ABDM4044 PEOPLE and ORGANIZATION Tutorial 10 & 11 answer 09 August 2010

Question 1
Similarities
 According to Kreitner & Kinicki 2010, leaders manage and managers lead that
means manager can also be leader and the leader also can be a manager too.

Differences
 Managers typically perform functions associated with planning, investigating,
organizing and control while leaders deal with the interpersonal aspects of a
manager’s job. Leaders inspire others, provide emotional support, and try to get
employees to rally around a common goal.
 Leaders also pay a key role in creating a vision and strategic plan for an organization.
Managers in turn, are charged with implementing the vision and strategic plan.

Question 2
According to Kreitner & Kinicki, Fiedler believes leader effectiveness depends on an
appropriate match between leadership style and situational control. Leader must learn to
manipulate or influence the leadership situation. In order to create a match between their
leadership style and the amount of control within the situation at hand.

The three dimensions of situational control are defined as follows:

1. Leader-member relations reflect the extent to which the leader has the support,
loyalty and trust of the work group. This dimension is the most important components
of situational control. Good leader-member relations suggest that the leader can
depend on the group, thus ensuring that the work group will try to meet the leader’s
goals and objective.
2. Task structure is concerned with amount of structure contained within tasks
performed by the work group. For example, a managerial job contains less structure
than that of a bank teller. Because structural tasks have guideline for how the job
should be completed, the leader has more control & influence over employees
performing such tasks. This dimension is the second most important component of
situation control.
3. Position power refers to the degree to which the leader has formal power to reward,
punish, or otherwise obtain compliance from employees.

From the analysis above, a leader has to change his or her leadership style to a fix situation.
Situation is consisting of the people in the organization and the organizational itself, such as
culture, rules and regulation, organization structure and policies.

A good leader must be flexible to every occasion, and able to solve and mange problem in an
organization, hence a leader has to change his or her leadership style according to the
situation faces. Changing the situation is not as easy as changing the leadership styles, since
changing a situation need a lot of time. So, it is better for a leader to change his or her
leadership style instead of changing the situations.

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ABDM4044 PEOPLE and ORGANIZATION Tutorial 10 & 11 answer 09 August 2010

Question 3
Transactional leadership
 Leaders are aware of the link between
the effort and reward.
 Leadership is responsive and its basic
orientation is dealing with present issues.
 Leaders rely on standard forms of
inducement, reward, punishment, and
sanction to control followers.
 Leaders motivate followers by setting
goals and promising rewards for desired
performance.
 Leadership depends on the leader’s
power to reinforce subordinates for their
successful completion of the bargain.
Transformational leadership
 Leaders arouse emotions in their
followers which motivates them to act
beyond the framework of what may be
described as exchange relations.
 Leadership is proactive and forms new
expectations.
 Leaders are distinguished by their
capacity to inspire and provide
individualized consideration, intellectual
stimulation and idealized influence to
their followers.
 Leaders create learning opportunities for
their followers and stimulate followers to
solve problems.
 Leaders motivate followers to work for
goals that go beyond self-interest.
 Leaders possess good visioning,
rhetorical and management skills, to
develop strong emotional bonds with
followers.

Question 4
According to John French and Bertram Raven, power arises from 5 different bases: reward
power, coercive power, legitimate power, expert power, and referent power.

Reward power- a manager has the power to the extent that he/she obtain compliance by
promising or granting rewards. These rewards can range from monetary compensation to
improved work schedules, such as money, benefits, time off, desired gifts, promotions or
increases in pay or responsibility.

Coercive power- rests in the ability of a manager to obtaining compliance through threatened
or actual punishment. For example, a manager will fire the employees who cannot hit the sale
target. This kind of power typically leads to short term compliance, but in long term, it will
produces unhealthy behavior and dissatisfaction in the workplace.

Legitimate power- is the formal authority people get from their position in an organization.
For example, the employees comply with the orders of a manager who relies on legitimate
power based on the position in the organizational hierarchy that the manager holds.
Legitimate power may express itself in either positive or negative manner in managing
people. Positive legitimate power is focus constructively on job performance. Negative
legitimate power tends to be threatening and demanding to those being influenced.

Expert power- is the power people derive from their skills, knowledge and experience.
Leaders who possess this type of power have high intelligence and rely on their ability to
perform various organizational tasks and functions. When someone had the expertise in an
organization people are more convinced to trust them and respect what they stand of.

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ABDM4044 PEOPLE and ORGANIZATION Tutorial 10 & 11 answer 09 August 2010

Referent power- is the power or ability of people to attract others, to build strong
interpersonal relationship, to persuade and build loyalty. This is based on the charisma and
interpersonal skills of the power holder. For example, celebrities often have these types of
power in society.

Question 5
There are 4 reasons an employees would want to make a poor impression at work, firstly, the
employee seeks to avoided additional work, stress, burnout or an unwanted transfer or
promotion. Secondly, employees seek to obtain a pay raise or a desired transfer, promotion, or
demotion. Third, employee seeks to get laid off, fired or suspended, and perhaps also to
collect unemployment or workers’ compensation. Lastly, employee seeks to control,
manipulate or intimidate others, get revenge, or make someone else look bad.

To accomplish this goal, the employee will decrease their job performance, by restricting
productivity, making more mistakes than usual, lowing quality, and neglecting tasks.
Sometime the employees may also not working to potential, like pretending ignorance, and
having unused capabilities.

Another tactics the employees can use is to withdrawing, such as being tardy, taking
excessive breaks, or faking illness. Besides that, the employees can also displaying a bad
attitude through complaining, getting upset and angry, acting strangely, and not getting along
with coworkers.

Lastly, the employees may broadcast limitations, let coworkers know about one’s physical
problems and mistakes, both verbally and nonverbally.

Question 6
Organizational politic cannot be eliminated. A manger would be native to expect such
outcome. But political maneuvering can and should be managed to keep it constructive and
within reasonable bounds. For example, the manager can screen out overly political
individuals at hiring time. An individual’s degree of politicalness is a matter of personal
values, ethics, and temperament. When hiring people, screen out those who are highly
political and select those who are nonpolitical, since political is generally pay a price for their
behavior.

Create an open-book management system, publicy recognize and reward people who get real
results without political games, are also a good ways to manager organizational politics. This
can make sure every employee know how the business works and has a personal line of sight
to key results with corresponding measurable objectives for individual accountability.

Besides that, manager can have nonfinancial people interpret periodic financial and
accounting statements for all employees, and establish formal conflict resolution and
grievance process, to manage organizational politics.

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ABDM4044 PEOPLE and ORGANIZATION Tutorial 10 & 11 answer 09 August 2010

Case study
Question 1
The characteristic of being a leader and a manager table:

 Motivating, influencing and changing behavior- from the case, one of the Nooyi’s
most stunning talents is the art of suasion. She can rouse an audience and rally them
around something as mind-numbing as a new companywide software installation.
These shows her influences on people and change their minds.
 Being visionary- from the case, since becoming CEO, she had reorganized PepsiCo to
make it less fixated on the U.S and broadened the power structure by doubling her
executive team to 29... She has created a motto “Performance with Purpose” that puts
a positive spin on how she wants PepsiCo to do business both at home and abroad.
This shows that she is very foresight on her company.
 Planning, organizing, directing, and controlling- for example, she hold to very high
standards in her youth, she expects everyone around her to measure up. She has red,
green, and purple pen and uses them liberally to mark up everything that a crosses her
desk. This shows that she is a well planning and organizing her task.
 Understanding and using power and influence- from the case, she told Hugh
Johnston, who worked for her in corporate strategy that he dressed like a bum. She
told him where to shop, and he has acquired a whole new wardrobe. She knows she is
demanding, and she worries about it. This shows that she using power to influence her
college to change.
 Putting people first, the leader knows, responds to, and acts for his or her follow-
she throws dinners for members of her team and their spouses, including Q&A session
in which she insists on getting questions from the spouses and won’t sit down until she
does. This shows that she is a leader who wants to know more about her subordinate.

Question 2
Positive leadership traits and style:-

o Conscientiousness, one of the Judge’s researches, show conscientiousness is

positively correlated with leadership effectiveness. From the case, she striving for a
net-zero impact on the environment, and taking care of workforce.
o One of the Nooyi’s most stunning talents is the art of suasion; she has the ability to
convince others. She can rouse an audience and rally them around something as mind-
numbing as a new companywide software installation. Her new motto “performance
with purpose”, motivates everyone in the organization and makes them achieve the
goal easily.

Negative leadership traits and styles:-

o Since, she becoming CEO, she reorganizes PepsiCo to make it less fixated on the U.S
and broadened the power structure by doubling her executive team to 29.
o Pushy/ callous, the leader is uncaring, ignored or discounter the need, wants and
desires of most members of the group- When a team of Asia Pacific region couldn’t

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ABDM4044 PEOPLE and ORGANIZATION Tutorial 10 & 11 answer 09 August 2010

find an inexpensive alternative to palm oil for its products in Thailand, she kept
pushing and pushing.

Question 3
According to Kreitner and Kinicki 2010, situational control can be dividing into 3 which are
high-control situation, moderate-control situation, and low-control situation.

From the case, Indra falls into high-control situation, which she have good leader-member
relations, high tasks structure, and strong position power.

She able to maintains a good leader-member relationship. She builds up her employee’s
loyalty and trust to the company. For example, in the case is the so called love letter scandal.
Indra need to personal told her secretaries that she will not lose her job. This proves that the
bound between Indra and her employees are high.

Besides that, she had well-organized tasks structure ability. In the case, she reorganizes
PepsiCo to make it less fixated on the U.S and broadened the power structure by doubling her
executive team to 29. She creates a motto “Performance with Purpose” that puts a positive
spin on how she wants PepsiCo to do business both at home and abroad.

Indra had a strong position power. She able to convince her subordinates to do their job.
Given in the case, she challenges Tim Mings and his team to find inexpensive alternative to
palm oil for its product. It shows that Indra is a good leader with great influence on
subordinates.

Question 4
Ms Nooyi is behavior in inspirational motivation. She establishes an attractive vision of the
future, the use of emotional arguments, and exhibition of optimism and enthusiasm. In the
case, she had created a motto “Performance with Purpose”, everyone in the organization
knows the motto, and hence they can achieve the goal easily.

Ms Nooyi also display behavior of idealized influence, because she behaviors such as
sacrificing for the good of the group, being a role model, and displaying high ethical
standards. From the case, she striving for a net-zero impact on the environment, and taking
care of workforce.

Besides that, Ms Nooyi also behavior in individualized consideration, entails behaviors

associated with providing support, encouragement, empowerment and coaching employees.

The fourth set of leadership that Ms Nooyi is intellectual stimulation, she encourage
employees to question the status and to seek innovative and creative solutions to
organizational problems. From the case, she throws dinners for members of her team and their
spouses, including Q&A session in which she insists on getting questions from the spouses
and won’t sit down until she does.