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VL HRM B – G. Grote ETHZ, SS07
Topics HRM B: Leading teams
19.3. Introduction; Core functions of HRM – Benchmarking HRM
26.3. HRM as strategic and operative leadership task; Personnel selection: Theory
2.4. Personnel selection: Instruments (exercise in small groups)
16.4. Performance appraisal: Instruments for employee (and leader) appraisal
23.4. Compensation: Job evaluation, salary systems; Personnel development
30.4. Management by Objectives: Integrating appraisal/compensation/development in leadership
7.5. Leadership
14.5. Teams: Overview
21.5. Managing diversity
4.6. Teams (exercise in small groups)
11.6. Discussion of student projects in small groups
18.6. Exam preparation; Guest speaker Renato Merz, Head HR ABB Switzerland
VL HRM B – G. Grote ETHZ, SS07
Leadership is …
… the process of influencing the activities of an organized group towards goal achievement.
… the ability of an individual to motivate others to forego self-interest in the interest of a collective vision (House & Shamir, 1993)
… the influential increment over and above mechanical compliance with the routine directives of the organization (Katz & Kahn, 1978)
VL HRM B – G. Grote ETHZ, SS07
Substitutes for leadership(Kerr & Jermier, 1978)
• Abilities and experience of followers
• Routine tasks
• Standardization of processes and tasks
• High level of technology use/automation
VL HRM B – G. Grote ETHZ, SS07
Flight phase
1
Take-off
2
Preparation
Clean approach
3
Approach and Landing
Average duration (min.) 3 10 3
Task load Low Low High
Standardization High Low High
Communication units (CU) overall 840 3514 1429
CU standardized communication 52% 9% 28%
CU explicit 66% 81% 60%
CU implicit 34% 19% 40%
CU leadership 2% 14% 3%
CU Heedful interrelating 2% 18% 19%
Example for leadership subsitutes: Adaptive team coordination in cockpit crews (Grote et al., 2004)
Good teams used more leadership in phase 2 (low standardization) and less in phases 1 and 3 (high standardization)
VL HRM B – G. Grote ETHZ, SS07
Basic leadership functions
• group internal functions– Task orientation/initiating structure
Set goals, distribute tasks, check work results etc.– Employee orientation/consideration
resolve conflicts, support/coach team members etc.
• group external functions– Boundary regulation
Adjusting external demands in terms of group internal demands and possibilities
VL HRM B – G. Grote ETHZ, SS07
Leadership activities (Yukl, 1989)
Activity Definition
Planning and organi-zing
Determining long-term objectives and strategies, allocating resources according to priorities, determining how to use personnel and resources efficiently to accomplish a task or project, and determining how to improve coordina-tion, productivity and effectiveness.
Problem solving Identifying work-related problems, analyzing problems in a syst ematic but t imely manner to determine causes and find solutions, and acting decisively to implement solutions and resolve crises.
Clarifying Assigning work, providing direction in how to do the w ork, and communicating a c lear understanding of job re-sponsibilities, task objectives, priorities, deadlines and performance expectations.
Informing Disseminating relevant information about decisions, plans and activities to people who need the information to do their work.
Monitoring Gathering information about work activities and external conditions affecting the work, checking on the progress and quality of the work, and evaluating the performance of individuals and the effectiveness of the organizational unit.
Motivating Using influence techniques that appeal to logic or e motion to generate enthusiasm for work, commitment to task objectives and compliance with requests for cooperation, resources, or assistance; also s etting an e xample of proper behaviour.
Consulting Checking with people before making changes that affect them, encouraging participation in decision-making and allowing others to influence decisions.
Recognizing Providing praise and recognition for effective performance, significant achievements and special contributions.
Supporting Acting friendly and considerate, being patient and helpful, showing sympathy and support when someone is upset or anxious.
Managing conflict and team-building
Facilitating the constructive resolution of conflict and encouraging cooperation, teamwork and identification with the organizational unit.
Networking Socializing informally, developing contacts with people outside of the immediate work unit who are a source of information and support, maintaining contacts through periodic visits, telephone calls, correspondence and atten-dance at meeting and social events.
Delegating Allowing subordinates to have substantial responsibility and discretion in carrying out work activities and giving them authority to make important decisions.
Developing and men-toring
Providing coaching and carreer counseling and doing things to facilitate a subordinate`s skill acquisition and ca-reer advancement.
Rewarding Providing tangible rewards such as a pay increase or promo-tion for effective performance and demonstrated
VL HRM B – G. Grote ETHZ, SS07
Prerequisites of "good" leadership
• The "right" person ?– Traits of leaders compared to followers:
intelligence, extraversion, adjustment, dominance, self-confidence
but: overlapping distributions, cause or effect, situation dependence of differences
• The "right" behavior ? – Leadership styles:
task-centred versus employee-centred
autokratic vs. democratic (Lewin, Lippitt & White,1939)
transactional vs. transformational (Bass, 1985)
individual Leader-Member-Exchange (Graen & Uhl-Bien, 1995)
VL HRM B – G. Grote ETHZ, SS07
Prerequisites of "good" leaderhsip (continued)
• The "right" situation ?– group (size, composition etc.)– task (complexity, structure etc.)– organization (division of labor, formalization etc.)
• The "right interaction" between person and situation ?– e.g. Fiedler (1967): differentiated social perception in
combination with structured task, position power and good group climate
• The "right" instruments ?– e.g. management by objectives, performance appraisal
VL HRM B – G. Grote ETHZ, SS07
Normative leadership models
• e.g. Blake & Mouton (1968):9.9 leadership style (general requirement of high task and employee orientation)
• e.g. Hersey & Blanchard (1977): situation dependent variation of task and employee orientation
attempts to reduce the complexity of leadership demands– instructions for appropriate leadership behavior– tendency to "mechanize" leadership
VL HRM B – G. Grote ETHZ, SS07
Example from leadership diagnosis questionnaire(Hersey & Blanchard, 1977)
Situation Different options for action (mark the best one!)
1. Recently, your subordinates do not respond to your friendly conversation and your obvious caring for their well -being. Their performance is fluctuating.
A You emphasize the necessity of consistent procedures and task fulfilment.
B You make yourself available for conversation, but do not impose yourself on your team.
C You talk to your subordinates and then set objectives.
D You deliberately stay out.
2. Your team`s observable performance is increasing. You have made sure that every team member knows their role and requirements.
A You entertain friendly relationships, but continue to ensure that all team members know their roles and requirements.
B You do not do anything particular at all.
C You do as much as you can to give your team the feeling to be important and involved.
D You stress the importance of deadlines and tasks.
VL HRM B – G. Grote ETHZ, SS07
Situation Different options for action (mark the best one!)
1. Recently, your subordinates do not respond to your friendly conversation and your obvious caring for their well -being. Their performance is fluctuating.
T 1
E 3
TE 2
- 4
A You emphasize the necessity of consistent procedures and task fulfilment.
B You make yourself available for conversation, but do not impose yourself on your team.
C You talk to your subordinates and then set objectives.
D You deliberately stay out.
2. Your team`s observable performance is increasing. You have made sure that every team member knows their role and requirements.
TE 1 - 4
E 2
T 3
A You entertain friendly relationships, but continue to ensure that all team members know their roles and requirements.
B You do not do anything particular at all.
C You do as much as you can to give your team the feeling to be important and involved.
D You stress the importance of deadlines and tasks.
VL HRM B – G. Grote ETHZ, SS07
In the past the question was: "How do I lead a company?"
Today it is: "How do we lead a company?"
For the future it will be: "How does a company lead itself?"
"Boundaryless, flattened, flexible, project-based and team-based organizations that employ temporary, externalized and remote workers, whose tasks are more intellectual amd less routine and cannot be controlled and coordinated by structure or direct supervision, need mechanisms of coordination through shared meaning systems and a shared sense of purpose" (Shamir, 1999)
VL HRM B – G. Grote ETHZ, SS07
"Benchmarking": Characteristics of HRM in successful
companies (Pfeffer, 1998)
1. Employment security
2. Selective hiring
3. Self-managed teams and decentralization
4. High compensation contingent on organizational performance
5. Extensive training
6. Reduction of status differences
7. Sharing information
VL HRM B – G. Grote ETHZ, SS07
Changes in the basic understanding of leadership
• Not technical instruction on the treatment of the object employee, but support for the dialogue with the subject employee (Neuberger, 1990)
• Leadership is influencing, not dominating people• Dialogue under conditions of complex interactions
between individual goals and interests• Instead of clearly defined leadership tasks and rules more
"meta-rules" derived from the acknowledgement of self-organizating properties of teams and organizations
• Besides technical competence and charima a "sense for systemic dynamics" is needed
VL HRM B – G. Grote ETHZ, SS07
Examples for meta-rules (Probst, 1987)
• Learn to cope with ambiguities, indeterminancies, and uncertainties
• Keep and create opportunities• Increase autonomy and integration• Synchronize decisions and actions with "system
time"• Keep processes going – there are no final
solutions
VL HRM B – G. Grote ETHZ, SS07
Paradox of systemic leadership
The recoginition of self-organizing properties of social systems is to enable its (external) controllabilitiy.
i.e. gaining control by giving up control?
VL HRM B – G. Grote ETHZ, SS07
Topics HRM B: Leading teams
19.3. Introduction; Core functions of HRM – Benchmarking HRM
26.3. HRM as strategic and operative leadership task; Personnel selection: Theory
2.4. Personnel selection: Instruments (exercise in small groups)
16.4. Performance appraisal: Instruments for employee (and leader) appraisal
23.4. Compensation: Job evaluation, salary systems; Personnel development
30.4. Management by Objectives: Integrating appraisal/compensation/development in leadership
7.5. Leadership
14.5. Teams: Overview
21.5. Managing diversity
4.6. Teams (exercise in small groups)
11.6. Discussion of student projects in small groups
18.6. Exam preparation; Guest speaker Renato Merz, Head HR ABB Switzerland
VL HRM B – G. Grote ETHZ, SS07
Road map for HRM B
MotivationSatisfaction
Performance
Personnel selection
Performance appraisal / Compensation
Personnel development
Task /Work process
VL HRM B – G. Grote ETHZ, SS07
"Benchmarking": Characteristics of HRM in successful
companies (Pfeffer, 1998)
1. Employment security
2. Selective hiring
3. Self-managed teams and decentralization
4. High compensation contingent on organizational performance
5. Extensive training
6. Reduction of status differences
7. Sharing information
VL HRM B – G. Grote ETHZ, SS07
Self-regulating teams
• Teams: several people who work together over a period of time to reach common goals and who share a sense of belonging together
• Self-regulation: individual and collective autonomy in order to coordinate work processes and to cope with process variances and uncertainties locally
VL HRM B – G. Grote ETHZ, SS07
Advantages of teams
• developing ideas
• discovering and compensating individual errors
• furthering systems view
• supporting shared task orientation
• offering reciprocal support
• alleviating individual work load
VL HRM B – G. Grote ETHZ, SS07
Disadvantages of teams
• friction
• conformity
• levelling of individual performance
• diffusion of responsibility
• devaluation of other groups
VL HRM B – G. Grote ETHZ, SS07
Psychological group phenomena: Social comparison theory (Festinger, 1954)
• We have a need to assess own attitudes and abilities.
• If objetictive standards for these comparisons are missing, we compare ourselves with other people.
• We favor comparisons with people similar to ourselves.
VL HRM B – G. Grote ETHZ, SS07
Psychological group phenomena:Bystander-effect (Latané & Darley, 1970)
• The more people are present the less likely individuals are to take initiatives (e.g. helping someone who very obviously is in need of help).
• Underlying processes:– Diffusion of responsibility– Reinterpretation of the situation (necessity for
action is negated) – evaluation anxiety
VL HRM B – G. Grote ETHZ, SS07
Psychological group phenomena:Conformity (Asch, 1956)
• As soon as three or more group members express an opinion that is different from the opinion of another single member, there is a strong tendency for that member to adapt his/her opinion.
• Pressure to conform can lead to a change in the publicly expressed opinion without necessarily
changing the privately held conviction.
VL HRM B – G. Grote ETHZ, SS07
Psychological group phenomena:Groupthink (Janis, 1972)
Prerequisites High cohesion Isolation Directive leadership High time pressure
Symptoms Illusion of unanimity Feeling infallible Censoring people with different opinions Stereotypes about people outside the group Collective rationalization
Characteristics of the decision process
Insufficient search for information Insufficient search for alternatives Selective assessment of alternatives Missing planning for consequences
Measures to prevent groupthink
• Open development and assessment of alternatives
• Encouraging criticism and divergent opinions • Involving experts • Institutionalizing an Advocatus diaboli
VL HRM B – G. Grote ETHZ, SS07
Psychological group phenomena:Effects of different communication structures (Shaw, 1964)
Simple problem Complex problem
Time Errors Amount Satis-faction
Time Errors Amount Satis-faction
Centralized + + - - - - - -
Decentralized - - + + + + + +
VL HRM B – G. Grote ETHZ, SS07
Phases of team development (Tuckman, 1965)
• Forming (Orientation phase):– All new – insecurity– Test behaviors– Search for acceptable behaviors
• Storming (Conflict phase):– Fight for roles/positions ("Hackordnung")– Power struggles
• Norming (Organisation phase):– Agreeing on team rules and cooperation forms– Developing a sense of belonging together
• Performing (Performance phase):– Constructive task distribution and flexible role behavior– Energy is focused on task completion and goal attainment
VL HRM B – G. Grote ETHZ, SS07
Prerequisites for good team work
• Adequate common task – Complexity higher than individual competencies– Clear performance criteria– Collective decision competence
• Shared goal orientation – Positive goal coupling– Goal transparency and feedback
• Adequate group composition– Different perspectives on the task– Shared language
• Development of group rules– Adequate group size– Support for team development (form, storm, norm, perform)– Explicit handling of conflicts between individual and collective autonomy
VL HRM B – G. Grote ETHZ, SS07
Team diagnosis:Characteristics of effective teams
• Goals are clear and accepted
• Individual and team goals melt together
• Responsibilities are clear and change depending on situational demands
• Leadership is seen as a shared responsibility
• Conflicts are dealt with
• Team learns and develops
• Contributions are recognized and valued
• Communication is open and engaged
• Group processes are reflected upon and discussed
VL HRM B – G. Grote ETHZ, SS07
Team diagnosis:Critical team situations
• Different interests cannot be integrated
• Team is overloaded or underloaded
• Mistrust among team members
• Hierarchy impedes development of cohesion
• Little interaction and knowledge exchange
• Fear of mistakes and responsibility
• Non-complementary team composition
• Goals are lost sight of
• Problematic roles of some team members (wingers, freeloaders, talkers, silent people etc.)
VL HRM B – G. Grote ETHZ, SS07
Instruments for team diagnosis: Example 1
The cooperation with in my team during the last week was …
... goal oriented o o o o o o o ... not goal oriented
... productive o o o o o o o ... unproductive
... easy to coordinate o o o o o o o ... difficult to coordinate
... motivating o o o o o o o ... frustrating
... even o o o o o o o ... one-sided
... constructive o o o o o o o ... destructive
… exciting o o o o o o o … boring
VL HRM B – G. Grote ETHZ, SS07
Instruments for team diagnosis - Example 2
• Questionnaire on working in teams (F-A-T, Kauffeld, 2001)
– Person orientation: • Cohesion: trusting and open behaviors, social support,
sense of belonging.
• Taking on responsibility: Sense of responsibility, taking initiatives, showing commitment.
– Structure orientation:• Task fulfillment: Distribution of tasks and work processes.
• Goal orientation: Clarity, attainability, importance and identification with team goals.
• Recommendations: In case of team problems analyze structural dimensions first.
VL HRM B – G. Grote ETHZ, SS07
Team roles
Leadership rolesvisionary, strategist,
networker, coach,
integrator, motivator,
controller, planner,
power promotor ...
Member rolesexpert, helper,
unconventional thinker,
advocatus diaboli, social
promotor, scape goat ...
VL HRM B – G. Grote ETHZ, SS07
Chosen leadership approach determines role
E.g.:
• Empowerment Coach
• Employee orientation Parent
• Task orientation Controller
• Charismatic leadership Visionary
• Change agent Strategist
VL HRM B – G. Grote ETHZ, SS07
Sources of power as basis for different leadership roles (French & Raven, 1959)
Gratification powerInfluence based on positive reinforcement through rewards or prevention of harm
Coercive powerInfluence through possibilities for punishment or taking away rewards
Position powerInfluence based on the position in the organization
Expert powerInfluence based on personal competence
Charismatic powerInfluence based on the followers' identification with the leader due to personal attraction
VL HRM B – G. Grote ETHZ, SS07
Changing leadership roles depending on stage in work processes
• Providing structure at the start of a process • Deciding in critical phases• Coach/motivator in on-going work processes• Team member (= no leadership) in routine
processes• Moderator in decision processes• Evaluator at the end of a process
VL HRM B – G. Grote ETHZ, SS07
Work in distributed teams:Teams have changed ...
from
• fixed team membership• team members belong to organization
• team members belong to team 100%
• team members are located at the same siteof the same organization
• team membership has a clearly definedstart and end point
• teams are led by one manager
• direct communication
to
changing team membership team members can be external to the
organization team members are members of several
teams team members are distributed across
different locations and organizations teams change continuously
teams are responsible towards severalunits
computer-mediated communication
VL HRM B – G. Grote ETHZ, SS07
Concerns of managers of distributed teams (Reichwald & Bastian, 1999)
• Change of culture
Surveillance -> trust
Direct instructions -> self-organization• Coordination and correction of mistakes become
more difficult• Weaker relationship between employee and
organization• Loss of power and prestige
VL HRM B – G. Grote ETHZ, SS07
New demands on leadership in virtual teams (Springall et al., 2006)
• High complexity of situation also requires complex leaderhip behaviors
• Conflicting leaderhip concepts have to be integrated into a coherent leadership style