Arab Academy for Science, Technology and Maritime Transport

" Leadership Research and development "

" Project"
By

1- Nashwa Mohamed
( Transformational leadership & 18126004
Gaber
Motivating Followers)

2- Sara Ahmed Mohamed ( Leading Group and Teams 18221463

&How to use the power)

3- Mohamed Elsayed
(Developing Organizational 18221038
Mahmoud Ali
Culture & Decision Making)

4- Ahmed Ehab Elnahaas (Course Introduction & The 18221529

Intelligent Career Theory )

( Hard and Soft Skill

5- Mariam Ezzat Mounir 18221430
Development& Leadership in
a Global Context)

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TABLE OF CONTENTS

1 Transformational leadership ....................................................................................... 1

1.1 What is transformational leadership? ...................................................................................... 1
1.2 Transformational leaders' characteristics................................................................................. 2
1.3 Transformational leaders' behaviors ........................................................................................ 3
1.4 Goal of transformational leader ............................................................................................... 5
1.5 Goal Setting, Self-Regulation, and Personal Goals in Transformational leadership ............... 5
1.6 6 Steps for transformational leadership ................................................................................... 7
1.7 Effect of transformational leadership on organization ............................................................ 8
1.8 STEVE JOB as an example of a transformational leader: ....................................................... 8
2 Motivating Followers: ................................................................................................ 10
2.1 Why motivation is important:................................................................................................ 10
2.2 The most influential motivation theories: .............................................................................. 11
2.3 Kinds of Motivators: ............................................................................................................. 13
2.4 The Role of Purpose in Sustainable Motivation .................................................................... 16
2.5 What is the best motivator for employees? ........................................................................... 16
2.6 How to increase motivation? ................................................................................................. 17
2.7 Avoid mistakes that kill motivation ...................................................................................... 17
2.8 Non financial recognition or incentives................................................................................. 18
2.9 Types of non financial Incentives.......................................................................................... 19
3 Knowing How: Leading Group & Teams ................................................................. 20
3.1 What is the difference between Groups and teams? .............................................................. 20
3.2 Why group or team: The advantage and Disadvantage from Groups and teams ................... 21
3.3 Types of Groups and teams ................................................................................................... 23
3.4 Roles and Stages in group ..................................................................................................... 24
3.5 Conditions Affecting Group Behavior (External /Internal) ................................................... 25
3.6 The qualities of effective leader ............................................................................................ 26
3.7 Characteristics of effective teams .......................................................................................... 27
3.8 How do you successfully lead a team? .................................................................................. 28
3.9 Reasons why your team hates you......................................................................................... 29
4 Knowing How: to use the power ............................................................................... 30
4.1 What is power? ...................................................................................................................... 30
4.2 Concepts of Power................................................................................................................. 31
4.3 Sources of power ................................................................................................................... 33
Summary ............................................................................................................................................ 35
4.4 What is Authority .................................................................................................................. 35
4.5 Concepts of Authority ........................................................................................................... 35
5 Developing Organizational Culture .......................................................................... 37
5.1 What is organization culture.................................................................................................. 37
5.2 Elements of Organizational Culture ...................................................................................... 37
5.3 Importance of the Organizational Culture ............................................................................. 38
5.4 ORGANIZATIONAL CULTURE MODEL ......................................................................... 39
5.5 Factors Influencing Organizational Culture: ......................................................................... 40
5.6 What are 4 types of organizational culture? .......................................................................... 41
5.7 6 Steps to Building a Strong Company Culture: ................................................................... 44
1-Start with a purpose. ........................................................................................................................... 44
2. Define a common language, values and standards. ............................................................................ 44
3. Lead by example. ............................................................................................................................... 44
4. Identify your (cultural) ambassadors. ................................................................................................ 44
5. Be truthful and always communicate. ................................................................................................ 44
6. Treat people right. .............................................................................................................................. 45
5.8 How to Observe Your Current Culture? ................................................................................ 45
5.9 Key Elements of Organizational Culture............................................................................... 45
5.10 Importance of Organization Culture ...................................................................................... 46
1. It defines your company’s internal and external identity ...................................................... 46

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 2. Organizational culture is about living your company’s core values ...................................... 46
3. Your culture can transform employees into advocates (or critics) ........................................ 46
4. A strong organizational culture helps you keep your best people ......................................... 46
5. A well-functioning culture assists with onboarding .............................................................. 46
6. . Your culture transforms your company into a team ............................................................ 47
7. Culture impacts performance and employee wellbeing ......................................................... 47
5.11 How to gain organization culture? ........................................................................................ 47
5.12 Apple’s Organizational Culture Type and Characteristics .................................................... 49
6 Decision Making ......................................................................................................... 51
6.1 The definition of decision making ......................................................................................... 51
6.2 Characteristics of Decisions .................................................................................................. 51
6.3 Decision-making conditions .................................................................................................. 51
6.4 The decision-making process ................................................................................................ 52
6.5 Approaches to decision making............................................................................................. 53
6.6 Decision Analysis .................................................................................................................. 55
6.7 PSYCHOLOGY OF DECISION-MAKING: ........................................................................ 56
6.8 RACI ANALYSIS................................................................................................................. 57
6.9 THE HERRMANN BRAIN THEORY ................................................................................. 58
6.10 CHARACTERISTICS OF DECISIONMAKERS: Analysis and problem-solving............... 61
6.11 The Root Cause Analysis Process ......................................................................................... 62
6.12 Communicating the Decision ................................................................................................ 62
6.13 Steve Jobs is A Decision maker ............................................................................................ 64
7 Introduction ............................................................................................................... 65
7.1 THE ICEBERG MODEL OF COMPETENCIES ................................................................. 65
7.2 Four Dimensions of Normal Behavior [DISC]...................................................................... 66
STEADINESS ................................................................................................................................... 67
COMPLIANT ................................................................................................................................... 67
7.3 About Leadership .................................................................................................................. 67
7.4 Difference between leaders and managers ............................................................................ 69
7.5 Leadership Styles .................................................................................................................. 70
7.6 Characters of leadership ........................................................................................................ 70
8 The Intelligent Career Theory .................................................................................. 71
8.1 pillars ..................................................................................................................................... 71
9 Leadership in a Global Context ................................................................................ 73
9.1 Why the Global Leadership is important? ............................................................................. 73
9.2 The 4 Threshold Traits of Global Leaders: ........................................................................... 73
9.3 Can Anyone become a Global Leader? ................................................................................. 73
9.4 Leadership in Global Corporation: ........................................................................................ 74
9.5 Challenges ............................................................................................................................. 74
9.6 A good example of a global leader ........................................................................................ 75
9.7 Challenges and opportunities for psychologists .................................................................... 76
9.8 The Future ............................................................................................................................. 76
9.9 Challenges and Opportunities................................................................................................ 77
9.10 Insights from a Global Champion ......................................................................................... 77
10 Hard and Soft Skills ................................................................................................... 79
10.1 The Hard and Soft Skills ....................................................................................................... 79
Soft Skills .............................................................................................................................................. 79
10.2 Top Soft Skills to succeed in your career: ............................................................................. 79
3) Critical Observation ....................................................................................................................... 80
4) Problem Solving............................................................................................................................. 80
5) Leadership ...................................................................................................................................... 80
10.3 Relationship between Power and Leadership: ....................................................................... 80
10.4 Difference Between Hard and Soft Skills: ............................................................................ 81
2. Portable and flexible, is it? ............................................................................................................. 81
3.Learned or not? ............................................................................................................................... 82
10.5 Importance of Hard and Soft Skills in Different Careers: ..................................................... 83
10.6 Tips for Better Soft Skills:..................................................................................................... 83
11 Refrences .................................................................................................................... 87

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Chapter One

1 TRANSFORMATIONAL LEADERSHIP

Leadership is essential for the success of any organization as leaders play a vital role in the
growth of their organization as they influence others to contribute to making a change. A
leader helps his team to decide on their goals and priorities, and to work towards these goals.

The next pages will discuss the topic of "Transformational leadership" and focus on the
following points:

1. What is the transformational leadership?

2. Transformational leaders' characteristics
3. Transformational leaders' behaviors
4. Goals of transformational leader
5. Components of transformational leadership
6. Steps for transformational leadership
7. Effect of transformation leadership in an organization structure
8. Steve Job as an example of a transformational leader.

1.1 WHAT IS TRANSFORMATIONAL LEADERSHIP?

Transformational leadership is a leadership style that concentrates on how leaders are able to
create a valuable and positive change in their followers.

In other words, transformational leaders are those who are able to inspire their followers and
lead them to work effectively and efficiently with higher stratification towards common
goals. They act as a role model to their followers and lead them to achieve a positive change.

As per the definition that was initially introduced by James MacGregor Burns, leadership
expert and presidential biographer, transformational leadership can be seen when "leaders
and followers make each other to advance to a higher level of moral and motivation".

Later, researcher Bernard M. Bass develops what is today referred to as Bass's

Transformational leadership Theory. According to Bass, transformational leadership can be
defined based on the impact that it has on followers. Transformational leaders acquire
trust, respect, and admiration from their followers.

Transformational leadership main focus is the great impact that can be produced through
morale and motivation of the followers, and how leaders can increase the morale of their
followers and lead them to higher performance levels which results in achieving an overall a
higher organizational performance, and support the organizational in achieving its goals.

Therefore, transformational leaders should understand very well the nature of each one of
their followers and the way they can select the correct motivator type that would match every
one of their followers and get his to buy the leader vision and thus increase the morale
towards the achievement of the common goals.

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1.2 TRANSFORMATIONAL LEADERS' CHARACTERISTICS

Transformational leaders have certain qualities and traits, some of these qualities include:

1. Lead with vision and share collective organizational consciousness:

Transformational leaders shares and understands the collective consciousness of the entire
organization.

They can create a shared vision for their organization and make their followers feel as a part
of. They have a clear idea of what actions to take to draw out desired actions from their
followers and they can take decisions that contribute in the growth of their organizations.

2. Self management and ability to keep their ego in a check

Transformational leaders usually do not need directions from others.

They also find the motivation from within and are greatly internally motivated. This is a
pushing force towards achieving their goals as they use this motivation in directing the
organization to the right path.

The most difficult part in any position that has power is to be able to control the ego.

Transformational leaders are able to do this. They keep their ego in a check and do not allow
it to form an obstacle in the way of doing what is best to their organization.

They do put the organization before their own personal ego gain and this makes them able to
extract the best performance from others.

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3. Ability to take the right risks and ability to make difficult decisions.

Taking a risk is not that easy. However if the risk is not calculated, this may result in
disasters. From the other hand, letting opportunities slip from the hand just to avoid the risk
obstacles the growth of the organization.

So, taking right risks is really an art that transformational leaders are able to do.

Transformational leaders have the ability to take calculated risks. They depend on their
instinct, on their long experience and also on the information they gather and researches they
do before taking the risk. They get their team in it as well as they seek inputs from their teams
who are willing to do the necessary research to evaluate the situations properly.

Therefore leaders can depend on them to make risky decisions that facilitate growth.

Transformational leaders also dare to take difficult decisions. This is a part of being a leader.
Transformational leaders take difficult decisions as they can align the decisions with clearly
defined vision, values, goals and objectives, evaluate every situation and thus can take
difficult decisions.

4. Inspirational

They have to ability to inspire and motivate others. Their motivational style is not limited to
praise the members who achieve good job.

They do not apply just one motivator type or just say thanks words to their followers. They
take the necessary time and endeavor to understand what motivates best each one of their
followers.

5. Adaptability and entertain of new ideas.

To keep moving, transformational leaders realize the importance of adapting to the changing
market conditions and dynamic business environment.

They adapt to new situation and search for new and creative ways to respond.
Transformational leaders foster generating new ideas and can evaluate it properly to take right
decisions.

6. Proactive

Transformational leaders do not wait for the change to occur as they have a proactive
approach. They can calculate risks, take difficult decision and be proactive. They play a role
in the organization growth.
1.3 TRANSFORMATIONAL LEADERS' BEHAVIORS

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The Five Practices of Exemplary Leadership, this model was created by Kouzes and Posner.
They claimed that "...good leadership is an understandable and universal process..." involving
five practices and, within each of those, two key behaviors.

1. Model the Way: "lead by example"

Transformational leaders are able to act as a role model to others. They lead by example.
Others can see in their behaviors the ways on how followers should be treated and the way
goals should be tracked; they set short term goals so people can enjoy achieving small wins
and build confidence, commitment and consistent progress.

2. Inspire a Shared Vision:

Leaders creates a meaningful vision for the organization, communicate it in a way making
others live within it. They can get others into adopting this vision through making it appealing
to their values, interests, hopes and dreams.

3. Challenge the Process

Leaders seek achieving a positive change. Thus, they always pursue new ideas, and search for
opportunities to change the status quo. They take risks, experimenting learning from and
allowing for mistakes. They search for challenging opportunities to change and grow.

4. Enabling Others to Act

Leaders encourage collaboration. They encourage cooperative goals, build trust among the
team. They encourage people to share information. They actively involve others, delegate
power, believe in others, and invest in training and education of their followers.

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5. Encourage the Heart

Leaders always recognize individual contributions to the success of the work. They encourage
each one in the team and celebrate their achievements; they make each one of their followers
feel like hero and achiever.

1.4 GOAL OF TRANSFORMATIONAL LEADER

Transformational leaders inspire and motivate followers to share the leaders' value and
connect with the leader's vision, commit themselves to organizational objectives and to realize
performance outcomes, which exceed beyond expectations.

The influence of transformation leaders appears in the extent to which followers are able to
understand the importance of the organizational goals and to see them as attainable goals that
can be achieved.

The transformational leaders are able to set their goals in accordance with the common goals
of the organization.

They reinforce the importance and value of the designated goals; encourage the followers to
put the interest of the organization or team before their own self interests; they also get them
into the achieving these goals as they act as a role model sin attaining the organization vision
they have successfully communicated to their followers.

1.5 GOAL SETTING, SELF-REGULATION, AND PERSONAL GOALS IN

TRANSFORMATIONAL LEADERSHIP

By setting goals, followers can realize what should be achieved in future comparing to the
current status, what are the expected outputs and the accepted level of performance. By
setting goals, transformational leaders provide a sense of purpose which guides their
followers' actions.

Transformational leaders communicate the goals in a clear way and give their followers the
freedom to plan and organize how they will pursue their goals. Therefore the employees will
have to be able to self regulate at work so that they can achieve the goals of organization.

Transformational leaders also link the goals they set with followers’ self-concepts and lead
them to adopt these goals as their own goals. Thus followers feel that these goals are not far
from their own personal values. In other words, transformational leaders are able to turn the
organizational goals into their follower's personal goals.
Transformational leadership Components:
Transformational leadership is not limited to a certain arena in the organization.

It may be found actually at all levels of organization. Transformational leaders are visionary,
inspiring, risk takers, daring, thoughtful thinkers and charismatic.

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However, for bringing major changes, Bass suggested that there were four different
components of transformational leadership that leaders should exhibit:

Inspirational Motivation:

Transformational leadership basically depends on the promotion of consistent vision, mission and a set
of values to the followers or other members.

Their vision is persuasive and clear that they know what they want from every interaction. They guide
followers through providing them a sense of meaning and challenge. These leaders are able to help
followers experience the same passion and motivation to fulfill these goals. Their work is
characterized to be enthusiastic and optimistic and thus it fosters the spirit of teamwork and
commitment.

Intellectual stimulation:

Transformational leaders encourage innovation and creativity among their followers. They support
new ideas and encourage their followers to explore new ways of doing things. They never criticize
their followers among others for mistakes. They rather focus on "what to do" when a problem occurs
rather than on "who did it to blame". They can easily discard any old practices set by them if proven to
be ineffective.

Idealized Influence:

Transformational leaders think that they can influence their followers through practicing what they are
preaching. These leaders also place the needs of their followers as priority even over their own. They
show high standards of ethical conduct, and this they gain the trust and respect of their followers. They
act as a role model and because followers trust and respect their leader, they emulate them. When
these leaders use power, they aim at influencing their followers to strive for the common goals of the
organization.

Individualized consideration:

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Transformational leaders offer support and encouragement to individual followers. They act as
mentors to them and reward them for creativity and innovation. Transformational leaders have an open
communication lines with their followers so that they feel free to share ideas and leaders can offer
direct recognition of the contribution of each follower. Transformational leaders treat followers
differently according to their talents and knowledge.

1.6 6 STEPS FOR TRANSFORMATIONAL LEADERSHIP

Step 1

Developing vision

To follow the leader, people need a convincing reason. That is why the first step the leader
should do is to create and communicate an inspiring vision of the future.

Step 2 selling the vision [Motivate People to Buy Into and Deliver the Vision]

Transformational leaders realize that unless they encourage their followers, nothing
significant happens. So, leaders know about the different types of motivation and use the
appropriate type of motivation with each single employee to inspire them to deliver their best.

Step 3 Road Map [Manage Delivery of the Vision]

The vision should be communicated in an inspiriting way and pursued to be achieved. The
vision is no use on its own, therefore transformational leaders work with their teams to make
it real.

Step 4 Leading the charge [Build Ever-Stronger, Trust-Based Relationships With Your
People]

Transformational leaders focus their attention on their followers and work hard to help them
achieve their goals and dreams. They actually communicate the vision and goals of the
organizations and link it to the personal goals and dreams of their teams.

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1.7 EFFECT OF TRANSFORMATIONAL LEADERSHIP ON ORGANIZATION

Higher Satisfaction – Higher effort – higher performance

As the transformational leaders seek to achieve a positive change, they are able to inspire their
followers and get them into the vision that they communicate it to them. They also gain the
trust and respect of their followers. Thus, each one of their followers exerts higher effort to
achieve the common goals. The outcome is higher efficiency and higher satisfaction and of
course both lead to positive managerial and organizational performance.

Transformational leaders through their behaviors can incite the followers' innovative
behavior. They are able to establish a fruitful business environment to their followers as they
influence them positively and create an optimistic and positive culture among them.
Transformational leaders raise their follower's performance expectations, and push them to
more progressed levels.

This role of fostering the innovative behaviors and attitudes among the followers influences
the overall innovative performance of the whole organization.

1.8 STEVE JOB AS AN EXAMPLE OF A TRANSFORMATIONAL LEADER:

Steve Job is one of the prominent examples of transformational leaders. He leads his
employees and challenges them to constantly think beyond what has been done.

Steve Job left Apple in 1985, and founded NeXT Computer. On 1996 Apple was struggling
and by that time Apple purchased NeXT. Steve Jobs was brought back to Apple in 1997 and
actually he proved to be a great transformational Leader.

What Steve Jobs did upon his return was that he looked at the number of proposed research
and development projects. Then he stopped most of them.

Today, the Apple brand is known for its lean venture strategies, small but value-added
product range and great launch program. The impact of this simple change, according to Jobs,
"comes from saying 'no' to 1,000 things to make sure we don’t get on the wrong track or try to
do too much.”

"The cure for Apple is not cost-cutting. The cure for Apple is to innovate its way out of its
current predicament," Job Said.

Steve Job actually shows the four dimensions of transformational leadership; Inspirational
motivation, intellectual simulation, idealized influence and individualized consideration; he
inspired the vision to his employees and managed to select what to focus on, he always asked
his followers to draw suggestions on a board on which he used to write his challenges and his
followers' inputs. He also mentioned them on board.

After gathering their inputs, he conducted a filtration process with the help of his employees
to develop more solid, tangible ideas.

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Steve Jobs once stated, "My passion has been to build a lasting company where people were
motivated to make great products. Job actually pushed people to do challenging things and
lead Apple to exceptional success.

Steve Job was a real transformational leader who could transform Apple towards a continuous
and effective innovation

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Chapter Two

2 MOTIVATING FOLLOWERS:
The next pages will discuss the topic of motivating followers through the following points:
1. Why motivation is important:
2. Abraham Maslow – A theory of human motivation
3. Kinds of Motivators: Intrinsic and Extrinsic – Positive and Negative.
4. Sustainable motivation and the role of Purpose in Sustainable Motivation.
5. What is the best motivator for employees?
6. How to increase motivation?
7. Avoid mistakes that kill motivation.
8. Non financial recognition or incentives
9. Types of non financial Incentives

2.1 WHY MOTIVATION IS IMPORTANT:

Motivating plays a critical role in employee productivity, quality and speed of work. Thus, it
leads the organization to success.

The absence of motivation in workplace can put the whole organization in a very dangerous
situation, as motivation allows the management to meet the organization goals.

The employee's productivity can reach its maximum in a motivated workplace allowing the
organization to achieve higher level of output. If the employees lose their enthusiasm to work
and become de-motivated, they may use the time of work navigating the internet or even
searching for another job.

The benefits that organization can have from facilitating a motivated work place to their
employees are numerous and this can be summarized in the below:

1. Higher level of commitment among employees:

Motivated employees are very committed to their work as they will exert their maximum
effort to finalize the tasks assigned with the expected outputs.

2. Higher level of satisfaction among employees:

Having satisfied employees is very important as this contributes in reducing the turn over and
to retain highly qualified employees which leads to organization success.

Motivation also builds on friendly relationships that can result in maximization of profits
through increased productivity.

3. Continued employee development:

Motivated employee are enthusiastic at their work and keen to keep developing their skills,
gain more experience and get trained to reach a higher level. Such workplaces, where

10
employees are keen to keep their self development, the whole organization will also get
developed.

4. Improved employee efficiency:

To reach high levels of efficiency, employees should both have the ability to do the tasks and
the willingness to perform. The balance between abilities and willingness improves the
productivity and increase the efficiency.

That is why motivating employees are essential for the sustainability of the organization. Every organization
needs financial, physical, and human resources to deliver on all counts and achieve desired results. To make the
best use of human resources available, motivation is the key.

2.2 THE MOST INFLUENTIAL MOTIVATION THEORIES:

Abraham Maslow – A theory of human motivation

The theory proposed that human needs can be arranged into five categories of needs in a form
of a pyramid that should get fulfilled in a specific order. It has to start from the bottom of the
pyramid all the way to the top. These five needs are:

Physiological needs: This includes the basic needs to survive. Like food, water, breathing
and sleep...etc.

Safety needs: This includes what makes the person feel secure. So, this includes safety for
resources, for employment, safety in our health, property. These also are basic needs, but can
only be fulfilled after the level of physiological needs.

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Social need, also called love and belonging: This includes the need to belong, the need to
have friends and family.

Esteem need: The need to feel confident and have a sense of achievement in what is done,
the need to gain respect and admiration from others.

Self actualization need: It is also called self self-fulfillment. This is the need that urges the
person to become what he is capable of doing. It is a need for acceptance and also creativity.

In Maslow's pyramid, the highest level of self-actualization is referred as “growth need,” it is

separated from the lower four levels on Maslow's hierarchy, which are called “deficiency
needs.”

According to Maslow's theory, deficiency needs should get fulfilled first so as to avoid
unpleasant results. The deficiency principle also claims that once a need is satisfied, it is no
longer a motivator because the person will look forward to satisfy the need in the next level.
For example, if the person fulfilled his basic needs of food, shelter, and safety needs, he will
look forward to satisfy social need, and will not regard the satisfaction of the previous level
until something occur to threaten it.

For example, a worker who is threatened to lose his home if not pay the rent is motivated to
work only to have his wage just to pay the rent. He will not pay attention or worry to feel that
he belongs to the work place as all what he is going to think about is to get money and pay the
rent.

Once he fulfilled this aim, and felt secure he will start aspire to the higher level and would
worry about have a friendly work place.

The employee who has passed years in his workplace and achieved respect from others, make
friendships at work, will look forward to feel a sense of achievement, to feel that he is an
achiever and his work is seen by his bosses and to get promoted at work.

On the other side, self-actualization needs can make the person happier, but it will not cause
harm if it does not fulfilled. Self actualization also is a very individual process and will
probably vary significantly from person to person.

Consequently, self-actualization needs only become a priority when the other four
foundational needs are met.

Applying Maslow's motivation theory:

Through this theory it can concluded that people's needs are not met with just fulfilling the
basic needs of 1st and 2nd level.

People have many needs that have to be satisfied. One single method of motivation can
succeed in motivating one person and fail to motivate others. People may be well paid

12
however still feel unsatisfied if they have needs that are not met. One person may feel more
satisfied to receive recognition for his work.

To motivate followers, leader should identify at which level of the pyramid each individual
from his team is located, then focus on satisfy the current level and also plan to satisfy the
next level to ensure the sustainability

2.3 KINDS OF MOTIVATORS:

It is essential for the manager to understand the different types of motivation so that to be able
to better categorize the team members and apply the appropriate type of motivation.

Some people respond better to intrinsic motivation which means from internal or within and
will be committed to fulfill any obligation within the preferable area or the area of their
passion.

On the other side, some will respond better to extrinsic motivation such as of obtaining a
reward after the completion of their task.

Of course, sometimes both motivators can be behind the completion of the task. For example,
someone who is studying MBA because he likes the topics and at the same time he aspires to
get promoted in his work to a certain post which requires to have MBA certificate.

Intrinsic and Extrinsic Motivators

Intrinsic Motivators:

Intrinsic motivator comes from inside. It means that the person find himself motivated when
doing tasks or obligations within the area of his passion. It is simply the act of doing
something just because the person is enjoying doing it or willing to do it.

A person who enjoys writing is willing to write reports or business documents at his work. On
the contrary, most of sales staff who prefer outgoing and direct dealing would feel writing
reports as a heavy task.

The power of intrinsic motivation:

When a person pursues an activity just because enjoys doing it, he is doing this because he is
intrinsically motivated and this motivation behind this behavior totally comes inside, and the
reward here will involve creating positive emotions within the individual. It may also give a
sense of advancement to the person when he learns something new from the activity.

Generally, people are more creative when they are intrinsically motivated. At work extrinsic
rewards can be offered for the purpose of increasing productivity, such as bonus. However,
what influence the real quality of accomplished work are the intrinsic factors.

For instance, an employee who is doing the job tasks he finds rewarding, interesting and
challenging is expected to come up with innovative ideas and creative solutions.

Factors that incite the intrinsic motivations:

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Curiosity, challenge, control, recognition for an achievement, cooperation, competition,
interesting work, responsibility, achievement, growth and advancement are all factors that
incite the intrinsic motivation.

Curiosity: In an organization, if the assigned tasks attract the attention of the followers, or
something about the activity incites in the followers to learn something new, in other words
when the activity or task stimulates the curiosity of the follower, this will make them
internally or intrinsically motivated to do it.

Challenging and interesting: People are more motivated when they are seeking to achieve
goals with personal meaning and when they find it possible to attain this goal however
requires some effort. When they get performance feedback on attaining such goals, this may
also relate to their self-esteem.

Control: People are more intrinsically motivated when they can determine the goals they are
pursuing. Having control on the way the job is done can motivate people internally.

Recognition for achievements: In organizations, employees expect to have their

accomplishment recognized by others. This is very important as it incites their internal
motivation.

Cooperation and competition: Working inside a cooperative team or in an healthy

competition work place where goals are set, required outputs are predefined, remarkable
performance is rewarded, people can enjoy cooperating with others and also can compare
their own performance with others in a healthy way to help them to get improved and also to
feel recognized.

Growth and advancement: The intrinsic motivation is incited when the person aspires to self
developing. The challenging tasks that stimulate the individuals to learn something new
increase the internal motivation.
Extrinsic Motivator
On the contrary, extrinsic motivator comes from outside. This means the person expects to
receive something in return for the task or the obligation he is doing.

For examples, sales staff will only write business reports if obliged to do it to avoid
deductions from their bonus, or as they expect to be rewarded for achieving the target.

Positive and negative Motivators:

Positive Motivator

Positive motivator is the incentive or the reward provided to a person for doing an action. For
example, bonus or salary increases after work achievement.

Therefore, this type of motivation is also called reward motivation. The reward can be a long
term and a short term. However, it is more influential in the case of having a short term

14
reward as the person will not lose his enthusiasm. For example, when an employee is
working on a short term task and knows he will have a bonus once the task is finished. He
will feel motivated to finish the required task to get the bonus.

When it comes to a long term goal, it can be difficult to maintain motivation, when the reward
is so far away. Therefore, it is recommended to set milestones or smaller goals to achieve a
long term goal so that the person can be kept motivated.

Negative Motivator
Negative motivator is the punishment that a person receives for doing unwanted act, for doing
a mistake, or for not completing a certain required act. This can be a deduction from the salary
for example.

For example, when the employee is working just for not to get fired, in this case he is
experimenting a negative motivator. He does not want to work to achieve success but to avoid
being fired. It is the fear of being fired which causes negative motivation.

When to use negative motivation:

Negative motivation works only if the person knows that escapement channels are available.
For example a boss never shouts at his employees when they make mistakes without first
showing him how to do things correctly. If the person knows how to freedom, then negative
motivation is going to be effective.

Difference between negative and positive motivation:

- All decisions that human beings make are to either gain pleasure or to avoid pain. Negative
motivation is to avoid fear while positive motivation is linked with getting pleasure.

- The difference between negative and positive motivation is the difference between surviving
and living.

- If a person is positively motivated his actions will most likely have a positive outcome. On
the other, if he is negatively motivated, his actions will have an undesirable negative outcome.
- Negative motivation can be self damaging and positive motivation can be self confidence.

- The person is running from actions that come out of a negative motivation while run for
actions that come from positive motivation.
- Negative motivation can be self damaging and positive motivation can be self confidence.

- The person is running from actions that come out of a negative motivation while run for
actions that come from positive motivation

Sustainable motivation:
Leaders should focus on how to influence their followers and promote inside them a
sustainable motivation that leads them to feel that they want to do the tasks from their inside.
This is the positive sustainable motivation as it comes from their inside and it is persistent and
not subject to any temporary motivator type.

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2.4 THE ROLE OF PURPOSE IN SUSTAINABLE MOTIVATION
The reason the person does not always remain motivated comes down to his motivation. If the
reasons aren’t aligned with something even more significant—the purpose—the person will
struggle to continue taking action.

The definition of purpose is most commonly described as the reason for which something is
done or created or for which something exists.
Thus, the purpose rises out of the ambition and serves to motivate the person to actions that
help him achieve his goal.

For example, if a trainer has a purpose to make a change and develop people's skill through
providing them trainings, his ambition is related to his purpose. He provides training and he
really want to make a change in people. As long as his working is aligned with both his
purpose and his ambition, he will feel motivated to give trainers.

However, if his purpose and ambition become misaligned, he will lose motivation. Or if the
reasons for giving trainings become misaligned with the purpose and ambition, he also will
lose the desire to act in a way that helps him achieve his goal. For instance, if he begins to
focus only on the money he could earn or pleasing an agent, he will find his motivation
fading.

Thus, to have a sustainable motivator, purpose should get aligned with ambitious. The best is
to incite an intrinsic positive status.
2.5 WHAT IS THE BEST MOTIVATOR FOR EMPLOYEES?
Regardless of the industry, in any organization, it is essential to incite intrinsic motivation in
the employees. This is an important factor to have highly productive employees. The

16
employees who are only motivated when they receive external rewards will soon lose morale.
Sustainability requires having employees with intrinsic motivation, then to provide these same
employees with external rewards on their performance so as to keep their enthusiasm to work.

In other words, employees have to be motivated from inside first then externally by rewards
with external benefits to achieve the best results in an organization.
2.6 HOW TO INCREASE MOTIVATION?
As per above indicated, there are plenty of theories and tips of how to increase motivation.
However, as there are other psychological factors can influence motivation, leaders have to
understand how to understand their followers and to select the best motivators for them in
different situations.

Below are some tips on how to increase motivation:

 Uniting vision: It is easier to achieve success when you can visualize it. Assisting the
team to see the complete picture and how their work will contribute to achieve it
increase their motivation as this way the leader get his team into the big picture or
vision and let them feel the meaningfulness of their work.

 Setting goals: Setting small, clear and measurable goals are very assisting in
motivating the employees. Each time, the employee achieve a goal, this will push him
to continue and will make him feel success.

 Building morale through giving positive guidance, recognizing great work and
achievements celebrate results and share positive outcomes all are factors that help to
increase motivation.
 Training and development: Invest in people make them feel committed to
organization. Training and development also assist employees to understand their
work and do it efficiently. Training also increase the employee's productivity and this
assists in letting them experience success with their work and increase their morale. In
addition, facilitating opportunities for advancement to the team help in employee
retention and performance.

 Interesting and challenging work:

Leader can do several things to make the work environment interesting and
challenging through defining the required job and the expected results so as to avoid
any unclear or conflicting expectations that may ruin the work relationship; listening
to employees suggestions and encouraging new ideas; encouraging people to work in
team and making real delegation; setting small and clear goals so as to assist
employees to achieve small wins during their way to complete the bigger tasks;
encouraging people and getting involved in the community; measuring results and
celebrate high performance and thanking people.

2.7 AVOID MISTAKES THAT KILL MOTIVATION

Sometimes, leaders have already motivated employees however this may cause leaders not to
pay attention to keep this motivation and avoid mistakes that may end up with it.

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These mistakes are:

1. Not promoting from within

Stuck in a dead end job really kills staff energy. If the employee cannot see any progress with
the career path, he will lose enthusiasm. When there is a vacancy in the company, they should
look at the qualified employees and see if there is an opportunity to hire from within. If
employees feel they have an opportunity to advance within the company, they will be more
motivated to do extremely well with their work.
2. Not creating a unique culture
Corporate culture becomes a larger part of what employees and new hires value as a part of
the job, it is increasingly important to offer a unique benefit to keep team members engaged.

3. Not playing to employee strengths.

Leaders should keep an eye out for employees who are underutilized, and quickly relocate
them to tasks and positions where they are more comfortable.

When employees are performing a task they feel matches their skills and goals, they will be
more motivated to succeed and feel better about the purpose of their work.

4. Not respecting employees.

Motivation rapidly vanishes when management does not treat employees with respect.

When employees feel that they are respected in the organization and their voice matters, they
can provide a plenty of new ideas and engage with management to work together in order to
improve the organization.

5. Not recognizing employees for their accomplishments

Employee recognition programs are one of the very best ways to keep your team motivated,
especially when it is done by both management and peers.
Motivating employees never ends, so leader should never stop trying to find new ways to get
his team excited about what they’re doing. Leader should capitalize on any opportunity to
highlight their achievements.
The more employees are recognized by their leaders, the more motivated they will be to excel.

2.8 NON FINANCIAL RECOGNITION OR INCENTIVES

Although financial rewards such as, bonuses and commissions are more common as a tool for
employee motivation and have proven to be successful in improving the performance of the
employees who receive them in some cases, they are not like that in some other cases.

Another type of incentives called non financial or non monetary incentives can be used also to
motivate employees.

The non monetary incentives can be defined as those rewards or incentives that are not
representing part of an employee's pay. Although the cost of this type of rewards is not that
much, however it has a significant influence and is significantly effective for employees who
are comfortable with their salaries or have been in the position for a long time.

18
From the other hand, non monetary rewards like praise and recognition are extremely
important in all levels to ensure motivated workplace inside the organization.

Non monetary rewards can be defined as the incentives that do not involve direct money to
the employees.

The non monetary rewards should be given to all the employees of a certain level to offer
them recognition, convenience and security.
2.9 TYPES OF NON FINANCIAL INCENTIVES

The non financial incentives can be categorized under four main types:

1. Recognition
Employees want to feel that their effort and time exerted to accomplish work tasks is
appreciated and valued.

Award presentation in front of peers, dinner with CEO, Enhanced decision making, new
office or upgraded work space are all examples of the non financial recognition or incentives
that makes the employees feel that his work and effort is appreciated and valued.

2. Opportunity:

Feeling that there are available opportunities for advancement and progress makes the
employees motivated.

Chance to lead teams and tasks, paid training, promotion or mentorship programs all are
examples of what can makes employees motivated as they consider it as opportunities for
advancement.

3. Reward
Examples of non financial rewards are: Vouchers, prizes, gift cards, or paid parking or transit
pass.

4. Flexibility

Paid personal days, flexible schedule, telecommunication options, ability to stop working on
least favorite task are all examples of flexibility non financial recognition.

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Chapter Three

3 KNOWING HOW: LEADING GROUP & TEAMS

In this topic, we will cover Team VS Group:
1.Difference between Groups and Teams.
2.Why group or team: The advantage and Disadvantage from Groups and teams.
3.Types of Groups and teams.
4.Roles and stages in Group.
5.Conditions Affecting Group Behavior.
6.The qualities of effective leader.
7.Characteristics of effective teams.
8.How to lead a team successfully.
9.Reasons why your team hates you.

3.1 WHAT IS THE DIFFERENCE BETWEEN GROUPS AND TEAMS?

Groups: group or team concept is adopted by the organization, to accomplish various client
projects. When two or more individuals are classed together either by the organization or out
of social needs, it is known as a group.

Within any group, each individual is preoccupied with his/her own task and little is known or
understood about the tasks of the other group
members. There is no overview of the contributions
that each individual makes towards the end result,
and this forms the basis for a lack of understanding,
for suspicion and for the creation of ‘little empires.

Team: is a group of people who share a common

team purpose and a number of challenging goals
with shared leadership who perform interdependent
jobs. Members of the team are mutually committed to
the goals and to each other. This mutual commitment also creates joint accountability which
creates a strong bond and a strong motivation to perform.

Without purpose and goals you cannot build a team. The purpose must be worthwhile and
create a sense of doing something important together. The goals must be challenging and
specific so that each member can understand how they contribute to the success of the team.

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3.2 WHY GROUP OR TEAM: THE ADVANTAGE AND DISADVANTAGE FROM
GROUPS AND TEAMS

Groups Advantages:

The below is the two important reasons for group formation in an organization:
A- From organizations point of view
1.Goals: Group of people from different backgrounds to accomplish independent jobs with
individual accountability, evaluation, and rewards.

2.Proper and Careful Planning: A manager will be very careful in planning and other jobs
for the fear of the presence of the group.

3.Information: Groups act as a medium of information for the management. A set of

information, which the management is reluctant to express in writing can be conveyed to the
members through the informal communication channels of the group.

4.Restraining the Authority: A group also helps to keep checks and balances on the
manager’s excessive use of authority. A manager is not allowed to cross his limits or bounds.

B- From members’ point of view

1.Companionship: The need for relationship with other people is one of the strongest and
most constant of human drives. Relationships give an individual, who earlier felt lonely and
miserable, recognition and his work life pleasant and comfortable.

2.Identify: We try to understand ourselves through the behavior of others towards us. If
others praise us, we feel we are great. Groups provide many others who will laugh, praise or
admire us.

3.Information: As a piece of information available to one member will nearly reach all the
members in a short span of time. An individual comes to know about what is happening in an
organization even if he has been on leave or is otherwise away.

The group may develop a special code or language for speedy communication.

4.Security: Maybe, the strongest reason for group formation is the people’s need for security.
By joining a group, a person can reduce his insecurity as he feels stronger, has lesser self-
doubts and is more resistant to threats. A person always derives reassurance from interacting
with others and being part of a group.

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 The group protects its members from the arbitrary policies and orders of the formal
organizations and provides a psychological buffer between the individual and the
organization. This often explains the concept of unions.

5.Esteem: The members will feel good about themselves by virtue of the group’s power,
prestige and social standing.

6.Sense of Belongingness: It is an emotional need for friendship, love, affection and

affiliation to understand, support and help them when they are in need and render them moral
and emotional support in time of difficulty .When people are new to an organization, they are
eager to find friends with which they can check their perception of new and uncertain
environment.

7.Job Satisfaction: Many jobs which appear superficially dull and routine are made
interesting by the group and spontaneity is encouraged and protected by the group.

8.Power: Membership of group offers power to its members.

9.Perpetuation of Cultural Values: Common cultural background brings people together

and is a strong cementing force. People, sharing a common culture, are able to maintain their
cultural identity and even propagate their culture. A group with a particular cultural value
often takes up activities which help perpetuate those values. This, even gives, psychological
satisfaction to members.

Groups Disadvantages:

1.Time-consuming: Making decisions in a group can, thus, be time-consuming. The time loss
involved in group dynamics cannot be ignored.
2.Expensive: Group decision-making is quite expensive in terms of time, money, energy and
man-hours.
3.Lack of onus: It is difficult to fix responsibility in a group.
4.Members not contributing.
5.Dominating personalities: Quite often, discussions in a group are dominated by a few
members. Although a group discussion means a collective discussion, some people usually
manage to draw to them a position of informal leadership owing to their personality or style
of participation.
6.Ineffective communication.
7.Compromise decisions: The need to arrive at a group decision sometimes results in a
compromise. The solution offered is not essentially the best. It is, instead, a compromise
acceptable as a mid-point to all concerned.
8.No discussion is done as a team.

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Team Advantages:

1.Promotes Creativity: When employees work together in a group, they are often times able
to collaborate together to brainstorm innovative and creative ideas.
2.Generates Motivation: Team members working together in harmony are able to motivate
one another.
3.Builds Trust: Employees who trust each other do not compete with one another
unnecessarily.
4.More Work in Less Time: By sharing tasks and capitalizing on the different strengths of
various individuals, teams can often accomplish a great deal of work in a relatively short
period of time.
5.Reduce cost and reduce the conflicts.
6.Increase employee involvement.
7.Creates better adaptability and flexibility in the organization.

Team Disadvantages:
1.Compatibility Problems: Management must effectively handle incompatible employees by
providing training or removing them from the group.
2.Interpersonal Conflict: One team member may disagree with the ideas of another team member,
which may lead to an argument. Hostility within teams limits productivity, creativity and the decision-
making process.

3.3 TYPES OF GROUPS AND TEAMS

Types of Groups:
1- Formal Groups:
Formal groups are created to achieve specific organizational
objectives. Usually, they are concerned with the coordination
of work activities.

People are brought together based on different roles within the

structure of the organization. The nature of the task to be
undertaken is a predominant feature of the formal groups.
Goals are identified by management and short and rules
relationships and norms of behavior established. Formal groups
chain to be related to permanent although there may be changes
in actual membership.

However temporary formal groups may also be created by management, for example, the use
of project teams in a matrix organization.
Formal Groups including: Command group and task group.

2- Informal Groups:

Within the formal structure of the organization, there will always be an informal structure.

23
Informal groups are based more on personal relationships and agreement of group’s members
than on defined role relationships. They serve to Satisfy psychological and social needs not
related necessarily to the tasks to be undertaken.

Groups may devise ways of attempting to satisfy members’ affiliations and other social
motivations that are lacing in the work situation, especially in industrial organizations.
Informal Groups including: Interest group (Al-Ahli lovers), friendship group, reference group
(Fifth settlement residents).

3- There are some another groups including: Managed groups, process group, Goal group,
semi-formal groups.
4- Homogeneous group: there is a harmony between the groups.
5- Heterogeneous group: like our MBA academy group at the first.

Types of teams:
1.Functional Teams: These teams are permanent and always
include members of the same department with different
responsibilities. A manager is responsible for everything, and
everyone reports to him.
2.Cross-functional Teams: Cross-functional teams are made
up of members from various departments. These teams tackle
specific tasks that require different inputs and expertise.
3.Self-managed Teams: Typically, members of self-managed
teams are employees of the same organization who work
together, and even though they have a wide array of
objectives, their aim is to reach a common goal. There is no
manager nor authority figure, so it is up to members to
determine rules and expectations, to solve problems when they arise, and to carry shared
responsibility for the results.
4.Virtual Teams: are made up of people who work in different physical locations and who
rely heavily on collaboration tools to get things done together.
5.Operational teams: support other types of teams. They are formed to make sure that all
back office processes go smoothly.
6.Problem-solving Teams: Employees from the same department and functional area who
are involved in efforts to improve work activities or to solve specific problems.
7.Matrix Teams: These teams are characterized by a “two-boss system”, where an individual
report to a different manager for various aspects of his work.

3.4 ROLES AND STAGES IN GROUP

Roles in Group:

1.Task oriented roles: Task roles and their related behaviors contribute directly to the
group’s completion of a task or achievement of its goal or purpose. Task-related roles
typically serve leadership, informational, or procedural functions.
2.Maintenance roles: Maintenance roles and their corresponding behaviors function to create
and maintain social cohesion and fulfill the interpersonal needs of group members. All these
role behaviors require strong and sensitive interpersonal skills. The maintenance roles include
social-emotional leader, supporter, tension releaser, harmonizer, and interpreter.

24
3.Individual roles: group members often play various roles in order to achieve individual
goals. Includes any role that detracts from group goals for keeping the group on task.

Stages in group development:

1.Forming (Orientation): Presents a time where the group is just starting to come together
and is described with anxiety and uncertainty.
2.Storming (Power Struggle): is where dispute and competition are at its greatest because
now group members have an understanding of the work and a general feel of belongingness
towards the group as well as the group members.
3.Norming (Cooperation and Integration): Group interaction are lot more easier, more
cooperative, and productive, with weighed give and take, open communication, bonding, and
mutual respect.
4.Performing (Synergy): This is the time where the group becomes really united. At this
stage, the morale is high as group members actively acknowledge the talents, skills and
experience that each member brings to the group. A sense of belongingness is established and
the group remains focused on the group's purpose and goal.
5.Adjourning (Closure): This stage of a group can be confusing and is usually reached when
the task is successfully completed. At this stage, the project is coming to an end and the team
members are moving off in different directions.

3.5 CONDITIONS AFFECTING GROUP BEHAVIOR (EXTERNAL /INTERNAL)

External conditions

1. Organization Strategy: Any organization will have a strategy which defines what
business it is in or wants to be in .The strategy that an organization is pursuing at any given
time, will influence the power of various work groups which, in turn, will determine the
resources that the organization’s top management is willing to allocate to it for performing its
tasks
2. Authority Structures: Organizations have authority structures that define who reports to
whom, who makes decisions, and what decisions individuals or groups are empowered to
make.
3. Formal Regulations: Organizations create rules, procedures, policies, and other forms of
regulations to standardize employee behavior. The more formal regulations that the
organization imposes on all its employees, the more the behavior of the work group members
will be consistent and predictable.
4. Organizational Resources: When organizations have limited resources, so do their work
groups. What a group actually accomplishes is, to a large degree, determined by what it is

25
capable of accomplishing. The presence or absence of resources such as money, time raw
material, equipment” which are allocated to the group by the organization “have a large
bearing on the group’s behavior.
5. Employee Selection Process: So the criteria that an organization uses in its selection
process will determine the kinds of people that will be in its work groups.
6. Performance Evaluation and Reward System: Since work groups are part of the larger
organizational system, each group member’s behavior will be influenced by how the
organization evaluates performance and the kinds of behavior that deserve to be rewarded.
7. Organizational Culture: Every organization has unwritten culture that defines for
employees standards of acceptable and unacceptable behavior. The employees after a few
months of work know very well about the organizational culture, dress culture, what behavior
is accepted and what is not and what are the Rules to be followed.
8. Physical Work Setting: Finally, we propose that the physical work setting that is imposed
on the group by external parties has an important bearing on work group behavior.

Internal conditions

1. Group size: The size of a group affects the group’s overall performance or behavior. Small
groups are faster at completing task than are larger ones.
2. Group cohesiveness: The degree in which members are attracted to each other and are
motivated to stay in the group are called group cohesiveness. Group behavior are significantly
affected by group are cohesiveness.
3. Group Structure: may be defined as a social rank or position given in a group by others.
We live in a class structured society. Status is important for group members.
4. Internal pressures on members to conform the group’s norms: All groups have some
establish norms. Norms refer to the acceptable standards of behaviors that are shared by the
group’s members.

3.6 THE QUALITIES OF EFFECTIVE LEADER

He must have a vision, productive, open to discussion, willing to have a challenges, honest,
have a good communication skill, cooperative, creative, good listener, etc…

26
3.7 CHARACTERISTICS OF EFFECTIVE TEAMS

1. We have a clear sense of purpose: This unifies the group. Everyone knows why the group
exists. In addition to being clear, it should also be important. Cool is better yet.
2. We have measurable objectives: Goals are the fuel which drive each member’s effort.
They know there is work to do, and they strive to get it done.
3. Our purpose supports the larger organization’s purpose: Each team represents the use
of scarce resources. People are expensive. They should only be deployed doing something
that helps advance the larger organization.
4. We know how the team will be evaluated: People want to win. The trouble with many
teams is that winning hasn’t been defined. If you don’t know what good looks like, how do
you know you’ve achieved it?
5. We understand our customers’ expectations: Each team serves others. These could be
internal or external customers. To succeed in this task requires that the team knows what
those customers expect.
6. Groups and individuals that support us understand our expectations: In most
organizations, a team’s success depends on the support they get from others. To be well-
supported, those people need to know how best to provide that support.
7. We agree on the process for completing our work: There are many ways to get the work
done. Efficiency usually requires a shared process. When this characteristic is missing, chaos
reigns.
8. We each do our “fair share” of the work: This has to happen to prevent the all-too-
common fight that begins when team members begin to think I’m working way harder than
her.
9. We have access to the resources we need: This could be experts, data, tools, equipment, or
decision authority.
10. We effectively make decisions: Teamwork requires decisions. Lots of decisions. Getting
good at making those decisions quickly separates strong teams from weak teams.
11. We communicate openly on the team: Almost all teamwork problems can be traced back
to a team’s inability to effectively communicate. Assertiveness and candor are necessary
teamwork ingredients.
12. We communicate openly with interested parties outside of the team: Your team might
be doing good work, but if nobody else knows it, you have a problem.
13. We effectively resolve conflicts: All teams have conflicts, which in themselves are not
problems. They only become a problem when they go unresolved or people are bloodied in
the process of resolving them.

27
 14. We quickly address problems that are hurting the team: When the inevitable problems
arise, good teams notice, raise the concern, and go into problem-solving mode. They certainly
don’t struggle with an “elephant in the room.”
15. We each understand what is expected of us: A team is a collection of individuals. Each
person has to know what he is supposed to do to be an effective team member.
16. We support one another: A bunch of individuals all doing their own thing in isolation
from coworkers is not a team. Effective teams are collaborative and supportive entities.
17. We continuously monitor our performance: Doing this assessment is an example of
monitoring performance. You can’t fix what you don’t notice. Ask the questions.
18. We work at continuously improving our performance: Effective teams recognize
there are many improvement opportunities. They are all about growing better together.
19. Our team achieves (will achieve) its goals and objectives: The bottom-line is always
the results. Working well together means very little if the team can’t deliver.
20. We each feel good about being a part of this team: Results without connection to
teammates doesn’t work either. At the end of the day, people are glad they are a member of
this team.

3.8 HOW DO YOU SUCCESSFULLY LEAD A TEAM?

1. Give them the freedom to use their talents.

2. Give them permission to make mistakes.
3. Guide them to work together toward a compelling
vision.
4. Show up as the leader and develop leaders within.
5. Give them what they need to be successful.
6. Create an environment of fun and enjoyment.
7. Model accountability and teach responsibility.
8. Be decisive and purposeful.
9. Don't underestimate the power of EQ.
10. Teach them that everything is hard before it's easy.
11. Give them something to learn and grow on.
12. Show them fearlessness and encourage them to be brave.
13. Earn their respect and give them yours.
14. Admit that you don't have all the answers
15. Create win-win situations.
16. Be agile and flexible.
17. Get personal as you are being professional.
18. Be honest and encourage candor.
19. Be accessible and available.
20. Consistently praise them and always appreciate them.

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 3.9 REASONS WHY YOUR TEAM HATES YOU
1. You don’t prioritize.
2. You treat them like employees.
3. You don’t fight for them.
4. You tell them to “have a balanced life” then set a bad
example.
5. You never relax
6. You’re a suck-up.
7. You treat them like mushrooms.
8. You’re above getting your hands dirty.
9. You’re indecisive. Maybe. Or not. But possibly. Yeah. No. I don’t know.

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Chapter Four

4 KNOWING HOW: TO USE THE POWER

In this topic, we will cover Power & Authority:
In this topic we will cover:
1. What is Power?
2. The Negative use of power.
3. Concepts of Power.
4. Sources of Power.
5. What is Authority?
6. Concepts of Authority.

4.1 WHAT IS POWER?

Power is the ability to make things happen
according to one’s perspective by getting someone
else to do it for you. It is mainly beneficial in
organizations where the managers assign tasks to
different employees and make them do those tasks.
It is their role to guide on what employees should
do to achieve organizational success. Power aids in
providing a sense of direction towards the
organizational goals. In organizations, there are
various sources of power.

Power is responsible for ensuring employee commitment and compliance in the organization.
It aids in avoiding resistance among employees ensuring they coexist in harmony, which leads
to increased productivity. Even though managers are perceived to have power, they also need
to work on leadership, which is an essential element in organizational power. They need to
empower fellow employees by making useful decisions that help them and their work.
Empowerment allows employees to maximize their potential, which leads to more experience
and job satisfaction.

However, employees need the training to enable them to expand their horizons. It is done
through delegation. Delegation is the distributing power from the top manager to
organizational employees granting them the authority to make important organizational
decisions. It reduces the lag time in making influential decisions that affect the normal
functioning of the organization. It increases the organizational response time and makes
employees comfortable to raise issues and contribute. It results in overall job satisfaction in
the organization.

Supervisors have authority because of their position in the workplace. They possess a type of
power because of this, but a staff member can also have power if they are well-liked by
colleagues. The staff member has no authority but colleagues are willing to follow them
because of their relationship.

30
Why is power important in leadership?
In organizational settings, leaders must exert power to achieve individual, team, and
organizational goals. Leaders must be able to influence their followers to achieve greater
performance; their superiors and peers to make important decisions; and stake- holders to
ensure the vitality of the organization.

Power is sought to control and determine the future of departments and organizations, the
outcomes of interpersonal conflicts, and personal security and prosperity. The more the
disorganization or conflict in an organization, the more the need for power will be felt and
sought. When a person seeks not merely power, but control as well, conflicts tend to increase.

What is the relationship between power and leadership?

The key difference between the two is the term of effect. Power is the exercise of leadership,
and leadership is only defined if you have power. Leadership always involves attempts on a
leader to affect behavior or a follower in a situation, whereas power is not equivalent with
influence on another person’s behavior.

Leaders have power, but they also have responsibilities. Leadership is in many ways a
balancing act. Leaders also have authority, which is both something that is designated by
those higher up and a personal quality based on influence and personal relationships.

1. The negative use of Power

The dark side of power is noted by a number of authors who view the concept of power as
alien to the effective workings of exchange relationships and success and state that power
negates cooperation.
The excessive use of power lead to many negative impacts as, as below:
1. A negative influence and unhelpful in the building of relationship quality.
2. Power is the antithesis of trust.
3. Curbs creativity.
4. Stalls personality growth.
5. Prevents career advancement.
6. Increase the employee stress.

4.2 CONCEPTS OF POWER

1. Social power: (Charismatic)

Social power is the potential for social influence. The available tools one has to exert
influence over another can lead to a change in that person. Social power and social influence
are separate and distinct concepts. Although social power is potential (which may or may not
be used), social influence is an effect, an actual change (or deliberate maintenance) in the
beliefs, attitudes, behavior, emotions, and so on, of someone because of the actions or
presence of another. The person or group that is the source of influence is commonly known
as the influencing agent, whereas the object of the attempted or successful influence attempt is
commonly known as the target (of the influence). Thus, influencing agents have social power,
which are the means they may use to influence targets.
Examples: Oprah Winfrey, Mohamed Salah, Anwar Al-Sadat.

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2. Cultural power

Power achieved through culture, retained through culture and maintained through culture and
even transfer power to others through culture. For example - religious bodies, ethnic minority
groups.
Cultural power – sometimes referred to as cultural diplomacy – is a form of power that strives
to foster the exchange of views and ideas, promote knowledge of other cultures. Ultimately, it
seeks to promote a positive vision of cultural diversity, highlighting it as a source of
innovation, dialogue and peace
Example: Ahmed Khaled Tawfik, Mostafa Mahmoud
.
3. Economic power
Economic power can be broadly defined as the ability to control or influence the behavior of
others through money. The ability of managers to use the power of the entity through threaten
their employees with firing or other penalties for not following orders or for not giving in
satisfying reports or reward their employees by bonus, commission, benefits, that can effect
positively or negatively on your work and how to do it.

4. Political power

Political power is the totality of means, influences, and pressures — including authority,
rewards, and sanctions — available to achieve the objectives of the power-holder, especially
those of government, the state, and those groups in opposition through the passage, approval,
and implementation of laws and regulations.
Defined as the ability of one political actor to get another actor to do what it wants—at the
international, national, and local levels. Enables people or groups to control the policies,
functions and culture of society
Example: Politicians, Ministers, presidents.

5. Legal power

Legal Power refers to the right and power to interpret and apply the law. Legal power is
defined in terms of the legal consequences of having power. When an agent has legal power
to achieve legal result, there are facts giving rise to the agent’s having this legal position, and
there are legal consequences of the agent’s having the position. Accordingly, a person’s
having legal power to achieve a particular legal result will be analyzed in terms of its
characteristic legal consequence.
Examples: Courts, Lawyers.

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4.3 SOURCES OF POWER

An essential part of leadership is to influence the people you lead so that they'll follow your
instructions. The influence of a leader will depend on a variety of factors including their
personality and the personality of their followers. There are different sources of Leadership
Power as below:

1. Reward Power

This type of influence is created when the leader is able to offer a reward to his followers for
completing tasks in a certain manner. Rewards in the workplace can take a variety of forms
from chocolates, gift vouchers and holidays to promotions, commission and pay rises. This
reward will only be effective if:

 The reward appeals to the followers. For example there is no point offering chocolate
as a reward to somebody that likes crisps. This is because they will not view chocolate
as a reward, so there is no incentive to complete the task.

 The followers have to believe that the leader will give them the reward promised once
the task is completed by them.
 The reward should be proportionate to the task the follower has to complete. For
example it would be disproportionate to reward an employee with a promotion for
making a cup of tea. Similarly a follower would feel undervalued, if rewarded with a
£5 gift voucher after they spent six months doing their manager's job without a pay
rise.

This type of power needs to be used carefully to prevent followers becoming accustomed to
rewards and refusing to complete routine tasks without a reward. Generally rewards should
not be offered to followers/employees to complete duties which are a normal part of their role.
This is because as an employee they are under a contractual obligation to complete these tasks
and they are already rewarded for this through their salary. The other reason why rewards
should be offered carefully, is that frequent use can reduce the impact or influence that
offering a reward initially had on the follower. Followers will soon tire of the reward
especially if the reward is small for example chocolates or flowers.

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2. Coercive Power

This is the opposite of reward power because this power is based on the leader having control
over what happens if followers do not act as required. If followers do not undertake the action
required, the leader will impose a penalty. Penalties take a variety of forms including
withdrawal of privileges, job losses, verbal abuse, and with drawl of job promotion
opportunities. In all cases the leader will need to choose the penalty carefully to prevent
breaking the law or being the subject of an employment tribunal. Coercive power requires
followers to believe that the leader has the ability to impose the stated penalty. Also the
penalty has to be something that the followers do not want to have imposed on them. For
example a penalty results in coffee being banned is unlikely to influence a tea drinker.

Finally (just as the reward in reward power should be proportional to the action taken by the
follower), the penalty should be proportionate to the action not completed by the follower. For
example it would be disproportionate to fire an employee follower the first time they do not
return from their lunch break at the stated time. Similarly it is disproportionate to reduce the
wages of an employee follower that hasn't completed their duties over a six month period by
£20 when their monthly pay is £1000. Coercive powers should be used carefully; overuse can
lead to unhappy employee followers. Unhappy followers can be negative or unmotivated, they
may resign or adopt a “work to rule” attitude. Work to rule is where employees refuse to
undertake any duties (or adopt working practices) that are not stated in their contract.

3. Legitimate Power

This is the power that a leader has when the followers believe that the leader has “a right” to
instruct them and that they have an obligation to follow instructions. Sometimes legitimacy
power is created by the leader’s job title (such as captain, doctor, parent, religious leader or
company director), combined with the follower’s belief that the job title gives the leader the
right to give them orders.

Example: Top management.

4. Referent Power

This is created when the followers believe that the leader possess qualities that they admire
and would like to possess. The followers identify with their leader and attempt to copy their
leader. As referent power is dependent on how the follower views the personality of their
leader, a leader will not have referent power over every follower they lead. Some leaders will
have referent power over just a few, whilst others such as Gandhi have led millions through
their personality and charisma.

Example: Mohamed Salah.

5. Expert Power

As the title suggests a leader has expert power when the followers believe that the leader has
“expert” knowledge or skills that are relevant to the job or tasks they have to complete. Often

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an experienced member of the team or staff in an organization, can have expert power even
though they are not a supervisor or manager.

Example: Experienced Employee.

Summary

 Reward power: Influence staff by rewarding a desired behavior.

 Coercive power: Influence the staff by punishing them for undesirable behavior.
 Legitimate power: Influence behavior of staff because of his/her formal position.
 Referent power: Influence behavior based on the staff’s liking and identification with the
administrator.
 Expert power: Influence subordinate’s behavior based on specialized knowledge or skill.

4.4 WHAT IS AUTHORITY

Authority is the legitimate power which one person or group possesses and practices over
another. The right to give orders, make decisions, and enforce obedience. Usually A civil state
makes this formal by way of a judicial branch and an executive branch of government.

Power is an entity’s or individual’s ability to control or direct others, while authority is

influence that is predicated on perceived legitimacy. Consequently, power is necessary for
authority, but it is possible to have power without authority.

Power that is delegated formally. It includes a right to command a situation, commit

resources, give orders and expect them to be obeyed, it is always accompanied by an equal
responsibility for one's actions or a failure to act. Also an agency or body created by a
government to perform a specific function, such as environment management, power
generation, or tax collection.

4.5 CONCEPTS OF AUTHORITY

The concept of authority provides a useful tool to help us understand organizational behavior
because it asks and suggests answers to the question of how the organization achieves its
objectives. How are the energies of its members directed along desired channels?

1- Customary authority (Traditional authority)

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The power of traditional authority is accepted because that has traditionally been the case; its
legitimacy exists because it has been accepted for a long time. People adhere to traditional
authority because they are invested in the past and feel obligated to perpetuate it. In this type
of authority, a ruler typically has no real force to carry out his will or maintain his position but
depends primarily on a group’s respect. A more modern form of traditional authority is
patrimonialism.

Traditional authority is legitimated by the sanctity of tradition. The ability and right to rule is
passed down, often through heredity. It does not change overtime, does not facilitate social
change, tends to be irrational and inconsistent, and perpetuates the status quo.
Example: Britain’s Queen Elizabeth, for instance, occupies a position that she inherited based
on the traditional rules of succession for the monarchy.

2- Charismatic authority

Followers accept the power of charismatic authority because they are drawn to the leader’s
personal qualities. The appeal of a charismatic leader can be extraordinary, and can inspire
followers to make unusual sacrifices or to persevere in the midst of great hardship and
persecution. Charismatic leaders usually emerge in times of crisis and offer innovative or
radical solutions. They may even offer a vision of a new world order. Hitler’s rise to power in
the postwar economic depression of Germany is an example.

3- Common law authority (Rational legal authority)

Power made legitimate by laws, written rules, and regulations is termed rational-legal
authority. In this type of authority, power is vested in a particular rationale, system, or
ideology and not necessarily in the person who implements the specifics of that doctrine. A
nation that follows a constitution applies this type of authority. On a smaller scale, you might
encounter rational-legal authority in the workplace via the standards set forth in the employee
handbook, which provides a different type of authority than that of your boss.

Legal-rational authority is empowered by a formalistic belief in the content of the law (legal)
or natural law (rationality). Obedience is not given to a specific individual leader - whether
traditional or charismatic - but a set of uniform principles. Weber thought the best example of
legal-rational authority was a bureaucracy (political or economic). This form of authority is
frequently found in the modern state, city governments, private and public corporations, and
various voluntary associations. In fact, Weber stated that the “development of the modern
state is identical indeed with that of modern officialdom and bureaucratic organizations just as
the development of modern capitalism is identical with the increasing bureaucratization of
economic enterprise.

4- Delegated authority

Every subordinate should be given enough independence to carry the task given to him by his
superiors. The managers at all levels delegate authority and power which is attached to their
job positions. The subdivision of powers is very important to get effective results and increase
administrative efficiency of an organization. Authority given to subordinate, or lesser, people
or organization to make decisions or principles on their own behalf.

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Chapter Five

5 DEVELOPING ORGANIZATIONAL CULTURE

Introduction:
The word culture has been derived from idea of cultivation which means the patterns of
development. This pattern differs from country to country and society to society. The field of
organizational behavior and the related discipline of management science began investigating
organizations in terms of culture as early as the 1930s. Hawthorne studies at the Western
Electric Company marked the first systematic attempt to use a concept of culture to
understand the work environment. Organizational Culture is a Human Resource Management
concept which is used to improve the general culture within a company and organization. The
culture creates good working relationships and promotes ethical communication between
employees. It also helps employees in making decisions in the situations where there are no
formal rules or policies, situations that haven’t been experienced yet.
5.1 WHAT IS ORGANIZATION CULTURE
Organization's cultural norms strongly affect all who are involved in the organization.
organizational culture includes an organization's expectations, experiences, philosophy,
values that hold it together and is expressed in its self-image, inner workings, interactions
with the outside world as well as future expectations. It is moral and ethical norms that have
been developed in an organization are considered valid and how committed employees are
towards collective objective. It affects the organization's productivity, performance and
provides guidelines on customer care and service, product quality and safety, attendance and
punctuality, concern for the environment. Each organization has its own unique organizational
culture. However, the Organizational culture is not a separate, self-sufficient entity in itself,
but rather one part of a whole.
5.2 ELEMENTS OF ORGANIZATIONAL CULTURE
There are many possible elements of organizational culture.
Organizational Values

Values reflect what we feel is important. Organizations may have core values that reflect what
is important in the organization. These values may be guiding principles of behavior for all
members in the organization. The core values may be stated on the organization's website. For
example, an organization could state that their core values are creativity, humor, integrity,
dedication, mutual respect, kindness and contribution to society. However, the true values can
only be tested within the organization, through the employees, based on their collective
opinion about the experience of the values.

Ethics

It is the code of moral principles and values that distinguishes the right behavior from wrong.
Ethical values are different from rule of law which is dictated by the legal system of the
country and have to be followed anyway. However, the laws themselves are based on some
moral principles and thus there is some natural overlap between ethics and the laws. The
geographic location of the organization and the culture of the place also influence the ethics;
this is particularly important for multi-national organization as well as domestic organization.

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Irrespective how an organization depicts its ethical values, they can be tested by the two
criteria.

Organizational Beliefs
Beliefs that are part of an organization's culture may include beliefs about the best ways to
achieve certain goals such as increasing productivity and job motivation. For example, an
organization may convey the belief that the expression of humor in the workplace is an
effective way to increase productivity and job motivation.

Empowerment
The social culture and the structure of the organization influences the underlying values
related to the amount of employee empowerment.

Control/Decision
Management by nature is about control, the difference is how it enforces it. Well defined
guidance, job description and authority of taking decisions are formal methods of control,
while team or collective decision making is a social or cultural method of control. The
functional or divisional structure encourages formal control while process or network
structures promote a culture of employee empowerment.

Responsibility
The authority of decision making is closely related to issue of responsibilities. The culture of
responsibility is measured by observing whether the individuals are expected to take
responsibility of their decisions or there is a collective responsibility in case of team
decisions.

Organizational Norms
Norms reflect the typical and accepted behaviors in an organization. They may reflect the
values and beliefs of the organization. They may reflect how certain tasks are generally
expected to be accomplished, the attributes of the work environment, the typical ways that
people communicate in the organization and the typical leadership styles in the organization.

5.3 IMPORTANCE OF THE ORGANIZATIONAL CULTURE

Organizational culture occupies an important principle for a few reasons. First, understanding
the culture of an organization may be helpful for applicants. They may have a better idea
about whether they would like to work for a company. Second, understanding the culture of
an organization may help in training new employees. Third, understanding organizational
culture may help leaders to identify possible sources of problems in the organization. Further
organizational cultural signification be elaborated as under.
 Organizational culture motivates to employees for new innovation, good product
quality and creative thinking.
 Responsiveness to customer needs and extraordinary devotion to customer services, so
organizational culture is important for organization.
 Organizational culture helps to face global competition, changing patterns of
technology and environment.
 Organizational culture teaches every members of organization how behave to
stakeholder of organization through organizational behavior.
 A strong organizational culture provides many fruitful point of any organization.

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  Employees have company loyalty and give unmatched services to customers.
5.4 ORGANIZATIONAL CULTURE MODEL
Organizational culture is a unique phenomenon. However, there are some general corporate
culture classifications.
Power Culture
 Power culture is associated with autocratic leadership.
 Power is concentrated in the center of the organization.
 Decisions can be made quickly as so few people are involved in making them.
 Managers are judged by results rather than the means used to obtain them.
 Autocratic leadership and hierarchical structures are features of organizations with a
power culture.
 Motivational methods are likely to focus on financial incentives and bonuses to reward
exceptional performance (which can encourage risky short-term decision-making;
think Enron).

Role Culture
 Role culture is associated with bureaucratic organizations.
 Staff operate within the rules and show little creativity.
 The structure of the organization is well defined and each individual has clear
delegated authority.
 Power and influence come from a person’s position within the organization.
 Decision-making is often slow and risk-taking is frowned upon.
 Tall hierarchical structures are used in organizations with a powerful role culture.

Task Culture
 Groups are formed to solve particular problems, and lines of communication are
similar to a matrix structure
 Such teams often develop a distinctive culture because they have been empowered to
take decisions.
 Team members are encouraged to be creative and there may be a strong team spirit
which can lead to a very motivating environment (meeting workers’ intrinsic needs).
Person Culture
 There may be some conflict between individual goals and those of the whole
organization, but this is the most creative type of culture.
 There is no emphasis on teamwork as each individual is focused on their own tasks
and projects.
 This type of culture can be found in a scientific research environment or in
professional partnerships (say, lawyers and architects).
 Individuals who thrive in this type of environment will often find it difficult to work
effectively in a more structured organization.

Entrepreneurial Culture
 In this culture, success is rewarded, but failure is not necessarily criticized since it is
considered a consequence of enterprise and risk-taking.
 This is a culture usually found in flexible organizational structures.
 Motivation levels are likely to be high among people who enjoy the challenge of
innovative risk-taking.

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5.5 FACTORS INFLUENCING ORGANIZATIONAL CULTURE:
In assessing the nature of an organization’s culture, it is important for managers to understand
the factors which influence culture.

The business environment:

The general business environment in which an organization operates helps to determine the
culture. Society at large will influence opinions about work, money, status and different types
of jobs. The writings of sociology and anthropology highlight the differences in cultural
attitudes between geographical regions as well as differences between different levels of
social strata. These differences will affect commitment, respect for managers, attitudes
towards service and the customer.

Leadership:

it is involved in the long-term direction of the organization through the development of a

vision and strategies for the future. The leader is then responsible for communicating through
words and deeds this vision to internal and external audiences while motivating and inspiring
the individuals who have to deliver it In new organizations, the entrepreneur or founder
influences the culture through his own ambitions, the interactive processes between
entrepreneurs and their followers and the more general processes through which purpose and
commitment are generated and sustained. The founder as having a critical role in reducing
anxiety with in a new group situation. As the founder’s prescriptions of how things are to be
done help to set standards of acceptable behavior and best practice, they also help to structure
the initially unstructured relationships among the new group members.

Management practices and the formal socialization process:

The manner in which an organization is managed is likely to influence either positively or
negatively the beliefs, attitudes and behavior of the employees. Before considering
management practices, It is generally described as being about the detailed planning,
budgeting, organizing, controlling and staffing of the organization as well as ad hoc problem
solving. Within these management tasks, managers have control over arrange of factors that
apparently affect cultural transmission.

The informal socialization process:

As all of the definitions of corporate culture identify the critical element of sharing with in a
group, it is important to consider how an individual behaves within the group context. From
group dynamic theory, the individual in a group setting has basically three primary needs,
 The first of these is to feel part of the group by developing a viable role and being
recognized by other members of the group. This involves a compromise of
maintaining a distinct and separate identity at the same time as being seen as a group
member.
 Second, there is a need to feel powerful, able to influence and control whilst accepting
the needs of others to do the same. This can lead to conflict but can also help to
formulate the roles of individuals within the group.
 Third, there is a need to feel accepted by the group and to achieve the basic security
and intimacy that comes with that.

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5.6 WHAT ARE 4 TYPES OF ORGANIZATIONAL CULTURE?

In 1983, after reviewing various studies, Robert Quinn and John Rohrbaugh determined that
two major dimensions' account for the broad range of indicators that make up an
organizational culture.6 These dimensions became the foundation for what is now known as
the Competing Values Framework. The concept emerged from research that demonstrated a
link between culture types and organizational effectiveness.

Two major dimensions emerged consistently:

1. Flexibility versus Stability: This dimension focuses on order and control versus adaptation
and dynamism. (Some organizations, for example, value managers who are adaptable, while
other organizations prefer managers who are consistent.)

2. Internal versus External: This dimension differentiates an internal orientation intent on

integration, collaboration, and unity from an external focus on competition, differentiation,
and rivalry. (Some organizations prioritize harmonious internal relationships and processes,
while others f ocus externally on establishing a market niche.)

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Collaborate Culture

An organization that focuses on long-term internal development and team building

and supports a work environment that demonstrates flexibility, concern for people,
and sensitivity for customers.
Design implications include: • Medium enclosure
• Low ratio of individual to group space • Very flexible environment
• Informal spaces • Organic layout

Create Culture

An organization that concentrates on doing things first by differentiating itself

externally with a high degree of experimentation and individuality.
Design implications include: • Low enclosure
• Low ratio of individual to group space • Highly flexible environment
• Informal group spaces • Organic layout

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Control Culture

An organization that focuses on doing things right through internal procedure with
a need for stability and control.
Design implications include: • More of a fixed environment
• High ratio of individual to group space • Structured, symmetrical layouts
• More formal spaces • Higher enclosure

Compete Culture

An organization that focuses on doing things fast through external competition with
a focus on results.
Design implications include: • Low to medium enclosure
• Medium ratio of individual to group • More structured, symmetrical layouts
space
• Mix of formal/informal spaces

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5.7 6 STEPS TO BUILDING A STRONG COMPANY CULTURE:

1-START WITH A PURPOSE.

To create that purpose, understand the "why" of the operation. What (or whom) does your
business serve? Whatever your answer is, it should be authentic, inspirational, and
aspirational. Companies with a strong purpose are well liked because they feel different

2. DEFINE A COMMON LANGUAGE, VALUES AND STANDARDS.

In order for a culture to be successful, those at your company must speak the same language
and be on the same page about what your values are. This common language needs to be
understood by everyone in the company -- from the CEO down to the mail room worker.
Write down those values. This is an essential element in making your culture withstand the
test of time -- it makes them tangible.
You must also have a common set of values, which are your company’s principles, and a
common set of standards which will measure how your principles are being upheld.

3. LEAD BY EXAMPLE.

A culture is shaped by how a company’s leaders act. Every leader needs to internally and
externally reflect the company’s values and be its strongest advocates.
As a leader, you need to lead by example and also be radically transparent. It won’t matter
one iota if you think you have a great culture, but your employees don’t trust you. Being
transparent, even when that's difficult, will go a long way in preserving the culture you
originally envisioned.

4. IDENTIFY YOUR (CULTURAL) AMBASSADORS.

Every company has them: employees who live, eat and breathe your culture and help
everyone else understand who you are as a company and what you stand for. These
employees are your biggest advocates because they love the company almost as much as you
do -- they are your cheerleaders.
The role of these ambassadors doesn’t diminish with time. On the contrary, their role
increases as the company grows and in the end, gives us a competitive advantage. Why?
Because customers will remember those who are positive, and knowledgeable about the
company (or brand) they represent.

5. BE TRUTHFUL AND ALWAYS COMMUNICATE.

Integrity has been defined as “doing the right thing, even when nobody’s watching.”
Whatever you do, you must always demand that everyone in your company adhere to being
truthful and approach everything with the utmost integrity. Failure to comply is not an option.
Part of being truthful as a leader is being completely honest about your strengths,
weaknesses and biases. It’s pretty easy to boast about your talents, but don’t think for a

44
second you don’t have any weaknesses, because you do. This doesn’t apply only to
leadership, but to everyone.

6. TREAT PEOPLE RIGHT.

as a CEO or company leader, you need to treat your employees well, otherwise the culture
you’re trying to establish won’t be of much use to you, if you have a high turnover rate.
Hiring someone with impressive skills and a bad attitude is a sure-fire way to sabotage your
own culture, but once you’ve hired the right people, treat them right. Once you find someone
with the right cultural fit, do everything in your power to develop him or her, and help that
person scale.

5.8 HOW TO OBSERVE YOUR CURRENT CULTURE?

 Try to become an impartial observer of your culture in action. Look at the

employees and their interaction in your organization with the eye of an outsider.
Pretend you are an anthropologist observing a group that you have never seen before.

 Watch for emotions. Emotions are indications of values. People do not get excited or
upset about things that are unimportant to them. Examine conflicts closely, for the
same reason. Do people seem engaged, interactive, excited, happy, friendly, morose,
or withdrawn? Do they smile and interact with you as you walk by their desks?

 Look at the objects and artifacts that sit on desks and hang on walls. Observe
common areas and furniture arrangements. Are they interactive or are they sterile? In
one memorable company, to several consultants who were walking through the
cubicle Ville, the sterileness of the environment was striking—no family photos,
plants

5.9 KEY ELEMENTS OF ORGANIZATIONAL CULTURE

companies need to build and sustain great organizational cultures. To do this, there are five
essential elements organizations should address: purpose, ownership, community, effective
communication, and good leadership.

 Purpose: professionals want to be a part of solving a problem, so they need to

understand the “why” of what they do. A strong mission statement can help a
company articulate its’ “why”.

 Ownership: Ownership refers to the practice of giving people the opportunity to be

accountable for their results without requiring micromanagement, and giving people
the autonomy on their own time to accomplish goals.

 Community: This is that sense of belonging to a group of people that shares similar
principles, goals, and values. Community is a place where there is camaraderie.

45
  Effective Communication: Effective communication sounds like common sense, but
is not such a common practice. It means ensuring consistency in processes and
investing time to learn the personalities and communication dynamics of team
members.

 Good Leadership: The backbone of the cultural dynamics of any organization, the
leader has to constantly be pushing the mission, standards, community, and processes
of the company. Without effective leadership, the other four elements cannot thrive.

5.10 IMPORTANCE OF ORGANIZATION CULTURE

Organizational culture is hugely important to the success and overall health of your company,
your people, and your customers. So it’s helpful to spend time considering why your
company’s culture is the way it is, and why it’s important that it stays that way (or changes).
1. IT DEFINES YOUR COMPANY’S INTERNAL AND EXTERNAL IDENTITY
Organizational culture will reverberate across all aspects of your business because it
represents the way you do business. It’s simultaneously your identity and your image, which
means it determines how your people and customers perceive you.
2. ORGANIZATIONAL CULTURE IS ABOUT LIVING YOUR COMPANY’S
CORE VALUES
A strong organizational culture keeps your company’s core values front and center in all
aspects of its day-to-day operations and organizational structure. The value of doing so
is incalculable.
3. YOUR CULTURE CAN TRANSFORM EMPLOYEES INTO ADVOCATES (OR
CRITICS)
Your people want more than a steady paycheck and good benefits; they want to feel like what
they do matters. And when your people feel like they matter, they’re more likely to become
culture advocates—that is, people who not only contribute to your organization’s culture, but
also promote it and live it internally and externally.
4. A STRONG ORGANIZATIONAL CULTURE HELPS YOU KEEP YOUR BEST
PEOPLE
Ask any top performer what keeps them at their company and you’re bound to hear this
answer: the people. It’s because a workplace culture focused on people has profound appeal.
It helps improve engagement, deliver a unique employee experience, and makes your people
feel more connected.
5. A WELL-FUNCTIONING CULTURE ASSISTS WITH ONBOARDING
Organizational culture also has the potential to act as an aligning force at your company. This
is particularly the case with new hires who, more often than not, have put some considerable
thought into the type of culture they’re entering into.
The culture at your organization is essentially a guiding force for them, so it’s important that
it starts with onboarding.

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 6. . YOUR CULTURE TRANSFORMS YOUR COMPANY INTO A TEAM
A successful organizational culture brings together the people at your company and keeps
them aligned. When your culture is clear, different perspectives can gather behind it with
common purpose. The culture at your organization sets expectations for how people behave
and work together, and how well they function as a team.
7. CULTURE IMPACTS PERFORMANCE AND EMPLOYEE WELLBEING
organizational culture has a direct impact on performance and, more importantly,
your employees’ wellbeing. A healthy culture addresses both of these areas by finding an
appropriate balance based on company values.

5.11 HOW TO GAIN ORGANIZATION CULTURE?

1. Reading:
 the organization's vision, mission and value statements, as well as documents setting
out the its strategy and objectives
 publications, reports and newsletters. Reflect on what is mentioned, emphasized or
omitted and how the organization presents itself
 the organization's website and intranet, including its presence, (or lack of presence) on
social media platforms.
2. Reviewing the organization's context and environment
 How might the organization's sector (public/ private/ not-for-profit) affect its culture?
 Does the industry have particular characteristics which could affect the way that
people think and behave?
 What does the organization's formal structure look like?
 What does the whole ‘system’ look like - what kinds of processes are in place for
getting things done?

3. Talking to people who work for the organization

 What are their impressions of the organization and which words would they use to
describe it (e.g. professional, experienced, friendly, stable, secure)?
 What kinds of behaviors are expected of employees, and which are actually exhibited?
 Are the messages they get about culture consistent across all levels and units within
the organization?
 Is vision, mission and objectives shared and owned by every employee, or only by
members of dominant groups?
 To what extent is information on financial performance shared with employees?
 What is their view of senior management?
 Are they happy working for the organization, or what exactly might prompt them to
leave.
4. Making physical observations
 Do the furnishings and décor make a particular statement?
 How formal or informal are the offices and working environment?
 Do people dress for work - formally or informally?
 Do people dress differently depending on their position within the organization?

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  How do people dress for special appointments and meetings?
5. Assessing communication styles

 How do employees usually communicate with one another (face-to-face, phone,

email)?
 How do people at different levels in the organization address one another?
 Are new ideas communicated only from the top down, or do they also filter up from
the bottom?
 How much communication takes place through informal as opposed to formal
channels?
 How are organizational decisions communicated to employees?
 Is performance feedback given regularly?
 How accessible or approachable are senior managers and directors?
 Do employees feel free to express controversial views openly?
6. Looking at the nature of decision making and the impact on stakeholders
 What processes are in place for decision making at strategic and operational levels?
 How are decisions actually made? To what extent are employees consulted or
involved in decision making? To what extent are managers empowered to take
decisions in their own areas responsibility?
 How are HR policies such as reward and recognition formulated and put into practice?
 What level of priority and attention is given to customer service and how are customer
queries and complaints handled?
 How is the balance between customer and business benefits handled when designing
products?
 How effectively are statutory regulations being applied?
7. Considering timekeeping
 To what extent is flexible working accepted and supported?
 What time do people come to work and do they arrive punctually?
 Are coffee or tea breaks taken? Do they become extended breaks?
 Do people work their set hours only or do they stay late?
 Are employees under pressure to work long hours?
8. Analyzing groups and networks
 Do people appear to prefer working in groups or individually?
 Is team work actively promoted?
 Do people gather together at lunch?
 Do people socialize at work and/or outside the workplace?
 Do sub-networks with their own cultures exist within departments or within
professional groups?
 Are people encouraged to work outside of their department or silos?
 Are there any cross-functional projects or teams?
 What happens when mistakes are made? Do employees fear blame and recriminations
from managers or other team members if they make mistakes or are these regarded as
opportunities for learning and development?
9. Looking at how meetings are conducted
 How much time do managers spend in meetings?

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  Are meetings handled in a quick and efficient or are they lengthy and bureaucratic?
 Who speaks at meetings? Does everyone participate?
 Are people encouraged to share ideas?
 What do people say if they arrive late for a meeting?
10. Consider organizational boundaries
 What types of positions do women and members of minority groups hold in the
organization?
 Is saving face important to people?
 Is there a sense of stability, or a feeling of insecurity arising from constant, unexpected
changes?
 Is there a shared language of jargon and acronyms?
 What induction processes are in place for new employees?

5.12 APPLE’S ORGANIZATIONAL CULTURE TYPE AND CHARACTERISTICS

Apple Inc. has an organizational culture for creative innovation. The company’s cultural
features focus on maintaining a high level of innovation that involves creativity and a mindset
that challenges conventions and standards. The business depends on cultural support and
coherence, which are determinants of competitiveness and industry leadership, especially in
addressing aggressive and rapid technological innovation and product development. The
following are the main characteristics of Apple’s corporate culture:

 Top-notch excellence
 Creativity
 Innovation
 Secrecy
 Moderate combativeness

Top-notch Excellence. Apple’s organizational culture comes with a policy of hiring only the
best of the best in the labor market. Steve Jobs was known to fire employees who did not meet
his expectations. This tradition continues under Tim Cook. Such a tradition maintains and
reinforces a corporate culture that promotes, appreciates, and expects top-notch excellence
among employees. This cultural trait is institutionalized in Apple’s organization. For example,
the company has programs that recognize and reward excellence among workers. Excellence
is emphasized as a critical success factor in the business, especially in product design and
development, which is a major growth strategy (see Apple Inc.’s Generic Strategy and
Intensive Growth Strategies).

Creativity. This cultural characteristic pertains to new ideas that help improve the business
and its products. Apple’s management favors creativity among employees’ knowledge, skills,
and abilities. This characteristic of the corporate culture enables the company to ensure
sufficient creativity, especially among employees involved in product design and
development processes. Such creativity is observable in the design and features of iPhones,
Macs, and iPads, among other products included in Apple’s marketing mix or 4Ps. In this
regard, the organizational culture helps maintain the company’s capacity to satisfy customers’
expectations and preferences.

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Innovation. Apple’s organizational culture supports rapid innovation. The company is
frequently appraised as one of the most innovative companies in the world. Based on this
cultural trait, the firm trains and motivates it employees to innovate in terms of individual
work performance and contributions to product development processes. The corporate culture
facilitates rapid innovation, which is at the heart of Apple Inc.’s business. Rapid innovation
ensures that the company continues to introduce new products that are profitable and
attractive to target customers.

Secrecy. Steve Jobs developed Apple to have an organizational culture of secrecy. This
cultural characteristic continues to define the company’s human resource development.
Secrecy is part of the company’s strategy to minimize theft of proprietary information or
intellectual property. It is also a strategic management approach that enables Apple Inc. to
maximize its leading edge against competitors. Through the corporate culture, employees are
encouraged and expected to keep business information within the company. This cultural trait
is reinforced through the company’s policies, rules, and employment contracts. In this
context, Apple’s organizational culture helps protect the business from corporate espionage
and the negative effects of employee poaching.

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Chapter Six

6 DECISION MAKING

Organizations make literally hundreds of decisions each day as they fulfil their operational
requirements. Some of these decisions are small and minor and can be completed quickly.
Others are more complicated and far-reaching and require more detailed analysis, such as
whether to expand into foreign markets. Decision making, which takes place at all levels of
the organization, is therefore a central part of the manager’s role.

6.1 THE DEFINITION OF DECISION MAKING

 It can be defined as ‘the selection of a course of action from among alternatives’

 Decision making is a fundamental element of the entire management process.
 The decision process is described as a series of steps, starting with information output
and analysis and culminating in resolution, namely a selection from several available
alternatives.

6.2 CHARACTERISTICS OF DECISIONS

Making decisions in an organizational context requires good judgement and diagnostic skills.
Most managers advance within an organization as a result of their ability to make good
decisions. The characteristics of decisions faced by most managers are varied in nature,
depending on the type of decision in question. Given that managers make a variety of
decisions during their daily lives we would expect that decisions would have different
characteristics.

 Programmed choices tend to be well structured, routine and repetitive, happening on

a normal premise. They are more often than not made at lower levels within the
organization, have short-term results and are based on readily accessible data.

 Non-programmed choices tend to happen at higher levels within the organization,

have long-term results and require a degree of judgment and inventiveness.
Illustrations of non-programmed decisions include the choice to undertake a
problematic technology or to extend into a already unknown market.

6.3 DECISION-MAKING CONDITIONS

In general, there are three different types of condition under which managers take decisions.
 Certainty, under that condition the available alternatives and their costs or benefits
are certain. In other words, managers know with certainty that particular alternatives
will lead to definite outcomes and there is no element of doubt.

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  Risk. Under that condition, all available choices and their potential costs and benefits
are known, but the outcomes are sometimes in doubt. So, while the alternatives are
known, the outcomes are unknown

 uncertainty, under which the available alternatives, the probability of their occurrence
and the outcomes are all unknown. Decisions made under uncertainty are the most
difficult to take because of this lack of concrete knowledge

6.4 THE DECISION-MAKING PROCESS

Most models of decision making include six essential steps that it is recommended managers
should follow when making decisions.

1. Identify and diagnose the problem.

2. Identify alternative solutions.
3. Evaluate alternatives.
4. Choose an alternative.
5. Implement the decision.
6. Evaluate the decision.

Step 1: Problem identification and diagnosis

The first stage of the decision-making process is recognizing that a problem exists and that
action has to be taken. A problem is a discrepancy between the current state of affairs and a
desired state of affairs. Unless the problem is identified in precise terms, solutions are very
difficult to find. In seeking to identify a problem, managers can use a variety of sources of
data, including comparing organizational performance against historical performance, against
the current performance of other organizations/departments or against future expected
performance.

Step 2: Identification of alternatives

the following step for an organization is to identify a range
of options to illuminate the issue. Managers oughtto attempt to recognize as numerous options
as possible in arrange to broaden alternatives for the organization.
In producing alternatives, the organization may see toward ready-made arrangements that

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have been attempted some time recently, or custom-made solutions that have to
be planned particularly for the issue at hand. In today’s commerce environment more and
more associations are applying custom- made solutions to improve competitive advantage

Step 3: Evaluation of alternatives

a manager needs to evaluate each alternative in order to choose the best one. Consideration
should be given to the advantages and disadvantages as well as the costs and benefits
associated with each option. Most alternatives will have positive and negative aspects and the
manager will have to try to balance anticipated outcomes.

Step 4: Choice of alternative

If for some reason none of the options considered is suitable, the manager should revert back
to Step 2 of the process and begin again. When there are suitable alternatives and Steps 2 and
3 have been conducted skillfully, selecting alternatives may be relatively easy. In practice,
however, alternatives may not differ significantly in terms of their outcomes and therefore
decisions will be a matter of judgement. In coming to a decision the manager will be
confronted by many conflicting requirements that will have to be taken into account.

Step 5: Implementation

This stage of the process is critical to the success of the decision and is the key to effective
decision making. The best alternative is worth nothing if it is not implemented properly. In
order to successfully implement a decision, managers must ensure that those who are
implementing it fully understand why the choice was made, why it is being implemented, and
are fully committed to its success.

To implement the decision to acquire another smaller business in a different country requires
good conceptual skills and could prove challenging. In addition to legal and competitive
issues the company will have to deal with assimilating aspects of the new business into their
current operations.

Step 6: Evaluation

This step allows managers to see the results of the decision and to identify any adjustments
that need to be executed. In almost all cases some form of adjustment will be made to ensure a
more favourable outcome. Evaluation and feedback are not one-off activities, however, and
they should form part of an ongoing process. As conditions change, decisions should be re-
evaluated to ensure that they are still the most appropriate for the organization. This also helps
managers to learn about making sound decisions taking past experience into account.

6.5 APPROACHES TO DECISION MAKING

The four most popular approaches to the study of decision making are: the rational model;
bounded rationality; the political model; and escalation to commitment

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  The concept of rationality

Rationality in relation to decision making refers to a process that is perfectly logical and
objective, whereby managers gather information objectively, evaluate available evidence,
consider all alternatives and eventually make choices that will lead to the best outcomes for
the organization.

The rational approach to decision making has its foundations in traditional economic theory,
which argues that managers attempt to maximize benefits and have the capacity to make
complex decisions quickly. Such a rational approach to decision making assumes that four
conditions are fulfilled:

1. There is perfect knowledge of all the available alternatives.

2. There is perfect knowledge of all of the consequences of the available alternatives.
3. Managers have the capacity to objectively evaluate the consequences of the available
alternatives.
4. Managers have a well-structured and definite set of procedures to allow them to make
optimum decisions

 Bounded rationality

Given the fact that managers cannot always make decisions under certainty conditions, and in
a rational manner, they have to apply a less than perfect form of rationality. Herbert Simon
called this ‘bounded rationality’, and argued that decisions taken by managers are bounded by
limited mental capacity and emotions, and by environmental factors over which they have no
control. Due to these limitations managers rarely maximize or take ideal decisions with the
best possible outcomes.

Another integral part of the bounded rationality approach is the notion that managers seek to
satisfice, that is, settle for an alternative which is satisfactory, rather than continuing to search
for the optimal solution. Satisficing may occur because the manager tires of the decision-
making process and seeks to resolve the problem quickly with the first minimally acceptable
solution rather than searching further for a better one Managers may also be unable to handle
large amounts of complex information. Bounded rationality also recognizes that managers
may not have full and complete information and may experience problems processing
information, which clearly affects a manager’s ability to make optimal decisions. Decisions
made under bounded rationality may not always be the best; however, on occasion good
decisions have been made on the basis of judgement and gut feeling.

 The political model

While the previous approaches have concentrated on the role played by rationality in the
decision making process, the political model concentrates on the impact of organizational
politics on decision making. Power and politics play an important role in the decision-making
process. Power is the ability to influence others. In the context of an organization power can
be viewed as the ability to exert influence over individuals, work groups or departments.
There are five main types of power found in the organizational setting:

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1. Legitimate power originates from the manager’s position within the organization’s
hierarchy. The power is inherent in the hierarchical position the manager occupies.
2. Reward power originates from the manager’s ability to withhold rewards from others.
3. Expert power derives from the expert knowledge and information that an
individual/manager has amassed.
4. Referent power originates from the charisma or identification that a manager has
developed.
5. Coercive power is associated with emotional or physical threats to ensure compliance.

 Escalation of commitment

This approach is particularly concerned with decision makers who, even in the face of failure,
continue to invest resources in a failing decision. For example, an organization may decide to
enter a particular market by introducing a certain product. After a little while it may become
obvious that the product is not suited to that market. The organization, however, continues to
increase spending on advertising and marketing rather than exiting from the market.

6.6 DECISION ANALYSIS

Decision analysis (DA) is a systematic, quantitative, and visual approach to addressing and
evaluating the important choices that businesses sometimes face. Ronald A. Howard, a
professor of Management Science and Engineering at Stanford University, is credited with
originating the term in 1964. The idea is used by large and small corporations alike when
making various types of decisions, including management, operations, marketing, capital
investments, or strategic choices.

TYPES OF ANALYSIS
 Decision tree
It is a decision support tool that uses a tree-like model of decisions and their possible
consequences, including chance event outcomes, resource costs, and utility. It is one way to
display an algorithm that only contains conditional control statements.
Decision trees are commonly used in operations research, specifically in decision analysis, to
help identify a strategy most likely to reach a goal, but are also a popular tool in machine
learning.
 Influence Diagram
An influence diagram is an intuitive visual display of a decision problem. It depicts the key
elements, including decisions, uncertainties, and objectives as nodes of various shapes and
colors. It shows influences among them as arrows.
This simple influence diagram depicts a variable describing the situation:
 a decision – What do we do?
 a chance variable – What’s the outcome?
 a final valuation – How do we like it?

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  Scenario planning
It is a strategic planning method that some organizations use to make flexible long-term plans.
It is in large part an adaptation and generalization of classic methods used by military
intelligence
 Venn diagrams/matrices
It contains a grid in which elements are in rows, and the sections of the Venn diagram are
column headers. Online users click or touch radio buttons at the intersections of rows and
columns to indicate the placement of each attribute or description in the Venn diagram. The
Venn diagram shown above the matrix is a visual aid but is not required to answer the
question.
6.7 PSYCHOLOGY OF DECISION-MAKING:

Task forces, teams and boards are all examples of where decision making occurs in a group
setting. The basic idea behind group decision making is the notion that two heads are better
than one Generally the diversity of groups facilitates better-quality decisions. However, a
group can be inferior to the best individual in the group. In some cases, groups will provide
the best-quality decisions and in others the individual will do better. In coming to a
conclusion about the efficiency of groups it is necessary to consider the advantages and
disadvantages of group decision making.

. Advantages
 Group decision making allows a greater number of perspectives and approaches to be
considered, thereby increasing the number of alternatives that can be drawn up.
 Groups generally facilitate a larger pool of information to be processed. Individuals
from different areas can bring varied information to the decision-making setting.
 By increasing the number of people involved in the process it is more likely that a
greater number of people will understand why the decision was made, and this
facilitates implementation.
 Group decision making allows people to become involved and produces a sense of
ownership of the final decision, which means that people will be more committed to
the decision.
 Using a group to arrive at a decision means that less co-ordination and communication
is required when implementing the decision.

Disadvantages

 Group decisions take longer to arrive at and this can be problematic when speed of
action is key.
 Groups can be indecisive and opt for satisficing rather than maximizing. Indecision
can arise from lack of agreement among members. Satisficing occurs when individuals
grow tired of the process and want it brought to a conclusion, leading to satisficing
rather than maximization.
 Individuals who have either a strong personality or a strong position can dominate
groups. The result is that a particular individual can exert more influence than others.
The main problem with such a situation is that the dominating person’s view of the
decision need not necessarily be right; and if his/her view is the right one, convening a
group for discussion is a waste of time.

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  Groups inevitably have to compromise to reach a decision and this can lead to
mediocre decisions. Mediocrity results when an individual’s thinking is brought into
line with the average quality of a group’s thinking. This is called the levelling effect.

6.8 RACI ANALYSIS

This analysis is very useful when considering exactly who should be involved in decisions
and to what extent. It sets out all stakeholders in the decision and then looks at whether they
should be.

A responsibility assignment matrix(RAM), also known as RACI matrix or linear

responsibility chart(LRC), describes the participation by various roles in
completing tasks or deliverables for a project or business process. RACI is
an acronym derived from the four key responsibilities most typically
used: responsible, accountable, consulted, and informed. It is used for clarifying and defining
roles and responsibilities in cross-functional or departmental projects and processes. There are
a number of alternatives to the RACI model.

R = Responsible (also recommender)

Those who do the work to complete the task. There is at least one role with a participation
type of responsible, although others can be delegated to assist in the work required (see
also RASCI below for separately identifying those who participate in a supporting role).

A = Accountable (also approver or final approving authority)

The one ultimately answerable for the correct and thorough completion of the deliverable or
task, the one who ensures the prerequisites of the task are met and who delegates the work to
those responsible. In other words, an accountable must sign off (approve) work
that responsible provides. There must be only one accountable specified for each task or
deliverable.

C = Consulted (sometimes consultant or counsel)

Those whose opinions are sought, typically subject-matter experts; and with whom there is two-
way communication.

I = Informed (also informed)

Those who are kept up-to-date on progress, often only on completion of the task or
deliverable; and with whom there is just one-way communication.

Example of RACI matrix

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6.9 THE HERRMANN BRAIN THEORY

The Herrmann Brain Dominance Instrument (HBDI) is a system to measure and describe
thinking preferences in people, developed by William "Ned" Herrmann while leading
management education at General Electric's Crotonville facility. It is a type of cognitive
style measurement and model, and is often compared to psychological assessments such as
the Myers-Briggs Type Indicator, Learning Orientation Questionnaire, DISC assessment, and
others.

A - Analytic/Logical (upper left)

 Linear thinker
 Quantitative
 Interested in what is happening here and now
 Goals and outcomes focused
Style

Argues on the basis of facts, critically analyses Is able to generalize from specifics Interested
in goals and outcomes Realistic and present-oriented Rational, unemotional

Strengths Weaknesses
 Facts based  Very focused, may miss
 Facts-based situational synergies
evaluations  Unable to admit when they are
 Conducting research wrong
 Ideas and concepts  Prefer individual over group
work
 Have trouble delegating
 Place an importance of facts over
people

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B-Experimental (upper right)

 Dealing with the Future

 Seeing the Big Picture
 Inventing Solutions
 Developing new things
 Providing Vision
 Taking Risks
 Integrating Ideas
 Bringing about Change

Management style
 Adventurous
 Visionary
 Entrepreneurial
 Idealistic
 Holistic

Strengths
 “Big picture” thinkers
 Innovative/creative
 Tolerant of ambiguity
 Making connections
 Intuitive problem solving
Weaknesses
 Overlook details
 Dislike routine or
 repetitive tasks
 Tend to procrastinate
 Have problems
 prioritizing

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C - Relational (lower right)

 T – Team oriented activities

 E – Emotional stimulation
 A – Action oriented activities
 M – Making connections

Strengths Weaknesses
 People focused  Talks too much
 Action oriented  Too spontaneous
 Visual  Acts without evaluating all
 Team/Group oriented available facts
 Brainstorming  Easily distracted
 Free-flowing activities  Impatience with routine and
 Driven by personal values structured activities

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 D- Practical (lower left) left)
 F – focuses on one thing at a time
 A – Applies new skills
 C – Controlled dialogue
 T – Tests and evaluates concepts
 S – Structures and sequences content

Strengths Weaknesses
 Control-oriented  Resistant to change
 Routine  May not be open to
 Detail-focused innovative/creative ideas
 Linear processing  Uncomfortable in dynamic
environments
 May not see the ‘big picture’

6.10 CHARACTERISTICS OF DECISIONMAKERS: ANALYSIS AND PROBLEM-

SOLVING

Root Cause Analysis (RCA) is a popular and often-used technique that helps decision makers
answer the question of why the problem occurred in the first place. It seeks to identify the
origin of a problem using a specific set of steps, with associated tools, to find the primary
cause of the problem, so that you can:
 Determine what happened.
 Determine why it happened.
 Figure out what to do to reduce the likelihood that it will happen again.

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Decision makers will usually find three basic types of causes:

 Physical causes – Tangible, material items failed in some way (for example, a car's
brakes stopped working).
 Human causes – People did something wrong, or did not do something that was
needed. Human causes typically lead to physical causes (for example, no one filled the
brake fluid, which led to the brakes failing).
 Organizational causes – A system, process, or policy that people use to make
decisions or do their work is faulty (for example, no one person was responsible for
vehicle maintenance, and everyone assumed someone else had filled the brake fluid).

6.11 THE ROOT CAUSE ANALYSIS PROCESS

RCA has five identifiable steps.

Step One: Define the Problem

 What do Decision maker see happening?
 What are the specific symptoms?

Step Two: Collect Data

 What proof do you have that the problem exists?
 How long has the problem existed?
 What is the impact of the problem?

Step Three: Identify Possible Causal Factors

 What sequence of events leads to the problem?
 What conditions allow the problem to occur?
 What other problems surround the occurrence of the central problem?

Step Four: Identify the Root Cause(s)

 Why does the causal factor exist?
 What is the real reason the problem occurred?

Step Five: Recommend and Implement Solutions

 What can Decision maker do to prevent the problem from happening again?
 How will the solution be implemented?
 Who will be responsible for it?
 What are the risks of implementing the solution?

6.12 COMMUNICATING THE DECISION

Many managers overlook one of the most important aspects of the decision-making
process: communicating the decision to everyone involved in and affected by it. After
going through the (sometimes hard) process of arriving at the decision, they fail to

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 properly plan how they will share the decision, poorly communicate the information,
waste time, and cause unnecessary confusion.

Or, even worse, they lose some of their nerve when it comes to sharing the decision with
others and only communicate partial information to "avoid" anything that might either
cause some to be unhappy or give rise to a conflict. (Keep in mind when you try to avoid
conflict it sometimes leads to conflict.)

Follow these steps to turn your decisions into a productive reality within your organization:

1. Take the time to create your plan as to how you will communicate the decision. Start
with the desired outcome and work backwards from there. In this way you are more
likely to consider all of the pertinent facts. Never "wing it" when it comes to
communicating a decision you have made. Winging it is a guaranteed way to get "lost
in the weeds" and send the wrong message, making the situation worse.
2. Part of your plan must include a complete list of all those to whom you must
communicate your decision. This list should include those who will be responsible
for implementing it, as well as those who are affected by it. This step may help you
avoid having multiple meetings with "different" audiences. The more meetings you
have in front of different audiences, the more likely different "versions" will be heard.
This will create confusion and false starts.
3. Prior to any broad announcement, you may want to go one-on-one with those who are
affected or impacted by the decision or who had supported a different solution. This
private discussion would be a good way to help explain your "why" of the decision,
allow them to "vent", and solicit their buy-in. In this way, once a broad announcement
is made, there is a uniform support for it.
4. When you finally make the broad announcement you need to explain the
thinking behind the final decision, the desired outcome you wanted to achieve, the
facts you considered, the alternatives that you considered, and the criteria you used
to arrive at your decision. By explaining how you arrived at the decision helps you, as
the leader, build trust with your team and helps them to have more confidence in you
as a decision maker.
5. If you have bad news to tell, tell it. Do not try to spin the truth or facts to make
delivering the message easier for you. Your team wants the truth. Give it to them, but
be professional, considerate, and comprehensive.
6. Stay focused on the issue at hand. Don't let other issues or challenges distract you or
affect your perspective. Never let a difficult "personality" get in the way of
communicating the right message.
7. When you deliver the decision, you also need to set new expectations about any
changes in policies or procedures, or individual's duties or responsibilities. These
changes must be explained in the clearest and most complete way possible. You must
communicate these new expectations as well and make sure all impacted understand
that they will be held accountable to comply with them. Once a decision is made, it's
time to adapt and move forward. You can't allow team members to keep going back to
revisit these issues hoping to go back to "the way it was". Everyone needs to focus on
the work to be done now!

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6.13 STEVE JOBS IS A DECISION MAKER

In short, Jobs relied on his gut as the primary guide to his decisions—and it was a golden one
overall. He sometimes let others win arguments, but it was because he himself decided that their
ideas were better.

He doesn’t seem to have ever gotten to the point of thinking of decision making as a team sport,
where various people’s perspectives should be integrated into a course of action.

He’s a corporate dictator who makes every critical decision—and oodles of seemingly
noncritical calls too, from the design of the shuttle buses that ferry employees to and from San
Francisco to what food will be served in the cafeteria.

Now that Jobs isn’t with us anymore, Apple will still need to make “insanely great” decisions.

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Chapter Seven

7 INTRODUCTION

7.1 THE ICEBERG MODEL OF COMPETENCIES

The iceberg model above shows that competency components; knowledge and attitude, the
visible parts of the iceberg are the easiest elements to change. Those below the iceberg that
drives the person’s attitude are harder to change. Performance is driven less by knowledge
and skills but more by attitude. The former are tools, the latter is the one that fuels
performance. A lot of training designs focus on the “what” and “how”; knowledge and skills.
Some subject matter experts spend less time exploring the necessary attitude that surrounds
good performance.

Our behavior arises as a result of the interaction of two things: Some characteristic we possess
as a person, and some characteristic of the situation we face.
If we wish to understand why we do what we do, and to exercise more choices about our
behavior, then we not only need to have a realistic understanding of the world around us, but
we must also develop a high degree of self knowledge. There are many personal
characteristics that influence what we do: skills, knowledge, social role, self image, traits and
motives. These various characteristics exist at different levels of consciousness. You can think
of these characteristics as being levels of an iceberg, as illustrated below. The most conscious
ones are those above water on the visible tip of the iceberg, while the characteristics that are
less conscious or unconscious are below water, on the submerged part of the iceberg. The
characteristics of which you are most conscious are your knowledge and skills, depicted as the
tip of the iceberg. Skills represent what you can do and knowledge is what you know,
including your experience of things and situations.

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7.2 FOUR DIMENSIONS OF NORMAL BEHAVIOR [DISC]
DISC theory, researched by Dr. William Moulton Marston at Harvard University, is a method
of identifying predictable actions and personality traits within human behavior. Marston
narrowed these predictable personality traits into four DISC personality types.
The DiSC Model is a simple yet powerful model that describes four basic behavioral styles:
D, I, S, and C, and serves as the foundation for each distinct Everything DiSC application. D:
Dominance I: Influence S: Steadiness C: Conscientiousness
Everyone is a blend of all four DISC styles—usually one, two, or even three styles stand out.
Each person has a unique behavioral profile with different styles and priorities—no one style
better or worse than the next. Actually, these differences in style can be extremely valuable.
As utilizing strengths in people and enhance their weaknesses lead to value, better workplace
communication and healthier organizations become possible.
More in depth in each type of DISC
DOMINANT
General Direct. Decisive. High Ego Strength. Problem Solver. Risk Taker.
Characteristics Self Starter.

Value to Team Bottom-line organizer. Places value on time. Challenges the status
quo. Innovative.

Possible Oversteps authority. Argumentative attitude. Dislikes routine.

Weaknesses: Attempts too much at once.

Greatest Fear: Being taken advantage of.

Motivated By New challenges. Power and authority to take risks and make
decisions. Freedom from routine and mundane tasks. Changing
environments in which to work and play.

INFLUENCE
General Enthusiastic. Trusting; Optimistic. Persuasive. Talkative.
Characteristics Impulsive. Emotional.

Value to Team Creative problem solver. Great encourager. Motivates others to

achieve. Positive sense of humor. Negotiates conflicts; peace
maker.

Possible More concerned with popularity than tangible results. Inattentive

Weaknesses: to detail. Overuses gestures and facial expressions. Tends to listen
only when it's convenient.

Greatest Fear: Rejection.

Motivated By Flattery, praise, popularity, and acceptance. A friendly

environment. Freedom from many rules and regulations. Other
people available to handle details.

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STEADINESS

General Good listener. Team player. Possessive. Steady. Predictable.

Characteristics Understanding. Friendly.

Value to Team Reliable and dependable. Loyal team worker. Compliant towards
authority. Good listener, patient and empathetic. Good at reconciling
conflicts.

Possible Resists change. Takes a long time to adjust to change. Holds a grudge.
Weaknesses: Sensitive to criticism. Difficulty establishing priorities.

Greatest Fear: Loss of security.

Motivated By Recognition for loyalty and dependability. Safety and security. No

sudden changes in procedure or lifestyle. Activities that can be started
and finished.

COMPLIANT

General Accurate; analytical. Conscientious; careful. Fact-finder; precise. High

Characteristics standards; systematic.

Value to Team Perspective: "the anchor of reality." Conscientious and even-tempered.

Thorough to all activities. Defines situation; gathers, criticizes and
tests information.

Possible Needs clear-cut boundaries for actions/relationships. Bound by

Weaknesses: procedures and methods. Gets bogged down in details. Prefers not to
verbalize feelings. Will give in rather that argue.

Greatest Fear: Criticism.

Motivated By Standards of high quality. Limited social interaction. Detailed tasks.

Logical organization of information.

7.3 ABOUT LEADERSHIP

Leaders help themselves and others to do the right things. They set direction, build an
inspiring vision, and create something new. Leadership is about mapping out where you need
to go to "win" as a team or an organization; and it is dynamic, exciting, and inspiring.
A leader is someone who can see how things can be improved and who rallies people to move
toward that better vision. Leaders can work toward making their vision a reality while putting
people first. Just being able to motivate people isn’t enough — leaders need to be empathetic
and connect with people to be successful. Leaders don’t have to come from the same

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background or follow the same path. Future leaders will actually be more diverse, which
brings a variety of perspectives. Of course, other people could disagree with my definition.
The most important thing is that organizations are united internally with their definition of
leadership.
Types of Leadership power
Everyone leads differently, but all leadership involves authority. Most leaders exhibit the
same types of leadership power.
Just as every employee brings their own skills and talents to a company, every executive
brings their own leadership style to the table. No matter how they run team, each leader
usually exhibits at least one of these types of leadership power.

1. Legitimate power
Legitimate power is traditional power – it is the type of power a manager, executive, or
another leading official in a company has due to the status of their position.

2. Information power
One gains information power when they know something other people want to know. This
information could be anything from gossip to intricate knowledge about a person or company.

3. Expert power
People who have more knowledge or experience than other members of their team exhibit
expert power. For example, an executive with 20 years of experience in their field has expert
power over a recent college graduate who is just starting their career.

4. Reward power
A leader who has the ability to reward an employee or team member (with money, praise,
etc.) has reward power.

5. Coercive power
Coercive power is the opposite of reward power; a leader who can punish an employee or
team member has coercive power. Because the threat of punishment can persuade an
employee to act a certain way, this type of leadership power is called “coercive power.”

6. Referent power
Referent power is all about “who you know.” A leader with lots of referent power may have
many connections or a large social network they can use to their advantage. Someone with
referent power may also be close to an executive with legitimate power.

7. Charismatic power
Similarly, charismatic leaders have the ability to influence others. While they may or may not
have an established network of contacts, they usually have a natural ability to persuade or
inspire others.

8. Moral power
A leader who has moral power over his or her employees and exhibits ethical leadership has
been placed on a pedestal, so to speak, due to their beliefs and actions. A leader’s good
qualities can lead to them having moral power over an employee, because the employee may
be inspired to replicate the leader’s actions.

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7.4 DIFFERENCE BETWEEN LEADERS AND MANAGERS
1. Leaders create a vision, managers create goals.
Leaders paint a picture of what they see as possible and inspire and engage their people in
turning that vision into reality. They think beyond what individuals do.
Managers focus on setting, measuring and achieving goals. They control situations to reach or
exceed their objectives.

2. Leaders are change agents, managers maintain the status quo.

Leaders embrace change and know that even if things are working, there could be a better
way forward. Managers stick with what works, refining systems, structures and processes to
make them better.

3. Leaders are unique, managers copy.

Leaders are willing to be themselves. They are self-aware and work actively to build their
unique and differentiated personal brand. Managers mimic the competencies and behaviors
they learn from others and adopt their leadership style rather than defining it.

4. Leaders take risks, managers control risk .

Leaders are willing to try new things even if they may fail miserably. They know that failure
is often a step on the path to success. Managers work to minimize risk. They seek to avoid or
control problems rather than embracing them.

5. Leaders are in it for the long haul, managers think short-term.

Leaders have intentionality. They do what they say they are going to do and stay motivated
toward a big, often very distant goal. Managers work on shorter-term goals, seeking more
regular acknowledgment or accolades.

6. Leaders grow personally, managers rely on existing, proven skills.

Leaders know if they aren’t learning something new every day, they aren’t standing still,
they’re falling behind. They remain curious and seek to remain relevant in an ever-changing
world of work. Managers often double down on what made them successful, perfecting
existing skills and adopting proven behaviors.

7. Leaders build relationships, managers build systems and processes.

Leaders focus on people – all the stakeholders they need to influence in order to realize their
vision. Managers focus on the structures necessary to set and achieve goals. They focus on the
analytical and ensure systems are in place to attain desired outcomes.

8. Leaders coach, managers direct.

Leaders know that people who work for them have the answers or are able to find them. They
see their people as competent and are optimistic about their potential.
Managers assign tasks and provide guidance on how to accomplish them.

9. Leaders create fans, managers have employees.

Leaders have people who go beyond following them; their followers become their raving fans
and fervent promoters – helping them build their brand and achieve their goals.
Managers have staff who follow directions and seek to please the boss.

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7.5 LEADERSHIP STYLES
Leadership style is the manner and approach of providing direction, implementing
plans, and The theory identifies four main leadership approaches:
Hersey and Blanchard’s Situational Leadership Theory

The term “situational leadership” is most commonly derived from and connected with
Paul Hersey and Ken Blanchard’s Situational Leadership Theory. This approach to
leadership suggests the need to match two key elements appropriately: the leader’s
leadership style and the followers’ maturity or preparedness levels.

Telling: Directive and authoritative approach. The leader makes decisions and tells
employees what to do.

Selling: The leader is still the decision maker, but he communicates and works to
persuade the employees rather than simply directing them.

Participating: The leader works with the team members to make decisions together.
He supports and encourages them and is more democratic.

Delegating: The leader assigns decision-making responsibility to team members but

oversees their work.

7.6 CHARACTERS OF LEADERSHIP

 Integrity: integrity is essential for the individual and the organization. It’s especially
important for top-level executives who are charting the organization’s course and
making countless other significant decisions.
 Ability to delegate: Delegating is one of the core responsibilities of a leader
 Communication: Effective leadership and effective communication are intertwined.
 Self-awareness: While this is a more inwardly focused skill, self-awareness is
paramount for leadership. The better you understand yourself, the more effective you
can be.
 Gratitude: Gratitude can lead to higher self-esteem, reduced depression and anxiety,
and even better sleep.
 Learning agility: Learning agility is the ability to know what to do when you don’t
know what to do. If you’re a “quick study” or are able to excel in unfamiliar
circumstances, you might already be learning agile.
 Influence: Influence is quite different from manipulation, and it needs to be done
authentically and transparently. It requires emotional intelligence and trust-building.
 Empathy: Empathy is correlated with job performance and a critical part of emotional
intelligence and leadership effectiveness.
 Courage: It can be hard to speak up at work, whether you want to voice a new idea,
provide feedback to a direct report, or flag a concern for someone above you. That’s
part of the reason courage is a key skill for good leaders.
 Respect: Treating people with respect on a daily basis is one of the most important
things a leader can do.

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Chapter Eight

8 THE INTELLIGENT CAREER THEORY

8.1 PILLARS

Why you work involves the kind of things career counselors test for, broadly concerned with your motivation to
work.
How you work involves your skills and knowledge, and the learning you are pursuing to develop these further.
With whom you work reflects your interaction with bosses, peers, mentors, protégés and communities both
inside and outside your present employer

Knowing-why to knowing-how:

A link in this direction occurs when a person comes to understand how his or her values and
interests (knowing-why) can lead to the application of specific skills and job- related expertise
(knowing-how). Much like traditional vocational guidance theory, intelligent career theory
suggests a range of exploratory knowing-why topics, including values, interests, identity and the
balance of work and family, that may influence a person’s choice of education, occupation or
work experience.
Knowing-how to knowing-whom:

A link in this direction reflects how the application of individual skills (knowing-how) may
result in new contacts and relationships (knowing-whom). In the work environment, successfully
drawing on specific job-related knowledge and expertise may also promote reputation among
colleagues or customers. In situations involving teamwork, an individual contribution may add to
the effectiveness of the team, as well as to individual or shared reputations.

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Knowing-whom to knowing-why:

The relation- ships that comprise an individual’s network (knowing-whom) may be influential in
affirming or challenging a person’s identity and self-image (knowing-why). Links in this
direction may reflect the impact of specific connections such as mentors and friends. Other links
in the same direction can involve colleagues either reinforcing or dampening a person’s
motivation to engage in shared activities.
Knowing-why to knowing-whom:
The directions between the three ways of knowing may also move in an anti-clockwise
direction. Someone motivated to interact with certain colleagues (knowing-why) would be likely
to seek new career opportunities to work with them (knowing-whom). This can include seeking
out new opportunities to learn from other people, for example by volunteering to work in a
particular team, or under a particular mentor. Knowing-whom to knowing-how: An example of a
link in this direction is when collaborations with colleagues (knowing-whom) lead to
opportunities to apply job related skills and expertise (knowing-how). Reputation within a social
group may bring referrals for work in other areas in which the individual is unknown. Another
way to benefit from a group is to seek feedback that may contribute to enhanced competence.
Knowing-how to knowing-why:

A link in this direction occurs when the results of formal or informal performance feedback
(knowing-how) have an impact on an individual’s motivation to work (knowing-why). Simply,
the perception of one’s performance (perhaps stemming from a lack of feedback), or the direct
experience of a work assignment, can have an impact on self-esteem and in turn impact on
subsequent attitudes towards further work assignments

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 Chapter Nine

9 LEADERSHIP IN A GLOBAL CONTEXT

The ways in which people from different national and cultural backgrounds differ are so
numerous, and frequently so subtle — making interactions of any kind so fraught with
possible misunderstanding, offensiveness, and social gaffes — that the growth of global
business over the last 50 years might justify ably be seen as an extraordinary human
anthropological achievement There are huge differences in national character, culture, and
verbal and body language..
Understandably, leadership styles differ radically as well. Leadership style lies on a wide
spectrum that ranges between consensual, technocratic, autocratic, political, centralized,
democratic, and patriarchal. Leadership style will be reflected in organizational form.
Going outside your home market means having to deal with a multiplicity of new issues
related to different cultural, legal, regulatory, and economic systems.
Global organizations are far too vulnerable to ‘not - invented - here’ syndrome. While finding
people who have a sense of cultural relativity is important, close attention also needs to be
given to the leadership pipeline that operates in global organizations.
9.1 WHY THE GLOBAL LEADERSHIP IS IMPORTANT?
Companies today exist in a world of complex social, economic and political dependencies.
This creates a lot of challenges

Globalization has changed our work-environment. Corporations today lack the skills to
adequately meet the demands of a more and more connected world.

In addition to ethical and cultural challenges, they have to deal with tensions and paradoxes,
as well as continuous and at times disruptive changes in information technology.

9.2 THE 4 THRESHOLD TRAITS OF GLOBAL LEADERS:

Integrity - the quality of being honest and having strong moral principles.
Humility - the quality of having a modest or low view of one’s importance.
Curiosity - the quality related to inquisitive thinking such as exploration, investigation, and
learning.
Resilience - the capacity to recover quickly from difficulties.
9.3 CAN ANYONE BECOME A GLOBAL LEADER?
According to Dr. Schmitz, anyone can become a global leader — as long as they’re willing to
work on self-improvement and -development, and possess a forward-to attitude.

This developmental readiness is key, and some people are better equipped with it than others.
They are able to “move the needle further”

One thing is certain: whether you’re born as or make yourself into one, being a global leader
is a lifelong process of learning, practice and transformation.

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9.4 LEADERSHIP IN GLOBAL CORPORATION:

A global company is generally referred to as a multinational corporation (MNC). An MNC is

a company that operates in two or more countries, leveraging the global environment to
approach varying markets in attaining revenue generation.

These international operations are pursued as a result of the strategic potential provided by
technological developments, making new markets a more convenient and profitable pursuit
both in sourcing production and pursuing growth.

International operations are therefore a direct result of either achieving higher levels of
revenue or a lower cost structure within the operations or value-chain.

MNC operations often attain economies of scale, through mass producing in external markets
at substantially cheaper costs, or economies of scope, through horizontal expansion into new
geographic markets.

If successful, these both result in positive effects on the income statement (either larger
revenues or stronger margins), but contain the innate risk in developing these new
opportunities.

9.5 CHALLENGES

However, despite the general opportunities a global market provides, there are significant
challenges MNCs face in penetrating these markets. These challenges can loosely be defined
through four factors:

 Public Relations: Public image and branding are critical components of most
businesses. Building this public relations potential in a new geographic region is an
enormous challenge, both in effectively localizing the message and in the capital
expenditures necessary to create momentum.
 Ethics: Arguably the most substantial of the challenges faced by MNCs, ethics have
historically played a dramatic role in the success or failure of global players.
For example, Nike had its brand image hugely damaged through utilizing ‘sweat shops’
and low wage workers in developing countries. Maintaining the highest ethical
standards while operating in developing countries is an important consideration for all
MNCs.
 Organizational Structure: Another significant hurdle is the ability to efficiently and
effectively incorporate new regions within the value chain and corporate structure.
International expansion requires enormous capital investments in many cases, along
with the development of a specific strategic business unit (SBU) in order to manage
these accounts and operations.
Finding a way to capture value despite this fixed organizational investment is an
important initiative for global corporations.
 Leadership: The final factor worth noting is attaining effective leaders with the
appropriate knowledge base to approach a given geographic market. There are
differences in strategies and approaches in every geographic location worldwide, and

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 attracting talented managers with high intercultural competence is a critical step in
developing an efficient global strategy.
9.6 A GOOD EXAMPLE OF A GLOBAL LEADER

When Emmanuel Macron was elected in May 2017, he strode into his victory celebration not
to the sounds of “La Marseillaise” but to Beethoven’s “Ode to Joy,” the anthem of the
European Union. Now, halfway through his five-year term, the French President has finally
emerged as the de facto leader of the Continent.

With German Chancellor Angela Merkel drifting toward retirement, and Britain searching
desperately for Brexit, the French leader has seized on seemingly every simmering
transnational issue as though he were an indispensable part of its solution: climate, global
trade, Iran sanctions, Russian aggression and China’s superpower rivalry.

A theater actor in his high school days, this year Macron has cast himself as a global decision-
maker. In November, he bluntly pronounced NATO dysfunctionally “brain dead,” again
suggesting that the E.U. needs its own military alliance. In Beijing that same month, he
reviewed Chinese troops with President Xi Jinping and sealed trade and climate deals,
rendering the E.U.’s new trade commissioner a bit player.

Feeling empowered in Europe, Macron also seems to be done with courting President Donald
Trump. During a joint press appearance in London on Dec. 2, Macron turned the tables on his
U.S. counterpart, cutting short an offhand comment about ISIS fighters. “Let’s be serious,”
Macron snapped, with a hint of exasperation that left Trump uncharacteristically flustered.

At home, however, Macron faces enduring fury. Having struggled through the violent protests
of the Yellow Vest revolt of 2018, he is back to his reform agenda, vowing to end sweetheart
pension deals that France can no longer afford. He was rewarded with the biggest national
strikes in many years in December, and a full-blown resurgence of the Yellow Vests may be
on the horizon. Among the hundreds of thousands of strikers who poured into the streets,
some of them chanted “Macron dégage!” or “Macron out!”

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Voters will get their chance to make that a reality in 2022. Until then, France’s President will
be busy cementing the role he always saw for himself—at the helm of Europe. —Vivienne
Walt

9.7 CHALLENGES AND OPPORTUNITIES FOR PSYCHOLOGISTS

Global leadership development comprises activities that assist leaders of global organisations
to develop the critical competencies required to ensure business success. The many models
available differ according to four theoretical perspectives adopted by researchers and
practitioners:

(1) Focus on acquiring a ‘global mindset’ (Javidan & Teagarden, 2011);

(2) Derived from the intercultural sensitivity literature and developmental theory rather than
competencies (Hammer et al., 2003);
(3) Models based on constructive development theory (McCauley et al. 2006);
(4) Approaches using a positive psychological capital (PsyCap) perspective (Vogelgesang et
al., 2014).

Holt and Seki (2012) summarise the eight most common methods of developing global
leaders:

(1) Experience – trial and error;

(2) Assignments – international, team, early career and stretch assignments, rotations and
exchange programs;
(3) Projects – global virtual teams, task forces, action learning groups and long-term project
work;
(4) Training – intercultural communication, language, negotiation and conflict resolution,
target skills, interactive cases and using videotapes;
(5) Coaching – executive coaching, mentoring, feedback and cultural guides;
(6) Assessment – 360 degree feedback using global leadership assessment, cross-cultural
assessments, assessment centres, cultural simulations and role plays;
(7) Networking –multicultural associations, annual global leadership conferences, staying
connected via skype, social learning;
(8) Personal development plans.

9.8 THE FUTURE

As predicted leaders across sectors and industries around the globe face increasing adaptive
challenges. To successfully address these Petrie (2014) identifies four relevant trends:
(1) More focus on ‘vertical’ development as opposed to the mere acquisition of competencies;
(2) Transfer of greater developmental ownership to the individual;
(3) Increased focus on collective rather than individual leadership;
(4) Greater focus on innovation in the design and delivery of leadership development
methods.

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This stage theory of adult development proposes that, to understand the self and the world,
individuals advance through five sequential and hierarchical stages or orders of mind:
(1) Impulsive mind;
(2) Instrumental mind;
(3) Socialised mind;
(4) Self-authoring mind;
(5) Self-transforming mind

9.9 CHALLENGES AND OPPORTUNITIES.

A global survey of CEOs reported that 76% believed their organizations needed to develop global
leadership capability but only 7% believed they were doing so effectively. More recently, survey
responses from 13,124 global leaders and 1,528 human resource executives within 2,031
organizations representing multinationals and local corporations, 32 major industries, and 48
countries revealed that only one in five organizations emphasized global leadership development.
Only one-third of the leaders reported being effective in leading across countries and cultures –
the lowest single skill effectiveness rating in the survey.

Other authors argue that effective development of global leaders requires four fundamental shifts:

(1) Developing multicultural effectiveness;

(2) Becoming adept at managing paradoxes;
(3) Cultivating the ‘being’ dimensions of human experience;
(4) Appreciating individual uniqueness in the context of cultural differences.

9.10 INSIGHTS FROM A GLOBAL CHAMPION

To adapt effectively to local cultures and market needs, a shift to decentralized and
collaborative decision making is underway. A major challenge is to maintain a pipeline of
leaders capable of working in any location, with global business acumen, nous and
intercultural competence. To do this, the company has positioned culture as a business risk
and embedded intercultural competencies in its global leadership development using the
following criteria:

 Reflect customers’ cultural diversity in the top leadership of the company;

 Ensure global leaders effectively align employees with the company’s mission and
values, empowering people to lead and collaborate horizontally, often using matrix
structures, rather than managing vertically;

 Develop hundreds of leaders worldwide who are comfortable operating in a variety of

cultures, as opposed to, for example, only concentrating on the development of the top
50 or 100 leaders;

 Attract, develop and retain executives from emerging markets; and Ensure the
development of global leaders includes the acquisition of knowledge and skills related
to country differences, cultural sensitivities and their implications, and collaboration.

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This emphasizes the focus on competencies such as: learning agility, curiosity and
inquisitiveness; engagement in personal transformation; emotional, social and cultural
intelligence; and the ability to coach and empower others. It also includes the
placement and rotation of executives in various geographical locations in which the
company operates.

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 Chapter Ten

10 HARD AND SOFT SKILLS

10.1 THE HARD AND SOFT SKILLS

Hard skills are teachable abilities or skill sets that are easy to quantify. Typically, you'll learn
hard skills in the classroom, through books or other training materials, or on the job.

Hard Skills:

are often listed in your cover letter and on your resume and are easy for an employer
or recruiter to recognize. Hard skill includes:

 Proficiency in a foreign language

 A degree or certificate
 Typing speed
 Machine operation
 Computer programming

Soft Skills

Soft skills, on the other hand, are subjective skills that are much harder to quantify. Also
known as "people skills" or "interpersonal skills," soft skills relate to the way you relate to
and interact with other people. Soft skills include:

 Communication
 Flexibility
 Leadership
 Motivation
 Patience
 Persuasion
 Problem solving abilities
 Teamwork
 Time management

10.2 TOP SOFT SKILLS TO SUCCEED IN YOUR CAREER:

 Even if you rock the technical aspects of your job, there’s more to success than nuts-
and-bolts know-how. And some of the most important skills in a professional
environment can be the hardest to learn. These are “soft skills”

1) Communication

Written and verbal communication skills are super important in the workplace because they
set the foundation for how your supervisors and co-workers see you.

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You hear clear expectations from your superiors, so you can deliver your work with
excellence and efficiency.

One of the best ways to improve your communication skills is to practice public speaking
every chance you get. Speak up in class, in the workplace, and even with family and friends.

2) Collaboration

Companies don’t achieve success from just one person’s efforts. They grow when they are
able to find employees who are all willing to work together to reach a shared goal.

A friendly office environment is one that everyone enjoys and helps to attract other talented people to
the company. It also strengthens quality of work.

3) Critical Observation

Information doesn’t mean a lot if you can’t analyze it. You need to look at your facts or data
and see if there is a pattern emerging.
Ask yourself the obvious questions and then go further. Being a critical observer can help
your all-around performance at work. Companies love people who can see beyond just the
numbers.

4) Problem Solving

When there is a problem at hand you can either dwell on it or take action. Initiative and action
are what will get you noticed in a positive way.
Know how to adapt and think on your feet and it will make you stand out to an employer.
Companies rely on their top employees to navigate unexpected problems and find creative
solutions.
It’s a good idea to approach your bosses with solutions instead of problems.

5) Leadership

Even if you don’t currently have a title that implies, you’re a leader, that doesn’t mean you’re
not! It is important to have confidence in what you do at work.
Don’t be afraid to take on extra projects at work and build a team to help you achieve results.
being a leader is more than just getting people to do what you want. Try to inspire and help
others reach their potential.
10.3 RELATIONSHIP BETWEEN POWER AND LEADERSHIP:
The Concepts of Power and Leadership have much in common, in the last analysis certain
people are leaders because they exerciser power, indeed it is inconceivable that a leader
should not have power.
Consequently, the exercise of influence is a certain part of most of definitions of leadership.

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But that doesn’t mean that leadership and power are the same thing, Power indicates coercion,
authority, command and in any organization, these have to be activated for the
accomplishment of certain tasks but “Leadership act represents a choice of these instruments “
The Charismatic Power:
The charismatic leadership style relies on the charm and persuasiveness of the leader.
Charismatic leaders are driven by their convictions and commitment to their cause.
Charismatic leaders also are sometimes called transformational leaders because they share
multiple similarities. Their main difference is focus and audience
Conflict Between Soft and Hard Skills :
Hossam Ghaly was playing at Totunham Team and he was a v. good player and a professional
one with great hard skills but during a match he Was asked by the coach of the team to be
replaced then he was angry of such action and then he put off the T shirtb of the team and
throw it away ..
That let him to lose the opportunity to be in such a good team because of bad soft skills and
lack of self control.

10.4 DIFFERENCE BETWEEN HARD AND SOFT SKILLS:

1. the difference?

 Hard skill:

Hard skills require a higher level of IQ.

Example of such skills include qualification or masters in certain fields like math, accounts,
finance, economics, biology, chemistry, statistics, etc

 Soft skill:

Soft skills can be called the EQ or the Emotional Quotient of a person. It includes skills
like time management skills, self-confidence, self-management, self-control,
communication skills (Verbal communication), attitude, adaptability, as well as
the ability to take criticism in appositive manner, etc.

2. Portable and flexible, is it?

 Hard skills:

Hard skills are those that are constant and can be used in any environment with different types
of people or workplaces.

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Further hard skills can be viewed on the basis of qualifications and performance presented by
the institution or the previous workplace. It can be explained in a simplified manner by an
example.

If an employee possess the qualification for the task of computer programming then he
doesn’t need to modify or learn anything else to work in the same field of different
organization.

 Soft skills:

On the other hand, soft skills need to be modified on the basis of different work environment,
people and workplace. These skills are needed to be varied according to the company’s
customs and policies.

For example, Communication skills are a part of soft skills. It greatly varies from person to
person. The way to communicate varies on the basis of the audience one is working with.

Further the context in which the work is to be presented also differs the way of
communication. For an instance you may be able to communicate well with co-workers and
friendly employees but you may face trouble while projecting your ideas or work to the
seniors (Managers or employers).

3.Learned or not?

 Hard skills:

Acquiring hard skills come with a step-by-step guideline. The set rules make it possible to
excel in obtaining hard skills.

Generally one learns hard skills at school. For an instance, one may aim to become a certified
Public Accounted.

To attain this qualification one may start with simple accounting then might take a course in
advanced accounting. And also work and gain enough experience to be qualified for the very
post.

 Soft skills:

On the contrary, soft skills have no set guidelines to follow and procure the skills. Soft skills
are learnt through experience as well as maturity and understanding. One may fail at first but
as said ‘Failure is the stepping stone to success‘.

One must have the ability to adapt in all kind of environment and should open up to learn
new.

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Further obtaining soft skill requires concentration and hard work as there is no available step-
by-step beginners guide to it.

10.5 IMPORTANCE OF HARD AND SOFT SKILLS IN DIFFERENT CAREERS:

 1. More hard skills and less soft skills:

There are people who work excellently in their field but fail miserably in teamwork or group
task. These are the people who have more hard skills and less soft skills and are yet successful
in their careers.

Hard skills examples of such people in different career are physicians, engineers, scientists
etc.

 2. Equal Hard and Soft skills needing professions:

These are the people who require both the set of skills. For an instance, people from
accounting or law profession need both the skills equally.

These people need a good knowledge of the techniques of accounting or different laws
respective to their career.

At the same time they need thoroughly good soft skills which may help in dealing with
possible clients. Further it is the soft skill that is enhancing the hard ones.

Similarly, the profession of doctors demands them to have an eminent knowledge of

medicines as well enough skills to deal with patients requiring emotional help.

 3. Lesser hard skill and more of soft skills:

These are the careers that need very less hard skills and more of soft skills presentation like
communication skills and networking skills. These are the people who often belong to the
sales and marketing department.

To sell a certain product all they need is good marketing of the product and convincing demo.
They might have the least knowledge about the product but they wouldn’t mind as they have
the skills to read, convince and persuade their customers to make a deal.

10.6 TIPS FOR BETTER SOFT SKILLS:

As we learnt earlier, soft skills are very important for the advancement of one’s career. But
what are the ways to enhance the soft skills.

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  1. Aim for targets in hierarchical manner:

‘Aim big‘ is what people generally say, but here do the exact opposite. Don’t try to make a
leap for higher positions. Similarly, improvements cannot be made in soft skills within a short
period of time.

Thus, focusing on a single soft skill at a time is an ideal way to begin with. Further, aiming
for more may result in defeated attitude because of the dissatisfaction of incomplete task.

 2. Try to be in other’s shoes:

If you begin with communication as your targeted skill, then you may start with putting
yourself in other’s shoes.

Their motivation, their insecurity, their challenges etc., these factors may also help in making
you able to understand your flaws in communication compared to them.

Thus, understanding the loops of others communication and implementing such in your
progress will help you in improving your communication.

 3. Self-awareness is the key:

Understanding where you lack is a very important question. Try to note down your reaction
that are triggered in various situations.

Try to figure out the way in which people trigger certain emotions like stress, anger, irritation,
awkwardness etc in you.

For developing better self management skills, one must first learn to understand oneself in
depth. Change is not a fast process and so patience is very much needed.

 4. Change begins with oneself:

When you think of change, it definitely starts with your inner self. As we have learnt earlier
patience is very much needed when it comes to proceeding or implementing a certain change.

It is usually believed that change takes place only when everyone contributes to it, but here it
doesn’t work that way. For a change in oneself, one must rigorously strive to make a
difference.

Some people may have this misconception regarding soft skills. They accuse soft skills of
being a manipulative factor.

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Of course it is untrue as improving soft skills is only about the change one brings in within

yourself, your thoughts, attitude, perception and approach to various situations

Every action has a reaction thus, people’s reaction only change when you show a certain
change in yourself first.

How would one make a change in soft skills?

By practicing the skills you want to attain. After all, soft skills are not easily attainable.

Improving soft skills is almost like changing the thought process as well as the behavior.
Everyday is an opportunity to practice soft skill with other employees or the people around
you.

 5. Emotional aspect:

This skill does not have any set rules or guidelines unlike the hard skills, like math, where the
perfection is attained by the same rule all the time.

An effective change in soft skill solely depends on the emotional chaos and condition,
external situation, and the type of people one encounters on everyday basis.

 6. Flexible:

Soft skills are flexible in nature. They differ according to the audiences.

These skills are valuable to any career as soft skills enhances the inner strength, energy and
interpersonal relations. As long as teamwork is involved in job description these skills are
pivotal to your career.

 7. Pressure handling:

Learn to handle pressure. Time never stops and thus one should be able to manage time. At
times there may be a pile of work lying on your desk.

That is your queue to practice the skill of time management. Not every one can handle
pressure with ease. One should strive in developing this certain skill.

Further, it gives an opportunity to test the skill of prioritizing and allocating adequate time to
the targets. It will enhance your flexibility as well as prepare you to handle challenges in work
and life both.

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  8. Learning never stops:

‘Learning never stops‘, is a very famous saying, which can also be used as a motto. The process
of adapting soft skills is a non stop action.

One can reach the goal of proficiency in it but there are always chances of encountering new
situations. Further, may be situations are created in order to test your skills and help you learn
better.

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