Groups and Teams: A group is defined as two or more individuals, interacting and interdependent,
who have come together to achieve particular objectives.A group is a set of two or more people who interact with each other to achieve certain goals or meet
certain needs.A team is a formal work group in which there is a high level of interaction among group members who
work intensely together to achieve a common goal. A group whose members work intensely with each other to achieve a specific, common goal or objective is known as Team. All teams are groups but not all groups are teams.– Teams often are difficult to form.
– It takes time for members to learn how to work together.
A group/team is effective when it satisfies three criteria:
o Production output: the product of the group’s work must meet or exceed standards of quality and quantity
o Member satisfaction: membership in the group must provide people with short-term
satisfaction and facilitate their long-term growth and developmento Capacity for continued cooperation: how the group completes a task should maintain or
enhance the group’s ability to work together; groups that don’t cooperate cannot survive Groups versus Teams:
_ All teams are groups
_ Some groups are just people assembled together
_ Teams have task interdependence whereas some groups do not..
Why Do People Join Groups?
• Security
Types of Groups: There are many types of groups in organizations, and each type plays an important
role in determining organizational effectiveness.a. Managers establish formal work groups to help the organization achieve its goals. The goals of a
formal work group are determined by the needs of the organization.b. Informal work groups emerge naturally in organizations because organizational members
perceive that membership in a group will help them achieve their goals or meet their needs.Types of Formal Work Groups. Types include;
Command group: a collection of subordinates who report to the same supervisor.
106 1. Command groups are based on the basic reporting relationships in organizations and are frequently represented on organizational charts as departments. 2. These groups have a profound effect on the extent to which an organization is able to achieve its goals.A task force is a collection of people who come together to accomplish a specific goal. Once the goal
has been accomplished, the task force is usually disbanded. 1. A standing committee or task groups are task forces that may be enduring (though members may change) or permanent in nature.A team is a formal work group in which there is a high level of interaction among group members who
work intensely together to achieve a common group goal. 1. A cross-functional team consists of groups of people from different departments such as engineering, marketing, and finance.Types of Informal Work Groups.
A friendship group is a collection of organizational members who enjoy each other’s company and socialize with each other (often both on and off the job).
Members of an organization form interest groups when they have a common goal or objective (related
to their organizational membership) that they are trying to achieve by uniting their efforts. Group Productivity:
_ Synergy is a biological term referring to an action of two or more substances that result in an effect
_ Process loss is the difference between what is actually produced by a group and what could have
been produced by the group when you consider its inputs (2 + 2 = 3). Characteristics of a Well-Functioning, Effective Group:
o Relaxed, comfortable, informal atmosphere
o Task well understood & accepted
o Members listen well & participate
o People express feelings & ideas
o Conflict & disagreement center around ideas or methods
o Group aware of its operation & function
o Consensus decision making
o Clear assignments made & accepted
Groups’ and Teams’ Contributions to Organizational Effectiveness: Teams:Teams are groups with greater interdependence--shared purpose and destiny. Can be higher performing
than groups, but may not be... Why Have Teams Become So Popular?
• Teams typically outperform individuals.
• Teams are an effective way to increase motivation.
_ Twenty years ago, it made news because no one else was doing it. Today, it is the organization
_ The current popularity of teams seems based on the evidence that teams typically outperform
individuals when the tasks being done require multiple skills, judgment, and experience. 107_ As organizations have restructured, they have turned to teams to better utilize employee talents.
_ The motivational properties of teams = significant factor. The role of employee involvement as a motivator—teams facilitate employee participation in operating decisions. “It’s easy to get players. Gettin’ ‘em to play together, that’s the hard part,.” Casey Stengel
Deciding When to Use a Team:
Always use a team when many perspectives are needed and acceptance of decision is critical and you
Be Cautious About Using a Team When:
o The issue is unimportant
o Individuals don’t want to participate
o Individual risk preferences are too high
o Time is of the essence
o Group norms are unacceptable
Crucial Activities for Team: An employee’s success is no longer defined in terms of individual performance. To perform well as team members, individuals must be able to communicate openly and honestly, to confront differences and resolve conflicts, and to sublimate personal goals for the good of the team. The challenge of creating team players will be greatest where:
o The national culture is highly individualistic.
o The teams are being introduced into an established organization that has historically valued individual achievement. On the other hand, the challenge for management is less demanding when teams are introduced where employees have strong collectivist values or in new organizations that use teams initially for organizing work.
o Get Organized
o Maintain Communications
o Fix Obvious Problems
o Document Progress, Problems, and Rationale
o Have a process in place for major team decisions
Dealing with Problem Behaviors: Unlike written rules, which are formal descriptions of actions and
behaviors required by a group or Organization, group norms are informal rules of conduct for behaviors that are considered important by most group members; often, they are not put in writing. Groups enforce their norms by rewarding members who conform to the norm by behaving in the specified manner and punishing members who deviate from the norm.o When members share a common idea of acceptable behavior, they can monitor each other’s
behavior to make sure they are following the group’s norms.o When norms exist, group members do not have to waste time thinking about what to do in a
particular situation; norms guide their actions and specify how they should behave.o When people share common norms, they can predict how others will behave in certain situations
and thus anticipate one another’s actions.o Choose team members carefully.
o Offer training.
o Provide clear goals.
o Clearly define member responsibilities.
o Use peer evaluations. 108
o Reward superior performance.
o Don’t let social considerations overwhelm concern with the task.
o Remove problem team members as a last resort.
Developing Effective Teams: Team always plays a dynamic role in the organizational development. It
is a responsibility of a leader to develop an effective team for achievement of organization goals. Introduction
o Two caveats:
First, teams differ in form and structure—be careful not to rigidly apply the model’s predictions to all
o Contextual influences
o Team’s composition
o Work design
o Process variables
Context
1. Adequate Resources
• All work teams rely on resources outside the group to sustain it.
• A scarcity of resources directly reduces the ability of the team to perform its job effectively.
• As one set of researchers concluded, “perhaps one of the most important characteristics of an effective work group is the support the group receives from the organization.’’
2. Leadership and Structure
o Agreeing on the specifics of work and how they fit together to integrate individual skills
o Leadership is not always needed. Self-managed work teams often perform better than
teams with formally appointed leaders.o Influence team performance:
o The leader’s expectations and his or her mood.
o Leaders who expect good things from their team are more likely to get them!
3. Performance Evaluation and Reward Systems
o How do you get team members to be both individually and jointly accountable? The traditional, individually oriented evaluation and reward system must be modified to reflect team performance.
o Individual performance evaluations, fixed hourly wages, individual incentives are not
consistent with the development of high-performance teams. Is it true that everyone’s responsibility is, in reality, nobody’s responsibility?-- Anonymous
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o Management should consider group-based appraisals, profit sharing, gain sharing, smallgroup incentives, and other system modifications that will reinforce team effort and commitment.
Composition
1. Abilities of Members
• Teams require three different types of skills:
o Technical expertise
o Problem-solving and decision-making skills
o Good listening, feedback, conflict resolution, and other interpersonal skills
• The right mix is crucial. It is not uncommon for one or more members to take responsibility to learn the skills in which the group is deficient, thereby allowing the team to reach its full potential.
2. Personality
• Many of the dimensions identified in the Big Five personality model have shown to be relevant to
o Teams that rate higher in mean levels of extraversion, agreeableness,
conscientiousness, and emotional stability tend to receive higher managerial ratings for team performance.o The variance in personality characteristics may be more important than the mean. A
single team member who lacks a minimal level of, say, agreeableness can negatively affect the whole team’s performance. 3. Allocating Roles
• Teams have different needs, and people should be selected for a team to ensure that there is
o Managers need to understand the individual strengths that each person can bring to a
team, select members with their strengths in mind, and allocate work assignments accordingly. 4. Diversity
o Diversity in terms of personality, gender, age, educational, functional specialization, and
o Racial and national differences interfere with team processes in the short term.
o Over time, however, culturally diverse teams function effectively over time.
o The degree to which members of a group share common characteristics such as age, sex, race educational level, or length of service, is termed group demography.
o Cohorts are defined as individual who hold a common attribute.
5. Size of Teams
o The most effective teams are neither very small (under four or five) nor very large (over a dozen). Effective teams—managers should keep them under 10 people.
o Very small teams are likely to lack for diversity of views.
o Large teams have difficulty getting much done.
6. Member Flexibility
o This is an obvious plus because it greatly improves its adaptability and makes it less reliant on any single member.
7. Member Preferences
o Not every employee is a team player.
o Given the option, many employees will select themselves out of team participation. 110
o High performing teams are likely to be composed of people who prefer working as part of a
group. Work Design
o Includes variables like freedom and autonomy, the opportunity to use different skills and
Process
1. Common Purpose
o Effective teams have a common and meaningful purpose that provides direction,
o This purpose is a vision. It is broader than specific goals.
2. Specific Goals
o Successful teams translate their common purpose into specific, measurable, and realistic performance goals. They energize the team.
o Specific goals facilitate clear communication and help teams maintain their focus on
results. Team goals should be challenging. 3. Team Efficacy
o Effective teams have confidence in themselves and believe they can succeed—this is team
o Management can increase team efficacy by helping the team to achieve small successes and
skill training._ Small successes build team confidence.
_ The greater the abilities of team members, the greater the likelihood that the team will develop confidence and the capability to deliver that confidence.
4. Conflict Levels
o Conflict on a team is not necessarily bad. Teams that are completely void of conflict are
o Relationship conflicts—those based on interpersonal incompatibilities, tension, and
animosity toward others—are almost always dysfunctional.o On teams performing non routine activities, disagreements among members about task
content (called task conflicts) are not detrimental. It is often beneficial because it lessens the likelihood of groupthink. 5. Social Loafing
o Individuals can hide inside a group. Effective teams undermine this tendency by holding
For the effectiveness of a team
o Training
o Empowerment
o Communication
o Reward
Building Trust: Members of effective teams trust each other and exhibit trust in their leaders. When
members trust each other they are more willing to take risks. When members trust their leadership they are more willing to commit to their leader’s goals and decisions.o Work for others’ interests as well as own
o Be a team player.
o Practice openness.
o Be fair.
o Speak your feelings.
o Show consistency in basic values.
o Maintain confidence. 111
o Demonstrate competence.
Teamwork Do’s
o Articulate a goal everyone can identify with
o Provide a plan or job for each member
o Provide a mechanism for communication
o Create an environment conducive to teamwork
o Provide effective feedback
o Provide Motivation
Teamwork Don’ts
o Don’t Micromanage
o Don’t withhold information, or work around members
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TEAM DYNAMICSTeam: A team is a formal work group in which there is a high level of interaction and interdependence among group members who work intensely together to achieve a common goal.
Teamwork: is the process of people actively working together to accomplish common goals.
Advantages and disadvantages of having team. Advantages Disadvantages
o Wider range of knowledge, expertise and
o Effective way to build consensus
o Effective way to communicate complex information
o Blocking
o Dominant people
o Status differential
o Groupthink
Why Rely on Teams: Compared with individuals working alone, teams tend to make better decisions
and make better products and services due to more knowledge and expertise. Organizations have turned to teams to better utilize employee talents. Management is looking for that positive synergy that will allow their organizations to increase performance. The extensive use of teams creates the potential for an organization to generate greater outputs with no increase in inputs. Merely calling a group a team doesn’t automatically increase its performance. We need to convert those groups into team.How Do We Measure Team Effectiveness? Effective teams have confidence in themselves and
believe they can succeed—this is team efficacy. Success breeds success. Management can increase team efficacy by helping the team to achieve small successes and skill training. Small successes build team confidence. The greater the abilities of team members, more the likelihood that the team will develop confidence and the capability to deliver that confidence. We can measure the team effectiveness by measuring their…o Productivity
o Cohesion
o Learning/ growth & development
o Integration with the rest of the organization.
Stages of Group Development:
o Forming—group members gather and try to get to know each other and establish a common
_ Getting to know each other.
_ Discovering what is considered acceptable behavior.
_ Determining the group’s real task.
_ Defining group rules.
_ Questions about purpose
_ Approach - avoidance behavior
_ High drop out possibility
_ Members seek leadership
_ Non-intimate relations o Storming—characterized by considerable conflict—group members resist being controlled by the group and disagrees about who should lead the group and how to achieve the objectives or how 113 much power the leader should have. This is the startup stage after group is formed. Every body gives his or her suggestion. A period of high emotionality and tension among group members. Members concern’s include: • Dealing with outside demands. • Clarifying membership expectations. • Dealing with obstacles to group goals. • Understanding members’ interpersonal styles. • Members test others strength • Authority in group tested • Fluid status structure • Member ejection may occur
o Norming—group members really start to feel that they belong to the group, and they develop close
ties with one another and start coming to points where most of the member agree and they feel of wiliness to move forward. The point at which the group really begins to come together as a coordinated unit. Members concern’s include: • Holding the group together. • Dealing with divergent views and criticisms. • Dealing with a premature sense of accomplishment. • Intensified, interpersonal involvement • Desire for group attention • Member interdependence • Dependence on the leader • Increased trust • Well established norms • Rules, roles, standards • Growing capacity to plano Performing—the group is ready to tackle group tasks and work toward achieving group goals, they
actually start performing—the real work gets accomplished in this stage. Marks the emergence of a mature, organized, and well-functioning team. Members deal with complex tasks and handle internal disagreements in creative ways. Primary challenge is to continue to improve relationships and performance. • Sense that “our” group is special • Acceptance of individual differences • People can be themselves • Disagreement/conflict is OK • Structure, roles, norms established and accepted • Teamwork utilizes the diverse strength of the memberso Adjourning: For temporary committees, teams, task forces, and similar groups that have a limited
task to perform. After completing the task and they reach adjourning stage. In this stage, the group prepares for its disbandment. Attention is directed toward wrapping up activities. Responses of group members vary in this stage. Some are upbeat, basking in the group’s accomplishments. Others may be depressed over the loss of camaraderie and friendships. Particularly important for temporary groups/teams._ A well-integrated group/team is:
_ Able to disband when its work is finished.
_ Willing to work together in the future.
_ Celebrate individual/ collective accomplishments Similarly others also describe these group formation stages in different ways but the basis were almost the similar. Like in one classification they describe them as bellow.
o Orientation (Forming)
o Dissatisfaction (Storming) 114
o Resolution (Norming)
o Production (Performing)
o Termination (in the case of temporary groups) How individual and group behave and issue during these development stages is summarized as bellow.
Types of Teams: Project Team:o Is convened for a specific purpose and disbands after completing its task.
Problem-Solving Teams
o Twenty years ago, teams were just beginning to grow in popularity and most took similar form.
o Members share ideas or offer suggestions on how work processes and methods can be
improved. Rarely are they given the authority to unilaterally implement their suggested actions.o One of the most widely practiced applications during the 1980s was quality circles.
Self-Managed Work Teams
o Problem-solving teams did not go far enough in getting employees involved in work-related
o These groups of employees (typically 10–15 in number) perform highly related or
interdependent jobs and take on many of the responsibilities of their former supervisors.o This includes planning and scheduling of work, assigning tasks to members, collective control
over the pace of work, making operating decisions, and taking action on problems.o Fully self-managed work teams even select their own members and have the members evaluate
each other’s performance. As a result supervisory roles become less important.o Business periodicals documented successful applications of self-managed teams. In spite of
these impressive stories, a word of caution: Some organizations have been disappointed with the results from self-managed teams.
Teams do not seem to work well during organizational downsizing.
The overall research on the effectiveness of self-managed work teams has not been uniformly positive.
Moreover, while individuals on teams do tend to report higher levels of job satisfaction,
they also sometimes have higher absenteeism and turnover rates. The effectiveness of self-managed teams is situationally dependent.
Care needs to be taken when introducing self-managed teams globally.
Cross-Functional Teams
o These are teams made up of employees from about the same hierarchical level, but from
Many organizations have used horizontal, boundary-spanning groups for years.
IBM created a large task force in the 1960s—made up of employees from across departments in the company—to develop the highly successful System 360.
o A task force is really nothing other than a temporary cross-functional team.
o The popularity of cross-discipline work teams exploded in the late 1980s.
o Cross-functional teams are challenging to manage.
Virtual Teams
o The previous types of teams do their work face to face. Virtual teams use computer
They allow people to collaborate online.
Virtual teams can do all the things that other teams do.
They can include members from the same organization or link an organization’s members with employees from other organizations. 115
They can convene for a few days to solve a problem, a few months to complete a
project, or exist permanently.o The three primary factors that differentiate virtual teams:
The absence of verbal and nonverbal cues. These help clarify communication by providing increased meaning, but aren’t available in online interactions.
Limited social context. Virtual teams often suffer from less social rapport and less
direct interaction among members. The ability to overcome time and space constraints. Virtual teams allow people to work
together who might otherwise never be able to collaborate. We can summarize this as shown in slides during our lecture as bellow.Project Team: is convened for a specific purpose and disbands after completing its task.
Cross-functional Team: operates with members who come from different functional units
of an organizationQuality Circle Team: employees who meet periodically to discuss ways of improving
work quality. - a group of workers from the same functional area who meet regularly to uncover and solve work-related problems and seek work improvement opportunities.Self-Managing Teams: work team having the authority to make decisions about how they
share and complete their work.Virtual Teams: Work together and solve problems through computer based interactions
We cam also divide teams into permanent or Temporary Teams. Permanent teams:
o Team-based departments
o Team-based organization
o Quality circles
Temporary teams:
o A task force is a collection of people who come together to accomplish a specific goal.
Benefits of Teams:
o Synergy (a type of process gain) occurs when members of a group/teams working / acting
Why Teams Are Good for Organizations
o More resources for problem solving
o Improved creativity and innovation
o Improved quality of decision making
o Greater commitments to tasks
o Increased motivation of members
o Better control and work discipline
o More individual need satisfaction
Characteristics of High Performance Teams:
o Clear goals
o Results-driven structure
o Competent team members
o Unified commitments
o Collaborative climate
o Standards of excellence
o Leadership
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BUILDING THE TEAMLeaders need to put extra efforts to convert individuals into a performing team.
Turning Individuals into Team Players:
It starts with the selection of right type of people, training them and linking the performance with
“NONE OF US IS AS SMART AS ALL OF US”
o When teams operate effectively, they can solve more problems, make better decisions and be
o “Team are unique; dynamic, complex and ever changing.” - Ken Blanchard, author of “the one
minute manager”.Leadership success requires: An understanding of group behavior. The ability to tap the constructive
power of teams Team Building
o Get the right people.
o Determine the Challenge.
o Prepare the Team Leader.
o Train.
o Add value.
o See the Big picture.
Build and Support the Team
o Leadership Skills
o Team Building Strategies
o Team Logistics
Team Building:-The Team Leader’s Responsibility A good team leadero Fosters communication among team members
o Seeks to build bonds among team members (work together, meet together, get to know each other)
o Creates positive environment for collective problem solving and support; creates
atmosphere in which differing opinions are valued but in which clear decisions can be reachedo Is alert to cliques, bickering, etc. and acts to address them; maintains atmosphere in which
sexual, racial, ethnic, national or other harassment is not acceptableo Monitors individual staff members for signs of stress and provides basic support
o Models good individual stress management practices
o Seeks to base expatriate/staff interactions on mutual respect, transparency, and partnership
Team Building:-The Organizational Responsibility
o The Organization identifies team-building skills as an essential qualification for prospective
o The Organization trains staff and managers in team work skills (e.g., conflict management)
o The Organization helps build team cohesion (e.g., through common experiences such as safety and security training)
o The Organization regularly reviews team functioning and has policies for addressing the
problems of dysfunctional teams and of staff members who have difficulty functioning in their team Strategies for Team Building
o Establish common goals
o Understand each others role in the Team
o Find occasions to celebrate
o Recognise effort
o Improve communication
Factors Affecting Teams
o Work Design
o Team Composition
o Context
o Process Let’s discuss individual factor
Work Design:
• Autonomy
• Task
• Feedback Work design play important role in the performance of a team. Kind of autonomy, task itself and the feedback system in organization related to the work design are essential ingredient of work design.
Team Composition
• Ability
• Personality
• Roles
• Size
• Flexibility Selection of right team members is the starting point for the success of any team. Type of team member personalities matching with the type of task they are going to perform, clear role identification, size of team and role and flexibility with in the working relationship of the team members are the essential components of team composition that play important role in the effectiveness of a team. Similarly other factor like context and process affects the performance a team.
Context
• Resources
• Leadership
• Performance evaluation and rewards
Process
• Common purpose
• Specific goals
• Team worth
• Conflict management
• Avoid social loafing
Building the Team
o Get them together
o Keep them informed – vacuums tend to fill with negativity
o Keep them involved – the working groups – make it their project too
o Ensure everyone sees themselves, understands their role in the “new world”
o Don’t focus on differences, focus on similarities
o Add value to individuals and you multiply team effectiveness. 118
o Impart Spiritual life on a daily basis.
o Value added to cohesion stimulates synergism.
o Remove Ineffective Members
o Define Purpose
o Define Time Line
o Have regular review against goals
o Begin with smaller assignments and test at higher levels
o A Weak Link can destroy your team.
o Stronger members identify the link.
o Stronger members have to help.
o Stronger members begin to resent.
o Stronger members become less effective.
o Stronger members begin to question the leader’s ability.
o Facts you must accept.
o Not everyone will take the journey.
o Not everyone can take the journey.
o Will not work on personal weaknesses.
o Will not work with the rest of the team.
o Can not fulfill the expectations of their area.
o As a Leader you are a catalyst within the team to move it …
o Increase the value of every member.
o Increase individual commitment to shared values.
o Remind them of the Big Picture.
o Uplift other team members.
Leadership success requires:
An understanding of group behavior. The ability to tap the constructive power of teams. “Team are
unique; dynamic, complex and ever changing.” - Ken Blanchard, author of “the one minute manager”.
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A TEAM-BASED ORGANIZATION Team Based OrganizationImplementing a team-based approach to organizational structure can empower employees and increase cooperation among different skills and disciplines. Based on the belief that organizational goals will be achieved not by individuals working together separately, but by groups of people who share responsibility for outcomes and who work efficiently and effectively in team?o These processes require highly developed communication competencies from all team members.
o Team skills usually are divided into two categories
_ Task roles
_ Maintenance roles
Characteristics of Traditional Vs Team-based Organizations Traditional Team-basedIndividual command structures Collective structures Manager controls Team monitors Vertical hierarchy Horizontal integration Stability and uniformity Change and flexibility One best way to organize Organization-specific Managers manage Self-managing teams
Traditional vs. Best Place to Work Changes
To understand this we need to understand basic concept of organizational structure.
The Basics of Organizational Structure:
o Organizational structure defines how job tasks are formally divided, grouped, and coordinated.
o The organization chart is a visual representation of this division, grouping, and coordination.
Organizational Structure: Organizational structure is the formal setup of task and authority
relationships. Structure controls the coordination of activities and employee motivation to attain goals. Structure must be continually evaluated. Formal structure shows the intended configuration of positions, job duties, and the lines of authority among different parts of the enterprise.Designing an Organization Structure: Organization design is the process by which leaders/managers
select and manage aspects of organizational structure so that an organization can achieve its goals. Basic Steps
o Leaders/Managers must decide how to divide the overall tasks of the organization into successively
o Leaders/Managers must decide the basis by which to group the individual jobs.
o Leaders/Managers must decide the appropriate size of the group reporting to each supervisor
o Leaders/Managers must distribute authority among the jobs.
Departmentalization:
Departmentalization is the bedrock of horizontal differentiation, which begins when one person assumes a functional task. As others assume specialized roles, a functional structure emerges, with people placed in groups based on common skills or common use of resources.
Span of Control
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To avoid becoming too tall, an organization can increase the span of control, the number of
Formalization:
The use of written rules and procedures to standardize operations is known as formalization. If
Centralization:
When top managers make decisions, authority is centralized. When lower-level managers make
Organizational Design Decisions: Mechanistic Organization Organic Organizationo Rigid and tightly controlled structure
o High specialization
o Rigid departmentalization
o Narrow spans of control
o High formalization
o Limited information network (downward)
o Highly flexible and adaptable structure
o Non-standardized jobs
o Fluid team-based structure
o Little direct supervision
o Minimal formal rules
o Open communication network
Mechanistic vs. Organic Models
Mechanistic structures influence people to behave in a predictable manner. Decision making is highly
Organic structures encourage flexibility and decentralize decision making. Roles are loosely defined.
Employees perform many tasks and work with people from various functions. Strategic planning assumes that the old structure may not work in the new realities. It demands the organization think in terms of new approaches to solving existing and potential issues. Benefits of Teams in Organizations:
_ Enhanced Performance: Teams may take many forms, i.e. including improved productivity,
_ Employee Benefits: Teams always provide the sense of self-control, human dignity,
identification with work, and sense of self-worth and self-fulfillment for which current workers seem to strive._ Reduced Costs: Through empowered teams, an organization can reduce scrap, make fewer
errors, file fewer worker compensation claims, and reduce absenteeism and turnover. They resulting in significant cost reductions. 121_ Organizational Enhancements: Teams improvements in team results a move from a
hierarchically based, directive culture to a team-based culture include increased innovation, creativity, and flexibility in the organization. Research indicates team-based organizations generally outperform more hierarchically organized structures in terms of product and service output, less absenteeism, fewer industrial accidents, more worker flexibility, quality improvements, and overall employee job satisfaction. Benefits of Team-based Organization:
Profitability and long term viability organization is increased due to its working as team based
o Efficient Process
o Flexible Response to change
o Improve Effectiveness
o Reduce Cost
o Increase Innovation
o Customer Involvement
o Employee commitment
o Skill utilization
Checklist for Team Based Working/ Organization Implementation Plan:
o To what extent does the senior management team agree with the team based working
o To what extent does the organization need team based working to achieve its goals?
o Are team based working practices already in place in some parts of the organization? If so, where?
o Where should we start? (Whole organization, one area, with well functioning teams?)
o How do we move on from where we are now?
o What major changes need to take place?
o What resources do we need?
Possible Pitfalls in the Introduction of Team Based Organization (TBO)
o Introducing teams regardless of need
o Introducing teams without changing systems
o Failing to train for TBO
o Not providing expert support
o Failure of communication within, with and between teams
o Failure to establish and support TBO objectives
Roles of a Leader in the Team-Based Organization
o Defining the team’s mission
o Building trust and inspiring teamwork
o Coaching team members and group members toward higher levels of performance
o Serving as a model of teamwork, including power sharing
o Facilitating and supporting team’s decisions
o Expanding the team’s capabilities
o Creating a team identity
o Emphasizing pride in being outstanding
o Anticipating and influencing change
o Inspiring the team toward higher levels of performance
o Enabling and empowering group members to accomplish their work
o Selecting team-oriented members
o Using technology that facilitates teamwork
Fostering Teamwork Through Organization Structure or Policy:
o Designing physical structures that facilitate communication
o Emphasizing Team recognition and rewards
o Initiating ritual and ceremony
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DECISION MAKING Decision Making and Decision Making Process:A decision is a choice made from two or more alternatives. The decision-making process is recognizing and defining the nature of a decision situation, identifying alternatives, choosing the “best” alternative, and putting it into practice. An effective decision is one that optimizes some set of factors such as profits, sales, employee welfare, and market share. Managers make decisions about both problems and opportunities. Problem Solving Vs Decision Making
o Problem solving: finding the root cause of a deviation (cause analysis)
o Decision making: choosing from alternative courses of action (choice analysis) Problem solving --------------- Decision making
Categories of Decisions
• Technical • Emotional • Communication • Budget • Ethical • Personnel • Career
o Making decisions on the basis of gut feeling doesn’t necessarily happen independently of rational
o Although intuitive decision making will not replace the rational decision-making process, it does
play an important role in managerial decision making Decision-Making Conditions
o Decision Making Under Certainty
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o A condition in which the decision maker knows with reasonable certainty what the
o Decision Making Under Risk
o A condition in which the availability of each alternative and its potential payoffs and costs
o Decision Making Under Uncertainty
o A condition in which the decision maker does not know all the alternatives, the risks
_ The choice of alternative is influenced by the limited amount of information
available to the decision maker._ It’s also influenced by the psychological orientation of the decision maker
The Decision-Making Process:
Step 1: Identifying a problem. A problem is a discrepancy between an existing and a desired state of affairs. In order to identify a problem, you as a manager/leader should recognize and understand the three characteristics of problems:
o You must be aware of the problem. Be sure to identify the actual problem rather than a symptom of
the problem.o You must be under pressure to act. A true problem puts pressure on the manager to take action; a
problem without pressure to act is a problem that can be postponed.o You must have the authority or resources to act. When managers recognize a problem and are under
pressure to take action but do not have necessary resources, they usually feel that unrealistic demands are being put upon them.Step 2: Identifying decision criteria. Decision criteria are criteria that define what is relevant in a
decision.Step 3: Allocating weights to the criteria. The criteria identified in Step 2 of the decision-making
process do not have equal importance, so the decision maker must assign a weight to each of the items in order to give each item accurate priority in the decision.Step 4: Developing alternatives. The decision maker must now identify viable alternatives that
could resolve the problem.Step 5: Analyzing alternatives. Each of the alternatives must now be critically analyzed by evaluating
it against the criteria established in Steps 2 and 3.Step 6: Selecting an alternative. This step to select the best alternative from among those identified
and assessed is critical. If criteria weights have been used, the decision maker simply selects the alternative that received the highest score in Step 5.Step 7: Implementing the alternative. The selected alternative must be implemented by effectively
communicating the decision to the individuals who will be affected by it and winning their commitment to the decision.Step 8: Evaluating Results. This last step in the decision-making process assesses the result of the
decision to determine whether or not the problem has been resolved.Evaluating Alternatives in the Decision-Making Process Quantitative and Qualitative Factors in Decision Making: Quantitative Factorso Investment appraisal
o Break-even analysis
o Market research
o Sales forecasting
o Critical path analysis
o Decision trees
Qualitative Factors
o Stakeholder analysis
o HRM
o SWOT
The Classical Model of Decision Making: Classical model is based on economic conditions and
considered to be normative. It relates to accomplishment of goals that are known and agreed upon. The classical model Strives for certainty by gathering complete information. This is also use as criteria for evaluating alternatives that are known. Decision Making Behavior:
Behavior always varies person to person. People tend to adopt a particular decision making approach as
o Their own personality
o Their current mood
o The organisational culture
o The personality of the person/people they are dealing with
o The nature of the relationship they have with the people they are dealing with
o Time pressure and perceived level of stress Being aware of these influences can result in better decision making, by adopting the best decision making approach for each situation.
Decision Making Approaches:
o Withdrawing: holding off making the decision.
o Smoothing: focusing on areas of agreement and ignoring areas of difference.
o Compromising: trying to come up with a decision that provides some degree of satisfaction for all parties.
o Confronting/problem solving: working through the issues.
o Forcing: executing a particular decision knowing agreement has not been reached.
What Kinds Of Decisions Do People Make In The Workplace?
o Handling complex problems individually
o Handling complex problems as a team
o Focusing effort
o Judging people
How to Make Better Decisions: 1. Increase Your Knowledgeo Ask questions.
o Get experience. 125
o Use consultants.
o Do your research.
o Force yourself to recognize the facts when you see them (maintain your objectivity).
2. Use Your Intuition
o A cognitive process whereby a person instinctively makes a decision based on his or her
3. Weigh the Pros and Cons
o Quantify realities by sizing up your options, and taking into consideration the relative
4. Don’t Overstress the Finality of Your Decision
o Remember that few decisions are forever.
5. Make Sure the Timing Is Right
o Decisions always depend on the time.
Helpful Hints: Don’t Doo Make assumptions
o Delay
o Jump to conclusions
o Make uninformed decisions
o Favour one decision prior to gathering the facts and evaluating the alternatives
o Allow only technical people to make
the decisionso Attempt to make a decision in isolation
of the contexto Let emotion override objectivity
o Clearly identify the decision to be made
o Involve people qualified to help in the
decision makingo Identify the context of the decision (the
bigger picture)o Identify all alternatives
o Assess each alternative
o Assess the risks
o Consider your “gut feel”
o Make the decision and stick to it
Roadblocks to Good Decision Making
o Human Cognition
o Our mental ability to comprehend and understand something
o Human Perception
o Difficulty isolating problems
o Tend to think of only narrow range of possible solution
o Human Bias
o Tendency to shape responses based on stereotypes, memory, and current position
Decision-Making and Technology: In today’s completive world Information technology can also help
and support the decision-making. Different decision making tools are available for manager and leadersto use in practical life.
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TEAM DECISION MAKINGDiscussion on decision making process was started in previous lecture/chapter. We tried to understand various aspects of decision making including the process of decision making, types of decision making etc. In this lecture we will try to apply that process of decision making and also to understand the team decision making.
Apply decision making steps to the following situation. “You want to buy a car”
To make a better decision following step will be taken and few question might need to be answered.
o What is your situation?
o SITUATION: You want or need a car.
o CHOICES: What are your choices?
o CHOICES: Buy the car. Don’t buy the car
o CONSEQUENCES - YES You must spend your money for - Car Cost On Insurance, on General Maintenance and Gas/Petrol Charges
o CONSEQUENCES - if YES
How will you pay for the car? -
o CONSEQUENCES - if YES
How will your Study be affected?
o CONSEQUENCES – if YES
How will your leisure and social time be affected?
o CONSEQUENCES - NO
a. You will be able to save more money to buy a better car.
o DECISION
a. YES or
o DECISION
Which decision would you make?
Team Decision Making: Use Individual Decision Making When:o You have the information to make a good decision
o The situation is urgent
o Subordinates are already committed or their commitment doesn’t matter
Use Team/Group For Decision Making When:
o No one knows the answer or the expertise is in the group
o You want to increase the commitment of subordinates
o The situation is not urgent in the sense that it requires an immediate response
o You, as manager/leader, can live with choice 127
Group/Team Decision Making Advantages Disadvantageso More information & knowledge are
Availableo More alternatives are likely to be
generated.o More acceptance of the final decision is
likelyo Enhanced communication of the decision
may result better decisionso The process takes longer, so it is more
costlyo Compromise decisions due to
indecisiveness may emergeo One person may dominate the group
Groupthink may occur Methods of Group/Team Decision Making (Johnson & Johnson, 1991)
o Decision by authority without discussion
o Expert member
o Average of member’s opinions
o Decision by authority after discussion
o Majority control
o Minority control
o Consensus
Decisions made in groups can be made by one of four main methods.
o Unilaterally by an individual
o By simple majority vote
o By consensus – everyone agreeing to support the conclusion
o Subgroup of team
Which one is the best? There is no “best”. Different types fit best for different situations. Unilateral approach has one person make the decision for the whole group. Pros Conso Enables you to move fast.
o Takes care of the small stuff.
o Works well in emergencies
o Works well when one person has all relevant information and is trusted
o Some people might not understand
rationale for decisiono Decision maker may make decision
with inadequate infoo Generates less support for the decision
Simple majority voting works when you don’t have time for consensus building. Pros Conso Easy to use
o Works when everyone has the same information and already understands others
o Implementation can be handled by majority
o Helps in managing large groups
o Breeds winners v. losers climate
o Lessens creativity and flexibility since difficult to consider many options. Sometimes it artificially limits choices.
Consensus means everyone supports a decision. It does not mean unanimity or that everyone gets what they want. Pros Conso Good for very important decisions
o Builds strongest buy-in
o Make for quickest implementation
o Develops a group’s problem solving skills
o Takes the longest
o Requires highest level of communication skills
Subgroup of a team is appropriate under the following circumstances. Pros Conso Appropriate when subgroup is only entity
affectedo Decision can be implemented w/o
involvement of majorityo Whole group is comfortable with
delegating authorityo When “pros” do not apply, this can result
in conflict and dissent regarding decision made by group Relationship between type of decision and quality. Team Problem Solving Techniques:
o Consensus presenting opinions and gaining agreement to support a decision. A proposal that is
o Identify all options and views
o Build on common ideas
o Discuss the differences
o Propose alternatives or compromises to settle differences
o Test consensus when you seem to have a conclusion by “doing a check”. Go around room and have everyone given their current opinion.
o If consensus is not reached, repeat steps 1 – 5.
o Brainstorming process to generate a quantity of ideas. In this technique the goal is. Goal - to examine as broad a range of options as possible
o Rules - Encourage free-wheeling - No discussion - No judgment - Write visibly all ideas
o Sequence
o Review the topic (as a question)
o Minute or two of silence to think
o Call out and write down ideas
o Nominal Group Technique process to generate ideas and evaluate solutions.
o A form of structured group decision making that enables everyone to participate and have his/her ideas heard without hostile criticism or distortions.
o A structured voting procedure is used to prioritize responses to the nominal question.
o Stepladder Technique
129
o A decision making approach in which members are added one by one to a team.
o Two people starts a discussion of the task.
o Another member is added and then presents their ideas to the group.
o Then another and so on until decision is made.
o Delphi Technique process to generate ideas from physically dispersed experts.
o Used in situations where group members are unable to meet face to face.
o The process.
_ A series of questions is distributed to a panel.
_ Panel members submit their responses to a decision coordinator.
_ The decision coordinator summarizes the responses, and sends the summary along with a follow-up questionnaire to the panel.
_ Panel members send in their responses.
_ The process is repeated until a consensus is reached.
o Quality circles (QC): a small group of employees who work voluntarily on company time, typically one hour per week, to address work-related problems
o Quality team: a team that is part of an organization’s structure & is empowered to act on
its decisions regarding product & quality service Concept of QC
The philosophy behind the concept of QC is that responsibility of generating quality is
o Identify problems
o Collect and analyze data
o Make cause-effect relationships,
o Generate best solutions
o Computer-Aided Decision Making
o Expert Systems: a programmed decision tool set up using decision rules
o Decision Support Systems: computer and communication systems that process in coming data and synthesize pertinent information for managers to use
o Group Decision Support Systems: systems that use computer software and
communication facilities to support group decision-making processes in either face-to-face meetings or dispersed meetings Computer-mediated decision making. It is done through the electronic brainstorming through the use of special software and personal computers. The nominal group and Delphi techniques lend themselves to computer mediation Potential Advantages of Group/Team Decision Making:
o More knowledge and expertise is applied to solve the problem.
o A greater number of alternatives are examined.
o The final decision is better understood and accepted by all group/team members.
o More commitment among all group/team members to make the final decision work.
Potential Disadvantages of Group/ Teams Decision Making:
o Individuals may feel compelled to conform to the apparent wishes of the group/team.
o The group’s/team’s decision may be dominated by one individual or a small coalition.
o Group/team decisions usually take longer to make.
Improving Team Decision Making
o Assign the devil’s advocate role
o Be open to dissenting points of view
o Seek outside opinions
o Break up into smaller groups
o Rethink issues before making final decision
o Use brainstorming 130
Managing Group and Team Decision-Making Processes
o Be aware of the pros and cons of
o Set deadlines for when decisions must
be made.o Avoid problems with dominance by
managing group membership.o Hold a follow-up meeting to recheck
the decision.o Have each group member individually
and critically evaluate all alternatives.o As a manager, do not make your
position known too early.o Appoint a group member to be a
“devil’s advocate.”
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EFFECTIVE TEAM COMMUNICATIONWe are the second part of our course the team dynamics. Last two lecturers were focusing on decision making. In this lecture the focus will be on effective team communication. We have already discussed the basic concepts and principle of importance of communication during the first part of our course. Keeping in view the importance of communication in team performance this topic is again being discussed in this lecture.
Team Communication:
Communication is the process by which a person, group, or organization (the sender) transmits some
Communication encompasses both interpersonal communication (between two or more people) and
organizational communication (all the patterns, networks, and system of communication within an
organization). The Basic Communication Process:
Encoding – translating an idea into a form, such as written or spoken language, that can be recognized
Transmission via communication channels – pathways over which information travels
a. Telephone lines, radio, television b. Fiber-optic cables (e-mail)Decoding – converting the message back into the sender’s original ideas.
Feedback – providing information about the impact of messages on receivers.
Noise – factors that distort the clarity of messages that are encoded, transmitted, or decoded in the
communication process.a. Unclear writing
b. Listener’s inattentiveness
c. Static along a telephone line Same topic was discussed in detail in lecture number 23 and 24.
Communication and Leadership: The importance of effective communication cannot be
overemphasized because everything a manager/leader does involves communicating. Effective leaders are also effective communicators. To be effective, the leader must synchronize verbal and nonverbal behavior Technology has had also a meaningful impact on leaders’ communication and coordination.o Effective leaders are also effective communicators
o To be effective, the leader must synchronize verbal and nonverbal behavior
o Technology has had a meaningful impact on leaders’ communication and coordination
Communication Creates a Team:
Communication makes the bridge between the team members and creates synergy within the team.
The Top Three Qualifications Sought by Today Employers
o Communication Skills
o Team Member
o Leadership Capabilities That also indicates the importance of communication.
Team Communication:
Internal communication: means communication between team members and key personals of the organization.o Formal
o Informal
o Formal communication is communication that follows the official chain of command or is required to do one’s job.
o Informal communication is communication that is not defined by the organization’s
structural hierarchy.o Informal communication systems permit employees to satisfy their needs for social
interaction.o Informal communication systems can improve an organization’s performance by
creating alternative—and frequently faster and more efficient—channels of communication.External communication: Communication between the team point of contact and the client or
customers regarding contract requirements. E.g. documentation, reporting etc. Team/Group Communications
Team/group communication will depend on
o Group Size: The larger the group, the harder it is for people to communicate with other group members.
o Group Structure: Communication is better in informally structured groups than in hierarchically
structured groups.o Group Composition: Communication is better when there are different personality types in a
group and when groups are mixed rather than single sex.o The Physical Work Environment: Good workplace organisation can help encourage
communications. In Order for Teams to be Effective, the members must communicate effectively, share information and have a shared understanding of information presented to them. Why Communication Is Important & Necessary…
o In a team you are ALL working towards a same goal/vision.
o You need to define and ensure that the goal/vision is shared by all the members.
o If there are questions/issues about the goal/vision those need to be resolved quickly in order for the team to move forward.
o When decisions need to be made the team has to be made aware of the decision that is at hand.
o EVERYONE NEEDS TO BE ON BOARD
o If communication keeps the team members informed, therefore a team working towards the same goal/vision can be more effective and efficient.
o Information is shared within team.
o Team members have knowledge
o Knowledge is power
o Sense of power gives members sense of belonging and dedication
o Dedicated members will contribute more and feel valuable to the team. Any data, information transferred will ultimately create wisdom and help for an effective decision making by individuals, mangers and leaders.
Creating Team Communication:
o Ensure that goals are clearly defined.
o Interaction is aimed at solving problems and achieving team goals.
o Ensure team members trust each other by having open communication.
Characteristics of Open Communication:
o Members are encouraged to seek input from others.
o Disagreement is invited and dealt with as a vital part of making sound decisions.
o Team members share responsibility for communicating effectively. 133
o Everyone is pro-active to understand team goals.
Guidelines to Team Communication:
o Be specific: include facts and details to avoid being unclear
o Be accurate: as much as possible be sure that the information you are giving is true and reliable.
o Be honest: be truthful with those you are communicating with and do not use questionable
information.o Be logical: make sure messages are easy to follow
o Be complete: give all needed information in regards to your ideas.
o Be concise: be brief- not unnecessarily wordy.
o Be relevant: stay on task and give information that is needed.
o Ask for feedback: have recipients give comments on information.
Responsibilities of Team Members:
o Open minded
o Listen to what is being said
o Give feedback to what is being said
o Make sure all team members have a chance to communicate their ideas.
o If decisions need to be made discuss pros and cons, and decide best option for TEAM.
o Take ownership for what you say.
o Take responsibility for making sure you are heard and understood.
o Use terminology and examples that your audience understands.
o Be aware of body language.
o Always work to maintain the trust and confidence of those with whom you are communicating / working.
Getting Your Message Across:
o State the purpose of your message.
o Communicate your message.
o Listen to the response of others.
o Clear up any misunderstandings.
o Summarize and move to action.
Communication Tools:
o Face-to-face
o E-mail
o Chat rooms
o On-line
o Cell phone
o Search engines
Email
o Somewhere between verbal and written communication
o Easy for the recipient to misinterpret the message Three Simple Guidelines for More Effective Email are 1) Write precisely, 2) Format intelligently and 3) Follow through.
Poor communication can lead to:
o Wasted time and/or energy
o Lack of trust
o Misunderstandings
o Deadlines are not met
o Lack of change for the better Communication is the leading cause of both conflict and resolution. It is a skill that requires life-long
effort and learning. We must practice.
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CONFLICT IN TEAMConflict in Team: The process in which one party perceives that its interests are being opposed or negatively affected by another party.
o Perceived by the parties
o Parties are in opposition to one another
o At least one party is blocking the goal attainment of the other party
o Goals can be tangible or psychological
o Money
o Task Achievement
o Happiness There are several common themes which underlie most definitions:
o The parties to it must perceive conflict.
o Commonalties in the definitions are opposition or incompatibility and some form of interaction. We define conflict as “a process that begins when one party perceives that another party has negatively affected, or is about to negatively affects, something that the first party cares about.”
o This describes that point when an interaction “crosses over” to become an inter-party
conflict.o It encompasses the wide range of conflicts that people experience in organizations.
Sources of Conflict:
o Goal Incompatibility
o Different Values and Beliefs
o Task Interdependence
o Scarce Resources
o Ambiguity
o Communication Problems
o Perceived personal threats
o Perceived threat to the organization
o Personal, social, cultural differences
o Others... The three major sources of interpersonal and inter group conflict are differentiation, task relationships, and scarcity of resources.
Differentiation:
o Differentiation in an organization occurs when people and tasks are grouped or split up into
o The splitting process produces conflict because it makes the differences in functional
orientations and status inconsistencies apparent.o Differences in Functional Orientations.
o Different functions commonly develop different orientations toward the
Organization’s major priorities. o Their views of what needs to be done to increase organizational performance differ because their tasks, jobs, and goals differ.
o Different views of priorities develop.
o These differences can lead to conflict that can do considerable harm to the organization’s cohesiveness and functional integration performance is reduced.
o Status Inconsistencies:
o Over time, some functions or divisions come to see themselves as more vital than others to an organization’s operations and believe that they have higher status or greater prestige in the organization. 135
o High-status functions make little attempt to adapt their behaviors to the needs
of other functions, thereby causing conflict. Task Relationships:
o Task relationships generate conflict between people and groups because organizational
o Overlapping Authority. If two different functions or divisions claim authority for the
same task, conflict may develop.o Task Interdependence.
o The development of goods and services depends on the flow of work from one function to another; each function builds on the contributions of other functions.
o If one function does not do its job well, the ability of the function next in
line to perform is compromised, and the outcome is likely to be conflict.o As task interdependence increases from pooled, to sequential, to reciprocal
interdependence, the potential for conflict among functions or divisions is greater.o Incompatible Evaluation Systems.
o Inequitable performance evaluation systems that reward some functions but not others sometimes create conflict.
o Complex task relationships increase this form of conflict.
Scarcity of Resources:
o Competition for scarce resources produces conflict.
o Budget fights can be fierce when resources are scarce.
Communication:
o Communication as a source of conflict represents those opposing forces that arise from semantic difficulties, misunderstandings, and “noise” in the communication channels.
o Differing word connotations, jargon, insufficient exchange of information, and
noise in the communication channel are all barriers to communication and potential antecedents to conflict.o Semantic difficulties are a result of differences in training, selective perception,
and inadequate information.o The potential for conflict increases when either too little or too much
communication takes place.o The channel chosen for communicating can have an influence on stimulating
opposition. Different Values and Beliefs:
o Include individual value systems and personality characteristics. Certain
o Most important is differing value systems. Value differences are the best
explanation for differences of opinion on various matters. Types of Conflict:
o Emotional – is personal, defensive, and resentful. Also known a A-type or affective.
o Cognitive - is largely depersonalized, it consists of argumentation about the merits of ideas, plans, and projects. Known as C-type. Often an effective stimulate to creativity. We can have a different type of conflict classification with reference to organizational setup.
o Task conflict: Conflict over content and goals of the work. Low to moderate levels can be
acceptableo Relationship conflict: Conflict based on interpersonal relationships. Almost always
dysfunctionalo Process conflict: Conflict over how work gets done. Low levels can be acceptable
136We can also have relationship conflict (A-type conflict) and task conflict (C-type conflict). We need to
put efforts for transforming relationship into task conflict. This can be done through.o Agree on common goal or shared vision
o Create a place for conflict and get it out in the open
o Training in task conflict We can also have conflicts known as;
Intrapersonal:
o A person having tension or stress within…
o Often due to over competing roles
Interpersonal:
o Between 2 or more people,
o Disagreement, values or styles don’t match
o Miscommunication occurs
Intra-group:
o Arises within one group
Inter-group:
o Arises between groups over issues/goals/solutions
The Conflict Process: Four Stageso Potential opposition
o Cognition and personalization
o Behavior
o Outcomes
Stage I: Potential Opposition or Incompatibility
o Communication
o Communication as a source of conflict represents those opposing forces that arise
o Differing word connotations, jargon, insufficient exchange of information, and
noise in the communication channel are all barriers to communication and potential antecedents to conflict.o Semantic difficulties are a result of differences in training, selective perception,
and inadequate information.o The potential for conflict increases when either too little or too much
communication takes place.o The channel chosen for communicating can have an influence on stimulating
opposition. o Structure
o The term structure includes variables such as size, degree of specialization,
o Size and specialization act as forces to stimulate conflict. The larger the group and
more specialized its activities, the greater the likelihood of conflict.o The potential for conflict is greatest where group members are younger and
turnover is high.o The greater the ambiguity in responsibility for actions lies, the greater the potential
for conflict.o The diversity of goals among groups is a major source of conflict.
137o A close style of leadership increases conflict potential.
o Too much reliance on participation may also stimulate conflict.
o Reward systems, too, are found to create conflict when one member’s gain is at another’s expense.
o Finally, if a group is dependent on another group, opposing forces are stimulated.
o Personal Variables
o Include individual value systems and personality characteristics. Certain personality types lead to potential conflict.
o Most important is differing value systems. Value differences are the best
explanation for differences of opinion on various matters. Stage II: Cognition and Personalization
o Antecedent conditions lead to conflict only when the parties are affected by and
o Conflict is personalized when it is felt and when individuals become emotionally
involved.o This stage is where conflict issues tend to be defined and this definition delineates
the possible settlements.o Second, emotions play a major role in shaping perceptions.
o Negative emotions produce oversimplification of issues, reductions in trust, and negative interpretations of the other party’s behavior.
o Positive feelings increase the tendency to see potential relationships
among the elements of a problem, to take a broader view of the situation, and to develop more innovative solutions. Stage III: Behavior
o Stage IV is where conflicts become visible. The behavior stage includes the statements, actions,
o Stage IV is a dynamic process of interaction; conflicts exist somewhere along a continuum
o At the lower part of the continuum, conflicts are characterized by subtle, indirect, and highly controlled forms of tension.
o Conflict intensities escalate as they move upward along the continuum until they become highly
destructive.o Functional conflicts are typically confined to the lower range of the continuum.
Stage IV: Outcomes Introductiono Outcomes may be functional—improving group performance, or dysfunctional in
hindering it. Functional Outcomes
o How might conflict act as a force to increase group performance?
o Conflict is constructive when it:
o Improves the quality of decisions.
o Stimulates creativity and innovation.
o Encourages interest and curiosity.
o Provides the medium through which problems can be aired and tensions released.
o Fosters an environment of self-evaluation and change.
o The evidence suggests that conflict can improve the quality of decision making.
o Conflict is an antidote for groupthink.
o Conflict challenges the status quo, furthers the creation of new ideas, promotes reassessment of group goals and activities, and increases the probability that the group will respond to change.
o Research studies in diverse settings confirm the functionality of conflict.
138_ The comparison of six major decisions made during the
administration of four different U.S. presidents found that conflict reduced the chance of groupthink._ When groups analyzed decisions that had been made by the
individual members of that group, the average improvement among the high-conflict groups was 73 percent greater than was that of those groups characterized by low-conflict conditions.o Increasing cultural diversity of the workforce should provide benefits to
organizations._ Heterogeneity among group and organization members can
increase creativity, improve the quality of decisions, and facilitate change by enhancing member flexibility._ The ethnically diverse groups produced more effective and more
feasible ideas and higher quality, unique ideas than those produced by the all-Anglo group.o Similarly, studies of professional systems analysts and research and development
scientists support the constructive value of conflict.o An investigation of 22 teams of systems analysts found that the more incompatible
groups were likely to be more productive.o Research and development scientists have been found to be most productive where
there is a certain amount of intellectual conflict. Dysfunctional Outcomes
o Uncontrolled opposition breeds discontent, which acts to dissolve common ties and
o Undesirable consequences:
_ A retarding of communication
_ Reductions in group cohesiveness
_ Subordination of group goals to the primacy of infighting between members
o Conflict can bring group functioning to a halt and potentially threaten the group’s
survival.o The demise of an organization as a result of too much conflict is not as unusual as
it might first appear. Creating Functional Conflict
o If managers accept the interactionist view toward conflict, they encourage
o Creating functional conflict is a tough job, particularly in large American
corporations.o A high proportion of people who get to the top are conflict avoiders.
o At least seven out of ten people in American business hush up when their opinions are at odds with those of their superiors, allowing bosses to make mistakes even when they know better.
o Such anti-conflict cultures are not tolerable in today’s fiercely competitive global
economy.o This process frequently results in decisions and alternatives that previously had not
been considered.o One common ingredient in organizations that successfully create functional
conflict is that they reward dissent and punish conflict avoiders.o The real challenge for managers is when they hear news that they do not want to
hear. People Factors That Affect the Development of the Conflict:
o Needs and wants
o Self-concept
o Past experience
o Health 139
Other Factors That Affect the Development of the Conflict:
o Management culture
o Stage of development of the organization
o Organizational structures
o State of business
o Weather
Consequences of Conflict Is Conflict Bad? There are Different Views: Traditional Viewo Conflict is bad
o Same as violence, destruction, irrationality
Human Relations View
o People work together, conflict is inevitable.
o It’s going to happen, so cope with it!
Interactionist View
o Functional conflict is good for business and even encouraged
o Functional vs. dysfunctional conflict
o Functional conflict – that supports and improves the performance of a group.
o Dysfunctional conflict – destructive forms of conflict that disrupt a group’s performance.
Is Conflict Good or Bad?
o Functions of Conflict
o Synergy
o Promotion of change
o Promotes goal achievement
o Dysfunctions of Conflict
o Wasted time & energy
o Stress
o Detracts from the goal of the group
Organizational Conflict Outcomes
o Dysfunctional outcomes
o Diverts energy and resources
o Encourages organizational politics
o Encourages stereotyping
o Weakens knowledge management
o Potential benefits
o Improves decision making
o Strengthens team dynamics
Conflict Resolution Techniques: Positive Consequences Negative ConsequencesLeads to new ideas Diverts energy from work
Stimulates creativity Threatens psychological well-being Motivates change Wastes resources Promotes organizational vitality Creates a negative climate Helps individuals & groups establish identities Breaks down group cohesion Serves as a safety valve to indicate problems Can increase hostility & aggressive behaviors 140o Avoiding
o Withholding or withdrawing
o Smoothing over/reassuring
o Accommodating
o Forcing
o Competing
o Compromising
o Confronting
o Collaborating
o Bargaining/negotiating
o Problem-solving
Three Styles of Resolving Conflict:
Win-Lose: strategies used are power, dominance, forcing.
Lose-Lose: common strategy used is compromise.
Win-Win: strategies used are integration, collaboration, and problem-solving.
Characteristics of High Performing Teams:
o Common Purpose
o Crystal Clear Roles
o Accepted Leadership
o Effective Processes
o Solid Relationships
o Effective Communication
Strategies to Enhance Cooperation and Minimize Competition
o Build team identity
o Build Trust and Share Information
o Ask Questions
o Appeal to Norms of Justice
• Equity
• Equality
• Need
o Fairness-Based Arguments
• Simple
• Clear
• Justifiable
• Popular
• General
Steps to Resolve Conflict:
o Identify the Problem—separate it from the people involved—use cause and effect analysis
o Gather and Analyze Data—fact-based management
o Clarify the Interests of Parties—as opposed to the positions of parties
o Determine Objective Criteria to Evaluate Fairness of Outcomes—boundary conditions
o Identify New and Creative Options—to resolve the conflict
o Choose an Option—using team decision-making tools.
The 3-Cs and 3-Rs of Conflict Resolution areo
Commitment
o Cooperation
o Compromise
o Respect
o Rights
o Responsibility
Learn Cooperation from the Animals:
We can observe from animfal behavior the cooperation, dedication, teamwork and concept of leadership.
nature.
Page 9
TRAINING/LEARNING OF TEAM Training and Learning of TeamThe HRM view of training:
Training refers to the methods used to give new or present employees the skills they need to perform their jobs. Training today plays a key role in the performance management process, which is a key process for employers to ensure that employees are working toward organizational goals. Overall, training has a fairly impressive record of influencing organizational effectiveness, scoring higher than appraisal and feedback, and just below goal setting in its effect onproductivity. o Employees recruited for a flexible working role rather than a ‘job’ and for their ability to learn
rather than for pre-existing skillso Employees expected to re-train periodically
o Training seen as an investment not a cost
o Learning is an ongoing process in the organisation, which is integrated with working
o Performance, appraisal and development are seen as part of a single process
Purpose of Training:
Effective training can raise performance, improve morale, and increase an organization's potential.
o Ensure Team/Organization meets current and future performance objectives by…
o Continuous improvement of performance of individuals and teams, and…
o Maximizing people’s potential for growth (and promotion)
Training and Development Trends:
Although training is often used with development, the terms are not synonymous. Training typically
o Skill requirements will continue to increase
o Workforce will become significantly better educated & more diverse
o Corporate restructuring reshapes businesses
o Technology will revolutionize certain training delivery methods
o The role of training departments will change o More flexible courses aimed specifically at performance improvement
o More organizations will strive to become learning-organizations
o Emphasis on human performance management will accelerate
Investing in people:
“We must transform the perception of training expenditure so that it is no longer seen simply as a cost,
“Sir Dennis Rooke, Chairman British Gas, 1987.
Training Methods:
There are different training methods, which are given below;
o On-the-Job Training (OJT) – means having a person learn a job by actually doing it, and involves the following: 142
o Preparing the learner; presenting the operation; doing a tryout; and followup.
o Apprenticeship Training – is a structured process by which people become skilled workers through a combination of classroom instruction and on-the-job training.
o Informal Learning – involves learning through day-to-day unplanned interactions
between the new worker and his/her colleagues.o Job Instruction Training – refers to teaching a new employee the logical sequence
of steps in a job step-by-step.o Lectures – quick and simple way to provide knowledge to large groups.
o Programmed Learning – is a step-by-step self-learning method: 1) presenting questions, facts, or problems to the learner; 2) allowing the person to respond; and 3) providing feedback on the accuracy of the answers.
o Literacy Training Techniques – Companies are responding the functional illiteracy
by testing job candidates’ basic skills, and setting up basic skills and literacyprograms. o Audiovisual Based Training – Tools include: films, PowerPoint presentations,
video conferencing, audiotapes, and videotapes.o Simulated Training – is a method in which trainees learn on the actual or simulated equipment they
will use on the job, but are actually trained off-the job.o Computer-Based Training – is where the trainee uses computer-based and/or DVD
systems to increase his/her knowledge or skills. CBT programs have real advantages including reducing learning time, cost effectiveness once designed and produced, instructional consistency, mastery of learning, increased retention, and increased trainee motivation.o Electronic Performance Support Systems (EPSS) – are sets of computerized tools and
displays that effectively automate and integrate training, documentation, and phone support, thus enabling individuals to provide support that’s faster, cheaper, and more effective than the traditional methods.o Distance and Internet-Based Training – Distance learning methods include traditional
paper-and-pencil correspondence courses, as well as Tele-training, videoconferencing, and Internet-based classes.o Tele-training – where a trainer in a central location teaches groups of
employees at remote locations via television hookups.o Videoconferencing – allows people in one location to communicate live
via a combination of audio and visual equipment with people in different locations–another city or country or with groups in several cities.o Training via the Internet – Internet based learning programs are
increasingly popular. Some companies simply let their employees take online courses offered by online course providers while others use their intranets to facilitate computer-based training. Learning Principles
o Participation
o Repetition
o Relevance
o Transference
o Feedback
Maximizing Learning: Selecting the Stage for Learningo Provide clear task instructions
o Model appropriate behavior
Increasing Learning during Training
o Provide for active participation
o Match training techniques to trainees self-efficacy
o Ensure specific, timely, diagnostic, and practical feedback
o Provide opportunities for trainees to practice new behavior
Maintaining Performance after Training
o Develop learning points to assist knowledge retention
o Set specific goals
o Identify appropriate re-enforcers
o Teach trainees self-management skills.
Following up on Training
o Evaluate effectiveness
o Make revisions as needed.
Models of learning:
o Associative learning: stimulus/response
o Cognitive learning: problem solving
o Social learning: watching others
o Experiential learning: learning by doing
Phases of Learning Cycles Understand and frame problemo Create a shared understanding
o What is the problem (or opportunity)?
o What are we trying to do?
o How are we going to do it?
o Starts out being general but becomes more defined as you proceeds
Plan
Teams plan actions to produce learning by answering
o What don’t we know that we need to know?
o What actions can we take between now & our next meeting to find out what we need to know?
o How can we verify that what we are assuming is actually true?
Team Learning Record What we Know? (Facts) What we Think We Know? (Assumption) What we Don’t Know? (Question to be answered) ActKey to learning is action!
o Test assumptions
o Experiment
o Gather new information
o Try out hunches Only by acting do teams have the opportunity to learn 144
Action Plan for Team Learning What Needs To Be Done? BY Whom? By When? Reflect and Learno Really when team learning occurs
o Teams need to slow down, reflect on what has happened and capture lessons learned
o Must occur
• In a spirit of openness
• Not in a climate of self-protection or criticism
Assessing Team Learning
o Speed
o Number of learning cycles should be completed.
o The more cycles completed, the more learning that takes place.
o Depth
o Degree to which teams “reframe” their understanding of the original problem.
o Breadth (Impact)
o The impact of the results produced by the team.
o Degree to which other projects, functional areas, or the organization as a whole is influenced.
To Motivate Followers Leaders Must:
o Set clear standards and goals so that the employee will take more interest.
o Expect the best from employee.
o Pay attention towards employees.
o Personalize rewards and recognition. It will enhance organization performance.
o Tell a story about winning organization etc.
o Celebrate ceremonies together.
o Be a role model for employee.
Factors Affecting Teamwork
o Common purpose
o Mutual respect
o Good communication
o Good leadership
o Understanding own role
o Understanding role of other team members
o Ability to shape role
boundaries when neededo Shared responsibility
o Common “language”
o Professional culture
Learning Team Assumptions
o Every member’s participation is essential to the team’s success
o Members’ roles are fluid
o Authority is shared
o Information is freely shared with the team
o Every team member has something to learn and something to teach.
o Members don’t know precisely what they will learn or what they will teach
o Team goals include performance and learning expectations 145
Key Characteristics of Successful Learning Teams
o Clear (and shared) sense of purpose
o Good communication
o Freely shared information
o Shared leadership
o Interdependence of team members
o Utilization of members’ strengths
o Mutual encouragement of risk taking
o Adaptive – able change/modify plans when new information and/or circumstances emerge
o Pride in team identity
Team Learning
o Continuous improvement process
o How team resolves conflict
o How the team handles diversity
o Harness team creativity
Page 10
LEARNING ORGANIZATION Learning Organization?“A learning organization is one in which people at all levels, individually and collectively, are continually increasing their capacity to produce results they really care about”. Learning organization is Creating, acquiring, interpreting, transferring, and retaining knowledge. Purposefully modifying its behavior to reflect new knowledge and insights. “Learning Organization” is a Hot Topic:
Do one thing. Search for Learning Organization and fill the following.
o Google search yields ------- hits
o Amazon search yields ----- books
o Harvard Business Review has published----- articles
Important of Leaning Organization:
“The organizations that will truly excel in the future will be the organizations that discover how to tap
– Peter Senge
“The rate at which organizations learn may become the only sustainable source of competitive
– Peter Drucker
“The need for learning organizations is due to the world becoming more complex, dynamic and
– Gary Ahlquist
Peter Drucker – “The Information Age”
Competitive advantage is created through “information-based organizations”
o Four Critical Areas:
o Develop rewards, recognition and career opportunities that stimulate information sharing.
o Create a unified vision of how the organization will share information.
o Create the management structure that enables cross-boundary information sharing.
o Ensure the continuous supply and training of staff and volunteers that can use the information.
Peter Senge – “The Fifth Discipline”
“Learning organizations are where people continually expand their capacity to learn”.
o “Five disciplines are key to achieving an effective learning organization”.
o Personal Mastery – enhancing ability to be objective.
o Mental Models – continually scrutinizing our assumptions and picture of the world.
o Shared Vision – creating a new picture for the future.
o Team Learning – creating the capacity to “think together”.
o Systems Thinking – knowledge and tools that allow people to see inter-relationships.
Daniel Tobin’s Five Principles of the Learning Organization
o Everyone is a learner.
o People learn from each other.
o Learning enables change.
o Learning is continuous. 147
o Learning is an investment, not an expense
Critical Tasks: A learning organization tries to do six things …
o Collect intelligence about the environment.
o Learn from the best practices of other organizations.
o Learn from its own experiences and past history.
o Experiment with new approaches.
o Encourage systematic problem solving.
o Transfer knowledge throughout the organization.
Levels of Learning
Managers/leaders need to encourage learning at four levels:
o Individual
o Group
o Organizational
o Inter-organizational The Basis of the Learning Organization Strategy need to be
o Transfer Knowledge, not just information.
o Knowledge leads to better, safer decisions.
o Better-informed.
o Knowledgeable.
o Wiser decisions. Organizations Must Learn Faster & Adapt to the Rapid Changes in the Environment otherwise they will be history.
The Bottom Line: Any organization that has a culture and structure that promotes learning at all
levels to enhance its capabilities to produce, adapt and shape its future.A Litmus Test Does our organization:o Pursue a defined learning agenda?
o Avoid repeated mistakes?
o Capture critical knowledge before key people leave?
o Act on what it knows?
o Encourage Learning
o Encourage Risk taking
o Empower employees
The Learning Organization: Handling Knowledge & Modifying Behavior:
“A Learning Organization is an organization that actively creates, acquires, and transfers knowledge
Note the three parts
o Creating and Acquiring Knowledge
o Transferring Knowledge
o Modifying Behavior
Learning Strategies
There are two principal types of organizational learning strategies:
1. Exploration: members search for and experiment with new kinds or forms of organizational activities and procedures. 148
2. Exploitation: members learn ways to refine and improve existing organizational activities.
The ‘Ideal’ Learning Organization
o Communications
o Work relations
o Willingness to change
o Leadership
o Opportunities to learn
Communications:
o Encourage free expression of opinions.
o Establish good and open communication among all parts of the organization.
o Develop better communications with the external environment.
Work Relations
o Friendly work relations
o Include staff in decision making
o Cooperate with others
o Clear statements of responsibilities
o Let talent be recognized and fostered
o Mutual respect for others
Willingness to Change
o Staff encouraged to innovate
o Staff encouraged to be proactive in regard to change
o Establish dynamic mechanisms for change
o Make sufficient resources available to support change
Leadership
o Share a common vision and clear policies
o Provide encouragement and support for staff
o Empower staff to take responsibility in relation to their work
Opportunities to Learn
o Encourage personal growth and personal mastery
o Encourage team work
o Provide opportunities for staff to develop effective problem solving strategies
o Become involved in the broader society
o Be willing to learn outside your area of specialization
o Encourage honest evaluation
The Knowledge Management Cycle
o Create knowledge
o Capture knowledge
o Refine knowledge
o Store knowledge
o Manage knowledgee
o Disseminate knowledge
What Will a Learning Organization Achieve for You?
o Develop effective leadership skills
o Gain skills in working as a team
o Improve professional development
o Understand change management skills
o Overcome staff inertia
o Link theory and practice to solve organizational problems
o Create a non-threatening environment 149
Through learning, we:
o Re-create ourselves
o Become able to do things we never were able to do before
o Re-perceive the world and our relationship to it
o Extend our capacity to create, to be part of the generative process of life
Why is there a Need for a New Managerial Mindset?
o Change
o Globalization
o New technology
o Need for strategic flexibility
o Need for non-linear thinking
o Need to see the whole
o Need for changed mental models
Where Within the Organization Do We Begin the Effort?
Begin at any entry point that has the potential to affect others!
o Top management
o Human Resources Department
o Joint management-union initiative
o Task Forces
o Focus on one of the key organization’s issues
o Start with one department
2. How Do We Successfully Continue the Transformation?
o Establish a strong sense of urgency
o Create the vision
o Communicate & practice the vision
o Remove obstacles that prevent others from acting on the new vision
o Create short-term wins
o Consolidate progress achieved & push for continued movement
o Anchor changes in the organization’s culture
3. What are the Facilitating Factors that Encourage the Building of a Learning Organization?
o Performance gap
o Concern for movement
o Experimental mindset
o Climate of openness
o Continuous education
o Multiple advocates or champions
o Involved leadership
o Systems perspective
4. How do we maintain the new learning organization?
An example can explain this step.
Caterpillars, Pupas & Butterflies – Transition to a Learning Organization
Learning organizations are where success is more possible, where quality is more assured, & where
energetic & talented people want to be. Best of success in building your learning organization!
This is The Knowledge Era and entry is granted only to those who learn, innovate and implement
Page 11
REWARDING & RECOGNIZING TEAMWORK Turning Individuals into Team PlayersWe have already discussed the importance of right type of team members and their training and learning organization concepts. To day we will focus on third important components of turning individuals into team players the “Reward”. Rewarding or compensation of employees/team members plays important roles in managing a team and performance. Compensating Teams:
An employee's total compensation has three components. The first and the largest element is base
Reward and Recognition Systems
o Team-based reward and recognition systems can promote teamwork
o Focus should be rewarding teams for achieving specific goals
Why People Leave Their Jobs?
o They feel they do not make a difference.
o They do not get proper recognition.
o They are not learning anything new or growing as a person.
o They do not like their coworkers.
o They want to earn more money. People leave organization due to many reasons but one of them might be the improper compensation system.
Compensating Teams: Reasons for tailoring compensation to individuals:o Motivation comes from within the individual as opposed to the group.
o The development of skills and behaviors is an individual undertaking.
o Fairness in dealing with teams does not mean equal pay for all.
o Team compensation is not a payoff but a means of nurturing behavior that benefits the team.
Rewards and other Employee Behaviors
Starting from attracting the good team members/employees to retain every thing is revolving on the
Objectives of Reward Systems
o Attraction and retention (employees compare to other firms in the market)
o Motivating performance (contingent on expectancy & equity)
o Getting employees to gain skills and knowledge
o Reinforce the organization’s culture 151
o Not cost the firm too much!!
Designing Rewards
o Always remember your basic motivational theories
o Options for reward systems
o Objectives of reward systems
o How rewards impact organizational effectiveness
o Implementing a reward system
o Appropriate rewards practices sometimes vary between countries
Individual or Team Rewards? Individual rewardso fosters independent behavior
o may lead to creative thinking and novel solutions
o encourages competitive striving within a work team
Team rewards
o emphasize cooperation & joint efforts
o emphasize information sharing Both have same purpose.
Types of Team Pay
o Incentive pay
o Recognition
o Profit sharing
o Gain sharing
Variable Pay (Incentive Pay):
There are several plans that can be used: Merit pay, bonus programs, and awards. Advantages of individual-based pay-for-performance plans include rewarded performance is likely to be repeated, financial incentives can shape an individual's goals, they help the firm achieve individual equity, and they fit in with an individualistic culture. Disadvantages include they may promote single mindedness; employees do not believe pay and performance are linked, they may work against achieving quality goals, and they may promote inflexibility. Variable pay fluctuates according to some pre-established criterion. For select employee groups, such as sales, variable pay can be as high as 100 percent. The higher the form of variable pay, the more risk sharing there is between the employee and the firm. Executives and sales personnel are usually treated very differently than other types of workers in pay-for-performance plans. A number of plans are used to link executives' pay to a firm's performance, but there is little agreement on which is best. Sales professionals may be paid in the form of straight salary, straight commission, or a combination plan. The relative proportion of salary versus incentives varies widely across firms.
Guidelines for Variable Team-Based Pay:
o Tie rewards to performance
Make sure employee has control
o Balance team & individual pay.
o Make sure team compensation system consistent with rest of organization
o Make it clear who is eligible
o How to divide it up?
o Decide on compensation criteria (pay for bottom line results? Contribution? Behavior? Attitude?)
o Are you rewarding for past or projected performance?
o Develop a budget
o Decide on measurement periods & timing of payout Shorter periods & faster payout motivate more but also increase administrative costs!
o Share financial information with team members.
152 Recognition
Recognition of employee’s efforts is also very important motivational factor and part of reward system.
General Rules:
o Not everyone should get it
o Give in timely manner
o Publicize it
o Tie it to team performance
o Personalize awards
o Nomination should be simple
o Recognize performance linked to org. goals
Gain sharing Plan: A percentage of the value of increased productivity is given to employees
(prearranged formula). These plans reward all workers in a plant or business unit based on the performance of the entire plantor unit. Plant wide plans are generally referred to as gain sharing programs because they return a
portion of the company's cost savings to the workers, usually in the form of a lump-sum bonus. Advantages include eliciting active employee input, increasing the level of cooperation, fewer measurement difficulties, and improving quality. Disadvantages include protection of low performers, problems with the criteria used to trigger rewards, and management-labor conflict.Profit sharing: Corporate profits are distributed to all employees.
This is the most macro type of incentive program and is based on the entire corporation's performance.The most widely used program of this kind is profit sharing which differs from gain sharing in several
important ways: no attempt is made to reward workers for productivity improvements, they are very mechanistic, and typically they are used to fund retirement programs. Advantages of this plan are financial flexibility for the firm, increased employee commitment, and tax advantages. Disadvantages include risk for employees, limited effect on productivity, and long-run financial difficulties. Team-based plans attempt to support other efforts to increase the flexibility of the workforce within a firm. These plans normally reward all team members equally based on group outcomes. The advantages of team-based pay-for-performance plans include they foster group cohesiveness and they facilitate performance measurement. Disadvantages include possible lack of fit with individualistic cultural values, the free-riding effect, social pressures to limit performance, difficulties in identifying meaningful groups, and inter-group competition leading to a decline in overall performance. Team Performance Appraisal
Performance appraisal involves the identification, measurement, and management of human
360-Degree Feedback
360 degree feedback is a tool that gives individuals a clear view of their performance at work. Opinions
Effective Benefit Administration
There are two critical issues in the administration of employee benefits: the use of flexible benefits and
informed of the value of these benefits and are likely to underestimate their worth.
Page 12
MANAGING/LEADING VIRTUAL TEAMS Managing/Leading Virtual TeamA Virtual Team is known as a Geographically Dispersed Team (GDT) – is a group of individuals who work across time, space, and organizational boundaries with links strengthened by webs of communication technology. They have complementary skills and are committed to a common purpose, have interdependent performance goals, and share an approach to work for which they hold themselves mutually accountable. Geographically dispersed teams allow organizations to hire and retain the best people regardless of location. A virtual team does not always mean Tele-workers. Tele-workers are defined as individuals who work from home. Many virtual teams in today’s organizations consist of employees both working at home and small groups in the office but in different geographic locations or during different shits/time. Factors Driving Virtual Organizations
o Organizational structure changing to meet the demands of the fast-paced, dynamic global economy
o Many organizations are moving from a systems-based organizational model to a collaborative, networked organizational model.
o The virtuality of virtual organizations has been described as having two key features:
_ Creation of a common value chain between distinct entities and distributed
_ Information technology (IT) supported business processes (Seiber and Griese, 1997).
Communications in Virtual Organizations
Information technology is a primary mechanism for providing support and control to virtual forms.
Organizational Types
o Permanent Virtual Organizations
o Virtual Teams
o Virtual Projects
o Temporary Virtual Organizations
Types of Teams
o Traditional - Face-to-Face
o Virtual
Virtual Teams
Virtual teams are teams of people who primarily interact electronically and who may meet face-to-face
Why a virtual team?
o Team members may not be physically collocated.
o It may not be practical to travel to meet face-to-face.
o Team members may work different shifts.
o Organization-wide project not in the same location.
o Alliances with organizations.
Different kinds of Virtual Development Multisiteo Large teams in relatively few locations
o Each location develops a subsystem 154
o The leaders of each location meet often
Offshore
o Designers at one location send specifications to production unit at another location
Outsourcing
Distributed
o A team spread over relatively many locations, with relatively few people, per location
Virtual Teams Technology Supporting Virtual Teams Hardwareo Telephones, PCs, modems, Video Conference, communication links, hubs, network
(telephone system) and local area networks Software
o Electronic mail, meeting facilitation software, and group time management systems
Benefits of virtual teams
o People can work from anywhere at anytime.
o People can be recruited for their competencies, not just physical location.
o Many physical handicaps are not a problem.
o Expenses associated with travel, lodging, parking, and leasing or owning a building
may be reduced and sometimes eliminated. o Apply most appropriate resources (from anywhere) to job
o Can schedule to follow-the-sun/around-the-clock
o Can build ongoing relationships/networks across business
o Cost reduction
Downside of virtual teams
o Time zones
o “You can’t see me” attitude
o No constant direction
o Keeping that motivation and commitment
o How do you celebrate a success?
Characterizations of virtual teams (Henery and Hartzler,1998)
o Members are mutually accountable for team results.
o Members are dispersed geographically (nationally or internationally).
o Members work apart more than in the same location.
o The team solves problems and makes decisions jointly.
A successful virtual team
o A unified commitment by all team members
o Defined and agreed roles and responsibilities
o Clear concise deliverables
o Strict meeting schedules
o Effective lines of communication
o Committed, enthusiastic leadership - ALWAYS!
Setting Up Virtual Teams
o Establish communication norms – procedures to reconcile differences in
o Develop templates for using technology -- e.g., store documents on web pages,
expert directories 155o Set procedures, responsibilities
o Establish leadership that provides procedural justice
o Hold an initial face-to-face startup meeting
o Have periodic face-to-face meetings, especially to resolve conflict and to maintain team cohesiveness
o Establish a clear code of conduct and protocols for behavior
o Recognize and reward performance
o Use visuals in communications
o Recognize that most communications will be non-verbal – use caution in tone and language
Success Factors in Virtual Teams
o High levels of trust among team members
o Effective use of technology
o Clear implementation of team concept
o Effective individual performance
Trust
o Effective teamwork depends on trust
o In a virtual environment, trust is more ability/task based than interpersonal relationship based
o Level of member performance over time results in building or denial of trust
Like in case of other team, trust is even more essential in the effectiveness of virtual team.Building Trust Virtually: Establish trust through performance consistency
o Rapid response to team members (return emails, task completion)
o Set strong norms around communication
o Team leader role in reinforcing interactions
Virtual Team Member Competencies:
o Self-disciplined?
o Strong communicator?
o Good collaborator?
o Organized? • Document your work well?
Implementation of Virtual Teams:
o Must set out a clear business reason for the team
o Team must understand its mission/purpose
o Team members must develop a sense of interdependence
o Must have accountability and rewards for team members
Challenges to Virtual Team Success:
o Building trust within virtual teams
o Maximizing process gains & minimizing process losses on virtual teams
o Overcoming feelings of isolation & detachment associated with virtual teamwork
o Balancing technical & interpersonal skills among virtual team members
o Assessment & recognition of virtual team performance
Virtual Team Competencies
o The right technology
o Shared work space & processes
o Established ground rules
o Acceptance of cultural, style & preference differences
o Effective group dynamics
o Clear identity
o Teamwork skills
o Leadership 156
o True trust
Virtual Leadership
Virtual leadership is about how to pull the people on a worldwide assignment together into one
more work in a virtual environment.
Key in Leading a Virtual Team
o Build trust
o Reward and recognize
o Communication
o Motivation
o Commitment
Virtual Team Leadership Competencies
o Make the invisible, visible
o Make the intangible, tangible
o Create & foster a climate of trust
o Establish & constantly model standards of accountability
o Communicate clearly, constantly & effectively within each receiver’s realm
o Delegate responsibilities
Virtual Leadership Key Traits
o Everyone gets core information at the same time.
o Everyone has equal input.
o Everyone's ideas are weighed against the alignment tool, not out of preference.
o Everyone's ideas are never judged or rejected at the onset.
o Everyone has equal opportunity to shine.
o Everyone is rewarded or publicly recognized for contributions to the project.
o The leader socializes equally with people near and far.
o Even appearances or suggestions of favoritism break trust.
Page 13
EFFECTIVE TEAM MEETINGS Team MeetingsTeam meetings keep members informed and provide a forum for problem solving, decision-making, and innovation. Meetings, when productive, are also one of the primary ways to develop team memberrelationships, enthusiasm, and spirit. Effective Meetings at Work: Focused, Crisp and Short
Why Do We Love Meetings?
o Get full attention
o Learn Things
o Uncover Information
o Follow-up questions can be answered right away
o Full Review of material/activities
o Efficient form of decision making
o Accountability
o Opportunity to prepare
Why Do We Hate Meetings?
o Technology is not helping, videoconferencing too expensive, teleconferencing is inadequate
o Virtual teams need better tools
o No clear purpose
o Attendees come unprepared
o Meeting overload
o Outlook/Time Tracker not used consistently
o No agenda
o Too much time wasted
Do We Need to Meet?
o The purpose of a meeting is…… to utilize the talents of all present? Share Info?
o You get feedback from all
o Who decides to meet?
o Who needs to be there?
o Which meetings can we eliminate?
o What are the alternatives to meetings?
Types of Meetings
o Leadership/Management: to review the overall organization performance, setting up new goals and targets, headed by CEO, or Chairman.
o Department Specific: to review the departmental performance, headed by the head of
department.o Project Management: to review the overall project performance, headed by Project Director
or Project Manager. o Other Meetings
o Quarterly Business Review: to review the quarterly progress report of all the
o Client Specific: to meet with specific client/customer to discuss the business matters
etc.o Functional Team: meeting with in the department between different teams exist in one
department.o Special Project: meeting on special project
o Performance Review (1-1): to review the performance
o Others: a number of unscheduled meetings has also arranged on different level of organization. 158
Meeting Techniques:
o Ask yourself, "Is this meeting really necessary?"
o Have a goal for the meeting. What do you want to accomplish?
o Have an agenda with clearly stated items and the amount of time to be allotted each one. Send out the agenda at least one day ahead of the meeting.
o Limit attendance and appoint a leader.
o Stay focused on the agenda. If a new topic is introduced, add it to the list of future agenda items or negotiate with the group if it should be discussed now. Have a clock in the room.
o Strive to get everyone involved in the discussion, avoid domination by one or two members.
o Foster rigorous debate and brainstorming, while respecting each other's opinions.
o Use visual aids. Have a flip chart and use it.
o Keep minutes of the key points raised and actions to be taken, then follow up.
o Do a two-minute evaluation of the meeting. Ask everyone what went well… what could be improved.
Better Meetings
o Preparing for the meeting
• What’s the purpose of the meeting?
• Suggest an agenda
• Send in advance
• Invite revisions
o Listening
• In most cases, spend most of your time on listening.
• Ask questions to guide the meeting and to insure that soft-spoken contributors are heard
• Help moderate the dominating non-contributors
o Concluding
• Summarize key accomplishments of the meeting
• Note next steps
• Assess how you might improve next time
Meeting Roles
o Primary facilitator
• Responsible for organizing the meeting and guiding the execution.
• Writes the agenda describing objective and scope of meeting.
• Distribute the agenda to the meeting participants
o Minute taker
• Responsible for recording the meeting.
• Identifies action items and issues
• Release them to the participants
o Time keeper
• Responsible for keeping track of time
The Meeting Process
o Plan
o Start
o Conduct
o Close
o Follow Up
Planning Meetings
o Objectives
• Idea and purpose of the meeting should clearly define. And conveyed to the all
o Participants and assignments
• Who should attend the meeting? Meeting member with the organization. In case of
• Advance preparation, if any
o Agenda
• Necessary activities related with meeting
• Prioritize the activities.
o Date, Time, and Place
• Optimal time of day, which will be given by the chair of the meeting
• Maximum length of meeting
• Logistics and technology
o Leadership: who will chair the meeting? CEO, departmental heads.
o Written plan
• Advance distribution to attendees of the four items listed above
o The Meeting Process: Planning
• Ensure all team members are aware of meeting time and location – address possible barriers to attendance.
• Reserve meeting room before the meeting.
• Prepare materials for each participant equally.
• Follow-though on commitments made at last team meeting
o Before the Meeting
• Set agenda in advance and distribute: Have a clear agenda -- and stick to it. Watch out for tangents or brainstorming at the wrong times. Keep track of side issues for later discussion
• Confirm attendance or early regrets
• Contribute to agenda in advance
• Prepare your discussion items
• Read draft materials to be discussed
• Bring all relevant materials
• Arrive 5 minutes before meeting
• Identify each type of issue on agenda
• FYI -- Communicate
• BS -- Brainstorming
• PS -- Problem Solving
• DECIDE -- Decision needed
Role of Team Members
• Contribute agenda items
• Contribute to discussions
• Practice & encourage active listening
• Follow through on tasks of Partnership Agreement
• Share appropriate information with co-workers
Tips and Tricks – Before Meeting
• Know your audience/participants
• Know your agenda/topics
• Know the objectives you want to achieve
• Do the homework before meeting
• Know the room/seating arrangements
• Feel good about how you look
• Assign time frames and discussion leader to each item
• Updates on decision taken during previous/last meeting (action taken) 160
The Meeting Process: Start
• Arrive early
• Set up the room
• Greet team members
• Reach consensus on an agenda
• Set or review team rules
• Begin within a few minutes of scheduled start time
The Meeting Process: Conduct
• Cover one agenda item at a time
• Manage discussions
• Maintain focus and pace
• Address and work through conflicts
The Meeting Process: Close
• Summarize decisions
• Review action items & discuss “homework”
• Schedule next meeting(s)
• Evaluate the meeting
• Thank team members
The Meeting Process: Follow Up
• Distribute meeting notes/minutes promptly
• Fill agendas, notes, and other documents
• Follow-through on activities
Meeting Length and Frequency Things to try:• Shorter meetings
• More frequent meetings
• Cut meetings short if necessary, and reconvene later
Meeting Room Facilities Audiovisual_ A computer of the appropriate spec
_ Intranet and internet access
_ A projector/Multimedia
_ Video Conferencing (if required)
_ Seating arrangement should suit the purpose of the meeting
_ Auditorium-style to promote efficient one-way information delivery
_ In the round to encourage cross-team communication
Virtual Team Meetings
• Include all participants as facilitators and discussion initiators
• Ask specifically to each remote member to contribute
• Be sensitive to time zone issues, vary times
• Technology must be the best as possible
_ Video-conferencing, teleconferencing
• Build in social time before and after scheduled work meeting
• Include recognition of key efforts out in all locations
• Schedule special events when teammates get together face to face
Page 14
LEADING TEAMLeading a team is very important. We have discussed different topics regarding leadership and team dynamics. Leading team mean to apply all those concepts, principles, techniques in real world and that has different effects depending upon the type of team and situation.
Attributes of High Performing Teams:
o Performance outcomes
o Specific, shared purpose and vision
o Mutual, internal accountability
o Coordinated, shared work roles
o Inefficiency leading to efficiency
o Extraordinarily high quality
o Creative continuous improvement
o High credibility and trust
o Clarity of core competence
o Participative leadership
o Shared responsibility
o Aligned on purpose
o High communication
o Future focused
o Focused on task
o Creative talents
o Rapid response
Why Work Teams Fail?
o Teams cannot overcome weak strategies and poor business practices.
o Hostile environment for teams.
o Vague or conflicting team assignments.
o Inadequate team skills training.
o Poor staffing of teams.
o Team tries to do too much too soon.
o Too much emphasis on results, not enough on team processes and group dynamics.
o Unanticipated obstacle causes team to give up.
o Resistance to doing things differently.
o Poor interpersonal skills.
o Lack of trust.
Why Do Teams Fail?
o Wrong design
o Leadership misfit
o Internal conflict
o Isolation
o Lack of time
o Excessive member turnover
Leading Teams
Two critical factors play important role in leading teams
o Developing credibility and influence
o Establishing a motivating vision and goals
Developing Credibility
o Demonstrating integrity
o Being clear and consistent
o Creating positive energy
o Building a base of agreement
o Using one-sided and two-sided arguments appropriately
o Encouraging team members to help them personally improve
o Sharing information 162
Team Leadership and Goals (SMART Goals)
o Specific
o Measurable
o Aligned
o Realistic
o Time-bound
Team Membership:
Team members not only need clear goals, they needs roles to help facilitate task accomplishment and
Motivating Individuals
o Listen to people
o What are their interests and goals?
o What are their dreams?
o What are their needs?
o Communicate how doing what you want them to do will help them achieve their goals, dreams and needs
o Make it happen
o Follow-through is critical
Acting as a Leader
o How can understanding acting theory help you to motivate others?
o How can you transform an encounter into motivation?
o How do you “act” as a leader?
Providing Team Leadership
o Leading teams requires new skills
o E.g., patience to share information, trust others, give up authority, and knowing when to intervene
o Team leaders need to focus on two priorities
• Managing the team’s external boundary
• Facilitating the team process.
o Leading teams requires new roles
o Liaisons with external constituencies
o Troubleshooters
o Conflict managers
o Coaches
Leading/Managing Effectively
o Support
o Technology
o Information/Communication System
o Selection of Team Members
o Training/Learning
o Rewards
o Leadership According to contingency approach No “one best way” to Lead. Effectiveness varies depending on the particular situation
Team Leadership Structures
o Traditional
o Participative
o Flat
o Consultant
o Teams need to choose a structure that models how they want to behave
Traditional Model
o Strong leader who directs the actions
o May have little participation or discussion from team
o Separation between leader and other team members 163
Participative Model
o Leader positioned closely to all members
o Short, direct communication
o Direct accountability of the leader to all members
o Dependence on leader on team’s participation
Flat Model
o Emphasizes leader’s role as a working team member
o Leader is an equal to the team, not above
Consultant Model
o Leader is not part of the team and will be nearby to serve as a resource
• Advise team
• Technical Consultant
Leadership Demands and Duties Effective leaders must be:o Director and motivator
o Implementer and innovator
o Mentor and team builder
o Expert and moral force
o Organizer and developer of people
o These challenges bring satisfaction and appreciation
Model the Way Inspire a Shared Vision Challenge the Process• Grab the initiative
• Make challenge meaningful
• Innovate and create
• Look outward for fresh ideas Experiment and take risks by constantly generating small wins and learning from mistakes.
• Initiate incremental steps and small wins
• Learn from mistakes
• Promote psychological hardiness
Enable Others to Act
o Foster collaboration by promoting cooperative goals and building trust.
o Create a climate of trust
o Facilitate positive interdependence
o Support face-to-face interactions
o Strengthen others by sharing power and discretion.
o Ensure self-leadership
o Provide choice
o Develop competence and confidence
o Foster accountability
Leader Actions that Foster Teamwork Own Resources:o Define team mission.
o Develop norm of cooperation.
o Emphasize pride in excellence.
o Model teamwork behavior.
o Consensus decision maker.
o Set performance standards.
o Encourage positive competition.
o Encourage use of jargon.
o Solicit feedback on process.
o Empower, not micromanage.
Structure/Policy
o Open, physical workspaces.
o Team recognition and rewards.
o Initiate ritual, ceremony and tradition.
o Open-book management.
o Select team-oriented members.
o Use appropriate technology to enhance teamwork (i.e., groupware). 164
Leader-Member Exchange:
o Leaders develop different and unique relations with individual team members.
o Leaders do not use the same leadership style with all team members, rather they treat individual team members somewhat differently.
Principles of Leadership Effectiveness:
o Know yourself. You cannot be an effective leader without knowing your own strengths and
o Be a role model
o Learn to communicate with your ears open and your mouth shut.
o Know your team and be a team player.
o Be honest with yourself as well as to others
o Do not avoid risks.
o Believe in yourself.
o Take the offense rather than the defense.
o Know the ways of disagreement and the means of compromise.
o Be a good follower. Effective leaders lead as they would like to be lead.
Effective Leadership
o Look at the task and decides what his/her role is
o Acquire the knowledge to do the job effectively
o Brief others well to do their jobs and what the limits of their authority are
o Delegate decisions and responsibilities where possible
o Are fair and consistent
o Are prepared to accept criticism
o Help others without doing the job for them
o Act as resource people
o Make decisions where necessary without prevarication
o Understand how leadership operates in a group situation
o Are aware of and sensitive to individual needs within the group or team
Leadership Direction
Leaders should not command excellence, they should build excellence
o Involve those participating in developing solution
o Ensure the “6 W’s”
o Who will do what?
o Who does it involve?
o What is going to be done?
o When does it start?
o When does it end?
o Where will it take place?
o How will it take place?
o Why should it be done?
o What will happen if it’s not done?
o Effective execution
o Pre-determine task
o Supporting structure in place
o Allocate necessary resources
Page 15
REVIEW-IILecture 39 is a second review and is mainly to review what ever we covered so far from lectures 25 to 38. Second part of our course was mainly focusing the team dynamics part. We tried to understand group, team and their dynamics. We started our lecture number 25 with group dynamics.
Group - two or more people with common interests or objectives.
Team - a small number of people with complementary skills who are committed to a common mission,
performance goals, and approach for which they hold themselves mutually accountableA team is a formal work group in which there is a high level of interaction among group members who
work intensely together to achieve a common goal. A group whose members work intensely with each other to achieve a specific, common goal or objective is known as Team. All teams are groups but not all groups are teams.– Teams often are difficult to form.
– It takes time for members to learn how to work together.
A group/team is effective when it satisfies three criteria:
o Production output: the product of the group’s work must meet or exceed standards of quality and quantity
o Member satisfaction: membership in the group must provide people with short-term
satisfaction and facilitate their long-term growth and developmento Capacity for continued cooperation: how the group completes a task should maintain or
enhance the group’s ability to work together; groups that don’t cooperate cannot survive Groups versus Teams:
_ All teams are groups
_ Some groups are just people assembled together
_ Teams have task interdependence whereas some groups do not..
Why Rely on Teams? Because as compared with individuals working alone, teams tend to
o Make better decisions
o Make better products and services due to more knowledge and expertise We also discussed different development stages of group formation.
Stages of Group Development: five stage of group development are
o Forming
o Storming
o Norming
o Performing
o Adjorning
Types of Teams
o Problem-Solving
o Self-Managed
o Cross-Functional
o Virtual
Benefits of Teams
Synergy: The creation of a whole greater than or equal to the sum of its parts.
Why Teams Are Good for Organizations
o More resources for problem solving
o Improved creativity and innovation
o Improved quality of decision making
o Greater commitments to tasks
o Increased motivation of members
o Better control and work discipline
Characteristics of High Performance Teams
o Clear goals
o Results-driven structure
o Competent team members
o Unified commitments
o Collaborative climate
o Standards of excellence
o Leadership
Team: A team is a formal work group in which there is a high level of interaction and interdependence
among group members who work intensely together to achieve a common goal.Teamwork: is the process of people actively working together to accomplish common goals.
Advantages and disadvantages of having team. Advantages Disadvantages
o Wider range of knowledge, expertise
o Effective way to build consensus
o Effective way to communicate complex information
o Blocking
o Dominant people
o Status differential
o Groupthink
How Do We Measure Team Effectiveness? Effective teams have confidence in themselves and
believe they can succeed—this is team efficacy. Success breeds success. Management can increase team efficacy by helping the team to achieve small successes and skill training. Small successes build team confidence. The greater the abilities of team members, more the likelihood that the team will develop confidence and the capability to deliver that confidence. We can measure the team effectiveness by measuring their…o Productivity
o Cohesion
o Learning/ growth & development
o Integration with the rest of the organization. Leaders need to put extra efforts to convert individuals into a performing team.
Turning Individuals into Team Players:
It starts with the selection of right type of people, training them and linking the performance with
“NONE OF US IS AS SMART AS ALL OF US”
o When teams operate effectively, they can solve more problems, make better decisions and be
o “Team are unique; dynamic, complex and ever changing.” - Ken Blanchard, author of “the one
minute manager”.Leadership success requires: An understanding of group behavior. The ability to tap the constructive
power of teams Team Building
167
o Get the right people.
o Determine the Challenge.
o Prepare the Team Leader.
o Train.
o Add value.
o See the Big picture.
Build and Support the Team
o Leadership Skills
o Team Building Strategies
o Team Logistics
Team Building:-The Team Leader’s Responsibility A good team leadero Fosters communication among team members
o Seeks to build bonds among team members (work together, meet together, get to know each other)
o Creates positive environment for collective problem solving and support; creates
atmosphere in which differing opinions are valued but in which clear decisions can be reachedo Is alert to cliques, bickering, etc. and acts to address them; maintains atmosphere in which
sexual, racial, ethnic, national or other harassment is not acceptableo Monitors individual staff members for signs of stress and provides basic support
o Models good individual stress management practices
o Seeks to base expatriate/staff interactions on mutual respect, transparency, and partnership
Team Building:-The Organizational Responsibility
o The Organization identifies team-building skills as an essential qualification for prospective
o The Organization trains staff and managers in team work skills (e.g., conflict management)
o The Organization helps build team cohesion (e.g., through common experiences such as safety and security training)
o The Organization regularly reviews team functioning and has policies for addressing the
problems of dysfunctional teams and of staff members who have difficulty functioning in their team Strategies for Team Building
o Establish common goals
o Understand each others role in the Team
o Find occasions to celebrate
o Recognise effort
o Improve communication
Factors Affecting Teams
o Work Design
o Team Composition
o Context
o Process
Team Based Organization
Based on the belief that organizational goals will be achieved not by individuals working together
Characteristics of Traditional Vs Team-based Organizations Traditional Team-basedIndividual command structures Collective structures
Manager controls Team monitors Vertical hierarchy Horizontal integration Stability and uniformity Change and flexibility One best way to organize Organization-specific Managers manage Self-managing teams Benefits of Teams in Organizations:
_ Enhanced Performance: Teams may take many forms, i.e. including improved productivity,
_ Employee Benefits: Teams always provide the sense of self-control, human dignity,
identification with work, and sense of self-worth and self-fulfillment for which current workers seem to strive._ Reduced Costs: Through empowered teams, an organization can reduce scrap, make fewer
errors, file fewer worker compensation claims, and reduce absenteeism and turnover. They resulting in significant cost reductions._ Organizational Enhancements: Teams improvements in team results a move from a
hierarchically based, directive culture to a team-based culture include increased innovation, creativity, and flexibility in the organization. Benefits of Team-based Organization:
Profitability and long term viability organization is increased due to its working as team based
o Efficient Process
o Flexible Response to change
o Improve Effectiveness
o Reduce Cost
o Increase Innovation
o Customer Involvement
o Employee commitment
o Skill utilization
Possible Pitfalls in the Introduction of Team Based Organization (TBO)
o Introducing teams regardless of need
o Introducing teams without changing systems
o Failing to train for TBO
o Not providing expert support
o Failure of communication within, with and between teams
o Failure to establish and support TBO objectives
Roles of a Leader in the Team-Based Organization
o Defining the team’s mission
o Building trust and inspiring teamwork
o Coaching team members and group members toward higher levels of performance
o Serving as a model of teamwork, including power sharing
o Facilitating and supporting team’s decisions
o Expanding the team’s capabilities
o Creating a team identity
o Emphasizing pride in being outstanding
o Anticipating and influencing change
o Inspiring the team toward higher levels of performance 169
o Enabling and empowering group members to accomplish their work
o Selecting team-oriented members
o Using technology that facilitates teamwork
Decision Making and Decision Making Process:
A decision is a choice made from two or more alternatives. The decision-making process is
Problem Solving Vs Decision Making
o Problem solving: finding the root cause of a deviation (cause analysis)
o Decision making: choosing from alternative courses of action (choice analysis) Problem solving --------------- Decision making
Types of Decisions:
Programmed Decisions: A decision that is a fairly structured decision or recurs with some frequency
Non-programmed decisions: A decision that is relatively unstructured and occurs much less often than
a programmed decision. Example: Choosing a vacation destination.Intuitive decision making: Managers also regularly use their intuition. Intuitive decision making is a
subconscious process of making decisions on the basis of experience and accumulated Judgment.o Making decisions on the basis of gut feeling doesn’t necessarily happen independently of rational
analysis; the two complement each other.o Although intuitive decision making will not replace the rational decision-making process, it does
play an important role in managerial decision making Roadblocks to Good Decision Making
o Human Cognition
o Our mental ability to comprehend and understand something
o Human Perception
o Difficulty isolating problems
o Tend to think of only narrow range of possible solution
o Human Bias
o Tendency to shape responses based on stereotypes, memory, and current position
Decision-Making and Technology: In today’s completive world Information technology can also help
and support the decision-making. Different decision making tools are available for manager and leaders to use in practical life.Team Decision Making: Use Individual Decision Making When:o You have the information to make a good decision
o The situation is urgent
o Subordinates are already committed or their commitment doesn’t matter 170
Use Team/Group For Decision Making When:
o No one knows the answer or the expertise is in the group
o You want to increase the commitment of subordinates
o The situation is not urgent in the sense that it requires an immediate response
o You, as manager/leader, can live with choice
Group/Team Decision Making Advantages Disadvantageso More information & knowledge are
Availableo More alternatives are likely to be
generated.o More acceptance of the final decision
is likelyo Enhanced communication of the
decision may result better decisionso The process takes longer, so it is more
costlyo Compromise decisions due to
indecisiveness may emergeo One person may dominate the group
Groupthink may occur Methods of Group/Team Decision Making (Johnson & Johnson, 1991)
o Decision by authority without discussion
o Expert member
o Average of member’s opinions
o Decision by authority after discussion
o Majority control
o Minority control
o Consensus
Decisions made in groups can be made by one of four main methods.
o Unilaterally by an individual
o By simple majority vote
o By consensus – everyone agreeing to support the conclusion
o Subgroup of team
Which one is the best? There is no “best”. Different types fit best for different situations.
Remember. Some decisions will be good! Some decisions will be bad! BUT You will learn something from every decision you make!!! Communication is the process by which a person, group, or organization (the sender) transmits some type of information (the message) to another person, group or organization (the receiver) using some medium (Channels).
Communication encompasses both interpersonal communication (between two or more people) and
organizational communication (all the patterns, networks, and system of communication within an
organization).Communication and Leadership: The importance of effective communication cannot be
overemphasized because everything a manager/leader does involves communicating. Effective leaders are also effective communicators. To be effective, the leader must synchronize verbal and nonverbal behavior Technology has had also a meaningful impact on leaders’ communication and coordination.o Effective leaders are also effective communicators
o To be effective, the leader must synchronize verbal and nonverbal behavior
o Technology has had a meaningful impact on leaders’ communication and coordination
Guidelines to Team Communication:
o Be specific: include facts and details to avoid being unclear
o Be accurate: as much as possible be sure that the information you are giving is true and reliable.
o Be honest: be truthful with those you are communicating with and do not use questionable information.
o Be logical: make sure messages are easy to follow
o Be complete: give all needed information in regards to your ideas.
o Be concise: be brief- not unnecessarily wordy.
o Be relevant: stay on task and give information that is needed.
o Ask for feedback: have recipients give comments on information.
Responsibilities of Team Members
o Open minded
o Listen to what is being said
o Give feedback to what is being said
o Make sure all team members have a chance to communicate their ideas.
o If decisions need to be made discuss pros and cons, and decide best option for TEAM.
o Take ownership for what you say.
o Take responsibility for making sure you are heard and understood.
o Use terminology and examples that your audience understands.
o Be aware of body language.
o Always work to maintain the trust and confidence of those with whom you are communicating/working.
Conflict in Team: The process in which one party perceives that its interests are being opposed or
negatively affected by another party.o Perceived by the parties
o Parties are in opposition to one another
o At least one party is blocking the goal attainment of the other party
o Goals can be tangible or psychological
o Money
o Task Achievement
o Happiness There are several common themes which underlie most definitions:
o The parties to it must perceive conflict.
o Commonalties in the definitions are opposition or incompatibility and some form of interaction. Many people and organizations view conflict as a negative, or something to be avoided. Yet conflict, differences, or disagreements are a natural result of people working together. Also, without conflict, teams can become complacent and not perform at optimum levels. The challenge then becomes, how should the team be prepared for this stage of their existence, and how should the team leader facilitate through it?
Sources of Conflict
o Goal Incompatibility
o Different Values and Beliefs
o Task Interdependence
o Scarce Resources
o Ambiguity
o Communication Problems
o Perceived personal threats
o Perceived threat to the organization
o Personal, social, cultural differences
o Others... 172
Types of Conflict:
o Emotional – is personal, defensive, and resentful. Also known a A-type or affective.
o Cognitive - is largely depersonalized, it consists of argumentation about the merits of ideas, plans, and projects. Known as C-type. Often an effective stimulate to creativity. We can have a different type of conflict classification with reference to organizational setup.
o Task conflict: Conflict over content and goals of the work. Low to moderate levels can be
acceptableo Relationship conflict: Conflict based on interpersonal relationships. Almost always
dysfunctionalo Process conflict: Conflict over how work gets done. Low levels can be acceptable
We can also have relationship conflict (A-type conflict) and task conflict (C-type conflict). We need to put efforts for transforming relationship into task conflict. This can be done through.
o Agree on common goal or shared vision
o Create a place for conflict and get it out in the open
o Training in task conflict We can also have conflicts known as;
Intrapersonal:
o A person having tension or stress within…
o often due to over competing roles
Interpersonal:
o between 2 or more people,
o disagreement, values or styles don’t match
o Miscommunication occurs
Intra-group:
o Arises within one group
Inter-group:
o arises between groups over issues/goals/solutions
The Conflict Process: Four Stageso Potential opposition
o Cognition and personalization
o Behavior
o Outcomes
Steps to Resolve Conflict
o Identify the Problem: separate it from the people involved—use cause and effect analysis
o Gather and Analyze Data: fact-based management
o Clarify the Interests of Parties: as opposed to the positions of parties
o Determine Objective Criteria to Evaluate Fairness of Outcomes boundary conditions
o Identify New and Creative Options: to resolve the conflict
o Choose an Option: using team decision-making tools.
People Factors That Affect the Development of the Conflict:
o Needs and wants
o Self-concept
o Past experience
o Health 173
Other Factors That Affect the Development of the Conflict:
o Management culture
o Stage of development of the organization
o Organizational structures
o State of business
o Weather
Consequences of Conflict Conflict Resolution Techniques:o Avoiding
o Withholding or withdrawing
o Smoothing over/reassuring
o Accommodating
o Forcing
o Competing
o Compromising
o Confronting
o Collaborating
o Bargaining/negotiating
o Problem-solving
Three Styles of Resolving Conflict:
Win-Lose: strategies used are power, dominance, forcing.
Lose-Lose: common strategy used is compromise.
Win-Win: strategies used are integration, collaboration, and problem-solving.
Characteristics of High Performing Teams:
o Common Purpose
o Crystal Clear Roles
o Accepted Leadership
o Effective Processes
o Solid Relationships
o Effective Communication
The 3-Cs and 3-Rs of Conflict Resolution areo
Commitment
o Cooperation
o Compromise
o Respect
o Rights
o Responsibility
Training and Learning of Team
The HRM view of training: Training refers to the methods used to give new or present employees the
Positive Consequences Negative Consequences
Leads to new ideas Diverts energy from work
o Employees recruited for a flexible working role rather than a ‘job’ and for their ability to learn
rather than for pre-existing skillso Employees expected to re-train periodically
o Training seen as an investment not a cost
o Learning is an ongoing process in the organisation, which is integrated with working
o Performance, appraisal and development are seen as part of a single process
Purpose of Training:
Effective training can raise performance, improve morale, and increase an organization's potential.
o Ensure Team/Organization meets current and future performance objectives by…
o Continuous improvement of performance of individuals and teams, and…
o Maximizing people’s potential for growth (and promotion)
Learning Principles
o Participation
o Repetition
o Relevance
o Transference
o Feedback
Phases of Learning Cycles Understand and frame problemo Create a shared understanding
o What is the problem (or opportunity)?
o What are we trying to do?
o How are we going to do it?
o Starts out being general but becomes more defined as you proceeds
Key Characteristics of Successful Learning Teams
o Clear (and shared) sense of purpose
o Good communication
o Freely shared information
o Shared leadership
o Interdependence of team members
o Utilization of members’ strengths
o Mutual encouragement of risk taking
o Adaptive – able change/modify plans when new information and/or circumstances emerge
o Pride in team identity
Learning Organization?
“A learning organization is one in which people at all levels, individually and collectively, are
“Learning Organization” is a Hot Topic: Levels of LearningManagers/leaders need to encourage learning at four levels:
o Individual
o Group
o Organizational
o Inter-organizational The Basis of the Learning Organization Strategy need to be
o Transfer Knowledge, not just information.
o Knowledge leads to better, safer decisions.
o Better-informed.
o Knowledgeable.
o Wiser decisions. Organizations Must Learn Faster & Adapt to the Rapid Changes in the Environment otherwise they will be history.
The Bottom Line: Any organization that has a culture and structure that promotes learning at all
levels to enhance its capabilities to produce, adapt and shape its future. The Knowledge Management Cycle
o Create knowledge
o Capture knowledge
o Refine knowledge
o Store knowledge
o Manage knowledgee
o Disseminate knowledge
What Will a Learning Organization Achieve for You?
o Develop effective leadership skills
o Gain skills in working as a team
o Improve professional development
o Understand change management skills
o Overcome staff inertia
o Link theory and practice to solve organizational problems
o Create a non-threatening environment
Through learning, we:
o Re-create ourselves
o Become able to do things we never were able to do before
o Re-perceive the world and our relationship to it
o Extend our capacity to create, to be part of the generative process of life
Why is there a Need for a New Managerial Mindset?
o Change
o Globalization
o New technology
o Need for strategic flexibility
o Need for non-linear thinking
o Need to see the whole
o Need for changed mental models
Building, Maintaining & Sustaining the Learning Organization Reward and Recognition Systemso Team-based reward and recognition systems can promote teamwork
176o Focus should be rewarding teams for achieving specific goals
Why People Leave Their Jobs?
o They feel they do not make a difference.
o They do not get proper recognition.
o They are not learning anything new or growing as a person.
o They do not like their coworkers.
o They want to earn more money. People leave organization due to many reasons but one of them might be the improper compensation system.
Compensating Teams: Reasons for tailoring compensation to individuals:o Motivation comes from within the individual as opposed to the group.
o The development of skills and behaviors is an individual undertaking.
o Fairness in dealing with teams does not mean equal pay for all.
o Team compensation is not a payoff but a means of nurturing behavior that benefits the team.
Rewards and other Employee Behaviors
Starting from attracting the good team members/employees to retain every thing is revolving on the
Objectives of Reward Systems
o Attraction and retention (employees compare to other firms in the market)
o Motivating performance (contingent on expectancy & equity)
o Getting employees to gain skills and knowledge
o Reinforce the organization’s culture
o Not cost the firm too much!!
Designing Rewards
o Always remember your basic motivational theories
o Options for reward systems
o Objectives of reward systems
o How rewards impact organizational effectiveness
o Implementing a reward system
o Appropriate rewards practices sometimes vary between countries
Individual or Team Rewards? Individual rewardso fosters independent behavior
o may lead to creative thinking and novel solutions
o encourages competitive striving within a work team
Team rewards
o emphasize cooperation & joint efforts
o emphasize information sharing 177 Both have same purpose.
Types of Team Pay
o Incentive pay
o Recognition
o Profit sharing
o Gain sharing A Virtual Team is known as a Geographically Dispersed Team (GDT) – is a group of individuals who work across time, space, and organizational boundaries with links strengthened by webs of communication technology. They have complementary skills and are committed to a common purpose, have interdependent performance goals, and share an approach to work for which they hold themselves mutually accountable. Geographically dispersed teams allow organizations to hire and retain the best people regardless of location. A virtual team does not always mean Tele-workers. Tele-workers are defined as individuals who work from home. Many virtual teams in today’s organizations consist of employees both working at home and small groups in the office but in different geographic locations or during different shits/time.
Factors Driving Virtual Organizations
o Organizational structure changing to meet the demands of the fast-paced, dynamic global economy
o Many organizations are moving from a systems-based organizational model to a collaborative, networked organizational model.
o The virtuality of virtual organizations has been described as having two key features:
_ Creation of a common value chain between distinct entities and distributed
_ Information technology (IT) supported business processes (Seiber and Griese, 1997).
Communications in Virtual Organizations
Information technology is a primary mechanism for providing support and control to virtual forms.
Organizational Types
o Permanent Virtual Organizations
o Virtual Teams
o Virtual Projects
o Temporary Virtual Organizations
Why a virtual team?
o Team members may not be physically collocated.
o It may not be practical to travel to meet face-to-face.
o Team members may work different shifts.
o Organization-wide project not in the same location.
o Alliances with organizations.
Benefits of virtual teams
o People can work from anywhere at anytime.
o People can be recruited for their competencies, not just physical location.
o Many physical handicaps are not a problem.
o Expenses associated with travel, lodging, parking, and leasing or owning a building may be reduced and sometimes eliminated.
o Apply most appropriate resources (from anywhere) to job
o Can schedule to follow-the-sun/around-the-clock
o Can build ongoing relationships/networks across business
o Cost reduction
Downside of virtual teams
o Time zones
o “You can’t see me” attitude
o No constant direction
o Keeping that motivation and commitment
o How do you celebrate a success?
Characterizations of virtual teams (Henery and Hartzler,1998)
o Members are mutually accountable for team results.
o Members are dispersed geographically (nationally or internationally).
o Members work apart more than in the same location.
o The team solves problems and makes decisions jointly.
A successful virtual team
o A unified commitment by all team members
o Defined and agreed roles and responsibilities
o Clear concise deliverables
o Strict meeting schedules
o Effective lines of communication
o Committed, enthusiastic leadership - ALWAYS!
Setting Up Virtual Teams
o Establish communication norms – procedures to reconcile differences in communication
o Develop templates for using technology -- e.g., store documents on web pages, expert
directorieso Set procedures, responsibilities
o Establish leadership that provides procedural justice
o Hold an initial face-to-face startup meeting
o Have periodic face-to-face meetings, especially to resolve conflict and to maintain team cohesiveness
o Establish a clear code of conduct and protocols for behavior
o Recognize and reward performance
o Use visuals in communications
o Recognize that most communications will be non-verbal – use caution in tone and language
Success Factors in Virtual Teams
o High levels of trust among team members
o Effective use of technology
o Clear implementation of team concept
o Effective individual performance
Trust
o Effective teamwork depends on trust
o In a virtual environment, trust is more ability/task based than interpersonal relationship based
o Level of member performance over time results in building or denial of trust
Like in case of other team, trust is even more essential in the effectiveness of virtual team.Building Trust Virtually: Establish trust through performance consistency
o Rapid response to team members (return emails, task completion)
o Set strong norms around communication
o Team leader role in reinforcing interactions
Virtual Team Member Competencies:
o Self-disciplined?
o Strong communicator?
o Good collaborator?
o Organized?
o Document your work well? 179
Implementation of Virtual Teams:
o Must set out a clear business reason for the team
o Team must understand its mission/purpose
o Team members must develop a sense of interdependence
o Must have accountability and rewards for team members
Challenges to Virtual Team Success:
o Building trust within virtual teams
o Maximizing process gains & minimizing process losses on virtual teams
o Overcoming feelings of isolation & detachment associated with virtual teamwork
o Balancing technical & interpersonal skills among virtual team members
o Assessment & recognition of virtual team performance
Virtual Team Competencies
o The right technology
o Shared work space & processes
o Established ground rules
o Acceptance of cultural, style & preference differences
o Effective group dynamics
o Clear identity
o Teamwork skills
o Leadership
o True trust
Virtual Leadership
Virtual leadership is about how to pull the people on a worldwide assignment together into one
more work in a virtual environment.
Key in Leading a Virtual Team
o Build trust
o Reward and recognize
o Communication
o Motivation
o Commitment
Virtual Team Leadership Competencies
o Make the invisible, visible
o Make the intangible, tangible
o Create & foster a climate of trust
o Establish & constantly model standards of accountability
o Communicate clearly, constantly & effectively within each receiver’s realm
o Delegate responsibilities
Virtual Leadership Key Traits
o Everyone gets core information at the same time.
o Everyone has equal input.
o Everyone's ideas are weighed against the alignment tool, not out of preference.
o Everyone's ideas are never judged or rejected at the onset.
o Everyone has equal opportunity to shine.
o Everyone is rewarded or publicly recognized for contributions to the project.
o The leader socializes equally with people near and far.
o Even appearances or suggestions of favoritism break trust. 180
Team Meetings
Team meetings keep members informed and provide a forum for problem solving, decision-making,
Effective Meetings at Work: Focused, Crisp and Short
Types of Meetings
o Leadership/Management: to review the overall organization performance, setting up new
o Department Specific: to review the departmental performance, headed by the head of
department.o Project Management: to review the overall project performance, headed by Project Director
or Project Manager. o Other Meetings
o Quarterly Business Review: to review the quarterly progress report of all the
o Client Specific: to meet with specific client/customer to discuss the business matters
etc.o Functional Team: meeting with in the department between different teams exist in one
department.o Special Project: meeting on special project
o Performance Review (1-1): to review the performance
o Others: a number of unscheduled meetings has also arranged on different level of organization.
Meeting Techniques:
o Ask yourself, "Is this meeting really necessary?"
o Have a goal for the meeting. What do you want to accomplish?
o Have an agenda with clearly stated items and the amount of time to be allotted each one. Send out the agenda at least one day ahead of the meeting.
o Limit attendance and appoint a leader.
o Stay focused on the agenda. If a new topic is introduced, add it to the list of future agenda items or negotiate with the group if it should be discussed now. Have a clock in the room.
o Strive to get everyone involved in the discussion, avoid domination by one or two members.
o Foster rigorous debate and brainstorming, while respecting each other's opinions.
o Use visual aids. Have a flip chart and use it.
o Keep minutes of the key points raised and actions to be taken, then follow up.
o Do a two-minute evaluation of the meeting. Ask everyone what went well… what could be improved.
The Meeting Process
o Plan
o Start
o Conduct
o Close
o Follow Up
Leading Team
Having the leading position or higher score in a contest; "he is ahead by a pawn"; "the leading team in
Attributes of High Performing Teams:
o Performance outcomes
o Specific, shared purpose and vision
o Mutual, internal accountability
o Coordinated, shared work roles
o Inefficiency leading to efficiency
o Extraordinarily high quality
o Creative continuous improvement
o High credibility and trust
o Clarity of core competence
o Participative leadership
o Shared responsibility
o Aligned on purpose
o High communication
o Future focused
o Focused on task
o Creative talents
o Rapid response
Principles of Leadership Effectiveness
o Do not avoid risks.
o Believe in yourself.
o Take the offense rather than the defense.
o Know the ways of disagreement and the means of compromise.
o Be a good follower. Effective leaders lead as they would like to be lead.
Note
Material presented during this course is taken from different books, presentations and work done by
learning purpose. Material/work used from different sources is highly acknowledged.
Page 16
STRATEGIC LEADERSHIPStrategic Leadership is the ability to anticipate and envision the future, maintain flexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future. “Without a strategy the organization is like a ship without a rudder, going around in circles.” Joel Ross and Michael Kami. Strategy is the essential of all business games. Even in real life without strategy and plan one can not be successful. Leader, manager, business man and even individual need to do strategic planning and
develop strategies in the changing environment. The Three Big Strategic Questions every body needs
to ask before thinking/planning a strategy are:o Where are we now?
o Where do we want to go?
o How do we get there?
What is Strategy? A Team’s strategy consists of the set of competitive moves they are employing to
manage the team/objectives of the team/organization.o Strategy is Team’s “game plan” to
• Conduct operations • Compete successfully • Achieve Team objectives Strategic Management:
The set of decisions and actions used to formulate and implement specific strategies that will achieve
Business Strategy Levels:
o Corporate-level strategy asks, “What business are we in?”
o Business-level strategy asks, “How do we compete?”
o Functional-level strategy asks, “How do we support the business-level strategy?”
Strategic Planning:
A Basic Planning Model consists of following steps.
o Missions and Goals
o External Analysis - Opportunities and Threats
o Internal Analysis - Strengths and Weaknesses
o Selection of Appropriate Strategies
o Implementation of Strategies About Mission Statement we have already discussed during previous chapters. Next two stages/steps are AWOT analysis. After Analysis, one needs to select appropriate strategy and finally implement it.
Examples of SWOT Elements:
o Strengths: Favorable location, talented workers, state-of-the-art equipment
o Weaknesses: Unfavorable location, outdated equipment, limited capital
o Opportunities: Culturally diverse customer base, changes in technology, deregulation
o Threats: Ecommerce, declining market, new competitors
Sample Strategies
183
Depending on the nature of business, analysis and priorities, organization may choose any strategy. Few examples are given bellow.
o Cost leadership
o Focus
o High quality
o Strategic alliances
o Growth through acquisition
o High speed and first-mover strategy
o Product and global diversification
o Sticking to core competencies
o Brand leadership
o Creating demand by solving problems
o Conducting business on the Internet
Strategic Leadership:
Strategic Leadership involves: The ability to anticipate, envision, maintain flexibility and empower
Vision
An attractive, ideal future that is credible yet not readily available.
o Links the present to the future
o Energizes people and garners commitment
o Gives meaning to work
o Establishes a standard of excellence and integrity
Common Themes of Vision:
o Vision has broad appeal
o Vision deals with change
o Vision encourages faith and hope
o Vision reflects high ideals
o Vision defines the destination and the journey
Mission
The organization’s core broad purpose and reason for existence
Strategy
o Strategy is Team’s “game plan” to
Strategy Formulation and Implementation Strategy Formulationo The integrating knowledge of the environment, vision, and mission with the core
competence in such a way as to achieve synergy and create customer value Strategy Implementation
o Putting strategy into action by adjusting various parts of the organization and directing
Strategic Leadership
o Requires the Managerial Ability to:
o Anticipate and envision
o Maintain flexibility
o Empower others to create strategic change as necessary
o Strategic Leadership is:
o Multi-functional work that involves working through others
Effective strategic leaders:
o Manage the Team’s operations effectively
o Sustain high performance over time
o Make better decisions than their competitors
o Make straight, courageous, practical decisions
o Understand how their decisions affect the internal systems in use by the team/organization
o Solicit feedback from peers, superiors and team members about their decisions and visions Determining Strategic Direction:o Determining strategic direction involves developing a long-term vision of the Team’s strategic intent• Five to ten years into the future
o Ideal long-term vision has two parts:
• Core ideology
o A charismatic leader can help achieve strategic intent.
o It is important not to lose sight of the strengths of the organization/team when making changes required by a new strategic direction.
o Leaders must structure the team effectively to help achieve the vision.
Exploiting and Maintaining Core Competencies: Core competencieso Resources and capabilities of team that serve as a source of competitive advantage over its
rivalso Leadership must verify that the team’s competencies are emphasized in strategy
implementation effortso Teams must continuously develop or even change their core competencies to stay ahead of
competitorso In many large orgs, and certainly in related diversified ones, core competencies are exploited
effectively when they are developed and applied across different organizational units.o Core competencies cannot be developed or exploited effectively without developing the
capabilities of human capital.Developing Human Capital: Human capitalo The knowledge and skills of the org/team entire workforce are a capital resource that requires
investment in training and developmento No strategy can be effective unless the org/team is able to develop and retain good people to
carry it out.o The effective development and management of the team’s human capital may be the primary
determinant of a team’s ability to formulate and implement strategies successfully.Sustaining an Effective Organizational Culture: Organizational cultureo The complex set of ideologies, symbols and core values shared through the team/org, that
influences the way business is conducted. o Changing a Team’s/ organizational culture is more difficult than maintaining it
o Effective strategic leaders recognize when change in culture is needed
o Shaping and reinforcing culture requires:
o Effective communication 185
o Problem solving skills
o Selection of the right people
o Effective performance appraisals
o Appropriate reward systems
Emphasizing Ethical Practices:
o Effectiveness of processes used to implement the Team’s strategies increases when based on ethical
o Ethical practices create social capital and goodwill for the team/org
Actions that develop an ethical organizational culture include:
o Establishing and communicating specific goals to describe the team’s ethical standards
o Continuously revising and updating the code of conduct
o Disseminating the code of conduct to all stakeholders to inform them of the team’s/org’s ethical standards and practices
o Developing and implementing methods and procedures to use in achieving the team’s/org’s ethical
standardso Creating and using explicit reward systems that recognize acts of courage
o Creating a work environment in which all people are treated with dignity
o Leaders set the tone for creating an environment of mutual respect, honesty and ethical practices among employees
Establishing Organizational Controls:
o Controls
o Formal, information-based procedures used by leaders to maintain or alter patterns in
o Controls help strategic leaders to:
o Build credibility
o Demonstrate the value of strategies to the team’s/org stakeholders
o Promote and support strategic change
Page 17
LEADING CHANGE What is Change?Change is the process of moving from one state (current state) to another (future state). It refers to actions taken by organizational leaders to achieve and maintain outstanding performance in a dynamic environment. Facts about Change:
o Change is inevitable
o Change is uncomfortable
o Change is disruptive
o The complexity of change has increased
Dynamics of Change:
People .......
o feel awkward, self-conscious
o think first about what they have to give up
o feel alone
o can only handle so much
o are at different levels of readiness
o revert to the old as soon as the pressure is off Organizations must learn faster & adapt to the rapid changes in the environment….
o “Change takes place, no matter what deters it”. (Plato, 428-347BC)
o Organization’s long-term success: ability to manage change
Types of Organizational Change Strategy Corporate LevelGrowth, stability, turnaround,
Business Level
Prospecting, defending, and
Functional Level
Marketing, operation, finance
Structure PrinciplesChain of command, unity of
command, division of labor Authority
Formal and informal, line and
Organization design
Departmentalization
Job design
Job rotation, job
Technology Machines System process Automation People Skills Performance Attitude Behavior Culture Forces for changeo External: change in the external (Macro environment) i.e. new technologies, political, economic,
financial conditions, world market, customer demands, changes in competition. 187o Internal: change in internal environment of the organization (micro environment) i.e. reengineering,
costs- revision of plan/objectives, communications, employee turnover, changes in work practices. Change Requires Leaders Who Can….
o Create a realistic sense of urgency for change
o Create a clear vision of the future
o Remove obstacles to change
o Anchor changes in the organization’s culture
o Follow through with plans
Change Models Lewin’s Modelo Step-1 Unfreezing
o Step-2 Moving (Making Adjustment)
o Step-3 Refreezing
A Comprehensive Change Model
o Step-1 Recognize the need for Change
o Step-2 Identify possible resistance to the change and plan to overcome it
o Step-3 Plan the Change interventions
o Step-4 Implement the Change interventions
o Step-5 Control the Change
Lewin’s Change Management Model: Understanding the Three Stages of Change
Change is a common thread that runs through all businesses regardless of size, industry and age. Our
Understanding Lewin’s Model If you have a large cube of ice, but realize that what you want is a
cone of ice, what do you do? First you must melt the ice to make it amenable to change (unfreeze). Then you must mold the iced water into the shape you want (change). Finally, you must solidify the new shape (refreeze). By looking at change as process with distinct stages, you can prepare yourself for what is coming and make a plan to manage the transition – looking before you leap, so to speak. All too often, people go into change blindly, causing much unnecessary turmoil and chaos. To begin any successful change process, you must first start by understanding why the change must take place. As Lewin put it, “Motivation for change must be generated before change can occur. One 188 must be helped to re-examine many cherished assumptions about oneself and one’s relations to others.” This is the unfreezing stage from which change begins. Unfreeze
This first stage of change involves preparing the organization to accept that change is necessary, which
Change
After the uncertainty created in the unfreeze stage; the change stage is where people begin to resolve
Refreeze
When the changes are taking shape and people have embraced the new ways of working, the
Practical Steps for Using the Framework: UnfreezeDetermine what needs to change
o Survey the organization to understand the current state
o Understand why change has to take place. Ensure there is strong support from upper management
o Use Stakeholder Analysis and Stakeholder Management to identify and win the support of
key people within the organization.o Frame the issue as one of organization-wide importance.
Create the need for changeo Create a compelling message as to why change has to occur
o Use your vision and strategy as supporting evidence
o Communicate the vision in terms of the change required
o Emphasize the “why”. Manage and understand the doubts and concerns
o Remain open to employee concerns and address in terms of the need to change.
Change:
Communicate often
o Do so throughout the planning and implementation of the changes
o Describe the benefits
o Explain exactly the how the changes will effect everyone
o Prepare everyone for what is coming. Dispel rumors
o Answer questions openly and honestly
o Deal with problems immediately
o Relate the need for change back to operational necessities. Empower action
o Provide plenty of options for employee involvement
o Have line managers provide day–to–day direction. Involve people in the process
o Generate short-term successes to reinforce the change
o Negotiate with external stakeholders as necessary (such as employee organizations).
Refreeze
Anchor the changes into the culture
o Identity what supports the change
o Identify barriers to sustaining change. Develop ways to sustain the change
o Ensure leadership support
o Create a reward system
o Establish feedback systems 190
o Adapt the organizational structure as necessary.
Provide support and trainingo Keep everyone informed and supported.
Celebrate success!Resistance to Change: Sources of Resistance to Changeo Facts: Provable statements that identify reality.
o Beliefs: Subjective opinions that cannot be proven.
o Values: What people believe are important and worth pursuing or doing.
Focuses of Resistance to Change
o Self: The reaction of individuals who feel their self-interests are threatened by change.
o Others: The consideration given to how others will be affected by change.
o Work environment: Change in the working environment threatens individuals control of the environment
Managerial Perspective:
Critical factors in managing complex change:
o Trust
o Vision
o Skills
o Resources
o Incentives
o Action plan
o Accountability
Example Change Initiatives
o New e-mail system
o New ERP system
o Introducing a new senior manager
o Total Quality Management/Six Sigma
o Postage coming from a printer—not using stamps
o Change in work hours
Starting Out...3 Key Questions
o Where are you; what is the current state? Why change?
o Where do you want be?
o How are you planning to get there? Answering these questions will provide the basic scope – a short document that lays out the case for change, the benefits to be gained and a basic risk assessment that addresses the major unknowns.
The Eight-Stage Model of Planned Organizational Change
o Establish a sense of urgency.
o Form a powerful guiding coalition.
o Develop a compelling vision and strategy.
o Communicate the vision widely.
o Empower employees to act on the vision.
o Generate short-term wins.
o Consolidate gains, create greater change.
o Institutionalize changes in the organization culture. 191
Some Barriers to Effective Change
o The compelling case for change
o Failing to “paint the right picture” of the future state
o Poor employee involvement and discussion
o Failing to build up the case for change over time – too rushed
o Failing to share key data with employees – lack of transparency
o Not understanding what change is
o Failing to see change as a journey, not a single event
o Over-simplified view of “getting the change out the way”
o Employee involvement
o Failing to involve employees in feedback sessions
o Failing to involve employee teams in optimising solutions and developing implementation plans that will work!
o Ownership confusion
o Failing to establish clearly who is responsible for what, and who is making the decisions
o Ineffective implementation
o Viewing implementation as the “easy part”!
o Failing to clarify who is coordinating implementation
o An unclear transition plan of roles and responsibilities
o Poor alignment of senior team around leadership behaviours
o Poor communication – confusion about what is happening, and when
o Perpetuating “the way we do things here” too long
o Failing to see the impact of the wider sector or economic environment
o “Good times” may have masked some less than effective management practice!
Leadership during Change: Change will simply not happen without effective leadership in the
organization. To a large degree change is really about;o Good communication
o Personal desires
o Alternative culture and culture change
o Anxiety and loss of control
o Hidden agendas These are all leadership issues
What are the leadership behaviours most relevant to change situations?
o Communicates a clear and consistent vision (or plan) with commitment
o Champions change – able to engage others and get them ready (convince)
o Treats people with respect
o Demonstrates integrity and high ethical standards
o Sets and sustains high personal standards of delivery
o Is decisive, particularly when confronted with challenging issues
o Able to adapt and capitalise on new opportunities
o Builds effective relationships
o Builds effective team performance
o Openly encourages and recognises the contribution of others
o Gives constructive feedback on a regular basis
o Encourages personal development and provides appropriate opportunities 192
8 Steps to Effective Change Leadership
So what should leaders do to help make change more effective?
Key Messages
o Leader Qualities of Holistic Thinking and Holistic Action
o Beware of Attempts to Improve Performance through Singular Changes
o Building the Complementary Changes the Integrated Systems of Mutually Reinforcing Elements
o Be Prepared for the Dangers of Transitions and the Perils of the 'J' Curve
Things May Get Worse Before They Get Better. Need For Strong Leaders To Survive Transition Processeso Partial Changes may be Politically and Emotionally Easier to Contemplate, but Encourage
Long Term Declineso Beware of Complementary Traps: Sticking With the Old System that Works
o Learning is Crucial, But it is Also a Challenge Complements May Be: Hard to Understand Hard to Implement Hard to Imitate
o Building the Complements and the Capabilities that Underpin them Takes Time and Courage
o Building Complements Requires Customization
o The Virtual Cycle of Complementary Change Needs to Stay In Motion Leading Change is a Continuous Process
o The Crucial Importance of:
Duration of Leader in Post Careful Management of Leader Succession Leading Continuity and Change The Importance of Inter-Generational Leader Effects Imposing the change: some issues to consider
o Compliance versus Commitment
o Short term “speed” versus long term satisfaction with the change
o “Powerless leader”
The goal of Fearless Change: People become so involved and interested in the change process that they want to change.
Remember!
Change is not an event. It is a process.
Note
Material presented during this course is taken from different books, presentations and work done by
learning purpose. Material/work used from different sources is highly acknowledged.
Page 18
CREATIVE LEADERSHIPGod the almighty Allah has created the mankind and given them the wisdom with knowledge and the brain with capability to think and make a difference. One can’t believe how powerful is Brain and Mind
of this creature we called them human? 1. Brain has 10 billion nerve cells 2. Total Atoms in the Universe=1 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 3. Possible Inter-Connections in the brain=1 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000, 0000000000 4. Brain cell inter-connections more than the total universe- atoms? 5. We are using 10 % of our brains 6. Brain is a self expanding and self organizing entityBrain And The Universe
Critical/Creative Thinking: is the intellectually disciplined process of actively and skillfully
Characteristics of Creative/Critical Thinkers:
o Curiosity
o Open mindedness
o Systematic ability
o Analyticity
o Self-confidence
o Truth seeking attitude
o Cognitive maturity
Creativity
Is Creativity?
o Mysterious to understand
o Unlimited in scope
o Meant for all historical times
o Lies in every activity
o Possessed by all
o Luxury of advanced nations
o Can it be developable?
Myths about the Process of Developing Creativity:
o Creativity is natural gift – it cannot be taught
o Creativity is in revolutionary
o Creativity lies in right-brain
o Art, artists only has creativity
o Releasing blocks will bring creativity
o Intuition alone helps creativity
o Needs craziness for creativity
o Intelligence and creativity are same From Wikipedia, the free encyclopedia, I will reproduce few Para’s for the understanding of you.
“Creativity (or creativeness) is a mental process involving the generation of new ideas or concepts, or
new associations between existing ideas or concepts. From a scientific point of view, the products of creative thought (sometimes referred to as divergentthought) are usually considered to have both originality and appropriateness. An alternative, more
everyday conception of creativity is that it is simply the act of making something new. Although intuitively a simple phenomenon, it is in fact quite complex. It has been studied from the perspectives of behavioural psychology, social psychology, psychometrics, cognitive science, artificial intelligence, philosophy, history, economics, design research, business, and management, among others. The studies have covered everyday creativity, exceptional creativity and even artificial creativity. Unlike many phenomena in science, there is no single, authoritative perspective or definition of creativity. Unlike many phenomena in psychology, there is no standardized measurement technique. Creativity has been attributed variously to divine intervention, cognitive processes, the social environment, personality traits, and chance ("accident", "serendipity"). It has been associated with genius, mental illness and humour. Some say it is a trait we are born with; others say it can be taught with the application of simple techniques. Although popularly associated with art and literature, it is also an essential part of innovation and invention and is important in professions such as business, economics, architecture, industrial design, science and engineering. Despite, or perhaps because of, the ambiguity and multi-dimensional nature of creativity, entire industries have been spawned from the pursuit of creative ideas and the development of creativity techniques. This mysterious phenomenon, though undeniably important and constantly visible, seems to lie tantalizingly beyond the grasp of scientific investigation.”
Creativity, it has been said, consists largely of re-arranging what we know in order to find out what we
do not know." George Kneller
"To live a creative life, we must lose our fear of being wrong."
Six Tips to Help You Enhance Your Creativity:
1. Open Your Mind - Have one new experience every day; no matter how small. New experiences
2. Diversify - Involve others in your problem-solving efforts that bring a different perspective or
cultural experience than yours. 1953. Mental Floss – Relax; Stress, exhaustion, boredom and even pain can block our pathways to
creativity.4. Stop Looking For the Right Answer - Look for many right answers.
5. Discover Your Creative Rhythm - Start paying attention to when you get your best ideas.
6. Health Makes Wealth - Regular exercise not only benefits your body, it boosts brain performance as well.
Innovative Thinking: Six Simple Secrets by Padi Selwyn, M.A.
Those who wish to sing, always find a song. – Swedish proverb
Some tools and technique which might help you to develop creative mind and also help you in the
Awaken Your Senses
o Relax in a comfortable chair
o Close your eyes
o Concentrate on some pleasant thought
o Create A mental image of something you enjoy doing
o Actually see, feel, smell, taste, and hear you imaginary surroundings
Brainstorming
o Identify as many different ideas as possible
o List all relevant ideas generated
o Can be done by one person or by a group
o Used most often in connection with problem solving
Role Play
o The process of acting through a situation without all the real characters being present
o Practice through role playing with someone else
Experiment
o Experiment with different ideas.
o Sometimes, you have to try putting the pieces together in different ways in order to see what happens.
Mental Exercises
o Keeps thinking sharp,
o Solving puzzles, reading mystery stories, doing word games, playing board games.
Creative Problem Solving
o Develop a creative atmosphere/attitude
o Identify the problem
o Determine the facts
o Identify possible solutions
o Let the problem simmer
o Determine the best SOLUTION
Creative Traits
o Imagination
o Verbal ability
o Conceptual ability
o Mental awareness
o Ability to reason logically
o Ability to think rapidly
o Mental flexibility
o Ability to think nontraditional 196
Personality Traits
o Frequently take independent action
o Prefer working with minimal or no supervision
o Prefer variety and change
o Often impatient with other people
o Recognition
o Enjoy risk-taking
o Desire praise & dislike failure
o Exhibit high energy levels
o Seek new challenges and experiences
Creativity Can Be Developed
o Study
o Concentration
o Practice
o Patience
Creativity and Leadership. Why is this question important?
The significance of creativity and leadership in both the workplace and the world at large, and thus they
o to understand how creativity and leadership actually operate in domains, organizations, and the
general societyo to enhance, whenever possible and necessary, the amount of creativity and leadership manifested in
a domain, organization or society How Might These Definitions Be Integrated?
o Impact through products - innovative ideas, inventions, solutions, policies, programs, strategies,
o Small problem-solving groups (R & D units, research laboratories)
o Professional domains, economic systems, and political institutions
Organizational Methods to Enhance Creativity
o Systematically collecting fresh ideas
o Brainstorming
o Empowering people
o Encourage risk taking
o Engaging in playful physical activities
Leadership Practices for Enhancing Creativity
o Intellectual challenge
o Freedom to choose the method
o Ample supply of the right resources
o Effective design of work groups
o Supervisory encouragement
o Organizational support
o Having favorable exchanges with creative workers
Methods of Managing Creative Workers
o Give creative people tools and resources that allow their work to stand out
o Give creative people flexibility and a minimum amount of structure
o Give gentle feedback when turning down an idea
o Employ creative people to manage and evaluate creative workers
Leadership Initiatives to Enhance Innovation/Creativity
o Continually pursue innovation
o Take risks and encourage risk taking
o Acquire innovative companies 197
o Avoid innovation for its own sake
o Loose-tight leadership enhances creativity and innovation
o Integrate development and production
o Encourage people across divisions to share ideas
Threats to Team Creativity
o Social loafing
o Conventionality
o Production blocking
o Downward norm setting “If you don’t like something, change it. If you can’t change it, change the way you think about it.”
– Unknown creative
Page 19
ETHICS IN LEADERSHIP EthicsEthics” is derived from the Greek word “ethos,” which means “character”. “Character” is defined as “the combination of qualities or features that distinguishes one person from another.” It is also defined as “the public estimation of the person — reputation.” Ethics are the moral values, beliefs, and rules that establish the right or appropriate ways in which one person or group should interact, deal and behave with another person or group. Organizational ethics are a product of societal, professional, and individual ethics. Ethics is the study of morality (right and wrong) and the choices people make in their relationships with others. Leaders deal with numerous ethical issues in organizations including power, moral standards, moral consistency, moral mistakes etc. Different approaches have been suggested for dealing with these issues, such as following universal moral laws, greatest good for the greatest number, having a primary concern for others’ welfare, promoting high moral character in leaders, and persistently striving to be just, prudent, and truthfulness in one’s behavior. Creating an ethical organizational climate requires leaders to have and present role model ethical behaviors, and reward ethical policies and practices, punish unethical behavior, discuss ethical assumptions and practices, and use charismatic/transformational leader behaviors in a socially responsible manner. Many leaders are turning to spiritual/religious practices to help them deal with ethical issues. Ethics is the study of morality (right and wrong) and the moral choices people make in their relationships with others. A. Ethics concerns how we should behave in the roles that society gives us. B. Leaders are often in roles that can determine the well-being of others and they sometimes influence the broader good.o Technically good (effective)
o Morally good. Ethical values rest on principles stressing the importance of treating everyone fairly and equally. To make ethical decisions, an organization purposefully implants ethical instrumental values in its culture. Ethical values are a product of societal, professional, and individual ethics.
o Ethics
– Is a derivative of the Greek word ethos, meaning customs, conduct, or character
o Ethical Theory
– Provides a system of rules or principles as a guide in making decisions about what is
o Ethics & Leadership
o What leaders do and who leaders are is determined by the nature of the leaders’
o What choices leaders make and how they respond in a particular circumstance are
informed and directed by their ethics. Ethics is…
o Ethics is the study of morality
o Central principles of ethics:
o Reversibility – Would you want someone to do this to you? 199
o Universality – Would you want everyone to do this?
o Other questions
o Am I treating others with respect?
o Am I violating the rights of others?
o Am I treating others only as a means to my own ends?
o Am I being honest with others and with myself?
Ethics is…
o Right vs. Wrong
o Also known as your conscience/principles
o Usually a spontaneous decision
_ You instantly know right from wrong
o Brainstorming exercise
_ list of “wrongs”
_ List of “rights”
o Who you are when no one is looking
o If your mom & dad were watching, would you still do it?
Ethics is…
o Ethics vs. Morals
Ethics and morals are NOT always the same
o i.e. beliefs related to moral issues such as drinking, gambling,
o Can reflect influence of religion, culture, family and friends
Ethics = how a moral person should behave
o Ethics go beyond cultural, religious, and ethnic differences Ethics is not about “getting caught”
o Even if you get away with something, it may still be unethical
o Ethics is not defined by what happens to you, but by your thoughts and actions Ethics is not about placing blame
o Do not judge other’s based on their personal beliefs
Ethical behavior is the display of moral attributeso Judgment
o Behavior
o Self-discipline
o Character However, what “ethical behavior” really boils down to in its simplest form is: Knowing the difference between right and wrong and behaving accordingly
Character Traits Reflect Ethics:
o Honesty
o Courage
o Compassion
o Even-handedness (impartiality)
o Respect for Others
Some Common Ethical/Legal Issue:
o Conflict of Interests
o Confidentiality
o Use of Position for Personal Gain
o Personal Contracts
o Outside Employment
o Personal Investments
o Use of Government Time
o Behavior On Duty and Off Duty
o Discriminatory Practices
Why Be Ethical?
o What benefits do you receive by acting ethically?
o Character Counts
o Self-respect
o What benefit does the community receive?
o Challenges to acting ethically:
Rationalizations
o If it’s necessary, it’s ethical
o If it’s legal, it’s ethical
o I was doing it for you
o I’m just fighting fire with fire
o It doesn’t hurt anyone
o Everyone’s doing it
o It’s okay as long as I don’t gain personally
How to Be an Ethical Person?
o Do no harm
o Avoid causing physical, mental, or emotional harm
o Benefit others
o Offer assistance and improve the lives of others, even if it may inconvenience you
o Be just
o Treat everyone equally or Follow the Golden Rule
o Be faithful
o Keep promises, tell the truth, be loyal, and maintain respect and good manners
o Respect autonomy
o Everyone has the right to decide how they live their lives, as long as they do not interfere with the welfare of others
Respects Others: Treat others as ends in themselves and never as a means to endso Treat other people’s values and decisions with respect
o Allow others to be themselves with creative wants and desires
o Approach others with a sense of unconditional worth and value individual differences
o Leader behaviors
• Listens closely to subordinates
• Is empathic
• Is tolerant of opposing viewpoints
Serves Others: Follower-centered - Based on the altruistic principle of placing followers foremost in the leader’s planso Beneficence - Leaders have a duty to help others pursue their own legitimate interests and
goals 201o Leaders are stewards of the organization’s vision; in serving others they: clarify, nurture,
and integrate the vision with, not for, organization memberso Leaders have an ethical responsibility to make decisions that are beneficial to their
followers’ welfareo Leader behaviors
• Mentoring behaviors
• Empowerment behaviors
• Team building behaviors
• citizenship behaviors
Shows Justice: Ethical leaders are concerned with issues of fairness; they place issues of fairness at the center of their decision makingo Leader behaviors
• All subordinates are treated in an equal manner
• In special treatment/special consideration situations, grounds for differential treatment are clear, reasonable, and based on sound moral values
Manifests Honesty: Honest leaders are authentic but also sensitive to the feelings and attitudes of otherso They are not deceptive
o They tell the truth with a balance of openness and candor while monitoring what is appropriate to disclose in a particular situation
o Leader behaviors
• Don’t promise what you can’t deliver
• Don’t suppress obligations
• Don’t evade accountability
• Don’t accept “survival of the fittest” pressures
• Acknowledge and reward honest behavior in the organization
Builds Community: Concern for the common good means leaders cannot impose their will on others; they search for goals that are compatible with everyone.o Concern for others - Is the distinctive feature that delineates authentic transformational
leaders from pseudo-transformational leaders
o Transformational leaders and followers reach out beyond their own mutually defined goals to the wider community
o Leader behaviors
• Takes into account the purposes of everyone in the group
• Is attentive to interests of the community and the culture
• Does not force others or ignore the intentions of others
Leading with Integrity:
“Management is doing things right; leadership is doing the right things”.
Key Questions
o What is ethical leadership?
o How do I lead with integrity? 202
o What can I do to strengthen the ethical culture of my organization?
Ethical issues Powero The basis for a leader’s influence on followers
o The more power a leader has, the more likely that followers will comply with the leader’s wishes
o The greater a leader’s power, the greater the potential for abuse
o Corrupting influences of power
o Power may become desired as an end in itself and be sought at any cost
o Power differences may cause followers to give the leader false positive feedback and create an elevated sense of self-worth on the leader
o The leader may devalue followers’ worth and to avoid regular contact with followers
or mistreat themo A leader’s failure to acknowledge the ethical limits of power causes a loss of credibility and
trust and does devastating damage to the leader and his constituencyo Moral standards for a leader’s behavior
o Should leaders be held to a higher moral standard?
o we would probably have a shortage of leaders
o we would most likely become disillusioned with them when they were unable to meet the higher standards
o Should leaders be held to the same standards as everyone else, and be expected live up to
those standards.o Moral consistency
o If leaders’ behavior does not match their stated values, they will lose the trust of their followers and colleagues
o a leader’s moral inconsistencies are open to public scrutiny
o Leaders who do not behave consistently with their stated ethical values risk being labeled hypocrites.
o The relationship between ethics and effectiveness
o Leaders sometimes achieve worthwhile goals using questionable tactics.
o Existence of a double standard when judging some leaders.
o Judging a leader as “good” involves complex assessments of the leader’s achievements and the means used to reach those achievements.
o Leaders also make moral mistakes that cause unfortunate consequences, although their
intentions were ethical. Approaches to Ethical Behavior
o Categorical Imperative -- obligation ethics. Specifies that individuals should always do what is
o Utilitarianism, -- consequential ethics or ethics of responsibility. Ethical decisions must be based
on their consequences.o This approach maintains that we should behave so as to create the greatest good for the
greatest number of peopleo Identifying all the relevant consequences of a decision can be difficult, especially when
leaders represent diverse groups or when their decisions have far reaching effectso Altruism
203o Altruistic leaders are concerned for the welfare of others and their actions are designed to
help others even if it results in a cost to themselveso Confucius equated altruism with the golden rule “do unto others as you would have them
do unto you”o Virtue ethics. The central idea of virtue ethics is that leaders and other individuals who have high
moral character are most likely to make wise ethical choices in their behavior and decision making.o virtues are “deep-rooted dispositions, habits, skills, or traits of character that incline
persons to perceive, feel and act in ethically right and sensitive ways”o Advocates of virtue ethics tend to describe the character traits and qualities of the ideal
leader as an ethical role model.o Moral Learning. Involves gradual changes in beliefs, attitudes, values and habits obtained through
prolonged effort by a leader to behave in a just, prudent and truthful manner. Moral learning is a process of human developmento a positive process that causes leaders to want to create benefits for people
o causes leaders to make decisions and act in accordance with their conscience
o Moral learning focuses on an ethic of excellence
o teaches leaders to strive for a higher good and to take the “most ethical” approach, even if it is costly in terms of the leader’s personal preferences, income, career, or the welfare of other stakeholders
o Elements of moral learning
o Leaders must first become sensitive to ethical problems.
o Leaders must also become competent in making moral judgments
o Leaders must be motivated to behave ethically and to make ethical decisions
o Leaders must be willing to take moral action
o Sources of moral learning
o role models
o hardships
o a value driven mission
Ethics Management Tools
o Exemplary leadership
o Ethics training
o Codes & Oaths
o Audits
Ethical Leaders
o Are ethical role models
o Sustain an ethical climate that creates trust
o Promote the ethical development of their subordinates
o Ethics Training
o Types
_ Compliance training
_ Values training
o Effectiveness
o Codes
o Implement codes of conduct.
Ethics - Where to Start? A Code of Ethics
Types of Codes of Ethics:
o Two Basic Types
o Compliance Based
o Integrity Based 204
Qualities of Leadership
o Two Goods
o Morally Good.
o Technically Good.
o Self-knowledge.
o Self-control.
o Confidence.
o Charisma.
o Consistency.
o Effectiveness.
o Humility. Leadership is a process whereby an individual inspires a group to achieve a common goal by the power of their integrity and wisdom.
Becoming a Wise and Ethical Leader
o Read, Read, and Read
o Think broadly and deeply about ethics
o Set an appropriate ethical example
o Make serving others (not your career) your top priority
o Lead from trust and respect, not power & authority
o Delegation and shared responsibility
o Listen to and facilitate others
o Find a mentor and be a mentor
o Bottom Line
o Are your people growing as effective leaders themselves?
Creating an Ethical Climate
o The ethical climate of an organization is the shared perceptions among organizational
o Specific actions by leaders also contribute to this ethical climate.
o Role modeling
_ Emphasize visible behaviors and include demonstrations of how to implement specific values.
o Directive behavior
_ clearly specify ethical policies and practices through organizational codes of ethics, continuing education and training on ethical issues,
_ implement internal ethics committees to respond to employees’ concerns and
questions_ insure regular coverage of ethical issues in the company communications
o Contingent reward and punishment behaviors
_ reward individuals and groups who accomplish goals by acting in ways that are consistent with organizational values
_ identify and reward organizational citizenship behaviors
o altruistic behavior – going out of their way to help other employees
o conscientiousness –doing a better job than expected
o courtesy –giving advance notice of upcoming projects
o civic virtue –regular attendance and active participation in meetings
o sportsmanship –not complaining and not making mountains out of mole hills
o discipline employees who fail to adhere to company values
o Participative leader behavior 205
_ ethical leaders provide forums for dialogue and discussion of ethical assumptions
and practices in the organizationo understanding different ethical approaches helps people assess their own
and others’ behavior, and knowingly select ethical courses of actiono discussing sound ethical actions or decisions can also provide useful
reference points for organizational memberso involving followers in discussions of real ethical incidents in the
organization encourages everyone to examine organizational responses and processes and makes ethical assumptions and approaches clearer to everyone involved The number one rule - which is commonly echoed in all management courses - is: “Lead by example.” To create an ethical team/organization every member need to make sure the compliance of ethical behavior but main responsibility rest on leader to exhibit ethics and also make sure that others do thesame.