BUAD Exam 3

Charismatic leadership:

a type of authority where followers attribute heroic or extraordinary leadership abilities when they observe certain behaviors. Characteristics of charismatic leaders: They have a vision for a better future They are willing to take personal risks to achieve that vision They are sensitive to follower needs They exhibit "extraordinary" behaviors Born as charismatic leaders Charismatic leadership is associated with higher profit, individual performance levels and greater follower satisfaction. People are more motivated to exert greater effort because they like and respect their leader

Positive Organizational Culture

emphasizes building on employee strengths rewards more than it punishes, and encourages individual vitality and growth

functional vs dysfunctional conflict

functional - a constructive form of conflict that supports the goals of the group and improves its performance dysfunctional- conflict that hinders group performance

Participative leader behavior

involves leaders consulting with followers and asking for their suggestions before making a decision. This behavior is predominant when subordinates are highly personally involved in their work.

Supportive leader behavior

is directed towards the satisfaction of subordinates needs and preferences. The leader shows concern for the followers' psychological well-being. This behavior is especially needed in situations in which tasks or relationships are psychologically or physically distressing.

Directive leader behavior

refers to situations where the leader lets followers know what is expected of them and tells them how to perform their tasks. The theory argues that this behavior has the most positive effect when the employees' role and task demands are ambiguous and intrinsically satisfying.

Achievement-oriented leader behavior

refers to situations where the leader sets challenging goals for followers, expects them to perform at their highest level, and shows confidence in their ability to meet this expectation.

Contingency Theories

suggest that different types of leadership styles works in different types of situations

Attribution theory of leadership

suggests whats important is projecting the appearance of being a leader rather than focusing on actual accomplishments says leadership is merely an attribution people make about other individuals. We attribute the following to leaders: intelligence, outgoing personality, strong verbal skills, aggressiveness, understanding, industriousness

Hersey and Blanchard's Situational Leadership Theory (SLT)

Argues that successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers' readiness Acceptance: leadership effectiveness depends on whether followers accept or reject a leader Readiness: the extent to which followers have the ability and willingness to accomplish a specific task These two dimensions are combined to establish the maturity levels of followers.

Civility Training

As human resource managers have become increasingly aware of the effects of social behavior in the workplace, they have paid more attention to the problems of incivility, bullying, and abusive supervision in organizations. Workplace harassment training

Assessment centers

Assessment centers use a more elaborate set of performance simulation tests, specifically designed to evaluate a candidate's managerial potential. Assessment centers have consistently demonstrated results that predict later job performance in managerial positions. Example tasks include in-basket simulation; role playing. Assessment centers are expensive and time consuming; many organizations use them for promotion rather than selection.

Authentic Leadership

Authentic leaders are genuine - They are true to themselves; they feel at home in their own skin, and aren't afraid to let others see them as they are, including whatever shortcomings they may have. Authentic leaders have found their purpose in life - they find meaning in their work and other life activities, and have a clear basis for making the decisions and choices they make. Their personal and career goals are in alignment with their true nature. Authentic leaders lead their organization with purpose and vision - they are not in business for purely financial reasons; rather, they and their organization exist to provide a service to society. Their vision comes first, and they set goals to achieve that vision.

Trait Theories

Later research that most of the traits identified in earlier research fit under one of the Big Five dimensions. Extraversion most important trait of effective leaders Conscientiousness and openness to experience also showed strong relationships to leadership Overall, the trait approach has some validity. Leaders who like being around people and who are assertive (extraverted), who are disciplined and keep commitments (conscientious) and who are creative and flexible (open to experience) tend to have an advantage in regards to leadership. Emotional Intelligence may also play a role in leadership A person who can sense others' needs, listen, and accurately read the reactions of others is more likely to emerge as a leader.

Who Are Leaders and What Is Leadership

Leader - Someone who can influence others and who has managerial authority. Leadership - What leaders do; the ability to influence a group toward the achievement of a vision or set of goals. Ideally, all managers should be leaders. We need leaders to create visions of the future, challenge the status quo and inspire employees to achieve vision/goals.

When all three are high, the leader is said to have a great deal of control:

Leader-member relations - the degree of confidence, trust, and respect members have in their leader Task structure - degree to which job assignments are procedurized (high versus low structure) Position power - degree of influence a leader has over power variables (hiring, firing, discipline, salary increases, etc.)

Transactional Leaders:

Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements (trait, behavior, and contingency theories discussed earlier). The best leaders are transactional and transformational - they possess qualities of both.

Transformational Leadership:

Leaders who inspire followers to transcend their own self-interests and who are capable of having a profound and extraordinary effect on followers. People will follow a person who inspires them. A person with vision and passion can achieve great things. The way to get things done is by injecting enthusiasm and energy. Some transformational leaders are charismatic leaders, but succeed through their belief in others rather than their belief in themselves (less narcissistic). more effective than transactional

Ethical and Unethical Leaders

Leaders who treat followers with fairness, provide, frequent, honest, and accurate information are seen as more effective; these are critical dimensions of ethical behavior. An unethical leader: Leads with a bad attitude. Lies to followers and peers. Takes advantage of people. Takes personal credit for group accomplishments. Uses politics to gain power in an amoral manner. Does not focus on the common good of the organization. Does not support followers. Displays a "double tongued" behavior. Sacrifices followers for personal gain. Fails to model the way for followers.

Power and Influence Tactics

Legitimacy - using authority, policy, or rules e.g., you cannot drop this class because it is past the drop date *Rational Persuasion - presenting logical arguments and factual evidence to demonstrate that a request is reasonable. e.g., We should invest 75% of our marketing resources in web marketing because data shows that key competitors are having significant success using that strategy (show graphs, statistics, etc.) *Inspirational Appeals - developing emotional commitment by appealing to a target's needs, values, hopes, and aspirations. e.g., football coach appealing to a team' to exert maximum effort in order to fulfill their desire to win a super bowl *Consultation - Involving the target of persuasion in the plan to increase support. e.g., participative decision making Exchange - rewarding the target with benefits or favors for complying with a request. e.g., promising to cover for a colleague during their vacation, if they will do the same for you Personal Appeals - asking for compliance based on friendship or loyalty. e.g., Leader-Member Exchange theory - leader expects in-group member to comply due to the special relationship between leader and employee Ingratiating - using flattery, praise, or friendly behavior prior to making a request ("buttering up"). e.g., telling a professor how much you like their class before asking for extra points on an exam Pressure - using warnings, repeated demands and threats to attain compliance e.g., berating an employee and threatening to dismiss them if they continue to come into work late Coalitions - enlisting the aid or support of others to persuade the target to comply. Employee work group schedules a meeting with the manager to request flexible work schedules

Contingent Selection

Make final check before making offer to applicants like drug tests background check Common contingent method is a drug test. Mandated in the transportation industry. Background checks - most companies now conduct background checks and verify education provided on the resume.

Maturity Levels of Situational Leadership Theory

Maturity 1 - People at this level do not have the knowledge or skills to do a task on their own. They need to be encouraged and told to do the job. Maturity 2 - People here want to do the job, but haven't learned the skills necessary to do the job. Maturity 3 - People at this level want to do the job, have more skills than the M2 level, but can't quite do it on their own. Maturity 4 - People at this level have the knowledge and skills to work on their own without any supervision.

Negotiation

Negotiation is a "process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them."

Organizational Culture

Organizational Culture - The shared values, principles, traditions, and ways of doing things that influence the way organizational members act.

Organizational climate

Organizational climate is a dimension of organizational culture Climate refers to the shared perceptions (good or bad) that organizational members have about their organization and work environment. It is how you "experience and feel about" the culture. Organizational climate can be clearly identified with the perceptions of individuals regarding the quality and characteristics of the organizational culture. Specific organizational climates exist - e.g., diversity climate, safety climate, fairness climate, climate for abuse. Psychological climate has been found to be associated with: Job satisfaction Employee involvement and commitment Motivation Customer satisfaction Financial performance

Performance Simulation Tests

Performance-simulation tests have higher face validity and their popularity has increased. Work sampling tests Hands-on simulations of part or all of the job that must be performed by applicants. Used mostly to hire skilled labor (welders, electricians, etc.)

Which Bases of Power Are Most Effective?

Personal sources are most effective. Both expert and referent power are positively related to employees' satisfaction with supervision, their organizational commitment, and their performance, whereas reward and legitimate power seem to be unrelated to these outcomes. Coercive power usually backfires because it is associated with lower employee satisfaction and commitment. Individuals in positions of power tend to be blamed for their failures and credited for their successes to a greater degree than those who have less power (e.g., quarterbacks).

360-Degree Evaluation

Potential problems: Bias (peer evaluation) Inadequate opportunity to observe behavior Fear of retribution (employees rating managers) Disagreement between rater groups Interpreting and feeding back results

What is Power?

Power refers to a capacity that A has to influence the behavior of B, so that B acts in accordance with A's wishes. Power may exist but not be used. Probably the most important aspect of power is that it is a function of dependency. The greater the dependence of B on A, the more power A has. A person can have power over you only if he or she controls something you desire. e.g., your manager may have the power to help you achieve a promotion, but if that is not something you want, there is no power; if there is another avenue for you to achieve the promotion, power is also diminished.

Fielder Contingency Model

Proposes that group performance depends on the proper match between the leaders style and the degree to which the situation gives the leader control

Some tactics are more effective than others.

Rational persuasion, inspirational appeals, and consultation are most effective when the audience is highly interested in the outcomes. Rational persuasion is the only influence tactic that is effective at all organizational levels Inspirational appeals works best when influencing downward Pressure is least effective and tends to backfire.

Roles and Functions of Third-Party Negotiations

When individuals or group representatives reach a stalemate and are unable to resolve their differences through direct negotiations, they may turn to a third party. Mediator - neutral third party who facilitates a negotiated solution by using reasoning and persuasion and suggesting alternatives; used widely in labor-management negotiations. Arbitrator - third party with the authority to dictate and agreement (binding arbitration); always results in an agreement. Conciliator - provides an informal communication link between parties; engage in fact-finding, interpret messages, and persuade parties to develop agreements.

Leader-member exchange (LMX) Theory

The leader-member exchange theory of leadership focuses on the two-way relationship (dyadic relationships) between supervisors and subordinates. Leader-member exchange focuses on increasing organizational success by creating positive relations between the leader and subordinate. Leaders usually have special relationships with an inner circle of assistants and advisors, who often get high levels of responsibility and access to resources. This is called the "in-group," Employees in the "out-group" are given low levels of choice or influence

The General Dependency Postulate

The most important aspect of power is that it is a function of dependence. The General Dependency Postulate The greater B's dependence on A, the more power A has over B. When you possess anything that others require but that you alone control, you make them dependent upon you and, therefore, you gain power over them. Dependency, then, is inversely proportional to the alternative sources of supply. The more you can expand your options, the less power you place in others' hands.

purpose of organizational culture

The purposes of organizational culture Creates a distinction between organizations; shows how organizations differ from one another Creates a sense of identity for employees Facilitates commitment to the organization and reduces focus on self-interest Enhances the stability of the social system within an organization through enhancing consistency Shapes attitudes and provides standards for the employees with respect to acceptable behavior Culture can serve as a replacement for formal rules and regulations. The stronger the culture the less need for strict guidelines for behavior.

Situational Judgment Tests (Behavioral Interviews)

To reduce the costs of job simulations, many organizations have started to use situational judgment tests, which ask applicants how they would perform in a variety of job situations and compare their answers to those of high-performing employees. Case studies/Team problem solving exercises

Behavioral Theories

Trait theories imply that we need to select the right people for leadership positions. Behavioral theories suggest that we can train people to be leaders.

Written Tests

Typical written tests are tests of intelligence, aptitude, ability, interest, integrity, personality tests. The evidence is impressive that these tests are good predictors. Use of personality tests has increased (e.g., Big Five, emotional intelligence, but people need to be trained to appropriately interpret and apply results

Show how managers can improve performance evaluations

Use Multiple Evaluators -- increases reliability; improves acceptance of feedback Evaluate Selectively - raters should have ample opportunity to observe performance Train Evaluators - avoid errors (e.g., halo) Make sure performance standards are clear and well-defined Provide Employees with Due Process (Procedural Justice) Providing Performance Feedback Managers are often uncomfortable discussing weaknesses with employees. In fact, unless pressured by organizational policies and controls, managers are likely to ignore this responsibility. The solution to the problem is not to ignore it but to train managers to conduct constructive feedback sessions.

Initial Selection

Used for preliminary "rough cuts" to decide whether the applicants meets the basic qualifications for the job like applications and background checks

Substantive Selection

Used to determine the most qualified applicants from among those who meet basic qualifications Such as: Written tests Performance simulations Assessment centers Situational judgment tests Interviews

Mission Statement

What a company is doing now Describes the company's overall purpose and measures of success Communication intended for leadership teams and stockholders Nike Mission Statement- To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.

The Organizational Culture Assessment Instrument (OCAI) measures six dimensions of the organization:

1. Dominant Characteristics 2. Organizational Leadership 3. Management of Employees 4. Organization Glue 5. Strategic Emphases 6. Criteria for Success

4 Culture types

A = Clan B = Adhocracy C = Market D = Hierarchy

The Adhocracy Culture (B)

A dynamic, entrepreneurial, and creative place to work. People stick out their necks and take risks. The leaders are considered innovators and risk takers. The glue that holds the organization together is commitment to experimentation and innovation. The emphasis is on being on the leading edge. Success means gaining unique and new products or services. Being a product or service leader is important. The organization encourages individual initiative and freedom. Leader Type: innovator, entrepreneur, visionary. Value Drivers: innovative outputs, transformation, agility. Theory for Effectiveness: innovativeness, vision and new resources produce effectiveness. Quality Strategies: surprise and delight, creating new standards, anticipating needs, continuous improvement, finding creative solutions

A Definition and Review of Conflict

A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. In sum: The traditional view was shortsighted in assuming that all conflict should be eliminated. The interactionist view that conflict can stimulate active discussion without causing relationship conflict is incomplete. The resolution-focused view is more proactive and focuses on managing conflict and helping people effectively resolve conflicts to minimize the disruptive influence of conflict.

The Market Culture (C)

A result-oriented organization whose major concern is getting the job done. People are competitive and goal-oriented. The leaders are hard drivers, producers, and competitors; they are tough and demanding. The glue that holds the organization together is an emphasis on winning. Reputation and success are common concerns. Success is defined in terms of market share and penetration. The organizational style is hard-driving competitiveness. Leader Type: hard driver, competitor, producer. Value Drivers: market share, goal achievement, profitability Theory for Effectiveness: aggressive competition and customer focus produce effectiveness. Quality Strategies: measuring customer preferences, improving productivity, creating external partnerships, enhancing competitiveness, involving customers and suppliers.

The Hierarchy Culture (D)

A very formalized and structured place to work. Procedures govern what people do. Leaders pride themselves on being good coordinators and organizers who are efficiency-minded. Maintaining a smooth-running organization is most critical. Formal rules and policies hold the organization together. Success is defined in terms of dependable delivery, smooth scheduling and low cost. The management of employees is concerned with secure employment and predictability. Leader Type: coordinator, monitor, organizer. Value Drivers: efficiency, punctuality, consistency and uniformity. Theory for Effectiveness: control and efficiency with appropriate processes produce effectiveness. Quality Strategies: error detection, measurement, process control, systematic problem solving, quality tools

The Clan Culture (A)

A very pleasant place to work, where people share a lot of personal information Leaders of the organization are seen as mentors and perhaps even parent figures. Commitment is high. Organization attaches great importance to cohesion and morale. Success is defined in terms of sensitivity to customers and concern for people The organization places a premium on teamwork, participation, and consensus. Leader Type: facilitator, mentor, team builder. Value Drivers: commitment, communication, development. Theory for Effectiveness: human development and participation produce effectiveness. Quality Strategies: empowerment, team building, employee involvement, Human Resource development, open communication

Types of Training There are four general skill categories for training: 1.Basic literacy skills 2. Technical skills 3. Interpersonal skills 4. Problem solving skills Other types of training include civility and ethics training

Basic Literacy Skills High school graduates lack basic skills in reading comprehension, writing, and math. As work has become more sophisticated, the need for these basic skills has grown significantly. It's a worldwide problem—from the most developed countries to the least. Technical Skills Technical training is important for two reasons—new technology and new structural designs. As organizations flatten their structures, expand their use of teams, and break down traditional departmental barriers, employees need mastery of a wider variety of tasks and increased knowledge of how their organization operates. Problem-Solving Skills Problem-solving training for managers and other employees can include activities to sharpen their logic, reasoning, and problem defining skills as well as their abilities to assess causation, develop and analyze alternatives, and select solutions. Interpersonal Skills These skills include how to be a better listener, how to communicate ideas more clearly, and how to be a more effective team player. A few examples of programs that many companies use are conflict resolution, negotiation, leadership training, dealing with difficult people, building client relationships, internal/external consulting skills, communication skills, decision making.

Benefits from developing strong and productive cultures:

Better aligning the company towards achieving its vision, mission, and goals High employee motivation and loyalty Increased team cohesiveness among the company's various departments and divisions Promoting consistency and encouraging coordination and control within the company Shaping employee behavior at work, enabling the organization to be more efficient Creates a stronger employee commitment to the organization Aids in the recruitment and socialization of new employees Fosters higher organizational performance by instilling and promoting employee initiative

Characteristics of an innovative culture:

Challenge and involvement - commitment to long-term goals of the company Freedom (autonomy) to design and execute tasks Trust and openness - mutual respect and support among employees Idea time - time to let ideas "percolate" before taking action (reduced time stress) Playfulness/humor - fun workplace Conflict resolution - making decisions that are in the best interests of the company rather than self-interest Debates - freedom to express opinions without harsh criticism Risk-taking - tolerance for risk taking and reward for taking risks

Interviews

Continues to be the most frequently used. It carries a great deal of weight. The candidate who performs poorly in the employment interview is likely to be cut, regardless of his/her experience, test scores, or letters of recommendation, and vice versa. Structured versus unstructured interviews

How Transformational Leadership works:

Creativity - leaders are more creative and encourage followers to be creative. Decentralization of responsibility. Managers show greater propensity to take risks (encourages entrepreneurship) Compensation is geared toward long-term results. Greater agreement among top managers about the organization's goals. Increase follower self-efficacy, giving the group a "can do" spirit. Transformational leadership positively impacts performance of individuals and teams. Transformational leadership is associated with lower turnover, better performance, lower employee stress, and higher levels of job satisfaction

Three important aspects of culture:

Culture is "perceived" based on what people experience within an organization. Organizational culture is descriptive; it is concerned with how employees perceive the culture and the terms that they use to describe it. It is shared; all employees describe the culture in similar terms, regardless of organizational level or personal background.

What Creates Dependency?

Dependence increases when the resources(s) you control are important, scarce, and non-substitutable. e.g., if this were the only section of BUAD 309 and you need it to graduate, this class would be important to you, scarce, and non-substitutable. Importance - a resource is important when it is critical to the success of the company (e.g., marketing in a consumer products company, engineers and IT professionals in a tech company) Scarcity - when a resource is scarce, we are more dependent on that resource (e.g., when labor supply for a specific occupational group is low, it creates a higher demand giving job seekers in that occupation more power) Nonsubstitutability - when viable substitutes for a resource are few, the people with power over that resource is high (e.g., fossil fuels)

Differences between Leadership and Power:

Differences between Leadership and Power: Goal compatibility Power does not require goal compatibility, merely dependence Leadership requires some congruence between the goals of the leader and those being led The direction of influence Leadership focuses on the downward influence on one's followers. Power recognizes the importance of lateral and upward influence; leadership does not Style versus tactics Leadership emphasizes style (consideration; decision making strategy) while power focuses on tactics for gaining compliance

Distributive Bargaining

Distributive Bargaining - operates under zero-sum conditions Any gain that I make is at your expense and vice-versa Negotiating over who gets what share of a set amount of goods or services to be divided up (fixed pie) E.g. Labor-management negotiations over wages Each side in a distributive bargaining situation has a target point (the desired outcome) and a resistance point (lowest acceptable outcome). The area between these two points is the aspiration range. When engaged in distributive bargaining, research consistently shows one of the best things you can do is make the first offer, and make it an aggressive one. By providing the "anchor" you can get the other party to fixate on the original information; this strategy favors the person that sets the anchor. Another distributive bargaining tactic is revealing a deadline. Deadlines put pressure on the other party to made a decision and appears to work by getting the other party to reconsider their position.

5 Sources of power Coercive Reward Legitimate Expert Referent

Formal Power - power based on an individual's position in the company. 1. Coercive Power - ability to punish (e.g., terminate, demote, assign unpleasant work, withhold key information) 2. Reward Power - ability to provide valuable outcomes (e.g., raises, bonuses, recognition, interesting work assignments, better shifts, territories) 3. Legitimate Power - formal authority to control and use organizational resources based on position in the company; broader than coercive and reward power; includes member acceptance of the authority of the position (e.g., CEOs, Presidents, Military Officers) Personal Power - based on an individual's unique characteristics. 4. Expert Power - based on one's specialized skills, knowledge and expertise (doctors, lawyers, accountants, IT specialists, etc.) 5. Referent Power - based on identification with someone who has desirable resources or personal traits; People whom we like, respect, and admire have power over us because we want to please them.

Commonly Used Methods of Performance Evaluation

Graphic Ratings Scales - ratings on job-related factors Written Essays - narrative describing employee strengths, weaknesses, past performance, potential, and areas needing improvement (supplements ratings scales) Forced distribution 360 Degree Feedback

How Do You Create a Customer Responsive Culture?

Hire the right type of employees (those with a strong interest in serving customers) Have few rigid rules, procedures, and regulations Use widespread empowerment of employees Have good listening skills in relating to customers' messages Provide role clarity to employees in order to reduce ambiguity and conflict and to increase job satisfaction Have conscientious, caring employees willing to take initiative

Purposes of Performance Evaluation

Human resource decisions. Evaluations identify training and development needs. Pinpoint employee skills and competencies needing development. Criterion for selection and development. Provide feedback to employees.

Least Preferred Coworker questionnaire LPC

Identifies whether a person is task-oriented or relationship oriented by asked responders to think of all the coworkers they ever had and they described the one they least enjoyed working with

Integrative bargaining

In contrast to distributive bargaining, integrative bargaining operates assuming one or more of the possible settlements can create a win-win solution. Both parties must be engaged for it to work. Integrative bargaining, in general, is preferable to distributive bargaining because the former builds long-term relationships. Distributive bargaining, on the other hand, leaves one party a loser resulting in animosity which can make future interactions difficult.

While strong cultures are typically considered to have a positive impact on an organization, there can be some downsides:

Institutionalization - a strong culture can become static when no one questions the status quo; this can stifle innovation ("we've always done it this way, so no reason to consider alternatives."). Barrier to change - may be resistant to adapt to changing conditions in the external environment which can lead to the demise of the organization. Barrier to diversity - because people are encouraged to assimilate to the culture, the advantages of hiring diverse people may not occur (workplace becomes too homogeneous). Barriers to mergers & acquisitions - more and more, potential mergers are being evaluated in terms of cultural similarity.

Vision Statement

Refers to the organizations' key values It tells how this particular company believes things should be done Describes how an organization completes its operations and where the organization is heading Gives direction to employees and customers PepsiCo's Vision Statement - our responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today. Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Servant leadership

Servant leadership provides a different way for examining ethical leadership. Servant leadership is a philosophy rather than a theory. Servant leaders go beyond their self-interest and focus on opportunities for followers to grow and develop. The highest priority of a servant leader is to encourage, support and enable subordinates to develop their abilities and reach their full potential. Characteristic behaviors include: Listening Empathizing Persuading Accepting stewardship Actively developing followers potential

Path-Goal Model

States that the leader's job is to assist his or her followers in attaining their goals and to provide direction or support to ensure that their goals are compatible with those of the organization (clarify path to goals) Leader's job is to provide information, support, and resources necessary for goal achievement

The negotiation process includes five steps: Preparation and planning Definition of ground rules Clarification and justification Bargaining and problem solving Closure and implementation

Step 1: Preparation and Planning Articulate your goals Develop a range of acceptable outcomes Anticipate the other party's position Assess goals of the other party Consider the importance of the relationship in developing your strategy (is preserving the relationship important? Is preserving power important?) Develop your negotiation strategy Determine your and the other party's BATNA (best alternative to a negotiated agreement) BATNA determines the lowest value acceptable for a negotiated agreement Step 2: Definition of Ground Rules Where will the negotiation take place? Who will participate in the negotiation process? Are there time constraints; what are they? What are the issues on the table? What will you do in the case of impasse? (e.g., appeal to a higher authority, use a third-party mediator) Initial proposals and demands are exchanged Step 3: Clarification and Justification Explain and justify initial demands Educate and inform each other on the importance of the issues Explain how you determined initial demands Provide documentation to support your position Step 4: Bargaining and Problem Solving The heart of the negotiation process Give and take discussion in trying to reach agreement Both parties will most likely make concessions Step 5: Closure and Implementation Formalize the agreement worked out Develop procedures for implementing and monitoring the decision May require determining specific contract language

Strong Cultures

Strong Cultures - Organizational cultures in which key values are intensely held and widely shared.

Strong vs Weak Organizational Cultures

Strong Cultures: Values widely shared Consistent message about what is important Employees can tell stories about company history/heroes Employees strongly identify with the culture Strong connection between shared values and behaviors Weak Cultures: Values limited to few people Contradictory messages about what is important Employees have little knowledge of company history/heroes Employees have little identification with the culture Little connection between shared values and behavior

Four Styles of Situational Leadership Theory

Style 1 - Telling - Leaders tell the workers what to do and how to do it. Style 2 - Selling - Leaders still tell the workers what to do, but also sell their idea in order to get them to work along with them. Style 3 - Participating - Leaders build relationships. They work with the people and discuss ways to accomplish the task. Style 4 - Delegating - Leaders give most of the responsibility to the worker and they just monitor the progress.

The Conflict Process

The conflict process has been described as having 5 stages: Conditions that create potential for conflict to occur are present People perceive that conflict exists and there is some negative emotion felt People form an intention to behave Overt behaviors stemming from intentions are observed As a result of the behaviors, some outcome is realized

Kirkpatrick's evaluation model to evaluate training effectiveness

The four levels of Kirkpatrick's evaluation model are as follows: Reaction - what participants thought and felt about the training (satisfaction with training) Learning - the resulting increase in knowledge and/or skills, and change in attitudes. This evaluation occurs during the training in the form of either a knowledge demonstration or test. Behavior - transfer of knowledge, skills, and/or attitudes from classroom to the job (change in job behavior due to training program). Evaluation usually occurs through observation. Results - the final results that occurred because of attendance and participation in a training program (can be monetary, performance-based, etc.); return on investment to the company

Leader-Participation model (Vroom-Yetton Model)

The leader participation model focuses on leadership in the context of decision making. Effective leaders use appropriate strategies for incorporating employees into the decision making process. Vroom and Yetton defined five different decision procedures. Two are autocratic (A1 and A2), two are consultative (C1 and C2) and one is Group based (G2). A1: Leader takes known information and then decides alone. A2: Leader collects information from followers, and then decides alone. C1: Leader shares problem with followers individually, listens to ideas and then decides alone. C2: Leader shares problems with followers as a group, listens to ideas and then decides alone. G2: Leader shares problems with followers as a group and then seeks and accepts consensus agreement.