- leadership_&_hcm-final

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Leadership and Human Capital Management

Participant Manual

1/1/2011

Prof. Vishwanath Joshi

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LEADERSHIP AND HUMAN CAPITAL MANAGEMENTCAPITAL MANAGEMENT

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What Is Leadership?

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What Do Leaders Do?

InfluenceInfluence othersothers toto dodo activitiesactivities toto fulfillfulfillaa sharedshared goalgoalDirectingDirecting andand managingmanaging changechange

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gg g gg g ggCreatingCreating visionvision forfor thethe organizationorganizationMotivatingMotivating && leadingleading peoplepeople forfor successsuccessCreatingCreating conditionsconditions necessarynecessary totoachieveachieve goalsgoals..

What do Leaders Do?

LEADERS

Create Vision & Values

Overcome resistance to

change

Create Conditions of Empowerment

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Reward Appropriate Behaviors

Encourage others to lead

change

Create Followers who

Achieve Continual Renewal

Build Capabilities

Leadership & Human Capital Management

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Vision/Creates the future/New markets/Sees forest

Operational/Improve present/Immediate financials/Sees trees

Direction Setting

Originates / Focus on people, Looks outward/Investigates reality

Initiates / Focus on things / Inward looking/ Accepts reality

Thinking ProcessLeaderManager

MANAGER AND A LEADER – An Understanding

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Values & Principles/Ideas and People/Strives to excel / Serves clients

Policies/Rules/Procedures/Expectations/Serve top mgmt.

Decision Methods

Effectiveness/What & Why / Creates change

Efficiency/How & When/Manage change

Mode of operating

Empower/Associates/Learns/Trusts & Develops

Tight control/Subordinates/Instructs/Directs and coordinates

Employee Relations

ComplexityPlanning &

ChangeSetting Direction --

Rational Intuitive

Managers Leaders

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Planning & budgeting targets/goalsOrganizing & staffingControlling & problem solving

Setting Direction --VisionsAligning PeopleMotivating “Inspiring/Moving”

Roles of the “Manager”

INTERPERSONAL ROLES

FigureheadLeaderLiaison

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INFORMATIONALROLES

DECISIONALROLES

EntrepreneurDisturbance HandlerResource Allocator

Negotiator

MonitorDisseminatorSpokesperson

Basic Styles of Leadership

Autocratic: leader tells workers what to do.(Theory X workers: the traditional view ofmanagement that suggests that managersare required to coerce, control, or threaten

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employees in order to motivate them)Participative: leader allows and expectsworker participation.(Theory Y workers: A view of managementby which a manager believes people arecapable of being responsible and mature)


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Basic Styles of Leadership

Democratic: leader seeks majority rulefrom workers. (Theory Y workers)

Laissez faire: leader lets group

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Laissez - faire: leader lets groupmembers make all decisions. (Specialistworkers)

Basic Approaches to Leadership

TRAIT THEORIES OF LEADERSHIP

BEHAVIORAL THEORIES OF LEADERSHIP

Ohio Studies ( Initiating Structure VsConsideration)

Michigan Studies ( Employee VsProduction Oriented)

Managerial Grid ( Concern for People VsProduction)

Fiedlers’ Contingency Model ( LeaderMember Relations, Task Structure,

Theories of Leadership

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CONTINGENCY THEORIES OF LEADERSHIP

(1970-1990)

Position Power)

Cognitive Resource Theory ( Impact ofstress)

Hersey & Blanchard ( Style Vs Followers’Readiness)

Leader-Member Exchange Theory (Timepressure & Special Relationship

Path Goal Theory

Leader-Participation Model

INSPIRATIONAL LEADERSHIP

My Philosophies

“People are lazy, need to be forced,have no ambition, they just want security!”

THEORY X“Work is Natural; people force themselvesWork is Natural; people force themselvesin work that is good and rewarding,people seek responsibility & people aresmart!”

THEORY Y

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Contingency Theories

Trait Theories

Behavioral Theories

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Trait Theories

Leadership TraitsLeadership Traits::•• Ambition and energyAmbition and energy•• The desire to leadThe desire to lead

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•• Honesty and Honesty and integrityintegrity

•• SelfSelf--confidenceconfidence•• IntelligenceIntelligence•• JobJob--relevant relevant

knowledgeknowledge

Trait Theories

LimitationsLimitations::

•• No universal traits that predict leadership in all No universal traits that predict leadership in all situations.situations.

•• Traits predict behavior better in “weak” thanTraits predict behavior better in “weak” than

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•• Traits predict behavior better in “weak” than Traits predict behavior better in “weak” than “strong” situations.“strong” situations.

•• Unclear evidence of the cause and effect of Unclear evidence of the cause and effect of relationship of leadership and traits.relationship of leadership and traits.

•• Better predictor of the appearance of Better predictor of the appearance of leadership than distinguishing effective and leadership than distinguishing effective and ineffective leaders.ineffective leaders.



Trait Theories

Behavioral Theories

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Behavioral Theories

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•• Trait theory:Trait theory:Leaders are born, not made.Leaders are born, not made.

•• Behavioral theory:Behavioral theory:Leadership traits can be taught.Leadership traits can be taught.

Ohio State Studies1940

Behaviors that attempt to:Behaviors that attempt to:•• Organize workOrganize work•• Work relationshipsWork relationships•• GoalsGoals

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Behaviors that attempt to show:Behaviors that attempt to show:

•• Concern for followers’ comfortConcern for followers’ comfort•• WellbeingWellbeing•• Status and satisfactionStatus and satisfaction

University of Michigan Studies

• Emphasized interpersonal relations• Took personal interests in the needsof their employees• Accepted individual differencesamongst their employees

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• Emphasized technical / tasks aspectsof work• Main concern was taskaccomplishment• Members were a means to an end

The Managerial

Grid

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The Managerial GridThe Managerial Grid

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The Managerial Grid9.1 authority obedience: operating efficiency throughcontrols.1.9 country club management: leader is thoughtful,comfortable, and friendly with little concern foroutput.

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5.5 organization man management: A balancedapproach- concern for work in exchange forsatisfactory level of morale.9.9 team management: high output throughcommitted people, achieved through trust, respect,and interdependence.1.1 impoverished management: little concern foreither people or production.



Trait Theories

Behavioral Theories

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Contingency Models of Leadership

Traits

Behaviors

SITUATIONS

EFFECTIVE LEADERSHIP

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Contingencies•Group’s Characteristics•Leader’s Characteristics•Employees’ Characteristics•Orgn. StructureCharacteristics

Leaders’ Behavior Employees’ Behavior

Influences

Feedback


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Situational Leadership-Hersey & Blanchard

The framework of H&B weighs interplayof three variables:Amount of direction and guidance a

l d i t k b h i

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leader gives-task behavior.Amount of support he gives- relations

behavior.Readiness of followers to perform the

task-maturity.

Hersey and Blanchard’s Styles of Leadership

There are four styles of leadership for the four levels of maturity of the followers

- High task, low relationship TELLING

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High task, low relationship TELLING

- High task, high relationship SELLING

- High relationship, low task PARTICIPATING

- Low relationship, low task DELEGATING

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Hersey and Blanchard’s Situational Leadership Theory

Situational Leadership Theory (SLT)

A contingency theory that focuses on followers’ readiness.

Unable andUnable and Unable butUnable but Able andAble andAble andAble and

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Leader: decreasing need for support and supervisionLeader: decreasing need for support and supervision

Follower readiness: ability and willingness

Follower readiness: ability and willingness

Unable andUnable andUnwillingUnwilling

Unable butUnable butWillingWilling

Able andAble andWillingWilling

DirectiveDirective High Task and Relationship High Task and Relationship OrientationsOrientations

Supportive Supportive Participative Participative

Able andAble andUnwillingUnwilling

MonitoringMonitoring


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Situational LeadershipSituational Leadership

Low RegulatingHigh NurturingConsulting Approach

High RegulatingHigh NurturingSupportive Approach

REGULATI

High

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ConsultantConsultant MentorMentor

Low RegulatingLow NurturingDelegating Approach

CoachCoach

High RegulatingLow NurturingDirective Approach

CounselorCounselor

Low NURTURING BEHAVIOR High

ING

BEHAVIOR

Level 5 Leadership

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Two sides of Level 5 Leadership

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Organizational Power and Politics

Leadership Influences


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What is Power

A Capacity that A has to influenceinfluencethe behavior of B so that B actsacts inaccordance with A’s wishes

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accordance with A s wishes.

Contrasting Leadership and Power

LeadershipFocuses on goal achievement.Requires goal compatibility with

PowerUsed as a means for achieving goals.Requires follower dependency.

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compatibility with followers.Focuses influence downward.

Research FocusLeadership styles and relationships with followers.

dependency.Used to gain lateral and upward influence.

Research FocusPower tactics for gaining compliance.

Bases of PowerCoercive Power: A power base dependant on fear.

Reward Power: Compliance achieved based on the ability to distribute rewards that others view as valuable.

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Legitimate Power: The power a person receives as a result of his / her position in the formal organization.

Information Power: Power that comes from access to and control over information.

Expert Power: Influence based on special skills and knowledge.

Personal Power

Referent Power: Influence based on possession by anindividual of desirable resources or personal traits.

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Charismatic Power: An extension of referent powerstemming from an individual’s personality andinterpersonal style.


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Sources of Power in Organizations

Interpersonal SourcesInterpersonal Sources

•• RewardReward

•• CoerciveCoercive

•• LegitimateLegitimate POWER

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•• ExpertExpert

•• ReferentReferent

Structural SourcesStructural Sources

•• KnowledgeKnowledge

•• ResourcesResources

•• Decision MakingDecision Making

•• NetworksNetworks

Dependency: The Key To Power

The General Dependency Postulate

The greater B’s dependency on A, the greater the power A has over B.

Possession/control of scarce organizational resources that others need makes a manager

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resources that others need makes a manager powerful.

Access to optional resources (e.g., multiple suppliers) reduces the resource holder’s power.

What Creates Dependency

Importance of the resource to the organization

Scarcity of the resource

Non substitutability of the resource

Power Tactics

Tactical Dimensions:

Power tactics

Ways in which individuals translate power bases into specific actions

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Tactical Dimensions:

• Reason & Friendliness

• Coalition & Bargaining

• Assertiveness

• Higher authority & Sanctions

1.1. Forming coalitions and alliancesForming coalitions and alliances

2.2. Controlling access to individualsControlling access to individuals

3.3. Controlling access to informationControlling access to information

Common tactics individuals use to become powerful in organizations

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4.4. Controlling access to resourcesControlling access to resources

5.5. Setting the agendaSetting the agenda

6.6. Attacking othersAttacking others

7.7. Managing the impressionManaging the impression


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Use of Power Tactics: From Most to Least Popular

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Power in Groups: Coalitions• Seek to maximize their

size to attain influence.

• Seek a broad anddiverse constituency forsupport of their

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support of theirobjectives.

• Occur more frequently inorganizations with hightask and resourceinterdependencies.

• Occur more frequently iftasks are standardizedand routine.

Sexual Harassment: Unequal Power in the Workplace

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Politics: Power in Action

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Politics is in the Eye of the Beholder

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Factors That Influence Political Behaviors

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Employee Responses to Organizational Politics

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Defensive BehaviorsAvoiding Action:

• Over-conforming

• Buck passing

• Playing dumb

• Stretching

Avoiding Blame:

• Bluffing

Playing safe

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• Stalling • Playing safe

• Justifying

• Scape-goating

• MisrepresentingAvoiding Change:

• Prevention

• Self-protection


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Is Political Action Ethical?

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UtilitarianismUtilitarianism RightsRights JusticeJustice

Games People Play

1. If it weren’t for you : Blaming others:You are not OK!2. See what you made me do: Blaming others: You are

not Ok!

3. I’m only trying to help you: Saving others: You are not OK!

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not OK!4. What would you do without me: Saving others: You

are not OK!5. Now I’ve got you, you SOB: Getting even: You are not

Ok!

6. Kick me: Provoking put downs: I’m not OK!7. Poor me: Enjoying misery: I’m not OK!

Organizational Culture

“ Culture is what people do when no one is looking!”

Organization Culture

Organizational Culture is a pattern ofbeliefs and expectations shared by themembers of the organization. Thesebeliefs and expectations produce normsbeliefs and expectations produce normsthat powerfully shape the behavior ofindividuals and groups in theorganizations. – Schwartz & Davis

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Organizational Culture

Organizational Culture represents acomplex pattern of beliefs,expectations, ideas, values, attitudesand behaviors shared by theand behaviors shared by themembers of the organizations.

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Know your organizational culture

Does the company emphasize followingestablished processes to complete atask, or does it just care about results?Is management hands-on or hands-off?Is management hands on or hands off?What is the company's attitude towardtechnology?Are flextime and telecommutingacceptable?Do managers work side by side withtheir staff or do they work in offices?

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Factors Shaping Organizational Cultures

Influence of a dominant leaderCompany history and traditionTechnology, products and servicesThe industry and it’s competitionCustomersCustomersCompany expectationInformation and control systemsLegislation and company environmentProcedures and policiesReward systems and measurementsOrganizational resourcesGoals, values and beliefs

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Methods of maintaining organizational culture

What managers and teams pay attention toReactions to Incidents and crisesRole Modeling, Teaching and CoachingAllocation of Rewards and StatusEmployees also learn about the organizationalculture through its reward systems.Recruitment, Selection, Promotion andRemovalRites, Ceremonies and Stories

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More specifically, organizational culture includes:

Routine behaviors when people interact, suchas organizational rituals and ceremonies andthe language commonly usedThe norms that are shared by the teamsth h t th i ti h “ llthroughout the organization, such as “allmeetings shall be attended on time”The dominant values held by the organization,such as “product quality” or “price leadership”

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More specifically, organizational culture includes:

The philosophy that guides an organization’spolicies towards it’s employees and customersThe rules of the game for getting along in theorganization or the “ropes” that a new comermust learn in order to become an acceptedmust learn in order to become an acceptedmember; andThe feeling or climate conveyed in anorganization by the physical layout and theway in which managers and employees interactwith customers and others outside.

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Bureaucratic CultureValues formality, rules, standard operatingprocedures and hierarchical coordinationLong-term concerns of bureaucracy arepredictability, efficiency and stability.Behavioral norms support formality overpp yinformality.Managers view their role as good coordinators,organizers and enforcers of written rules andstandards.Tasks, responsibilities and authority for employeesare clearly defined. The organization’s many rulesand processes are spelled out in manuals andemployees believe their duty is to follow them.

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Clan CultureTradition, loyalty, personalcommitment, extensivesocialization, teamwork, self-management and socialinfluenceIts members recognize anobligation beyond the simpleexchange of labor for a salary.

Longtime clan membersserve as mentors and rolemodels for the newermembers.These relationshipsperpetuate organization’snorms and values over

i ti fThey understand thatcontributions to theorganization exceed beyond thecontractual agreements.Loyalty is rewarded by security.Because the individuals believethat organization will treatthem fairly in all respects andaspects, they hold themselvesaccountable to the organizationfor their actions.

successive generations ofemployees.Members share a sense ofpride in membership.They have a strong sense ofidentification and recognizethe interdependence.Depending on the types ofnorms, the culture may ormay not generate risktaking behaviors orinnovation.

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Entrepreneurial CultureHigh levels of risk taking, dynamism andcreativity.Commitment to experimentation, innovationand being on the leading edge.This culture doesn’t just quickly react toThis culture doesn t just quickly react tochange in the environment – it creates change.Effectiveness means providing new and uniqueproducts and rapid growth.Individual initiative, flexibility and freedomfoster growth and are encouraged and wellrewarded.

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Market CultureAchievement of measurable anddemanding goals, financial andmarket based (eg., salesgrowth, profitability and marketshare)Hard-driving competitivenessand profit orientation prevailthroughout the organization.

The organization does notpromise (or imply) security andthe individual does not promise(or imply) loyalty.In this culture, superior’sinteraction with subordinateslargely consist of negotiatingperformance – rewardagreements and/or evaluatingg g

The relationship between anindividual and the organizationis contractual.There is a clear agreement onwhat one can expect from theother and the formal controlorientation is quite stable.The individual is responsible forsome level of performance andthe organization promises aspecified level of rewards.The market culture is often tiedto monthly, quarterly andannual performance goals basedon profits.

agreements and/or evaluatingrequests for resource allocation.The absence of a long-termcommitment of both the partiesresult in a weak socializationprocess. Social relations amongcoworkers aren’t officiallyemphasized, and few economicincentives are tied to directlycooperating with peers.The pure official relationshipsshared by the members witheach other may not result inpersonal network.

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Interpersonal Interactions Model

IfIf badlybadly managedmanagedtherethere isis rulerule byby fear,fear,abuseabuse ofof powerpower forforpersonalpersonal gain,gain, andandpoliticalpolitical intrigueintrigue..

StrongStrong leadersleaders areareneededneeded toto distributedistributeresourcesresources.. LeadersLeadersareare firm,firm, butbut fairfair andandgenerousgenerous toto loyalloyalfollowersfollowers..

PowerPower CultureCulture

AA possiblepossible downsidedownsideisis sustainingsustaining energyenergyandand enthusiasmenthusiasm overovertimetime..

RewardsRewards results,results, notnotunproductiveunproductive effortsefforts..WorkWork teamsteams areare selfself--directeddirected.. RulesRules andandstructurestructure serveserve thethesystem,system, notnot anan endendbyby themselvesthemselves..

AchievementAchievement cultureculture::

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Interpersonal Interactions Model

••WeaknessWeakness isis aapossiblepossible internalinternalcommitmentcommitment withoutwithoutanan externalexternal tasktaskfocusfocus..

EmployeeEmployee isis valuedvalued asasaa person,person, asas wellwell asas aaworkerworker.. EmployeeEmployeeharmonyharmony isisimportantimportant..

SupportSupport CultureCulture

••WeaknessWeakness isisimpersonalimpersonal operatingoperatingproceduresprocedures andand aastiflingstifling ofof creativitycreativityandand innovationinnovation

RuleRule ofof lawlaw withwith clearclearresponsibilityresponsibility andandrewardreward systemsystem..ProvidesProvides stability,stability,justice,justice, andandefficiencyefficiency..

RoleRole CultureCulture

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Bolman and Deal’s Theory of FourBolman and Deal’s Theory of Four--Frame Leadership StylesFrame Leadership Styles

Organizational Culture & Leadership Styles

Self Assessment

Structural Frame (SF)the assembly plant

Emphasizes efficiency and effectiveness.Structural leaders make the rationaldecision over the personal, and strive toachieve organizational goals and objectivesthrough coordination and controlthrough coordination and control.Value accountability and critical analyses.Specialization and division of labor are usedto increase performance levels.Problems in performance may result inrestructuring

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Human Resource Frame (HuRe)the clan

Emphasizes the individualHuman resource leaders valuecamaraderie and harmony within thework environment, and strive towork environment, and strive toachieve organizational goals throughmeaningful and satisfying work.Recognize human needs and theimportance of congruence betweenthe individual and the organization.

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Political Frame (PoF) the coliseum

Emphasizes competitionPolitical leaders value practicality andauthenticity, and strive to achieveorganizational goals through negotiationand compromiseand compromise.They recognize the diversity of individualsand interests, and compete for scarceresources regardless of conflict.Power is an important resource

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Symbolic Frame (SyF) the shrine

Emphasizes meaningSymbolic leader value the subjective,and strives to achieve organizationalgoals through interpretative rituals andgoals through interpretative rituals andceremonies.Recognize that symbols give individualsmeaning, and provide direction towardsachieving organizational purpose.They recognize unity and a strongculture and mission

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Octapace

The Octapace Inventory was developedespecially for Indian OrganisationsAnd believes that 8 Values are neededFor strong ‘Institution Building’For strong Institution BuildingOpenness, Confrontation, Trust, AuthenticityProactivity, Autonomy, Collaboration andExperimentation

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Leadership Communication

“Just more than information sharing..”

When Leaders Communicate…

INFORMINSPIRE & MOTIVATEENGAGE AND EDUCATE

BUILD Strong, Healthy, Self Sustaining,

Long term, Mutually beneficial

RELATIONSHIPS

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Framing: Using Words to Shape Meaning and Inspire Others

Framing is a way to use language tomanage meaning.Way for leaders to influence howevents are seen and understoodevents are seen and understood.Involves selection and highlighting ofone or more aspects of a subject whileexcluding others.

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Leader’s Communication Effectiveness

RapportTrust and CredibilityKnowledge and InformationCompetenceListening and Understanding

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Communication and Interpersonal Relationships

Relationships at work, especially a teammembers’ relationship with his or hersupervisor, are a HUGE part of a person'sproductivity.

You make my work sing when you:Treat me as a colleague — not as a

"subordinate"Let me know that you believe I can succeedShow that you trust meLet me see you as a person

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What ‘Communicates’ Trust

Give credit where it's dueTake responsibility for your mistakesShare information openlyThink in terms of "us," not "me and them",Assure that each person’s role is clear, to you,to the person, and to the departmentVoice concerns or conflicts easily and directlySpeak positively about the team and the work

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Effective Feedback

… is a matter of giving it and taking it.

Constructively given

Growth

Defe

nsi

vely

taken

Destructively given

G o tandChange

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Giving Feedback

Individualized to fit the specific personand situation;Focused on the behavior or action youare concerned with not on the personare concerned with, not on the personor their personality;Delivered in a timely fashion, as soon aspossible after the positive or negativeaction and before the next performance.Open Body language

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Leadership and Motivation“Have to” Vs “Can’t wait to” MotivationThree Qualities of Motivation

ENERGYFind what energizes each employeeFind ways to furnish that kind of workReward them for doing it

DIRECTIONSet Goals…that make sense and participatively

SUSTAINNever take the hard work for grantedIt is necessary to keep motivating

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A Culture of Candour


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LeadershipNeed Vision, yes…butFacts are better than dreamsNeed a Climate where the truth is heard

Lead with questions, not answersEngage in a dialogues and debate, not coercionConduct autopsies…without blameBuild ‘red flag’ mechanisms

Unwavering faith and brutal factsThe Stockdale paradox

Retain faith that you will prevail in the end, regardlessof difficulties AND at the same timeConfront the most brutal facts of your current reality,whatever they may be

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A Culture of Candor

Do you have an atmosphere of candidcommunication?Are people engaging in ‘superficialcongenialit ’ d ing meetings?

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congeniality’ during meetings?Do people say ‘yes’ when they reallymean ‘No’?Are people comfortable speaking upwhen they have concerns ordissenting views?

Warning SignsDo management meetings seem more likehushed, polite games of golf or fast paced,physical games of ice hockey?Do subordinates wait to take their verbaland visual cues from you before

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ycommenting on controversial issues?Are planning and strategy sessions largelyabout the preparation of hefty binders andfancy presentations, or are they primarilyabout a lively, open dialogue?Do the same people tend to dominate themanagement team meetings?

Warning SignsIs it rare for you to hear concerns orfeedback directly from those several levelsbelow you in the organization?Have senior management meetings become‘rubber stamp’ sessions in which executives

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psimply ratify decisions that have alreadybeen made through other channels?Do you rarely hear from someone who isconcerned about the level of criticism andopposition that they encountered whenoffering a proposal during a managementteam meeting?


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Effective Mentoring

How to Mentor Well1. Walk the Talk

• Learns by observation than telling• What you ‘do’ has a greater impact than what

you ‘say’I i t b t ti d d i ill • Inconsistency between action and advice will send confusing signals and result into loss of trust.

2. Give actionable advice and feedback3. Resist the temptation to solve the mentees’

problems• Help them help themselves

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How to Mentor Well4. Criticize the behavior not the person

× “Stop Doing that”“I noticed that you haven’t..”

5. Challenge the mentee to develop a plan for successfor success

• “Where would be like to be in 5 years..”• How do you plan to get there?”

6. Create a foundation of support7. Don’t create dependence on yourself8. Get off to a good start9. Know when to say goodbye!

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Coaching and Mentoring

BothBoth participateparticipate asasThoughThough essentialessential forfor thetheVolunteerismVolunteerism

MenteeMentee isis inin chargecharge ofofhis/herhis/her learninglearning

TheThe CoachCoach directsdirects thethelearninglearning andand instructioninstruction

InitiativeInitiative

ToTo supportsupport andand guideguidepersonalpersonal growthgrowth

ToTo correctcorrect thetheinappropriateinappropriate behavior,behavior,improveimprove performance,performance,impartimpart skillsskills

Key GoalsKey Goals

MentoringMentoringCoachingCoaching

UsuallyUsually notnot thethe boss,boss, notnotinin chainchain ofof commandcommand

CoachCoach asas BossBossRelationshipRelationship

LongLong termtermUsuallyUsually concentratedconcentrated ononshortshort termterm needs,needs, ‘as‘asneeded’needed’ basisbasis

DurationDuration

HeavyHeavy onon listening,listening,providingproviding aa rolerole model,model,andand makingmaking suggestionssuggestionsandand connectionsconnections

HeavyHeavy onon tellingtelling andandappropriateappropriate feedbackfeedback

RolesRoles

LongLong termterm personalpersonal andandcareercareer developmentdevelopment

ImmediateImmediate problemsproblems andandlearninglearning opportunitiesopportunities

FocusFocus

BothBoth participateparticipate asasvolunteersvolunteers

ThoughThough essentialessential forfor thethecoachees’coachees’ participation,participation,butbut notnot voluntaryvoluntary

VolunteerismVolunteerism

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CoachingCoach and Coaching

A Coach is a person who facilitatesexperiential learning that results in future-oriented abilities. (Frederic Hudson, TheHandbook of Coaching)Handbook of Coaching)

Coaching is a process that fostersself-awareness and leads to the motivationto change, as well as the guidance neededif change is to take place in ways that meetindividual and organizational performanceneeds. (David Dotlich, Action Coaching) 90

Coaching: ConceptCoachingCoaching is a process that

involves working with someone on aone-to-one basis to help that personachieve a desired result.It i th kill f idi f db kIt is the skill of providing feedback,direction and support.

CoachingCoaching is an interactive

process, relying on collaboration,through which managers andsupervisors aim to solve performanceproblems or / and develop employee

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Coaching: Concept

Coaching is a process that enables learning and development to occur and thus performance to improve.

Literal meaning “transporting a valued person from where he/she is to where he she

wants to be”

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Potential For CoachingPotential For Coaching

Those individuals who consistently andsubstantially perform above expectations –Excellent rating.

Working with individuals whose contributionWorking with individuals whose contributionand performance is less than expected inmajority of the areas – Below Average rating.

Coaching benefits those individuals who are‘highly strung’, aggressive, etc.

Where development of a skill will significantlycontribute to growth. 93

Assessing Coachees’ ReadinessWant to change andgrowBe willing to beavailable for coachingmeetings and

i t

Be interested in howothers perceivehim/herBe action orientedBe able to trust andassignments

Be capable ofenvisioning a preferredfutureBe willing to thinkbeyond own frame ofreferenceBe open to discoveringbarriersBe willing to try outnew ideas

Be able to trust andgenerate partnershipBe capable of followthrough stepsBe committed tocontinuously learningBe interested in newinformation and ideas

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Qualities of a Coach(Source of Coach Qualities: The Handbook of Coaching, Frederic M. Hudson, PH.D.)

Emotionally CompetentSustain intimate bonds andrelationshipsMaintain high levels of self-confidence and self-esteemImagine, wonder, andenvision

Mentally SharpPossess legitimate personalauthorityGive and receive criticismfairlyReflect on sense of self andits personal life course

Listen intently and objectivelyto othersExpress feelings naturally andappropriatelyDisplay gratitude andappreciationManage conflicts fairly anddirectlySeek and maintainfriendships that are mutually

rewarding

Negotiate useful and accuratecoaching agreementsDistinguish between trivialand significant problemsDistinguish betweensituational and patterneddistressProvide accurate feedbackObserve and understand theconduct of self and othersKnow how to concludecoaching relationshipsprofessionally 95

Qualities of a Coach(Source of Coach Qualities: The Handbook of Coaching, Frederic M. Hudson, PH.D.)

Action OrientedDiscern and clarify personal values inself and othersCollaborate effectively and act fairlyas a team playerCelebrate, have fun, and pursueaffirmations and ritualsPlan and feel responsible for makingthe future happen

Coaches Connect Short-TermStrategies to Longer-Term PlansEvoke a sense of purpose with clientsFacilitate compelling visions of thefuture with coacheeConvert planning into scenariobuilding: design the futureConduct personal and professionalstrategic-planning and timemanagement sessions ith oa heeLive his or her own beliefs and

concernsChallenge, test, and expect highperformance from self and othersLook for ways clients can experiencetheir strengthsLook for ways coachee can learn tobe self-directedLook for social settings and activitiesthat can enrich the coaching planValidate and reward the efforts ofothersEmbrace diversity in men and womenand in people from other cultures

management sessions with coacheeBe effective at facilitating smallgroup process, including emotionalworkFacilitate persons and humansystems through times of transitionPromote personal renewal and careerresilience

Coaches Seek BalanceUnderstand appropriate adult rolesthroughout the life cycleModel and teach the balance of rolesand show how to be one person in all

roles

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Structure of CoachingIt takes place in a one-on-one relationship Involves a high level of communication and trust. Format is individualized, relevant to current performance needs and customized to the learning style and motivations of the learner style and motivations of the learner. Program is carried out over a period of time, allowing for self-paced awareness and plenty of practice. Critically, there is regular accountability and reinforcement.

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Principles Principles ofof

OwnershipOwnership

Self BeliefSelf BeliefProcessProcess

of of CoachingCoaching

Blame freeBlame free

Solution Solution FocusFocus

ActionAction

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Coaching StyleCoaching Style Used For..Used For.. Example..Example..

DIRECTIVEDIRECTIVE DevelopingDeveloping SkillsSkills InstructingInstructing aa newnewemployeeemployee whowho needsneedstoto developdevelop certaincertainskillsskills

ProvidingProviding answersanswers ExplainingExplaining thetheprojectproject planplan toto thethenewnew employeeemployee

InstructingInstructing AA jointjoint concon--callcallgg jj

SUPPORTIVESUPPORTIVE FacilitatingFacilitating problemproblemsolvingsolving

HelpingHelping othersothers findfindtheirtheir ownown solutionssolutions

BuildingBuilding selfselfconfidenceconfidence

“You“You cancan dodo it,it, II amamsure”sure”

EncourageEncourage selfselflearninglearning

AllowingAllowing onon thethe jobjoblearning,learning, eveneven ifif itit isis‘risky’‘risky’

ServingServing asas aa resourceresourcetoto othersothers

ProvidingProvidinginfo/contactsinfo/contacts

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GOLDEN RULES OF COACHING

Build relationships, then coach.Value individual differences and uniqueness.Build on strengths, create enthusiasm forpositive change.Have regular, consistent and structuredconversations with the coachee.Plan and agree for stretch objectives.Create a coaching moment every time youinteract with your coachee.

Live coaching, don’t pretend it !!100


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Human Capital Management

“Process, Strategies and Programs which enable Process, Strategies and Programs which enable an organization to acquire, develop, compensate an organization to acquire, develop, compensate and retain and retain Human Capital Human Capital critical for meeting the critical for meeting the

dynamic needs of the organization”dynamic needs of the organization”

Human Capital Management Principles…getting them right!

Principle #1: HCM Strategy Must BeAnchored To the Business StrategyPrinciple #2: HCM is Not aboutP og ams it is abo t Relationships

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Programs; it is about RelationshipsPrinciple #3: HCM involves AnticipatingChange and Implement it

TM Principles…getting them right!

Principle #4: People in charge of HCM shouldbe an Outspoken Advocate of EmployeeInterests but be balanced

Principle #5: The Effectiveness of HCM

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Principle #5: The Effectiveness of HCMdepends on its staying focused on Issuesrather than on Personalities

Principle #6: HCM Executives must acceptthat Constant Learning and Skill enhancementare essential to their being Contributor to theBusiness

HC Management

HRMHRM

AttractionAttractionDeploymentDeploymentDevelopmentDevelopment

R dR dStrategic Strategic

HRMHRM

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HCMHCMRewardReward

RetentionRetention

Human Human Capital Capital

ManagementManagementHR systemHR system

HRMHRM


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6 Questions CEOs must ask their HR Leaders in

Talent Management/HCMDeloitte Research-Its 2008: Do You Know where your talent is?

1. Which segments of the workforce create the valuefor which we are most rewarded in the marketplace?

2. Which areas of our business will be most impactedbe impending waves of attrition? What are we doingto prepare successors? What impact will attrition

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p p phave on the skills and productivity necessary to meetthe future demand?

3. In what areas is talent market heating up (ie;demand will outplace supply)? Which segments ofour workforce will be impacted? What are thepotential top line and bottom line implication?

6 Questions CEOs must ask their HR Leaders in

Talent ManagementDeloitte Research-Its 2008: Do You Know where your talent is?

4. What skills will we need over the next five years thatwe don’t currently posses? How will we create thatcapacity? What happens to our business of we don’t?

5. What is our turnover within critical areas? How much isit costing us? In Customers? In Productivity? In

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g yInnovation? In Quality? What are we doing to resolvethe root cause?

6. Are we actively developing talent portfolios ofworkforce plans that will help us understand andcommunicate the financial consequences of talentdecisions on our business?

Human Capital/Talent Management

Talent Talent ManagementManagement

Talent

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Talent Forecasting

Talent Acquisition

On-boarding and

Deployment

Talent Development

Talent Retention

Business &HR Planning

Recruiting&

Selecting

Induction&

Placement

LearningTraining

Development

EngagementCulture

SIX HR Conditions Contributing to Organizational Excellence

LBA Consulting Group 1990s

1. Performance Oriented Culture2. Low turnover (in premium employee

groups)3. High Levels of Employee Satisfaction

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4. A Cadre of qualified replacements5. Effective investments in employee

compensation and development6. Use of institutional competencies (success

factors) in selection and performanceevaluation process


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Key Questions‘Understanding the value of HCMFrom Mckinseys

1. How do our people affect the value of ourbusiness?

a. What effect would losing one high performer haveon our share price?

b. How much value do we forego by hanging on topoor performers?

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poor performers?2. How much value do our processes of

developing people add to our company?a. Can we make a business case for all our

development programs?b. What balance should we strike between ‘make Vs

buy’ talent?c. How does the shape of our promotion pyramid

affect our growth prospects?

Key Questions‘‘Understanding the value of Understanding the value of HCMHCM

1. How should we manage the intangible assets vested inour people?

a. Can we measure the tradeoff between investment inour building our culture and investment in newproducts and services?

b. How should we balance the cultural continuity against

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y gthe need to adopt fresh ideas and practices?

c. How can we build a talent brand to attract the bestpeople?

2. How much value do our processes of developingpeople add to our company?

a. Can we make a business case for all our developmentprograms?

b. What balance should we strike between ‘make Vs buy’talent?

c. How does the shape of our promotion pyramid affectour growth prospects?

Integrated Talent Management FrameworkAon Consulting Inc

Business Strategy

Workforce

Planning

Talent Strategy

•• Culture & Culture & Change Change

ManagementManagement

•• CommunicationCommunication

•• RecruitmentRecruitment•• SelectionSelection

•• OrientationOrientation•• Performance Performance ManagementManagement•• Training & Training &

DevelopmentDevelopment•• Reward Reward

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Organizational

Planning

•• MeasurementMeasurement

ManagementManagement•• Succession Succession

PlanningPlanning•• Exit Exit

ManagementManagement

Talent OutcomeTalent Outcome•• PerformancePerformance•• CommitmentCommitment•• RetentionRetention

Business OutcomeBusiness Outcome•• Shareholder growthShareholder growth•• Revenue growthRevenue growth•• ProfitabilityProfitability

5 Levers and 15 Best PracticesBCG Analysis

1. Shift from a west centered to a multi centered operating model

2. Balance the global and local programs to win the talent battle

Embrace a new global talent mindset

Best PracticesBest PracticesLeversLevers

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1. Understand the type and location of talent required over the next five years.

2. Organize as if the company’s survival depended on talent management; it does

Elevate global talent planning to an item on the CEOs agenda

3. Over invest in talent to capture growth4. Locate operations to capture global talent

pools


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5 Levers and 15 Best PracticesBCG Analysis

1. Uncover hidden talent at second and third tier schools by allaying with the schools and tapping into non traditional pools

2. Tailor employment offers to local conditions

Expand the hiring horizon

Best PracticesBest PracticesLeversLevers

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1. Make global values locally relevant2. Ignite in all leaders a lasting passion for

globalization

Embed the new global mindset in all the leaders

1. Identify, cultivate and retain high potential employees

2. Accelerate paths to leadership3. Build a leadership team through global

succession planning and cross cultural rotations

Accelerate careers and create global leaders

3. Create talent through locally tailored T&D programs

Goals of Proactive HCM

1. Identification, Selection, Development andRetention of ‘Super-keepers’‘ Take our Twenty best people away from us and I can tell you that

Microsoft would be an unimportant company’

2 Identification and development of high quality

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2. Identification and development of high qualityreplacements for a small number of positionsdesignated as ‘key’ to current and futureorganizational success.

3. Classification and investment in each employeebased on his / her actual and/or potential for addingvalue to the organization

Performance – Potential Matrix

Low Performance – High PotentialMISFITS

Identify and support a PersonalImprovement Plan over next twoquarters

Manager may also look atreallocation to appropriatefunctional area

High Performance – HighPotentialSUPER-KEEPERS

Identified as Fast Trackperformers

Additional investments ondevelopment and growth needs ofsuch people by the organization

Prospects for higher roles

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Low Performance – Low PotentialCASE FOR EXIT

Based on the gaps, managers totake a call on specific skillbuilding programs along withvery close monitoring

CounselingCase for planned exit

High Performance – Low PotentialSOLID CITIZENS

Opportunities to grow inspecific areas only

Potential development planswherever required

May not be considered forleadership roles


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3/12/2011

1

Leadership CommunicationLeadership Communication

“Just more than information sharing..”“Just more than information sharing..”

Communication: Communication: ConnectingConnecting

To Communicate means... TO HAVE A ‘ COMMON DOOR’ WITH!

You can't not communicate. Everything you say and do or don't say and don't do sends a message to others." – John Woods


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MESSAGE

Communication LoopCommunication Loop

Filters/barriers Filters/Barriers

Sender Receiver

Filters/Barriers Filters/Barriers

RESPONSE

Filters in our communicationFilters in our communication

Hot Buttons

Assumptions Perceptions

Self-esteem SensitivitiesSuspicions

Attitudes Needs Prejudices

Hot Buttons

A i ti

Previous ExperienceParadigms

FeelingsAnxietiesMotives

Feelings

Expectations


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When Leaders Communicate…When Leaders Communicate…

INFORMINSPIRE & MOTIVATEENGAGE AND EDUCATE

BUILD Strong, Healthy, Self Sustaining,

Long term, Mutually beneficial

RELATIONSHIPS

…………

Leader’s Communication Leader’s Communication Effectiveness Effectiveness

RapportRapportTrust and CredibilityTrust and CredibilityKnowledge and InformationKnowledge and InformationCompetenceCompetenceListening and UnderstandingListening and Understanding


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Communication and Interpersonal Communication and Interpersonal RelationshipsRelationships

RelationshipsRelationships atat work,work, especiallyespecially aa teamteam members’members’pp ,, p yp yrelationshiprelationship withwith hishis oror herher supervisor,supervisor, areare aa HUGEHUGEpartpart ofof aa person'sperson's productivityproductivity..

YouYou makemake mymy workwork singsing whenwhen youyou::TreatTreat meme asas aa colleaguecolleague —— notnot asas aa "subordinate""subordinate"LetLet meme knowknow thatthat youyou believebelieve II cancan succeedsucceedShowShow thatthat youyou trusttrust memeLetLet meme seesee youyou asas aa personperson

WhatWhat ‘Communicates’ ‘Communicates’ TrustTrust

GiveGive creditcredit wherewhere it'sit's duedueT kT k ibilitibilit ff i t ki t kTakeTake responsibilityresponsibility forfor youryour mistakesmistakesShareShare informationinformation openlyopenlyThinkThink inin termsterms ofof "us,""us," notnot "me"me andand them"them"AssureAssure thatthat eacheach person’sperson’s rolerole isis clear,clear, toto you,you, totothethe person,person, andand toto thethe departmentdepartmentVoiceVoice concernsconcerns oror conflictsconflicts easilyeasily andand directlydirectlySpeakSpeak positivelypositively aboutabout thethe teamteam andand thethe workwork


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Personal EffectivenessPersonal EffectivenessSelfSelf DisclosureDisclosure

WhatWhat happenshappens whenwhen II don’tdon’t telltell themthem anythinganything aboutabout myselfmyselfwhenwhen II amam workingworking withwith them?them?whenwhen II amam workingworking withwith them?them?

OpennessOpenness toto feedbackfeedbackWhatWhat happenshappens whenwhen II don’tdon’t listenlisten toto themthem whenwhen theytheyareare telltell meme somethingsomething aboutabout myself?myself?

PerceptivenessPerceptivenessWhatWhat happenshappens whenwhen II don’tdon’t noticenotice thingsthings notnot toldtold totomeme byby themthem whilewhile workingworking withwith them?them?

How good a LISTENER we are?How good a LISTENER we are?

A Self AssessmentA Self Assessment


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Consider these responses!Consider these responses!

Actually,Actually, wheneverwhenever youyou areare onon callcall withwith him,him, youyou shouldshouldbeginbegin byby buildingbuilding aa rapportrapport.. ThatThat helpshelps inin manymany ways,ways,beginbegin byby buildingbuilding aa rapportrapport.. ThatThat helpshelps inin manymany ways,ways,especiallyespecially whenwhen itit comescomes toto managingmanaging difficultdifficult customerscustomers

ThisThis time,time, pleaseplease documentdocument itit inin youryour selfself appraisalappraisal sosothatthat itit cancan bebe consideredconsidered inin ourour unitunit levellevel rationalizationrationalizationmeetingmeeting

YouYou shouldshould askask thethe trainingtraining departmentdepartment toto conductconduct aa fullfullfledgedfledged trainingtraining programprogram onon thisthis technologytechnology andand alsoalsomaymay bebe askask forfor somesome onon thethe jobjob supportsupport whilewhile youyou workworkonon thisthis technologytechnology

Reactive Responses Reactive Responses RRRR

OfferingOffering adviceadvice

TellTell whatwhat toto dodo andand // oror notnot toto dodo

DoesDoes thethe thinkingthinking forfor thethe talkertalker


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ItIt cancan bebe veryvery difficultdifficult toto managemanage suchsuch clientsclients andand youyouf lf l t dt d dd d li dd li d tt titifeelfeel stressedstressed andand demoralizeddemoralized atat timestimes

YouYou feelfeel hiringhiring freshersfreshers isis actuallyactually addingadding toto youryour workworkandand takingtaking awayaway youryour criticalcritical timetime fromfrom youryour projectsprojects

ComplyingComplying withwith processesprocesses youyou thinkthink areare nonnon valuevalueComplyingComplying withwith processesprocesses youyou thinkthink areare nonnon valuevalueaddingadding isis irritatingirritating forfor youyou andand youyou feelfeel thaythay cancan bebeeliminatedeliminated

Empathetic Response Empathetic Response ERER

NonNon judgmentaljudgmental

CapturesCaptures essentialessential themetheme // feelingsfeelings

PotentialPotential forfor buildingbuilding rapportrapport andand mutualmutuald dd dunderstandingunderstanding


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HowHow manymany freshersfreshers workwork withwith youyou onon anan average?average? DoDoyouyou prioritizeprioritize thethe trainingtraining ofof freshersfreshers whenwhen theythey joinjoin youryouryouyou prioritizeprioritize thethe trainingtraining ofof freshersfreshers whenwhen theythey joinjoin youryourteamteam

WhichWhich areare suchsuch processesprocesses thatthat youyou thinkthink areare redundantredundant

WhomWhom areare youyou referringreferring toto fromfrom otherother unitsunits

Additional Information Responses Additional Information Responses AFAIRAFAIR

AskAsk forfor additionaladditional responsesresponses

IfIf usedused excessively,excessively, thethe talkertalker maymay feelfeel“grilled”“grilled”


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MayMay bebe situationssituations inin otherother unitsunits couldcould bebe differentdifferent fromfromthatthat inin ourour unitunitthatthat inin ourour unitunit

MayMay bebe youyou shouldshould taketake aa coursecourse onon ManagingManagingCustomersCustomers thatthat wewe dodo inin ourour organizationorganization

MayMay bebe youyou needneed toto looklook atat howhow youyou gogo aboutabout itit inin youryourllll dd hh ff llllteamteam.. Eventually,Eventually, trainingtraining andand coachingcoaching isis aa partpart ofof allall

managers’managers’ responsibilityresponsibility

Criticizing Responses Criticizing Responses CRCR

ExpressesExpresses criticismcriticism

ResultsResults fromfrom aa tendencytendency toto judge,judge,approve,approve, disapprovedisapprove


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Make NoMake NoPayPay

Verbal Communication: ListeningVerbal Communication: Listening

EncourageEncouragespeaker to Talkspeaker to Talk

AssumptionsAssumptions

MonitorMonitorNonNon--VerbalVerbal

AttentionAttention& Remember& Remember

Effective Active Effective Active ListeningListening

EmpathizeEmpathizeParaphraseParaphrase& Repeat& Repeat

Effective FeedbackEffective Feedback

… is a matter of giving it and taking it.

en

sively

taken

Constructively given

Growth andChange

Defe t

Destructively given


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How do you feel?How do you feel?

”You have done a sloppy work."”You have done a sloppy work."

"Th i thi t t f d ""The pages in this report are out of order."

• "You never are on time!"

"You were 15 minutes late today. That's the third time this week." • "You always interrupt my stories!"

"I would like to tell my story without being interrupted."

• ”You make me angry."

"I get angry when you break your promises."

Difficult ConversationsDifficult Conversations

•• BehaviorBehavior ---- whatwhat itit is,is, exactly,exactly, thatthat thetheotherother personperson hashas donedone oror isis doingdoingotherother personperson hashas donedone oror isis doingdoing

•• EffectEffect ---- whatwhat isis happeninghappening becausebecause ofoftheirtheir behaviorbehavior

•• FeelingsFeelings ---- whatwhat effecteffect doesdoes theirtheirbehaviorbehavior havehave onon youryour feelingsfeelings??

•• RequestRequest -- RequestRequest forfor changechange


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Giving FeedbackGiving Feedback

IndividualizedIndividualized toto fitfit thethe specificspecific personperson andandsituationsituation;;situationsituation;;FocusedFocused onon thethe behaviorbehavior oror actionaction youyou areareconcernedconcerned with,with, notnot onon thethe personperson oror theirtheirpersonalitypersonality;;DeliveredDelivered inin aa timelytimely fashion,fashion, asas soonsoon asas possiblepossibleafterafter thethe positivepositive oror negativenegative actionaction andand beforebeforeafterafter thethe positivepositive oror negativenegative actionaction andand beforebeforethethe nextnext performanceperformance..OpenOpen BodyBody languagelanguage

Leadership and MotivationLeadership and Motivation

“Have“Have to”to” VsVs “Can’t“Can’t waitwait to”to” MotivationMotivationThreeThree QualitiesQualities ofof MotivationMotivationThreeThree QualitiesQualities ofof MotivationMotivation

ENERGYENERGYFindFind whatwhat energizesenergizes eacheach employeeemployeeFindFind waysways toto furnishfurnish thatthat kindkind ofof workworkRewardReward themthem forfor doingdoing itit

DIRECTIONDIRECTIONSetSet GoalsGoals……thatthat makemake sensesense andand participativelyparticipatively

SUSTAINSUSTAINNeverNever taketake thethe hardhard workwork forfor grantedgrantedItIt isis necessarynecessary toto keepkeep motivatingmotivating

2424


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Framing: Framing: Using Words to Shape Meaning and Inspire OthersUsing Words to Shape Meaning and Inspire Others

FramingFraming isis aa wayway toto useuse languagelanguage totomanagemanage meaningmeaningmanagemanage meaningmeaning..WayWay forfor leadersleaders toto influenceinfluence howhow eventseventsareare seenseen andand understoodunderstood..InvolvesInvolves selectionselection andand highlightinghighlighting ofof oneoneoror moremore aspectsaspects ofof aa subjectsubject whilewhilepp jjexcludingexcluding othersothers..

Questions of,for,by the LeadersEffective and Empowering Questions

11.. TheyThey createcreate clarityclarity:: “Can“Can youyou explainexplain moremore aboutabout thisthissituation?”situation?”

22.. TheyThey constructconstruct betterbetter workingworking relationsrelations:: InsteadInstead ofof “Did“Did youyoumakemake youryour salessales goal?”goal?” askask,, “How“How havehave salessales beenbeen going?”going?”

33.. TheyThey helphelp peoplepeople thinkthink analyticallyanalytically andand criticallycritically:: “What“What arearethethe consequencesconsequences ofof goinggoing thisthis route?”route?”

44.. TheyThey inspireinspire peoplepeople toto reflectreflect andand seesee thingsthings inin fresh,fresh,unpredictableunpredictable waysways:: “Why“Why diddid thisthis work?”work?”

55.. TheyThey encourageencourage breakthroughbreakthrough thinkingthinking:: “Can“Can thatthat bebe donedoneinin anyany otherother way?”way?”

66.. TheyThey challengechallenge assumptionsassumptions:: “What“What dodo youyou thinkthink youyou willwillloselose ifif youyou startstart sharingsharing responsibilityresponsibility forfor thetheimplementationimplementation process?”process?”

7. They create ownership of solutions7. They create ownership of solutions: “Based on your : “Based on your experience, what do you suggest we do here?”experience, what do you suggest we do here?”


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A Culture of CandourA Culture of Candour

LeadershipLeadership

NeedNeed Vision,Vision, yesyes……butbutFactsFacts areare betterbetter thanthan dreamsdreamsNeedNeed aa ClimateClimate wherewhere thethe truthtruth isis heardheard

LeadLead withwith questions,questions, notnot answersanswersEngageEngage inin aa dialoguesdialogues andand debate,debate, notnot coercioncoercionConductConduct autopsiesautopsies……withoutwithout blameblameBuildBuild ‘red‘red flag’flag’ mechanismsmechanisms

UnwaveringUnwavering faithfaith andand brutalbrutal factsfactsTheThe StockdaleStockdale paradoxparadoxTheThe StockdaleStockdale paradoxparadox

RetainRetain faithfaith thatthat youyou willwill prevailprevail inin thethe end,end, regardlessregardless ofofdifficultiesdifficulties ANDAND atat thethe samesame timetimeConfrontConfront thethe mostmost brutalbrutal factsfacts ofof youryour currentcurrent reality,reality, whateverwhatevertheythey maymay bebe

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A Culture of CandorA Culture of Candor

DoDo youyou havehave anan atmosphereatmosphere ofof candidcandidi ti ?i ti ?communication?communication?

AreAre peoplepeople engagingengaging inin ‘superficial‘superficialcongeniality’congeniality’ duringduring meetings?meetings?DoDo peoplepeople saysay ‘yes’‘yes’ whenwhen theythey reallyreally meanmean‘No’?‘No’?

2929

No ?No ?AreAre peoplepeople comfortablecomfortable speakingspeaking upup whenwhentheythey havehave concernsconcerns oror dissentingdissenting views?views?

Warning SignsWarning Signs

DoDo managementmanagement meetingsmeetings seemseem moremore likelike hushed,hushed,politepolite gamesgames ofof golfgolf oror fastfast paced,paced, physicalphysical gamesgamespp gg gg p ,p , p yp y ggofof iceice hockey?hockey?DoDo subordinatessubordinates waitwait toto taketake theirtheir verbalverbal andandvisualvisual cuescues fromfrom youyou beforebefore commentingcommenting ononcontroversialcontroversial issues?issues?AreAre planningplanning andand strategystrategy sessionssessions largelylargely aboutaboutthethe preparationpreparation ofof heftyhefty bindersbinders andand fancyfancypresentationspresentations oror areare theythey primarilyprimarily aboutabout aa livelylively

3030

presentations,presentations, oror areare theythey primarilyprimarily aboutabout aa lively,lively,openopen dialogue?dialogue?DoDo thethe samesame peoplepeople tendtend toto dominatedominate thethemanagementmanagement teamteam meetings?meetings?


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Warning SignsWarning Signs

IsIs itit rarerare forfor youyou toto hearhear concernsconcerns oror feedbackfeedbackdirectlydirectly fromfrom thosethose severalseveral levelslevels belowbelow youyou inin thethedirectlydirectly fromfrom thosethose severalseveral levelslevels belowbelow youyou inin thetheorganization?organization?HaveHave seniorsenior managementmanagement meetingsmeetings becomebecome‘rubber‘rubber stamp’stamp’ sessionssessions inin whichwhich executivesexecutives simplysimplyratifyratify decisionsdecisions thatthat havehave alreadyalready beenbeen mademadethroughthrough otherother channels?channels?DoDo youyou rarelyrarely hearhear fromfrom someonesomeone whowho isis

3131

DoDo youyou rarelyrarely hearhear fromfrom someonesomeone whowho isisconcernedconcerned aboutabout thethe levellevel ofof criticismcriticism andandoppositionopposition thatthat theythey encounteredencountered whenwhen offeringoffering aaproposalproposal duringduring aa managementmanagement teamteam meeting?meeting?


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1. Basic Approaches to Leadership What is Leadership?

Leadership and management are two terms that are often confused. What’s the difference between them?

John Kotter of the Harvard Business School argues that management is about coping with complexity. Good management brings about order and consistency by drawing up formal plans, designing rigid organization structures, and monitoring results against the plans. Leadership, in contrast, is about coping with change. Leaders establish direction by developing a vision of the future; then they align people by communicating this vision and inspiring them to overcome hurdles.

Robert House of the Wharton School at the University of Pennsylvania basically concurs when he says that managers use the authority inherent in their designated formal rank to obtain compliance from organizational members. Management consists of implementing the vision and strategy provided by leaders, coordinating and staffing the organization, and handling day-to-day problems.

Although Kotter and House provide separate definitions of the two terms, both researchers and practicing managers frequently make no such distinctions. So we need to present leadership in a way that can capture how it is used in theory and practice.

We define Leadership as the ability to influence a group toward the achievement of a vision or set of goals. The source of this influence may be formal, such as that provided by the possession of managerial rank in an organization. Because management positions come with some degree of formally designed authority, a person may assume a leadership role simply because of the position he or she holds in the organization. But not all leaders are managers, nor, for that matter; are all managers’ leaders. Just because an organization provides its managers with certain formal rights is no assurance that they will be able to lead effectively. We find that non-sanctioned leadership – that is, the ability to influence that arises outside the formal structure of the organization – is often as important as or more important than formal appointment to lead a group.

Trait Theories Throughout history, strong leaders – Buddha, Napoleon, Mao, Gandhi, Churchill, Roosevelt, Thatcher, Reagan – have all been described in terms of their traits. For example, when Margaret Thatcher was prime minister of Great Britain, she was regularly described as confident, iron willed, determined, and decisive.

Trait theories of leadership differentiate leaders from nonleaders by focusing on personal qualities and characteristics. Individuals such as Mahatma Gandhi, Margaret Thatcher, South Africa’s Nelson Mandela, Virgin Group CEO Richard Branson, Apple co-founder Steve Jobs, American Express chairman Ken Chenault, Ratan Tata of the Tata Group of Companies, Azim Premji of Wipro, and Narayana Murthy of Infosys are recognized as leaders and described in terms such as charismatic, enthusiastic, and courageous. The search for personality, social,

physical, or intellectual attributes that would describe leaders and differentiate them from nonleaders goes back to the earliest stages of leadership research.

Research efforts at isolating leadership traits resulted in a number of dead ends. For instance, a review in the late 1960s of 20 different studies identified nearly 80 leadership traits, but only 5 of these traits were common to 4 or more of the investigations. By the 1990s, after numerous studies and analyses, about the best thing that could be said was that most “leaders are not like other people”, but the particular traits that were isolated varied a great deal from review to review. It was a pretty confusing state of affairs.

Behavioral Theories The failures of early trait studies led researchers in the late 1940s through the 1960s to go in a different direction. They began looking at the behaviors exhibited by specific leaders. They wondered if there was something unique in the way that effective leaders behave. To use contemporary examples, Siebel Systems Chairman Tome Siebel and Oracle CEO Larry Ellison have been very successful in leading their companies through difficult times. And they both rely on a common leadership style that is tough – talking, intense, and autocratic. Does this suggest that autocratic behavior is a preferred style for all leaders? In this section, we look at three different behavioral theories of leadership to answer that question. First, however, let’s consider the practical implications of the behavioral approach.

If the behavioral approach to leadership were successful, it would have implications quite different from those of the trait approach. Trait research provides a basis for selecting the "right" persons to assume formal positions in groups and organizations requiring leadership. In contrast, if behavioral studies were to turn up critical behavioral determinants of leadership, we could train people to be leaders. The difference between trait and behavioral theories, in terms of application, lies in their underlying assumptions. Trait theories assume that leaders are born rather than made. However, if there were specific behaviors that identified leaders, then we could teach leadership; we could design programs that implanted these behavioral patterns in individuals who desired to be effective leaders. This was surely a more exciting avenue, for it meant that the supply of leaders could be expanded. If training worked, we could have an infinite supply of effective leaders.

Ohio State Studies

The most comprehensive and replicated of the behavioral theories resulted from research that began at Ohio State University in the late 1940s.Researchers at Ohio State sought to identify independent dimensions of leader behavior. Beginning with over 1,000 dimensions, they eventually narrowed the list to two categories that substantially accounted for most of the leadership behavior described by employees. They called these two dimensions initiating structure and consideration.

Initiating structure refers to the extent to which a leader is likely to define and structure his or her role and those of employees in the search for goal attainment. It includes behavior that attempts to organize work, work relationships, and goals. A leader characterized as high in initiating structure could be described as someone who

"assigns group members to particular tasks," "expects workers to maintain definite standards of performance," and "emphasizes the meeting of deadlines."

Consideration is described as the extent to which a person is likely to have job relationships that are characterized by mutual trust, respect for employees' ideas, and regard for th.eir feelings. We could describe a leader high in ' consideration as one who helps employees with personal problems, is friendly and approachable, treats all employees as equals, and expresses appreciation and support. A recent survey of employees revealed that, when asked to indicate the factors that most motivated them at work, 66 percent mentioned appreciation. This speaks to the motivating potential of considerate leadership behavior.

University of Michigan Studies Leadership studies undertaken at the University of Michigan's Survey Research Center at about the same time as those being done at Ohio State had similar research objectives: to locate behavioral characteristics of leaders that appeared to be related to measures of performance effectiveness.

The Michigan group also came up with two dimensions of leadership behavior that they labeled employee oriented and production oriented. The employee oriented leaders were described as emphasizing interpersonal relations; they took a personal interest in the needs of their employees and accepted individual differences among members. The production-oriented leaders, in contrast, tended to emphasize the technical or task aspects of the job; their main concern was in accomplishing their group's tasks, and the group members were a means to that end. These dimensions employee oriented and production oriented are closely related to the Ohio State dimensions. Employee oriented leadership is similar to consideration, and production-oriented leadership similar to initiating structure. In fact, most leadership researchers use the terms synonymously.

The conclusions the Michigan researchers arrived at strongly favored leaders who were employee oriented in their behavior. Employee oriented leaders who were associated with higher group productivity and greater job satisfaction. Production-oriented leaders tended to be associated with low group productivity and lower job satisfaction. Although the Michigan studies emphasized employee-oriented leadership (or consideration) over production-oriented leadership (or initiating structure), the Ohio State studies garnered more research attention and suggested that both consideration and initiating structure are important to effective leadership.

Drawing from the Ohio State and Michigan studies, Blake and Mouton proposed a managerial grid (sometimes called the leadership grid) based on styles of "concern for people" and "concern for production," which essentially represent the Ohio State dimensions of consideration and initiating structure or the Michigan dimensions of employee oriented and production oriented.

The grid, depicted has 9 possible positions along each axis, creating 81 different positions in which the leader's style may fall. The grid does not show results produced; rather, it shows the dominating factors in a leader' thinking in regard to getting results. Based on the findings of Blake an Mouton, managers were found to perform best under a 9, 9 style, as

contrasted for example, with a 9,1 (authority type) or 1,9 (laissez-faire type) style. Unfortunately, the grid offers a better framework for conceptualizing leadership style than for presenting any tangible new information in clarifying the leadership quandary because it doesn't really convey any new information in addition to the Ohio State and the University of Michigan research.

Hersey and Blanchard’s Situational Theory Paul Hersey and Ken Blanchard have developed a leadership model that has gained a strong following among management development specialists. This model-called Situational Leadership Theory (SLT)-has been incorporated into leadership training programs at more than 400 of the Fortune 500 companies; and more than 1 million managers per year from a wide variety of organizations are being taught its basic elements.

Situational leadership is a contingency theory that focuses on the followers. Successful leadership is achieved by selecting the right leadership style, which Hersey and Blanchard argue is contingent on the level of the followers' readiness. Before we proceed, we should clarify two points: Why focus on the followers? And what do they mean by the term readiness?

The emphasis on the followers in leadership effectiveness reflects the reality that it is the followers who accept or reject the leader. Regardless of what the leader does, effectiveness depends on the actions of the followers. This is an important dimension that has been overlooked or underemphasized in most other leadership theories. The term readiness, as defined by Hersey and Blanchard, refers to the extent to which people have the ability and willingness to accomplish a specific task. SLT essentially views the leader-follower relationship as analogous to that between a parent and a child. Just as a parent needs to relinquish control as a child becomes more mature and responsible, so too should leaders. Hersey and Blanchard identify four specific leader behaviors-from highly directive to highly laissez-faire. The most effective behavior depends on a follower's ability and motivation. SLT says that if followers are unable and unwilling to do a task, the leader needs to give clear and specific directions; if followers are unable and willing, the leader needs to display high task orientation to compensate for the followers' lack of ability and high relationship orientation to get the followers to "buy into" the leader's desires; if followers are able and unwilling, the leader needs to use a supportive and participative style; and if the employee is both able and willing, the leader doesn't need to do much.

SLT has an intuitive appeal. It acknowledges the importance of followers and builds on the logic that leaders can compensate for ability and motivational limitations in their followers. Yet research efforts to test and support the theory have generally been disappointing. Why? Possible explanations include internal ambiguities and inconsistencies in the model itself as well as problems with research methodology in tests of the theory. So despite its intuitive appeal and wide popularity, any enthusiastic endorsement, at least at this time, has to be cautioned against.

2. Power and Politics

Definition of Power

Power refers to a capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes. This definition implies a potential that need not be actualized to be effective, and a dependency relationship.

Power may exist but not be used. It is, therefore, a capacity or potential. Someone can have power but not impose it. Probably the most important aspect of power is that it is a function of dependency. The greater B’s dependence on A, the greater is A’s power in the relationship. Dependence, in turn, is based on alternatives that B perceives and the importance that B places on the alternative(s) that A controls. A person can have power over you only if he or she controls something you desire. If you want a college degree and have to pass a certain course to get it, and your current instructor is the only faculty member in the college who teaches that course, he or she has power over you. Your alternatives are highly limited, and you place a high degree of importance on obtaining a passing grade. Similarly, if you’re attending college on funds totally provided by your parents, you probably recognize the power that they hold over you. You’re dependent on them for financial support. But once you’re out of school, have a job, and are making a good income, your parents’ power is reduced significantly. Who among us, though, has not known or heard of a rich relative who is able to control a large number of family members merely through the implicit or explicit threat of “writing them out of the will?”

Contrasting Leadership and Power

A careful comparison of our description of power with our description of leadership the concepts are closely intertwined. Leaders use power as a means of attaining group goals. Leaders achieve goals, and power is a means of facilitating their achievement.

What differences are there between the two terms? One difference relates to goal compatibility. Power does not require goal compatibility, merely dependence. Leadership, on the other hand, requires some congruence between the goals of the leader and those being led. A second difference relates to the direction of influence. Leadership focuses on the downward influence on one’s followers. It minimizes the importance of lateral and upward influence patterns. Power does not. Still another difference deals with research emphasis. Leadership research, for the most part, emphasizes style. It seeks answers to questions such as: How supportive should a leader be? How much decision making should be shared with followers? In contrast, the research on power has tended to encompass a broader area and to focus on tactics for gaining compliance. It has gone beyond the individual as the exerciser of power because power can be used by groups as well as by individuals to control other individuals or groups.

Bases of Power Where does power come from? What is it that gives an individual or a group influence over others? We answer these questions by dividing the bases or sources of power into two general groupings – formal and personal – and then breaking each of these down into more specific categories.

Formal Power

Formal power is based on an individual’s position in an organization. Formal power can come from the ability to coerce or reward or it can come from formal authority.

Coercive Power: The coercive power base is dependent on fear. A person reacts to this power out of fear of the negative results that might occur if she failed to comply. It rests on the application, or the threat of application, of physical sanctions such as the infliction of pain, the generation of frustration through restriction of movement, or the controlling by force of basic physiological or safety needs.

At the organizational level, A has coercive power over B if A can dismiss, suspend, or demote B, assuming that B values his or her job. Similarly, if A can assign B work activities that B finds unpleasant or treat B in a manner that B finds embarrassing. A possesses coercive power over B. Coercive power can also come from withholding key information. People in an organization who have data or knowledge that others need can make those others dependent on them.

Reward Power: The opposite of coercive power is reward power. People comply with the wishes or directives of another because doing so produces positive benefits; therefore, one who can distribute rewards that others view as valuable will have power over those others. These rewards can be either financial – such as controlling pay rates, raises, and bonuses; or nonfinancial – including recognition, promotions, interesting work assignments, friendly colleagues, and preferred work shifts or sales territories.

Coercive power and reward power are actually counterparts of each other. If you can remove something of positive value from another or inflict something of negative value, you have coercive power over that person. If you can give someone something of positive value or remove something of negative value, you have reward power over that person.

Legitimate Power: In formal groups and organizations, probably the most frequent access to one or more of the power bases is one’s structural position. This is called legitimate power. It represents the formal authority to control and use organizational resources.

Positions of authority include coercive and reward powers. Legitimate power, however, is broader than the power to coerce and reward. Specifically, it includes acceptance by members in an organization of the authority of a position. When school principals, bank presidents, or army captains speak (assuming that their directives are viewed to be within the authority of their position ), teachers, tellers, and first lieutenants listen and usually comply.

Personal Power

You don’t have to have a formal position in an organization to have power. Many of the most competent and productive chip designers at Intel, for instance, have power, but they aren’t managers and have no formal power. What they have is personal power – power that comes form an individual’s unique characteristics. In this section, we look at two bases of personal power – expertise and the respect and admiration of others.

Expert Power :

Expert power is influence wielded as a result of expertise, special skill, or knowledge. Expertise has become one of the most powerful sources of influence as the world has become more technologically oriented. As jobs become more specialized, we become increasingly dependent on experts to achieve goals. It is generally acknowledged that physicians have expertise and hence expert power-most of us follow the advice that our doctors give us. But it's also important to recognize that computer specialists, tax accountants, economists, industrial psychologists, and other specialists are able to wield power as a result of their expertise.

Referent Power:

Referent power is based on identification with a person who has desirable resources or personal traits. If I like, respect, and admire you, you can exercise power over me because I want to please you.

Referent power develops out of admiration of another and a desire to be like that person. It helps explain, for instance, why celebrities are paid millions of dollars to endorse products in commercials. Marketing research shows that people such as Amitabh Bachchan and Sachin Tendulkar have the power to influence your choice of chocolates and credit cards. With a little practice, you and I could probably deliver as smooth a sales pitch as these celebrities, but the buying public doesn't identify with you and me. One of the ways in which individuals acquire referent power is through charisma. Some people have referent power who, while not in formal leadership positions, nevertheless are able to exert influence over others because of their charismatic dynamism, likability, and emotional effects on us.

Power Tactics

What power tactics do people use to translate power bases into specific action? That is, what options do individuals have for influencing their bosses, coworkers, or employees ? And are some of these options more effective than others? In this section, we review popular tactical options and the conditions under which one may be more effective than another.

Research has identified nine distinct influence tactics:

• Legitimacy. Relying on one's authority position or stressing that a request is in accordance with organizational policies or rules.

• Rational persuasion. Presenting logical arguments and factual evidence to demonstrate that a request is reasonable.

• Inspirational appeals. Developing emotional commitment by appealing to a target's values, needs, hopes, and aspirations.

• Consultation. Increasing the target's motivation and support by involving him or her in deciding how the plan or change will be accomplished.

• Exchange. Rewarding the target with benefits or favors in exchange for following a request.

• Personal appeals. Asking for compliance based on friendship or loyalty.

• Ingratiation. Using flattery, praise, or friendly behavior prior to making a request.

• Pressure. Using warnings, repeated demands, and threats.

• Coalitions. Enlisting the aid of other people to persuade the target or using the support of others as a reason for the target to agree.

Some tactics are more effective than others. Specifically, evidence indicates that rational persuasion, inspirational appeals, and consultation tend to be the most effective. On the other hand, pressure tends to frequently backfire and is typically the least effective of the nine tactics.I5 You can also increase your chance of success by using more than one type of tactic at the same time or sequentially, as long as your choices are compatible. For instance, using both ingratiation and legitimacy can lessen the negative reactions that might come from the appearance of being “dictated to” by the boss.

Politics: Power in Action

When people get together in groups, power will be exerted. People want to carve out a niche from which to exert influence, to earn rewards, and to advance their careers. When employees in organizations convert their power into action, we describe them as being engaged in politics. Those with good political skills have the ability to use their bases of power effectively.

It is essential for the new workforce joining work to understand the influence of political skills. Young people today who are getting ready to enter the organizational world are simply not ready. They may have the required knowledge, skill, and ability to work hard and turn out quality products or services, but lack the ability to show gratification. It has also been observed that they lack political skill and are amazingly unprepared to deal with organizational politics.

Definition of Organizational Politics

There has been no shortage of definitions of organizational politics. Essentially, however, they have focused on the use of power to affect decision making in an organization or on behaviors by members that are self-serving and organizationally non-sanctioned. For our purposes, we shall define political behavior in organizations as activities that are not required as part of one's formal role in the organization but that influence, or attempt to influence, the distribution of advantages and disadvantages within the organization. This definition encompasses key elements from what most people mean when they talk about organizational politics. Political behavior is outside one's specified job requirements. The behavior requires some attempt to use one's power bases. In addition, our definition encompasses efforts to influence the goals, criteria, or processes used for decision making when we state that politics is concerned with "the distribution of advantages and disadvantages within the organization." Our definition is broad enough to include varied political behaviors such as withholding key information from decision makers, joining a

coalition, whistle-blowing, spreading rumors, leaking confidential information about organizational activities to the media, exchanging favors with others in the organization for mutual benefit, and lobbying on behalf of or against a particular individual or decision alternative.

A final comment relates to what has been referred to as the "legitimate illegitimate" dimension in political behavior. Legitimate political behavior refers to normal everyday politics-complaining to your supervisor, bypassing the chain of command, forming coalitions, obstructing organizational policies or decisions through inaction or excessive adherence to rules, and developing contacts outside the organization through one's professional activities. On the other hand, there are also illegitimate political behaviors that violate the implied rules of the game. Those who pursue such extreme activities are often described as individuals who "play hardball." Illegitimate activities include sab-otage, whistle-blowing, and symbolic protests such as wearing unorthodox dress or protest buttons and groups of employees simultaneously calling in sick.

The vast majority of all organizational political actions are of the legitimate variety. The reasons are pragmatic: The extreme illegitimate forms of political behavior pose a very real risk of loss of organizational membership or extreme sanctions against those who use them and then fall short in having enough power to ensure that they work.

The Reality of Politics

Politics is a fact of life in organizations. People who ignore this fact of life do so at their own peril. But why, you may wonder, must politics exist? Isn't it possible for an organization to be politics free? It's possible but unlikely.

Organizations are made up of individuals and groups with different values, goals, and interests. This sets up the potential for conflict over resources. Departmental budgets, space allocations, project responsibilities, and salary adjustments are just a few examples of the resources about whose allocation organizational members will disagree.

Resources in organizations are also limited, which often turns potential conflict into real conflict. If resources were abundant, then all the various constituencies within the organization could satisfy their goals. But because they are limited, not everyone's interests can be provided for. Furthermore, whether true or not, gains by one individual or group are often perceived as being at the expense of others within the organization. These forces create competition among members for the organization's limited resources.

Maybe the most important factor leading to politics within organization is the realization that most of the "facts" that are used to allocate the limited resources are open to interpretation. What, for instance, is good performance? What's an adequate improvement? What constitutes an unsatisfactory job? One person's view that an act is a "selfless effort to benefit the organization" is seen by another as a “blatant attempt to further one’s interest.”

3. Organizational Culture What is Organizational Culture?

A number of years back, an executive was asked what he thought organizational culture meant. He gave essentially the same answer that a Supreme Court justice once gave in attempting to define pornography: “I can’t define it, but I know it when I see it.” This executive’s approach to defining organizational culture isn’t acceptable for out purposes. We need a basic definition to provide a point of departure for our quest to better understand the phenomenon. In this section, we propose a specific definition and review several peripheral issues that revolve around this definition.

A Definition of Organizational Culture

There seems to be wide agreement that Organizational Culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations. This system of shared meaning is, on closer examination, a set of key characteristics that the organization values. The research suggests that there are seven primary characteristics that, in aggregate, capture the essence of an organization’s culture.

1. Innovation and risk taking. The degree to which employees are encouraged to be innovative and take risks.

2. Attention to detail. The degree to which employees are expected to exhibit precision, analysis, and attention to detail.

3. Outcome Orientation. The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes.

4. People orientation. The degree to which management decisions take into consideration the effect of outcomes on people within the organization.

5. Team Orientation. The degree to which work activities are organized around teams rather than individuals.

6. Aggressiveness. The degree to which people are aggressive and competitive rather than easygoing.

7. Stability. The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.

Each of these characteristics exists on a continuum from low to high. Appraising the organization on these seven characteristics, then, gives a composite picture of the organization’s culture. This picture becomes the basis for feelings of shared understanding that members have about the organization, how things are done in it, and the way members are supposed to behave.

Strong Versus Weak Cultures

It has become increasingly popular to differentiate between strong and weak cultures. The argument here is that strong cultures have a greater impact on employee behavior and are more directly related to reduce turnover.

In a strong culture, the organization’s core values are both intensely held and widely shared. The more members who accept the core values and the greater their commitment to those values is, the stronger the culture is. Consistent with this definition, a strong culture will have a great influence on the behavior of its members because the high degree of sharedness and intensity creates an internal climate of high behavioral control. For example, Seattle-based Nordstrom has developed one of the strongest service cultures in the retailing industry. Nordstrom employees know in no uncertain terms what is expected of them, and these expectations go a long way in shaping their behavior.

One specific result of a strong culture should be lower employee turnover. A strong culture demonstrates high agreement among members about what the organization stands for. Such unanimity of purpose builds cohesiveness, loyalty, and organizational commitment. These qualities, in turn, lessen employees’ propensity to leave the organization.

How Employees Learn Culture

Culture is transmitted to employees in a number of forms, the most potent being stories, rituals, material symbols, and language.

Stories

During the days when Henry Ford II was Chairman of the Ford Motor Co., you would have been hard pressed to find a manager who hadn’t heard the story about Mr. Ford reminding his executives, when they got too arrogant, that “it’s my name that’s on the building.” The message was clear: Henry Ford II ran the company.

Nike has a number of senior executives who spend much of their time serving as corporate storytellers. And the stories they tell are meant to convey what Nike is about. When they tell the story of how co-founder (and Oregon track coach) Bill Bowerman went to his workshop and poured rubber into his wife’s waffle iron to create a better running shoe, they’re talking about Nike’s spirit of innovation. When new hires hear tales of Oregon running star Steve Prefontaine’s battles to make running a professional sport and to attain better performance equipment, they learn of Nike’s commitment to helping athletes.

Stories such as these circulate through many organizations. They typically contain a narrative of events about the organization’s founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping. These stories anchor the present in the past and provide explanations and legitimacy for current practices.

Rituals

Rituals are repetitive sequences of activities that express and reinforce the key values of the organization – what goals are most important, which people are important, and which people are

expendable. One of the better known corporate rituals is Wal-Mart’s company chant. Begun by the company’s founder, Sam Walton, as a way to motivate and unite his workforce, “Gimme a W, gimme an A, gimme an L, gimme a seuiggle, give me an M, A, R, T!” has become a company ritual that bonds Wal-Mart workers and reinforces Sam Walton’s belief in the importance of his employees to the company’s success. Similar corporate chants are used by IBM, Ericsson, Novell, Deutsche Bank, and PricewaterhouseCoopers.

Material Symbols

The headquarters of Alcoa doesn’t look like your typical head-office operation. There are few individual offices, even for senior executives. It is essentially made up of cubicles, common areas, and meeting rooms. This informal corporate headquarters conveys to employees that Alcoa values openness, equality, creativity, and flexibility. Some corporations provide their top executives with chauffeur driven limousines and, when they travel by air, unlimited use of the corporate jet. Others may not get to ride in limousines or private jets, but they might still get a car and air transportation paid for by the company. Only the car is a Chevrolet (with no driver), and the jet seat is in the economy section of a commercial airliner.

The layout of corporate headquarters, the types of automobiles top executives are given, and the presence or absence of corporate aircraft are a few examples of material symbols. Others include the size of offices, the elegance of furnishings, executive perks, and attire. These material symbols convey to employees who is important, the degree of egalitarianism desired by top management, and the kinds of behavior (for example, risk taking, conservative, authoritarian, participative, individualistic, social) that are appropriate.

Language

Many organizations and units within organizations use language as a way to identify members of a culture or subculture. By learning this language, members attest to their acceptance of the culture and, in so doing, help to preserve it. The following are examples of terminology used by employees at Knight-Ridder Information, a California-based data redistributors: accession number (a number assigned to each individual record in a database), KWIC (a set of key-words-in context), and relational operator (searching a database for names or key terms in some order). If you're a new employee at Boeing, you'll find yourself learning a whole unique vocabulary of acronyms, including BOLD (Boeing online data), CATIA (computer-graphics-aided three-dimensional interactive application), MAIDS (manufacturing assembly and installation data system), POP (purchased outside production), and SLO (service-level objectives).

Organizations, over time, often develop unique terms to describe equipment, offices, key personnel, suppliers, customers, or products that relate to its business. New employees are frequently overwhelmed with acronyms and jargon that, after 6 months on the job, have become fully part of their language. Once assimilated, this terminology acts as a common denominator that unites members of a given culture or subculture.

4. Organizational Change

Forces for Change

No company today is in a particularly stable environment. Even traditionally stable industries such as energy and utilities have witnessed – and will continue to experience- turbulent change. Companies that occupy a dominant market share in their industries must change, sometimes radically.

Dynamic and changing environments that organizations face today require adaptation, sometimes calling for deep and rapid responses. “Change or die!” is the rallying cry among today’s managers worldwide.

Forces for Change

Force Examples

Nature of the workforce More cultural diversity Aging population Many new entrants with inadequate skills

Technology Faster, chipper, and mobile computers Online music sharing Deciphering of the human genetic code

Economic Shocks Rise and fall of dot-com Stocks 2000-2002 stock market collapse Record low interest rates

Competitions Global competitors Mergers and consolidation Growth of e- comers

Social Trend Internet chat rooms Retirement of baby boomers Rise in discount and “Big Box” retailers

World politics Iraq – US war Opening of markets in China War on terrorism following 9/11/01

Resistance to Change

One of the well-documented findings from studies of individual and organizational behavior is that organizations and their members resist change. One recent study showed that even when employees are shown data that suggests they need to change; they latch onto whatever data they can find that suggests they are okay and don't need to change. Our egos are fragile, and we often see change as threatening.

In some ways, resistance to change is positive. It provides a degree of stability and predictability to behavior. If there weren't some resistance, organizational behavior would take on the characteristics of chaotic randomness. Resistance to change can also be a source of functional conflict. For example, resistance to a reorganization plan or a change in a product line can stimulate a healthy debate over the merits of the idea and result in a better decision. But there is a definite downside to resistance to change. It hinders adaptation and progress.

Resistance to change doesn't necessarily surface in standardized ways. Resistance can be overt, implicit, immediate, or deferred. It's easiest for management to deal with resistance when it is overt and immediate. For instance, a change is proposed and employees quickly respond by voicing complaints, engaging in a work slowdown, threatening to go on strike, or the like. The greater challenge is managing resistance that is implicit or deferred. Implicit resistance efforts are more subtle-loss of loyalty to the organization, loss of motivation to work, increased errors or mistakes, increased absenteeism due to "sickness"- and hence are more difficult to recognize. Similarly, deferred actions cloud the link between the source of the resistance and the reaction to it. A change may produce what appears to be only a minimal reaction at the time it is initiated, but then resistance surfaces weeks, months, or even years later. Or a single change that in and of itself might have little impact becomes the straw that breaks the camel's back. Reactions to change can build up and then explode in some response that seems totally out of proportion to the change action it follows. The resistance, of course, has merely been deferred stockpiled. What surfaces is a response to an accumulation of previous changes.

Sources of Resistance to Change

Individual Sources

Habit - To cope with life's complexities, we rely on habits or programmed responses. But when confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance.

Security - People with a high need for security are likely to resist change because it threatens their feelings of safety.

Economic factors - Changes in job tasks or established work routines can arouse economic fears if people are concerned that they won't be able to perform the new tasks or routines to their previous standards, especially when pay is closely tied to productivity.

Fear of the unknown-Change substitutes ambiguity and uncertainty for the unknown.

Selective information processing - Individuals are guilty of selectively processing information in order to keep their perceptions intact. They hear what they want to hear and they ignore information that challenges the world they've created.

Organizational Sources

Structural inertia - Organizations have built-in mechanisms-like their selection processes and formalized regulations-to produce stability. When an organization is confronted with change, this structural inertia acts as a counterbalance to sustain stability.

Limited focus of change - Organizations are made up of a number of interdependent subsystems. One can't be changed without affecting the others. So limited changes in subsystems tend to be nullified by the larger system.

Group inertia - Even if individuals want to change their behavior, group norms may act as a constraint.

Threat to expertise - Changes in organizational patterns may threaten the expertise of specialized groups.

Threat to established power relationships - Any redistribution of decision-making authority can threaten long-established power relationships within the organization.

Threat to established resource allocations - Groups in the organization that control sizable resources often see change as a threat. They tend to be content with the way things are.

Overcoming Resistance to Change

Seven tactics have been suggested for use by change agents in dealing with resistance to change. Let's review them briefly.

Education and Communication

Resistance can be reduced through communicating with employees to help them see the logic of a change. Communication can reduce resistance on two levels. First, it fights the effects of misinformation and poor communication: If employees receive the full facts and get any misunderstandings cleared up, resistance should subside. Second, communication can be helpful in "selling" the need for change. Indeed, research shows that the way the need for change is sold matters-change is more likely when the necessity of changing is packaged properly. A study of German companies revealed that changes are most effective when a company communicates its rationale balancing various stakeholders (shareholders, employees, community, and customers) interests versus a rationale based on shareholder interests only.

Participation

It's difficult for individuals to resist a change decision in which they participated. Prior to making a change, those opposed can be brought into the decision process. Assuming that the participants have the expertise to make a meaningful contribution, their involvement can reduce resistance, obtain commitment, and increase the quality of the change decision. However, against these advantages are the negatives: potential for a poor solution and great consumption of time.

Building Support and Commitment

Change agents can offer a range of supportive efforts to reduce resistance. When employees' fear and anxiety are high, employee counseling and therapy, new-skills training, or a short paid leave of absence may facilitate adjustment. Research on middle managers has shown that when managers or employees have low emotional commitment to change, they favor the status quo and resist it. So firing up employees can also help them emotionally commit to the change rather than embrace the status quo.

Implementing Changes Fairly

Try as managers might to have employees see change positively, most workers tend to react negatively. Most people simply don't like change. But one way organizations can minimize the negative impact of change, even when employees frame it as a negative, is to makes sure the change is implemented fairly. As we learned, procedural fairness becomes especially important when employees perceive an outcome as negative, so when implementing changes, it's crucial that organizations bend over backwards to make sure employees see the reason for the change, and perceive that the changes are being implemented consistently and fairly.

Manipulation and Cooptation

Manipulation refers to covert influence attempts. Twisting and distorting facts to make them appear more attractive withholding undesirable information, and creating false rumors to get employees to accept a change are all examples of manipulation. If corporate management threatens to close down a particular manufacturing plant if that plant’s employees fail to accept an across-the-board pay cut, and if the threat is actually untrue, management is using manipulation. Cooptation, on the other hand, is a form of both manipulation and participation. It seeks to "buy off' the leaders of a resistance group by giving them a key role in the change decision. The leaders' advice is sought, not to seek a better decision, but to get their endorsement. Both manipulation and cooptation are relatively inexpensive and easy ways to gain the support of adversaries, but the tactics can backfire if the targets become aware that they are being tricked or used. Once discovered, the change agent's credibility may drop to zero.

Selecting People Who Accept Change

Research suggests that the ability to easily accept and adapt to change is related to personality-some people simply have more positive attitudes about change than others. It appears that people who adjust best to change are those who are open to experience, take a positive attitude toward change, are willing to take risks, and are flexible in their behavior. One study of managers in the United States, Europe, and Asia found that those with a positive self-concept and high risk tolerance coped better with organizational change. The study authors suggested that organizations could facilitate the change process by selecting people who score high on these characteristics. Another study found that selecting people based on a resistance-to change scale worked well in winnowing out those who tended to react emotionally to change or to be rigid.

Coercion

Last on the list of tactics is coercion; that is, the application of direct threats or force on the resisters. If the corporate management mentioned in the previous discussion really is determined to close a manufacturing plant if employees don't acquiesce to a pay cut, then coercion would be the label attached to its change tactic. Other examples of coercion are threats of transfer, loss of promotions, negative performance evaluations, and a poor letter of recommendation. The advantages and drawbacks of coercion are approximately the same as those mentioned for manipulation and cooptation.

Approaches to Managing Organizational Change

Now we turn to several approaches to managing change: Lewin's classic three step model of the change process, Kotter's eight-step plan, action research, and organizational development.

Lewin's Three-Step Model

Kurt Lewin argued that successful change in organizations should follow three steps: unfreezing the status quo, movement to a desired end state, and refreezing the new change to make it permanent. The value of this model can be seen in the following example, when the management of a large oil company decided to reorganize its marketing function in the Western United States.

The oil company had three divisional offices in the West, located in Seattle, San Francisco, and Los Angeles. The decision was made to consolidate the divisions into a single regional office to be located in San Francisco. The reorganization meant transferring more than 150 employees, eliminating some duplicate managerial positions, and instituting a new hierarchy of command. As you might guess, a move of this magnitude was difficult to keep secret. The rumor of its occurrence preceded the announcement by several months. The decision itself was made unilaterally. It came from the executive offices in New York. The people affected had no say whatsoever in the choice. For those in Seattle or Los Angeles, who may have disliked the decision and its consequences-the problems inherent in transferring to another city, pulling youngsters out of school, making new friends, having new coworkers, undergoing the reassignment of responsibilities-their only recourse was to quit. In actuality, fewer than 10 percent did.

The status quo can be considered to be an equilibrium state. To move from this equilibrium-to overcome the pressures of both individual resistance and group conformity-unfreezing is necessary. It can be achieved in one of three ways. The driving forces, which direct behavior away from the status quo, can be increased. The restraining forces, which hinder movement from the existing equilibrium, can be decreased. A third alternative is to combine the first two approaches. Companies that have been successful in the past are likely to encounter restraining forces because people question the need for change. Similarly, research shows that companies with strong cultures excel at incremental change but are overcome by restraining forces against radical change.

Unfreezing Movement Re-freezing

The oil company's management could expect employee resistance to the consolidation. To deal with that resistance, management could use positive incentives to encourage employees to accept the change. For instance, increases in pay can be offered to those who accept the transfer. Very liberal moving expenses can be paid by the company. Management might offer low-cost mortgage funds to allow employees to buy new homes in San Francisco. Of course, management might also consider unfreezing acceptance of the status quo by removing restraining forces. Employees could be counseled individually. Each employee's concerns and apprehensions could be heard and specifically clarified. Assuming that most of the fears are unjustified, the counselor could assure the employees that there was nothing to fear and then demonstrate, through tangible evidence, that restraining forces are unwarranted. If resistance is extremely high, management may have to resort to both reducing resistance and increasing the attractiveness of the alternative if the unfreezing is to be successful.

Research on organizational change has shown that, to be effective, change has to happen quickly. Organizations that build up to change do less well than those that get to and through the movement stage quickly.

Once the consolidation change has been implemented, if it is to be successful, the new situation needs to be refrozen so that it can be sustained over time. Unless this last step is taken, there is a very high chance that the change will be short-lived and that employees will attempt to revert to the previous equilibrium state. The objective of refreezing, then, is to stabilize the new, situation by balancing the driving and restraining forces.

Kotter's Eight-Step Plan for Implementing Change

1. Establish a sense of urgency by creating a compelling reason for why change is needed

2. Form a coalition with enough power to lead the change.

3. Create a new vision to direct the change and strategies for achieving the vision.

4. Communicate the vision throughout the organization.

5. Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving.

6. Plan for, create, and reward short-term "wins" that move the organization toward the new vision.

7. Consolidate improvements, reassess changes, and make necessary adjustments in the new programs.

8. Reinforce the changes by demonstrating the relationship between new behaviors an organizational success.

- leadership_&_hcm-final

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