Autocratic or Democratic? Which Type of Construction Leaders Do You Prefer? Thomas Ho 20 November 2014

Transcription

1 Autocratic or Democratic? Which Type of Construction Leaders Do You Prefer? Thomas Ho 20 November 2014

2 What is Leadership? The famous Chinese philosopher Lao-tzu said : to lead the people, walk behind them As for the best leaders, the people do not notice their existence. The next best, the people honour and praise. The next, the people fear, and the next, the people hate when the best leader s works is done the people say, we did it ourselves.

3 What is Leadership? (Cont d) There are various definitions of leadership: Nuclear of a tendency An interaction between a person and the group members Reciprocal expectations between the leader and other members The process of directing and influencing the task-related activities of group members A process in which one person attempts to influence another to accomplish some goal or goals The individual in the group given the task of directing and coordinating task relevant group activities The manner in which the manager conducts himself in his role in order to obtain the best performance from the people he is managing

4 What is Leadership? (Cont d) By summarizing the similarities among the various definitions, leadership can be defined as: The process of influencing group activities, by interaction between the leader and the group, toward goal setting and goal achievement.

5 Process of Leadership The process of leadership can be divided into four stages of influences: 1. Assignment planning, direction, instruction 2. Implementation guide, monitor, delegate, support subordinates in their work 3. Evaluation control, review, critique, appraise 4. Reward reward and feed back information about the degree to which the subordinate s performance has achieved the stated goals

6 Theories of Leadership Trait Theories Style Theories Situational/Contingency Theories Handy s Best Fit Approach

7 Trait Theories The prevailing assumption was that leaders are born, not made, and successful leaders are set apart from others by virtue of their possession of these leadership traits: 1. Physical characteristics: age, appearance, height, weight 2. Social background: education, social status, mobility 3. Intelligence: superior judgement, decisiveness, knowledge, fluency of speech 4. Personality: adaptability, adjustment, aggressiveness and assertiveness, dominance, emotional balance and control, originality and creativity, personal integrity, self-confidence 5. Task-related characteristics: high motivation, drive and need for task accomplishment 6. Social characteristics: active participants in various activities, interact well with a wide range of people, co-operate with others, promote harmony and group cohesiveness Little proof that people possess above traits will become an effective leader

8 Style Theories The basis of the style theories was the belief that effective leader will use a particular behaviour or style to lead groups to achieve certain goals, resulting in high productivity and morale. i.e. effective leaders will be characterized by certain types of behaviour or style Task-orientated/Authoritarian the emphasis the leader places on getting the job done by such action as assigning and organizing the work, making decisions, and evaluating performance Employee-orientated/Democratic - the openness and friendless exhibited by the leader and his or her concern for the need of subordinates

9 Style Theories (Cont d) Which style is better? It is commonly assumed that people will produce more under democratic conditions than under authoritarian conditions because participation will tend to satisfy the self-actualization and esteem needs and will therefore release more effort Several studies were carried out, however the results revealed that no single style was the best

10 Situational/Contingency Theories One leadership style suitable for one occupation may not be suitable for other occupation The main theme of this theory is to look into the variables that permit certain leadership behaviours or styles to be more effective under a given situation The basis assumption is that the effect of a particular leadership will be varied depending on the situational factors i.e. there will be no one best way to lead

11 Situational/Contingency Theories (Cont d) Situational Factors: 1. Managerial Characteristics personality, needs, motives, past experience 2. Subordinates Factors personality, needs, motives, past experience 3. Group Factors stage of development of the project, group structure, group task 4. Organizational Factors leader s power base, rules and procedures of the organization, professionalism of the subordinates, time available for decision making process 5. Subordinates Behaviour motivation, productivity, satisfaction, turnover, absenteeism

12 Situational/Contingency Theories (Cont d) Various studies have been carried out by researchers and academics, some of the findings are as follows: Fiedler s Model Very favorable situation when Leader- Member Relations are good, Task Structure is high and Positon Power is Strong; Very unfavorable situation when Leader-Member Relations are poor, Task Structure is low and Position Power is weak House s Path-Goal Theory Instrumental (directive) leader behaviour is more effective than supportive (participative) behaviour for subordinates working on unstructured tasks; supportive (participative) leader behaviour results in high employee satisfaction when subordinates are performing structured and routine tasks

13 Situational/Contingency Theories (Cont d) Hersey and Blanchard s Theory the relationship between a leader and subordinates moves through four stages as subordinates develop and mature, and that leaders need to vary their leadership style in each stage to suit a particular style in each stage to suit a particular relationships Initial Stage High task-orientation Second Stage task-orientation & employeeorientated Third Stage supportive and considerate Mature Stage subordinates become confident, selfdirecting, experienced and work their own

14 Situational/Contingency Theories (Cont d) Handy s Best Fit Approach Four sets of Influencing Factors: 1. The leader his preferred style of operating and his personal characteristics 2. The subordinates their preferred style of leadership in the light of the circumstances 3. The task the job, its objectives and its technology 4. The environment the organizational setting of the leader, his group and the importance of the task

15 Situational/Contingency Theories (Cont d) Handy maintained that there is no such thing as right style of leadership, but that leadership will be most effective when the requirement of the leader, the subordinates and the task fit together If there is not a fit, the group will cease to function as a group or the task will not get done The three factors, leader, subordinates and task can be roughly placed along a scale that runs from tight to flexible as below: Tight Flexible

16 Situational/Contingency Theories (Cont d) A power leader will often pull the subordinates and the task towards him Alternatively he may adjust his style to the requirements of the other two factors Which factors to be adjusted for a fit? 1. short term to alter the style of leadership in particularly if the other two factors already have a degree of fit 2. long term to re-define the task or to develop the work group because style is relatively inflexible

17 Situational/Contingency Theories (Cont d) Success of adjustment depends on the environment Six key aspects of Environment 1. Position Power of the leader 2. Relationship of the leader to his group 3. Organizational norms 4. Structure and technology of the organization 5. variety of tasks 6. variety of subordinates

18 Situational/Contingency Theories (Cont d) Cognitive Resource Theory Low stress conditions leader intelligence is likely to contribute to group success High stress conditions leader with better job tenure and experience will perform better

19 Cultural Influences on Leaders Goh summarized Western culture and Chinese culture as follows: Western Culture egocentrism and individualism, the social unit is the person and not the group or the city. Individual will fight for his rights in pursuit of justice and not focus on mutual interests Chinese Culture homocentrism, emphasizes the social unit-be it family, society, community or country Chinese also emphasize on trust, face-saving, personal relationship, reasonableness, patience, long-term objectives, tenacious memory How about a Hong Kong Chinese?

20 Cultural Influences on Leaders (Cont d) Based on the studies from Evans et al, Hong Kong Chinese are basically loyal, hard working, emphasize on long-term relationship and saving face and prefer a hierarchical structure. By the influence of the Western Culture, the concept of individualism and egocentrism become more and more accepted by Hong Kong Chinese.

21 Nature of the Construction Industry Unique Temporary Temporary Construction Project Team from various firms and organizations Different/conflicting objectives Different factors and forces: 1. Internal (behavioural response, techniques and technology, decision making process, organisational setting and position of power) 2. External (Political, legal, institutional, cultural and sociological, technological, economic and competitive) Different contractual arrangements: 1. Conventional Type with Architect as the Project Leader 2. Conventional Type with Project Manager as the Project Leader Management Contract with Project Manager/Co-ordinator as the Project Leader 2. Civil Engineering Project with Engineer as the Project Leader

22 Leadership and Construction Management Functions Human Behaviour Maslow s Hierarchy of Human Needs basics needs, safety needs, social needs, self-esteem needs, selfrealisation needs. This suggests participative leadership style will be most effective in the mature stage of subordinates McGregor s Theory X (inherent dislike of works) and Theory Y (work is as natural as play or rest) These two extreme types of people indicate that some people prefer authoritarian leadership style and in the extreme, other prefer democratic leadership style

23 Leadership and Construction Management Functions (Cont d) System Theory Construction process is an open system which imports ideas, energy, materials, information etc. from the environment and transforms into its output, the finished construction such as buildings and infrastructure, hence it is subject to environmental forces

24 Leadership and Construction Management Functions (Cont d) Contingency Theory Stable-mechanistic organisation - more appropriate when 1. the environment is relatively stable and certain 2. the goals are well defined and enduring 3. the technology is relatively uniform and stable 4. routine activities and productivity is the major objective 5. Decision making is programmable and control processes tend to make a tightly structure, hierarchical system possible

25 Leadership and Construction Management Functions (Cont d) Adaptive-organic organization - more appropriate when 1. The environment is relatively uncertain and turbulent The goals are diverse and changing The technology is complex and dynamic There are many non-routine activities in which creativity and innovation are important Heuristic decision-making processes are utilized and coordination and control occur through reciprocal adjustments. The system is less hierarchical and more flexible

26 Leadership and Construction Management Functions (Cont d) Organization Structure of Construction Project Unique Amalgams of firms Different type of Contractual arrangements Different position power

27 Leadership and Construction Management Functions (Cont d) Decision Making Process Various decision making points in various stages of construction Democratic style - Initial evaluations, outline design strategies and selecting contractual arrangement etc. Autocratic style developing working drawings, preparing contract documentation, cost controlling etc.

28 Hypothetical Leadership Model in the Hong Kong Construction Industry Based on Handy s Best Fit approach, the project team will be most effective when the leader, the led, the task and the organizational setting all fit together along the tight-flexible scale Two extreme cases of combinations are both effective Case 1 Task-orientated leader + subordinates preferred to be directed + highly structured task + tight (mechanistic) organizational setting Case 2 - Employee-orientated leader + subordinates preferred to have a participative style of leadership + highly unstructured task + flexible (organic) organizational setting

29 General Leadership Characteristics of Project Manager and Project Leader Position Power is low Group members are mature professionals Leadership style must rely on influence and persuasion, other than on authority and commands Difference in task structure between design and construction stages different leadership styles are to be employed Design Stage task loosely defined, hence more democratic style Contract Documentation and Construction Stage task more clearly defined, hence more autocratic style Require recommendation more democratic style Decision is required more autocratic style

30 Results of the Research Research based on questionnaire, the results are as follows: Natural Leadership Style Project leaders of design and contract administration teams in Hong Kong are generally relationship-motivated and less concerned with task accomplishment Chinese leaders are more relationship-orientated than their Western counterparts and more concerned with maintaining good personal relationships with a harmonious working atmosphere Chinese Confucian doctrine on harmony, the collectivism characteristics, concept of saving face make leaders more sensitive to the feeling of others and suppress their directive behaviour

31 Results of the Research (Cont d) Actual Leadership Style 1. Different leadership styles are employed by the same leader which may be due to different situations More democratic in the feasibility study stage and precontract stage of works More autocratic in the post-contract stage of works Non-Executive Type project managers are tend to be more democratic throughout all stages of works Executive Type project managers are more democratic in the design stage and more autocratic in the construction stage

32 Results of the Research (Cont d) Sub-ordinates Preferred Leadership Style Members of the design and contract administration team are general neither too external nor internal External subordinates prefer a directive style of leadership Internal subordinates prefer a participative style of leadership

33 Results of the Research (Cont d) Task Structure The task structure in the Hong Kong Construction Industry varies from low to high with an average of medium Organization Setting Feasibility study stage within the range of task culture (organic) Pre-contract stage between task culture (organic) and role culture (Mechanistic) Post-contract stage within the role culture (mechanistic)

34 Results of the Research (Cont d) Leader-Member Relations Leader-member relations in construction project organizations are generally good indicating that the project leaders in Hong Kong are more concerned with maintaining good relationship with their project team members Position Power Position power of Executive Type project managers is generally higher Position power of Non-Executive Type project managers are usually low. The lower the position power, the more the participative style will be employed by the project leaders

35 Results of the Research (Cont d) Project Performance The performance in terms of job conditions and management conditions of construction projects is generally fair indicating that improvements in performance are necessary

36 Results of the Research (Cont d) Analysis of the Fit By performing linear regression and correlation between the degree of Mis-Fit and the project performance, a direct relationship was found between the degree of Fit of the situational variables and the project performance

37 Results of the Research (Cont d) Case Study 1. A Bank Project with management contract arrangement 2. A Hospital Project with conventional type of contract arrangement 3. A Civil Engineering work contract

38 Client Body Client s Subsidiary Property Management Company Project Co-ordinator Architect Structural Engineer E & M Engineer Quantity Surveyor Management Contractor Sub-Contractors Organization Structure of the Bank Project

39 (PLS)(TS) (M) (OS) (ACTL) Note: ACTL = Actual Leadership Score PLS = Subordinates Preferred Leadership Score TL = Task Structure Score OS = Organizational Setting Score M = Mean Score ( Best Fit Position) 0 = Tight 10 = Flexible Positions of Variables along the Tight-Flexible Scale

40 Results of the Research (Cont d) Analysis of the Fit The total value of Mis-Fit is 4.4 is small when compared to the largest value of Mis-Fit of 20 and hence the performance of the project is fair to good. The result is in agreement with the performance ratio obtained for this project Recommendations for Improvements To move the variable which is farthest away from the other variables and where these variables already have a certain degree of fit, therefore the actual leadership style need to be change to a less flexible style

41 Results of the Research (Cont d) Other Factors affecting performance 1. Tight construction programme, delay and prolongation/disruption costs incurred 2. detailed design works by sub-contractors which resulted in design co-ordination problems and interface problems 3. variation works were usually done before the prices were agreed which made cost control difficult 4. Inadequate project management functions exercised, the use of a Non-Executive Type project co-ordinator was inappropriate on such a large-scale project

42 Client Body Project Manager Architect Structural Engineer E & M Engineer Quantity Surveyor Contractor Organization Structure of the Hospital Project

43 (PLS) (M) (TS) (OS) (ACTL) Note: ACTL = Actual Leadership Score PLS = Subordinates Preferred Leadership Score TL = Task Structure Score OS = Organizational Setting Score M = Mean Score ( Best Fit Position) 0 = Tight 10 = Flexible Positions of Variables along the Tight-Flexible Scale

44 Results of the Research (Cont d) Analysis of the Fit The total value of Mis-Fit is 3.1 is small when compared to the largest value of Mis-Fit of 20 and hence the performance of the project is near the good end of performance scale. However the performance of this project was rated poor, therefore if Handy s Best-Fit approach is valid, there must be some other factors that distorted the result of the study Recommendations for Improvements The leader can alter his style from the original participative style to a more supportive (more autocratic) style

45 Results of the Research (Cont d) Other Factors affecting performance 1. The Architect was responsible for the administration of the contract, therefore the project manager s control of the project was weaken 2. Architect insisted to use materials above Government s standard resulted in abortive design and delay in programme 3. Proposal of using other type of contractual arrangement not approved by the Government which resulted in abortive contract documentation works and delay The project manager was too flexible and lost control in co-ordination of the work

46 Client Body Consulting Engineer Senior Resident Engineer Contractor Resident Engineer (Civil) Resident Engineer (Geotechnical) Resident Engineer (E & M) Quantity Surveyor Organization Structure of the Sewage Disposal Project

47 (M) (ACTL) (OS) (TS) (PLS) Note: ACTL = Actual Leadership Score PLS = Subordinates Preferred Leadership Score TL = Task Structure Score OS = Organizational Setting Score M = Mean Score ( Best Fit Position) 0 = Tight 10 = Flexible Positions of Variables along the Tight-Flexible Scale

48 Results of the Research (Cont d) Analysis of the Fit The total value of Mis-Fit is 5.1 which is higher than the previous two cases and hence the performance of the project is in a position from fair to poor of the performance scale. The performance of this project was rated as fair to poor which is in agreement with Handy s Best-Fit approach. Recommendations for Improvements The leader should alter his style from the autocratic to a more participative style and develop the work group towards him to achieve better performance

49 Results of the Research (Cont d) Other Factors affecting performance Inadequate supporting site staff Poor quality in design resulting claims Inadequate delegation of power and authority from the consulting engineer to the site management team which hindered the making of operational decisions and resulted in delay in programme

50 Autocratic or Democratic? Which Type of Construction Leaders Do You Prefer? THANK YOU