Chapter 5 Leading

Faculty of Business, Hospitality,
Accounting & Finance
Principles of Management
(MGT 1023)
If its important to you, you will find a way. If its not, you’ll find an excuse.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-1
Copyright by Ms Syikin@ 1 1
Chapter 5
Leading

Leadership Style
• 1 - Nice Guy
• 2 - Loser
Task
• 3 - Compromiser
• 4 5
4 - Task Master
• 5 - Ideal Manager 3
2 1
People
3
Use of Leadership Style
• No single style fits all situations

• A person’s dominant style is determined
by personality traits
• Different leadership styles can be effective
with different people at different times
• Advice to engineering managers: Vary
style flexibly according to situation at hand
in order to be effective
4
5
Leading
• To cause people to take effective actions

for attaining organizational goals (willingly)

The Function of
Leading
D e ciding
Co m m unicating
Mo tivating
Se le cting Pe o ple
D e ve lo ping Pe o ple
6
7
Deciding
• To arrive at
conclusions and
judgements
• To assure that the
quality of
decisions made
remains high

Types of Decisions
• Spontaneous Decisions - Intuitive, hunch or
gut instinct based
• Reasoned Decisions - Based on systematic
studies and logical analyses (to the extend
possible): (1) Assess facts and evaluate
alternatives, (2) Use full mental resources,
(3) Emphasize creative problem-solving,
(4) Think consistently, (5) Minimize the
probability of errors (downside risks)
8
Why Decision Making is Difficult?
• Management Problems - defined, of wide
scope, of constantly changing nature,
involving people of unpredictable behavior
• Data/Facts - Insufficient, of poor quality,
excessive, and not to be analyzed and
interpreted in time and within budget
• Impact of decisions - Dependent on
people’s opinion, which change in time
9
• Nature of Decisions - Compromises among
alternatives, with validity changing with time
• Decision Implementation - Affected by
consensus and commitment of affected
people
• Complexity of Decisions – Critically important
decisions involve multiple management
levels, thus requiring coordination
10
Criteria for Good Decisions
• Achieve stated purpose - correct/change
the situation which created the noted
problem
• Be feasible to implement - meaningful with
respect to resources required and the
value created
• Have no or limited adverse consequences
-not causing major disasters to unit or
company in short- and long-term
11
Guidelines for Decision Making
• Study management cases for acquiring close
to real-world experience in decision making
• Prioritize problems in need of decisions, skip
those with minor significance or impact
• Apply a rational process to guide the decision
making process
• Involve those to be impacted by the decision -
consensus building foster implementation
12
• Make decisions based on incomplete/
uncertain information on hand,
assumptions introduced
• Take the necessary risks
• Delay decision making until the last
allowable moment, but within the
applicable deadlines, avoid making no
decision which is a sign of poor leadership
13
1
4
Who is to Make What Decision?
• Staff
• Staff and
Manager
• Manager

Decisions by Staff
• Techniques to accomplish assigned tasks

or projects
• Options to continuously improve current
operations and work processes
• Social events - Group picnics, golf outings,
Christmas parties, and others
15
Decisions by Manager and Staff
• Development needs of staff - conference
or seminar attendance, training needs,
degree programs, etc.
• Policy and procedure involving staff
interactions with other departments
• Team membership - workload balance,
personality fit, working relationship,
exposure and visibility, sets of skills, etc.
16
Decisions by Manager
• Priority of tasks and projects, project or
program objectives, budget allocation
• Personnel assignment, work group
composition, evaluation, job action
• Administrative – policies, procedures,
office space assignment, special
exceptions
• Business confidential matters
17
Rational Decision
Making Process
Collect Develop Implement

Facts Alternatives Solution
Assess Define Real Select

Problem Problem Solution
18
Rational Decision Making Process
• Assess the apparent problem - based on
symptoms observed
• Collect facts - what, how, who, where,
when, why, from people who have direct
knowledge of the problem at hand :
“Management by Walking Around”
• Define the real problem - deviation from
norm, performance metrics to measure
success
19
• Develop alternatives to achieve the desired
resolution - brainstorming, innovation
• Select optimal solution (logical process,
minimizing risks, maximizing probability of
success)
• Set course of action to implement decision,
by allocating resources, specifying action
steps and define target dates of completion
20
Guidelines for Communication
• Communicate with a clear purpose
• Select proper form to communicate - face-
to-face talk, phone conversation, emails,
video-conference, staff meeting, written
memos, web-posting, net-meeting
• Be honest and open, welcome
suggestions, offer pertinent information to
dispel fears
• Keep communications channels open 21
How to Communicate?
Asking
Te lling
Liste ning
U nde rstanding
22
2
3
Asking
• Asking open-ended insightful

questions to gain knowledge
and to improve
understanding of the
situation at hand
• Quality of questions is an
clear indication of the
questioner’s grasp of the
situation at hand
Telling
• Offer information to keep people (peers,

employees, bosses, supply chain partners,
customers) informed about matters of
concern to them
• Judgement is needed as to what to tell and
what not (“Need to Know” paradigm), seek
balance between (1) trust-creation and no
surprise versus (2) control over information
24
Listening
• Remain focused in listening to the subtext

and true meaning of the exchange
• Maintain eye contact
• Exercise self-discipline to control own urge
to talk and avoid interrupting others
25
Understanding
• To hear by the head and to feel by the

heart
• Assess the degree of sincerity - verbal
intonation, facial expression, body
language
• Recognize shared meaning (emotional
and logical)
26
2
7
Common Barriers to
Communications
• Semantics –
meaning of word
• Selective Seeing
• Selective Listening
• Emotional Barriers

Common Barriers to
Communications
• Interpretation of Semantics (words/terms may
have multiple meanings)
• Selective Seeing - See only what one wants
to see
• Selective Listening - Hear only what one
wants to hear (screen out ideas divergent to
own opinion or self-interest)
• Emotional Barriers (strong attitude and
feelings, personal biases)
28
Techniques of Communicating
• Know what one wants to say and say what
one means (some people want to impress
others, not to express themselves) -
“The answer is definitely a maybe”
“It is not probable, but still possible”
• Know the audience (tailoring to the receiver’s
frame of mind - belief, background, attitudes,
experience and vocabulary)
29
• Get favorable attention - Taking into account
of receiver’s interest and emotional standing
• Get understanding - Leading the exchange
from present to future, familiar to unfamiliar,
and agreeable to disagreeable
• Get retention - Repeat the ideas (Rule of
Four)
• Get feedback - Asking questions
• Get action to enhance communications
30
3
1
Motivating
• To motivate is to
apply a force that
excites and
drives an
individual to act,
in ways preferred
by the
manager/leader.
3
2
How to Motivate
• Inspire - Infuse a spirit of
willingness (By work
done, leadership traits,
examples set)
• Encourage - Stimulate
through praise, approval
and help
• Impel - Force (Coercion,
compulsion, punishments)

Techniques to Enhance Motivation
• Participation - Promoting ownership of
idea, project, task and program
• Communication - Objectives, metrics
• Recognition - Fair appraisals inducing
loyalty and confidence
• Delegated Authority - Convey trust
• Reciprocated Interest - Show interest in
Results
33
Keys for Successful Motivation
• Accept people as they are, not try to
change them - personal preference,
values and standards
• Recognize that other have drives to fulfill
own needs - self-actualization, recognition,
ego, self-esteem, group association, etc..
• Motivate by addressing the unsatisfied
needs - Maslow Need Hierarchy Model
34
3
5
Maslow Hierarchy Need Model
• Self Actualization - Self-

development and realization
Self A of own potential
Esteem • Esteem - Ego, recognition
Social • Social - Peer acceptance,
group affiliation
Safety
• Safety - Job security
Physiological Needs
• Physiological Needs -
Food & shelter
Maslow Hierarchy Need Model
• A higher level need only arises when lower

ones are already satisfied
• A satisfied need no longer dominates the
individual’s behavior, the next higher need
takes over
• An unsatisfied need acts as a motivator -
Central to need-based motivation strategy
• The top level needs are never fully
satisfied 36
Motivating Factors for
Professionals
• Scope of self expression and creativity,
having room for making decision, choosing
methods and utilizing own talents fully
• Independence with minimum supervision
• Recognition for achievements
• Variety of challenging work is motivating
• Pay and benefits are minor motivators
37
3
8
Selecting
• By selecting people,
managers gain staff
with right skills,
dedication, value
systems, personality,
and win their loyalty
over time
• Associate themselves
with the right mentors
and leaders

Standard Procedure of
Employee Selection Process
• Define needs
• Define qualifications
• Get applicants
• Review and pre-screen applicants
• Conduct interviews - Asking good
questions
• Decide on job candidates
39
Skills Assessment
• Hard skills - Technical capabilities readily

assessed (transcripts, reports and
references)
• Soft skills - Behavior in team work,
interpersonal skills, leadership quality,
cooperative attitude, mental flexibility and
adaptability - all related to personality -
psychological profile, value systems and
deep-rooted beliefs are difficult to evaluate
40
Challenges of Selecting
• Managers are not trained to assess soft

skills - major sources of job-related
problems and key factors for career
failures
• Candidates are polished to “Talk the talk
and walk the walk,” masking their true
long-term personal behavior
• Selecting people remains a major
challenge to all managers
41
Developing
• Purpose: To improve knowledge, attitude

and skills of employees
• Knowledge: Cognizance of facts, truths
and other information
• Attitude: Customary dispositions toward
people, things, situations and information
• Skills: Ability to perform specialized work
with recognized competence
42
How to Develop
People
Te am
Assignm e nts
Co urse s &
Se m inars
Job
Ro tation
Coach on
the Jo b
Se t
Pe rsonal
Exam ple
43
Guidelines for Employee
Development
• Emphasize employee’s role in
development (good for the individual and
company)
• Appraise present performance and future
potential
• Counsel for improvement (to induce self-
improvement, set example)
• Develop Successors - Career Planning
Plan of Some Progressive Companies 44
4
5
Special Topics on Leading
• Leading Changes
(Eight-step processes
to create and sustain
changes)
• New Leaders (Strategy
for First 6 months)
• Advice for Superior
Leadership (Eight
attributes and more)

Leading Changes
• Changes take time to set in and there are

eight critical steps to follow:
• (1) Establish a sense of urgency - Identify
marketing and other factors supporting the
urgent need for change, getting 75% of
corporate leaders on board
• (2) Form a powerful guiding coalition -
Secure shared commitment of top leaders
46
• (3) Create a vision - Have an easy-to-
communicate vision to direct the change
efforts
• (4) Communicate the vision - Using all
means available to spread the words
• (5) Empower others to act on the vision -
Encourage risk taking and removal of
systems/ people resisting change
47
• (6) Plan for short-term wins - Select
projects to achieve wins within the first one
to two years, in order to keep momentum
• (7) Consolidate improvements - modify
systems and promote people in favor of
changes
• (8) Institutionalize new approaches -
Ensure leadership
development/succession
48
Advice for New Leaders
• New Leaders - Sailing through dense fog

in first 6 months (short visibility ahead)
• Seven-rule strategy to follow:
• (1) Leverage the time before entry - Study
the new situation (SWOT analysis),
prepare questions
• (2) Organize to learn - Technical, cultural
and political arenas
49
• (3) Secure early wins - Get some wins in
first 6 months
• (4) Lay foundation for major improvements
- Initiate pilot programs to try out new
technology tools, Change ways to
measure performance, Introduce new
ways of operating and viewing business,
Promote positive examples, and Envision
new mechanism to do business
50
• (5) Create a personal vision - linking to
core value and be compatible with top-
priority projects
• (6) Build winning coalitions - linking with
powerful groups in top-management,
middle management and working groups
• (7) Manage own time and stress, Secure
technical, political and personal
advisement
51
Guidelines for Superior Leadership
• (1) Maintain absolute integrity
• (2) Be Knowledgeable
• (3) Declare expectations
• (4) Show uncommon commitment
• (5) Get out in front
• (6) Expect Positive results
• (7) Take care of people
• (8) Put duty before self-interests
52
• Strong drive for responsibility • Willingness to accept
and task completion consequence of decision
• Vigor and persistence in and action
pursuit of goals • Readiness to absorb
• Venturesomeness and interpersonal stress
originality in problem-solving • Willingness to tolerate
• Drive to exercise initiative in frustration and delay
social situation • Capacity to structure
• Self-confidence and sense of social interaction systems
personal identity to the purpose at hand

Conclusions
• Engineering Managers should pay attention
to: (1) Making decisions under uncertainty
(not suffering from paralysis by analysis), (2)
Motivating other engineers with proper
motivators, (3) Communicating by proactive
asking and intensive listening, (4) Selecting
to focus on soft skills, (5) Developing people
using personal examples.
54

Chapter 5 Leading

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Faculty of Business, Hospitality,

Accounting & Finance

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-2

• No single style fits all situations

• To cause people to take effective actions

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-5

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-7

Who is to Make What Decision?

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-14

• Techniques to accomplish assigned tasks

Collect Develop Implement

Assess Define Real Select

• Asking open-ended insightful

• Offer information to keep people (peers,

• Remain focused in listening to the subtext

• To hear by the head and to feel by the

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-27

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-32

Maslow Hierarchy Need Model

• Self Actualization - Self-

• A higher level need only arises when lower

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-38

• Hard skills - Technical capabilities readily

• Managers are not trained to assess soft

• Purpose: To improve knowledge, attitude

Special Topics on Leading

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-45

• Changes take time to set in and there are

• New Leaders - Sailing through dense fog

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-53

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