MGMT3403 Leadership Notes

Module 1 Motivating employees

Motivation = a person’s efforts are energized, directed, and sustained to attain a goal.
3 causes:
1.​ Direction: choices
2.​ Intensity: energy
3.​ Persistence

Maslow’s hierarchy of needs theory

Basic need
1.​ Physiological
2.​ Safety: security and protection
Psychological need
3. Social: affection, belongingness, acceptance, friendship
4. Esteem: self-respect, autonomy, achievement, status, attention
Self-actualization
5. Self-actualization: growth, self-fulfillment

→ Purpose for leadership: a means of self-actualization

Herzberg’s two-factor (motivation-hygiene theory)

●​ Hygiene factors: reduce job dissatisfaction but dont motivate
●​ Motivators: increase job satisfaction and motivation

Three-needs theory
1)​ Achievement ●​ challenging tasks and goals
●​ Regular feedback
●​ Public recognition

2)​ Affiliation ●​ group bonding activities

3)​ Power ●​ empower, delegate, clarify expectations

Self-determination theory
●​ Intrinsic motivation (driven by an interest)
●​ competence + belongingness + autonomy
●​ Extrinsic motivation (comes from outside)
●​ Money, praise, competition, pressure

Cognitive evaluation theory (sub-theory of SDT)

Observation:
●​ provide extrinsic reward for intrinsic rewarding behavior -> motivation decreases
●​ Eliminate extrinsic reward -> purpose of work shift from external to internal
●​ Punished by reward: rewarding creativity hurts motivation
Take away for SDT:
●​ people prefer to have control over their actions
●​ Reduction on intrinsic motivation

Modified SDT:
Motivation level (performance): External < introjected < identified < integrated < intrinsic
1.​ Autonomous motivation
●​ autonomously regulated activities- intrinsically motivated
●​ Increase performance and wellness
●​ Extrinsic-motivated activities can be autonomously motivated if engaged with
authenticity and vitality
2. Controlled motivation
●​ extrinsic rewards limit motivation
●​ Narrow employee’s efforts and outcomes
●​ Negative spillover effects on performance
Job Characteristics Model

●​ Core Job dimensions → psychological states → outcomes

Five core job dimensions

●​ Skill variety: Can the employee use different skills and talents in the job?
●​ Task identity: Does the job require completion of a whole and identifiable piece of
work?
●​ Task significance: Does the job have substantial impact on lives or work of other
people?
●​ Autonomy: Is the employee free to schedule his work and procedures to carry out
work?
●​ Feedback: Can the employee obtain direct and clear information about his
performance effectiveness?

Expectancy Theory: action of individual depends on the expected outcome of the act and
its attractiveness

●​ individual effort → performance → rewards → goals

Motivation = E x I x V

1.​ Expectancy: Will my effort lead to high performance?

2.​ Instrumentality: Will performance lead to outcomes/rewards?
3.​ Valence: Do I find the outcomes desirable?

Solution: Expectancy helps workers see the links between effort, performance, rewards and
goals

Goals: intrinsic to the experience of positive emotions

Goal-setting Theory: specific goals increase performance; and difficult goals (when
accepted) → intensity and persistence → higher performance

●​ Goals: tell employees what to do and the amt of effort needed

●​ Situations that goals can lead to higher performance:
○​ Specific, difficult goals
○​ receive feedback on progress
○​ high self-efficacy (individual’s belief that
he can perform a task)
○​ high goal commitment
○​ participate in goal-setting
 ●​ Individual goal-setting: (1) Regulatory focus theory; (2) Self-efficacy theory

Regulatory Focus Theory: different motivational tendencies to approach pleasure and

avoid pain (reach goal)

Promotion Focus Prevention Focus

●​ maximize positive outcomes ●​ minimize negative outcomes

●​ hopes and achievements ●​ duties and responsibilities

●​ values speed ●​ values accuracy

●​ see big pictures ●​ see the dots of paint (details)

perform on creativity, generative tasks perform on analytical tasks

Self-Efficacy Theory (aka social cognitive/learning theory): individual’s belief that he is

capable of performing a task

Effect: set higher goal; more persistent; adjust more quickly

Ways to increase self-efficacy:

1.​ Enactive mastery (gain experience): e.g. training programs

2.​ Modeling (see someone do the same)
3.​ Verbal persuasion (someone convince you that you have the skills)
-​ Pygmalion effect - self-fulfilling prophecy (believe sth can become true, i.e.
manager said i could do it, and i did)
4.​ Arousal
Reinforcement theory:

-​ behavior is a function of its consequences

-​ good stuff happened/stopped → behaviour ↑/↓
-​ bad stuff happened/stopped → behaviour ↓/↑
-​ can change someone’s behavior by reinforcement, i.e. reward and punishment
-​ reward: behaviour you want
-​ punishment: prevent punishment you dont want

Equity Theory: compare job’s input-outcomes ratio with others (referents), then correct any
inequity

-​ distributive justice: concern the amount and allocation of rewards

-​ procedural justice: concern the process to distribute the rewards

Underrewarded Equity Overrewarded

Summary (Means to Motivate employees)

Autonomy -​ Flextime, job sharing, telecommunting

Competence -​ Timely feedback

-​ Set challenging goals

Belonging -​ Teamwork
-​ Company retreat

Equity -​ Pay-for-performance programs: compensation plans that pay

employees based on their performance

Reinforcement -​ valued rewards (perks, snacks, Friday night drinks, status)

(Instrumentality) -​ Employee recognition programs: attention, approval

Self-efficacy -​ training programs

(Expectancy) -​ role model

Valence -​ Know your people: what do they value? what motivates them?

JCM -​ Task significance and identity

-​ skill variety
Module 2 Leadership Theories
Framework:

●​ Leadership: influence a group to achieve a vision or set of goals

●​ Traits → leadership behaviours + contingency (situational) → leadership effectiveness
○​ Leadership effectiveness: 1) overall; 2) task performance; 3) satisfaction with leader

1. Trait Theories
●​ predict leadership by personal qualities and characteristics
●​ Traits: enduring in born characteristics
●​ Personality: ways a person react to and interact with others

Big 5 personality – OCEAN

-​ Openness: intellect
-​ Conscientiousness
-​ Degree of organization, persistence, motivation in goal-directed behavior
-​ achievement-oriented, dutiful (careful), disciplined, dont give up easily
-​ Explains the most variance in job performance
-​ the strongest relation to group performance
-​ Extraversion (sociable, talkative, relationships)
-​ Agreeableness
-​ Neuroticism (emotional stability)​

Takeaways:

●​ Task competence-related leader traits: conscientiousness, openness → better

execution, ensures role clarity, structure and goals → higher task/group performance
(effectiveness)
●​ Interpersonal attributes: Extraversion and Agreeableness → invoke strong
emotional ties and build high-quality relationships with followers → higher satisfaction
(affective) (effectiveness)
●​ Conscientiousness and Extraversion strongly related to leadership effectiveness

Core self evaluation: how individuals think about their capabilities, competence, and worth

Self-monitoring: ability to behave differently in different situations

Proactive Personality: identify opportunities, show initiative, take action and persevere until
meaningful changes
Personality - The Dark Triad

-​ Machiavellianism: Pragmatic, emotionally distant, believe the ends justify the means
-​ employee’s low job satisfaction and high emotional exhaustion
-​ Narcissism: tendency to be arrogant, self-importance, require excessive admiration,
have sense of entitlement
-​ easy to spot and manifest initially → dark side appear later
-​ Psychopathy: lack of concern for others, lack of guilt or remorse when their actions
cause harm
-​ employee’s low job satisfaction

Conclusion:
1.​ Traits can predict leadership
2.​ different traits predict different leader effectiveness (task vs relational)
3.​ to explain leader effectiveness, behaviors has higher variance than trait

2. Behavioral Theories
●​ Assume behaviors can be taught, not born
●​ while traits are inborn characteristics

The Ohio State Studies:

1.​ initiating structure (organize work, work relationships, goals) → performance
2.​ consideration (follower’s comfort, well-being, status) → satisfaction
-​ → more effective than initiating structure

Initiating Structure Consideration

Leader effectiveness moderate strong

employee motivation strong strong

employee satisfaction moderate strong

unit performance moderate moderate

Blake and Mouton’s Managerial (Leadership) Grid: balance worker’s well-being (concern for
people) and efficiency of task completion (concern for task)

●​ Country club style: concern people not concern task

●​ team style: concern both people and task
●​ Impoverished style: both not concern
●​ Produce or perish style: concern task not people
3. Contingency Theories
-​ Assume no leadership style is the best.
-​ Leadership effectiveness depend on proper match between style and situation

Fiedler Leadership Model: matching leader’s style and level of control

Steps:
1.​ Take the Least-Preferred Co-worker (LPC) Questionnaire
-​ Task-oriented or relationship-oriented
2.​ Assess the Situation
-​ Leader-member relations: trust, respect
-​ task structure: structured or unstructured
-​ position power: hiring, firing, rewards
3.​ Identify the match (best type): Task-oriented or relationship-oriented leader

Situational Leadership Theory: select right style on follower’s readiness (abilities and
motivation)
1.​ Unable + Unwilling: give clear and specific directions
2.​ Unable + Willing: give clear directions + supportive
3.​ Able + Unwilling: Supportive and Participative
4.​ Able + Willing: Do nothing
Path-Goal Theory: give followers info, support and resources to achieve goals

Directive Leadership: set clear expectations and goals

-​ cope with vague and unclear job responsibilities

Supportive Leadership: Be friendly

-​ useful with a team that is new, inexperienced, lacking confidence

Participative Leadership: invite followers to participate in decision making → enhances

commitment
-​ useful where follower has high abilities

Achievement-oriented Leadership: challenges followers to perform at the highest levlel

possible
-​ works best when situation is complex and worker is skilled and ready

Leader-Participation Model: determine the amount of participative decision making

Empowering vs Directive leadership

●​ Empowering leadership: share power with subordinates and raise level of
autonomy and responsibility
●​ Directive leadership: structuring subordinates’ work through providing clear
directions and expectations
●​ eg. empowering leaders support people when they fail, directive leaders punish them
Transformational vs Transactional leadership
-​ complement each other; best leaders should have both

Transactional: lead by social exchange

-​ Method (less effective and passive): e.g. Laissez-Faire, Management by Exception,
Contingent Reward
Transformational: simulate and inspire followers to achieve extraordinary outcomes
-​ Method (more effective and active): e.g. Individualized Consideration, intellectual
stimulation, inspirational motivation, idealized influence
-​ wont exploit others for self-interest
-​ transcends personal interest for larger, positive visions of the future

Transformational leadership: lower turnover and stress, higher productivity and satisfaction

Authentic Leadership
-​ know who they are, what they believe in and value, and act on those values and
beliefs openly and candidly

Ethical leadership
-​ behave ethically and foster a climate that reinforces group-level ethical conduct
-​ set the moral tone for organization, must set and adhere to high ethical values
-​ helps with OCB (organizational citizenship behaviour) and employee voice

Servant Leadership

Leader-Member Exchange (LMX) Theory

-​ create ingroups and outgroups, ingroup status will have higher performance ratings,
less turnover and greater job satisfaction
-​ ingroup members have higher competence/ demographic, attitude and personality
similar to leaders
Module 3 Envisioning and engaging
Charismatic leadership
●​ symbolic leader influence rooted in emotional and ideological foundations
●​ Optimism, passion, tapping into emotions, communicating with body
●​ Employee reduce uncertainty and feeking if threat
●​ Increase devotion and loyalty
●​ Charisma + actual competence = LT effectiveness

Vision and purpose

Why do we need a purpose:
●​ Meaningful life: serve sth you believe is bigger than the self
●​ Intrinsic motivation
●​ Work engagement

Authentic leaders
●​ create trust
●​ Encourage open communication
●​ People have faith in them

Charismatic leadership tactics: both warmth and competence

●​ verbal (words)
●​ Metaphor
●​ Stories and ancedotes: convey warmth, authenticity, and relatability
●​ e.g. rags to riches ( hidden value -> trigger and strgguke -> deserved
recognition)
●​ e.g. hero’s journey( depature, initiation, return)
●​ Share the sentiments of the collective (read and share feelings)
●​ Set high expectations for themselves (role model) and followers
●​ Communicate confidence
●​ Use contrast, lists and rhetorical questions
●​ Non-verbal (body)
●​ Body gestures
●​ competence: expansion vs contraction cue
●​ warmth: avoid blocking cues and distancing cues
●​ Facial expressions: eye contact, emotions, smile (show warmth, but smile too
much hurt competence)
●​ emotional contagion: people’s emotion affected by other’s emotions
●​ Voice tone: talk in cadence, pauses, deeper voice, avoid uptalk (“uptalk” hurts
competence)

*** Balance Competence with Warmth

Module 4: Emotional Intelligence

What is emotional intellignence? (4 key ingredients)

1.​ Self-awareness: Perceive own emotions
2.​ Other awareness: perceive other’s emotions (empathy)
3.​ Self-management: Understand the meaning of these emotions (cognitive) and
regulate them to achieve goals
4.​ Relationship management: Regulate self and other’s emotions to develop good
relationships

-​ Effect: raise teamwork effectiveness → job performance

-​ How to enhance EI?
1)​ Self-awareness
2)​ Understanding What Triggers Emotion
3)​ Regulate OWN emotions
4)​ Read other’s emotions
5)​ Regulate other’s emotions
-​ two domains: affective, cognitive
Emotions vs Moods
-​ Emotion: Intense, short-lived feelings that are directed at someone or something
-​ Moods: Feelings that tend to be less intense than emotions, more enduring and lack
a contextual stimulus

Dimensional approach to emotion (Wilhelm Wundt, James Russell, Lisa Feldman Barrett)
-​ emotions are a combination of several psychological dimensions
-​ two dimensions: (1) high to low; (2) pleasantness to unpleasantness
What are the key appraisals associated with anger, guilt, sadness, pride, and gratitude?
-​ Primary (personal goal) + secondary (self/other attribution, coping potential/future)
●​ Anger: goal obstruction + other blame (concrete offense/slight)
○​ Action: aggression, hostility, retribution
●​ Guilt: goal obstruction + self-blame (behavior)
○​ Action: trying to repair relationship, apologies
●​ Sadness: irrevocable loss; goal obstruction + unchangeable situation
●​ pride: goal congruence + self attribution (credit)
●​ gratitude: goal congruence + other attribution (credit)

What is emotional labor, deep acting, and surface acting?

●​ Emotional labor: An employee’s expression of organizationally desired emotions
during interpersonal transactions at work
○​ Surface acting: hiding one’s inner feelings and foregoing emotional
expressions in response to display rules
→ exhausting → lead to depletion
○​ Deep acting: trying to modify one’s true inner feelings based on display rules
→ less exhausting

Which coping strategies are the most effective in handling stress?

→ Most effective: (7) planful problem solving and (8) positive reappraisal

1 Confrontive coping stand my ground and fight for what I want

2 Distancing act like nothing ever happened

3 Self-control try to keep my feelings to myself

4 Seeking social support talk to someone who could help

5 Accepting responsibility criticize or lecture myself/

realize I bought the problem to myself

6 Escape-avoidance wish the situation would go away

7 Planful problem solving I know what have to be done, so I double my efforts to

make things work; Make a plan and follow through.

8 Positive reappraisal Find new faith, rediscovered what’s important in life

What is emotional contagion (情緒感染)?

-​ The tendency to automatically mimic and synchronize expressions, vocalizations,
postures, and movements with those of another person's → converge emotionally
(i.e. affect whole group members’ mood)
-​ Positive emotional contagion group members (cheerful enthusiasm) experienced
improved cooperation, decreased conflict, and increased perceived task
performance.
Affect-improving
-​ cognitive re-appraisal → strengthen target’s perceived coping potential
-​ challenge stressors: factors promote personal growth and work achievement
-​ hindrance stressors: factors constrain personal growth and work achievement
-​ Application → positive emotion
-​ provide negative feedback in supportive ways
-​ frame hindrance stressor as challenge stressor
-​ provide coaching on how to improve skills or reach goals
Module 5: Making Decisions
Decision Making Process

1.​ Identify a Problem Amanda is a sales manager whose reps need new laptops.

2.​ Identify the Decision Amanda decides that memory and storage capabilities, display
Criteria quality, battery life, warranty, and carrying weight are the relevant
criteria in her decision

3.​ Allocate Weights to the Weight the criteria and prioritize them
Criteria

4.​ Develop Alternatives Amanda identifies eight laptops as possible choices

5.​ Analyze Alternatives Calculate total score for each alternatives

6.​ Select an Alternative Choose the alternatives with the highest score

7.​ Implement the Alternative

8.​ Evaluate Decision Alternatives

Rational Decision Making: choices that are logical and consistent and maximize value
●​ Assumptions of the Rational model:
-​ Decision maker has complete information and is unbiased
-​ Chooses option with highest utility

●​ Bounded rationality: decision making that is rational, but limited by an individual’s

ability to process information
-​ Satisfice: accepting solutions that are good enough

Intuitive Decision Making: making decisions on the basis of experience, feelings, and
accumulated judgement
What is perception?
Perception:
-​ a process by which individuals organize and interpret their sensory impressions in
order to give meaning to their environment
-​ People behave according to their perceptions of reality, not reality itself
-​ Decision-making occurs as a reaction to a perceived problem

Perception influences:
-​ awareness that a problem exists
-​ the interpretation and evaluation of information
-​ Bias of analysis and conclusions

Understand each of the decision-making biases and provide an example for each
-​ Cognitive biases: systematic errors in our thinking that are caused by us projecting
experiences from the past into the present moment

1 Overconfidence holding unrealistically positive views of oneself and one’s

bias performance

2 Self-serving bias taking quick credit for successes and blaming outside factors for
(寬以待己) failures
e.g.

3 Confirmation bias people seek out information that reaffirms past choices while
discounting contradictory information

4 Selective selecting, organizing and interpreting events based on the

perception bias decision maker’s biased perceptions
-​ we see what we want to see: we select information that
supports our viewpoints while discounting information
that threatens our viewpoints.
only focus on what is within the bounds of our goal
e.g. managers only focus on their own functional areas when
identifying problems about the whole steel mill organization

5 Anchoring effect fixating on initial information and ignoring subsequent

information
 (we rely heavily on the first piece of information we receive
useful during negotiation)
e.g. 扮減價 --> 覺得件貨平左 (economist subscription: print
edition only makes web and print price look good)

6 Contrast effect evaluation of a person’s characteristics that is affected by

comparisons with other people recently encountered who rank
higher or lower on the same characteristics
-​ we do not evaluate a person in isolation
-​ our reaction is influenced by other people we have
recently encountered
-​ Perceptual distortions can be influenced by seemingly
insignificant things such as an applicant’s place in the
interview schedule (e.g., first, middle, or last), etc.

7 Availability bias base judgements on easy-to-find information and on the most

recent events → lose objective decision making

8 Representation drawing analogies and seeing identical situations when none

bias exist
e.g. The best student in your Leadership Development class this
semester writes poetry and is rather shy and small in stature.
What was the student’s undergraduate major:
Arts or Business

9 Hindsight bias mistakenly believing an event could have been predicted once
the actual outcome is known
(當答案出現 --> 就話自己一早估到)

10 Randomness bias creating unfounded meaning out from events, comes from the
need to make sense of the world,
-​ eg. gambler’s fallacy

11 Prospect theory losses loom more than gains → the thought that the pain of
losing is psychologically more powerful than the pleasure of
gaining
loss aversion: tendency to be risk averse concerning gains,
eg. sure gain of 240 or 0.25 chance of winning 1000 and
0.75 of winning nothing

12 Sunk Cost Errors stick with a decision even when there is clear evidence that it is
(Escalation of wrong
Commitment) Eg. Trying to revive inevitably dying projects
Getting into bidding wars
 13 Fundamental tendency to underestimate the influence of external factors and
Attribution Error overestimate the influence of internal factors when making
(嚴以律人) judgements about the behavior of others
eg. man shaving on train

Decision making biases harm group cohesion and justice perceptions (and hurt
relationships)
-​ person perception biases in group work
-​ eg. mean product of total group work done >100%
-​ one’s own contributions to a joint product is more readily available, and more

Prevent decision-making biases

Awareness Learning about the biases helps

Review the past Seek out your own patterns

Change the people Bring in outside perspective

Change the group Recruit members with diverse expertise/functional

dynamics or background
composition

Check assumptions and

actively seek
disconfirming evidence
Module 6: Leading Teams

Team Composition: overall mix of characteristics among people in a team

-​ Roles (behaviors for a position)
-​ Diversity (different functional backgrounds) → improves group performance in LT, but
also increase team conflict

Faultline (自動自覺小圈子)
-​ perceived divisions that split groups into two or
more subgroups based on individual differences
such as gender, race, age, work experience, and
education
-​ happened when the group’s diversity increases
-​ Effect: split → detrimental to group functioning and
performance

Compare the strengths and weaknesses of group vs. individual decision-making.

Groupthink: people tend to conform with group decisions to avoid feeling outcast, leading to
errors in decision making
-​ Why? due to group pressure
-​ members rationalize away resistance to assumptions
-​ doubters are pressurized to support the majority
-​ doubters keep silent/minimize their misgivings
-​ interpret silence as a “yes” vote

-​ Effect:
-​ deteriorate individual’s mental efficiency, reality testing, and moral judgements
-​ Groupshift: group members exaggerate their initial position (shift toward
extremes) after group discussion
-​ Group Polarization: tendency for groups to show a shift towards the
extremes of decision-making when compared to decisions made by
individuals (group SD smaller)

-​ How to minimize groupthink?

-​ Limit: Limit group size to less than 10 (“two pizza rule”)
-​ Include: group leaders actively seek input from all members and avoid
expressing their own opinions
-​ Appoint: Appoint a “devil’s advocate”
-​ Stimulate: Use exercise to stimulate discussion of diverse alternatives
Understand the following team-related concepts:

Role conflict 1.​ intra-role conflict: when the same person receives contradictory
role expectations from others in the group
-​ incompatibility among the behaviors and expectations
associated with a single role
2.​ inter-role conflict: when different groups of people consider you to
have different roles, and these roles are opposing one another

Shared mental Team members’ shared knowledge and beliefs about how the work gets
models done by the team
-​ e.g. goals and strategies, roles, norms

Team identity -​ team member’s affinity and sense of belongingness to his team
-​ Predictors:
-​ distinctiveness of the group’s values and practices (e.g. unique
team name)
-​ prestige of the group
-​ salience (你唔係個team就排你) of the out-groups

Team team members are emotionally attached to one another and motivated the
Cohesion team because of the attachment → affect management

Psychological “being able to show and employ one’s self without fear of negative
Safety consequences of self-image, status or career”

How to improve psychological safety?

-​ check in with your employees (concern them as people)
-​ actively solicit questions
-​ let employees share their thoughts (e.g. anonymously or privately)
-​ show value and appreciation for ideas
-​ promote positive dialogue and discussion

Team efficacy Team’s collective belief among team members to succeed at their tasks
-​ Enhance by motivating/confidence building (e.g. pep talks,
transformational leadership)

Team size -​ negatively affects efficiency, cohesion and social loafing

(人多手腳亂) -​ good for diversity of ideas generated

Social loafing a person exerting less effort to achieve a goal when they work in a group
(人多好辦事) than when working alone
Compare and contrast the three group decision-making techniques.
1.​ Interacting groups
-​ meet face-to-face and rely on verbal and non-verbal interactions to communicate
2.​ Brainstorming
-​ generate a list of creative alternatives. no criticism is allowed.
-​ after ideas are recorded, discuss and analyze the best solution.
3.​ Nominal Group Technique (NGT)
-​ restricts discussion during the decision-making process to encourage independent
thinking
1)​ Before discussion, each member independently write down ideas/solutions
about the problem
2)​ Each member presents ideas to the group. No discussion until all ideas are
presented and recorded.
3)​ The group discuss the ideas for clarity and evaluates each idea.
4)​ Each member silently and independently rank-orders the ideas. The final
decision is the idea with the highest ranking.

Effect:

Strengths and weaknesses of group vs. individual decision making

Strength Weakness

Generate more complete information and Takes longer

more knowledge

Increased diversity of views Conformity (跟風) pressures

Increased acceptance of a solution (大家 Discussions can be dominated by one or a

gur d) few members
 Ambiguous responsibility for the final
outcome

“Common information effect”

-​ Groups tend to spend too little time discussing unshared (unique, uncommon)
information → bias

1 Probability

2 Mutual Enhancement ​ -​ feels good to discuss shared information

​ -​ shared info is judged as more important, accurate and
(大家知嘅野) decision-relevant → members who discussed shared
info feels more task competent & credible

3 Bias for - prefer discuss information that is consistent with their

Preference-consistent preferences (confirmation bias)
Information
​
(大家prefer嘅野)

4 Miss Optimal Solutions -​ only use shared information → less optimal decision
-​ delve into unshared information → best option
-​ so dont discuss unshared info → harms group
decision quality

What does not work:

-​ More discussion
-​ Separate review and decision
-​ bigger team
-​ more information (but same distribution)
-​ accountability for decision
-​ pre-discussion polling

What does work:

-​ Team leader is information manager
-​ Increase focus on unique information
-​ Suspend initial judgement
-​ Frame as an information-sharing problem, rather than a judgement to be made
-​ Minimize status differences
Module 7: Resolving Conflict
Conflict: a process that begins when one party perceives that another party has frustrated,
or is about to frustrate, something that the first party cares about

Functional conflict: supports the goals of the group and improves performance
Dysfunctional conflict: hinders group performance

3 Types of conflict:
1.​ Task Conflict: conflict over work’s content and goal
-​ moderate level of conflict help seek clarification or new ideas to achieve goals
2.​ Relationship conflict: conflict based on interpersonal relationship → dysfunctional
3.​ Process conflict: conflict over how work gets done (low level is okay)

The Conflict Process

Stage II:
●​ Perceived Conflict: Awareness by one or more parties of the existence of conditions
that create opportunities for conflict to arise
●​ Felt Conflict: Emotional involvement in a conflict that creates anxiety, tenseness,
frustration or hostility

Stage III: Intentions

-​ depends on assertiveness (degree to satisfy own concerns) and cooperativeness
(degree to satisfy other’s concerns)
-​ Five conflict-handling intentions (Thomas-Kilmann)
1.​ Competing: High assertiveness + Low Cooperativeness → win-lose
2.​ Collaborating: High assertiveness + High Cooperativeness → win-win
3.​ Avoiding: Low assertiveness + Low Cooperativeness → lose-lose
4.​ Accommodating: Low assertiveness + High Cooperativeness → lose-win
 5.​ Compromising: Moderate assertiveness + Moderate Cooperativeness → partial
win partial lose

Stage IV: Behavior

-​ Upper range: dysfunctional

-​ Lower range: functional conflict

Stage V: Outcomes
-​ Constructive: decision quality ↑, creativity and innovation ↑, interest and curiosity ↑,
provides medium to air problem and release tensions, foster an environment of
self-evaluation and change.
-​ Destructive: breeds discontent, group effectiveness ↓, threatens group’s survival
Module 8: Power and Influence

What is power?
Power: the capacity that A has to influence the behavior of B so that B acts in accordance
with A’s wishes
Power is a function of dependence: occurs when A has something that B requires/ desires
-​ the control over resources the other person values

Understand the General Dependence Postulate

General Dependence Postulate:
●​ The greater B’s dependence on A, the more power A has over B
●​ When the resource controlled is Important, Scarce, Non-substitutable

Power vs leadership
Differences Leadership Power

Goal Compatibility Requires goal congruence Only needs dependence

DIrection of Influence Focuses on downward Concerned with influence in

influence all directions

Research Emphasis Emphasizes leadership Broader topic: focuses on

style tactics used by
individuals and groups

Power v status:
Power: Control over critical resources (important, scarce, non-substitutable)
Status: Prestige, respect, and esteem that a person enjoys in the eyes of others (originates
externally and is rooted in evaluations of others

What are the five bases of power? Provide an example for each.
Five bases of power - formal power
1.​ Coercive: depends on fear of negative results or punishment​
Rests on application (or threat) of physical sanctions such as infliction of pain,
2.​ Reward: opposite of coercive power- depends on ability to distribute rewards that
others find valuable
3.​ Legitimate- power owing to one’s structural position in the organization or formal
group/ hierarchy
4.​ Expert: wield influence as a result of expertise, special skill, or knowledge
specialised jobs → dependent on experts to achieve goals
5.​ Referent: based on identification with a person who has desirable resources or
personal traits
-​ develops out of admiration of another and desire to be like that person, eg.
celebrities

-​ Expert and referent power are positively related to performance and commitment
-​ coercive power is negatively related to employee satisfaction and commitment
Understand how to use the 9 power/influence tactics

1 Rational -​ Logical arguments and factual evidence (4) Expert power

Persuasion -​ Expert power

2 Inspirational -​ Arouse enthusiasm by appealing to that (5) Referent

Appeals target’s values, ideals and aspirations power
-​ Referent power

3 Consultation -​ Increasing target’s support for your plan by (2) Reward, (1)
seeking their assistance or involving them in coercive or (4)
the decision-making process legitimate power

4 Personal -​ Appeals to target’s feelings of loyalty or (5) Referent or

Appeals friendship (2) reward power

5 Ingratiation -​ Get your target in a good mood before (2) Reward

asking them for something power

6 Exchange -​ Quid pro quo (交換條件) (2) Reward

power

7 Coalitions -​ Get someone else to persuade your target to (1) Coercive

comply Power
-​ Use someone else’s support as reason for
them to comply

8 Legitimating -​ Claims to have the authority to get the target (3) Legitimate
to do something Power
-​ Verifying its in the policy manual, rules or
practices and traditions
-​ Legitimate Power

9 Pressure -​ Using warnings, demands, threats or (1) Coercive

persistent reminders Power
-​ Coercive power

Influence Tactics

Committment -​ Foot in the door: getting a person to agree to a large request

and Consistency​ by having him or her agree to a modest request first
(得寸進尺) -​ Drawing on the Escalation of Commitment bias
-​ After make a choice → encounter personal and social pressure
to behave consistently
-​ Commitments are more effective when they are active, public,
effortful, and viewed as uncoerced

Social Proof -​ When the course of action is not completely clear, we look to
(從衆) people around us for what to do
-​ Conformity effect (跟風) - Asch experiment
-​ Affected by liking, similarity, proximity
 Legitimating and -​ Stanley Milgram Experiment​
Authority

Most effective:
-​ rational persuasion
-​ Inspirational appeals
-​ consultation

Least Effective:
-​ pressure

Combining tactics increases effectiveness

Direction, sequencing, individual skill, and organizational culture modify effectiveness

Preferred Power Tactics by Influence Direction

Political skill: ability to influence others to enhance one’s own objectives

-​ Politically skilled are more effective users of all the influence tactics
-​ Political skill is more effective when the stakes are high
-​ Those with political skill can exert their influence without others detecting it
Power Balancing Operations
1.​ Reduce Need
-​ B could reduce their need for what A provides
-​ Eg. US rationed gas and lowered speed limits and reduced need for oil during
oil embargo by Arab nations
2.​ Find Alternatives
-​ B could find alternative sources for the same services
-​ Eg. Employee keeps resume circualting
3.​ Increase your offerings
-​ make A increase their need for B’s services
-​ eg. US parts manufacturers increase quality control to be more attractive to
Japanese clients
-​ eg. employees update the professional skills to meet the evolving needs of
companies facing new challenges
4.​ Form Coalitions
-​ Reduce A’s access alternative sources for what B provides
-​ eg. oil cartels

Understand how power affects power holders and their teams

How Power Affects People
People with power:
-​ put their interests ahead of others
-​ Objectify others
-​ React to threats against their competence
-​ Tend to be overconfident

Implications of Power
Approach-Inhibition Theory of Power: power has the ability to transform individuals’
psychological states. Most organism display approach state and inhibition state reaction
within the environment

Resources, Freedom (HIGH POWER) → Low Resources, Constraint (LOW POWER) →​

Approach Inhibition (抑制，約束)

Attention to Rewards Attention to Threats

Positive Emotion Negative Emotion

Automatic Cognition Systematic, Controlled Cognition

Disinhibited, State/Trait Driven Behaviour Inhibited, Situationally Constrained Behaviour

Power and Decision Making

-​ Negative relationship between power and advice taking (when u hv power you will
not take advice)
-​ Power makes people overweight their own initial judgment→ the most powerful
decision makers can be the least accurate
Leader’s Power and Team Performance

-​ psychological effect of power on formal leaders spills over to affect team performance
-​ a formal leader’s experience of heightened power produces verbal dominance,
which reduces team communication and diminishes performance

Does Power Corrupt of Enable?

-​ Individuals with a strong moral identity are less likely to act in self-interest, vice versa
Module 9: Making Deals
Negotiation: procedures for resolving opposing preferences between parties when people
cannot achieve their own goals without the cooperation of others

Negotiation: important in both inform

Integrative vs. distributive negotiation

1.​ Distributive negotiation: divide or apportion scarce resources among themselves
-​ creates a win-lose situation
-​ ‘fixed pie’ negotiation
2.​ Integrative negotiation: satisfies the interests of both parties in a way that implies
the outcome cannot be improved upon without hurting on or more of the parties
(Pareto optimality)
-​ win-win solution

Bargaining Distributive Bargaining Integrative Bargaining

Characteristic

Goal Get as much of the pie as Expand the pie so that both parties
possible are satisfied

Motivation Win-lose Win-win

Focus Positions (“I can’t go beyond this Interests (“Can you explain why this
point on this issue.”) issue is so important to you?”)

Interests Opposed Congruent

Information sharing Low: sharing information will High: sharing information will allow
only allow other party to take each party to find ways to satisfy
advantage

Duration of Short term Long term

relationship

BATNA (Best ALTERNATIVE to Negotiated Agreement)

-​ determines you and other party’s bottom line for the negotiation

ZOPA (Zone of Potential Agreement)

-​ overlapping area between two bottom lines (i.e. settlement range)

Aspiration range: negotiation can be settled as long as there is overlap between A and B’s
aspiration ranges
Bargaining strategies
1.​ Strategies in distributive bargaining
-​ make the first offer and make it an aggressive one
-​ shows power
-​ establishes an anchor
-​ try to create different options/ versions
-​ make an informed guess of their BATNA
-​ make your BATNA strong

2.​ Strategies in Integrative Bargaining

-​ focus on interests, instead of position
-​ Position: concrete demands or stances
-​ Interests: Underlying motivations, needs, desires, fears concerns
-​ win-win solution is possible, but:
-​ parties must be open with information and candid about their concerns
-​ both parties must be sensitive regarding the other’s needs
-​ parties must be able to trust each other
-​ both parties must be willing to be flexible

Negotiation Process
1.​ Establish your BATNA (bottom line)
2.​ Exchange initial offers
3.​ Explain your concerns/interests to the other party
4.​ Give and Take - try to come to common ground
5.​ Formalize your agreement