Leadership and Culture The Difficulty of Strategic Change

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Transcript of Leadership and Culture The Difficulty of Strategic Change

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Leadership and Culture The Difficulty of Strategic Change Slide 2 Approaches to the Study of Leadership Trait theories (emphasize HR selection?) Behavioral theories (emphasize HR training?) Contingency theories Slide 3 Trait Theories No set of traits that always occurs These traits are more strongly and consistently present in effective leaders: drive (high energy level) desire to lead honesty/integrity self-confidence intelligence job-relevant knowledge Slide 4 Behavioral Theories OSU (contd.) Rating high on both dimensions shows mostly positive results, however high i.s. can lead to turnover, grievances high consideration can lead to lower ratings by the leaders manager Slide 5 Behavioral Theories Ohio State Studies - two categories of behavior initiating structure - imposing organization on a situation consideration - concern for others; mutual respect Slide 6 Behavioral Theories University of Michigan studies also found two general dimensions employee-oriented actions that were relationship driven production-oriented actions that concentrated on the task UM studies viewed employee-oriented leaders as the most effective Slide 7 Behavioral Theories Blake and Moutons managerial grid concern for people concern for production Team management (considered best) Country club management Task management Impoverished management M-O-R management Slide 8 Fiedler Contingency Model Match up the leaders approach to employee interaction with position power and task structure Least-preferred coworker scale - determines basic style Diagnose: leader-member relations position power task structure Slide 9 Fiedler Contingency Model Leadership style may be task-oriented relationship-oriented A relationship-oriented style is best in moderately favorable situations A task-oriented style is best in either very favorable or unfavorable situations Slide 10 Path-Goal Theory Ensure units goal compatibility with those of the organization Facilitate the progress of employees toward their goals Make valued rewards available in the workplace Slide 11 Path-Goal Theory Leader behavior may be: directive supportive participative achievement-oriented Assumes that leaders can change their styles to in view of the work situation (in contrast to Fiedlers model) Slide 12 Charismatic Leadership Charisma is a leader trait It is a form of interpersonal attraction that inspires support and acceptance Theory first proposed by House (path-goal theory) Slide 13 Charismatic Leadership Three elements leader must envision future, set high expectations, and model behaviors consistent with expectations leader must energize others leader must enable others Slide 14 Transformational Leadership Goes beyond ordinary expectations Inspires new ways of thinking Stimulates learning by employees Transmits a sense of mission Slide 15 Power Bases Reward Referent Coercive Legitimate Information Expert adapted from French and Raven Slide 16 Organizational Culture Values, norms and beliefs that are shared among employees and passed along to new organizational members Culture evolves, but often slowly Strong or weak - strong cultures exercise control Slide 17 Organizational Culture Cultures may manifest themselves in jargon dress codes unwritten rules Many of you work what are some of the aspects of your organizations culture? Slide 18 Succession Insiders vs. outsiders Insiders represent a promotion from within Outsiders come from outside the organization but not necessarily from outside the industry Outsiders are more likely to be chosen if: the last CEO was fired no internal heir apparent board has a large % of outside directors Slide 19 Organizational Decline Stages of organizational decline blinded - decline begins inaction - will things get better on their own? faulty action - could be escalation of commitment or some other mistaken action (executive replacement most likely in this stage) Slide 20 Organizational Decline Stages of organizational decline (contd.) crisis - resources may be getting scarce; last chance for reversal in competitive environment; otherwise, slow decline continues; bankruptcy (for reorganization) an option dissolution - sell company, its assets; bankruptcy (for disposal) possible Slide 21 Downsizing: A Tool for Decline Planned elimination of positions or jobs - a retrenchment strategy Guidelines Eliminate unnecessary work (not across the board cuts) Outsource Think in terms of investments Communicate Invest in remaining employees Transfer employees