Upgrade to remove ads
Leadership and Decision Making (Part 3)
Terms in this set (47)
Decision Making Process: Problem recognition
To discover the problem identification, internal and external situations are to be scanned.
Take decisions and locate the problem in its context.
Essential to ascertain the basic nature of the problem/s under consideration.
Help leader to decide on whether the issue is a strategic or operational, major or minor and long-term or short-term.
Decision Making Process: Defining the problem
Define the problem as clear as possible.
Quality and the efficiency of decision making fully depend on the level of clarity in the problem definition.
Problem is defined in terms of its origin, scope, symptoms, causes, importance, gravity, intensity and consequences.
Decision Making Process: Specifying the objectives
Decision making process is underpinned by a set of objectives.
Achievement of those objectives that are likely to be achieved by solving the problem.
Decision making objectives may either be quantitative or qualitative in nature.
Decision Making Process: Development of alternatives
Decision alternatives are crucial to the process.
Leader must uncover all the potential decision options.
Decision alternatives are identified either based on leaders' past experience and expertise or through research and analysis, creative thinking (brainstorming) and innovativeness of leaders.
Decision Making Process: Evaluation of alternatives
Evaluated based on the consequences through forecasting and other appropriate methods.
Risk, time, efficiency of alternatives and resources are essential criteria of evaluating.
Evaluate in terms of feasibility, effectiveness and consequences.
Ethical and moral values, social implication, and image of the organisation should also be taken into consideration.
Decision Making Process: Selection of the desired alternatives
Final choice depending on leaders' past experience, managerial skill and judgement.
Feasibility, acceptability, practicality and simplicity of alternative solutions should be considered.
Organisational plans, policies, rules, and other human factors, should be considered
Decision Making Process: Implementation of the alternative/s:
Decision implementation involves a series of actions and utilisation of organisational resources.
Structural, administrative and logical organisational arrangements such as delegation of authority, resource allocation, activity assignment and establishing control-mechanisms are to be put in place.
Decision Making Process: Evaluation and Feedback
Ongoing monitoring and evaluation is an essential step in this process.
How well the decision is implemented, what has been resulted and what alternative arrangements are needed at this stage
Problems and Difficulties of Making Decisions
Inadequate and incomplete information:
- Leave the leaders with difficulty in assessing the context to the problem/s and identifying alternatives.
Threats emanating from changing business environment:
- Difficult to predict the consequences of certain decision/s and also the influence of other variables on the decision.
Lack of acceptance by the subordinates:
- Subordinates may resist supporting the implementation of the decision.
- When the decision and its possible consequences are not properly communicated to the followers, the needed support for implementation will be difficult to obtain.
Normative model of leadership
Vroom and Yetton (1973) argued that leaders can often enhance group performance by using an optimal amount of participation in the decision making.
They identified five leadership styles in terms of the level of participation in the decision making process
Five leadership styles
Solves the problem or makes the decision by himself/herself.
2. Consult individually:
Consult followers individually by sharing the problem with them.
3. Consult group:
Shares the problem with followers in a group meeting and obtains ideas and suggestions.
Shares problem with followers in a group and request them to define the problem.
Shares the problem among the group and collectively generates and evaluates alternatives.
1. Decision Significance:
How important is the decision; High (H) or Low (L) to the success of the project or organization?
2. Importance of Commitment:
How important is the followers' commitment; High (H) or Low (L) to implement the decision?
3. Leader Expertise:
How much knowledge and expertise would the leader possess in this specific decision?
4. Likelihood of Commitment:
Would the followers be committed, if the leader were to make the decision alone?
5. Group Support for Objectives:
Do followers have high (H) or low (L) support for goals to be attained in solving the problem?
6. Group Expertise:
How much knowledge and expertise do the individual followers have with this specific decision?
7. Team Competence:
Is the ability of the individuals to work together as a team to solve the problem is high (H) or low (L)?
Leader-Centred Decision Making Model
Leader exercises his or her power to initiate, direct, drive, instruct, and control team members.
* Focus on the task and ignore personal feelings and relationships
* Seek opinions and try to get agreement but keep the right to make final choices
* Control group discussion and firmly stop disruptive and irrelevant discussion.
* Discourage members from expressing their feelings and should strive to maintain a rational, logical discussion.
* Guard against threats to his or her authority
Team-Centred Decision-Making Model
Team-centred decision making style is preferred when;
* Relevant information and expertise are scattered
* Participation is needed for commitment
* Concentrating power in an individual hurts the team
* Unpopular decisions need to be made
Leadership Roles in Decision Making
INTERNAL FOCUS <Facilitator, Broker > EXTERNAL FOCUS
Producer and Director named as "task leadership quadrant" which is characterized by a control orientation and an external environment focused.
Monitor and Coordinate with a control orientation and focusing on the internal functions of the unit are the key features of the stability leadership quadrant.
People leadership which is having a flexible orientation and a focus on the internal functioning of the unit, while emphasizing mentoring subordinates and facilitating group process in the unit. Facilitator and mentor roles are the two key roles.
Adaptive leadership is characterised by a flexible orientation and a focus on the environment external to the unit. This quadrant contains the innovator and broker roles.
Leadership Decision Making Styles
Leader Driven Decision > Employee Driven Decision
Directive, Consultative, Democratic, Consensus
Directive decision making style is a top down approach with no negotiation opportunities given to employees.
Consultative decision making style requests the team members to provide the inputs, yet the ultimate decision making power held by the leader.
Democratic decision making style is performed through proposing possible options by both the leader and team members followed by a vote process.
Team members and the leader should collectively arrive at decisions when Consensus-Based decision making style is executed.
Leadership and Ethical Decision Making
1. Recognition of a moral or ethical problem
2. Judgment against some ethical criteria
3. Weighting the importance of the ethical component of the decision above all other concerns
4. Acting based on ethical principles
"Crisis leadership is the process of leading group members through a sudden and largely unanticipated, intensely negative, and emotionally draining circumstance" (DuBrin 2013).
Any emotionally charged situation which attracts negative stakeholder reaction leading to negative effects on financial wellbeing, reputation and survival of the organisation is considered as a crisis (James, Wooten, & Dushek, 2011).
Effective crisis leader should possess the characteristics such as being charismatic and inspiring, strategic thinking and willingness to express compassion.
Charismatic leaders support workers during a crisis and offer help to cope in distressful events.
Essential the leader to be a strategic thinker to see big picture
Gender in Decision Making
Women are more influenced by the environment.
Search for more information,
Take more time before making decision.
Women tend to be more risk-averse and competition-averse than male decision makers.
Social preferences seem to be highly context bound than that of men.
Culture and Decision Making
Significant differences in decision making styles in terms of national culture.
Individualistic leaders make decisions for personal accomplishment whereas collectivist leaders promote social connectedness.
Decision making is based on friendship in order to keep 'Face' in China while for Swedish leaders decision making is results oriented.
Understanding of cultural differences in decision making will help the leaders effectively decide on possible variations
Making Effective Decisions as a Leader
Richard Branson on four major ways of making tough decisions: preventing from acting on an emotional response, finding as many downsides to an idea as possible, looking at the big picture and protecting the downside.
Great leaders are great decision makers.
Make decisions with a balance between emotions and reason as all the decisions affect employees, customers, stakeholders.
Leaders need to make challenging decisions and hence being "decisive" has become a key skill.
Effectively communicating the decision to the rest of the group, team or the organisation is a key ability.
Ability to move forward quickly when there is limited information available.
Essential that leader to be emotionally self-control in order to make a farsighted decision.
Another very important matter to be considered is to start trusting your intuition
Possible Exam Questions
Why decision making is important to an organisation?
What are the main decision making roles of a leader?
What is the role of a leader during a crisis situation?
Should a leader confine to one leadership style in making decisions? What is your opinion on this?
How would you determine the level of participation in decision making by followers and leader?
Great Man Theory
Leaders are born, not made.
This approach emphasized that a person is born with or without the necessary traits of leaderships.
Early explanations of leadership studied the "traits" of great leaders
* "Great man" theories (Gandhi, Lincoln, Napoleon)
* Belief that people were born with these traits and only the great people possessed them
Great Man approach actually emphasis "charismatic" leadership. charisma being the Greek word for gift.
No matter what group such a natural leader finds himself in, he will always be recognized for what he is.
According to the great man theory of leadership, leadership calls for certain qualities like commanding personality, charm, courage ,intelligence, persuasiveness and aggressiveness.
What characteristics or traits make a person a leader?
Great Man Theory: Individuals are born either with or without the necessary traits for leadership
Trait theories of leadership sought personality, social, physical or intellectual traits that differentiate leaders from non leaders
Trait view has little analytical or predictive value
Technical, conceptual and human skills (Katz 1974)
- Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from non-leaders
- Leadership traits: Ambition and energy, the desire to lead, honestly and integrity, self confidence, intelligence, job-relevant knowledge
- Abilities: supervising ability, intelligence, initiative
- Personal Traits: self-assurance, decisiveness, maculine/feminine, maturity, working class affinity
- Motivators: need for occupational achievement, self-actualisation, power over others, high financial reward, job security
Limitation of Trait Theories
No universal traits that predict leadership in all situations.
Traits predict behavior better in "weak" than "strong" situations.
Unclear evidence of the cause and effect of relationship of leadership and traits.
Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.
In contrast with trait theory, behavioural theory attempts to describe leadership in terms of what leaders do, while trait theory seeks to explain leadership on the basis of what leaders are. Leadership according to this approach is the result of effective role behaviour. Leadership is shown by a person's acts more than by his traits. This is an appropriate new research strategy adopted by Michigan Researchers in the sense that the emphasis on the traits is replaced by the emphasis on leader behaviour (which could be measured).
Theories proposing that specific behaviors differentiate leaders from non leaders
Pattern of actions used by different individuals determines leadership potential
- Autocratic, democratic and laissez-faire
- Michigan Studies: Employee centered versus task centered.
Theories that attempt to isolate behaviors that differentiate effective leaders from ineffective leaders.
Behavioral studies focus on identifying critical behavioral determinants of leadership that, in turn, could be used to train people to become leaders
Behavioural Leadership Studies:
The Ohio State Studies sought to identify independent dimensions of leader behavior
- Initiating structure
The University of Michigan Studies sought to identify the behavioral characteristics of leaders related to performance effectiveness
- Employee oriented
- Production oriented
Ohio State Studies
The extent to which a leader is likely to define and structure his or her role and those of subordinates in the search for goal attainment.
The extent to which a leader is likely to have job relationships characterised by mutual trust, respect for subordinates' ideas, and regard for their feelings.
University of Michigan Studies
Emphasising interpersonal relations; taking a personal interest in the needs of employees and accepting individual differences among members.
One who emphasis technical or task aspects of the job.
Contingency Theories & Situational Theories of Leadership
~ Fiedler Model (Cognitive Resource Theory)
~ Hersey and Blencherd's Situational Theory
~ Leader-member Exchange Theory
~ Path-Goal Theory
~ Leader Participation Model
While trait and behavior theories do help us understand leadership, an important component is missing: the environment in which the leader exists.
Contingency Theory deals with this additional aspect of leadership effectiveness studies.
The theory that effective groups depend upon a proper match between a leader's style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.
There are basically three steps in the model
1) Identifying Leadership Style -
Fiedler believes a key factor in leadership success is the individual's basic leadership style
So he created the Least Prefer Co-worker (LPC) Questionnaire
LPC:-An instrument that tells to measure whether a person is task or relationship oriented.
If the low LPC score then the person is task oriented
If the high LPC score then the person is relationship oriented
2) Defining the Situation -
Fiedler identified three contingency dimensions that define the key situational factors
1. Leader-member relations:
The degree of confidence, trust, and respect, members have in the leader
2. Task structure:
The degree to which the job assignments are procedurized
3. Position Power:
The degree of influence a leader has over power variables such as hiring, firing, promotion etc.
3) Matching leaders and situations -
After knowing the leadership style through LPC and defining all the situations, we will chose the leader who will fit for the situation.
Two ways in which to improve leader effectiveness:
1) Change the leader to fit the situation
2) Change the situation to fit the leader
Cognitive Resource Theory
A theory of leadership that states that stress unfavorably effects the situation, and intelligence, and experience can lessen the influence of stress on the leader.
A refinement of Fielder's original model:
- Focuses on stress as the enemy of rationality and creator of unfavorable conditions
- A leader's intelligence and experience influence his or her reaction to that stress
- Low Stress: Intellectual abilities are effective
- High Stress: Leader experiences are effective
Research is supporting the theory
Hersey & Blanchard's Situational Leadership (SLT)
A model that focuses on follower "readiness"
- Followers can accept or reject the leader
- Effectiveness depends on the followers' response to the leader's actions
- "Readiness" is the extent to which people have the ability and willingness to accomplish a specific task
A paternal model:
- As the child matures, the adult releases more and more control over the situation
- As the workers become more ready, the leader becomes more laissez-faire
Hersey and Blencherd identify four specific leader behaviors.
The most effective behavior depends on the follower's ability and motivation:
1. If followers are unable and unwilling to do a task,
the leader needs to give specific and clear directions.
2. If followers are unable and willing,
The leader need to display a high task orientation.
3. If the followers are able and unwilling,
The leader needs to use a supportive and participative style.
4. If followers are both able and willing,
The leader doesn't need to do much.
Leader-Member Exchange (LMX) Theory
Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performances ratings, less turnover, and greater satisfaction with their superior.
- Because of time pressures, leaders form a special relationship with a small group of followers: the "in-group"
- This in-group is trusted and gets more time and attention from the leader (more "exchanges")
- All other followers are in the "out-group" and get less of the leader's attention and tend to have formal relationships with the leader (fewer "exchanges")
- Leaders pick group members early in the relationship
House's Path-Goal Theory
The theory that a leader's behavior is acceptable to subordinates insofar as they view it as a source of either immediate or future satisfaction.
- Leaders provide followers with information, support, and resources to help them achieve their goals
- Leaders help clarify the "path" to the worker's goals
- Leaders can display multiple leadership types
The theory that it is the leader's job to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organisation.
Four types of leaders:
1. Directive: focuses on the work to be done
2. Supportive: focuses on the well-being of the worker
3. Participative: consults with employees in decision-making
4. Achievement-Oriented: sets challenging goals
Path-Goal Theory: How it works
LEADER BEHAVIOUR > GROUP MEMBERS > TASK CHARACTERISTICS
Directive Leadership (provides guidance and psychological structure) > Dogmatic, Authoritarian > Ambiguous, Unclear, Complex.
Supportive Leadership (provides nurturance) > Unsatisfied, Need affiliation, Need Human touch > Repetitive, Unchallenging, Mundane and Mechanical
Participative (provides involvement) > Autonomous, Need for control, Need for clarity > Ambiguous, Unclear, Unstructured
Achievement Orientated (Provides challenges) > High expectations, Need to excel > Ambiguous, Challenging, Complex
Yroom & Yetton's Leader-Participation Model
A leadership theory that provides a set of rules to determine the form and amount of participative decision making in different situations.
How a leader makes decisions is as important as what is decided.
- Leader behaviours must adjust to reflect task structure
- "Normative" model: tells leaders how participative to be in their decision-making of a decision tree.
Transactional Leadership style starts with the idea that team members agree to obey their leader when they accept a job. The "transaction" usually involves the organization paying team members in return for their effort and compliance. The leader has a right to "punish" team members if their work doesn't meet an appropriate standard.
Transactional leadership offers some benefits.
1. This leadership style clarifies everyone's roles and responsibilities. 2. People who are ambitious or who are motivated by external rewards - including compensation - often thrive.
The downside of this leadership style is that team members can do little to improve their job satisfaction. It can feel stifling, and it can lead to high staff turnover.
Transactional leadership is really a type of management, not a true leadership style, because the focus is on short-term tasks. It has serious limitations for knowledge-based or creative work. However, it can be effective in other situations.
Autocratic Leadership is an extreme form of leadership, where leaders have complete power over their people.
Staff and team members have very room to make suggestions, even if those suggestions would be in the best interest of the group.
The benefits of the autocratic leadership style is that it is best used in crisis.
It can be an efficient and effective tool when quick decisions are needed, and work needs to get done.
The downside to this form of leadership is that people may resent being treated this way.
Consistently using this style may lead to a loss of team members, and high turn over. It is best used to accomplish routine tasks. In those instances, the advantages may outweigh the disadvantages.
Bureaucratic leaders work "by the book." They follow rules rigorously, and ensure that their people follow procedures precisely.
Bureaucratic leadership is also useful in organizations where employees do routine tasks (as in manufacturing).
Much of the time, bureaucratic leaders achieve their position because of their ability to conform to and uphold rules, not because of their qualifications or expertise. This can cause resentment when team members don't value their expertise or advice.
The downside of this leadership style is that it's ineffective in teams and organizations that rely on flexibility, creativity, or innovation.
Charismatic leadership style can resemble transformational leadership because these leaders inspire enthusiasm in their teams and are energetic in motivating others to move forward. The difference between charismatic leaders and transformational leaders lies in their intention. Transformational leaders want to transform their teams and organizations. Charismatic leaders are often focused on themselves, and may not want to change anything.
1. A leader who believes more in him/herself than in the team
2. A person who simply wants to make a name for him/herself
3. This type of leader considers the success of the team as being contingent on the leaders presence.
A charismatic leader might believe that he/she can do no wrong, even when others are warning them about the path they are on.
This feeling of invincibility can ruin a team or an organization.
Democratic leaders make the final decisions, but they include team members in the decision-making process.
They encourage creativity, and team members are often highly engaged in projects and decisions.
There are many benefits of democratic leadership. Team members tend to have high job satisfaction and are productive because they're more involved in decisions. This style also helps develop people's skills.
Because participation takes time, this approach can slow decision-making, but the result is often good. The approach can be most suitable when working as a team is essential, and when quality is more important than efficiency or productivity.
The downside of democratic leadership is that it can often hinder situations where speed or efficiency is essential. For instance, during a crisis, a team can waste valuable time gathering people's input. Another downside is that some team members might not have the knowledge or expertise to provide high quality input.
This French phrase means "leave it be," and it describes leaders who allow their people to work on their own. This type of leadership can also occur naturally, when managers don't have sufficient control over their work and their people.
This leadership style can be effective if the leader monitors performance and gives feedback to team members regularly. It is most likely to be effective when individual team members are experienced, skilled, self-starters.
The downside is that it can be damaging if team members don't manage their time well or if they don't have the knowledge, skills, or motivation to do their work effectively.
Task-oriented leaders focus only on getting the job done and can be autocratic. They actively define the work and the roles required, put structures in place, and plan, organize, and monitor work. These leaders also perform other key tasks, such as creating and maintaining standards for performance.
The benefit of task-oriented leadership is that it ensures that deadlines are met, and it's especially useful for team members who don't manage their time well.
However, because task-oriented leaders don't tend to think much about their team's well-being, this approach can suffer many of the flaws of autocratic leadership, including causing motivation and retention problems.
With people-oriented leadership, leaders are totally focused on organizing, supporting, and developing the people on their teams.
This is a participatory style and tends to encourage good teamwork and creative collaboration. This is the opposite of task-oriented leadership.
People-oriented leaders treat everyone on the team equally.
They're friendly and approachable, they pay attention to the welfare of everyone in the group, and they make themselves available whenever team members need help or advice.
The benefit of this leadership style is that people-oriented leaders create teams that everyone wants to be part of. Team members are often more productive and willing to take risks, because they know that the leader will provide support if they need it.
The downside is that some leaders can take this approach too far; they may put the development of their team above tasks or project directives.
This term, created by Robert Greenleaf in the 1970s, describes a leader often not formally recognized as such.
When someone at any level within an organization leads simply by meeting the needs of the team, he or she can be described as a "servant leader."
In many ways, servant leadership is a form of democratic leadership because the whole team tends to be involved in decision making.
However, servant leaders often "lead from behind," preferring to stay out of the limelight and letting their team accept recognition for their hard work.
Although you can use servant leadership in many situations, it's often most practical in politics, or in positions where leaders are elected to serve a team, committee, organization, community, or ministry.
Transformational leaders are inspiring because they expect the best from everyone on their team as well as themselves. This leads to high productivity and engagement from everyone in their team.
As the "vision caster" the leader inspires others to manifest the vision.
THIS SET IS OFTEN IN FOLDERS WITH...
Crisis & Disaster
Psych Nursing Terms
Mental Health- Personality Disorders
YOU MIGHT ALSO LIKE...
MNGT 3100 Chapter 9
Ch5 - Contingency & Situation Leadership -m
Chapter 5: Situational Influences on Effective Lea…
MGMT 467 Chap 4
OTHER SETS BY THIS CREATOR
ITL (Weeks 10-12)
ITL (Weeks 7-9)