International Business & Management

2011/12 ISC Paris School of Management Sabine Bacouel-Jentjens (Dr. rer. pol.)

Module 2 Management & Leadership

Leaders = Managers

Differences between managers and leaders

MANAGER

LEADER

Oversees the current process well Must achieve balance Thinks execution Comfortable with control Problems are just that, and need resolution asap Procedure is king Instructs as to technique and process impersonal

Wants to create the future Needs to make change Thinks ideas Welcomes risk Sees problems as opportunities, is patient Substance is king Ideas and concepts

High emotional intelligence

Ideas or systems ?

Presence or future ?

What about rules ?

Change or status quo ?

Orders or inspiration ?

What about risk ?

What about emotional energy ?

What does a manager do?

Planning and budgeting

Establishing timetables and allocation ressources

Organizing and staffing

Establishing structure Staffing that structure with individuals Delegating responsibility Providing policies and procedures to help guide people Creating systems to monitor

Controlling and problem solving

Identifying deviations from plan Planning and organization to solve problems

=> Produces predictability and order

Consistent production of short-term results expected by stakeholders

Being on budget Being in time etc.

What does a Leader do?

Establishing directions

Developing a vision of the future Developing strategies for producing the changes needed to achieve that vision

Aligning people

Communication of directions in words and deeds Influencing the creation of teams and coalitions that support the vision

Motivating and inspiring

Energizing people to overcome major political, bureaucratic and resource barriers Satisfaction of unfulfilled human needs

=> Produces change

New products that costumers want New approaches to labor relations that help make a company more competitive

Big Five Personality Factors

Emotional Stability
stable, confident
nervous, self-doubting, moody

warm, considerate, tactful

Agreeableness

Independent, cold, rude

energetic, self-dramatizing

Extraversion

shy, unassertive, withdrawn

careful, neat, dependable

Conscientiousness
impulsive, careless, irresponsible

imaginative, curious, original

Openness
dull, unimaginative

Traditional Theories of Leadership: Trait Theories

Differentiate leaders from non-leaders by focusing on personal qualities and characteristics

Extraversion has strongest relation to leadership Conscientiousness and Openness to Experience also strongly related to leadership Agreeableness and Emotional Stability are not correlated with leadership

Traditional Theories of Leadership: Behavioral Theories

Behaviors can be taught traits cannot
Leaders are trained not born

Behavioral Theories: Ohio State Studies

Developed two categories of leadership behavior:
Initiating Structure

Consideration

Attempts to organize work, work relationships, and goals

Concern for followers comfort, well-being, status, and satisfaction

Behavioral Theories: University of Michigan Studies

Developed two dimensions of leadership behavior:
Production
Oriented

Employee
Oriented

Emphasize the technical or task aspects of the job: people are means to an end

Emphasize interpersonal relations and accept individual differences

Contemporary Approaches to Leadership

Leaders as communicators
Framing the meaning of events Leaders inspire followers through words, ideas, and behaviors:

Charismatic Leadership Transformational Leadership Authentic Leadership

Charismatic Leadership
Attributions of heroic leadership abilities when followers observe certain behaviors:

Vision Personal Risk-taking Sensitivity toward Followers Extraordinary Behaviors

Charismatic Leaders: Born or Made?

Charisma can be created by:

Developing an aura of charisma

Be optimistic

Be passionately enthusiastic
Commute with body, not just words

Drawing others in inspire others

Tapping into emotions bring out the potential in others

How Charismatic Leaders Influence Followers

Articulate an appealing vision Communicates a new set of values

Model behaviors for those values

Express dramatic behavior

When charismatic leaders do best

politics religion times of war start up crisis

The Potential Dark Side of Charismatic Leadership

Use organizational resources for personal benefit Remake companies in their own image Allow self-interest and personal goals to override organizations goals

Transformational Leadership

Transactional leaders - motivate their followers in the direction of established goals by clarifying role and task requirements Transformational leaders - inspire followers to transcend their own self-interests for the good of the organization

Why Transformational Leadership Works

Creativity
Followers are encouraged to be more innovative and creative

Goals
Followers pursue more ambitious goals and have more personal commitment to them

Vision
Engenders commitment from followers and greater sense of trust

Transformational Vs. Charismatic Leadership

Both positively related to motivation, satisfaction, performance, effectiveness, and profitability Transformational leadership MAY be a broader concept than charisma
The two forms may be the same

Three key roles of a leader

Inspiring a common vision

We choose to go to the moon.

Giving the ability for action

If you can dream it, you can do it

Developing co-operation

Leadership styles
Leadership style is the manner and approach of providing direction, implementing plans and motivation people:

Authoritarian or autocratic Participative or democratic Delegative or laissez-faire

Autocratic leadership

Person has complete power and makes decisions without asking someones else advice

Leader

Employees

Democratic leadership

Everyone is involved in making important decisions

Leader

Employees

Autocratic leadership

Approach based on the idea that people should be allowed to make decisions themselves without interference from authority

Leader

Employees

Situational factors

How much time is available? Are relationships based on respect and trust or on disrespect? Who has the information? You, your employees or both? How well are the employees trained? Internal conflicts Stress levels

Vocabulary

Management style: the way a manager behaves Hierarchy system of organizing people into different ranks or levels of importance Collective actions, or feelings involve or are shared by every member of a group of people Decision-making: process of reaching decisions Crisis-management: management style that concentrates on solving the immediate problems in a business, rather than looking for longterm solutions Change management: management style that aims to encourage organizations and individuals to deal effectively with change taking place in their work Subordinate: someone who is bossed by you Delegation of responsibility is the act of giving responsibility to another person Autocratic, democratic, laissez-faire (see definitions)

Exercises
Put into the correct place: laissez-faire democratic
autocratic

Leader makes decisions. Others are informed and carry them out.___________________________________ Leader discusses with others before the decision is made. The group can influence the decision that is made. _____________________________________ No formal structure to make decisions. The leader does not force his or her views on others._____________________

Twelve Angry Men (1957)

Film discussion: analysis of group behavior

Twelve Angry Men

8 Henry Fonda
9 Joseph Sweeney 10 Ed Begley 11 George Voskovec
12 Robert Webber

1 Martin Balsam

7 Jack Warden

4 E.G. Marshall 3 Lee J. Cobb 6 Edward Binns 5 Jack Klugman

2 John Fiedler