Principles of Management. Lecture - 8

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1 Principles of Management Lecture - 8

2 LEADERSHIP THEORIES TRAIT THEORY GHISELLI BASES OF INFLUENCE (POWER) FRENCH & RAVEN BEHAVIORAL THEORIES OHIO STATE UNIVERSITY BLAKE & MOUTON CONTINGENCY THEORIES FIEDLER HOUSE & MITCHELL VROOM & YETTON ROLE THEORIES MINTZBERG

3 TRAIT APPROACHES TO LEADERSHIP GHISELLI LEADERS ARE BORN, NOT MADE PHYSICAL CHARACTERISTICS APPEARANCE, HEIGHT, AGE PERSONALITY EXTROVERSION, PERSISTENCE, SELF-ASSURANCE, DECISIVENESS INTELLIGENCE KNOWLEDGE, ABILITY, JUDGMENT SOCIAL CHARACTERISTICS TACT, DIPLOMACY, SOCIABILITY, FLUENCY THE BIG FIVE PERSONALITY TRAITS *** EXTROVERSION (AMBITION, ENERGY) ** CONSCIENTIOUSNESS ** OPENNESS TO EXPERIENCE * EMOTIONAL STABILITY (SELF-CONFIDENCE) AGREEABLENESS

Trait Theories Traits Theories of Leadership

Leadership Traits: Ambition and energy The desire to

4 Trait Theories Traits Theories of Leadership Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders. Leadership Traits: Ambition and energy The desire to lead Honest and integrity Self-confidence Intelligence High self-monitoring Job-relevant knowledge

Trait Theories Limitations: No universal traits found that predict leadership in all situations. Traits predict behavior better in weak than strong situations.

5 Trait Theories Limitations: No universal traits found that predict leadership in all situations. Traits predict behavior better in weak than strong situations. Unclear evidence of the cause and effect of relationship of leadership and traits. Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.

6 Behavioral Theories Behavioral Theories of Leadership Theories proposing that specific behaviors differentiate leaders from nonleaders. Trait theory: Leaders are born, not made. Behavioral theory: Leadership traits can be taught.

7 Ohio State Studies Initiating Structure The extent to which a leader is likely to define and structure his or her role and those of subordinates in the search for goal attainment. Consideration The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinate s ideas, and regard for their feelings.

8 University of Michigan Studies Employee-Oriented Leader Emphasizing interpersonal relations; taking a personal interest in the needs of employees and accepting individual differences among members. Production-Oriented Leader One who emphasizes technical or task aspects of the job.

9 The Managerial Grid (Blake and Mouton)

10 THE MANAGERIAL GRID BLAKE & MOUTON (64) COUNTRY-CLUB TEAM (1,9) (9,9) CONCERN FOR PEOPLE (5,5) MIDDLE OF ROAD IMPOVERISHED TASK 1 (1,1) (9,1) CONCERN FOR PRODUCTION

11 Scandinavian Studies Development-Oriented Leader One who values experimentation, seeking new ideas, and generating and implementing change. Researchers in Finland and Sweden question whether there are only two dimensions (production-orientation and employee-orientation) that capture the essence of leadership behavior. Their premise is that in a changing world, effective leaders would exhibit development-oriented behavior.

12 Contingency Theories Fiedler s Contingency Model The theory that effective groups depend on a proper match between a leader s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader. Least Preferred Co-Worker (LPC) Questionnaire An instrument that purports to measure whether a person is taskor relationship-oriented.

13 Fiedler s Model: Defining the Situation Leader-Member Relations The degree of confidence, trust, and respect subordinates have in their leader. Task Structure The degree to which the job assignments are procedurized. Position Power Influence derived from one s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.

14 Findings from Fiedler Model

Cognitive Resource Theory Cognitive Resource Theory A theory of leadership that states that stress can unfavorably affect a situation and that intelligence and experience can lessen the influence of

15 Cognitive Resource Theory Cognitive Resource Theory A theory of leadership that states that stress can unfavorably affect a situation and that intelligence and experience can lessen the influence of stress on the leader. Research Support: Less intelligent individuals perform better in leadership roles under high stress than do more intelligent individuals. Less experienced people perform better in leadership roles under low stress than do more experienced people.

Unable and Unwilling Unable but Willing Able and Unwilling Able and Willing Follower readiness:

16 Hersey and Blanchard s Situational Leadership Theory Situational Leadership Theory (SLT) A contingency theory that focuses on followers readiness. Unable and Unwilling Unable but Willing Able and Unwilling Able and Willing Follower readiness: ability and willingness Leader: decreasing need for support and supervision Directive High Task and Relationship Orientations Supportive Participative Monitoring

17 Leadership Styles and Follower Follower Readiness Readiness (Hersey and Blanchard) Unwilling Willing Able Supportive Participative Monitoring Unable Directive Leadership Styles High Task and Relationship Orientations

18 Leader Member Exchange Theory Leader-Member Exchange (LMX) Theory Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.

19 Path-Goal Theory Path-Goal Theory The theory that it is the leader s job to assist followers in attaining their goals and to provide them the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.

20 The Path-Goal Theory

21 Leader-Participation Model Leader-Participation Model (Vroom and Yetton) A leadership theory that provides a set of rules to determine the form and amount of participative decision making in different situations.

22 Factors Affecting Style Leadership style may be dependent on various factors: Risk - decision making and change initiatives based on degree of risk involved Type of business creative business or supply driven? How important change is change for change s sake? Organisational culture may be long embedded and difficult to change Nature of the task needing cooperation? Direction? Structure?

23 4 Leadership styles S1: Telling S2: Selling S3: Participating S4: Delegating 4 Levels of Maturity M1: Low, Immature M2: Low to Moderate M3: Moderate to High M4: High, Mature Low Moderate 4 Levels of Maturity of Followers High M1 M2 M3 M4 Telling Selling Participating Delegating

24 4 Development Levels D1: Low competence, High commitment D2: Some competence, Low commitment D3: High competence, Variable commitment D4: High competence, High commitment Low Moderate High Development Levels of Followers D1 D2 D3 D4 S1: Tell S2:Sell S3: Participate S4: Delegate

25 Supportive Behavior Directive Behavior Participating Q3 S3: High Relationship Low Task D3: Able but unwilling or insecure Delegating Q4 S4: Low Relationship Low Task D4: Able/competent & willing/confident Mature Selling Q2 S2: High Relationship High Task D2: Unable but willing or confident Telling Q1 S1: Low Relationship High Task D1: Unable & unwilling or insecure Immature

26 Summary of Leadership Theories Theory Trait Theory Behavioral Theory Leadership Based On Leaders born with leadership traits Initial structure and consideration - Role Theory Shaped by culture, training, modeling - Managerial Grid Concern for production and concern for people Participative Leadership More people involved = better collaboration - Lewin s Style Autocratic, democratic, laissez-faire - Likert s Style Task oriented, relationship oriented, participative style Contingency Theories No one best leadership style - Fiedler s LPC Theory Task focus v. relationship focus - Cognitive Resource Theory Intelligence and experience make a difference - House s Path Goal Theory Help followers make their goals compatible with organizational goals Situational Leadership Similar to contingency theory - Hersey and Blanchard Based on relationship between leader and follower and task behavior - Vroom & Yetton Decision quality and decision acceptance

27 Motivation, Satisfaction, and Performance

28 Introduction (Cont.) Motivation is the psychological process that leads to Choice of behavior that results in Some level of job performance The Motivation-Behavior-Job Performance Sequence

29 Motivation Motivation is anything that provides direction, intensity, and persistence to behavior.

30 Needs Theories Maslow Herzberg Self-Actualisation Esteem Motivators Social Safety Hygiene Factors Physiological

31 Theories of Motivation Needs theories Maslow s hierarchy of needs Herzberg s two factor theory Process theories Expectancy Theory Goal Setting Theory

32 Expectancy Theory (Vroom) Individual Effort 1 2 Individual Performance Organisational Rewards 3 1. Effort-Performance relationship = Expectancy 2. Performance-Rewards relationship = Instrumentality 3. Rewards-Personal goals relationship = Valence Personal Goals Chapter 6

33 How Expectancy Theory Works Your tutor offers you 1 million if you memorise the textbook by tomorrow morning. Expectancy Instrumentality Valence Effort - Performance Link No matter how much effort you put in, probably not possible to memorise the text in 24 hours E=0 Performance - Rewards Link Your tutor does not look like someone who has 1 million I=0 Rewards - Personal Goals Link There are a lot of wonderful things you could do with 1 million V=1 Conclusion: Though you value the reward, you will not be motivated to do this task.

34 Goal Setting Goals Specific Difficult Accepted Effects on Person Directs attention Energises Encourages persistency New strategies developed Performance Feedback

35 Self-Motivation Self-fulfilment and satisfaction Difficult goals lead to higher performance Motivation to act depends on the attractiveness of the outcome

36 Motivation Direction Intensity Persistence

37 Defining Motivation Key Elements 1. Intensity: how hard a person tries 2. Direction: toward beneficial goal 3. Persistence: how long a person tries

38 Performance Performance concerns those behaviors directed toward the organization s mission or goals, or the products and services resulting from those behaviors.

39 Job satisfaction Job satisfaction deals with one s attitudes or feelings about the job itself, pay, promotion, or educational opportunities, supervision, co-workers, workload, and so on.

40 Three Major Needs Theories Maslow s Hierarchy of Needs ERG Theory Herzberg s Two-Factor Theory

41 MASLOW S Hierarchy Of Needs Self- Actualization Esteem Needs Belongingness & Love Needs Safety Needs Physiological Needs

42 Hierarchy of Needs The hierarchy has five levels: Physiological Needs: oxygen, water, protein, salt, sugar, calcium and other minerals and vitamins, shelter and sleep etc. Safety Needs: security, stability, protection from physical and emotional harm Belongingness & Love Needs: affection, belonging, acceptance, friendship, community Esteem Needs: (Internal ones are need for self-respect, confidence, autonomy, and achievement. External ones are need for respect of others, status, fame, glory, recognition and attention.) Maslow feels these are the roots to many, if not most of our psychological problems. Self-actualization: (doing that which maximizes one s potential and fulfills one s innate aspirations)

43 DEFICIT (D-NEEDS) If you don t have enough of something you have a deficit (need) Maslow's hierarchy seems to follow the life cycle. A baby's needs are almost entirely physiological. As the baby grows, it needs safety, then love. Toddlers are eager for social interaction, attention and affection. Teenagers are anxious about social needs, young adults are concerned with esteem and only more mature people transcend the first four levels to spend much time self-actualizing. Under stressful conditions, or when survival is threatened, we can regress to a lower level need.

44 BEING NEEDS (SELF-ACTUALIZATION) Needs that do not involve balance Once engaged, they continue to be felt Continuous desire to fulfill potentials ( be all you can be ) You need to have lower needs taken care of, at least to a considerable extent Only a small percentage of the population is truly, self-actualizing (approximately 2%)

45 Maslow s Hierarchy of Needs

46 E.R.G. Theory A variation of Maslow's hierarchy of needs Three groups of needs Existence needs: physical and material wants Relatedness needs: desires for interpersonal relationships Growth needs: desires to be creative and productive; to use one s skills

47 E.R.G. Theory (Cont.) Maslow hierarchy E.R.G. Theory Selfactualization Esteem Growth needs Relationship of Maslow s hierarchy to E.R.G. Theory. Belongingness and love Relatedness needs Safety Physiological Existence needs

48 E.R.G. Theory (Cont.) Both similar to and different from Maslow's need hierarchy Satisfied and unsatisfied needs operate in much the same way Movement upward is the same Movement downward is new

49 E.R.G. Theory (Cont.) Satisfaction-progression: move up the hierarchy as needs are satisfied Frustration-regression: move down the hierarchy when a need is frustrated Deficiency cycle: more strongly desire existence needs when they are unsatisfied Enrichment cycle: more strongly desire growth needs when they are satisfied

50 ERG Theory Alderfer s ERG Theory Existence Needs are desires for physiological and material well-being. Relatedness needs are desires for satis-fying interpersonal relationships. Relatedness Needs are desires for satisfying interpersonal relationships. Growth Needs are desires for continued psychological growth and development.

51 Herzberg s Two-factor Theory Herzberg s Two-factor Theory Hygiene Factor is found in the job context, such as working conditions, interpersonal relations, organizational policies, and salary. Motivator Factor is found in job content, such as a sense of achievement, recognition, responsibility, advancement, or personal growth.

52 Herzberg s Motivator-Hygiene Theory Early interview research with engineers and accountants Negative events: mostly involved a person's job context such as company policy and supervision Positive events: described aspects of the job and feelings of achievement Salary mentioned about the same number of times in negative and positive reports

53 Herzberg s Motivator-Hygiene Theory (Cont.) Dissatisfiers: items predominantly found in descriptions of negative events Could lead to high levels of employee dissatisfaction Improve the dissatisfiers and reduce dissatisfaction Not get higher satisfaction

54 Herzberg s Motivator-Hygiene Theory (Cont.) Satisfiers: items predominantly found in descriptions of positive events Could lead to high levels of employee satisfaction Their absence, or a person's failure to experience them, would not produce dissatisfaction

55 Herzberg s Motivator-Hygiene Theory (Cont.) Two distinct continua: one for satisfaction and one for dissatisfaction Not a single continuum with dissatisfaction on one end and satisfaction on the other Herzberg eventually called the satisfiers motivators; the dissatisfiers hygiene factors

56 Herzberg s Motivators Motivator-Hygiene Theory Achievement Recognition Work itself Hygiene factors (Cont.) Company policies and their administration Quality of supervision Working conditions

57 Herzberg s Motivator-Hygiene Theory (Cont.) Dissatisfiers distracted from the motivators Once the work context is improved, the manager can try to provide the motivators Use a process called job enrichment Add more responsibility and autonomy to the job Creates opportunity for employee to experience the motivators

58 Herzberg s Motivator-Hygiene Theory Empirical research Mixed results Methodological issues See the text book for details (Cont.)

59 Theory X and Theory Y (Douglas McGregor)

60 Functions of Communication Control Motivation Emotional Expression Information

61 The Communication Process Source Encoding Channel Decoding Receiver Feedback

62 Communication Fundamentals Direction: Downward Upward Crosswise Networks: Formal vs. Informal

63 Communication Networks Chain Wheel All Channels

64 Barriers to Effective Communication Filtering Selective Perception Emotions Language

65 Key Communication Skills Listening Skills Feedback Skills Presentation skills

66 Basic Communication Skills Profile Communication Order Learned Extent Used Extent Taught Listening First First Fourth Speaking Second Second Third Reading Third Third Second Writing Fourth Fourth First

67 Stages of the Listening Process Hearing Focusing on the message Comprehending and interpreting Analyzing and Evaluating Responding Remembering

68 Barriers to Active Listening Environmental barriers Physiological barriers Psychological barriers Selective Listening Negative Listening Attitudes Personal Reactions Poor Motivation

69 How to Be an Effective Listener What You Think about Listening? Understand the complexities of listening Prepare to listen Adjust to the situation Focus on ideas or key points Capitalize on the speed differential Organize material for learning

70 Communication Process Model Sender Transmit Message Receiver Form message Encode message Receive encoded message Decode message Noise Decode feedback Receive feedback Encode feedback Form feedback Transmit Feedback

71 Communication Barriers Perceptions Filtering Language Jargon Ambiguity Information Overload

72 The HURIER Model: Components of Effective Listening Hearing (paying careful attention to what is being said) Understanding (comprehending the messages being sent) Remembering (being able to recall the message being sent) Effective Listening Responding (replying to the sender, letting him or her know you are paying attention) Evaluating (not immediately passing judgment on the message being sent) Interpreting (not reading anything into the message the sender is communicating)

73 Information Overload Episodes of information overload Information Load Employee s information processing capacity Time

74 Problem: Overload: Problem Solved Overload (too many messages reaching a person at once) Message A Message B Message C Person Solutions: Use gatekeepers to control the number of incoming messages received Message A Message B Message C Gatekeeper Message C Person Use queuing to present messages in order Message A Message B Message C Person

75 Mean Percentage of Managers Preferring Media Oral vs. Written Communication: Preference for Media Depends on the Message Oral media are preferred for sending ambiguous messages. Written media are preferred for sending clear messages (88.3) (11.3) (32.1) (67.9) Oral Media Written Media Extremely ambiguous messages Extremely clear messages

76 Communicating Through Advantages of Messages quickly formed, edited, sent, and stored Needs little coordination Random information access Fewer social status barriers Problems with Information overload Flaming Interpreting emotions Lacks empathy or social support

77 Nonverbal Communication Actions, gestures, facial expressions, etc. Transmits most info in face-to-face meetings Influences meaning of verbal and written symbols Less rule bound than verbal communication Important part of emotional labour

78 Hierarchy of Media Richness Rich Media Richness Overloaded Zone Newsletters Face-to-face Telephone Oversimplified Zone Lean Routine/ Clear Situation Nonroutine/ Ambiguous

79 Communicating in Hierarchies Workspace design Employee surveys Newsletters and e-zines Management by walking around

80 Grapevine Characteristics Transmits information very rapidly in all directions Relatively accurate, but deletes details and exaggerates key points More active in homogeneous groups who easy communication access Most active when employees are anxious Usually follows a cluster chain pattern

81 Personal Communication Style The Nobel (someone who says what s on his or her mind) The Magistrate (blend between Noble and Socratic) The Senator (sometimes Noble and sometimes Reflective) The Socratic (someone who likes to argue his or her points fully) The Reflective (someone who would rather say nothing than to hurt someone else s feelings) The Candidate (blend between Socratic and Reflective)

82 Relative Proportion of Statements Internal vs. External Communications: Is There a Difference? More Statements Threats were used more than opportunities when communicating internally. Opportunities were used more than threats when communicating externally. External statements Fewer Statements Internal statements Threats Focus of Statements Opportunities

83 Cross-Cultural Communication Verbal differences Language Nonverbal differences Voice intonation Interpreting nonverbal meaning Importance of verbal versus nonverbal Silence and conversational overlaps

84 Gender Communication Differences Men Report talk Women Rapport talk Gives advice quickly and directly Gives advice indirectly and reluctantly Avoids asking for information Frequently asks for information Less sensitive to nonverbal cues More sensitive to nonverbal cues

85 Gender Issues in Leadership Male and female leaders have similar taskand people-oriented leadership. Participative leadership is used more often by female leaders. Women rated less favourably than equivalent male leaders due to stereotyping.

86 Getting Your Message Across Empathize Repeat the message Use timing effectively Be descriptive

87 Active Listening Process and Strategies SENSING Postpone evaluation Avoid interruptions Maintain interest RESPONDING Show interest Clarify the message ACTIVE LISTENING EVALUATING Empathize Organize information

88 Persuasive Communication Communicator Characteristics Expert Credibility Attractive Communication Medium Message Content Present all sides Few arguments Emotional appeals Inoculation effect Audience Characteristics Self-esteem Inoculated

Description of Module Food Technology Food Business Management

Subject Name Paper Name Paper No. 14 Module Name/Title Module Id Description of Module Food Technology Food Business Management Organizational Leadership FT/FBM/09 Objectives To know about difference between