Leadership: Chapter # 8 Topic#2 Chrishmatic Leadership

Leadership
Chapter # 8
Topic#2 Chrishmatic leadership
Mubashir Wasim (MSc. Economics, MBA

Marketing, MS-IT, MS Business
Management)
Charismatic Leadership
There is a view that a leader must possess certain personal qualities of
leadership. The best leaders are ‘charismatic’. These characteristics are
natural, and some individuals are born with them. They cannot be
taught. After all, charisma is defined as a "divine gift of grace
A trait theory of leadership is that there is a set of personal qualities

and characteristics that make a good leader. Individuals either have
these qualities or they do not. Some people are therefore ‘born
leaders’.

Management)
Charismatic Leadership
Physical vitality and energy

Intelligence and good judgment
Eagerness to accept responsibility
Enthusiasm and self-confidence
Competence in the tasks
Understanding their followers and their needs
Skill in dealing with people (interpersonal
skills or ‘soft skills’)
Having a powerful need for achievement
A capacity to motivate others

Management)
Problems Associated with Charismatic Leaders
People rely too much
Care of vision more than profitability
Difficult to find replacement
Follower inspire but not participate or add suggestions or provide
feedback

Management)
Q1 Q.2 Charismatic Leaders by the force of their personality
appeals and confidence are capable of having profound and
extraordinary influence on their followers. Often, they are the
role models and most admired visionaries and command deep
respect and adulation amongst their followers. However,
responsible and organization-oriented charismatic leaders are
mindful of the pitfalls of their charismatic styles of leadership.
Required:
In your opinion, what steps should a charismatic leader of a
highly successful business organization take to minimize the
adverse effects of charismatic style of leadership? (06) [A09]

Management)
Black & Moutoun
Robert Blake & Mouton carried out research into managerial
behavior and observed two basic dimensions of leadership:
Concern for Production / task: This includes a concern for
achieving targets, the volume of output, work efficiency and so
on.
Concern for People: his includes personal commitment, ensuring
good working relationships with others (particularly
subordinates), maintaining good interpersonal relationships, and
keeping the trust and respect of the group.

Management)
Black & Moutoun

Management)
Black & Moutoun
*1.1 Management Impoverished:- This manager only makes
minimum effort in either area and will make the smallest possible effort
required to get the job done.
*1.9 ‘Country Club’ Management:- This manager is thoughtful and
attentive to the needs of the people, which leads to a comfortable
friendly organization atmosphere but very little work is actually.
*9.1 Task Management:-This manager only concerned with
production and arranges work in such a way that people interference is
minimized.
*9.9 Team Management:- This manager integrates the two areas to
foster working together and high production to produce true team
leadership.
*5.5 Middle Road Management:- Does enough to get the job done, but
may not be pushing to extend the boundaries of what is possible

Management)
Black & Moutoun
Q.9 (a) Blake and Mouton’s theory of Leadership/Managerial Grid

classifies the different leadership styles in the following combinations:
(i) 1,1 (ii) 1,9 (iii) 9,1 (iv) 5,5 (v) 9,9
Identify and describe briefly the different leadership styles depicted by
each of the above combinations. (05)
(b) What do you understand by the term positive reinforcement? Identify
the situations in which positive reinforcement would be most effective.
(03) {A16}

Management)
Ashridge
Tells Tells & Consults Joints
Sells
Before No No Collect Invite
Decision Discussion Discussion Opinion members
to vote
Make Leader Leader Leader Consensus
Decision
After Do or Else Reason for Guide to No need to
Decision decision those who convince
express have
benefits difference
opinion

Management)
Marketing, MS-IT, MPhil Business
Management)
Ashridge’s Tells & Sells
Tells Tells & Sells

Before Decision No Discussion No Discussion
Make Decision Leader Leader
Limits x X
Back ground idea x x

After Decision Do or Else Reason for decision
express benefits
Implementation As ordered As ordered

Management)
Ashridge’s Consults
Tells & Talks Consults Involve
Before Decision Intimates invites the group Problem is presented

members to discuss it ask for suggestions
Make Decision Leader Leader Leader/ Subordinates
Limits X Can change & Make team members are

different Decision closely involved/ leader
make can make minor
changes
Back ground idea Back ground expressed Already know Clear

After Decision Give presentation allow Need to work if decision Subordinate accept
questions is different than responsibility
suggestions
Implementation understand the issues Subordinates are

involved and the experience & skills
implications of the
decision

Management)
Ashridge’s Joints
Delegates Abdicate
Before Decision Clear the situation by Subordinates are asked
leader to identify problem
Make Decision Ask subordinates to Develop alternatives
decide
Limits Give parameters or limits
to subordinates
Back ground idea Clear Very clear

After Decision Subordinate accept Make action plan
responsibility
Implementation Mature team + Limit of authority is
experience & skills defined

Management)
Contingency Theory by Fred Fiedler
Fred Fiedler’s contingency theory of leadership was developed from
research he conducted in the 1960s into two leadership styles, and which
style was the more effective. He began by identifying two leadership
styles:
Task-orientated leadership, Psychologically Distant Leader and
Relationship-orientated leadership. Psychologically Close Leader
These styles could be related to Blake’s grid and ‘concern for the task’
and ‘concern for people’.
Fiedler studied the relationship between style of leadership and
effectiveness of the work group. Two styles of leader were identified.
Psychologically distant managers (PDMs) Task-orientated leadership,
Maintain distance from their subordinate by formalizing roles and
relationships within the tram (who have to accept your instruction).
Are withdrawn and reserved in their interpersonal relationships.
Prefer formal communication and consultation methods rather than
seek informal opinion.
Judge subordinate on the basis of performance and are primarily task-
oriented.
Fiedler found that leaders of the most effective work groups actually
tend to be PDMs.
Psychologically close managers (PCMs); Relationship-orientated
leadership.
Do not seek to formalize roles and relationships
Prefer informal contacts t regular forma staff meetings
They are more concerned to maintain good human relationships at
work to ensure that tasks are carried out efficiently.
The relationship between the leader and the subordinates: If the leader
is liked and respected, he is more likely to have the support of his
subordinates
The structure of the task. If the task is clearly defined, with clear goals,
methods of working and standards of performance, it is more likely that
the leader will be able to exert influence.
The position power of the leader. If the organisation gives power to the
leader, for the purpose of getting the job done, this is likely to increase
the influence of the leader.
Charles Handy
Charles Handy described his contingency approach to leadership
styles as a best fit approach. There are four factors that influence
the effectiveness of a leader:
The leader himself – his personality and character, and leadership style
The subordinates – the personalities of the individuals in the group, ,their
preferences for a particular leadership style
The task – Objectives of the group’s tasks, and methods of working
The environment –organisation structure, the culture and norms of the
organisation, the technology of the organisation’s operations and the
variety of tasks performed by subordinates in the group.
Tight Flexible
The Leader Autocratic Democratic
Low opinion of Regard subordinates
subordinates Accept reasonable uncertainty
Dislikes uncertainty
Subordinate Low opinion of their own High opinion of their own abilities
abilities Like challenging work
Like certainty Want to participate in decision
Want direction
Task is routine and repetitive, problem solving or decision-making
involved,
Environment Simple and static Complex and dynamic
Management)
The action-centered approach:
Adair suggests that
any leader has to
strive to achieve
three major goals
while at the same
time maintaining a
position as an
effective leader.

Management)
Adair’s 50:50 rule Adair suggested a 50:50 rule that applies to his
thinking about leadership. Leadership is influential, but effective
leadership on its own is not sufficient.
Individual: 50% of motivation comes from within the individual. The
other 50% of motivation comes from influences outside the individual,
including the influence of the leader.
Team: 50% of building a successful team comes from the team members
and 50% comes from the leader of the team

Management)
Transformational Leadership
Transformational leadership (Bennis):
Some of the values used to distinguish between managers and
leaders have also been identified as;
Transactional leaders – see the relationship with their followers
in terms of trade: they give followers the rewards they want in
exchange for service, loyalty and compliance.
Transformational leaders – see their role as inspiring and
motivating others to work at level beyond mere competence.

Management)
Bennis
Transactional Leaders: The Transformational Leaders: The
Managers Leadership
Runs routine matters Develop direction for future

Doing things right Doing the right things
Maintain Develop
Focus on procedure Focus on people
Short-run view Long-range Perspective
Rely on control Inspire and trust

Management)
Q17 45 Transactional and transformational leaders
Leaders through their vision, foresight, business acumen and
commitment provide impetus, direction and lay the foundation of
some of the largest and most successful business organizations.
Leaders are also known for their ability to create deep feelings of
confidence, trust and respect which inspire and motivate their
followers to achieve positive results.
(a) What are the distinctive styles of transactional and
transformational leaders?
(b) Describe the characteristics and approaches of transactional
and transformational leadership. (07)

Management)
Q6 Q2: b) Warren Bennis has made a distinction between managers
and leaders by discussing various characteristics of each. Link each
of the following characteristics to managers or leaders:
(i) focus on systems and structures
(ii) short-range perspective
(iii)challenging the status quo
(iv)reliance on control
(v) doing the right things
(vi)inspire trust
(vii)transactional leadership
(viii) imitate
(ix)administer
(x) maintain
(xi)develop
(xii)visionary _ (03) [S16]

Management)
(b) Mr. Alam is the CEO of a company which is known for its adoption of
latest and modern techniques. The company usually takes the lead in
adopting new ideas, be it new manufacturing equipment, information
technology, marketing or human resource. Mr. Alam has also been able
to develop a highly motivated and talented team of workers and
managers.
Mr. Alam is excellent in terms of communicating new ideas and always
receptive to creativity. He has also laid stress on staff development and
training and has introduced policies which are helpful in identifying and
grooming them. His vision is to provide opportunities for long-term
growth of the company as well as its employees.
Required: Identify the style of leadership followed by Mr. Alam and
specify the characteristics of such style of leadership as enumerated by
Warren Bennis. (07) [17A]

Management)
John Kotter
What a leader really do, He has argued that leadership is largely
concerned with:

Management)
Aspect Manager (Transactional Leader (Transformational
Leadership) Leadership)
Creating the Agenda Planning & budgeting Establish directions
Human Relation Fit person on the job Align people with visions
Aspects
Executive of Tasks Controlling divergence Inspire and motivate
Outcomes Predictable and routine Innovation and Produce
outcome change

Management)
Transformational Leadership by Ronald Heifetz
Technical change – the application of current knowledge, skills

and or tools to resolve a situation
Adaptive change – is required when the problem cannot be
solved with existing skills and knowledge and requires people to
make a shift in their values, expectations, attitudes or habits of
behavior.

Management)
Heifetz suggested that there are six principles of leadership for adaptive
change.
1 Get on the balcony
A leader must have an ability to observe changes that are happening and
to prepare others to respond.
2 Identify the adaptive challenge
A leader has to response to the changes in the environment and plan to
response them.
3 Regulate distress
Means leader show that change is urgent create a curiosity and passion
for change in the members of organization. This change must be on an
acceptable pace.
4 Maintain discipline and resolve conflict
The leader must get conflict out into the open and use this as a source of
creativity. Constructive conflict among individuals leads eventually to
collaboration and agreement.

Management)
Heifetz suggested that there are six principles of leadership for adaptive
change.
5 Give work back to the people
Leaders give subordinate authority to make decisions and independence
to choose solution to problem.
6 Protecting voices of leadership from below
Leaders should give a voice to other people and they speak vision of
leadership and protect it.

Management)
Group
A group is a collection of individual who
1) Interaction with one another
2) Are psychologically aware of one another
3) Perceive themselves to be a group
4) Have a common interest.
“two or more than two persons who interact with one another such that each
person influences and is influenced by each other person.” ( )
Types of Group
Formal Group Informal Group
Mubashir Wasim MSc Economics, MBA

Marketing, MPhil, MCS, MS-IT
Formal group will be consciously organized,
for a task which they are held responsible-
they are task oriented, and become teams.
Although many people enjoy working in
teams, their popularity in the work place
arises because of their effectiveness in
fulfilling the organization’s work
Informal groups will invariably be present in

any organization. Informal groups include
workplace cliques, and networks of people
who regularly get together to exchange
information or groups of ‘mates’ who
socialize outside work. They have a
constantly fluctuating membership and
structure.
Group Cohesion (Group Behaviour)
Cohesiveness is strong team spirit; a cohesive
group is one in which the members react as a
part of the group rather than as individual.
Group cohesion describes the strength of the
bond uniting the group.
1-Leadership:-
2- Right Mix of Skills
3- Clear & Commitment to Share
Goals
4- Clear & Commitment to Share
Goals
5- Team Identity
6- Team Solidarity
Q1: 61 Groups and leaders
(a) What are the key characteristics of charismatic
leaders? (03)
(b) What is meant by group dynamics? (03)
(c) List any four factors which create more effective group
cohesiveness. (03)
Q2: 59 Cohesive groups +

Briefly describe the term group and list six important
attributes of a cohesive group. (06) [A10]
Q7: Q.11 (a) Explain briefly what is meant by the term group
dynamics? (03) [A16]
(b) List the factors which contribute towards effective group
cohesiveness. (03) [A16]
60 High performance team
(a) What are the distinctive characteristics of a “High Performance
Team”? (02)
(b) List five steps which, in your opinion, should the business
leader of a progressive organisation take in order to create and
develop a high performance team. (05)
Q.2 (a) What are the distinctive characteristics of a “High

Performance Team”? (02 marks)
(b) List five steps which, in your opinion, should the business
leader of a progressive organisation take in order to create and
develop a High Performance Team. (05 marks)[S11]

Group Theories: Balance Theory
Another very comprehensive theory is a Balance Theory of group
formation. This theory as proposed by Theodore Newcomb states that
“Persons are attracted to one another on the basis of similar attitudes
towards commonly relevant objects and goals.”
Similar attitudes and values relating to subjects such as work, marriage,
lifestyle, politics, religion and authority.
Once formed, people then attempt to maintain balance within those
relationships of the attraction, common attitudes and values
Self-persuasion; or
By trying to persuade
others.

Managing a Team: Using the Ideas of Belbin
Belbin suggested that teams will work most successfully when there is
a suitable balance between these nine roles amongst the team
members, and when team members:
understand their role in the team
work to their strengths, and
try to manage their weaknesses.

Tuckman’s Stages of Group Development
Forming
Groups members are collected in this stage who are seeking to defined
and collective purpose. At this stage a team will be dependent upon a
leader to guide and direct its activities. Individual members are usually
unsure or unclear on their roles and responsibilities.
Storming
Groups members are collected in this stage attitude and behaviors are
accepted & Rejected, group members. In the other words, the members
start sharing their views, ideas attitudes and behavior with each other
which sometimes results in conflict among the members due to which
this stage is refereed to as “storming”. The team s a whole at this point
still needs top be led as there is competition between the team members
for their roles. The team members start building trust for each other
during this stage. If the team passes through this stage successfully, it will
emerge as a very strong and productive team.
Tuckman’s Stages of Group Development
Norming
Individual members become clear on what their roles and responsibilities
are. In addition, rules, values, acceptable behaviours and work styles start
to get established for the team. The level of reliance on a leader
decreases significantly.
Performing
At this stage the team is function as a cohesive whole with no
interference or participation form the leader. The problems related to
conflicts and adjustments amongst team members are resolved at this
stage. The team is focused, and works towards achieving all goals and
objectives.
Dorming
If a team remains for a long time in the performing phase, there is a
danger that it will be operating on automatic pilot. ‘GroupThink’ occurs to
the extent that the group may be unaware of changing circumstances.
Instead, maintain the team becomes one of its prime objectives.
Conflict and Negotiation
Chapter#10
Conflict
Causes of Conflict
Advantages of Conflict
Disadvantages of Conflict
Conflict:
State of disagreement or misunderstanding, resulting from the actual
or perceived dissent of needs, beliefs, resources and relationship
between the members of the organization.
CAUSES OF CONFLICT
(i) Incompatibility of goals: The overlapping of formal objectives
The overlapping of role definitions, e.g. possible conflict for an
accountant between professional codes and organization needs
(ii) The contractual relationship is unclear, where parties may view
their priorities differently
(iii) The existence of concealed (hidden) objectives.
(iv) differences over interpretation of facts,
(v) disagreements based on expectations of the parties.
Causes of Group Conflict
The factors which are responsible for creating group conflicts in business
organisations are:
(i) Interpersonal differences/group politics – The inherent differences in
personality, temperament and outlook of individuals are often the main
sources of interpersonal and group conflicts. Discerning managers
recognise these differences and make efforts to create a conducive
environment in which people with interpersonal differences are able to
work together as cohesive groups.
(ii) Differences in values and beliefs – Values and beliefs of individuals are
shaped by their upbringing and life experiences and therefore differ
considerably. Values such as honesty, affiliations, beliefs and
competitiveness are often deep rooted in individuals and may at times
result in discrimination, consciously or subconsciously, in their group
interactions which can cause conflicts.

Management)
(iii) Differences in allocation of resources – Groups have different

interests in the allocation of resources such as salaries and perquisites,
deployment of staff and equipment and allotment of space. Each group has
its own goals and perceptions of favouritism in allocation of resources
which gives rise to inter-group conflicts. Incompatibility of goals and
objectives and allocation of resources thus give rise to inter- group
conflicts.
(iv) Task interdependence – In business organisations, various groups
have to share outputs and inputs from different departments/divisions for
completion of their allocated tasks. Inability to adhere to time schedules,
quality of workmanship and allocation of responsibilities can result in
group conflicts.

Management)
(v) Ambiguous roles – Uncertainty among the different departments

about their specific roles and authorities and responsibilities in the
organisation can give rise to inter-group conflicts. The ambiguities are
often the result of weaknesses in organisation structures.
(vi) Communication problems – Absence of an environment of open
communications and withholding of important information from others
can affect the performance and undermine the trust between groups and
can give rise to group conflicts.

Management)
(vii) Lack of leadership skills– Leadership which is not able to articulate the
goals and objectives of WRML and provide a clear-cut sense of direction to
the staff would create confusion within the organisation and result in
rivalry and conflict and adversely affect the quality of service to the
customers.
(viii) Unrealistic targets – The targets may be unrealistic and over
ambitious and not attainable due to the overall economic constraints and
political situation. This may adversely affect the motivation and morale of
the staff and create internal conflicts which would adversely affect the
quality of services rendered to the customers.

Management)
Benefits of Conflict: Advantages
Some of the benefits that can arise from conflict include:
Helping to bring about radical changes to alter existing power
Encourages innovation and testing of new ideas
Brings emotions in the open
Results in constructive levels of tension
Improved customer service and product design
Long-standing problems are brought to the surface and resolved
Q1(a) Group conflicts are inevitable part of organizational
interactions and are often viewed as indicative of negative
connotations. However, there may be some positive
outcomes of the conflicts also.
Required: Enumerate the situations in which group
conflicts may be beneficial for an organization. (04) [S18]
Examiner Q1 [S18]: (This question on Conflict had two parts with the first
part requiring the candidates to identify the situations in which conflicts
are beneficial for an organisation and in the next part they were asked to
explain what steps the CEO of a company should take to resolve the
conflict in the given scenario.
The overall performance remained satisfactory as 41% of the candidates
secured passing marks. In the first part, most of the students were able to
list down the benefits of conflict correctly. However, in the second part,
many students could not list down all the steps to resolve the conflict.
The major issue was that they could not relate the steps to the given
scenario and gave a generalized idea. Some of them stressed upon the
CEO to use his powers as CEO rather unilaterally, to resolve the issue,
without considering that such resolution of dispute should as far as
possible lead to a mutually acceptable solution. Several students listed
the five negotiation styles i.e. Competing, Accommodating, Avoiding,
Compromising and Collaborating which was totally irrelevant.
Negative outcomes of conflict: Disadvantages
creation of an environment of distrust and suspicion

concentration of efforts within narrow group interests
undermining of team effort
weakening of communication between groups
Dealing with Group Conflict
Resolving Group Conflict:

The Leader/Manager can take the following steps to resolve the conflict
between two groups
(i) Collect information – The manager should collect information to
ascertain the underlying interests, needs and concerns of both the
departments and make efforts to understand their motivations and goals
(ii) Set the scene – The leader should listen actively to both the parties to
ensure that they understand the situation and have adequate awareness of
each other’s perceptions. The leader should establish ground rules for
resolution of the problem.
(iii) Develop consensus that there is a problem – The different underlying
concerns and interests may mean that the groups perceive the problem
very differently. It is essential to establish precisely where is the problem
which needs to be resolved.

Management)
Dealing with Group Conflict-Resolving Group Conflict:
(iv) Brainstorm possible solutions – As an effective facilitator, the manager

should encourage participative brainstorming to help ensure that both the
parties feel that their viewpoints are considered objectively. This will
significantly improve acceptance of the position of the parties and ensure
commitment towards a mutually acceptable resolution.
(v) Encourage a mutually acceptable solution. :-

Management)
QB58 Apollo Industries
Apollo Industries Limited (AIL) is currently experiencing intense conflict and work
friction between the research & development department and the marketing
department. The marketing department often puts forth the argument that the
customers are not willing to pay premium price for the co-called innovations and
improvements in the products. The increase in costs on account of perceived
improvements in product designs results in higher prices which undermine the
marketing efforts in the face of intense competition. The R&D department is of the
firm opinion that in the absence of sustained efforts to upgrade and improve the
quality of the products, AIL would lose its competitive advantage and its image as an
industry leader would be adversely affected. The marketing department has not
been able to achieve its targets and apportions the blame on the inability of the
R&D department to understand the current competitive environment. The CEO is
most concerned about the situation as it is adversely affecting the overall
performance of the company. You are required to explain to the management of AIL
the following:
(a) Identification of the various factors which give rise to inter-group conflicts.
(b) Both the positive and negative outcomes of internal conflict.
(c) The steps that should be taken by AIL to reduce the negative impact of internal
conflict in the above situation. (12)

Management)
Q.7 Jupiter Industries Limited (JIL) is currently experiencing intense
[S15] conflict between the Marketing Department and Procurement
Department. The Marketing Department has not been able to
achieve its revenue targets and blames the Procurement
Department for its inability to understand the highly competitive
business environment. The Marketing Department claims that
customers are not willing to pay target prices due to poor quality
of the products. The Procurement Department is of the opinion
that it must procure raw materials from the most competitive
sources. The CEO of JIL is most concerned about the situation as
it is adversely affecting the overall performance of the company.
You are required to advise the CEO about the steps that should
be taken to resolve the conflict. (07)

Management)
(b) The management of Unified Textile Limited (UTL) is concerned over
increased conflicts between HR Director and Production Head. The
situation has recently escalated when HR Director refused to approve
overtime payment for certain production staff. HR Director is of the
view that production department is not being efficiently managed and
overtime can be reduced significantly by appropriate assignment of
duties. Production Head believes that his department is always dealt
with heavy-handed dominating approach by HR Director and his
request for recruitment of additional staff is still pending HR’s
approval.
Required: Being the CEO of UTL, explain what steps you would take
to resolve the conflict. (08) [S18]

Management)
Conflict & Negotiation
Negotiation
Stages in Negotiation

Management)
Negotiation
Definition: “Discussion aimed at reaching an agreement”
Negotiations is a process in which two or more parties who consider that
they need to be jointly involved in an outcome, but who initially have
different objectives, seek by use of argument and persuasion to resolve
their differences in order to achieve a mutually acceptable solution.
Negotiation is a method by which people settle differences. It is a process

by which compromise or agreement is reached while avoiding argument
and dispute. In any disagreement, individuals understandably aim to
achieve the best possible outcome for their position (or perhaps an
organisation they represent).

Management)
Negotiation
Stages in the Negotiation Process

The various stages of the negotiation process are:
Preparation and Planning: understanding the nature of the conflict &
perceptions of the parties- analyse the issues involved to determine the
vital interests of the parties and the extent of concessions they can offer
to each other. outcome best to minimum outcome- strength or
weaknesses of parties
Definition of Ground Rules: Process and procedures for conducting the
negotiations- names of the participants, venue and time limits
Clarification and Justification: After both the parties have presented
their initial viewpoints, each party offers its explanations, clarifications,
and justifications.
Bargaining and Problem Solving: The parties make concessions to reach
consensus to reach mutually acceptable agreement
Closure and Agreement: Formal agreement and include a procedure for
its implementation and monitoring.
Management)
Negotiation
Q11: Q.9 [S17] In your capacity as manager of legal department of XYZ

Limited you have been assigned to lead a team of two
officers to conduct negotiations with the representatives
of the workers union. The union is demanding a
substantial increase in salary and fringe benefits.
Describe briefly the various stages of the negotiation
process for conduct of meaningful negotiations with the
representatives of workers union. (08)

Management)
Negotiation
Q12 Q.12 Explain what do you understand by Negotiations? Briefly

[A11] explain the various stages of the negotiation process.
(10 marks)
QB71 Stages of negotiation
Explain what do you understand by negotiations? Briefly explain
the various stages of the negotiation process. (10)
Q.8 Explain what do you understand by Negotiations? Briefly explain
[A07] the various stages of the negotiation process. (11)

Management)
Deadlock
If a dispute or series of negotiations reaches deadlock, neither side
is willing to give in at all and no agreement can be made. They called
for a compromise on all sides to break the deadlock in the world
trade talks. Peace talks between the two sides ended in deadlock last
month.

Management)
Strategies to Avoid Deadlock
Deadlock
In the case of a threat of last minute breakdown or collapse of the
negotiation process, the following measures may be adopted:
(i) Offer a comprehensive and convincing explanation of the
reasons why the concessions sought by the other party cannot be
accepted.
(ii) Express willingness to review the matter or concessions or
benefits sought by the other party, in the future.
(iii) Attempt to close the deal by offering some benefits in the
future by giving additional concessions or benefits in an ancillary
contract while finalizing the main contract.
(iv) State discreetly the consequences of failure to reach an
agreement and emphasize the advantages and benefits of
concluding the deal without any further loss of time.
Management)
QB68 Deadlock Serious efforts are required to avoid deadlocks in
negotiations. Quite often the deadlock appears when the
negotiation process is in an advanced stage.
List any four measures which a skilled negotiator may adopt to
avoid a deadlock in the final stages of negotiations. (06)
Q.2 (a) Brief any four measures which a skilled negotiator may
[S10] adopt to avoid a deadlock in the final stages of negotiations. (08)

Management)
Q.4: Negotiations involving high stakes often lead to situations in which
[A14] the parties are reluctant to give up their present positions for
achieving maximum advantages. In order to avoid situations which
may result in deadlocks and complete breakdowns, the participants
have to apply considerable tact and skills to conclude the
negotiation process successfully.
Required:
(a) Explain briefly the measures that skilled negotiators may take to
keep the negotiation process on track and achieve positive
outcomes without creating deadlocks. (06)
(b) State four reasons why conflicts are a common phenomenon in
organizational settings. (02)
(c) Although conflicts are often indicative of negative connotations,
yet they may result in optimal performance in certain situations.
Identify the situations in which conflicts may be advantageous for
an organisation. (05)

Management)
Approaches to Negotiate
Win-win outcomes occur when each side of a dispute feels they have
won. Since both sides benefit from such a scenario, any resolutions to the
conflict are likely to be accepted voluntarily. The process of integrative
bargaining, collaborative aims to achieve, through cooperation, win-win
outcomes.
Win-lose situations result when only one side perceives the outcome as
positive. Thus, win-lose outcomes are less likely to be accepted
voluntarily. Distributive bargaining processes, based on a principle of
competition between participants, are more likely than integrative
bargaining to end in win-lose outcomes--or they may result in a situation
where each side gets part of what he or she wanted, but not as much as
they might have gotten if they had used integrative bargaining.
Lose-lose

Management)
Approaches to Negotiate
Distributive Bargaining Integrative Bargaining
Goal Each party for maximum Both parties try for the maximize
advantage for its own self- them to their mutual advantage
interest
Motivation the motivation for each party both the parties should emerge as
is to adopt a win-lose winners in a win-win situation
Focus To obtain the opponent’s Try to reach a mutually
agreement to a specific target acceptable outcome
one part’s choice
Interest The interests of each of the Both the parties to arrive at a

parties are opposite mutually acceptable position.
Sharing of Each party withholds Both the parties share
Information information for self interest information to satisfy the
interests of each of the parties
Duration of The duration of relationship Integrative bargaining approach

Relationship between the parties is of a the engagement or relationship
short-term nature between the parties is of a long-
term character.
Management)
Tactics for Negotiation
A successful negotiator needs to demonstrate they will also adopt a
number of tactics during the negotiation, some of which will carry
greater risk than others.
There are two types of negotiation techniques
High Risk Techniques
Low Risk Techniques

Management)
High Risk Negotiation Techniques
1) ‘Take it or Leave it’ (Boulwareism) – This is a highly
aggressive strategy that may produce anger or
frustration in the other parties.
2) Losing the Temper – This is actually a sign of
weakness and can be interpreted as unprofessional
and potentially manipulative.
3) Waiting Until the Final Moment – This technique
involves using stalling tactics knowing the deadline is
near. At the last minute a reasonable but favorable
offer is then made, leaving the counterparty little
choice but to accept.
4) ‘The Chicken’ – This is a slang term that describes
combining a bluff with a threat of action – for
example a strike or lock-out. This leads to high
chances of deadlock. If bluff is called but the threat is
not realized then power and credibility
Mubashir is lost.MBA
Wasim (MSc. Economics,
Management)
Low Risk Negotiation Techniques
1) Inflated opening position – By inflating the opening
position this may illicit a counter-offer that may show
the opponents position or promote the point of
compromise.
2) Silence – This can be effective and shift the power
to the one being silent. Be careful not to provoke
anger or frustrate the other parties.
3) Flattery – Subtle flattery and charm can help put
the other party at ease. Ensure you are respectful
though and consider differing perspectives due to
age, sex and cultural factors.
4) Oh Poor me –This approach could lead to sympathy
although may as easily bring out the aggressive and
killer instinct nature in the other party.
5) Address the Easy Points First – this can help build
trust and momentum towards Mubashir the
Wasim more challenging
(MSc. Economics, MBA
issues. Management)

Leadership: Chapter # 8 Topic#2 Chrishmatic Leadership

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Leadership: Chapter # 8 Topic#2 Chrishmatic Leadership

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Leadership

Mubashir Wasim (MSc. Economics, MBA

A trait theory of leadership is that there is a set of personal qualities

Mubashir Wasim (MSc. Economics, MBA

Physical vitality and energy

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Q.9 (a) Blake and Mouton’s theory of Leadership/Managerial Grid

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Tells Tells & Sells

Back ground idea x x

Mubashir Wasim (MSc. Economics, MBA

Before Decision Intimates invites the group Problem is presented

Make Decision Leader Leader Leader/ Subordinates

Limits X Can change & Make team members are

Back ground idea Back ground expressed Already know Clear

Implementation understand the issues Subordinates are

Mubashir Wasim (MSc. Economics, MBA

Back ground idea Clear Very clear

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Runs routine matters Develop direction for future

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Technical change – the application of current knowledge, skills

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Formal Group Informal Group

Mubashir Wasim MSc Economics, MBA

Informal groups will invariably be present in

Q2: 59 Cohesive groups +

Q.2 (a) What are the distinctive characteristics of a “High

Mubashir Wasim MSc Economics, MBA

Mubashir Wasim MSc Economics, MBA

Mubashir Wasim MSc Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

(iii) Differences in allocation of resources – Groups have different

Mubashir Wasim (MSc. Economics, MBA

(v) Ambiguous roles – Uncertainty among the different departments

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

creation of an environment of distrust and suspicion

Resolving Group Conflict:

Mubashir Wasim (MSc. Economics, MBA

(iv) Brainstorm possible solutions – As an effective facilitator, the manager

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Mubashir Wasim (MSc. Economics, MBA

Negotiation is a method by which people settle differences. It is a process