not motivated or happy at work. • There are many motivation theories that attempt to explain employee motivation or lack of motivation at work. • The Hawthorne studies were a series of studies beginning in 1927 that initially looked at physical environments but found that people tended to be more motivated when they felt cared about. The implications to retention are clear in that employees should feel cared about and developed within the organization by their leaders. • Maslow’s theory of motivation says that if someone already has a need met, giving that person something to meet more of that need will no longer motivate him or her. Maslow divided the needs into physiological, safety, social, esteem, and self-actualization needs. Many leaders only motivate based on the low-level needs, such as pay. Development of training opportunities, for example, can motivate employees on high-level self-actualization needs. • Herzberg developed motivational theories based on actual motivation factors and hygiene factors. Hygiene factors are those things that are expected in the workplace and will demotivate employees when absent but will not actually motivate when present. If managers try to motivate only on the basis of hygiene factors, turnover can be high. Motivation on both of these factors is key to a good retention plan. • McGregor’s theory on motivation looked at managers’ attitudes toward employees. He found that Theory X managers had more of a negative view of employees, while Theory Y managers had a more positive view. • The carrot-and-stick approach means a leader can get people to do something by prodding or by offering some incentive to motivate them to do the work. This theory implies these are the only two methods to motivate, which, of course, we know isn’t true. • There are a number of ways to measure employee satisfaction, such as exit interviews and employee surveys.

Exercises 1. What types of things will motivate you in your career? Name at least five things. Where would these fit on Maslow’s hierarchy of needs and Herzberg’s two-factor theory? 2. Have you ever been unhappy at a job? Or if you haven’t worked, have you ever felt unhappy in a specific team or group? Consider this experience and write about how you went through each phase of the job withdrawal process.

7.2 Strategies Used to Increase Motivation Learning Objective 1. Explain the strategies leaders can use to retain employees.

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As we have addressed so far in this chapter, human motivation is an important aspect to understanding what makes our employees happy or unhappy at their jobs. As leaders, we can implement many strategies to keep employees motivated at work. This section discusses some of those specific strategies.

Salaries and Benefits As we know from Chapter 6 Section 3, employee pay can be a motivator to a certain extent. It is important to note that when we look at compensation, it includes much more than only pay but things such as health benefits and paid time off. Some considerations companies use surrounding pay can include the following: 1. Instituting a standard process. Many organizations do not have set pay plans, which can result in unfairness when onboarding (the process of bringing someone “on board” with the company, including discussion and negotiation of compensation) or offering pay increases. Managers should make sure the process for receiving pay raises is fair and defensible, so as not to appear to be discriminatory. 2. A pay communication strategy. As a leader, we should work hard to make sure the fair pay process is communicated to employees. Transparency in the process of how raises are given and then communicated can help us retain good employees.[7] 3. Paid time off (PTO). As leaders, we can pay employees not only with salary but also with time off. Paid holidays and vacation time might be an example. Many organizations are adding a concept called earned time into their PTO policies. Earned time means for every hour worked, a specific amount of PTO is earned. Then the employee can use the time as sick leave or vacation time, leaving little distinction between the two.

Training and Development To meet higher-level needs, employees need to experience self-growth. As a result, many companies offer training programs within the organization and pay for employees to attend career skill seminars and programs. It is a great idea to offer these types of self-growth opportunities. In addition, many companies offer tuition reimbursement programs to help you earn a degree. Dick’s Drive-In, a local fast food restaurant in Seattle, Washington, offers $22,000 in scholarships over four years to employees working twenty hours per week.[8] However, there is a six-month waiting period, and the employee must continue to work twenty hours per week. In a high-turnover industry, Dick’s DriveIn boasts one of the highest employee retention rates in the fast-food industry.

Performance Appraisals performance appraisal A method by which job performance is measured.

The performance appraisal is a formalized process to assess how well an employee does his or her job. The effectiveness of this process can contribute to employee retention, in that employees can gain constructive feedback on their job performance, and it can be an opportunity for managers to work with employees on goal setting. This process can help ensure our upper-level self-actualization needs are met, but it also can address some of the motivational factors discussed by Herzberg, such as achievement, recognition, and responsibility. We discuss more about performance appraisals in Chapter 10.

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Succession Planning Succession planning is a process of identifying and developing internal people who have the potential for filling positions. As we know, many people leave organizations because they do not see career growth or potential. As leaders, we can combat this by having a clear career path for employees to follow. For example, perhaps you start as a sales associate, become assistant manager, and then become manager. Proper succession planning shows what employees must accomplish at each level in order to attain a higher-level position. This type of clear career path can help with employee motivation at work. If your organization does not currently have a succession plan, consider developing one.

Video Clip 2 This video addresses some real-world retention strategies used at Michels Corporation, a utility contractor services company.

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Flextime, Telecommuting, and Sabbaticals According to a Salary.com survey, the ability to work from home and flexible work schedules are benefits that would entice employees to stay in a job.[9] The ability to implement this type of retention strategy might be difficult depending on the type of business. For example, a retailer may not be able to implement this, since the sales associate must be in the store to assist customers. However, for many professions, it is a viable option and worth including in the retention plan as part of work-life balance. Some companies, such as Recreational Equipment Incorporated (REI), based in Seattle, Washington, offer twelve weeks of unpaid leave per year (beyond the twelve weeks required under the Family and Medical Leave Act) for the employee to pursue volunteer or travel opportunities. In addition, after fifteen years of service with the company, paid sabbaticals are offered, which include four weeks plus already earned vacation time.

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succession planning A process for identifying and developing internal people who have the potential to fill positions.

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Leader-Member Exchange Video Clip 3 This video illustrates the LMX theory.

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leader-member exchange theory (LMX) Focuses on the two-way relationship between managers and their employees, meaning a dyadic relationship.

The leader-member exchange theory (LMX) focuses on the two-way relationship between managers and their employees, meaning a dyadic relationship. The relationship developed can influence the reasonability of the employee and the amount of decision influence the manager is willing to allow for each employee. In addition, this relationship can provide resources to the employee,[10] which can assist him or her in being more successful in the job. Obviously, a positive relationship means the employee is more likely to be motivated, which speaks to the need for this type of dyadic relationship. In addition, this theory suggests that group members will separate into subgroups based on personality, outside interests, or other factors. Because of this, leaders may tend to develop special relationships with an “[11]

Management Training According to a recent Gallup poll of one million workers, a poor supervisor or manager is the number one reason people leave their jobs.[12] Managers who bully, use the Theory X approach, communicate poorly, or are incompetent may find it difficult to motivate employees to stay within the organization. One way to combat this is to understand the skills it takes to be a good leader and continually self-assess and ask for feedback from employees.

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Conflict Management, Morale, and Fairness Perceptions on fairness and how organizations and organizational leaders handle conflict can be contributing factors to employee morale. Outcome fairness refers to the judgment that we make with respect to the outcomes we receive versus the outcomes received by others with whom we associate with. When employees are deciding if something is fair, they will likely look at procedural justice, or the process used to determine the outcomes received. There are six main areas employees use to determine the outcome fairness of a conflict:

outcome fairness The judgment that people make with respect to the outcomes they receive versus the outcomes received by others with whom they associate.

1. Consistency. They determine if the procedures are applied consistently to other persons and throughout periods of time.

procedural justice

2. Bias suppression. They perceive that the person making the decision does not have bias or a vested interest in the outcome.

The process used to determine the outcomes received.

3. Information accuracy. The decision made is based on correct information. 4. Correctability. The decision is able to be appealed, and mistakes in the decision process can be corrected. 5. Representativeness. The feeling that the concerns of all stakeholders involved have been taken into account. 6. Ethicality. The decision is in line with moral societal standards. For example, let’s suppose JoAnn just received a bonus and recognition at the company party for her contributions to an important company project. However, Charlie might compare his inputs and outputs and determine it was unfair that JoAnn was recognized because he had worked on bigger projects and had not received the same recognition or bonus. As you know from the last section, this type of unfairness can result in being unmotivated at work. As leaders, we want to avoid perceived unfairness such as this.

Job Design, Job Enlargement, and Empowerment As we have discussed previously, one of the reasons for job dissatisfaction is the job itself. Ensuring our employees’ skills set and what they enjoy doing matches with the job is important. Some companies will use a change in job design, enlarge the job, or empower employees to motivate them. Job enrichment means to enhance a job by adding more meaningful tasks to make our work more rewarding. For example, if a retail salesperson is good at creating eye-catching displays, allowing him or her to practice these skills and assigning tasks around this could be considered job enrichment. Job enrichment can fulfill our higher level of human needs while creating job satisfaction at the same time. In fact, research in this area by Richard Hackman and Greg Oldham[13] found that employees need the following to achieve job satisfaction: • Skill variety, or many different activities as part of the job • Task identity, or being able to complete one task from beginning to end • Task significance, or the degree to which the job has impact on others, internally or externally • Autonomy, or freedom to make decisions within the job • Feedback, or clear information about performance

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job enrichment Adding more meaningful tasks to enhance a job and make the employee’s work more rewarding.

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job enlargement Adding new challenges or responsibilities to a current job.

employee empowerment A way to involve employees in their work by allowing them to make decisions and act on those decisions with the support of the organization.

In addition, job enlargement, defined as the adding of new challenges or responsibilities to a current job, can create job satisfaction. Assigning employees to a special project or task is an example of job enlargement. Employee empowerment involves managers allowing employees to make decisions and act upon those decisions with the support of the organization and the leadership. When employees are not micromanaged and have the power to determine the sequence of their work day, they tend to be more satisfied than those employees who are not empowered. However, it is important to note as discussed in Chapter 9, the leader must be specific on the boundaries of the empowerment and set the boundaries based on the employee’s abilities.[14] Empowerment can include the following: • Encouraging innovation or new ways of doing things • Making sure employees have the information they need to do their jobs; for example, they are not dependent on managers for information in decision making • Management styles that allow for participation, feedback, and ideas from employees

Create a Compelling Company Culture Some organizations, such as Zappos or Google, create a company culture worth reading about in business magazines. Creating the right company culture can motivate your employees to stay. Zappos, for example, is guided by ten core values that define not only their business strategy but also their culture and brand. Zappos has created a compelling vision (discussed in Chapter 5); employees know their purpose and the company focuses on keeping employees happy because they know if employees are happy, they will in turn make the customer happy.

Video Clip 4 This video addresses the excellent company culture—which leads to motivated employees—at Zappos.

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Pay-for-Performance Strategies Some organizations have a pay-for-performance strategy, which means employees are rewarded for meeting preset objectives within the organization. For example, in a merit-based pay system, employees might be rewarded for meeting or exceeding performance during a given time period.

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Rather than a set pay increase every year, the increase is based on performance. Some organizations offer bonuses to employees for meeting objectives, while some organizations offer team incentive pay if a team achieves a specific, predetermined outcome. For example, each player on the winning team of the 2013 NFL Super Bowl earned a team bonus of $88,000,[15] while the losing team of the Super Bowl took home $42,000. Players also earn money for each wild card game and playoff game. Some organizations also offer profit sharing, which is tied to a company’s overall performance. Gain sharing, different from profit sharing, focuses on improvement of productivity within the organization. For example, the city of Loveland, Colorado, implemented a gain-sharing program that defined three criteria that needed to be met for employees to be given extra compensation. The city revenues had to exceed expenses, expenses had to be equal to or less than the previous year’s expenses, and a citizen satisfaction survey had to meet minimum requirements. As a leader, this can be an effective strategy to motivate people individually and as a team.

Video Clip 5 David Swinford, CEO of Pearl Meyer & Partners, discusses executive pay for performance.

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Effective Delegation Good delegation has a number of benefits, as you learned in Chapter 5. First, it can motivate your employees and can help groom a successor. It can save you time and save your organization money. Failed delegation can cause demotivation and frustration and is a time waster. There are eight steps to successful delegation:[16] 1. Define the task. Know specifically what you expect from the employee before talking with anyone about what needs to be done. If it isn’t clear in your mind, it will be difficult for you to explain it to someone else. 2. Select the individual based on his or her abilities and talents. 3. Explain the reasons for the delegation (“I am working on xyz project, and it would be a great help if you could…”). 4. State the expected results. What should come from his or her effort? 5. Consider the resources he or she may need in order to complete the task. 6. Agree to deadlines. 7. Support and communicate. Touch base with the employee to see if he or she has questions or needs help. However, don’t micromanage the process! 8. Give the employee feedback on the finished task. © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

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Another important factor in delegation is to determine the level of the delegated task. Based on the level, the amount of freedom the employee will have to accomplish the task will vary. Here are the various delegation levels: 1. Do as I say. In this level of delegation, there is a specific way the task should be accomplished, and variation from that task isn’t allowed. For example, assume a fire chief is giving instructions while a house is burning. It is likely he or she will use a “do as I say” strategy, given the emergency nature of the situation. 2. Look into this. In this type of task, the manager is asking the employee to look into various courses of action but is not asking the employee to make a choice on the course of action. For example, if the office needs new computers, you may ask your administrative manager to look up options and pricings, but you are not asking him to make a final decision. Within this option, a manager could ultimately ask the employee to decide, or the decision could be made together. 3. Decide and let me know your decision. In this situation, the employee is trusted to make the decision, and the manager is simply asking for information on what the employee ends up choosing. 4. Decide an action and manage it. This type of delegation is the ultimate trust for the employee—you are asking him or her to not only decide but also handle any issues that may come up as a result of that decision. It is likely you will consider the level of employee development, trust, and experiences with them on past projects before deciding which course of action to take. Use delegation as a way to develop your employees, show you trust them, and build relationships.

Other Ways to Motivate According to Fortune’s “100 Best Companies to Work For,”[17] things we may choose to implement to motivate employees may be more unique, as in these examples: • On-site day care or day-care assistance • Gym memberships or on-site gyms • Concierge service to assist in party planning or dog grooming, for example • On-site dry cleaning drop-off and pickup • Car care, such as on-site oil changes once a week • On-site doggie day care • On-site yoga or other fitness classes • “Summer Fridays,” when all employees work half days on Fridays during the summer • Various support groups for cancer survivors, weight loss, or caring for aging parents • On-site life coaches • Peer-to-peer employee recognition programs • Management recognition programs While some of these options may not be practical for your particular organization, the important thing to remember is that a sense of fairness is key in leadership.

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Chapter 7

Motivation as a Responsibility of Leadership

Some companies offer unique benefits to reduce turnover. An on-site yoga class is an example of a unique motivational tool.

Source: © Thinkstock

Key Takeaways • Salary and benefits are a major component of what leaders can do to motivate employees. Consistent pay systems and transparent processes are important considerations. • Many companies offer paid tuition programs, reimbursement programs, and in-house training to increase skills and knowledge. • Performance appraisals provide an avenue for feedback and goal setting. They also allow for employees to be recognized for their contributions. • Succession plans allow leaders the ability to show employees how to continue their career with an organization, and they clearly detail what needs to be done to achieve career growth. • Flextime and telecommuting are options some companies use as motivators. These types of plans allow employees flexibility when developing schedules and allow some control of their work. Some companies also offer paid or unpaid sabbaticals to allow employees to pursue personal interests after a certain number of years with the company. • Since one of the reasons people are dissatisfied at their jobs is because of their relationship with their manager, we should be keenly aware of how we treat our employees. • Some companies may change the job through empowerment or job enlargement to help grow employee skills. • Creation of a good company culture is an important aspect to motivation, as is effective delegation of tasks. • Other, more unique ways leaders try to retain employees might include offering services to make the employee’s life easier, such as dry cleaning, day-care services, and on-site yoga classes.

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Exercise 1. Research two different companies you might be interested in working for. When reviewing their list of benefits, which ones are offered that might motivate you to stay with the organization?

7.3 Chapter Summary and Case Chapter Summary • The theory of job withdrawal explains the process an employee goes through when he or she is not motivated or happy at work. • There are many motivation theories that attempt to explain employee motivation or lack of motivation at work. • The Hawthorne studies were a series of studies beginning in 1927 that initially looked at physical environments but found that people tended to be more motivated when they felt cared about. The implications to retention are clear in that employees should feel cared about and developed within the organization by their leaders. • Maslow’s theory of motivation says that if someone already has a need met, giving that person something to meet more of that need will no longer motivate him or her. Maslow divided the needs into physiological, safety, social, esteem, and self-actualization needs. Many leaders only motivate based on the low-level needs, such as pay. Development of training opportunities, for example, can motivate employees on high-level self-actualization needs. • Herzberg developed motivational theories based on actual motivation factors and hygiene factors. Hygiene factors are those things that are expected in the workplace and will demotivate employees when absent but will not actually motivate when present. If managers try to motivate only on the basis of hygiene factors, turnover can be high. Motivation on both of these factors is key to a good retention plan. • McGregor’s theory on motivation looked at managers’ attitudes toward employees. He found that Theory X managers had more of a negative view of employees, while Theory Y managers had a more positive view. • The carrot-and-stick approach means a leader can get people to do something by prodding or by offering some incentive to motivate them to do the work. This theory implies these are the only two methods to motivate, which, of course, we know isn’t true. • Salary and benefits are a major component of what leaders can do to motivate employees. Consistent pay systems and transparent processes are important considerations. • Many companies offer paid tuition programs, reimbursement programs, and in-house training to increase employee skills and knowledge. • Performance appraisals provide an avenue for feedback and goal setting. They also allow for employees to be recognized for their contributions. • Succession plans allow leaders the ability to show employees how to continue their career with an organization, and they clearly detail what needs to be done to achieve career growth. • Flextime and telecommuting are options some companies use as motivators. These types of plans allow employees flexibility when developing schedules and allow some control of their work. Some companies also offer paid or unpaid sabbaticals to allow employees to pursue personal interests after a certain number of years with the company.

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Chapter 7

Motivation as a Responsibility of Leadership

• Since one of the reasons people are dissatisfied at their jobs is because of their relationship with their manager, we should be keenly aware of how we treat our employees. • Some companies may change the job through empowerment or job enlargement to help grow employee skills. • Other, more unique ways leaders try to retain employees might include offering services to make the employee’s life easier, such as dry cleaning, day-care services, and on-site yoga classes.

Chapter Case The following is a list of some possible strategies a leader can use to motivate employees. Assume you are the manager for a small retail shop specializing in high-end shoes. How might you utilize each of these strategies to motivate your five employees? a. Salary b. Opportunity for bonuses and profit sharing c. Benefits d. Opportunity to grow professionally within the organization e. Team bonuses f. More paid time off g. Option to telecommute h. Flextime scheduling i. Sense of empowerment j. Tuition reimbursement k. Job satisfaction

Endnotes 1. Farrell, D., & Petersen, J. C. (1984, August). Commitment, absenteeism and turnover of new employees: A longitudinal study. Human Relations, 37(8), pp. 681–692. Retrieved August 26, 2011, from http://libres.uncg. edu/ir/uncg/f/J_Petersen_Commitment_1984.pdf 2. Mayo, E. (2007). The social problems of an industrial civilization. New York: Arno. 3. Maslow, A. (1999). Toward a psychology of being (3rd ed.). New York: Wiley. 4. Herzberg, F., Mausner, B., & Snyderman, B. B. (1993). The motivation to work. New Brunswick, NJ: Transaction. 5. McGregor, D. (2006). The human side of enterprise. New York: McGrawHill. 6. Bowling Green State University. (n.d.). Job descriptive index. Retrieved July 29, 2011, from http://www.bgsu.edu/departments/psych/io/jdi/ page54706.html 7. Handel, J. (n.d.). Does it matter what employees know about pay? WorldatWork. Retrieved February 26, 2011, from http://www.worldatwork.org/ waw/Content/research/html/research-home.jsp 8. Dick's. (n.d.). Working at Dick's is a Family Affair. Retrieved April 2, 2011 from http://www.ddir.com/employment

9. Salary.com. (n.d.). Employee job satisfaction and retention survey, 2007/ 2008. Retrieved February 26, 2011, from http://www.salary.com/docs/ resources/JobSatSurvey_08.pdf 10. Forsyth, D. R. (2009). Group dynamics. New York: Wadsworth. 11. Dienesch, R. M., & Liden, R. C. (1986). Leader-member exchange model of leadership: A critique and further development. Academy of Management Review, 11(3), pp. 618–632. 12. No. 1 reason people quit their jobs. (n.d.). Netscape. Retrieved July 28, 2011, from http://webcenters.netscape.compuserve.com/whatsnew/ package.jsp?name=fte/quitjobs/quitjobs&floc=wn-dx 13. Based on Hackman, J.R. & Oldham, G.R. (1974). The job diagnostic survey: An instrument for the diagnosis of jobs and the evaluation of job redesign projects. Department of Administrative Sciences: Yale University. 14. Coutu, D. (2009, May). Why teams don’t work. Harvard Business Review. Retrieved April 3, 2013, from http://hbr.org/2009/05/why-teams-dontwork 15. Rovell, D. (2011, January 18). How much do players get paid for winning the Super Bowl? CNBC Sports. Retrieved July 29, 2011, from http://www. cnbc.com/id/41138354/How_Much_Do_Players_Get_Paid_For_Winning_ the_Super_Bowl 16. Based on Dale Carnegie Training. (2012, August 20). Leadership tips: Effective delegation process. Retrieved February 15, 2013, from https://www.dalecarnegie.com/delegation-tips-for-new-managers/ 17. Unusual perks. (2011). CNN Money. Retrieved February 26, 2011, from http://money.cnn.com/galleries/2011/news/companies/1101/gallery. bestcompanies_unusual_perks.fortune/5.html

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CHAPTER 8

Effective Decision Making Always remember that no decision is a decision, nonetheless. — Anonymous If a decision-making process is flawed and dysfunctional, decisions will go awry. — Carly Fiorina A peacefulness follows any decision, even the wrong one. — Rita Mae Brown A good leader knows when doing nothing is not an option. — Anonymous

8.1 Social Media Blues As your organization has grown, many decisions have been made for it to expand from the onehundred-person store in two states to the now two-thousand-employee chain store spanning across eight states. As the vice president of marketing, you have welcomed social media as a great way to keep in touch with your customers, develop relationships with them, and keep them updated on in-store happenings. Recently, several store managers have told you that your company’s Facebook page does not match the values and needs of the individual customers in their area. The managers complain that the Facebook page has become out of touch. For example, the Facebook page may advertise a certain brand of dog food; however, when the customer goes to the local store, it doesn’t carry that particular brand or flavor. They suggest allowing each store to create their own Facebook page and keep in touch with customers in that manner rather than through the corporate-sponsored page. You are torn on this decision. First, you want the store managers to feel ownership of the marketing efforts, but on the other hand, you are worried there will no longer be consistency among the stores. As a leader, these types of decisions can be stressful and confusing. As you already know, every decision comes with upsides and downsides. This chapter discusses some potential models for decision making, decision-making pitfalls, and challenges in team decision making.

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8.2 Decision-Making Models Learning Objective 1. Name and discuss various decision-making models. Learning how to make good decisions and then implementing those decisions—both alone and in a team—could be one of the most important aspects of leadership. That is the focus of this chapter. We discuss decision-making models; bias in decision making; group, organizational, and individual challenges in decision making and change; and, finally, some strategies for making good group decisions.

Ethical Priorities in Decision Making The exploration of ethical values and priorities in decision making may have started with King Solomon and his description of six universal values,[1] which are still relevant today: 1. Wisdom 2. Justice 3. Integrity 4. Compassion 5. Courage 6. Faith Solomon’s wisdom directs leaders to engage in the decision-making process using a wider range of values than simply profit and/or performance. Furthermore, Solomon’s writings can be also be seen as the “genesis” of intrinsic versus extrinsic values and rewards as the main motivating forces for successful leaders. When leaders are overly focused on the drive for money, title, power, and acclaim for their actions (extrinsic), decisions are more likely to be self-serving and ethically challenged. If leaders are more focused on a calling to support social justice, self-improvement, insight, the good of the whole, transformation, service, consistency, fairness, and justice (intrinsic), then decisions are more likely to be ethical. Moreover, almost all decisions will have a moral component that will require grappling with complexities and balancing divergent needs and constituencies. Ultimately, a history of facing these complex situations increases our capacity for ethical decision making.[2]

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Procedural Justice and Distributive Justice One model for reviewing complex decision-making situations involves follower perceptions related to justice. Justice is commonly defined as consistent fairness and accountability, as seen in leader and organizational process styles (procedural) and outcomes (distributive). Furthermore, distributive justice refers to the perceived decision fairness of compensation, favors, access, and reward outcomes in general. Procedural justice relates to the perceived fairness of the decisionmaking process used to determine rewards or outcomes.[3] Procedural and distributive justice act as interacting principles. Leaders should appreciate the relative interaction of these principles when decisions are viewed as unfavorable or unpopular. With unpopular decisions, procedural justice tends to be an overwhelming focus of the people impacted by the decision outcome, often requiring a greater need for explanation and rationale justification. For example, assume your organization needs to cut salaries for a three-month period in order to reduce operational costs. This certainly would be considered an unpopular decision, resulting in detailed discussions with employees about the pay cut, how it will affect them, and the benefits in the longer term of such a pay cut. Similarly, a leader can expect a high level of critique of all procedures, decision making, attention to detail, and due diligence enacted in reaching an unpopular decision.

distributive justice The perceived decision fairness of compensation, favors, access, and reward outcomes in general.

procedural justice The perceived fairness of the decision means used to determine the rewards or outcomes.

With follower comfort in the provision of information on procedural justice, trust in the authority/leader will positively impact employee/follower commitment to the leader and the organization as a whole. With popular decisions, distributive justice likely enjoys positive attention, and procedural justice is assumed to have been fair. Therefore, procedural justice tends not to be a main focus with popular decision making.[4]

Additional Perspectives Uncertainty Avoidance in Leadership Uncertainty avoidance refers to the extent to which an organization, society, or group relies on social norms to alleviate the unpredictability of future events. A person with high uncertainty avoidance may use more formality, be orderly, and resist change. A person with low uncertainty avoidance may be less calculating when taking risks and tend to be less orderly. In a leadership situation, understanding that others may be very comfortable—or not comfortable—with uncertainty can help us better understand and plan for successful group decisionmaking processes. Assume you are running a meeting where the goal is to decide on a future direction for the organization. Anyone can contribute at any time, with no formal process regarding who speaks and how the decision will be made. How might this situation be uncomfortable for someone who tends to have low uncertainty avoidance? How can you maintain your high uncertainty avoidance while still creating a comfortable decision-making environment for those who may be lower in this area?

Rational Decision-Making Model The rational decision-making model is perhaps one of the most common models leaders use to make decisions, and it consists of eight steps: 1. Identify the problem. 2. Establish decision criteria. 3. Weigh decision criteria.

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rational decisionmaking model An eight-step model used to make decisions.

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4. Generate alternatives. 5. Evaluate alternatives. 6. Choose the best alternative. 7. Implement the decision. 8. Evaluate the decision. As a leader, it is important to note that at times we may have to go through this decision process quickly. In fact, if you consider a simple decision such as what to make for dinner, you ultimately are using this model. First, you identify the problem (I’m hungry! Time for dinner!). Second, you determine what criteria you will use to make your decision on what to have for dinner (I have chicken in my refrigerator; I don’t want to go to the store). Next, you weigh the options (Although I don’t want to go to the store, I also really want a hamburger, which would require me to drive to the store but make me feel happy). Next, after you weigh the pros and cons of the decision, you will determine the “overall” thought of the decision (So, I can go to the store to get beef, or I can stay here and have chicken). Next, you make your selection. Once you have made your selection, you will act on it and then eventually evaluate it (I am really glad I just had chicken at home, the traffic looks really bad). Of course, this example is simplified to illustrate how often we utilize this decision process model without realizing it. As leaders, we may do the same thing. We are often faced with choices that must be made quickly, or other times, we are faced with decisions where we can really consider all the alternatives over a period of time. When doing this, we want to make sure to involve all stakeholders in our decision-making process. analysis paralysis This occurs when we overthink the decision and spend so much time thinking about it that we never take action.

One thing to be concerned about when making a decision is a concept called analysis paralysis. This occurs when we overthink the decision and spend so much time thinking about it that we never take action. The danger of analysis paralysis in a leadership role is missed opportunities. One of the more popular quotes on analysis paralysis comes from Ross Perot when discussing work at General Motors (GM): “At GM, if you see a snake, the first thing you do is go hire a consultant on snakes. Then you get a committee on snakes, and then you discuss it for a couple of years. The most likely course of action is—nothing. You figure, the snake hasn’t bitten anybody yet, so you just let him crawl around on the factory floor. We need to build an environment where the first guy who sees the snake kills it.”[5] As a leader, there are a few ways you can deal with analysis paralysis:[6] • Expectation clarification. Make sure everyone on your team understands the clear expectations, goals, and outcomes of the decision. Of course, make sure you understand them yourself! • Checkpoints. Set realistic checkpoints and small goals. Sometimes considering a big decision (i.e., change of marketing strategy) can be daunting. Making the decision in small steps can be a helpful way to overcome analysis paralysis. • Certainty of uncertainty. Understand—and make sure your team understands—that no decision will ever be 100 percent sure. Get comfortable with the fact that it may be 80 percent right, which means it may be the right decision to go with. • Trust and support. If you do not support your employees when they make bad decisions, it could result in them being unwilling to make any decision.

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FIGURE 8.1 Rational Decision-Making Model

Source: Simon, H. A. (1979). Rational decision making in business organizations. The American Economic Review, 69(4), pp. 493–513.

Edward de Bono’s Six Thinking Hats Another example of a decision-making model is the Edward de Bono model. The Edward de Bono model of the Six Thinking Hats provides us with a different way of thinking about how we make decisions.[7] The six hats provide us six different perspectives. Similar to the rational decision-making model discussed earlier, this model uses hats to represent the steps we need to follow in order to make good decisions. For example, the white hat helps us look at the facts of the situation. The red hat helps us look at the emotional aspect of the problem or solution. The black hat helps us to look at the negatives of the solution, while the yellow hat helps us think about the positives of the solution. The green hat allows us to come up with potential solutions or courses of action, while the blue hat helps us manage the process of making the decision. For example, Andi is considering acceptance of a leadership role in her organization. If she were using the Six Thinking Hats model, she would first look at the facts—that is, the aspects of the job offer, such as pay raise and her ability to perform the job (white hat). Then she would look at how she feels (red hat) about the job—for example, does the position “feel” right? Next, she would look at the downsides of taking the job (black hat), such as the requirement to work more hours. Then she would look at the positives of the job, such as enhancement to her career (yellow hat). Next, she would use the green hat to look at the job from a creative perspective, such as salary potential three years out or her ability to be chief executive officer someday. Finally, the blue hat would cause Andi to make sure she used all hats to decide and, based on the data, go ahead and make the best choice.

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Six Thinking Hats A set of six perspectives or steps used in making good decisions.

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FIGURE 8.2 Six Thinking Hats Model Helps People Look at All Sides of a Decision

Source: De Bono Group. (n.d.). The six thinking hats. Retrieved June 5, 2013, from http://www.debonogroup.com/six_thinking_hats. php.

Video Clip 1 This video offers a brief explanation of de Bono’s Six Thinking Hats model.

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Intuitive Decision Making Decision making based on intuition is not as favored as other decision models, but we feel it is worth mentioning since many organizational leaders utilize a combination of the rational decisionmaking model and intuitive decision making. Due to technology’s ability to provide numerous data points, charts, graphs, and information, making decisions based on intuition when combined with other methods can be an important part of the leadership toolbox.[8] Intuition is a complex form of reasoning based on past experience, double-loop learning, patterns, concepts, and other useful knowledge a leader has. As you remember from our discussion in Chapter 2, Myers-Briggs indicators can be applicable to leaders who use intuitive decision making. Regardless of the decisionmaking style, any one of the models discussed can help us with decision making. The next one we discuss, the Vroom-Jago decision model, shows us in which situations it makes sense to make an autocratic decision versus a consultative one.

intuition A complex form of reasoning based on past experience, double-loop learning, patterns, concepts, and other useful knowledge a leader has.

Video Clip 2 Intuitive decision making is discussed in this video. Although the focus is on personal decision making, we can still apply these in leadership situations.

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Vroom-Jago Decision Model The Vroom-Jago model can be used to determine how involved your employees should be in the decision-making process.[9] First, we must discuss the different types of decision situations that could be made, as shown in Figure 8.3.

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Vroom-Jago model A decision-making model that can be used to determine how involved your employees should be in the decision-making process.

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FIGURE 8.3 Vroom-Jago Model

Source: Based on Duncan, W. J., LaFrance, K. G., & Ginter, P. M. (2003). Leadership and decision making: A retrospective application and assessment. Journal of Leadership & Organizational Studies, 9(4), pp. 1–20.

To use the model, you will use these questions[10] and the decision tree in Figure 8.5. 1. Is high quality important here or is a good solution absolutely critical? (Is this a case where it would not be acceptable to have lots of equal alternatives?) 2. As the leader, do you have enough information of your own to make a good decision? 3. Is the problem structured in a way that is clearly defined and organized and has recognized solutions? 4. Do the members of the group have to accept this decision for it to work? 5. If you make this decision yourself, are you sure the group will accept it? 6. Are the group members aligned with the same goals that you are trying to achieve? 7. Is disagreement likely among group members in reaching a decision? The Vroom-Jago model looks at three main factors in team decision making: decision quality (how important is the “right” decision?), subordinate commitment (how important is it that your team buys into the decision?), and time constraints (how much time do you have to make the decision?). This model proves to be very useful in determining how decisions should be made. The model provides a framework to look at each of these important questions and then correlate them to the chart (Figure 8.3) to determine how a decision should be made. For example, when utilizing a group decision process, we want to be sure we need to include all parties involved because of the extensive time it may take to come to group consensus. Likewise, it is important to know which types of decisions should be group decisions and which decisions should be autocratic ones. This can also relate to our earlier discussion on procedural justice, in that there may be perceived fairness when making a decision using a systematic process such as the Vroom-Jago model.

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Assessment Model When we utilize an assessment model, we can look at several aspects and the effects of our decision to make better decisions, which include possible outcomes—positive or negative. Lee Bolman and Terrence Deal[11] present a model called the Four Frames, which states that we should look at any decision from four perspectives, or frames: political, human resource, structural, and symbolic. This model is expanded upon in Chapter 12. This model is useful in evaluating the factors and/or repercussions of any potential decision, especially when major organizational change is involved. Therefore, the Four Frames model has application in making the “go/no-go” decision. Another useful model is Quinn’s Seven Factors of Strategic Change, or “logical incrementalism.” Henry Mintzberg found that strategy selection is not one decision but rather a set of smaller decisions or, actually, a “pattern in a stream of decisions.”[12] If this stream of decisions presents a consistent pattern over time, then a strategy is considered to have formed, regardless of urgency. James B. Quinn[13] expanded on the “stream of decisions” concept to explore the main factors successful decision makers used to evaluate an organizational change situation and assess the organizational readiness for and impact of the proposed change. Quinn described this process as “logical incrementalism.” Through interviews with over one hundred managers and leaders, he distilled a pattern of assessing their organizations, and the impact of a change strategy, down to seven common factors: 1. Past organizational strategies (i.e., success, failures, and style) 2. Managerial/leader attitudes toward risk (i.e., risk tolerance) 3. Degree of organizational dependence on environmental factors and/or regulators 4. Organizational culture and power relationships 5. Impact of proposed change on lower-level managers and staff personnel 6. Probable actions and reactions of competitors 7. Timing of change strategy (i.e., windows of opportunity, staging, and project length)

A Closer Look at the Seven Factors The Influence of Past Organizational Strategies It is very common for people to commit a vast amount of energy and resources to a past course of action, especially when they were personally responsible for choosing that strategy. Therefore, if the past course was unsuccessful, these people can be very resistant to change. Similarly, if a new course of action is viewed as significantly deviating from past process styles (i.e., “the way we always did things”), some people will be very resistant to new innovations, regardless of logic or strategic opportunity. This factor relates well to Bolman and Deal’s political and symbolic frames.

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Managerial/Leader Attitudes toward Risk Risk relates to the perceived chance of loss or damage in both real (economic, political) and symbolic (embarrassment, image) terms. Risk can be viewed as those factors that can negatively impact any “hoped for” planned changes or results. Risk is always present. Organizations, and their respective leaders, develop attitudes or a culture of dealing with risk that invariably impact their strategic choices for change. Some leaders/ organizations embrace risk (change) easier than others. They are more likely to adopt an active or offensive strategy (proactive) in reaction to environmental change on the horizon rather than waiting to be forced to react. On the other hand, risk-averse leaders/organizations tend to prefer a defensive strategy, where they only react when forced to by external forces. Risk avoiders are more likely to use past strategies (however dysfunctional), while risk-tolerant organizations/leaders react more comfortably with discussions and exploration of a wide range of change options. Risk tolerance predicts success on both organizational and leadership levels, particularly in industries that have rapidly changing environments. Risk tolerance relates closely with Bolman and Deal’s human resources (HR) frame.

Degree of Organizational Dependence on Environmental Factors and/or Regulators A higher level of organizational dependence on environmental and/or external factors (stakeholders, regulations, unions, competitors, governmental oversight, etc.), lowers the level of flexibility the organization has in the strategic choice process. Research shows that patterns of continual adjustment to an organization’s environment create a perspective that hardens and then tends to limit or constrain leader/managerial choices. This factor closely resembles Bolman and Deal’s structural and symbolic frames.

Organizational Culture and Power Relationships Culture is a concept used to describe and determine the values that set a pattern for an organization’s activities, actions, style, and priorities. Culture is very similar to Bolman and Deal’s symbolic frame. Power is the relationship between people that involves organizational members’ ability to influence others to engage in activities they might not otherwise. Power is also seen through the style individuals use to compete for perceived limited resources within the organization. Power is closely related to politics; therefore power is closely related to Bolman and Deal’s political frame. When choosing a strategy and planning for change, one should identify the following: • The kind of culture needed to support the proposed change • The existing (current) culture • Any gaps or potential resistance between the current and needed culture • What methods will be used to decrease resistance and encourage participation and acceptance • How to implement the strategy • Whether the strategy needs to be refined This perspective relates closely to Kotter’s eight stages of implementing change.

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Impact of the Proposed Change on Lower-Level Managers and Other Staff Personnel Change strategies usually have an organization-wide impact, varying from subtle to extreme. Also, it is very common that those responsible for the major part of any change implementation are lower-level managers and staff. Therefore, it is imperative to consider the impact of the change on these people and to solicit their comments and input on the proposed change. Given that lower-level managers tend to contribute greater to projects likely to be accepted, while conversely stepping back from projects deemed likely to fail, the success of any strategic change outcome can be greatly influenced by individual and subunit self-interest as well as the perceived consideration of their concerns by upper management. When these people are brought into the change discussion, the preferred strategy, chosen by upper management, is usually altered somewhat for the better. Additionally, the views of the lowerlevel staff tend to be less resistant to change when their subunit’s respective perspectives and objectives are integrated, or at least taken into consideration, in developing the ultimate strategic decision. This factor relates closely to all four of Bolman and Deal’s frames. Additionally, this factor has great weight on choosing your guiding coalition, per Kotter’s eight steps and stages of change.

Probable Actions and Reactions from Competitors (Both Internal and External) Change can have a ripple effect that is not easily predicted. The change agent is wise to view the proposed change from the frame of competitors (either internal or external) and the perceived threat of successful change to them. Furthermore, competitors may use risk of failure (previously discussed) to weaken the organization, subunit, or person leading the change. This is especially true of internal competitors who view their current positive position, or image for future promotions and/or political power, as threatened by a successful change strategy. This factor also covers Bolman and Deal’s political frame and should not be underappreciated.

Timing of Change Strategy Change can sometimes be open ended and other times be very dependent on windows of opportunity that are either taken advantage of, lost, or cyclical in nature. Certain industries are very cyclical in nature, where any change must conform to timelines, reapproval, or the vagaries of governing bodies and the deliberative process the change agent has very little control over. Higher education curriculum change is an example of a cyclical approval process. Bringing new pharmaceuticals to market and aviation are examples of the long-term project management and strategic step watching required for preapproval. Bringing technology development to market (especially smartphones) represents opportunities lost or taken advantage of. This area closely relates to Bolman and Deals’ structural frame and the implementation phase of organizational development.

Key Takeaways • The rational decision-making model is an eight-step model that asks the decision maker to go through a series of steps to determine the end decision result. The steps consist of the following: identify the problem, establish decision criteria, weigh decision criteria, generate

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alternatives, evaluate the alternatives, choose the best alternative, implement the decision, and evaluate the decision. • De Bono’s Six Thinking Hats model is another useful decision-making tool. The six hats provide us six different perspectives. For example, the white hat helps us look at the facts of the situation. The red hat helps us look at the emotional aspect of the problem or solution. The black hat helps us to look at the negatives of the solution, while the yellow hat helps us think about the positives of the solution. The green hat allows us to come up with potential solutions or courses of action, while the blue hat helps us manage the process of making the decision. • The Vroom-Jago model assists us in determining by which method we should decide, for example, autocratically, consultatively, or as a group. It utilizes a decision tree to help make the decision. • Intuition can be a valuable tool in decision making in that it includes all data a person has learned.

Exercises 1. Utilizing the rational decision-making model, discuss a recent decision you have made at work, school, or home and explain your thought process at each step. 2. Review the opening story. Using the Vroom-Jago model, determine the process for this decision making. Discuss why you think this is the best choice.

8.3 Faulty Decision Making Learning Objective 1. Explain and give examples of faulty decision-making types. Despite our best efforts, we often find we have made an incorrect decision. This section discusses some of the ways we can make faulty decisions. An awareness of how and why the decision didn’t go as planned can help us understand what makes a bad decision before we make that questionable decision. It is important to mention single- and double-loop learning, which we discussed in Chapter 2. Single-loop learning refers to when we look at a failed attempt and then we simply try something else, without ever reflecting on why the failure happened to begin with. Double-loop learning relies on our ability analyze why something didn’t work, so we can take better action the next time. Single-loop learning doesn’t allow us to learn from our mistakes, while a focus on double-loop learning can help us to ask ourselves about the forces and factors that went into making a wrong decision.

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Overconfidence Effect The overconfidence effect is a bias in decision making in which a leader’s subjective confidence in his or her judgment is higher than his or her accuracy in making a decision. For example, consider the leader who believes she always makes good decisions but actually only makes good decisions 60 percent of the time. This personality trait can lead her to trust her ability to make decisions when, in fact, the ability isn’t as good as she thinks.[14]

overconfidence effect A bias in which a leader’s subjective confidence in his or her judgment is higher than his or her accuracy in making a decision.

Framing Bias Framing bias occurs when we don’t fully understand the problem at hand or identify it incorrectly. For example, assume a vice president of sales sees sales numbers dropping for a particular product line, so he determines the website must be poor. He then utilizes the rational decision-making model to figure out how he and his team will fix the website. In this case, he framed the problem wrong—the problem was actually the decrease in sales commissions, which drove the particular product to experience sales drops. FIGURE 8.4 Framing Bias Framing bias occurs when we do not understand or perceive the decision correctly from the beginning.

Source: © Shutterstock, Inc.

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framing bias A bias that occurs in decision making when we don’t fully understand the problem at hand or we identify it incorrectly.

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Video Clip 3 This scientific video shows how the brain works when making decisions.

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Illusion of Control illusion of control A decision-making bias whereby people assume they will have more control over a situation than they might actually possess.

Another possible decision-making bias is people’s ability to assume they will have more control over a situation than they actually may; this is called illusion of control. For example, many leaders make this mistake by believing a decision they make will be accepted by all employees involved. Employees may not embrace a decision at first—even if it is the right decision. Because of this, and because leaders need their employees to carry out tasks, the leader will not able to implement the decision without buy-in from employees.

Sunk Cost Bias / Escalation of Commitment sunk cost bias Continuing along the same path (even if incorrect) because the organization has already spent time and money on that path.

Many organizations will continue along an incorrect decision path because they’ve “already gone this far.” For example, suppose you decided to update your current customer relationship software. After a few months, the software isn’t working how you needed it to work for your organization. When it is time to upgrade to the new version, the decision is to go ahead and pay for the upgrade even though the software isn’t working the way the company needs it to work. Many organizations would continue along the path—using the wrong software and paying for the update—because they have already spent the money to implement it to begin with. In this situation, the sunk cost (the cost of the software) can be a sunk cost bias (also called escalation of commitment) in decision making.

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Video Clip 4 This video presents an amusing example of escalation of commitment.

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Status Quo Bias According to research by William Samuelson and Richard Zeckhauser,[15] status quo—or maintaining one’s current state—is quite common in business decisions. So rather than making a decision, choosing not to decide can result in status quo bias. Often, leaders engage in status quo bias because they do not know the result of the other decision—so they keep things the same.[16] Consider auto manufacturers, such as General Motors (GM), that continued to make large trucks and SUVs even though American consumers were buying smaller foreign cars. In this case, they chose the status quo (“continue making what we are making”), which resulted in near failure for GM in 2008.[17] Understanding our personal biases, and biases associated with decision making, can help us have self-awareness as we make decisions to determine if any of these biases are at play. Another consideration in decision making includes hurdles when making team decisions, which is the topic of Section 4.

Key Takeaway • Many types of bias can exist when someone is making decisions—for example, overconfidence bias, framing bias, illusion of control, sunk cost bias, status quo bias, and availability bias. We should look for these biases and be aware of them when making leadership decisions.

Exercise 1. Describe a time when you made a decision in which one of the biases discussed in this section occurred.

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status quo bias Choosing not to decide and sticking with things the way they are.

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8.4 Team Decision Making and Change Learning Objectives 1. Explain the reasons for resistance to change and give examples. 2. Explain the meaning of groupthink, the reasons for it, and how to overcome it as a leader. As leaders, we will rarely make decisions on our own. Involvement from our colleagues, employees, and supervisors will likely be part of the decision-making process. As a result, it is important to take a look at group decision making in a leadership context.

Team Decision-Making Challenges There are many reasons why people will resist a change or a decision in your organization. These could be because of organizational reasons, group reasons, or individual reasons. Some of the organizational reasons include the following:[18] 1. Inertia. Inertia is like an 18-wheeler barreling down a hill—sometimes it can be difficult to stop the direction we are already going. This inertia is often involved with sunk costs, one of the biases in decision making. 2. Culture. Creation of a culture that allows for change—which begins from decision making—is an important part in implementing a successful decision. Some cultures don’t allow for mistakes or poor decisions, and as a result, employees are afraid to make decisions. 3. Lack of rewards. We must obtain “buy-in” from our employees when we decide and eventually create a culture of change in our organization. Obtaining buy-in may mean involving employees in the process and providing rewards for successful decision making and change implementation. 4. Structure. Some organizations do not have the organizational structure to manage decision making and change effectively. For example, large organizations spanning over many parts of the world may find challenges implementing changes across the board. 5. Poor timing. If an employee associates a change with something negative—for example, “the last time we changed our vision, one hundred people were laid off”—there may be resistance to decision making and change. In addition, if too much change happens at once, employees may resist it. There are also group causes in resisting change, which include the following: 1. Group norms. As you already know, every organization and group has its own set of norms. Some organizations do not readily accept change. These group norms are an important consideration—how does your group normally make decisions? Are you following the group norm or is there a way to change the group norm?

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2. Group cohesion. Sometimes it is easier to “go along with the group.” When this occurs, individuals, for a variety of reasons (discussed here), do not speak up about their concerns with “the way we have always done things.” When this occurs, employees are less likely to share ideas on how things could be better; therefore, change does not occur. 3. Leadership. Leaders must lead the change. This can only be done through mutual respect and trust. It is important to understand that leaders must have this before moving forward with a change in the organization. Individual causes can also be a reason employees resist change: 1. Fear of the unknown.[19] Giving employees adequate warning of the change and participation in the process are important to overcoming resistance to change. 2. Fear of failure. Employees may be concerned about their skills becoming less valued with the change or are wondering “where does this leave me?” Providing employee training for new skills that are needed and other opportunities can both help with this resistance. 3. Job security. People may be concerned that the change could lead to eventual job loss (either their job or the job of their colleagues). Assurance (only if true) can mitigate some of these issues. 4. Individual characteristics.[20] Positive thinking, openness to experience, and tolerance for ambiguity play an important role in employees’ work attitudes and their coping with change. In addition, self-esteem, optimism, and perceived control predict employees’ willingness to accept a change.[21] When you think back to Chapter 2, you may remember that some personality characteristics from the Big Five and Meyers-Briggs Type indicators can affect how a person deals with a change individually and in teams. For example, some individuals may prefer to focus on efficiency—that is, making a quick decision and acting on that decision—while others may feel thoroughness is more important. Taking time to review data, for example, could be a higher priority than making a decision quickly. Being able to identify your tendencies and those of your team can help teams make better decisions in the long run. Once we have awareness of the reasons employees resist change, we can better handle our decision-making process through employee involvement, but we can also plan ahead for possible resistance to change.

Kotter’s Eight Stages of Change As leaders, once we have decided a change needs to take place, understanding how the change is actually implemented can be explained by Kotter’s change and decision-making model. In this model, Kotter explains that there are eight steps to getting the decision or change to “stick.” These steps are as follows:[22] 1. Create urgency. Let your employees have the sense that change is important. Identify situations that could cause potential positive and/or negative outcomes, and create a dialogue with employees about it. 2. Form a powerful coalition. Convince people that change is necessary, and find “cheerleaders” in your organization who can implement it. 3. Create the vision for the change. Have a clear vision so employees and management can see how the change applies to the organization, to the department, and to them as individuals. 4. Communicate the change. Communicate the change and the vision. Talk about it often. 5. Remove obstacles. Determine if people are resisting the change, and if so, why? What obstacles might be in the way and are preventing the change from happening?

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6. Plan for and create short-term wins. Recognize and reward the individuals or teams involved in creating initial improvements or for being successful in implementing a stage or timeline of the change plan, as a planned step, prior to the project's full completion. 7. Consolidate the improvements. Build on the change. Don’t declare victory too early. Continue finding ways to improve the change and build on the vision. 8. Anchor and institutionalize the change into the organizational culture. The change should become part of the organization’s values. Discuss the progress with employees often and tweak it where necessary. Now that we have discussed decision-making models, it is important to discuss some of the possible pitfalls when making decisions.

Groupthink groupthink Occurs in group decision making when a group is so concerned with maintaining agreement that it fails to evaluate all available alternatives and options.

Groupthink occurs when a group is so concerned with maintaining agreement that its members fail to evaluate all their alternatives and options.[23] One of the classic examples of groupthink is the space shuttle Challenger disaster in 1986. Although the Challenger was ultimately destroyed as the result of equipment failure, the deadly human decision to launch was based on groupthink. Although management knew there could be some safety issues, they felt the risk was worth the reward because they had already delayed a launch earlier in the week. No one in the group spoke up against this decision, so the Challenger was launched and sent to its demise.[24] In a more recent example, the housing crisis of 2008–12 is said to be a result of groupthink, specifically social pressure. The belief that housing prices will always go up leads to the purchasing of overpriced houses. The result was that a lot of people purchased homes many times their actual value,[25] which created a “housing bubble.” Eventually, prices did drop and many people were stuck with mortgages they could not afford for homes they overpaid to purchase.

Video Clip 5 Groupthink and the Space Shuttle Disaster: This video discusses the Challenger disaster in 1986 and the influence of groupthink on this deadly decision.

View in the online reader

While many decisions we make as leaders may not result in deadly consequences, it is important to recognize the symptoms and reasons for groupthink in the decision-making process. They include the following:

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1. Self-censorship. This occurs when team members are not comfortable discussing their concerns about a decision. Often this occurs because they want to avoid being viewed as “not a team player.” 2. Illusion of immortality. When members of a group tend to lose sight of their personal moral principles to “go along” with the group. 3. Illusion of invulnerability. When an entire group believes with certainty that they “can’t be wrong” and, as a result, makes the wrong decision. 4. Apparent agreement in the group. When members censor their own opinions, the group members believe all are in agreement, resulting in no one speaking up (this is the result of selfcensorship).

Groupthink Please review this groupthink-related article discussing a deadly avalanche accident in the Central Cascades in Washington State. Review and consider the causes of this groupthink decision. http://www.nytimes.com/projects/2012/snow-fall/index.html#/?part=tunnel-creek

Avoiding Groupthink As a leader, it is our job to make sure we avoid groupthink in decision making. Here are some ways we can achieve this: • Exploring end-state goals and objectives • Exploring all alternatives • Encouraging all ideas to be challenged without fear of reprisal • Examining the risks of all possible decisions • Making sure you have enough information to decide (avoiding analysis paralysis) • Creating contingency plans When we conduct a decision-making meeting, a number of techniques can be utilized to follow the tips for avoiding groupthink. The nominal group technique involves the rational decision-making model. In this technique, each group member provides his or her view of the correct decision. Then duplicate solutions are eliminated from the list of all solutions. The group then ranks the remaining decisions first, second, third, and so forth. The rank numbers for each team member are totaled, and the decision with the lowest total is chosen. The upside to this technique is the group’s ability to discuss as a whole, but individual differences and opinions are recognized in the ranking of the solutions. Consensus can be another way to make group decisions. In this technique, the approval of all or most group members is necessary to move forward with the decision. The method can be time consuming and political. However, at the end, you may end up with more “buy-in” because the entire group made the decision. This process normally works with the presentation of one or two solutions to a decision and then deliberation occurs among the group until agreement is reached by all. Groupthink is of concern with this technique because often people will “just agree” because they feel everyone else agrees. A decision tree is a visual depiction of all possible options, costs, and the possible outcome of each alternative. Decision trees can be easy to interpret and understand, provide best- and worstcase alternatives, and provide a visual representation for group decision making.

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nominal group technique A decision-making technique where members of a group have time to discuss their opinion and then ideas are ranked and added up to come to a final decision.

consensus A decision-making technique in which the approval of all or most group members is necessary to move forward with the decision.

decision tree A visual depiction of all possible options, costs, and outcomes of each alternative.

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FIGURE 8.5 Decision Tree Using a decision tree, we can look at the “big picture” of our possible decision options and outcomes.

Communicating the Decision Once we make a decision, we need to communicate that decision effectively. When we communicate a decision that was made autocratically, we should make sure to state the reasons why the decision was made, the advantages and/or benefits of the decision, and how the decision will be implemented. As leaders, we will make decisions daily. The important thing to remember about decision making is to utilize a model that allows you to look at all possible options, have an awareness of resistance to change in decision making, and be aware of possible flawed group decision making. Once a decision is made, communicating that decision in an effective way can establish trust and buy-in and increase the likelihood that it will be effectively implemented by employees.

Key Takeaways • There are many causes of resistance to change. They can include organizational causes, group causes, and individual causes. For example, inertia, culture, structure, lack of rewards, and poor timing are organizational causes. • Group causes of resistance to change can include group norms, group cohesion, and leadership. Individual causes might include fear of the unknown, job security, fear of failure, and individual personality traits. • Kotter’s change process model consists of eight steps that can help us, as leaders, understand how we can “cement” decisions we have made to become part of our company’s organizational culture. • Groupthink occurs when the members of a group are so concerned about maintaining a level of agreement that they fail to evaluate all options. Groupthink sometimes occurs because individuals are afraid of being viewed as a “not a team player,” so they don’t speak up, even if they feel a wrong decision is being made. • To avoid groupthink in decision making, we should do the following: make sure we know end-state objectives and goals, explore all alternatives, encourage all ideas to be challenged without fear of reprisal, examine all risks, ensure we have enough information to make a good decision, and create contingency plans. • As leaders, we can utilize a number of techniques for group decision making, including the nominal group technique, decision trees, and consensus decision making. • We must communicate the change or decision well to employees in order to achieve buy-in for the decision.

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Exercise 1. Review the decision tree in Figure 8.5. Discuss how each of the causes of groupthink results in this disaster.

8.5 Chapter Summary and Case Chapter Summary • The rational decision-making model is an eight-step model that asks the decision maker to go through a series of steps to determine the end decision result. The steps consist of the following: identify the problem, establish decision criteria, weigh decision criteria, generate alternatives, evaluate the alternatives, choose the best alternative, implement the decision, and evaluate the decision. • De Bono’s Six Thinking Hats model is another useful decision-making tool. The six hats provide us six different perspectives. For example, the white hat helps us look at the facts of the situation. The red hat helps us look at the emotional aspect of the problem or solution. The black hat helps us to look at the negatives of the solution, while the yellow hat helps us think about the positives of the solution. The green hat allows us to come up with potential solutions or courses of action, while the blue hat helps us manage the process of making the decision. • The Vroom-Jago model assists us in determining by which method we should decide, for example, autocratically, consultatively, or as a group. It utilizes a decision tree to help make the decision. • Intuition can be a valuable tool in decision making in that it includes all data a person has learned. • Kotter’s change process model consists of eight steps that can help us, as leaders, understand how we can “cement” decisions we have made to become part of our company’s organizational culture. • Many types of bias can exist when someone is making decisions—for example, overconfidence bias, framing bias, illusion of control, sunk cost bias, status quo bias, and availability bias. We should look for these biases and have an awareness of them when making leadership decisions. • There are many causes for resistance to change. They can include organizational, group, and individual causes. For example, inertia, culture, structure, lack of rewards, and poor timing are organizational causes. • Group causes in resistance to change can include group norms, group cohesion, and leadership. Individual causes might include fear of the unknown, job security, fear of failure, and individual personality traits. • Groupthink occurs when the members of a group are so concerned about maintaining a level of agreement that they fail to evaluate all options. Groupthink sometimes occurs because individuals are afraid of being viewed as a “ • To avoid groupthink in decision making, we should make sure we know end-state objectives and goals, explore all alternatives, encourage all ideas to be challenged without fear of reprisal, examine all risks, ensure we have enough information to make a good decision, and create contingency plans. • As leaders, we can utilize a number of techniques for group decision making, including the nominal group technique, decision trees, and consensus decision making.

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Chapter Case You are the operations manager for a large consulting business. Recently, the organization has had immense growth, resulting in the need to hire fifteen additional consultants and two support staff and to invest funds in expanding office space and equipment. Currently, you are determining whether or not to implement a flextime schedule with all your consultants. The consultants could work from home up to three days per week. 1. Using the Vroom-Jago model, determine how this decision should be made. 2. Which organizational, group, and individual causes of resistance to change might you be concerned with? Discuss at least two from each category. 3. Based on the concerns you listed, how would you address these issues with your employees? 4. Design a decision tree for this situation.

Endnotes 1. Manz, C. C., Manz, K. P., Marx, R. D., & Neck, C. P. (2001). The wisdom of Solomon at work: Ancient virtues for living and leading today. San Francisco, CA: Berrett-Koehler. 2. Solomon, R. C. (1993). Ethics and excellence. New York: Oxford University Press. 3. Folger, R., & Konovsky, M. (1989). Effects of procedural and distributive justice on reactions to pay raise decision. Academy of Management Journal, 32(1), pp. 115–130. 4. De Cremer, D. (2005). Procedural and distributive justice effects moderated by organizational identification. Journal of Managerial Psychology, 30(1), pp. 4–13. 5. Moore, T., & Perot, R. (1988, February 15). The GM system is like a blanket of fog. CNN Money. Retrieved August 6, 2013, from http://money.cnn. com/magazines/fortune/fortune_archive/1988/02/15/70199 6. Roberts, L. (2010, January–February). Analysis paralysis: A case of terminological inexactitude. Defense AT&L. Retrieved June 5, 2013, from http:/ /www.au.af.mil/au/awc/awcgate/dau/roberts_jan-feb10.pdf 7. De Bono Group. (n.d.). Six thinking hats. Retrieved June 5, 2013, from http://www.debonogroup.com/six_thinking_hats.php 8. Matzler, K., Bailom, F., & Mooradian, T. (2007, October 1). Intuitive decision making. MIT Sloan Review. Retrieved June 6, 2013, from http:// sloanreview.mit.edu/article/intuitive-decision-making 9. Vroom, V. H. (2000). Leadership and the decision-making process. Organizational Dynamics, 28(4), pp. 82–94; Vroom, V. H. (2003). Educating managers in decision-making and leadership. Management Decision, 41(10), pp. 968–978. doi:10.1108/00251740310509490. 10. Based on Vroom, V. H., & Jago, A. G. (1988). The new leadership: Managing participation in organizations. Englewood Cliffs, NJ: Prentice Hall. 11. Bolman, L., & Deal, T. (2001). Leading with soul: An uncommon journey of spirit, new and revised. San Francisco, CA: Jossey-Bass. 12. Mintzberg, H. (1978). Patterns in strategy formation. Management Science, 24(9).

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13. Quinn, J. (Fall 1978). Strategic change: Logical incrementalism. Sloan Management Review, 20, pp. 7–21. Retrieved May 27, 2014, from http:// sloanreview.mit.edu/article/managing-strategic-change 14. Pallier, G., Wilkinson, R., Danthir, V., & Kleitman, S. (2002). The role of individual differences in the accuracy of confidence judgments. Journal of General Psychology, 129(3), pp. 257–299. 15. Samuelson, W., & Zeckhauser, R. (1988). Status quo bias in decision making. Journal of Risk and Uncertainty, 1, pp. 7–59. 16. Chelst, K., & Canbolat, B. (2011). Value-added decision making for managers. London: Chapman and Hall, p. 430. 17. Rampell, C. (2008, November 19). A “Big Three” failure and U.S. auto making. New York Times. Retrieved June 6, 2013, from http://economix. blogs.nytimes.com/2008/11/19/why-a-big-three-failure-wouldnt-kill-usauto-making 18. Causes of resistance to organizational change. (2010, October 9). MBA Knowledgebase. Retrieved June 7, 2013, from http://www.mbaknol.com/ management-concepts/causes-of-resistance-to-organizational-change 19. Quast, L. (2012, November 26). Overcome the 5 main reasons people resist change. Forbes. Retrieved June 7, 2013, from http://www.forbes. com/sites/lisaquast/2012/11/26/overcome-the-5-main-reasons-peopleresist-change 20. Vos, J. (2006). The role of personality and emotions in employee resistance to change (Master’s thesis, University of Rotterdam). Retrieved June 7, 2013, from http://thesis.eur.nl/pub/3770/ Thesis%20AOM,%20final%20version.pdf 21. Greenberg, J., & Baron, R. A. (2002). Behavior in organizations. Upper Saddle River, NJ: Prentice Hall. 22. Based on Kotter International. (n.d.). The 8-step process for leading change. Retrieved June 6, 2013, from http://www.kotterinternational.com/ our-principles/changesteps/changesteps 23. Janis, I. L. (1982). Groupthink: Psychological studies of policy decisions and fiascoes (2nd ed.). Boston: Houghton Mifflin. 24. Forrest, J. (2005, October 7). The space shuttle Challenger disaster: A failure in decision support system and human factors management. Retrieved June 7, 2013, from http://dssresources.com/cases/ spaceshuttlechallenger 25. Sorcher, S. (2010, June 9). Group-think caused the market to fail. Huffington Post. Retrieved November 21, 2013, from http://www.huffingtonpost. com/stan-sorscher/group-think-caused-the-ma_b_604810.html

CHAPTER 9

The Ethical Leader You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time. — Abraham Lincoln Integrity is doing the right thing, even if nobody is watching. — Various authors, including C. S. Lewis and Jim Stovall

9.1 Unethical or the “Way We Do Business”? As the manager of an automotive parts department, Jeremy has lots of experience with cars and the automotive parts business. Everyone has his or her preferred brand of car parts, including Jeremy. When he works with customers, he might show them the other brands but tends to know more about his favorite brands and, as a result, shows those brands more often. However, at the new product training seminar three weeks ago, all managers were told they will receive a bonus for every DevilsDeat brake pad they or their employees sell. Furthermore, it was recommended that managers train their employees only on the DevilsDeat products, so the managers and employees alike could earn a higher salary. Personally, Jeremy feels DevilsDeat brake pads are inferior. Jeremy’s store has the highest sales of DevilsDeat brake pads, and for this, Jeremy and his employees were recognized by the corporate headquarters. However, last week, a customer came in and said his seventeen-year-old daughter had been in an accident as a result of DevilsDeat brake pads. Jeremy apologized profusely and replaced the part for free. Three more times that week customers came in upset their DevilsDeat products had malfunctioned. Jeremy replaced them each time but began to feel really uncomfortable with the encouragement of selling an inferior product. Jeremy called to discuss with the district manager, who told him it was just a fluke, so Jeremy continued on as usual. Several months later, a lawsuit was filed against DevilsDeat and Jeremy’s automotive parts chain because of three fatalities as a result of the faulty brake pads. This story is a classic one of conflicting values between a company and manager. This chapter discusses some of the challenges associated with conflicting values, the social responsibility of companies, and how to manage this conflict of values in the workplace in a leadership position.

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9.2 An Ethics Framework Learning Objectives 1. Define ethics and give examples of ethical decisions you make in your daily life. 2. Explain the levels of ethics and how they relate to leadership. 3. Explain how your ethics are developed both personally and as a leader.

What Are Ethics? Before we begin our conversation on ethics, it is important to note that making ethical decisions is a cornerstone in leadership. Leaders, managers, and supervisors have two types of ethical decisions to make. First, there is ethical decision making within the organization—for example, choosing whether or not to promote an inferior product, as we saw in our opening story. The second aspect of ethics in leadership is the way a leader treats employees. ethics A set of values that define right and wrong.

values Principles or standards that a person finds desirable.

Before we discuss leadership and ethics, what exactly are ethics? Ethics are defined as a set of values that define right and wrong when applied to decision making. Can you see the challenge with this ambiguous definition? What exactly is right and wrong? That obviously depends on the person and the individual situation, which is what makes ethics difficult to more specifically define. Values are defined as principles or standards that a person finds desirable. So we can say that ethics is a set of principles that a person or society finds desirable and that help define right and wrong. Often people believe that the law defines this for us. To an extent it does, but there are many things that could be considered unethical that are not necessarily illegal. For example, breaking a promise is usually perfectly legal, but not ethical. This is the difference between something ethical and illegal. Something may not necessarily be illegal, but at the same time, it may not be the right thing to do.

Levels of Ethics: An Organizational Framework While there may appear to be a difference in ethics between leaders and the organization, often leaders’ ethics are shown through the ethics of an organization, since organization leaders are the ones who set the ethics to begin with.[1] In other words, while we can discuss organizational ethics, remember that leaders are the ones who determine organizational ethics, which ties the conversation of organizational ethics into personal ethics as well. If a leader can create an ethically oriented culture,[2] it is more likely to hire people who behave ethically, and behave ethically throughout their tenure in the organization. Each of the four levels is discussed next. As leaders of organizations, understanding each one of these is imperative to creating an ethical organization. There are four main ethical levels within organizations.[3] The first level is societal issues. These are the top-level issues relating to the world as a whole, which deal with questions such as the morality of child labor worldwide. Deeper-level societal issues might include the role (if any) of capitalism in poverty. Most companies do not operate at this level of ethics, although some companies, such as TOMS Shoes, feel it is their responsibility to ensure everyone has shoes to wear. As a result, their “one for one” program gives one pair of shoes to someone in need for every pair of shoes purchased. Concern for the environment, for example, would be another way a company can focus on © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

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societal-level issues. The Body Shop, for example, focuses on societal issues and stands against animal cruelty. Many companies take a stand on societal ethics in part for marketing but also because of the ethics the organization creates due to the care and concern for individuals. Our second level of ethics is stakeholder’s issues. A stakeholder is anyone affected by a company’s actions. In this level, businesses must deal with policies that affect their customers, employees, suppliers, and people within the community. For example, this level might deal with fairness in wages for employees or notification of the potential dangers of a company’s product. For example, Scottrade had a breach of customer data, and are still currently dealing with the class action lawsuits that claim Scottrade didn’t do enough to keep customer information private.[4] The third level is internal policy issues. In this level, the concern is internal relationships between a company and its employees. Fairness in management, pay, and employee participation would all be considered ethical internal policy issues. As leaders, this is certainly an area we will have extensive control over. The creation of policies that relate to the treatment of employees relates to leadership—and the retention of those employees through fair treatment. It is in the leaders’ best interests to create internal policies that benefit the company, as well as the individuals working for them. For example, a lawsuit was filed by a former employee who claimed harassment [5] at Disney Parks, which eventually led to a wrongful firing. Although the case had not yet been decided at the time of this writing, these types of issues involving treatment of employees are considered internal issues. The last level of ethical issues is personal issues. These deal with how we treat others—our employees and colleagues alike—within our organization. For example, gossiping at work or taking credit for another’s work would be considered personal issues. Showing favoritism toward one employee over another would be another example of personal issues in relation to ethics. Personal issues include “doing the right thing.” Doing the right thing affects our creditability as an organizational leader in that our employees and colleagues alike will more likely respect us if we are shown to be trustworthy when making ethical decisions. One of the biggest ethical challenges in the workplace is when our company’s ethics do not meet our personal ethics. For example, suppose you believe strongly that child labor should not be used to produce clothing. However, your company uses child labor in China to produce 10 percent of your products. In this case, your personal values do not meet the societal and stakeholder values you find important. This kind of difference in values can create challenges working in a particular organization. When choosing the company or business we work for, it is important to make sure there is a match between our personal values and the values of the organization.

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FIGURE 9.1 Four Levels of Ethics in Organizations How important is it for you to work for an organization that has values and ethics similar to yours?

Sources of Personal Ethics People are not born with a set of values. The values are developed over the course of our life. We can gain our values by watching others, such as parents, teachers, mentors, and siblings. The more we identify with someone—say, our parents—the more likely we are to model that person’s behavior. For example, if Jenny sees her father frequently speed when driving on the highway, there is a good chance she will model that behavior as an adult. Or perhaps because of this experience, Jenny ends up doing the exact opposite and always drives the speed limit. Either way, this modeling experience affected her viewpoint. Likewise, if Jenny hears her mother frequently speak ill of people or hears her lying to get out of attending events, there is a good chance Jenny may end up doing the same as an adult—or the opposite. Besides our life models, there are other things that can influence our values, such as the following: 1. Religion. Religion has an influence over what is considered right and wrong. Religion can be the guiding force for many people when creating their ethical framework. 2. Culture. Every culture has a societal set of values. For example, in Costa Rica, living a “pure life” (pura vita) is the country’s slogan. As a result of this laid-back attitude, the culture focuses on a loose concept of time compared to the United States, for example. Similar to our models, our culture tells us what is good, right, and moral. In some cultures where corruption and bribery is the normal way of doing business, people in the culture have the unspoken code that bribery is the way to get what you want. For example, in India, China, and Russia, exporters pay bribes more often than companies from other countries, according to the New York Times.[6] In Europe, Italian businesses are more apt to pay bribes compared to other countries in the European Union. While bribery of a government official is illegal in many countries, it can happen anyway. For example, government officials, such as police, may view themselves as underpaid and therefore find it acceptable to accept bribes from people who have broken the law.

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The Ethical Leader

3. Media. Advertising shows us what our values “should” be. For example, if Latrice watches television on a Thursday night, advertisements for skin creams and hair products might tell her that good skin and shiny hair are a societal value, so she should value those things, too. 4. Models. Our parents, siblings, mentors, coaches, and others can affect our ethics today and later in life. The way we see them behave and the things they say affect our values. 5. Attitudes. Our attitudes, similar to values, start developing at a young age. As a result, our impressions, likes, and dislikes affect ethics, too. For example, someone who spends a lot of time outdoors may feel a connection to the environment and try to purchase environmentally friendly products. 6. Experiences. Our values can change over time depending on the experiences we have. For example, if we are bullied by our boss at work, our opinion might change on the right way to treat people when we become managers. Although our sources of ethics can lead us in a direction to achieve good ethical decision making, people can often rationalize unethical decisions in a variety of ways. Here are some examples: 1. “Everyone does it.” This method of rationalizing unethical decision making makes the assumption that the more people who engage in unethical behavior, the more “OK” it is. For example, “everyone cheats on tests, so it must be OK for me,” or “all other organizations are exaggerating the amount of pollution, so it’s OK for us.” 2. “If it isn’t illegal, then it’s ethical.” In other words, if the act is not covered by a law, it certainly must be OK. Former Washington, DC, mayor Marion Barry[7] made this argument when he gave his unqualified girlfriend a high-paying job contract in the government. The law in Washington, DC, stated that government officials could not hire family (children, spouses, brothers, or sisters) under the “conflict of interest” law, but it did not include girlfriends. His defense was that it was not illegal to do so; therefore, it was an acceptable decision to make. 3. “Tit for tat.” Many people are able to justify unethical behavior by responding to unethical behavior in kind. For example, assume a client has made snide sexual comments to the project manager, so the project manager overcharges some items, justifying it as the client is a jerk and “my company deserves a higher payment in order to deal with him or her.” In this situation, the employee is using the unethical behavior of the client to justify doing something unethical himself. 4. “A king’s pass.” The king’s pass means a person has done so much good for so many people that an unethical decision can be overlooked. In the doping scandal with Lance Armstrong, many people were willing to overlook his unethical behavior (doping and lying about it) because he survived cancer and started a foundation to support cancer patients and cancer research.[8] As leaders, it is important for each of us to determine our personal values and ethics and then revisit those often to ensure we are making the right ethical decisions. For example, some leaders may be ethical in most aspects of their life but make decisions that benefit them directly. As a leader, it is important that we make decisions that benefit our employees and our organization, not just ourselves. Outside perception of ethical decisions we make is equally as important as our perception. For example, consider the university president who takes a $200,000 pay increase when there is a budget crisis, resulting in frozen salaries for faculty and staff. This president may have felt he or she deserved the pay increase, but the outside perception is that the president decided to only benefit himself or herself and not the organization as a whole.

Additional Perspectives Humane Orientation in Leadership Humane orientation is the degree to which a collective group encourages individuals within the group to be fair, caring, kind, and generous. High humane orientation societies and individuals believe the interests of people are important and that members of society are responsible for promoting the well-being of others. In a lower humane orientation society, one’s self-interest is

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important and people are motivated by a need for power and material possessions. Assume you are a leader with a high humane orientation and believe your organization owes it to society to be socially responsible. However, when you present to the board of directors, some members tend to have a lower human orientation and question you on your annual “Build a House” day, where all your employees are paid their regular daily salary to build a home for the less fortunate. What might you say to these members of the board to defend your position, assuming they tend to be lower in humane orientation? Source: House, R., Javidan, M., & Dorfman, P. (2001). Project GLOBE: An introduction. Applied Psychology: An International Review, 50(4), pp. 489–505.

Sources of Company Ethics When making decisions within organizations, many companies have codes of conduct and ethical standards that must be abided by. This is to make sure everyone in the company follows the same ethics, since ethics can vary from person to person.

Source: © Thinkstock

values statements The guiding principles of the organization—those things that the organization finds important.

Since we know that everyone’s upbringing is different and people may have had different role models, religion, attitudes, and experiences, as company leaders we must create policies and standards to ensure employees and managers understand the expected ethics. These sources of ethics can be based on the levels of ethics, which we discussed earlier. As leaders in our organization, we are the standard-bearer of ethics throughout the organization. Leaders are held to a higher standard for ethical behavior than anyone else in an organization. For example, consider David Petraeus, the former CIA director. After resigning when an affair went public, many people felt the resignation was the right course of action because he should be held to a higher standard of ethics. He had used a private Gmail account to send explicit messages to his girlfriend, an action that was believed to be “reckless” for the safety of the country.[9] However, had one of his employees done something similar, he or she might not have been held to same standard as Petraeus nor been expected to resign.

As standard-bearers, some leaders say the right things but do not do what they say. For example, Kenneth Lay, the former chairman and chief executive officer of Enron, stated in the 2000 company report, “As officers and employees of Enron, we are responsible for conducting the business affairs of the companies in accordance with all laws in a moral and honest manner.”[10] However, Kenneth Lay was said to have created a culture of arrogance that led people to take ethical risks without the fear of any repercussions. The unspoken message in Enron, as stated by several employees, was to “make the numbers, make the numbers and make the numbers.”[11] If you steal or cheat, just don’t get caught. In other words, at Enron, on paper the goal was to be an ethical organization; however, the reality and the company culture did not create this type of ethical environment. This is where we, as leaders, come in. We not only need to create values and ethics in the organization, but we need to live those ethics. Costco is an example of an organization that not only develops ethical expectations but acts on those expectations through providing a fair return on investment for shareholders, earning a profit, providing excellent benefits and high pay to employees, while concerning itself with all stakeholders involved, including the environment. In fact, one of Costco’s value statements is, “A workplace focused on ethics and obeying the law.”[12] Leaders create values statements, which explain their values and are tied to company ethics. A values statement is the organization’s guiding principles, those things that the company finds important. The following are examples:

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Coca-Cola • “Leadership: The courage to shape a better future • Collaboration: Leverage collective genius • Integrity: Be real • Accountability: If it is to be, it’s up to me • Passion: Committed in heart and mind • Diversity: As inclusive as our brands • Quality: What we do, we do well”

Whole Foods • “Selling the highest quality natural and organic products available • Satisfying and delighting our customers • Supporting team member happiness and excellence • Creating wealth through profits and growth • Caring about our communities and our environment • Creating ongoing win-win partnerships with our suppliers • Promoting the health of our stakeholders through healthy eating education”[13]

Banner Bank • Honesty and Integrity • Mutual Respect • Quality • Trust • Teamwork”[14]

Based on these examples of values statements, you can see a few common components, which you should consider if you are put in charge of developing values statements: • Actionable. First, write down a list of values, such as integrity, value, and customer service. Then write an actionable statement for each value. By actionable, we mean something that can be observed and measured. • Reinforced. Create rewards for those employees who uphold the values and make sure your company can make business decisions that would reinforce the values. • Feedback. Obtain value feedback from employees; creating them with your employees creates buy-in for the values. • Visibility. Display the list of values in a place where employees will see them often.

Examples of Unethical Situations • Hiring someone based on age, race, or gender

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• Downloading music and movies from share sites • Plagiarizing • Breaking trust • Exaggerating experience on a résumé • Using Facebook or other personal websites during company or class time • Taking office supplies home • Taking credit for another’s work • Gossiping • Excessive greed or profit • Conflicts of interest • Knowingly accepting too much change • Calling in sick when you aren’t really sick • Discriminating against people • Taking care of personal business on company time • Stretching the truth about a product’s capabilities to make the sale • Divulging private company information

code of conduct A guideline for dealing with ethics in an organization.

A company publicizes its values statements, but often an internal code of conduct is put into place in order to ensure employees follow the company values set forth and advertised to the public. The code of conduct is a guideline for dealing with ethics in the organization. The code of conduct can outline many things, and often companies offer training in one or more of these areas: • Sexual harassment policy • Workplace violence • Employee privacy • Misconduct off the job • Conflicts of interest • Insider trading • Use of company equipment • Company information nondisclosures • Expectations for customer relationships and suppliers • Policy on accepting or giving gifts to customers or clients • Bribes • Relationships with competition As an organizational leader, there is a chance you will need to write a code of ethics or code of conduct. What follows are some guidelines to writing a code of ethics for your organization: • Set priorities. For example, as a leader you will want to look at what values are important to the organization. There should be a discussion on what lines should never be crossed in your organization and things your company would never do to gain a client.[15] • Get input. Since many of your employees in the “front lines” understand the types of ethical challenges they face, it is important to seek input from your employees on what items should be included in a code of conduct. • Don’t be too vague or too specific. Finding a balance between some leeway while still enforcing “rules” is important. For example, if you strictly say that no gifts from clients are allowed, does this mean your client can’t buy you a coffee or give you homemade jam?

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• Put someone in charge of it. Often, codes of conduct are documents that are stored away and not given thought to after they have been written. By putting someone in charge of it, it is more likely to stay a living and breathing document. • Be aware of the effects of intrinsic and extrinsic rewards. The use of intrinsic and extrinsic rewards can influence the ethical and organizational culture. In one study by Adam Grant and Jitendra Singh,[16] employees who were offered more extrinsic rewards, such as bonuses and higher pay, tended to behave more unethically than those employees who were offered intrinsic rewards, such as praise and satisfaction. For example, at a Green Giant factory, insect parts were found in frozen peas. To combat this problem, the factory offerd bonuses to employees who found insect parts. As a result of this incentive, employees were “planting” insect parts they found at home into packaging and receiving bonuses for “finding” the parts. As Grant and Singh point out, incentives can enhance performance but don’t necessarily mean the employees will be ethical or moral when receiving the incentives. In another study by Maurice Schweitzer, research shows that when people are rewarded for goal achievement, they are more likely to engage in unethical behavior, such as cheating by overstating their performance.[17] As a result, leaders and managers should be aware of the possible repercussions—and weigh them against the good—when creating company culture and codes of ethics. Instead, they may want to consider a balance of intrinsic rewards, too, such as autonomy, the ability to develop specialized knowledge, giving employees a meaningful purpose, and finding ways for employees to feel connected with other employees. Some companies have 800 numbers, run by outside vendors, that allow employees to anonymously inform about ethics violations within the company. Someone who informs law enforcement of ethical or legal violations is called a whistleblower. For example, Caterpillar, the construction equipment giant, is accused of evading millions of dollars in taxes. The issue was brought to light by an accountant in the company, who informed the IRS and the company’s board of directors.[18] In the United States, several laws protect whistleblowers. For example, the Occupational Health and Safety Act (OSHA) protects whistleblowers when they report safety violations. The Sarbanes-Oxley Act of 2002 has a whistleblower statute that protects employees who whistleblow on wrongful financial dealings within an organization.[19]

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whistleblower Someone who informs law enforcement of ethical or illegal violations.

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FIGURE 9.2 Verizon’s Code of Conduct Verizon, for example, has a forty-page code of conduct that outlines ethical expectations. This is an excerpt from that code of conduct.

Source: Verizon. (n.d.). Code of conduct. Retrieved March 15, 2018, from http://www.verizon.com/about/sites/default/files/VerizonCode-of-Conduct.pdf.

Like a person, a company can have ethics and values that should be the cornerstone of any business. Understanding where our ethics come from is a good introduction into how we can make good personal and professional ethical decisions. The ability to manage our ethical decision-making processes can help us make better decisions as leaders, and better decisions result in higher productivity and improved respect. We discuss ethical decision making and self-management in Section 3.

Key Takeaways • Ethics is defined as a set of values that define right and wrong. Values are standards or principles that a person finds desirable. • There are four levels of ethical issues. First, societal issues deal with bigger items such as taking care of the environment, capitalism, and embargos. Sometimes companies get involved in societal-level ethics based on their company policies—for example, not using child labor in overseas factories. • The second level of ethical issues is stakeholder issues. These are the things that a stakeholder might care about, such as product safety. • Internal policy issues are the third level of ethical issues. This includes pay and how employees are treated. • Personal issues, our last level of ethical issues, refer to how we treat others within our organization. • There are sources of personal ethics and sources of company ethics. Our personal sources of ethics may come from the models we had in our childhood, such as parents, or from experiences, religion, or culture. Leaders use values statements and codes of ethics to ensure everyone is following the same ethical codes, since ethics vary from person to person.

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Exercises 1. Provide a description and an example of each ethics level. 2. Create a personal values statement. This should include five to ten things you find important. Now assess your close relationships. Do they match? What can occur when your personal values do not match the values of another person? 3. In small groups, write values statements (at least five) for the company of your choice. 4. Referring back to our opening case, what do you think Jeremy should have done and why?

9.3 Making Ethical Decisions Learning Objective 1. Explain the models you can use for ethical decision making in leadership. Now that we have working knowledge of ethics, it is important to discuss some of the models we can use to make ethical decisions. Understanding these models can assist us in developing our leadership skills. These models will give you the tools to make good decisions, which will likely result in better ethical decision making and leadership in your organization. Note there are hundreds of models, but most are similar to the ones we discuss here. Most people use a combination of several models, which might be the best way to be thorough with ethical decision making. In addition, often we find ethical decisions to be quick. For example, if I am given too much change at the grocery store, I may have only a few seconds to correct the situation. In this case, our values and morals come into play to help us make this decision, since the decision making needs to happen fast. Before we look at decision-making models in ethics, it is important to recognize the many competing forces of ethics. For example, many organizations have a code of ethics; certain industries, such as accounting, also have a code of ethics; and we each have our personal code of ethics. The model shown in Figure 9.3, developed by Joan Poliner Shapiro and Jacqueline Stefkovich,[20] indicates the types of ethical codes we may deal with in our organizations. The number of ethical standards can create a balancing act when understanding the ethical environment we engage within. FIGURE 9.3 Types of Ethical Codes in Organizations An adaption of Shapiro and Stefkovich’s model, this model shows some of the various environments in which ethical leaders must operate.

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Video Clip 1 Howard Gardner, with the University of Massachusetts Law School, discusses ethics and youth.

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The Twelve Questions Model Laura Nash, an ethics researcher, created the Twelve Questions model as a simple approach to ethical decision making.[21] In her model, she suggests asking yourself questions to determine if you are making the right ethical decision. This model asks people to reframe their perspective on ethical decision making, which can be helpful in looking at ethical choices from all angles. Her model consists of the following questions:[22] 1. Have you defined the problem accurately? 2. How would you define the problem if you stood on the other side of the fence? 3. How did this situation occur in the first place? 4. To whom and what do you give your loyalties as a person and as a member of the company? 5. What is your intention in making this decision? 6. How does this intention compare with the likely results? 7. Who could your decision or action injure? 8. Can you engage the affected parties in a discussion of the problem before you make your decision? 9. Are you confident that your position will be as valid over a long period of time as it seems now? 10. Could you disclose without qualms your decision or action to your boss, your family, or society as a whole? 11. What is the symbolic potential of your action if understood? If misunderstood? 12. Under what conditions would you allow exceptions to your stance? Consider the situation of Catha and her decision to take home a printer cartridge from work, despite the company policy against taking any office supplies home. She might go through the following process, using the Twelve Questions model: 1. My problem is that I cannot afford to buy printer ink, and I have the same printer at home. Since I do some work at home, it seems fair that I can take home the printer ink. 2. If I am allowed to take this ink home, others may feel the same, and that means the company is spending a lot of money on printer ink for people’s home use.

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3. It has occurred due to the fact I have so much work that I need to take some of it home, and often I need to print at home. 4. I am loyal to the company. 5. My intention is to use the ink for work purposes only. 6. If I take home this ink, my action may show I am disloyal to the company and do not respect company policies. 7. The decision could injure my company and me in that if I get caught, I may get in trouble. This could result in loss of respect for me at work. 8. Yes, I could engage my boss and ask her to make an exception to the company policy, since I am doing so much work at home. 9. No, I am not confident of this. For example, if I am promoted at work, I may have to enforce this rule at some point. It would be difficult to enforce if I personally have broken the rule before. 10. I would not feel comfortable doing it and letting my company and boss know after the fact. 11. The symbolic action could be questionable loyalty to the company and lack of respect toward company policies. 12. An exception might be OK if I ask permission first. If I am not given permission, I can work with my supervisor to find a way to get my work done without having a printer cartridge at home. As you can see from the process, Catha came to her own conclusion by answering the questions involved in this model. The purpose of the model is to think through the situation from all sides to make sure the right decision is being made. As you can see, first an analysis of the problem itself is important. Determining your true intention when making this decision is an important factor in making ethical decisions. In other words, what do you hope to accomplish and who can it hurt or harm? The ability to talk with affected parties upfront is telling. If you were unwilling to talk with the affected parties, there is a chance (because you want it kept secret) that it could be the wrong ethical decision. Also, looking at your actions from other people’s perspectives is the core of this model.

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FIGURE 9.4 Tools in Making Ethical Decisions Some of the possible approaches to ethical decision making. No one model is perfect, so understanding all the possibilities and combining them is the best way to look at ethical decision making.

Josephson Institute of Ethics Model The Josephson Institute of Ethics uses a model that focuses on seven steps to ethical decision making. The steps consist of stop and think, clarify goals, determine facts, develop options, consider consequences, choose, and monitor/modify. As mentioned, the first step is to stop and think. When we stop to think, this avoids rash decisions and allows us to focus on the right decision-making process. It also allows us to determine if the situation we are facing is legal or ethical. When we clarify our goals, we allow ourselves to focus on expected and desired outcomes. Next, we need to determine the facts in the situation. Where are we getting our facts? Is the person who is providing the facts to us credible? Is there bias in the facts or assumptions that may not be correct? Next, create a list of options. This can be a brainstormed list with all possible solutions. In the next step, we can look at the possible consequences of our actions. For example, who will be helped and who might be hurt? Since all ethical decisions we make may not always be perfect, considering how you feel and the outcome of your decisions will help you to make better ethical decisions in the future. Figure 9.5 gives an example of the ethical decision-making process using Josephson’s model.

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FIGURE 9.5 Example of Josephson’s Model Dealing with the Ethical Dilemma of Illegally Downloading Music

Steps to Ethical Decision Making Many models provide several steps to the decision-making process. One such model was created in the late 1990s for the counseling profession but can apply to nearly every profession from health care to business.[23] In this model, the authors propose eight steps to the decision-making process. As you will note, the process is similar to Josephson’s model, with a few variations: 1. Step 1: Problem Identification. Sometimes just realizing a particular situation is ethical can be the important first step. Occasionally in our organizations, we may feel that it’s just the “way of doing business” and not think to question the ethical nature. 2. Step 2: Identify potential issues. Who could get hurt? What are the issues that could negatively impact people and/or the company? What is the worst-case scenario if we choose to do nothing? 3. Step 3: Review organizational guidelines. Does the organization have policies and procedures in place to handle this situation? For example, if a client gives you a gift, there may be a rule in place whether you can accept gifts and if so, the value limit of the gift you can accept. 4. Step 4: Understand how laws and regulations impact the situation. If the company doesn’t necessarily have a rule against it, could it be viewed as illegal? 5. Step 5: Seek feedback. Seek support from supervisors, coworkers, friends, and family, and especially seek advice from people who you feel are moral and ethical. 6. Step 6: Brainstorm courses of action. What are all the possible solutions for solving the problem? Brainstorm a list of solutions—all solutions are options during this phase.

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7. Step 7: List the consequences of the possible courses of action. What are both the positive and negative benefits of each proposed solution? Who can the decision affect? 8. Step 8: Make and implement decision. With the facts we have and the analysis done, choosing the best course of action is the final step. There may not always be a “perfect” solution, but the best solution is the one that seems to create the most good and the least harm. By providing training on ethical decision-making processes, we can be more certain our employees understand what is expected of them from an ethical standpoint. The US Department of Defense uses a similar framework when making decisions as discussed, shown in the “Department of Defense Decision-Making Framework” sidebar.

Department of Defense Decision-Making Framework The Department of Defense uses a specific framework to make ethical decisions.[24] 1. Define the problem. a. State the problem in general terms. b. State the decisions to be made. 2. Identify the goals. a. State short-term goals. b. State long-term goals. 3. List appropriate laws or regulations. 4. List the ethical values at stake. 5. Name all the stakeholders. a. Identify persons who are likely to be affected by a decision. b. List what is at stake for each stakeholder. 6. Gather additional information. a. Take time to gather all necessary information. b. Ask questions. c. Demand proof when appropriate. d. Check your assumptions. 7. State all feasible solutions. a. List solutions that have already surfaced. b. Produce additional solutions by brainstorming with associates. c. Note how stakeholders can be affected (loss or gain) by each solution. 8. Eliminate unethical options. a. Eliminate solutions that are clearly unethical. b. Eliminate solutions with short-term advantages but long-term problems. 9. Rank the remaining options according to how close they bring you to your goal, and solve the problem. 10. Commit to and implement the best ethical solution.

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Philosopher’s Approach Philosophers and ethicists believe in a few ethical standards, which can guide you in your ethical decision making. First, the utilitarian approach says that when choosing one ethical action over another, we should select the one that does the most good and least harm. For example, if the cashier at the grocery store gives me too much change, I may ask myself, if I keep the change, what harm is caused? If I keep it, is any good created? Perhaps the good created is that I am able to pay back my friend whom I owe money to, but the harm would be that the cashier could lose his job. In other words, the utilitarian approach recognizes that some good and some harm can come out of every situation and looks at balancing the two. In the rights approach, we look at how our actions will affect the rights of those around us. So rather than looking at good versus harm as in the utilitarian approach, we are looking at individuals and their rights when making our decision. For example, if I am given too much change at the grocery store, I might consider the rights of the corporation, the rights of the cashier to be paid for something I purchased, and my personal right to keep the change because it was their mistake. The common good approach says that when making ethical decisions, we should try to benefit the community as a whole. For example, if we accepted the extra change in our last example but donated it to a local park cleanup, this might be considered OK because we are focused on the good of the community, as opposed to the rights of just one or two people. The virtue approach asks the question, “What kind of person will I be if I choose this action?” In other words, the virtue approach to ethics looks at desirable qualities and says we should act to obtain our highest potential. In our grocery store example, if given too much change, someone might think, “If I take this extra change, this might make me a dishonest person—which I don’t want to be.” The imperfections in these approaches are threefold:[25] • Not everyone will necessarily agree on what is harmful versus good. • Not everyone agrees on the same set of human rights. • We may not agree on what a common good means. Because of these imperfections, it is recommended to combine several approaches discussed in this section when making ethical decisions. If we consider all approaches and ways to make ethical decisions, it is more likely we will make better ethical decisions. By making better ethical decisions, we improve our ability to be a good example to employees and others around us.

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utilitarian approach A source of ethical standards that says when choosing one ethical action over another, we should select the one that does the most good and least harm.

rights approach A source of ethical standards that says we look at how our actions will affect the rights of those around us.

common good approach A source of ethical standards that says when making ethical decisions, we should try to benefit the community as a whole.

virtue approach A source of ethical standards that looks at desirable qualities and says we should act to obtain our highest potential.

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The common-good approach to ethics is similar to Robin Hood’s approach: steal from the rich to give to the poor because that is better for the common good. What do you think are the challenges or downsides to this approach?

Source: © Shutterstock, Inc.

Key Takeaways • We can use a variety of models and frameworks to help us in ethical decision making. For example, one such model is the Twelve Questions model. This model encourages us to ask questions, such as who this decision affects, to determine the best ethical choice. • Josephson’s model consists of seven steps. They include stop and think, clarify goals, determine facts, develop options, consider consequences, choose, and monitor/modify. • Another model discussed has the following steps: identify the problem, identify the potential issues involved, review relevant ethical guidelines, know relevant laws and regulations, obtain consultation, consider possible and probable courses of action, list the consequences of the probable courses of action, and decide on what appears to be the best course of action. • Philosophers look at ethical frameworks following a utilitarian approach, common good approach, rights approach, and the virtue approach. These approaches provide a framework for sound, ethical decision making.

Exercises 1. Think of a recent ethical decision you have made. Using the model or framework of your choice, discuss how you went through the process of making a sound ethical decision. 2. What are the strengths and weaknesses of each model presented in this section? How can you combine them all to make ethical decisions?

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9.4 Social Responsibility Learning Objective 1. Explain and give examples of the levels of social responsibility in business. No chapter on ethics would be complete without a discussion on social responsibility. People, not only companies, can engage in social responsibility. This section first discusses social responsibility on the corporate level and then on the individual level. As we discussed with ethical company standards, it is difficult to separate corporate ethics and corporate social responsibility from individual ethics and social responsibility, since people are the ones making the corporate policies. For the purposes of this section, we first discuss social responsibility on the corporate level, followed by the individual level. Since social responsibility was first mentioned in the 1960s, companies have felt pressure from society to behave in a more socially responsible manner. Social responsibility is the duty of business to do no harm to society. In other words, in their daily operations, businesses should be concerned about the welfare of society and mindful of how their actions could affect society as a whole. We know that social responsibility doesn’t always happen, despite the seemingly best efforts of a company. For example, BP, formerly British Petroleum, has been charged with violations of gross negligence for safety violations and knowingly failing to maintain the Deepwater Horizon, which caused the death of eleven workers and leaked oil in the Gulf of Mexico for eighty-seven days.[26] The financial costs in this case total nearly $62 billion in stakeholders settlement costs,[27] plus the environmental, human, and reputation damage. In this case, and others like it, people question the ability of companies to fulfill their duty to society. Ideally, companies should look at four main areas of social responsibility and act ethically in all of them. In fact, even as individuals we should be aware of these areas of social responsibility, which we discuss later in the section. Those four areas are as follows:[28] 1. Economic aspects. Companies and leaders need to maintain strong economic interests so they can stay in business. Being profitable and providing value to shareholders is part of a company being socially responsible. 2. Legal aspects. A company and its leaders must follow the law and have a legal obligation to do so. For example, car companies are required to meet a certain level of emissions standards in car production. 3. Ethical aspects. Acting ethically means going above and beyond the legal requirements and meeting the expectations of society. In one example, Apple Inc. policies were questioned when it was discovered that there was a high suicide rate for workers producing iPhones in the Chinese Foxconn factory. As a result of the newfound awareness, Foxconn raised the salary for workers from ¥900 ($132) to ¥1,800 ($265).[29] In other words, the ethical expectations (and outrage) of society can encourage companies to act ethically. 4. Philanthropic aspects. This is the expectation that companies should give back to society in the form of charitable donations of time, money, and goods. For example, REI, a Seattle-based company, donates 3 percent of its profit and thousands of volunteer hours to nonprofit community groups each year.[30] Based on these areas, many believe businesses should go above and beyond the law to act ethically, meet the expectations of society, and even donate profit back to the communities in which the businesses operate. As we mentioned at the start of this section, businesses are not the only ones that engage in social responsibility. Since people run businesses, often we see business social responsibility initiatives that are directly related to individuals in the organization. For example,

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social responsibility The duty of business to do no harm to society.

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the Body Shop founder, Anita Roddick,[31] cared deeply for the environment and for animals and, as a result, her organization (now owned by Natura) focuses on products that are environmentally friendly and are not tested on animals. This is an example of how social responsibility in organizations can be a direct result of the individual leader’s care and concern. FIGURE 9.6 Four Areas of Social Responsibility Companies should strive to meet all areas of social responsibility.

Video Clip 2 Erik Joule, former senior vice president of merchandising and design for Levi Strauss, discusses social responsibility issues.

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More recently, social responsibility has been looked at as going above and beyond even philanthropy. Past ideas on social responsibility implied that businesses must trade off social responsibility for profits—in other words, in order to make profit, businesses had to actually harm society. This way of thinking has changed with the idea of creating shared value. This concept, created by Michael E. Porter and Mark R. Kramer of Harvard University, attempts to dispel this myth by presenting a new view on social responsibility.[32] Creating shared value (CSV) is the premise that companies and the community are tied closely together, and if one benefits, they both benefit. For example, if companies donate money to schools, it actually benefits both the community and the company in that a better educated workforce can be profitable for the company in the long run. The idea that social responsibility is something that costs companies money is no longer in favor. In fact, behaving socially responsibly can help a company save money. Small things, such as turning off computers at night, result in cost savings in electricity and are the right thing to do from a social responsibility perspective, too. As Porter and Kramer have pointed out through their research, benefiting the community does not have to be at the cost of the company or society; both can work in tandem. As we have already discussed, even though we say companies are socially responsible (or not), leaders in the organization are the ones who create policies surrounding social responsibility efforts. Individual social responsibility (ISR) is defined as an individual being aware of how personal actions affect the community. This is an important aspect in leadership, since ISR can begin with the leader, but the positive example can filter into the organization. ISR can include the following: 1. Performing charitable acts. This can include philanthropy such as the donation of money. 2. Working for the community. This can include volunteering at a food bank or animal shelter or donating blood. 3. Supporting issues that affect society. This can include advocating for political or social issues that can help others—for example, advocating for child labor laws, purchasing fair trade products, and recycling. 4. Observing individual ethics. These can include integrity, honesty, and the “golden rule”: treat others how you wish to be treated. This might mean with empathy and a sense of fairness.

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creating shared value (CSV) The premise that companies and the community are tied closely together, and if one benefits, they both benefit.

individual social responsibility (ISR) An individual’s awareness of how personal actions affect the community.

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FIGURE 9.7 Examples of Individual Social Responsibility Individual social responsibility (ISR) can involve many different aspects, as seen here.

Engaging in ISR activities such as these can help us not only develop our leadership skills but also create a positive reputation for our organization. In addition, we can build our self-esteem and self-perception by helping others[33] and engaging in socially responsible activities. As we have discussed throughout the chapter, to improve leadership, we must understand that ethics and social responsibility are important to leadership.

Key Takeaways • Social responsibility is defined as the duty of business to do no harm to society. • There are four levels of social responsibility: economics, or the responsibility of the business to be profitable; the responsibility to meet legal obligations—businesses must comply with the law and regulations; the responsibility to act ethically and morally and to choose the action that causes the least, if any, harm; and finally, philanthropic responsibility is the idea that businesses should give back, in time, money, or goods, to the community in which they serve. • People used to believe that the relationship between social responsibility and the community was an inverse one, where if companies benefited society, it came at an economic cost to them. Recent research has pointed out that, in fact, creating shared value (CSV) actually benefits both parties and not at a cost to one or the other. • ISR, or individual social responsibility, refers to our awareness of how our actions affect the community as a whole. ISR can include volunteering time, giving money, and standing up for issues that affect the rights of others.

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The Ethical Leader

Exercises 1. Name and discuss at least two companies you believe to be socially responsible. Address each of the four areas of social responsibility in your discussion. 2. Is it possible for companies to be socially responsible in one area but not another? Provide an example and explain. 3. As a leader, how can you encourage social responsibility among your employees? Give at least two examples.

9.5 Chapter Summary and Case Chapter Summary • Ethics is defined as a set of values that define right and wrong. Values are standards or principles that a person finds desirable. • There are four levels of ethical issues. First, societal issues deal with bigger items such as taking care of the environment, capitalism, or embargos. Sometimes companies get involved in societal-level ethics based on their company policies—for example, not using child labor in overseas factories. • The second level of ethical issues is stakeholder issues. These are the things that a stakeholder might care about, such as product safety. • Internal policy issues are the third level of ethical issues. This includes things like pay and how employees are treated. • Personal-level ethical issues refer to how we treat others within our organization. • There are sources of personal ethics and sources of company ethics. Our personal sources of ethics may come from models we had in our childhood, such as parents, or they could come from experiences, religion, or culture. Companies use values statements and codes of ethics to ensure everyone is following the same ethical codes, since ethics vary from person to person. • We can use a variety of models and frameworks to help us in ethical decision making. For example, the Twelve Questions model encourages us to ask questions, such as whom this decision affects, to determine the best ethical choice. • Josephson’s model consists of seven steps. They include stop and think, clarify goals, determine facts, develop options, consider consequences, choose, and monitor/modify. • Another model discussed has the following steps: identify the problem, identify the potential issues involved, review relevant ethical guidelines, know relevant laws and regulations, obtain consultation, consider possible and probable courses of action, list the consequences of the probable courses of action, and decide on what appears to be the best course of action. • Philosophers look at ethics in a framework following a utilitarian approach, common good approach, rights approach, and the virtue approach. These approaches provide a framework for sound ethical decision making. • Social responsibility is defined as the duty of business to do no harm to society.

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• There are four levels of social responsibility. First is economics, or the responsibility of the business to be profitable. Second is the responsibility to meet the legal obligations; businesses must comply with the law and regulations. Next, companies have a responsibility to act ethically and morally and to choose the action that causes the least, if any, harm. Finally, philanthropic responsibility is the idea that businesses should give back—in time, money, or goods—to the community in which they serve. • People used to believe that the relationship between social responsibility and the community was an inverse one, where if companies benefited society, it came at an economic cost to them. Recent research has pointed out that, in fact, creating shared value (CSV) actually benefits both parties and not at a cost to one or the other.

Chapter Case Damon has just been promoted to the position of program manager in his digital marketing agency and is managing a team of four people. As program manager, he is responsible for working with vendors to provide services to his clients. One part of his job is to screen potential vendors for clients and then make overall recommendations and provide project plans to the client based on his selected vendors. This relationship is important because the client places an immense amount of trust in the vendor choices made. Damon, with his straightforward communication style, is talented in choosing the best vendors for the client, which was one reason he was hired. The nature of the job requires Damon and his team to often meet with potential vendors and salespeople. One late afternoon, a vendor meeting with Valerie runs into dinnertime. Valerie asks Damon and his team if they want to have a drink and some appetizers while they continue discussing the services the vendor has to offer. The six of them go next door to a pub and continue their discussion. When the check comes, Damon picks it up and Valerie says, “No, you can’t pay for this. I got it.” Damon hands her the check and they all thank Valerie for dinner. Later that week, after Damon and his team have met with all possible vendors for the project, they decide to go with Valerie’s company. They provide the highest-quality services at the best price. In fact, their pricing is about 10 percent less, and the services they will be providing get rave reviews from other clients. Damon is confident it is the right choice. When Damon goes to the project manager, Janet, with his team’s decision, Janet says she prefers not to work with that vendor and then asks, “Didn’t Valerie take you and the team to dinner the other night?” Damon replies, “Yes, but that isn’t why we chose them to be our vendor for this project.” Janet doesn’t respond and turns back to her computer with a loud sigh. 1. What is the potential conflict of interest in this case? 2. How can outside perception impact our ethical choices as leaders? Should outside perception affect our choices at work? 3. Using one of the models discussed in the chapter, address how Damon should have gone about making this ethical choice.

Endnotes 1. Brown, M. (2010). Ethics in organizations. Santa Clara University. Retrieved from http://www.scu.edu/ethics/publications/iie/v2n1 2. Sims, R. R. (1991). The institutionalisation of organisational ethics. Journal of Business Ethics, 10(7), pp. 493–506. 3. Rao Rama, V. S. (2009, April 17). Four levels of ethical questions in business. Citeman Network. Retrieved from http://www.citeman.com/5358four-levels-of-ethical-questions-in-business.html 4. Olenick, G. (2017 May). Scottrade hit with new class action suit over 2013 Data Breach. SC Media. Retrieved from https://www.scmagazine.com/ scottrade-hit-with-new-class-action-suit-over-2013-data-breach/article/ 656029/

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5. San Roman, G. (2017 May) Disabled Black Woman Sues Disney for Wrongful Firing. The OC Weekly. Retrieved from http://www.ocweekly.com/news/lawsuit-disney-wrongfully-fired-disabled-black-worker-8100300 6. Bribe study singles out 3 countries. (n.d.). New York Times. Retrieved from http://www.nytimes.com/2006/10/04/business/worldbusiness/04ihtbribes.3031969.html?_r=1 7. Craig, T. (2009, July 8). DC council member Barry hired girlfriend as contractor. Washington Post. Retrieved from http://www.washingtonpost. com/wp-dyn/content/article/2009/07/07/AR2009070702123.html 8. Klosterman, C. (2012, November 12). The Lance Armstrong conundrum. New York Times. Retrieved from http://www.nytimes.com/2012/11/11/ magazine/the-lance-armstrong-conundrum.html?_r=0 9. Margolin, E. (2012, December 20). Petraeus’ reputation takes another blow. MSNBC. Retrieved from http://tv.msnbc.com/2012/12/20/ petraeus-reputation-takes-another-blow; Pearson, M. (2012, November 14). The Petraeus affair: A lot more than sex. CNN. Retrieved April 17, 2014, from http://www.cnn.com/2012/11/12/us/petraeus-cia-resignation

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10. Zeller T. (2002). The Nation; The Tao of Enron: Well, It Sounded Good. New York Times. Retrieved January 11, 2018 from http://www.nytimes.com/2002/02/24/weekinreview/the-nation-the-taoof-enron-well-it-sounded-good.html. 11. Weiss J. (2009). Business Ethics: A Stakeholder and Issues Management Approach, p. 30. 12. Costco. (2017). Career opportunities for you. Retrieved from http://www. costco.com/jobs.html 13. Whole Foods Market. (n.d.). Our core values. Retrieved February 25, 2012, from http://www.wholefoodsmarket.com/company/corevalues.php 14. Banner Bank. (n.d.). Vision, mission, and values statements. Retrieved from http://www.bannerbank.com/ABOUTUS/VISION/Pages/default.aspx 15. Spiro, J. (2010, February 23). How to write a code of ethics for business. Inc. Retrieved from http://www.inc.com/guides/how-to-write-a-code-ofethics.html 16. Grant, A., & Singh, J. (2011, March 30). The problem with financial incentives—and what to do about it. Knowledge at Wharton. Retrieved February 5, 2013, from http://knowledge.wharton.upenn.edu/article. cfm?articleid=2741 17. Schweitzer, M., Ordonez, L., & Doumba, B. (2004). Goal setting as a motivator of unethical behavior. Academy of Management Journal, 47(3), pp. 422–432. 18. Gruley, B, Voreacos, D & Deaux, J. (2017 June) The Whistleblower Behind Caterpillar’s Massive Tax Headache Could Make $600 Million. Bloomburg. Retrieved from https://www.bloomberg.com/news/features/ 2017-06-01/the-whistleblower-behind-caterpillar-s-massive-taxheadache-could-make-600-million 19. Sarbanes-Oxley Act. (2002), section 806 (Sec. 1514A). 20. Shapiro, J. P., & Stefkovich, J. (2010). Ethical leadership and decision making in education. London: Routledge. 21. Josephson Institute. (2011, March 1). The twelve questions of ethics. Retrieved from http://josephsoninstitute.org/business/blog/2011/03/12questions-for-examining-the-ethics-of-a-business-decision, which is based on Nash, L. (1981). Ethics without the sermon. Harvard Business Review, 59, pp. 79–90. 22. Nash, L. (1981). Ethics without the sermon. Harvard Business Review, 59, pp. 79–90.

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23. Based on Corey, G., Corey, M. S., & Callanan, P. (1998). Issues and ethics in the helping professions. Toronto: Brooks; Syracuse University School of Education. (n.d.). An ethical decision-making model. Retrieved from http://soe.syr.edu/academic/counseling_and_human_services/modules/ Common_Ethical_Issues/ethical_decision_making_model.aspx 24. US Department of Defense. (1999). Joint ethics regulation (DoD 5500.7-R). Retrieved February 24, 2012, from http://www.dod.mil/dodgc/defense_ ethics/ethics_regulation; Office of the Army General Counsel. (n.d.). Public service is a public trust. Retrieved May 14, 2014, from http://ogc.hqda. pentagon.mil/EandF/Documentation/ethics_material.aspx 25. Santa Clara University. (n.d.). A framework for thinking ethically. Retrieved February 24, 2012, from http://www.scu.edu/ethics/practicing/decision/ framework.html 26. BP trial will push gross negligence claim. (2012, February 24). Retrieved from http://www.upi.com/Business_News/2012/02/24/BP-trialwill-push-gross-negligence-claim/UPI-22771330126860 27. Bomey, N. (2016 July) Deepwater Horizon costs total $62b. USA Today. Retrieved from https://www.usatoday.com/story/money/2016/07/14/bpdeepwater-horizon-costs/87087056/ 28. Carroll, A. (1991, July–August). The pyramid of corporate social responsibility. Business Horizons. Retrieved from http://cf.linnbenton.edu/bcs/bm/ gusdorm/upload/Pyramid of Social Responsibility.pdf 29. Eaton, K. (2012, February 24). Apple and Foxconn’s ethics hit your gadget prices. Fast Company. Retrieved from http://www.fastcompany.com/ 1819874/apple-and-foxconns-ethics-hit-your-gadgetprices?partner=gnews 30. REI. (n.d.). We care about what you care about. Retrieved from http://rei. jobs/care 31. Lyall, S. (2007, September 12). Anita Roddick, founder of the Body Shop, dies at 64. New York Times. Retrieved from http://www.nytimes.com/ 2007/09/11/style/11iht-obits.4.7467721.html 32. Porter, M. E., & Kramer, M. R. (2011, January). Creating shared value. Harvard Business Review. Retrieved from http://hbr.org/2011/01/the-bigidea-creating-shared-value 33. Bénabou, R., & Tirole, J. (2010). Individual and corporate social responsibility. Economica, 77(305), pp. 1–19.

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CHAPTER 10

Operational Leadership Considerations We all live with the objective of being happy; our lives are all different and yet the same. — Anne Frank Some of the secret joys of living are not found by rushing from point A to point B, but by inventing some imaginary letters along the way. — Douglas Pagels

10.1 Hiring Multiculturally You are exhausted already on Wednesday. When you get home, you drop your work bag and realize you forgot to send an e-mail to your project manager about an upcoming project. You groan as you run downstairs to your computer. The clock says 7:03 p.m. and you feel like you haven’t had a minute to yourself since this morning. As you think about your day, you realize, you haven’t! It is your company’s busy time, so the last few days have been booked with meetings and a huge project with a Friday deadline. You are pitching in to help your employees finish on time. You send the e-mail, make a quick sandwich for dinner, and sit back down at your computer. You hope to get a few more things done on the project before tomorrow morning. At 10:30 p.m., you log off of your computer, go to bed, and have a hard time falling asleep because you are thinking about the week’s to-do list. Does this sound like someone you know? Many people today are struggling with the ability to manage time with so much work to do and personal/family lives to manage. Technology has certainly made working longer hours easier, as we are always in touch with the office. What we can tend to forget is the importance of managing our stress levels so we can function more effectively. In addition, as an organizational leader, consider the message you may be sending to your employees by sending e-mails late in the evening. This chapter discusses some of the day-to-day leadership considerations surrounding diversity laws as they relate to employees, stress, and power.

10.2 Company Culture Learning Objective 1. Define and explain the components of company culture.

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The focus of this chapter is to address some of the legal issues you may handle as a leader on a day-to-day basis. Things such as diversity, power and privilege, or stress can create issues within the company culture—resulting in a less than ideal motivating culture for employees. The purpose of this chapter is to discuss aspects of company culture, monitor this culture, and then discuss other issues that can affect the culture of the organization, such as privacy issues. company culture Application of an organization’s values.

First, we can define company culture as the application of values within an organization. For example, Enron was found to put high value on the bottom line and, as a result, the employees focused on the best way to earn money—resulting in dishonesty and illegal actions, as we talked about in the Chapter 9. Enron, in a sense, created a company culture that encouraged employees to act unethically because of the focus on profit. It defines the values of the organization, and all rules, policies, procedures, and hiring should be done based on this set of values. Many organizations misinterpret culture for a variety of “things” placed in the office space. Many think an Xbox 360, game room, free soda, or casual dress in the workplace creates the company culture, when, in fact, the company culture goes much deeper than this. Research performed by Mitchell Harper expresses creation of a company culture as including the “things” mentioned earlier, but he says it is a must to go above and beyond this “window dressing.”[1] His suggestions include the following: Provide things to make your team comfortable at work—for example, ergonomic chairs, coffee, soft drinks, or other items that can make them happy to be there. Next, look at the mission statement as a mission. Rather than perceive the statement as just that—a statement—go deeper and “live” the mission. Company values should reflect the organization. Everyone should know the company values, why they are important, and how each employee can contribute to the company values. The company values should reflect the reason your company is in business. Focus on free speech and trust among employees. Allow people to express themselves and act on good ideas. Trust your team to take risks. Celebrate wins. Recognize individuals and teams for their efforts. Creating a motivating company culture can be the first step to being successful as a leader. However, how do we know if our culture is not working? Creating the company culture might be actually easier than recreating a company culture. As new people are hired and employees retire or move on, it is likely that the company culture is going to change as well. The best way to monitor these changes is to focus on hiring people who fit within the mission and values of the organization. In other words, to keep the company culture, continue hiring people who embody those original values. Some things can disrupt our company culture. For example, lack of diversity, stress, lack of understanding of employment laws by management (resulting in unfair treatment), and inappropriate use of power within the organization can make or break the culture of the company. Since you have worked hard as a leader to create a positive company culture, the following sections talk about some things to be aware of when monitoring the effectiveness of your company culture.

Key Takeaways • Company culture is the shared values of the organization. Company culture should be built upon the mission and values of the organization. • Focusing on areas such as living the mission, trusting employees to take risks, creating a fun and interesting visual environment, and allowing employee opinions is an important aspect to creating company culture.

Exercise 1. Perform an Internet search on company culture. What are examples of companies with a good culture? What about these companies makes the culture positive?

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10.3 Diversity and Multiculturalism Learning Objectives 1. Define, explain, and identify your power and privilege. 2. Provide reasoning as to why diversity is important in successful management. As organizational leaders, it is our responsibility to make sure individuals are treated fairly, as we also must follow the law. This chapter focuses on some of those challenges, which include diversity, legal considerations, stress management, and management of power in the workplace. Many people use the terms diversity and multiculturalism interchangeably when, in fact, there are major differences between the two. Diversity is defined as the differences between people. These differences can include race, gender, sexual orientation, religion, background, socioeconomic status, and much more. Diversity, when talking about it from the workplace perspective, tends to focus more on a set of policies to meet government-mandated diversity compliance standards.

diversity

Multiculturalism goes deeper than diversity by focusing on inclusiveness, understanding, and mutual respect. Multiculturalism also looks at unequal power distribution in society; this is a theory developed by a number of researchers, including Allan Johnson.[2] While theories on multiculturalism are useful, we can also look at how to measure our ability to work effectively in a multicultural environment by looking at cultural competency—or our ability to work in a multicultural workplace. Cultural competency both honors diversity and looks to create a workplace that has individuals with cultural competency. First, though, why do we talk about cultural competency at all? In a report called “The 2007 State of Workplace Diversity Management Report,”[3] most managers said that diversity in the workplace is

multiculturalism

The real or perceived differences between individuals.

Looks at power and privilege differences in society.

cultural competency The measurement of how well a person works within a diverse and multicultural work environment.

1. not well defined or understood at work; 2. focuses too much on compliance; and 3. places too much emphasis on gender and ethnicity.

Power and Privilege As defined in this chapter, diversity focuses on the “otherness” or differences between individuals and has a goal of making sure, through policies, that everyone is treated the same. While this is the legal and the right thing to do, multiculturalism looks at a system of advantages based on race, gender, and sexual orientation called power and privilege. In this system, the advantages are based on a system in which a specific race, gender, or sexual orientation is predominant in setting societal rules and norms. The interesting thing about power and privilege is that if you have it, you may not initially recognize it, which is why we can call it invisible privilege. Recognizing power and privilege can help you begin to understand how you relate to others. Here are some examples of invisible privilege: 1. Race privilege. Let’s say you (a Caucasian) and your friend (an African American) are having dinner together, and when the bill comes, the server gives the check to you. While this may not seem like a big issue, it assumes you (being Caucasian) are the person paying for the meal. This type of invisible privilege may not seem to matter if you have that privilege, but if you don’t, it can be infuriating.

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power and privilege A system of advantages based on race, gender, sexual orientation, and other components of diversity.

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2. Social class privilege. When Hurricane Katrina hit New Orleans in 2005, many people from outside the storm area wondered why so many people stayed in the city, not even thinking about the fact that some people couldn’t afford the gas to put in their car to leave. Social class isn’t just about income; it can also include job title or level of education. Many managers and leaders have social class privilege (regardless of the amount of money they make) because of their position. 3. Gender privilege. This refers to privileges one gender has over another—for example, the assumption that a female will change her name to her husband’s when they get married. 4. Sexual orientation privilege. If I am heterosexual, I can put a picture of my partner on my desk without worrying about what others think. I can talk about our vacations together or experiences we’ve had without worrying what someone might think about my relationship. This is not the case for many gay, lesbian, and transgendered people and their partners. Often the privilege we have is considered invisible because it can be hard to recognize one’s own privilege based on race, gender, or social class. Many people utilize the colorblind approach, which says, “I treat everyone the same,” or “I don’t see people’s skin color.” In this case, the person is showing invisible privilege and thus ignoring the privileges he or she receives because of race, gender, or social class. While it appears this approach would value all people equally, it doesn’t, because people’s different needs, assets, and perspectives are disregarded by not acknowledging differences.[4] Another important aspect of power and privilege is the fact that we may have privilege in one area and not another. For example, I am a Caucasian female, which gives me race privilege but not gender privilege. Important to note here is that the idea of power and privilege is not about “white male bashing” but understanding our stereotypes and societal systems of advantage so that we can be more inclusive with our coworkers and employees. So what does this all mean in relation to our roles as leaders? It means we can combine the understanding of certain policies that allow for power and privilege, and by understanding differences between us, we may be able to eliminate or at least minimize issues that contribute to invisible privileges that could lead to unfair organizational practices. Besides this, one of the best things we can do for our organizations is to have a diverse workforce, with people from a variety of perspectives. This diversity leads to profitability and the ability to better serve customers. Although many books discuss laws relating to diversity, not many actually describe why diversity is necessary in the workplace. Here are a few main reasons: 1. It is the law. 2. We can better serve customers by offering a broader range of services, such as being able to speak a variety of languages and understanding other cultures. 3. We can better communicate with one another (saving time and money) and customers. 4. With a multicultural perspective, we can create better ideas and solutions. Many organizations have policies that, on the surface, appear inclusive. It is important to recognize that policies are one thing, but there are ways to subtly discriminate. For example, assume you play a sport like basketball, bowling, or golf with some of the guys from work every Saturday morning. When a leadership position is announced, you choose to hire one of the individuals you play golf with. Because of power and privilege issues (social class = able to afford to play golf), he probably had the advantage in obtaining the job. These subtle ways of exclusion should be recognized and addressed in every organization.

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Chapter 10

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Video Clip 1 This video discusses some racial stereotypes and white privilege through “on the street” interviews.

View in the online reader

Key Takeaways • Diversity is the real or perceived differences between individuals. This can include race, gender, sexual orientation, size, cultural background, and much more. • Multiculturalism is a term that is similar to diversity, but it focuses on development of a greater understanding of how power in society can be unequal due to race, gender, sexual orientation, power, and privilege. • Power and privilege is a system of advantages based on one’s race, gender, and sexual orientation. This system can often be invisible (to those who have it), which results in one race or gender having unequal power in the workplace. Of course, this unequal power results in unfairness, which may be of legal concern. • Diversity is important to the success of organizations. Many studies have shown a direct link between the amount of diversity in a workplace and the company’s success.

Exercises 1. Perform an Internet search to find a specific diversity policy for an organization. What is the policy? Do you think it is effective? What might make the policy ineffective? 2. Visit the website http://www.diversityinc.com and find the latest “Top 50 List.” What criteria are used to determine the rankings? What are the top five companies for the current year?

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10.4 Employee Law Learning Objective 1. Explain the various types of laws leaders should be concerned about, as they relate to employees. As we already know, it is in a leader’s best interest to hire and promote a multicultural and diverse workforce. Although most people believe in fairness, sometimes people are still discriminated against at work. As a result, a federal agency has been established to ensure employees have a place to file complaints should they feel discriminated against.

Equal Employment Opportunity Commission (EEOC) Equal Employment Opportunity Commission (EEOC) A federal agency charged with the task of enforcing federal employment discrimination laws.

The Equal Employment Opportunity Commission (EEOC) is a federal agency charged with the task of enforcing federal employment discrimination laws. The laws include those that protect people from discrimination in all areas of employment, such as discrimination based on race, color, religion, sex, national origin, age, and disability. People who have filed a discrimination charge are also protected against discrimination under the EEOC. This agency covers not only discrimination in hiring but also discrimination in all types of work situations, such as firing, promotions, harassment, training, wages, and benefits. Companies must have a minimum number of employees to be covered by the law. The minimum number varies depending on the type of industry. The EEOC has the authority to investigate charges of discrimination against employers. The agency investigates the claims, makes a finding, and then tries to settle the charge. If they are unsuccessful in settling the charge, the EEOC has the right to file a lawsuit on behalf of the complainants. The EEOC has headquarters in Washington, DC, with fifty-three field offices throughout the United States. It is necessary to mention here that while there is a legal compliance concern, as discussed, it is in the leader’s best interest to hire a diverse workforce. So while we can discuss the legal aspects, remember that the purpose of having a diverse workforce is not just to meet EEOC requirements but to create a more profitable workplace that better serves customers. TABLE 10.1 EEOC and Requirements for Employers Requirements by EEOC Post federal and state EEOC notices File yearly EEO-1 report Keep copies of documents on file

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Process for Investigation 1. EEOC complaint is filed. 2. EEOC notifies the organization of the charges. 3. EEOC acts as a mediator between the employee and the employer to find a solution. 4. If step 3 is unsuccessful, the EEOC will initiate an investigation. 5. EEOC makes a determination, and then the employer has the option of remedying the situation or faces a potential lawsuit.

EEOC Federal Legislation While the EEOC is the larger governing body, many pieces of legislation relating to multicultural practices are part of the EEOC family of laws. Many of these laws began with Title VII of the Civil Rights Act in 1964. This act, enforced by the EEOC, covers several areas in which discrimination was rampant. However, a bona fide occupational qualification (BFOQ) is a quality or attribute employers are allowed to consider when making decisions during the selection process. Examples of BFOQs are a maximum age limit for airline pilots for safety reasons and a Christian college’s requirement that the president of the college be Christian. These EEOC laws relate to a number of specific groups in the workplace, which we discuss next.

Age Age discrimination involves treating someone less favorably because of his or her age. Created in 1967, the Age Discrimination in Employment Act (ADEA) is enforced by the EEOC. This law covers people who are age forty or older. The law covers any aspect of employment such as hiring, firing, pay, job assignments, promotions, layoffs, training, fringe benefits, and any other conditions or terms of employment.

Disability The Americans with Disabilities Act (ADA) prohibits discrimination against those with disabilities and is enforced by the EEOC. Discrimination based on disability means treating a qualified person unfavorably because of a disability. For example, if someone has HIV/AIDS, the employee cannot be treated unfavorably. Employees are required to be provided reasonable accommodation if they have a disability, unless the accommodation required would cause significant difficulty or expense on the part of the employer. A reasonable accommodation is defined by the EEOC as any change in the work environment or in the way things are customarily done that enables an individual with a disability to enjoy equal employment opportunities. A reasonable accommodation might include making the workplace accessible for wheelchair use or providing equipment for someone who is hearing or vision impaired.

Equal Pay / Compensation The basis of this law is that people receive equal pay for the same type of work, and the law specifically addresses gender pay differences. Rather than job title, job content is used to determine if the job entails the same work. In addition to covering salary, it deals with overtime pay, bonus, stock

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Title VII of the Civil Rights Act This act, passed in 1964 and enforced by the EEOC, covers several areas of discrimination, including age, race, and sex.

bona fide occupational qualification (BFOQ) A quality or attribute employers are allowed to consider when making decisions during the selection process.

Age Discrimination in Employment Act (ADEA) Created in 1967 and enforced by the EEOC, this law prohibits discrimination based on age and covers people who are age forty or older.

Americans with Disabilities Act (ADA) Prohibits discrimination against those with disabilities and is enforced by the EEOC.

reasonable accommodation A change in the work environment or the way things are customarily done that enables an individual with a disability to enjoy equal employment opportunities.

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options, profit sharing, and other types of bonus plans such as vacation and holiday pay. If inequality in pay is found, the employer cannot reduce the wages of either sex to equalize the pay.

Genetic Information This law is one of the newer EEOC laws, which took effect in November 2009. The EEOC’s definition of genetic information includes family medical information or information about the manifestation of a disease or disorder in an individual’s family. This information cannot be used to discriminate against an employee who has an increased risk of getting a disease and may make health-care costs more expensive for the organization. For example, an employer cannot discriminate against an employee whose family has a history of diabetes or cancer. In addition, the employer is not allowed to seek out genetic information by requesting, requiring, or purchasing this information. This law also covers how information about genetics should be kept. For example, genetic information must be kept separate from an employee’s regular file.

National Origin It is illegal to treat people unfavorably because they are from a particular country or part of the world, because of their accent, or because they appear to be of a particular descent (even if they are not). The law protecting employees based on national origin refers to all aspects of employment: hiring, firing, pay, job assignments, promotions, layoffs, training, and fringe benefits. An employer can require an employee to speak English only if it is necessary to perform the job effectively. An English-only policy is allowed only if it is needed to ensure the safe or efficient operations of the employer’s business. A manager may not base an employment decision on a foreign accent, unless the accent seriously interferes with job performance.

Pregnancy Family and Medical Leave Act (FMLA) This law gives twelve weeks of unpaid leave for childbirth, adoption, or caregiving of sick family members.

This section of the EEOC refers to the unfavorable treatment of a woman because of pregnancy, childbirth, or a medical condition related to pregnancy or childbirth. The Pregnancy Discrimination Act of 1978, added to the Civil Rights Act of 1964, is enforced by the EEOC. A female who is unable to perform her job due to pregnancy must be treated the same as other temporarily disabled employees. For example, modified tasks or alternative assignments should be offered. This law refers not only to hiring but also to firing, pay, job assignments, promotions, layoffs, training, and fringe benefits. In addition to this law against discrimination of pregnant women, there is the Family and Medical Leave Act (FMLA), which is enforced by the US Department of Labor.[5] The FMLA requires companies with fifty or more employees to provide twelve weeks of unpaid leave for the following: 1. Birth and care of a newborn child 2. Care of an adopted child 3. Care for immediate family members (spouse, child, or parent) with a serious health condition 4. Medical leave for an employee who is unable to work because of a serious health condition In addition to the company size requirement, the employee must have worked at least 1,250 hours over the past twelve months.

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Race/Color This type of discrimination refers to treating someone unfavorably because he or she is of a certain race or because of certain characteristics associated with race. These characteristics might include hair texture, skin color, or facial features. Discrimination can still occur when the person discriminating is the same race or color of the person who is being discriminated against. EEOC law also protects people who are married to or associated with someone of a certain race or color. As with the other types of antidiscrimination laws we have discussed, this law refers not only to the initial hiring but also to firing, pay, job assignments, promotions, layoffs, training, and fringe benefits.

Religion This part of the EEOC refers to treating people unfavorably because of their religious beliefs. This law requires a company to reasonably accommodate an employee’s religious beliefs or practices, unless doing so would burden the organization’s operations. For example, allowing flexible scheduling during certain religious periods of time might be considered a reasonable accommodation. This law also covers accommodations in dress and grooming, such as a headscarf, religious dress, or uncut hair and a beard in the case of a Sikh. Ideally, the employee or applicant would notify the manager that he or she needs such an accommodation for religious reasons, and then a discussion of the request would occur. If it wouldn’t pose hardship, the employer should honor the request. If the request might cause a safety issue, decrease efficiency, or infringe on the rights of other employees, it may not be honored.

Sex and Sexual Harassment Sex discrimination involves treating someone unfavorably because of his or her sex. As with all EEOC laws, this relates to hiring, firing, pay, job assignments, promotions, layoffs, training, and fringe benefits. This law directly ties into sexual harassment laws, which include unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature. The victim can be male or female, and sexual harassment can occur female to female, female to male, male to female, and male to male.

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Video Clip 2 This video outlines a sexual harassment lawsuit at Yale University. The video shows that the lawsuit blamed Yale not for the harassment itself but for not taking a harder stand against this type of harassment.

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Retaliation In all the laws mentioned, the EEOC’s set of laws makes it illegal to fire, demote, harass, or retaliate against people because they filed a charge of discrimination, complained about discrimination, or participated in employment discrimination proceedings. Perhaps one of the most high-profile sexual harassment and retaliation cases was that of Sanders v. Thomas. Isiah Thomas, then coach of the professional basketball team the New York Knicks, fired Anucha Browne Sanders because she hired an attorney to file sexual harassment claims charges. The jury awarded Browne Sanders $11.6 million in punitive damages because of the hostile work environment Thomas created and another $5.6 million because Browne Sanders was fired for complaining.[6] A portion of the lawsuit was to be paid by Madison Square Garden and James Dolan, chairman of Cablevision, the parent company of Madison Square Garden and the Knicks. Browne Sanders’s lawyers successfully argued that the inner workings of Madison Square Garden were hostile and lewd and that the former marketing executive of the organization subjected her to hostility and sexual advances. Thomas left the organization as coach and president in 2008. As in this case, there are large financial and public relations penalties not only for sexual harassment but also for retaliation after a harassment suit has been filed.

Additional Perspectives Gender Egalitarianism in Leadership Gender egalitarianism refers to the extent to which a collective group minimizes gender inequality. Low gender egalitarianism societies are those where women tend to have little say in decisions, where fewer women hold positions of authority, and where females generally have lower levels of education. Assume you are from a high gender egalitarianism culture but will be working with a contracted group from a country with lower gender egalitarianism. Most of your managers are female and will be directing the contracted group. What are some ways you might be able to handle this situation, both with your managers and with the contracted group?

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Military Service The Uniformed Services Employment and Reemployment Rights Act (USERR) protects people who serve or have served in the armed forces, reserves, National Guard, or other uniformed services. The act ensures these individuals are not disadvantaged in their civilian careers because of their service. It also requires that they be reemployed in their civilian jobs upon return to service and prohibits discrimination based on past, present, or future military service. While this list of laws may feel daunting, as a leader and manager it is important to understand them. We should also tie this into the discussion on diversity and multiculturalism—in that it is in the manager’s best interest to want to hire a diverse workforce. Sometimes lack of multicultural understanding prevents an organization from finding an appropriate balance, which is the reason federal laws are in place. Also note that some states may have stricter standards than federal laws, so the leader or manager should be aware of both.

Key Takeaways • The Equal Employment Opportunity Commission (EEOC) is a federal agency charged with the development and enforcement of laws relating to multiculturalism and diversity in the workplace. • The EEOC covers discrimination based on several areas. Companies cannot discriminate based on age; EEOC law covers people who are forty years or older. • Employers cannot discriminate against people with disabilities and must provide reasonable accommodations, such as the addition of a wheelchair ramp, to those with disabilities. • Equal pay refers to the fact that people should be paid the same amount for performing the same type of work, even if the job title is different. • The newest addition to EEOC law prohibits discrimination based on genetic information, such as a history of cancer in a family. • Unfavorable treatment of people because they are from a particular country or part of the world or have an accent is covered by the EEOC. An organization cannot require people to speak English unless it is a requirement for the job or is needed for safety and efficient operation of the organization. • Women can’t be discriminated against because they are pregnant. The inability to perform certain tasks due to pregnancy should be treated as a temporary disability; accommodation can be in the form of modified tasks or alternative assignments. • The EEOC protects people from discrimination based on their race or color. • Religion is also an aspect of the EEOC family of laws. The protection of religion doesn’t allow for discrimination; accommodations include modifications of work schedules or dress to be made for religious reasons. • Discrimination on the basis of sex is illegal and covered by the EEOC. Sexual harassment is also covered by the EEOC and states that all people, regardless of sex, should work in a harassment-free environment. • Retaliation is also illegal. An organization cannot retaliate against anyone who has filed a complaint with the EEOC or a discrimination lawsuit. • The US Department of Labor oversees some aspects of EEOC laws, such as the Family and Medical Leave Act (FMLA). This act requires organizations to give twelve weeks of unpaid leave in the event of an adoption, a birth, or a need to provide care to sick family members.

Exercises 1. Visit the EEOC website (http://www.eeoc.gov) and explain the methods an employee can use in filing a complaint with the EEOC.

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2. If an employer is found to have discriminated, what are some “remedies” listed on the EEOC website? 3. Visit your state’s EEOC website and see if the state laws are comparable to the federal laws.

10.5 Understanding Employee Rights Learning Objectives 1. Explain employee rights. 2. Define unions and explain their relation to management. Employee rights is defined as the employee’s ability to receive fair treatment from his or her employer. Leaders must be aware of employee rights to create a legal work environment. This section discusses employee rights surrounding job protection, privacy, and unionization from both the employees’ and leaders’ perspectives.

Job Protection Rights employment-at-will principle (EAW) The right of an employer to fire an employee or an employee to leave an organization at any time without any specific cause.

If a leader doesn’t understand or properly manage employee rights, lawsuits are sure to follow. In the United States, the employment-at-will principle (EAW) is the right of an employer to fire an employee or an employee to leave an organization at any time, without any specific cause. The EAW principle gives both the employee and the employer freedom to terminate the relationship at any time. There are three main exceptions to this principle, and whether they are accepted is up to the various states:

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1. Public policy exception. With a public policy exception, an employer may not fire an employee if it would violate the individual state’s doctrine or statute. For example, in Borse v. Piece Goods Shop in Pennsylvania, a federal circuit court of appeals ruled that Pennsylvania law may protect at-will employees from being fired for refusing to take part in drug test programs if the employee’s privacy is invaded. Borse contended that the free speech provisions of the state and of the First Amendment protected the refusal to participate. Some public policy exceptions occur when an employee is fired for refusing to violate state or federal law. 2. Implied contract exception. In a breach of an implied contract, the discharged employee can prove that the employer indicated that the employee had job security. The indication does not need to be formally written, only implied. In Wright v. Honda, an Ohio employee was terminated but argued that the implied contract exception was relevant to the employment-at-will doctrine. She was able to prove that in orientation, Honda stressed to employees the importance of attendance and quality work. She was also able to prove that the language in the associate handbook implied job security: “The job security of each employee depends upon doing your best on your job with the spirit of cooperation.” Progress reports showing professional development further solidified her case, as she had an implied contract that Honda had altered the employment-at-will doctrine through its policies and actions. 3. Good faith and fair dealing exception. In the good faith and fair dealing exception, the discharged employee contends he or she was not treated fairly. This exception to the employment-at-will doctrine is less common than the first two. Examples might include firing or transferring of employees to prevent them from collecting commissions and misleading employees about promotions and pay increases. When one of the exceptions can be proven, wrongful discharge accusations may occur. The United States is one of the few major industrial powers that utilize an employment-at-will philosophy. Most countries, including France and the UK, require employers to show just cause for termination of a person’s employment.[7] The advantage of the employment-at-will doctrine is that it allows for freedom of employment; the possibility of wrongful discharge tells us that we, as leaders, must be prepared to defend the termination of an employee, as to not be charged with a wrongful discharge case. A constructive discharge means the employee resigned, but only because the work conditions were so intolerable that he or she had no choice. For example, if James is being sexually harassed at work and quits because it is so bad, he would need to prove not only the sexual harassment but that it was so bad it required him to quit. This type of situation is important to note; should James’s case go to court and sexual harassment and constructive discharge are found, James may be entitled to back pay and other compensation. A retaliatory discharge is one that occurs if an employer fires or lays off an employee owing to a charge the employee filed. For example, if an employee files a workers’ compensation claim and then is let go, this could be a retaliatory discharge.

Privacy Rights Technology makes it possible to more easily monitor aspects of employees’ jobs, although a policy on this subject should be considered before implementing it. In regards to privacy, a question exists whether an employer should be allowed to monitor an employee’s online activities. This may include work e-mail, websites visited using company property, and also personal activity online. There are many organizations that track the digital footprints of employees. Digital footprints can include posts to social networking sites, for example. Then, the company provides reports to the organization by tracking these footprints. This type of technology might look for patterns, word usage, and other communication patterns between individuals. This monitoring can be useful in determining violations of workplace policies, such as sexual harassment. This type of software and

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public policy exception An exception to employment at will, in which an employer may not fire an employee if it would violate the individual state’s doctrine or statute.

implied contract An exception to employment at will in which the discharged employee can prove the employer indicated that the employee had job security.

good faith and fair dealing exception An employment-at-will exception in which the discharged employee contends that he or she was not treated fairly.

wrongful discharge Discharge as a result of discrimination, an implied contract between the employee and employer, violation of public policy, or lack of good faith.

constructive discharge The resignation of an employee due to work conditions so intolerable that he or she had no choice but to leave.

retaliatory discharge Punishment of an employee for engaging in a protected activity, such as filing a discrimination charge or opposing illegal employer practices.

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management can be expensive, so before launching it, it’s imperative to address its value in the workplace. Another privacy concern can include the monitoring of employee postings on external websites. Companies such as Social Sentry, under contract, monitor employee postings on sites such as Facebook, Twitter, LinkedIn, and YouTube.[8] Lawyers warn, however, that this type of monitoring should only be done if the employee has consented.[9] A monitoring company isn’t always needed to monitor employees’ movements on social networking. Sometimes employees don’t even have to tweet something negative about their own company to lose their jobs. A case in point is when the New York Post sports columnist tweeted a comparison about President Donald Trump’s victory in the 2016’’ election to Pearl Harbor or 9/11. Although the columnist apologized, he was fired as a result of the tweet.[10] Depending on the state in which you live, employees may be given the privilege to see their personnel files and the right to see and correct any incorrect information within their files. Medical or disability information should be kept separate from the employee’s work file, per the Americans with Disabilities Act (ADA). In addition, the Health Insurance Portability and Accountability Act (HIPAA) mandates that health information be private, and therefore it is good practice to keep health information in a separate file as well. Drug-Free Workplace Act of 1988 Requires that some federal contractors and all federal grantees agree they will provide a drug-free workplace as a condition of obtaining a contract.

Finally, drug testing and the right to privacy is a delicate balancing act. Organizations that implement drug testing often do so for insurance or safety reasons. Because of the Drug-Free Workplace Act of 1988, some federal contractors and all federal grantees must agree they will provide a drug-free workplace as a condition of obtaining the contract. For example, in Washington State, the legal use of marijuana was approved; however, use is still not legal on the federal level. This creates a challenge among federal and state laws for people and businesses alike. The Americans with Disabilities Act does not view testing for illegal drug use as a medical examination (making them legal), and people using illegal drugs are not protected under the ADA;[11] however, people covered under ADA laws are allowed to take medications directly related to their disability. In the recent case of Bates v. Dura Automotive Systems, an auto parts manufacturer had a high accident rate and decided to implement drug testing to increase safety. Several prescription drugs were banned because they were known to cause impairment. The plaintiffs in the case had been dismissed from their jobs because of prescription drug use and they sued, claiming the drug-testing program violated ADA laws.[12] However, the Sixth Circuit Court reversed the case because the plaintiffs were not protected under ADA laws (they did not have a documented disability). In organizations where heavy machinery is operated, a monthly drug test may be a job requirement. In fact, under the Omnibus Transportation Employee Testing Act of 1991, employers are legally required to test for drugs in transportation-related businesses such as airlines, railroads, trucking, and public transportation, such as bus systems. Medical and legalized marijuana in some states is a relatively new issue that is still being addressed within companies where states allow its use.

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FIGURE 10.1 Sample Policies on Privacy Relating to Technology

Labor Unions A union is an organization of employees formed to bargain with an employer, and it is within the employee’s legal rights to join a union. The collective bargaining process is the process of negotiating an agreement between management and employees. This process ultimately defines the contract terms for employees, such as procedures and policies (we discuss union hiring in Chapter 4). One such procedure managers may have to work with occasionally is the grievance process. Negotiations between unions and management attempt to use an interest-based bargaining approach. This type of bargaining occurs when mutual interests are brought up and discussed rather than each party coming to the table with a list of demands. The grievance process is a formal way by which employees can submit a complaint regarding something that is not administered correctly in the contract. Usually, the grievance process will first involve discussions with direct supervisors, next discussions with the union representative, and then the filing of a formal, written grievance complaint. Management is then required to provide a written response to the grievance and, depending on the collective bargaining agreement, a formalized process is stated on how the appeals process would work should the grievance not be solved by the management response. Having a clear picture as to how your company’s union and grievance process works is important for any leader in an organization.

Key Takeaways • The employment-at-will principle means that an employer can separate from an employee without cause, and vice versa.

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union An organization of employees formed to bargain with an employer.

collective bargaining process The process of negotiating an agreement between management and employees.

interest-based bargaining A type of bargaining in which mutual interests are brought up and discussed rather than each party coming to the table with a list of demands.

grievance process A formal process by which employees can submit a complaint regarding something that is not administered correctly in the contract.

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• Even though we have employment at will, a wrongful discharge can occur when there are violations of public policy, an employee has a contract with an employer, or an employer does something outside the boundaries of good faith. • A constructive discharge means the conditions are so poor that the employee had no choice but to leave the organization. • A retaliatory discharge is one that occurs if an employer fires or lays off an employee owing to a charge the employee filed. For example, if an employee files a workers’ compensation claim and then is let go, this could be a retaliatory discharge. • The privacy of employees is an issue that HR must address. It is prudent to develop policies surrounding what type of monitoring may occur within an organization. For example, some organizations monitor e-mail, computer usage, and even postings on social networking sites. • Drug testing is also a privacy issue, although in many industries requiring safe working conditions, drug testing can be necessary to ensure the safety of all employees. • A union is a group of workers who decide to work together toward a collective bargaining agreement. This agreement allows workers to negotiate as one rather than as individuals. • The process of collective bargaining means to negotiate a contract between management and workers. HR is generally part of this process. • Interest-based bargaining occurs when mutual interests are discussed rather than starting with a list of demands. • Collective bargaining agreements address policies such as hiring and grievance processes, which a manager should be aware of.

Exercises 1. Perform an Internet search and find a union agreement. Discuss how the union agreement handles terminations and grievances. 2. Compare and contrast the differences between a retaliatory discharge and a constructive discharge.

10.6 Stress Learning Objective 1. Define stress and the types of stress that can impact you and your employees’ work performance. Stress can be challenging to explain because it means different things to different people. Stress affects our ability and our employees’ ability to relate to others because too much stress causes us to be irritable, which affects communication skills.

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There are four types of stress. The first type of stress is called acute stress. This is the most common form of stress and normally comes from demands and pressures of the past and future.[13] This kind of stress tends to be short term. For example, suppose you have a busy day. You have to drop your niece and nephew at school, stop by the post office, go to class, take a quiz, get an oil change, pick your niece and nephew up from school, drive home through traffic, study, and make dinner. A busy day such as this can create stress, but it is short term because perhaps tomorrow you are less busy or are looking forward to the weekend where you don’t have as much to do. Every person experiences this kind of stress. Acute stress is a laundry list of the things we must do or a list of the things that didn’t go right. For example, if your car breaks down on the way to the post office, this creates a certain amount of acute stress, but once the car is fixed, there is no stress associated with it.

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stress The nonspecific response of the body to a demand for a change.

acute stress The most common form of stress; normally comes from demands and pressures of the past and future.

Gender and Stress Although it may not be a surprise, men and women cope with stress differently. This important piece of information can help you counsel employees who are overwhelmed and stressed. Women tend to seek emotional support when they are stressed, which is referred to as “tend and befriend.” Women use relationships with bosses, colleagues, friends, and family as a tool to manage stress. Women have the tendency to create social alliances that provide the framework of support they can lean on during more difficult times. Men, on the other hand, tend to elicit a fight-or-flight response hormone called vasopressin, which actually may cause them to withdraw when stressed. This useful information can assist us in understanding the behavior of our employees during stressful times at work, such as year-end work or right before major projects. Source: Based on Havens, L. (n.d.). Why women handle stress differently than men. My Optum Health. Retrieved February 2, 2018, from https://www.aarpmedicareplans.com/aarpoptum/whywomen-handle-stress-differently-than-men.

Episodic acute stress is a more serious form of acute stress. In this type of stress, the person feels stress daily and rarely gets relief.[14] Unlike acute stress, where there may be one or two busy, stressful days, episodic acute stress happens daily. The person who suffers from episodic acute stress feels stressed constantly with little relief. You have probably met these people. They may constantly complain about how much work they have and may be constantly late or always in a rush and may be anxious and irritable regularly. Often, a person who suffers from this type of stress may have taken on too much and created self-imposed demands. Chronic stress is the type of stress that happens month after month, year after year. This is long-term stress where people see little way out of a situation.[15] Sometimes, chronic stress begins with traumatic experiences such as posttraumatic stress disorder (PTSD) or childhood experiences. In others, chronic stress can occur in response to everyday stressors that are ignored or not managed well.[16] For example, someone may have episodic acute stress, but over a long period of time, this can become chronic stress. With this type of stress, the person has given up looking for solutions to the stress and tends to just live with it.

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episodic acute stress Can be a more serious form of acute stress; the person feels stress daily and rarely gets relief.

chronic stress This is long-term stress where people see little way out of a situation.

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Sometimes life can make us feel as if we are burning a candle at both ends. The important thing to remember about stress is that it isn’t always bad. Eustress can help ready us for challenges.

We tend to think of all stress as negative, but as Hans Selye pointed out in his early research in the 1950s, some types of stress can actually cause us to challenge ourselves and work at a higher level.[17] For example, if you want to run a marathon, at some point you may have to physically challenge yourself to keep running even when you are exhausted. This type of stress—positive stress to help us achieve at a higher level—is called eustress. It can motivate us to reach goals. For example, we may experience eustress before a big presentation to our board of directors. This eustress can be positive if it helps us achieve success in the presentation. Some people may view positive stress as negative stress and vice versa. As you can imagine, negative stress can affect our employees’ ability to perform at work. FIGURE 10.2 Physiological Effects of Stress

Source: © Thinkstock

Physically our bodies go through various changes to prepare us for a flight or fight response.

eustress Positive stress that helps us achieve at a higher level and feel challenged.

Source: Courtesy of the American Institute of Stress, http://www.stress.org.

For example, according to a survey of the American Psychological Association, 44 percent of Americans lie awake at night because of stress.[18] This is one example of how prolonged episodic stress can affect productivity at work as it relates to us as leaders and our employees. It is a positive thing for the body to get ready for acute stress. It prepares the body to perform at a higher level. However, long-term chronic stress or episodic acute stress can cause a variety of problems. Those problems are listed in Table 10.2. TABLE 10.2 Common Effects of Stress On Your Body

On Your Mood

On Your Behavior

Headache

Anxiety

Overeating or undereating

Muscle tension or pain

Restlessness

Angry outbursts

Chest pain

Lack of motivation or focus

Drug or alcohol abuse

Fatigue

Irritability or anger

Tobacco use

Change in sex drive

Sadness or depression

Social withdrawal

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On Your Body

On Your Mood

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On Your Behavior

Stomach upset Sleep problems Source: Mayo Clinic. (n.d.). Stress symptoms: Effects on your body and behavior. Retrieved February 16, 2012, from http://www. mayoclinic.com/health/stress-symptoms/SR00008_D.

In the 2011 American Psychological Association stress survey,[19] 42 percent of Americans reported anger as a result of stress, while 37 percent reported fatigue as a result of stress. Lack of interest, motivation, and energy is reported by 35 percent of Americans. Digestion issues and changes in appetite are also reported. With these being fairly common occurrences, we can see the importance of learning how to manage stress.

Stress Quiz: How Stressed Are You? Understanding your stress level is an emotional intelligence skill (self-awareness). To find out your stress level, take the quiz at the following link: https://psychcentral.com/quizzes/stress-test/.

Video Clip 3 This video illustrates how our flight-or-fight response is similar to that of prehistoric times when handling stressful situations.

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FIGURE 10.3 Four A’s for Dealing with Stress

Once we do some self-analysis on what is causing stress, we can use a method called the four A’s. The four A’s gives us four choices for dealing with a stressor: 1. Avoid the stressor. We can try to avoid situations that stress us out. If watching certain television programs causes stress, stop watching them! Spend time with people who help you relax. We can also look at saying “no” more often if we do not have the time necessary to complete everything we are doing. 2. Alter the stressor. Another option in dealing with stress is to try to alter it if it can’t be avoided. When changing a situation, you can be more assertive, manage time better, and communicate your needs and wants better. For example, Karen can look at the things causing her stress, such as her home and school commitments; while she can’t change the workload, she can examine ways to avoid a heavy workload in the future. If Karen is stressed about the amount of homework she has and the fact that she needs to clean the house, asking for help from roommates, for example, can help alter the stressor. Often this involves the ability to communicate well. 3. Adapt to the stressor. If you are unable to avoid or change the stressor, getting comfortable with the stressor is a way to handle it. Creating your coping mechanisms for the stress and learning to handle it can be an effective way of managing stress. For example, we can try looking at stressful situations in a positive light, consider how important the stressor is in the long run, and adjust our standards of perfectionism. 4. Accept the stressor. Some stressors are unavoidable. We all have to go to work and manage our home life. So learning to handle the things we cannot change by forgiving, developing tolerances, and letting going of those things we cannot control is also a way to deal with a stressor. For example, if your mother-in-law’s yearly visits and criticisms cause stress, obviously you are not able to avoid or alter the stress, but you can adapt to it and accept it. Since we cannot control another person, accepting the stressor and finding ways of dealing with it can help minimize some negative effects of the stress we may experience. Researchers have found the following activities cut stress significantly:[20] • Meditating • Listening to music © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

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• Getting enough sleep • Drinking black tea • Spending time with a funny friend • Pampering, such as a massage • Doing something spiritual • Chewing gum Other ways to reduce stress might include the following:[21] • Exercising • Developing good time management skills • Eating a healthy diet • Organization, such as keeping workspace organized • Picturing yourself relaxed • Breathing deeply • Social interaction, such as spending time with family and friends • Positive thinking You may wonder why the discussion of stress occurs in a leadership book. Because stress can be both personal and work related, it is important to discuss and recognize our levels of stress so we can perform at our best as leaders of our organizations. It can also create awareness and the development of sound coping strategies for you and your organization so that you are better able to handle employees who experience bouts of stress.

Key Takeaways • Stress is the body’s response to change. Stress is defined in many different ways, and stress and the types of things that cause stress can vary from person to person. Today, we generally say that stress is the body’s way of responding to a demand. • Acute stress is the type of stress we experience on a day-to-day basis—for example, the stress of getting our to-do list finished or the stress of unplanned setbacks. • When a person rarely gets relief from stress, this is called episodic acute stress. This type of stress usually goes on for longer periods of time with little relief. • Chronic stress is characterized as long-term stress, where there is little hope for relief. These are long-term situations where the person has given up trying to find a solution. • Not all stress is bad; some stress can actually help us to perform at a higher level and challenge us. This type of stress is called eustress.

Exercises 1. Take the quiz listed at http://www.uhc.com/source4women/health_topics/stress/quiz:_ how_stressed_are_you.htm and then answer the following questions: a. What was your score on the test? Do you feel this is accurate? b. What are some ways you handle stress in your life? Are these methods effective? Why or why not? 2. Discuss which types of stress are represented in the following situations: a. Michael has a project due on Monday. b. Tara just can’t seem to like her job over the last few years. c. Mika puts a lot of pressure on herself to get everything done on her to-do list every day.

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d. Franc is nervous about his presentation in class tomorrow. e. Jacob has a long list of things that are due today. f. Karen has been struggling with financial issues her whole adult life.

10.7 Power Positioning and Power Sources Learning Objective 1. Apply power positioning techniques in leadership. Understanding power and power structure as leaders in our organizations can assist us in being more successful in our career, as you may remember from Chapter 3. The important thing here is that power and politics usually has to do with the competition for scarce resources in an organization. power Our ability to influence others and convince them to do what we want them to do.

influence The application of the power we have to get people to do what we want them to do.

Power refers to our ability to influence others and convince them to do what we want them to do. Power is different than influence in that influence is the application of the power we have to get people to do what we want them to do. For example, Abbey may use her power to convince Amy they should have sushi for dinner tonight, but that doesn’t mean that Amy thinks it is the right thing to do. It isn’t until Abbey uses her influence that Amy agrees to eat sushi. Please keep in mind that power is not a negative thing if used in the correct way. Power, politics, and influence are ultimately what allow things to get done in our organizations.[22] As leaders, power can come in many forms. A study by John French and Bertram Raven in 1959 identified the ways leaders can influence others.[23] They include the following: 1. Reward power. Reward power refers to a person’s ability to present the receiver some type of reward, should he or she do something in return. For example, managers may use raises or praise. If John wants to reward his employees, he might use reward power by offering them a bonus if they meet certain sales goals. John, as a parent, may promise dessert if his son finishes his dinner. 2. Coercive power. Coercive power refers to the power of punishing someone should he or she not do something the other person wants. For example, John may say, “If you don’t meet the sales goal, you will have to look for another job.” This type of power is focused on punishment rather than rewards. As a parent, John may tell his son he will be grounded if his son does not do what is asked. 3. Legitimate power. This type of power refers to the ability to make another feel obligated or responsible. Because John’s title is manager, for example, this gives him the power or the right to make certain decisions. This can be powerful at first, but over time, it can become less important if trust does not exist. Have you ever heard your Mom say, “Because I said so,” without further explanation? This is an example of legitimate power. The mother has the power simply because she is the mother. 4. Expert power. Sometimes people have power because they have a lot of knowledge or are known as experts in a certain area. John, for example, might use expert power by saying, “I know you can meet the sales goal because I was able to meet this same sales goal last year.” Because John is an expert salesperson, his employees respect his abilities, and this respect gives him power. If John is using expert power with his son when teaching him to

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play baseball, he might tell his son about the years of experience he has had playing the sport—therefore, John’s son is motivated to listen to him. 5. Referent power. Referent power is often referred to as charisma, charm, or appeal. This type of power comes from one person respecting and liking another, so they are willing to do what the leader says. For example, if John’s employees really like and respect him, his source of power is the fact that people want to do what he says. If John is a convincing person with charisma, he may also use his power to convince his friends to go to the movie he wants to see. This type of power can be the most powerful for leaders in organizations. FIGURE 10.4 Most- to Least-Popular Power Strategies Used in All Countries Managers may use various types of power depending on the person they are trying to influence. This figure shows some of the strategies used for influence.

Source: Based on Kipnis, D., Schmidt, S., Swaffin-Smith, C., Wilkinson, I. (1984). Patterns of managerial influence: Shotgun managers, tacticians, and bystanders. Organizational Dynamics, 12(3), p. 62.

Techniques that may help increase your power position as a leader include the following: 1. Be authentic. Be yourself as a leader. Stay true to your values and those things you find important. 2. Refuse to let people push your buttons. This can result in conflict, which does not increase your position power. 3. Develop esteem and confidence. Esteem and confidence will give you the ability to take on difficult tasks, help others, and contribute to the organization in your leadership role. 4. Be a team player. Do all the things necessary to be part of a team. 5. Be someone who makes others feel good. Make others feel good when they are around you—for example, by being genuinely interested in them. 6. Develop your communication skills. Work on your written, oral, and nonverbal language skills. Learn to read and understand others’ body language. 7. Be visible in the workplace. Don’t take credit for others’ work, but do take credit for your work. 8. Don’t complain. Unless you can also provide a solution. 9. Be goal oriented and willing to take risks. Focus on goal setting personally and professionally. Show your upper-level managers and colleagues how you can help them meet goals. 10. Have positive psychological capital. There are four aspects to positive psychological capital: hope, self-efficacy, optimism, and resiliency. Self-efficacy refers to belief in your abilities, while optimism means to have a positive outlook. Resiliency is the ability to make it through difficult circumstances. In a study by the Leadership Institute[24] on psychological capital, there was a clear relationship between positive psychological capital and job performance/job satisfaction—two very important components for leadership.

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psychological capital Four aspects to positive psychological capital include hope, self-efficacy, optimism, and resiliency.

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Video Clip 4 This somewhat silly (with typos) video shows the types of power.

View in the online reader

power position The use of power in an appropriate way when getting ahead in an organization.

In addition to the techniques, we can think about position power as a set of behaviors we exhibit daily. These five behaviors can help us increase our leadership power position. We can think about the acronym POWER to remember these behaviors:[25] • Positive approach. Having a positive approach to everything can help increase your power position. Avoiding rumors, gossip, and other negative behaviors can gain the trust of others. • Open. Being open to others, new ideas, and people can help increase your power position. • Willingness. The willingness to do things different, try something new, and take risks can increase your power position. • Employing. Employing things like tact, common courtesies, humor, patience, and emotional intelligence skills can increase your position power. • Remembering. Know your purpose, set goals, and always do your best. Understanding power position as a leader is an important part of self-development as a leader and a manager, as we have discussed in this section.

Key Takeaways • Power refers to our ability to influence others and convince them of what to do. This is different from influence, which is the application of our power to get people to do what we want them to do. In other words, power is our ability, while influence allows us to move someone to action. • Someone who is power compulsive may lust for power, while someone who is power shy may try to avoid situations where he or she might have to exert power. • Our power position can help us achieve career success. Our power position refers to the use of our power to get ahead in organizations. • Power positioning can be done using a variety of methods, but specific techniques and behaviors can be used to up our power position. For example, the POWER method refers to behaviors we can exhibit to increase our power position. They include positive approach, openness, willingness, employing things like tact and social skills, and remembering our purpose and goals.

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Exercise 1. In a small group, discuss examples you or your team members have experienced relating to each of the sources of power. The discussion can be examples from past or present work experience, school, or home life. Compile a list and then present it to the rest of the class.

10.8 Chapter Summary and Case Chapter Summary • Diversity is the real or perceived differences between individuals. Diversity can include race, gender, sexual orientation, size, cultural background, and many other differences. Multiculturalism is similar to diversity but focuses on the development of a greater understanding of how power in society can be unequal because of race, gender, sexual orientation, and privilege. • Power and privilege is a system of advantages based on one’s race, gender, and sexual orientation. This system can often be invisible (to those who have it), which results in one race or gender having unequal power in the workplace. Of course, this unequal power results in unfairness, which may be a legal concern. • Diversity is important to the success of organizations. Many studies have shown a direct link between the amount of diversity in a workplace and the success of the company. • The Equal Employment Opportunity Commission (EEOC) is a federal agency charged with development and enforcement of laws relating to multiculturalism and diversity in the workplace. • Retaliation is also illegal based on EEOC laws. An organization cannot retaliate against anyone who has filed a complaint with the EEOC or a discrimination lawsuit. • The US Department of Labor oversees some aspects of EEOC laws, such as the Family and Medical Leave Act (FMLA). This act requires organizations to give twelve weeks of unpaid leave in the event of an adoption, birth, or caregiving of sick family members. • The employment-at-will principle means that an employer can separate from an employee without cause, and vice versa. • A constructive discharge means the conditions are so poor that the employee had no choice but to leave the organization. • A retaliatory discharge is one that occurs if an employer fires or lays off an employee owing to a charge the employee filed. For example, if an employee files a workers’ compensation claim and then is let go, this could be a retaliatory discharge. • The privacy of employees is an issue that management must address. It is prudent to develop policies surrounding what type of monitoring may occur within an organization. For example, some organizations monitor e-mail, computer usage, and even postings on social networking sites. • Drug testing is also a privacy issue, although in many industries requiring safe working conditions, drug testing can be necessary to ensure the safety of all employees. • A union is a group of workers who decide to work together toward a collective bargaining agreement. This agreement allows workers to negotiate as one rather than as individuals. • The process of collective bargaining means to negotiate a contract between management and workers. • Interest-based bargaining occurs when mutual interests are discussed rather than starting with a list of demands.

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• The grievance process is the agreed-upon process by the union and management to handle issues between employees and management that violate the collective bargaining agreement. • Stress is the body’s response to change. Stress is defined in many different ways, and stress and the types of things that cause stress can vary from person to person. Today, we generally say that stress is the body’s way of responding to a demand. • Acute stress is the type of stress we experience on a day-to-day basis—for example, the stress of getting our to-do list finished or the stress of unplanned setbacks. • When a person rarely gets relief from stress, this is called episodic acute stress. This type of stress usually goes on for longer periods of time with little relief. • Chronic stress is characterized as long-term stress, where there is little hope for relief. These are long-term situations where the person has given up trying to find a solution. • Not all stress is bad; some stress can actually help us to perform at a higher level and challenge us. This type of stress is called eustress. • Power refers to our ability to influence others and convince them of what to do. This is different from influence, which is the application of our power to get people to do what we want them to do. In other words, power is our ability, while influence allows us to move someone to action. • Someone who is power compulsive may lust for power, while someone who is power shy may try to avoid situations where he or she might have to exert power. • Our power position can help us achieve our leadership goals. Our power position refers to the use of our power to get ahead in organizations. • Power positioning can be done using a variety of methods, but specific techniques and behaviors can be used to up our power position. For example, the POWER method refers to behaviors we can exhibit to increase our power position. They include positive approach, openness, willingness, employing things like tact and social skills, and remembering our purpose and goals.

Chapter Case But…It’s Our Company Culture! You are the manager for a fifty-person firm that specializes in the development and marketing of plastics technologies. When you were hired, you felt the company had little idea what you should be paid and just made up a number, which you were able to negotiate to a slightly higher salary. While you have been on the job for three months, you have noticed a few concerning things in the area of multiculturalism, besides the way your salary was offered. The following are some of those items: 1. You know that some of the sales team, including the sales manager, gets together once a month to have drinks at a strip club. 2. A Hispanic worker left the organization, and in his exit interview, he complained of not seeing a path toward promotion. 3. The only room available for breastfeeding mothers is the women’s restroom. 4. The organization has a policy of offering $200 to any employee who refers a friend, as long as the friend is hired and stays at least six months. 5. The manufacturing floor has an English-only policy. 6. You have heard managers refer to those wearing turbans in a derogatory way. As a company leader, you are well aware of the laws surrounding employees, but your goal is also to create an inclusive environment. What do you think needs to be done to create a more inclusive environment without losing the culture of the company? What suggestions would you make to those involved in each of the situations?

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Endnotes 1. Harper, M. (2011, December 29). Right rules for a kick-ass company culture. Sydney Morning Herald. Retrieved April 3, 2013, from http:// www.smh.com.au/it-pro/business-it/eight-rules-for-a-kickass-companyculture-20111228-1pc6t.html 2. Johnson, A. (2005). Power, privilege and difference. New York: McGrawHill. 3. Society for Human Resource Management. (2008, March). The 2007 state of workplace diversity management report. Retrieved August 3, 2011, from http://www.shrm.org/Publications/HRNews/Pages/ DiversityBusinessImperative.aspx 4. Plaut, V. C., Thomas, K. M., & Goren, M. J. (2009). Is multiculturalism or color blindness better for minorities? Psychological Science, 20(4), pp. 444–446. 5. US Department of Labor. (n.d.). Leave benefits: Family and medical leave. Retrieved December 20, 2010, from http://www.dol.gov/dol/topic/ benefits-leave/fmla.htm 6. Schmidt, M., & Newman, M. (2007, October 2). Jury awards $11.6 million to former Knicks executive. New York Times. Retrieved July 12, 2011, from http://www.nytimes.com/2007/10/02/sports/basketball/03garden-cnd. html 7. USLegal. (n.d.). Employment at will. Retrieved from http://employment. uslegal.com/employment-at-will 8. Lardinois, F. (2010, March 24). Social Sentry lets employers track their workers across the internet. ReadWrite. Retrieved from http://www. readwriteweb.com/archives/social_sentry_track_employees_across_the_ web.php 9. Evans, J. (2011, February 25). Employers “should have monitoring policy for social networks.” People Management. Retrieved from http://www. peoplemanagement.co.uk/pm/articles/2011/02/employers-should-havemonitoring-policy-for-social-networks.htm 10. Chasmar, J. (2017 January 17). Bart Hubbuch says New York Post fired him for tweet comparing Trump inauguration to 9/11. The Washington Post. Retrieved from http://www.washingtontimes.com/news/2017/jan/ 31/bart-hubbuch-says-new-york-post-fired-him-for-twee/ 11. US Equal Employment Opportunity Commission. (n.d.). The ADA: Your responsibilities as an employer. Retrieved from http://www.eeoc.gov/ facts/ada17.html

12. Jackson Lewis. (2010, December 1). Employees’ ADA claims on prescription-drug-use dismissals rejected by federal court. Retrieved from http:// www.jacksonlewis.com/resources.php?NewsID=3478 13. American Psychological Association. (n.d.). Stress: The different kinds. Retrieved February 15, 2012, from http://www.apa.org/helpcenter/stresskinds.aspx 14. American Psychological Association. (n.d.). Stress: The different kinds. Retrieved February 15, 2012, from http://www.apa.org/helpcenter/stresskinds.aspx 15. American Psychological Association. (n.d.). Stress won’t go away? Maybe you are suffering from chronic stress. Retrieved February 15, 2012, from http://www.apa.org/helpcenter/chronic-stress.aspx 16. American Psychological Association. (n.d.). Understanding chronic stress. Retrieved February 15, 2012, from http://www.apa.org/helpcenter/ understanding-chronic-stress.aspx 17. Schenck, L. (2011, June 26). Eustress vs distress. Retrieved February 15, 2012, from http://www.mindfulnessmuse.com/stress-reduction/eustressvs-distress; Selye, H. (1950). The physiology and pathology of exposure to stress. Oxford, England: Acta, pp. 203, 822. 18. American Psychological Association. (n.d.). The impact of stress. Retrieved February 16, 2012, from http://www.apa.org/news/press/releases/stress/ 2011/impact.aspx 19. American Psychological Association. (n.d.). The impact of stress. Retrieved February 16, 2012, from http://www.apa.org/news/press/releases/stress/ 2011/impact.aspx 20. Sboboda, E. (2009, February 15). Feeling frazzled? 8 ways to decrease stress. NBC News. Retrieved February 22, 2012, from http://www. nbcnews.com/id/28719686/ns/health-behavior/t/feeling-frazzled-waysdecrease-stress#.Ut6ch9Io6Wg 21. Stamos, J. K. (n.d.). 10 relaxation techniques that zap stress fast. WebMD. Retrieved February 22, 2012, from http://www.webmd.com/balance/ stress-management/features/blissing-out-10-relaxation-techniquesreduce-stress-spot 22. Mind Tools. (n.d.). French and Raven’s five forms of power. Retrieved March 12, 2012, from http://www.mindtools.com/pages/article/newLDR_ 56.htm 23. French, J. R. P., & Raven, B. (1959). The bases of social power. In D. Cartwright & A. Zander (Eds.), Group dynamics (pp. 607–23). New York: Harper & Row. 24. Luthans, F., Avolio, B. J., Avey, J. B., & Norman, S. M. (2007). Positive psychological capital: Measurement and relationship with performance and satisfaction. Personnel Psychology, 60, pp. 541–572. Retrieved May 14, 2014, from http://digitalcommons.unl.edu/leadershipfacpub/11 25. Dawson, J. (2007–2008). What good leaders do. Retrieved March 13, 2012, from http://www.adiperformance.com/08/pub_article03.html

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CHAPTER 11

Intervening and Aiding Employees with Performance Issues Employees who believe that management is concerned about them as a whole person—not just an employee—are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability. — Anne M. Mulcahy (former chairperson at Xerox)

11.1 Handling Performance Learning Objectives 1. Explain the types of performance issues that occur in the workplace and the internal and external reasons for poor performance. 2. Understand how to develop a process for handling employee performance issues. 3. Discuss considerations for initiating layoffs or downsizing. As you know from reading this book so far, the duty of management is to develop employees. The cost to select, hire, and train a new employee is staggering—but what if that new employee isn’t working out? This section provides some examples of performance issues and examples of processes to handle these types of employee problems. We also discuss performance appraisals in this chapter.

Types of Performance Issues One of the most difficult parts of managing others isn’t when they are doing a great job—it is when they aren’t doing a good job. In this section, we address some of the following examples of performance issues and how to handle them: 1. Tardiness or leaving early. While we know that flexible schedules can provide a work-life balance, managing this flexible schedule is key. 2. Too much time spent doing personal things at work. Most companies have a policy about using a computer or phone for personal use. For most companies, some personal use is fine, but it can become a problem if someone doesn’t know where to draw the line. 3. Inability to handle proprietary information. Many companies handle important client and patient information. The ability to keep this information private for the protection of others is important to the success of the company. © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

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4. Family issues. Child-care issues, divorce, and other family challenges can cause not only absenteeism but also poor work quality. Absenteeism is defined as a habitual pattern of not being at work. 5. Drug and alcohol abuse. The US Department of Labor says that 40 percent of industrial fatalities and 47 percent of industrial injury can be tied to alcohol consumption. The US Department of Labor estimates that employees who use substances are 25–30 percent less productive and miss work three times more often than nonabusing employees.[1] Please keep in mind that when we talk about substance abuse, we are talking about not only illegal drugs but prescription drug abuse as well. In fact, the National Institute on Drug Abuse says that 15.2 million Americans have taken a prescription pain reliever, tranquilizer, or sedative for nonmedical purposes at least once.[2] Substance abuse can cause obvious problems, such as tardiness, absenteeism, and nonperformance, but it can also result in accidents or other more serious issues. 6. Nonperformance. Sometimes employees are just not performing at their peak. Some causes may include family or personal issues, but often it can mean motivational issues or lack of tools and/or ability to do their current job. 7. Conflicts with management or other employees. While it is normal to have the occasional conflict at work, some employees seem to have more than the average owing to personality issues. Of course, this affects an organization’s productivity. 8. Theft. The numbers surrounding employee theft are staggering. The American Marketing Association estimates $10 billion is lost annually owing to employee theft, while the FBI estimates up to $150 billion annually.[3] Obviously, this is a serious employee problem that must be addressed. 9. Ethical breaches. The most commonly reported ethical breaches by employees include lying, withholding information, abusive behavior, and misreporting time or hours worked, according to a National Business Ethics study.[4] Sharing certain proprietary information when it is against company policy and violating noncompete agreements are also considered ethical violations. Many companies also have a nonfraternization policy that restricts managers from socializing with nonmanagement employees. 10. Harassment. Engagement of sexual harassment, bullying, or other types of harassment would be considered an issue to be dealt with immediately and, depending on the severity, may result in immediate termination. 11. Employee conduct outside the workplace. Speaking poorly of the organization on blogs or Facebook is an example of conduct occurring outside the workplace that could violate company policy. Violating specific company policies outside work could also result in termination. For example, in 2010, thirteen Virgin Atlantic employees were fired after posting criticisms about customers and joking about the lack of safety on Virgin airplanes in a public Facebook group.[5] In another example, an NFL cheerleader for the Indianapolis Colts was fired after racy Playboy promotional photos surfaced (taken before she became a cheerleader) that showed her wearing only body paint.[6] 12. Personality disorders. According to the Mayo Clinic, an employee with a personality disorder may enhance the workplace with a specialized or valuable skill set. However, he or she can also create risk for your bottom line. People with uncontrolled personality disorders could experience troubled relationships with coworkers, feelings of isolation, and angry outbursts. Taking a firm but compassionate approach can assist in making such employees easier to work with.[7] 13. False claims. Sometimes—as a result of personality disorders or other reasons, such as retaliation—employees may file false claims against other employees or management, such as false claims about sexual harassment or discrimination. In a recent court case, Joaquin v. City of Los Angeles, an employee filed a false claim of sexual harassment that resulted in a ruling in favor of the employer. The court stated, “The anti-discrimination laws were not designed to arm employees with a tactical coercive weapon under which employees can make baseless claims simply to advance their own motives and strategies.”[8] Despite the court’s ruling, false claims

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can disrupt the workplace and create morale issues that can be detrimental to the well-being of employees and to management. 14. Hygiene issues and inappropriate clothing. Another possible workplace problem may be hygiene issues such as cleanliness, dandruff, or body odor. Other possible issues can include inappropriate clothing, such as showing too much skin or wearing dirty or torn clothing. 15. Health issues and unresolved personal issues. Ongoing health issues with the employee, spouse, dependents, and/or serious medical conditions and unresolved personal issues can affect performance. While certainly not exhaustive, this list provides some insight into the types of problems that may be experienced. As you can see, some of these problems are more serious than others. Some issues may only require a warning, while some may require immediate dismissal. As a leader, it may be your job to develop policies and procedures for dealing with such problems. Let’s discuss these next.

What Influences Performance? When you consider the amount of time you take as a leader to develop employees, it can be disappointing when an employee’s performance is not up to standard. Sometimes performance issues can be related to something personal, such as drug or alcohol abuse, but often it is a combination of factors. Internal factors may include the following: 1. Career goals are not being met with the job. 2. There is conflict with other employees or the manager. 3. The goals or expectations are not in line with the employee’s abilities. 4. The employee views unfairness in the workplace. 5. The employee manages time poorly. 6. The employee is dissatisfied with the job. 7. The employee perceives that intrinsic or extrinsic factors are not being met. External factors may include the following: 1. The employee doesn’t have the correct equipment or tools to perform the job. 2. The job design is incorrect. 3. External motivation factors are absent. 4. There is a lack of management support. 5. The employee’s skills and the job are mismatched. All the internal reasons speak to the importance once again of hiring the right person to begin with. The external reasons may be something that can be easily addressed and fixed. Whether the reason is internal or external, performance issues must be handled in a timely manner. Please note, some performance issues, such as those with posttraumatic stress disorder (PTSD) or personality disorders, may not be related to either internal or external factors.

Defining Discipline If an employee is not meeting the expectations, discipline might need to occur. Discipline is defined as the process that corrects undesirable behavior. The goal of a discipline process shouldn’t necessarily be to punish but rather to help the employee meet performance expectations. Often supervisors choose not to apply discipline procedures because they have not documented past

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discipline The process that corrects undesirable behavior.

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employee actions or did not want to take the time to handle the situation. When this occurs, the organization lacks consistency among managers, possibility resulting in motivational issues for other employees and loss of productivity. To have an effective discipline process, rules and policies need to be in place and communicated so all employees know the expectations. Here are some guidelines on the creation of rules and organizational policies: 1. All rules or procedures should be in a written document. 2. Rules should be related to safety and the productivity of the organization. 3. Rules should be written clearly, so no ambiguity occurs among different managers. 4. Supervisors, managers, and human resources should communicate rules clearly in orientation, training, and via other methods. 5. Rules should be revised periodically, as the organization’s needs change. wrongful termination When an employer has fired or laid off an employee for illegal reasons, such as violation of antidiscrimination laws or violation of oral and/or written employee agreements.

Of course, there is a balance between having too many “rules” and giving employees the freedom to do their work. However, the point of written rules is to maintain consistency. Suppose, for example, you have a manager in operations and a manager in marketing. They both lead with a different style; the operations manager has a more rigid management style, while the marketing manager uses more of a laissez-faire approach. Suppose one employee in each of the areas is constantly late to work. The marketing manager may not do anything about it, while the operations manager may decide each tardy day merits a “write-up,” and after three write-ups, the employee is let go. See how lack of consistency might be a problem? If this employee is let go, he or she might be able to successfully file a lawsuit for wrongful termination since another employee with the same performance issue was not let go. Wrongful termination means an employer has fired or laid off an employee for illegal reasons, such as a violation of antidiscrimination laws or a violation of oral and/or written employee agreements. To avoid such situations, a consistent approach to managing employee performance is a crucial part of the manager’s job.

Performance Issue Model Because of the many varieties of performance issues, we will not discuss how to handle each type in detail here. Instead, we present a model that can be used to develop policies around performance for fairness and consistency. We can view performance issues in one of five areas. First, the mandated issue is serious and must be addressed immediately. Usually, the mandated issue is one that goes beyond the company and could be a law. Examples of mandated issues might include an employee sharing information that violates privacy laws, not following safety procedures, or engaging in sexual harassment. For example, let’s say a hospital employee posts something on his Facebook page that violates patient privacy. This would be considered a mandated issue (to not violate privacy laws) and could get the hospital in serious trouble. These types of issues need to be handled swiftly. A written policy detailing how this type of issue would be handled is crucial. In our example, the policy may state that the employee is immediately fired for this type of violation. Or, it may mean this employee is required to go through privacy training again and is given a written warning. Whatever the result, developing a policy on how mandated issues will be handled is important for consistency. The second type of performance issue can be called a single incident. Perhaps the employee misspeaks and insults some colleagues or perhaps he or she was over budget or late on a project. These types of incidents are usually best solved with a casual conversation to let the employee know what he or she did wasn’t appropriate. Consider this type of misstep a development opportunity for your employee. Coaching and working with the employee on this issue can be the best way to nip this problem before it gets worse.

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FIGURE 11.1 Process for Handling Performance Issues

Often when single incidents are not immediately corrected, they can evolve into a behavior pattern, which is our third type of performance issue. This can occur when the employee doesn’t think the incident is a big deal because he hasn’t been corrected before or may not even realize he or she is doing something wrong. In this case, it’s important to talk with the employee and let him or her know what is expected. If the employee has been corrected for a behavior pattern but continues to exhibit the same behavior, we call this a persistent pattern. Often you see employees correct the problem after an initial discussion but then fall back into old habits. If they do not self-correct, it could be they do not have the training or the skills to perform the job. In this phase of handling performance issues, it is important to let the employee know that the problem is serious and further action will be taken if it continues. If you believe the employee just doesn’t have the skills or knowledge to perform the job, asking him or her about this could be helpful to getting to the root of the problem as well. If the employee continues to be nonperforming, you may consider utilizing the progressive discipline process before initiating an employee separation. However, investigating the performance issue should occur before implementing any sort of discipline.

Investigation of Performance Issues When an employee is having a performance issue, proper documentation is necessary should the employee need to be terminated later for the performance issue. The documentation should include the following information: 1. Date of incident 2. Time of incident 3. Location (if applicable) of incident 4. A description of the performance issue

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5. Notes on the discussion with the employee on the performance issue 6. An improvement plan, if necessary 7. Next steps, should the employee commit the same infraction 8. Signatures from both the manager and the employee investigative interview When a discipline procedure takes place, the interview with the employee is used to make sure the employee is fully aware of the discipline issue and allows the employee the opportunity to explain his or her side of the story.

interest-based bargaining A type of bargaining in which mutual interests are brought up and discussed rather than each party coming to the table with a list of demands.

progressive discipline process Refers to a series of steps taking corrective action on nonperformance issues.

alternative dispute resolution (ADR) A third-party resolution method used in conflict with the goal of obtaining a resolution that works for the parties involved.

With this proper documentation, the employee and you will clearly know the next steps that will be taken should the employee commit the infraction in the future. Once the issue has been documented, the manager and employee should meet about the infraction. This type of meeting is called an investigative interview and is used to make sure the employee is fully aware of the discipline issue. This also allows the employee the opportunity to explain his or her side of the story. These types of meetings should always be conducted in private and never in the presence of other employees. In unionized organizations, however, the employee is entitled to union representation at the investigative interview. This union representation is normally called interest-based bargaining,[9] referring to a National Labor Relations Board case that went to the United States Supreme Court in 1975. Recently, Weingarten rights continued to be protected when Alonso and Carus Ironworks was ordered to cease and desist from threatening union representatives who attempted to represent an employee during an investigative interview.[10]

Options for Handling Performance Issues Our last phase of dealing with employee problems would be a disciplinary intervention. Often this is called the progressive discipline process. It refers to a series of steps taking corrective action on nonperformance issues. The progressive discipline process is useful if the offense is not serious and does not demand immediate dismissal, such as employee theft. The progressive discipline process should be documented and applied to all employees committing the same offenses. The steps in progressive discipline normally are the following: 1. First offense. Unofficial verbal warning. Counseling and restatement of expectations. 2. Second offense. Official written warning. Documented in employee file. 3. Third offense. Second official warning. Improvement plan (discussed later) may be developed. Documented in employee file. 4. Fourth offense. Possible suspension or other punishment. Documented in employee file. 5. Fifth offense. Termination and/or alternative dispute resolution (ADR).

Progressive Discipline Process The following shows the typical progressive discipline process:

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TABLE 11.1 Progressive Discipline Chart Counseling and Mentoring

The goal of counseling and mentoring is to discuss the issue with the employee and put together an improvement plan. At this time, the manager should state the expected behavior and discuss any ramifications for not meeting expected behaviors discussed in the meeting. At this time, the manager should also provide additional support and/or resources needed for the employee to meet these expectations.

Written Reprimand

If the action occurs again, the manager should continue mentoring the employee, however, a written discussion of the occurrence, as well as signed copies by the employee and manager, should be put in the employee’s files.

Suspension

Should the action occur a third time, the manager may choose to suspend the employee for a set period of time after extensive investigation. Mentoring should also occur in this step of the process to determine what improvements need to be made when the employee comes back to work after the suspension.

Termination

Termination of the employee may become necessary if the action occurs a fourth time. All necessary documentation of the discussion between manager and employee should be present, and a letter of termination should be provided to the employee at the termination meeting.

Source: Based on The University of Iowa. University Human Resources, Brief Guide to Progressive Discipline. Retrieved from https://hr.uiowa.edu/tools-departments/brief-guideprogressive-discipline. The Seven Tests of Just Cause The seven tests of just cause represents a way to determine if disciplinary action is fair. When determining how to implement a progressive displace process, using this test will allow the decision maker to ensure they are being fair with the process. Seven Tests 1. Notice • Employee needs to know and be aware of what the rules are • Employee orientations and other training • Coaching and periodical reinforcement of rules 2. Reasonable • Needs to work with collective bargaining agreements in place • Cannot be arbitrary or capricious • Must relate to the needs of the business with solid reasoning for the rule to be in place 3. Investigation • Consider all evidence • Should be implemented and considered in a timely matter

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• Should always occur before discipline is put into action • Employee should have a chance to defend him/herself • If a union organization, representation for the employee is allowed 4. Fair Investigation • Test assumptions • Test possible bias 5. Proof • Significant amount of evidence should be included 6. Equal Treatment • Rules must be applied consistently and evenly 7. Penalty • Must be fair and not based on emotional responses • We can use the seven tests of just causes to ask ourselves the following questions: • Was the rule that was violated reasonable to begin with? • Was the investigation thorough, fair and unbiased? • Is there enough evidence? • Is the employee being treated fairly in the process? • Will the discipline imposed also be fair given the nature of the infraction? Source: Based on UC Berkeley. Seven Tests of Just Cause. Retrieved from https://hr.berkeley. edu/hr-network/central-guide-managing-hr/managing-hr/er-labor/disciplinary/just-cause. Another option for handling continued infractions is to consider putting the employee on an improvement plan, which outlines the expectations and steps the employee should take to improve performance. The plan is detailed and outlined and ensures both parties understand the specific expectations for improvement. If the improvement plan does not work, a progressive discipline process might be used.

Video Clip 1 This video discusses alternate dispute resolution methods.

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Employee Separation Employee separation can occur in any of the following scenarios. First, the employee resigns and decides to leave the organization. Second, the employee is terminated for one or more of the performance issues listed previously. Lastly, absconding is when the employee decides to leave the organization without resigning or following the normal process. For example, if an employee simply stops showing up to work without notifying anyone of his or her departure, this would be considered absconding. Let’s discuss each of these in detail.

absconding When an employee decides to leave the organization without resigning and following the normal process.

Video Clip 2 This video shows the progressive discipline process and the termination of an employee when he continually fails to meet expectations.

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Resignation means the employee chooses to leave the organization. First, if an employee resigns, normally he or she will provide the manager with a formal resignation letter or e-mail. Then the manager or human resource representative may schedule an exit interview, which can consist of an informal confidential discussion as to why the employee is leaving the organization. Normally, two weeks’ notice is the standard time for resignations but can be longer for jobs with greater responsibility.

resignation When an employee chooses to leave the organization.

If it is determined that an employee should be terminated, different steps would be taken than in a resignation. First, documentation is necessary, which should have occurred in the progressive discipline process. Performance appraisals, performance improvement plans, and any other performance warnings the employee received should be readily available before meeting with the employee. It should be noted that the reliability and validity of performance appraisals should be checked before dismissing an employee based on them. Questionable performance appraisals come from the real-world conditions common to rating situations, particularly because of limitations in the abilities of the raters.[11] Remember that if the discipline process is followed as outlined prior, a termination for nonperformance should never be a surprise to an employee. Normally, the manager and someone else—for example, someone from human resources—would meet with the employee to deliver the news. It should be delivered with compassion but be direct and to the point. Depending on previous contracts, the employee may be entitled to a severance package. A severance package can include pay, benefits, or other compensation to which an employee is entitled when he or she leaves the organization. The purpose of a severance plan is to assist the employee while he or she seeks other employment. The human resources professional normally develops this type of package in con-

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severance package Includes pay, benefits, or other compensation to which employees are entitled upon leaving the organization.

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junction with the manager. Some considerations in developing a severance package (preferably before anyone is terminated) might include the following: 1. How the severance will be paid (i.e., lump sum or in x number of equal increments) 2. Which situations will pay a severance and which will not. For example, if an employee is terminated for violation of a sexual harassment policy, is a severance still paid? 3. A formula for how severance will be paid, based on work group, years with the organization, and so on 4. Legal documents, such as legal releases and noncompete agreements 5. How accrued vacation and/or sick leave will be paid, if at all The last topic that we should discuss in this section is the case of an absconded employee. If an employee stops showing up to work, a good effort to contact this person should be the first priority. If after three days this person has not been reachable and has not contacted the company, it would be prudent to stop pay and seek legal help to recover any company items he or she has, such as laptops or parking passes. Sometimes rather than dealing with individual performance issues and/or terminations, we find ourselves having to perform layoffs of several to hundreds of employees. Let’s address your role in this process next.

Rightsizing and Layoffs rightsizing Refers to the process of reducing the total number of employees to ultimately save on costs.

Rightsizing refers to the process of reducing the total number of employees to ultimately save on costs. Downsizing ultimately means the same thing as rightsizing, but the usage of the word has changed in that rightsizing seems to define the organization’s goals better, which would be to reduce staff to save money, or rightsize. When a company decides to rightsize and, ultimately, engage in layoffs, some aspects should be considered. First, is the downturn temporary? There is nothing worse than laying people off only to find that as business increases, you need to hire again. Second, has the organization looked at other ways to cut expenses? Perhaps cutting expenses in other areas would be advisable before choosing to lay people off. Finally, consideration should be given to offering temporary sabbaticals, voluntary retirement, or changing from a full- to part-time position. Some employees may even be willing to take a temporary pay cut to reduce costs. Organizations find they can still keep good people by looking at some alternatives that may work for the employee and the organization, even on a temporary basis. If the company has decided the only way to reduce costs is to cut full-time employees, this is often where human resources should be directly involved to ensure legal and ethical guidelines are met. Articulating the reasons for layoffs and establishing a formalized approach to layoffs is the first consideration. Before it is decided who should get cut, criteria should be developed on how these decisions will be made. Similar to how selection criteria might be developed, the development of criteria that determine which jobs will be cut makes the process of cutting more fair, albeit still difficult. Establishing the criteria ahead of time can also help avoid managers trying to “save” certain people from their own departments. After development of criteria, the next phase would be to sit down with management and decide who does or doesn’t meet the criteria and who will be laid off. At this point, before the layoffs happen, it makes sense to discuss severance packages. Usually, when an employee signs for a severance package, the employee should also sign a form (the legal department can help with this) that releases the organization from all future claims made by the employee. After criteria have been developed, people selected, and severance packages determined, it’s key to have a solid communication plan as to how the layoffs will be announced. Usually, this involves an initial e-mail to all employees, letting them know of impending layoffs. Speak with each

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employee separately and then announce which positions were eliminated. The important thing to remember during layoffs is keeping your employees’ dignity; they did not do anything wrong to lose their job—it was just a result of circumstances.

Video Clip 3 We know that communicating a layoff announcement is important. This video, starring Kermit the Frog, is a good example of how not to announce layoffs—even on Sesame Street.

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Key Takeaways • Performance issues in the workplace are common. Examples of performance issues might include constant tardiness, too much time at work handling personal issues, mishandling of proprietary information, family issues, drug and alcohol problems, nonperformance, theft, or conflicts in the workplace. • Employees choose to leave organizations for internal and external reasons. Some of these may include a mismatch of career goals, conflict, overly high expectations, time-management issues, and mismatched job and skills. • Managers should develop a set of policies that deal with performance issues in the workplace. The advantage of having such a policy is that it can eliminate wrongful termination legal action. • A mandated issue is usually one that deals with safety or legal issues that go beyond the workplace. An infringement of this type of issue requires immediate attention. • A single incident may include a misstep of the employee, and he or she should immediately be spoken with to ensure it doesn’t happen again. • A behavior pattern occurs when an employee consistently exhibits a performance issue. This type of issue should be discussed with the employee and steps should be taken, such as more training, to ensure it does not continue. A persistent pattern occurs when an employee consistently exhibits a performance issue and does not improve. • At some point during the persistent pattern, disciplinary action will likely need to be taken. It is important to develop consistent procedures on how to record and handle disciplinary issues. Most employers use a progressive discipline process to accomplish this goal. • Employee separation occurs in one of three ways. First, the employee resigns from the organization. Second, the employee is terminated for performance issues, and third, an employee absconds. Absconding means the employee abandons his or her job without submitting a formal resignation.

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• In some cases, a severance package may be offered to the employee upon his or her departure from the organization. • Rightsizing is a term used when an organization must cut costs through layoffs of employees. Development of criteria for layoffs, communication, and severance package discussion are all parts of this process.

Exercises 1. What are some considerations to make before developing a severance package? What are the advantages of offering a severance package to your departing employees? 2. What are some common performance issues? What is your role as a manager in handling these issues?

11.2 Performance Evaluations Learning Objective 1. Define the reasons for a formal performance evaluation system. As we mentioned earlier, poor performance should never be a surprise to employees. As a good manager, it is your responsibility to give continual feedback to employees. Formalized feedback is often given through a performance appraisal process. performance evaluation system A systematic way to examine how well an employee is performing in his or her job.

A performance evaluation system is a systematic way to examine how well an employee is performing in his or her job. Performance evaluations can also be called performance appraisals, performance assessments, or employee appraisals. As an organizational leader, it is likely you will participate in such a system. The value of performance evaluations is fourfold: 1. The evaluation process should encourage positive performance and behavior. 2. It is a way to satisfy employees’ curiosity as to how well they are performing in their job. 3. It can be used as a development tool for employees. 4. It can be used as a basis for pay raises, promotions, and legal disciplinary actions. Although managers are normally required to complete performance evaluations on their employees, the advantages are great. Consider it a way to continually develop a relationship with your employee. However, note that any good manager focuses on providing continual feedback to employees—not only at performance review time.

Performance Appraisal Process Some researchers suggest that the performance appraisal system is perhaps one of the most important parts of the organization,[12] while others suggest that performance appraisal systems are ultimately flawed,[13] making them worthless. For the purpose of this section, let’s assume we will use a performance appraisal system that will provide value to the organization and the employee.

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When designing this process, we should recognize that any process has its limitations, but if we plan it correctly, we can minimize some of these. The first step in the process is to determine how often performance appraisals should be given. Some organizations choose to give performance evaluations once per year, while others give them twice per year or more. The advantage to giving an evaluation twice per year, of course, is more feedback and opportunity for employee development. The downside is the time it takes for the manager to write the evaluation and discuss it with the employee. If done well, it could take several hours for just one employee. Depending on your organization’s structure, you may choose one or the other. For example, if you manage only five or ten people (this is called span of control), it might be worthwhile to give performance evaluations more than once per year, since the time cost isn’t high. If you have twenty or more employees, it may not be feasible to perform this process more than once per year. Should pay increases be tied to performance evaluations? This might be the second consideration before development of a performance evaluation process. There is research that shows employees have a greater acceptance of performance reviews if the review is linked to rewards.[14] Once the frequency and rewards have been determined, it is time to begin to formalize the process. First, we will need to develop the actual forms that will be used to evaluate each job within the organization. Every performance evaluation should be directly tied with that employee’s job description. Determining who should evaluate the performance of the employee is the next decision. Most often, you as the manager will write the performance evaluation (most common method), but you may find that subordinates, customers or clients, self, and/or peers can also provide useful information. Table 11.2 shows some of the advantages and disadvantages for each source of information for performance evaluations. Ultimately, using a variety of sources might garner the best results. A 360-degree performance appraisal method is a way to appraise performance by using several sources to measure the employee’s effectiveness. Organizations must be careful when using peer-reviewed information. For example, in the Mathewson v. Aloha Airlines case, peer evaluations were found to be retaliatory against a pilot who had crossed picket lines during the pilot’s union strike against a different airline. Management of this process can be time consuming for the manager. That’s why there are many software programs available to help administer and assess 360-degree review feedback. TABLE 11.2 Advantages and Disadvantages of Performance Evaluation Sources Source

Advantages

Disadvantages

Manager/ supervisor

Usually has extensive knowledge of the employee’s performance and abilities

Bias

Self

Self-analysis can help with employee growth

In the employee’s interest to inflate his or her own ratings

Peer

Works well when the supervisor doesn’t always directly observe the employee

Relationships can create bias in the review

Can bring a different perspective since peers know the job well

If evaluations are tied to pay, this can put both the employee and the peer in an awkward situation

Favoritism

If confidential, may create distrust within the organization Customer/ client

Customers often have the best view of employee behavior

Can be expensive to obtain this feedback

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360-degree performance appraisal A method to appraise performance by using several sources to measure the employee’s effectiveness.

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Source

Advantages

Disadvantages

Can enhance long-term relationships with the customer by asking for feedback

Possible bias

Subordinate Provide data on how well the manager treats employees

Possible retaliation if results are not favorable

Can determine if employees feel there Rating inflation is favoritism within their department Subordinates may not understand the “big picture” and rate low as a result Can be used as a self-development tool for managers

If confidential, may create mistrust within the organization If nothing changes despite the evaluation, could create motivational issues among employees

Once we have made these decisions, we need to determine the method in which the employee will actually be rated. Table 11.3 shows several methods. TABLE 11.3 Advantages and Disadvantages of Performance Appraisal Methods Performance Appraisal Method

Advantages

Graphic rating scale Inexpensive to develop

Disadvantages Subjectivity

Easily understood by employees Can be difficult to use in making and managers compensation and promotion decisions Essay

Can easily provide feedback on the positive abilities of the employee

Subjectivity Writing ability of reviewer impacts validity Time consuming (if not combined with other methods)

Checklist scale

Measurable traits can point out specific behavioral expectations

Does not allow for detailed answers or explanations (unless combined with another method)

Critical incidents

Provides specific examples

Tendency to report negative incidents

Time consuming for manager Work standards approach

Ability to measure specific components of the job

Does not allow for deviations

Ranking

Can create a high-performance work culture

Possible bias Validity depends on the amount of interaction between employees and manager Can negatively affect teamwork

Management by objectives (MBO)

Open communication

Behaviorally anchored rating scales (BARS)

Focus is on desired behaviors

Many only work for some job titles

Employee may have more “buy-in” Time consuming to set up

Scale is for each specific job Desired behaviors are clearly outlined

No one performance appraisal is best, so most companies use a variety of methods to ensure the most accurate results.

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Video Clip 4 This video presents information on MBOs.

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Once we have written our performance appraisal, we need to conduct an interview with the employee. A performance review process could be intricately detailed and organized, but if the meeting with the employee doesn’t go well, the overall strategic objective of performance reviews may not be met. In Norman R. F. Maier’s famous book The Appraisal Interview, he addressed three types of appraisal interview styles. The first is the tell-and-sell interview. In this type of interview, the manager does most of the talking and passes his or her view to the employee. In the tell-and-listen interview, the manager communicates feedback and then addresses the employee’s thoughts about the interview. In the problem-solving interview, the employee and the manager discuss the things that are going well and those that are not going well, which can make for a more productive discussion. To provide the best feedback to the employee, consider the following: 1. Be direct and specific. Use examples to show where the employee has room for improvement and where the employee exceeds expectations, such as, “The expectation is zero accidents, and you have not had any accidents this year.” 2. Do not be personal; always compare the performance to the standard. For example, instead of saying, “You are too slow on the production line,” say, “The expectations are ten units per hour, and currently you are at eight units.” 3. Remember, it is a development opportunity. As a result, encourage the employee to talk. Understand what the employee feels he does well and what he thinks he needs to improve. 4. Thank the employee and avoid criticism. Instead of the interview being a list of things the employee doesn’t do well (which may give the feeling of criticizing), thank the employee for what the employee does well, and work on action plans together to fix anything the employee isn’t doing well. Think of it as a team effort to get the performance to the standard it needs to be. The result of a completed performance evaluation usually means there are a variety of outcomes that can occur after evaluating employee performance: • The employee now has written, documented feedback on his or her performance. • The organization has documented information on low performance, in case the employee needs to be dismissed. • The employee has performed well and is eligible for a raise. • The employee has performed well and could be promoted.

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tell-and-sell interview A type of performance appraisal interview in which the manager does most of the talking and passes his or her view to the employee.

tell-and-listen interview A type of performance appraisal interview in which the manager communicates feedback and then the employee’s thoughts about the interview are addressed.

problem-solving interview A type of performance appraisal interview in which the employee and the manager discuss the things that are going well and the things that are not, which can make for a more productive discussion.

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• Performance is not up to expectations, so an improvement plan should be put into place. • The employee hasn’t done well, improvement plans have not worked (the employee has been warned before), and the employee should be dismissed.

Video Clip 5 Preparing for a Performance Evaluation Meeting / Having the Performance Evaluation Discussion

Both of these videos provide some great tips on preparing for and handling a performance appraisal meeting.

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Additional Perspectives Institutional Collectivism in Leadership

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Institutional collectivism refers to the degree to which an organization or society encourages and rewards the collective distribution of resources and collective action. High institutional collectivism individuals believe they are interdependent members of the larger group and group loyalty is encouraged, even if this negatively affects the individual. Lower institutional collectivism societies and individuals believe they are largely independent of the organization and the pursuit of individual goals is the focus—even if it means loyalty to the group is compromised. Assume you have an employee who is having challenges completing his or her work and asks colleagues to help with the assigned work. You may be able to assume this person comes from a high institutional collectivism background, where this type of collective work is encouraged. Assuming most of your employees come from a low institutional collectivism society—where members view themselves as more independent—they may take issue with working too much within teams. What incorrect perceptions may result? How can you handle this situation? Source: Based on House, R., Javidan, M., & Dorfman, P. (2001). Project GLOBE: An introduction. Applied Psychology: An International Review, 50(4), pp. 489–505.

Best Practices in Performance Appraisals These are the most important things to remember when utilizing a performance evaluation system: 1. Make sure the evaluation has a direct relationship to the job. Consider developing specific criteria for each job based on the individual job specifications and description. 2. Consider involving the employee in the process by asking the employee to fill out a self-evaluation. 3. Use a variety of methods to rate and evaluate the employee. 4. Give feedback on performance throughout the year, not just during performance review times. 5. Make sure the goals of the performance evaluation tie into the organizational and department goals.

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FIGURE 11.2 Best Practices in Performance Appraisal Systems

As you can see from Figure 11.2, the performance appraisal aspect is just one part of the total process. We can call this a performance review system. The first step of the process is goal setting with the employee. This could mean showing the employee his or her performance appraisal criteria or sitting down with the employee to develop management by objectives (MBOs). The basic idea here is that the employee should know the expectations and how his or her job performance will be rated. Constant monitoring, feedback, and coaching are the next step. Ensuring the employee knows what he or she is doing well and is not doing well in a more informal manner will allow for a more productive employee. Next, of course, is the formal performance evaluation process. Choosing the criteria, rating scale, and source of the evaluation are steps we have already discussed. The next step is to work with the employee to develop improvement plans (if necessary) and offer any rewards as a result of excellent performance. The process then begins again, setting new goals with the employee.

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Video Clip 6 This funny example shows that, as managers, we need to make sure the information we provide in the performance interview is clear and concise.

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Improvement Plans Sometimes employees do not meet performance expectations. In this case, an improvement plan may be necessary. Improvement plans should not be punitive; the goal of an improvement plan should be to help the employee succeed. Coaching and development should occur throughout the employee’s tenure, and he or she should know before the performance evaluation whether expectations are not being met. This way, the introduction of an improvement plan is not a surprise. There are six main components to an employee improvement plan: 1. Define the problem. 2. Discuss the behaviors that should be modified based on the problem. 3. List specific strategies to modify the behavior. 4. Develop long- and short-term goals. 5. Define a reasonable timeline for improvements. 6. Schedule “check-in” dates to discuss the improvement plan.

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improvement plans A document developed by both manager and employee to address any performance deficiencies.

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FIGURE 11.3 Sample Performance Improvement Plan Whichever direction is taken with disciplining of the employee, documentation is key throughout the process to avoid wrongful termination issues.

An employee improvement plan works best if it is written with the employee in order to obtain maximum buy-in.

Key Takeaways • A performance evaluation system is a systematic way to examine how well an employee is performing in his or her job. • The first step in designing a performance appraisal process is to determine how often the appraisals will be given. Consideration of time and effort to administer the evaluation should be a deciding factor. • Many companies offer pay increases as part of the system, while some companies prefer to separate the process. Determine how this will be handled is the next step in the performance appraisal development process. • After determining how often the evaluations should be given, and if pay will be tied to the evaluations and goals, you can now sit down and develop the process. • A 360-degree review process combines several sources for a more thorough review. • There are some errors that can occur in the process. These include the halo effect or comparing one employee to another as opposed to rating employees only on the objectives. • There are a number of different types of rating methods: graphic rating scales, essay, checklist, critical incidents, work standards approach, management by objectives, and behaviorally anchored rating scales (BARS). • Be aware of bias that can occur with performance appraisal systems. • Feedback should be given throughout the year, not just at performance appraisal time. • Sometimes when performance is not up to standard, an improvement plan may be necessary. The improvement plan identifies the problem, the expected behavior, and the strategies needed to meet the expected behavior. The improvement plan should also address goals, timelines to meet the goals, and check-in dates for status on the goals.

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Exercises 1. Perform an Internet search on 360-degree review software. Compare at least two types of software and discuss the advantages and disadvantages of each. 2. Discuss the advantages and disadvantages of each type of performance evaluation source.

11.3 Chapter Summary and Case Chapter Summary • A performance evaluation system is a systematic way to examine how well an employee is performing in his or her job. • The first step in designing a performance appraisal process is to determine how often the appraisals will be given. Consideration of time and effort to administer the evaluation should be a deciding factor. • Many companies offer pay increases as part of the system, while some companies prefer to separate the process. Determining how this will be handled is the next step in the performance appraisal development process. • After determining how often the evaluations should be given, and if pay will be tied to the evaluations and goals, you can now sit down and develop the process. First, determine what forms will be used to administer the process. • After you have determined what forms will be used (or developed), determine who will be the source for the information. Managers, peers, and customers are options. A 360-degree review process combines several sources for a more thorough review. • There are some errors that can occur in the process. These include the halo effect or comparing one employee to another as opposed to rating him or her only on the objectives. • When developing performance appraisal criteria, it is important to remember that there are a number of different types of rating methods: graphic rating scales, essay, checklist, critical incidents, work standards approach, management by objectives, and behaviorally anchored rating scales (BARS). The criteria should be job specific and industry specific. • There are many best practices to consider when developing, implementing, and managing a performance appraisal system. First, the appraisal system must always tie into organization goals and the individual employee’s job description. • Involvement of managers in the process can initiate buy-in for the process. • Consider using self-evaluation tools as a method to create a two-way conversation between the manager and the employee. • Use a variety of rating methods to ensure a more unbiased result. For example, using peer evaluations in conjunction with self- and manager evaluations can create a clearer picture of employee performance. • Feedback should be given throughout the year, not just at performance appraisal time. • The goals of a performance evaluation system should tie into the organization’s strategic plan, and the goals for employees should tie into the organization’s strategic plan as well. • The process for managing performance evaluations should include goal setting, monitoring and coaching, and doing the formal evaluation process. The evaluation process should involve rewards or improvement plans where necessary. At the end of the evaluation period, new goals should be developed and the process started over again.

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• Standards should be developed for filling out employee evaluations to ensure consistency and avoid bias. • Sometimes when performance is not up to standard, an improvement plan may be necessary. The improvement plan identifies the problem, the expected behavior, and the strategies needed to meet the expected behavior. The improvement plan should also address goals, timelines to meet the goals, and check-in dates for status on the goals.

Chapter Case Revamping the System As the manager of GrocRight, an online grocery delivery service, your span of control is four. You and your team are responsible for marketing the online grocery service. You enjoy your job, but lately you have had some problems with one of your employees, Amiee. She came on your team six months ago and was very enthusiastic, motivated, and had great new ideas for marketing your grocery service. Over the last few months, Amiee has been late to work at least twice per week and has shown up obviously hung over and not able to function. She hardly speaks in team meetings and doesn’t seem engaged. You are concerned about Amiee—not only because she is your employee but because you like her as a person. 1. How would you handle this situation with Amiee? 2. How could you apply the progressive discipline process in this situation?

Endnotes 1. Rosen, L. (2001, August 12). Studies show drugs in workplace cost employers billions and small businesses employ more drug users but drug test less. Retrieved from http://www.esrcheck.com/wordpress/2011/08/ 12/studies-show-drugs-in-workplace-cost-employers-billions-and-smallbusinesses -employ-more-drug-users-but-drug-test-less 2. Fisher, B. (2011, March 6). Targeting prescription drug abuse. Ventura County Star. Retrieved from http://www.vcstar.com/news/2011/mar/06/ targeting-prescription-drug-abuse 3. Net Industries. (n.d.). Employee theft: Legal aspects—estimates of cost. Retrieved from http://law.jrank.org/pages/1084/Employee-Theft-LegalAspects-Estimates-cost.html 4. Battey, J. (2000, October 2). Careers by the numbers. InfoWorld. Retrieved from http://books.google.com/ books?id=ST0EAAAAMBAJ&lpg=PA93&ots=KU2eMTa3C3&dq=Careers By the Numbers InfoWorld October 2, 2000&pg=PA93# v=onepage&q&f=false. 5. Smith, C., & Kanalley, C. (2010, July 26). Fired over Facebook: 13 posts that got people canned. Huffington Post. Retrieved August 1, 2011, from http://www.huffingtonpost.com/2010/07/26/fired-over-facebook-posts_ n_659170.html#s115752&title=13_Virgin_Atlantic

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6. Chandler, R. (2011, May 11). Ex-Colts cheerleader sues team over dismissal for Playboy pics. NBC Sports. Retrieved August 1, 2011, from http:/ /offthebench.nbcsports.com/2011/05/11/ex-colts-cheerleader-suesteam-over-dismissal-for-playboy-pics 7. Maletta, Z. (n.d.). How to manage an employee with a personality disorder. Houston Chronicle. Retrieved from http://smallbusiness.chron.com/ manage-employee-personality-siorder-13807.html 8. Giuliano, J. (2012, February 22). What if employee makes false claim of harassment? Business Brief. Retrieved from http://www.businessbrief. com/what-if-employee-makes-false-claim-of-harassment9. National Labor Relations Board. (2011, March 28). Administrative law judge orders San Juan company to respect employee Weingarten Rights. Retrieved from http://www.highbeam.com/doc/1G1-251244832.html 10. National Labor Relations Board. (2011, March 28). Administrative law judge orders San Juan company to respect employee Weingarten Rights. Retrieved from http://www.highbeam.com/doc/1G1-251244832.html 11. Weekley, J. (1989). Ceilings in the reliability and validity in performance ratings. Academy of Management Journal, 32(1), pp. 213–222. 12. Lawrie, J. (1990, April). Prepare for a performance appraisal. Personnel Journal, 69, pp. 132–136. 13. Derven, M. (1990, February). The paradox of performance appraisals. Personnel Journal, 69, pp. 107–111. 14. Bannister, B., & Balkin, D. (1990, June). Performance evaluation and compensation feedback messages: An integrated model. Journal of Occupational Psychology, 63, pp. 97–111.

CHAPTER 12

Leading Change Any change, even a change for the better, is accompanied by drawbacks and discomforts. — Arnold Bennett A small group of thoughtful people could change the world. Indeed, it’s the only thing that ever has. — Margaret Mead

12.1 Change at the Fruit Warehouse A big all-staff meeting had employees a bit nervous. Normally, the fruit warehouse did not have all-staff meetings and this one was required for all employees. When Amy, the warehouse manager stood in front of the employees, she began the meeting by saying “big changes” were coming for the organization. She explained there would be new robotic machines installed over the next six months and all warehouse employees would be required to learn how to operate the new machines if they wanted to keep their jobs. She said the machines would make the fruit sorting process much faster and, with it, the organization would grow into one of the largest processing plants in Washington State. “The problem,” said Amy, “is that our current capacity is limited by the amount of processing we can do in one week. These new machines will speed up the process and allow for mechanical fruit sorting instead of hand sorting. The machines will enable us to process thirty times more fruit per day than we do now.” Amy then showed photographs of the new machines and explained how they worked. The all-staff meeting was adjourned, with employees not able to ask questions. When employees walked away from the meeting, questions such as “How hard will the machines be to learn?” and “Will the company really need to keep all of us if they install these new machines?” were on everyone’s mind. As a manager, shepherding employees through a change process can be challenging. This chapter discusses some of the best ways to handle change as a leader and goes over what not to do when helping employees deal with change. Can you recognize what Amy might have done wrong in this initial change announcement?

12.2 What Is Change? Learning Objectives 1. Define change and the types of changes you might deal with as a leader. 2. Explain the major change-management theories.

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What Is Change? change management An approach used to transition employees, teams, and organizations from the current state to a desired state.

change leadership A process that looks at driving forces, processes, and visions that can help a change occur and usually involves larger-scale changes, such as a major reorganization.

Change management is defined as an approach used to transition employees, teams, and organizations from the current state to a desired state. This is different from change leadership, according to management guru John Kotter. According to Kotter, change management is the set of tools used to help people or teams achieve a change. It usually involves smaller-scale changes. On the other hand, change leadership looks at the driving forces, processes, and visions that can help a change occur and usually involves larger-scale changes, such as a major reorganization.[1] For the purposes of this chapter, we discuss both change management and change leadership. Before we discuss how to shepherd employees through the change process, it is important to discuss how managers tend to view change, through a concept called the Four Frames. Using the Four Frames model allows us to understand our leadership focus—and how we can handle change. According to Lee Bolman and Terrence Deal,[2] most organizational leaders look at their organizations and decision making within four frames: structural, human resources, political, or symbolic. Each of the frames can help prepare leaders to make a decision by asking them to look at all aspects involved—even if some of the aspects are not normally the focus of that individual leader. Most leaders look at business change using one or two frames, but Bolman and Deal’s model challenges us to look at all four before we decide to implement a change. The value of the model is twofold. First, understanding your framing tendencies can help you become a better leader. Second, we can use the Four Frames to determine if a change is even necessary. The four frames are as follows: 1. Structural. Leaders who generally use this frame believe in setting policies and goals. 2. Human resource. Leaders who generally use this frame focus on the organization as a family and take into account people’s feelings, needs, and skills. 3. Political. Leaders who focus on this frame tend to look at the organization as a “jungle” and members as being in competition for scarce resources. They focus on negotiating, bargaining, and alliances. 4. Symbolic. Leaders who take a symbolic approach look at their organization as a “tribe” and focus on the culture of the organization. Understanding how you normally frame is important, but awareness that others may frame differently is an important distinction, too. For example, suppose you tend to be more structural in your focus. As a result, when determining change, you tend to focus on the new policies and procedures that will need to be put into place. Your colleague, who may be more symbolically focused, is concerned about entirely different issues—such as the loss or change of culture in the organization. By understanding your frame—and frames of your colleagues—you can shepherd the change process more easily. If we apply these basic philosophies to management of change in an organization, each of the four frames and views on change might include the following: 1. Structural. Leaders who mostly use this approach in day-to-day leadership tend to focus on strategy and implementation. Their view is the need for goals and rules to attain the change. 2. Human resources. Leaders who approach change from this frame tend to focus on people, including support, empowerment, and employee needs. 3. Political. In order to facilitate a change, a political leader will focus on building alliances and dealing with special interest groups within the organization. 4. Symbolic. Leaders who focus symbolically will focus greatly on the vision and culture and attempt to inspire individuals toward the change. When we combine each of the frames and our tendency toward each, we can understand the type of decision or change that needs to be made. Using the four frames can also help us see the

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framing of the change. For example, is the change a human resource–focused change or is it a structural one? Having this information can help us frame the change and plan accordingly. For example, we can ask ourselves the following questions: • What is the actual problem we are trying to solve with the proposed change? Is it structural, human resources, political, or symbolically focused? • Which frame is best suited to navigating the change? Not every framework will work best in every situation. For example, if individual commitment and motivation toward a change are essential in the success of the change, it would make sense to frame the change from a human resource or symbolic perspective. On the other hand, if the levels of uncertainty are low, a leader may decide to frame the change as structural. Because of this, as leaders, it is our responsibility to motivate others to change their frame of reference. FIGURE 12.1 Bolman’s Four Frames How do you think the leaders should frame the change in our opening story?

Bolman’s Leadership Test Bolman’s Leadership Test determines your preferred orientation when using the four frames: structural, human resources, political, and symbolic. Take the quiz and determine which best fits your current or future style as a leader. http://www.leebolman.com/Leadership%20Orientations.pdf

Once we have analyzed a potential change, it is important to recognize the type of change that will occur. There are four main types of changes that can happen within organizations, according to early organization research by David Nadler and Michael Tushman:[3] structural, strategic, people, and processes.

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FIGURE 12.2 Main Types of Changes in Organizations What type of change is discussed in our opening story?

As you can see in Figure 12.2, strategic change refers to a complete change in how a company does business—for example, entering into a global market or offering new products. Structural changes refer to the skeletal way the company does business. Changing the organizational chart to combine two departments is an example of a structural change. People change might be the departure of the chief executive officer or manager. Process changes often occur to promote workplace efficiency, such as a new process to report sales. Each of these types of changes is discussed later in the chapter. First, let’s discuss what can happen if we do not manage or lead the change effectively.

Additional Perspectives Uncertainty Avoidance in Leadership Uncertainty avoidance refers to the extent to which an organization, society, or group relies on social norms to alleviate the unpredictability of future events. A person with high uncertainty avoidance may use more formality, be orderly, and resist change. A person with low uncertainty avoidance may be less calculating when taking risks and tend to be less orderly. When discussing change, uncertainty is sure to follow. Assume you and your team have decided to move resources from project A to project B and will be canceling project A entirely. A person with high uncertainty avoidance will likely show strong resistance to change, while someone with low uncertainty avoidance may show only moderate resistance to change. As a leader, how can you assist both groups of individuals with handling this change? Source: Based on House, R., Javidan, M., & Dorfman, P. (2001). Project GLOBE: An introduction. Applied Psychology: An International Review, 50(4), pp. 489–505.

Video Link 12.1 The Four Types of Changes The following video discusses the four types of changes in organizations: http://study.com/academy/lesson/organizational-change-causes-types-challenges-formanagers.html

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Outcomes of Poor Change Management Before we discuss change management theories, it is important to recognize the possible outcomes if we, as leaders, do not manage change appropriately. When employees ultimately resist change because we did not handle the process appropriately, some of the following outcomes might occur:[4] • Project delays, which can cost the organization time, money, and client satisfaction • Missed objectives and targets • Decline in productivity • Absenteeism because of unhappy employees • Loss of valued employees who choose to leave • Inadequate preparation for succession management In order to avoid these detrimental outcomes, understanding change management theories and how we can apply these theories in our organizations is perhaps one of the most important topics about change. We address this next.

Change Management To understand how we can shepherd employees through change, it is important to understand why change may be resisted in the first place. In the model presented in Table 12.1, we see three categories of change resistance: organizational, group, and individual. Each of these possible reasons for resistance can affect the change process. TABLE 12.1 Causes of Resistance to Change Organizational Causes

Group Causes

Individual Causes

Threats to power

Group norms

Fear of the unknown

Group inertia

Group cohesion

Fear of failure

Organizational structure

Leadership

Job security

Sunk costs

Individual characteristics

Resource constraints

Previous experiences

When looking at change from the leadership perspective, it is important to recognize the organizational issues that may prevent a needed change from happening.[5] For example, some midlevel leaders in the organization may see change as a threat to their power and influence. Group inertia refers to the resistance that can occur when individuals are unwilling to accept a change because their group as a whole is unwilling to accept the change. The organizational structure can also affect change. For example, consider a government agency that may be heavily bureaucratic with defined jobs and lines of authority. This type of organizational structure may not accept change as readily—because the structure itself makes change difficult. For example, the recent discussion by Congress and the US Postal Service (USPS) to stop Saturday delivery[6] shows the bureaucratic processes and how difficult it can be to make a decision that “sticks” when faced with organizational issues. The amount of resources available—or resources already spent (sunk costs)—can keep an organization moving in a direction that may not be the correct course of action. Consider this example. A small bakery has contracted with a specialty software firm to help it manage its accounting processes. The total cost for implementation was $9,000. The software does not work as

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promised and has numerous glitches. It is suggested to the bakery owner to just invest in different software, such as QuickBooks. The owner, because of $9,000 in sunk costs, may be resistant to this change—even though the change would be positive. Some of the group resistance to change can include[7] group norms, group cohesion, and leadership. Group norms are the way employees, as a group, handle change. For example, in a group setting, the comfort level and tolerance for change—and the types of changes—may be dictated by the group norms. Group cohesion means a group may be resistant to change because it wants to keep the group and tasks the same. For example, assume a company is considering a reorganization to better utilize resources. Employees may be resistant to the change if they think it would mean they might not be working with the same people. Another resistance to change in terms of group could be the way the group views the leadership. If there is a mutual trust and vision, groups are more likely to accept a change. However, if this doesn’t exist, the group may be resistant to the change because it does not trust the motives of the leaders. Individual characteristics also affect the acceptance of or resistance to change.[8] As humans, we tend to fear the unknown. We may be concerned that our skills will not be valued once a change occurs, causing fear of failure. For example, consider an employee who is very skilled at using a particular robotic machine in a warehouse. If that technology is changed, the employee may be resistant to the change because of worry that his or her skills may not be as valued with the change. People also worry about job security, and they may fear that a particular change could result in the loss of a job or income. As you read about in Chapter 2, individual characteristics can affect the level of acceptance to change. Personality traits impact how willing we are to accept change as employees. Previous experience can also impact our willingness to accept a change. For example, if twenty employees lost their jobs the last time Joe’s company had a reorganization, talk of a new reorganization may concern him since he has had a previous negative experience. Now that we understand the reasons people may resist change, we can begin to discuss the process that occurs within organizations, groups, and individuals in acceptance of a change. According to research performed by Alannah Rafferty, Nerina Jimmieson, and Achilles Armenakis,[9] several layers must be present in order for people to accept a change. In their research, they discuss the need for external pressures, group characteristics, and change readiness as factors when employees accept a change. They also discuss the need for supportive behaviors throughout the change in order to avoid resistance to the change, as you can see in Figure 12.3.

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FIGURE 12.3 Forces Affecting Change Now that we have discussed some of the causes for resistance to change—and the forces that affect a change—we will discuss some of the ways we, as leaders, can begin a change process in order to ensure its success.

Key Takeaways • Change management is an approach used to transition employees, teams, and organizations from the current state to a desired state. • Change leadership is a process that looks at driving forces, processes, and visions that can help a change occur and usually involves larger-scale changes, such as a major reorganization. • There are four main types of changes that can happen within organizations: structural, strategic, people, and processes. • Project delays can cost the organization time, money, and client satisfaction. • There are many disadvantages to not managing change correctly—for example, missed objectives and targets, decline in productivity, absenteeism because of unhappy employees, and loss of valued employees who choose to leave. • Organizational, group, and individual resistance to change are all factors that make change more difficult. Organizational resistance to change might include group inertia, organizational structure, sunk costs, and resource constraints. Group resistance to change might include group cohesion and leadership. Individual causes can include fear of failure, job security, individual characteristics, and previous experience. • External forces, group and individual characteristics, and change readiness are the factors affecting change. By understanding these forces, we can begin to understand how these forces may help or hinder a change.

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Exercises 1. Discuss a change you have recently undergone and what resistance factors were at play for you to not want to make the change. 2. Using the same example from the previous question, identify the forces that affected the change.

12.3 Change Process Learning Objective 1. Discuss the leading theories on management of change processes. Now that we have discussed the reasons people resist change and the forces that cause a change to happen, it is appropriate to begin discussing the models we can use to manage change within our organizations.

Kotter’s Change Model John P. Kotter’s[10] research on change involves one model, which consists of eight steps to making a change. Kotter divides the steps into three categories: creating a climate for change, engaging and enabling the entire organization, and implementing and sustaining the change. Within each of these categories, Kotter discusses what needs to occur in order for each step to happen. Kotter’s model is presented in Figure 12.4 and Figure 12.5. FIGURE 12.4 Kotter’s Model on Change

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Video Clip 1 This video gives a good example of how Kotter’s model works.

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FIGURE 12.5 Kotter’s Change Process Steps The important thing to note about Kotter’s model is the ideology that in order for change to happen, people must be driven to make it happen.

Lewin’s Model Kurt Lewin’s change model[11] consists of three steps: unfreezing, change, and refreezing. In other words, some major force must be present to cause a change to happen. A leader then needs to create a culture that allows the change to happen. Then new mechanisms and processes are put in place to support the change. The model is shown in Figure 12.6. The value of Lewin’s model stems © 2018 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.

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from its simplicity. As leaders, we need to understand the three-step process in order to ensure all three steps happen. If one step is missing—or not performed correctly—then it will be impossible to make the change “stick.” For example, in 1997, Apple hired back Steve Jobs (now deceased) after thirteen consecutive years of losses (this was after he had been fired once already for not being aligned with company strategy). He restructured the organization to focus not only on computers but on consumer electronics. In doing so, he cut a major project called “Newton,” which had sucked countless hours and $150 billion from the company.[12] In this example, the consecutive loss of funds and near bankruptcy is the unfreezing. During the change phase, Jobs restructured the organization and put the core competency focus on new products such as the iPod. He canceled the Newton project, which had extensive sunk costs. During the refreezing phase, Jobs awarded incentives to employees for creativity and new ideas. All in all, Jobs took the company to what it is today, with a staggering $752 billion market value.[13] This attests to the importance of managing change.

Video Clip 2 This video gives a good example on how Lewin’s model works.

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FIGURE 12.6 Lewin’s Three Phases of Change

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Beer and Nohria’s Model In their book Breaking the Code of Change,[14] Michael Beer and Nitin Nohria discuss the two ways managers and leaders view change. According to their research, there are two theories in relation to change—Theory O and Theory E. Simply put, Theory E has a focus on economic value and uses this as a basis for making business decisions. Theory O, on the other hand, aims to understand culture, human capital, and gain of employee commitment when making organizational changes. Similar to any leadership action, these two approaches are guided by management assumptions about the purpose for and the meaning of organizational change. Theory E’s focus is the creation of economic value. The focus, as a result, is the formal structures and systems. This type of organization is driven from the top, with decisions made at the top and trickled down to employees. Change is planned and programmed for these types of organizations. Jack Welch, the famous retired General Electric chief executive officer (CEO), took a Theory E approach when he first took over the company. He demanded that every business unit at General Electric be the top one or two in its industry. Businesses that didn’t meet this objective were closed, fixed, or sold. This is when General Electric implemented major downsizing and cut 113,000 workers from its high of 412,000. The cuts occurred even during a 19 percent increase in revenue. The Theory E approach taken by Welch was considered harsh by some but got results.[15] After this initial phase of change, Welch took a Theory O approach. Theory O, on the other hand, makes the organizational purpose the development of human capability to implement strategy. The focus then is on the development of a culture that has highly committed employees. Rather than use incentives often, change emerges and is less planned. In our Jack Welch example, he realized that using only a Theory E approach was not sufficient, so he then switched to a Theory O approach. In this approach, he called the organization “boundaryless” and encouraged new innovations. Figure 12.7 shows some examples of the various attitudes on a variety of possible changes.

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Theory E A change theory that focuses on economic value.

Theory O A change theory with a focus on culture, human capital, and gain of employee commitment.

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FIGURE 12.7 Beer and Nohria’s Model

Source: Beer, M., & Nohria, N. (2000, May–June). Cracking the code of change. Harvard Business Review. Retrieved from http:// webdb.ucs.ed.ac.uk/operations/honsqm/articles/Change2.pdf.

When creating change within an organization, there is constant tension between Theory E and Theory O. Awareness of these factors can help us, as leaders, understand if a Theory E or Theory O approach is necessary. Beer and Nohria say various challenges can occur when handling change. First, the managers and leaders themselves may have a different focus on how to manage change. Second, the organizational culture may lend itself well to one theory or the other. For example, failed companies like Enron used a Theory E approach—which is all about maximizing shareholder value. On the other hand, companies cannot only use a Theory O approach, since some of the focus of change certainly needs to be on economic value. As a result, companies face a tension when trying to consider both E and O in their change processes. As you have probably guessed, most managers and leaders will use a combination of all approaches to change we have discussed. In doing so, they are better able to understand all the nuances that may occur when change needs to happen. In Section 4, we discuss how we can use these models as a guide for managing change in our organizations.

Key Takeaways • As leaders, we can use change models to help us understand how to usher a change. • The Kotter change model consists of eight steps. The first is creating the sense of urgency among employees. Second, develop the guiding coalition. Third and fourth, develop the vision and communicate it. Fifth, empower action in employees. Sixth and seventh, generate short-term wins and consolidate wins. Last, make it stick!

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• Lewin’s change model consists of three steps: Unfreezing, change, and refreezing. In other words, some event occurs that results in the need for change (unfreezing). Second, the organization must implement the culture and creation of new behavior for the change. Finally, refreezing occurs when new processes and other supporting mechanisms help the change become a reality. • The Beer and Nohria model focuses on the two philosophies behind change: Theory E and Theory O. Theory E focuses on economic value, while Theory O focuses on human capital, culture, and commitment. Most organizations will use a combination of both to implement successful change.

Exercise 1. Discuss a recent change you have encountered, either professionally or personally. Then, using one of the models as a guide, discuss how you handled the change.

12.4 Guidelines for Change Implementation Learning Objective 1. Explain some tips for change implementation. When taking into account the management of small or large changes, there are a number of things to consider. When we consider our discussion so far in the chapter, why people resist change, why change occurs, and the change models themselves, we can systematically use these pieces of information to shepherd change within our organizations. There are literally thousands of pieces of data that discuss how to implement change. In this section, we discuss general tips for change implementation, the DICE technique, and a leadership checklist for change.

Video Clip 3 (Part 1) Change Management

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Many people present good information on how to manage change in organizations. Here are a few video clips providing tips and techniques on implementing small- and large-scale changes.

View in the online reader

View in the online reader

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Video Clip 3 (Part 2)

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TABLE 12.2 Getting Change to Stick Earn trust

Consider people

Involve people

Make sure all management understands the direction

Be able to make the formal case for change

Accountability and ownership

Overcommunicate

Address cultural issues

The first aspect to change management is people. Since, as a leader, you cannot make all the changes yourself, you must guide others toward change and encourage it. When introducing a new change, people will always be worried about their job, their security, and the value of their skills. As a leader, being able to address these concerns before they arise can be a good way to earn trust. One way these concerns can be addressed is by asking your people what changes they think need to be made. This gets “buy-in” for change and can motivate employees to think outside of their everyday jobs.

Morten Hansen’s Tips on Getting People to Change According to Morten Hansen, leaders can have a vision to change, but employees must change also to obtain the desired results. Here are some tips on getting people to change: • Don’t focus on more than one change at a time. • The change needs to be specific. • Show the employees the benefits to the change. • Get buy-in for the change early. • Be prepared to make small changes based on feedback. • Change behaviors by removing enablers, triggers, and barriers. • Provide intrinsic or extrinsic incentives to motivate change. • Be a good leader. • Change the team members if necessary.

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Source: Based on Hansen, M. (2012, September 21). Ten ways to get people to change. Harvard Business Review. Retrieved from http://blogs.hbr.org/cs/2012/09/ten_ways_to_get_people_to_ chan.html.

Video Clip 4 In this funny video, you can see how change begins. Embracing change usually involves people willing to adopt early, those who adopt a change somewhere in the middle, and late adopters. Which one are you?

View in the online reader

Make sure leaders in the organization, such as midlevel managers, accept the change. Since most employees will look toward those managers for guidance, if the manager has the attitude of “it’s just the flavor of the week,” it is unlikely the changes will stick. Besides buy-in from management, we also want to make sure they are involved in the decision-making processes and understand the reasons for the change. In addition, we want them to know the entire vision and be able to communicate that vision. All the models discussed in this chapter involve getting buy-in from employees: Theory O, Kotter, and Lewin. This may be the most important aspect of change. Since people are inherently rational, making a rational case for a change can help shepherd the change. In our earlier example of Apple, the company was going bankrupt, so they needed to change their product focus. Being able to articulate the change and give a reason for it will gain the buy-in we want. In fact, in Kotter’s model, the first step is to create a sense of urgency for change. This can be done through communication. As managers and leaders, we cannot do everything ourselves. This is why we need to formulate a plan and assign ownership of aspects of the plan throughout our organization. This is the “change” and “refreezing” phase of Lewin’s model, discussed earlier. Ownership means accountability, which usually means more focused action toward the end goals. Keep in mind, it is not possible to overcommunicate the vision, the change, or the plans for the change. Not to mention, as smaller successes occur, congratulating and communicating those are an important aspect, tying into the Kotter model we discussed earlier. In addition, the Theory O model looks at using human capital in order to accomplish tasks—and communication is the first step toward this goal. We can also look at something called “DICE” to assist the change process:[16] • Duration. Changes should be reviewed often as a sort of “check-in” to see how the change is going. If it isn’t going well and check-ups are often, we can see early on that the change isn’t working and make adjustments. • Integrity. This refers to the employee’s ability and skills to follow through on a project.

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• Commitment. Commitment to change by top-level managers and employees will help determine the success of a change. • Effort. When implementing a change, a significant amount of additional effort may be required. Are employees and management willing and able to put in this extra effort? If not, it might be time to look at the framing of the change and put more focus on the human resources frame. In summary, we can use a change checklist as we begin to make changes to ensure the change is needed and implemented successfully, as you can see in Table 12.3. TABLE 12.3 A Change Checklist Key Questions in Each Step Laying the foundation for change

• Why is this change necessary? • How can we frame the change using Bolman and Deal’s model? • What is our end-state vision, using Lewin’s model? • What are our goals in making this change?

What do you need to know?

• What process will we use for the change? • What “resistance to change” factors might be present? • What are the upsides and downsides to the change for everyone involved? • Who can we trust in the organization to champion the change? • What happens if we do not make the change?

Planning

• How can we use Kotter’s and Lewin’s models to guide the change process? • Is the change a Theory E or O change? • How will we introduce the change to employees? • Do employees need training to be successful with the change? • What types of communications should be given about the change?

Implementation

• What metrics will we use to measure the change? • How can we make this change “stick” using the Lewin model? • How are we reinforcing change behavior with our employees? • Does the direction need to change? • What are our next steps?

Check-in

• What is working and what is not? • How do we fix what is not working? • Using the Lewin model, how well is the refreezing going? Do we need to make changes?

Change is not a simple process. By understanding what forces can cause change to happen, why people are resistant to change, and various change models we can use to implement change, we have a better chance at successful change implementation.

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Key Takeaways • No matter whether a change is big or small, as leaders it is our responsibility to make sure we shepherd the process correctly to ensure the change “sticks.” • A few ways to get change to stick might include earning the trust of your employees, considering involvement of both employees and other management, and ensuring management understands the direction of the change. In addition, we should make sure we have a formal case for implementing a change (as opposed to change for change’s sake). Give people accountability and ownership, communicate the change, and address any company cultural issues that may make the change challenging to implement.

Exercise 1. Perform research on change. Come up with at least five tips not already discussed in this section. Explain them in four to five paragraphs.

12.5 Chapter Summary and Case Chapter Summary • Change management is an approach used to transition employees, teams, and organizations from the current state to a desired state. • Change leadership is a process that looks at driving forces, processes, and visions that can help a change occur and usually involves larger-scale changes, such as a major reorganization. • There are four main types of changes that can happen within organizations: structural, strategic, people, and processes. • Project delays can cost the organization time, money, and client satisfaction. • There are many disadvantages to not managing change correctly—for example, missed objectives and targets, decline in productivity, absenteeism because of unhappy employees, and loss of valued employees who choose to leave. • Organizational, group, and individual resistance to change are all factors that make change more difficult. Organizational resistance to change might include group inertia, organizational structure, sunk costs, and resource constraints. Group resistance to change might include group cohesion and leadership. Individual causes can include fear of failure, job security, individual characteristics, and previous experience. • External forces, group and individual characteristics, and change readiness are the factors affecting change. By understanding these forces, we can begin to understand how these forces may help or hinder a change. • As leaders, we can use change models to help us understand how to usher a change. • The Kotter change model consists of eight steps. The first is creating the sense of urgency among employees. Second, develop the guiding coalition. Third and fourth, develop the vision and communicate it. Fifth, empower action in employees. Sixth and seventh, generate short-term wins and consolidate wins. Last, make it stick! • Lewin’s change model consists of three steps: unfreezing, change, and refreezing. In other words, some event occurs that results in the need for change (unfreezing). Second, the organization must implement the culture and creation of new behavior for the change.

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Finally, refreezing occurs when new processes and other supporting mechanisms help the change become a reality. • The Beer and Nohria model focuses on the two philosophies behind change: Theory E and Theory O. Theory E focuses on economic value, while Theory O focuses on human capital, culture, and commitment. Most organizations will use a combination of both to implement successful change. • No matter whether a change is big or small, as leaders it is our responsibility to make sure we shepherd the process correctly to make sure the change “sticks.” • A few ways to get change to stick might include earning the trust of your employees, considering involvement of both employees and other management, and ensuring management understands the direction of the change. In addition, we should make sure we have a formal case for implementing a change (as opposed to change for change’s sake). Give people accountability and ownership, communicate the change, and address any company cultural issues that may make the change challenging to implement.

Chapter Case Read the following article that gives a brief description of the five greatest examples of change management in business history. Then answer the questions that follow. http://www.managers.org.uk/insights/news/2015/july/the-5-greatest-examples-of-changemanagement-in-business-history http://www.change-management.com/tutorial-case-studyASHLAND.htm 1. Which change management theories do you see within each of the examples in the article? 2. Research each company and address how well that company is doing today. Do you think the changes “stuck”? Why or why not?

Endnotes 1. Kotter, J. (2011, July 12). Change management versus change leadership—What’s the difference? Forbes Magazine. Retrieved from http:/ /www.forbes.com/sites/johnkotter/2011/07/12/change-management-vschange-leadership-whats-the-difference 2. Bolman, L., & Deal, T. (2003). Reframing organizations: Artistry, choice, and leadership (3rd ed.). San Francisco, CA: Jossey-Bass, pp. 267–268, 303. 3. Nadler, D., & Tushman, M. (1980). A model for diagnosing organizational behavior. Organizational Dynamics, 9(2), pp. 35–51. 4. Change Management Learning Center. (n.d.). Neutralizing change threats in the new year: Resistance to change. Retrieved from http://www. change-management.com/tutorial-neutralizing-threats-mod3.htm 5. Bolognese, A. F. (n.d.). Employee resistance to organizational change. Retrieved from http://www.newfoundations.com/OrgTheory/ Bolognese721.html 6. Olenski, S. (2013, February 7). How the USPS decision to stop Saturday delivery will affect marketers. Forbes. Retrieved from http://www.forbes. com/sites/marketshare/2013/02/07/how-the-usps-decision-to-stopsaturday-mail-delivery-will-affect-marketers

7. George, J., & Jones, G. (2012). Understanding and managing organizational behavior (6th ed.). Upper Saddle River, NJ: Pearson. 8. Kotter, J. P., & Schlesinger, L. (n.d.). Strategies: Addressing resistance to change. Retrieved from http://www.brown.edu/Departments/Engineering/ Courses/En9/spring/maureen frey Managing Change Strategies.pdf 9. Rafferty, A., Jimmieson, N., & Armenakis, A. (2013, January). Change readiness: A multilevel review. Journal of Management, 39(1), pp. 110–135. 10. Kotter, J. P. (1996). Leading change. Boston: Harvard Business Press, pp. 33–35. 11. Levasseur, R. (2001, July–August). People skills: Change management tools: Lewin’s change model. Interfaces, 31(4), pp. 71–73. 12. Shontell, A. (2011, January 19). The amazing story of how Steve Jobs took Apple from near bankruptcy to billions in 13 years. Business Insider. Retrieved from http://www.businessinsider.com/how-steve-jobs-tookapple-from-near-bankruptcy-to-billions-in-13-years-2011-1?op=1 13. Forbes. (2017 May). The world's biggest companies. Retrieved from https://www.forbes.com/companies/apple/ 14. Beer, M., & Nohria, N. (2000). Breaking the code of change. Boston: Harvard Business Review Press. 15. Beer, M., & Nohria, N. (2000). Breaking the code of change. Boston: Harvard Business Review Press, pp. 20–21. 16. Sirkin, H. L., Keenan, P., & Jackson, A. (2005, October). The hard side of change management. Harvard Business Review. Retrieved from http:// hbr.org/2005/10/the-hard-side-of-change-management/ar/1

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CHAPTER 13

The Leadership Development Process I long to accomplish a great and noble task, but it is my chief duty to accomplish small tasks as if they were great and noble. — Helen Keller A journey of a thousand miles begins with a single step. — Lao-Tzu

13.1 A Shining Star When Mufasa sat down to read his 360-degree review feedback from his fellow managers, his employees, and upper-level management, he was nervous. He hoped they saw what he sees in himself—an intelligent and capable leader in his department. The comments he read shocked him: “doesn’t know how to relate to employees” and “curt and short with employees.” However, they did say he is excellent at his job and very good at teaching technical skills. Mufasa’s first thought is to forget about the negative comments—after all, he is the boss and what he says goes, right? After discussing the 360-degree review feedback with his mentor, Alison, he realizes he can take this feedback and become a better leader. After longer discussions, he finds many of his employees are afraid to talk with him because of his curt behavior—even though he knows it may be perceived that way simply because he is busy. However, as he sits down to write his leadership plan, he adds “communication” and “relationships with employees” on his list of things to improve. With Alison’s help, he finds a seminar that should help strengthen his knowledge on communication and relationship building. In the meantime, he has recognized he is good at technical skills, so he offers to teach a brown-bag seminar on a topic he is familiar with. As you can see, becoming a good leader is not about simply being the boss—it is about constantly self-assessing and trying to improve on the skills you have, as well as develop new skills. You will learn the importance of developing a leadership plan, mentors, accepting feedback, and continuous learning in this chapter.

13.2 Personal Leadership Plans Learning Objective 1. Describe the steps to the development of a personal leadership plan.

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Creating a personal leadership development plan is necessary to continue your work as a leader or potential leader. Also note, as a leader you can use these models to help develop your employees as well. Creation of a personal leadership plan consists of three steps after the initial self-assessment phase (which we discussed in Chapter 2): applying the self-assessment phase, the goal-setting phase, and the reflection phase. Within each of these phases, there are a few steps to take, as depicted in Figure 13.1. FIGURE 13.1 Four-Step Process in Leadership Planning

Applying the Self-Assessment Phase In the self-assessment phase, you may refer back to Chapter 2. As you recall, we discussed personality type, strengths, and weaknesses. In this phase, we also must consider the kinds of intrinsic and extrinsic rewards that would make you satisfied in your career. The following list provides examples of inventories you could take: • Myers-Briggs Type Indicator (MBTI) • The Big Five Personality Inventory • Emotional intelligence tests Self-assessment can help us determine what drives us in our career choice—both extrinsic and intrinsic values. Once you have completed one or more self-assessments, you can begin the application of self-assessment, which we discuss in the next section.

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Application of Self-Assessment Once we have completed the self-assessment, we can use this information to understand what it means for our career path. The application of self-assessment allows you to take what you are learning in the self-assessment phase and begin to narrow down career and job choices. First, consider the results of the various inventories taken in the first step. Next, perform a SWOT analysis on yourself. A SWOT analysis (Chapter 5) is a planning tool that asks for a list of strengths, weaknesses, opportunities, and threats. Ask yourself what your strengths, weaknesses, opportunities, and threats may be when it comes to future career goals. Doing this assessment can help further narrow down skills and abilities. Here’s an example: 1. Strengths. People person, good problem solver, able to move anywhere, excellent writer, networking, teamwork ability. 2. Weaknesses. Impatient, can be shortsighted on reaching goals, sometimes too direct in communication. 3. Opportunities. Ways to develop leadership skills and sales skills based on personality traits. 4. Threats. Major health situation with parents may require me to live close to them, potential spouse’s job location. Next, we can take the information we learned from our various inventories and SWOT analysis and, using the Five Questions Model,[1] we can begin to focus on the right path for us personally. The five questions are as follows: 1. What profession(s) interests you? What skills and strengths can you bring to that profession? What is needed to be successful at that profession? 2. What are yourexternallimiting factors? These are things that put limits on the type of job you would accept. For example, geography, ideal job location, or the inability or unwillingness to travel, and so on. If you prefer to live in a small town but want to work for a large advertising agency and are not willing to move to a large city, this could be an external limiting factor. 3. What are yourinternallimiting factors? Consider your personality type. For example, perhaps you prefer to work alone, in which case a job working in teams would not suit you. Other examples might include the ability to work in teams, exceptional problem-solving abilities, negotiation abilities, “people” skills, and a strong or weak writing ability. 4. What is/will be most important to you in your work? What values guide you? Examples of guiding principles include things such as a work-life balance (in which case, some jobs may not provide this as well as others), the need to agree with the mission of the organization (e.g., working for an oil company may not agree with your personal values on environmental concerns), and an ability to take risks (this helps direct the type of company you may want to work for). 5. What requirements are necessary for you in a job? Examples might be a certain level of pay, flextime, on-site day care, health insurance, chance for promotion, and living in a particular city or region. Once we have performed a SWOT analysis and asked ourselves these five questions, we can go to the goal-setting phase, which is based on the self-assessment knowledge we gained.

Goal-Setting Phase Once we have a clear picture of our strengths, weaknesses, opportunities, and threats and have answered the five questions, this gives us a clearer picture of where we want to be in our careers. By doing this, we can begin to develop long-range career plans, and then short-term goals to help us

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reach those long-range career plans. As a leader, it is likely you will begin in an entry-level position and eventually work your way up to midmanagement. From there, you may desire executive-level management positions. No matter where you begin, the Career Planning along a Time Spectrum model can be useful for each possible phase. Perhaps you decide you want to stop at midlevel management. In this scenario, you can still use the model to figure out how to serve both your employees and executive-level management. Either way, when we are setting career goals, we want to know the next level of achievement we desire so we can make plans to prepare ourselves for the next step in our career.

Subject: Career Planning along a Time Spectrum 1. Introduction It is important for leaders to demonstrate they care about the people who serve in a profession or organization. People are the fabric, head, heart, and backbone of an organization. People represent the hope for organizational success, and if you do not take the time to direct and coach them toward attaining their short- and long-term goals, you will not achieve congruence between the employee and organization. What follows is a method that may help you coach or direct employees to achieve personal success and, with their personal success, your chances of attaining your organization vision and mission are greatly enhanced. The Personal Career Plan along a Time Spectrum model provides the opportunity to coach and mentor employees by providing intrinsic and extrinsic career planning motivators for the employee as he or she functions within the larger organization. The supervisor demonstrates a caring attitude and has the opportunity to understand how best to lead the employee to success within the organization goals. 2. Direction and Legend a. Begin by understanding the profession you will be discussing with the person you are coaching or mentoring. Know enough detail that you are familiar with the professional scope or career path for the individual. It is highly recommended you practice doing this with another person to ensure you attain instant credibility with the person you are coaching or advising. b. Begin coaching with a blank 5″ × 8″ card using a pen or pencil. Using a pencil is preferred as it allows you to erase unwanted information. 3. Part 1: Structuring the Data Points and Identifying Personal Intrinsic Motivators of the Employee Steps a. Label the top of your card with Course of Action (COA) _______ and Career Planning along a Time Spectrum Spectrum. b. At the top of the page, fill in the blank “COA____ COA____” with the name of the selected career (i.e., Army, AT&T, Project Management, Information Technology, etc.). c. Inform the employee that every career begins with a 0 (zero year) by placing a zero at the far left of the card. Draw a straight line from the zero to the far right of the card where you will inform the employee that most careers end in retirement after 20–30 years of service in the profession. d. At the far left of the card, above the zero, write in location location. What you are demonstrating is that you begin your career at one location (write in Tacoma, Puyallup, etc.) where the person is now employed. Then ask the person where he or she wishes to retire (e.g., Gulf Coast; Puyallup, WA; Tibet; etc.) by writing this in. The point you are making is that you should consider planning your retirement location at the beginning of your career as this is the time to begin to think about it. e. Under the zero, place a dollar sign ($) with a slash (/) and then write in Position Position. Explain that with each position comes an earning. Consider that each step in the career process will include pay increases, and these will be noted here. Most positions require 2–5 years of seniority or work experience before you can move on. You may explain that once this exercise is done, it is important for the person to continuously develop and update a personal 3–5 year plan.

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f. The next entry relates to asking the employee about what he or she is expecting at the end of a career. You may have to spur him or her though process by stating Benefit & Security and labeling the top of the box for him or her. You are asking the person what he or she would like to achieve at the end of a long career. Examples include medical and dental benefits, retirement pay, 401(k) security savings, home ownership, recreation items, land, and so on. The point is to begin working toward identifying his or her long-term goals goals. Draw a rectangular box downward and list examples. In turn, he or she will begin to take over and identify what is important to him or her (remember you are coaching the person). Ensure your box leaves about one-third of the card free at the bottom (rectangular open space). Do this by drawing a line across the page from left to right right. You are saving this space to enter monthly and quarterly planning goals. g. Once the long-term goals (achievements) are listed, it is time to identify short-term goals goals—that is, goals that are achievable with the current role the employee has. Most likely these will relate to yearly or annual goals goals. Examples include purchase a car; start a savings account/401(k); live within his or her means; begin a health and dental plan; start, continue, or graduate from school; attain a professional certification; get married; have a child; and so on. The important point is that each entry should relate to those things that will impact his or her career goals. Doing this helps him or her understand the complexity of life and that you have to mix professional, personal, and recreation tasks and other life events. This will help the employee to begin to prioritize his or her efforts. Doing this will also help you coach him or her when it comes to understanding the need for congruence between personal and professional goals. 4. Part II: Identifying How to Succeed within the Organization Explain to the employee that you have identified his or her personal needs for success. Now you are going to shift your thought to how the employee can better understand his or her relationship with the organization in a way that can sustain his or her drive to attain the short- and long-term goals he or she has listed. Steps a. Draw a box to the left of Benefits & Security (Long-Range Long-Range Goal box). Ask the employee or advisee what he or she thinks are important positions or steps needed to succeed in the professional field you are discussing. He or she may not have thought of this, so take the opportunity to educate the person by stating entries such as adhering to company values, the mission, goals, attributes, skills, or professional principles. List these examples above the box for him or her. You may only want to write a couple due to space issues, but you do want to prompt and engage him or her in what is to become his or her document. b. In the box, place those positions that are required to succeed at different pay or grade levels. For example, all jobs in the army are important, but the hierarchies are command or line jobs, followed by staff jobs, followed by school/recruiting/reserve jobs. In civilian environments, it would be president, chief executive officer, then vice president for sales, marketing, and operations, followed by directors, managers, section leaders, and so on. Also, different occupation specialties may exist. Again, know your profession and the promotion opportunities within. c. To the left of the company values, principles, and so on, you will place another box and within it put down Officer Efficiency Report (OER OER), Enlisted Efficiency Report (EER EER), or just Work Evaluation or Efficiency Report or whatever the person’s profession uses to evaluate quarterly or annual work performance. The point is you are explaining how his or her attitude and skills can be rewarded if he or she performs to the organization’s expected levels of performance. You will then draw an arrow downward to demonstrate how this translates into identifying his or her level of potential to the immediate supervisor and the supervisor’s boss (two levels up). 5. Part III: Monthly or Quarterly Goal Planning Steps a. Draw a rectangular box on the left side of the bottom third of the 5″ × 8″ card to discuss education or certification. Ask the employee what it takes to receive bonuses, promotion points, and so on. For example, many soldiers do not know that promotion points come from their Army Physical Fitness Test (APFT) APFT) score (25, 35, or 50 points are based on their personal fitness test score), weapons qualification (marksman 25,

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sharpshooter 35, or expert 50 points), awards (type and quantity 25, 35, or 50), and commanders points (200). Here alone you have 400 available points at the organization level. Place these in the bottom third. In a civilian occupation, you have to understand what it takes for your supervisor to succeed and how you contribute to the effort. List those things or events that you should accomplish to ensure your personal success in the short term (monthly or quarterly). b. Draw a rectangular box on the right side of the bottom third of the 5″ × 8″ card to discuss education or certification of achievements. A soldier can receive points for college credits, Army schools, and for Army correspondent courses. Civilians can receive promotion opportunities or bonuses for continued education or professional certifications in their field of expertise. These are also good résumé builders for a private sector profession. Goal achievement or those things that lead to bonuses and job security are important to realize in the short term, as these build on each other and spur a personal desire for long-term accomplishment. For example, the Army provides enlisted members with promotion points for college, Army correspondent courses, and Army schools that help in attaining the next rank. Army school points are achieved by the number of days you attend the school—that is, air assault school is two weeks long (10 points), airborne school is three weeks long (15 points), and ranger school is two months long (50 points). The civilian sector covets certification such as Project Management Professional (PMP), information technology skills, management training, and so on because they want emerging leaders to be well rounded. c. Officers and enlisted (E7) and above get promoted based on Officer Efficiency Reports (OER) and Enlisted Efficiency Reports (EER) at the Department of the Army level. These are not local selections, as the individual undergoes a rigorous promotion board that involves every person at the same rank eligible for promotion at a specific time of the year. In these cases, the individual has three promotion opportunities: early promotion (about 10 percent of the year group), on-time promotion (about 80 percent or fewer of the year group), and above-the-zone promotion (about 10 percent or fewer of the year group). The types of jobs you hold indicate your level of promotion potential to move on to jobs with greater responsibility. Ensure your personnel (human resource) portfolio, professional vita, and résumé are up to date. d. End this section by asking the employee what the causes are for not succeeding along the timeline you just put together. Then, inform him or her that often peer pressure or wanting to leave a career too soon that causes a person to go back to the start point of a new career or at zero. I write this in the lower box and draw an X on the line leading to the career path line of where he or she is now to demonstrate the stop point and then an arrow back to zero showing the new start point point. This part is to demonstrate that the person has to be true to himself or herself and his or her professional goals in career advancement and not let negative influencers stop his or her career progression and the ultimate attainment of benefits and security. 6. Part IV: Conclusion Within an hour, you have completed a significant career coaching/mentoring exercise with your employee or advisee. This is the time to ask the employee if he or she would like to keep the card you just filled out with him or her. My experience shows that 99 percent of the people will take the card. I have used this technique hundreds of times with great organizational reenlistment results as well as obtaining a better focused soldier or employee with a renewed attitude about his or her profession and long-term career outlook. I have also had soldiers want to bring their spouses in to discuss career options to ensure organizational and family congruence is attained. Dr. Philippe J. Upperman EdD, MBS, EdM-Psy

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FIGURE 13.2 Career Planning along a Time Spectrum After you have completed the self-assessment and planning phases, you can use this model, developed by Phil Upperman, to create career plans for you or your employees.

The following are steps you can use to complete this model: 1. As you can see from the model in Figure 13.2, the line across the top represents time. What this demonstrates is that you begin your career at one location, or your ideal location. Then you will plan for where you want to end up (e.g., Chicago, Tibet, Fiji). You should consider planning your retirement location at the beginning of your career, as this is the time to start thinking about it. 2. After entering location on the time horizon, the next step includes understanding the starting point for a career salary is 0. In this section, also write your ideal starting position, being realistic about the type of position you can earn once you graduate. 3. Next, fill in the box labeled long-term goals. In this box, include goals upon retirement. In other words, at the end of your career, what do you want to have accomplished? 4. Based on your long-term goals, what do you need to do in the shorter term? For example, if your long-term goals include “retire as chief executive officer of XYZ Corporation,” consider what you need to do to meet that end goal. Likely, you will have an entry-level job first, then need to move up to midlevel management in the organization, and perhaps gain additional education and training. In other words, your short-term goals should be in place to meet your long-term goals. 5. Next, using the values and attributes section, include those things important within your organization to achieve your long-term goals. What attributes must you develop in order to be successful in your career path? Consider your personal SWOT analysis here—how can you further develop these? Then, next to the attribute, discuss how you will measure it.

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SMART Goals A goal-setting technique that requires goals to be specific, measurable, attainable, realistic, and time oriented.

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6. Next, review the short-term goals. What do you need to do in each five-year period to reach your shorter-term goals, making sure all these goals tie to your ultimate long-term goals? Also discuss, in the education box, any education or certifications you will need to reach your next level of goals. 7. Once you have completed this for each five-year period, you will want to develop quarterly or monthly goals that will help you reach your short-term goals. Note, the arrows connecting each of the boxes illustrate that all goals, attributes, education/certifications, and monthly/ quarterly goals should tie together. In order to better understand how to reach our short-term goals, we can use the SMART goals approach to developing our leadership plan: specific, measurable, attainable, realistic, and time oriented. • Specific. As part of a leadership development plan, goals need to be specific. Simply saying, “I want to become a better leader” is not specific enough. Using your self-assessments, create goals that allow you to improve your specific weaknesses. For example, “I want to improve my ability to interact and make small talk in social settings” is a specific goal. • Measurable. When we set goals, we need to be able to see, after a period of time, if we have made progress; therefore, we want goals to be measurable. In our goal mentioned, we might say, “I will measure my ability to make small talk in social settings by doing xyz. Once I do that, I will know I have met my goal.” • Attainable and realistic. We all have complex personalities and experiences. Setting personal leadership goals, then, must coincide somewhat with our personalities and our willingness to do certain things in order to reach the goal. For example, if Dave wants to be the chief executive officer (CEO) of his organization but knows a bachelor’s degree is required for the position in his organization—and he isn’t willing to attain one—then this goal may not be realistic for him. • Time oriented. If we create a timeline to reach our goal, it is more likely to happen. If we simply say, “I want to become CEO,” but do not consider the steps to take to get there in a specific timeframe, it is less likely to happen. Keeping SMART goals in mind, we can use the leadership development model to create our short-term goals—which would be our monthly or quarterly goals. TABLE 13.1 Using the SMART Goals Model to Create Short-Term Goals Goal

Plans

Timeline/ Deadline

1. Secure internship

1. Apply for two internships

1. May 2015

2. Graduate with a 3.5 GPA

2. Meet with instructors at least two times each quarter; do all homework by deadlines

2. Ongoing

3. Begin exploring careers

3. Attend two job fairs

3. May 2015

4. Take the GRE and achieve in the fifth percentile

4a. Register for GRE

4. September 2015

4b. Purchase study guide and sign up for prep class 4c. Study two hours daily

5. Apply to three graduate schools

5a. Research grad schools

5. January 2016

As you can see in Table 13.1, you will want to list short-term goals and then discuss your timeline for reaching the goal, as well as notes on how you will measure whether or not you met the goal. Of course, this should be done only after self-assessment and completing the first part of the Career Planning along a Time Spectrum model.

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We can also use this tool to assist our employees in self-development. After we have completed all three steps—self-assessment, planning, and goal setting—we can begin to think about some of the social skills needed in leadership. Our next section discusses impression management so you can be sure to make the right impression to future employers, employees, and others you may come into contact with.

Reflection Phase Goals, timelines, and progress should be looked at often and measured. Simply having a plan or a goal does not make us successful; continually seeing what works and what does not can help us reflect and make the necessary changes to achieve our goals. As we discussed in Chapter 2, double-loop learning is the goal—in other words, we need to reflect on challenges, changes, and our personality often to make sure we are on the right path. One way to view this is in the sense of constructivism. Constructivism means we should then make learning active and a part of our daily life. So learning from mistakes and also reflecting on why things did or didn’t go right can be part of this process. This learning should be an ongoing process, not a stagnant one, where we continually problem solve and learn through life experience. In the context of leadership development, looking at lifelong learning and continually developing ourselves is an integral part of the process.

Key Takeaways • Part of leadership is self-development. We can accomplish self-development by understanding personality traits, strengths, weakness, opportunities, and threats. This can be done by taking a variety of self-assessment inventories, such as the Big 5 and emotional intelligence measurement tests. • Once you have assessed your strengths and weaknesses (self-assessment), we can then apply the self-assessment to determine the right career path. Next, we may move into the goal-setting phase to meet our career goals. Focusing on SMART goals is key. • SMART goals are specific, measurable, attainable, realistic, and time oriented. • After we have developed goals, we want to reflect on those goals often to see what changes should be made to help us be more successful in achieving them.

Exercises 1. Take the following Leadership Legacy Assessment quiz: http://www.yourleadershiplegacy. com/assessment/assessment.php. What does this quiz say about your leadership style? 2. Using Figure 13.2 as a guide, develop a long-term leadership plan with five-year, ten-year, and fifteen-year goals.

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13.3 Career Growth: Impression Management Learning Objective 1. Explain etiquette aspects that can help you achieve high emotional intelligence skills in the area of social skills. Perhaps the most important component to leadership success includes how we manage the impression we give to others—both in person and online. Learning how to manage our reputation can be a key ingredient to developing leadership skills. Although much of this will be a review, it is important to discuss key elements to making a good impression as a current or potential leader.

Introductions A handshake should be firm but not too firm. The web of the other person’s hand should touch yours, as to avoid shaking someone’s fingers!

An introduction to a person is possibly one of the most important aspects of emotional intelligence—specifically, social skills. This nonverbal behavior can send positive or not-so-positive messages to a person with whom you want to make a good impression.[2] Here are the components to a good handshake and introduction: 1. Firm handshake. A firm handshake shows self-confidence. Try not to make it too firm or too soft. Do not place your hand on top of the other person’s hand while shaking. 2. Web to web. When you shake someone’s hand, put your right hand out and the web of skin between your thumb and pointer finger should touch the web of the other person. Try to avoid grabbing someone’s fingers when shaking hands, as this could send a negative message.

Source: © Thinkstock

3. Eye contact. As you shake the person’s hand, make direct eye contact. This can be challenging for some people who grew up in a culture where direct eye contact would be considered rude. Make sure to smile. 4. Say your name and repeat the other person’s name. As you are making eye contact and shaking hands, you might say something like, “Hi, my name is Laura Portolese. It is a pleasure to meet you.” When the person says his or her name, make sure to repeat it, which will make it easier to remember. In fact, if he or she gives you a business card, perhaps write down some of the things you discussed. This way, when you meet again, you are more likely to connect his or her name with a personal or professional interest. 5. Introducing two people. If you know two people and are introducing them, say both people’s names and try to tell them something they have in common that they can discuss. For example, “Casey, meet Ms. Robins. Both of you went to Central Washington University.” This gives them a starting point to begin their conversation. Good handshakes and introductions are important, but they also take practice. Often, people are too worried about the impression they are making to focus on their handshake, eye contact, and other aspects. The more comfortable you can get with this, the more second nature it will become and the better your social skills will be!

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Video Clip 1 This video discusses the importance of handshakes.

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Dining Out As a leader, you may find yourself dining out often. When we dine alone or with our family, sometimes we do not pay as much attention to table manners as we should. Showing you have proper table manners in a business setting not only conveys high emotional intelligence but also can create positive relationships with others. Let’s discuss this as if we are starting a dinner from the beginning.

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FIGURE 13.3 Example of Standard Table Setting Sometimes the amount of dinnerware can be overwhelming! For forks, use the last one out and work your way in. Make sure the napkin goes on your lap. Also be aware, your bread and butter plate will always be on your left, while your glasses will be on your right.

First, it would be proper to make sure the host is seated before you sit. Unless the host is male, in which case he would wait until all females are seated before he takes his seat. Likewise, in any situation, such as a job interview, you should never sit unless invited. Next, you will want to put the napkin on your lap. Avoid wiping your face or nose with the napkin. If you need to get up, leave the napkin on either side of your plate. Try to order within the same price range as your host. Never order the most expensive menu item. Also avoid ordering alcohol unless the host is ordering it, and even then, never drink more than your limit in a business situation. When food is served, you should not begin eating until everyone has received his or her food. Any food dish on the left is yours; any glass that is yours is on the right. Most silverware is set so the one you will use first is on the outside, and you work your way in. For example, the appetizer fork might be on the outside, then the salad fork, and then the dinner fork. When you are finished with your meal, rest the silverware crosswise on your plate to indicate you are done. If you are in a situation where food should be passed, always pass from left to right.

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Avoid reaching past people’s plates to get something. If someone asks you for salt and pepper, always pass both together, even if both were not requested. It goes without saying, but do not talk with your mouth full or play with food on your plate. If you do not like something, try to take a few bites, but it is OK to leave food. If you have special dietary restrictions—for example, if you are a vegetarian—do not make a big deal out of it and just avoid eating those things you would not normally eat.

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Silverware resting together indicates to the server that you are finished with your meal.

Always say please and thank you to anyone who does something for you, such as refilling your water or removing your plate. These basic manners can go a long way in showing politeness. When the check comes and there is no obvious host, reach for it. If there is an obvious host—for example, your CEO had told everyone she was going to take the leadership team to dinner—it is fine not to reach for the check. If people are splitting the check, it is normal to split it evenly, unless of course people had significantly different-priced items. For example, if one person had only a salad and another person had the porterhouse steak, splitting might not be appropriate.[3] Likewise, if you had drinks but someone else did not, offering to pay more would be appropriate. It is also customary to tip 15 to 20 percent, and not doing so would be considered in poor taste. Please note that dining etiquette discussed here is specific to the United States. Before you travel, consider doing research on proper etiquette.

Clothing Dress is another consideration with etiquette. Dress will vary greatly from region to region. For example, in the Seattle area, it is normal for many people to wear jeans to work, while in other parts of the country, this would be considered inappropriate. When deciding what to wear, it is always best to be a bit overdressed than underdressed. For job interviews, jeans or shorts would rarely, if ever, be acceptable. Normally in job interviews, dressing one “step up” from what people wear at the company is a good rule of thumb. Showing too much skin or revealing tattoos or facial piercings in some work environments may prevent upward movement in a company, as it may send the wrong message (fair or not). In a study by Peter Click, women in high-level positions who dress in what is seen as sexy attire are viewed as less competent, regardless of their skill sets.[4] Fair or not, there are many unspoken rules about what is appropriate and what is not. The best thing to do is to look at what the upper-level management around you are wearing. For example, if all the men in the office/company wear suit jackets and rarely take them off, this is an indicator of expected workplace dress. If all the women in the office wear closed-toed shoes and leave the flip flops at home, it might be a good idea for you to do the same as well. Personal style and individuality are important, but in some professions, it makes sense to err on the side of caution when choosing a work wardrobe.

Technology Another important thing to mention is the use of technology. Although many people do it, the increased use of technology has actually made people more rude; according to an Intel survey, 9 of 10 Americans report they have seen others misuse technology and 75 percent agree that mobile phone etiquette is worse than it was a year ago.[5] Here are some examples of basic etiquette when it comes to technology: • Don’t look at your phone while talking with someone else. • Don’t use a phone for calls or texts while at the dinner table. • Don’t talk loudly on the phone in a public space.

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• Avoid letting “text speak” cross over into e-mails (i.e., “tho” may be OK for texts to a friend, but spell it out—“though”—for e-mails). • Try to avoid multitasking with your phone in inappropriate places, such as when in the restroom. • When sending e-mails, avoid clogging up peoples’ inboxes with reply-all messages. • Use spell-check for e-mails. • Try to answer e-mails within twenty-four hours, even if it is to say, “I am not sure about this but I will get back to you.” Another note related to technology is the use of social media and the Internet.

Reputation Management Many companies pay hundreds, even thousands of dollars every month to monitor and clean up their online reputations. The process of monitoring your online reputation is called reputation management. Reputation.com, one of hundreds of firms that specializes in “fixing” online reputations, has become popular for companies looking to enhance their online image. Reputation management is not just for companies—individuals are using these services to make unflattering things about them on the Internet disappear.[6] Anything posted on the Internet, from a picture on Facebook to a comment on a blog, will be in cyberspace indefinitely. Consider the case of a New York professor. Eight years earlier, he had been charged with wrongfully receiving grant money. If you Googled his name, you would find a press release listing this charge as one of his top search results, even though he had paid the $2,000 fine.[7] Not exactly something he would want a potential or current employer or employee to see! This is exactly why it is important in leadership to be aware of the kinds of things you post—whether you are looking for a job or already have a job. For example, thirteen Virgin Atlantic employees were fired for a chat they had on Facebook about the plane’s safety, along with negative comments about customers.[8] In yet another example,[9] a job seeker posted the following to Twitter: “Cisco just offered me a job! Now I have to weigh the utility of a fatty paycheck against the daily commute to San Jose and hating the work.” And Cisco, who regularly monitors the Internet for mentions of their name (reputation management), replied, “Who is the hiring manager. I’m sure they would love to know that you will hate the work. We here at Cisco are versed in the web.” Needless to say, the job offer was rescinded. Websites that allow for professional networking can be a great tool but can also be detrimental. For example, an employee at BG, a natural gas company, posted his résumé on LinkedIn and clicked the “job seeker” box. When his employer saw this, he was fired for expressing interest in other job opportunities, in addition to posting disparaging comments about his employer.[10] So how exactly can you monitor your online reputation? Here are some tips: • Google yourself often and see what the search results return. • Consider changing your privacy settings in Facebook so people you are not friends with cannot view your profile. • Change your Facebook settings so that you must approve posts that “tag” you. • Be aware of your company’s policy on posting résumés on websites like LinkedIn. • Do not talk about work on Twitter, Facebook, or any other social media site. • Never mention your company’s name on social media sites.

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Managing your online reputation can make sure that when an employer or potential employer sees your online persona, they are seeing the side you want them to see. It will show them that you represent the company in a positive light, which can enhance career success.

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Looking at your phone while talking with someone is the same thing as turning your back to them in the middle of a conversation.

Video Clip 2 This video discusses the importance of managing your online reputation.

Source: © Shutterstock, Inc.

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General Etiquette for Career Success We should discuss other parts to etiquette that would be considered general politeness and show professionalism, which create positive relationships with others. Some of these include the following: • Be on time for appointments. Call if you will be more than five minutes late. • RSVP when people send an invitation. • Always use please and thank you. • Always send thank-you notes when someone goes out of his or her way for you—note, not thank you e-mails, but handwritten notes. • Apologize if you make a mistake. • Always bring a gift, wine, or flowers to the host when dining at another person’s home. • Hold the door—whether you are male or female—if you get to the door first. • Make eye contact. • When given a business card, always look at it before tucking it away. Do not put it in a pocket. • Avoid hording a conversation. Learn how to ask questions and be interested in what others have to say, too. • Don’t use swear words in a professional environment. • Don’t interrupt people. Understanding and following general etiquette can help boost your career. People who do not have manners may not be as respected, and, as a result, they may not be promoted or experience career growth. Etiquette is part of social skills, and it is proven to help people attain career success.

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Key Takeaways • To ensure career success, there are a few main things to be concerned about. First impressions are important, so having a firm handshake that is web to web is important. • When meeting people, shake their hand, look them in the eye, and repeat their name to help you remember it. • When dining, there are many etiquette rules. For example, place the napkin on your lap and use the correct forks and glasses. Generally speaking, the first forks you will use are farthest from the plate, and then you work your way in. Dinnerware, such as a bread plate, is always on the left, and glasses are always on your right. • Basic commonsense etiquette such as not using the napkin on your face or nose and waiting to begin eating until everyone has his or her food would be important to consider in dining etiquette. • The use of technology has increased and so has the rudeness, as some studies show. Basic etiquette for phones includes not texting while you are having a face-to-face conversation with someone and avoiding speaking loudly. • Other things to consider regarding technology might include not copying everyone on an email, making sure to use spell-check, and using proper grammar. • Make sure to engage in careful consideration before posting comments on social media. This is called reputation management. • Other tips for etiquette include sending thank you cards (not e-mails), being on time, keeping commitments, and making sure to involve others in a conversation.

Exercises 1. Shake the hands of five people you know well. Ask them to give you feedback on your handshake and then write at least two to three paragraphs about it. 2. Visit a public place such as a mall or restaurant. Observe how people use technology when they are alone and when others are around them. What did you observe? What would be considered rude and what would be considered acceptable and normal behavior? Write four paragraphs on your observations and discuss them in class. 3. It is important to mirror (behave like) those individuals who we aspire to be. For example, if we want to be the director someday, we want to consider mirroring that person. Based on this, observe yourself for self-assessment. Who are you mirroring in your workplace or school?

13.4 Continual Learning and Feedback Learning Objectives 1. Explain why continual learning and seeking of feedback is important. 2. Explain why having a mentor can be an important part of your leadership growth.

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Continuous learning involves the process of constantly trying to update skills and learn new ones. This shows high emotional intelligence in the area of self-awareness and self-management (“I know I need to learn this new skill to be more valuable to my employees or to be more productive in my personal life”). As you remember from Chapter 2, the goal should be double-loop learning. Instead of asking ourselves about results and then changing our technique based on results, we want to ask why we do things and consider better ways to perform the same set of tasks. People who often learn new skills tend to be happier individuals and more valuable to their organizations. These skills can be work or non–work related. For example, Zappos, a shoe retailer based in Las Vegas, Nevada, maintains a “Wishez” list. Employees post things they are interested in learning, such as how to cook an ethnic dish, and they are connected with other members in the organization who have these skills. This focus on continuous learning makes for happier employees, which makes for more productive workers. In a study by Kansas State University, it was estimated that happy workers are, in fact, more productive. The study found that employees who are psychologically distressed cost $75 or more per week to the organization.[11]

Additional Perspectives Applying the Cultural Dimensions to Leadership Development As you have read throughout the book, a leader must continually develop his or her skills in order to be successful throughout a career in leadership. Understanding how others may view situations based on their cultural background, upbringing, or perspective can help us lead to the best of our ability—and develop our followers to the best of their ability. Developing skills around the understanding of power distance, uncertainty avoidance, humane orientation, institutional collectivism, in-group collectivism, assertiveness, gender egalitarianism, future orientation, and performance orientation is an important part of understanding diversity. Considering each of these cultural dimensions can help us understand situations from another’s perspective and allow us to make better decisions and be better leaders overall. Based on this information, identify if you are “high” or “low” in each of these areas (you may have to refer back to the previous chapters) and how you can develop your understanding of others’ perspectives. Source: Based on House, R., Javidan, M., & Dorfman, P. (2001). Project GLOBE: An introduction. Applied Psychology: An International Review, 50(4), pp. 489–505.

Most people who find leadership success have a habit of being curious and interested in a variety of topics that can enhance their personal lives but also their professional lives. As management guru Brian Tracy points out, continuous learning is one of the “nine disciplines” to being successful.[12] But what does it mean to learn continuously? There are several ways we can learn, as depicted in Figure 13.4.

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continuous learning The process of learning new things to enhance yourself professionally and personally.

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FIGURE 13.4 Suggestions for Continual Learning

From a career perspective, if we choose not to learn continuously, we end up being stale in both our skills and our abilities. Since most industries change so quickly, it is likely that our current skills will be outdated in five to ten years. This means we need to constantly update to understand the next set of skills we need in order to be successful. In addition, sometimes we have to “unlearn” skills as new and better ways evolve. For example, if you have golfed before, you may mimic the golf swings you see on television when you go out to play. Although this swing may work for you for some of the time, you may get to a point where you want to improve, so you take a lesson from a golf pro. The golf pro looks at your swing and offers advice on how to improve distance and accuracy. In this case, you may have to “unlearn” your old swing in order to improve your golf game. Unlearning can apply to all aspects of our life, not just sports. Unlearning means you may have to let go of an old way of doing something that may have worked for a long period of time. For example, Parelli Natural Horsemanship program requires training participants to start from square one when learning how to train their horse.[13] The idea is that they need to “unlearn” their old ways of training their horses in order to become effective at the sport. So no matter if someone has ten or zero years of experience with horses, everyone goes back to basics. This can happen in organizations, too. For example, an organization that had high sales in 2007 had to unlearn their way of doing business after the recession in order to continue being successful. A new economy has required relearning of how to operate with many economic changes. In society today, the ability to learn, unlearn, and then learn again can happen over a span of a few months rather than many years. For example, many organizations get “stuck” on a specific way of doing things, and when those things are unlearned, the company can begin to move forward and learn the new way of doing things. As a leader, it is your responsibility to drive this learning and unlearning of behavior—usually by being an example.[14] Organizations value leaders who can show their focus and dedication to continually learning and unlearning. For example, the Office of Personnel Management of the US Fish and Wildlife Service employs more than nine thousand people.[15] Because of their large staff, they have identified twenty-eight leadership competencies, one of which is continual learning. Continual learning is important because it makes us more valuable to our employees and employer, which can result in promotions, higher salary, and more responsibility as we grow our leadership career.

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Video Clip 3 Brian Tracy, management guru, discusses the importance of continuous learning in entrepreneurship.

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Continual Learning Continual learning is valued and expected at all levels within the US Fish and Wildlife Service. Continual learning element

Distinguishing behaviors for employees, supervisors, and upper-level management

Values learning and takes initiative to build knowledge and skills

For all employees Strives for continuous improvement and is actively engaged in exploring new ideas and concepts Seeks out and engages in self-improvement activities Spends time learning from others Creates time within and away from the job to learn Seeks challenging assignments and unfamiliar tasks Seeks out new developments, techniques, and advances in knowledge and ideas Seeks out new approaches, tools, and methods in their own field of expertise Maintains professional certification or license, if appropriate Additional for first appointment leaders and above Encourages and supports professional growth, including pursuit of appropriate certifications and licenses Gives others the autonomy to approach issues in their own way, including the opportunity to make and learn from mistakes

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Continual learning element

Distinguishing behaviors for employees, supervisors, and upper-level management Additional for midlevel leaders and above Invests in the further development of personal supervisory skills, in better understanding the issues and needs that affect customers, and in their own field-specific expertise Reinforces knowledge, skills, and new behaviors gained through training and development by helping employees apply them on the job Additional for senior leaders and above Models continuous self-development Adds to managerial knowledge, strategic thinking, financial planning, and analysis, as well as skills in supporting a learning organization Additional for executives Continually updates their own and others’ awareness of the organization and the big picture context within which we work

Is reflective and learns from mistakes

For all employees Analyzes both successes and failures for clues to improvement Is resilient toward setbacks and failures, analyzing them for lessons learned and building on them Confronts problems instead of avoiding them Additional for first appointment leaders and above Uses after-action reviews to assess performance Additional for midlevel leaders and above Uses a variety of approaches to analyze and understand how actions led to certain outcomes and how to improve one’s approach to similar situations in the future Is open about mistakes and failure with self and others Contributes to procedures that enable the organization to learn from past actions Additional for senior leaders and above Plans, implements, and learns from program and policy evaluation strategies Additional for executives Ensures that new organizational policies, programs, procedures, and services are built to incorporate and profit from lessons learned Ensures that stakeholders understand results of policy and program evaluation

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Continual learning element

Distinguishing behaviors for employees, supervisors, and upper-level management

Assesses gaps in knowledge and skill For all employees in self and in others Assesses own strengths and weaknesses Actively seeks feedback on their performance Understands their strengths and potential “fatal flaws” in knowledge and performance Additional for first appointment leaders and above Recognizes and addresses team and team member strengths and potential “fatal flaws” in knowledge and performance Draws on individual team member strengths rather than weaknesses to fashion assignments and help develop others in the team Gives decision-making authority to the team, where appropriate, and avoids taking over all decisions Rewards and recognizes the good use of team skills, not just individual contributions Additional for midlevel leaders and above Measures current skills and knowledge against competencies needed for continuing success and to meet future problems Evaluates the impact of training on performance Understands the value of knowledge sharing

For all employees Actively seeks learning in areas beyond own technical expertise in order to become a broader resource Participates actively in professional associations Additional for first appointment leaders and above Networks with others and supports team networking to share resources and knowledge and builds on rather than replicates the work of others Additional for midlevel leaders and above Coaches and mentors employees Fosters knowledge sharing and learning across units Actively engages in partnering activities that align common goals and services Serves as a source of wisdom and expertise on technical and organizational matters for employees Additional for senior leaders and above

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Continual learning element

Distinguishing behaviors for employees, supervisors, and upper-level management Applies tools and techniques of knowledge management to share learning widely across the organization Identifies best practices from high-performance organizations with similar missions Helps the organization learn from customers and stakeholders and translates that learning into improved ways of performing Additional for executives Develops processes and/or systems to ensure that what is learned in training or practice is shared throughout the organization and is applied to work activities and strategic planning Cooperates and/or networks across disciplinary, organizational, agency, and public/private boundaries to establish and reach common understanding on issues and opportunities Promotes benchmarking and other techniques that help an agency build on best practices Broadly communicates throughout the organization the need to understand others’ viewpoints, agendas, values, constraints, and behaviors and be willing to take others’ ideas into consideration

Demonstrates knowledge of learning styles and uses a variety of strategies to close learning gaps

For all employees Crafts and uses for own development a variety of learning approaches, including formal course work, reading, talking with others, attending formal training, shadowing, detail assignments, and on-the-job experiences Understands own preferred learning style and methods Uses the individual development plan (IDP) to link assessments, career goals, and organizational strategies to personal development plans Works to deploy strengths Additional for first appointment leaders and above Supports the team’s use of a variety of learning methods, including reading, talking with others, after-action reviews, attending formal training, and on-the-job experiences Shows insight into individuals’ learning profiles and styles when making assignments or devising developmental strategies Identifies and makes assignments that challenge team members to stretch their abilities and self-confidence

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Continual learning element

Distinguishing behaviors for employees, supervisors, and upper-level management Additional for midlevel leaders and above Creates and makes developmental assignments to stretch and foster learning and development in employees Delegates responsibility and decision making to lower levels to develop employees Ensures that all employees have an IDP and links IDPs and developmental assignments to current and future organizational needs

Understands the concept of knowledge management and leads knowledge management efforts

For senior leaders and executives Creates an environment that facilitates knowledge sharing, learning, and networking that can support change Builds the organization’s capacity to learn, improve, anticipate, and meet new challenges Designs, implements, and orchestrates knowledge management strategies and initiatives throughout the organization

Integrates the development of human capital into strategic planning and creates an integrated approach to address current problems and meet emerging demands

Additional for senior leaders and above Assesses organizational skills and strengths against current and future requirements Manages expenditures for training and development as investments that maximize the value of human capital and plans strategically for changing organizational needs in skills and knowledge

Source: US Fish and Wildlife Service, National Conservation Training Center. (2008, March). USFWS leadership competency development model. Retrieved March 6, 2012, from http:/ /training.fws.gov/courses/roadmaps/competency-model/documents/USFWS_Leadership_ Competency_Development_Model.pdf

Continual learning benefits you personally and professionally and can benefit the organization. Setting an example by attending workshops and seminars, reading, and doing other professional development activities can help grow your knowledge base as well as set a good example for your employees.

Leadership and Multiculturalism One of the most important things we can do as leaders is to develop a respect for a multicultural work environment. While not true across the board, people have a tendency to spend time with people who are like themselves, in race, income level, and other aspects of diversity such as sexual orientation. In fact, according to the National Institute of Child Health and Human Development and a study published in the American Journal of Sociology, it is much more likely that someone will name a person of his or her own race as a friend than someone of a different race.[16] Other research on the topic by Scott Page, author of The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies,[17] ended up with similar results. Companies that have a diverse mix of employees tend to be more successful. Page found that people from varied backgrounds are more effective at working together than those who are from simi-

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lar backgrounds because they offer different approaches and perspectives in the development of solutions. Often people believe that diversity is about checking a box or only providing window dressing to gain more customers, but this is not the case. As put by Eric Foss, then chairperson and CEO of Pepsi Beverages Company, “It’s not a fad. It’s not an idea of the month. It’s central and it’s linked very directly to business strategy.”[18] A study by the late Roy Adler of Pepperdine University shows similar results. His nineteen-year study of 215 Fortune 500 companies shows a strong correlation between female executives and high profitability.[19] Another study, conducted by Project Equality, found that companies that rated low on equal opportunity issues earned 7.9 percent profit, while those that rated highest with more equal opportunities resulted in 18.3 percent profit.[20] These numbers show that diversity and multiculturalism certainly are not a fad but a way of doing business that better serves customers and results in higher profits. A good example of leadership that embraces diversity and multiculturalism is Hilton, one of the most recognized names in the hotel industry. Hilton employs 130,000 people in 3,750 hotels in 84 countries. The hotel chain, with some locations franchised, focuses on diversity and inclusion as part of its operations. First, the chain has a director of global diversity and inclusion who plays a key role in executing the Hilton global diversity and inclusion efforts, which are focused on culture, talent, workplace, and marketplace diversity strategies. Each Hilton brand must establish its own diversity performance goals and initiatives, which are monitored by the diversity council. The diversity council is made up of the company board of directors, the CEO, and the vice president of human resources. At any given time, Hilton has thirty or more diversity initiatives in place,[21] which are managed by the diversity council. Hilton has created several diversity programs within the communities in which the hotels operate. For example, Hilton was one of the first hotel chains to develop an outreach program to educate minority and female entrepreneurs for franchise investments. One part of the program includes invitation-only seminars that discuss what it takes to be a successful hotel owner. Hilton says its diversity seminars are driven by the fact that it wants employees to reflect the diversity of the customers. In addition to the outreach program, Hilton partners with historically black colleges and universities for recruiting, which creates an effective tie to jobs once students graduate. Hilton has developed a supplier tracking system, so it knows the total number of supplier payments made and how many of those suppliers are female or minorities.

Video Clip 4 Larry Beacham, the “Stonecold Millionaire,” explains why having a mentor can help your career.

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One of the ways we can develop our leadership skills is to find a mentor. A mentor is someone who is a trusted counselor or teacher. Sometimes, companies have formal mentorship programs. Often, though, the best mentorships come from relationships that form over time. For example, when Paul started working at Ascent Corporation, he knew he wanted to move up the company

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Chapter 13

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ranks but did not know how. When Paul was put on a project with Beth, a managing director, he wanted to talk with her to find out how she made it to that position. Paul felt nervous approaching Beth at first because she was so busy. But he decided to take the risk and invited her to have coffee after their meeting. After that, they began to speak weekly, and Beth took an interest in helping Paul in his career. Together, the two worked to develop strategies and objectives for Paul’s career, including a leadership development plan. When he had questions about his career path, she helped him. When a position opened up, Beth coached Paul on the interview and he was promoted. As a leader, we should do two things—first, make an effort to be a mentor to others, and second, find a mentor through relationship building (emotional intelligence skill) in order to enhance our career. One of the things mentors can provide is feedback on how we can improve, based on our selfassessment. Learning how to accept feedback and make productive changes is an important part of leadership development. Ideally, we will use a reflection model when accepting and giving feedback. A reflection model asks you to take a step back, look at the situation, determine why the problem or issue occurred, and then provide recommendations to self, employees, or supervisors. In other words, simply bringing problems to supervisors is never a good idea; thinking about the problem, why it occurred, and then providing solutions is the goal of a reflection model. Using this model helps us learn from our mistakes and find better ways to solve problems as they occur. In addition, we can use this model in the last phase of our leadership development plan to determine which goals are working and what we may need to change. See Figure 13.5. FIGURE 13.5 Process of Reflection

For example, a reflection model can be used with 360-degree feedback, a formalized method to appraise performance by using several sources to measure the leader’s effectiveness. For example, it may involve asking employees to provide feedback on the management style and also request feedback from upper-level management on the leader’s strengths and weaknesses. You can use the reflection model to focus on providing feedback by looking at weaknesses, consider reasoning for possible weaknesses, consider why this weakness may be occurring, and then develop possible solutions for the issue. In other words, learning how to accept and give feedback using a reflection

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360-degree feedback A method that appraises performance by using several sources to measure an employee’s effectiveness.

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method is important. Note, the reflection model ties in directly with double-loop learning, as we talked about in Chapter 2. It is one thing to simply receive feedback—it is another to actually try to implement the feedback provided. Many individuals receive leadership feedback but choose not to take the feedback. Learning how to take feedback and make changes based on it are leadership skills you may want to consider including in your leadership development plan.

Key Takeaways • Continuous learning is the process of learning new things to enhance yourself professionally and personally. • Continuous learning can help increase personal happiness and career success. • One can engage in continuous learning by taking seminars or workshops, reading, working with a mentor, attending conventions, socializing, and traveling. • Some organizations, such as the US Department of Fish and Wildlife, make continuous learning a part of leadership career pathways. • Being a mentor to others, and finding a mentor to help us develop our leadership skills, is an important part of leadership growth. • We can use a reflection model, based on double-loop learning, to create an effective method to evaluate and give feedback. • Being able to accept formal feedback—for example, in the form of a 360 review—can help us see our weaknesses and allow us to include this information in our leadership development plan.

Exercises 1. What new skills would you like to learn? Create a list of skills and add them to your leadership development plan using SMART goals. 2. List at least three possible mentors for you and then discuss how you might approach each one to ask about his or her availability to mentor you.

13.5 Chapter Summary and Case Chapter Summary • Part of leadership is self-development. We can accomplish self-development by understanding personality traits, strengths, weaknesses, opportunities, and threats. This can be done by taking a variety of self-assessment inventories, such as the Big 5 and emotional intelligence measurement tests. • Once you have assessed your strengths and weaknesses (self-assessment), you can then apply the self-assessment to determine the right career path. Next, we may move into the goal-setting phase to meet our career goals. Focusing on SMART goals is key. • SMART goals are specific, measurable, attainable, realistic, and time oriented. • After we have developed goals, we want to reflect on those goals often to see what changes should be made to help us be more successful in achieving those goals.

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Chapter 13

The Leadership Development Process

• To ensure career success, there are a few main things someone should be concerned about. First impressions are important, so having a firm handshake that is web to web is important. • When meeting people, shake their hand, look them in the eye, and repeat their name to help you remember it. • When dining, there are many etiquette rules—for example, placing the napkin on your lap and using the correct forks and glasses. Generally speaking, the first forks you will use are farthest from the plate, and then you work your way in. Dinnerware, such as a bread plate, is always on the left, and glasses are always on your right. • Basic commonsense etiquette, such as not using the napkin on your face or nose and waiting to begin eating until everyone has his or her food, is important in dining. • The use of technology has increased and so has the rudeness, as some studies show. Some basic etiquette rules for phones include not texting while you are having a face-toface conversation with someone and avoiding speaking loudly. • Other things to consider regarding technology might include not copying everyone on an e-mail, making sure to use spell-check, and using proper grammar. • Other tips for etiquette include sending thank you cards (not e-mails), being on time, keeping commitments, and involving others in a conversation. • Continuous learning is the process of learning new things to enhance yourself professionally and personally. • Continuous learning can help increase personal happiness and career success. • One can engage in continuous learning by taking seminars or workshops, reading, working with a mentor, attending conventions, socializing, and traveling. • Some organizations, such as the US Department of Fish and Wildlife, make continuous learning a part of leadership career pathways. • Being a mentor to others, and finding a mentor to help us develop our leadership skills, is an important part of leadership growth. • The ability to reflect on feedback, using the reflection model, is an important part of selfdevelopment and the development of employees. • Being able to accept formal feedback—for example, in the form of a 360 review—can help us see our weaknesses and allow us to include this information in our leadership development plan.

Chapter Case Robert is a supervisor at a large bottling company. His job includes managing safety and breaks and setting schedules for his twenty-five employees, who use forklifts and other machinery to package and move filled bottles onto trucks for delivery. Robert has career goals with the organization. First, he would like to become the bottling manager, which is one step up from his current position. In five years, Robert would like to become the director of operations, who oversees the entire factory floor. Robert is an excellent manager who is well liked by his employees, but when it comes to providing information to his own supervisors, he is very quiet. He never mentioned the fact that his shift had one hundred accident-free days in a row or that productivity had increased 10 percent since he took over the shift. Robert is also a bit shy, so he avoids any kind of social interaction, such as the holiday party. While Robert wants to be promoted in the organization, he knows he lacks some of the skills needed to do the job, such as the ability to put together budgets. Because of this, he has identified two courses he would like to take to improve his financial skills. Robert was recently asked to review the operational processes during his shift and excelled at it. In fact, Robert motivated his staff to change some of the procedures to be more cost effective. Since Robert would like a promotion, he knows he should assess his strengths and weaknesses.

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1. Consider each of the following topics discussed in this chapter and discuss Robert’s strengths and weaknesses in each area (making reasonable assumptions is fine). Then create a plan addressing what Robert can do to improve in each area: a. SMART goals b. Etiquette c. Emotional intelligence d. Mentoring e. Continual learning and reflection 2. Once you complete some ideas for Robert, think about your strengths and weaknesses in each area. Make a plan on how you can improve on each point.

Endnotes 1. Courtesy of Angela Unruh, Central Washington University, Information Technology and Administrative Management faculty. 2. Lorenz, K. (2009, September 9). Six tips for a perfect handshake. Career Builder. Retrieved March 15, 2012, from http://www.careerbuilder.com/ Article/CB-431-Getting-Hired-Six-Tips-for-a-Perfect-Handshake 3. What’s Cooking America. (n.d.). Etiquette guide—United States dining etiquette guide. Retrieved March 15, 2012, from http:// whatscookingamerica.net/Menu/DiningEtiquetteGuide.htm 4. Sinberg, L. (2009, July 22). What not to wear to work. Forbes. Retrieved May 21, 2012, from http://www.forbes.com/2009/07/22/office-fashionsexy-forbes-woman-style-clothes.html 5. Bruzzese, A. (2011, March 27). Technology increases rudeness quotient. TribLive Business News. Retrieved March 15, 2012, from http://www. pittsburghlive.com/x/pittsburghtrib/business/s_729376.html 6. Tozzi, J. (2008, April 30). Do reputation management services work? Businessweek. Retrieved May 22, 2012, from http://www.businessweek.com/ smallbiz/content/apr2008/sb20080430_356835.htm 7. Bilton, N. (2011, April 1). Erasing the digital past. New York Times. Retrieved May 22, 2012, from http://www.nytimes.com/2011/04/03/ fashion/03reputation.html?pagewanted=all 8. Facebook chat gets 13 Virgin Airlines employees fired. (2008, November 1). Bloomberg News. Retrieved March 22, 2012, from http://www. nydailynews.com/news/money/facebook-chat-13-virgin-airlinesemployees-fired-article-1.335199 9. Popkin, H. (2009, March 23). Twitter gets you fired in 140 characters or less. NBC News. Retrieved May 22, 2012, from http://www.nbcnews. com/id/29796962/ns/technology_and_science-tech_and_gadgets/t/ twitter-gets-you-fired-characters-or-less#.Ut6yn9Io6Wg

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10. Nichols, S. (2012, January 5). Employee challenges dismissal after posting CV on LinkedIn. V3 Technology News. Retrieved May 21, 2012, from http:/ /www.v3.co.uk/v3-uk/news/2135631/claims-firing-linkedin-cv-posting 11. Hodges, K. (2009, February 3). K-State researcher says happy employees are critical for an organization’s success. Retrieved March 21, 2012, from http://www.k-state.edu/media/newsreleases/feb09/wellbeing20309.html 12. Korn, M. (2011, December 8). Self-discipline: The art of continuous learning. Retrieved May 14, 2014, from http://www.youtube.com/ watch?v=1tl3PYUfnSo 13. Parelli Natural Horse Training. (n.d.). About Parelli. Retrieved May 18, 2012, from http://www.parellinaturalhorsetraining.com/naturalhorsemanship 14. DeGrosksy, M. (2005, November 1). Learning and the leader. Wildfire Magazine. Retrieved February 15, 2013, from http://firechief.com/ command/learning-and-leader 15. US Fish and Wildlife Service. (n.d.). About the U.S. Fish and Wildlife Service. Retrieved March 6, 2012, from http://www.fws.gov/help/about_us. html 16. Moody, J. (2001). Race, school integration, and friendship segregation in America. American Journal of Sociology, 107(3), pp. 679–719. 17. Page, S. E. (2007). The difference: How the power of diversity creates better groups, firms, schools, and societies. Princeton, NJ: Princeton University Press. 18. Holstein, W. J. (2009, February 13). Diversity is even more important in hard times. New York Times. Retrieved August 25, 2011, from http://www. nytimes.com/2009/02/14/business/14interview.html 19. Eagly, A., & Carli, L. (2007, September). Women and the labyrinth of leadership. Harvard Business Review. Retrieved March 12, 2013, from http:// hbr.org/2007/09/women-and-the-labyrinth-of-leadership/ar/1 20. Lauber, M. (n.d.). Studies show that diversity in workplace is profitable. Project Equality. Retrieved July 11, 2011, from http://www.villagelife.org/ news/archives/diversity.html 21. Forsythe, J. (2005). Leading with diversity [Special advertising feature]. New York Times. Retrieved July 13, 2011, from http://www.nytimes.com/ marketing/jobmarket/diversity/hilton.html

Index

behavior description interview 151

constructive discharge 249-252, 261

behavioral approach 52

continuous learning 323-325, 332-333

Big 5 34-46, 156, 315, 332

creating shared value (CSV) 231-234

bona fide occupational qualification (BFOQ) 243

cultural competency 239 decision tree 196, 200, 207-210

360-degree feedback 331

career development program 164

360-degree performance appraisal 277

change leadership 288, 293, 304

absconding 273-275

change management 74, 288-293, 299-305

actions 9, 14-29, 39, 43-46, 52-55, 60-63, 70-72, 76-80, 85-86, 90-104, 111-120, 125, 135-141, 151, 190, 197-199, 213, 223-232, 238, 249, 268, 276, 326

charismatic leadership 19, 62-66, 71-76, 104

acute stress 253-257, 262

clinical selection approach 155

adaptability 98-102, 113, 156

closed shop 158

diversity 8, 22, 125-127, 148, 217, 237-241, 247, 261-263, 323, 329-330, 334

adaptive culture 99-102, 114

code of conduct 218-220

double-loop learning 42-47, 195, 200, 323, 332

Age Discrimination in Employment Act (ADEA) 243

coercive power 62, 103-108, 258

Drug-Free Workplace Act of 1988 250

cognitive ability test 146

ecological power 106-113

collective bargaining 98, 157-158, 251-252, 261-262, 271

emotional intelligence 15-18, 34-42, 46-47, 156, 255, 260, 308, 315-317, 323, 331-334

agency shop 158 alternative dispute resolution (ADR) 270 Americans with Disabilities Act (ADA) 243, 250 analysis paralysis 192, 207-210 area of interest 98-99, 103, 111, 132-134 area of operation/responsibility 98, 102-103, 113-114 associate 1-2, 28, 33, 179-181, 249 attributes 12, 19-21, 30-31, 49, 53-54, 64-70, 76-80, 89, 146, 311-314 autocratic leadership 62

chronic stress 253-257, 262-263

collective bargaining process 251

democratic/participative leadership 67 discipline 78, 94-95, 122, 143, 267-275, 286, 334 disparate impact 148, 154, 158, 165-168 disparate treatment 148, 155-158, 165 distributive justice 105, 191, 210

commitment 41, 55-59, 68-76, 84, 89-92, 100, 116-120, 127-128, 137, 174, 187, 191, 196, 202-203, 289, 297-299, 303-305

employee 9-12, 17, 22-31, 43, 51-58, 62, 67-78, 83, 88-96, 101-122, 128, 132-136, 145-151, 156-191, 204-205, 210-218, 238, 242-252, 261-288, 292, 297, 302-305, 310-312, 320, 331-334

common good approach 227-228, 233

employee empowerment 182

company culture 127, 147, 161, 182-185, 216-219, 237-238, 262

employee orientation 159-160, 165-166

complexity theory 99-102, 113 compliance 14, 55-58, 62, 70, 74, 78, 103, 107, 128, 239-242 consensus 99, 196, 207-209

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employee training and development 159, 164-166 employment-at-will principle (EAW) 248 empowerment 67, 84, 103, 116, 181-187, 288

enrichment stage 90-96, 114

in-house training program 160, 165-166

leader-member exchange theory (LMX) 180

enrollment 2, 128

individual social responsibility (ISR) 231-232

leader’s intent 52-54, 68, 118-120, 130, 134, 138-142

episodic acute stress 253-257, 262

influence 9-18, 23-30, 35, 49-70, 74-76, 82-88, 98-123, 132, 180, 197-198, 206, 214, 219, 258-262, 291

leadership art 13, 29, 119

Equal Employment Opportunity Commission (EEOC) 242, 247, 261 ethics 126, 160-161, 166, 210-235, 266 eustress 101, 254-257, 262-263 exit interview 175, 262, 273 expert power 15, 53-55, 65, 91, 104, 108-113, 258 external candidate 148 external training 159-166 Family and Medical Leave Act (FMLA) 244-247, 261 follower 11-31, 35-37, 44-45, 49-76, 83-94, 99-114, 119-122, 128-129, 145-167, 191, 323 formation stage 88-89, 93-97, 113-115 framing bias 201-203, 209 good faith and fair dealing exception 249 grievance process 251, 262 groupthink 204-210 halo effect or reverse halo effect 151 hygiene factor 172-173, 177, 186 illusion of control 202-203, 209 implied contract 249 improvement plans 273, 280-285

informal leader 104

leadership climate 12, 84, 94-97, 102, 109, 113-115

information power 55, 106

leading 16-17, 22-30, 59-60, 66, 74-79, 83-88, 96, 103, 113-116, 124-126, 199, 210, 287-305, 312, 334

inspirational leadership 18, 31, 62, 68, 74-76

legitimate leader 83, 104, 109-113

integrative approach 50, 60-61, 75

legitimate power 28, 82, 104-107, 111-113, 258

intent phase 139

managerial science 11-15

intent statement 117-118, 130, 138-142

managing 22-29, 39, 106, 146, 158, 166, 173-174, 210, 234-237, 256, 265, 272, 285, 293-298, 304-305, 321, 331-333

intent statement components 140-141 interest-based bargaining 251-252, 261, 270 internal candidate 148 interview bias 151 intuition 35, 40-41, 100, 195, 200, 209 investigative interview 270 job descriptive index (JDI) 175 job enlargement 181-187 job enrichment 181 job knowledge test 154 KSAOs 146, 153-156 laissez-faire leadership 62, 68 leader 1, 5-31, 35-147, 155-158, 164, 169-242, 247-263, 267, 276, 287-317, 323-334

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mentor 159-161, 165-166, 307-310, 322, 330-333 METT-T analysis 132 mission statement 118-119, 123-124, 128-144, 238 motivation factor 172, 177, 186, 267 multiculturalism 239-241, 247, 261-263, 329-330 Myers-Briggs Type Indicator (MBTI) 35, 40, 308 nominal group technique 207-209 outcome fairness 181 overconfidence effect 201 path-goal theory 52 performance appraisal 178, 276-286 performance evaluation system 276, 284-285 personal power 15, 53-55, 89, 94, 103-113

persuasion 14, 35-39, 47, 56-58

rightsizing 274-276

SWOT analysis 132, 309, 313

political power 111-114, 199

selection process 145-147, 155-159, 165, 243

tell-and-listen interview 279

position power 15, 28, 50-55, 83-84, 89, 98, 103-116, 259-260

servant leadership 12, 62, 69-70, 82

tell-and-sell interview 279

severance package 273-276

Theory E 297-299, 303-305

single-loop learning 43-46, 200

Theory O 297-305

power and privilege 238-241, 261

situational approach 59-61

Theory X manager 173, 177, 186

power politics 111

situational interview 151

Theory Y manager 174, 186

power position 28, 104, 259-262

Six Thinking Hats 193-194, 200, 209-210

Title VII of the Civil Rights Act 243

power-influence approach 50-53, 58-61, 75

skills 5, 10-20, 24-67, 72-83, 89-90, 96-100, 104-107, 113, 123-125, 132, 146, 152-167, 173, 180-181, 185-187, 205, 221, 232, 252, 257-262, 267-269, 275, 288, 292, 301-316, 321-333

trait approach 51, 60

power 14-15, 19-22, 28-30, 35-38, 47-65, 69-76, 82-116, 127, 155, 182, 190, 197-199, 216, 237-241, 258-263, 291, 323, 329, 334

pragmatism 17, 31, 63 problem-solving interview 279 procedural justice 181, 191, 196 progressive discipline process 270-275, 286 psychological capital 259, 263

SMART Goals 313-315, 332-334 social responsibility 211, 229-235 span of control 29, 62, 277, 286

traits 14, 18-22, 28, 34-42, 46-54, 60-64, 69, 74-80, 151-152, 158, 166, 208-209, 278, 292, 309, 315, 332 transactional leadership 17, 31, 54, 62-63, 70, 74, 110 transformational leadership 17-18, 62-63, 68-76, 101 union 34, 104, 112, 157-158, 214, 251-252, 261-262, 270-272, 277

public policy exception 249

stakeholders 13, 49, 53-55, 66-68, 75, 85-88, 109, 117-125, 129, 135-143, 181, 216-217, 226-229, 326-328

rational decision-making model 191-193, 199-200, 209

statistical method 155

unstructured interview 149

reasonable accommodation 243-245

status quo bias 203, 209-210

utilitarian approach 227-228, 233

referent power 15, 49, 53-55, 104-107, 259

stress 37-42, 92-95, 101-102, 159, 237-239, 252-257, 262-263, 267

values 17-21, 26, 35, 39-46, 50, 54-56, 64, 68-80, 84, 88-89, 93-97, 113, 119, 123-125, 136, 142-143, 160, 168, 182, 189-190, 198, 206, 211-221, 226, 233-238, 259, 308-313, 325-328

resignation 216, 234, 249, 273-275 retaliatory discharge 249-252, 261 reward power 105-107, 258 right-to-work states 157-158 rights approach 227-228, 233

structured interview 149, 158, 165 subordinates 15-23, 27-28, 49, 53-55, 60-75, 79, 84-89, 95, 103-114, 139-141, 277-278 succession planning 164, 179 sunk cost bias 202-203, 209 sustainment stage 92-97, 114

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union shop 158

values statements 216-221, 233-235 virtue approach 227-228, 233 vision statement 117-129, 142 Vroom-Jago model 195-196, 200, 209-210

whistleblower 219, 235

worldview/governing variables 42-45

work sample test 154

wrongful discharge 249-252

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wrongful termination 268, 275, 284