...SPEECHLESS: THE NEGATIVE IMPACT OF LEADER POWER ON TEAM PERFORMANCE LEIGH PLUNKETT TOST University of Michigan FRANCESCA GINO Harvard University RICHARD P. LARRICK Duke University We examine the impact of the subjective experience of power on leadership dynamics and team performance and find that the psychological effect of power on formal leaders spills over to affect team performance. We argue that a formal leader’s experience of heightened power produces verbal dominance, which reduces team communication and consequently diminishes performance. Importantly, because these dynamics rely on the acquiescence of other team members to the leader’s dominant behavior, the effects only emerge when the leader holds a formal leadership position. Three studies offer consistent support for this argument. The implications for theory and practice are discussed. Organizations make extensive use of teams when structuring and allocating work projects. Given the increasing prevalence of teams in modern organizations and the complexities involved in group dynamics, questions about how to ensure high levels of collective learning and effective decision making, along with other key determinants of team performance, have captured extensive attention from researchers and practitioners alike (Martin & Bal, 2006). One important area of inquiry into team effectiveness is the issue of how the degree of hierarchy within a team can affect team performance. This question is relatively understudied, but some...
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...tasked with this responsibility. Consequently, some of the decisions made by the divisional managers are questionable from the perspective of the owners. Corporate control over supply chain management and R&D has also caused issues with the divisional managers. Corporate controls supply-chain decisions, which takes away the division managers’ ability to control some significant cost decisions, such as which supplier to purchase from. Corporate also controls R&D, which can significantly affect product design and quality, and ultimately, customer satisfaction. This can lead to decreased financial results. Therefore, the overall issue relates to the controllability principle, and how to best assign responsibilities for various functions and encourage goal congruent decision making. To start the analysis, the advantages and disadvantages of decentralization are explored. Here are some of the advantages of decentralization: Freeing up top management time, thus allowing top management to focus on the most important decisions. Given Kevin’s increasing outside interests (ranching), this would suit his needs. Enhancing the ability for growth by developing the management team. The decentralized structure will allow Ed and Joe to develop general management skills, which they could use to advance into the corporate office to further alleviate top management (owners) time. Allowing quicker (more responsive) decision making. Given the company has two distinct markets, quick response...
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...Study Guide Chapter 5: Planning and decision making: Benefits of Planning: * Intensified effort * Persistence * Direction * Creation of task strategies Pitfalls of planning * Impedes change and prevents or slows adaptations * Creates a false sense of certainty * Detachment of planners How to make a plan that works: 1. Setting goals a. S.M.A.R.T • Specific • Measurable • Attainable • Realistic • Timely 2. Developing Commitment to Goals • Goal commitment – the determination to achieve a goal • Set goals collectively • Make the goal public • Obtain top management’s support 3. Developing Effective Action Plans an action plan lists… • Specific steps (how) • People (who) • Resources (what) • Time period (when) …for accomplishing a goal 4. Tracking Progress • Proximal goals and distal goals • Performance feedback 5. Effects of Goal Setting, Training, and Feedback on Safe Behavior in a Bread Factory 6. Maintaining Flexibility * Options-based planning – keep options open by making, small simultaneous investments in many alternative plans. * Slack resources – a cushion of resources, like extra time or money, that can be used to address and adapt to unanticipated changes. Example: Top managers- Bride/ Groom Starting at the Top: * Strategic plans – make clear how the company will serve customers and position itself against competitors in the next 2 to 5 years * Purpose...
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...raw materials and natural resources also gained an advantage from the early trail and error of their English counterparts revolution began in textiles Railroads=first systematic thinking emerged about how to manage a company more effectively since RR has to organize, coordinate, and supervise multiple operations in widely geographical locations * Pioneers: The Scientific Management Approach rapid growth in # and size of factories in 1865 resulted in increased attention to the issue of how to improve industrial efficiency pro engineers began to address problem in 1880s Henry R. Towne and “The Engineer as Economist” Frederick W. Taylor (1856-1915) developed scientific management which focuses on basic principles for improving performance, basic elements of this as follows: determine the one best way to do each job through precise, objective measurement select the “best persons” for each job train the “best person” in the most efficient methods of performing the...
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...Employee Empowerment Exploring employee empowerment is a management decision based on proven capability and demonstrated trust by the employee. Transformed organizations introduce empowerment over rules and regulations through smart governance and guidelines supporting organizational culture. These practices promote improved customer service through employee decision-making extended by management authority and flexibility. Demonstrating customer-focused programs and practices through skilled and knowledgeable employees with authority and responsibility to move the organization forward in its mission. Power and Empowerment By definition and context, power is “possession of control, authority, or influence over others” (Merriam-Webster's Third New International Dictionary Unabridged, 2002). A good manager can have power and influence over others and lead well. The definition of empowerment is “to give authority, to enable, and to promote influence” (Merriam-Webster's Third New International Dictionary Unabridged, 2002). The act of empowerment allows a manager to enable individuals to think and act in a way that will enhance their performance, and demonstrate trust in the employee’s abilities. This does not remove power from the manager but instead increases his or her potential to gain power by an effective team. Flat Organization Model Organizational structure is the key difference in reporting processes in organizations. Big organizations have vertical organizational...
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...Title of Assignment: A critical review of two articles relating to aspects of contemporary organizational design 1) M Orlitzky, F L Schmidt & S L Payne, Corporate Social and Financial Performance: A Meta-Analysis, in Organization Studies, 2003; 24; 403-441 2) E J Walton, The Persistence of Bureaucracy – A Meta-Analysis of Weber’s Model of Bureaucratic Control, in Organization Studies, 2005; 26; 569-600 Organisational Design is concerned with constructing and changing an organisation’s structure to achieve the organisation’s goals. In order to understand organisation, we have to look at the two dimensions; structural and contextual. Structural dimensions provide labels like formalization, specialization, hierarchy of authority, centralization, professionalism and personnel ratios, to describe the internal characteristics of an organisation, and they create a basis for measuring and comparing organisation. Whereas contextual dimensions, they characterize the whole organisation, including its size, technology, environment and goals, and also describe the organisational setting that influences and shapes the structural dimensions. For some time, researchers have studied the relationship between a firm’s corporate financial performance (CFP) and its corporate social performance (CSP). Although many studies indicated that CSP is a determinant of CFP, other aspects of some research have been inconsistent. Some studies are criticized for using unrealizable CSP measures;...
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...1. INTRODUCTION The society and public need rules and regulations to maintain the peace and regular developments of the general public. However, there are many of the things could not be implement with laws or regulations to ensure people behave in the correct ways. Therefore, the ethics are used to ensure that people should behave in the proper attitudes and behaviors. Business ethics are the ethics are to ensure moral guidelines which govern good business behaviors, such ethics applied to various field of business managements (Ferrell, O. C., & Ferrell, L. 2011) . For instance, the decision making processes of BOD would consider the ethical effect of the decision made and implemented without harming any of the individual around and related. Supply chain management is the management of products and services that how they are converted from materials to products and then finally deliver to the final users and customers. In the entire processes of supply chain activities, there are many of interrelated individuals and stakeholders are affected and related, therefore satisfy each stakeholder is to ensure the effectiveness of the supply chain management system. Due diligence is the duty and responsibility of managements and directors to act prudently in evaluating associated risks in all transactions and business activities in order to ensure that business are going concern and healthy in comply with legal standards. The relationship between due diligence, business ethics and supply...
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...(only if needed) --------------------------------------------------------------------------------------------------------- Course Description: The management of complex organizations requires an understanding of the nature of human behavior in corporate and other organizations, styles of motivations, personality and perceptions, company leadership, power and authority, strategies of organizational design and change, teamwork, conflict and collaboration, and culture. Organizational Behavior explores individual and group behavior within work organizations and helps students understand, describe, and explain human behavior at work. Course Objective: The course shall be completed in 33 sessions and after completing the course the student will be able to: * Apply and analyze different concepts related to organizational behavior * Define the purpose and nature of the field of organizational behavior * Understand and learn how to Manage individuals for high performance by developing your understanding of individual and interpersonal behavior * Understand and learn how to manage groups for high performance through an exposure to theories, concepts, and principles of OB Prescribed Textbook: Organizational Behavior, Stephen P Robbins,Timothy Judge and Neharika Vohra 14e, Pearson. S.No. | Topic | Case | No. of Session | Concepts covered | 1 | Management Thought and OB: Definition of Management, Approaches to Management: Classical, Behavioral, Management...
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...important when collecting data. For data transfer, authority need to assure that the new system communicate with the existing system. The administrative leaders guide the project activities, data protocol collection, clearly understand roles and responsibilities, and set up policy and procedure. Leader guide the staff to pursue the desire to achieve the goal. In completion of the system, training is provided by trainers for the to staff to be efficient in using the system. A yearly system evaluation to improve quality performance is mandated. The final process of implementation and revising is to assure that the organization is complied with the Joint Commission and other accreditation agencies. Authority Structure and Organization Authority structure is crucial in implementing and revising plans to be successful. To achieve success in implementing project, roles and responsibilities must be organized. Included in the authority structures to achieve success are as follows: board of directors, executive leadership, quality improvement committee, medical staff, middle management, and department staff. Authority structure is complex with the specific job description, formalization emphasizing the definite procedure and protocol, and central authority and accountability. Authority structure addresses issues of interdependence. Job specialization models relatively decentralized. The process of decision-making and setting goals, and communication are shared within...
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...system of task and authority relationships that control how people coordinate their actions and use resources to achieve goals”. (Jones 8) The structure that an organization forms can determine its ultimate success of failure. It sets the foundation for how the organization will function, make decisions, and respond to change. The two types of structures an organization can use are mechanic and organic. Mechanistic and organic structures both have advantages and disadvantages, and neither one is a perfect solution. Depending on the product, tasks to create the product, and people to create the product, make the decision very challenging. In most cases, elements of both types are implemented to ensure a successful business. The executive management is responsible for formulating the right mix in order to achieve success. They use organizational design to process information to select the best options. Every aspect of this decision will play out from how much power middle managers have, to the scope of responsibility direct supervisors encompass. The type of organization directly affects the culture and moral of employees. Implementation of the wrong type or mix of structure can cause mismanagement of resources (both human and physical), a toxic culture, and ultimately a failed institution. The mechanistic structure thrives in a stable and relatively unpredictable environment. Mechanistic structures are based on predictability and accountability. The candy making industry is a stable...
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...clearly communicate their expectations. Compliance with regulations much more likely when leaders develop and carry out programs that emphasize the goals of regulation such as diversity and safety. Various programme should be carefully developed and communicated to increase employees knowledge and motivation (Stewart & Brown, 2009). The Black ants filled out aimlessly without a leader. (French Proverb) a lot leadership has a lot to should in the direction of the human efforts towards organisational goal achievement. Successful implementation of these directional efforts determine the satisfactory or unsatisfactory performance with the Organization Directing Function is the managerial competency in running the organization. The environment’s roles in the optimum performance of a leader cannot be overemphasized. If the environment is not conducive to optimum performance,...
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...LEADERSHIP IN HEALTHCARE ORGANIZATIONS Leadership Styles and Their Effects in Healthcare Organizations Examine and discuss how participative leadership functions in today’s modern health care organization and compare it to other types of leadership styles. Evaluate how each type of leadership style may impact organizational culture, employee performance, and how it may help or hinder the legitimacy of authority. There are various leadership styles and they all have different impacts on the employees’ performance, organizations culture and the legitimacy of leadership of authority. Leadership styles include; - Participative or democratic leadership - Multicratic leadership - Transactional leadership - Transformational leadership Participative or democratic leadership The participative type of leadership is where the subordinate staff is involved in the decision making process. The subordinate staff can be involved directly by giving their opinion during a meeting, through delegation of duties or through voting. According to Borkowski (2009), through the participative method the employees feel valued since they are part of the decision making process and do not have to merely follow orders. Multicratic leadership This leadership style combines the various leadership styles as the situation at hand requires. A leader can give directives at times while he can incorporate the subordinates if need be based on the situation at hand (Ellis &Hartley...
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...DIVISIONAL PERFORMANCE MEASUREMENT A. Objective: The objective is to develop performance measurement systems for divisions that are significant investment centers in large organizations. Such systems should: (1) provide information for economic decisions, (2) facilitate the control of division operations, (3) motivate managers to achieve high levels of divisional performance so as to further the objectives of the entire organization, and (4) serve as a basis for evaluating the performance of divisional managers. B. The nature of divisionalization 1. As a special case of decentralization, divisionalization represents the concept of delegated profit and, to some extent, investment responsibility. 2. Divisions usually perform many of the basic business functions themselves – planning, production, accounting, marketing, and some financing activities. 3. Definitions: A segment of a business is recognized as a division when it exercises responsibility for both producing (or purchasing) and marketing products or services. Normally a division has some control over both sources of supply and the customers served. A segment is recognized as an administered center when it is a captive customer of other units within the same economic entity. A division has more of an independent business unit than an administered center. C. Reasons for divisionalization 1. Work sharing is one very simple reason for delegating decision-making authority. As firms become larger...
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...Authority, Incentives and Performance: Theory and Evidence from a Chinese Newspaper Yanhui Wu London School of Economics Job Market Paper February 2011 Abstract Authority de…nes the formal structure of an organization, and is essential for the allocation of resources inside the …rm. This paper develops a theory of authority in a multiple layer hierarchy, in which the distribution of authority alleviates incentive incompatibilities. To examine the theory, I collect monthly personnel data from about 200 journalists over three years in a Chinese newspaper, and provide evidence on their incentives and performance under two basic organizational forms — centralization and decentralization. Relying on an unexpected organizational reform from decentralizing to centralizing editorial power in some divisions of the newspaper, I …nd three main results: 1) centralization improves the quality of the journalists’performance, in terms of the newspaper’ inters nal assessment and the external measures of news content; 2) centralization reduces the journalists’activities for private gain; 3) centralization decreases the editorial activities conducted by managing editors. These results are in line with the theory: a more centralized hierarchy achieves better control over workers’ opportunistic behaviour, at the cost of depressing middle managers’initiative. Key Words: Authority, Organizational Structure, Incentives, Information, Action Distortion, Decision Bias, Media Bias JEL Classi…cations:...
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...reduce it is centralisation." According to Louis Allen, "decentralisation refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central point." This definition makes it clear that even in decentralisation, delegation to the lowest levels is not complete as the basic functions in the management process are centralized. level of standardization—both within and across markets—the greater the possible level of global efficiency Globalization 3.0, major software advances have allowed an unprecedented number of people worldwide to work together with unlimited potential. Advantages / Importance of Decentralization 1. Decentralisation helps to improve the quality of decisions/decision-making at the top level management : Decentralisation of authority among other executives at all levels in the Organisation relieves the top executive of the excessive burden saving his valuable time, which he can devote to more important and long-term problems. This is bound to improve the quality of his decisions regarding such problems. 2. Decentralisation facilitates diversification of activities : It is a matter of common experience that an Organisation with departmentation on the basis of products facilitates diversification of products or market even when the authority is centralized. Decentralisation takes this process a step further. Managers of semi-autonomous product divisions are able to utilise their skills...
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