week 13

 need for 2 students 

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Reflection and Discussion Forum Week 5

(chapter 10 and 11 attached)
Reflection and Discussion Forum Week 5

Reflect on the assigned readings for the week. Identify what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding.

Also, provide a graduate-level response to each of the following questions:

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  1. You have recently been promoted to district manager of a large scale restaurant chain which specializes in affordable meals in a pleasant environment. In accordance with management objectives, you are responsible for increasing sales of appetizers by 20 percent by the next quarter for the 15 locations in your area. Keeping channel richness in mind, how will you make contact with the restaurant employees to facilitate the sales increase? 
  2. While it is popular today to ascribe all successes to the concept of leadership, much of an organization’s success or failure is due to factors outside the influence of leadership. Based on what you have studied, what do you see as the true value of leadership? 

 

Reflection and Discussion Forum Week 13

(chapter 10)
Reflection and Discussion Forum Week 13
Reflect on the assigned readings for the week. Identify what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding.
Also, provide a graduate-level response to each of the following questions:

  1. It has been said that Earned Value Management (EVM) came about because the Federal Government often used “Cost-plus” contractors with project organizations.  Cost-plus contracting allows the contractor to recover full project development costs plus accumulate profit from these contracts.  Why would requiring contractor firms to employ earned value management help the government hold the line against project cost overruns?
  2. What do the Schedule Performance Index and the Cost Performance Index demonstrate? How can a project manager use this information to estimate future project performance?

 

Activity 13

Case 13.3 “Dear Mr. President—Please Cancel our Project!”: The Honolulu Elevated Rail Project

This case is a great current example of a very expensive project that was kicked off because of an assumed need—to relieve congestion in downtown Honolulu through an elevated urban rail system.  Critics argue that in addition to having a ballooning cost, the actual planning was poorly conceived, leaving Honolulu with an intrusive and ugly rail system through the downtown area, ruining panoramic views, and impeding traffic.  Additionally, advocates underestimated the power needs for the rail system, requiring the transport authority to renegotiate electricity fees for the system.  Finally, the original costs that were assumed for the project were calculated during an economic downturn and with the economy booming again, the costs of the project have gone up dramatically.  All of these elements points to a state Governor who is anxious to be rid of the project and hoping that President Trump will deny additional federal funding, in which case the project will likely be cancelled.

Questions

  1. Why are public works projects like the Honolulu Rail project nearly impossible to stop once they have been approved, even if later cost estimates skyrocket?
  2. Project Management researchers have charged that many large infrastructure projects, like this one, suffer from “delusion” and “deception” on the parts of their advocates.  Explain how “delusion” might be a cause of ballooning budgets in this project.  How does “deception” affect the final project budget overruns?

Essentials of Organizational Behavior

Fourteenth Edition

Chapter 11

Communication

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
After studying this chapter you should be able to:
Describe the functions and processes of communication.
Contrast downward, upward, and lateral communication through small-group networks and the grapevine
Contrast oral, written, and nonverbal communication.
Describe how channel richness underlies the choice of communication channel.
Differentiate between automatic and controlled processing of persuasive messages.
Identify common barriers to effective communication.
Discuss how to overcome the potential problems of cross-cultural communication.

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Functions of Communication
Managing behavior
Feedback
Emotional sharing
Persuasion
Information exchange

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Communication serves five major functions within a group or organization. Almost every communication interaction that takes place performs one or more of these interactions. Keep in mind that none of the five is more important than any of the others.
3

The Communication Process

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This graph outlines the communication process between the sender and the receiver. The sender takes the message to be sent and encodes it, either through verbal or written methods. The message is passed through the determined channel, and then it is handed off to the receiver, who receives the message and decodes it. The process is hindered by noise or communication barriers such as the perceived message. Feedback is the check on how successful the sender was in passing the correct message to the receiver.
4

Channels of Communication
Formal
Path follows the authority chain
Messages relate to professional activities
Informal
Spontaneous channels from individual choice
Messages often personal or social

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There are a few different channels of communication in the workplace. The first type is formal channels. These channels transmit messages that are related to the professional activities of the members, such as email, memos, and planned speeches. The second type is informal channels, used to transmit personal or social messages. Informal channels are more spontaneous in nature and a result of individual choices such as whom you eat lunch with.
5

Direction of Communication
Upward
Downward
Lateral

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In an organization, communication flows in three different directions. It can flow downward from the top management to people in lower levels of the organization. It can flow up from workers on the ground floor to the CEO. Or it can flow between or within departments in a lateral movement.
6

Manager

Executive

Manager

Employee

Manager

Downward Communication
Communication that flows from one level to a lower level
One-way communication
Managers explain why a decision was made but do not solicit advice or opinions of employees

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Communication that flows from one level of a group or organization to a lower level is downward communication. Managers using this one-way communication explain why decisions are made, but they don’t solicit advice or opinions from employees. This can be problematic because while employees are more committed to decisions when they understand why they are made, the organization ignores potentially valuable information from employees.
7

Upward Communication
Communication that flows to a higher level
Keeps managers aware of how employees feel about their jobs, coworkers, and the organization

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To engage in effective upward communication, try to communicate in headlines, support your headlines with actionable items, and prepare an agenda to make sure you use your boss’s attention well.
8

Lateral Communication
Communication that occurs between members of a work group, members at the same level in separate work groups, or any other horizontally equivalent workers
Saves time and facilitates coordination

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Some lateral relationships are formally sanctioned. More often, they are informally created to short-circuit the vertical hierarchy and expedite action.
9

Formal Small-Group Networks

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In an organizational context, communication is commonly broken down into three formal small-group networks.
The chain is a very formal and rigid chain of command. Employees know who the next person in the chain is and that is where they give and get their information.
The wheel is a network where there is a central figure who controls all the communication. This type of group requires a very strong leader who can communicate effectively.
The all-channel network is a much more fluid arrangement where all group members communicate actively with each other and there is no formal channel or single person. This works best in a situation such as a self-managed team.
10

Effectiveness Criteria

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The effectiveness of each network depends on the dependent variable that concerns you.
11

The Grapevine
Informal communication network
Word-of-mouth

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The grapevine is a common network that has been shown to be an effective mode of communication. Typically, the grapevine is not controlled by management nor do they feed it information. However, employees see it as a very believable and reliable form of communication. The grapevine has no formal purpose. It is mainly there to serve the self-interests of those who use it, developing from a need for these individuals to get more information about an important but ambiguous situation. The grapevine can be a way to receive information about the situation and reduce anxiety as well as fill a social need to connect.
12

Modes of Communication
Three modes of communication
Oral
Written
Nonverbal

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As we looked at earlier, communication can move through different channels and take on different forms.
13

Oral Communication
Advantages
Speed
Feedback
Simple to correct
Disadvantages
Potential for distorted message when passed through a number of people

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One communication channel is oral communication or the spoken word. This form of communication is quick, and there is immediate feedback; the disadvantage is that the message can be distorted based on the sender and the receiver.
14

Written Communication
Any method that conveys written words or symbols
Letters
E-mail
Instant messaging
Organizational periodicals

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Letters, e-mail, instant messaging, text messaging, social media, and blogs.
15

Nonverbal Communication
Body language conveys
The extent of affinity for another
The relative perceived status between a sender and receiver
Meaning changes with
Intonation
Facial expression
Physical distance

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Nonverbal communication is another channel often used in organizations. This can be a nod, a look, or the crossing of arms. It supports other channels of communication and helps to express emotions and feelings. However, it is often ridden with misperception and can greatly influence the receiver’s interpretation of the message.
There are many different types of nonverbal communication that send a lot of messages. Body movement is a common method. Tapping your fingers, for example, can show that you are impatient or nervous. The way you emphasize words can change the way the receiver perceives the message. Your facial expressions can show emotion and express how you feel about an assignment or task. Also, the distance placed between the sender and receiver can express whether you are interested in the project or if you feel more powerful than the other person. This will vary by cultural norms.
16

Channel Richness

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Channels differ in their capacity to convey information. Some are rich, in that they can handle multiple cues simultaneously, facilitate rapid feedback, and be very personal. Others are lean, in that they score low on these factors. Face-to-face communication scores highest in channel richness because it transmits the most information per communication episode.
17

Choosing Communication Method
Channel choice depends on whether the message is routine
Oral communication
Written communication
Nonverbal communication

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Non-routine messages are likely to be complicated and have the potential for misunderstanding. Managers can communicate effectively only by choosing rich channels.
Security is a big concern for companies with private or proprietary information about clients, customers, and employees, especially when cloud-based electronic data storage is used. The use of this type of storage is likely to increase, so companies will probably continue to monitor Internet use, emails, and so forth. By engaging employees in creating security policies, companies can reduce anxiety over these monitoring processes.
18

Choosing Oral Communication
Use of oral communication when gauging the receiver’s receptivity is important
But consider:
The receiver’s preference
Pace of work environment
Your speaking ability

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Whenever you need to gauge the receiver’s receptivity, oral communication – face-to-face meetings, telephone calls, video conferencing – is usually the better choice.
19

Choosing Written Communication
Written communication:
Provides a tangible and verifiable record that can be stored for an indefinite period of time
Message is physically available for later reference
Messages are more likely to be well thought-out, logical, and clear
Grammar mistakes can be problematic

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Written communication is a channel that is tangible and easy to go back to verify. Often when people put down their thoughts and ideas in written format, they are more logical and clear. However, written communication is more time consuming, doesn’t provide immediate feedback, and might not even be read.
20

Persuasive Communication
Automatic processing: superficial consideration of evidence and information making use of heuristics
Takes little time and minimal effort
Easy to be fooled
Controlled processing: detailed consideration of evidence and information relying on facts, figures, and logic
Requires effort and energy
Less likely to be fooled

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We process information in two ways: automatic and controlled.
21

Automatic versus Controlled Processing
The choice of processing depends on:
Interest level
Prior knowledge
Personality
Message characteristics

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Which type of processing will be used? It depends on interest level, prior knowledge, personality, and message characteristics.
When people are very interested in the outcome of a decision, they’re more likely to process information carefully.
People who are very well informed about a subject area are more likely to use controlled processing.
If you have a high need for cognition, you are more likely to be persuaded by evidence and facts.
Finally, messages provided through relatively lean channels, with little opportunity for users to interact with the content of the message, encourage automatic processing.
22

Barriers to Effective Communication
Filtering
Selective perception
Information overload
Emotions
Language
Silence
Communication apprehension
Lying

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There are a number of barriers to effective communication that can distort the message being sent. Let’s look at a few of those. Filtering is a common barrier where the sender sorts the information shared so that it will be seen as more favorable by the receiver.
Selective perception is something utilized by both the sender and the receiver. People selectively interpret what they see based on their own experiences and attitudes. This can then distort the message sent and the message received.
As we have seen in this chapter, there are many methods of communication, and they are all being used. Each receiver is in a state of information overload, where the information they are receiving exceeds their capacity to process it all. This leads to barriers to receiving the complete message.
Further complicating things are the emotions of the receiver at the time the message is received. The receiver’s emotions will influence their interpretation of the message.
When communicating, words will mean different things to different people and can influence the message significantly. Often this causes confusion between the sender and the receiver.
Many people are nervous about oral or written modes of communication and will not be able to clearly communicate because of their anxiety.
Finally, research shows that many people lie, and that the frequency of the lies combined with the difficulty of detecting exactly when it’s occurring also contribute to poor communication.
23

Cultural Factors
Cross-cultural communication barriers
Semantics
Word connotations
Tone differences
Differences in perception
Cultural context
High context culture
Low context culture

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Communication, as we have seen, can be difficult to do effectively. Cross-cultural factors can increase that difficulty. So it is important for managers to understand the culture in which they are working. They should be careful of the words they use to make sure they are translatable and don’t hold double meanings. They need to understand how their tone, body language, or perceptions will differ based on culture.
Cross-cultural communication barriers include:
Semantics – words mean different things to different people
Word connotations – words imply different things in different languages
Tone differences – in some cultures tone changes depending on context
Differences in perception – different world views
Context is very important to understanding what is being communicated. In low-context cultures, people tend to rely more on words, while high-context cultures will rely more on the whole situation.
24

A Cultural Guide
Know yourself.
Foster a climate of mutual respect, fairness, and democracy.
State facts, not your interpretation.
Consider the other person’s point of view.
Proactively maintain the identity of the group.

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When communicating with people from a different culture, follow these suggestions to reduce misinterpretations.
25

Implications for Managers
Remember that your communication mode will partly determine your communication effectiveness.
Obtain feedback from your employees to make certain your messages are understood.
Remember that written communication creates more misunderstandings than oral communication.
Make sure you use communication strategies appropriate to your audience and the type of message you’re sending.
Keep in mind communication barriers such as gender and culture.

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In summary, good communication will always reduce uncertainty and beats out ambiguity every time. Communication has a better chance of succeeding if the right channel is used, the receiver is a good listener, and feedback is utilized. It is important to remember that even though electronic communication is quicker and easier to use, it can also raise the potential for misunderstanding. Finally, keep in mind that in different cultural contexts things have different meanings, and there are a lot of barriers to overcome for effective communication. Do your homework, and do not rush to conclusions.
26

Copyright

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Essentials of Organizational Behavior

Fourteenth Edition

Chapter 12

Leadership

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

1

After studying this chapter you should be able to:
Summarize the conclusions of trait theories of leadership.
Identify the central tenets and main limitations of behavioral theories.
Contrast contingency theories of leadership.
Describe the contemporary theories of leadership and their relationship to foundational theories.
Discuss the roles of leaders in creating ethical organizations.
Describe how leaders can have a positive impact on their organizations through building trust and mentoring.
Identify the challenges to our understanding of leadership.

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What Is Leadership?
Leadership: The ability to influence a group toward the achievement of a vision or a set of goals
Trait theories of leadership: focus on personal qualities and characteristics
Leadership emergence
Leadership effectiveness

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Leadership is the ability to influence a group toward the achievement of goals.
The trait theories of leadership focus on personal qualities like those in the Big Five and characteristics that predict two distinct outcomes: leadership emergence and leadership effectiveness.
3

Trait Theories of Leadership
Two conclusions:
Traits can predict leadership
Traits do a better job predicting the emergence of leaders and the appearance of leadership than distinguishing between effective and ineffective leaders

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The fact that an individual exhibits the right traits and that others consider him a leader does not necessarily mean he will be an effective leader who is successful at getting the group to achieve its goals.
4

Personality Traits and Leadership
Big Five Traits
Extraversion has strongest relation to leadership
Conscientiousness and openness to experience also strongly relate to leadership
Agreeableness and emotional stability are not correlated with leadership
Dark Side Traits
Normative scores on Machiavellianism, narcissism, and psychopathy are optimal
Emotional intelligence
EI contributes to emergence of leaders

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Some essential leadership traits include extraversion, conscientiousness, openness, and agreeableness. Research shows that the Dark Side personality traits of Machiavellianism, narcissism, and psychopathy are not all bad for leadership. Higher scores on Dark Side traits and emotional stability can contribute to the emergence of leadership. Finally, emotional intelligence or EI has been linked with leadership effectiveness, especially with regard to empathy, a core component of EI. Leaders with empathy are able to sense others’ needs, listen to their followers, and read the reactions of others.
5

Behavioral Theories
Behavioral theories of leadership: we can determine leadership effectiveness by leader behavior, and perhaps train people to be leaders
The Ohio State Studies

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The behavioral theories of leadership focus on the premise that behaviors can be taught and traits cannot, so leaders are trained, not born.
6

Ohio State Studies
Attempts to organize work, work relationships, and goals
Concern for followers’ comfort, well-being, status, and satisfaction

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A key study in the area of behavioral leadership advanced our understanding of the theory. The research was done at the Ohio State University. Researchers looked at important dimensions of leadership behavior and began with over 1,000 dimensions. In the end, the Ohio State studies were able to narrow it down to two dimensions – initiating structure and consideration.
Initiating structure is when the leader is able to define and structure their role and that of their employees to work toward the goals of the organization. Consideration is the ability of the leader to gain the trust and respect of their followers and to help them feel appreciated for what they do. Both behaviors have proven to be very important in an effective leader.
7

Initiating Structure

Consideration

Cultural Differences
GLOBE Leadership Project Results:
Brazil – Leaders are participative and humane
France – Leaders are bureaucratic, task oriented, and autocratic
China – Initiating structure and consideration important: status differences but participation valued

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The GLOBE study suggests that there are differences across cultures in the preference for initiating structure and consideration.
8

Contingency Theories
Fiedler leadership model: Effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives the leader control

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In this theory, Fielder is trying to match the leader to the context. He proposes that leadership style is fixed. So, if the situation demands a charismatic leader and your current leader does not exhibit that style, you need to change leaders.
9

Fiedler Leadership Model
Least-Preferred Co-worker (LPC) determines leadership style (fixed trait)
Relationship oriented
Task oriented
Match leader’s style with degree of situational control
Leader-member relations
Task structure
Position power

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Leadership style can be determined by taking the LPC questionnaire (least preferred co-worker).
After the leadership style is determined you can match the leader to the situation. There are three dimensions to finding a successful match. The first situational factor is the leader-member relationship; this ties back to our behavioral studies by looking at the degree of trust and respect employees have for the leader. The second factor is the amount of structure that is embedded in job assignments. The last factor is the amount of influence the leader has over decisions that represent power such as hiring, firing, and rewards.
In Fiedler’s model, you need to find a leader to fit the situation or change the situation to fit the leader in order to achieve effective leadership for the organization.
10

Matching Leaders to Situations

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This graph helps to visually determine the situational factors and what type of leader would succeed in this situation. There are eight possible situations in which leaders can find themselves. By matching their LPC score with these eight different situations a leader can see where they will be most effective. For example, categories four through six would be better suited to relationship-oriented leaders because Fielder proposes that they perform best in moderately favorable situations.
11

Situational Leadership Theory
Situational leadership theory (SLT): successful leadership depends on selecting the right leadership style, contingent on the followers’ readiness to accomplish a task
Unable and unwilling
Unable but willing
Able but unwilling
Able and willing

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SLT acknowledges the importance of followers and builds on the logic that leaders can compensate for their limited ability and motivation.
12

Path–Goal Theory
Path–goal theory: it’s the leader’s job to provide followers with information, support, or other resources necessary to achieve goals
Directive leadership yields greater satisfaction when tasks are ambiguous or stressful
Supportive leadership results in high performance and satisfaction when tasks are structured
Directive leadership is perceived as redundant by employees with high ability or experience

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Effective leaders clarify followers’ paths to their work goals and make the journey easier by reducing roadblocks.
Directive or supportive leadership does matter to followers’ performance, and leaders need to be aware of their important facilitating role.
The effectiveness of leaders depends to a large degree on their followers.
13

Leader-Participation Model
Leader-participation model: provides a set of rules to determine the form and amount of participative decision making in different situations

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The way the leader makes decisions is as important as what he or she decides. Leader behavior must adjust to reflect the task structure.
14

Leader-Member Exchange
Leader-member exchange (LMX) theory: supports leaders’ creation of ingroups and outgroups
Subordinates with ingroup status will likely have higher performance ratings, less turnover, and greater job satisfaction

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LMX argues that leaders, because of time pressures, tend to establish special relationships with a small group of followers who then become their ingroup. In this capacity, they enjoy a disproportionate share of the leader’s attention, greater trust, and special privileges.
15

LMX Theory

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Research shows that ingroup members have demographic, attitude, and personality characteristics similar to those of their leaders or a higher level of competence than outgroup members.
16

Charismatic Leadership
Charismatic leadership theory: Attributions of heroic leadership abilities when followers observe certain behaviors
Vision and articulation
Personal risk taking
Sensitivity toward followers
Unconventional behaviors

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Charisma comes from the Greek word meaning “gift”. When talking about a charismatic leader, one refers to someone with certain gifts or abilities. A charismatic leader will often gain followers through personality rather than through power or authority.
There are four key characteristics that are associated with a charismatic leader. The leader must have vision, expressed as an idealized goal. The leader must be willing to take on high personal risk and engage in self-sacrifice to achieve the vision. In doing so, the leader needs to remain sensitive to the feelings and needs of their followers. Throughout the process, the leader may be engaging in behaviors that are perceived as counter to norms, thereby extraordinary.
17

Charismatic Leaders: Born or Made?
Charisma is partially attributed to genetics and partially to training and experience
Developing an aura of charisma:
Be optimistic
Be passionately enthusiastic
Communicate with body, not just words
Draw others in – inspire others
Tap into emotions – bring out the potential in others

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The charismatic traits are often traits that a leader is born with, thus continuing the debate on whether leaders are born or developed.
In reality it is a mix of genetics, training, and experience. Charisma can be created. One way is to develop an aura of charisma by being optimistic, passionately enthusiastic, and to communicating with behaviors and words. A leader can also create charisma by drawing in others through inspiration, as well as by tapping into the emotions of individuals to bring out their potential.
18

How Charismatic Leaders Influence Followers
Articulate an appealing vision
Communicate a new set of values
Model behaviors for those values
Express dramatic behavior

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Evidence shows a four-step process can help the charismatic leader utilize their characteristics to influence their followers. First, the leader articulates a long-term strategy for achieving a goal. This strategy should fit the vision and uniqueness of the organization. Next, the leader needs to formalize that vision by creating a vision statement. Charismatic leaders will often use this statement to reinforce the goal and purpose of the organization. This vision is communicated in a way that expresses the leader’s excitement and commitment to the goal.
Next, the leader will use his words and actions to communicate a new set of values for the followers to imitate. Then the charismatic leader will try to find behaviors that demonstrate their commitment to the vision. They will choose behaviors that will help followers “catch” the emotions the leader is conveying and help achieve buy-in from the followers.
Finally, the charismatic leader engages in emotion-inducing and often unconventional behavior to demonstrate courage and conviction about the vision, in order to, help followers “catch” the vision.
19

Charisma and Situational Dependency
Charisma is strongly correlated to high performance and satisfaction
Best used when
Environment is uncertain or stressful
Ideology is involved
Most closely associated with upper-level executives
People are most receptive to charisma when there is a crisis

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Charismatic leaders have been shown to be effective but it often depends on the context. This leadership style works best in an environment where it is uncertain, stressful, and where there is some ideology involved.
It is more closely associated with upper-level executives and people are most receptive to charismatic actions when there is a crisis.
20

The Dark Side of Charismatic Leadership
Some leaders:
Use organizational resources for personal benefit
Remake companies in their own image
Allow self-interest and personal goals to override organization’s goals

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There is a dark side to charismatic leadership if the leader misuses their skill set. In the past we have seen situations where leaders have abused company resources and used them for their own benefit. Some leaders with strong charisma have remade companies in their own image and left no plans for succession when they leave.
In many cases, the charismatic leader lets their own goals override those of the organization, thus creating a negative situation for the organization.
21

Transactional and Transformational Leadership
Transactional leaders:
Motivate their followers in the direction of established goals by clarifying role and task requirements
Transformational leaders:
Inspire followers to transcend their own self-interests for the good of the organization

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Transactional leaders motivate their follower towards the goals set by clarifying their roles in the process and what they need to do to reach the goals set.
Transformational leaders help followers to look at the bigger picture and commit to the good of the organization, even if it means setting their own goals aside.
These two approaches are not contradictory in nature; in fact they can complement each other. Transformational leadership often is built upon transactional leadership. Good leadership will incorporate both transactional and transformational components.
22

Characteristics of Transactional and Transformational Leaders

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This exhibit shows characteristics of transactional and transformational leaders.
23

Full Range of Leadership Model

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This exhibit shows the full range of the leadership model. The first three behaviors represent transactional approaches and begins with the Laissez-faire approach, which is the most passive. As a leader progresses on the scale, she moves toward more active behaviors. The final four behaviors on the model represent transformational actions. This model shows that as leaders utilize more transformational behaviors, they become more effective.
24

How Transformational Leadership Works
Organizations with transformational leaders have
Greater decentralization of responsibility
Managers willing to take risks
Compensation geared toward long-term results

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In organizations with transformational leaders, there is typically greater decentralization of responsibility, managers have a higher propensity to take risks, and compensation plans are geared toward long-term results. These organizations often have greater agreement among top managers about the organization’s direction.
25

Evaluation of Transformational Leadership
Transformational leadership:
Is effectively used in various job levels and disparate occupations
Tends to be more effective in smaller companies
Works better when the leader directly interacts with followers
Can be learned

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Transformational leadership works in a variety of contexts but tends to be more effective in smaller companies. It does work better when the leader is more closely connected to the followers and can understand their situation. The link between transformational leadership and positive job outcomes is solid.
26

Transformational versus Transactional Leadership
Transformational leadership is more strongly correlated with:
Lower turnover
Higher productivity
Lower employee stress and burnout
Higher employee satisfaction

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Research shows that transformational leadership results in many desirable outcomes. However, contingent reward leadership sometimes works as well as transformational leadership.
There are a lot of commonalities between transformational leadership and charismatic leadership, but in general, charismatic leadership focuses on how leaders communicate, while transformational leadership focuses on what is communicated.
27

Authentic Leadership: Ethics and Trust
Authentic leaders know who they are, what they believe in and value, and act on those values and beliefs openly and candidly
Create trust
Encourage open communication
People have faith in them

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Authentic leadership is a growing area of research. There are several components that need to be addressed when discussing authenticity in leadership. First, we must look at authentic leaders. These are leaders who engage in reflection and understand who they are and what they believe, and bring those two aspects together in their actions.
Next, authentic leaders are able to create trust with their followers and encourage a culture of open communication. These factors will help to create an authentic leader that people will follow.
28

Ethical Leadership
Ethics and leadership intersect at many junctures
Executives set the moral tone for an organization, so they must set and adhere to high ethical values
Leadership is not value free, and the means by which a leader achieves their goal must be framed by ethics
Socialized charismatic leadership: leadership that conveys other-centered values by leaders who model ethical conduct

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There is a strong intersection of ethics and leadership. Over the past several years we have been involved in what many have called an ethical crisis in the business community. When we look at leadership, we need to look at more than the results of the leader. We must also look at the steps the leader took to achieve those results.
29

Servant Leadership
Servant Leaders: Go beyond their own self-interest and focus on opportunities to help followers grow and develop
Effects of servant leadership:
Higher levels of commitment to the supervisor, self-efficacy, and perceptions of justice
Increased team potency and higher group performance
Higher levels of creative performance
Servant leadership may be more effective in certain cultures

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Servant leaders focus on opportunities to help followers grow and develop. The effects of servant leadership include higher levels of commitment to the supervisor, self-efficacy, and perceptions of justice, all of which are related to organizational citizenship behavior. Servant leaders increase team potency, which leads to higher levels of group performance and also a greater focus on growth and advancement, which leads to higher levels of creative performance.
This type of leadership may be more prevalent in East Asian cultures.
30

Trust

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Trust is defined as a state that exists when you agree to make yourself vulnerable to another because you have a positive expectation for how things are going to turn out. Over the years, this has been found to be a foundational characteristic of leadership. When trust is present, followers are willing to do as the leader asks and engage in behaviors that are for the benefit of the organization. In short, followers will do a lot more for a leader they trust than for one they don’t trust.
Trust is developed over time. The interactions between leaders and followers are part of the development of trust; it goes both ways. Research has shown that the three main characteristics of a leader that instills trust are integrity, ability, and benevolence.
These three characteristics are important in developing trust between leaders and followers. If followers perceive these characteristics as strong in their leaders, it will encourage positive behaviors such as risk taking, information sharing, group interactions, and productivity.
31

Trust

Taking Risks

Information Sharing

Effective Groups

Enhanced Productivity

Developing Trust

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Research shows that three key characteristics – integrity, benevolence, and ability – lead us to believe a leader is trustworthy.
Trust propensity refers to how likely a particular employee is to trust a leader. Keep in mind though that trust in an employment relationship can be built on very different perceptions from culture to culture.
Time is also important to trust – we come to trust people by observing their behavior over a period of time. It’s important for leaders to demonstrate integrity, benevolence, and ability in situations where trust is important. Demonstrating competence is also important. Finally, using an on-going dialogue rather than top-down communications is important to the development of trust.
If you’ve lost trust, you can sometimes regain it. Apologize if the cause was lack of ability. Regaining trust is much harder, though, if the cause was lack of integrity or deception.
32

Mentoring
Mentor: a senior employee who sponsors and supports a less-experienced employee, a protégé
Mentoring programs benefit both mentors and protégés
Benefits of mentoring are primarily psychological

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Successful mentors are good teachers. They present ideas clearly, listen well, and empathize with protégés’ problems. Mentoring relationships, whether formal or informal, serve career functions and psychosocial functions.
33

Leadership as an Attribution
Attribution Theory of Leadership
Performance outcomes are attributed to leaders’ actions
Appearance has more to do with leadership than actual accomplishments

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There are many challenges to understanding leadership. The attribution theory states that it is hard to attribute outcomes to leadership and that often leadership is more about performance than outcomes.
34

Substitutes and Neutralizers
Substitutes
Replace the need for a leader’s support or ability to create structure
Neutralizers
Organizational variables can neutralize the leader’s influence or act as substitutes for leadership
Leader becomes irrelevant

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There are many challenges to understanding leadership. The attribution theory states that it is hard to attribute outcomes to leadership and that often leadership is more about performance than outcomes.
In addition, you can have an extremely effective leader, but organizational variables can neutralize the leader’s ability to lead and create change, thus rendering the leader irrelevant.
35

Substitutes for and Neutralizers of Leadership

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Neutralizers make it impossible for leader behavior to make any difference to follower outcomes.
36

Online Leadership
Identification-based trust: trust based on a mutual understanding of each other’s intentions and appreciation of each other’s wants and desires

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Today, managers and employees are increasingly linked by networks rather than geographic proximity. For these managers, developing and maintaining trust is especially challenging.
37

Implications for Managers
Ensure that your preferences on the initiating structure and consideration dimensions match work dynamics and culture.
Hire candidates who exhibit transformational leadership qualities and who have demonstrated success in working through others to meet a long-term vision.
Hire candidates who are ethical and trustworthy; train managers in ethical standards.
Seek to develop trusting relationships with followers.
Consider investing in leadership training.

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Leadership is a complex function in an organization but essential for success. Individuals, groups, and organizations all need leaders and there are many factors that define a successful leader. Each organization must assess what they need in their leader in order to be effective.
38

Copyright

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Project Management: Achieving Competitive Advantage

Fifth Edition

Chapter 13

Project Evaluation and Control

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1

Learning Objectives (1 of 2)
13.1 Understand the nature of the control cycle and the four key steps in a general project control model.
13.2 Recognize the strengths and weaknesses of common project evaluation and control methods.
13.3 Understand how Earned Value Management can assist project tracking and evaluation.
13.4 Use Earned Value Management for project portfolio analysis.

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Learning Objectives (2 of 2)
13.5 Understand critical issues in the effective use of Earned Value Management.
13.6 Understand behavioral concepts and other human issues in evaluation and control.
13.7 From Appendix 13.1: Understand the advantages of Earned Schedule methods for determining project schedule variance, schedule performance index, and estimates to completion.

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P M B o K Core Concepts
Project Management Body of Knowledge (P M B o K ) covered in this chapter includes:
Control Schedule (P M B o K 6.7)
Control Costs (P M B o K 7.4)
Earned Value System (P M B o K 7.4.2.1)
Forecasting (P M B o K 7.4.2.2)
Performance Reviews (P M B o K 7.4.2.4)

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Control Cycles—General Model
Setting a goal.
Measuring progress.
Comparing actual with planned performance.
Taking action.

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Figure 13.2 The Project Control Cycle

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Figure 13.3 Project S-Curves

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Figure 13.4 Project Sierra’s S-Curve Showing Negative Variance

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Milestone Analysis
Milestones are events or stages of the project that represent a significant accomplishment.
Milestones:
Signal completion of important steps
Motivate team and suppliers
Offer reevaluation points
Help coordinate schedules
Identify key review gates
Signal other team members when their participation begins
Delineate work packages

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Figure 13.5 Gantt Chart with Milestones

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Figure 13.6 Assessing Project Blue’s Status Using Tracking Gantt Chart

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Figure 13.7 Tracking Gantt with Project Activity Deviation
Project status is updated by linking task completion to the schedule baseline.

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Earned Value Management
Earned Value Management (E V M) recognizes that it is necessary to jointly consider the impact of time, cost, and project performance on any analysis of current project status.
Earned Value (E V) directly links all three primary project success metrics (cost, schedule, and performance).

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Earned Value Terms
Planned value (P V)
Earned value (E V)
Actual cost of work performed (A C)
Schedule variance (S V) and schedule performance index (S P I)
Cost variance (C V) and cost performance index (C P I)
Budgeted cost at completion (B A C)
Estimate at completion (E A C)

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Steps in Earned Value Management
Clearly define each activity including its resource
needs and budget.
Create usage schedules for activities and resources.
Develop a time-phased budget (P V).
Total the actual costs of doing each task (A C).
Calculate both the budget variance (C V) and schedule
variance (S V).

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Figure 13.11 Project Baseline, Using Earned Value

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Figure 13.12 Earned Value Milestones

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Earned Value Example
Schedule Variances
Planned Value (P V) = 103
Earned Value (E V) = 44

Cost Variances
Cumulative Actual Cost of Work Performed (A C) = 78

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Figure 13.16 Earned Value Report for Project Atlas on May 19

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Flow of Earned Value System
Northrop Grumman’s flow of earned value management:
Proposal stage
Contract award
Baseline stage
Maintenance phase

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Using Earned Value to Manage a Portfolio of Projects
Table 13.9 Project Portfolio Earned Value (in thousands $)
Project P V E V Time Var ($) Var A C Cost Var ($) Var+ Plan Est. at Completion
Alpha 91 73 -18 18 83 -10 10 254 289
Beta 130 135 5 0 125 10 0 302 280
Gamma 65 60 -5 5 75 -15 15 127 159
Delta 25 23 -2 2 27 -4 4 48 56
Epsilon 84 82 -2 2 81 1 0 180 178
Blank 395 373 Blank Blank 391 Blank Blank Blank 962

Total Schedule Variance 27
Relative Schedule Variance

Total Cost Variance 29
Relative Cost Variance

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Completion Values in E V M
Accurate and up-to-date information is critical in the use of E V M.

Percentage Complete Rule

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Human Factors in Project Evaluation and Control
Project coordination and relations among stakeholders
Adequacy of project structure and control
Project uniqueness, importance, and public exposure
Success criteria salience and consensus
Lack of budgetary pressure
Avoidance of initial overoptimism and conceptual difficulties

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Critical Success Factors in the Project Implementation Profile
Project mission
Top management support
Project plans and schedules
Client consultation
Personnel
Technical tasks
Client acceptance
Monitoring and feedback
Communication channels
Troubleshooting

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Summary (1 of 2)
Understand the nature of the control cycle and the four key steps in a general project control model.
Recognize the strengths and weaknesses of common project evaluation and control methods.
Understand how Earned Value Management can assist project tracking and evaluation.
Use Earned Value Management for project portfolio analysis.

Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Summary (2 of 2)
Understand critical issues in the effective use of Earned Value Management.
Understand behavioral concepts and other human issues in evaluation and control.
From Appendix 13.1: Understand the advantages of Earned Schedule methods for determining project schedule variance, schedule performance index, and estimates to completion.

Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Copyright

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44EV
Schedule Performance Index43
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Estimated Time to Completion7163 months
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Cost Performance Index56
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Estimated Cost to Completion210,714118,0
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