Module 10 : Leadership across the larger organization

10.1 When we must lead the organization

Leading the individual developing from one level to next.
Leading the team tuckmans model - also a developemntla process but also build
acceptance, trusts, develop process, group dynamics etc
10.1.1 How leading organizations differs
To achieve goals need to gaina acceptane and cooperation of individuals/ group
through organization. Clear for executive positions. However often occiosan of
middle maangers who need to provide leadership for teams that are not directly
accountable to them eg QA, HR for all organization.
Much more complex - we must consider the overall strategy of the organisation,
substantially longer timeframes, organisational culture, history and politics and much more.
Although we are not in direct control of others behaviour, we must, neverthe- less,
somehow find how to influence their behaviour.
10.2 Sources of Power

Is power needed to gain support and cooperation?

Social power power over others in org settings - ability to have others modify their
behaviour in a desired manner, without, in turn, having to modify your own behavior
Raven 1959 5 sources of social power;
reward: providing something of value to an individual for responding in a desirable
manner;
coercive: the threat or application of punishment if the individual does not respond in a
desired manner, often seen as the opposite of reward power;
legitimate: the official authority conferred on someone as a part of their position of
responsibility within the organisation;
referent: specific to the individual because they are well liked or admired (charisma
and/or star status are intrinsic to referent power);
expert: based on specialised knowledge needed by but otherwise unavailable to others.

Modern org are flatter and hierarchies minimal, diffused leadership and work in
cross functional teams in contrast to 1959.

10.2.1 Reward Poer

Nearly sysnymous with money as reward for work. Yet studies show poor correlation
with motivation.
Herzberg 1959 pay just as likely ot cuase dissatisfaction as satisfaction eg upset
if college had higher raise. Pay mearly guaranteed regular work but no enthusiastic
support for desired airms.
Incentives rewards for targets achieved or exceeded usually monetary but can
be allowances or holiday time. a contract for performance. given after the fact.

Eg bonuses for sales target, stock options for executeive meeting targets,
gainsharing for teams execeeing output or efficiency.
Beyond pay gift or Christmas celebration, creative rewards like gift tokens for
specific behaviours, monthy lottery for no sick employees, free pizza for new
productivity levels.
Symbolic non material pat on the back expression of appreciation, certificates or
letter or recognition , employee of the month etc, service pins for years worked,
work from home days for senior employees.
Albeit valubae rewards are complex, subjective, not easily administered , especially
over time. Otherwise theyd be more commonly used. However most employees
appcreatie a sign of appreciation, a word of thanks, letters of commendation and other
informal low cost methods.
Eg Audrey mnager of customer service uses reward power to gain support coopretion
with informal rewards. Eg baked cake as thanks for IT working overnight to fix her system. It
was their job but with diligent action saved her trouble too small reception for new hires
and the HR ppl involved were invited too offered a helping hand when shipping dep fell
behind. Improve current relations and know that if needed theud pay attention and support
her.
10.2.2 Coercive Power
Opposite of reward. Commonly referd to as disciplinary process increasingly severe of
displicanry steps and unless improvement the loss of employeent.
Or withholding rewards, less bonus or raise, demotions to smaller job and salsry.
Less formal by demeaning comments from positins ofauthory. work place bullying on the
increase.
Formal coericive power is carefully monotirs last resort mangers find it dsitasful and
avoid it commonly dealt with indirectly by tranfering to other deparmtnet or discharing
during downsizing.
Coercive power require aurotirty to exercise it eg only your direct reports. Yet even then
managers avoid it because results are unprecitable rarely enhances performance and
more likely to become resneful and withdrawn ->
losing motivation, beginning to do just enough to get by or avoid punishment;
striking back, perhaps not physically (although it occasionally happens), but indirectly
through vandalism, pilferage, losing things, padding time sheets and so on;
broadcasting their treatment to others throughout the organisation and elsewhere,
effecting overall motivation;
taking extra time off work, often as stress-related illness;
initiating time- and resource-consuming appeals or legal procedures, either through
their union or the courts, for bullying, constructive dismissal and so on;
finding employment elsewhere.
Expericned by others in org as well and might feel threatened that it could happen to them.
IN contrast Cernie imposing physic and voice, argue each point with dominaion an
dcoercion. Interferd with his talent and good work. probemantio relation. widely dislike

 he would talk over htem until they gave up - his employees appreciated his work but
feared his approach bully received minimal cooperation preference to work with his
subordinates kept information that might upset met in secret with other departments to
get work done even president had geat difficult and relied of positional power when
Bernie disagreed since valued couldnt be fired but promoted to advisory by giving
legitamte power his oereicve power decreasd.
10.2.3 Legitimate Power
Bestowed by organization through placement in org structure. hire and fire right to
require certain tasks done carrie dresponsabilities such as training. Health and safty,
feedback and support.
Is attractive employee coluntarily comes to work and power is bestowed on
senior/experience people ot get things done. In reality not effective due to fast cahning
tasks and teams.
Mangers legitate power bestowed
Leaders how individual projects his authority. ( in a team might not even have positional
or legitimate power).
Or vice versa eg derpaemnt manger who promoted to general manager due to
department success but run company to the ground by not attending to urgent issues and
not listening to concerns from subordinates.
Gain position and legitame power without the leadership skills for the role.
Initial advantage but needs skills ot back it up.
Also leiitamte authority by proxy if you have support of an executive.
10.2.4 Referent Power
Charisma or start power groupies effort to be close to object of adoration policitcs,
reltiogions, entertainments, business legends etc.
Bestowed by followers by adminration and iwhs to emulate the person.
Commands attention gains cooreration with magnetism or perosanlity somewhat dsitart,
remote, arely seen but whose success is legend.
Charisa wanes with familairty and time.
Is thereofr referent power and charisma effective? Could it deflect energy away from
organizational aims.
Jim Collins 2001 Good to Great 11 companies with exceptional consistent growth over
15 years their CEOs - an individual who blends extreme personal humility with intense
professional will. We found leaders of this type at the helm of every good-to-great company
during the transition era.
Her termed them level 5 execusives paradox extreme personal humility but zelous will for
org success.
Not great visionary jointly develop visit from the best team. Not partiualry chasitsmatic,
even shy, minimalise pesoal contribution. Yet highly proud and enthusiastic about company.
Also no long term effectiveness of charismatic leaders, did not build org depth due to ebing
in limelight and left org no better off when left.
Short term asset.
10.2.5 Expert Power

Gained by knoedge or skills possessed by indivdualt but not by others eg lead surgeon,
engeneer, most porfessionas and specialsits. Yet limited to specific settings.
Requires use of that expertise to project themselves with condifence in terms that make
sensts to followers.
Eg engineer who was very good at fixing machines but unable to pass on his knoedgle ro
lead.
Problem with expert power is that it is available only when you ar expert in a situation. As
as manager rises in organization eh should become the ealst epert while gatering a team of
experst. Hed stil be knowledge of task but follower become the acknowledge expert in his
spefic area. Most obvious when dep managers ove into general management leading expert
from many other areas.
In middle managmentit expert powr is an import level of influence esp with other teams.
10.2.6 Employing Several sources of power
In a reality a combination isused and each when its leads to best effect
Eg HR manager agrees with managing director to set up performance review system
got referent positiaotl power through formal announacement and request for support from
dep heads. Despite middle management he auire substaltianl legitimate power. Spent time
with dep heads by acknoligingtheir unique needs he built expert power and by supporting
them he also got rewqards power also by going out of his way to show appreciation for
rogrss. No direct use of coercive power but by being very clear about implementation dat
set by executive staff the dep heads knew theyd be under scrutiny if they didnt comply.
Not charismatic or referent power but optimism and confidence inhimself and dep heads.
Yet the smooth operation reviel a very able leader.
10. 3 Power vs Influence
There is more to efefcitve leadership beyond power. And even if they have power doesnt
mean it will be well used. Eg psotioanl power used inapproparitely, unetheically or not at
all, failing to capitilsie it. (self leadership module 9)
10.3.1 Incluencing without power
Leadership behvaiours witout any sources of power serve as facilitaionr make things
happen without any charisma, title or expertise project sense of authority.
Can belegitiamte authorirty specialist leading a programme followers respond becuaswe
it is sanctioned by organsisation, llogical and in line with org goals. Also because of
personal approach, experience, expertise. Difference between projecting power and
authorirty is that those projecting authority always engage in dailoge with those they lead.
Coaching and consultative appracoh eauql measures of service andleadersip convincing,
praising, communicating, teaching. Organizing and follow up -> they gain support.
In such cases depend heaviliy on influence we cannot commonad oters but influence them
to support our effots.
10.4 Kouzes and Posner and the leadership challenge

Kouzes and Posner 2002 leadership process with insights re influcne student managers
at uni leadership dev programs asked to describe their personal best leadership exp sutyd
orgdianry manager ( not heores) actions when most usccsfull 15 yrs research gov and
businessKey Practices of examplry leaders;
1)
2)
3)
4)
5)

Model the way

Inspire a shared vision
Challend the process
Enable others to act
Encourage the heart

And they are not unique ot beyond scope of any leaders.

10.4.1 Model the Way

Set example role model 1st key practice on purpose Integeriry keep your word, being
straight with poepel, doing things the right way etc.
Dont ask others to do things you wont do value driven and central to modeling process
Tend to engage in MBWA management by walking around viasble and avialble aporach
to goal setting very few key priorties that also allow small wins along the way.

Very easy to also set poor example small over sights that yet send message eg
executives not wearing the required name badge executives retaining privileges during
cost cutting asserting that customers are valuded yet take bad about them.

10.4.2 Inspire a shared vision

Setting vision is central to strategy develeopmetn yet commonis just a paper ercciseMany plans end when the planning process ends and a formal written planning document is
completed. The document is simply stuffed into a drawer and forgotten (Pfeiffer, 1991).
Besides creating a vision they do it iin conjunctions with followers and in ways that is
appealing to aspirations of followers. Not a vision of farseeing leader but an alternate future
that motivates those asked to be part of it to be ivvolve.d
Promote with emotion to give depth and mening wholehearted belief but also preached at
every opportunity, same speech over and over to any audience that will listen. ( diff teams,
dep etc). followers rememeber the emotion delviers long after the content is forgotten.

10.4.3 Challenge the process

if it aint broke dont fix it. Success lies in challenging status quo and nuterting this
charaeristic in others risk takers take time to expore alternatives- continueally looking for
change nd imporvelmet if it aint broke, then you havent looked hard enough.

Requirement for culture that allows mistakes experietntation encourages and accepttane
that there is a lesson lernt even in no success , not pnished people asked to champion
their idea and given time and resources.
Intodyas highly compeptive environment inmoventtion and devleopnt increase efficiency are
crucial leaders allows ac culture that hinders innovation and risk taking are minimizing a
precious asset ideas and enthissiaum of folowes.

10.4.4 Enable others to act empowerment

Enable follows to develop talents in pursuit of shared vision. Delegation is key - leaders who
take all decions make followers feel like a pair of hired hands who left brains at the door.

Empowerement gives followes opportunit and power to act. Instill sense of pwre and control
by allowing follwoes to make decisions or require them to. the only wrong decision is
indecision leadership shared among workforce, everyone expected toprovide leadership
occasionally.

Kur 1997 example of tyre shop one with all decisions taken by manger while employyes
wait instucions and other with all deciosn, accessments, pricing agreed directly with
employees.
Teams challenges to gorw and devleoeped and given support and recognition for success.
Collabroaiton is empahsised both in team and among teams competiton should come from
external business envinronment. Not competitions among woekers as it hingers initionate
and empowerment.

10.4. 5 Encouraging the heart

Highly underutulsies resources pride and enthissiam succesfull leaders spent time with
practices that encourage the heart.
goals and standards are clearly set at a high but achievable standard. When met or
exceeded they are recognised and celebrated, personally and publicly. Both feel personally
fulfilled that talents being used and also publically recognized and aprpeacited.
Performance reward systems ind or teams as appropriate. Already discussed. Focus on goal
achievement is what is improtatn for organization success.
COntrasitngly in western org the 2 most formally celebrated acheivemants are service and
reitremtns none of which has direct correlationwith success.

Give credit infornt of others, relate team success sotries to amangment and visitors.

10.5 Organisation Leadership as a required skill set

We believe that those working in todays organisations will be successful primarily because
they make best use of the social power at their disposal as well as in conjunction with the
influencing behaviours illustrated by Kouzes and Posner. Indeed, many (perhaps most)
leaders will be accomplishing their work through their ability to influence rather than
because of their position. This is, of course, in strong alignment with the transformational
leadership theory presented in Module 4. We also believe very strongly that mastering such
skills can only be of increasing importance to our organisations leaders within 21st-century
organisations. Hopefully you will already have many of those skills. But it is unlikely that you
will have all of them, or will have mastered the required influencing methods that we have
identified. How to develop those abilities must necessarily be our next area of focus. And we
do just that with Module 11 and Module 12, addressing the many questions and possibilities
involved with the process of leadership development.