Communication

Power & Politics

Conflicts & Negotiation
Leadership
Shivkumar Menon
Communication
Learning Objectives
1. Functions of Communication
2. Distinguish between Formal & Informal Communication
3. Contrast types of communication
4. Advantages & challenges of electronic communication
5. How channel richness underlies the choice of
communication channel
6. Common barriers to effective communication
7. How to overcome potential problems in cross cultural
communication
Functions of Communication
Communication serves 4 major functions within a group or organization: Control,
Motivation, Emotional Expression & Information

To perform effectively, groups need to maintain some form of control over
members, stimulate members to perform, allow emotional expression and make
decision choices
Formal Informal
Established by the organization to
transmit messages related to the
professional activities of the
members

Follows the authority chain within the
organization
This is more spontaneous and emerge
as a response to individual choices.

Does not follow any specific authority
chain and creates its own authority
matrix based on need and composition
of the group
Types of Communication
Communication can flow vertically or laterally and this is further subdivided into downward and
upward.
Downward Communication: Communication that flows from one level of a group or
organization to a lower level is downward communication. Group leaders & managers use it to
assign goals, provide job instructions, explain policies & procedures, point out problems that
need attention & offer feedback about performance.
While engaging in downward communication, managers must explain why a decision was made
to get more commitment and faster results from team members.
Upward Communication: Flows to a higher level in the group or organization. Used to provide
feedback to higher ups, inform them of progress towards goals and relay current problems.

Upward Communication keeps managers aware of how employees feel about their jobs, co-
workers and the organization in general.
Types of Communication
Lateral Communication: When communication takes place among members of the same
work group, members of work groups at the same levels, managers at the same level, or any
other horizontally equivalent workers, we describe it as lateral communication.
Lateral communication saves time and facilitates coordination. Some lateral relationships are
formally sanctioned. More often, they are informally created to short circuit the vertical hierarchy
and expedite action.
Strictly adhering to the formal vertical structure for all communications can be inefficient, lateral
communication occurring with the managements knowledge and support can be beneficial.
Interpersonal Communication
Oral Communication: chief means of communicating. Speeches, formal one to one and group
discussion and the informal rumor mill or grapevine are popular forms of oral communication

Advantages are speed and feedback. Disadvantage is heavy distortion of messages when it has
to pass through multiple people

Written Communication: memos, mails, fax, instant messaging, periodicals, notices etc

Advantages are record of communication, storage or archives and being forced to rely on
memory. Disadvantage is time consuming, taking decisions or conducting group discussions
does not give effective outcomes

Non Verbal Communication: Body language, facial expressions

Advantage is studying the non verbal communication to understand the level of emphasis given
by people when they converse and discuss important points in a meeting.

Disadvantage is facial expressions and body language can be misread and misinterpreted.
Persuasive Communication Differentiate between
automatic and controlled processing
We often rely on automatic processing, a relatively superficial consideration of
evidence and information making use of heuristics. Automatic processing takes little
time and low effort, so it makes sense to use it for processing persuasive messages
related to topics you dont care much about.
Disadvantage is that it lets us be easily fooled by a variety of tricks like a cute jingle
or a glamorous photo
For all topics which are of importance to us or where we feel is significant for us to
put more efforts a detailed consideration of evidence and information relying on facts,
figures and logic is applied and hence called as controlled processing
Some key factors which are used to decide between automatic and controlled
processing in communication are Interest Levels, Prior Knowledge, Personality,
Message Characteristics
Barriers to Effective Communication
Number of barriers can retard or distort effective communication.
Filtering: refers to a senders purposely manipulating information so the receiver will see it more
favorably. A manager who tells his boss what he feels the boss wants to hear is filtering
information
Selective Perception: Receivers in the communication process selectively see and hear based
on their needs, motivations, experience, background and other personal characteristics.
Receivers also project their interests and expectations into communications as they decode
them.
Information Overload: Individuals have a finite capacity for processing data. When the
information we have to work exceeds our processing capacity, the result is information overload.
Emotion: interpreting the same message differently when you are in a positive mood vis--vis a
negative one.
Language: words mean different things to different people. Age & context are the two big factors
that influence such differences
Silence: silence and withholding communication are both common and problematic
Communication Apprehension: 20% of the population face debilitating communication
apprehension or social anxiety
Lying: Outright misrepresentation
Power & Politics
Power is not revealed by striking hard or often, but by striking true
Learning Objectives
Define Power & contrast leadership & Power
Contrast the five bases of Power
Explain the role of dependence in power relationships
9 Power /Influence tactics & their contingencies
Connection between sexual harassment & abuse of power
Causes & Consequences of Political behavior
Impression Management Techniques
Is Political Action ethical?
Define Power
Power refers to a capacity that A has to influence the behavior of B so B acts in
accordance with As wishes.
The most important aspect of power is that it is a function of dependence. The greater
Bs dependence on A, the greater As power in the relationship.
Dependence in turn is based on alternatives, B perceives and the importance B places on
the alternatives A controls.
Powerful managers were more likely to respond to poor performers by either directly
confronting them or frankly encouraging them to get training to
improve.
Less powerful managers enacted strategies not to confront the poor performer like
compensating for poor performance or avoiding the individual
altogether. They are less likely to engage in a potential conflict with
the subordinate
Contrast Leadership and Power
Leaders use power as a means of attaining group goals
Power Leadership
Does not require goal compatibility,
only requires dependence
Requires congruence between the
goals of the leader and the followers
Power does not minimize the
importance of lateral and upward
influence patterns
Leadership focuses on the downward
influence on followers. It minimizes
the importance of lateral and upward
influence patterns
Power focuses on tactics for gaining
compliance
Leadership focuses on Style of
leadership
5 Bases of Power
Where does power come from? Where does the ability of an individual or a group to
exert influence over others arise from? Two general groups which
are further broken down to an overall set of 5 power bases
Formal Power
Coercive Power Depends on the fear of the negative results from failing to
comply. AT the organizational level, A has coercive power over B if A can dismiss,
suspend, or demote B, assuming B values his or her job.
If A can assign B work activities B finds unpleasant, or treat B in a manner B
finds embarrassing, A possesses coercive power over B.
Reward Power Opposite of coercive power is reward power. People comply because it
produces positive benefits; someone who can distribute rewards
others view as valuable will have power over them.
5 Bases of Power
Formal Power
Legitimate Power Legitimate power represents the formal authority to
control and use organizational resources based on structural position in the
organization.
Personal Power
Expert Power influence wielded as a result of expertise, special skill or
Knowledge. As jobs become more specialized, we become increasingly
dependent on experts to achieve goals.
Referent Power based on identification with a person who has desirable
resources or personal traits. Referent power develops out of admiration of
another and a desire to be like that person. People who are not in formal
leadership positions nonetheless have referent power and exert influence over others
because of their charismatic dynamism, likability & emotional effects
on us
Role of Dependence in Power Relationships
Dependence increases when the resource you control is important, scarce and cannot
be substituted
Importance - If nobody wants what you have, its not going to create
dependence. For example,
Tata Steel which is heavily technologically oriented, depends heavily on its engineers to
maintain its products technical advantages and quality and so they are a powerful
group
Scarcity- Scarcity-Dependence relationship in the power of occupational categories is
more visible. Where the supply of labor is low relative to demand, workers can
negotiate compensation and benefits packages far more attractive than can those in
occupations with an abundance of candidates.
Non Substitutable- the fewer viable substitutes for a resource, the power
control over that resource provides.
9 Power Tactics
Power tactics people use to translate power bases into specific actions. 9 distinct
influence tactics.
Legitimacy Rational
Persuasion
Inspirational
Appeals
Consultation Exchange
Personal
Appeals
Ingratiation
Pressure
Coalitions
Rational Persuasion, inspirational appeals and consultation are the most effective. Pressure
tends to backfire and is the least effective. Multiple tactics can also be
adopted for successful outcomes
Sexual harassment and abuse of power
Sexual harassment negatively affects job attitudes and leads those who feel
harassed to withdraw from the organization. In many cases, reporting doesnt improve
the situation because the organization responds in a negative manner or has ambiguous
policies on sexual harassment.
Sexual harassment is defined as any unwanted activity of a sexual nature that
affects an individuals employment and creates a hostile work environment.
Organizations have generally made progress towards limiting overt forms of sexual
harassment. This includes physical touching, recurring requests for dates,
when it is made clear the person isnt interested, and coercive threats that a person will
lose his or her job for refusing a sexual proposition
Organizational Politics Causes & Consequences
Political behavior in organizations consists of activities that are not required as part of an
individuals formal role, but that influence, or attempt to influence,
the distribution of advantages and disadvantages within the organization
Not all groups or organizations are equally political. In some organizations,
politicking is overt and rampant, while in others, politics plays a small role in
influencing outcomes. Some are individual characteristics derived from the
unique qualities of the people the organization employs, some are a result of
the organizations existing internal culture
Individual Factors Organizational factors
High self-monitors
Internal Locus of control
High Mach personality
Organizational investment
Perceived job Alternatives
Expectations of success
Reallocation of resources
Promotion Opportunities
Low trust
Role Ambiguity
Unclear PMS
Zero Sum Reward Practices
Democratic Decision making
High Performance Pressures
Self Serving Senior Managers
Impression Management Techniques
People have an ongoing interest in how others perceive and evaluate them.
Being perceived positively by others should have benefits for people in
organizations.

The process by which individuals attempt to control the
impression others form of them is called Impression Management (IM)
Conformity: Agreeing with someone elses opinion in order to gain his or her approval.
Example: A manager tells his boss, You are absolutely right on your reorganizations plan
for the western regional office. I couldnt agree with you more.

Excuses: Explanations of a predicament creating event aimed at minimizing the apparent
severity to the predicament.
Examples: Sales manager to boss. We failed to get the ad in the paper on time, but no
one responds to those ads anyway.

Apologies: Admitting responsibility for an undesirable event and simultaneously seeking
to get a pardon for the section
Example: Employee to boss, Im sorry I made a mistake on the report Please forgive me.
Impression Management Techniques
Self-Promotion: Highlighting ones best qualities downplaying ones deficits and calling
attention to ones achievements.
Example: A salesperson tells his boss: Matt worked unsuccessfully for three years to try
to get that account I sewed it up in six weeks. Im the best closer this company has.
Flattery: Complementing others about their virtues in an effort to make one self appear
perceptive and likeable.
Example: New sales trainee to peer. You handled that clients complaint so tactfully! I
could never have handled that as well as you did.
Favors: Doing nice for someone to gain that persons approval.
Example: Sales person to prospective client, Ive got two tickets to the theater tonight
that I cant use. Take them. Consider it a thank you for taking the time to talk with me
Association: Enhancing or protecting ones image by managing information about
people and things with which one is associated.
Example: A job applicant says to an interviewer, What a coincidence. Your boss and I
were roommates in college.
In terms of performance ratings, the picture is quite different. Ingratiation is positively
related to performance ratios, meaning that those who ingratiate with their supervisors
get higher performance evaluations. However, self promotion appears to backfire
those who self promote actually seem to receive lower performance evaluations.
Conflicts & Negotiation
10/26/2014 22 PGC Business Management -
XLRI
Learning Objectives
Define Conflict
Differentiate between types of conflict
The Conflict Process
Define Negotiation
Distributive Vs Integrative Bargaining
5 steps of Negotiation process
Individual Differences influence negotiations
Roles and functions of third party negotiation
10/26/2014 23 PGC Business Management -
XLRI
Conflict is a perception, a process that begins when one party perceives
another party has or is about to negatively affect something the first party
cares about.
Define Conflict
10/26/2014 24 PGC Business Management -
XLRI
Differentiate between different types of conflicts
Conflict must be avoided- that it indicates a malfunctioning within the
group. We call this the traditional view
Conflict can be a positive force in a group but that some conflict is
absolutely necessary for a group to perform effectively. This is the
interactionist view
Instead of encouraging good or discouraging bad conflict, its more
important to resolve naturally occurring conflicts productively. This
perspective is the managed conflict view
10/26/2014 25 PGC Business Management -
XLRI
Traditional view of conflict
Conflict was a dysfunctional outcome resulting from poor communication, a lack of
openness and trust between people and the failure of managers to be responsive to
the needs and aspirations of the employee.
This was the traditional view of conflict which was derived from the perceptions of
group behavior and attitudes of individuals in the early 1930s and 1940s. Eventually,
this school of thought evolved and lead to multiple views on conflict which had
positive as well as negative connotations.
10/26/2014 26 PGC Business Management -
XLRI
Interactionist view of Conflict
Interactionist view of conflict encourages conflict on the grounds that a harmonious,
peaceful and cooperative group becomes static, resists change and innovation.
Interactionist view does not support all types of conflicts.
Functional conflict supports the goals of the group and improves performance and
hence constructive. Dysfunctional conflict hinders growth and performance
Differentiation between these two conflicts happens by understanding whether its
connected to task, process or relationships
Conflict
Task
(related to
contents &
goals)
Process
(how work
gets done)
Relationship
(interpersonal
relationships)
Relationship conflicts are always
dysfunctional, whereas low levels of
task and process conflicts can be
functional and bring positive
outcomes and better performance
eventually
10/26/2014 27 PGC Business Management -
XLRI
Managed or Resolution based view of Conflict
Research studies indicate there are very specific kinds of conflicts which are
beneficial. Most conflicts are eventually dysfunctional and lower performance and
productivity in the organization
Hence companies have started focusing more on managing the whole context in
which conflicts occur, both before and after the behavior stage of conflict by preparing
employees for conflicts, developing resolution strategies & facilitating open
discussions
to summarize all 3 views
Traditional view was shortsighted in assuming all conflicts should be
eliminated

Interactionist view that conflict can stimulate active discussion without spilling
over into negative, disruptive emotions is incomplete

Managed conflict perspective does recognize that conflict is probably
inevitable in most organizations and focuses more on productive conflict
resolution
10/26/2014 28 PGC Business Management -
XLRI
The Conflict Process
Different Stages of Conflict Process
Potential
Opposition or
Incompatibility
Cognition &
Personalization
Intentions
Behavior
Outcomes
Stage I
10/26/2014 29 PGC Business Management -
XLRI
The Conflict Process
Potential Opposition or
Incompatibility
Cognition &
Personalization
Intentions Behavior
Outcomes
Communication
Structure
Personal Variables
Perceived
Conflict
Felt Conflict
Conflict handling
intentions
Competing
Collaborating
Compromising
Avoiding
Accommodating
Overt Conflict
Partys
behavior
Others
reaction
Increased
Group
Performance
Decreased
Group
Performance
Stage I Stage II Stage III Stage IV Stage V
10/26/2014 30 PGC Business Management -
XLRI
Different Stages of the conflict Process
Potential Opposition or Incompatibility (Stage I)
The first step in the conflict process is the appearance of conditions that create opportunities for
conflict to arise. These conditions need not lead directly to conflict but one of them is necessary for a
conflict to surface
Communication
Communication can be a source of conflict. Differing word connotations, jargon, written
communication, insufficient exchange of information are all barriers to communication and pose
potential risk to push to a conflict
Structure
Structural conflicts arise out of some key variables like size of group, degree of specialization in tasks
assigned to group members, jurisdictional clarity, member-goal compatibility, leadership styles, reward
systems & the degree of dependence between groups. Diversity or even conflict of goals among
groups is a major source of conflict.
Viz. Sales and credit at an organizational level both are eventually concerned with growth of
business, but their conflicting roles creates an environment for high conflicts on a day to day
basis
Personal Variables
Have you ever met someone whom we have instantly disliked, disagreed with most of the opinions
he/she expressed. Personality, emotions, values plays a huge role in conflict management.
10/26/2014 31 PGC Business Management -
XLRI
Cognition & Personalization (Stage II)
Different Stages of the conflict Process
If one of the conditions from stage 1 exists, then the potential for opposition or conflict becomes
actualized at the second stage.
Perceived Conflict A may be aware that B and A are in serious disagreement, but it may not make
A tense or anxious and it may have no effect whatsoever on As affection towards B. Hence perceived
conflict does not mean its personalized
Felt Conflict individuals become emotionally involved at this level leading to anxiety, tension,
frustration or hostility. Emotions play a very important role in shaping perceptions.
Intentions (Stage III)
Intentions intervene between peoples perceptions and emotions and their overt behavior. Some
primary conflict handling intentions are shared below
one person seeks to satisfy his or her own interests regardless of its impact on the other person Competing
Collaborating When parties in conflict each desire to fully satisfy the concerns of all parties (mutually beneficial
solution)
Avoiding Person may recognize a conflict and want to withdraw from or suppress it.
Accommodating One person seeks to appease the other by sacrificing his own interests to maintain the relationship
Compromising Incomplete satisfaction to both parties. Willingness shown by both parties to ration the object of conflict
10/26/2014 32 PGC Business Management -
XLRI
Different Stages of the conflict Process
Behavior (Stage IV)
Its a dynamic process of interaction. Conflicts become visible from this stage. The behavior stage
includes, statements, actions & reactions made by conflicting parties or groups usually as overt
attempts to implement their own intentions
All conflicts reside on a continuum at different levels. The lower levels are characterized by subtle,
indirect & highly controlled forms of tension. Intensities escalate as they move upwards until they
become highly destructive like strikes, riots & wars.

Functional conflicts fall in the lower end of the continuum and dysfunctional conflicts in the middle and
higher end of the continuum
Outcomes (Stage V)
Action reaction interplay between conflicting forces result in consequences which can be functional
outcomes (if constructive and positive outcomes arise out of it) or dysfunctional (highly destructive or
impacting the organization)
Conflict Resolution techniques are Problem Solving, Superordinate Goals, Expansion of Resources,
Avoidance, Smoothing, Compromise, Authoritative Command, Altering the human variable, altering the
structural variables
10/26/2014 33 PGC Business Management -
XLRI
Define Negotiation
A process that occurs when two or more parties decide how to allocate scarce
resources
Outcomes of negotiations:
In one shot economic terms
like price of a car
Relationships between Negotiators can be very
important in organizations when the periodicity of their
interactions Is frequent. Good social relationships and
ethics are very important as an immediate outcome of
bargaining
10/26/2014 34 PGC Business Management -
XLRI
Bargaining Strategies
Two bargaining strategies describe the negotiation process.
Distributive Bargaining
Operates under zero sum conditions any gain I make is at your expense and vice
versa
Essence is negotiating over who gets what share of a fixed pie. When the pie is fixed,
or the parties believe it is, they tend to bargain distributively
In distributive bargaining, both parties have a target point that defines what he or she
would like to achieve
Individuals in power generally make the first move and make a aggressive offer which
can act like an anchoring bias. Once an anchoring point is set, its difficult to deviate
very diverse to the initial offer or the negotiations end up failing
Integrative Bargaining
Operates under the assumption that one or more settlements can create a win-win
situation
Both parties must be engaged to work (takes two to tango)
More preferred as compared to distributive bargaining, because it builds long term
relationships
10/26/2014 35 PGC Business Management -
XLRI
Negotiation Process
Preparation &
Planning
Definition of
Ground Rules
Clarification &
Justification
Bargaining &
Problem Solving
Closure &
Implementation
10/26/2014 36 PGC Business Management -
XLRI
Individual Differences in Negotiation Process
Are some people better negotiators than others. 4 factors influence how effectively
individuals negotiate
Personality
Moods/Emotions
Culture
Gender
Culture also plays a key role in negotiation. Research suggests that Japanese
negotiators tended to communicate indirectly and adapt their behaviors to the situation.
Indian negotiators have less trust in their negotiation counterparts than did US
respondents. Even then some negotiation tactics yield superior outcomes across
cultures

Gender also plays a key role in negotiation. Women and men place unequal values on
outcomes. A popular stereotype is that woman are more cooperative and pleasant than
men and hence influence less outcomes.
Evidence suggests womens own attitudes and behaviors hurt them in negotiations.
Managerial women demonstrate less confidence than men in anticipation of negotiating
& are less satisfied with their performance afterward, even when their performance and
the outcomes are similar to those for men 10/26/2014 37 PGC Business Management -
XLRI
Third Party Negotiations
Bargaining reaches a stalemate at times and in such scenarios, third party negotiators
are appointed to help in find a mutually acceptable solution
Third Party Roles
Mediator A neutral third party who facilitates a negotiated solution by using
reasoning, persuasion, alternatives. Viz. labor management negotiations
Arbitrato
r
A third party with the authority to dictate on an agreement. Can be
voluntary or compulsory. Advantage of arbitration over mediation is the
success ratio. It always results to some form of settlement as compared
to mediation.
Trusted third party who provides an informal communication link between
the negotiator and the opponent.
Conciliato
r
10/26/2014 38 PGC Business Management -
XLRI
8
7
6
5
4
3
2
1
LEADERSHIP
10/26/2014 39 PGC Business Management -
XLRI
Learning Objectives
1. Define Leadership ; contrast leadership and management

2. Summarize conclusions of trait theories of leadership

3. Central Tenets and Key limitations of behavioral theories

4. Compare & contrast Charismatic Vs Transformational Leadership

5. Define Authentic leadership and show why effective leaders exemplify ethics
and trust

6. Role of mentoring in our understanding of leadership

7. Challenges to the effectiveness of leadership
10/26/2014 40 PGC Business Management -
XLRI
Define Leadership
Leadership is the ability to influence a group towards the achievement of a vision or a
set of goals.

Leaders can emerge from within a group or by formal appointments.

Organizations need strong leadership and strong management for optimal
effectiveness.
Leaders are required to bring about change in status quo, create visions & inspire
members to want to achieve the visions

Managers are required to formulate detailed plans, create efficient organizational
structures and oversee day to day operations
10/26/2014 41 PGC Business Management -
XLRI
Summarize conclusions of trait theories of leadership
Trait theories of leadership focus on personal qualities and characteristics that differentiate
leaders from non leaders.

Most of the dozens of traits in various leadership reviews fit under one of the Big Five
giving strong support to traits as predictors of leadership.

Extraversion seems to be the best possible trait for leaders. Leaders who like being around
people and are able to assert themselves, who are disciplined and able to keep commitments
they make

Research has proven that traits can predict leadership.

Traits do a better job predicting the emergence of leaders and the appearance of leadership
than actually distinguishing between effective and ineffective leaders.

10/26/2014 42 PGC Business Management -
XLRI
Behavioral Theories
Trait research provides a basis for selecting the right people for leadership. In contrast,
behavioral theories of leadership implied we could train people to be leaders.
Two important dimensions substantially accounted for most of the leadership behavior
described by employees: initiating structure & consideration.
Initiating Structure is the extent to which a leader is likely to define and structure his or
her role and those of employees in the search for goal attainment. It includes behavior
that attempts to organize work, work relationships and goals.
Consideration is the extent to which a persons job relationships are characterized by
mutual trust, respect for employees ideas, and regard for their feelings. A leader high in
consideration helps employees with personal problems, is friendly and approachable, treats
all employees as equals and expresses appreciation and support
Employee Oriented leader emphasized interpersonal relationships by taking a personal
interest in the needs of employees and accepting individual differences among them & the
Production oriented leader, emphasized the technical or task aspects of the job focusing
on accomplishing the groups tasks.
10/26/2014 43 PGC Business Management -
XLRI
Leaders who have certain traits and who display consideration
and structuring behaviors do appear to be more effective.
Some leaders may have the right traits or display the right
behaviors and still fail..
10/26/2014 44 PGC Business Management -
XLRI
Contingency Theories
Researchers looked at situational influences, it appeared that under condition A, leadership
style X would be appropriate, whereas style Y was more suitable for condition B and style Z
for condition C. But what were conditions a,b,c?
The Fiedler Model
The Fiedler contingency model proposes that effective group performance depends on the
proper match between the leaders style and the degree to which the situation gives the
leader control
Key Features
Leadership success relies on the individuals basic leadership style. He created the least
preferred co-worker (LPC) questionnaire to identify that style by measuring whether a
person is task or relationship oriented.
The LPC questionnaire asks respondents to think of all the co-workers they have ever had
and describe the one they least enjoyed working with by rating that person on a scale of 1
to 8 for each of 16 sets of contrasting adjectives. If you describe the person you are least
able to work with in favorable terms (a high LPC Score), Fiedler would label you
relationship oriented
10/26/2014 45 PGC Business Management -
XLRI
Contingency Theories Fiedler Model
Fiedler assumes an individual leadership style is fixed. This means if a situation requires a
task-oriented leader and the person in the leadership position is relationship-oriented,
either the situation has to modified or the leader has to be replaced to achieve optimal
effectiveness
Situation Definition
After assessing an individuals basic leadership style, through the LPC Questionnaire, we
match the leader with the situation with the 3 contingency or situational dimensions
identified by Fiedler

Leader-Member Relations: is the degree of confidence, trust and respect members have in
their leader
Task Structure: is the degree to which the job assignments are process based
(structure/unstructured)
Position Power: is the degree of influence a leader has over power variables such as hiring,
firing, discipline, promotions and salary hikes.
10/26/2014 46 PGC Business Management -
XLRI
Combining the 3 contingency dimensions yields eight possible situations in which leaders
can find themselves. The Fiedler model proposes matching an individuals LPC scores and
the 8 situations to achieve maximum leadership effectiveness.
These 8 situations were further condensed to 3. Task oriented leaders do well in high &
low control situations and relationship oriented leaders do well in moderate situations
Contingency Theories Fred Fiedler Model
Evaluation and Application of Theory
First you can change the leader to fit the situation or change the situation to fit the
leader
10/26/2014 47 PGC Business Management -
XLRI
Contingency Theories Situational Leadership Theory developed
by Dr. Paul Hersey and Ken Blanchard
Situational Leadership Theory
SLT Focuses on the followers. It says successful leadership depends on selecting the right
leadership style contingent on the followers readiness, or the extent to which they are
willing and able to accomplish a specific task.
If followers are unable and unwilling to do a task, the leader needs to give clear and
specific directions
IF they are unable and willing, the leader needs to display high task orientation to
compensate for followers lack of ability and high relationship orientation to get them to
buy into the leaders desires.
If followers are able and unwilling, the leader needs to use a supportive and participative
style
If they are both able and willing, the leader doesnt need to do much
Research indicates that though SLT has intuitive appeal the results and outcomes of the
theory have not been successful.
Scope of SLT
10/26/2014 48 PGC Business Management -
XLRI
Contingency Theories Path Goal Theory developed by
Robert House
Path Goal Theory says its the leaders job to provide followers with the information,
support or other resources necessary to achieve their goals. The term path-goal implies
effective leaders clarify followers path to their work goals and make the journey easier by
reducing roadblocks.
Whether a leader should be directive or supportive, depends on the complex analysis of the
situation.

Directive Leadership yields greater satisfaction when tasks are ambiguous or stressful than
when they are highly structured and well laid out.
Supportive leadership results in high performance and satisfaction when employees are
performing structured tasks
Testing Path Goal theory has not been easy and has produced mixed results.
Scope of Path Goal Theory
10/26/2014 49 PGC Business Management -
XLRI
Contingency Theories Leader- Participation Model developed by
Victor Vroom and Phillip Yetton
Leader Participation model relates leadership behavior and participation in decision making.
The theory argues that the way leader makes decisions is as important as what she or he
decides
Leader behavior must adjust to reflect the task structure. The model provides a decision tree
of seven contingencies and five leadership styles for determining the form and amount of
participation in decision making.
Scope of Leader-Participation Model
The models complexity makes it very difficult to bring effective outcomes.
10/26/2014 50 PGC Business Management -
XLRI
Contingency Theories Leader- Member Exchange (LMX) Theory
or Vertical Dyad Linkage Theory
Leader Member exchange theory argues that, because of time pressures, leaders establish a
special relationship with a small group of their followers. The individuals make up the in
group-they are trusted, get a disproportionate amount of the leaders attention and are
more likely to receive special privileges. Other followers fall into the outgroup.
Scope of the Theory
It focuses on the relationship that develops between managers and members of their
teams. The theory states that all relationships between managers and subordinates go
through three stages.
Role-Taking occurs when team members first join the group. Managers use this time to
assess the new members skills and abilities.

Role-Making- New team members then begin to work on projects and tasks as part of
the team. In this stage, managers generally expect that new team members will work hard,
be loyal and prove trustworthy as they get used to their new role. In this period, managers
subconsciously sort members into ingroups and outgroups


10/26/2014 51 PGC Business Management -
XLRI
Routinization - During this last phase, routines between team members and their
managers are established.
In-Group team members work hard to maintain the good opinion of their managers,
by showing trust, respect, empathy, patience, and persistence.
Out-Group members may start to dislike or distrust their managers. Because it's so hard
to move out of the Out-Group once the perception has been established, Out-Group
members may have to change departments or organizations in order to "start over."
Contingency Theories Leader- Member Exchange (LMX) Theory
or Vertical Dyad Linkage Theory
A problem with the Leader-Member Exchange Theory is that it assumes that all team
members are equally worthy of trust, prestigious projects and advancement. Although
we may like to think that everyone is honest, hard-working and worthy of our esteem,
the reality can be different!

Managers need to get the best possible results. This means putting the right people in the
right places, and it means developing and reinforcing success. Of necessity, this means
that talented people will get more interesting opportunities and may get more attention
than less-talented ones.
Summarize on the Theory
10/26/2014 52 PGC Business Management -
XLRI
Charismatic & Transformational Leadership
is when a person assumes or is given the role of leader based on his or her charisma. The
employees, followers, or subordinates follow the directions and instructions of this leader
based almost solely on that charisma.
The charismatic leader is connected to the people, is popular, and those who work for or
follow that leader will hang on their every word. A charismatic leader is almost akin to a
religious figure. It is the leader's personality that ultimately gets things done and the people
who follow that leader will ensure goals are achieved out of respect for the leader.
Charismatic Leadership
Transformational Leadership
is when the person in the leadership position connects to the people as well, but they appeal
to each person's abilities and ideas. The transformational leader challenges each person to
be all that they can be and more; encouraging productivity and innovation. This type of
leader will expect the same from each team member or follower as he or she expects from
themselves.
A transformational leader is always energetic, expecting new ideas and encouraging
questions from the followers, even if the questions are about the leader & the leader's
course of action.
10/26/2014 53 PGC Business Management -
XLRI
Difference between Charismatic & Transformational Leadership
The main difference is in intention and structural integrity.
Analogy
Say a project is being carried out by two groups, one with a charismatic leader and one with
a transformational leader. Each team starts out well with much energy and enthusiasm.
The charismatic leader just decides one day to leave and go elsewhere. The likely result is
the charismatic team's project will stall out or fail altogether to achieve the goal. This is
because the mental part of achieving success lies with the leader being there. Without that
person accomplishment is not possible.
With the transformational leader the followers are inspired to believe more in the team and
themselves, as well as the goals of the project. If the leader leaves it is likely a new one will
step into place and the work will continue until completion.
Which is more relevant?
Based on the comparisons of each style it would seem that overall transformational
leadership is better than charismatic. It can be seen how people react with enthusiasm to
both types although the goals are more likely to be achieved with transformational than
charismatic.
Charismatic leadership success depends almost solely on the presence of the leader and can
be subject to corruption as the leader knows that the people will likely follow no matter
what.
10/26/2014 54 PGC Business Management -
XLRI
Authentic Leadership & Servant Leadership
Authentic leaders know who they are , know what they believe in and value, act on those
values and beliefs openly and candidly. Their followers consider them ethical people. The
primary quality produced by authentic leadership is trust. People have faith in them.

Ethics and Leadership intersect at a number of junctures. Ethical leaders use charisma in a
socially constructive way to serve others.
Servant Leaders go beyond their own self interest and focus on opportunities to help
followers grow and develop. They dont use power to achieve ends; they emphasize
persuasion.

Characteristic behavior include listening, empathizing, persuading, accepting stewardship,
and actively developing followers potential. Its more prevalent in certain cultures.
10/26/2014 55 PGC Business Management -
XLRI
Thank You
10/26/2014 56 PGC Business Management -
XLRI