Lecture 3

„Doing your best“ isn’t a goal -> It isn’t specific enough and has no benchmark

As a leader, you are responsible for working with your team to set:

Unit goals:

what your group as a whole will try to accomplish.

Individual goals:

how each employee will contribute to achieving the unit goals.

Unit and individual goals should emerge from the strategy of the

company as a whole.

For example, if your organization's strategy is to become the

market share leader through rapid product introductions, your

unit and individual goals should serve that strategy.

It’s important for motivation that the subordinate knows their contribution to the goal

Conclusion: You as the leader have to find out which type of goal & which difficulty in the goal I can transfer to my subordinates

What does this depend on? What is implicated?

Refers to Situational Leadership -> You need to give tasks according to their development level

If the goal is too complex, we don’t have the commitment

If the goal is too easy, person will leave the company and search for another challenge

Problem circle. All 5 points belong together and can affect each other

Feedback can be appreciation/the right salary, but it can also be that the leader is asking the subordinates for input. This results in the subordinates to put in more effort and be more committed

(These are results of the goal-setting process:)

Goals affect performance in four ways:

1. Directive (Goals have a directive function.

   What is the result of a directive function?

   ->A goal shows you in which direction you have to look at

   ->It gives you the idea of relevant activities to fulfill the goal)

2. Energizing (High goals lead to greater effort and therefore to greater productivity

   Easy goals are boring -> Intrinsic motivation is shrinking)

3. Persistence (Higher goals cost more energy/working with more rapid input)

4. Action (Action implicates that you are doing the relevant activities to achieve a goal)

The interpretation of SMART stands for:

Specific (Clarity)

Measurable (alternative: motivating)

Achievable (alternatives: agreed, accurate, aligned, attainable)

Relevant (alternative: realistic)

Timely (time-bound)

Construct a goal that is aligned with the SMART principles:

We want to raise our earnings in the next quarter by 25%. We want to achieve that by cutting production costs & reducing labor expenditures

-It is important to receive commitment. If the people don’t exactly know what to do, they will lose motivation

-The performance will increase with SMART goals

1. Get an overview of the current situation in your company/field of interest

2. Analyze potential desirable areas of improvement

3. Define a specific desired state you want to be in

4. Strategize on potential ways to approach this state

5. Incorporate Unit-/ & Individual Goals -> Set these goals in a way that achieves an appropriate level of complexity

6. Define clear and realistically achievable focus points along the way to remain motivated and in control

Different Ideas from plenum:

-Coaching -> Belongs to Feedback and Commitment. Part of it also belongs to Clarity

-Write down vision of a company and its values. Set direction and provide feedback after the goal is achieved.

-Leader should define own intrinsic motivation -> The discuss with- and motivate team -> Critical thinking and sustainable problem solving

-Include team into goal setting process. Verbal communication

Goal commitment

Feedback

Task complexity

Goals and risk

Learning goals and performance goals

Goal conflict

House said that the main role of a leader is to motivate his

followers by:

->

Increasing or clarifying the (group's/followers') personal

benefits of striving for and reaching the groups/followers

goals

->

Clarifying and clearing a path to achieving the group's

goals

Another Core Idea: The leader should select the best style to meet the subordinates’ motivation/emotional needs

The leader should evaluate the task characteristics and define a suitable path

One of the most important tasks for a leader: He has to be the obstacle remover

These 4 (belong/are aligned with) the situational leadership model

We have 4 behaviors, then we can play with these tools in this approach. In situational approach we also had 4 behaviors and played with the development level. The development level here is is diversified in task characteristics and subordinate characteristics. You have to evaluate the subordinate (with experience) and apply the right leadership style. Another tool is thinking everyday that you’re the obstacle remover. This is more diversified than the previous one. The next approaches will be more diversified. The leader should help the subordinates to grow in their task. The leadership style should fit the emotional needs and fun of the subordinates.

Directive

Supportive

Participative leadership

Achievement-oriented leadership

Directive leadership style: Clarifying how the task should be done, setting clear standards, telling subordinates how to complete the task

What could be a problem?

->Missing freedom & it is micromanagement. Micromanagement is a motivation-killer.

We need balance between micromanagement and freedom. This depends on the evaluation of the development level. Make the rules clear to the subordinate, but don’t micromanagement

It is important to set a time limit for the tasks (time-bound, from goal setting theory)

Supportive leadership behavior: It is an important framework for building team spirit and being a role model. You have to convince the subordinates that you are a role model. Be friendly and approachable. Attend to the well-being of your coworkers. They should like coming to work and have fun. Also using supportive behaviors to make the work environment pleasant which boost the motivation of your coworkers.

Participative leadership style: Include everyone (e.g. even the intern can have constructive ideas). It has something to do with invitation: Invite them to share their criticism or remarks. This leads to transparency -> This is the future of leadership. It is always a two-way communication. Seeking for their ideas and expertise. It is important to integrate their ideas in your decision making. Be fair and give credit to the subordinate.

Achievement-oriented leadership style: Behavioral leadership approach where people only see their coworkers as tools to finish certain tasks.(Find it in the leadership grid). In this achievement-oriented leadership in path-goal theory you challenge the people to give them challenging goals. You can balance this with the development level and see which level you should approach from. Seeking for permanent improvement. This is necessary for leading the change. Also demonstrate a high degree of confidence in the competence of your subordinates (No micromanagement)

Find the fine line between being overly friendly and remaining professional

-Treating everyone equal and fair

-Constructive positive feedback

-Accepting mistakes so they can learn

-Have respect to their status in the organization

-Respect, trust, confidence and team spirit

Leaders must choose a leadership style that best meets

subordinates motivational needs:

-choose behaviors that complement or supplement what is missing in the work setting

-enhance goal attainment by providing information or rewards

-provide subordinates with the elements they need to reach their goals

It depends on subordinates’ and task characteristics if a type of leader behavior is motivating

1. Need for affiliation

   -Being part of a group. The degree of need for affiliation has a consequence on which leadership style to choose. This is similar to the development level

   -Question: Which leadership style fits people with a high need for affiliation?

   -Supportive style of leadership

   -Participative style of leadership

   -> You give credit for the contribution and it gives them more satisfaction

   
   

2. Preference for structure

   -Question: Which leadership style fits people with a high need for structure?

   -Directive leadership style

   
   

3. Locus of control

   -Internal locus of control: This means the subordinates feel in charge of their tasks. They are confident (D4 of situational leadership)

   -> Best leadership style: Participative leadership style

   
   

   -External locus of control: Subordinates accept the control form outside. Being controlled from outside

   -> Best leadership style: Directive leadership style

1. Subordinate’s tasks

2. Formal authority system (If there are weak norms and no cohesion, you need leaders to make the situation clear (Directive leadership style))

3. Primary work group (If the norms are weak in a work group, the leader should assist to improve these norms (Supportive leadership style)

What can you do if the task is unclear/ambigous?

-> Directive leadership style to provide a clear directive

What can you do if the task is repetitive/boring?

-Supportive leadership style

Strengths:

-Framework to understand subordinates‘ satisfaction and performance

-Gives practical recommendations

-(You have a broader view on your leadership situation)

Weaknesses:

-Only moderately supported in empirical research (Problem: Remote work etc.)

-Treats leadership as one-way event

Leadership is a process that is centered on the interactions between a leader and subordinates (Relationship of two parties. They are integrated parts. There can be a high degree of communication. The relationship between follower and leader can also be in a weak degree of communication.)

LMX theory challenges the assumption that leaders treat followers in a collective way

Directed attention to the differences that might exist between the leader and each of his/her followers

Question: What are the elements for an in-group?

-One aspect is trust. In the in-group you can negotiate roles between leader and follower. You have to have confidence in the expertise of your peers. They are equal. Higher degree of reciprocal influence. Trust, Respect and liking (Liking on the 6 bases of power; Information power plays a big role in LMX theory)

What are the elements for an out-group?

-Formal aspects: Formal communication based on job contract (Task, salary etc.; No reciprocation). Weak communication between follower and leader.

LMX theory of leadership involves a three-step process:

1. Role Taking (Stranger Phase)

2. Role Making (Role Making)

3. Routinization (Routinization)

1. Role Taking:

   New in a company (4 categories):

   1. Role: is scripted

   -> Situational leadership approach D1

   2. Influence: comes from leader in directive leadership style (over time)

   3. Exchange: is low quality (leader doesn’t know you and your strengths)

   4. Interest: is mainly self-interest

1. Role Making:

   1 year in the company:

   1. Role: Test your role, more standing

   2. Influence:

   3. Exchange: Mixed, more quality exchange

   4. Interest: Self-interest & Communication with team peers (Others)

1. Routinization:

   3 years in the company:

   1. Role: Role can be negotiated, you will be seen, more intrinsic

   2. Influence: Reciprocal influence

   3. Exchange: Exchange quality is high. Your words have power. Because leader looks for leaders of tomorrow

   4. Interest: Not only self, but also group-oriented. Looking for team spirit and (emotional) cohesion

Role of the leader:

-Very good communication should be developed towards in- and out-group. Everyone should be included. The goal for the leader is to have good communication to everyone in the company. The result should be that there is no out-group and everyone is a group. Open door concept. Move around the company to communicate. Leader should build trust and respect

Key message of LMX: Have high quality communication and have the company adapt these values

Question: What is the benefit to the leader of having a high quality relationship with his/her employees?

-The employees feel included and can unleash their potential. They are more committed. Building a good power base. Increased employee retention. More engagement (Result is going beyond expectations -> Going over the job description -> They are collecting more knowledge & professionalism -> Better competition standing

-Everyone benefits from mutual good communication -> New joiners feel included and heard -> They can become leaders of tomorrow

Question: What are the advantages of studying group leadership from a dyadic perspective?

-Followers aren’t treated in a collective way, this enhance the communication. Increased trust

-Takes into account the concerns of both parts in the communication process. Better decision making. Increased job satisfaction. More creativity. More power of change.

-Good communication is contagious. This impacts the team and their performance

-> Employee turnover should reduce

-> Also higher quality of promotions in the company

-> Greater organizational commitment to the tasks and goals of the company

This takes place when a new member joins a team and their abilities are initially assessed by the leader

This is where a role is created for the member

Building trust is also a key factor to this stage

Additionally, the member is classified into one of two groups:

the IN-group or the OUT-group

This is where routines, norms and expectations are established and both parties get an insight into how they both work/perform

The central concept is the dyadic relationship

LMX theory describes leadership

in-groups and out-groups within an organization

differences in how goals are accomplished using in-groups vs. out-groups

Relevant differences in in-group vs. out-group behaviors

LMX theory prescribes leadership - emphasizes that a leader should develop high-quality exchanges with all of her or his subordinates, rather than just a few

Leader forms special relationships with all subordinates

Leader should offer each subordinate an opportunity for new

roles/responsibilities

Leader should nurture high-quality exchanges with all subordinates

Leader should focus on ways to build trust and respect with all subordinates

(entire work group becomes an in-group)

Some strenghts:

Only leadership approach that focuses on the dyadic relationship

Directs our attention to the importance of communication in leadership

Some weaknesses:

Basic theoretical ideas of LMX are not fully developed

Measurement of leader-member exchanges is being questioned:

for example no empirical studies have used dyadic measures to

analyze the LMX-process