LeadershipinOrganizationsNinthEditionChapter4DecisionMakingandEmpowermentbyLeadersCopyright?2020,2013,2010PearsonEducation,Inc.AllRightsReservedLearningObjectivesAfterstudyingthischapter,youshouldbeableto:4.1Understanddifferentformsofparticipativeandempoweringleadership.4.2Understandthemajorfindingsinresearchonconsequencesofparticipativeandempoweringleadership.4.3Understandthesituationsinwhichparticipativeandempoweringleadershiparemostlikelytobeeffective.4.4Understandempowermentprogramsandpsychologicalempowerment.4.5Understandwhenandhowtouseconsultationanddelegation.DecisionMakingbyManagersEmotionsandIntuitionAreOftenInvolvedImportantDecisionsAreDisorderlyandPoliticalManyDecisionsAreInformalandAdaptiveRoutineDecisionsAreDifferentParticipativeLeadership(1of6)TypesofDecisionsProceduresAutocraticDecisionConsultationJointDecisionDelegationParticipativeLeadership(2of6)Figure4.1ContinuumofDecisionProceduresParticipativeLeadership(3of6)PotentialBenefitsofParticipativeLeadershipDecisionQualityDecisionAcceptanceSatisfactionwiththeDecisionProcessDevelopmentofParticipantSkillsParticipativeLeadership(4of6)Figure4.2CausalModelofParticipativeLeadershipParticipativeLeadership(5of6)ObjectivesforDifferentParticipantsDownwardconsultationmaybeusedtoincreasethequalityofdecisionsbydrawingontheknowledgeandproblem-solvingexpertiseofsubordinates.Lateralconsultationwithpeopleindifferentsubunitsmaybeusedtoincreasedecisionqualitywhenpeershaverelevantknowledgeaboutthecauseofaproblemandlikelysolutions.Upwardconsultationbyamanagermakesitpossibletodrawontheexpertiseoftheboss,whichmaybegreaterthanthemanager’sexpertise.?ParticipativeLeadership(6of6)ResearchonEffectsofParticipativeLeadership?TheThresholdEffectofParticipativeLeadershipFindingsinParticipationResearchOverall,theresultsfromresearchontheeffectsofparticipativearenotsufficientlystrongandconsistenttodrawanyfirmconclusions.NormativeDecisionModel(1of9)Table4.1DecisionProceduresinNormativeDecisionModelA-1Yousolvetheproblemormakethedecisionyourself,usinginformationavailabletoyouatthetime.

Youobtainthenecessaryinformationfromyoursubordinates,thendecidethesolutiontotheproblemyourself.Youmayormaynottellyoursubordinateswhattheproblemisingettingtheinformationfromthem.Theroleplayedbyyoursubordinatesinmakingthedecisionisclearlyoneofprovidingnecessaryinformationtoyou,ratherthangeneratingorevaluatingalternativesolutions.C-1Yousharetheproblemwiththerelevantsubordinatesindividually,gettingtheirideasandsuggestions,withoutbringingthemtogetherasagroup.Thenyoumakethedecision,whichmayormaynotreflectyoursubordinates’influence.NormativeDecisionModel(2of9)Table4.1DecisionProceduresinNormativeDecisionModel(continued)C-1Yousharetheproblemwithyoursubordinatesasagroup,obtainingtheircollectiveideasandsuggestions.Thenyoumakethedecision,whichmayormaynotreflectyoursubordinates’influence.

Yousharetheproblemwithyoursubordinatesasagroup.Togetheryougenerateandevaluatealternativesandattempttoreachagreement(consensus)onasolution.Yourroleismuchlikethatofchairman.Youdonottrytoinfluencethegrouptoadoptyourpreferredsolution,andyouarewillingtoacceptandimplementanysolutionthathasthesupportoftheentiregroup.BasedonVroom&Yetton,1973,p.13.NormativeDecisionModel(3of9)DecisionAcceptanceandQualityDecisionacceptanceisthedegreeofcommitmenttoimplementadecisioneffectively.?Acceptanceisimportantwheneveradecisionmustbeimplementedbysubordinatesorhasimplicationsfortheirworkmotivation.Decisionqualityreferstotheobjectiveaspectsofthedecisionthataffectgroupperformanceasidefromanyeffectsmediatedbydecisionacceptance.NormativeDecisionModel(4of9)SituationalVariablesFigure4.3CausalRelationshipsintheNormativeDecisionModelNormativeDecisionModel(5of9)DecisionRulesTable4.2DecisionRulesintheNormativeDecisionModelWhenthedecisionisimportantandsubordinatespossessrelevantinformationlackedbytheleader,anautocraticdecisionisnotappropriate,becauseanimportantdecisionwouldbemadewithoutalloftherelevant,availableinformation.Whendecisionqualityisimportantandsubordinatesdonotsharetheleader'sconcernfortaskgoals,agroupdecisionisnotappropriate,becausetheseprocedureswouldgivetoomuchinfluenceoveranimportantdecisiontouncooperativeorevenhostilepeople.Whendecisionqualityisimportant,thedecisionproblemisunstructured,andtheleaderdoesnotpossessthenecessaryinformationandexpertisetomakeagooddecision,thenthedecisionshouldbemadebyinteractionamongthepeoplewhohavetherelevantinformationWhendecisionacceptanceisimportantandsubordinatesareunlikelytoacceptanautocraticdecision,thenanautocraticdecisionisnotappropriate,becausethedecisionmaynotbeimplementedeffectively.NormativeDecisionModel(6of9)Table4.2DecisionRulesintheNormativeDecisionModel(continued)Whendecisionacceptanceisimportantandsubordinatesarelikelytodisagreeamongthemselvesaboutthebestsolutiontoanimportantproblem,autocraticprocedures(A-1,A1-1)andindividualconsultation(C-1)arenotappropriate,becausetheydonotprovidetheopportunitytoresolvedifferencesthroughdiscussionandnegotiationamongsubordinatesandbetweenthesubordinatesandtheleader.Whendecisionqualityisnotimportantbutacceptanceisimportantandunlikelytoresultfromanautocraticdecision,thentheonlyappropriateprocedureisagroupdecisionbecauseacceptanceismaximizedwithoutriskingquality.Whendecisionacceptanceisimportantandnotlikelytoresultfromanautocraticdecision,andsubordinatessharetheleader'staskobjectives,subordinatesshouldbegivenequalpartnershipinthedecisionprocessbecauseacceptanceismaximizedwithoutriskingquality.NormativeDecisionModel(7of9)Table4.3SimplifiedVersionoftheNormativeDecisionModelSubordinateAcceptanceofDecisionDecisionQualityNotImportantorAssuredwithAutocraticDecisionImportantandNotAssuredwithAutocraticDecisionNotImportantAUTOCRATICGROUPImportant,theleader

has

sufficient

information,and

membersshareleader’s

goalsAUTOCRATICGROUPImportant,theleaderhas

sufficient

information,but

membersdonot

sharetheleader’sgoalsAUTOCRATICCONSULTATIONNormativeDecisionModel(8of9)Table4.3SimplifiedVersionoftheNormativeDecisionModel(continued)SubordinateAcceptanceofDecision(continued)DecisionQualityNotImportantorAssuredwithAutocraticDecisionImportantandNotAssuredwithAutocraticDecisionImportant,theleader

lacks

essential

information,and

members

shareleadergoalsCONSULTATIONGROUPImportantandtheleader

lacks

essential

information,but

membersdon’tshareleadergoalsCONSULTATIONCONSULTATIONBasedonYukl(1990).NormativeDecisionModel(9of9)EvaluationoftheTheoryThenormativedecisionmodelisprobablythebestsupportedofthecontingencytheoriesofeffectiveleadership.GuidelinesforParticipativeLeadership(1of3)DeterminingtheFeasibilityofParticipationEvaluatehowimportantthedecisionisIdentifypeoplewithrelevantknowledgeorexpertiseEvaluatelikelycooperationbyparticipantsEvaluatelikelyacceptancewithoutparticipationEvaluatewhetheritisfeasibletoholdameetingGuidelinesforParticipativeLeadership(2of3)Table4.4GuidelinesforParticipativeLeadershipHowtoDiagnoseDecisionSituations:Evaluatehowimportantthedecisionis.Identifypeoplewithrelevantknowledgeorexpertise.Evaluatelikelycooperationbyparticipants.Evaluatelikelyacceptancewithoutparticipation.Evaluatewhetheritisfeasibletoholdameeting.GuidelinesforParticipativeLeadership(3of3)Table4.4GuidelinesforParticipativeLeadership(continued)HowtoEncourageParticipation:Keeppeopleinformed.Encouragepeopletoexpresstheirconcerns.Describeaproposalastentative.Recordideasandsuggestions.Lookforwaystobuildonideasandsuggestions.Betactfulinexpressingconcernsaboutasuggestion.Listentodissentingviewswithoutgettingdefensive.Trytoutilizesuggestionsanddealwithconcerns.Showappreciationforsuggestions.Delegation(1of4)VarietiesofdelegationDelegationinvolvesassignmentofnewanddifferenttasksorresponsibilitiestoasubordinateDelegation(2of4)PotentialBenefitsfromDelegationTable4.5PercentofManagersWhoRatedaReasonforDelegatingAsModeratelyorVeryImportantBlankPercentageDevelopsubordinateskillsandconfidence.97%Enablesubordinatestodealwithproblemsquickly.91%Improvedecisionsbymovingthemclosetotheaction.89%Increasesubordinatecommitmenttoatask.89%Makethejobmoreinterestingforsubordinates.78%Reduceyourworkloadtomanagetimebetter.68%Satisfysuperiorswhowantyoutodelegatemore.24%Getridoftedioustasksyoudon’twanttodo.23%AdaptedfromYukl&Fu(1999).Delegation(3of4)ReasonsforLackofDelegationTable4.6PercentageofManagersWhoRatedaReasonforNotDelegatingAsModeratelyorVeryImportantBlankPercentageKeepdecisionsinvolvingconfidentialinformation.87%Keeptasksanddecisionsthatareveryimportant.76%Keeptasksanddecisionscentraltoyourrole.73%Keeptasksforwhichmistakesarehighlyvisible.58%Keeptasksyoucandobetterthansubordinates.51%Keeptasksthataredifficulttoexplaintosubordinates.43%Keeptasksthataredifficulttomonitor.39%Keeptasksthatareinterestingandenjoyable.24%AdaptedfromYukl&Fu(1999).Delegation(4of4)ResearchonConsequencesofDelegationLessempiricalresearchisavailableonleaderdelegationthanonleaderconsultationwithindividualsoragroupGuidelinesforDelegating(1of4)WhattoDelegateDelegatetasksthatcanbedonebetterbyasubordinateDelegatetasksthatareurgentbutnothighpriorityDelegatetasksthatarerelevanttoasubordinate’scareerDelegatetasksofappropriatedifficultyDelegatebothpleasantandunpleasanttasksDelegatetasksnotcentraltothemanager’sroleGuidelinesforDelegating(2of4)Table4.7GuidelinesforWhattoDelegateTasksthatcanbedonebetterbyasubordinateTasksthatareurgentbutnothighpriorityTasksrelevanttoasubordinate’scareerTasksofappropriatedifficultyBothpleasantandunpleasanttasksTasksnotcentraltothemanager’sroleGuidelinesforDelegating(3of4)HowtoDelegateSpecifyresponsibilitiesclearlyProvideadequateauthorityandspecifylimitsofdiscretionSpecifyreportingrequirementsEnsuresubordinateacceptanceofresponsibilitiesInformotherswhoneedtoknowMonitorprogressinappropriatewaysArrangeforthesubordinatetoreceivenecessaryinformationProvidesupportandassistance,butavoidreversedelegationMakemistakesalearningexperienceGuidelinesforDelegating(4of4)Table4.8GuidelinesforHowtoDelegateSpecifyresponsibilitiesclearly.Provideadequateauthorityandspecifylimitsofdiscretion.Specifyreportingrequirements.Ensuresubordinateacceptanceofresponsibilities.Arrangeforthesubordinatetogetnecessaryinformation.Providesupportandassistance,butavoidreversedelegation.Monitorprogressinappropriateways.Makemistakesalearningexperience.PsychologicalEmpowermentTheoriesofpsychologicalempowermenthelptoexplainwhenandwhyeffortstoempowerpeoplearelikelytobesuccessful.FourdefiningelementsMeaningSelf-determinationSelf-efficacyImpactParticipativeleadershipanddelegationarenottheonlytypesofleadershipbehaviorthatcanhelpmakepeoplefeelempoweredEmpowermentProgramsLeadersSelectionandAssessmentFormalDecisionProceduresSharedLeadershipResponsibilitiesInformationSharingExampleofaCreativeEmpowermentProgramBenefitsofEmpoweringLeadershipandPrograms(1of3)Table4.9ConditionsFacilitatingPsychologicalEmpowermentConditionUnfavorableFavorableOrganizationstructureHighcentralizationandformalizationVerydecentralized,lowformalizationCompetitivestrategyLow-cost,standardproductorserviceCustomized,highlyDifferentiatedproduct/serviceTaskdesignandtechnologySimple,repetitivetaskandreliabletechnologyComplex,nonroutinetask,unreliabletechnologyDurationofrelationwithcustomers/clientsBrieftransactionsduringashorttimeintervalRepeatedinteractioninacontinuingrelationshipBenefitsofEmpoweringLeadershipandPrograms(2of3)Table4.9ConditionsFacilitatingPsychologicalEmpowerment(continued)ConditionUnfavorable