SHRM CP- Leadership

Formal Organizational Features

-The traditional reporting lines that create the organization's managerial levels or hierarchy. HR professionals should learn the types of responsibilities individuals have in their positions. -The decision-making process. Is there a formal process with multiple hurdles of required approvals? How is the ultimate decision made—by senior management or by a committee? Whose sign-offs or recommendations are critical to acceptance of a proposal? What type of factual support is most meaningful to the decision makers? -The funding process. Will funding be part of the regular budget, or can a project be funded separately? This will affect the timing of the request. The organization's strategy, mission, and values. What does the organization want to achieve? How does it want to be perceived by customers and stakeholders? -Aligning requests for support with the organization's interests will improve the chances for success. -Events that may have shaped or may be shaping decision makers' assessments. For example, competitive actions, market conditions, or earlier decisions may be contributing to a greater sense of uncertainty or risk. Similar past initiatives that did not deliver promised outcomes may predispose decision makers to say no to current propositions.

QUIZ SCENARIO: After the merger of two business entities, the new vice president (VP) of HR holds a staff meeting and tells the group that the organization now has six active vacation policies. This was identified during due diligence, but the leaders determined that it did not affect the ultimate decision to merge and that the matter should be addressed post-merger. That time has come, and the VP of HR would like the benefits managers to develop a plan with recommendations. Each policy has slightly different criteria and provisions. As a result of post-merger restructuring, it is possible for all six policies to be in effect in a single department or location. Harmonizing the policies will invariably benefit some employees and hurt others. The benefits managers need to decide if the organization should try to harmonize the policies from the merged entities or let them continue to coexist. The VP of HR adds another complication. The leadership of the two entities has been merged "on paper," but there is still a lot of struggling behind the scenes to establish or increase power and influence. The VP of HR would like it if the team could avoid making this issue an opportunity for a proxy power struggle. 1. What critical first step should the benefits managers take to begin the harmonization process? A. Send an e-mail to leadership advising them of the situation. B. Independently implement a policy that seems the most reasonable. C. Perform a risk assessment of the two options: harmonize or coexist. D. Determine if the differences generate employee relations issues. 2. Given the sensitive nature of the issue and the recent nature of the merger, what approach does the HR team need to implement to communicate changes to the vacation policy? A. Communicate the decision to the business leaders and request that they only e-mail the information to their employees. B. After leadership approval, directly communicate to all stakeholders the decision and the impact on them and the business. C. Include the decision and the new policy in the newsletter under the heading of ongoing merger and acquisition activity. D. Include the information about the policy in the employee handbook and on the intranet. 3. A member of the HR team tells her colleagues that she has been approached by one of the business heads and pressured to support a solution that would leave the vacation policies of one of the merged entities intact. She asks advice about responding. What is the best piece of advice to give in this situation? A. Suggest she tell the VP of HR about this incident and ask that they manage this behavior. B. Explain that she has to support the best interests of the organization; however, she should work to understand the reason for the request. C. Recommend that she proactively contact the business head and request that this not happen again. D. Encourage her to transition the request to the CEO and the VP of HR because this is beyond her responsibility. 4. The team decides to hold focus groups with employees currently covered by the different policies. What should the team do to ensure that this is a productive tactic? A. Conduct mixed but balanced focus groups with a trained facilitator. B. Conduct separate focus groups for employees covered by the existing policies, asking for comments on their own current policies. C. Limit the amount of unstructured discussion so as not to encourage conflict. D. Share the plan that will most likely be implemented.

1. Perform a risk assessment of the two options: harmonize or coexist. *The best approach is to analyze the risks of the current situation and the situation in which the policies have been aligned. This will require understanding the promises and practices underpinning the original policies. Prior deals may have provided the employees with a promise of continued benefits, resulting in an ethical commitment to continue or uphold that obligation. It would be critical to include that information in considerations about how to resolve the situation. 2. After leadership approval, directly communicate to all stakeholders the decision and the impact on them and the business. *Whatever resolution is decided, communicating it to stakeholders will be important to the success of implementing the policy. Using an intentional and purposeful approach will engage leadership and create support for the way forward. 3. Explain that she has to support the best interests of the organization; however, she should work to understand the reason for the request. *Counseling the team member to be respectful while maintaining her independence and integrity supports her role as an organizational leader. 4. Conduct mixed but balanced focus groups with a trained facilitator. *Mixed focus groups would foster the communication needed at this stage of the merger, and a trained facilitator would be able to keep discussion productive and respectful.

Universal Characteristics That Detract from Leadership

Asocial (doesn't value relationships) Poor at communicating (both sending and receiving messages) Noncooperative Irritable Egocentric Ruthless Dictatorial

QUIZ: An employee is faced with an ethical dilemma dealing with a supplier. How should the code of ethics support the employee? 1. By managing risks to the organization's public image 2. By guiding decision making and behavior 3. By reflecting the legal traditions of the home country 4. By accommodating the norms of the countries in which the organization operates

By guiding decision making and behavior *Effective codes of ethics help employees to recognize ethical issues and to respond in a way that reflects the organization's values.

QUIZ: An organization is sending salespeople into a new territory where bribery is common. How can HR support the code of ethics in this environment? 1. By requiring salespeople to report bribery income and factor it into compensation 2. By reviewing current ethical guidelines and creating specific guidelines on bribery if necessary 3. By suspending the code of ethics, because bribery is part of the culture 4. By instructing salespeople to refuse service and leave when bribery is attempted

By reviewing current ethical guidelines and creating specific guidelines on bribery if necessary *Since bribery is common, it is best to anticipate it and create guidelines for handling it ethically. A code of ethics is not situational and cannot be arbitrarily suspended. Factoring bribery into compensation does not support the code of ethics. Since the salespeople are there to sell and bribery is a known challenge, HR must help the salespeople prepare to overcome it.

QUIZ: What document is a formal statement describing a company's principles and the business practices that support those principles? 1. Code of conduct 2. Employee handbook 3. Strategic plan 4. Mission statement

Code of conduct *A corporate code of conduct is a formal statement that describes a firm's principles and the business practices that support those principles.

QUIZ: A manager uses his skill with people to smooth over problems and to make his employees feel secure in their positions. According to the Blake-Mouton theory, what leadership style is the manager using? 1. Impoverished manager 2. Team leader 3. Country club manager 4. Authoritarian manager

Country club manager *Managers who exhibit low task, high people (country club) leadership styles avoid using their authority because they fear that it will jeopardize their relationships. They try to create a supportive atmosphere and trust that employees will respond positively. An authoritarian leader emphasizes task, and an impoverished leader neglects both task and people. A true team leader attends to needs related to both tasks and people.

Motivation Theory: Expectancy Theory

Effort increases in relation to one's confidence that the behavior will result in a positive outcome and reward.

QUIZ: Executives at a company have identified the need to promote diversity and develop a global mindset within the organization. According to Goleman, what leadership ability would best complement this initiative? 1. Emotional intelligence 2. High intellectual capability 3. Effective communication 4. Adaptability to change

Emotional intelligence *Without emotional intelligence (EI), the behaviors needed to support diversity and a global mindset would not be possible. Daniel Goleman suggests that five components of emotional intelligence—self-awareness, self-regulation, motivation, empathy, and social skills—are essential in establishing EI in an organization.

QUIZ: What is the most accurate statement about motivating employees? 1. Followers are most motivated by a self-confident leader. 2. Individual motivators can vary among individuals. 3. Motivation will not sustain performance over time. 4. Team members from different generations will not be motivated by the same rewards.

Individual motivators can vary among individuals. *Individuals are motivated by different things, even individuals in the same workplace and from the same generation. Motivation can initiate, direct, and sustain desired behavior over time. It does this by appealing to individuals' needs, which could include having trust in a self-confident leader but is not limited to that factor.

QUIZ: An HR manager derives his authority from his extensive background in HRM. What type of power is this manager using? 1. Affiliation 2. Expert 3. Referent 4. Legitimate

Expert *According to John French and Bertram Raven, the manager is using expert power, which influences others' behavior on the strength of the leader's deeper knowledge and experience. Legitimate power derives from position in the organization's hierarchy. Referent power comes from the strength of personal relationships with team members. Affiliation is actually a need that can motivate team members—the need to be part of a group.

Motivation Theory: Needs Theory

Individuals are motivated by a desire to satisfy certain needs. Understanding these needs allows leaders to offer the right incentives and create the most motivational external environments. Common factors are achievement, a desire for social connection, and some degree of control.

QUIZ: An HR professional receives an anonymous tip alleging unethical practices on the part of a top-performing sales professional. The organization takes ethical issues very seriously. Which action should the HR professional take with regard to the allegations? 1. Immediately engage the sales professional regarding the allegations and see how she responds. 2. Attempt to discover the source of the anonymous tip so he can ask for additional information. 3. Penalize the sales professional by garnishing her earned commissions, because some of those commissions were earned unethically. 4. Investigate and establish any available factual information related to the allegation.

Investigate and establish any available factual information related to the allegation. *It is crucial to establish the facts about the situation before proceeding. However, the HR professional cannot breach the confidentiality of the anonymous individual who submitted the tip. Directly engaging the sales professional may not be warranted if there is no supporting evidence, or it might influence the sales professional to take actions to cover up her unethical practices before HR can complete the investigation. The sales professional should not be penalized or disciplined until HR can verify the accuracy of the anonymous tip.

Emergent Theory

Leaders are not appointed but emerge from the group, which chooses the leader based on interactions.

Behavioral Theory: Blake-Mouton Theory

Leadership involves managing: - Tasks (work that must be done to attain goals). - Employees (relationships based on social and emotional needs). Five types of managers, only one of which (team leader) is considered a leader: 1. Country club managers (low task, high relationship) create a secure atmosphere and trust individuals to accomplish goals, avoiding punitive actions so as not to jeopardize relationships. 2. Impoverished managers (low task, low relationship) use a "delegate-and-disappear" management style. They detach themselves, often creating power struggles. 3. Authoritarian managers (high task, low relationship) expect people to do what they are told without question and tend not to foster collaboration. 4. Middle-of-the-road managers (midpoint on both task and relationship) get the work done but are not considered leaders. 5. Team leaders (high task, high relationship) lead by positive example, foster a team environment, and encourage individual and team development.

QUIZ: The vice president of human resources wants to develop a strong organizational commitment to ethical standards. Which is the best way to communicate this commitment? 1. Inserting a statement to this effect in employee handbooks 2. Delivering annual workshops on how to deal with ethical dilemmas 3. Coaching individual employees whenever a question of ethics arises 4. Modeling of ethical behavior by leaders, managers, and supervisors

Modeling of ethical behavior by leaders, managers, and supervisors *Modeling of ethical behavior indicates management and supervisory support every day in a variety of scenarios. Statements in handbooks are passive learning and are hard to transfer to real workplace situations. Annual training without frequent reinforcement is not very effective. Individual coaching is good, but it is reactive, occurring after the event. Modeling can help prevent unethical behavior.

QUIZ: You are conducting a market salary survey to make sure that your team members are being adequately compensated and won't seek employment elsewhere. You are seeking to meet which level of needs in Maslow's hierarchy? 1. Safety and security 2. Belonging and love 3. Physical needs 4. Self-esteem and respect for others

Safety and security *The safety and security level includes acceptable pay, work conditions, and job security.

QUIZ: What leadership theory is characterized by the belief that managers must use different leadership styles depending on the circumstances? 1. Motivational theory 2. Trait theory 3. Behavioral theory 4. Situational leadership theory

Situational leadership theory *The situational leadership theory states that different leadership styles should be used based on the situation in which managers find themselves. The trait theory states that leaders possess different traits than average people do. According to the behavioral theory, how a person behaves determines leadership effectiveness. The motivational theory looks at the factors causing job satisfaction and dissatisfaction.

Motivation Theory: Attribution Theory

The way a person interprets the causes for past success or failure is related to the present level of motivation. A leader can help employees attribute results to the correct causes and create opportunities for success.

Which action can HR take to assist in creating an ethical organization? 1. Initiating a tip line for reporting ethical violations 2. Training leaders in ethical practices 3. Handling all ethical issues that arise 4. Referring all ethical issues to legal counsel

Training leaders in ethical practices *To create an ethical organization, leaders and managers need to know how to recognize ethical dilemmas and how to deal with them. Leaders need to know what the organization values and what its expectations are for its leaders and employees.

Universal Characteristics That Define Leadership

Trustworthy and dependable Just Honest Thinks and plans ahead Encouraging Positive Dynamic Motivational Confidence building Decisive Committed to excellence Intelligent and informed Effective, win-win bargainer Administratively skilled Communicative Organized

QUIZ: An HR manager is careful never to promise a staff member a reward that he may not be able to deliver. What motivation theory does this reflect? 1. Goal setting 2. Maslow 3. Herzberg 4. Vroom

Vroom *Vroom's theory proposes that employees are most motivated when they believe that successfully performing their assignments will result in promised rewards.

QUIZ: An HR professional has just joined an organization and wants to better understand its informal characteristics. What should she pay attention to? 1. Mission statement on the organization's website 2. Who people interact with and the nature of their interactions 3. Reporting structure in the organization and number of management levels 4. Kinds of business decisions the organization has made in the past

Who people interact with and the nature of their interactions *The informal aspects of an organization are learned best by observing how people behave, communicate, and interact. The other choices all refer to the formal characteristics of an organization, aspects that have been articulated or documented in some way for all of the organization's members.

Kelly and Medina identify four types of potential allies. What are they?

*only first two are helpful 1. "Bureaucratic black belts" know the organization's systems well and know how to make things happen. They know decision-making processes and requirements. They can educate leaders about how to gather support for an idea and help them avoid mistakes that may damage their credibility or prolong the process. 2. "Tugboat pilots" have good political instincts. They usually have a deep history with the organization and can predict reactions. They can point out other potential allies who may have a related interest and can benefit from an HR initiative. 3. "Benevolent bureaucrats" are willing to partner but have their own agendas. An HR leader must assess the impact these other agendas are likely to have on an HR initiative. As long as the other agenda does not compromise HR's goals or decrease the HR initiative's chances for acceptance, these individuals can have value. 4. "Wind surfers" are willing to partner but only to share in any successes. They add little value to the initiative and to the process of gaining support. They simply want to attach themselves to it. It may be necessary to work with them—perhaps to satisfy a more valuable ally—but HR leaders must be mindful of the wind surfer's goals and potential value.

Evaluate the ethical dimensions of possible actions

- A utilitarian approach argues for the path that provides the greatest amount of good for the greatest number. - A rights approach examines whether a decision violates any basic human right, such as a right to truth, privacy, or physical well-being. - A justice approach examines the degree to which an action might be preferential or discriminatory. - A common-good approach considers the impact of the decision on the entire group (or society, in more general terms). - A virtue approach asks whether an action will promote or obstruct the decision maker's character development and the character development of those affected by the decision.

Referent power (internal) is created by the force of the leader's personality—the ability to attract admiration, affection, and/or loyalty.

- Appeals to social needs of individuals, the desire for affiliation. -Will weaken if leader is not competent, effective, and fair.

Motivation Theory (needs): Herzberg

- Behavior is driven by intrinsic factors (innate desires) and extrinsic factors (workplace hygiene). 1. Intrinsic factors: challenging work, meaningful impact of work, recognition 2. Extrinsic factors: job security, pay, conditions - Satisfying hygiene factors can remove some areas of discontent that interfere with motivation, but satisfactory workplace conditions are not enough in themselves to create motivation. -Motivation is created by appealing to individual desires or needs. -In applying Herzberg's motivation-hygiene theory, it is important to remember that while good workplace conditions do not positively affect motivation, unacceptable conditions will lead to job dissatisfaction and can make a motivated employee look for another job. Hygiene factor levels must be acceptable in order for the motivation factors to become operative.

Robert Hurley found that while honesty and predictability are necessary to build trust, they are only part of the requirements. Building trust is more likely when the person bestowing trust recognizes certain qualities in the other person:

- Common values. Finding commonalities helps overcome the sense of "otherness." People trust people who are similar to themselves. - Aligned interests. What do we do if we don't share values—if we come from different cultures or belong to different religions or political parties or generations or genders? Trust is possible to construct across differences in beliefs, experiences, or culture; it simply takes time and communication. In organizations, a common value can be found in a commitment to stakeholders—for example, to the visions of leaders or the well-being of employees and customers. -Benevolence. A benevolent person is perceived as having genuine concern about another's well-being, above or at least equal to his or her own interests. Leaders who risk their own advancement opportunities to champion or protect followers will be trusted. Someone who manipulates others to achieve personal objectives is not benevolent. - Capability or competence. People must feel that an individual can deliver on commitments. People who over-promise or do not follow through do not merit trust. -Predictability and integrity. A trustworthy person reliably "walks the talk"—there is consistency between values and behavior. Occasional acts of integrity are not enough. -Communication. Trustworthy people communicate often and fully. They listen and respond to what they hear. They reveal things about themselves, and they are open to hearing about how others see them.

Authoritative: The leader proposes a bold vision or solution and invites the team to join this challenge.

- Effective at times when there is no clear path forward and when the proposal is compelling and captures the team's imagination. -Team members have a clear goal and understand their roles in the effort. They are encouraged to contribute their own ideas and take risks. -Ineffective when the leader lacks real expertise.

Coercive: The leader imposes a vision or solution on the team and demands that the team follow this directive.

- Effective during crises when immediate and clear action is required. - Ineffective at other times when it can damage employees' sense of ownership in their work and motivation.

Motivation Theory (needs): Maslow

- Five basic categories of needs must be met in an ascending order: 1. Physiological (basic needs related to survival) 2. Safety and security 3. Belonging and love (the need to belong, to be accepted) 4. Esteem (both self-esteem and admiration of others) 5. Self-actualization (the need to fill one's potential) - A lower-level need must be relatively satisfied in order for a higher-level need to emerge or serve to motivate. -No need is ever totally satisfied, however. The lower-level needs will always have some influence on behavior.

Motivation Theory (needs): Self-determination

- Individuals are motivated by innate needs, such as competence (McClelland's achievement) and relatedness (McClelland's affiliation) but also by needs for: 1. Autonomy, or the need to feel that one has control over one's life. 2. Purpose, or the sense that one's actions have effects beyond the individual or the workplace.

Motivation Theory (needs): McClelland

- Individuals are motivated by three basic desires: 1. Achievement (accomplishment) 2. Affiliation (feeling part of a group) 3. Power (influence or control over others) - Employees have all three needs but the needs' relative importance may vary among individuals. Effective leaders identify and appeal to each employee's primary motivators. For example: 1. Give an achievement-oriented employee an assignment that will require and call attention to the employee's abilities. 2. Incorporate socialization events or opportunities into team schedules for affiliation-oriented employees. 3. Delegate to power-oriented employees tasks that they can control and direct, perhaps ones with high visibility in the organization.

Situational Theory: Hersey-Blanchard Situational Leadership

- Leaders adapt their behaviors to meet the evolving needs of team members. Like Blake-Mouton, the behaviors involve tasks and relationships. - As team members grow in skill and experience, leaders supply the appropriate behavior: 1. Telling when the employee is not yet motivated or competent. 2. Selling when the increasingly competent employee still needs focus and motivation ("why are we doing this"). 3. Participating when competent workers can be included in problem solving and coached on higher skills. 4. Delegating when very competent team members can benefit from greater levels of autonomy and self-direction.

Situational Theory: Fiedler's Contingency Theory

- Leaders change the situation to make it more "favorable," more likely to produce good outcomes. -"Situation favorableness" occurs when: 1. Leader-member relationships are strong. 2. Task structure and requirements are clear. 3. The leader can exert the necessary power to reach the group's goal. -Unfavorable situations must be changed to improve group (and leader) effectiveness. This can include: 1. Improving relations between the leader and the team (e.g., by building trust). 2. Changing aspects of the task (e.g., breaking a project down into more manageable pieces, providing more resources for the team). 3. Increasing or decreasing the leader's exercise of power (e.g., to increase team involvement in and ownership of ideas, to decrease harmful conflict or resistance to change).

Trait Theory

- Leaders possess certain innate characteristics that followers do not possess (and probably cannot acquire), such as physical characteristics (e.g., strength, stamina) and personality traits (e.g., decisiveness, integrity). Sometimes referred to as the "Great Man" theory. - It equates these characteristics and leadership but without evidence. - It may discourage leader development by implying that the ability to lead cannot be acquired with study and practice.

Motivation Theory (Expectancy): Vroom

- Level of effort depends on: 1. Expectancy. (With reasonable effort, the employee can succeed.) 2. Instrumentality. (Success will result in a reward.) 3. Valence. (The reward is meaningful to the employee.) All three factors must be addressed to create motivated employees.

Motivation Theory: Goal-Setting Theory

- Motivation can be increased by providing employees with goals against which they can assess their achievement. - Optimally, employees should be involved in designing goals and supported in achieving their goals. -Effective goals are: 1. Specific and clear. 2. Important to the individual. This enables greater commitment. 3. Realistic but challenging. Goals that are unrealistically high can harm motivation. -Feedback helps employees determine the effectiveness of their effort.

Motivation Theory: Theory X/Theory Y

- Motivation is seen as absolutely irrelevant (Theory X) or absolutely critical (Theory Y) in the workplace. -Theory X leaders micromanage and coerce team members because they believe people do not like to work and must be strictly controlled and forced to work. - Theory Y leaders believe that employees dislike rigid controls and inherently want to accomplish something. Therefore leaders apply a more participative style that empowers employees. *Theory Y is considered more appropriate in today's knowledge-driven workplaces.

Motivation Theory (Attribution): Heider, Weiner

- Success or failure can be attributed to internal factors (e.g., skills, diligence) or external factors (e.g., available resources, market events). Internal factors may be under the employee's control (e.g., the employee can work harder or be more careful), but external factors are probably beyond the employee's control - A track record of success can create empowered and resilient employees, while a track record of failure (even though the causes were external to the employee's control) can create "learned helplessness" and even aggression or hostility in the workplace. -Leaders create opportunities for success for less experienced employees, perhaps by providing more resources, coaching, and guidance. More challenging assignments are given to employees who believe they can (and are likely to) succeed.

Ways to persuade

- The most useful tactic is reasoning: explaining the advantages of one's view logically, clearly, and with examples. This is most effective when it is combined with knowledge of the other person's needs and the potential for aligning interests for mutual benefit. - When evidence is unavailable, one can appeal to mutually held visions or values: for example, to a commitment to employees' welfare and improvement. - An HR professional can use the process of reciprocity: a system of banking "favors" so that one can ask for a favor in return in the future. For example, an HR professional can take extra steps for a hiring manager who may in the future be able to support HR activities. - HR professionals can also trade for what they want: using their expertise or resources to fulfill another's needs.

Informal Organizational Features

- They are more challenging to learn because they are often based on interpersonal relationships that are complex and subtle and can change frequently. -The informal organization can be seen in the organization's culture and its social dynamics. 1. Values and beliefs are demonstrated through actions (e.g., mutual respect, honesty). 2. Social dynamics include the degree to which members of the organization form relationships with each other across functional lines and hierarchical levels. 3. The way people communicate with each other (e.g., through meetings, e-mails, or group SMS [short messaging service] texts) and what they communicate about. 4. The informal structure includes social networks of members that have formed around common interests.

Situational Theory: Path-Goal Theory

- This theory emphasizes the leader's role in coaching and developing followers' competencies. The leader performs the behavior needed to help employees stay on track toward their goals. This involves addressing different types of employee needs: 1. Directive—Help the employee understand the task and its goal. 2. Supportive—Try to fulfill employee's relationship needs. 3. Achievement—Motivate by setting challenging goals. 4. Participative—Provide more control over work and leverage group expertise through participative decision making.

Reward power (external) is created when the leader can offer followers something they value in exchange for their commitment (e.g., promotions, compensation).

-Can appeal to team members' individual motivators. -Is useful only when leader has access to and can extend to team members meaningful rewards.

Expert power (internal) is created when a leader is recognized as possessing great intelligence, insight, or experience.

-Can improve a team's efforts by offering advice and guidance. Can win respect for the team and its work throughout the organization. -Can improve a team's efforts by offering advice and guidance. Can win respect for the team and its work throughout the organization.

Legitimate power (external) is created formally—through a title or position in the hierarchy that is associated with the rights of leadership.

-Can save time in decision making and focus team on the organization's goals. -May be insufficient if leader is not also competent and effective at leading.

Effective HR leaders:

-Develop and coach others. -Build positive relationships. -Model their values and fulfill their promises and commitments. -Have functional expertise.

Affiliative: The leader creates strong relationships with and inside the team, encouraging feedback. The team members are motivated by loyalty.

-Effective at all times but especially when a leader has inherited a dysfunctional and dispirited team that needs to be transformed. Leader must have strong relationship-building and management skills -Ineffective when used alone. For example, opportunities to correct or improve performance may not be taken because the affiliative leader fears damaging a relationship.

Coaching: The leader focuses on developing team members' skills, believing that success comes from aligning the organization's goals with employees' personal and professional goals.

-Effective when leaders are highly skilled in strategic management, communication, and motivation and when they can manage their time to include coaching as a primary activity. Team members must also be receptive to coaching. -Ineffective when employees resist changing their performance.

Pacesetting: The leader sets a model for high performance standards and challenges followers to meet these expectations.

-Effective when teams are composed of highly competent and internally motivated employees. -Ineffective when expectations and the pace of work become excessive and employees become tired and discouraged. In the leader's attempt to set high goals, he or she may focus exclusively on the task and not give enough time to activities that motivate team members, such as feedback, relationship building, and rewards.

Democratic: The leader invites followers to collaborate and commits to acting by consensus.

-Effective when the leader does not have a clear vision or anticipates strong resistance to a change. Team members must be competent; leaders must have strong communication skills. -Ineffective when time is short, since building consensus takes time and multiple meetings.

leadership style affects

-Employees' ability to make decisions that affect their work. -Employees' sense of responsibility to the organization or team. -The standards employees seek to meet or exceed. -Employees' belief that they will be rewarded for their work. -An understood mission and shared values. -A feeling of commitment to a shared goal.

Ineffective HR leaders:

-Focus internally rather than externally, failing to look outside the HR function to the organization's internal and external stakeholders -Lack strategic perspective, focusing on short-term objectives and daily tasks. -Do not anticipate or react well to change. -Resist "stretch" goals and act as a drag on the organization's attempts to innovate.

Coercive power (external) is created when the leader has the power to punish those who do not follow.

-Likely to get immediate results. -Damages team members' motivation and self-direction over time.

QUIZ SCENARIO: A global company benchmarks against similar companies that have recently faced costly and embarrassing cybersecurity breaches resulting in the loss of customer confidence. In response, the CEO assigns tasks to three departments: The IT department is charged with enhancing data accuracy, security, and privacy. Risk management is charged with implementing improved governance, compliance, and enforcement. HR is charged with strengthening procedures around acquisition of staff, policy creation, the code of ethics, and communication. Internally, the company must protect proprietary information and determine what limits to place on data retention and acquisition. Externally, they must also acquire competitive data and follow the law in all jurisdictions of their operations. Challenges with social media, web browsing, instant messaging, and high levels of employees traveling with their electronic devices create additional burdens. Currently, the company provides devices for all eligible employees. The three departments agree that employees must possess a work ethic, motivation, and integrity. The head of IT believes that there are three sources for recruitment, selection, and staffing: the military, college graduates with degrees in information technology, and professional hackers—skilled computer experts who use their technical knowledge to overcome a problem. 1. IT plans to hire a professional hacker as an independent contractor to conduct ongoing IT vulnerability assessments to improve security, review the possibilities of penetration, and make recommendations to protect the system. Which protective measures should HR recommend? A. Conduct a background check and create an independent contractor agreement that sets terms to prohibit any access not specifically authorized. B. Give the person administrative passwords and see whether they are secure enough or should be changed. C. Require that the independent contractor sign an invention agreement and honor code statement. D. During the interview process, ask candidates to access the company's system and provide evidence of their ability to locate weaknesses. 2. In order to determine the full scope of enterprise risk that exists, which areas should HR review in an IT audit? A. Compensation structure B. Links between business and information strategy and business continuity C. Ways to reduce the amount of sensitive data that must be protected D. Reasons for the lack of outsourcing to third parties with deeper IT experience 3. Which technology policies should the HR manager recommend that the company implement? A. The company must approve all personal devices the employee uses at home. B. The company can review all charges and information on a company-provided device. C. All employees must use their own electronic devices for work. D. Employees may use devices at any time. 4.Where should the HR manager look to find potential employees with skills in cybersecurity? A. Consider individuals who have recent criminal records related to Internet security and offer them state-of-the-art equipment. B. Search for individuals with any computer-related degree. C. Look on "dark" websites that attract cybercriminals and promise them large hiring bonuses. D. Recruit former military Internet workers who are attracted by a higher level of pay and flexibility.

1. Conduct a background check and create an independent contractor agreement that sets terms to prohibit any access not specifically authorized. *best response to avoid the contractor overstepping bounds and for the company to ensure that there are no past actions that would create too high a risk level. 2. Links between business and information strategy and business continuity *Many organizations rank business continuity as an important information security function. 3. The company can review all charges and information on a company-provided device. *Because the company already provides devices for eligible employees, the HR manager needs to ensure that all employees are aware that there is a policy in place that states that the company can review charges and information on a company-provided device. 4. Recruit former military Internet workers who are attracted by a higher level of pay and flexibility. *Military personnel have typically worked on confidential and classified projects but may not have been compensated comparably to the private sector.

Creating an Effective Code of Conduct

1. Gather information. Query stakeholders through surveys or focus groups about ethical risks and conflicts they have encountered and important compliance requirements. Specific descriptions of actual events can help make the code more meaningful and applicable for users. HR professionals ensure that all internal and external stakeholders are included in this information-gathering step—all organizational functions and experts on regulatory compliance requirements. 2. Draft and review. An effective code: - Is clear about its objectives. - Is understandable. The language should be brief, pointed, and at a level easily understood by all employees. It should not rely on legal terminology. For non-readers, the code may be presented in audio. The code should be translated into the languages of all countries in which the organization has employees and reviewed locally for accuracy. - Equips employees to respond to real situations. It should reflect the specific and unique challenges of the particular organization's industry and its locations. 3. Adopt the code formally and communicate it to the organization. New employees should be introduced to the code of conduct during orientation. An introduction is more than distributing a copy of the code. Key points should be reviewed and employees' understanding confirmed. 4. Monitor enforcement. This may include auditing for the presence and effectiveness of bodies and processes described in the code (e.g., reporting channels, panels, outcomes). Inconsistent enforcement can have legal consequences for the organization. 5. Evaluate and revise the code periodically. Changes in the organization and its external environment (e.g., new laws and regulations requiring compliance) may require changes to the code. The revised code should be reviewed and reintroduced to employees.

QUIZ SCENARIO: A company with a specialty product that has gained rapid popularity with hospitals has grown quickly from 15 employees to 300 in a one-year period. The organization expects to continue to grow by several hundred employees per year for the foreseeable future. The president's secretary has been handling all human resources matters, and the accounting department has been handling payroll. The supervisors have been making their own human resources decisions regarding recruitment, employee relations, discipline, and rewards, with various levels of success. The president pays little attention to the day-to-day operations of the business and focuses his attention on marketing and publicity. He decides that it is now necessary to hire an HR director to lead and manage the HR function. The supervisors are resistant to having a formal HR function in the company, believing that it will create unnecessary work and affect their ability to effectively manage the organization. During the interview process, the president indicates that there are a number of areas in need of focused attention, as the organization does not have job descriptions or a formal compensation structure and benefits are the same as when the company started. On the HR director's first day, there is no formal onboarding process. The president suggests that a good starting point for the HR director is to create a plan and catch up on the recruiting requests for the growing company. He then walks the HR director to her new office, offers to help with any questions, and walks away. 1. In order for the HR director to effectively develop relationships, which action should she take first? A. Meeting colleagues by proactively walking around to introduce herself and her role B. Getting accustomed to the work environment by sitting back and observing C. Asking the president for detailed guidance D. Creating an onboarding plan to use for the next new hire 2. The HR director understands the need to develop and implement an effective strategic plan. What should be her first step in developing the plan? A. Developing a recruiting plan, as that is the most pressing need as indicated by the president B. Developing HR measures and metrics to evaluate the effectiveness of the HR function and the recently implemented programs C. Talking to senior leaders, long-time managers, and other key stakeholders to get an overall understanding of the company D. Conducting a SWOT analysis of the current HR function and then understanding the organization's mission, culture, value, and ethics 3. The HR director wants to determine if the current recruitment efforts are effective. Which action should she take first to best make this determination? A. Computing the compa-ratio for both individuals and business units B. Analyzing the promotion pattern and key talent retention C. Evaluating the absence rate and vacancy costs D. Calculating the cost per hire and average time to fill 4. Building integrity with the management team is going to be vital in implementing HR policies and procedures. Which action should the HR director take to build credibility with the manager A. Discussing with the president her concerns that the supervisors are not embracing the HR function B. Waiting for each department head to approach her with questions or concerns C. Scheduling one-on-one meetings with each department head to understand his or her business priorities and obstacles D. Designing a new requisition form, mandating its use to begin the recruiting process

1. Meeting colleagues by proactively walking around to introduce herself and her role *Considering that the company has not had a formal HR presence in the past, the HR director will need to establish credibility and trust at a very early stage so the employees understand that HR is there to help the business by helping them. It is important that the employees know who the new leader is so they can start accessing HR immediately, and it is important that the HR director begin to learn the names, faces, and positions of the employees in the company. 2. Talking to senior leaders, long-time managers, and other key stakeholders to get an overall understanding of the company *The first step in developing a strategic plan for HR is to understand the big picture. By talking to senior leadership and long-time employees, the HR director can develop an understanding of the company's culture, values, and ethics. The president's secretary can assist by providing critical information on how the HR function has been working in the past and what some of the critical elements have been. 3. Calculating the cost per hire and average time to fill *Cost per hire helps track the total cost of hiring for each position. Average time to fill is a common metric that measures HR's effectiveness by looking at how long a position is open until HR can fill the position with an acceptance of an offer. 4. Scheduling one-on-one meetings with each department head to understand his or her business priorities and obstacles *Taking time to understand the roles of each function within the organization before making radical organizational changes will show the department heads that HR is available to help them in any way possible. This one-on-one time provides the HR director with an opportunity to present customized solutions to each department head based on that department's greatest needs. This approach is collaborative, which builds strong relationships, instead of authoritative, which can create hostility.

QUIZ: The administrative assistant to the vice president of operations confides in the HR manager that the VP has been making inappropriate advances that have been getting progressively more forward and aggressive. This has made the administrative assistant uncomfortable, and now she wants to find a new position in the organization. The administrative assistant and the HR manager are long-time personal friends, and this information is shared with the HR manager outside of the work environment, on personal time. While the HR manager informs the administrative assistant that she should bring a formal complaint, the administrative assistant is very clear that she is sharing this information as a friend. She does not want to file a formal complaint out of fear of retaliation. Instead, she asks the HR manager to help her find a new role so that she can quietly leave her current position without creating trouble for the VP, the organization, or herself. 1. What action should the HR manager take in response to hearing about this harassment? A. Confront the VP of operations directly with the allegations and demand an explanation as to why he has behaved inappropriately. B. Respect the friendship with the administrative assistant, honor the request for privacy on the issue, and not take any action in response to the complaint. C. Have a follow-up discussion with the administrative assistant reassuring her of protection against retaliation and urging her to formally complain of the behavior. D. Notify the VP of HR of the allegations so that a formal investigation can begin of these allegations of harassment. 2. The VP of operations has been identified as one of the top two possibilities to succeed the current CEO. The VP of HR receives a letter from the attorney of a different employee that charges the VP of operations and the organization with unlawful harassment. Which is the best first course of action the HR VP should take? A. Notify the CEO and the organization's attorney, asking to meet to determine appropriate next steps. B. Initiate the investigation by gathering all the facts about the unlawful harassment claim. C. Independently speak to the VP of operations and ask if there is any merit to the claim of unlawful harassment. D. Terminate the VP of operations' employment immediately in order to mitigate any further risks.

1. Notify the VP of HR of the allegations so that a formal investigation can begin of these allegations of harassment. *This is a very delicate situation for an HR manager, who must fulfill a duty to the organization. Respecting friendship and honoring other's requests are serious considerations. However, if ignored, claims of harassment put the organization in a precarious position, with potential liability. Given that the allegations are being made against a senior management employee, it is important for the HR manager to escalate this issue to a more senior HR leader to determine the best way to proceed. Furthermore, since the HR manager has a long-standing personal friendship with the employee making the harassment claim, it is probably best for another HR person to step in for the investigation so as to fend off any perception of HR bias. 2. Notify the CEO and the organization's attorney, asking to meet to determine appropriate next steps. *The VP of operations plays a critical role in the organization and has been identified as a potential successor to the CEO. Given that this is the second time sexual harassment allegations have been made against him and that this time there's a threat of a lawsuit, it is important to notify the CEO and corporate counsel.

Peter Salovey and John D. Mayer define four branches of emotional intelligence:

1. Perceiving emotion. -Identifying and evaluating emotions in oneself and others. For example, the emotionally intelligent person is in tune with emotional shifts in a room during an organizational meeting. 2. Using emotion to facilitate thought. -Capitalizing on feelings to promote and inform decision making, problem solving, and other cognitive activities. The emotionally intelligent person can use changes in mood, for example, as an opportunity to approach a decision from multiple viewpoints. 3. Understanding emotion. -Interpreting complex emotions and understanding their causes. The emotionally intelligent person, for example, can predict how employees' emotions are likely to evolve following the announcement of structural changes to the organization. 4. Regulating emotion. -Tracking and managing one's own and others' emotions. For example, the emotionally intelligent person can detach from feeling angry about a particular problem if anger has proven limiting in helping to solve the problem.

QUIZ SCENARIO: A recently promoted HR manager is transferred to a remote facility, due to several complaints of inappropriate behavior and favoritism between the plant manager and the former HR manager. The complaints range from allegations of an affair between the two to poor performance and stealing company property. The head office leaders are highly sensitive to creating an ethical culture and have asked that the new HR manager report back on any discovered issues with the plant manager. This makes the HR manager uncomfortable, because she is trying her best to balance developing a relationship with the plant manager with trying to complete the investigation. The new HR manager begins an investigation and learns that the plant manager believes two female employees in the accounting department reported the theft and the affair. When the HR manager speaks with these employees, they share the belief that they are being retaliated against. Although they were rated as above-average performers, they have been given only minimal wage increases. The investigation identified theft of a number of items by the plant manager. The items are not expensive, but their value is not minor. Additionally, it was learned that the plant manager is actively undermining the new HR manager's authority by telling all managers to ignore any HR recommendations. 1. What action should the HR manager take in regard to the theft of the items by the plant manager? A. Report this offense to head office leaders. B. Ask the plant manager to return the items. C. Immediately terminate the plant manager. D. Ignore the incident given the low value of the stolen items. 2. The HR manager studies the performance reviews and wage increases for all employees and finds inconsistencies that support the accounting employees' claims of retaliation. Given the HR manager's knowledge of the plant manager's behavior, what is the appropriate next step for the HR manager to take? A. Talk to the plant manager and recommend an immediate adjustment to the wages of the two people affected to avoid further problems. B. Given the more serious issues with the plant manager, choose to treat the complaint as a lower priority and not deal with it immediately. C. Inform the plant manager of the allegations and ask him to meet with HR and the employees to respond their statements D. Review the process for setting wage increases for the accounting department with the company's controller. 3. What steps should the HR manager take to address the direction by the plant manager to ignore HR's recommendations? A. Advise the head office that she is being retaliated against by the plant manager because of the investigation. B. Call corporate immediately, advising them of the situation; then follow the recommendations that they provide. C. Further investigate the statements to determine the full context of the situation before taking action. D. Document the conversation and file it in case it is needed in the future.

1. Report this offense to head office leaders. *An ethical culture does not condone theft of any amount. The corporate head office has rightfully asked the HR manager to report issues to them as they arise. 2. Review the process for setting wage increases for the accounting department with the company's controller. *The HR manager is conducting a fact-based investigation to determine if there is validity to the claim before taking any action. 3. Further investigate the statements to determine the full context of the situation before taking action *The HR manager needs to understand the extent of the problem before deciding on next steps. It is possible that there is a legitimate concern about HR's performance.

Daniel Goleman popularized the concept of an emotional intelligence quotient (EIQ) and describes five components:

1. Self-awareness. -Becoming more aware of one's own emotions and needs and their effect on work relationships. Goleman's example is the manager who knows he becomes short-tempered under deadline stress. 2. Self-regulation. -Learning to control and accommodate one's emotions. The manager who has trouble dealing with deadline stress can manage schedules and work plans to minimize those stresses. 3. Motivation. -A passion for the job or current objective. Goleman explains that the drive to succeed, resilience, and optimism are all part of this component. 4. Empathy. -Moving from self-awareness to awareness and acceptance of the importance and legitimacy of others' emotions. This is a critical quality for team building, coaching, and mentoring. In a diverse organization, where one person's emotional response may at first be inexplicable to someone with a very different background, this is a critical skill. 5. Social skills. -The ability to create connections or rapport with others. This ability has been called social intelligence. Social intelligence entails seeing and interpreting the impact of one's behavior on others and altering behavior to increase other people's level of comfort and trust. People with social intelligence understand the "rules" of particular social contexts, such as the workplace, the relationships attached to these contexts, and expected behaviors. They can shift roles in different contexts and with different people, but without falseness. An example is a manager who can shift easily from talking to a work-focused engineer who needs help getting resources for a project to asking a young new hire about his or her holiday plans. Social intelligence supports critical activities, such as forming teams, persuading and influencing, or leading change.

QUIZ SCENARIO: While applying for a job on a computer in a company's employment office, an applicant made a statement to an office staff member that there was a sticky substance on the keyboard. Later that day during an on-site interview, the same applicant complained that a rash emerged on his fingers from the sticky substance. At the end of the day, the applicant was not hired because the background screening process revealed criminal charges two years ago. Instead, the hiring manager selected a different applicant who more closely matched the needs of the position and passed the background screen. Before leaving for the day, the applicant who was not hired filed a grievance with the HR manager claiming he had not been hired because he complained during the interview of an unknown substance causing a rash on his fingers. Upon investigation, the sticky substance was identified from the observation camera to be strawberry jelly from the applicant's sandwich eaten at the desk just prior to completing the application. 1. What should the HR manager do first to address the applicant's filed grievance? A. Forward the grievance to the hiring manager who made the decision not to hire the applicant. B. Inspect the keyboard with the risk manager, collecting a sample of the sticky substance for further analysis. C. Tell the applicant his sandwich left the sticky substance on the keyboard and his complaint did not impact the hiring decision. D. Suggest that the applicant reapply for the position when the rash has cleared up. 2. After the sticky substance has been identified as jelly from the applicant's sandwich, which action should the HR manager take to prevent a recurrence of this situation? A. Clean and visually inspect each workstation prior to applicant use. B. File an ISO 31000 risk management report. C. Post a sign prohibiting all applicants from eating at the workstations. D. Have a risk management officer attend and monitor the application and interview process. 3. The hiring manager asks for guidance in the event an applicant challenges the results of the background screening process in the future. What should the HR manager advise the hiring manager to do if such a challenge occurs? A. Evaluate the business risk associated with hiring someone with the applicant's background screen results. B. Ask the company's legal counsel to respond to the applicant's challenge of the background screen results. C. Present the background screen results to senior management, asking them to make the final hiring decision. D. Give the applicant a copy of the results of the background screen and allow time for the applicant to provide a response.

1. Tell the applicant his sandwich left the sticky substance on the keyboard and his complaint did not impact the hiring decision. *The HR manager is demonstrating the Critical Evaluation competency, because the sticky substance has been identified and determined to be a result of the applicant's jelly sandwich. The HR manager is communicating the findings of the investigation to the candidate. 2. Post a sign prohibiting all applicants from eating at the workstations. *It demonstrates the Consultation competency by determining the best practical way to avoid the situation in the future 3. Give the applicant a copy of the results of the background screen and allow time for the applicant to provide a response. *This demonstrates the Critical Evaluation competency by providing a job-related reason to support the decision of not hiring the candidate.

QUIZ: Which is the difference between the formal and informal characteristics of an organization? 1. Formal characteristics focus on the role of the leader, informal characteristics on work teams. 2. Formal characteristics are documented and change less frequently than informal characteristics. 3. Formal characteristics can be felt, and informal characteristics can be seen. 4. Formal characteristics are better indicators of an organization's efficiency and effectiveness.

Formal characteristics are documented and change less frequently than informal characteristics. *The formal characteristics of an organization are expressed in some documented form, such as a handbook or organizational chart. Informal characteristics describe the nature of relationships in the organization, how people interact and communicate. Perhaps because they are not documented, informal characteristics may change more frequently than formal characteristics.

QUIZ: Under deadline pressure, a global team leader grows angry with workers from one region, resorting to threats and accusations. Realizing that her behavior is counterproductive, she apologizes and sets up a meeting to determine the source of the delays and how she can best help. Which critical ability has she acquired and applied? 1. Cognitive aspect of intercultural wisdom 2. Self-regulation component of emotional intelligence 3. Motivational component of intercultural wisdom 4. Multidimensional perspective of a global mindset

Self-regulation component of emotional intelligence *Self-regulation enables the team leader to control her own emotions. That is the critical problem here. The cognitive skills of intercultural wisdom, a multidimensional perspective of a global mindset, and the positive motivation of intercultural wisdom may all help her better understand the perspective of the workers' region, but controlling her own emotions is a critical first step.

QUIZ: According to the Hersey-Blanchard theory, which is generally the most suitable situational leadership approach for entry-level employees? 1. Delegating 2. Participating 3. Selling 4. Telling

Telling *The telling leadership style prioritizes the task (providing direction) over the relationship (creating motivation). Entry-level employees require leadership that provides structure to project scheduling, methodologies, procedures, etc. When the new employee gains proficiency, the leader can begin to focus on "selling" or motivating. Because the new employee does not possess sufficient experience or insight into best practices, he or she cannot adequately participate in joint problem solving or decision making, which would characterize the participating and delegating approaches.

QUIZ: An HR professional is new to his organization and wants to understand better how to gain credibility in the organization. What activity would help the most? 1. Studying the organization's published statement of values 2. Talking to HR peers at professional meetings about what works in their organizations 3. Interviewing people in HR management positions 4. Watching how people react to other team members in team discussions

Watching how people react to other team members in team discussions *A person's social status in an organization may be observed in how others listen and respond to what he or she says. Seeing the types of people who earn respect in the organization, the new HR professional can work to imitate their actions. Ideally, the formal aspects of the organization, such as values statements, would be good indicators, but the formal and informal aspects of organizations are not always aligned. Informal discussions are a good idea, but a formal interview with HR managers may not provide perspective from all parts of the function. The informal aspects of an organization, such as the characteristics that make someone respected and trusted, may vary from one organization to the next.