principal ship presentation july 23, 2011

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` leadership style can be defined broadly as the

manner and approach of providing direction,

implementing plans, and motivating people.

` Bases of power refer to the methods that

managers and leaders utilize to influence their

employees.,



` David Knights and Darren McCabe explain that

"power should be understood to be a condition of

social relations.

` Thus, it is erroneous to ask who has power.

Instead, it is necessary to explore how power is

exercised."



` In turn, the nature of how power is exercised is a

workable definition for authority.

` In short, authority and power are intertwined, withpower being the ability to do things or have others

do what one has ordered while authority is the

foundation on which that power is built.



` Three different styles of leadership were identified

by Kurt Lewin, renowned social scientist, in 1939:

` authoritarian, democratic, and laissez-faire



` The authoritarian makes all decisions, independent of member's input. The authority figure dictates direction,leaving members in the dark about future plans. Theauthority figure selects which members will work

collaboratively and determines solely the work tasksfor the teams. This leader type is very personal in hispraise and criticisms of each member, but does notactively participate with the group, unlessdemonstrating to the group. The authority figure is

friendly and/or impersonal, but not openly hostile.



` The democratic leader welcomes team input and

facilitates group discussion and decision making.

This leader type shares plans with the group and

offers multiple options for group consideration.Encourages members to work freely with each

other and leaves division of tasks to the group.

This leader is objective in praise and criticism, and

joins group activities without over-participating.



` The l aissez-f air e leader allows the group complete

freedom for decision-making, without participating

himself. This leader type provides materials and

offers to assist only by request. The laissez-faireleader does not participate in work discussions or

group tasks. This leader does not offer

commentary on members' performance unless

asked directly, and does not participate or intervene in activities.



` Coercive power rests in the ability of a manager to

force an employee to comply with an order

through the threat of punishment. Coercive power

typically leads to short-term compliance, but in thelong-run produces dysfunctional behavior.



` In times of economic crisis or threats to thesurvival of the organization at large, coercion maycome to the forefront. Coercive power may alsomaterialize as organizations attempt to streamline

their operations for maximum efficiency. If employees must be fired, those who fail toconform to the organizational goals for survival willbe the most likely candidates for termination. The

threat of termination for failure to comply, in turn,is coercive power.



` Equally important as an effect on the recedingpopularity of coercion as a basis of power has beenthe influence of quality management theorists, such asPhilip Crosby and W. Edwards Deming. They

suggested that there is a decline in productivity andcreativity when coercive power is employed. The useof coercive power results in an atmosphere of insecurity or fear. In spite of this insight, coercion as abase of power continues to play a role even in those

organizations influenced by theories of qualitymanagement.



` Legitimate power rests in the belief among

employees that their manager has the right to give

orders based on his or her position. For example,

at the scene of a crime, people usually complywith the orders of a uniformed police officer based

simply on their shared belief that he or she has the

predetermined authority to give such orders.



` When reward power is used in a flexible manner, it

can prove to be a strong motivator, as Crosby,

Deming, and others have shown. Still, when

organizations rely too rigidly on rewards, thesystem can backfire. Employees may be tempted

to unethically or even illegally meet the quotas to

which overly rigid reward systems may be tied.



` Referent power derives from employees' respectfor a manager and their desire to identify with or emulate him or her. In referent power, themanager leads by example. Referent power rests

heavily on trust. It often influences employees whomay not be particularly aware that they aremodeling their behavior on that of the manager and using what they presume he or she would do

in such a situation as a point of reference.



` Another problem associated with rewards as a

base for power is the possibility that the rewards

will divert employees' attention from their jobs and

focus their attention instead on the rewardsdangled before them.



` When reward power is used in a flexible manner, it

can prove to be a strong motivator, as Crosby,

Deming, and others have shown. Still, when

organizations rely too rigidly on rewards, thesystem can backfire. Employees may be tempted

to unethically or even illegally meet the quotas to

which overly rigid reward systems may be tied.



` Huey describes Sam Walton, founder of Wal-Mart

Stores, Inc., as an active user of reward power.

Walton relies heavily on these intangible awards,

indicating that "nothing else can quite substitutefor a few well-chosen, well-timed, sincere words of

praise. They are absolutely free-and worth a

fortune".



` Referent power derives from employees' respectfor a manager and their desire to identify with or emulate him or her. In referent power, themanager leads by example. Referent power rests

heavily on trust. It often influences employees whomay not be particularly aware that they aremodeling their behavior on that of the manager and using what they presume he or she would do

in such a situation as a point of reference.



` Expert power rests on the belief of employees that

an individual has a particularly high level of

knowledge or highly specialized skill set.

Managers may be accorded authority based onthe perception of their greater knowledge of the

tasks at hand than their employees.



` Expert power has within it a built-in point of

weakness: as a point of power, expertise

diminishes as knowledge is shared. If a manager

shares knowledge or skill instruction with his or her employees, in time they will acquire a similar

knowledge base or skill set. As the employees

grow to equal the manager's knowledge or skills,

their respect for the superiority of his expertise

diminishes.



` Interestingly, in expert power, the superior may not

rank higher than the other persons in a formal

sense. Thus, when an equipment repair person

comes to the CEO's office to fix a malfunctioningpiece of machinery, no question exists that the

CEO outranks the repair person; yet regarding the

specific task of getting the machine operational,

the CEO is likely to follow the orders of the repair

person.



` Traditional theories such as those of French and

Raven, as well as the empowerment advocates of

the 1980s, such as Crosby and Deming, have

tended to approach power and authority as one-dimensional. By contrast, several experts have

more recently begun to reconfigure how power is

viewed to a more multidimensional interweaving of

relations or conflicting needs.



` For example, Robert Grant et al. described TQM's

consumer-focused goals and traditional

management's economic model of the firm as two

inherently opposed paradigms. Because these twoparadigms are grounded in two independent

sources of authority, they produce different but

coexisting dimensions of power.

It has also been argued that authority



` It has also been argued that authority is culturally

based. Geert Hofstede, in one of the most

thorough empirical surveys on cross-cultural

influences on work-related values, delineatedmarked differences in what he called "power

distance."



` The ways in which managers influence their

employees and encourage them to be productive

depend on many variables, including the

personality of the leader, the skills of thegroup/employees, the task or assignment at hand,

or the group dynamics and personalities of group

members. As with leadership styles, each base of

power has its place in management and can prove

effective in the right setting and right

circumstances.



` Amanager's style is determined by the situation, the needsand personalities of his or her employees, and by theculture of the organization. Organizational restructuring andthe accompanying cultural change has causedmanagement styles to come in and go out of fashion. Therehas been a move away from an authoritarian style of management in which control is a key concept, to one thatfavors teamwork and empowerment. Managerial styles thatfocus on managers as technical experts who direct,coordinate and control the work of others have been

replaced by those that focus on managers as coaches,counselors, facilitators, and team leaders.



` Participative management involves sharing

information with employees and involving them in

decision-making. Employees are encouraged to

run their own departments and make decisionsregarding policies and processes. It has often

been promoted as the quick cure for poor morale

and low productivity. It is not, however, appropriate

in every organization and at every level



` Employees must have the skills and abilities to

participate. Employees must have the technical

background, communication skills, and

intelligence to make decisions and communicatethose decisions effectively. The organization's

culture must support employee involvement and

the issues in which employees get involved must

be relevant to them.



` Douglas McGregor's Theory X assumes that people are lazy,they don't want to work, and it is the job of the manager to forceor coerce them to work. McGregor's Theory X makes three basicassumptions: (1) The average human being dislikes work andwill do anything to get out of it; (2) most people must be coerced,controlled, directed, and threatened or punished to get them to

work toward organizational objectives; and (3) the averagehuman being prefers to be directed, wishes to avoidresponsibility, has relatively little ambition, and places jobsecurity above ambition. According to this theory, responsibilityfor demonstrating initiative and motivation lies with the employeeand failure to perform is his or her fault. Employees are

motivated by extrinsic rewards such as money, promotions, andtenure.



` Theory Y suggests employees would behave differently if treateddifferently by managers. Theory Y assumes that higher-order needs dominate individuals. The set of assumptions for Theory Yis (1) the average human does not dislike work and it is asnatural as play; (2) people will exercise self-direction and self-control in order to achieve objectives; (3) rewards of satisfaction

and self-actualization are obtained from effort put forth to achieveorganizational objectives; (4) the average human being not onlyaccepts but also seeks responsibility; (5) human beings arecreative and imaginative in solving organizational problems; and(6) the intellectual potential of the average human is only partiallyrealized. If productivity is low and employees are not motivated,

then it is considered failure on the manager's part.



` Looking out for employees' well being satisfies the

lower-level needs. Incorporating group processes in

decision making satisfy middle-level needs and

encouraging employees to take responsibility for their

work and decisions satisfy higher-level needs. Manyfirms are increasing productivity by placing more

emphasis on group decision-making and teams. Firms

are also showing more concern for family-related

issues like childcare, flexible work schedules, andtelecommuting.



` William Ouchi studied management practices in theUnited States and Japan and developed Theory Z.Theory Z combines elements of both U.S. andJapanese management styles and is sometimescalled Japanese Management. It assumes that the

best management style involves employees at alllevels of the organization. Specific characteristicsincluded in Theory Z are long-term employment, lessspecialized career paths, informal control, groupdecision making, and concern for the individual rises

above work-related issues. This theory satisfies bothlower order and higher order needs.



` Total Quality Management (TQM) is amanagement style that integrates of all functionsof a business to achieve a high quality of product.The major hall-marks are customer satisfaction,

quality as the responsibility of all employees, andteamwork. As an integrated method, it involvesevery aspect of the company. The entireworkforce, from the CEO to the line worker, must

be involved in a shared commitment to improvingquality.



` Management by Walking Around (MBW A) is a classictechnique used by good managers who are proactivelisteners. Managers using this style gather as muchinformation as possible so that a challenging situationdoesn't turn into a bigger problem. Listening carefully

to employees' suggestions and concerns will helpevade potential crises. MBW A benefits managers byproviding unfiltered, real-time information aboutprocesses and policies that is often left out of formalcommunication channels. By walking around,

management gets an idea of the level of morale in theorganization and can offer help if there is trouble.



` Management by Objectives (MBO) is a company-

wide process in which employees actively

participate in setting goals that are tangible,

verifiable, and measurable. Management theorist

Peter Drucker pioneered this style in his 1954

book, T he P ractic e of M anag ement.



` There are four steps involved in the MBO process:setting goals, participative decision-making,implementing plans, and performance feedback. Topmanagers work with middle managers and middle

managers work with lower level managers to set goalsfor their departments. Each manager then works withemployees in the department to set individualperformance goals. The participative decision-makingstep allows managers and employees to jointly set

goals, define responsibility for achieving those goals,and set the evaluation process.



` Managers are allowed to implement their plans

and control their own performance. This step of

MBO utilizes every manager's expertise to benefit

the organization and permits managers to

continuously improve their skills.



` As with any other management style, the

organization's culture must be conducive for MBO

to work. Top management must be committed and

involved in the MBO program for it to be

beneficial. This management style is not without

its problems. Managers often set their

departmental goals and objectives too narrowly at

the expense of the organization's strategic goals

or objectives.



` Empowerment involves delegating the decision-making authority regarding the action to be takenon a task that is considered to be important toboth the manager and employee. The main

reasons for implementing an empowermentprogram are to provide fast solutions to businessproblems; to provide growth opportunities for employees and; to lower organizational costswhile allowing the manager to work on multipleprojects.



` Employee empowerment is the most effective whenmanagement has set clear obtainable goals anddefined specific accountability standards. The successof employee empowerment relies on the ability of management to provide resources such as time and

money; to provide support by way of legitimacy; and toprovide relevant and factual information so employeescan make educated decisions. Training employees totake responsibility and make sound decisions that aresupported by upper management as well as lower

level managers are other areas that are important tothe success of empowerment programs.



` Employees benefit from empowerment because

they have more responsibility in their jobs.

Employee empowerment increases the level of

employee involvement and therefore creates a

deeper sense of satisfaction and higher levels of

motivation. There are potential problems with

empowerment programs that often result in

unfavorable outcomes.



` Many times managers delegate trivial, unimportant

and boring tasks to employees and they retain the

complicated and important tasks for themselves.

Empowerment will not work unless the authority

and decision-making tasks are perceived as

meaningful by the employee.

principal ship presentation july 23, 2011

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