Transcript Slide 1

Organizational Leadership &
Decision Making
Your Facilitator
Katrina McBride, CEO eXo associates, inc.
Experience:
20 years in finance, business strategy, strategic
marketing, corporate training, organizational design
and management, and independent consulting
Education:
– BS psychology
– MA organizational management
– Trained dispute mediator
Agenda
Organizational Leadership and Decision-Making
• What is leadership
• Issues regarding leadership
• The organization and its culture
• Leadership theories and styles
• Types of leaders
• Decision making
• Case studies: exceptional leaders
• Empowerment
• Accountability
• Gender Issues
What is an Organization?
A consciously coordinated social unit, composed of
two or more people, that functions on a relatively
continuous basis to achieve a common goal or set
of goals
Why do Organizations Exist?
Organizations exist because they provide the
setting in which members can meet their
economic, social, validation, and information
needs
What is Leadership?
“…a social influence process in which the
leader seeks the voluntary participation of
subordinates in an effort to reach
organizational goals.”
What does Leadership Involve?
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Inspiration
Emotional support
Common goals
Vision
Strategic planning
Tom Peters and Nancy Austin
A Passion for Excellence
Shadow of a Leader
Actions Speak Louder than Words
What is the shadow of a leader?
Whose shadows have influenced you?
What is the shadow you cast?
Leading vs. Managing
Managers
Leaders
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Administers
Maintains
Controls
Short-term view
Asks how & when
Initiates
Accepts the status- quo
Does things right
Innovates
Develops
Inspires
Long-term view
Asks what & why
Originates
Challenges the
status – quo
• Does the right things
Sources of power
Reward
Coercive
Legitimate
Sources of
Power
Referent
Expert
Issues Regarding
Leadership
Evolution of leadership
2000
1990
1980
1970
1960
1940
1900
1880
1700
1500
1300
1920
Industrial
Age
Agricultural
Age
1100
Knowledge
Age
SOURCE: M. Emmi, SCT Corporation
Characteristics of the New Economy
• Speed/Efficiency
• Effectiveness
 Uncertainty/Risk
• Quality of Service
 Flexibility
• Shorter Lead Time
 High Productivity
/Low Cost
Issues Gaining Prominence
• Communications/influence skills
• Change management/structuring/risk management skills
• Decision making/creativity/forecasting/ project management skills
• Attention to corporate governance
• Role of the Board of Directors
• Marketing/PR/fund raising skills
• Human resources and staffing skills
The Organization &
Its Culture
Organizational Culture
• Shared Values: what we consider important
• Beliefs: how things should be done
• Norms: the way we do things
• Heroes: who personifies the corporate
values
• Systems: written and unwritten rules
Organizational Culture
4 Functions
1. Organizational Identity
Promotion of distinguishing and unique features
2. Enhancing Commitment
Becoming a place where people want to stay and
contribute.
3. Social System Stability
Work environment is positive and reinforcing;
conflict is managed effectively
4. Sense-Making
Members understand why organizational decisions
and goals are made.
Types of Organizational Culture
Traditionalist
Consensus
Driven
Profit Driven
Structure
Futurist
top-down,
top-down,
middle-out,
middle-out,
conservative,
decisions taken
decisions taken
TEXT
TEXT
entrepreneurial
good at cost
by consensus,
by independent
and chaotic,
control,
good at
business
excellent at
poor at
integration,
managers,
innovation and
good at
good at niche
integration
innovation,
tailoring,
poor at niche
good at
integration,
tailoring
innovation,
poor at cost
poor at
control
integration
innovation,
poor at
Manifestations of Culture
• What the leaders pay attention to and reward
• Leaderships reaction to critical situations
• Criteria for resource allocation
• Observed criteria for rewards/status
• Recruitment, promotion, retirement criteria
• Systems and procedures
• Rites and rituals
• Design of physical space
• Hero/war stories
The Role of Leadership in
Organizational Culture
•Role-Model:
• The
Whatugly
is paidbaby
attention to
Style and personality
Tone-Setter:
•Moral
•Values
•Symbol of who “Gets Ahead:”
•Leadership qualifications
•Goals to reach
•Guardian or Designated Change Agent:
•Vision
•Break from past/model desired behaviors
Leadership Theories
& Styles
Flavor of the week
Assigned Leadership. Connective Leadership. Balanced Leadership. Connected
Leadership. Muscular Leadership. Toxic Leadership. Fusion Leadership. Complexity
Leadership. Character Based Leadership. Emergent Leadership. Directive Leadership.
Participative Leadership. Ethical Leadership. Principled Leadership. Team Leadership.
Achievement Oriented Leadership. Supportive Leadership. Charismatic Leadership.
Wholehearted Leadership. Level 5 Leadership. Authentic Leadership. Leadership
Development. Leadership Training. Executive Development. Team Building. Coaching.
Situational Leadership. Principle Centered Leadership. Values Centered Leadership.
Inclusive Leadership. Servant Leadership. Transactional Leadership. Transformational
Leadership. Total Leadership. Trustee Leadership. Leadership Identity. Enlightened
Leadership. Leadership at Every Step. Leading Change. Values Based Leadership.
Continuous Leadership. Rational Leadership. Visionary Leadership. Strategic Leadership.
Contributory Leadership. Virtual Leadership. Leadership by Example. Integrated
Leadership. Institutionalized Leadership. Collaborative Leadership. Appreciative
Leadership. Leadership as a Process. Proactive Leadership. Generative Leadership.
Revolutionary Leadership. Total Leadership. Unnatural Leadership. Empowering
Leadership. Organizational Leadership. Operational Leadership. Innovative Leadership.
Creative Leadership. Synergistic Leadership. Entrepreneurial Leadership. Steward
Leadership. Military Leadership. Inspired Leadership. Leaders Building Leaders. Leading
Upward. Tomorrow Leader. Quantum Leadership. Alpha Leadership. Lead by Design.
Results Based Leadership. Trickle Up Leadership. Leaders to Leaders. Formative
Leadership. Distributive Leadership. Integral Leadership. Cross Border Leadership.
Invisible Leadership. Social Leadership.
Are Leaders Born or Made?
The Born Side: Trait (Competency) and Behavioral
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Trait theory - states that there are "born leaders“ for
example John Kennedy, Abraham Lincoln, Thomas
Jefferson.
Great Man Theory -leadership is an innate, inherited ability
The Made Side: Situational and Path-Goal
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Leaders respond to the situation, for example: the war
years "created" George Washington, Winston Churchill,
and FDR - "times create the man or woman."
Trait (Competency) Theories
Ralph Stogdill, Richard Mann (1950’s)
Dominant Leadership Traits
• Drive - level of energy and activity
• Integrity
• Emotional intelligence
• Intelligence
• Dominance
• Self-confidence
• Task-relevant knowledge
Behavioral Styles Theory
START
Based on the behaviors that represent leadership
Ohio State studies (1940-50s)
Consideration
High
Low
Low structure
High consideration
High structure
High consideration
Less emphasis is placed on
structuring employee tasks
while the leader concentrates on
satisfying employee needs and
wants
The leader provides a lot of
guidance about how tasks can
be completed while being highly
considerate of employee needs
and wants
Low structure
Low consideration
High structure
High consideration
The leader fails to provide
necessary structure and
demonstrates little consideration
for employee needs and wants
Primary emphasis is placed on
structuring employee task while
the leader demonstrates little
consideration for employee
needs and wants
Low
Initiating Structure
High
What is your Behavioral Style
Self-Assessment
FORMAL
PROMOTING
SUPPORTING
DOMINANT
ANALYZING
EASY-GOING
CONTROLLING
INFORMAL
2000 Senn-Delaney Leadership Consulting
Situational Theories
Different Situations: Different Style
• Grew out of a need to explain
inconsistencies regarding trait and
behavior theories
• Challenges the idea of one best style
of leadership
Situational Theory: Contingency Model
Fred Fiedler
The contingency model is based on the
premise that a leader has one dominant
style and will manipulate a situation to
fit that style
Performance depends on:
– Degree which the situation gives the
leader control and influence
– The leader’s basic motivation
Hersey & Blanchard’s Situational
Leadership Theory
Supportive behavior
High
Participating
S3
Share ideas & facilitate
In decision making
Selling
S2
Explain decisions &
Provide opportunity for
clarification
Telling
Delegating
S1
S4
Provide specific
Turn over responsibility
Instructions & closely
For decisions
Supervise
performance
Implementation
Low
S3
S2
S4
S1
High
Directive Behavior
D4
Developed
D3
D2
D1
Developing
DEVELOPMENT LEVEL OF INDIVIDUAL
Path-Goal theories
Robert House
• Focus on how leaders influence followers’
expectation
• The leader’s behavior is okay if followers
view it as in line with followers’ satisfaction
• Leaders can have more than one style
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Directive
Supportive
Participative
Achievement-oriented
Path-Goal Theory of Leadership
Path
Leader identifies
employee needs.
Directive
Directive
Appropriate goals
are established.
Supportive behavior
Leader provides assistance
on employee’s path toward goals.
Achievement
Effective performance
occurs.
Leader connects
rewards with
goal(s)
Participative behavior
Employees become satisfied and
motivated and accept the leader.
Motivation
Both employees and
organization better reach
their goals.
Types of Leaders
Transformational Leaders
“The Brokers of Dreams”
Currently the most popular perspective
TRANSFORMATIONAL LEADERSHIP
Creating a
vision
Communicating
the vision
Building
commitment
to the vision
Modeling
the vision
Transformational Leaders
Old Problems in New Ways
• Charisma: Provides vision and sense of mission, instills pride,
gains respect and trust.
• Inspiration: Communicates high expectations, uses symbols
to focus efforts, expresses important purposes in simple ways.
• Intellectual stimulation: Promotes intelligence, rationality, and
careful problem-solving.
• Individualized consideration: Gives personal attention, treats
each employee individually, coaches, advises.
Visionary
Create and Articulate
• Ability to explain the vision to others
• Is an example of the vision – walks the walk
• Ability to extend the vision to different
contexts
Charismatic Leadership
Situations for Application
Charismatic leadership is effective when:
•The situation offers opportunities for “moral”
involvement
•Performance goals cannot be easily established or
measured
•Extrinsic rewards cannot be clearly linked to individual
performance
•Exceptional effort, behavior, sacrifices, and
performance are required of both the leader and
followers
Charismatic Leaders
Charismatic leader traits and behaviors:
– They advocate a vision.
– They are not keepers of the status quo
• behavior is out of the ordinary
• they are perceived as change-agents.
– They act unconventional in several ways – counter to
norms.
– They are willing to make self-sacrifices, take personal
risks, to support their vision.
– They have strong self-confidence.
Decision-Making
Types of Decisions Leaders Make
• Mission/vision
• Organizational structure
• Performance review
• Salary structure
• Financial
• Investments
• Shareholder relations
• Corporate structure
• Product/manufacturing
• Product development
• Marketing mix
• Positioning message
"diversity in counsel,
unity in command.“
-Cyrus the Great,
The Decision-Making Process
the founder of the
Persian Empire
Process Linked with Superior Outcomes
• Multiple alternatives
• Assumption testing
• Well-defined criteria
• Dissent and debate
• Perceived fairness
Decision-Making
Two Approaches
Advocacy views Decision-Making as a Contest.
Inquiry views Decision Making as collaborative problem solving
Advocacy
Concept of decision making a contest
Inquiry
collaborative problem solving
Purpose of discussion
persuasion and lobbying
testing and evaluation
Participants' role
spokespeople
critical thinkers
Patterns of behavior
strive to persuade others present balanced arguments
remain open to alternatives
defend your position
accept constructive criticism
downplay weakness
Minority views
discouraged or dismissed cultivated and valued
Outcome
winners and losers
collective ownership
Case Studies:
Exceptional Leaders
CNN’s Top 25
1. Bill Gates, co-founder of Microsoft
2. Sam Walton, former CEO of Wal-Mart
3. Jack Welch, former CEO of General Electric
4. Warren Buffett, CEO of Berkshire Hathaway
5. Lee Iacocca, former CEO of Chrysler
6. Steve Jobs, CEO of Apple
7. Herb Kelleher, chairman of Southwest Airlines
8. Michael Dell, founder of Dell Computer
9. Alan Greenspan, chairman of the Federal Reserve
10. Carl Icahn, 1980s corporate raider
11. Andy Grove, former CEO of Intel
12. Michael Milken, former junk-bond wizard
13. John Reed, former CEO of Citigroup
14. Ted Turner, founder of CNN
15. Jim Clark, former CEO of Netscape
16. Meg Whitman, CEO of eBay
17. Jeff Bezos, founder of Amazon.com
18. Michael Eisner, CEO of Disney
19. Peter Lynch, manager of Fidelity's Magellan Fund
20. Phil Knight, CEO of Nike
21. Katharine Graham, late CEO of Washington Post Co.
22. W. Edwards Deming, influential business consultant
23. Ken Lay, notorious former CEO of Enron
24. Shawn Fanning, founder of Napster
25. Lou Gerstner, former CEO of IBM
“…power has no sex.”
- Katherine Graham
Katherine Graham
Washington Post Co.
•Her father, Eugene Meyer, purchased The Washington Post in 1933
•Assumed control of the Washington Post Company following his death.
•From 1969 to 1979 she was also publisher of the newspaper.
•From 1973-1991 Graham was board chairman and CEO
•Chairman of the Executive Committee until her death in 2001 at 84.
Under Katharine Graham's leadership, The Washington Post
became known for its hard-hitting investigations, including
the publication of the secret Pentagon Papers against the
advice of lawyers and against government directives,
followed by the Woodward and Bernstein investigation of the
Watergate scandal.
"Change before you have to."
-Jack Welch
Jack Welch
General Electric
• Jack Welch paved a new road for business leaders everywhere.
• He became the youngest CEO & Chairman of one of America's biggest and most
respected companies (General Electric) at age 44
• Proceeded to rewrite the rules of what an incredibly profitable and successful
company should be, all while having fun in the process.
• GE ranked as America's Most Admired Company 4 years running until Mr. Welch's
retirement.
• Popularized Six Sigma quality control
• Aggressive marketing and PR
• Able to effectively communicate key ideas
• Personable and persistent, hard and demanding leader
• $ 12 billion in 1981 to $280 billion in 2001
Herb
Kelleher
“If work were more fun,
it would feel less like work.”
-Herb Kelleher
Southwest Airlines
• Started out as the lawyer in the group of Southwest's original founders
• Became its President, CEO and Chairman.
• Considered the leading image for the airlines, the smoking-drinking-
Harley-riding-wisecracking-self-effacing Kelleher
• Incorporated the quirky spirit at Southwest into a business strategy
• He did so by introducing a small airline with a quirky environment that
saluted singing flight attendants and joke-telling pilots.
• airline has not had to lay off a single employee despite 9/11 and that has
• shown a profit for 30 years straight.
“Sometimes when you innovate,
you make mistakes.
- Steve Jobs
Steve Jobs
Apple Computers
•CEO of Apple, which he co-founded in 1976
•CEO of Pixar, the Academy-Award-winning animation studios which he cofounded in 1986.
•Ignited the personal computer revolution in the 1970s with the Apple II
•Reinvented the personal computer in the 1980s with the Macintosh.
•Today, Apple continues to lead the industry in innovation with its
• award-winning desktop and notebook computers,
• OS X operating system, and
• iLife and professional applications.
• iPod portable music players
• iTunes online music store.
•Grew up in the apricot orchards which later became known as Silicon Valley,
•Still lives there with his wife and three children.
“Your most unhappy customers are
your greatest source of learning.”
- Bill Gates
Bill Gates
Microsoft
• Began programming computer at 13
• Founded Microsoft in 1975 with childhood friend Paul Allen
• Left Harvard University in his junior year to devote his energies to Microsoft
• Guided by a belief that the computer would be a valuable tool on every
office desktop and in every home
• Gates' foresight and his vision for personal computing have been central to
the success of Microsoft and the software industry.
• Investment of approximately $6.2 billion on research and development in
the 2005 fiscal year
The Bill and Melinda Gates Foundation has
donated more than $27 billion (as of March 2004)
to global health and education initiatives
Empowerment
Accountability
Gender Issues
Empowerment is a Scary Word?
• Employees want it but fear the
responsibility
• Over committed leaders need for
their employees to take on more
responsibility but fear the loss of
control
‘Telling people what you want,
giving them the tools to do it, and
leaving them alone’
Empowerment
When Did You Feel Powerful?
What empowerment is:
•Clarity of vision
•Involvement
•Valuing the individual
•Commitment
•Accountability
What empowerment is not:
•A democracy
•Decision by committee
•Positioning blame
•Ignoring of performance issues
•Lacking boundaries
Benefits of Empowerment
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Higher productivity
Committed workforce
High quality sustained over time
Initiative and accountability
Cooperation and teamwork
Job satisfaction
More attention to strategic planning
Competitive advantage
Barriers to Empowerment
• Lack of trust
• Reluctance to give up power
• Lack of understanding what it is
• Corporate culture
• Corporate leadership style
“The buck stops here.”
- Harry Truman
Accountability
The Mindset
• Making decisions/choices
• Taking responsibility
• Learning from mistakes
• Not blaming others
• Adjusting when necessary
• Keeping ego in check
Leadership Accountability
Attributes
• Focus on the end goal/bottom line/results
• Valuing of others
• Keeps promises and honor commitments
• Willingness to delegate
Leadership Accountability
• Focuses on outcomes more than means
• Sets high expectations for everyone
• Practices conflict resolution skills
• Designs accurate performance indicators
• Identifies what needs to be tight versus loose
control
• Nurtures win/win performances and partnership
agreements
• Appreciates, values, and recognizes each person
in the organization
Gender Issues
Gender and Leadership
Perception
Behavior
Task-orientation
men > women
men = women
Relationship-Orientation
women > men
women = men
Autocrativeness
men > women
men > women
Participativeness
women > men
women > men
men > women
men > women (in lab only)
men > women
men = women
Emergence
Effectiveness
6 steps to Effective Leadership
• Clarify what is possible
• Clarify what others can contribute
• Support other’s contributions
• Be relentless
• Measure and celebrate progress
Sources and References
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Robbins, S. 9th edition. Organizational behavior. Upper Prentice Hall:Saddle River, NJ
Senn-Delaney. 2000. Leadership, team building, culture change. Private publisher
University of Phoenix. 2002. Organizational leadership. Complied text. Private publisher
http://www.hftp.org/members/bottomline/backissues/1996/aug-sept/historia.htm
http://cf.villanova.edu/archived/NAJDAWI/presentations/AACSB-drive-dec2001.ppt#23
http://ollie.dcccd.edu/mgmt1374/book_contents/4directin/leading/lead.htm
McGregor, D. (April 9, 1957). Proceedings of the Fifth Anniversary Convocation of the School of
Industrial Management, "The Human Side of Enterprise." Massachusetts Institute of Technology.
http://www.carnahanpresents.com/Keynotes5.asp
Butler, D., & Geis, F. L. (1990). Nonverbal affect responses to male and female leaders: Implications
for leadership evaluations. Journal of Personality and Social Psychology, 58, 48-59.
Fiske, S. T., Bersoff, D. N., Borgida, E., Deaux, K., & Heilman, M. E. (1991). Social science research
on trial: Use of sex stereotyping research in Price Waterhouse v. Hopkins. American Psychologist, 46,
1049-1060.
Lord, R. G., & Maher, K. J. (1991). Leadership and information processing: Linking perceptions and
performance. Boston, MA: Unwin Hyman.
Price Waterhouse v. Hopkins, 109 S. Ct. 1775 (1989).
[email protected]
John P. Kotter in his book, A Force for Change: How Leadership Differs from Management (The Free
Press, 1990),
http://growth-strategies.com/subpages/articles/121.html
Culture categories copyright 2001 N. Dean Meyer and Associates Inc.
Bennis, W. & Nanus, B. (1985). Leaders: Strategies for taking charge. New York: Harper Collins
Publishers.
• Excerpted with permission from "What You Don't Know About Making Decisions," Harvard Business Review, Vol.79, No.
8, September, 2001.