OB Final Materials
Chapter 5: Motivation in action
The role of money
1. Is the most commonly used reward in organization
2. Money help needs get met, but it is not on the top priority to make a job satisfied, relationship with others is more
important to job satisfaction
Effective reward system
Balancing internal equity: worth of job (use job evaluation) and external equity (the external competiveness of an
organization’s pay relative to pay elsewhere in the industry (pay survey))
Organization pays people based on the length of service but not using the variable-pay program
A. Variable pay program: reward system in which a portion of an employee’s pay is based on some individual and
organization measure of performance.
- Individual based Incentive
1. Piece-rate pay plan: paid a fixed sum for each unit of production completed
2. Merit-based pay: individual based incentive plan based on performance appraisal rating (provide increases to
3. Skill-based pay: set pay levels on basis of how many skills employees have. Problem: based on skill rather than
- Group-based Incentives
Gain sharing: incentive plan where improvement in group productivity determines total amount of money that is
Focus on productivity gains, not profits
Employees receive reward even organization is not profitable
- Organization-based Incentives
1. Profit-sharing plan: organization wide incentive plan in which the employer shares profits with employees based
on a predetermined formula
2. Stock options and employee stock ownership plan (ESOP)
Stock option: give employees the right to buy stocks in the company
Employee stock ownership plan: A company established benefit plan in which in which employees acquire
stock as part of their benefits
This increases employees’ JOB SATISFACTION and WORK MOTIVATION
It is the most incentive plan to increase productivity
B. Flexible benefits: developing a benefits package. It is a benefit plan that allows each employee to put together a benefit
package individually tailored to his or her own need and situation. This can depend on AGE, MARITAL STATUS,
NUMBER OF DEPENDENTS.
The benefit plan that use before is: ONE BENEFIT PLAN FIT ALL
C. Intrinsic rewards: recognition program. Broad activity, from a spontaneous and private Thank You to widely publicized
formal program in which specific type of behavior are encouraged and procedures recognized
1. Linking Employee recognition Programs and Reinforcement Theory: rewarding a behavior with recognition
immediately following that behavior is likely to encourage its repetition.
2. Employee recognition in practice: recognition of an employee is often cost little or no money and employee
recognition may reduce turnover in organization.
Expectancy theory: individuals will generally perform in ways that raise the probability of receiving the rewards offered.
Management reward follies
1 We hope for… but we reward
1. Teamwork and collaboration the best team members
2. Innovative thinking and risk-taking proven methods and not making mistakes
3. Development of people skills technical achievement and accomplishment
4. Employee involvement and empowerment Tight control over operations and resources
5. High achievement another year’s effort
6. Long-term growth; environmental responsibility quarterly earning
7. Commitment to total quality shipping on schedule, even with defect
8. Candour; surfacing bad new early report good news, whether it is true or not; agreeing with the manager,
whether or not he is right
Three obstacles to ending these follies
1. Individual are unable to break out of old ways of thinking about reward and recognition practices.
2. Organization often do not look at the big picture of their performance system
3. Both managers and shareholders often focus on short-term results.
Can we eliminate rewards?
Alfie Hohn he wrote a book called “PUNISHED BY REWARDS”. It suggests that organization should focus less on
rewards, more on creating motivating environment.
1. Abolish incentive pay: pay generously and fairly, take pay off their mind, so that they will focus on goal of
2. Re-evaluation evaluation: structure the performance evaluation system more like a two-way conversation to trade
ideas and question. The discussion of performance should not ties to compensation
3. Create condition for authentic motivation: not put employee under surveillance, listen to employees’ point of view
and provide feedback
4. Encourage collaboration: provide support to create well functioning-team
5. Enhance content: match people to job, increase meaningfulness of job. People are more motivated when they can
learn new skills in job.
6. Provide choice: involve employee in decision-making. Participative management.
Definition: the way the elements in a job are organized.
Research in a job design suggests that the way the elements in a job are organized can act to increase or decrease effort.
Job characteristic model: the model that proposes that any job can be described in terms of 5 core job dimensions: skill
variety, task identity, task significance, autonomy, feedback.
1. Skill variety: the degree to which the job requires a variety of different activities so the employee can use a number
of different skills and talents
2. Task identity: The degree to which the job requires completion of a whole and identifiable piece of work.
3. Autonomy: The degree to which the job provides substantial freedom, independence, and discretion to the
individual in scheduling the work and determining the procedures to be used in carrying it out.
4. Feedback: The degree to which carrying out the work activities required by the job results in the individual
obtaining direct and clear info about the effectiveness of his performance.
Every dimension can be rated as high or low.
1. The fist three dimensions help to experience meaningfulness of the work: If task is meaningful, employee will view the
job as important, valuable and worthwhile
2. The fourth dimension refers to the responsibility for the outcome: employee feels sense of personal responsibility fro
result when the job give them greaten autonomy
3. The last dimension is the actual result of the work activities: Feedback helps employees know whether they are
2 Motivating potential score: a predictive index suggesting the motivation potential in a job
MPS = ( (skill variety + task identity + task significance)/ 3) * autonomy * feedback
How can jobs be redesigned?
1. Job rotation: shifting worker from 1 task to another, prevent boredom and increase motivation through
2. Job enrichment: the vertical expansion of jobs, increase degree to which employees control planning, execution,
evaluation of their work. Expand freedom, independence, increase responsibility. Reduces absenteeism, turnover,
increase satisfaction (contingency)
Alternative work arrangement:
1. Flextime: An arrangement where employees work during a common core period each day but can form their total
workday from a flexible set of hours outside the core.
2. Job sharing: having 2 or more people split 40hrs week. The problem is that it is hard to find compatible pairs
3. Telework: An arrangement where employees do their work outside the office anywhere they have access to
smartphones, tablets, and other mobile computing devices. The problem is that this will cause isolation; employee
feels that they are missing out.
Definition: a participative process that uses the input of employees and is intended to increase employee commitment to an
2 major forms of employee employment
1. Participative management: a process in which subordinates share a significant degree of decision-making power
with their immediate superiors
2. Representative participation: A system in which employees participate in organizational decision making through a
small group of representative employees
Motivation: Putting it all together
4 basic emotional drive (needs) guide individuals
1. Drive to acquire: meet through organization reward
2. Drive to bond: meet through creating culture that promotes teamwork, collaboration, openness, friendship
3. Drive to comprehend: meet through job design and creating job that are meaningful, interesting, challenging
4. Drive to defend: meet through organization’s performance, management and resource allocation process (fairness)
Reward preference in different countries
Globe/Hofstede Reward preference Examples
High uncertainty avoidance Certainty in compensation system: Greece, Portugal, Japan
1. Seniority-based pay
2. Skill-based pay
Individualism Compensation based on individual Australia, UK,US
1. Pay for performance
2. Individual incentive
3. Stock options
Human orientation (Hofstede’s Social benefits and programs: Sweden, Norway, the Netherlands
masculinity vs femininity dimension) 1. Flexible benefits
2. Workplace child-care
3. Career-break Schemes
3 4. Maternity leave programs
Chapter 6: Groups and Teamwork
Team vs Group, what is the difference?
1. Group: 2 or more people interacting, have common relationship, unlike team, groups do not engage in collective
2. Team: small number of people with complementary skills who are committed to a common purpose, performance
goals, and approach for which they hold themselves mutually accountable. Groups become teams when they meet
the following conditions:
a. Team members share leadership
b. Both individuals and the team as a whole share accountability for the work of the team
c. The team develop its own purpose or mission
d. The team works on problem-solving continuously, rather than just at scheduled meeting times
e. The team’s measure of effectiveness is the team’s outcomes and goals, not individual outcomes and goals.
Not all groups are teams; all teams can be considered groups
Team popularity (why have teams become so popular?)
1. 80% respondents used team in the work place
2. Teams outperform individuals when the tasks being done require multiple skills, judgment and experience
3. Teams can quickly assemble, deploy, refocus and disbound
4. Team are more flexible and responsive to changing, great potential
5. Team effective: democratize organization and increase employees’ motivation (by increase task identity)
Type of team
1. Problem solving (or process improvement) teams: groups of 5-12 employees from the same department who meet
for a few hours each week to discuss ways of improving quality, efficiency, and the work environment.
a. They do not have the authority to unilaterally implement any of their suggestion
2. Self-managed (self directed) team: a group of 10 to 15 people who take on many of the responsibilities of their
former managers autonomy
3. Cross-functional (or project) team: a group of employees at about the same hierarchical level, but from different
work area, who come together to accomplish a task good for exchange info
a. Skunk works: cross-functional teams that develop spontaneously to create new products or work on
4. Virtual team: a team that uses computer technology to tie together physically dispersed members in order to
achieve a common goal good for task oriented
a. Virtual teams can develop a close interaction/trust
b. Face to face develop trust form direct interaction
c. Virtual team trust either develop at outset or does not develop
From individual to team members
How individual have to achieve balance btw his or her own need and group need. How individual learn to work in groups
1. Roles: a set of expected behaviors of a person in a given position in a social unit
a. Role expectation: how others believe a person should act in a given situation.
b. Role conflict: a situation in which an individual finds that complying with one role requirement may make
it more difficult to comply with another
c. Role ambiguity: person is unclear about his or her own role (lead to confusion, stress and bad feelings)
d. Role overload: too much is expected of someone
e. Role under load: too little is expected of someone, and that person feels that he or she is not contributing to
4 2. Norms: acceptable standard of behavior with a group that is shared by the group’s members. Norms can cover
virtually any aspect of group’s behavior. Some of the most common norms have to do with issues such as
a. Performance: how hard to work, the level of output, what kind of quality, levels of tardiness
b. Appearance: dress code, when to look busy, when to “goof off”, how to show loyalty
c. Social arrangement: how team members interact
d. Allocation of resources: pay, assignment, allocation of tools and equipment
The How and Why of norms:
1. Explicit statement made by a group members: leader states no phone calls allowed during working hours
2. Critical event in groups’ history: these set important precedents. Ex: Bystanders is injured while standing too close
to a machine and, from that point on, members of the work group regularly monitor one another to ensure that no
one other than the operator gets within 2 meters of any machine.
3. Privacy: the 1 behavioral pattern that emerges in a group frequently sets team expectations. Groups of students
who are friends often choose seats near one another on the 1 day of class and become upset if an outsider takes
their seats in a later class
4. Carry-on behavior from past situation: group members bring expectation with them from other groups to which
they have belonged. Thus, work groups typically prefer to add new members who are similar to current ones in
background and experience.
What make a norm important?
1. It facilitate the group’s survival: group does not like to fail, so enforce norms that can increase chances for success
2. It increases the predictability of groups members’ behavior: norms that increase predictability enable group
members to anticipate each other’s actions and to prepare appropriate responses
3. It reduces embarrassing interpersonal problem of group members: norms are important if they ensure the
satisfaction of their members and prevent as much interpersonal discomfort as possible.
4. It allows members to express central values of group and clarify that are distinctive about the group identity: Norms
that encourage expression of the group’s values and distinctive identity help to solidify/maintain group.
1. Adjusting one’s behavior to align with norms of group
2. People hope to be accepted by group
3. Group can place strong pressure on individual members to change their attitude
Stage of group and team development
1. The five stages model (Tuchman): the model shows how individuals move from being independent to working
interdependently with group members.
a. Stage 1: FORMING: characterized by a great deal of uncertainty about team’s purpose, structure and
leadership. Members are “ testing the water” to determine type of behavior that are acceptable
i. Stage finish when they think themselves as part of a team
b. Stage 2: STORMING: characterized by intragroup conflict, members accept existence of group, but resist
constraints group imposes on individuality.
i. Stage finish when clear hierarchy of leadership emerge
c. Stage 3: NORMING: characterized by close relationships and cohesiveness. Group has a strong identity
i. Stage finish when group structure solidifies and had common expectation of what defines correct
d. Stage 4: PERFORMING: when the group is fully functional. When significant task progress is being made;
group’s structure is fully functional and acceptable. Group’s energy move from getting to know each other
to performing task at hand.
i. Final stage for permanent work group
e. Stage 5: Adjourning: final stage in group development for temporary groups, where attention is directed
toward wrapping up activates rather than performance. They prepare to disband, some are sad and some
5 Putting the 5 stages model into perspective
1. Groups do not necessary progress clearly through stages, one at a time
2. Groups can some time go back to an earlier stage
3. Conflict can sometimes be helpful to group as long as for work, not for group members
4. Depend on context: ex: pilots can immediate reach performing stage because of strong organizational context.
2. The punctuated-equilibrium model: temporary groups with deadline do not seem to follow previous model, they
have their own sequence of action:
a. The 1 meeting sets the group’s direction
b. The 1 phase of group activity is one of inertia
c. A transition takes place at the ends of the 1 phase, which occurs exactly when the group has used up half
its allowed time
d. The transition initiates major changes
e. A 2 phase of inertia follows the transition
f. The group’s last meeting is characterized by markedly accelerated activity
Applying the Punctuated-Equilibrium model: characterizes deadline-oriented teams as exhibiting long periods of inertia,
interspersed with brief revolution changes triggered by member’s awareness of time and deadline.
Like 5 stage model: The team begins by combining the forming and norming stage, and then goes through a period of low
performing. Follow by storming, then a period of high performance, and finally adjourning.
Creating effective team
Refer to the team productivity, manager’s ratings of the team’s performance, and aggregate measures of member
A model of team effectiveness
1. Context: contextual factors related to team performance
a. Adequate resource: the support received from the organization
b. Leadership and structure: problem must be resolve when 1 start (team members must be agree on who is
doing what, ensure that all members contribute equally). Team needs to determine how schedules will be
set, what skills need to be developed, how the team will resolve conflicts, and how the team will make and
modify decisions. The role of team leader:
i. Creating a real team rather than a team un name only
ii. Setting a clear and meaningful direction for the team’s work
iii. Making sure that the team structure will support working effectively
iv. Ensuring that the team operates within a supportive organizational context
v. Providing expert coaching
Leadership is important in multi-team systems where different teams need to coordinate their effort to produce a desired
c. Climate of trust: members of effective team trust each other. They trust that team is capable of getting task
done, trust their leader.
d. Performance evaluation and reward: The traditional individual-oriented evaluation must be modified to
reflect team performance. Ex: group-based appraisal, profit sharing, small-group incentives
2. Composition: can make a big difference on ability to succeed
a. Skills: require 3 different types of skills to perform effectively
i. Need people with technical expertise
ii. Need people with problem-solving and decision making skills to be able to identify problems,
generate alternatives, evaluate those alternatives, and make competent choices
6 iii. Need people with good listening, feedback, conflict resolution, and other IP skills
Too much of one at the expenses of the other will lower the team performance
b. Personality: personality also influences the team behavior. Many of the bug 5 dimensions relevant to team
effectiveness. 4 important dimensions: extroversion, agreeableness, conscientiousness. Emotion stability.
c. Roles: 2 set of role need to be considered within group.
i. Task oriented roles: performed by group members to ensure that the tasks of the group are
ii. Maintenance role: performed by group members to maintain good relations within the group.
iii. Occasionally within group, you will see people take on Individual roles that are not productive for
keeping the team on task.
d. Diversity: presence of a heterogeneous mix of individual within a group. Advantage: creativity.
Disadvantage: difficult to work together. Diversity in group: age, gender, experience promote conflict,
which stimulate creativity, brainstorming
i. Advantage: multiple perspective, openness to new idea, multiple interpretation, increased
flexibility, increased creativity, increased problem solving skills
ii. Disadvantage: ambiguity, complexity, confusion, miscommunication, difficult reach simple
agreement, difficult in reaching specific action
e. Size: most effective team has fewer than 10 people, with more than 10 people, cohesiveness, mutual
accountability declines, social baffling increases and more and more people do less talking compared to
i. Social loafing: the tendency of individuals to expend less effort when working collectively than
when working individually.
f. Member’s preference of teamwork: when selecting team members, individual preferences should be
considered. High-performance teams are likely to be composed of people who prefer working as part of a
3. Work design: the work design includes variables such as freedom, autonomy, opportunity to use and skills, talents.
This is consist with job characteristic model in chapter 5
a. Work design motivate team because they increase member’s sense of responsibility and own ship over the
work, and they make the work interesting.
4. Process: process variables make up the final component of team effectiveness. Potential group effectiveness +
process gains – process losses = actual group effectiveness
a. Common purpose: common/meaningful purpose that provide direction, momentum. Commitment for
member. This is a vision, broader than specific goal. Effective team also shows reflexivity (reflecting and
adjusting the master plan when necessary.
b. Specific goal: successful teams translate their common purpose into specific, measurable and realistic
performance goals. Goal energizes teams, facilitate clear communication, and help maintain focus.
Difficult goals raise team performance.
c. Team efficacy: effective teams have confidence in themselves, they believe that they can succeed
i. Cohesiveness: is one factor that helps build efficacy, its degree to which team members are
attracted to one another and are motivated to stay on the team.
ii. Relationship among team cohesiveness, performance norms, and productivity
Performance High High productivity Moderate productivity
Low Low productivity Moderate to low productivity
d. Mental model: effective team have accurate and common mental models knowledge and belief about
how the work get done by the team
7 e. Managed level of conflict: conflict on a team is not necessary bad. Though relationship conflict is always
dysfunctional, teams that are completely void of conflict are likely to be less effective. Task conflict
stimulates discussion; promote critical assessment of problem and options, lead to better team decision.
f. Accountability: successful teams make members individually and jointly clearly define what they
individually responsible for and what they are jointly responsible for.
Teams are not always the answer
How do you know if the work is better done in teams? 3 test to see it
1. Can the work be done better by more than 1 person? Simple task does not require diverse input are better left to
2. Does the work create a common purpose or set of goals for the people in the group that is more than the sum of
individual goals? Ex: the service department of New car dealer, ensure satisfaction of customers
3. Are the members of group interdependent? There is interdependence btw task where success of whole depends
on each one, success of each one depend on the whole. Ex: soccer
Chapter 11: Leadership
Are manager and leader the same?
Leadership: ability to influence a group toward achievement of goals; establish direction by developing a vision for the
future and inspiring workers to overcome difficulties (hurdles)
1. Formulate long-term objectives for reforming the system: plans strategy and tactics.
2. Exhibits leading behavior: act to bring about change in others congruent with long-term objectives
3. Innovates for the entire organization
4. Asks what and why to change standard practice
5. Creates vision and meaning for the organization
6. Uses transformational influence: induces change in values, attitudes, and behavior using personal example and
7. Uses empowering strategies to make followers internalize values
8. Status quo challenge and change creator
Manager: implement the vision and strategy provided by leader; also coordinate staff and handle day to day problem.
1. Engage in day-to-day caretaker activities: maintains and allocates resources
2. Exhibits supervisory behavior: acts to make others maintain standard job behavior
3. Administers subsystems within organizations
4. Asks how and when to engage in standard practice
5. Acts within established culture of the organization
6. Uses transactional influence: induces compliance in manifest behavior using rewards, sanctions, and formal
7. Relies on control strategies to get things done by subordinates
8. Status quo supporter and stabilizer
Leadership as supervision (3 theories)
Trait theory of leadership (are leader different from others?): theories that consider personal qualities and characteristics
that differentiate leaders from nonleaders.
1. Theory propose that traits, personalities, social, physical, or intellectual differentiate leaders from nonleaders
2. Leadership traits matched with big 5 support for traits as predictors of leadership. Ex: ambition + energy =
extraversion (strangest). Conscientiousness and openness to experience also show strong relationship to leadership.
3. Emotional intelligence (EI) trait indicates effective leadership. Without EI, people can have outstanding training,
analytical mind, vision, great idea, but not make a great leader (more investigation)
Difference btw theories of leadership
1. Trait theory: leadership is inherent, identify leader, based on their traits
8 2. Behavioral theory: leadership is a skill set, can be taught, so need to identify proper behavior to teach potential
Behavioral theory of leadership (do leader behave in a particular way?): theories that propose that specific behavior
differentiate leaders from nonleaders.
1. The Ohio state studies: find 2 dimensions of leader behavior
a. Initiating structure: the extent to which a leader is likely to define and structure his or her role and the roles
of employees in order to attain goals. Task oriented, work oriented, production oriented.
b. Consideration: the extent to which a leader is likely to have job relationship characterized by mutual trust,
respect for employees’ ideas, and regard for their feeling.
2. The Michigan studies
a. Employee-oriented leader: leader who emphasize interpersonal relations
b. Production oriented leaders: leader who emphasize the technical or task aspects of the job
Contingency theory (does the situation matter?): propose that leadership effectiveness is dependent on the situation.
1. These are theories of supervision not leadership
2. Theories acknowledge that predicting leader success is more complex than isolating few trait or behavior
3. Importance to consider context when examining leader.
4. Contingency theory includes: degree of structure in the task, quality of leader-member relation, leader’s position
power, subordinate’s role clarity, group norms, info available, subordinate acceptance of leader’s decision,
5. Fiedler contingency model: leadership theory that proposes that effective group performance depends on the proper
march btw the leader’s style and the degree to which the situation gives the leader control.
a. Fiedler created the least preferred co-worker (LPC) questionnaire determine whether individual interested
in a good personal relationship with co-workers (relationship oriented) or productivity (person task
b. Fiedler’s contingency situation: contingency dimensions for determining leader effectiveness
i. Leader-member relation: the degree of confidence, trust, and respect members have for their
ii. Task structure: the degree to which job assignment are procedurized (that is , structured or
iii. Position power: the degree of influence a leader has over power-based activities such as hiring,
firing, discipline, promotions, and salary increases
Fiedler assume individual’s leadership style is fixed
c. Hersey and Blanchard’s situational leadership theory (parent vs children): leadership theory that focuses
on the readiness of followers: Ability, willingness to take response for directing behavior.
i. 4 types of followers
1. Unable + unwilling: need to give clear specific direction, be highly directive (TELL)
2. Unable + willing: display high task orientation to compensate for followers’ lack of
ability and high relationship orientation to get them to buy into the leader’s desire. (SELL
3. Able and unwilling: leader need to use a supportive and participative style
4. Able and willing: leader does not need to do much (DELEGATING/AUTONOM)
d. Path-goal theory: leadership theory that says 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 objective of the group or organization.
i. Leader should follow three guideline to be effective
1. Determine the outcome subordinate want: these might include good pay, job security,
interesting job, and autonomy to do one’s job.
2. Reward individuals with their desired outcomes when they perform well
9 3. Let individuals know what they need to do to receive reward: that is, the path to the goal,
remove any barrier that would prevent high performance, and express confidence that
individuals have the ability to perform well.
ii. 4 path-goal leadership styles: to motivate individual in different situations
1. Directive leaders: inform of expectation, give guidance: helpful when individual have
difficulty doing task or task is ambiguous
2. Supportive leaders: approachable, show concern for the follower’s needs: helpful when
individual are under stress
3. Participative leader: consult with follower, take suggestion into consideration: helpful
when individual need to buy in to decision.
4. Achievement-oriented leaders: sets challenging goals and expects followers to perform at
their highest level: helpful when individuals like challenge and are highly motivated. Less
effective with less capable people.
e. Substitutes and neutralizer for leadership: in many situations, leaders’ actions are irrelevant. Experience
and training are among the substitutes that can replace the need for a leader’s support or ability to create
structure. Certain individuals, jobs, organizations can act as substitute for leadership or neutralize the
leader’s ability to influence his followers.
i. Characteristics of individual effect on leadership
1. Experience/training substitutes for task-oriented leadership
2. Professionalism substitutes for relationship-oriented and task-oriented leadership
3. Indifference to reward neutralizes relationship-oriented and task-oriented leadership
ii. Characteristics of job effect on leadership
1. Highly structured task substitutes for task-oriented leadership
2. Provides its own feedback substitutes for task-oriented leadership
3. Intrinsically satisfying substitutes for relationship-oriented leadership
iii. Characteristics of organizationeffect in leadership
1. Explicit formalized goals substitutes for task oriented leadership
2. Rigid rules and procedures substitutes for task-oriented leadership
3. Cohesive work groupsSubstitutes for relationship-oriented and task oriented leadership
Leaders as individuals who inspire followers through their works, ideas, and behaviors
1. Charismatic leadership theory: leadership theory state that followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behavior. 4 step process:
a. Leader articulating an appealing vision (long-terms strategy for attaining a goal): the vision provides a
sense of continuity for followers by linking the present with a better future for the organization
b. Vision accompanying by vision statement (formal articulation of an organization’s vision or mission)
c. Leader convey through words/actions a set of values, and by his behavior, represent an example for
followers to imitate
d. Leader engage in emotion inducing to demonstrate courage and conviction about vision
Vision: must be inspirational, value-centered, realizable, and clearly articulate and have powerful imagery.
Key characteristics of Charismatic leaders
- Vision and articulation. Has a vision expressed as an idealized goal that proposes a future better than the status
quo; and is able to clarify the importance of the vision in terms that are understandable to others
- Personal risk. Willing to take on high personal risk, incur high cost, and engage in self-sacrifice to achieve the
- Sensitivity to follower’s needs. Perceptive of others’ ability and responsive to their needs and feelings
- Unconventional behavior. Engage in behaviors that are perceived as novel and counter to norms
Charismatic work best when: follower’s task has an ideological component. There is lot of stress, uncertainty in environ.
Follower has low self-esteem, self-worth. Leader at upper level of organization.
10 Dark side of Charisma
- Ego-drive charisma leaders allow self-interest and personal goals to override the organization’s goal
- Key difference in successful charismatic leader is Absence of bring ego-drive. There leaders are called level 5
leaders (who are fiercely ambitious and driven, but their ambition is directed toward their company rather than
2. Transactional leadership
a. Contingent reward: contracts exchange of rewards for effort, promise rewards for good performance,
b. Management by exception (active): watches and searches for deviations from rules and standards, takes
c. Management by exception (passive): intervenes only if standard are not met
d. Laissez-faire: abdicates responsibilities, avoids making decisions.
3. Transformational leader
a. Idealized influence: provides vision and sense of mission, instills pride, gains respect and trust
b. Inspirational motivation: communicates high exceptions, uses symbols to focus efforts, expresses
important purposes in simple ways
c. Intellectual stimulation: promotes intelligence, rationality, and careful problem solving
d. Individualized consideration: gives personal attention, treats each employee individually, coaches, advises
These 2 complement each other, thought they are not equally important. Transformational leadership builds on transactional
leadership and produces levels of follower effort and performance that go beyond what transactional leadership alone can
do. But the reverse is not true. Transactional leader without transformational qualities=mediocre leader.
Lower level: ineffective and passive: transactional
Upper level: effective and active: transformational
Contemporary leadership role
Today, less hierarchy, more connection. Needs for more “distributed leadership”. How leadership can be spread throughout
the organization? How to take a leader position
1. Mentoring: a senior employee who sponsors/supports less-experienced employee.
a. Successful mentors are good teachers who can presents ideas clearly, listen well, and emphasize with the
problem of their students (protégé)
b. 2 functions of mentors:
i. Career: coaching, assisting, sponsoring
ii. Psychosocial: counsel, share, act as role model.
Make senior employee satisfied and can share experience can motivate young employee.
2. Self-leadership (self-management): where individuals and tea, set goals, plan and implement tasks, evaluate
performance, solve their own problems and motivate themselves.
a. Reason: reduce levels of supervision: office at home, teamwork, growth in service and professional
employment where individual are often required to make decision on the spot.
b. How do leader create self-leadership:
i. Model self-leadership: practice self-observation, set challenging goals, self-direction, self-
ii. Encourage employee to create self0set goals: support employees in developing quantitative and
iii. Encourage the use of self-reward to strengthen and increase desirable behavior
iv. Create positive thought patterns: encourage employees to use mental imagery and self-talk to
further stimulate self-motivation.
v. Create a climate of self-leadership: redesign the work to increase the natural rewards of a job
vi. Encourage self-criticism: encourage individuals to be critical of their own performance
11 c. Team leadership: leading teams require patience to share info, trust, giving up authority, knows when to
i. Role of team leadership
1. Team leaders need to focus on 2 priorities: managing team’s external boundary and
facilitating team process.
2. 4 specific roles for team leaders
a. Liaison with external constituencies: leader represent team, communicate with
b. Troubleshooters: try to help resolve problem, support, finding resource outside
c. Conflict manager: help to process the conflict
d. Coaches: clarify expectation and roles, offer support, and cheer lead.
d. Online leadership: electronic communication is a powerful channel that can build and enhance leadership
effectiveness. The structure of words in electronic communication has the power to motivate or demotivate
receive. Online leaders confront unique challenges, the greatest of which appears to be developing and
i. Identification based trust: trust based on a mutual understanding of each other’s intentions and
appreciation of each other’s wants and desires
e. Leading without authority (lead without a title on yourself)
i. Latitude for creative deviance: easier to raise harder questions and look for less traditional
ii. Issue focus: individual can focus on a single issue, rather than be concerned with other issue that
those in authority’s face
iii. Frontline info: individual closer to the detailed experiences of some of the stakeholders and thus,
more information is available.
Contemporary issue in leadership
Authentic leadership: leader who know who they are, know what they believe in and value, and act on these values and
beliefs openly and candidly. Their followers could consider them to be ethical people. They build trust by: share info,
encourage open communication. Followers consider the leader to be ethical people. Consequence: people have faith in
authentic leadership. Ex: Hitler
Moral leaders: 4 cornerstones to be a moral foundation of leadership
1. Truth telling: leaders who tell the truth as they see it allow for a mutual, fair exchange to occur
2. Promise keeping: leaders need to be careful of the commitment they make, and then careful of keeping those