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ADM 1100

INTRODUCTION TO
BUSINESS MANAGEMENT

November 14, 2018

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Agenda
• Individual Projects
• Chapter 14 & 16
• Guest speaker – next lecture – attendance
required!

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CHAPTER 14

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Who Are Leaders, and What Is Leadership?
Leader:

Someone who can influence others and who has


managerial authority.

Leadership:

The process of influencing individuals or groups


toward the achievement of goals.

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Theories of Leadership
• Early Leadership Theories
• Contingency Theories of Leadership
• Contemporary Views

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Early Leadership Theories
Trait Theories (1920s–30s)

• Identify personal characteristics to differentiate


leaders from non-leaders
• Eight traits associated with successful
leadership were identified.

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Early Leadership Theories
Eight Traits Associated with Leadership
1. Drive
2. Desire to lead
3. Honesty and integrity
4. Self-confidence
5. Intelligence
6. Job-relevant knowledge
7. Extraversion
8. Proneness to guilt
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Early Leadership Theories
Behavioural Theories
1. University of Iowa Studies (Kurt Lewin)
– Identified three leadership styles:
 Autocratic style
 Democratic style
 Laissez-faire style
– Mixed results between autocratic and democratic
styles
 Performance and employee satisfaction

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Early Leadership Theories

2. Ohio State Studies


– Identified two dimensions of leader behaviour
 Initiating structure: leader defines his or her role and the
roles of group members in attaining goals, organizing work
etc.
 Consideration: leader has work relationships characterized
by mutual trust and respect for group members’ ideas and
feelings.

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Early Leadership Theories

3. University of Michigan Studies


– Identified two dimensions of leader behaviour
 Employee oriented: emphasizing personal relationships.
 Production oriented: emphasizing task accomplishment.

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Early Leadership Theories
4. Managerial Grid:

A two-dimensional grid of leadership behaviours—concern


for people and concern for production—that results in five
different leadership styles :
• Concern for people
• Concern for production

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Behavioural Theories of Leadership
Blank Behavioural Dimension Conclusion
University of lowa Democratic style: involving Democratic style of leadership
subordinates, delegating was most effective, although
authority, and encouraging later studies showed mixed
participation results.
Autocratic style: dictating
work methods, centralizing
decision making, and
limiting participation
Laissez-faire style: giving
group freedom to make
decisions and complete
work
Ohio State Consideration: being High-high leader (high in
considerate of followers’ consideration and high in
ideas and feelings initiating structure) achieved high
Initiating structure: subordinate performance and
structuring work and work satisfaction, but not in all
relationships to meet job situations.
goals

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Behavioural Theories of Leadership
Blank Behavioural Dimension Conclusion
University of Michigan Employee oriented: Employee-oriented leaders were
emphasizes interpersonal associated with high group
relationships and taking care productivity and higher job
of employees’ needs satisfaction.
Production oriented:
emphasizes technical or
task aspects of job
Managerial Grid Concern for people: Leaders performed best with a
measures leader’s concern 9,9 style (high concern for
for subordinates on a scale production and high concern for
of 1 to 9 (low to high) people).
Concern for production:
measures leader’s concern
for getting job done on a
scale of 1 to 9 (low to high)

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Contingency Theories of Leadership
The Fiedler Model
Proper match between leader’s style and degree to which situation
allowed the leader to control and influence.

Created the Least-Preferred Co-worker (LPC) questionnaire:

A questionnaire that measured whether a leader was task or


relationship oriented.

• Questionnaire contained 18 pairs of contrasting adjectives.


• Respondents were asked to think of all the coworkers they had ever had and
to describe the person they least preferred to work with using the adjectives.
• Fiedler believed that a person’s basic leadership style could be determined on
the basis of their answers.

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Contingency Theories of Leadership
Situational factors in matching leader to the situation:
– Leader-member relations
 Degree of confidence, trust, and respect subordinates have in
their leader.
– Task structure
 Degree to which job assignments were formalized and structured.
– Position power
 Degree of influence a leader had over power-based activities

• Factors could be manipulated to create a proper match with the


behavior of the leader.
• Developed 8 situations that a leader could find themselves
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The Fiedler Model

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The Fiedler Model
• Fiedler proposed matching a leader’s LPC with the 3 contingency variables to
achieve maximum leadership effectiveness.
• He concluded:
– Task-oriented leaders perform better in situations that are either very
favourable or unfavourable to them.
– Relationship-oriented leaders perform better in moderately favourable
situations.
• Fiedler believed leadership styles are fixed and concluded leader effectiveness
could be improved in two ways:
– Bring in a new leader whose style fits better to the situation.
– Change the situation to fit the leader.

• Research has supported Fiedler’s model, however, with some drawbacks.

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Contingency Theories of Leadership
Situational leadership® theory (SLT) :

A leadership contingency theory that focuses on


followers’ readiness.

• Successful leadership is achieved by selecting a


leadership style that matches the level of the
followers’ readiness

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Contingency Theories of Leadership
Situational Leadership® Theory
Creates four specific leadership styles incorporating
Fiedler’s two leadership dimensions:

• Telling: high task–low relationship leadership


• Selling: high task–high relationship leadership
• Participating: low task–high relationship
leadership
• Delegating: low task–low relationship leadership

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Situational Leadership

Readiness and leadership


must match together

Readiness: Extent to which people have the ability


and willingness to accomplish a specific task

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Contingency Theories of Leadership
Path-Goal Theory (SLT) - Robert House:

• Leader’s job is to assist his or her followers in


achieving organizational goals.
• Leader’s style depends on the situation:
– Directive
– Supportive
– Participative
– Achievement-oriented

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Path–Goal Model

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Contemporary Views of Leadership
Leader–Member Exchange (LMX) Theory:

Leaders create in-groups and out-groups and those in the


in-group will have higher performance ratings, less
turnover, and greater job satisfaction.

Transactional versus Transformational


Leadership:
Leaders who guide or motivate versus Leaders who inspire
followers to go beyond their own self-interests

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How to be a great leader!

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Contemporary Views of Leadership
How to be a Transformational Leader

• Individualized consideration
• Intellectual stimulation
• Inspirational motivation
• Idealized influence

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Contemporary Views of Leadership
Charismatic Leadership:

An enthusiastic, self-confident leader whose personality and


actions influence people to behave in certain ways.

Effects of Charismatic Leadership:


• Increased motivation, greater satisfaction
• More profitable companies

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Contemporary Views of Leadership
Visionary Leadership:

The ability to create and articulate a realistic,


credible, and attractive vision of the future that improves on
the present situation.

Visionary leaders have the ability to:


• Explain the vision to others
• Express the vision not just verbally but through behaviour
• Extend or apply the vision to different contexts

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Contemporary Views of Leadership
Team Leadership Characteristics
– Having patience to share information
– Being able to trust others and to give up authority
– Understanding when to intervene
Team Leader’s Job
– Managing the team’s external boundary
– Facilitating the team process
 Coaching, facilitating, handling disciplinary problems,
reviewing team and individual performance, training, and
communicating

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Leadership Issues in the Twenty-First
Century
Managing Power:
1. Legitimate power
– The power a leader has as a result of his or her
position.
2. Coercive power
– The power a leader has to punish or control.

3. Reward power
– The power to give positive benefits or rewards.

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Leadership Issues in the Twenty-First
Century
4. Expert power
– Power that’s based on expertise, special skills, or
knowledge.
5. Referent power
– Power that arises because of a person’s desirable
resources or admired personal traits.

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Leadership Issues in the Twenty-First
Century
Empowering Employees
Empowerment:
Giving more authority to employees to make
decisions

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Leadership Issues in the Twenty-First
Century
GLOBE Study - Universal Elements of Effective
Leadership
• Vision
• Foresight
• Providing encouragement
• Trustworthiness
• Dynamism
• Positiveness
• Proactiveness
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CHAPTER 16

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Groups and Group Development
Group:
Two or more interacting and interdependent individuals
who come together to achieve particular goals.

Types:
Formal groups
Informal groups

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Groups and Group Development
Five Stages in Group Development
– Forming
– Storming
– Norming
– Performing
– Adjourning

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Work Group Performance and Satisfaction
Why are some groups more successful than
others?

• The abilities of the group’s members


• The size of the group, the level of conflict
• The internal pressures on members to conform
to the group’s norms

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Group Performance Satisfaction Model

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Group Performance Satisfaction Model

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Work Group Performance and Satisfaction
External Conditions Imposed on the Group
• organization’s strategy,
• authority relationships,
• formal rules and regulations,
• the availability of resources,
• employee selection criteria,
• performance management system and culture,
• the general physical layout of the group’s work space

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Group Performance Satisfaction Model

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Work Group Performance and Satisfaction
Group Member Resources
Knowledge, skills, abilities, and personality traits
that individuals bring to a group.
Interpersonal skills – conflict mgmt, collaboration,
etc.
Personality traits – positive traits are considered
best for groups (e.g. independence, self-reliance)

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Group Performance Satisfaction Model

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Work Group Performance and Satisfaction
Group Structure
A role:
Behaviour patterns expected of someone
occupying a given position in a social unit (e.g.
task vs. relationships).

Role conflicts:
Adjustment of roles to each context. This may
result in conflict, due to differences in
expectations.
What’s your typical role in a group?
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Work Group Performance and Satisfaction
Group Structure

Norms:
Standards or expectations that are accepted and
shared by a group’s members.
(e.g. absenteeism, socializing on the job, output)

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Work Group Performance and Satisfaction
Conformity:

Individuals want to be accepted by groups to which


they belong, they’re susceptible to pressures to
conform
Groupthink:
A phenomenon in which a group exerts extensive
pressure on an individual to align his or her opinion
with others’ opinion.
Do you conform to groups? Or groupthink?
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Work Group Performance and Satisfaction
Status Systems

Status:
A prestige grading, position, or rank within a group.

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Work Group Performance and Satisfaction
Group Size
• “Two pizza” philosophy
• Performance and satisfaction
Small groups work faster
Bigger groups get better results
Social Loafing:
Expend less effort when working collectively than
when working individually.
Work less because efforts can’t be measured
How can you make it fairer?

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Work Group Performance and Satisfaction
Group Cohesiveness:
The degree to which members are attracted to one
another and share the group’s goals

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Group Performance Satisfaction Model

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Work Group Performance and Satisfaction
Group Process
Factors that determine group performance and
satisfaction re. the processes that go on within a
work group, namely:
– Decision making
Advantages vs. disadvantages
– Conflict management
Functional vs. dysfunctional

– Communication

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Work Group Performance and Satisfaction
Group Decision Making
Disadvantages Advantages
– groups take more time to • generate more complete
reach a solution. information
– a dominant and vocal • bring a diversity of
minority can influence the experience and perspectives
decision. to the process
– groupthink can undermine • generate more diverse
critical thinking. alternatives
– the responsibility of any • increase acceptance of a
single member is solution.
ambiguous. • are reluctant to fight or
undermine a decision that
they helped develop.

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Work Group Performance and Satisfaction
Conflict Management

Perceived incompatible differences that result in


interference or opposition.
– Traditional view: conflict must be avoided
– Human relations view: conflict is a natural and
inevitable outcome in any group
– Interactionist view: conflict can be a positive force
and is absolutely necessary for effective group
performance
 Functional versus dysfunctional conflict

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Conflict and Group Performance

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Work Group Performance and Satisfaction
Types of Conflict
• Task conflict over content and goals of the work
• Relationship conflict based on interpersonal
relationships
• Process conflict: conflict over how the work gets
done

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Conflict-Management Techniques

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Group Performance Satisfaction Model

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Work Group Performance and Satisfaction
Group Tasks
• Complexity and interdependence of tasks impacts
group effectiveness
• Simple versus complex – routine versus novel
• Degree of interdependence – collaboration

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Turning Groups into Effective Teams
Work Teams:

A group whose members work intensely on a


specific common goal using their positive synergy,
individual and mutual accountability, and
complementary skills.

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So what’s the difference?
Groups versus Teams
Work Teams Work Groups
• Leadership role is shared • One leader clearly in charge
• Accountable to self and team • Accountable only to self
• Team creates specific purpose • Purpose is same as broader
• Work is done collectively organizational purpose
• Meetings characterized by open-ended • Work is done individually
discussion and collaborative problem • Meetings characterized by efficiency; no
solving collaboration or open-ended discussion
• Performance is measured directly by • Performance is measured indirectly
evaluating collective work output according to its influence on others
• Work is decided upon and done together • Work is decided upon by group leader
• Can be quickly assembled, deployed, and delegated to individual group
refocused, and disbanded members

Sources: J. R. Katzenbach and D. K. Smith, “The Wisdom of Teams,” Harvard Business Review, July–August 2005, p.
161; A. J. Fazzari and J. B. Mosca,“Partners in Perfection: Human Resources Facilitating Creation and Ongoing
Implementation of Self-Managed Manufacturing Teams in a Small Medium Enterprise,” Human Resource Development
Quarterly, Fall 2009, pp. 353–376.

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Turning Groups into Effective Teams
Types of Work Teams:
– Problem-solving teams,
– Self-managed work teams,
– Cross-functional teams,
– Virtual teams

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Turning Groups into Effective Teams
Types of Teams
• Problem-solving teams - teams from the same
department or functional area involved in efforts to
improve work activities or to solve specific
problems.
• Self-managed work teams - operates without a
manager and is responsible for a complete work
process or segment.

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Turning Groups into Effective Teams (4 of 6)
Types of Teams
• Cross-functional teams - A work team composed
of individuals from various specialties.
• Virtual teams - A type of work team that uses
technology to link physically dispersed members
in order to achieve a common goal.

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Characteristics of Effective Teams

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Current Challenges in Managing Teams
Characteristics of organizations today: global and
team work

Drawbacks Benefits
• Dislike team members • Greater diversity of ideas
• Mistrust team members • Limited groupthink
• Stereotyping • Increased attention on
• Communication problems understanding others’ ideas,
perspectives, etc.
• Stress and tension
Source: Based on N. Adler, International Dimensions in Organizational Behaviour, 4th ed. (Cincinnati, OH: South-Western
Publishing, 2002), pp. 141–147.

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