MGT 355 Final
Power of organizational culture
- Creates internal unity: defines a normative order that serves as a source of consistent behavior inside an organization. Culture provides organizational members with a way of making sense of their daily lives and establishes guidelines and rules for how to behave. - Helps the organization adapt to the external environment: culture plays a role in informing and supporting meaning when external changes are severe enough to force members to re-evaluate aspects of their organizational identity and purpose.
Tools available for leaders to enforce ethical behavior
- codes of ethics: written code of conduct that displays the values and principles governing employee behavior. - ethics committee: resolve ethical violations and update ethical standards. -training and education programs: provide the opportunity for everyone in the organization to be informed and educated on the company's code of ethics and social responsibility obligations. -disclosure mechanisms: whistle-blowing: employee disclosure of illegal or unethical practices on the part of the organization
4 behavior attributes that distinguish charismatic leaders
- dissatisfaction with status quo - vision formulation and articulation - use of unconventional strategies - awareness for resource needs and constraints
Characteristics of high-performance organizational cultures
- effective use of culture-reinforcement tools: ceremonies, rewards, rituals, symbols, stories, language, and policies. - intensely people oriented: high-performing cultures see their employees as their number one asset. - results oriented: high performing cultures have a strong desire to establish linkages between reward systems and performance. - emphasis on achievement and excellence: high-performing cultures create an atmosphere in which there is constructive pressure to be the best.
Attributes of effective servant leadership
- helping others discover their inner spirit: the servant leaders role is to help followers discover the strength of their inner spirit and their potential to make a difference. - earning and keeping others trust: servant leaders earn followers trust by being honest and true to their word. - service over self-interest: desire to help others, rather than the desire to attain power and control over others. - effective listening: servant leaders do not impose their will on the group; they listen carefully to the problems others are facing and then engage the group to find solutions.
Hofstedes value dimensions
- high to low power distance cultures: high power distance leaders and followers rarely interact as equals (mexico, japan, spain, france) while in a low power distance leaders and their followers interact on several levels as equals (germany, US, ireland). - long term to short term orientation cultures: long term orientation have a future oriented view of life and thus are thrifty and persistent in achieving goals (most asian countries, higher rate per capita savings) short term orientation derives from values that express a concern for maintaining personal happiness and living in the present (european and the US tend to spend more, save less). - masculine to feminine cultures: masculinity describes a culture that emphasizes assertiveness and a competitive drive for money and material objects (japan and italy) femininity describes a culture that emphasizes developing and nurturing personal relationships and a high quality of life (sweden and denmark).
Authentic leadership
- holds him/herself to a higher standard of integrity, character, and accountability. -rooted in the notion of a true self -try to convene a message of hopefulness, optimism, and accountability -underlying components: self awareness, balanced information processing, authentic behavior, relationship transparency
4 behavior dimensions of a transformational leader
- idealized influence (charisma) : fundamental factor in the transformation process. followers idealize such a leader. the leader engages in behavior that infuses followers with a strong sense of idealism. - inspirational motivation: describes how the leader passionately communicates a future idealistic goal or situation that is a much better alternative to the status quo. - individual consideration: serve as mentors to their followers. - intellectual stimulation: describes the leaders out-of-the-box way of thinking. encourage followers to approach old and familiar problems in new ways
Strategies for enhancing ones charismatic qualities
- improve your communication skills - developing your visionary skills - practicing being candid - developing an enthusiastic, optimistic, and energetic personality
Hofstedes Value Dimensions
- individualistic to collectivist cultures: individualism is a psychological state in which people see themselves first as individuals and believe their own interest and values are primary (US, Great Britain, Canada). Collectivism is the state of mind wherein the values and goals of the group are primary (Greece, Japan, mexico) - high to low-uncertainty avoidance cultures: high-uncertainty has a majority of people who do not tolerate risk, avoid the unknown, and are comfortable when the future is relatively predictable and certain (Argentina, Italy, Japan, Israel). low uncertainty has a majority of people who are comfortable with and accepting of the unknown, and tolerate risk and unpredictability (US, austrailia, Canada).
Self-glorification
- influences ones meaning in life by protecting, maintaining, and aggrandizing one's self esteem - is consistent with negative charisma
Characteristics of Low-Performance Organizational Cultures
- insular thinking: managerial arrogance and inward thinking often prevent the organization from making the necessary cultural adaptation as external conditions change - resistance to change: low performing cultures tend to resist change when confronted by fast changing domestic and global business conditions. - politicized internal environment: allows influential managers to operate their units autonomously - unhealthy promotion practices: low performance cultures tend to promote employees into higher leadership positions without serious consideration to abilities, experiences, and training.
Symbolic leadership actions for shaping organizational culture
- modeling expected behavior - recognizing and celebrating achievements - be visible
Personalized Charismatic leaders
- possess a dominant, self-centered, self-aggrandizing, and narcissistic personality and uses charisma for self-glorification - use rewards and punishment to manipulate and control followers - use info to preserve the image of leader infallibility to exaggerate external threats to the organization - ex: bin laden, hitler, charles manson, david koresh, rev. james jones
Socialized charismatic leaders
- possess an egalitarian, self-transcendent, and empowering personality and uses charisma for the benefit of others - use rewards to reinforce behavior that is consistent with the vision and mission of the organization - ex: MLK, Gandhi, Churchill, JFK, Mandela
Self-transcendence
- provides meaning through supportive relationships with others - is consistent with altruistic and empowering orientations of positive charisma
Approaches to managing diversity
- social categorization theory: similarity leads to liking and attraction - information/decision-making theory: diversity leads to better task-relevant processes and decision-making
Guidelines to effective stewardship
- strong team orientation: works best in environments where leaders and followers come together as a team to formulate goals, strategies, and policies for achieving them. - decentralized decision making and power : most effective when authority and decision making is decentralized and brought to the level where work gets done and employees are encouraged to take an active role in self-leadership. - equality assumption: stewardship works best when there is perceived equality between the steward leader and followers. - reward assumption: puts greater responsibility in the hands of employees, increased responsibilities should be matched with an appropriate reward structure.
Organizational culture
- the aggregate of beliefs, norms, attitudes, values, assumptions, and ways of doing things that is shared by members of an organization and taught to new members. - the operating system that brings to life the underlying core values of an organization - recognized as a source of competitive advantage - a deeply rooted culture that is well matched to strategy and external environmental trends is a strong recipe for successful strategy execution
Locus of charismatic leadership
- the situation or social climate facing the leader - the leaders extraordinary qualities - a combination of the situation and the leaders qualities
3 stages of Crisis Management Model
-Precrisis Planning: appointing a crisis leader, creating a crisis response team, assessing risk. -Managing during a crisis: role of a senior leader includes > stay engaged and lead from the front, focus on the big picture and communicate the vision, work with the crisis mgt team -Managing after a crisis: be mindful of three "A's" > acknowledge, action, avoid. Top mgt should launch an evaluation of the organizations effectiveness in managing the crisis
Strategic Management Framework
-Strength and weaknesses on internal environment - opportunities and threats on external environment -Steps: Vision/Mission > Strategic goals > formulate strategy > implement strategy > evaluate strategy > strategic competitiveness and above average returns
Lewin's 3 stage model of organizational change
-Unfreezing: creating motivation to change -Changing: learning new ways to do things - training/development -Refreezing: making new ways normal within the organization
Strategic Leadership
-a persons ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization. -focus on people -have a vision -change
Balanced scorecard
-a tool used to measure the effectiveness of the strategic management process by translating the mission and vision statements into a comprehensive set of objectives and performance measures that can be quantified and appraised. -1. Financial perspective: how do we look to shareholders? -2. Customer perspective: How do customers see us? -3. Internal business perspective: what must we except at? -4. Innovation & learning perspective: can we continue to improve and create value?
Types of Organizational Change
-adaptive change: once or twice a year, reintroducing a familiar practice. -innovative change: benchmarking, introducing a practice new to the organization -radically innovative change: new to industry and sets trends for other companies
Organizational change
-an alteration in an organizations alignment with its internal/external environment - can be reactive (changing because something already happened) or proactive (searching for opportunities) -change can be transformational (one big step to change) or incremental (little steps to change)
Mission Statement
-an enduring statement of purpose that distinguishes one organization from other similar enterprises. -organizations core purpose and reasons for existence -features two components: core values> guiding principles and ethical standards. core purpose> customer needs to be met by the firm
Strategy Implementation
-can be described as the action phase of the strategic management process -considered to be the most difficult stage of the strategic management process
Effective crisis communication
-designates who will speak in the event of a crisis -short term benefits: well informed employees will assist the organization in presenting the facts to the outside world -long term benefits: organization will have won over the confidence, loyalty, and commitment of the employees -first 24 hours of a crisis are crucial -can use social media, press release, news conference to disseminate info
Ethics Leadership
-ethics are the standards of right and wrong that influence behavior -ethics provides guidelines for judging conduct and decision making
Effective Strategic leaders are skilled at
-finding and sustaining competitive advantage by building core competencies and selecting the right markets in which to compete -competitive advantage: unique about company, what others don't have. -core competencies: what the company focuses in on and excels at -building a highly effective, efficient, and motivated team of employees - goals should be specific, attainable, and measurable
Need for change
-internal comes from within the company > employees -external comes from changes in consumer preferences, industry change
Role of leaders in creating a learning organization
-leaders play a key role in fostering a learning culture -part of fostering a learning culture is creating an appropriate climate so that people can build upon each others ideas and suggestions
Learning organization
-one that is skilled at creating, acquiring, and transferring knowledge, and at modifying behavior to reflect new knowledge and insights. -changing environment
Strategy Evaluation
-primary means of determining the effectiveness of the strategic management process -3 fundamental activities: reviewing internal and external factors, measuring performance against objectives, taking corrective action
Crisis management plan
-should address what happens before, during, and after a crisis -should be comprehensive, upgraded frequently and supported by training, coordinated and controlled across levels and units of the organization
Diversity leadership
-the inclusion of all groups at all levels in an organization. -demographic diversity: is any characteristic that serves as a basis for social categorization and self-identification.
Creating a pro diversity culture
-top management support and commitment -organizational philosophy -pro-diversity human resource policies and practices -organizational communication on diversity -including diversity as a criterion for measuring success -training and education
Diversity Training
-ultimate objective is to create a diversity sensitive orientation within the entire workforce. -training sessions are aimed at increasing peoples awareness of and empathy for people from different cultures and backgrounds. -Diversity training may include: role playing, self assessment/self awareness activities, sensitivity projects
Strategic crisis leadership requires 3 things
-using environmental monitoring techniques to identify events that could trigger crises in the future -integrating crisis management into the strategic management process so it remains a regular part of the overall strategy-evealuation process -establishing a culture that embraces crisis awareness and preparation as a way of life
Transformation process
1. Make a compelling case for change 2. inspire a shared vision 3. lead the transition 4. implement the change
Kotters Eight Stage Model
1. establish a sense of urgency, 2. form a support platform, 3. develop a compelling vision, 4. diffuse the vision throughout the organization, 5. train and empower followers to act on the vision, 6. allow for short-term accomplishments, and reward performance, 7. consolidate gains by changing the culture, systems, policies, and structures to align with new vision, 8. institutionalize the change in the organizational culture
Risk Assessment Model
1. risk identification, 2. risk assessment and ranking, 3. risk reduction strategies, 4. crisis prevention stimulations, 5. crisis management
Transactional leadership
Seeks to maintain stability within an organization through regular economic and social exchanges that achieve specific goals for both the leaders and their followers
Transformational leadership
Serves to change the status quo by articulating to followers the problems in the current system and a compelling vision of what a new organization could be
Charisma
a distinct social relationship between the leader and follower, in which the leader presents a revolutionary idea, a transcendent image or ideal which goes beyond the immediate; while the follower accepts this course of action because of an effective belief in the extraordinary qualities of the leader.
Crisis leadership
a low-probability, high-impact event that threatens the viability of the organization and is characterized by ambiguity of cause, effect, and means of resolution, as well as by a belief that decisions must be made swiftly
Strategy Formulation
a strategic vision is an ambitious view of the future that everyone in the organization can believe in and that is not readily attainable, yet offers a future that is better in important ways than what now exists.
Portfolio agility
ability to reallocate resources out of less promising units and into attractive ones.
Operational agility
capacity to cease opportunity to improve processes within the organization
System thinking
everyone in the organization should know how their actions and attitudes affect others
Survival anxiety
feeling that unless organization makes a change it will be out of business or fail to achieve.
Advantage of Coalition
help each other out and influence others
Environmental Scanning
identifies the relevant internal and external environmental factors and industry drivers that weigh on the organizations vision, mission, objectives, strategy, and business model.
Strategic agility
identify major opportunities in external environment then respond properly
Stewardship
is an employee-focused form of leadership that empowers followers to make decisions and have control over their jobs.
Servant leadership
leadership that transcends self-interest to serve the needs of others, by helping them grow professionally and personally
Organizational identity
members consensual understanding of who we are as an organization
Adaptive culture
represents a leadership belief in active monitoring of the external environment for emerging opportunities and threats and adaptive to them
Cooperative culture
represents a leadership belief in strong, mutually reinforcing exchanges and linkages between employees and departments
Competitive culture
represents a leadership mind-set that encourages and values a highly competitive work environment
Bureaucratic culture
represents a leadership mindset that values order, stability, status, and efficiency
Organizational knowledge
tactic and explicit knowledge that individuals possess about products, services, systems, and processes
Strategic management
the set of decisions and actions used to formulate and implement specific strategies that will achieve a competitively superior fit between the organization and its environment, so as to achieve organizational goals.