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1. Gather information
-understand other party's needs/expectations
2. Discover priorities through offers and concessions
-make multi-issue proposals
3. Build the relationship (trustworthiness)
-Common backgrounds, mange first impressions ,maintaining positive
emotions, act reliably
Situational Influences on Negotiation
-Location, physical setting, audience
CHAPTER 12: LEADERSHIP
Leadership: the ability to influence, motivate and enable others to contribute toward
the effectiveness of the organizations of which they are members
Shared Leadership
-the view that leadership is broadly distributed rather than assigned to one person
-employees are leaders when they champion change in the company or team
-shared leadership calls for
-formal leaders willing to delegate power
-collaborative culture - employees support each other
-employees able to influence through persuasion
Perspectives of leadership
-competency perspective
-personal characteristics that lead to superior performance in a leadership
role
-several competencies now identified as key influences on leadership
potential and of effective leaders
-behavioural perspective
-contingency perspective
-transformational perspective
-implicit leadership perspective
8 Leadership competencies
Personality
Self-concept
Drive
Integrity
Leadership Motivation
Knowledge of the business
Cognitive/practical intelligence
Emotional Intelligence
Authentic Leadership
Know yourself---------------------->
-Engage in self-reflection
-Feedback from trusted sources
-Know your lift story
-Task-oriented behaviours
-Supportive
-Provide psychological support
-People-oriented behaviours
-Participative
-Encourage/facilitate employee involvement
-Achievement-oriented
-encourage peak performance through goal setting and positive self-fulfilling
prophecy
Path -Goal Leadership Model
Leader Behaviours: directive, supportive, participative, achievement-oriented
leads to
Leader effectiveness: employee motivation, employee satisfaction, acceptance of
leader
intercepted by: employee contingencies, Environmental contingencies
Path-Goal Contingencies
-Skill and experience
-low: directive and supportive leadership
-Locus of control
-Internal: participative and achievement leadership
-External: directive and supportive leadership
-Task structure
-Nonroutine: directive and/or participative leadership
-Team dynamics
-Low cohesion: supportive leadership
-Dysfunctional norms: directive leadership
Other Contingency Leader Theories
-Situational Leadership Model
-Four styles: telling, selling, participating, delegating
-Best style depends on follower ability/motivation
-Popular model, but lack research support
-Fiedler's Contingency Model
-leadership style is stable -- based on personality
-best style depends on situational control
-theory has problems but uniquely points out that leaders have a preferred
style, not very
flexible
Leadership Substitutes
-Contingencies that limit a leader's influence or make a particular leadership style
unnecessary
-eg: training and experience replace task-oriented leadership
- Research evidence: substitutes help, but don't completely substitute for real
leadership
Transformational, Managerial, and Transactional Leadership
- Transformational leadership
-changing the organization to fit environment
-change agents
-Managerial Leadership
-effective leaders improve employee performance and well-being in the
current situation
-applies contingency leadership theories (eg: path-goals)
-Transactional Leaders
-influence followers through rewards, penalties and negotiation
Transformational v. Charismatic Leaders
- Some leadership models say charismatic leadership is essential for
transformational leadership
- Emerging views -- charisma differs from transformational leadership
-Charisma is a personal trait that provides referent power
-doesn't necessarily attempt to change the organization
-transformational leadership is a set of behaviours to bring about change
Transformational leadership model and elements
1. Create strategic vision
-image of company's attractive future
-motivates and bonds employees
-leaders champions the vision
2.Communicate the vision
-frame message around a grand purpose
-shared mental model of the future
-use symbols, metaphors
3. Model the vision
-walk the talk
-symbolize/demonstrate the visions through behaviour
-employees trust leader more
4.Build commitment to the vision
-by communicating and modelling the vision
-through employee involvement in shaping the shared vision
Evaluating transformational leadership
-Transformational leadership is important
-higher employee satisfaction, performance, org citizenship, creativity
-Transformational leadership limitations
-risk of circular logic: some research defines transformational leaders by their
success rather than their behaviours
-Universal theory: need a contingency-oriented theory, need to recognize
cultural differences
Implicit Leadership Perspective
1. Leadership prototypes
-preconceived beliefs about the features and behaviours of effective leaders
2.Romance of leadership effect
-amplify effect of leaders on organizational results
-fundamental attribution error
-need for situational control
Cultural issues in leadership
Span of Control
-Number of people directly reporting to the next level
-related to coordination through direct supervision
-Wider span of control possible when:
1.Other coordinating mechanisms are present
2.Routine tasks
3.Low employee interdependence
Tall vs Flat Structures
-as companies grow they:
-Build taller hierarchy
-Widen span or both
-Problems with tall hierarchies
-Overhead costs
-Worse upward information
-Focus power around managers, so staff less empowered
Problems with Flatter Structures (Delayering) in Large Firms
1.Undermines management functions
2.Increases workload and stress
3.Restricts management career development
Centralization and Decentralization
-Centralization: Formal decision making authority if held by a few people, usually at
the top
-Decentralization increases as companies grow
-Varying degrees of centralization in different areas of the company
-Eg: sales decentralized; info systems centralized
Locus of decision making authority
Production: middle Mgt
Info System: upper Mgt
Sales: supervisory, frontlines
Formalization: the degree to which organizations standardize behaviour through
rules, procedures, formal training, and related mechanisms
-Formalization increases as firms get older, larger, and more regulated
-Problems with formalization
-reduces organizational flexibility
-discourages organizational learning/creativity
-reduces work efficiency
-Increases job dissatisfaction and work stress
Mechanistic vs Organic structures
-Mech stucture
-narrow span of control
-high formalization
-high centralization
-Organic Structure
-wide span of control
-low formalization
-Decentralized decisions
Effects of Departmentalization: how employees and their activates are grouped
together
-3 functions
1. Establishes chain of command
2. Creates common mental models, measures of performance
3. Encourages staff to coordinate through informal communication
Features of Simple Structures
-Minimal Hierarchy: staff reports directly to owner
-Roles are fairly loosely defined for flexibility
-Informal communication for coordination
-Centralized structure: owner makes most decisions
Functional Organizational Structure: organizes employees around specific
knowledge or other resources (eg: marketing, production)
CEO ---> finance, production, marketing
Evaluating Functional Structures
-Benefits:
-Economies of scale
-Supports professional identity and career paths
-Easier supervision
-Limitations
-More emphasis on subunit than organizational goals
-Higher dysfunctional conflict
-Poorer coordination: required more controls
Divisional Structure: organizes employee around outputs, clients, or geographic
areas
CEO--> healthcare, lighting products, consumer lifestyle
Divisional Structure
-Different forms of divisional structure
-Geographic Structure
-product structure
-client structure
-Best form depends on environmental diversity or uncertainty
Globally Integrated Enterprise
-Few geographic divisions because
-less need for local representation
-reduced geographic variation
-more global clients
- Globally integrated enterprise
-connects work processes around the world rather than replicating them
within each country or
region
-Functional heads are geographically distributed
-Firm's "home" country is no longer focus of business
eg: core firm (in canada) -> product development partner (US), call center
(Philippines) etc
Evaluating Network Structures
-Benefits
-Highly flexible
-Potentially better use of skills and technology
-not saddled with same resources for all products
-Limitations
-exposed to market forces, less control over subcontractors than in house
External Environment & Structure
Dynamic
Stable
-High rate of change
-Steady conditions, predictable change
-use team-based, network, or other
-Use mechanistic structure
organic structure
Complex
Simple
-Many elements (such as stakeholders)
-Few environmental elements
-Decentralize
-Less need to decentralize
Diverse
Integrated
-Several products, clients regions
-Single product, client, place
-Use divisional form aligned with the
-use functional structure, or geographic
diversity
division if global
Hostile
Munificent
-competition and resource scarcity
-plenty of resources and product demand
-use organic structure for responsiveness -less need for organic structure
Effects of Organizational Size
-As organizations grow, they have:
-more division of labour (job specialization)
-greater use of standardization
-More hierarchy and formalization
-more decentralization
Technology and Structure
-Technology refers to mechanisms or processes by which an organization turns out
its product or service
-Two contingencies:
-variability: the number of exceptions to standard procedure that tend to
occur
-Analyzability: the predictability or difficulty of the required work
Organizational Strategy
-Structure follows strategy
-strategy points to the environments in which the organization will operate
-leaders decide which structure to apply
-Innovation strategy
-providing unique products or attracting clients who want customization
-Cost leadership strategy
-Maximize productivity in order to offer competitive pricing