Leadership Full-Range

LECTURE 3: Leadership: Full-Range and Leader-Member Exchange (LMX) ● Full-Range Model • Transactional leadership – focuses on clarifying employees’ roles and task requirements and providing rewards and punishments contingent on performance • Transformational leadership – transforms employees to pursue organizational goals over self-interests – influenced by individual characteristics and organizational culture ● Transactional vs. Transformational The Best Leaders are Both Transactional and Transformational (Think about our discussion about Managers vs. Leaders.) Transformational Leaders have four key kinds of behaviors that affect followers… the 4 I’s. ● Transactional vs. Transformational ○ ● Transformational Leadership’s 4 “I’s” ○ 1. Inspirational Motivation: transformational leaders share a vision that transcends all employees, the right vision engages and motivates the workforce, unleashes human potential; transformational leaders have charisma (a form of personal attraction that inspires acceptance and support) [Welch shared his vision for GE with employees and motivated them to be the best.] 2. Idealized Influence: transformational leaders inspire trust; they have high ethical standards and act as models of desirable values [Welch worked by the same standards.] ○ 3. Individual Consideration: transformational leaders actively encourage employees to grow and excel by providing challenging job opportunities, empowerment, mentoring. [Welch mentored and grew people. His personal participation at GE’s Crotonville is legendary.] ○ 4. Intellectual Stimulation: transformational leaders are gifted communicators, they share SWOT and align people with the purpose of the organization; together we can conquer these challenges. [Welch described the challenges faced by GE & communicated his vision for how employees can conquer those challenges.] ● Implications of Transformational Leadership • It can improve results for both individuals and groups • It can be used to train employees at any level • It requires ethical leaders ● Leader-Member Exchange (LMX) • LMX emphasizes that leaders have different kinds of relationships with different subordinates – (focuses on the quality of the relationships; each relationship is unique) • There are two types of LMX interactions: – In-Group Exchange: partnership between leader/follower with mutual trust, respect, liking, sense of common fates; may receive special assignments, privileges – Out-Group Exchange: leaders are overseers and fail to create a sense of mutual trust, respect, liking, or common fates; receive less of manager’s time/attention ● Additional Perspectives • Servant leaders – focus on providing increased service to others - meeting the goals of both followers and the organization - rather than to themselves • E-leadership – can involve one-to-one, one-to-many, and withingroup and between-group and collective interaction via information technology ● Characteristics of the Servant Leader ○ ● Summary • General assumption of leadership theories… Leaders influence performance through their impact on individuals/groups. • The mechanisms by which this occurs… – Traits of the leader – Behaviors of the leader – Depends on situation or context – Depends on the followers • (quality of relationship between leader and follower) MODULE 15/16: LECTURE 1: Fundamentals of Communication ● Communication at Work Managers Spend 81% of Their Day Communicating Employers Screen Heavily for Communication Skills • E-mail communication with the employer • Quality of resume content (not necessarily format) • Phone communication • In-person interviews Be Weary of Listing Strong Communication Skills on Your Resume ● Communication Process Sender Transmits through a Medium and Receiver Responds • Sender: the person wanting to share information • Message: the information being communicated • Medium: the pathway by which the message travels • Receiver: the person for whom the message is intended ● Communication Process ○ ● Communication Process Also Involved in the Communication Process • Encoding: translating a message into understandable symbols or language • Decoding: interpreting and trying to make sense of the message • Feedback: receiver expresses her/his reaction to the sender’s message • Paraphrasing: when people restate in their words the crux of what they heard or read ● Communication Process Also Involved in the Communication Process • Noise: any disturbance that interferes with the transmission of a message • Jargon: terminology specific to that particular profession or group ● Selecting the Right Medium: Medium Richness Medium Richness • Indicates how well a particular medium conveys information and promoted understanding/learning Rich Medium • Best for nonroutine situations and to avoid oversimplification Lean Medium • Best for routine situations and to avoid overloading ● Selecting the Right Medium: Medium Richness ○ ● Formal vs. Informal Communication Channels Formal Communication Channel • Follow the chain of command; recognized as ofÏcial • Upward, downward, and horizontal communication Informal Communication Channel • Develop outside the formal structure and does not follow the chain of command ● Aspects of Informal Communication Channels Grapevine • UnofÏcial communication within the organization; rumor mill • Tends to be more active when formal communication is lacking Face-toFace Communication • Make time for face-to-face discussions • Listen more, talk less Group Meetings Like Town Halls or Webcasts ● Barriers to Communication Physical Barriers • Sound, time, space Personal Barriers • Individual attributes that hinder communication • Variable skills • Variations in the way we process and interpret communication • Variations in trustworthiness and credibility • Oversized egos • Faulty listening skills (i.e. mindlessness) • Generational differences ● Barriers to Communication Cross-Cultural Barriers • Culture encompasses the ideas, values, practices, and material objects that allow a group of people, even an entire society, to carry out their collective lives in relative order and harmony Nonverbal Communication • Messages sent outside of the written or spoken word • Eye contact • Facial expressions • Body movement and gestures ● Better Nonverbal Communication Skills ○ ● Tendencies Related to Gender Differences ○ LECTURE 2: Communicating in Organizations ● Demographics of social networking platform users: ○ ● Employment Recruiting with Social Media Organizations Use Multiple Channels to Recruit • 82% of companies report using social media to recruit, especially for passive candidates Channels Used • 96% use LinkedIn • 66% use Facebook • 53% use Twitter ● Employee Productivity Social Media’s Impact on Productivity is Context-Driven • Increases efÏciencies with communication, particularly among those who work remotely • Provides periodic breaks which enhance overall mental focus • Organizations resisting embracing social media in their workplace may be fighting a losing battle ● Employer Productivity ○ ● Social Media and Business Crowdsourcing • Using the internet and social media to enlist a group outside the organization for help solving problem Brand Recognition • Effective social campaigns generate customers and brand recognition ● Social Media and Business Social Media and Business Reputation Management • Create and enforce a social media policy for employees • Appoint experienced managers to monitor social media presence and respond quickly and appropriately to negative posts • Acknowledge there is a problem • Take the conversation ofÒine, if necessary ● Downsides to Social Media Cyberloafing • Using the internet at work for personal use Security • A system of safeguards protecting information technology against disasters, system failures, and unauthorized access that result in damage or loss ● Downsides to Social Media Privacy • The right of people not to reveal information about themselves Identity Theft • Thieves hijack your name and identity and use your good credit rating to get cash or buy things ● Improving Communication Effectiveness Defensive Communication • Aggressive, attacking, angry communication, or passive, withdrawing communication Nondefensive Communication • Assertive, direct, and powerful ● Improving Communication Effectiveness Using Empathy • The ability to recognize and understand another person’s feelings and thoughts Active Listening • The process of actively decoding and interpreting verbal messages Effective Writing and Speaking are Critical ○ ● VIDEO: In A Good Company MODULE 16: FINAL LECTURE ● Productivity ○ First Module– “The pursuit of organizational goals efÏciently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization’s resources.” ● Managing for Productivity ○ Productivity ■ outputs divided by inputs where: ● outputs are the goods and services produced ● Inputs are labor, capital, materials, and energy ● “For a company and for a nation, productivity is a matter of survival” (Jack Welch) ● Labor Productivity from the BLS ○ ● Control: When Managers Monitor Performance ○ Controlling ■ Monitoring performance, comparing it with goals, and taking corrective action as needed ● ● Why Is Control Needed? ○ 1. To adapt to change & uncertainty ○ 2. To discover irregularities & errors ○ 3. To reduce costs, increase productivity, or ○ 4. To detect opportuni;es ○ 5. To deal with complexity ○ 6. To decentralize decision making ● Steps in the Control Process add value & facilitate teamwork ○ ● Steps in the Control Process ○ 1. Establish standards ■ performance standard is the desired performance level for a given goal ■ best measured when they can be made quantifiable ○ 2. Measure performance ■ Usually obtained from written reports, oral reports, and personal observations ○ 3. Compare performance to standards ■ Management by exception – control principle that says managers should be informed of a situation only if data show a significant deviation from standards ○ 4. Take corrective action if necessary ■ Make no changes ■ Recognize and reinforce positive performance ■ Take action to correct negative performance ● The Balanced Scoreboard ○ Balanced scoreboard ■ Gives top managers a fast but comprehensive view of the organization via four indicators: ● (1) customer satisfaction ● (2) internal processes ● (3) innovation and improvement activities ● (4) financial measures ● The Balanced Scorecard: Four Perspectives ○ ● The Balanced Scorecard: Four Perspectives ○ Financial ■ Profitability, growth, shareholder value ○ Customer ■ priority is taking care of the customer ○ Internal business ■ quality, employee skills, and produc;vity ○ Innovation & learning ■ learning and growth of employees ● The Visual Representation of a Balanced Scorecard ○ Strategy map ■ Visual representa;on of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization ● The Strategy Map ○ ● Why Measure-Managed Firms Succeed ○ Top executives agree on strategy ○ Communicationis clear ○ There is better focus and alignment ○ The organizational culture emphasizes teamwork and allows risk taking ● Barriers to Effective Measurement ○ Objectives are fuzzy ○ Managers put too much trust in informal feedback systems ○ Employees resist new measurement systems ○ Companies focus too much on measuring activities instead of results ● Financial Tools for Control ○ Budget ■ Formal financial projection ○ Incremental budgeting ■ Allocates increased or decreased funds to a department by using the last budget period as a reference point ■ Only incremental changes in the budget request are reviewed ● Financial Statements ○ Balance sheet ■ Summarizes an organization’s overall financial worth – assets and liabilities - at a specific point in time ○ Income statement ■ Summarizes an organization’s financial results – revenues and expenses - over specified period of time ● Audits ○ Audit ■ formal verification of anorganization’s financial and operational systems ○ External– performed by outside experts ○ Internal – performed by organization’s own staff ● The Keys to Successful Control Systems ○ 1. They are strategic & results oriented ○ 2. They are timely, accurate, & objective ○ 3. They are realistic, positive, & understandable & encourage self-control ○ 4. They are flexible ● Barriers to Control Success ○ 1. Too much control ○ 2. Too little employee participation ○ 3. Overemphasis on means instead of ends ○ 4. Overemphasis on paperwork ○ 5. Overemphasis on one instead of multiple approaches ● Keys to Your Managerial Success ○ Find your passion and follow it. ○ Encourage self-discovery, and be realistic. ○ Every situation isdifferent, so be flexible ○ Fine-tune your people skills ○ Learn how to develop leadership skills ○ Treat people as if they matter, because they do ○ Draw employees and peers into your management process ○ Be flexible, keep your cool, and take yourself lightly ● Keys to Your Managerial Success: McKinnon’s Advice ○ Remember: ■ Your success as a manager is based on the performance of your employees ■ If you don’t really, really want to be a manager, don’t become one ■ If you really do want to be a manager, do all you can to be a good one ■ Don’t… ● Keys to Your Managerial Success McKinnon’s Advice ○ Remember: ■ Your success as a manager is based on the performance of your employees ■ If you don’t really, really want to be a manager, don’t become one ■ If you really do want to be a manager, do all you can to be a good one ■ Don’t be a Jerk! VIDEO: Balanced Scorecard