lead to turnover by i301aw


									Leadership and Culture

  The Difficulty of Strategic Change
    Approaches to the Study of
• Trait theories (emphasize HR selection?)
• Behavioral theories (emphasize HR
• Contingency theories
                 Trait Theories

• No set of traits that always occurs
• These traits are more strongly and consistently
  present in effective leaders:
   –   drive (high energy level)
   –   desire to lead
   –   honesty/integrity
   –   self-confidence
   –   intelligence
   –   job-relevant knowledge
         Behavioral Theories

• OSU (cont’d.)
• Rating high on both dimensions shows
  mostly positive results, however
  – high i.s. can lead to turnover, grievances
  – high consideration can lead to lower ratings by
    the leader’s manager
         Behavioral Theories

• Ohio State Studies - two categories of
  – initiating structure - imposing organization on a
  – consideration - concern for others; mutual
         Behavioral Theories

• University of Michigan studies also found
  two general dimensions
  – employee-oriented actions that were
    relationship driven
  – production-oriented actions that concentrated
    on the task
• UM studies viewed employee-oriented
  leaders as the most effective
          Behavioral Theories

• Blake and Mouton’s managerial grid
    – concern for people
    – concern for production
•   Team management (considered best)
•   Country club management
•   Task management
•   Impoverished management
•   M-O-R management
  Fiedler Contingency Model
• Match up the leader’s approach to employee
  interaction with position power and task structure
• Least-preferred coworker scale - determines basic
• Diagnose:
   – leader-member relations
   – position power
   – task structure
    Fiedler Contingency Model

• Leadership style may be
  – task-oriented
  – relationship-oriented
• A relationship-oriented style is best in
  moderately favorable situations
• A task-oriented style is best in either very
  favorable or unfavorable situations
          Path-Goal Theory

• Ensure unit’s goal compatibility with those
  of the organization
• Facilitate the progress of employees toward
  their goals
• Make valued rewards available in the
            Path-Goal Theory

• Leader behavior may be:
  –   directive
  –   supportive
  –   participative
  –   achievement-oriented
• Assumes that leaders can change their styles
  to in view of the work situation (in contrast
  to Fiedler’s model)
      Charismatic Leadership

• Charisma is a leader trait
• It is a form of interpersonal attraction that
  inspires support and acceptance
• Theory first proposed by House (path-goal
      Charismatic Leadership

• Three elements
  – leader must envision future, set high
    expectations, and model behaviors consistent
    with expectations
  – leader must energize others
  – leader must enable others
    Transformational Leadership

•   Goes beyond ordinary expectations
•   Inspires new ways of thinking
•   Stimulates learning by employees
•   Transmits a sense of mission
               Power Bases

•   Reward
•   Referent
•   Coercive
•   Legitimate
•   Information
•   Expert
    adapted from French and Raven
      Organizational Culture

• Values, norms and beliefs that are shared
  among employees and passed along to new
  organizational members
• Culture evolves, but often slowly
• Strong or weak - strong cultures exercise
      Organizational Culture

• Cultures may manifest themselves in
  – jargon
  – dress codes
  – unwritten rules
• Many of you work – what are some of the
  aspects of your organization’s culture?
• Insiders vs. outsiders
  – Insiders represent a “promotion from within”
  – Outsiders come from outside the organization
    but not necessarily from outside the industry
• Outsiders are more likely to be chosen if:
  – the last CEO was fired
  – no internal heir apparent
  – board has a large % of outside directors
               Organizational Decline

• Stages of organizational decline
  – blinded - decline begins
  – inaction - will things get better on their own?
  – faulty action - could be escalation of
    commitment or some other mistaken action
    (executive replacement most likely in this
              Organizational Decline

• Stages of organizational decline (cont’d.)
  – crisis - resources may be getting scarce; last
    chance for reversal in competitive environment;
    otherwise, slow decline continues; bankruptcy
    (for reorganization) an option
  – dissolution - sell company, its assets;
    bankruptcy (for disposal) possible
  Downsizing: A Tool for Decline
• Planned elimination of positions or jobs - a
  retrenchment strategy
• Guidelines
   –   Eliminate unnecessary work (not across the board cuts)
   –   Outsource
   –   Think in terms of investments
   –   Communicate
   –   Invest in remaining employees
   –   Transfer employees

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