organizational leadership & decision making. your facilitator katrina mcbride, ceo exo...
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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
Why do Organizations Exist?
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
What is an Organization?
Organizations exist because they provide the
setting in which members can meet their
economic, social, validation, and information
needs
“…a social influence process in which the leader seeks the voluntary participation of subordinates
in an effort to reach organizational goals.”Tom Peters and Nancy Austin
A Passion for Excellence
What is Leadership?
• Inspiration• Emotional support• Common goals• Vision • Strategic planning
What does Leadership Involve?
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• Administers• Maintains• Controls• Short-term view• Asks how & when• Initiates • Accepts the status- quo• Does things right
Leaders• Innovates• Develops• Inspires• Long-term view• Asks what & why• Originates• Challenges the
status – quo• Does the right things
RewardCoercive
Referent
Expert
Sources of Power
Legitimate
Sources of power
Issues Regarding Leadership
Evolution of leadership
SOURCE: M. Emmi, SCT Corporation
KnowledgeAge
150
0
198
0
199
0
200
0
110
0
196
0
130
0
170
0
188
0
190
0
192
0
194
0
197
0
AgriculturalAge
IndustrialAge
• Speed/Efficiency
Uncertainty/Risk
Flexibility
High Productivity /Low Cost
Characteristics of the New Economy
• Effectiveness
• Quality of Service
• Shorter Lead Time
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 Culture4 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
TEXTtop-down,
conservative,
good at cost
control,
poor at
innovation and
integration
TEXT
Traditionalist Consensus Driven
Profit DrivenStructure Futurist
middle-out,
decisions taken
by independent
business
managers,
good at niche
tailoring,
good at
innovation,
poor at
integration
middle-out,
decisions taken
by consensus,
good at
integration,
good at
innovation,
poor at niche
tailoring
top-down,
entrepreneurial
and chaotic,
excellent at
innovation,
poor at
integration,
poor at cost
control
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
• The ugly baby•Role-Model:
What is paid 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 weekAssigned 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
• 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
• 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 Based on the behaviors that represent leadership
Initiating Structure
Con
side
ratio
nHigh
Low
Low High
Low structureHigh 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
High structureHigh consideration
The leader fails to provide necessary structure and demonstrates little consideration for employee needs and wants
Low structureLow consideration
Primary emphasis is placed on structuring employee task while the leader demonstrates little consideration for employee needs and wants
High structureHigh consideration
Ohio State studies (1940-50s)
START
What is your Behavioral StyleSelf-Assessment
FORMAL
INFORMAL
DO
MIN
AN
T
EA
SY
-GO
ING
CONTROLLING ANALYZING
PROMOTING SUPPORTING
2000 Senn-Delaney Leadership Consulting
Situational TheoriesDifferent 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
Performance depends on:– Degree which the situation gives the
leader control and influence– The leader’s basic motivation
The contingency model is based on the premise that a leader has one dominant style and will manipulate a situation tofit that style
Hersey & Blanchard’s Situational Leadership Theory
D4 D3 D2 D1
Developed Developing
DEVELOPMENT LEVEL OF INDIVIDUAL
HighS1
S2S3
S4
High
Su
pp
ort
ive
be
ha
vio
r
Low Directive Behavior
TellingS1
Provide specificInstructions & closely
Supervise performance
ParticipatingS3
Share ideas & facilitateIn decision making
SellingS2
Explain decisions &Provide opportunity for
clarification
DelegatingS4
Turn over responsibilityFor decisions
Implementation
Path-Goal theoriesRobert 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– Directive – Supportive– Participative– Achievement-oriented
Path-Goal Theory of Leadership
Leader identifiesemployee needs.
PathAppropriate goalsare established.
DirectiveLeader connectsrewards with goal(s)
Directive
Leader provides assistanceon employee’s path toward goals.
Employees become satisfied andmotivated and accept the leader.
Effective performanceoccurs.
Both employees and organization better reachtheir goals.
Supportive behavior Participative behavior
AchievementMotivation
Types of Leaders
Transformational Leaders“The Brokers of Dreams”
TRANSFORMATIONAL LEADERSHIPTRANSFORMATIONAL LEADERSHIP
Creating a vision
Creating a vision
Building commitmentto the vision
Building commitmentto the vision
Communicatingthe vision
Communicatingthe vision
Modelingthe visionModelingthe vision
Currently the most popular perspective
Transformational LeadersOld 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.
VisionaryCreate 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 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 LeadershipSituations for Application
Charismatic LeadersCharismatic 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
The Decision-Making Process
Process Linked with Superior Outcomes
• Multiple alternatives
• Assumption testing
• Well-defined criteria
• Dissent and debate
• Perceived fairness
"diversity in counsel, unity in command.“-Cyrus the Great, the founder of the Persian Empire
Advocacy Inquiry
Concept of decision making a contest collaborative problem solving
Purpose of discussion persuasion and lobbying testing and evaluation
Participants' role spokespeople critical thinkers
Patterns of behavior strive to persuade others defend your position downplay weakness
present balanced arguments remain open to alternatives accept constructive criticism
Minority views discouraged or dismissed cultivated and valued
Outcome winners and losers collective ownership
Advocacy views Decision-Making as a Contest.
Inquiry views Decision Making as collaborative problem solving
Decision-Making Two Approaches
Case Studies: Exceptional Leaders
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
CNN’s Top 25
“…power has no sex.” - Katherine Graham
•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.
Katherine GrahamWashington Post Co.
Jack WelchGeneral 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
"Change before you have to." -Jack Welch
• 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.
Herb Kelleher
Southwest Airlines
“If work were more fun, it would feel less like work.” -Herb Kelleher
Steve JobsApple Computers
“Sometimes when you innovate, you make mistakes. - Steve Jobs
•CEO of Apple, which he co-founded in 1976
•CEO of Pixar, the Academy-Award-winning animation studios which he co-
founded 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.
•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
“Your most unhappy customers are your greatest source of learning.”- Bill Gates
Bill GatesMicrosoft
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
EmpowermentWhen Did You Feel Powerful?
‘Telling people what you want, giving them the tools to do it, and leaving them alone’
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
• 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
AccountabilityThe Mindset
• Making decisions/choices
• Taking responsibility
• Learning from mistakes
• Not blaming others
• Adjusting when necessary
• Keeping ego in check
“The buck stops here.”- Harry Truman
Leadership AccountabilityAttributes
• Focus on the end goal/bottom line/results
• Valuing of others
• Keeps promises and honor commitments
• Willingness to delegate
• 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
Leadership Accountability
Gender Issues
Effectiveness
men > women men = women
women > men women > men
Emergence
men > women men > women (in lab only)
Autocrativeness
men > women men > women
Participativeness
men > women men = women
Relationship-Orientation
women > men women = men
Gender and Leadership
Perception Behavior
Task-orientation
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 • 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).• www@nubshub.napier.ac.uk • 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.
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