Chapter 3: Leadership, Motivation, and Group Behavior

1. Chapter 3: Leadership, Motivation, and Group Behavior Group #2

2. Chapter Introduction • Generating Interest in Business • Leadership articles/books most published • Not only in United States but all over, such as China

3. Chapter 3 • Chapter broken into 3 parts • Leadership Across Cultures • Motivation Across Cultures • Group Behavior • These parts are explained by 10 paradoxes

4. Section 1 Leadership

5. Paradox 3.1 Framing leadership

6. Topics Covered Is the essence of leadership being stuck on the horns of a dilemma? In order to answer this we must asses our own definition of leadership

7. The Functions of the Executive • Chester Barnard book The Functions of the Executive published in 1938 • Managerial focus was tangible resources before World War II • After Barnard’s book focus shifted toward intangible aspects of firms • Culture, service quality, customer perception • Most importantly, motivating workers

8. Three Essentials of an Organization • Defined by Bernard • Systems of communication between individuals and groups • Motivation (willingness to serve) • Common purpose integrating efforts of individuals and groups

9. Three Essential Tasks • Barnard then describes three essential tasks of the Management/Executives • Development of effective communication throughout the organization • To motivate subordinates • Define a common purpose, goal of organization, or defining what the organization’s trying to accomplish • Stresses that the Management/Executive is critical factor of an organization

10. Reasons for Motivation • Zone of Acceptance

11. Nine Dilemmas Thomas Stewart in an article, interview based project, published in 1996 found leaders must address nine dilemmas Revenue growth versus cost containment A short-term versus long-term focus Creativity versus organizational discipline The needs of people versus demand of productivity

12. Nine Dilemmas Continued 5. Specific capabilities of subordinates versus their leadership potential 6. Independence versus Dependence of organizational members and departments 7. Bureaucracy busting versus creating economies of scale 8. Trust versus demand for change 9. Broad-based projects versus only-high visibility projects

13. Application • How does any of this help us become better leaders? • Polarity Management • Ambiguity Management • Managing Opportunity Costs • Jack Welch and Jeffery Immelt

14. Cultural Ties • Culture and Leadership • Thought it was complex before? • What is socially acceptable in one country may be legally unacceptable in another • GLOBE Researchers support concept of “Cultural Universals” as well as “Cultural Specifics” (pg 52)

15. Bottom Line of 3.1 Managing polarity and ambiguity can be seen as the essence of leadership Activities range from 2 minutes to 2 hours Important to select the correct premise of dilemmas Equally important to fully commit to the implementation of that which is selected

16. Paradox 3.2 Who is more effective, the instrumental-visionary-transformational leader or the headman?

17. Topics Covered Compare leadership styles in authority-ranking and market-pricing cultures Will discuss briefly the GLOBE study Transformational leadership - the degree to which the leader is able to effect a change not only in the firm’s culture but also in profitability Visionary leadership – the degree to which the leader provides a vision of the future to which organizational members subscribe so that the transformation can occur

18. Market Pricing Cultures This is the culture here in the U.S Example of a great transformational and visionary leader is Jack Welch, a CEO of General Electric Leaders come in all different types, shapes, and varieties Charismatic leadership: larger-than-life individual capable of galvanizing and motivating subordinates through his assumed special abilities

19. Authority Ranking Cultures Found in areas such as Asia, Latin America, the Middle East, and Africa Headman leadership: a two-way psychological relationship based on mutual obligations exists between leader and follower and extends beyond work to include cultural and community factors The headman leadership role can be very stressful for the leaders Have the concept of guaranteed employment

20. Two Cultures Together • General Motors and Toyota’s joint venture in the late 1980’s • Toyota’s Production System • Guaranteed employment and Employability • PuterSampoerna and the Sampoerna Company in Indonesia

21. GLOBE Study 62 National cultures broken down into 10 clusters

22. Bottom Line of 3.2 Leadership styles in authority-ranking and market-pricing cultures The GLOBE study Transformational leadership Visionary leadership

23. Paradox 3.3 When should a leader allow subordinates to participate in decision making?

24. The degree of subordinate involvement in decision making… • Most popular topic evaluated considering work motivation • Time issues • Extra/special knowledge available • Increase acceptance of programs (Research done in the US)

25. Other nations surveys show… Positive links with respondents Consider maximums and minimums Emphasize difference between leaders Could unintentionally challenge values

26. Bottom Line of 3.3 Consider implementing subordinate participation in decision making, but also make sure actions are made consistent with those in a given culture.

27. Paradox 3.4 Can an effective leader be someone who publicly humiliates subordinates?

28. How would you feel if your boss… Publicly humiliated you? Closely supervised you? Constantly pointed out your errors? Strongly insisted how each step of the process should be done?

29. Individualistic Cultures Collectivist Cultures • Ineffective, distasteful • Individualists tend to favor: • Positive reinforcement • Private negative feedback • Work independently • Positive recognition • CEO of Hewett-Packard • Positive, encouraging • Why? • Sign of genuine care • High consideration • Argument Against: • Macho Collectivists Cultures • Africa, Latin America • Developing Cultures • Changes in Trends

30. Qualities of an Effective Leader • Two Main Predictors of an Effective Leader: • Empathy • Flexibility • Identical across cultures… • Surface Features • How a leader implements these predictors • Vary enormously across cultures

31. Bottom Line of 3.4 • Motivation is necessary • How to motivate depends on the social norms • It is very important to know your environment • Research and read • Talk with current and former employees (Ex-Pat)

32. Section 2 Motivation

33. Paradox 3.5 Is the Relationship between motivation and ability additive or multiplicative in the prediction of individual success and performance?

34. Helps us answer two questions What is the relationship between performance and success? What is the relationship between ability and motivation?

35. The Expectancy Theory Says individuals must perceive that They have proper resources, skills, and abilities to be successful If they make an effort, they will be successful and they will be rewarded The rewards are the ones they desire

36. Collectivistic vs. Individualistic • Collectivist cultures (ex. China) • Assume the relationship between ability and motivation is additive • Individualistic (ex. US) • Assume the relationship between ability and motivation is multiplicative

37. Examples • Additive • Receiving a 6* for both ability and motivation would give a score of 12 • Multiplicative • Receiving a 6* for both ability and motivation would give a score of 36 *on a 10 point scale • This means… “Market-pricing cultures (like the US) generally expect far more from their managers and workers than do collectivistic, authority-ranking cultures[…] this, in turn, increases the the total score or level of performance expected” (pg. 65).

38. United States • Equality of opportunity NOT equality of outcomes • “Pay for performance” • “Management by objectives” • Suggest that • levels of performance should be compensated • motivation can influence performance

39. China • See the organization as a family • Relationship between superior and subordinate is psychological in nature • Tendency to • Avoid rating and ranking managers and employers who will work together for 30 or more years • Make statements of “average performance” in order to save face

40. Bottom Line of 3.5 “When culture is included in the framework, the relationship between ability and motivation is assumed to be significantly different” (pg. 66).

41. Paradox 3.6 Can an individually based need hierarchy exist in a collectivistic culture?

42. Maslow’s Hierarchy of Needs • Experts have reduced the theory to 2 Levels: • 1. Physiological and Safety • 2. Higher-order Needs

43. Market-Pricing Culture Authority-Ranking Culture Focuses on individual responsibility One-way relationship between the leader and subordinates Western nations Emphasize a family model Two-way relationship between the leader and subordinates Non-Western nations

44. Differences in Motivation of Cultures • European/American background: • Person specific • Ego-centered • Asian background: • Trust authority figures or peers • Social • Commonalities: • People want to be treated equally and fairly with adequate awards • Notions of equity and adequate rewards vary drastically

45. Bottom Line of 3.6 • People have their own needs (survival, social status) • Main motivation • Important in every culture • To what degree… • Equality • United States • Opportunity • Treatment • China • Team • Success

46. Paradox 3.7 Do effective executives attribute success to themselves or to others?

47. Topics Covered Leadership vs. Motivation Attribution Theory

48. Types of Attribution Theory • Fundamental attribution error • Attributes success to subordinates, superiors, peers, or environment • Self-serving bias • Attributes success to the individuals own effort and de-emphasizes the efforts of others and the environment • Ex: new CEO taking all the credit for success when really it really was strategies of the former CEO and co-workers that were successful

49. Individualistic vs. Collectivists • Individualistic, market-pricing culture- • Fundamental attribution error • Self-serving bias • Collectivists, authority ranking culture- • Fundamental attribution error • Non-self-serving attribution error • Daewoo Motor Company example

50. Bottom Line of 3.7 Studies repeatedly show China and other Asian countries are Collectivists but, the United States self-serving bias is higher than expected. There are clear connections between leadership and motivation. These differences will explain actual behaviors in the next section.