لخّصلي

UNIT FOUR
INFLUENCE PROCESSES, LEADERSHIP& Organizational Context
4.1 Leadership& Power

Leadership
Learning Objectives
After studying this part, you should be able to:
Define leadership and contrast leadership and management.
Identify the central tenets and main limitations of behavioral theories. Assess contingency theories of leadership by their level of support.
Compare and contrast charismatic and transformational leadership.
Define authentic leadership and show why effective leaders exemplify ethics and trust.
Demonstrate the role mentoring plays in our understanding of leadership.
Address challenges to the effectiveness of leadership.
Assess whether charismatic and transformational leadership generalize across cultures.

What Is Leadership?
Often researchers and practitioners do not distinguish between leadership and management. However, there are some key differences and understanding these differences can be helpful for organization improvement.
Leadership is the ability to influence a group toward the achievement of goals. A leader does not have to be someone who holds a formal position or title. They can emerge from a group and provide vision and motivation to those around them.
Management deals with the complexity of the organization and works with planning, organizing, leading and controlling to bring about order and consistency in the organization.

Trait Theories of Leadership
The trait theory of leadership looks at personality, social, physical, or intellectual traits that differentiate leaders from nonleaders. Initially this theory was based on studies that looked at over 80 different traits, which allowed almost anything to be defined as leadership. A breakthrough occurred when researchers began to organize the traits into categories and this became known as the Big Five Personality Framework where five groups of traits were found to be consistently present among leaders.
Some essential leadership traits include extroversion, conscientiousness, openness, and emotional intelligence (EI), although the link between EI and leadership has not been fully explored.With the many years of research dedicated to the trait theory of leadership, it is widely accepted that traits do predict leadership. However, it is more likely that they predict the emergence of a leader than the effectiveness of a leader.

Behavioral Theories of Leadership
In response to some disappointments with the trait theory, researchers began to look at defining leadership by how people behaved. This shifted the thinking on leadership from the belief that you could select leaders based on inborn traits to training leaders to behave in certain ways.

Situational Leadership Theory
The Situational Leadership Theory offers a model that takes a look at the other side of the equation, the followers. The focus of this theory is on the readiness of the follower to follow. Each follower can decide for themselves whether they will accept or reject the leader. If the leader is to be effective, the followers much choose to accomplish the task the leader has given them. The situational leadership theory looks at readiness and defines it as the extent to which people have the ability and willingness to accomplish a specific task.
A leader should choose one of four behaviors depending on follower readiness. If followers are unable and unwilling to do a task, the leader

needs to give clear and specific directions; if they are unable and willing, the leader needs to display high-task orientation to compensate for lity and high relationship orientation to get them to If followers are able and unwilling, the
leader needs to use a supportive and participative style; if they are both

Leader-Member Exchange (LMX) Theory
Contingency theories have failed to account for followers and heterogeneous leadership approaches to individual workers. The Leader-Member Exchange theory begins to account for this. In this theory the premise is that because of time pressures leaders very quickly

This group tends to be like the leader in terms of gender, race, age, and

circle of communication and will receive more time and attention from the leader. This group will experience more stress because of the added workload.

leader and correspondingly receive fewer exchanges. As a result they are more likely to experience stress because of their relationship and may retaliate against the organization as they become discontent with their assignments.

Charismatic Leadership
Charisa comes from the Greek word meaning gift. When talking about a charismatic leader one will refer to someone with certain gifts or abilities. A charismatic leader will often gain followers through personality rather than through power or authority.
This chart takes a look at key characteristics that are associated with a charismatic leader. These are often traits that a leader is born with, thus continuing the debate whether leaders are born or developed.
The leader must have vision, expressed as an idealized goal. The leader

must be willing to take on high personal risk and engage in self-sacrifice to achieve the vision. In doing so the leader needs to remain sensitive to the feelings and needs of their followers. Throughout the process the leader must be engaging in behaviors that are perceived as counter to norms.
Further, evidence shows a four-step process can help the charismatic leader utilize their characteristics to influence their followers. First the leader articulates a long-term strategy for achieving a goal. This strategy should fit the vision and uniqueness of the organization. Next the leader needs to formalize that vision by creating a vision statement. Charismatic leaders will often use this statement to reinforce the goal and purpose of the organization. This vision is communicated in a way that expresses the
Next the leader will use his words and actions to communicate a new set of values for the followers to imitate. Then the charismatic leader will try to find behaviors that demonstrate their commitment to the vision. They

leader is conveying and help achieve buy-in of the followers.
Finally, the charismatic leader engages in emotion-inducing and often unconventional behavior to demonstrate courage and conviction about the

Transformational Leaders
Transformational leaders help followers to look at the bigger picture and commit to the good of the organization, even if it means setting their own goals aside.
The different characteristics of transactional and transformational leadership approaches are not contradictory in nature in fact they can complement each other. Transformational leadership often is built upon transactional leadership. Good leadership will incorporate both transactional and transformational components.

Trust and Leadership
Trust is defined as a state that exists when you agree to make yourself vulnerable to another because you have a positive expectation for how things are going to turn out. Over the years this has been found to be a foundational characteristic of leadership. When trust is present, followers are willing to do as the leader asks and engage in behaviors that are for the benefit of the organization. In short, followers will do a lot more for a leader they trust than for one that does not hold their trust.
Also, trust is developed over time. The interactions between the leaders and the followers are part of the development of trust it goes both ways. Research has shown that the three main characteristics of a leader that instill trust are integrity, ability, and benevolence.
These three characteristics are important in developing trust between leaders and followers. If followers perceive these characteristics as strong in their leaders, it will encourage positive behaviors such as risk taking, information sharing, group interactions, and productivity.

Finding and Creating Effective Leaders
Mentoring is defined as someone with more experience supporting someone with less experience. It is a way for the leadership of this generation to invest in individuals and develop future leaders.Mentoring has positive effects on both the career and the psychological functions of the individual being mentored.
Furthermore, l

They must be found and developed. When looking for leaders, it is important to understand what leadership characteristics and style will best match with your organization and find ways to identify leaders with those attributes. Once you have a leader or recognize leadership potential, it is essential to train and develop your leaders to effectively develop followers within your context.

Global Implications
Most of the theories we have explored are based on research gathered in English-speaking countries. When you look at research in other areas, you will find different variables that will impact both leaders and followers.
It is very important when engaging in cross-cultural business opportunities that the difference in culture is considered. This is true when doing business in other countries, but it is also important to remember that many organizations are cross-cultural because of the make-up of their employees.
The GLOBE study looked at 18,000 leaders in over 800 organizations in
62 countries. They found that the characteristics that determined transformational leadership were consistent across cultures. This is significant because it disputes the contingency view that leadership is dependent upon culture.

4.2 Power

Learning Objectives
After studying this part, you should be able to:
Define power, and contrast leadership and power. Contrast the five bases of power.
Identify nine power or influence tactics and their contingencies.
Distinguish between legitimate and illegitimate political behavior. Identify the causes and consequences of political behavior.
Apply impression management techniques.
Determine whether a political action is ethical.

A Definition of Power
Power refers to the capacity one person has over the other person to get them to do what they want. Inherent in this definition is the idea of dependency. The stronger the relationship or the dependency that one person has when the other possesses something they want or requires, the greater the dependency on that person.

Contrasting Leadership and Power
Leadership and power are two different concepts and need to be defined separately. Leadership is focusing on goal achievement along with their followers. Power is used as a way to accomplish the goal and often followers are also means to accomplish the goal. Leadership will focus on using their leadership downward to influence others to help them achieve their tasks. Whereas power uses influence to gain something upward or laterally.

Bases of Power
There are two main bases of power, formal and personal:
Formal Power:Formal power is defined more by the position a person will hold in the organization. A person with formal power can utilize different power bases to accomplish their tasks. The first is coercive power

where employees fear negative

are told. Reward power is the ability to distribute rewards that others see as valuable and they will thereby accomplish the goals or tasks to get the reward. The last base is legitimate power where the formal authority to
formal hierarchy.
Personal Power: The second major form of power is personal power

This is often more effective than formal power. Personal power can be

referent power, as well as their influence based on the personal traits or resources they can offer to others.

Dependency: The Key to Power

dependency on another, the more power they hold over that person. When resources are very important, scarce, or there is no easy substitute, then the use and amount of power will rise in an organization.

Power Tactics
There are a number of power tactics an individual can use or ways in which they can make the power base work for them by moving people into specific actions. Nine influence tactics like: Legitimacy; Rational persuasion; Inspirational appeals; Consultation; Exchange; Personal appeals; Ingratiation; Pressure and Coalitions.

Factors Influencing Power Tactics
Many factors can influence the effectiveness of the power tactics discussed. Their ability to encourage the desired behavior could depend on the sequencing of the tactics. It is often better to start with softer tactics, such as exchange, and work up to harder tactics such as pressure. The success of the tactics will, however, greatly depend on the political skill of the user and the context or culture of the organization.

ORGANIZATIONAL CONTEXT
4.3 Foundations of Organization Structure

Learning Objectives
After studying this part, you should be able to:
.
Identify the characteristics of a bureaucracy. Describe a matrix organization.
Identify the characteristics of a virtual organization.
Show why managers want to create boundaryless organizations.
Demonstrate how organizational structures differ, and contrast mechanistic and organic structural models.
Analyze the behavioral implications of different organizational designs.
Show how globalization affects organizational structure.

What Is Organizational Structure?
Organizational structure depicts how job tasks are formally divided, grouped, and coordinated. The key elements of organizational structure include work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization.

1. 
   

   Work Specialization
   A key part of organizational structure understands the degree to which tasks are divided into separate jobs or work specialization. The division of labor is helpful in creating the most efficient way to utilize employee skills, increase their skills, and maximize their input. When division of labor is utilized an organization can more effectively use specialized training and specialized equipment to accomplish their desired productivity and quality goals.
   Further, work specialization can cause greater economies, but in some cases it can cause diminishing returns due to repetition which can lead to boredom. Job enlargement can be effective in creating greater efficiencies than specialization does.

   
   


2. 
   

   Departmentalization
   Departmentalization defines how jobs are grouped together. There are a number of options to choose from when grouping jobs you could organize around function, product, location, process, or customer. When jobs are grouped, departments are formed.

   
   


3. 
   

   Chain of Command
   The chain of command represents the line of authority present in decision making. Embedded in the chain of command is the inherent right of a manager to give orders and expect the orders to be followed. Unity of command is the idea that a subordinate should have only one superior to report to so that directions and the chain of command are clear.

   
   


4. 
   

   Span of Control
   The fourth element of structure is span of control. This concept looks at how many workers a manager can effectively direct toward organizational goals. Wider span allows for more efficiency because you need fewer managers. However, it can also limit the amount of time and direction a manager can give to their employees. A narrow span can allow for more direction but can add layers of management, increase the complexity of the vertical communication, and encourage overly tight supervision, limiting employee autonomy.

   
   


5. 
   

   Centralization and Decentralization
   Centralization is the degree to which decision making is concentrated at a single point in the organization, typically at the top. Decentralization represents an organization that spreads decision making throughout the organization.

   
   


6. 
   

   Formalization
   Formalization is the degree to which jobs within the organization are standardized. When there is high formalization, workers have very little control over how they do their work and they will be required to follow a number of rules and procedures. Lower formalization will tend to allow for different job behaviors to get the job done, giving workers more control over their work.

   
   

Common Organization Designs: Simple Structure
There are a number of organizational structures available to companies. The first and most basic structure is the simple structure. This structure has a low degree of departmentalization, wide spans of control, and centralized decision making with little formalization in job design.

Common Organizational Designs: Bureaucracy
Another type of organizational design is bureaucracy. In a bureaucratic organization, there will be a great deal of structure. The tasks will be completed through specialization and they tend to be formalized through rules and regulations. Departments will be highly defined and authority is centralized. Decision making will follow a strict chain of command and there will be narrow spans of control. The bureaucratic organization will be one that is highly defined and very controlled.

Bureaucracies have both strengths and weaknesses.They tend to offer economies of scale that are beneficial to the organization. This structure will minimize duplication of personnel and equipment through organization of jobs and departments. Communication will be strong and

decision making is centralized. However, this type of structure is not without its weaknesses. In a bureaucratic environment, conflict often arises around organizational goals and unit goals, people can become obsessive

with problems because employees are not empowered to make decisions.

Common Organizational Designs: Matrix
The matrix structure is another common organizational design. This structure creates dual lines of authority and combines functional and product departments in a way to effectively meet organizational goals.
The key elements of the matrix structure is that it gains the interactions between the functional and product departments by coordinating complex and interdependent activities to help reach the goals set forth in an efficient
mission. The matrix structure also breaks down the unity-of-command concept as the lines of authority are blurred.

New Design Options: Virtual Organization
Virtual organizations are developing as acceptable organizational structures. This structure offers a small core organization that outsources many of its major functions to competent suppliers. Virtual organizations are highly centralized with virtually no departmentalization to provide maximum flexibility, focusing on what the organization does best. This type of organization reduces control over some of the key parts of the business.

New Design Options: Boundaryless Organization
Boundaryless organizations are set up to reduce the structure and tight control over work. They organize in a way to try to empower teams. They organize more in what is called T-form concepts in order to eliminate vertical and horizontal boundaries. They try to break down external

barriers to customers and suppliers through their structure and style of communication.

Why Structures Differ
Structures differ for a number of reasons. The first is that structure is set up to facilitate the strategy of the organization. If your organization is focusing on innovation as a key value, then they may be best served by an organic structure. Whereas, if they are looking at minimizing costs as their strategy, they will find that a mechanistic structure will work better. Strategy should always dictate structure instead of structure dictating strategy.
Structures will also differ by organization size the larger they get, they tend to become more mechanistic. They will differ by how much technology is used the more routine the activities, the more mechanistic the structure should be. Structures will also differ based on the environment in which they exist. The more dynamic the environment, the more organic the structure will need to be to facilitate quick decisions and fast turnaround.

Organizational Designs and Employee Behavior
Organizational designs are not a good predictor of employee behavior. Research has shown that work specialization can lead to increased productivity but lower job satisfaction. Specialization has not been popular as employees are seeking more intrinsically rewarding jobs. Span of control has mixed results depending on individual differences in employees and organizational factors. Participative decision making has been found to be positively related to job satisfaction. Various factors will influence workers in their job satisfaction and their willingness to stay with an organization.

4.4-Organizational Culture

Learning Objectives
After studying this part, you should be able to:
Define organizational culture and describe its common characteristics.
Compare the functional and dysfunctional effects of organizational culture on people and the organization.
Show how culture is transmitted to employees.
Demonstrate how an ethical culture can be created. Describe a positive organizational culture.
Show how national culture may affect the way organizational culture is transported to a different country.

Organizational Culture
Organizational culture is an important concept in studying how organizations behave. Culture has significant impact on how individuals interpret the impact of their behavior and make decisions about their actions. Culture is defined as a common perception held by the members of the organization or a sense of shared meaning.
Cultures have 7 primary characteristics that define the organization. They are: innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, and stability.

Do Organizations Have Uniform Cultures?
There are several different groupings that most cultures fit into. These groups describe the organization in an effort to help increase the understanding of how an organization works. There are different aspects of culture that need to be defined to help lay a foundation for understanding what culture is.
Dominant culture is the core values that are shared by the majority of

employees in the organization.Subcultures are when there are a variety of different cultures within the organization. These subcultures typically are divided by department and/or geographical separation.
Core values are the primary values that most people in the organization accept.A strong culture is one in which the core values are intensely held and shared by most.These definitions are key components of a culture and will help you further understand organizational culture.

What Do Cultures Do?
Cultures take on distinct functions. Some of the things that cultures do are defining the boundary between one organization and others. They also convey a sense of identity for the members of the organization. If the cultures are strong, they can facilitate a continuous commitment to something larger than self-interest over an extended period of time. Cultures also help people know what to expect in the organization and can thereby enhance the stability of the social system. Through doing this, it can also serve as a sense-making and control mechanism for fitting employees into the organization.

Culture as a Liability
Culture can also be a hindrance to an organization. A company can become institutionalized when people value the organization more than what they provide. When cultures are strong, they can become a barrier to change as their values may not align with the values needed to embrace or facilitate the change. Cultures that may pressure employees to conform can be a barrier to hiring, developing, and promoting a diverse workforce. Finally, if a merger or acquisition occurs, one of the most difficult things to do is to merge the two cultures, causing many mergers to fail.

How Culture Begins
Cultures start from the very beginning of the organization with the founders. Founders will tend to hire and keep employees who view things in a similar fashion. They will also try to get employees to think about

things the way they do and socialize them to their point of view and ways behavior to model after in order to succeed in the organization and to fit in.
How Organizational Cultures Form
Organizational cultures begin with the founder of the organization, continue through the hiring of people who see things similarly, and are enforced through top management and socialization.

How Employees Learn Culture
Employees learn the organizational culture through a number of avenues. They can gain an understanding of culture by hearing stories that present the past and provide explanations for current practices. Rituals, or repetitive sequences of activities, can reinforce the key values of the organization and provide insight into the culture. Material symbols such as dress codes, formal or informal, office size or style, and perks for key employees can denote who is important in an organization.
Language is another way to learn about organizational culture as employees will express themselves in certain ways to indicate membership in the organization.

Creating an Ethical Organizational Culture
As cultures are created, it is important to incorporate ethics into the cultural norms from the very beginning. Certain characteristics will help develop high ethical standards, such as a high tolerance for risk, so people are not afraid to make mistakes; low to moderate in aggressiveness so that unethical behaviors are avoided and a focusing on the means as well as the outcomes so that ethics is embedded in both.
A positive organizational culture is one that builds on employee strengths so that employees can develop and grow. It also rewards more than it punishes so employees are not afraid to try new things and feel good about what they are contributing. Finally, it emphasizes individual vitality and growth so that employees are operating at full potential.

4.5Organizational Development

Learning Objectives
After studying this part, you should be able to:
Organizational Development. Six Techniques.
Demonstrate two ways of creating a culture for change.

Organizational Development
Organizational development is an area of study that is set up to determine what an organization needs to improve their effectiveness and employee well being. Some organizational development values include respect for people, trust and support, power equalization, confrontation, and participation.

Six OD Techniques
There are six commonly used organizational development techniques. The first is sensitivity training that sets up groups that seek to change behavior through unstructured group interaction by providing an environment of increased awareness of others and of themselves. This increases their empathy, listening skills, openness, and tolerance for others. The second technique is the survey feedback approach where the organization will use a questionnaire to identify discrepancies among member perceptions and then follow up with discussions and plans for
improvement.
Process consultation is the third technique. In this technique there is a consultant involved who gives the clients some insights into what is happening in the organization and helps to identify a process for improvement.
The fourth technique is engaging in team building tools to increase trust and openness through increased interactions.Intergroup development is an organizational development tool that attempts to change the attitudes,

stereotypes, and perceptions that groups may have of each other.
Finally, the sixth commonly used technique is appreciative inquiry. This process seeks to identify the unique qualities and special strengths of an organization which they then use to build on to improve performance through a process. This process includes discovery (identifying the strengths of the organization), dreaming (speculating on the future of the organization), designing (finding a common vision), and destiny (deciding how to fulfill the dream).

Creating a Culture for Change: Innovation
Many organizations attempt to create a culture for change through encouraging innovation. There are many sources of innovation or the process of coming up with a new idea that helps to improve a current process, product or service. Innovation can occur through structural variables, long-tenured management, limitation in resources, or increased communication between units. For innovation to occur, there needs to be an idea champion who actively promotes the innovation.

Creating a Culture for Change: Learning
Learning is another key component of creating a culture for change. A learning organization is one that has developed the continuous capacity to adapt and change. Learning organizations share some common characteristics such as sharing the same vision, getting rid of old ways of thinking, viewing the organization as a system of relationships, open communication, and working together to achieve a shared vision.
Furthermore, to create a learning organization, managers must overcome some traditional organizational problems such as fragmentation, competition, and reactiveness. Learning can be managed by establishing a strategy that everybody understands and can buy into. Redesigning the
-taking and good mistakes will help to increase the effectiveness of the learning initiatives.