leadership & control

8/10/2019 Leadership & Control

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M360

Leadership


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The Meaning of Leadership

Leadershipis an

influence relationship

among leaders and

followers who strive forreal change and

outcomes that reflect

their shared purposes.


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Leader and Manager Qualities

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How Followers Respond to the Influence Tactics of

Leaders(adapted from Figure 15.1)

Commitment: Followers are

enthusiastic to achieve the leaders

objectives, and they accept the

objectives as their own

Compliance: Followers do what

they are told, but without any

enthusiasm.

Resistance: Followers may appear

to respond but not actually do so.

Or they may get angry and even

sabotage the leaders plan

Most Likely ResponseOf Followers

Type of InfluenceTactic Used by Leaders

Charisma

Reward

Coercion

Formal

Position

Expertise


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Leadership Behaviors (cont.)

Robert Blake and Jane Mouton developed the

managerial grid. The managerial grid is more

complex and identifies five leadership styles

that combine different degrees of concern for

production and concern for people.


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Telling Selling

ParticipatingDelegating


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Transactional

Clarify tasks

Initiate structure

Provide awards

Improve productivity

Hard working Tolerant and fair

minded

Focus on management

Transformational

Innovative

Recognize follower

needs

Inspire followers

Create a better future Promote significant

change


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Foundations of Control

Control involves the processes for ensuring thatbehaviors and performance conform to an organizationsstandards, including rules, procedures, and goals.

Preventive controlsare mechanisms intended to reduce

errors and thereby minimize the need for correctiveaction.

Corrective controlsare mechanisms intended to reduceor eliminate unwanted behaviors or results and therebyachieve conformity with the organizations regulations

and standards. Controls should be linked to the strategic goals of the

organization.


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Examples of Different Sources and Types of Control(adapted from Table 10.1)

Types of Control

Source of control Preventive Corrective

Stakeholders Maintaining quotas for hiring Changing recruitment policiespersonnel in protected class to attract qualified personnel

Organization Using budgets to guide Disciplining an employee forexpenditures violating a No Smoking

safety regulation in ahazardous area

Group Advising a new employee about Harassing and sociallythe groups norm in relation to isolating a worker who doesntexpected level of output conform to group norms

Individual Deciding to skip lunch in order Revising a report you haveto complete a project on time written because you aredissatisfied with it


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Corrective Control Model(adapted from Figure 10.2)

1. Define the

System

5. Make

Comparisons

If okay

continue

2. Identify Key

Characteristics

3. Set

Standards

4. Collect

Information

If deviations

6. Diagnose

And Correct

Problems


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Copyright 2005 by South-

Western, a division of ThomsonLearning

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Primary Organizational Control

Methods(adapted from Figure 10.3)

Mechanistic

And Organic

Control

Organizational

Control

Market

Control

Financial and

Accounting

Controls

Automation-

Based

Control


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Mechanistic and Organic Control Methods(adapted from Table 10.2)

Mechanistic Control Methods

Use of detailed rules and procedures

whenever possible

Top-down authority, with emphasis onpositional power

Activity-based job descriptions that

prescribe day-to-day behaviors

Emphasis on extrinsic rewards (wages,

pensions, status symbols)

Distrust of teams, based on an assumption

that team goals conflict with

organizational goals

Organic Methods

Use of detailed rules and procedures only

when necessary

Flexible authority, with emphasis on expertpower and networks of influence

Results-based job descriptions that

emphasize goals to be achieved

Emphasis on both extrinsic and intrinsic

rewards (meaningful work)Use of team, based on an assumption that

team goals and norms assist in

achieving organizational goals


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Market Control

Market controlinvolves the collection of data related tosales, prices, costs, and profits for guiding decisions andevaluating results.

Marketing control requires that:

the costs of the resources used in producing outputs be measuredmonetarily,

the value of the goods and services produced be defined clearly andpriced monetarily, and

the prices of the goods and services produced be set competitively

Two control mechanisms that meet these requirements are:

Profit-Sharing Plans

Customer Monitoring


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Financial and Accounting Controls

Financial controlincludes the mechanisms for

preventing or correcting the misallocation of

resources.

Comparative financialanalysisis the

evaluation of a firms financial condition for

two or more time periods.


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Automation-Based Control

Automationinvolves the use of self-regulating

devices and processes that operate

independently of people.

Machine controlutilizes self-regulating

instruments or devices to prevent and correct

deviations from preset standards.


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Corporate Governance

A corporationis a government-approved form

of organization that allows different parties to

contribute capital, expertise, and labor for the

benefit of all of them.

Corporate governanceis the pattern of

relations and controls between the

stockholders, the board of directors, and thetop management of a company.


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Corporate Governance (cont.)

External control mechanisms Sarbanes-Oxley Act

Criminal Accountability

Whistleblower Protection

Internal control mechanisms Board of Directors

Independent

Self-Assessment

Executive Compensation

Evaluation of CEO

Resource Allocation

Fiduciary Responsibility and Control


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Feedback Control Model

leadership & control

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