Transcript Kreitner - NMHU International Business Consulting

Leadership
Chapter 16
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
© 2008The McGraw-Hill Companies, Inc. All rights reserved.
Ch. 16 Learning Objectives
1. Define the term leadership and explain the
difference between leading and managing.
2. Review trait theory research and the takeaways from
this theoretical perspective.
3. Explain behavioral styles theory and its takeaways.
4. Explain, according to Fiedler’s contingency model,
how leadership style interacts with situational
control, and discuss the takeaways from this model.
5. Discuss House’s revised path-goal theory and its
practical takeaways.
16-2
Ch. 16 Learning Objectives
6. Describe the difference between laissez-faire,
transactional, and transformational leadership.
7. Discuss how transformational leadership transforms
followers and work groups.
8. Explain the leader-member exchange model of
leadership.
9. Review the concept of shared leadership and the
principles of servant-leadership.
10. Describe the follower’s role in the leadership
process.
16-3
A Leader Is Someone Who…
…influences a group of individuals to achieve a
common goal. Key aspects of leadership include…
• Creating and communicating a vision
• Influencing others through use of power
• Motivating task behavior in pursuit of shared objectives
• Establishing and maintaining group culture
• Empowering others
• Clarifying roles and niche in marketplace
• Making tough decisions with limited information
16-4
Approaches to Studying Leadership
Trait approaches
Behavioral
approaches
Contingency
approaches
Transformational
Approaches
Emerging
Approaches
16-5
Leaders & Managers
16-6
Leaders and Managers
Leaders
•
•
•
•
Inspire & Motivate
Manage People
Are Decisive
Create a Vision
Managers
•
•
•
•
Are Accountable
Execute
Manage Resources
Plan, organize, direct,
control
Managers who are also leaders
16-7
Trait Approach to Leadership
“Great Man” approach
• Attempt to identify relatively stable,
enduring dispositional attributes
that leaders possess
Implicit Leadership Theory
• Beliefs about how leaders should
behave and should do for their
followers
Emotional Intelligence
• Ability to manage oneself and one’s
relationships in mature and
constructive ways.
16-8
Key Positive Leadership Traits
Intelligence
Self-confidence
Determination
Honesty/Integrity
Sociability
Extroversion
Conscientiousness
Problem solving skills
16-9
Ineffective Leadership Traits
Incompetent
Rigid
Intemperate
Callous
Corrupt
Insular
Evil
16-10
Practical Implication: Trait Theories
Personal Implications
• Predispositions: Personality tests and other trait
assessments will reveal predispositions
• Development Plans: However, targeted plans aimed at
adapting and learning new behaviors can be effective
ways to develop leadership talent
Organizational Implications:
• Use valid measures of job-related traits to select
employees
• Create management development programs
16-11
Behavioral Styles Theory
Ohio State Studies
Low Consideration
Behavior
High Consideration
Behavior
Low Initiating
Structure Behavior
High Initiating
Structure Behavior
16-12
Figure 16-1
Four Leadership Styles
Showing Consideration
High
Low
Seeks input from
others before taking
action; gets consensus
Emphasizes reaching the
goal while welcoming
suggestions and
encouraging consensus
Passive,
noncommittal, low
impact on followers
Takes charge,
structures employees
tasks
Low
High
Initiating Structure
16-13
Drucker’s Leadership Effectiveness Tips
1. Determine what needs to be done.
2. Determine the right thing to do for the welfare of the
entire enterprise
3. Develop action plans
4. Take responsibility for decisions.
5. Take responsibility for communicating action plans
6. Focus on opportunities rather than problems.
7. Run productive meetings
8. Think and say “we” rather than “I”.
9. Listen first, speak last.
16-14
Test Your Knowledge
Natalia tends to ensure her team is on board with
any decision she makes. The productivity of her
team is below the level of other teams in her business
unit. Based on the Ohio State leadership studies
Natalia is probably:
a.
b.
c.
d.
High on consideration, high on initiating structure
High on consideration, low on initiating structure
Low on consideration, low on initiating structure
Low on consideration, high on initiating structure
16-15
Behavioral Styles: Key Takeaways
Challenged assumption that leaders are born,
not made
Defined “leadership” in actual behaviors
There is no one best style of leadership –
depends on the situation
An “effective” leader behavior can be
misused and have negative consequences for
employees
16-16
Contingency Approaches to Leadership
Effective traits and behaviors depend on the situation
Fiedler’s Contingency Theory
• Premise: There must be a match between the leader’s
style and the demands of the situation for the leader to
be effective.
• Assumption: Leadership style does not change. If a
mismatch occurs between style and the situation,
change the situation.
16-17
Fiedler’s Contingency Theory
Situation depends
on three variables:
1: Leader-Member
Relations
2: Task Structure
3: Position Power
16-18
Your Experience
Have you been in a situation where, as a
leader, one of these situational factors were
not in your favor? A=Yes, B=No
If Yes, was it more practical to _________ in
response to the situation
a. change the situation
b. change your behaviors
Do you agree that leaders have one dominant
style? A=Yes, B=No
16-19
Representation of Fiedler’s Contingency
Model
Figure 16-2
Situational Control
High Control Situations
Moderate Control Situations
Low
Control
Situations
Leader-member
relations
Good
Good
Good
Good
Poor
Poor
Poor
Poor
Task Structure
High
High
Low
Low
High
High
Low
Low
Position Power
Strong
Weak
Strong
Weak
Strong
Weak
Strong
Weak
Situation
I
II
III
IV
V
VI
VII
VIII
Optimal
Leadership
Style
Task-motivated
Leadership
RelationshipMotivated
Leadership
TaskMotivated
Leadership
16-20
Fiedler’s Model: Key Takeaways
Leadership effectiveness is comprised of:
• Traits,
• Behaviors, and
• Situational factors
Organization implications
• Give some consideration to the situational context when
placing people in leadership roles
• Poor leadership in one context may not mean poor
leadership in a different situation
• Organization’s should provide training/mentoring to
increase leaders’ adaptability
16-21
Figure 16-3
House’s Revised Path-Goal Theory
Employee
Characteristics
 Locus of control
Leader Behaviors
 Task ability
 Need for achievement
 Path-goal clarifying
 Experience
 Achievement oriented
 Need for clarity
Leadership
Effectiveness
 Work facilitation
 Employee motivation
 Supportive
 Employee satisfaction
 Interaction facilitation
 Employee performance
 Group oriented-
 Leader acceptance
decision making
 Representation and
networking
 Value based
Environmental Factors
 Work-unit performance
 Task structure
 Work group dynamics
16-22
Path Goal: Key Takeaways
Effective leaders possess and use more than
one style of leadership
•Managers should try new behaviors based on
situational demands
Leaders should clarify paths to goal
accomplishment and remove obstacles
Employee and environmental characteristics
impact the type of leadership style that will be
most effective
16-23
Applying Situational Theories
Identify important outcomes
• What are you trying to achieve?
Identify relevant leadership
types/behaviors.
• What types of behaviors may be appropriate for this
situation? Select one or two best ones.
Identify situational conditions.
• What are the practical considerations that affect your
leadership approach?
16-24
Applying Situational Theories
Match leadership to the conditions
at hand.
• Do your best to determine the leadership
behavior to use given the situation.
Determine how to make the match.
• Change the leader or change the leader’s style?
16-25
Transactional Vs. Transformational
Leadership
Transactional
Leadership focuses
on clarifying
employees’ roles and
providing rewards
contingent on
performance
Appeals to what
followers want
(rewards)
Transformational
transforms employees
to pursue
organizational goals
over self-interest
Appeals to followers’
values, beliefs, selfconcept
16-26
Figure 16-4
Transformational Model of Leadership
Ind. & Org.
characteristics
Leader behavior
 Traits
 Inspirational
motivation
 Life
Experiences
 Organizational
Culture
 Idealized influence
 Individualized
consideration
 Intellectual
stimulation
Effects on followers
and work groups
Outcomes
 Increased intrinsic
motivation,
achievement
orientation, and goal
pursuit
 Personal
commitment to
leader and vision
 Increased
identification with
the leader
 Self-sacrificial
behavior
 Increased
cohesion among
workgroup members
 Organizational
commitment
16-27
The Leader-Member Exchange
(LMX Model)
Assumption: Leaders do not treat all
employees in the same way – it is based
on their one-on-one relationship.
• In-group exchange: a partnership
characterized by mutual trust, respect
and liking
• Out-group exchange: a partnership
characterized by a
lack of mutual trust, respect and liking
16-28
Shared Leadership
… a dynamic interactive
influence process among
individuals in groups for
which the objective is to lead
one another to the
achievement of group or
organizational goals or both.
16-29
Shared Leadership
16-30
Servant Leadership
Servant Leadership
focuses on increased
service to others rather
than to oneself
16-31
Servant Leadership Characteristics
Servant-Leadership
Characteristics
Description
1)
Listening
Focus on listening to identify and
clarify the needs and desires of the
group
2)
Empathy
3)
Healing
Try to empathize with others’ feelings
and emotions
Strive to make themselves and others
whole in the face of failure or suffering
4)
Awareness
5)
Persuasion
Very self-aware of their strengths and
limitations
Rely on persuasion when making
decisions and trying to influence others
16-32
Servant Leadership Characteristics
Servant-Leadership
Characteristics
Description
6)
Conceptualization
Seek the appropriate balance between
a short-term, day-to-day focus, and a
long-term, conceptual orientation
7)
Foresight
Have ability to foresee future outcomes
associated with a current course of
action or situation
8)
Stewardship
Assume they are stewards of the
people and resources they manage
16-33
Servant Leadership Characteristics
Servant-Leadership
Characteristics
9)
10)
Commitment to the growth
of people
Building community
Description
Committed to people beyond their
immediate work role
Strive to create a sense of community
both within and outside the work
organization
16-34
Followers
Significance
• Emphasize the meaningfulness of the work one
does
Community
• Provide a sense of unity and encourage people to
treat others with respect and dignity
Excitement
• Promote feelings of engagement and energy
16-35
Test Your Knowledge
Which of the following is true?
a. A leader is responsible for the quality of the
relationships with his/her subordinates.
b. Followers who protect their leaders from bad news are
appreciated.
c. Followers should focus on doing a good job and not try
to learn about their manager’s style, strengths or
weaknesses.
d. Followers should build on mutual strengths and adjust
to accommodate the leader’s style, goals, expectations
and weaknesses.
16-36
Leadership
Supplemental
Slides
Chapter 16
© 2008The McGraw-Hill Companies, Inc. All rights reserved.
High Potential, High Risk
Hard Driving, Risk
Embracing
Lack of Respect for
Others
Source: Peterson, D. B. (2008). High Potential, High Risk, HR Magazine, pg. 85-88.
16-38
High Potential, High Risk
Brilliant ideas
Inability to
implement through
others
Source: Peterson, D. B. (2008). High Potential, High Risk, HR Magazine, pg. 85-88.
16-39
High Potential, High Risk
Achieve results
May not build a
team in the process
Source: Peterson, D. B. (2008). High Potential, High Risk, HR Magazine, pg. 85-88.
16-40
High Potential, High Risk
Effective work
style
May resist
changing in
leadership roles
Source: Peterson, D. B. (2008). High Potential, High Risk, HR Magazine, pg. 85-88.
16-41
Maximizing Potential
Provide clear
expectations
in terms of
valued
Accurately behaviors
identify
high
potentials
Provide
individuals
with specific
feedback on
how well
their
performance
and
behaviors
meet
expectations
Source: Peterson, D. B. (2008). High Potential, High Risk, HR Magazine, pg. 85-88.
Reward for
both results
and
methods
used to
achieve the
results
16-42
Discussion Questions
Does your organization
have a high potential
program?
Is everyone aware of
who is in it?
What are the pros and cons
of making the high potential
list public?
16-43
Source: Peterson, D. B. (2008). High Potential, High Risk, HR Magazine, pg. 85-88.
Leadership Lessons from Lincoln
Team of Rivals
Share credit
Surround
with team
yourself with
and shoulder
people who
the blame
question your
when things
assumptions
go wrong
Find time to
relax to
replenish
energy
Source: Goodwin, D. K. Leadership Lessons from Abraham Lincoln, Harvard Business Review, April 2009.
16-44
Lessons from Lincoln
In what ways have leaders today
embraced Lincoln’s “team of rivals”
philosophy?
How might these lessons be applied by
senior leaders of organizations?
How might you apply some of these
lessons in your current or future job?
16-45
From the Top
Effective
leadership
communication
was related to:
• Improved employee
engagement (4 times more likely
then least effective
communicators)
• Improved return to
shareholders 91% vs. 67% for
least effective communicators
• Increase in market value (15.7%)
Source: Robb, D. From the Top, HR Magazine, February, 2009.
16-46
From the Top
Marriot CEO Bill Marriott uses
a blog and adds video clips
Enhances two-way
communication so that
messages can be responded to
and leaders can gauge reactions
Technology is
assisting leaders
get their message
out
TCS has a social Q&A platform
called “Just Ask” and is used by
over 15,000 employees
everyday
Kraft’s intranet “The Mix”
includes blogs, videos, Ask the
Executive Team, and Wiki
capabilities
Source: Robb, D. From the Top, HR Magazine, February, 2009.
16-47
Build Portable Skills
Star performers who
moved to different
companies, generally
didn’t fare well…..
unless they were women
Why?
• Generally built better
external networks so they
had portable client
relationships and wellestablished contacts
Source: Groysberg, B. How Star Women Build Portable Skills, Harvard Business Review,
February, 2008.
16-48
Build Portable Skills (con’t)
Why did women build a more extensive
external network?
•Uneasy in-house relationships
•Poor mentorship
•Neglectful colleagues
•Vulnerable position in the labor market
Source: Groysberg, B. How Star Women Build Portable Skills, Harvard Business Review,
February, 2008.
16-49
Management: A True Profession
Should management become a true
profession?
•Code of conduct
•Governing body
•Trust by society to act with high
standards of integrity
Source: Khurana, R. & Nohria, N. It’s Time to Make Management a True Profession, Harvard Business Review,
October 2008.
16-50
Management: A True Profession
Hippocratic Oath for Managers
Sustainable value is created
when the enterprise produces
As a manager my purpose is
an economic, social, and
to serve the public’s interest
environmental output that is
by enhancing the value my
measurably greater than the
enterprise creates for society.
opportunity cost of all the
inputs it consumes.
16-51
Source: Khurana, R. & Nohria, N. It’s Time to Make Management a True Profession, Harvard Business Review,
October 2008.
Discussion Questions
How would business
education have to change?
How would people be
certified into the
profession?
How are managerial
(soft) skills best
learned?
How would the level
of respect for
management change?
Source: Khurana, R. & Nohria, N. It’s Time to Make Management a True Profession, Harvard Business Review,
October 2008.
16-52
Peter Principle
Employees are rewarded by
being elevated up the
management hierarchy until
they reach a position in which
they are not competent
Is the Peter Principle
still alive?
How can it be
prevented?
Source: Buchanan, L. Why Incompetents Will Always Rule the World: The Peter Prnciple lives on, Inc. Magazine,
April 2009
16-53
Peter Principle (con’t)
“Leaders don’t matter
that much. They are
like light bulbs;
You’ve just got to find
one that works.”
~ Robert Sutton
Do you agree with these
statements?
Sutton argues that
plain competence –
people willing and
able to do their jobs is
all that matters
What would
Hersey and
Blanchard’s
response be?
Source: Buchanan, L. Why Incompetents Will Always Rule the World: The Peter Prnciple lives on, Inc. Magazine,
April 2009
16-54
Video Cases
Women Leading in the Workplace and Space Shuttle
Commander Eileen Collins
Destination CEO: Starbucks
16-55
Management in the Movies
Fast Times at Ridgemont High
In this scene, Brad (Judge Reinhold) is covering the
front counter for Arnold (Scott Thomson).
Questions
• What could Brad have done differently to make the
situation better?
• Should Brad have had any training to take care of similar
situations?
• What impact can a policy like “The customer is always
right” have on a firm? Can it be negative?
16-56
Leadership Development
1. Develop a comprehensive strategy for
integrated leadership development
2. Connect leadership development to
organization’s environmental challenges
3. Use the leadership story to se the context for
development
4. Balance global enterprise-wide needs with
local individual needs
Source: Lockwood, N.Leadership Development: Optimizing Human Capital for Business Success, 2006 SHRM Research Quarterly;
adapted from Weiss, Dl, & Molinaro, V. (2006). Integrated leadership development. Industrial and Commercial Training, 38, 1, 3-12.
16-57
Leadership Development
5. Employ emergent design and
implementation
6. Ensure that development options fit the
culture
7. Focus on critical moments of the leadership
lifecycle
8. Apply a blended methodology
Source: Lockwood, N.Leadership Development: Optimizing Human Capital for Business Success, 2006 SHRM Research Quarterly;
adapted from Weiss, Dl, & Molinaro, V. (2006). Integrated leadership development. Industrial and Commercial Training, 38, 1, 3-12.
16-58
Succession Planning
1. Visible support from the CEO and top
management
2. Clearly defined leadership criteria
3. A defined plan to find, retain, and motivate
future leaders
4. A simple, easy-to-follow, measurable process
Source: Lockwood, N.Leadership Development: Optimizing Human Capital for Business Success, 2006 SHRM Research Quarterly; adapted
from Berchelman, D.K. (2005, Fall). Succession planning. The Journal for Quality and Participation, 28, 3, 11-13.
16-59
Succession Planning
5. The use of succession planning to reinforce
the corporate culture
6. A process that focuses primarily on
leadership development
7. A process that is a real organizational
priority
Source: Lockwood, N.Leadership Development: Optimizing Human Capital for Business Success, 2006 SHRM Research Quarterly; adapted
from Berchelman, D.K. (2005, Fall). Succession planning. The Journal for Quality and Participation, 28, 3, 11-13.
16-60
Leaders on Leadership
Proctor & Gamble’s CEO A.J. Lafley (2006 CEO of the Year)
• “Here is the dilemma, on the one hand, leadership is
critically important. On the other hand, there’s never
enough of it. I would argue that it’s the scarcest resource
in the world. And we scramble very hard to hire,
develop and train leaders all around the world.”
CEO, Microsoft, Steve Ballmer
Speech given September 14th, 2006, ,A.J. Lafley
• “There is no single blueprint for leadership”;
“Leadership requires a heavy degree of personalization”
• …..but “a universally applicable characteristic for
anybody who wants to be a leader is passion.”
Source: Steve Ballmer Speaks Passionately about Microsoft,
Leadership ... and Passion; Knowledge@Wharton, January 10, 2007
16-61
Lafley on Leadership
“I don’t believe leaders are born,”
contends Lafley. “I believe people
choose to become leaders. Something
happens in your life and you’re moved
by a purpose, mission or a course. Then
you make a choice to commit and get
involved.”
Speech given Septermber 14th, 2006, ,A.J. Lafley
16-62
Lafley on Leadership
Lafley says a value system that includes
qualities such as integrity and trust are
non-negotiable in a leader. Leaders
don’t have to have identical beliefs but a
common value system is what binds
people across cultures.
Speech given Septermber 14th, 2006, ,A.J. Lafley
16-63
Transformational Leaders
Vision Statements
Walt Disney, Walt Disney, Co.
• Provide wholesome, high-quality entertainment to
families throughout the world
Herb Kelleher, Southwest Airlines
• To provide excellent service and great value to the
flying public
Mary Kay Ash, Mary Kay Cosmetics
• To enhance the self-esteem of women by building
their financial independence while providing
quality cosmetics.
16-64
7 Habits of Spectacularly Unsuccessful
Executives
1. They see themselves and their companies as
dominating their environment
• “Our products are superior, and so am I. We’re
untouchable. My company is successful because of my
leadership and intellect – I made it happen.”
2. They identify so completely with the company that
there is no clear boundary between their personal
interests and their corporation’s interests.
• “I am the sole proprietor. This company is my baby.
Obviously, my wants and needs are in the best interest
of my company and stockholders.”
16-65
7 Habits of Spectacularly Unsuccessful
Executives
3. They think they have all the answers
• “I’m a genius. I believe in myself and you
should too. Don’t worry, I know all the
answers. I’m not micro-managing, I’m being
attentive.”
4. They ruthlessly eliminate anyone who isn’t
completely behind them
• “If you’re not with me, you’re against me! Get
with the plan, or get out of the way. Where’s
your loyalty?”
16-66
7 Habits of Spectacularly Unsuccessful
Executives
5. They are consummate spokespersons, obsessed with
the company image
“I’m the spokesperson. It’s all about image. I’m a
promotions and public relations genius. I love making
public appearances; that’s why I star in our
commercials.”
6. They underestimate obstacles.
“It’s just a minor roadblock. Full steam ahead! Let’s
call that division a “partner company” so we don’t
have to show it on our books.”
7. They stubbornly rely on what worked for them in
the past.
“We’ve done it before, we can do it again.”
16-67
Top 20 U.S. Companies for Leaders
1. 3M Co.
11. Capital One Financial Corp.
2. General Electric Co.
12. Whirlpool Corp.
3. Johnson & Johnson
13. Colgate-Palmolive Co.
4. Dell Inc.
14. Pitney Bowes Inc.
5. Liz Claiborne, Inc.
15. Pfizer Inc.
6. IBM
16. FedEX Corp.
7. The Procter & Gamble Co.
17. Washington Group
International, Inc.
8. General Mills Inc.
18. The Home Depot, Inc.
9. Medtronic Inc.
19. Avery Dennison Corp
10. American Express Co.
20. Sonoco Products Co.
16-68
Leadership Development Activities
85% hold leaders accountable for developing their
direct reports, compared to 46% of other companies
53% earmark 6-15% of incentive pay for leadership
development, vs. 34% of other companies
95% of these companies say their leadership
initiatives attract quality leaders, compared to 59% of
other companies
95% have a CEO succession plan; less than 60% of
other companies have one
85% promoted their current CEO from within, vs.
68% of other companies
16-69
A Conceptual Framework for
Understanding Leadership
Leader
Characteristics/
Traits
Managerial
Behavior/Roles
Desired End
Result
Situational
Variables:
Individual &
Organizational
Levels
16-70
Traits Displayed by the Level Five
Leader
Personal
Humility Creates
Professional
Will
Demonstrates a compelling modesty,
superb results, a clear catalyst
shunning public adulation; never
boastful
Acts with quiet, calm determination;
relies principally on inspired standards,
not inspiring charisma, to motivate
Channels ambition into the company,
not the self; sets up successors for even
more greatness in the next generation
Looks in the mirror, not out the window
to apportion responsibility for poor
results, never blaming other people,
external factors, or bad luck
in the transition from good to great
Demonstrates an unwavering resolve to
do whatever must be done to produce
the best long-term results, no matter
how difficult
Sets the standard of building an
enduring great company; will settle for
nothing less
Looks out the window, not in the mirror,
to apportion credit for the success of
the company—to other people, external
factors and good luck
16-71
Are Level 5 Leaders Born or Created?
Those who do not have
Level 5 Seed:
Never put the company’s
needs before their own
Work is about what they
get for themselves
Personal Ambition to get
them to Level 4 is at odds
with Humility to get them
to Level 5
Those who do have
Level 5 Seed:
Under right circumstances
that seed can develop
Are usually products of
extreme life
circumstances
Conscientiously lead using
disciplines that move
them in the right direction
16-72
Benefits of Passion
Attracting employees
and customers
Loyalty
Direction and Focus
Energy
Heightened
Performance
Unity
Critical Edge
16-73
Instilling Passion in Your Company
Step One: Start from the
Heart
Step Two: Discover Core
Passions
Step Three: Clarify
Purpose
Step Four: Define Actions
Step Five: Perform with
Passion
Step Six: Spread
Excitement
Step Seven: Stay the
Course
16-74
McGraw-Hill
Leading for Loyalty
Preach what you practice
Play to win-win
Be picky
Keep it simple
Reward the right result
Listen hard, talk straight
16-75
A Multiple Level Multidimensional
Model of Leadership
Fundamental Human
Processes
Leadership Core
Processes
Substitutes for
Leadership
Leadership Outcomes
Other Multi-Level
Outcomes
16-76
Decision-Making Processes
Decide
A
Consult Individually
E
Consult Group
C
Leader makes decision; announce or “sell”
decision to group; use expertise to gather
relevant information
Leader presents problem to group members
individually; get suggestions and make decision
Leader presents problem to group in a meeting;
get suggestions and make decision
16-77
Decision-Making Processes Cont.
Facilitate
Delegate
D
B
Present problem to group in a meeting; leader
acts as facilitator not placing more weight on
his or her opinions based on their position;
define problem and boundaries in which
decision must be made
Permit the group to make decision within
limits; group identifies and diagnoses the
problem, develops alternative procedures for
solving it, and decides one or more alternative
solutions; leader plays no direct role unless
asked—behind the scenes he or she provides
needed resources and encouragement
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Situational Factors in the DecisionMaking Process
Decision Significance
DS
Importance of Commitment
Leader Expertise
significance of decision to the
success of the project or
organization
Importance of team members’
IC commitment to the decision
Leader’s knowledge or expertise in
relation to the problem
LE
Likelihood of Commitment
LC
Likelihood team would commit
itself to a decision that leader might
make on his or her own
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Situational Factors in the DecisionMaking Process
Goal Alignment
Group Expertise
GA
Degree to which team supports the
organization’s and leaders goals at
stake with this problem
GE
team members’ knowledge or
expertise in relation to this problem
Team Competence
TC
Ability of team members to work
together to solve problem
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Leadership and the Decision-Making
Process
High
A
LC
LE
GA
TC
GE
GA
LC
DS
B
C
IC
State the
problem
TC
GE
Low
GE
E
TC
D
C
A
D
GA
LE
GE
TC
E
GA
LC
IC
D
A
B
TC
D
A
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Conclusion
Questions for discussion
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