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Corporate Strategy _ Chapter 9

Mar 01, 2016

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Ethical Absolutism and Relativism

Chapter 9 Leadership, Culture & Teamwork

28 July 19971

Chapter 3: Ethics and Behavior and Organizations

Introduction The concept of leadership in a strategy settingDifferent levels at which leadership can function. The concept of culture, & culture strategy The culture process is also discussed by explaining each of the phases of this process. Successful teams & explanation of the general principles of building effective teams. Model for building effective teams.

What is Leadership?Leadership - process by which a person influences others to accomplish an objective & directs the org in a way that makes it more cohesive & coherent It is a process whereby an individual influences a group of individuals to achieve a common goal (Northouse, 2007).

What is Leadership?The achievement of strategic alignment requires that leaders influence people in such a way that their efforts contribute to the achievement of their role objectives, the objectives of their business units/departments & ultimately, the objectives of the org as a whole.

Components of LeadershipPersonalInterpersonalManagerialOrganizational

Personal LevelAt a personal level, leadership is determined by an individuals trustworthiness. This is dependent on:Leadership characterLeadership competence

Interpersonal LevelLeadership at this level is determined by an individuals ability to:Build mutual trust & cooperationInterpret the meaning of eventsObtain necessary resources & support

Managerial LevelAt managerial level, there are a number of determinants of effective leadership. These determinants entail the ability to:Develop & empower peopleBuild task commitment & optimismOrganize & coordinate activities

Organizational LevelEffective leadership is most widely illustrated at an organizational level, where the individual has to portray the ability to:Create alignment of objectives & strategiesStrengthen collective identityEncourage & facilitate collective learningPromote social justice &morality

Situational Leadership ModelHersey & Blanchard developed a Situational Leadership Model that is based on interplay between:The amount of socio-emotional support (relationship behaviour) a leader provides The amount of guidance & direction (task behaviour) a leader givesThe readiness (maturity) level that followers exhibit in performing a specific task, function or objective

Four Leadership StylesTelling is associated with low maturity & involves the provision of clear, specific direction & supervision Selling is associated with low to moderate maturity & involves the provision of directionParticipating is associated with moderate to high maturityDelegating is associated with high maturity

Effective LeadershipTask-orientedRelation-orientedChange-oriented

Specific Task-Oriented BehavioursPlan work activitiesClarify roles & objectivesMonitor operations

Leadership & ManagementThe key function of a leader is to establish the basic vision of the org. The leader specifies the end-result, as well as the overarching strategy for reaching it The key function of a manager is to implement the vision. The manager & staff members act in ways that constitute the means to achieving the stated end

Contrast Between Management & Leadership The manager administers; the leader innovates. The manager is a copy; the leader is an original.- The manager maintains; the leader develops. The manager focuses on systems & structure; the leader focuses on people

Contrast Between Management & Leadership The manager imitates; the leader originates. The manager accepts the status quo; the leader challenges it. The manager is the classic good soldier; the leader is his or her own person. The manager does things right; the leader does the right thing

Contrast Between Management & LeadershipThe manager relies on control; the leader inspires trust. The manager has a short-range view; the leader has a long-range perspective. The manager asks how & when; the leader asks what & why. The manager has his or her eye always on the bottom line; the leaders eye is on the horizon.

Change LeadershipEffective leadership is required to revitalize an org & facilitate adaptation to a changing environment. Some people see change as a threat & associate change with negative experiences. The leader is responsible for the ff:Recognize the different attitudes & expectations of individualsHelp individuals understand the purpose & need for changes that are introduced in the workplace

Change LeadershipThe typical processes & phases which leaders need to facilitate when implementing a strategy could be summarized as follows:Phase 1: Denial & DisbeliefPhase 2: Fear & AnxietyPhase 3: Adjustment & Reluctant AcceptancePhase 4: Commitment & Integration

Change LeadershipAs a leader, therefore, it is essential to communicate the ff to ensure that the understanding of why the change due to the new strategy is necessary:The revised vision & strategy is for the survival of the org & continued delivery of services to customers in the environment of increased competitionStrategy is a continuous process of renewalThe changes could have an impact on role descriptions & specifications, personal relationships with colleagues, & communication with management

Leadership & TrustEarning trust is a function of leaderfollower relationships. Several authors define the importance of trust as follows:Predictable leaders actions & behaviours build trust, and consistent and persistent open communication is essential in the trust-development processCooperation is another key to developing trust, & a gentle manner is important & congruent actions, in which word & deed convey the same message are essential

Leadership & TrustThe implication would be that to build trust between a leader & their followers the following are important:Trust is the foundation for human relationships within orgsTrust can be build or destroyed by the actions of both leaders & followersIt takes faith, hope & connectedness to want to follow leaders which would imply an element of risk for both parties

CultureThe culture that exists within an org cannot be separated from the behaviour & styles of the leaders in the organization. The manner in which leaders lead will directly impact on the orgs culture & teamwork. People relate to & imitate the behaviour they observe in leaders, which makes the influence of leadership on culture all the more important.

What is Organizational Culture?Culture serves the vision & strategy of the orgCulture serves the means through which to attain strategic objectivesCulture serves an individuals role orientationCulture serves quality assuranceCulture serves corrective actions/ interventionsCulture serves common language & conceptual categoriesCulture serves power & status

The Culture StrategyTo determine the orgs culture strategy, the ff need to be established:What type of culture is conducive to bottom-line performance results?What are the type of values that drive employee satisfaction?The customer retention & financial growth for the org

The Culture StrategyA culture strategy offers the following benefits for the org:Managers give priority attention to what is stressed in the culture strategy & this, in turn, supports the generation of prioritizing resultsAll employees generally make better decisions, because they are guided by their perception of the shared valuesEmployees are more likely to recognize that they are an important part of the org

Why Should Organizational Culture be Measured?Culture measurement allows the organization to predict the impact of increased employee-satisfaction on bottom-line results & links employee-satisfaction to tangible bottom-line results through performance measures such as:ProfitabilityQualityMotivationMarket shareSales growth

The Culture ProcessThe culture process allows the org to create conditions that are likely to foster a change in employees beliefs and create ideal values. The orgs culture should support the overarching strategy, as well as the leaders, the structure & systems of the org. The culture process entails a four-phased approach in which a culture framework is designed, assessed, reviewed & refined.

Phase 1: Design (PLAN)The design phase provides clarity on what the purpose of the assessment will be & what the different applications of the questionnaire are. For example, aspects that can be measured include:Overall satisfaction of employeesImprovement of team performanceLeadership effectiveness (LEI)The extent to which resources are focused on most critical areas & topics

Phase 2: Assessment (DO)During the second phase of the culture process, the questionnaire that was developed in the design phase is distributed to employees in order to survey the perceptions & beliefs of employees about the values of the business relating to clients, services, products & business processes.During this phase, employees will be required to complete these questionnaires honestly & provide any additional comments on the values assessed.

Phase 3: Review (CHECK)Leadership interventionsTeam interventionsInter-group interventionsOrganization-wide interventions

Phase 4: Refine (ACT)After the results of the survey have been communicated & interventions have been implemented to achieve culture change, the org should re-evaluate its present position regarding culture. The orgs strategy may have changed/refined & this may lead to change/refinement in the culture strategy, the survey instrument, and/or assessment protocol.

Effective Teamwork & Qualities of TeamsGood teams are effective in a number of ways:They carry out their tasks competently & efficientlyTheir members work agreeably together & enjoy a positive atmosphereThey provide a satisfying & rewarding experience for their individual members

Stages of Team DevelopmentTeam performance depends on both individual learning & on the extent to which members learn to work with one another. A new team may have been formed, with the interest of the company at heart, but this team could very well be ineffective if its members are more concerned about their individual goals than those of the team.

1. FormingTypical features of a group during the forming stage:General feeling of insecurityReluctance to participateTrue feelings are hiddenAttempts are made to conceal personal shortcomingsMembers make subjective evaluations of each other

The role of the team leader during the forming stage:Spelling out expectationsProviding sufficient structureAssuring group members that participation is appreciatedRewarding good contributionsClearly defining the process that should be followed

2. StormingTypical features of a group during the storming stage are:Alliance, group formation & polarizationSharp fluctuations in relationshipsRespect for certain members, but bitterness towards othersAn awareness of ones own shortcomings, but a focus on symptoms rather than the real problemUlterior motives

The role of the team leader during the storming stage is to:Be discreet when compiling subgroups in order to prevent alliances, the forming of cliques & polarizationFocus on differences, but prevent argumentsCreate opportunities for groups to compete as a group in order to promote teambuilding

3. Norming Typical features of a group during the norming stage are:Establishment of values and normsOpenness within the groupGroup cohesionWillingness to experimentSensitivity to the opinions & feelings of othersEmphasis on individual rather than group performance

The role of the team leader during the norming stage is to:Provide a common visionUse group inputs to determine what should be done to become more effectiveDetermine what can be done to support other groups in the orgBe sensitive to individuals needs

PerformingTypical features of a group during the performing stage are:The group has a clear visionDecisions are of a high standardA high degree of synergy is attainedThe best methods, procedures & techniques are usedOutside help is appreciatedAction is taken to integrate the teams work with that of other groups

The role of the team leader during the performing stage includes:Guiding the group to redefine its vision at a higher levelFocusing on proactive actionAllowing unstructured discussionsCreating challenging opportunitiesAssigning specific group members to facilitate aspects of work sessions