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MN7028SR Breakthrough Leadership Skills	Academic Year 2024/25 Assessment #1 Group presentation (30%) Ppt slides with maximum 1,000 +/- 10% words
First Marker:
Second Marker:
Title of presentation: Group Presentation on Case Study (Transferring the Toyota lean cultural paradigm into India: implications for human resource management)
Assessment criteria	Tasks	1st Marker	2nd Marker
Critically evaluate approaches to leadership within business organisations 1. The management practice favoured by Toyota and how it undertakes international expansion. Impact on employee and human resources. 2. Relevant theories of management and leadership and their application to the case study. 3. How Toyota undertook the expansion into India; theories of diffusion and cross border leadership. 4. Cultural aspects of cross border organisation culture and leadership. 5. Differences in organisational and employee culture between India and Japan. 6. The challenges faced by Toyota, the outcome and the changes made. (50 marks)	Write a brief introduction background of the “given” case (5 marks) 1. Explain the involved “international, human resources” management practices (10 marks) 2. Explain the involved “management and leadership” theories (10 marks) 3, 4, 5. Explained the theories of diffusion and cross border leadership in term of cultural aspects, differences between India and Japan (20 marks) 6. Outlines the challenges, outcomes, changes made by Toyota (5 marks)
Quality of empirical evidence 1. Where are theories and facts sourced from 2. Have you considered the most relevant theories (20 marks)	Provide evidences to support the 1. Sources of your theories (with references) (10 marks) 2. Relevancy of the used and quoted theories (10 marks)
Clarity and quality of presentation skills 1. The professional nature of the slides and supporting notes 2. The video delivery of the presentation. (30 marks)	Demonstrate by showing the 1. Quality of the presentation 2. Quality of the ppt slides’ contents 3. Evidence of team work (30 marks)
Total Marks (100 marks)
Areas for Improvements
From First Marker
Knowledge and understanding
Analysis and evaluation
From Second Marker
Knowledge and understanding
Analysis and evaluation
Agreed Marks First Marker’s marks/date: Second Marker’s marks/date:

Topic 1: Introduction to Leadership

Breakthrough Leadership Skills

MN7028

Learning outcomes for the session

Explore some theories of management

Identify some of the components/styles of management

Compare the terms “management” and “leadership”

Explore some theories of leadership

Conclusions: developing theories on leadership?

Introduction to module assessments (and team allocation)

Discuss in pairs (10 mins)

What do managers do?

What are their key activities/functions?

Fayol’s (1949) five activities of managers

•

Forecasting & Planning – examine the future and decide on what needs to be achieved and develop a plan of action

Organising – providing material or resources & build a structure to carry out the activities Command – getting the best out of the staff

Co-ordination – harmonising activities Control – ensures everything goes according to the plans, instructions

•

Drucker on management (1954, 1974, 2005)

•

They have three tasks (all important but essentially different):

Achieve the mission of the organisation Ensure performant, contented workers

Manage social impacts/responsibilities Five basic operations of the manager:

Sets objectives

Organises Motivates Communicates Measures

These require combination of: analytical ability

Integrity

human perception and insight social skills

Theories X and Y (McGregor, 1961)

The style of management is a function of the managers attitudes towards people and assumptions about people

Theory X: workers dislike working, need to be watched; motivated by physiological and security needs

Theory Y: given responsibility workers have potential to add creativity and value; motivated by esteem and self- actualisation

Theory Z (Ouchi, 1985): focus on long term well being of the employee; consensus decision making and strong company culture

The different roles of a manager: Mintzberg (1973)

Interpersonal

Informational

Decisional

Figurehead Leader

Handler

Liaison

Monitor Disseminator

Entrepreneur Disturbance

Spokesperson

Resource allocator Negotiator

Mullins (2013) philosophy for the successful management of people

•

consideration, trust and respect recognition and credit involvement & availability

fair and equitable treatment

positive action on an individual basis – not blanket treatment

emphasis on end results

staff and customer satisfaction

What are the measures of effectiveness?

•

Mullins believes that managers are judged on the performance of their staff, which therefore makes these aspects critical:

–

strength of motivation and morale of staff success of training and development

creation of positive culture but these are hard to measure

•

These can be measured as follows:

–

staff turnover absenteeism sickness time keeping

accidents at work

•

And in some workplaces can be measured as follows:

–

meeting deadlines accuracy or recorded errors

level of complaints from clients, other departments, suppliers etc

keeping within budget productivity

–

Some observers perceive differences between managing in the public and private sectors (Mullins, 2013)

•

aims concerned with providing a service for and for the well being of the community rather than just commercial nature

scale, variety and complexity of operations (arguably)

high media profile (scrutiny)

political make up (elected members and permanent officers) Higher level of unions involvement

difficulty in measuring standards of performance compared with profitability

demand for uniformity of treatment

more rigid personnel policies and specific limitations on authority

… but they still face same general problems of management (Mullins, 2013)

•

efficiency and effectiveness of their operations

clarification of aims and objectives

design of suitable structures and carrying out essential admin functions

basic principles of management apply in any organisation

Key management skills may be contingent on the stage and context of the organisations

Different skills are required to manage (lead?) start-up organisations, maturing organisations, failing organisations.

10 minute discussion in small groups:

What do you think those different skills are?

Would you use a former Marketing Director to conduct a turnaround or a former FD to create a start-up?

Managers of the future? (Heller, 1997)

Heller identified ten key strategies for Europe’s new breed of managers including:

develop leadership

drive radical change

reshape culture

divide to rule

ensure the competitive edge

manage the motivators

ensure team working

achieve TQM

Small Group Discussion (15 mins)

•

Who do you consider to be a great leader?

Why have you chosen the person(s) you have identified?

What traits, abilities or skills do they possess?

As a class consider if the people you have identified/share any common traits, abilities or skills

Kotter on Leadership v Management

Kotter’s (1990) Distinction Between Managers and Leaders

Planning and budgeting (deductively producing orderly results)

Motivating people (creating Involvement, emphasising values, building informal networks of relationships)

Controlling and problem solving (comparing behavior with plan, taking action to correct deviations)

Aligning people to the vision (emphasising communication, credibility, and Empowerment)

Setting a direction (inductively creating a vision and strategies to provide focus for planning)

Organising and staffing (structuring jobs and reporting relationships to efficiently implement plans)

Managers

Coping with complexity

Leaders

Coping with change

3 Basic Tasks

Deciding what needs to be done

Creating networks and relationships

Ensuring people do the job

Managers versus Leaders

•

Managers have formal power and authority to be in charge. Leaders influence others to follow and have personal power

“Managers do things right while leaders do the right thing” (Bennis & Nanus, 1985)

The leader establishes vision & direction, influences others to sign up to that vision, inspires them to overcome obstacles, and produces positive, radical change. The manager establishes plans & budgets, designs & staffs the organisation structure, monitors & controls performance and delivers order & predictability (Kotter, 1990)

The leader is prophet, catalyst, mover-shaker, focused on strategy. The manager is operator, technician and problem solver, concerned with the “here and now of goal attainment” (Bryman, 1986)

Some Theoretical Approaches to Leadership

•

The traits/qualities approach

Behavioural approach (focus on leader as key actor)

Situational (focus on follower as key variable)

Contingency approach

•

Traits approach: distinguishes leaders from non-leaders by their traits

•

Self-confidence

Drive for achievement Honesty & integrity

Ability to motivate people towards a common goal

Intelligence

Creativity Ability to adapt

Clegg et al (2005) in Watson and Reissner (2016)

Behavioural approach to leadership (Likert, 1961)

•

Relationship orientated leaders (managers)

Task orientated leaders (managers)

•

Emphasise the technical or task aspects of the job: people are means to an end

Emphasise interpersonal relations and accept individual differences

Production Oriented

Employee Oriented

Behavioral Theories:

University of Michigan Studies and Ohio State University studies

Developed two dimensions of leadership behavior:

Where X axis measures ‘concern for production’ and y axis measures ‘concern for people’

•

Impoverished management

Produce or perish (Authority/compliance) management Country club management

Middle of the road Team management

Blake & Mouton Management and Leadership Grid (1964)

Distinguishing between leadership for stability and leadership for change (Burns, 1978)

Transactional Leader:

•

Determines what subordinates need to do in order to achieve both their own and organisational objectives.

Helps subordinates reach their objectives. Focussed on exchanges between leader and follower

Transformational Leader:

Uses his/her personal vision and energy to inspire people to exceed their own expectations

Raises motivation and stresses the value of team member contributions to the organisation.

Transactional Leadership

•

Uses reward and coercive powers to encourage high performance

Problem-solving and implementing If subordinates do what is required by leader then given rewards

Tend to support and maintain a ‘status quo’ and promote stability within organisations

•

Transformational Leadership (Burns, 1978)

•

Leading for change

Broadens and elevates the interests of their employees – more visionary Work through social and emotional

behaviours in order to create awareness and commitment

Stirs employees to look beyond their own self-interest for the good of the group/organisation

Have ability to energize others to follow a particular direction – influences using charisma and personal power

•

Components of Transformational Leadership Style (Burns 1978, Bass 1985, Bass and Ovolio 1994)

Individualised consideration

Leader treats each follower on his/her own merits, seeks to develop followers through delegation and coaching/mentoring

•

Intellectual stimulation

Encourages free thinking and emphasises reasoning before taking any actions Inspirational motivation

Creates an optimistic, clear and attainable vision of the future, encourages others to raise their expectations

Idealised influence

Makes personal sacrifices, takes responsibility for actions, shares credit and shows determination

Situational theory of leadership (Fiedler, 1971 in Watson and Reissner, 2016)

The leader’s effectiveness will depend on these variables:

Relationships structure (how much workers trust and like the leader)

Task structure (how clear workers are about the task)

The power of the leader to influence the workers (whether legitimate power, coercive power, or reward)

The leader can influence these variables by

•

Presenting clearly defined job outcomes Rewarding in line with motivators of the worker (i.e. bundling outcomes with rewards)

Removing obstacles to effective performance

Showing confidence in the worker

In Situational Leadership Theory

Leaders are diagnosticians and are capable of changing their style.

The “right” style leadership style will depend on the degree of the workers’ readiness and commitment, or levels of competence to do the task.

The leader should assess workers’ needs and adapt his/her style to those needs.

Hersey et al (2001) propose four different styles according to the circumstances: Telling, Selling, Participating and Delegating.

Kreitner (2001) suggests that deploying these different approaches might be especially relevant in cross-cultural management contexts

Hersey & Blanchard’s Situational

Leadership Theory (1988):

•

Belief: Right leadership style must depend on the level of the followers’ readiness or maturity.

Premise: The leader should assess follower needs and adapt the style to those needs.

Assumption: Leaders are diagnosticians and are capable of changing their style.

•

Situational Leadership Model

A leader is expected to use the appropriate style based on the subordinate’s readiness & willingness to be led by others.

Four leadership styles or roles

•

Delegating (S4) Participating (S3) Selling (S2) Telling (S1)

To be used according to follower readiness

Willing & able (R4): Delegating style

Unwilling & able (R3): Participating style

Willing & unable (R2): Selling style

Unwilling & unable (R1): Telling style

Contingency Approaches (after Fiedler, 1971)

•

Examines the impact of the leader’s style and the situation on desired outcomes.

All contingency theories define:

–

Leader’s behaviour or style The situation (context) Outcome(s) that are desired

•

There must be a match between the leader’s style and the demands of the situation for the leader to be effective.

Snowden and Boone (2007) offers a framework for decision-making.

Snowden (2007): ‘A leader’s framework for Decision-making’

Contingency approach continued:

“Contingency theory of leadership (is) a perspective which argues that leaders must adjust their style in a manner consistent with aspects of the context” (Huczynski & Buchanan, 2007 p. 695)

Aspects include

•

the relations structure (how much workers like the leader)

The task structure (how clear workers are about the task)

The power of the leader to influence the actors

(Watson and Reissner, 2016)

Fiedler’s contingency model can be applied to this approach where:

Job outcomes are clearly defined

Rewards are correlated to performance

Obstacles to performance are removed

Leader-confidence in employees’ abilities is evident

Moorcroft (2000) – ‘new principles’ for ‘managing in the 21st Century’

•

Manage information through people Change is constant, and must be managed Technology is the future

Relationships matter

Investment in Training and Development is important

Measure only against the best The market is global

Unity of Direction is important

Equity is expected Initiative is important

The Most Frequently Cited Skills of Effective Managers/Leaders (Carlopio and Andrewartha, 2011)

•

Verbal communication (including listening)

Managing time and stress

Managing individual decisions

Recognizing, defining, and solving problems Motivating and

influencing others

Delegating Setting Goals and

articulating a vision

Self-awareness Team building Managing conflict

•

Any conclusions about the emerging perspective on the concept of leader?

Change (whereas management is about stability)

Process (not personality)

Interactive

Goals

‘Leadership is a process whereby an individual influences a group of individuals to achieve a common goal’ (Northouse, 2019)

Talking through the assessments

Useful Resources

•

Hamel G. Moon Shots for Management. Harvard Business Review. 2009;87(2):91-98. Accessed November 13, 2020.

Kotter, John P. (1996). Leading Change. Harvard Business School Press

Mintzberg, H. (2013) Simply Managing. London: FT Publishing

Mullins L (2013) Management & Organisational Behaviour, 10th ed. FT Prentice Hall, Essex Northouse, P.G. (2018) Leadership: Theory and

Practice (8th ed.) Sage: London

Perkins, S. J., & Arvinen-Muondo, R.

(2013). Organizational behaviour: [people, process, work and human resource management]. London, Kogan Page. (ch.5)

Uhl-Bien, M & Arena, M 2018, ‘Leadership for organizational adaptability: A theoretical synthesis and integrative framework’, Leadership Quarterly, vol. 29, no. 1, pp. 89–104.

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Breakthrough Leadership Skills MN7028

Topic 2: Organisational Design

Learning Outcomes

To contrast “Classical” models with human relation models of management

To trace some of the corresponding changes from traditional to contemporary models of organisational design

Explore the emergence of autonomous work teams (drivers?)

Some alternative schools of management and some advocates

Classical: Taylor, Fayol, Weber

Human Relations: Mayo, (later McGregor, 1960s)

(Communication) Systems: Barnard

Learning Organisation (Senge, 1990)

Job design in the context of personnel as a ‘cost’ to the business

Taylorism and Fordism

management studying the work methods for each job

establishing the most efficient methods

Scientific management: time and motion studies

Fordism; increased division of labour

Fayol (1949)

Refocused attention away from the shop-floor toward management itself

‘General and Industrial Management’ pamphlet (1949) presented the functions of management as:

Planning: (including forecasting, setting goals, determining actions)

Organising: (designing a suitable organisational structure to effectively harness the HR and non-hr elements required)

Co-ordinating: uniting activities and providing required resources

Commanding (and directing): Including leadership and motivation towards goals

Controlling: ensuring they stick to the plan

Fayol (continued)

Fayol’s 14 Principles of management (1949) implied :

a rigorous hierarchy (Unity of Command/Unity of Direction/line of command)

But also encouraged the nurturing of initiative in their workers by managers

Esprit de corps (Teamwork).

Max Weber

Bureaucracy Theory (1947) emphasised:

‘order’

‘focus on authority’.

It can be seen as limited in the context of organisations viewed as social systems

It can also be seen as limited in the context of societal embeddedness

Job design begins to recognise needs and broader contribution of the worker

Early industrial revolution: personnel had a welfare role

Consider origins Cadbury, Rowntree.

Rise of trade unionism: industrial relations role

The Hawthorne studies

‘soft’ HR tracks through to Mayo (1933), who founded the Human Relations school and McGregor (1960) who recognised that the needs of both the organisation and the individual need to be recognised

Brings us to a consideration of Organisational Design (OD)

OD is the ‘process of assigning responsibilities and structuring work to support enterprise goals, objectives and strategies’ (Bloisi, 2007)

It is reflected in the title of Chandler’s iconic book: ‘Strategy and Structure: Chapters in the history of Industrial Enterprise’ (1962)’,

Two contrasting perspectives about the design of the organisation emerged in the 60s largely influenced by the works of Burns and Stalker (1966) and Lawrence and Lorsch (1969)

Mechanistic structure

Hierarchical structure

Well-defined roles and responsibilities

Highly specified tasks

This form lends itself to organisations operating in stable marketplaces with little external change and low levels of uncertainty. Work efficiencies can be achieved through the structure but the design does not offer much versatility or flexibility.

Organic structure

Knowledge is valued at all levels of the firm

Tasks are continuously being redefined in processes of collaboration

Knowledge may be found anywhere in the organisation and equates to power

Communications in the organic organisation serve to build knowledge rather than give orders

Four basic organisational structures spanning 50 years

Since the 1960s organisations have been structured according to the following criteria:

Function

Geography

Product

Customer

Each of these designs ‘produces different behaviours and different outcomes’ (Bloisi, 2007) and also requires different trade-offs.

Whitbread

https://www.youtube.com/watch?v=6h3ngHtoMO0

Contemporary organisation beyond the team level (work system design)

By Function

By Product

By Customer

Matrix Structure

Lattice structure

Greater emphasis on the HRM orientation is further stimulated by:

The Great Depression (1929-1939)

‘Loss of faith’ in traditional mass-production techniques (Henderson, 2017)

The eclipse of US management practices by those used in Japan in the 80s.

E.g. Pascale, Managing on the Edge (1990)

The Autonomous Work Group (AWG)

Tavistock Work Organization Model (e.g. Trist and Bamfoth 1951; Emery, 1963)

Work should be organized in teams.

Individual jobs should provide:

Variety;

A meaningful task;

An optimum work cycle;

Worker’s control over work standards;

Feedback of results;

A perceived contribution to end product.

The AWG concept is not dependent on any specific technology so it applicable in virtually all work situations.

(Henderson, 2017)

Maslow and self-actualisation

‘Maslow’s influence is clearly stamped across the work design theories and practices of the latter half of the twentieth century.’

(Buchanan, 1994)

Theory of Motivation’ (1954) was the study of ‘ultimate human goals’.

Maslow’s work:

Emphasised primacy of individual needs

General principles derived from ‘motivation theory’ (Maslow, 1954)

Importance of ‘self-actualisation’ of workers at an individual level

Set goals.

Involve the employees concerned in designing and agreeing the goals.

‘Stretch’ goals lead to significant increases in employee performance.

Link rewards to performance when possible.

Increase employees’ sense of ‘self-efficacy’ (confidence that they can perform the job or task well).

General principles derived from motivation theory (cont’d)

Let employees know the expected level of performance and give them accurate and timely feedback.

Giving positive rewards for good performance is more effective in motivating people then punishing them for poor performance.

Perceived fairness or equity is vital to the motivation.

McGregor (1961)

Influenced by Maslow’s theme of self-actualisation. Douglas McGregor wrote The Human Side of the Enterprise’ (1961). McGregor’s perspective embraced the themes of ‘participation, openness, trust, exchange and a resolution of the conflict between personal and organisational goals’ (ibid, foreword by G.Bennis).

McGregor developed the concepts of Theory X and Theory Y

Theory x: ‘people are a cost that must be monitored and controlled’

Theory Y: ‘people are an asset that should be valued and developed’

Also made the following observation: ‘The capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely, not narrowly distributed in the population.’ (ibid)

Job Design

‘Job design specifies the contents of jobs in order to satisfy work requirements and meet the personal needs of the job holder, thus increasing levels of employee engagement.’

Armstrong (2014, p. 145)

Work Design

‘Work design is the creation of systems of work and a working environment that enhance organizational effectiveness and productivity, ensure the organization becomes a “great place in which to work” and are conducive to the health, safety and wellbeing of employees’.

Armstrong (2014, p. 136),

Intrinsic Motivating through job design

Lawler (1969) identifies three elements to job design which are necessary to make a job ‘intrinsically’ motivating:

Feedback relating to performance: this should be meaningful (Armstrong, 2010). Armstrong also states that this means they be able to see more of the picture, i.e. how their role fits into the whole process.

Abilities: the jobholders must feel that they are making use of those abilities which they values.

Self-control (autonomy): the jobholders must feel they have discretion

Increased focus on ‘job characteristics’ in job design (Hackman and Oldham, 1976)

Hackman and Oldham, 1976, propose a ‘job characteristics model’ (ibid), comprising five key elements:

Skill variety (the range of skills and talents required)

Task identity (the breadth within the task)

Task significance (in relation to the “bigger picture”)

Degree of autonomy (discretion, e.g. in methods)

Feedback (clarity on performance)

If jobs are designed in a way that maximises these dimensions then three psychological states can occur:

Experience of meaningfulness at work

Experience of responsibility for work outcomes

Knowledge of results of work

Managing the intrinsic element through job design contd.

Robertson and Smith (2005) propose five similar aspects of the job design which can influence intrinsic motivation:

Skill variety

Pooling tasks together

Task significance

Degree of autonomy

Feedback (delivered through ‘good relationships and opening feedback channels’) (Armstrong, 2010)

Armstrong advocates adopting these approaches when setting up new work-systems or jobs, but he also stresses that ‘the greatest impact on the design of work systems or jobs is made by line managers on a day-to-day basis’

Job Design: The Job Characteristics Model (JCM) and how it relates to EE

Job Characteristics Model (Hackman and Oldham, 1976)

Skill variety: the extent to which a jobholder is required to use a range of different skills.

Identity: the extent to which a job involves the completion of a ‘whole’ piece of work with end-to-end responsibility.

Significance: the amount of impact that a job has, and the contribution that the job makes.

Autonomy: the amount of discretion that the jobholder has in making decisions about what to do and how to do it.

Feedback: direct information about the performance requirements of the job.

Toyota Production System (TPS)

Features of both AWG and Taylorism?

Just–in-Time (JIT) production processes.

Teamwork

Jidoka quality principle (error-free processes)

Standardized work and kaizen (continuous improvement )

Sparrow on Lean management

‘building people, then building products’

Toyota build teams of ‘skilful systems thinkers’ and build a culture of ‘challenge the status quo’ or continuous improvement (or Kaizen)

Some mechanisms (largely driven by HR) which can help deliver lean management

‘genchi genbutsu’ (trans.: going to the real place of work)

‘Out-learning’ (matrix teams, action learning)

‘Yokoten’ (Communities of practice)

Finding the root cause of problems (facilitated by cultures of empowerment, collaboration, and challenging the status quo)

Retrospectives (frequent events to analyse and design activities) Maximising “pull” and minimising “push” activities (by a rigourous focus on quality and ‘perfection’ (Sparrow)

Learning Organisation (Senge, 1990)

Personal Mastery

Mental Models

Shared Vision

Team Learning

… and the Fifth Discipline:

Systems thinking

McDonaldization (Ritzer, 1993)

Efficiency

Calculability

Predictability

Control

Smart working (CIPD, 2008)

Self-management

Virtual teams

Outcome-based performance criteria

High performance working

Flexibility in both hours and locations

Use of more advanced technology

Hot-desking and working from home

Trust

Alignment to business objectives

Flexibility

Employers pursue flexibility to:

minimize human resource costs in both the short and long run.

protect the core from short term, fluctuations in market demand.

respond to the demands of an increasingly diverse workforce in terms of (i) legal compliance and (ii) discretionary entitlement to attract/retain Core employees.

Types of flexibility (Henderson, 2017)

Functional flexibility

employees can be redeployed quickly to new tasks and activities (e.g. multi-skilled craftsmen and team-workers).

Numerical flexibility

enabling the organisation quickly to increase and decrease the numbers employed in response to market demand.

Financial flexibility

pay systems that reinforce the requirement for flexibility (e.g. performance-related pay, pay-for-skills).

Some alternatives to full-time permanent employment

Temporary working

Part-time working

Job-sharing

Home-working

New forms of employment (Henderson, 2017)

Employee sharing, where an individual worker is jointly hired by a group of employers.

Interim management, in which highly skilled experts are hired temporarily for a specific project or to solve a specific problem

Casual work, where an employer is not obliged to provide work regularly to the employee but has the flexibility of calling them on demand.

Voucher-based work where the employment relationship is based on payment for services with a voucher purchased form an authorised organisation that covers both pay and social security contributions.

Portfolio work where a self-employed individual works for a large number of clients

New forms of employment (Cont’d)

New forms of employment which utilize Information and Communications Technology (ICT), such as ‘crowd working’ (Henderson, 2017)

Contemporary ideas about Organisational Structure and Work Design

Greater emphasis on organisations as a social system, especially in contexts where “soft” HR practices are suitable.

Progression from control to enablement

Learning Organisation

Greater emphasis on organisations as a part of set of social relations outside the immediate organisation, e.g. Granovetter (2002), e.g. Teece’s concept of the business eco-system (e.g. 2007) in dynamic capability theory

Selected References

BLOISI, W., COOK, C. W., & HUNSAKER, P. L. (2006). Management and organisational behaviour. Maidenhead, McGraw-Hill Education.

BUCHANAN, D. A., & HUCZYNSKI, A. (2019). Organizational behaviour. Part 4

CLEGG, S., KORNBERGER, M., PITSIS, T., & MOUNT, M. (2019). Managing and organizations: an introduction to theory and practice.

SENGE, P. M. (2010). Fifth Discipline: the Art & Practice of The Learning Organization. New York, Random House US.

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Breakthrough Leadership Skills MN7028

Session 10: Negotiation: Priorities, Processes, Strategies

Learning Outcomes

Define Negotiation

Characteristics of successful negotiation

The importance of questioning, probing and listening

Needs, wants and influencing

The importance of a continued listening actively

Getting to Yes / BATNA

Explore related processes

Exercise on Interim Recruitment Negotiations

William Ury : Getting to Yes – YouTube

Definitions of negotiation

‘An extended communication created in dialogue by two sides’ (Mead 2005)

‘A process of discussion between 2 or more parties with the aim of achieving a satisfactory agreement’ (Tayeb 2003)

‘Requires parties with opposing interests to get together to make a decision’ (Elahee and Brooks 2004)

frances tomlinson

Negotiator skills

Research and Planning skills

Ability to think clearly under stress

Practical intelligence

Verbal ability

Product knowledge

Personal integrity

Ability to perceive and exploit power

Understand the issue

Negotiator skills

Is prepared

Recognises key issues quickly

Seeks the win-win

Has stamina

Knows when (if) to compromise

Tolerates conflict and stress

Listens well

Has sensitivity to other‘s needs

Shows patience

In the room

Confident (tone, handshake, eye contact)

First impressions count (appearance)

The £150 Game

“I will give a prize of £150 to each of the first two people who can persuade another MBA student to get up, run around Holloway campus, return to the class and stand behind his or her chair.”

What would you do?

You have to move quickly

What is your instinct?

The £150 Game

Option 1: don’t play

This is the approach of the Avoider

• Prefers not to get involved at all

• Dislike stress

• Avoids situations with “winners” and “losers”

• Can be (surprisingly) very difficult to negotiate against

The £150 Game

Option 2: Run and stand behind the chair of the person opposite you, trusting that she will give you a fair share of the cash

This is the approach of the Accommodator

Resolves conflict by solving the other party’s problem

If the counterpart is similar, he shares the wealth

But if the counterpart has another approach, the Accommodator may end up with nothing

The £150 Game

Option 3: Shout to the person sitting across from you that he should run over and get behind your chair and that you’ll share the money with him if he does

This is the approach of the Competitor

• First instinct is to see “zero sum” allocations

• Likes to “win”

• May even lie if he’s asked to get up and move, claiming he has a sprained ankle

The £150 Game

Option 4: If the person across from you is offering you £75 to stand behind her chair, take the deal (even if you made the same offer to her)

This is the approach of the Compromiser

• Favours deals that give something to each party

• Interested in maintaining relationships

• Tends to “split the difference”

The £150 Game

Option 5: Suggest to the person opposite you that you BOTH get up and stand behind each other’s chair, so you BOTH get £150

This is the approach of the Collaborator

• Tries to find a way for both parties to get the best outcome

• Willing to be creative and brainstorm

• May not be successful against a strong competitor

The £150 Game: Conclusions?

• There is no one “right” way to negotiate

•We must learn to be conscious of our own style

• Five basic types of negotiators

• Competing

• Accommodating

• Avoiding

• Collaborating

• Compromising

Negotiation styles

•Most people use a combination of these styles

•Be aware of your “default” style

• Recognising it will allow you to move away from knee-jerk responses

•Be aware of your counterpart’s style

•Be tactical about altering style as appropriate

Communication styles

How We Communicate Could Determine How Persuasive We Are

• Verbal (the words)

• Vocal (the tone)

• Silence

• Facial (the expressions)

• Non-verbal ( the body movements)

Cultural Patterns/styles

How We Perceive the word “negotiation” could dictate your approach

Japan, China: negotiations are part of relationship building process (there is no getting to yes in the room)

Spain: it’s the deal that matters

Germany: formal

Mexico/USA: informal

Netherlands/Israel: direct

May show video on cross cultural negotiation

BATNA

“Best Alternative To a Negotiated Agreement.”

It is defined as the most advantageous alternative that a negotiating party can take if negotiations fail and they do not secure the desired agreement

The BATNA is a party’s best alternative is if negotiations are unsuccessful.

It helps clarify alternative agreements proposed by the other party that you should reject.

It underpins the art of letting them have your way.

May show video on cross cultural negotiation

BATNA

So, generate possible BATNAs:

• Invent a list of actions you might take if no agreement is reached

• Improve some of the better ideas and convert them into options

• Select your Best Alternative To a Negotiated Agreement

• Then, consider what the other side’s BATNA might be…

May show video on cross cultural negotiation

Key Negotiation Strategies

Time issues and Deadline strategies

• Conceal your real deadline

• Declare an earlier deadline

• Find the other side’s deadline

Information

• Considered the heart of negotiations – shapes strategy, reality • Preparation is key – side with more info. has edge

• BATNA

Power

• Is it about power, ego, leverage • Balance between parties is a key factor

Key Negotiation Strategies

Getting to Yes, key elements:

Focus on interests, not positions:

• Interests = needs, desires, concerns, fears that lead to “why”

• Positions = specific demand

Separate people from positions

• People negotiate – are affected by egos, feelings, anger

• “Step into their shoes” to discover their reasoning

Focus on objective criteria

• Facts, principles, standards can be used to frame an offer Develop mutual-gains options

A settlement must be better than no agreement for both parties

• Propose options with gains for both parties

Interests, not positions

The basic problem in a negotiation lies not in conflicting positions, but in the conflict between each side’s needs, desires, concerns and fears. So, identify the Interests of the other side:

Ask why they take a particular position [to understand]

Isolate the other side’s choices [how do you want to affect them?]

Analyse the consequences of accepting or rejecting your request

Options for mutual gain

Is this distributive (win lose/zero sum) or integrative(win win) negotiation? How can you expand the pie? How can you have your cake and eat it? Invent solutions which are advantageous to both sides.

But beware of :

• Premature judgment

• Searching for a single answer

• The assumption of a fixed pie

• Believing that ‘solving their problem is their problem’

Story about cooks arguing over the orange. Do we chop it in half or does one of use want the peel.

Objective criteria

Frame each issue as a search for objective criteria

What objective standard might be relevant?

Be open to reasoned persuasion on their merits

Never yield to pressure, only to principle

True or false?

“In Business As in Life, You Don't Get What You Deserve, You Get What You Negotiate” (Chester Karrass, 1996)

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Breakthrough Leadership Skills MN7028

Topic 11: Diversity and Inclusive Leadership

Learning Outcomes for this session

Compare/Contrast Equality agenda with Diversity agenda

Current situation

The business case

Solutions

Equality and diversity – background and context

Societal context – landmark legislation in UK includes: Race Relations Act, 1965; Equal Pay Act 1970; Sex Discrimination Act 1975; Disability Discrimination Act 1995; Equalities Act 2010…. Extension to organisational users/customers as well as employees.

Equal opportunities policies

Managing diversity – origins in radical social movements in USA; ‘diversity’ a multiplicity of differences beyond gender and race; concept of diversity adopted and promoted in late 20th century as a response to challenges presented by demographic change

Consolidation: Equal Opportunities under Equality Act 2010

Acknowledgement that some groups in society face discrimination.

Legislation by Government

The Equality Act (2010) brings together the legislation governing all forms of discrimination in the workplace and established the right of everyone ‘to be treated fairly’ and ‘in exactly the same way’ (CIPD, 2017)

Fair access, treatment and promotion (orgs)

Equal Opps. policies (orgs)

Positive actions encouraged (orgs)

Positive discrimination illegal

Scope of legislation:

Some areas of discrimination covered by law include

age

disability

gender reassignment

marriage and civil partnership

pregnancy and maternity

race (including ethnic origin, colour, nationality and national origin)

religion or belief (including philosophical belief)

sex

sexual orientation

The equal opportunities approach

Concern of social justice and equality in line with the humanistic tradition of HRM

Employers’ responsibility to ensure legal compliance and counter discrimination

‘Equality proofing’ of organisational policies and practices – e.g. in recruitment and selection

Targeted groups and positive action (e.g. Police Force).

Managing Diversity

‘The basic concept of managing diversity accepts that the workforce consists of a diverse population of people. The diversity consists of visible and non-visible differences which will include factors such as sex, age, background, race, disability, personality and workstyle. It is founded on the premise that harnessing these differences will create a productive environment in which everybody feels valued, where their talents are being fully utilised and in which organisational goals are met’. (Kandola & Fullerton, 1998)

The “Managing Diversity” approach

Link with a more strategic model of HRM

Intended to engage and interest everyone (particularly managers) in promoting organisational inclusion and equality

Focus on individual, rather than group, differences.

Encompass all the ways that people differ, not just those associated with discrimination and disadvantage

Push the centrality of the ‘business case’ – economic, rather than moral, rationale for diversity

Current context

References to equality or diversity may create competing discourses

Distraction of working towards a target > tokenism?

Processes for achieving equality/diversity

Equality agendas:

Equal chance

Equal access to (all) opportunities

Equal mechanisms to progress

The short versus the long agenda

Human Capital agendas:

As above but beyond compliance with law) they may be fragile, and influenced by commercial expedience.

Positive Action for achieving equality/diversity

Encourage applicants from an under-represented group to apply for roles

Encourage applicants from an under-represented group to take training and development opportunities which will increase access to roles

Build mentoring schemes inside firms.

Links with HRM

Social justice

Humanistic traditions of HRM

Commitment

Transcends legal compliance

Human capital

Economic expediency

Driven by business interests

Concerned with maximising efficiency

Alignment with HR strategy

Recruitment and selection

Appraisal and reward

Training and development

Culture change

How realistic is a strategic approach to equality?

Key elements of the business case

Enables organisations to recruit employees from the widest pool of talent

Diversity is linked in some studies with greater creativity and innovation and superior performance

People are more engaged in organisations with a diverse set of employees

Enables organisations to recruit employees from the widest pool of talent …

Neurodiversity

Movement to work

Older employees

Ex convicts?

People are more engaged in organisations which encourage a diverse set of employees

Culture

Networks

Safe environments where people can be authentic and self-actualised

Stonewall, 2010

Employee engagement

Stonewall (2010) ‘concealing sexual orientation at work reduces productivity by up to 30%’

Catalyst (2009) LGBT employees in organisations with networks, resource groups and/or mentoring programmes are 7% to 16% higher in their workplace experience scores.

Managing Diversity

What do you think the figures are in terms of women and ethnic minorities in the workplace?

Continued under-representation of women and ethnic minorities…

Gender split in the UK workplace is now around parity.

However in the board room there is still a gender imbalance (circa 33% women to 77% men) ( www.gov.uk, 2020)

Over half of FTSE 100 firms have no ethnic minorities on their boards at all and they occupy 2% of the positions overall (City AM 2017).

Male BAMEs 6% and female BAMEs 3.8% of FTSE100’s board roles (DiversityQ, 2020)

Pay discrepancy: https://www.theguardian.com/uk-news/2018/mar/10/top-paid-men-women-gender-gap

Managing cultural diversity

Impact of globalisation, increased movement of people and internationalisation of business

Focus on ‘culture’ as a key dimension of difference

Emergence of cross-cultural management as a distinctive field of theory and practice

Key theorists include: Hofstede, Trompenaars, Hall…

Selected references

CIPD (2018) Diversity and Inclusion at Work. Facing up to the Business Case

Accessed 13/03/19 at CIPD website

Cockburn, C. (1989) ‘Equal opportunities – the short and long agenda’ Industrial Relations Journal 20/3 213-25

French, R. (2015) Cross-Cultural Management in Work Organisations (3rd edition) London: CIPD

Kirton, Gill, and Anne-Marie Greene. The Dynamics of Managing Diversity : A critical approach, Taylor & Francis Group, 2015. ProQuest Ebook Central, https://ebookcentral.proquest.com/lib/londonmet/detail.action?docID=2126963.

Noon, M. (2007) ‘The fatal flaws of diversity and the business case for ethnic minorities’ Work Employment and Society 21/4 773-84

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Breakthrough Leadership Skills MN7028

Topic 3: Transformational Leadership – Harnessing Motivation

Learning Outcomes

Situating Transformational Leadership

Organisational culture and the implications for leadership and management.

To examine the main sources of power in organisational settings and the methods by which power and resources can be enhanced to increase effectiveness in such contexts.

To analyse authority, power and politics as sources of control.

To clarify any queries related to assessments

‘Transforming leadership’ (Gregor Burns 1978)

View of the leader as a transformer (visionary) and as a motivator rather than simply as a transactor (day to day operations) (Burns, 1978; Peters and Waterman, 2004)

‘leadership builds on man’s need for meaning’ (Peters and Waterman, 2004, p.82)

‘leadership creates institutional purpose’ (ibid)

Has a moral component in that it transcends personal interests of leader and meets those of others

‘Transforming leadership’ contrasted with power

Leadership is exercised when leaders ‘arouse, engage and satisfy the motives of followers’ (Burns cited in Peters and Waterman, 2004)

‘Leadership, unlike naked power wielding, is thus inseparable from followers’ needs and goals’ (ibid)

Power bases therefore become ‘mutual support for common purpose’

Transforming people ‘from neutral, technical units into participants who have a particular stamp, sensitivity and commitment’ (Selznick, 1957)

‘reworking of human and technological materials to fashion an organism that embodies new and enduring values’ (ibid)

The ‘dynamic’ outcomes from transformational leadership (contrasted with power)

‘Transforming leadership is dynamic leadership in the sense that the leaders throw themselves into a relationship with “followers” who will feel “elevated” by it and often become more active themselves, thereby creating new cadres of leaders’ (Peters and Waterman, 2004, p.83)

What values?

Peters and Waterman, 2004 offer some examples from business:

‘beauty in a hamburger bun’ (Ray Kroc. McDonalds)

‘48 hours parts service anywhere in the world’ (Caterpillar)

However a more critical challenge of the leader is to ensure that the vision is enacted/lived by employees and that such values are indeed transforming the organisation.

Problems of over-simplifying definition of culture

The ‘Excellence’ school (Peters and Waterman, 1981) certainly popularised the notion of culture and Marvin Bower (also CEO of McKinsey) coined perhaps the most famous definition of culture as ‘the way we do things around here’.

Yet Schein (1992) distinguishes different depths to the concept: ‘a pattern of shared basic assumptions (that the group learned as it solved its problem of external adaptation and internal integration)’

https://www.youtube.com/watch?v=gPqz315HSdg

Organisational Culture: What are your perceptions about/definitions of culture? 10 Minute discussion

Definitions: Culture as cohesive (“glue”)

Culture is ‘how things are done around here’. (Drennan, 1992:3 after Bower)

Culture…is a pattern of beliefs and expectations shared by the organization’s members. These beliefs and expectations produce norms and powerfully shape the behaviour of individuals and groups in the organization. (Schwartz and Davis, 1981:33)

By culture I mean the shared beliefs top managers have about how they should manage themselves and other employees, and how they should conduct business(es) (Lorsch, 1986: 95)

Mintzberg et al: ‘tissue’

Definitions: Culture as Constraining (“glue”!)

Culture represents an interdependent set of values and ways of behaving that are common in a community and that tend to perpetuate themselves, sometimes over long periods of time. (Kotter and Hesketh, 1992:141)

Because…

Common values and beliefs which can increase ‘the level of inertia and breed similarities in “strategic postures” (Abrahamson and Fombrum, 1994, cited in Mintzberg et al, 2005)

This Photo by Unknown Author is licensed under CC BY-NC-ND

Value of culture in HR terms

Alvesson talks about some other common metaphors for change:

As a “regulator”: i.e. an unwritten element of company policy, which influences and directs aspects such recruitment/rewards

As a “compass”: helping to draw attention to the values, behaviours which are “right” for the organisation

As “glue”: encourages teamwork, cohesion.

Challenges of culture in HR terms

As “glue” again: but this time inhibiting necessary change

As “blinkers” but also may blinker people to new ideas (Leonard Barton talks of ‘core rigidities’).

Culture as a mechanism for leadership

Cultural ‘schools’ of strategic management (Mintzberg et al, 2005)

Mintzberg et all (2005) describe a number of schools of strategy including the Cultural School. Within the Cultural school are two perspectives which reflect a strong human relations orientation:

The ‘Excellence’ school (Peters and Waterman, 1981)

Resource based View of the Firm (Wernerfelt 1984 and Barney (1991)

Drucker said ‘culture eats strategy for breakfast’. What do you think he meant by that?

Culture and Performance

The ‘excellence’ school (Peters and Waterman, 1985). Developed a blueprint for high performing organisations, which consisted of 8 ‘attributes’ shared by their ‘excellent’ organisations:

Bias for action

Close to the customer

Autonomy and entrepreneurship

Productivity through people

Hands on/value driven

Stick to the knitting

Simple form/lean staff

Loose-tight properties

Culture and Performance?

Culture may be easily “linked” to superior performance (e.g. Peters and Waterman, 2004)

But there is an issue about causality

Compare with the ‘black box’ relating to contribution of HR to performance (e.g. Purcell et al, 2003)

Compare with the challenge of “proving” value of Employee Engagement (what comes first?)

What has happened to many of the organisations studied by Peters and Waterman?

Depths of Culture

Artefacts: ‘the visible products of the group … That one sees, hears, feels’

Espoused beliefs and values: e.g. “our customers come first”, “innovation drives our business”

Basic Underlying assumptions: e.g. engineers do not deliberately design a product that is unsafe

(Schein, 2004)

Matching up the artefacts, the espoused values and the behaviours

Schein (1992) distinguishes in the video between the artefacts, the espoused values and the behaviours/assumptions of the members of a firm

Northern Rock ‘Mission Statement’ from 2006

‘superior value to customers .. through excellent products, efficiency and growth’ (2006 Annual Accounts)

RBS Values: https://www.rbs.com/rbs/about/our-values.html Accessed 24/10/17

‘we want to be trusted, respected and valued by our customers, shareholders and communities’

Compare with the notion of ‘due diligence light’ (2011) which was applied to the acquisition of ABN AMRO Bank

Challenges with/critiques of organisational culture

You cannot just “implement” culture or culture change. It takes time.

Paradoxically it is fragile and easy to destroy (e.g. at the whim of a new CEO)

One critique of the culture school is that it renders firms vulnerable to change and indeed many of the firms identified in Peters and Waterman’s classic text have since struggled or gone out of business.

Why?

It can discourage necessary change because the ‘common values and beliefs’ embedded in people also ‘increase their levels of inertia and breed similarities in “strategic postures” (Abrahamson and Fombrun, 1994, cited in Mintzberg et al, 2005)

It is inwardly focussed (‘inside-out’) and explains ‘too easily what already exists, rather than tacking the tough questions of what can come into being’ (Mintzberg et al, 2005). So it is valuable for HRM but is it valuable for strategic HRM?

Other notions of values

In 2016, financial and insurance services contributed £124.2 billion in gross value added (GVA) to the UK economy, 7.2% of the UK’s total GVA. London accounted for 51% of the total financial and insurance sector GVA in the UK in 2015. There are over one million jobs in the financial and insurance sector (3.1% of all UK jobs). The UK had a surplus of over £60 billion on trade in the financial and insurance sectors in 2016. In 2015-16, the banking sector alone contributed £24.4 billion to UK tax receipts in corporation tax, income tax, national insurance and through the bank levy.

Commons Briefing papers SN06193

Author: Gloria Tyler

Topics: Economic situation, Financial services

http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN06193

Accessed 24/10/17

Power

‘Power lies in the acceptance of your authority by others – their knowledge that if they try to resist you, they will fail and you will succeed.’ Jay, A. (1967)

‘Power is the capacity to impress the dominance of one’s goals or values on others.’ (Armstrong, 2001)

Sources of Power

Reward – being able to give the other what he or she wants

Coercive – forcing him or her to do it

Referent – having desirable attributes that make people wish to refer to the leader

Legitimate – as opposed to illegitimate in the eyes of the followers

Expert – having an expertise that others want to use.

French and Raven (1958)

Informational – (added in 1965)

Sources of Power (2)

Source of Power	Referred to as:
Ability to apply sanctions Status and formal position Ability to give valued resources Superior knowledge & experience Personal relationships: charisma Access to inside information	Coercive Legitimate Reward Expert Relationship Connection

Authority is… (1)

Definitions:

The power or right to enforce obedience (Oxford English Dictionary);

Power made legitimate by position or expertise (Weightman, 2004)

Authority is… (2)

Distinctions:

In authority – relies on control over resources to influence people; it confers the right to control and judge the actions of others

An authority – based on personal attributes, credibility or ability to influence people; it is the basis of credibility that you must earn and maintain for yourself

Moral authority – based upon equity, ethics and fairness

Authority to act

Authority to authorise

Legitimacy of power?

Not all power is legitimate

“persuasion” of the Mafia

Gotti and Machiavelli

Some Theories of Power relevant to HR

Culture as power: ‘it’s the way we do things around here’ (Bowers).

‘the greatest conceivable power lies in the possibility to preform somebody in such a way that, of his own accord, he does what one wants him to do, without any need for domination … or for explicit power’ (Castoriadis, 1992 in Alvesson, 2002)

Clegg (1987) states that ‘the most important kinds of power’ consist of ‘those occcasions when A’s didn’t have to get B’s to do things because B’s would do those sort of things anyway.

Power/dependence theory (Emerson, 1962)

Social Exchange theory (Blau, 1964)

Some Theories of Power relevant to HR contd:

Persuasion is more effective than exercise of power through coercion

Power/dependence theory (Emerson, 1962)

Social Exchange theory (Blau, 1964)

Gaining and Retaining Power

“Generally dominance is manifested not in significant political acts but rather in the day to day taken for granted nature of organizational life. As such the exercise of power and domination exists at routine level, further protecting certain interests and allowing the order of organizational life to go largely unquestioned by its members” (Deetz and Mumby, 1986 in Alvesson, 2004)

Empowerment

Empowerment is a concept whereby employees at all levels are responsible for their actions and should be given authority to make decisions about their own work.

It concerns the ownership of problem and solution

Empowerment requires training for employees and their managers – previous managers need to give up some of their power.

Power and Politics

Political behaviour in organisations has been described as ‘a process, that of influencing individuals and groups of people to get your own point of view, where you cannot rely on authority’ (Kakabadse, 1983)

Playing Politics

Power is a property of all organisations – politics reflects how power is put into action

Ethical or unethical behaviour?

Ends versus means?

The nature of competition

Control versus Participation

Scientific management – control

Continuum of behaviour depending on control of leader over the led

Unitarist and pluralist perspectives

Tells, sells, consults, joins

Selected reference list (online options in red)

Alvesson, M. (2002) Understanding Organizational Culture. London: Sage

CIPD (2014) ‘Keeping culture, purpose and values at the heart of your SME’

Collins, J. (1995) ‘Building Companies to Last’. Available at ‘https://www.jimcollins.com/article_topics/articles/building-companies.html

Emerson, R.E. (1962) ‘Power-Dependence Relations’, American Sociological Review, vol. 27, pp. 31-41.

French, J and Raven, B (1958) ‘The Bases of Social Power’ in Cartwright, D. (ed.) Studies in Social Power, Ann Arbor, Mich: University of Michigan Press.

Hofstede, G. (1990) ‘The Cultural Relativity of Organizational Practices and Theories’, in Wilson, D.C. & Rosenfield, R.H. (eds.), Managing Organizations: Text, Readings and Cases, London: McGraw-Hill.

Peters, T. and Waterman, R.H. (2004) In Search of Excellence: Lessons from America’s Best-Run Companies, Exmouth: Profile

Schein, E.H. (1985) Organizational Culture and Leadership: A Dynamic View, San Francisco, CA: Jossey-Bass

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Breakthrough Leadership Skills MN7028

Topic 8: Interpersonal Communication

Learning Outcomes

To understand communications channels and barriers to effective communications.

To explore some of the particular challnges of cross cultural business communication.

To consider the importance of influence, persuasion, assertiveness and negotiating in communicating with others.

To examine the sources and nature of conflict within organisations.

To describe the importance of networking within and between organisations.

The Communication Process

An interpersonal process of sending and receiving symbols with messages attached to them.

The exchange of messages between people for the purpose of achieving common meanings (Guirdham, 1995)

Communication is effective when the intended meaning of the sender is identical to the interpreted meaning of the receiver.

The Interactive Process of Interpersonal Communication

‘Noise’: Distortions in the Communication Process

Poor written or oral expression.

Failure to recognize nonverbal signals.

Physical distractions.

Status effects.

Using the wrong “channel”

Typical applications for Written versus Face to Face communication

Written channels work best when:

Messages are simple and easy to convey.

Require extensive dissemination quickly.

Convey formal policy or authoritative directives.

Spoken channels work best for messages that:

Are complex or difficult to convey where immediate feedback is needed.

Attempt to create a supportive, even inspirational, climate.

One Way and Two Way Communication

One way

Fast

Looks efficient but often inaccurate

Needs planning

Less threatening to the sender

Receiver can feel frustrated

Guirdham, 1995

Two way

Slow

Looks inefficient but often more accurate

Planning is less essential

Sender is more vulnerable

Receiver more likely to feel confident

Richness

Channel richness is the capacity of a communication channel to carry information in an effective manner.

Low channel richness is impersonal, one-way, and fast.

High channel richness is personal, two-way, and slow.

Managers need to choose a channel with the appropriate richness for the communication.

Communication Media: Examples of Media Richness

Face-to-face dialogue *

Videoconference *

Telephone conversation *

* Voice mail

* E-mail

* Informal letters/memos

* Organization’s own videos

* Formal written documents

* Formal numerical documents

Single

Multiple

Fast

Slow

Speed of

Personalized Feedback

Cues and Language

* Organization’s Web site

Some other causes of noise in communication

Hearing what we expect to hear

Perceptions about the communicator (status/non-verbal)

Influence of own reference group

Different meanings (cultural or semantic)

Emotional context

Organisational size

Overcoming Communications Barriers

Adjusting to the world of the receiver (put yourself in their shoes if you can)

Using feedback

Using reinforcement

Using direct, simple language

Reinforcing words with actions

Using multiple channels

Reducing problems of size

Vertical (one way) communication in Organisations

Common in traditional (more hierarchical) organisations.

Delivers organisational efficiencies (can be done in volume and with weight of authority)

Top down but may be too blunt a vehicle for the message and sometimes polyphasic (so slow and/or unpredictable to reach conclusion)

Impersonal

Other issues with Vertical (one way) communication

Interpretive perspective of communication

Employees may react differently to the same messages

Language and symbols used to create and shape peoples social realities

Communication is not a linear process – many variables affecting process

Organisational members capture complex experiences that are a combination of sense, emotion, reason and imagination using narration and story telling to impart meaning

Communications Media

Written systems

These include reports, magazines, newsletters, bulletins,

New technologies for communication

Informational databases, electronic mail systems, voice mail systems, cellular/smart phone systems

Text

Communication Technologies and Behaviour in “busy” contexts

Communication can become more impersonal

Interpersonal skills may diminish – less tactful, less graciousness

Non-verbal cues lacking

Altered social context

Information overload – email?

Email -encourages polyphasic activity

Communicating across cultures

“Communication is only possible between people who to some extent share the same system of meaning” (Trompenaars and Hampden-Turner, 1997)

“It is possible to know the language, and even have in one’s possession adequate translations, without grasping the meaning of what is being said and done” (Much, 1995)

Culture and communications

Language and communication issues are intertwined with cultural differences

Culture represents shared ways of life and understanding, thus culture is itself a process of communication

Culture is reflected in language, but language is not necessarily tied to a specific culture e.g. versions of English

Interconnections of language and culture – Japanese language ‘too polite’ and decision made to use English as language of key meetings and documents at Nissan (FT 5th May 2001)

Language issues

The significance of language is a relatively neglected area in the study of MNCs …

Language a barrier, resource or source of power

Important role of ‘language mediators’

Importance of language fluency for career progression

Competence may be masked behind language barrier

Different levels of language competence – ‘proportional facility’

Cognitive strain

Vaara et al (2005): case study of a cross-border merger between Finnish and Swedish banks

Swedish was originally chosen as the ‘senior management language’ of the new company

Interpreted by Finnish speakers as sign of Swedish dominance, placed them at linguistic disadvantage

Language training was limited to those in daily contact with Swedes

Situation further complicated by the existence of two versions of Swedish

Efforts by Swedes to learn some Finnish symbolically important and appreciated by Finns

Corporate language changed to English…

Model of cross-cultural communication (from Haworth and Savage, 1995)

Area of common understanding

Person from culture A

Person from culture B

Phenomenal

Field

Phenomenal

Field

Dynamics of cross-cultural communications

Explicit/implicit messages (sender)

Apprehended/inferred messages (receiver)

Speech pragmatics or characteristic communication patterns – including conventions and rituals (e.g. greetings), jokes, emotional expression, tolerance of silences, pace or ‘music’ of speech

High & low context communication

Context: information that surrounds an event

High context communication

Assumes the listener is already ‘contextualised’ ; reliance on the overall situation to interpret messages

The explicit messages can be elliptical

Low context communication

Relying more on the explicit verbal content of messages; context less important than content

Associated with more accessible, fluid, cultural environments

Hall, E. (1976)

Communicating between High and Low context environments

In low context environments, communicators tend to:

Avoid ambiguity

Come to the point quickly

Fill silences where possible

In high context environments, communicators tend to:

Talk indirectly (and so may be ambiguous to outsiders)

Use silence to convey a range of meaning.

Different principles underpinning management feedback

Down-graders, understatement, hedgers (UK?)

Upgraders (Germany?)

Directness (NL?)

Sparing with compliments (Fra?)

Confidentiality (Asia)

Active Listening

The process of taking action to help someone say exactly what he or she really means Understand the feeling and respond to this – patience/simple acceptance.

Focus on the content and avoid making judgements

Understand the feeling and respond to this

Paraphrase and restate the message

Don’t interrupt

Don’t question the facts

Listen to what isn’t said –note all cues, verbal and non-verbal

Selected references

Brannen, M.Y., Piekkari, R. and Tietze, S. (2014) ‘The multifaceted role of language in international business: Unpacking the forms, functions and features of a critical challenge to MNC theory and performance’ Journal of International Business Studies 45, 495–507

Guirdham, M. (1996) Interpersonal Skills, Hemel Hempstead: Prentice Hall.

Hall, E. (1976) Beyond Culture. New York: Doubleday

Harzing, A-W and Feely, A. (2008) ‘The language barrier and its implications for HQ-subsidiary relationships’ Cross-cultural Management 15/1 49-61

Meyer, E. (2015) The Culture Map. New York: Public Affairs

Thomas, K.W., 1974. Thomas-Kilmann conflict mode survey. Tuxedo, NY: Xicom.

Vaara, E., Tienari, J., Piekkari, R. and Santti, R. (2005) ‘Language and the circuits of power in a merging multi-national corporation’ Journal of Management Studies 42/3 595-623

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Breakthrough Leadership Skills MN7028 Topic 9: Coaching 1

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Aims & Objectives 2

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The Vision accessible through the medium of coaching “What lies behind you and what lies in front of you, pales in comparison to what lies inside of you” Ralph Waldo Emerson 3

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Definition: What is Coaching? “ Coaching could be seen as a human development process that involves structured, focused interaction and the use of appropriate strategies, tools, techniques to promote desirable and sustainable change for the benefit of coachee and potentially for other stakeholders.” (Cox E., Bachkirova .,Clutterbuck D., (2011) The Complete Handbook of Coaching, p1)

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Coaching "Coaching is unlocking a person’s potential to maximise their own performance. It is helping them learn rather than teaching them" Whitmore, J., Coaching For Performance, (2004) 3rd edition published by Nicolas Brealey Publishing ISBN: 1-85788-303-9. In quoting this he is referring to the original writing of Timothy Gallway in the Inner Game Of Tennis in which he takes what was seen by many as a ground breaking approach to improving performance i.e. the individual’s internal obstacles are often more daunting than external ones, therefore what is more important is the individual’s own learning, rather than teaching from an external source. The (Inner Game of Tennis by W.Timothy Gallwey (Paperback – 5 Sep 1986) ISBN: 978-0330295130

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Coaching Coaching is recognised as a powerful vehicle for increasing performance, achieving results and optimizing personal effectiveness (Cox E., Bachkirova.,Clutterbuck D., (2011) The Complete Handbook of Coaching, p211) 6

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Key issues when Coaching Coaching is not Counselling (you are not qualified!) Ethical practice : as it uses psychology: Role of Power and Influence Coaching relationship is key : Have clear boundaries/ parameters: Coach – not the expert Coachee is always in control and decides which topic and action to take and when Coach is facilitator- Must be objective – Removes their own opinions/ideas/limitations/ bias/prejudice from coaching session – it’s not about the coach, so avoid it becoming ego-based Clarity – be clear on what can be achieved in 1 session /X number of sessions. Usually short term. However CEO’s often have regular coaching sessions

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8 Coaching requires : Emotional Intelligence The ability to monitor one's own and others' feelings and emotions, to discriminate among them and to use this information to guide one's thinking and actions. According to John D. Mayer and Peter Salovey , two of the leading researchers on the topic, emotional intelligence (EI) Coaching People Skills Motivating others. Interacting with peers, employees, clients, superiors

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Some categories of coaching 9

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Coaching Relationship Model (5 elements of successful and effective coaching) Coachee Coach Beliefs/ experience/ background Organisation/ Environment/ Stakeholders Setting ethical standards (Cox E., Bachkirova .,Clutterbuck D., (2011) The Complete Handbook of Coaching,) RELATIONAL

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Which COACHING STYLE? 11

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CORE Coaching Skills:

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13 Coaching Checklist: Build Rapport: Are you the right ‘fit’ as a coaching team? You can only coach someone who A) Wants to be coached and B ) Gives permission to be coached so check they really want to be coached Use Listening / Questioning Create Empathy ( not sympathy) to Empower Disclosures : Legal requirements Let the Coachee lead – they are in control – ALWAYS This is about them – not you The Coachee can change goal/ end coaching relationship Ask before you Challenge – calmly, respectfully. E.g may I challenge you on that? With your permission.. Always get permission before progressing You can end coaching relationship if coaching is not being effective or you are uncomfortable

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14 (T-)GROW Model Sir John Whitmore from his classic coaching book, "Coaching for Performance."

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Considered best practice by successful coaches It was advocated by Sir John Whitmore in his classic coaching book, "Coaching for Performance.“ You will practice using this model for your coaching role play The T- GROW model presents a way of identifying an issue, working on the issue and finding a way forward. It stands for… 15 What is the (T-)Grow model?

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TOPIC The topic is actually the starting point. The client sets the topic and has full control of session. Be clear what you can and cannot ‘coach’ someone on, i.e. coaching is not counselling. The GROW model is the T-GROW model. Before you find the goal, establish the topic. This can relate to the longer term coaching goals that the client is working on. Be clear on this before moving onto the next stage. The topic will give the overall context to the coaching. 16

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The Model 17

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Reality 19

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Reality Activity – do a “Reality Check” on where you are with regard to the goal you have just identified. Where are you currently with it? Is your goal “realistic”? What evidence is there that you can achieve it? 20

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Options 21

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Options Activity – think of as many options as you can for your coaching topic – even/ especially outrageous ones! what is available for you to do? Now? In a month? – write down 10 options 22

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The Wrap-up 23

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It’s not linear 24

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Coaching Issues Coaching is not Counselling Ethical practice: as it uses psychology Have clear parameters: Role of Power and Influence Coach – not the expert Coachee is always in control and decides which topic and action to take when Coach is facilitator- Remove your own opinions/ideas/limitations/ bias/ prejudice from coaching session – it’s not about you! Can become ego-based Clarity – be clear on what can be achieved in 1 session / number of sessions. Usually short term however CEO’s often have regular coaching sessions

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Coaching Activity: 45 Mins Now, in trios you are going to do a role-play scenario Coach – Coachee – Observer (15 mins each) Use the T-GROW model to see how well you can coach your colleague Take turns to coach each other The Observer will give feedback to both – using the feedback improve your skills Write down what you learn to feedback in main group

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Coaching Reflections 27

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Relevant Reading: Carnegie, D. (2007) How to Win Friends and Influence People, Vermilion Clutterbuck, D. Megginson, D. (2009) Further Techniques for Coaching and Mentoring, Butterworth Heinemann Covey, R, S. (2004) The 7 Habits of Highly Effective People, Simon & Schuster Cox E., Bachkirova T., Clutterbuck D., (2011)The Complete Handbook of Coaching Downey, M. (2003) Effective Coaching Lessons from the Coach’s Coach, Texere Fitzgerald, C and Garvey Berger, J. (2002) Executive Coaching: Practices and Perspectives, Davies- Black Garvey, R.Stokes P and Megginson D. (2012) Coaching and Mentoring: Theory and Practice 28

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Relevant Reading (contd.): Gallwey, T. (1986)The Inner Game of Tennis, Pan Books Gallwey, T. (2000)The Inner Game of Work, Pan Books Harvard Business Essentials, (2004) Coaching and Mentoring, How to Develop Top Talent and Achieve O’Connor, J. (2004) Coaching with NLP: How to be a Master Coach, Element Stronger Performance, Harvard Business School Press Whitmore, J. (2009) Coaching for Performance, 4th Ed. Nicholas Brealey Publishing Whitworth, L. Kimsey House K. and Kimsey House, H. (2004) Co-Active Coaching, Changing business; Transforming Lives, 4th Ed. Nicholas Brealey Publishing; 29

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Introduction to the practice of coaching and the theoretical frameworks which underpin coaching and practice: T-GROW Model Coaching as part of Leadership ‘Toolkit’. It is also a Leadership approach To provide an overview of the principles and practices of business coaching To develop key coaching skills to use in the workplace Coaching in Practice: Learn to coach and be coached in an ethical and respectful manner

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Sports coaching Life coaching Executive Leadership coaching Neuro -linguistic Programming (NLP) Coaching

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Sports coaching Life coaching Executive Leadership coaching Neuro -linguistic Programming (NLP) Coaching

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DIRECTIVE? Experienced coach NON-DIRECTIVE? More explorative

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DIRECTIVE? Experienced coach NON-DIRECTIVE? More explorative

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Behavioural Approach LISTENING 1950 – 1970 EMPATHY REFRAMING: CREATE SHIFT FROM FAILURE TO SUCCESS QUESTIONING

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LISTENING Behavioural Approach QUESTIONING 1950 – 1970 EMPATHY REFRAMING: CREATE SHIFT FROM FAILURE TO SUCCESS

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G- oal – what is the goal? R – eality What’s the reality? O- ptions What options? W-rap up the session/ Way forward.

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G- oal – what is the goal? R – eality What’s the reality? O- ptions What options? W-rap up the session/ Way forward.

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Goal Goal definition is essential – it needs specifics/ clarity / detail/ timing – can relate to SMART objectives ACTIVITY : Write a goal for yourself now e.g. presentation skills

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Goal definition is essential – it needs specifics/ clarity / detail/ timing – can relate to SMART objectives ACTIVITY : Write a goal for yourself now e.g. presentation skills Goal

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The R of the Grow model stands for REALITY. Before you can achieve your goal. You first need to know where you are. In NLP 'reality' is referred to as the 'present state’. The job of the coach is to ask clarifying questions. Don't judge, don't try to fix. Focus is on the where the coachees see themselves. The purpose is to become clear of the starting point.

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Once you know where you are – i.e. REALITY- then consider the OPTIONS. Client must be really be open to possibilities Expand ideas – V Imp often need to challenge client – respectfully EXPLORE – Find out what is available for the client to do – ALL possibilities Identify ALL key options to be actioned Client COMMITS to taking specific action on specific date – must be written

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Finally the W of the GROW model stands for WRAP-UP . Client agrees on an option and commits to take action Way Forward ACTION- What will the client do/ Commitment is vital/ When?

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Finally the W of the GROW model stands for WRAP-UP . Client agrees on an option and commits to take action Way Forward ACTION- What will the client do/ Commitment is vital/ When?

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The GROW model is not a strictly linear process. You can move around it as you clarify things. It's quite likely that when you get to 'WRAP-UP' you will return to REALITY and/or OPTIONS to move things forward- or even review the Goal

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Reflect on your Coaching What key coaching skills have you learned – what did you find easy/ hard? How might you integrate Coaching into your future leadership?

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Reflect on your Coaching What key coaching skills have you learned – what did you find easy/ hard? How might you integrate Coaching into your future leadership?

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Coaching Catherine Heming Natalie Langley 7 2020-11-30T21:44:35Z 2023-09-27T18:38:57Z

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MN7128 Breakthrough Leadership Skills Topic 6 Working Across Cultures: The Global Context for Leadership

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Learning Outcomes Distinguishing between Emic and Etic perspectives Exploration of landmark work on socio-cultural theories: Hofstede, Trompenaars & Hampden-Turner, Hall, Schwartz Consider some different values underpinning societies. Globe Project Leadership dimensions Managing across cultures (exercise)

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Approaches to exploration of the concept of culture Emic approaches: which investigate phenomena within their specific cultural context (e.g. inside one organisation) Etic approaches: which attempt to generalise theories and concepts to other cultures and examine similarities and differences…

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Some definitions of the concept of culture ‘the way we do things around here’ (Drennan, 1992, after Bower) ‘By culture I mean the shared beliefs top managers have about how they should manage themselves and other employees, and how they should conduct business(es)’ (Lorsch, 1986) ‘the collective programming of the mind that distinguishes the members of one group or category from another’ (Hofstede, 2001)

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Hofstede’s Dimensions of Culture Power distance Individualism/collectivism Masculinity/femininity (or Quantity of Life vs Quality of Life ) Uncertainty avoidance Long term Orientation (Confucian dynamism) Indulgence

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Criticisms of Hofstede Methodology Data Collection Generalisability Unrealistic to think of uniform national cultures

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Power Distance Power distance – the extent to which the members of groups (workplaces/countries) expect and accept power to be distributed unequally

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Uncertainty Avoidance Uncertainty avoidance – the extent to which the members of a culture feel threatened by uncertain or unknown situations or prefer structure

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Individualism/Collectivism Individualism – societies in which ties between individuals are loose – everyone is expected to look after themselves or their immediate family Collectivism – societies in which people from birth onwards are integrated into strong cohesive groups, which throughout people’s lifetime continue to protect them in exchange for unquestioning loyalty

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Masculinity/Femininity Masculinity – societies in which social gender roles are clearly distinct Femininity – societies in which social gender roles overlap

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Confucian dynamism This time dimension or long term orientation (LTO) was added by Hofstede later and was influenced by the work of Hofstede and Bond (1988) in the context of Chinese society.

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Cross country comparisons: www.geerthofstede.com Country comparison tool: https://www.hofstede-insights.com/country-comparison/ Geert Hofstede

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Trompenaars and Hampden-Turner (1993,1997, 2011) Developed database of responses from over 5,000 managers from 50+ countries over 15 years. Their responses are compared along seven dimensions: Universalism/particularism Individualism/communitarianism Affective/neutral Specific/diffuse Achievement/ascription Orientation towards time Internal/external orientation

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High & low context communication Context: information that surrounds an event High context communication Assumes the listener is already ‘contextualised’ ; reliance on the overall situation to interpret messages The explicit messages can be elliptical Low context communication Relying more on the explicit verbal content of messages; context less important than content Associated with more accessible, fluid, cultural environments Hall, E. (1976) Beyond Culture . New York: Doubleday.

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Schwartz (2012) Power Achievement Hedonism Stimulation Self-direction Universalism Benevolence Tradition Conformity Security

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Quality of life? Attitudes to work and employment Working hours, holidays and quality of life Job satisfaction The intensity, direction and duration of employees’ behaviour in relation to organisational goals http://uk.businessinsider.com/happiest-countries-best-quality-life-2016-11

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Cross-country comparisons Long hours and hard work culture: Japan – ‘karoshi’ (death from overwork); reported average working day of over 12 hours; S Koreans averaged 2,316 annual working hours (OECD average 1,768) (WSJ 2010) Japanese on average take 8.8 days annual leave per year (half their allowance) (Guardian 5.10.17) Statutory leave entitlement: paid vacation days (excluding public holidays): Finland, Austria, Denmark 25 days; Russia 20; India 12; Taiwan 7; China 5…. USA no statutory agreement (OECD 2014) According to a 2001 survey job satisfaction levels in S Korea only 14% (compared to Denmark 61%, USA 50%, France 24%….)

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Motivation theories Content theories – include Maslow, Herzberg, McClelland (what motivates…) Process theories – include equity and expectancy theories (how people become motivated…) Questioning the universal application of these theories Hofstede: management by objectives Triandis : horizontal collectivism; Ubuntu in southern Africa Impact of more externally oriented cultures e.g. relevance of expectancy theories in Muslim cultures

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Transactional and transformational leadership (Bass 1997) Transactional leadership – focus on mutual exchange, fulfilling role expectations Transformational leadership – leaders who inspire others with their vision, successfully implement their vision, show personalised concern…. How universally appealing is the transactional model?

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Leadership and culture ‘Leading from the front’: strong, individualised leadership, focus on corporate heroes… favoured in USA, UK, Ireland, Spain but not universally regarded as the ‘best’ Finland and Sweden favour more consensus oriented leadership; common goals more important in Germany; in France leaders regarded more strategic thinkers… Paternalistic model favoured in SE Asian countries – social distance, harmony, humane, personalised relationships (see Aycan et al (2014; chapter 7)

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The Contingency Approach to Leadership ‘Leaders cannot chose their styles at will. They are constrained by the cultural conditions that their followers have come to expect’ (Robbins, 2005) In France they want directive leaders ‘Korean leaders are expected to be paternalistic’ ‘Arab leaders who show kindness or generosity without being asked to do so are seen as weak’ ‘Japanese leaders are expected to be humble and speak infrequently’ (French, 2015) (see French (2015; p.146)

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Different principles underpinning management feedback Down-graders, understatement, hedgers (UK?) Upgraders (Germany?) Directness (NL?) Sparing with compliments (Fra?) Confidentiality (Asia)

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The GLOBE Project G lobal L eadership and O rganizational B ehaviour E ffectiveness project. Started in 1991 and continues today – 17,000 participants from 950 countries and counting (French, 2015)

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GLOBE: CEOs/Leaders were compared on nine cultural dimensions: performance orientation future orientation assertiveness uncertainty avoidance power-distance institutional collectivism family collectivism gender egalitarianism human orientation

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Six leadership attributes (House et al, 2004) Charismatic/value-based Self-protective Autonomous Humane Participative Team-orientated dimension

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Universally positive leadership attributes Attributes that reflected good leadership across all country clusters included trust, integrity, charisma Charismatic/value based dimension Attributes that reflected good leadership across all country clusters included those related to building supportive team Team-orientated dimension

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GLOBE project on leadership – country clusters (House et al, 2004)

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Universally negative leadership attributes Attributes that reflected poor leadership across all country clusters: malevolence, face-saving > Self-protective dimension

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Some cultural variations Nordic and Anglo cluster : emphasise team orientation Southern and East European cluster: diplomacy, face saving, following procedures is more important than in other European countries Leaders in the Middle East should be familial, humble, religiously observant (outside values framework) USA: managers are more confrontational and critical in contrast to Japan where feedback is more indirect People in cultures which have low tolerance for ambiguity and risk taking (e.g. Japan), prefer major decisions to be taken by their leaders Those in cultures with a higher tolerance for ambiguity (e.g. US and UK) prefer to participate in decisions Scandura , T. and Dorfman, P (2004) ‘Leadership research in an international and cross-cultural context’ The Leadership Quarterly 15/2, 277-307

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Selected References and some primary sources to explore Browaeys , Marie-Joelle. Understanding Cross-Cultural Management , Pearson Education Limited, 2019. ProQuest Ebook Central , https://ebookcentral.proquest.com/lib/londonmet/detail.action?docID=5742188 Deresky , H. (2017). International management: managing across borders and cultures : text and cases ., pp.223-232 http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=1419482. French, R., 2015. Cross-cultural management in work organisations . Kogan Page Publishers. Globe Project – various publications online at Hofstede, G., Hofstede, G.J. and Minkov, M., 2010. Cultures and organizations: software of the mind: intercultural cooperation and its importance for survival . McGraw-Hill. Meyer, E. (2015). The culture map: decoding how people think, lead, and get things done across cultures . Trompenaars, F. and Hampden-Turner, C. (1999) Riding the Waves of Culture, 2 nd Ed, Nicholas Brealey Publishing: London

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HRM for MBA Students ish Natalie Langley 72 2008-03-12T11:30:39Z 2023-09-21T08:46:59Z

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MN7028: Topic 12 Cross-cultural Negotiations and Trust-building/ Ethics in the context of international business

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Breakthrough Leadership Skills MN7028 Topic 12 : Cross-cultural Negotiations and Trust-building/ Ethics in the context of international business 2

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Session Overview Defining cross-cultural negotiation Negotiation as a staged process Cross-cultural issues at different stages of negotiation Ethics and corporate social responsibility Ethical issues in international business Western theories of ethics Universalism or relativism? Cultural differences in ethics and values – implications for management and international business practice.

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Negotiating Give examples of different situations or contexts in which people engage in negotiations What do these situations have in common? What is the purpose of negotiation?

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Definitions of negotiation ‘An extended communication created in dialogue by two sides’ (Mead 2005) ‘A process of discussion between 2 or more parties with the aim of achieving a satisfactory agreement’ (Tayeb 2003) ‘Requires parties with opposing interests to get together to make a decision’ (Elahee and Brooks 2004)

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Cross-cultural negotiation ‘Discussions of common and conflicting interests between persons of different cultural backgrounds who work to reach an agreement of mutual benefit’ (Chaney and Martins (2004) cited in Zhu et al (2007)) Perceived as more difficult and complex because of differences in language and culture. ‘Promising partnerships fail to get off the ground due to conflicts and misunderstandings during the negotiation process’ (Steers et al, 2010: 321) Literature on cross-cultural negotiation tends to focus on contrasts between ‘Western’ (typically USA) and ‘Eastern’ (typically Chinese or Japanese) styles of negotiating

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Issues in cross-cultural negotiation What are aspects of cultural difference are highlighted in the following video? https://www.youtube.com/watch?v=rSDntIn6ekE

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Cross-cultural factors that impact on negotiations include: Individualism and collectivism High and low power distance High and low context Uncertainty avoidance Polychronic and monochronic Harmony or mastery Specific and diffuse….. Different assumptions about time and the importance of personal relationships are seen as key cultural factors in negotiating…

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Stages of negotiation (Tayeb 2003; Adler 2002) Preparation Non-task sounding Task-related exchange of information Persuasion Concessions and agreement There are different cultural understandings about the degree to which these stages are differentiated and their relative importance.

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Preparation Information gathering (national and cultural context; company information) Where to negotiate, physical arrangements (choice of 3 rd country in Middle East….) Expectations re time needed Who to include in negotiating team, what rank, how many Establishing own priorities, trying to predict others’ priorities

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Non-task sounding stage Focus on relationship and trust building Arab negotiators – greet foreign visitors at airport; invite them to private residence before formal negotiations begin ( Khakhar and Rammal 2013) Business in China is based on interpersonal trust; the importance of ‘old friend’ status and ‘banqueting’ (Miles 2003), in Mexico business relationships are more personalised than in USA ( Elahee and Brooks 2004) Monochronic and low context cultures want to ‘get down to business’… confusion between Chinese and Australian/American negotiators re when to end this stage (Zhu et al 2007)

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Task related exchange of information Parties make their presentation and state their position US negotiators: this stage is straightforward objective process, the aim is to exchange information. Chinese negotiators: ask questions rather than give information, get other party to take initiative and state position (Miles 2003)

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Persuasion Each party tries to persuade the other to give up part of their demands and make concessions: the use of negotiating ‘tactics’ Zhu et al (2007): US/Australian unable to pursue their persuasion strategies because Chinese had not provided them with essential information Arab managers – emphasise personal contacts (‘Wasta’) that can facilitate implementing agreement ( Khakar and Rammall , 2013) Importance of non-verbal cues at this stage (readiness to compromise/agree) Contrasting styles – study of UN Security Council in 1970s revealed USA negotiators made more use of factual/inductive arguments; Syrians used emotional appeal; Russians used ideological arguments…

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Different understandings/assumptions about conflict during negotiation (Lee 1998): Negotiation is a competitive game, involving open confrontation. Conflicts are short term and can be resolved OR: Conflict represents a fundamental threat that is long-term and cannot be resolved. Collectivists – prefer accommodation and avoidance strategies, believe in patience and harmony; individualists are more confrontational. High individualism and high uncertainty avoidance (Eastern and Southern Europe) associated with greater emphasis on rules and regulatory frameworks as a means to resolve conflict.

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Concessions and agreement Collectivist cultures may take longer, need to achieve consensus Concessions may be made throughout process – according to Adler (2008) Russians and Arabs make more extreme initial offers; Russians see concessions as a weakness. Miles (2004) when negotiating with Chinese – expect negotiator to confer with superiors; do not count on signing a contract on particular trip (ideas about time)

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Finalising the negotiation Different understandings of what constitutes a contract – cultures favouring Western-style contracts emphasise the importance of ‘getting it in writing’ as the basis for mutual trust, in contrast cultures favouring oral agreements (typically Chinese and Japanese) see trust as mostly personal ( Usunier , 2013) USA – negotiators assume that agreeing the deal is the end of the negotiating process, whereas in Thailand the process of negotiation goes well beyond this stage (Mead, 2005)

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References Elahee , M and Brooks, C (2004) ‘Trust and negotiation tactics: perceptions about business-to-business negotiations in Mexico’ Journal of Business and International Marketing 19/6 397-404 Khakhar , P and Rammall , H (2013) ‘Culture and business networks: International business negotiations with Arab managers’ International Business Review 22, 578-590 Lee, M (1998) ‘Understandings of conflict: a cross-cultural investigation’ Personnel Review 27/3, 227-242 Miles, M (2003) ‘Negotiating with the Chinese: lessons from the field’ Journal of Applied Behavioural Science 39/4, 453-472 Usunier , J-C (2013) ‘International negotiations’ in Chanlat et al (eds) Cross-cultural Management, Routledge Zhu, Y., McKenna, B. and Sun, Z (2007) ‘Negotiating with Chinese: success of initial meetings is the key’ Cross Cultural Management 14/2, 354-364

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Ethics and values in international business

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Overview Ethics and corporate social responsibility Ethical issues in international business Western theories of ethics Universalism or relativism? Cultural differences in ethics and values – implications for management and international business practice.

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Ethics and business in western society The Protestant ethic Free market economics: ‘There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud’ (Friedman 1970: 6) Increasing recognition of the social impact of business Stakeholders and interest groups Moral capital, mission statements and ethical codes

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Examples…. https://corporate.primark.com/en-gb/a/primark-cares/our-approach https://www.ikea.com/gb/en/this-is-ikea/sustainable-everyday/

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Ethics and international business Class discussion: Examples of issues?

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Are there universal rules which can/should be applied to ethical dealings? Deontological perspectives: things are good or bad. Murder? Kant’s categorical imperatives. Consequential perspectives: focussing instead on the effects and results of actions. Whose murder? Bentham and Mill utilitarianism

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Bribery and corruption ‘Corruption is rife and getting worse in high-growth export markets promoted by the Foreign Office and Downing Street’ (The Guardian 28.8.12) Countries with highest perceived levels of public sector corruption: Somalia, S Sudan, N Korea, Syria, Yemen, Sudan… Countries with lowest perceived levels…: Finland, Sweden, Switzerland, Norway, Singapore… https://www.transparency.org/news/feature/corruption_perceptions_index_2016 (accessed 09/12/20)

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The basis of moral behaviour….. Influence of religious laws and beliefs Behaviours: specific and diffuse (Trompenaars) Whistle-blowing: Purity or loyalty ( Chanlat et al, 2013, p.169)

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Contextualism in Japanese business (Taka 1998) The belief in the importance of social context (stemming from Confucianism): 'external' rather than 'internal’ Positive influences include: Consensus and avoidance of conflict Respect for seniors Respect for employees – lifetime employment Shareholders should not intervene Companies refrain from excessive competition and … Some act against exposure of corruption – in 1980s, employees of Green Cross Corporation did not raise concerns relating to unsafe blood products

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Universalism vs Relativism Universalism: belief in a set of universally applicable ethical principles Relativism: ethical principles cannot be applied universally Parochialism and ethnocentrism – tendency to see one’s own culture as morally superior People within the same society do not all share the same values and moral beliefs

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Ethics values and cultural difference Implications of… Individualism or communitarianism High and low context – giving and receiving gifts Inner – outer direction (contextualism)

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Exposure of corporate fraud at Olympus April 2011: appointment of Michael Woodford as first foreign president of Olympus Later that year he was fired for ‘failing to adapt to Japanese corporate culture’ But Michael Woodford claimed he was fired for initiating investigation into corporate fraud going back to late1980s Cultural factors that Woodford argued undermine Japan’s strengths include ‘tribalism’, misplaced loyalty and self-reinforcing networks amongst managers…. Pilling, D (2012) ‘A gaijin blows the whistle’ FT 28 November

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Different perspectives on gift giving: ethics at Citicorp (from Schneider and Barsoux , 2002) After successfully completing a complex deal for a Japanese client, he presents you with an expensive vase to express his appreciation. Although accepting a gift of such value is clearly against Citicorp policy returning it would insult your client. Would you: return the vase [..] explaining tactfully that it’s against Citicorp policy to accept gifts accept the gift because you can’t risk insulting an important client accept the gift on behalf of Citicorp… display it in a public area accept the gift and use it as a reward for an employee who displays service excellence? style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y style.visibility ppt_x ppt_y

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Universal ethical standards? Guirdham proposes charting a route to an ‘ethical minimum’, agreed by partners from the different cultures involved in a process of concensus -building (see French, 2015, p.246) Schneider and Barsoux (2003) identify three components which might serve to underpin universal standards: Honesty Integrity Protection of stakeholders

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Dealing with dilemmas? Kohls et al (1999) gathered data from (mainly) US students asking them how they would deal with a situation where the other party had breached their own standards: Avoiding Forcing Educating Negotiating Accommodating Collaborating Adoption of one of the above may be influenced by these factors: Moral significance (actual significance to the host culture and how common it is) Power (evenly distributed or is there dependency?) Urgency (is there time to discuss/negotiate?)

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Ethics, values and cultural differences? Ethics are defined as ‘ a set of moral principles : a theory or system of moral values’. They are ‘ the principles of conduct governing an individual or a group’ (Merriam-Webster Online) Or as the ‘social organising of morality’ (Clegg et al, 2007) Try to consider how your moral principles might be influenced and moulded by, for example: Individualism/Collectivism High/Low Context Inner/Outer Direction

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Further reading on effects of social culture in business ethics: Akbar, Y.H and Vujić, V. (2014) "Explaining corruption: the role of national culture and its implications for international management", Cross Cultural Management 21/2,191-218 Chanlat, J.F., Davel, E. and Dupuis, J-P. (2015) Cross Cultural Management: Culture and Management across the World. Routledge: London Crawley, E., Swailes, S. and Walsh, D. (2013) Introduction to International Human Resource Management. OUP: Oxford

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Synthesising leadership – Ethical Leadership? Ethical egoism: transactional, focus on maximising profits Utilitarianism: best outcome for the greatest number of people Altruism: authentic transformational leadership in which ‘leadership has a moral dimension’ (Northouse, 2019, on Burns)

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Synthesising leadership – Global Leadership? Global leaders must develop five cross-cultural competencies (Adler and Bartholemew , 1992, in Northouse, 2019) Grasp of business, politics and cultural environments Grasp of perspectives, tastes, trends and technologies across many cultures Ability to communicate with people from different cultures (Hall, 1976) Ability to relate to people from different cultures from a position of equality rather than ethnocentric superiority (French, 2017) Ability to work with people from different cultures In addition they need to be able to Create transcultural visions (Ting-Toomey, 1999 in Northouse, 2019)

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frances tomlinson 5

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Breakthrough Leadership Skills MN7028 Topic 4: Motivation, Reward and Engagement at Work 1

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Learning Outcomes To understand the importance of work to individuals and functions it performs. To understand, explain and critically evaluate major theories of motivation. To relate the contribution of employee motivation to commitment and engagement. To explore the concept of Total Reward To understand and explain the nature of the psychological contract and its role in forging commitment and engagement. To consider several HR strategies in relation to building greater employee engagement: case study of M&S

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The Importance of Work Motivation Central role in management Integral to performance Permeates many sub-fields in the study of management Research history Research future

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Origin and Definitions From the Latin – Movere ‘The contemporary (immediate) influence on direction, vigor, and persistence of action’ (Atkinson, 1964) ‘A process governing choice made by persons…among alternative forms of voluntary activity’ (Vroom, 1964)

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Early History of Motivation Research Scientific Management movement (Taylor, 1911) Human Relations movement (Mayo, 1933) Theory X and Theory Y (McGregor, 1960)

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Theory X (McGregor, 1961) People inherently dislike work and, whenever possible, will attempt to avoid it. Since people dislike work, they must be coerced, controlled, or threatened with punishment to achieve goals. People will avoid responsibilities and seek formal direction whenever possible. Most people place security above all other factors associated with work and display little ambition

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Theory Y (McGregor, 1961) People will exercise self-direction and self-control if they are committed to the objectives of their work. The average person wants to accept responsibility and will seek it as well. The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions.

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Theory Z (Ouchy, 1980) Elements of this are now considered outdated (e.g. the job for life) However Ouchy places profound emphasis on the notion of Trust

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Content Theories Individual differences/needs: Hierarchy of needs (Maslow, 1954) Three needs: components of ERG Theory (Alderfer, 1972)

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Maslow’s Hierarchy of Needs Physiological needs Safety needs Social needs Ego/esteem needs Self-actualisation needs

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Applying Maslow’s model to the context of work Physiological – pay, pleasant work conditions, dining facilities Safety – health and safety, job security Social – cohesive work group, friendly supervision, professional associations Esteem – social recognition, job title, high-status job, feedback from job itself Self-actualisation – challenging job, opportunities for creativity, achievement in work, advancement in the organisation

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Content theories (2) Defined needs of achievement, affiliation, power, and autonomy (McClelland, 1961, 1971) Work activities/nature of job: Motivation-hygiene (Herzberg, 1966)

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Herzberg’s two factor theory Hygiene Factors Company policy & administration Supervision Working conditions Salary Relationship with peers Personal life Relationship with subordinates Status Security Satisfiers Achievement Recognition Work itself Responsibility Advancement Growth

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Process Theories The ‘golden age’ of cognitive motivation theories Expectancy Theory (Vroom, 1964; Porter and Lawler, 1968) Goal-setting (Locke, 1968; Locke and Latham, 1990)

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Expectancy Theory (Vroom, 1964; Porter and Lawler, 1968) Effort expended Effective level of performance Rewards (desired outcomes) related to performance Availability of rewards

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Equity Theory Equity (Adams, 1963) Animals share this sense of equity Individual exercise – how fair is your employer?

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Recent Developments 1960s and 1970s research extended and refined in the 1980s 1990s research into motivation has declined World of work has changed dramatically Future of motivation research? Academy of Management Review (2004) Special Topic Forum on the Future of Work Motivation Theory , Vol. 29, No. 3, July 2004, pp. 339-499.

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Roots of the concept of Employee Engagement Kahn (1990) was the first to propose that individuals could become personally engaged in their work. He defined ‘personal engagement’ as ‘the harnessing of organization members’ selves to their work roles : in engagement, people employ and express themselves physically, cognitively, emotionally and mentally during role performances”.

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Levels of engagement Engaged employees work with passion and feel a profound connection to their work and company. They drive innovation and move the organisation forward. Disengaged employees are essentially ‘checked out’. They’re ‘sleep walking’ through their work- day putting time (not energy or passion)into their work. Actively disengaged employees aren’t just unhappy at work: they’re busy acting out their unhappiness. These employees can often undermine what their engaged colleagues accomplish. See :Engaged employees inspire company innovation (2006) Gallup management Journal; http://gmj.gallup.com

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Commonly recognised Components of Employee Engagement (e.g. Armstrong 2017) Commitment Organizational Citizenship Behaviour Motivation Job Satisfaction (critiqued by Macey and Schneider, 2008)

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Some antecedents of EE might be Satisfaction (although dismissed by Macey and Schneider). Social Exchange Theory (SET) is presented by Saks (2006) who believes it poses a strong case A basic principle of SET is that ‘relationships evolve over time into trusting, loyal and mutual commitments as long as the parties abide by certain rules of exchange’ (Kular et al, 2008, referencing Cropanzano and Mitchell, 2005) So … In both SET and EE mutuality is required (and mutuality we agreed last week is one of the factors distinguishing EE from some closely related concepts such as Motivation) Trust

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Elaborating on SET ‘when individuals receive economic and socio-emotional resources from their organisation, they feel obliged to respond in kind and repay the organisation (Kular, 2008 referencing Cropanzano and Mitchell, 2005) We may conclude that the concept of SET represents at least one factor explaining why employees chose to engage or disengage at work.

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Trust Erosion of trust evident at societal level in ‘distrust of political elites’ (The Economist, 2017). ‘Rising distrust of … big business, banks and the media’ (ibid). Erosion of ‘public confidence in major companies’ (CIPD, 2014a). Two thirds of employees no longer trust senior management, influenced by recession, cost reduction programs, reduced working hours, freezes on payrises/benefits/promotions.

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Erosion of the trust which is/was implicit in the ‘psychological contract’ (Rousseau, 1995) The most important trust relationship for HR is that between employees and management (CIPD, 2012). The increasing ‘personalisation of trust’ through social media channels (CIPD, 2013) means that scrutiny of the behaviours of the organisation is more intense. When HR adopts a ‘hard model’ of HRM ( Legge ) and aligns itself to ‘organisational aims’, it will also suffer from an erosion of trust and a breakdown of the psychological contract. HR professionals may need to recalibrate toward a ‘soft’ model (ibid) which emphasises elements like socialisation, training and transparent communication with employees.

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The psychological contract Definitions: A set of perceived reciprocal promises and obligations between the individual and the organisation (Makin, P., 1999) The perceptions of both parties to the employment relationship, organisation and individual, of the reciprocal promises and obligations implied in that relationship (Guest, D. 2004)

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The “deal” Employer delivers on promises Employee delivers on promises = fairness, trust, commitment, well-being, performance.

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The Changing Nature of the Psychological Contract Old deal v. new deal (Ref: Guest, D. 2004) Breakdown of the traditional ‘deal’ A career in return for loyalty A fair day’s work for a fair day’s pay Individualisation of the employment relationship Organisational change and violation

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The impact of the psychological contract Fulfilling the psychological contract is important – it influences: Performance Extra role behaviour Job satisfaction Organisational commitment Intention to quit Source: Makin, P. and van Ruitenbeek, D., 1999

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Reward Understand the concept of financial rewards. Have an appreciation of the main types of payment Understand the concept of non-financial rewards. Understand the concepts of new reward and total reward.

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Reward or ‘compensation’? Marchington et al (2016) refer to the negative connotations related to compensation for ‘something bad happening to you’ Contrast with the more positive ‘rewards’, which may include ‘money, activities, variety, status, social contacts’ (ibid)

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Performance and Rewards Rewards are of obvious concern to both employers and employees. The emergence of HRM has produced or coincided with great expansion of both: Performance-related pay (a culture of “pay for contribution not pay for position”) Performance management

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Philosophy of Pay/Reward Systems Management will normally seek a pay system which they believe will give: the best balance between cost and supervisory control, and; provide the best incentive for employees. Marchington et al (2016) stress the importance of the reward philosophy in reflecting the overall objectives of the employer. Likewise the different elements of the package should all coherently ‘send a clear message to employees’

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Employer’s Assumptions about Reward Systems That the HR processes are a strategic fit for the business strategy Unitarist perspective which assumes that employees will endorse the business strategy Deterministic assumption that reward will have a direct impact on organisational performance Assumption that employees will work in a way that, in the absence of the reward system, they would not

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Employee’s Assumptions about Reward Systems Expectancy Theory (Vroom, 1964; Porter and Lawler, 1968) Motivational Force (MF) = Expectancy x Instrumentality x Valence

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Fairness Any pay system will fail if it is perceived to be unfair by the employees. Fairness of pay is a comparative concept not an absolute one. Equity Theory tells us that people will be better motivated if they feel that they are fairly paid – called the ‘felt-fair’ principle (Jacques, 1962) But fair in relation to what or whom? Usually the person at the next desk!

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Types of Payment Systems (e.g. Gilman, 2016) Payment by time. Performance-related pay or “Incentive Pay Schemes”: Payment by Results (PBR) – a variable element is determined by some ‘objective’ measure of the work done or its value. In the UK, this is losing favour in the shadow of the pension selling scandals. Merit-based systems – the variable element is related to an assessment of overall job performance

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Benefits of Payment by Results (PBR) according to Armstrong (2010) Motivate employees Serve as a lever for innovation and change (through modifications of processes to achieve performance) Send a message about the importance of good performance Link rewards directly to performance (and perhaps also to organisational goals) Help attract and keep the best staff Diminish the possibility of “golden handcuffs” where under-performers linger Meet the fundamental human need for achievement.

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Flaws of Payment by Results (PBR) according to Marchington et al (2016) Demotivate other employees Generally cost more to implement than they generate in increased revenue. Assume everyone works for/is motivated by money

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Payment by Results policies are growing in popularity NHS, teachers, Civil Service in the UK Asian countries – even Japan (which historically has paid on seniority)

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Case study of Payment by Results (Marsden, 2015) A PBR was rolled out in USA in certain schools who allocated part of their budget to spend on high performing teachers. The plan failed, arguably because: They didn’t give it enough time (2 years) There was a lack of understanding about how it worked There was a lack of money motivation in the targets (who instead focused on other more pastoral priorities) The PBR did not “create new budget”. The money had to be taken from somewhere else, creating tensions.

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Reasons to Pay well: Delivers a better choice of applicant Reduces performance ‘issues’ (Marchington et al, 2016) Reduces staff turnover May increase effort/contribution (in line with Social Expectancy Theory)

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‘New rewards’ (Lawler, 1990) Asserted that reward: Can (and should) align with the business strategy Can therefore help deliver the business strategy Offer the potential to lever/deliver cultural change Yet two‐thirds of organisations in the United Kingdom do not have a reward strategy (Chartered Institute of Personnel and Development 2008)

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Rejection of ‘new rewards’ logic CIPD (2015) report suggests that strategies of ‘new rewards’ are being ‘set aside or at least tempered by contemporary operating conditions’ Individual pay schemes are being used despite ambitions to promote a team ethic Such schemes ‘frustrate team cooperation’ HR prescriptions around team based logic has not gained traction.

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Nature of rewards: Financial Job-based pay Person-based pay Pensions Financial recognition schemes (bonuses?) Share schemes

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Financial “benefits” ‘Fringe’ or ‘employee’ benefits: to ensure that a competitive total remuneration package is provided to attract, retain and motivate staff. to increase the employee’s commitment to the organization. to take advantage of tax efficient methods of rewarding employees.

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Typical Non-Pay (but still Financial) Benefits Pension schemes Share schemes Company car Personal security E.g. extra-statutory sick pay; death in service benefits; personal accident cover; medical insurance etc Financial assistance

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Pension schemes Around half of employees in the UK are in occupational pensions schemes Pension schemes are the single most costly element in remuneration (notably in relation to workers with longer service) Two types: Defined benefit (DB): where the risk is taken by the employer Defined contribution (DC): where the risk is taken by the employee DC is on the increase but DBs are being wound up. (Antunes, 2016)

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Share ownership schemes Benefits? Education Motivation Recruitment and retention Performance Paternalism Drawback? Lack of direct correlation between effort and reward

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Cafeteria Approach to Rewards Management (Perkins and White, 2011) Allows employees a degree of choice in their total remuneration package, e.g. by permitting them to take less in non-pay benefits and more in pay, or vice versa The core benefit element will be salary The costed benefits will be elements such as car, Health Insurance, Childcare, extra holiday Employees chose the package” they wish to “construct”. The total overall value of their compensation will be the same whatever choices they make. This allows the individual to tailor their rewards to their particular needs and alter these as their needs change.

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Non financial rewards and recognition ‘managers do not motivate employees by giving them higher wages, more benefits, or new status symbols. Rather, employees are motivated by their own inherent need to succeed at a challenging task. The manager’s job then is not to motivate people to get them to achieve; instead, the manager should provide opportunities for people to achieve so they will become motivated.’ (Herzberg, 1987) ‘The desire of many individuals to seek opportunities for personal growth through their work is very powerful’ (Marchington et al, 2016, citing Giancola , 2010)

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Armstrong on Non-financial rewards ‘Financial incentives may increase engagement for some people in the short run, but the greatest impact on engagement is made by non-financial rewards, especially when they generate intrinsic motivation through the work itself and the work environment, and when they are provided by line managers’ (Armstrong, 2017, p.132).

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Reilly and Brown (2008) propose an engagement model for the Reward Strategy Examine the current strategy and structure Decide on the desired strategy and structure Understand ‘what brings people to work, keeps them with the organisation and motivates them to perform while there …’

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Nature of rewards: Non-financial (after Armstrong, 2017) Recognition in looser sense Achievement Personal growth Learning and Development opportunities Enhancement of well-being Some are extrinsic (e.g. verbal encouragement from manager) Some are intrinsic (e.g. job content)

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‘Total rewards’ defined. The CIPD define total reward as encompassing ‘all aspects of work that are valued by employees, including elements such as learning and development opportunities and/or an attractive working environment, in addition to the wider pay and benefits package’ (CIPD, 2015)

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Elements of ‘Total rewards’ The CIPD (2015) cite the US organisation WorldatWork as identifying six separate components of the work experience in addition to pay and benefits: performance and recognition work/life balance organisational culture employee development and career opportunities business strategy human resource strategy.

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Elaboration of ‘Total rewards’ concept Zingheim and Schuster (2001) suggest that the concept of total rewards has four components: Compelling future Individual growth Positive Workplace Total Pay. Towers and Perrin and Hay Group have adopted this model

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Managing the intrinsic element through job design Lawler (1969) identifies three elements to job design which are necessary to make a job ‘intrinsically’ motivating: Feedback relating to performance: this should be meaningful (Armstrong, 2010). Armstrong also states that this means they be able to see more of the picture, i.e. how their role fits into the whole process. Abilities: the jobholders must feel that they are making use of those abilities which they values. Self-control (autonomy): the jobholders must feel they have discretion

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Increased focus on ‘job characteristics’ in job design (Hackman and Oldham, 1976) Hackman and Oldham, 1976, propose a ‘job characteristics model’ (ibid), comprising five key elements: Skill variety (the range of skills and talents required) Task identity (the breadth within the task) Task significance (in relation to the “bigger picture”) Degree of autonomy (discretion, e.g. in methods) Feedback (clarity on performance) If jobs are designed in a way that maximises these dimensions then three psychological states can occur: Experience of meaningfulness at work Experience of responsibility for work outcomes Knowledge of results of work

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Motivation alone is not enough Marchington et al (2016) argue that people with a high ‘growth need’ will be more likely to experience changes in their psychological contract as a result of exposure to such job design However they also need abilities. As with performance more generally AMO seems to apply: Performance = Ability x Motivation X Opportunity

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Recurrent theme in the EE literature: ‘The line manager relationship is crucial’ (Robinson and Hayday, 2009) ‘Leaders and leadership can influence each facet of engagement through a range of processes’ (Soane, E (Leadership and Employee Engagement. in Truss et al, 2014, Employee Engagement in Practice)

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Selected Bibliography Armstrong, M. (2017) Armstrong's Handbook of Human Resource Management Practice. 14 th Edition. London: Kogan Page Armstrong, M. (2010) Armstrong's Handbook of Reward Management Practice. London: Kogan Page (available as ebook through Lonmet catalogue) CIPD (2015) Reward Strategy and Total Reward Factsheet (updated 2016) accessed 31/10/17 at https://www.cipd.co.uk/knowledge/strategy/reward/strategic-total-factsheet#7370 Henderson, I. (2010) Human Resource Management for MBA Students. London: CIPD Institute for Employment Studies (IES) (2016) The Relationship between Total Reward and Employee Engagement. Accessed 31/10/17 at http://www.nhsemployers.org/~/media/Employers/Publications/Reward/Total%20reward%20and%20employee%20engagement%20report.pdf Marchington, M., Wilkinson, A., Donnelly, R. and Kynighou , A. (2016) Human Resource Management at Work. 6 th Edition. London: CIPD

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Breakthrough Leadership Skills MN7028 Topic 5: Organisational Performance 1

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Learning Outcomes To evaluate contemporary debates in – and models of – HRM and HRD to explain current practice employed in organisations for managing people. To define and explore the concepts of performance and performance management To discuss High Performance Work Systems (HPWS) To evaluate the role of effective people management policies and practices in enhanced organisational performance. To contribute to the effective implementation of systems and enhanced organisational performance. To explain the main factors that can facilitate or impede effective organisational performance.

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Hard versus soft HRM Hard HRM: focus on profitability and well-being of the organisation; stresses the ‘resource’ aspect of HRM Soft HRM: associated with the human relations movement; employees are valued assets and a source of competitive advantage Short-term versus long-term focus? A false dichotomy?

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Ulrich’s (1997) Four Roles of HR Professionals People Future/ strategic focus Day to day /operational focus Processes Employee Champion Administrative expert Strategic Partner Change agent

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What is Performance? ‘the outcomes of work’ or ‘a record of a person’s accomplishment’ ( Bernadin et al, 1995) and Kane, 1996) Or alternatively ‘the ways in which organizations, teams and individuals get work done’ (Campbell, 1990) Or maybe a combination of outcomes and behaviours: ‘Performance means both behaviours and results … behaviours are also outcomes in their own right – the product of mental and physical effort applied to tasks – and can be judged apart from results’ (Brumbach, 1998 in Armstrong, 2012)

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What are the components of Performance? Job-specific task proficiency Non-job specific task proficiency (e.g. Organizational Citizenship Behaviour) Written and oral communication proficiency Demonstration of effort Maintenance of personal discipline Facilitation of peer and team performance Supervision/leadership Management/administration (Campbell et al, 1993)

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Three dimensions of Performance Management (after Shields, 2007) ‘Individual results flow into group results, which in turn contribute to organization-wide results’ ( Shields 2007, cited in Armstrong, 2017) So Armstrong (2012) argues that you need to look at it at individual, team and organizational levels. Performance culture High Performance Work Systems (HPWS)

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Four perspectives of Performance Measurement (after Kaplan and Norton 1992) Financial Perspective– how do we look to shareholders? Customer Perspective – how do customers see us? Internal Business perspective – what we need to excel at? Innovation and Learning Perspective – can we continue to create value?

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Performance Management ‘A systematic process for improving individual, team and organisational performance’. (Armstrong, 2014 p.331) The continuous process of improving performance by setting individual teams and goals whiah are aligned to the strategic goals of the organization, planning performance to achieve the goals, reviewing progress, and developing the knowledge, skills and abilities of the people.’ (Armstrong, 2017 p.391)

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Best practice HRM Definition: “The best practice view identifies a set of HR policies that, it is argued, is associated with improved performance in all types of organisations and, by implication, for all types of employees” (Kinnie et al, 2005: 9) Note: other terms – high commitment HRM, high involvement HRM, high performance work systems all embody the notion of Best Practice.

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Best practice HRM and organisational performance Assumption that particular bundles of HR practices have the potential to contribute to: improved employee attitudes and behaviours lower levels of absenteeism and labour turnover higher levels of productivity, quality and customer service in all types of organisation. This has been argued to have the effect of generating higher levels of profitability (Marchington and Wilkinson, 2009)

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Components of best practice HRM Employment security and internal labour markets Selective hiring and sophisticated selection Extensive training, learning and development Employment involvement and participation: worker voice Self-managed teams/team-working High compensation contingent on performance Performance review, appraisal and career development Reduction of status differentials/harmonisation Work-life balance (‘adapted significantly’ from Pfeffer, 1998 and cited in Marchington et al, 2016)

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‘Bundles’ of HR practices Long history researching individual best practices Best practice HRM is about combining these together into ‘bundles’. Based on the idea that investment in individual practices will have limited effect whereas making changes together will have a more powerful effect . This suggests there is a specific set of practices which can and should be adopted by firms which will lead to universal improvements in performance. (Wilkinson and Redman, 2009)

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The People and Performance link (Purcell et al, 2003) Research programme to explain ‘how and why HR practices impact on performance’ ( p.ix ) Starts with the framework of AMO: ‘performance is a function of Ability + Motivation + Opportunity’ A key to the HR- Performance link is the existence of a ‘Big Idea’ in the org. with ‘a clear mission, underpinned by values and a culture expressing what the company stands for and is trying to achieve’ The big idea displays 5 common characteristics: ‘embedded, connected, enduring, collective and ‘measured and managed’’

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The People and Performance link (Purcell et al, 2003) Bringing policies to life: the critical role of line managers ‘the exercise of employee discretion is crucially affected by the way in which managers exercise their own discretion’ (p.37) Model for ‘Front-line management’ Implementing Enacting Leading controlling

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High Performance Work Systems (HPWS) and performance ‘HPWS are bundles of HR practices that facilitate employee involvement, skill enhancement and motivation. HPWS provide the means for creating a performance culture’ (Armstrong, 2017) Definitions vary but Shih et al (2005) identify the following components: Job infrastructure (AMO) Training Programmes to enhance employee skills Information sharing and worker involvement mechanisms Reward and promotion opportunities that provide motivation

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Characteristics of a high-performance work culture (Armstrong, 2010) Management defines what it wants in terms of performance and its goals, with a ‘clear line of sight’ between strategic aims of org and team and individual levels Job redesign, autonomous work teams, improvement groups, team briefing, flex work Clarity on goals, underpinned by the PM processes Cultural fit between org goals and individual capabilities Empowered workforce Strong leadership engendering shared belief in continuous improvement Engaged, committed, motivated employees Capacities of people are developed through learning Climate of trust and teamwork aimed at delivering to the customer People are valued according to their contributions There is a steady pool of talent available from which to identify high performers

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Three theories underpinning Performance Management Goal Theory (Latham and Locke, 1979) Reinforcement Theory (Skinner, 1938) Social Cognitive Theory (Bandura, 1986)

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Four elements of Performance Management Agreement Feedback Positive reinforcement Dialogue (Capelli: 2008)

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Principles of Performance Management (after Egan, 1995) Performance Management should provide: Direction Freedom to get their work done Encouragement (and not control) Leading to growth Leading to strategic collaboration (Egan cited in Armstrong, 2017)

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Principles of Performance Management (after Strebler et al, 2001) Performance Management systems should: Have clear aims and measurable success criteria Be designed and implemented with the involvement of the employee Be simple Be aligned (and contribute to) organisational goals, ‘line of sight’ Focus on role clarity and performance improvement Be aligned with complementary L and D initiatives Explain rationale which links them to rewards Be equitable, transparent Be regularly assessed themselves against success criteria ( Strebler et al cited in Armstrong, 2017)

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People Managers are a crucial element Reinforce the link between organizational objectives and individual ones Give feedback Keep employees on course, or steer them back on course Hold employees ‘accountable’ (CIPD, 2017) Senior leaders meanwhile define and demonstrate the desired culture, mission, vision and values

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Why Manage Performance? Individual goals can be aligned with organizational goals and specifically (according to Jones et al, 1995) to: Build a Shared vision Avoid ambiguity by clearly defining roles of all employees Provide an unambiguous framework for individuals Provide an unambiguous framework for teams Provide an unambiguous framework for rewards Key notion of ‘accountability’ (CIPD, 2017)

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Why Manage Performance? (after Henderson, 2010) Motivation to perform is increased. Self-esteem is increased. The job definition and criteria for job success are clarified. Managers gain insight about subordinates, which helps the manager build relationships with their staff.

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Why Manage Performance? (Henderson, 2010, cont’d) Self-insight and development are enhanced. Employees become more competent. HR actions are likely to be fairer (and perceived as such) There is better protection from lawsuits. There is better and more timely differentiation between competent and poor performers.

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Why Manage Performance? (Cont’d) Supervisors are forced to address performance problems before they become too costly, and cannot be remedied. Supervisors’ views of performance are communicated more clearly. Organizational goals are made clear. Organizational change is facilitated.

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Typical Performance Management System An agreement between individual and manager setting out objectives and development needs. Performance is continually monitored , assessed and reacted to. Regular formal review of performance against objectives, and setting of new performance agreement . ‘holds people to account’ (CIPD, 2017)

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Planning for Performance The manager must know the criteria for success or failure, in order to assess performance. Specifically, the manager must be aware of the knowledge, skills and abilities (KSAs) needed to do the job competently. The KSAs and criteria for job success should be explicit in the relevant job descriptions.

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Supporting Performance Maintaining continuous awareness of how the employee is performing, and giving feedback on this on a mainly informal basis. Revising initial objectives, standards, key accountabilities and competency areas if required without waiting for scheduled formal performance appraisal meetings. Supporting Personal Development Plans.

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Personal Development Plan Personal Development Plans are a key component of Performance Management (according to Henderson, 2010) A good development plan assist employees to: do better in the future avoid past performance problems

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Constructive Performance Management ‘Performance management should be a continuous process which links together performance, motivation, individual goals, departmental purpose and organisational objectives; these in turn should be overseen by management but engage the workforce’ (Marchington, 2012)

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Key components of performance management (Mearns in Watson and Reissner , 2014, p.259) Recruitment and selection Induction Reviewing, appraisal and feedback Reward and reinforcement Training and Development Communication, support and counselling Management of poor performance Organisational Culture

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Good Induction offers these benefits (Mearns in Watson and Reissner, 2014, p.278) Relaxed and settled employee Employee more open to training and development Retention levels are higher (Fritz and Vonderfecht , 2007) Links between good induction and positive ER/IR

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Poor Induction risks these outcomes (CIPD in Watson and Reissner , 2014, p.278) Weak integration into team Low morale and low motivation Reduced levels of performance and productivity and if they leave Additional recruitment costs Wasted time/money in training Knock on impact in team productivity/performance

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Performance Appraisal Process offers these benefits (Mearns in Watson and Reissner , 2014, p.280) Clarify expected standards and measure against them Allocate rewards Identify high performers Highlight training and development needs Discuss career progression Counsel employees (where needed) Give constructive feedback Establish future aims, objectives, targets Motivate employee and increase their morale Improve communication

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Some conclusions about Performance Research findings as to the links between performance management and performance are mixed and inconclusive. CIPD (Gifford) says their research found no clear evidence. Armstrong argues for Employee involvement in the process on the basis that ‘people are more likely to respond positively and are more likely to work to improve their performance and develop their capabilities if they share in the processes of defining expectations [and] are involved in creating and developing their skills and competencies’ (Armstrong, 2017. p.396) Performance management has benefits for the employer, not least in informing decisions on remuneration for outcomes. From the employee’s point of view it can facilitate rewarding people ‘by recognition through feedback, the provision of opportunities to achieve, the scope to develop skills, and guidance on career paths’ (ibid). These are all non-financial sources of Employee Engagement. Furthermore they all require leadership from the line manager.

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Selected References Armstrong, M and Taylor, S. (2015) Armstrong’s Handbook of Performance Management. 5 th Edn . London: Kogan Page (available online from Lon Met) Boxall, P. and Purcell,, J. (2008) Strategy and Human Resource Management. 2 nd ed. Basingstoke: Palgrave Macmillan Boxall, P. and Purcell,, J. (2015) Strategy and Human Resource Management. 4 th ed. Basingstoke: Palgrave Macmillan CIPD: numerous factsheets and reports available for the CIPD website at www.cipd.co.uk , including Could do better? Assessing what works in performance management . Henderson, I. (2010) Human Resource Management for MBA Students. London: CIPD Kaplan, R. S. and Norton, D. P. (1992) ‘The Balanced Scorecard–Measures That Drive Performance’, Harvard Business Review , 70(1), pp. 71–79. Available at: http://0-search.ebscohost.com.emu.londonmet.ac.uk/login.aspx?direct=true&db=bth&AN=9205181862&site=ehost-live (Accessed: 31 March 2020). Purcell, J., Kinnie , N., Hutchinson, S., Raylon, B. and Swart, J (2003). Understanding the People and Performance Link: Unlocking the Black Box. London: CIPD. Watson, G. and Reissner , S. (2014) Developing Skills for Business Leadership. London: CIPD

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