Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.
Developing Your Own Career Goal
Prior to beginning work on this interactive assignment, read Chapters 5 and 6 and Gleeson’s article
How Values-Based Leadership Transforms Organizational Cultures (Links to an external site.)
. After completing your career goal using the process below, you will attach it to your first post by Day 3.
My Goal Sheet
Many individuals may not know how to develop a career goal; follow the steps below to help you determine where to start. There are a few steps that can be helpful in determining your career goal, which include conducting a self-assessment, exploring industries and careers, and determining factors that are non-negotiable (e.g., geographic location, salary requirements, health care benefits, etc.). The final step of goal setting is writing the first draft of your goal.
Step 1: Self-Assessment
- What do you do well?
- What energizes you?
- If you knew you could not fail, what would you do?
- What high school subjects did you do well in?
- What issues do family and friends come to you for help?
- What do you receive praise for at work or home?
- What are some of your greatest accomplishments?
- What is something you do where you lose track of time when you are doing it?
Step 2: Career Exploration
Explore job industries by researching the type of careers that use your interests and skillset.
O*Net OnLine (Links to an external site.)
, the
Occupational Outlook Handbook (Links to an external site.)
, and
Bureau of Labor Statistics (Links to an external site.)
are great web resources for career exploration, job analysis, and education requirements.
While deciding on a goal, consider your current lifestyle and where you would like to be in the future. Some helpful questions to consider are listed below.
- Does the career you want pay a salary that meets your needs?
- Will it offer you opportunities to advance?
- Are you comfortable sitting at a desk all day, or do you prefer to travel?
- Is the career you are considering likely to exist when you are ready for a job?
Step 3: Determining Your Non-Negotiable Items
Although we may not speak them aloud, we each have things we are not willing to compromise on. During this step, write out your must-haves for your future career.
To help get you started, think about the minimum salary you need to have, where you want to live, and desired work hours.
Must Have
Do Not Want
1.1.2.2.3.3.4.4.5.5.
Step 4: Pulling It All Together—Write the First Draft of Your Goal
Now that you have conducted a self-assessment, explored industries and occupations, and written down your non-negotiable items, what are your future career goals? Be as specific as possible.
Example Career Goal
I would like to become a project manager within a large organization (5000+ employees) utilizing my organizational skills, education in organization development, my ability to plan strategically, and my detail-oriented nature. Since I have a family, I must have a salary of $50,000 or more, work within 25 miles of Houston, Texas, and work a 9:00 a.m. to 5:00 p.m. traditional work schedule.
Attach your paper as part of your first discussion post.
The Leading Function
Learning Objective
s
After completing this chapter, you should be able to:
• Discuss the functions of leading through the use of power, leadership, and motivation.
• Apply theories of leadership to various management circumstances.
• Motivate employees to achieve at high levels.
5
Mediaphotos/iStock/Thinkstock
Introduction Chapter 5
5.1 Introduction
One fundamental goal of effective leadership involves obtaining extraordinary results from ordi-
nary people. Leading, in a business context, consists of all activities undertaken to help peo-
ple achieve the highest level of performance. This chapter presents three main topics related to
leading:
1. The use of power
2. Leadership
3. Motivation
The process of leading integrates these three concepts into a series of coordinated activities
designed to achieve higher levels of performance. In addition, Chapter 6 examines the roles that
teams and groups play in leading, along with ideas related to communication at the individual
and system-wide levels.
Leadership entails influencing behaviors in organizations. Effective leaders influence behaviors
in positive ways. Ineffective leaders also influence behavior, but they do not achieve desirable
results. Leadership takes place at all levels in many organizations. Leadership as a concept can be
interpreted in various ways. To different individuals, leadership can be exhibited as vision, enthu-
siasm, trust, courage, passion, coaching, developing others, intensity, love, and even serving as a
parent figure. Effective leaders use every tool at their disposal to help others achieve their goals,
as we will see in this chapter.
Leading Versus Managing
The terms leading and managing are often used interchangeably; however, there are differences.
Harvard Business School professor John Kotter (2001) suggests that one is not better than the
other, but rather that the two concepts are actually complementary. He suggested two differences
between leading and managing:
1. Managing is about coping with complexity.
2. Leadership is about coping with change.
Managing as Coping With Complexity
Management is necessary because without it, organizations may become riddled with chaos.
Indeed, a company without effective management is destined to fail. One significant reason man-
agers are necessary to a company is that those in management processes deal with complexity
throughout the organization in vital ways:
• Managers do what needs to be done through planning and budgeting.
• Managers provide people to accomplish organizational agendas through organizing and
staffing.
• Managers help ensure that people can do their jobs through control processes and problem
solving.
Planning and budgeting activities take care of what needs to be done. These activities establish
goals for the future, prescribe methods to achieve those goals, and provide the resources necessary
Introduction Chapter 5
M A N A G E M E N T I N P R A C T I C
E
Aetna’s John Rowe: Transformational Leadership
You have probably heard that “one person can make a difference.” In the case of Aetna Insurance,
the “one person” was John Rowe, who took the reins of the company in a time of crisis. When
Rowe arrived, Aetna was losing $1 million per day. Five years later, the same company enjoyed prof-
its of over $1.4 billion.
As a health and medical insurance company, Aetna had gotten into trouble due to poor relation-
ships with every key group served by the company. A series of doctors and health care providers
had become so disenchanted with the firm that they filed a class action lawsuit over unsavory bill-
ing practices. The problems quickly extended to patients and plan sponsors. Eventually, company
employees became demoralized.
Rowe began by distinguishing between management
and leadership. He believed that to operate effectively,
a leader had to be self-aware and know his or her
strengths and weaknesses. In his own case, Rowe was
self-confident enough to select people with comple-
mentary talents and expertise. He also had to remove
nearly 75% of the former staff.
Rowe’s leadership style began with a strategic vision to
rebuild the organization by rebuilding relationships. He
knew it would take time.
To improve relations with physicians, Rowe went against
a great deal of advice and quickly settled the lawsuits
related to billing practices. He was highly criticized due
to the already existing cash problems in the company,
but the effort paid off.
The next step was to rebuild relationships with Aetna’s
customers. Rowe established tactics to deliver high-
quality insurance and supporting services. He redirected
employees toward the culture that had built the com-
pany in the first place. That culture was based on integ-
rity and protection of the company’s customers.
To return to the core culture, Rowe relied on constant communication. As he put it, “A company
cannot communicate too much. If I’d done the managerial tasks, I wouldn’t have been out com-
municating.” The outcome from his efforts was that Fortune magazine gave Aetna the Turnaround
of the Year Award. John Rowe has moved on from Aetna, but the sound principles he established
through his transformational style of leadership continued to pay dividends well beyond his tenure
with the company (Katzenbach Partners, 2006; Clow & Baack, 2010, pp. 395–396).
Discussion Questions
1. How was John Rowe distinguishing between managing and leading?
2. Rowe began by fixing relationships with outside groups and then worked on those within the
firm. Was this a risky approach? Explain your reasoning.
3. Explain why you think this style of leadership would or would not be effective in all types of
companies.
Victoria Arocho/Associated Press
▲▲ John Rowe was able to restore
trust between Aetna and health care
providers.
Introduction Chapter 5
to accomplish them. Planning focuses employees on the future and gives them a stronger sense of
direction, because they know how their efforts fit into the overall design of the company.
Organizing and staffing are the functions that carry out the process of finding people to accom-
plish organizational agendas. Management accomplishes its plans and goals through effective
organizing and staffing. Creating organizational structures and hiring qualified people to fill the
needed roles are key parts of management.
Ensuring that people do their jobs occurs through controlling and problem solving. To reach
organizational goals, managers monitor results by comparing the plan in detail and by producing
reports, holding meetings, and using other reporting mechanisms. They then identify and solve
problems as they arise.
Leading as Coping With Change
As the business world continues to change, grow, and evolve, it is no longer enough to conduct
business the way it has always been done. Many changes are often needed for organizations to
survive and grow in an ever-increasing, competitive global market. Making necessary changes
even when they involve difficult decisions is at the very heart of leadership. Kotter (2001) identi-
fied three ways that leaders deal with change. Note the subtle differences between managing
complexities and coping with change:
1. Do what needs to be done by providing direction.
2. Provide the people to accomplish organizational agendas by aligning people.
3. Ensure that people do their jobs by motivating and inspiring them.
Leaders provide the direction in order to do what needs to be done. Leaders set the stage for posi-
tive change by providing direction. Top-level leaders and managers develop a vision for the future
of the organization in conjunction with strategies for realizing the needed changes.
Providing the people to accomplish organizational agendas is the result of a leader’s ability to
align people. While managers focus on organizing and staffing people, leaders focus more on
aligning people. Leaders communicate a new direction to people to help in understanding the
vision and to build the necessary change agents that will help realize the vision.
Leaders ensure that people do their jobs by motivating and inspiring them. While managers
concentrate their efforts on controlling and problem solving, leaders focus on trying to achieve
their vision by motivating and inspiring. They tap into employees’ values and emotions. Leaders
attempt to keep people moving the change initiative forward despite the obstacles that arise.
Managers hold the legitimate power that we will look at next. It comes from the positions they
hold within their organizations. Possessing this power allows them to hire, fire, reward, and pun-
ish. Many managers plan, organize, and control, but they do not necessarily have to exhibit the
characteristics required to be leaders.
Some view the leadership function as being more visionary than that of management. Leaders
inspire others, provide necessary emotional support, and work to rally employees around a com-
mon goal or vision. Leaders also create a vision and strategic objectives for the organization,
while managers are tasked with implementing the vision and strategic objectives.
Ideally, a person in a managerial role has both management skills and leadership skills.
Organizations count on both skill sets to accomplish objectives and continue operations.
Introduction Chapter 5
Leading as Ethical Role Models
Beyond Kotter’s conceptualizations that leaders cope with complexity as well as with change,
one important dimension remains: Leaders either serve, or fail to serve, as ethical role models in
organizations. Leaders hold the responsibility of balancing the interests of a variety of stakehold-
ers and constituents, including investors, employees, suppliers, customers, and even rival orga-
nizations. Various writers have noted the relationships between leadership with regard to ethical
role modeling as opposed to leadership as a political force or tool. In ethical role modeling, the
leader seeks to foster good citizenship in those who follow by example and to assist followers in
achieving their goals (Kacmar, 2011). In leadership as a political force, the leader seeks to achieve
his or her own personal ends, even at the expense of followers and others (Neubert et al., 2009).
The case can be made that ethical activities consti-
tute the primary element of a leader’s set of tasks.
Those who fail in their ethical responsibilities can
have a negative impact on the organization for
many years. Those who build an ethical climate
help foster circumstances in which both individu-
als and the overall organization can achieve long-
term success.
Leadership and Power
One significant part of leadership presents a key
challenge: the exercise of power in the context of a
business. Almost everyone has encountered some-
one who is “into power” and exerts it at any oppor-
tunity. These people generate resentment, which
inhibits their ability to lead. Thus, to have a more
complete understanding of leadership, we need to
examine the concept of power. Power is control over
formal and informal means of influence. Within
organizations, leaders may use five sources of power,
or means of influence: legitimate, reward, coercive,
expert, and referent power (French & Raven, 1959).
Legitimate Power
Legitimate power arises from an individual’s formal position in an organization. Managers hold
legitimate power over their employees due to their positions in the organizational hierarchy.
Those at the highest rank (CEO and vice presidents) possess the greatest degree of legitimate
power. The major factor with legitimate power, regarding its impact on a leader’s effectiveness, is
how the manager uses it. Some seek to achieve organizational goals while others try to demon-
strate personal authority, which can be counterproductive to their ability to lead.
Reward Power
Power rests with those who can influence behavior by promising or providing rewards. Managers
possess reward power that results from their authority to reward employees. Organizational
rewards range from praise to pay raises and from recognition to promotions. One way a manager
can reward an employee is with a simple and sincere thank-you. Reward power also has infor-
mal sources. Someone who lets you in on key organizational gossip is also using reward power.
Courtesy Everett Collection
▲▲ Charismatic leaders like Martin Luther King Jr.
might be said to possess a great deal of referent
power.
Introduction Chapter 5
Informal groups reward people by including them in group activities. The individual who decides
who is and is not included in a formal or informal group’s activities has access to reward power.
Coercive Power
The ability to influence behavior by threatening or punishing creates coercive power. Managers
possess the coercive power that results from the ability to punish employees through verbal or
written reprimands, demotions, or even termination. Some organizations also allow managers
to fine or suspend subordinates. Coercive power can easily be misused. Managers who are con-
stantly negative and punishing quickly produce resentment and ill will among employees.
The informal side of coercive power can be equally damaging. Any person who can make a
coworker the butt of jokes or harass someone through intimidation exerts coercive power. Part of
being an effective leader includes eliminating this type of coercive activity on the job. Remember
that those who engage in negative coercive power often experience a backlash from coworkers
and supervisors. No one likes being bullied, whether on the job or elsewhere.
Expert Power
Some workers are able to influence behavior due to their expertise. Expert power emerges from
specialized information or expertise, which can take different forms. Knowing answers to ques-
tions can make you appear to be an expert. One person who can possess expert power is an
administrative assistant, especially if that individual has been in the position a long time and
knows all the necessary contacts. Expert power can also stem from having specialized knowledge
such as medical or technology expertise. Informal power also results from expertise when people
see someone as a role model or mentor.
Referent Power
Referent power results from a person’s attributes. This type of power characterizes strong, vision-
ary leaders who are able to influence their followers by their personality, attitudes, and behaviors.
Referent power can lead to being promoted through the formal organization or to becoming an
informal leader among peers. Being well liked by others creates referent power, even at the lowest
ranks in an organization.
In summary, legitimate power has only a formal side. The other four kinds of power—reward,
coercive, expert, and referent—have both formal and informal sources and uses. An important
part of leadership involves influencing the behaviors of other people. Power can be used to lead
others to get things done. It is the ability to make things happen for the good of the group.
Other Sources of Power
Additional sources of power have been identified by various authors:
• French and Raven: legitimate, reward, coercive, expertise, referent
• The Aston Group: closeness to production
• J. D. Thompson: boundary spanning
• Others: control over policy making; control over funding decisions; control over
status symbols
The Aston Group (Hickson, Hinings, Lee, Schneck, & Pennings, 1971) suggests that any person
or group with control over the production process possesses a great deal of power. This view-
point explains the power labor unions hold due to the ability to employ tactics such as strikes
and work slowdowns that can inhibit the production process. It also suggests that support staff
Leadership Theories Chapter 5
positions not directly related to the production process (such as janitorial) will have substantially
less power.
J. D. Thompson (1967) argues that anyone who serves as a go-between has boundary-spanning
power. Someone who bargains with other organizations, including suppliers, retail outlets, and
the government, has power by translating the uncertainty that has been created by external
forces. When the government investigates a business practice, the person dealing with govern-
mental authorities has power. Boundary spanning also takes place across internal boundaries.
Mediators who negotiate between union leaders and management have power because they have
access to both sides. Also, a manager who resolves differences between internal departments
holds boundary-spanning power by having access to information from both sides of the dispute.
Control over policies, funding, and status symbols also generates power. These factors influence
the conduct of work and employee jobs. Individuals with control over them can exert power.
Effective leaders use that power wisely. The use of power may be found in various leadership theo-
ries. In the next section, the ability of a leader to build positive relationships with subordinates
through the effective use of power is implied by some of the modern theories that have become
popular in the academic and professional worlds.
5.2 Leadership Theories
The ability to lead has been observed and
reported on for centuries. Many ancient
writings tell tales of leaders who served
in battle, commanded nations, or taught
religious ideas. More recently, researchers
seeking to identify leader characteristics,
as well as develop programs to train leaders
and improve their skills, have studied lead-
ership. Four main categories of leadership
theories have appeared in the literature
over time:
1. Trait theories
2. Behavioral theories
3. Situational theories
4. Transformational theories
Trait Theories
Early in the study of leadership, two prevailing assumptions seemed to dominate thinking about
leadership. The first assumption was that the ability to lead is universal. In practical terms, this
means writers assumed that a person who was a successful business entrepreneur would be
equally successful as the leader of a major, established corporation, or as a military general, or
as a governor or governmental leader. In essence, leadership becomes transferrable across situa-
tions. Notice that such an assumption still exists today. Donald Trump, successful businessman,
sought to become president of the United States without any prior governmental experience, as
did Herman Cain, former CEO of Godfather’s Pizza. Both presented the idea that success in the
Justin Hayworth/Associated Press
▲▲ Donald Trump supports the concept of universal leadership.
He believes that an individual who is a successful business
leader will also be a successful political leader.
Leadership Theories Chapter 5
world of business would transfer to effective leadership of a government. In an earlier genera-
tion, military generals—such as President Eisenhower in the 1950s—were often considered to be
potential governmental leaders. War heroes Wesley Clark and John McCain also sought political
office based on military achievements.
The second assumption builds from the first: If the ability to lead is universal, then all successful
leaders must have things in common. Those “things” were assumed to be leader traits and char-
acteristics. This line of thinking became known as the great man theory of leadership. Research
could then be dedicated to discover the common traits and characteristics of all great leaders
(notice that being male would be one trait), because the theory was built on the assumption that
great men, or great leaders, were born that way.
Trait theory became the successor to the great man theory of leadership. It modified the approach
by suggesting that through experience and learning, leaders can be developed. Still, leader traits
are physical, and personality characteristics would differentiate leaders from followers (Kinicki &
Kreitner, 2009, p. 347).
These early approaches in leadership studies involved the search for universal traits that separate
effective and ineffective leaders. Table 5.1 displays the traits and characteristics that were studied
over a period of nearly 60 years.
Table 5.1 Potential traits and characteristics of effective leaders
Physical characteristics Personal traits Personality traits Social traits
height verbal skills ambition empathy
strength wisdom confidence tact
physical attractiveness judgment initiative patience
stamina intellect persistence trust
vitality capacity for work imagination status
Sources: Adapted from Baack, D. (1998). Organizational Behavior. Houston: DAME Publications, p. 282; and Yukl, G. (1981). Leadership in Organizations.
Englewood Cliffs, NJ: Prentice-Hall.
Clearly, many of these are admirable traits and personal strengths. Unfortunately, a great deal of
research indicates that they are not universal for successful leaders. They may be found in many
leaders, but leaders can be successful without them. Further, no one specific, universal trait or
characteristic is found in every leader.
The Big Five
In more recent times, researchers have discovered the presence of certain traits associated with
leadership and employee performance on the job. The five-factor model of personality, or what is
often called the Big Five, suggests that the following factors contribute to the ability to lead:
1. Extraversion. This factor covers a person’s comfort level with relationships. People who are
extroverts tend to be outgoing, assertive, and sociable. Introverts tend to be reserved, timid,
and quiet.
2. Agreeableness. This factor refers to the tendency to defer to others. Highly agreeable people are
cooperative, warm, and trusting. People who are less agreeable tend to be disagreeable, cold,
and untrusting.
Leadership Theories Chapter 5
3. Conscientiousness. This factor refers to reliability. A highly conscientious person is respon-
sible, organized, and persistent. Less conscientious people are easily distracted, disorganized,
and unreliable.
4. Emotionally stable. This factor refers to a person’s ability to deal with stress. Emotionally stable
people tend to be calm, self-confident, and secure. Less emotionally stable people tend to be
nervous, anxious, depressed, and insecure.
5. Open to different experiences. This factor refers to a person’s range of interests and fascination
with unique experiences and adventures. Open people are creative, curious, and ask many
questions. People who are less open tend to be conventional, a bit rigid, and like the status quo
(Goldberg, 1993).
Of these factors, extraversion appears to be the best predictor of managerial performance, due to
the high degree of social interaction involved (Barrick & Mount, 1991). The Big Five also appeared
to be closely related to job performance, most notably in the area of conscientiousness. At the
same time, to be most effective, leaders must recognize the importance of displaying an appro-
priate mix of the Big Five traits, because an overreliance on any one trait can result in less than
optimal personal and organizational performance.
Attribution Models
Attribution theory is an umbrella term that covers a series of theories. It is based on the concept
that people cannot see what might be termed the “real world.” Instead, perceptions hold the key to
what people believe they have observed. These observations lead to attributions, or beliefs about
cause and effect. A simple attribution would be, “If I eat right and exercise, I will lose weight.”
Remember, however, that an equally plausible attribution is, “No matter what I do, I can’t lose
weight.” Both are valid attributions because these perceptions are simply based on an individual’s
experience of reality.
The attribution model of leadership seeks to discover the cause–effect relationships that apply to
leaders or potential leaders. It can be summarized as follows:
1. Every individual has what is essentially an implicit theory of leadership, which represents his
or her thoughts about the nature of, and traits displayed by, effective leaders.
2. Individuals constantly test their own theories and attributions. Figure 5.1 displays such a test.
3. If the test is confirmed, as shown in the two boxes of Figure 5.1, two personal attributions are
strengthened:
• the individual’s belief about the specific person’s ability to lead or not lead
• the individual’s attribution about the nature of an effective leader
4. If the test is refuted, as shown in the boxes of Figure 5.1, the individual will
• modify his or her theory
• ignore the test
The essence of each person’s theory is the observation of behaviors. Most of these behaviors
reflect leader traits and characteristics. When someone is promoted to the role of leadership,
elected to a role such as governor or president, or made a high-ranking manager in a company,
each person decides if that individual “acts like a leader.” Over time, evidence will surface to indi-
cate whether the individual was a success or failure. Those who predicted success and observe
success experience confirmed attributions. Those who predicted failure and observe failure also
Leadership Theories Chapter 5
experience confirmed attributions. They then believe they were right about the person involved
as well as their understanding of leadership.
When a test does not reveal accurate results, the attribution is refuted. The person will either
modify his or her own personal theory to account for new circumstances or simply ignore the
results of the test. For example, think about the most recent presidential election. You probably
studied the two candidates and concluded one was the better choice because that individual
appeared to be the “most presidential,” based on the person’s traits and characteristics. If your
choice was elected, four years would pass and then you would be able to pass judgment. If you
predicted that your president would be successful and the country did well during his adminis-
tration, then a confirmed attribution would lead you to say, “I was right about the traits and char-
acteristics a president needs, and I was right when I chose my candidate, because he had those
traits and characteristics.” Conversely, if your candidate won, but experienced failure over the
next four years, then the test of your idea was refuted. In that instance, you would either modify
your views about what is needed to become a successful president or ignore the case, possibly by
saying, “It was Congress’s fault he couldn’t get anything done.”
On the other hand, if the other candidate won, you would predict failure, because the candidate
did not display the traits and characteristics you thought were needed. If that candidate did
indeed fail, another confirmed attribution took place. If, however, the candidate succeeded, you
would be in the same situation: modify your views on what is needed to become a successful
president or ignore the case, attributing the success to luck or some other variable.
f05.01_MGT330.ai
Success
Confirmed
Attribution
Refuted
Attribution
Refuted
Attribution
Confirmed
Attribution
PREDICTION
Failure
Fa
ilu
re
Su
cc
es
s
R
EA
L
O
U
TC
O
M
E
Figure 5.1 Test of attribution
Leadership Theories Chapter 5
The attribution model helps us understand who is most likely to be promoted or moved into a
leadership role. And this is the person who is perceived as having characteristics of a successful
leader, especially if that leader was the person being replaced. Unfortunately, many character-
istics associated with effective leadership have no basis in fact. Height, attractiveness, gender,
race, and other traits have already been discounted as universal leadership qualities (Baack, 1998,
pp. 283–284; Myers, 1990).
Still, trait theories remain popular to this day. People apparently wish to believe something uni-
versal about leadership exists. To the contrary, effective leaders come in all shapes, sizes, nation-
alities, age groups, levels of attractiveness, and gender. It is not useful to continue with stereotypes
that hold no basis in fact. There is some evidence, for example, that the Big Five are common in
effective leaders, although not in every single case.
Behavioral Theories
The onset of World War II resulted in a series of new leadership research initiatives in the United
States. The types of theories that emerged have been characterized as the behavioral era of lead-
ership study (Yukl, 1981). Two studies that provided a new foundation to the investigation of
leadership behavior were conducted at the University of Michigan and The Ohio State University.
The University of Michigan Study
In the late 1940s, researchers at the University of Michigan developed what came to be known
as the University of Michigan Leadership Model. A team studied the effects of leader behavior
on job performance by interviewing a number of managers and subordinates. As a result of their
research, the investigators identified two leadership styles: job centered and employee centered
(Likert, 1961).
Job-centered behaviors occur when managers pay more attention to the job and related work
behaviors. Their principal concerns are meeting production goals, keeping costs in line, and
meeting schedules. The researchers discovered that some manager-leaders tend to focus more on
tasks and less on their employees.
Employee-centered behaviors take place when managers pay more attention to employee satisfac-
tion and making work groups more cohesive. By focusing on employees’ needs, managers seek
to build effective and high-achieving work groups. Again, some manager-leaders tend to favor
employees over the tasks involved.
The net result was that these studies identified two types of leader behaviors. These categories
could then be applied to more complex leadership theories over time.
The Ohio State Study
Another study that examined leadership behavior took place at Ohio State University (Stogdill &
Coons, 1957). From surveys of leadership behavior, two major dimensions of leader behavior were
identified: initiating structure and consideration (Shartle, 1979).
Initiating structure is a set of leadership behaviors that organize and define what group mem-
bers should be doing. It involves the efforts the leader makes to get things done, such as providing
instruction, offering feedback (positive and negative), and rewarding productivity. This dimen-
sion is similar to the job-centered behaviors identified in the University of Michigan study.
Consideration is a set of leadership behaviors that expresses concern for employees by establish-
ing a warm, supportive, friendly climate. This behavior, which is similar to employee-centered
Leadership Theories Chapter 5
behavior identified in the University of Michigan study, is sensitive to employee ideas, feelings,
and trust.
The Ohio State University study leaders concluded that effective leaders demonstrated both
initiating structure and consideration. Effective leaders tended to have positive, supportive,
employee-centered relationships and used group rather than individual methods of supervision
that encouraged setting high performance goals. At the same time, they were able to focus on the
accomplishment of tasks.
Situational Theories
In the 1950s, the concept emerged that no single universal style of leadership is effective. Instead,
leaders can be chosen because they “fit” a situation or can adapt their leadership styles to indi-
vidual circumstances. As a result, theories in this area are known as the situational approaches
to leadership.
Theory of Leader Effectiveness
Robert Tannenbaum and Warren Schmidt (1973) were among the first to suggest the third key
leadership variable: effectiveness. Their view of leadership expresses leader style based on the
delegation of authority. At one extreme, an authoritarian leader retains total control. At the other
is the leader who pushes for employee par-
ticipation and autonomy. In between, vary-
ing degrees of delegation of authority would
dictate the amount of production-oriented
or people-oriented leadership that would be
most effective.
William Reddin (1970) identified the two
main dimensions of leadership as being
relationship oriented and task oriented. In
a manner similar to the original Ohio State
studies, Reddin combined the two orienta-
tions to create four outcomes. Reddin pre-
scribed the same concept as Tannenbaum
and Schmidt—that the potential for effec-
tiveness should determine the mix of task
and relationship orientation.
To apply the situational approach, consider various situations. A sergeant in the military must
insist on compliance to regulations and orders. Consequently, the approach that would appear
to fit would be more authoritarian in nature. In contrast, the director of production of a theatri-
cal play would probably find an authoritarian approach would inhibit creativity and reduce the
quality of the performance. Instead, the leader would find participation and autonomy to be the
most valuable. As a leader, your first responsibility is to investigate the nature of the situation you
are about to manage or lead and then adjust your style to the specifics of that situation. Even in
the same industry, such as restaurants, degrees of authority might be adjusted for leaders direct-
ing those preparing fast-food meals as opposed to highly talented and creative chefs in high-end
establishments.
Alexey Klementiev/© Kuzma/Thinkstock
▲▲ Some situations, such as leading troops in the military,
require an authoritarian style of leadership.
Leadership Theories Chapter 5
Fiedler’s Contingency Model
Fred E. Fiedler’s (1967, 1974) contingency model also suggests that leadership success depends on
a match between the leadership style and the demands of the situation. Rather than try to train
leaders to adapt to a new style, Fiedler believes that leaders should match their styles with situa-
tions that are the best fit.
According to the theory, people’s leadership styles tend to be either task or relationship oriented.
To determine which style a firm’s leaders tend to exhibit, they may be given a least preferred
coworker (LPC) test. The test asks respondents to think about the coworker they like the least.
Then, they are presented with a set of adjective choices from two extremes, such as friendly or
unfriendly and accepting or rejecting. The more times a respondent answers with a positive adjec-
tive ( friendly, accepting), the higher that leader’s LPC score. Thus people-oriented leaders tend to
get high scores on the test, and production-oriented leaders get generally low LCP scores. Fielder
(1967, 1974) suggests that neither style is effective all the time; instead, each is most effective
when used in the right situation. To effectively diagnose leadership situations, three contingency
variables must be identified:
1. Leader–member relations. The extent to which a leader has, or does not have, the support and
loyalty of the work group.
2. Task structure. The extent to which tasks are routine, unambiguous, and easily understood.
The more structured a task is, the more influence a leader holds.
3. Position power. The degree of power a leader has to reward and punish. More power equates to
more control and influence.
Using these three dimensions, Fiedler constructed the “dimension of favorability,” as shown
in Figure 5.2. The research Fiedler and many others conducted led to the construction of the
f05.02_MGT330.ai
High
D
im
en
si
o
n
o
f
Ef
fe
ct
iv
en
es
s
Low
Low LPC
High LPC
Most
Favorable
Most
Unfavorable
Mixed
Situational Favorability
Low vs. High
Low vs. High
Low vs. High
Leader-Member Relations
Task Structure
Position Power
Situational Favorability
Based on:
(Where: High = Most Favorable)
Source: Adapted from Fiedler, F. E. (1974, Autumn). The Contingency Model—New Directions for Leadership Utilization, Journal of Contemporary Business.
Figure 5.2 Fiedler’s contingency theory results
Leadership Theories Chapter 5
“dimension of effectiveness.” As shown in the figure, at the two extremes, effectiveness is higher
for production-oriented leaders. In mixed favorability situations, people-oriented leaders become
more likely to succeed. The concept was that managers should understand their situations and
then restructure that situation to fit personal leadership styles.
The contingency theory approach generated considerable debate regarding its value. The primary
complaint was that most leaders would be unable to truly restructure their situations, thus giving
the theory little practical value. Also, a series of challenges to the research methods were raised.
Contingency theory moved the study of leadership more into the realm of collecting and ana-
lyzing data to support or refute various propositions. It also added to our understanding of the
conditions under which leaders operate.
Hersey and Blanchard’s Situational Leadership Model
The situational theory leadership model described by Paul Hersey and Ken Blanchard (Blanchard,
Hersey, & Natemeyer, 1979) reflects how a leader should adjust his or her leadership style accord-
ing to the readiness of the followers. The model suggests that a leader should be flexible in choos-
ing a leadership behavior style and become sensitive to the readiness of the follower. Readiness
refers to the extent to which a follower possesses the ability and readiness to perform a given task.
Employees with a high level of readiness require a different leadership style than do employees
with a low level of readiness. Table 5.2 identifies the possible leadership styles that result from
different combinations of task-oriented and relationship behaviors.
Table 5.2 Matching situations to leader styles
Situation characteristics Leadership style
High task behavior/low relationship Telling and directing
High task behavior/high relationship Selling and coaching
Low task behavior/high relationship Facilitating and counseling
Low task behavior/low relationship Delegating
A manager who employs the telling and directing style uses one-way communication patterns in
which the leader tells the follower what, how, when, and where to accomplish various tasks. The
style best fits when the work to be performed is straightforward and simple, and when the leader
does not wish to bond or relate to followers.
The selling and coaching style is characterized by the direction the leader provides. The leader
introduces two-way communication to get the followers to “buy into” decisions. It matches situ-
ations where the work is straightforward and uncomplicated but the leader wants to build bonds
with followers.
Leaders who display the facilitating and counseling style share decision making with followers,
because the emphasis is on building relationships. The leader exhibits facilitation behaviors, or
works to make it easier for employees to make decisions, because the followers have the ability
and knowledge to perform these tasks.
In a delegating style, the leader basically allows his or her followers to “run the show.” No strong
relationships are built, and the followers have the ability and are both willing and able to perform
the task at hand.
Leadership Theories Chapter 5
Leaders using the situational leadership approach must be able to implement alternative leader-
ship styles as needed. The model implies that if the correct styles are used in lower readiness
situations, followers will mature and grow in ability, willingness, and confidence. This allows
the followers to grow and the leader to become less directive. As you can see, the approach has a
great deal in common with earlier situational theories. It once again suggests a continuum rang-
ing from a more directive or authoritarian style at one end and a more participative and inclusive
approach at the other. Leaders must understand the situation at hand to respond correctly and
achieve the highest levels of performance.
Path–Goal Theory
Robert House (1971) proposed the path–goal theory. It suggests that an effective leader is one
who clears and clarifies paths for employees to accomplish both personal and professional goals.
Clearing the path refers to a leader who helps people move toward their goals, removes bar-
riers, and provides appropriate guidelines for accomplishing assigned tasks. House identifies
four leadership behaviors associated with the theory: directive leadership, supportive leadership,
achievement-oriented leadership, and participative leadership.
The directive leadership style is one in which the leader lets employees know what is expected
by giving directions for how and what to do. The directive leader also maintains standards of
performance, and clarifies his or her role in the group. Supportive leadership is a style in which
the leader treats group members as equals by being approachable and by showing concern for the
well-being of employees. Achievement-oriented leaders set challenging goals, expect a high level
of performance, and emphasize continuous improvement in performance. Participative leader-
ship involves including employees in decision making, consulting with employees, and imple-
menting employee suggestions when making decisions.
Path–goal leadership theory suggests that a manager should use leadership styles that comple-
ment the needs of the situation. Two contingency factors are employee characteristics and envi-
ronmental factors. Five employee characteristics include focus of control, task ability, the need
for achievement, experience, and the need for clarity. Two environmental factors are independent
task structures and interdependent task structures.
In essence, effective managers clarify paths to goals by clarifying jobs and assignments, by under-
standing the goals and desires (including preferred rewards) of employees, and then by reward-
ing successful performance with the items they value. Each employee might express a slightly
different preference in terms of rewards; therefore, the leader would need to make sure positive
outcomes are tailored to individual workers when they achieve the desired results. This simpli-
fied explanation of the model explains the primary ways to improve your leadership style (Baack,
1998, pp. 298–299).
Transformational Leadership Theory
Transformational leaders garner trust, seek to develop leadership in others, exhibit self-
sacrifice, and serve as moral agents. They tend to focus on objectives that transcend the more
immediate needs of the work group (Dumdum, Lowe, & Avolio, 2002). The following key leader
behaviors have been identified in the transformational leadership literature:
• inspirational motivation
• idealized influence
• individualized consideration
• intellectual stimulation
Leadership and Motivation Chapter 5
Inspirational motivation establishes an enticing vision of the future with persuasive and emo-
tional arguments combined with enthusiasm and optimism. Idealized influence refers to sacri-
ficing for the good of the group, acting as a role model, and displaying high ethical standards.
Individualized consideration includes providing support, giving encouragement, enabling
empowerment, and coaching employees. Intellectual stimulation means that transformational
leaders encourage employees to question the status quo and seek innovative and creative solu-
tions to organizational problems.
The transformational leader exhibits these behaviors, which can result in powerful effects on fol-
lowers and improved outcomes, as described in Table 5.3.
Table 5.3 Transformational leadership effects
Followers and work groups Outcomes
Increased intrinsic motivation, achievement orientation,
and goal pursuit
Personal commitment to leader and his or her vision
Increased identification and trust with the leader Self-sacrificial behavior
Increased identification and cohesion with group
members
Organizational commitment
Increased self-esteem, self-efficacy, and intrinsic
interest in goal accomplishment
Task meaningfulness and satisfaction
Shared perceptions of goal importance Increased individual, group, and organizational
performance
Transformational leadership theory has gained a great deal of traction in the new millennium.
Many companies believe finding such leaders and training others in these behaviors are true keys
to organizational success. In summary, notice that each category of leadership theory has con-
tributed to our understanding of the process. The trait theories indicate that while there are no
ironclad rules, certain leader characteristics may be desirable in various situations. The behav-
ioral model helps explain how certain individuals end up in leadership roles. The Ohio State
University and University of Michigan studies teach us that some leaders tend to be more inter-
ested in the job, while other leaders are more in tune with their followers. The situational theo-
ries note that sometimes company circumstances favor task-oriented leaders and at other times
a people- oriented approach works best. Path–goal theory explains the basic steps to becoming a
better leader. Transformational leadership theory builds on this idea by establishing relationships
between various behaviors and eventual organizational outcomes.
5.3 Leadership and Motivation
Another key aspect of the leading function is motivating workers. Effective leaders motivate indi-
viduals to increase the level, direction, and persistence of effort expended at work. Motivation
may be defined as what starts behaviors, what maintains behaviors, and what stops behaviors.
Leaders are interested in inspiring employees to engage in various behaviors. Table 5.4 provides
some examples.
Leadership and Motivation Chapter 5
Table 5.4 Motivated behaviors at work
Start and maintain Stop
Punctuality (arrive on time) Unhealthy habits (smoking, drugs)
Attendance (arrive every day) Unethical activities
Effort/productivity Conflicts
Cooperativeness Politics
Share information Inattentiveness
To achieve these goals, leaders can take lessons from the many types of theories of motivation.
Three categories of motivation theories are content theories, process theories, and goal-setting
theories.
Content Theories of Motivation
Content theories explain the specific factors that motivate people, most notably in the area of
human needs. They help explain what drives human behavior, because people will act to fulfill
unsatisfied needs, especially the ones they feel are the most urgent. Three major content theories
of motivation include Maslow’s hierarchy of needs, Herzberg’s motivation-hygiene theory, and
McClelland’s acquired needs theory.
Maslow’s Hierarchy of Needs
Abraham Maslow’s hierarchy of needs (1954) provides an important foundation of leadership
thinking. The model shown in Figure 5.3 employs a satisfaction-progression approach. A person
will not progress to the next level of needs until the immediate need has been routinely satisfied.
Lower-order needs include physiological needs, safety needs, and social concerns for belonging-
ness and love. Physiological needs on the job include rest breaks, physical comfort, and reason-
able work hours. Safety needs include safe working conditions, job security, base compensation,
and benefits. Social needs are met by interactions with friendly coworkers, customers, and a
supportive supervisor.
The higher order needs include self-esteem and self-actualization concerns. Self-esteem needs
include responsibility for an important job, being promoted, and receiving praise and recognition
from the leader. Self-actualization results from creative and challenging work, active participation
in decision making, and job autonomy. Self-actualization is realized only if an employee performs
tasks and work that express his or her inner self—the person the individual wishes to become.
Maslow’s hierarchy has been criticized for several reasons. Commentators suggest that the the-
ory does not explain how strongly a need must be satisfied before progression to the next level
can occur. Others suggest that this order of needs is far too rigid and that many people experi-
ence them in a far different order. For example, some people’s social needs for belongingness and
love are far more important than self-actualization. Another problem is that Maslow’s hierarchy
may not be a comprehensive list of needs. Additional needs exist, including the desire or need for
power. Finally, the theory has been criticized for being too vague and not truly explaining how
someone would seek to fulfill a need.
Leadership and Motivation Chapter 5
Despite these criticisms, Maslow’s hierarchy built the foundation for other theories of motivation.
It stresses the roles that needs play in motivation. It seems clear that, in some way, individuals
seek to meet or satisfy needs through various factors that are present in the workplace.
Herzberg’s Motivation-Hygiene Theory
Frederick Herzberg’s motivation-hygiene theory (1964), also known as the two-factor theory, pro-
posed that work satisfaction and dissatisfaction arise from two different factors. Work satisfac-
tion is associated with motivating factors, and work dissatisfaction comes from hygiene factors.
Hygiene factors are those things not directly related to the actual work done, but they play a criti-
cal role in either creating or preventing employee dissatisfaction. Table 5.5 presents the hygiene
factors and the motivation factors.
Table 5.5 Herzberg’s two-factor theory
Hygiene factors (dissatisfiers) Motivators (satisfiers)
Wages Achievements
Hours Recognition
Working conditions Chance for advancement
Supervisory practices Responsibility
Rules and procedures Meaningful work
f06.03_MGT330.ai
Self-
Actualization
Physiological Needs
Safety and Security Needs
Belongingness and Love Needs
Esteem Needs
Figure 5.3 Maslow’s hierarchy of needs
Source: From Abraham Maslow, Robert Frager, James Fadiman, Motivation and Personality, 3rd ed. Copyright © 1987.
Reprinted by permission of Pearson Education, Inc., Upper Saddle River, New Jersey.
Leadership and Motivation Chapter 5
The factors leading to job satisfaction are separate and distinct from those leading to job dissat-
isfaction. Leaders who eliminate factors that create job dissatisfaction may bring about peace but
not necessarily motivation. They may be attempting to appease rather than motivate the work
force. When these factors are satisfactory, employees will not be dissatisfied; neither will they be
satisfied. The term hygiene was chosen with a hospital in mind. A clean and germ-free hospital
does not necessarily make you well; however, an unsanitary hospital can make you sick. The best
leaders can hope for with the hygiene factors is to keep them neutral. In other words, a company
that offers fair wages and has a reasonable vacation policy likely will not contribute to an employ-
ee’s dissatisfaction, whereas the absence of these factors is likely to cause employee dissatisfaction.
In contrast, the factors associated with the work itself are those that inspire motivation in work-
ers. Herzberg believed employees find these characteristics intrinsically rewarding. One manage-
ment program that can help build motivators, job enrichment, is designed to add higher levels of
the motivators to jobs. Job enrichment involves increasing the amount of the following charac-
teristics in jobs:
Skill variety Number of skills used to perform the job
Task identity Degree to which the work constitutes something “complete and
identifiable”
Task significance Degree of human interaction
Autonomy Ability to work without supervision
Feedback Knowledge regarding performance
As you can see, all these factors would contribute to an employee’s finding the work more exciting
or challenging. Herzberg believed motivation would result from incorporating them into every
job possible.
The two-factor motivation-hygiene theory has been criticized for assuming that motivation and
satisfaction are the same thing. In reality, it is possible to be either unmotivated and satisfied
or motivated and dissatisfied. The theory does not account for those circumstances. Also, the
data was collected from a sample group of professional engineers and accountants. Many have
speculated that if Herzberg were to ask the same research questions of a different group, such as
unskilled or semiskilled blue-collar workers, the answers might have been quite different.
The motivation-hygiene theory does explain many factors that make people unhappy on the
job. Leaders and managers can work to eliminate these issues and find other means to motivate
employees. Herzberg’s recommendation would be to make each job more interesting and chal-
lenging, and many management experts agree with such a recommendation.
McClelland’s Acquired Needs Theory
David McClelland developed another motivation theory that is also based on individual needs:
the acquired needs theory. The need for achievement is the desire to do something better or
more efficiently to master complex tasks. The need for power is the desire to control other people,
to influence that behavior, or to be responsible for them. The need for affiliation is the desire to
establish and maintain positive and supportive relationships with other people. People develop
these needs over time through individual life experiences.
For leaders, the implications of these needs are found in three areas. First, high needs for
achievement are associated with performance on the job. McClelland believed it was possible
Leadership and Motivation Chapter 5
to instill greater needs for achievement within workers by using the proper training techniques
(Heckhausen & Krug, 1982). Second, people should be placed on jobs that match their levels of
need for achievement, power, and affiliation. Someone who has high affiliation needs should work
with people. Someone with achievement needs will be more successful in a job that provides
consistent feedback. Third, managers can create challenging task assignments and goals in order
to build goal commitment. This effort, in turn, leads to higher levels of performance (Kinicki &
Kreitner, 2009, p. 147).
Process Theories of Motivation
Process theories of motivation explain how reasoning processes are associated with motivated
(and unmotivated) behaviors. People need to see “what is in it for them” and have a sense that
fairness is extended to all involved. Two major process theories include Adams’s equity theory
and Vroom’s expectancy theory.
Adams’s Equity Theory
The equity theory of motivation was developed by J. Stacy Adams (1963). The premise of the the-
ory is that perceived equity or inequity plays a major role in motivational processes. The theory
may be explained in five steps.
Step one. At work, people exchange inputs for outputs. Inputs are the elements workers trade to
the organization, such as time, effort, training, and creative ideas. Outputs are what the organiza-
tion trades to workers in the forms of pay, praise, the chance to be promoted, challenging work,
and other items.
Step two. People have a natural tendency to compare themselves to one another. At work, one
special comparison will be made with a referent other, who has been singled out.
Step three. The nature of the comparison is between input-output ratios, as follows:
Inputs of employee Inputs of referent other versus
Outputs of employee Outputs of referent other
Step four. If the comparison of input-output ratio seems in balance, equilibrium, or equity, then
behavior will be maintained. In essence, motivation continues when employees believe they are
being treated fairly or equitably.
Step five. If the comparison of input-output ratio seems unequal or inequitable, then there will be
a strong motivation force to reestablish equilibrium. To restore equilibrium, employee behaviors
can be adjusted in various ways, including the following:
• Change work inputs by putting less effort into their jobs.
• Change work outputs by asking for better treatment, a pay raise, or other rewards.
• Attempt to change the work outputs of a referent other, causing the individual to give lesser
or greater effort.
• Change the comparison by finding ways to make things seem better.
• Change the situation by transferring from the job or quitting.
Effective leaders anticipate perceived negative inequities whenever rewards such as pay or pro-
motions are allocated. Instead of letting inequities get out of hand, they carefully communicate
the reasons for giving out the rewards. For example, think about a situation in which your friend,
Leadership and Motivation Chapter 5
who manages a local ice cream parlor, invites you to work part-time hours at a rate of $7.50 per
hour. The job’s responsibilities include waiting on customers, helping to stock items, and cleaning
and closing the store at night. Your friend earns $9.00 per hour, but she also takes care of payroll,
hiring and firing workers, purchasing advertising for the store, attending community events, and
other managerial activities. In that situation, the comparison of inputs to outputs yields a percep-
tion of equity, that the difference in pay is fair based on your friend’s additional responsibilities.
In that situation, you would be content to maintain your level of effort.
If, however, you discovered that one of your coworkers, who you consider to be a real slacker,
earns $8.00 per hour, then suddenly inequity exists. Your response might be to give less effort, to
ask for a raise, to give your coworker a hard time about “doing his fair share,” by reconsidering his
level of effort and productivity and concluding that the differences aren’t that big, or by looking
for another job and eventually quitting.
Equity theory explains when behavior is maintained on the job (equity) and when dissatisfaction
leads to negative outcomes (when inequity is present). As a manager-leader, your job is to create
circumstances in which all employees believe they are being treated fairly. You probably will pay
special attention to your most valuable employees, making sure that their sense of equity is satis-
fied. After all, they are the people you are most interested in keeping.
Critics point out that people often make unreasonable comparisons. Suppose that someone in
your store is comparing his rate of pay to a friend’s salary in a union shop, where wages are much
higher. The comparison is not reasonable, yet the person becomes dissatisfied because he believes
that things are inequitable. Managers can do little to resolve these sorts of conclusions based on
false assumptions.
Also notice that part of the theory says a person may change his or her comparison points. In
other words, the individual might reappraise the situation and reach an entirely different conclu-
sion. This process may lead a person to perceive inequity for a time and then change his or her
mind and decide that things are equitable after all. Once again, this behavior creates complica-
tions for managers seeking to motivate employees.
Vroom’s
Expectancy Theory
Victor Vroom (1964) introduced the expectancy theory of motivation, which asks the question:
What determines the willingness of an individual to work hard on tasks important to the orga-
nization? Vroom posited that people will do what they can do when they want to do it. Three
expectancy factors affect motivation:
• Expectancy (E). An employee’s belief that working hard will result in a desired level of task
performance being achieved.
• Instrumentality (I). An employee’s belief that successful performance will be followed by
rewards and other desirable outcomes.
• Valence (V). The value an employee assigns to the possible rewards and other work-related
outcomes.
Vroom suggests that for motivation to be present, expectancy, instrumentality, and valence must
all be present at the same time. In other words:
Motivation = E × I × V
If any of the three expectancy factors were missing, zero motivation would be present. The
higher the values of E, I, and V, the more powerful the motivational force becomes. Leaders
Leadership and Motivation Chapter 5
can take advantage of the principles of expectancy theory by understanding worker valences
(knowing what employees value); clarifying the work situation (making it seem more likely to
the employee that successful performance is possible); and rewarding successful performance
with the valences held by employees. Expectancy theory has received a great deal of favor-
able research results. Leaders enjoy the benefit of an easy-to-apply system of motivation using
the theory.
M A N A G E M E N T I N P R A C T I C E
Expectancy Theory
As an example of expectancy theory, suppose that a manager in a local food establishment works
directly with four employees. The four employees have widely different goals for the job. One only
wants to pick up a paycheck, because he attends college as well. A second wants to learn the
business, because someday she hopes to open her own restaurant. The third wants to make as
much money as possible, because he is helping to support a family. The fourth wants to have fun
and make friends because she is still in high school, works for spending money, and has strong
social needs.
As a manager, you should notice that each employee expresses different valences. Your role would
be to tailor rewards to each person’s desired outcome. Then, you should clear the path to those
rewards by establishing clear expectations about how to do the job well and by providing consistent
feedback, both when employees perform well and when they make a mistake. Then, it would be
your responsibility to make sure that those employees who achieve and do their jobs correctly and
at high levels receive the rewards they desire. The first simply wants to keep matters as uncom-
plicated as possible and may wish to have certain nights free to study for exams or prepare term
papers. The second craves additional instruction and insight into the restaurant business, which can
be delivered with one-on-one coaching sessions. The third can be taught methods for receiving the
best tips and other ways to earn extra money, including being assigned to shifts when the restau-
rant is the busiest. The fourth can be moved into situations where she works with her friends and
engages with the public. These four rewards should then result in the best performance possible for
all four workers, so long as you carry out the other aspects of the theory.
Further consider the relationship between expectancy theory in this section and the leadership
theories discussed in Section 5.2. Many elements of path–goal theory correspond to the ideas put
forth in expectancy theory. Both stress the importance of relations between the manager-leader
and the followers. Strong, positive relationships lead to increased motivation in the employee and
successful outcomes for the leader.
Discussion Questions
1. Describe the connections that you observe between expectancy theory and the path–goal the-
ory of leadership.
2. Explain how you would connect all three elements of expectancy theory (valences, instrumental-
ity, expectancy) to your efforts in managing each of the four employees described in this section.
3. Can you identify any problems or complications that would keep you, as a manager, from using
expectancy theory in this situation?
Leadership and Motivation Chapter 5
Locke’s Goal-Setting Theory
Goals in the form of clear and important performance targets are the basis of Edwin Locke’s
(1968) goal-setting theory. A goal is the object or aim of an action; it is what an individual is try-
ing to accomplish. The theory is based on the premise that task goals can be highly motivating if
they are properly set and well managed. Goal-setting theory includes four concepts:
1. Goals direct attention toward relevant activities and away from unnecessary activities.
2. Goals regulate effort by focusing on the most important action to be taken.
3. Goals increase persistence, leading the worker to stay on task.
4. Goals foster the development and application of task strategies and action plans.
Goals clarify performance expectations, establish a frame of reference for feedback, and provide
a basis for self-management. In these ways, Locke believed that goal setting can enhance work
performance and job satisfaction.
A key component of the theory is that managers and leaders must work with others to set the right
goals in the right ways. Goals must be difficult but achievable, specific, measurable, realistic, and
timely. It is important for both the leader and follower to participate in setting the desired goals.
A substantial amount of research supports goal-setting theory. One system companies use to
establish and support goal setting for all employees is management by objective. This is a par-
ticipative goal-setting program in which supervisors and employees negotiate goal lists and
performance objectives on an annual basis. In general, effective leaders inspire motivation by
understanding worker needs and helping employees satisfy those needs by creating a supportive
work environment. Leaders know that workers compare themselves to one another. In response,
effective leaders strive to make the reward system as fair and equitable as possible. Effective
leaders comprehend the relationship between knowing what workers want, showing them how
to effectively complete assigned tasks, and rewarding successful employees with the things they
want. Goal-setting systems allow leaders to establish meaningful performance targets and reward
subsequent performance. A program such as management by objectives can institutionalize the
goal-setting process throughout the organization.
Relationships Between Theories
In case you are wondering if it is possible to incorporate all of these ideas into a systematic
approach to leading, the answer is yes. Effective managers take concepts from each of these theo-
ries and models and apply them to their own situation, organization, and followers.
The primary approaches to leadership include traits and characteristics models, people and pro-
duction (behavioral and situational) theories, and more recent views including path–goal theory
and transformational leadership theory. The common ground for all these theories resides in two
basic notions. First, some leaders are especially talented at working with people in various ways,
either through displays of traits and characteristics that are people centered, by helping people
achieve the best outcomes by clarifying paths for them, or by leading people by setting a trans-
formational example. Second, the leadership theories note the role that work performance plays.
Effective leaders display the traits and characteristics that guide people to achieve at higher levels.
They clarify paths related to effective performance, and they challenge others to do their best
through the transformational skills they exhibit. Perhaps the original Ohio State study authors
said it best: Effective leadership has both job-centered and people-centered components.
Summary Chapter 5
The motivational theories include those oriented to needs, those that focus on thought processes,
and those that focus on goals. Once again, these theories have common bonds. Needs are quite
similar to valences in that both express a positive desired outcome experienced by an employee.
One such need or valence would be feeling that you are treated fairly. Another would result from
the sense of personal satisfaction associated with achieving your goals. In other words, each of
the categories of motivation theories focus on doing things that fulfill basic desired outcomes
(satisfy a need, achieve a valence, have a sense of being treated fairly, or reach personal goals).
As a result, connections between leadership theories and motivational theories can be readily
drawn. An effective, people-centered leader takes the time to understand what his or her workers
want. This includes knowing about basic employee needs, fine-tuning a leading style to incorpo-
rate individual valences into a reward system, and treating people fairly and equitably. Finally, the
good leader knows that only when promises are kept will the people under his or her direction be
motivated. There is nothing worse than a leader who holds out a reward for desired performance
and then does not deliver the reward when the follower succeeds or achieves a desired outcome.
There is nothing better than a consistent leader who always delivers what he or she promises to
employees who succeed.
Then, an effective job-centered leader can tie concepts regarding rewards and need fulfillment
with methods designed to improve job performance. The leader delivers quality instruction, cor-
rects errors in a positive fashion, seeks employee involvement in improving the work process, sets
clear, meaningful, and achievable goals, and takes other steps to make sure each individual can
perform at the highest level. Chances are, if you do these things, you will be perceived as having
the traits and characteristics of an effective leader.
Summary
Leading, in a business context, consists of all activities undertaken to help people achieve the
highest level of performance. These include using power, applying leadership theories, and pro-
viding motivational approaches. Leading also includes establishing effective teamwork and com-
munication systems. Two differences between leading and managing are that managing focuses
on coping with complexity while leadership emphasizes coping with change.
Power is control over formal and informal means of influence. Within organizations, five sources
of power, or means of influence, that leaders may use include legitimate, reward, coercive, expert,
and referent power. Additional sources of power include closeness to production, serving as a
boundary spanner, and control over items such as budgets and status symbols in the organization.
Leadership entails influencing behaviors in organizations. Trait theories of leadership assumed
that the ability to lead is universal or transferrable across situations. Further, if the ability to lead
is universal, then all successful leaders must have things in common. Unfortunately, no single
trait or characteristic applies to every successful leader, although the Big Five characteristics are
somewhat able to predict employee performance and the potential ability to lead. Attribution
models help us understand who is most likely to be promoted into a position of leadership
and why.
Behavioral theories of leadership identified two tendencies: job-centered and employee-centered
activities. Situational and contingency leadership theories add the concept of effectiveness, sug-
gesting that leaders can be adapted to each unique organizational circumstance. Path–goal theory
argues that effective leaders understand the things workers value, clarify paths to performance,
Summary Chapter 5
and reward employees who succeed. Transformational leaders garner trust, seek to develop lead-
ership in others, exhibit self-sacrifice, and serve as moral agents by focusing on activities that
include inspirational motivation, idealized influence, individualized consideration, and intellec-
tual stimulation.
Content theories of motivation explain how needs result in employee behaviors. Maslow’s hier-
archy notes five stages of motivation. Herzberg’s two-factor theory notes items that satisfy and
dissatisfy employees.
Process theories of motivation explain how reasoning processes are associated with motivated
and unmotivated behaviors. Equity theory explains how perceptions of fairness create either
satisfied or dissatisfied employees, along with potential responses to circumstances when ineq-
uity occurs. Expectancy theory suggests that motivation results from a combination of valence,
expectancy, and instrumentality, when all three factors are high.
Locke’s goal-setting theory suggests that task goals can be highly motivating if they are properly
set and well managed. A system that supports goal setting is management by objectives.
The concepts presented in this chapter have many common elements. Effective leaders use power
in constructive ways. They understand that both people and production are important. They
use their talents to understand each person’s goals and desires, knowing that these outcomes
can become part of a motivational system that will achieve at the highest levels. These tactics
increase the perception that the potential leader has the transformational traits and characteris-
tics needed to succeed at all levels in the organization and beyond.
C A S E S T U DY
Who’s Next?
Jim Logan was at the end of a long and successful career as an entrepreneur and manager. He
started his business 30 years earlier by purchasing what was a small brokerage service for farm ani-
mals (farm futures, plus auctions of cattle and horses) and turning it into a significant Midwestern
empire. The firm had expanded into shipping, oil futures, chemical products, trucking, and several
smaller ventures.
The eclectic nature of the operation had taught Jim the value of delegating, although he kept an
eye on all activities. He was quick to demand a full report if a problem developed. He often made
firsthand inspections and conducted one-on-one meetings when he was told a difficulty was evolv-
ing with any one of his subsidiaries. At the same time, he was not known as a dictator. He did com-
mand respect due to his expertise and manner of treating employees.
Jim’s style of leadership was based on delegation and rewards. He paid his “lieutenants” handsome
salaries for their loyalty and expertise. The company offered a bonus plan based on departmental
return on investment. Any dishonest or unethical tactics received harsh treatment. Jim wanted only
positive publicity for the company.
As he pondered retirement, Jim knew the biggest issue was to choose a successor. None of his
children were interested in the job. Jim had four viable candidates: Marcie Benson, Vincent Will,
Richard Jorgenson, and John Cullen.
(continued)
Summary Chapter 5
Marcie Benson was the youngest of the group at 47. She had single-handedly broken down the
company’s “good old boy” network. She held a powerful role as director of Logistics. She was
a strong advocate for women, minorities, and any other person she deemed underutilized. Her
efforts had resulted in tremendous profits for the company. She had won several community
awards.
Marcie was small and dynamic. She tended to see the world in terms of accomplishment. She was
kidded for “keeping score” on every front. Her manner was direct and to the point. She was not
prone to smiling or laughing, although Jim had been told that, away from work, Marcie was a com-
pletely different person. Marcie was also the classic team player, able to subsume her own ego for
the betterment of the group. Her technical skills were excellent.
Vincent Will was a technocrat. His understanding of computers and systems exceeded everyone
else’s. Vincent was impatient with people who failed to understand his systems. On the other hand,
he had bailed out people who had made mistakes and saved the company from several major prob-
lems with their computer systems.
Vincent was 53 years old. He held a master’s degree in computer science. He was a workaholic
with limited interpersonal skills. His technical skills, combined with his knowledge of the company’s
operations, made him a finalist for the CEO position.
Richard Jorgenson was 51 years old. He was probably the most different from Vincent Will. Richard
was director of Sales, a loose title that matched his fluctuating job description. Richard was a
people person, gifted at making people feel comfortable and happy. His style worked well with
members of the sales force who were willing to put in long hours to keep things moving. Richard
rewarded his staff with happy hours that included lunches, dinners, and small parties that he paid
for out of his own pocket.
Richard was quick moving, funny, and a back slapper. Some considered him a chauvinist, because
he used lots of “Little Missy” type language when dealing with female employees. Jim found it
interesting that Marcie Benson reported having “no problem” with Richard, because he was will-
ing to identify talented, successful female sales reps and promote them to supervisory positions.
Richard’s other liabilities included inattention to detail and less sophisticated understanding of
how the organization functioned. Employee loyalty and human relations skills were his strongest
selling points.
John Cullen was Jim’s right-hand man. Most employees assumed John would be the successor,
because he had the most complete knowledge of how Jim ran the firm. John was 63 years old,
however, and on the verge of retirement. He had experienced one heart attack and openly talked
about moving on. At the same time, he had more than once voiced his pleasure at the idea of being
able to “take the reins” for a time.
On the surface, John seemed to be the ideal choice as a transitional leader. He was mature, intel-
ligent, experienced, and good with people as well as a tremendous organizer and implementer.
Because he was approachable and easygoing, John was also probably the most popular senior
staff member.
Jim knew each candidate would be surrounded by high-quality senior staff members who would
help keep the company running smoothly. He also had time to train the new CEO. After speaking
with the people in human resources and formulating a series of criteria, Jim was ready to make
the choice.
(continued)
Critical Thinking Chapter 5
Key Terms
consideration A leadership behavior that expresses concern for employees by establishing a
warm, supportive, friendly climate.
content theories Explanations of the specific factors that motivate people, most notably in the
area of human needs.
expectancy An employee’s belief that working hard will result in a desired level of task perfor-
mance being achieved.
goal What an individual is trying to accomplish; the object or aim of an action.
initiating structure A leadership behavior that organizes and defines what group members
should be doing.
instrumentality An employee’s belief that successful performance will be followed by rewards
and other desirable outcomes.
leadership Influencing behaviors in organizations.
power Control over formal and informal means of influence.
transformational leaders Individuals who engender trust, seek to develop leadership in oth-
ers, exhibit self-sacrifice, and serve as moral agents; they focus themselves and their followers
on objectives that transcend the more immediate needs of the work group.
valence The value an employee assigns to the possible rewards and other work-related
outcomes.
Critical Thinking
Review Questions
1. Define leading, and explain how it is different from managing.
2. What is power, and what are the five main sources of power?
3. What are the four main categories of leadership theories?
4. Name the three trait theories of leadership.
5. Explain how someone deals with a confirmed and a refuted test when using the attribution
theory of leadership.
6. What two schools are associated with the behavioral theories of leadership?
Discussion Questions
1. Apply the trait theories of leadership to the four candidates.
2. Apply the contingency theories of leadership to the four candidates.
3. Apply the transformational theory of leadership to the four candidates.
4. What are the communication styles of the four candidates? Which is best for this position?
5. Which candidate appears to have the best team-building skills? Which would have the worst?
6. Which person should Jim choose? Defend your answer.
Critical Thinking Chapter 5
7. Name the situational theories of leadership.
8. What are the four styles of leadership in the Hersey and Blanchard situational leadership
model?
9. What are the four styles of leadership in path–goal theory?
10. Define motivation.
11. What are the five needs in Maslow’s hierarchy?
12. What are the two factors in Herzberg’s theory, and how do they influence workers?
13. What three needs are present in McClelland’s need theory?
14. What are the five steps in Adams’s equity theory?
15. What three motivational factors are present in expectancy theory?
16. Explain the relationships between goals and motivation in Locke’s approach.
Analytical Exercises
1. Explain whether each of these activities is an example of leadership or management:
• creating a budget
• making a speech to employees about a vision for the future
• setting the goal to hire four new high-quality employees
• comforting an employee who has just lost a loved one and was informed at work
2. Three tactics employees use to gain power include acclaiming, visibility, and impression man-
agement. Acclaiming is taking credit for someone else’s work or success. Visibility is mak-
ing sure you are seen with the right people and in the right places. Impression management
involves manipulating people to think you hold greater status than you actually possess. Relate
these tactics to the sources of power described in this chapter.
3. Name five personal traits that you believe would make you an effective leader. Ask three of
your friends or classmates to make a similar list about you. Does your list agree with their list?
What can you learn from this?
4. How do the concepts provided in the attribution model of leadership explain why it is harder
for women and minority group members to be perceived as having “leadership potential”?
5. What common elements are present in Hersey and Blanchard’s situational leadership model,
path–goal theory, and transformational leadership theory? How do these theories differ from
one another?
6. Are there any common elements in Maslow’s hierarchy of needs, Herzberg’s motivation-
hygiene theory, and McClelland’s need theory? How are they related? What are the primary
differences between the three theories?
7. Explain how the concepts contained in Locke’s goal-setting theory can be incorporated into
Vroom’s expectancy theory. Explain how the concepts in Adams’s equity theory can be incor-
porated into expectancy theory.
The Leading Function: Groups,
Teams, and Communication
Learning Objectives
After completing this chapter, you should be able to:
• Identify the differences and similarities between groups and teams.
• Establish and successfully direct groups and teams.
• Communicate effectively with others.
• Manage organizational communication systems effectively.
6
Digital Vision/Photodisc/Thinkstock
Introduction Chapter 6
6.1 Introduction
Chapter 5 described three major components of the leading function: power, leadership, and
motivation. This chapter examines two additional factors that play major roles in the degree
of success a manager achieves. The first, leading groups and teams, requires specific types of
skills for coordinating the activities of others. The second, communication, is the glue that holds
together groups and teams, as well as the entire organization.
In the first section of this chapter, we look at the differences and similarities between groups and
teams. Next, we consider techniques for building effective teams. In the following section, we
examine the nature of individual communication. Finally, we examine methods for effectively
managing communication systems within organizations.
M A N A G E M E N T I N P R A C T I C E
The Changing Communication Landscape
The past three decades have witnessed an explosion of new technologies designed to connect
people in various ways. Face-to-face interactions with people around the world are now possible by
simply pressing a key. In a variety of ways, these new patterns of communication influence many of
the topics described in this chapter.
First, the immediacy of available information and interaction has increased the pace of business.
Online connections, by allowing access to all forms of data, offer the potential to speed up busi-
ness activities ranging from research to the
coordination of complex tasks. Many proj-
ects can be examined in real time, thereby
shortening the time from idea develop-
ment to final implementation. Second,
workers interact in new ways via various
personal communication devices. A decade
ago, many companies began to integrate
email systems into management programs.
Intranets and other forms of communi-
cation replaced letters, memos, faxes,
and other more outdated technologies.
Currently, companies communicate with
both internal and external publics in innova-
tive new ways.
From the bakery that sends out tweets
notifying customers that a new batch of
goodies is just leaving the oven to the
Twelpforce social media team that interacts
with consumers at Best Buy, technology
has shifted the customer–salesperson interaction. Further, dissatisfied customers can more quickly
reach out to a wide audience to register complaints about a company. Many organizations, such
as Southwest Airlines, have social media monitors who respond to problems as quickly as possible.
Further, many managers have discovered that younger employees are far more comfortable send-
ing instant messages to notify the company that they are sick or will be late to work. Several major
(continued)
Anatoliy Babiy/iStock/Thinkstock
▲▲ Advances in technology have made interactions
with people around the world faster and easier
than ever.
Groups and Teams Chapter 6
6.2 Groups and
Teams
A common misconception about groups and teams is that they are the same thing. That is not
the case. A group consists of a collection of people, and a team is a unit of collective performance.
Let’s look more closely at the differences and similarities between the two.
Groups
A group consists of two or more people interacting who share collective norms and goals as
well as a common identity. For example, a group could be a collection of 12 employees meeting
to exchange information about how various company polices or procedures will affect them. In
business organizations, employees routinely encounter group activities. Two types of groups are
found in various companies: formal and informal.
Formal Groups
A formal group is established by the organization and seeks to achieve company goals and objec-
tives. You can find evidence of the existence of a formal group in company documents, including
an organization chart, a management directive to form a group, or group meeting minutes. Three
common types of formal groups are work groups, committees, and project groups.
A work group consists of individuals who routinely perform organizational tasks. Work groups
are identified by an organizational chart. In a newspaper company, work groups likely would
be formed for the sports department, the local news, and the national/international news desk.
Accountants and production employees also are included in work groups around their assigned
responsibilities. A work group is sometimes known as a command group.
organizations, including IBM, now use social media venues as key methods to make contact with
individual workers.
Team and group interactions have been equally changed by innovative technologies. Workers
can complete tasks from remote locations (such as through virtual teams, described in this chap-
ter). Instant contacts have moved many team meetings away from conference rooms and into
new spaces.
Informal groups communicate via these same tools. Friendships are formed and people follow
one another through Facebook and other pages. Gossip travels in new ways. Managers are faced
with the challenge of responding to these new methods of interaction, making sure negative
rumors do not spread widely and quickly to ruin an innocent employee’s reputation or standing in
the company.
The future of leading teamwork and communication appears to hold a wide array of new opportu-
nities to improve business functioning. At the same time, company leaders will need to be vigilant
to ensure such technologies are not abused or used in malicious ways.
Discussion Questions
1. How can fast-moving communication negatively affect an employee via a rumor? What about a
company?
2. In what ways can social media be used to improve the workplace environment?
3. How can social media be used to improve relationships between top-level managers and first-
line employees?
Groups and Teams Chapter 6
Committees are groups assigned to various company operations and processes. Normally, com-
mittees are ongoing groups, such as the set of individuals assigned to the workplace safety com-
mittee or the employee benefits committee. Members of committees often have temporary
assignments, such as a one- or two-year term, after which someone else takes the position within
the group.
Project groups, or task forces, oversee a project or assignment until it is completed. A task force
may be assigned to write a report about a disaster such as a fire or accident in a plant. A project
group may be designated to redesign the interior of a retail store. Another project group may be
asked to develop and bring a new product or service to the marketplace. In each instance, the
group disbands after completing the assignment.
Informal Groups
An informal group emerges without the endorsement of organizational leaders and does not
have a designated structure or work toward organizational goals other than socialization and
friendship (Shirky, 2004). These associations are sometimes referred to as friendship groups.
Three forces tend to bring informal groups together: activities, shared sentiments, and interac-
tions (Homans, 1950).
Activities drive the formation of many informal groups. They range from small groups that rou-
tinely play cards together during breaks to more elaborate company volleyball, softball, or bowl-
ing teams. A “lunch bunch” that meets every day for
meals has formed around an activity.
Shared sentiments suggest that people make friends
with and socialize with others who have the same
value sets. Some groups form due to political simi-
larities. Others revolve around religion. In some
instances, groups of single mothers or company bach-
elors may form.
Interactions result from close physical associations.
People who work on the same floor of an office build-
ing are more likely to socialize and form friendships.
Those who labor at a remote location of a company
may also band together into an informal group.
Group Members
Formal and informal groups consist of four types of
members: the leader, opinion leaders, members in
good standing, and the gatekeeper. The leader directs
group activities. Formal leaders are assigned by the
organization, as opposed to informal leaders, which
emerge based on the group’s wishes. Opinion leaders
are those group members who are most closely aligned
with the leader. The name comes from their willing-
ness to express group values. Members in good stand-
ing are individuals who are included in the group but do not share in any leadership function.
The last member, the gatekeeper, is one of the first three types: leader, opinion leader, or member
in good standing. The gatekeeper determines who will and will not be included in the group. At
Jupiterimages/Stockbyte/© Getty Images/Thinkstock
▲▲ Informal groups can form around an activity,
such as eating lunch together.
Groups and Teams Chapter 6
times, the entire group rather than a single individual may carry out the gatekeeping function
(Cartwright & Zander, 1953).
Teams
A team consists of a small group of people, with complementary skills, who work together to
achieve a common purpose and hold themselves mutually accountable for accomplishing certain
goals. The essence of a team is a common commitment. One similarity of teams and groups is
that both normally consist of from 2 to 10 employees. Both have leaders, opinion leaders, mem-
bers in good standing, and provide a gatekeeping function. Both also seek various types of social
and organizational goals.
The differences between teams and groups occur in the area of unit performance. Groups
evolve into teams under the proper circumstances. A leader can tell the difference by observing
instances of shared sacrifice and commitment to the group’s success by individual members. A
group becomes a team when the following criteria are met (Katzenbach & Smith, 1999):
• Leadership becomes a shared activity.
• Accountability shifts from strictly individual to both individual and collective.
• The group develops its own purpose or mission.
• Problem solving becomes a way of life, not a part-time activity.
• Effectiveness is measured by considering the group’s collective outcomes and products.
Effective teams begin with the right number of members. Too few members create problems in
terms of assigning tasks that members will be required to undertake. Too many members lead
to breakdowns in communication and the inclusion of additional personal agendas, which can
lead to conflict. The most common types of teams employed in today’s workplace include cross-
functional teams, virtual teams, and self-managed teams.
Cross-Functional Teams
Organizations today emphasize horizontal integration, problem solving, and information sharing.
They also attempt to eliminate the tendency of workers to work in silos, or groups of individuals
who are from the same department or perform the same type of work, because a silo prohib-
its communication across departments within the organization. Members of cross-functional
teams come together from different functional areas of the organization to work on a particular
problem or task and work together to reach company goals. They share information, explore new
ideas, work toward creative solutions, and do not limit their ideas to their own functional areas.
Virtual Teams
The use of the Internet and specially designed software can support meetings between geograph-
ically dispersed employees. Virtual teams employ Internet and digital technologies (such as an
intranet, web conferencing, teleconferencing, and videoconferencing) to achieve common goals,
such as collaboration, sharing information, solving problems, and scheduling activities. Virtual
teams are formed for short-term projects as well as long-range, ongoing issues.
Organizations create virtual teams to reduce travel costs and allow people from remote locations
to collaborate. They are flexible in the sense that meetings can be arranged fairly quickly, espe-
cially when compared to the time spent traveling to a distant place. Both Volvo and Lockheed
Martin have discovered the advantages of these types of teams (Ante, 2003; Naughton, 2003).
Groups and Teams Chapter 6
Virtual teams have three limitations, two of which reduce their ability to take on team-like char-
acteristics. First, in virtual face-to-face meetings (conducted using webcams and microphones),
paraverbal cues (voice tone and inflection) and nonverbal cues (eye contact, distance, gestures,
and facial expression) cannot as easily be transmitted. This limits the richness of communica-
tions between members. Second, socialization is reduced. As meetings conclude and members go
on to other work, they sign off the meeting website. They cannot remain “in the room” to discuss
issues and fraternize. The third problem associated with virtual teams is that members must
meet at differing times, depending on location. A meeting that begins at 4:00 p.m. in San Diego
is taking place at 7:00 p.m. in New York, a time when most people have left the office. Scheduling
becomes even more problematic for international virtual meetings.
Perhaps a better name for this type of operation would be a virtual group, because virtual col-
laborations do not generate the same trust level and member interdependence that are found in
actual teams. At the same time, virtual teams with members from widely dispersed locations can
deal effectively and efficiently with issues in a timely fashion. Consequently, their use has grown
in popularity in many larger companies. The increasing internationalization of business has also
led to increased usage of virtual teams.
Self-Managed Teams
Self-managed work teams are groups of employees who perform highly related or interdependent
jobs and take on many of the responsibilities of their former supervisors. These responsibilities can
include planning and scheduling work, assigning tasks to team members, controlling the pace of
the work, making operating decisions, and taking action with problems. Things to consider when
introducing self-managing teams are strength and makeup of team norms, the types of tasks the
team undertakes, and the reward structure, which can affect how well the team performs.
Stages of Team Development
Both groups and teams go through stages of development. One theory proposes five stages of
development: forming, storming, norming, performing, and adjourning (Tuckman, 1965). Let’s
look at each of the stages, keeping in mind that the different stages do not necessarily take the
same amounts of time. Figure 6.1 depicts the relationships between the stages of group perfor-
mance with the level of dependence and interdependence among members.
Forming
Forming is the process that takes place when members get oriented to the group and start get-
ting to know each other. This stage is characterized by a high degree of uncertainty as members
try to break the ice, figure out who is in charge, and determine what the group’s goals will be. At
this point trust is low, and people tend to hold back to see who takes charge and how that person
will lead. The formal leader may assert some level of authority to establish the team’s operation
and build trust among members.
Storming
Storming takes place as the presence of individual personalities, roles, and conflicts emerge
within the group. The storming stage may be short or very long and painful, depending on
the clarity of goals and the commitment and maturity of the members. It is a time of testing.
Individuals test the leader’s policies and try to figure out where they fit in the group. Subgroups
may take shape. Groups may stall here if power and political struggles go unconstrained and turn
into open rebellion. Groups that overcome this stage do so because a respected member, usually
not the leader, challenges the group to resolve its differences.
Groups and Teams Chapter 6
Norming
In the norming stage, conflicts have been resolved. Close relationships begin to develop and
unity starts to evolve. Teams set guidelines related to what they will do together and how they
will accomplish tasks. Questions about team authority have been resolved through frank discus-
sions. A feeling of team spirit exists because members have found their role within the group.
Positive group cohesiveness can become a major outcome of the norming stage.
Norms are rules governing behaviors in the group. As shown in Table 6.1, norms apply to three
main areas in both formal and informal groups. In fact, norms often overlap between the two.
Norms can be formally or informally sanctioned, based on approval or disapproval by group
members.
Table 6.1 Types of norms
Category Examples
Effort Time on the job
Units of production
Sales calls, sales totals, follow-ups with customers
Work behaviors Clothes worn
Use of language, cursing, formality
Following or ignoring work rules or procedures
Social behaviors Fraternization between management and labor
Office romances
Norms tend to develop slowly but then become difficult to change. They apply to the work-
place more than to off-work activities. They also apply to behaviors rather than private feelings
and thoughts; members may go along with some norms they think are foolish. Norms may not
f06.01_MGT330.ai
Low
High
Degree of
independence
Degree of
dependence and
interdependence
High
Forming
Storming
Norming
Performing
Adjourning
Low
Figure 6.1 Degree of independence, dependence, and interdependence
As a group evolves, individuals gradually give up a sense of independence in favor of
greater interdependence.
Leading and Effective Teamwork Chapter 6
apply to high-status group members who choose to ignore them. In general, norms summa-
rize group influence processes, including the rules for joining and maintaining membership
(Hackman, 2003).
Norms provide vital organizational functions. They clarify the group or organization’s key values
and convey a sense of identity. Enforcing norms, such as those listed in Table 6.1, can assist an
individual in either meeting behavioral expectations or avoiding making behavioral mistakes (for
example, refraining from cursing on the job or wearing clothing that the group deems accept-
able). Some authors argue that norms help the group or the organization survive (Feldman, 1984).
Performing
In the performing stage, members focus on solving problems and completing their assigned
tasks. The main concern for the team becomes doing the job right. Members assist each other,
and conflicts are resolved constructively. Members become committed to the group’s success.
When the group reaches the point where its primary activities revolve around solving task prob-
lems, the performing stage has begun. Communication between members takes place openly;
members support one another with cooperation, and disputes are handled quickly and construc-
tively (Mason & Griffin, 2005). At this point, interdependence reaches its peak, and independence
has been surrendered as much as it will be. Ongoing work groups and committees that reach the
performing stage remain there unless drastic events interfere. Project teams and informal groups
that have an end point (the bowling season ends) move to the final stage.
Adjourning
In the fifth and final stage, adjourning, members prepare to disband the group. Having worked
hard to collaborate and accomplish their assigned task, members often feel a sense of loss, even
though a party or celebration may be taking place.
As a leader, a major thing to remember is that building a high-performing team requires time and
hard work. But the end result is a stronger, better-performing work unit. Strong leaders focus on
task roles and maintenance roles. Task roles keep the group on track and focused on the work to
be performed. Maintenance roles keep the group together in supportive and constructive ways.
Leaders coordinate both types of roles to achieve success.
In summary, teams and groups have a great deal in common. At the same time, successful man-
agers recognize the differences between the two. They then seek to find ways to direct groups
into higher-performing teams. The next section considers methods for helping teams achieve at
higher levels.
6.3 Leading and Effective Teamwork
It takes a talented leader to turn a group into a team. Team building consists of all activities
designed to improve the internal functioning of work groups. Team builders can use techniques
such as trust exercises, role-playing, and competitive games. Standard goals of team building
include increasing trust between members, reducing conflicts between members, building better
channels of communication among members, and increasing levels of support among team mem-
bers. Of these four goals, trust is key. Trust requires communication, respect, fairness, consis-
tency, and leader–member competence. When teammates do not trust each other, the quality of
the team quickly deteriorates. Distrust can become a destructive force in both teams and groups.
Leading and Effective Teamwork Chapter 6
Characteristics of Effective Teams
Effective teams have certain requisite characteristics. Cohesiveness results from an appropriate
match between the team members and the work they will do. Contextual factors and process
variables also influence a team’s effectiveness.
Team Composition
Managers can play important roles in designing teams with the best chances for success. Doing
so involves making sure the right personalities and skill sets are assigned to projects. Also,
those chosen should have indicated an interest in being included in the group. Clear instruc-
tions allow members to fit in and move past storming and norming issues. As with groups, the
team should consist of an appropriate number of members. One factor that can work against
a team’s well-being is heterogeneity or diversity in the team’s membership, especially when a
single member of a minority has been placed on a team. In general, member selection can make
or break a team (Milliken & Martins, 1996). To build effective teams, managers often consult
with the human resources department to determine sets of skills that individuals possess. They
also consider personalities and various backgrounds as part of the process of creating compat-
ible sets of individuals. Further, when recruiting, selection criteria make it possible to encour-
age applications by individuals interested in collaboration. During interviews, managers can
discover those who have participated in team efforts as part of their education. Applicants with
connections to sports teams, fraternities or sororities, and interest clubs such as Enactus (for-
merly called Students in Free Enterprise) have already demonstrated the willingness to engage
in a larger group.
Work Design
The logical connection between a team and a project is complexity. Simple tasks are better han-
dled by single individuals. Consequently, work design in a team setting involves a more compli-
cated assignment. Team members should believe they have sufficient authority and autonomy to
do their work in the best manner possible. When a project or task has an end point, it possesses
task identity, which was noted as a motivational factor in Chapter 5 of this book. Further, the
interactions between members, when coupled with an outcome that helps others in the organiza-
tion, generate feelings of task significance, another motivational force. In essence, the work design
should be focused on interesting, challenging, and important organizational chores (Kirkman &
Rosen, 2000).
Contextual Variables
Effective teams operate in inviting contexts. Trust represents both a cause and an effect in team
success. A trusting environment encourages cooperation and shared effort. Cooperation and
shared effort build trust for the future. Other contextual variables that contribute to success
include adequate resources, strong leadership, and the organizational reward system. Resources
become necessary to assist team activities. Members who believe they have access to needed
funds and technological support are more likely to buy in and support the team (Bishop, Scott,
& Burroughs, 2000).
Good leadership occurs in two ways. The first, and most apparent, is found in the efforts of a
leader dedicated to making sure the group functions smoothly. Effective leaders in this vein set
challenging expectations and operate in a positive fashion (George & Bettenhausen, 1990). The
second takes place when the group leads itself by setting schedules, resolving conflicts, making
decisions, and coordinating activities, in much the same way as self-managed teams.
Leading and Effective Teamwork Chapter 6
Also, several consulting companies offer teamwork-building programs designed to help
employees become better team members. Part of this effort involves reorienting goals from
individual to collective goals and encouraging team members to make a common effort to
reach those goals.
The organizational reward system consists of the performance evaluation program and the
delivery of rewards. Group-based incentives contribute to more effective teams. When perfor-
mance rewards do not exist, the potential for team dissent and demise rises. Reward systems
can be altered or modified to incorporate performance objectives related to cooperation and
collaboration that will then reward individuals who improve or exhibit these characteristics.
The system then can be changed to add group rewards and bonuses for team performance.
Hallmark Cards, Inc. as well as one subsidiary of Blue Cross (Trigon), have successfully adapted
reward systems to include team incentives in a manner that provides a model for other com-
panies (Geber, 1995).
Process Variables
The final component in a successful team effort involves how the team operates. Four elements
combine to ensure a more efficient operational process. Teams with a common purpose among
members, confidence, specific goals, and managed conflict are more likely to experience posi-
tive outcomes. A common purpose evolves from factors such as group cohesiveness and well-
developed norms. Team confidence, or team efficacy, results from successful endeavors. A team
can build on previous victories, in much the same way that a sports team builds momentum
during a game and during a season. Specific
goals clarify member roles. Difficult goals
are associated with higher levels of effort
and performance.
Managing conflict, the fourth element in
team processes, necessitates careful mana-
gerial action. On the one hand, conflict is
for the most part inevitable and can reduce
problems such as overly cohesive groups
and groupthink. On the other, too much
conflict becomes a major distraction.
In the study of differences between cultures
in various countries and nations, one trait
that receives attention is the degree of indi-
vidualism versus collectivism present. An
individualistic culture exists when most
people in a region are more self-oriented
than oriented toward any group, team, or organization. Collective cultures represent the oppo-
site situation. The United States and other Western cultures tend to exhibit individualistic ten-
dencies. In such a society, building and facilitating teamwork becomes more challenging than in
other societies.
In summary, remember that effective teams are most likely to be present when all four fea-
tures combine to create the best environment. A problem in any one of the four can disrupt
group functioning. Managers who are seeking to generate team effectiveness need to see the
big picture.
Nick Free/iStock/Thinkstock
▲▲ Teams with a common purpose are more likely to experi-
ence success.
Leading and Effective Teamwork Chapter 6
Group Size
One variable a manager can carefully construct when seeking to optimize performance will be
the group size. The group’s goal should be the primary determinant of its size. The following are
three basic objectives associated with a group:
1. Produce an item or complete a project.
2. Solve problems.
3. Collect information or input.
When the primary goal is producing an item or completing a project, something interesting
occurs. As groups increase in size, productivity rises as well, but at a diminishing rate. In other
words, adding a seventh member to a group will increase the team’s productivity, but the increase
will not be one-seventh more; it will be something less than that amount. To explain this out-
come, researchers suggest that as team size increases, the amount of effort contributed per mem-
ber declines (Shepperd, 1993). In some instances, extreme declines in individual effort result from
the addition of new group members. Social loafing occurs when team members give less effort to
a group than they would if working individually. At the extreme, social loafing involves a member
taking a free ride and contributing nearly nothing. Social norms offer a method to induce a social
loafer to at least provide some effort (Liden & Erdogan, 2003).
Managers often compose task teams at the level of five to seven members. Fewer than five reduces
productivity due to the small group size. Seven is close to the point where diminishing returns
per new member become more noticeable. Also, some research suggests that teams with odd
numbers (five or seven) have better chances of success (Yetton & Bottger, 1983) because in any
decision or course of action, a majority emerges (3–2, 4–3, etc.). Groups with even numbers can
experience ties in votes and other decisions (2–2, 3–3). Problem-solving teams tend to require
greater numbers of members. The best rationale for this observation may be that each member
contributes unique ideas and skills when a group is managed effectively. Consequently, a team
with seven or more members yields better results until the group becomes so large that members
disengage and do not contribute.
Collecting information and input may not necessitate maximum effort, but rather insights and
analysis. Teams with large numbers of members, again when successfully managed, generate
better ideas and discussion. Diversity may lead to creative input. The paradox presented by larger
problem-solving and information-collecting teams is that, while these groups induce high- quality
ideas and combine unique skill sets, the team’s size begins to work against actual implementation
of the proposed solutions. In essence, larger teams produce better ideas; but, if kept at the same
size, they experience greater difficulty implementing those ideas (Karau & Williams, 1993). It
may be wise to pare down the group when moving toward action.
Group Cohesivene
ss
The degree of goal commitment, conformity, cooperation, and group control over members sum-
marizes the level of group cohesiveness. The term tight-knit applies to groups exhibiting higher
levels of cohesion, which helps turn a group into a team. The degree of cohesion in a group affects
productivity and performance (Figure 6.2).
As shown, a group with too little cohesion often suffers from lack of productivity. The problems
associated with low cohesion follow the concepts found in its definition. There will be goal dis-
agreement rather than agreement. Members do not conform to any potential group norms. They
fail to cooperate, and group sanctions do not affect them.
Leading and Effective Teamwork Chapter 6
At the center of Figure 6.2, the curve ascends, showing that groups with desirable levels of cohe-
sion tend to enjoy the highest levels of success. Cohesive groups offer these benefits:
• Group productivity increases.
• Members help out those experiencing problems.
• Extra effort is given during a crisis.
• Members work without supervision.
• A positive social atmosphere emerges.
Clearly, managers have vested interests in developing and maintaining cohesive groups (Litterer,
1973; Seashore, 1954). Figure 6.2 also suggests a zone in which the level of cohesion has grown to
the point that problems begin to emerge. Overly cohesive groups are more likely to set norms to
reduce output or lower levels of effort. They may be inclined to view other groups as rivals and
create unnecessary conflicts. At times, the formal leader in the group becomes unable to func-
tion due to the influence of the informal leader. The most substantial problem with overly cohe-
sive groups is known as groupthink. Groupthink results when group pressures for conformity
become so intense that the group avoids unusual, minority, or unpopular views. At the extreme,
groupthink becomes a process by which the group develops a sense of invulnerability, believing
it can function without outside influence or sanction. The group self-censors information and
fails to perform effectively within organizational confines (Janis, 1991). Team leaders and manag-
ers are advised to adjust the cohesiveness factors before groupthink emerges; once it begins, it
becomes extremely difficult to manage or control.
Group cohesiveness and productivity or performance are affected by a series of internal factors.
Table 6.2 summarizes circumstances in which these factors influence the level of cohesion. Group
size, as noted, influences both cohesion and productivity. Opportunities to interact come from
proximity as well as scheduled formal and informal gatherings. Heterogeneity is less common in
f06.02_MGT330.ai
Too little
High
Low
Low
Amount of cohesion
G
ro
u
p
p
e
rf
o
rm
a
n
ce
s
u
cc
e
ss
High
About right Too much
Figure 6.2 Degree of cohesion
The right balance of cohesion within a group can lead to success. Too little cohesion may
result in a lack of cooperation, but too much cohesion may lead to setting norms that
reduce output or decrease effort.
Leading and Effective Teamwork Chapter 6
a diverse workplace. One method used to build a sense of heterogeneity is to create overarching
superordinate goals to bond members together. Group status can make group membership more
or less desirable. An outside threat can be real or suggested by management as a potential prob-
lem. Interdependence and independence result from norming processes. Membership stability
is linked to opportunities to interact and bond. Effective leaders understand individual member
needs; ineffective ones drive wedges between members (Homans, 1950).
Table 6.2 Factors influencing levels of cohesion
Increase cohesiveness Decrease cohesiveness
Proper size (5–7 members) Too many members
Opportunities to interact Isolation
Similarities (homogeneity) between members Dissimilar members
High status within organization Low public image of group
Presence of outside threat Placid environment
Interdependence among members Opportunity to join other groups
Attractive (to members) group goals Unsatisfactory goals or goal disagreements
Stable membership High turnover
Effective leader Ineffective leader
Becoming a Team Player
What will be your role in the workplace? Will you be among the staunch individualists who go
their own way? Or, will coworkers and top management compliment your ability to get things
done in teams and groups? A case can be made that a more enriching and successful career
awaits good team players. Even so, opinions vary regarding the exact nature of an effective team
player. Lists of effective member characteristics typically include from 10 to 17 items. One popu-
lar list was developed by Maxwell (2002). Team member skills include being adaptable, collab-
orative, committed, communicative, competent, dependable, enlarging, enthusiastic, intentional,
mission conscious, prepared, relational, self-improving, selfless, solution oriented, and tenacious.
Rose (2007) suggests that team players exhibit good listening skills, are cooperative not com-
petitive, remain optimistic and happy, are adaptable to change, and should be good negotiators.
An effective team player demonstrates reliability, communicates constructively, listens actively,
functions as an active participant, shares openly and willingly, cooperates and pitches in to help,
exhibits flexibility, shows commitment, works as a problem solver, and treats others with respect.
Mariam (2003) lists a successful team member as someone who has excellent technical and pro-
fessional competence; good interpersonal skills; a sharing, giving tendency; respect for authority;
and concern for the customer. Such individuals are generally self-reliant, happy people who wel-
come feedback. They also have a finger on the pulse of the team, are dependable, and demonstrate
integrity, honesty, and trust. As you can see, there are many ideas about the nature of an effective
team player, thus giving each person several ways to engage in a group and become an effective
member.
In summary, a team leader must be willing to take the time and make the effort to resolve the
issues that arise during the stages of team development. As the complexity of work continues
Leading and Individual Communication Chapter 6
to increase, and as business becomes more global, the use of cross-functional, virtual, and self-
managed teams will also rise. Leaders determined to build the best team possible should conduct
team-building programs designed to build trust, support, and communication while reducing
conflicts.
In the last two sections of this chapter, we discuss the use of communication in the workplace.
6.4 Leading and Individual Communication
In this chapter the topic of communication may be presented last, but it certainly is not the least
important. In fact, a case can be made that communication represents one of the most important
aspects of managing and leading organizations.
Communication is the process of transmitting, receiving, and processing information. It occurs
when one person transmits an idea to another person or to a group of people. It is also the flow of
information that moves within an organization as well as across organizational boundaries. No
group or organization can exist without communication. Communication involves much more
than simply delivering a message and hoping that people understand; it also includes the transfer-
ence and the understanding of meaning.
Communication and leading intersect on many levels. A leader or manager communicates with
other individuals throughout the day. The same manager is part of an overall communication
system within the organization. This section examines individual communication processes.
Section 6.5 explores organizational communication systems. At the same time, communications
at both levels (individual and company-wide systems) have some common characteristics.
Communication Basics
Communication is a process that includes several basic principles. These principles, which hold
true throughout all types of organizations, tell us that communication is
• dynamic
• continuous
• unrepeatable
• irreversible
• complex
Communication is dynamic because it constantly undergoes change. One message feeds another
message, and one type of experience feeds other experiences. The communication process is con-
tinuous because it never stops. Even by saying nothing, leaders are communicating something
about what they value. Silence can be one of the most powerful communication tools.
Communication is unrepeatable. The very same message delivered to two different people is
essentially two different messages. That principle holds true even when we deliver the same mes-
sage twice to the same listener. The leader must frame the message for the intended audience.
Leaders deliver financial information to finance people in different ways than they communicate
such information to nonfinance people. Nonfinance people do not have the technical knowledge
that finance-savvy people possess. For example, a finance person will know that the terms yield
and internal rate of return have basically the same meaning. Someone not acquainted with finance
might not. An effective communicator frames the message to match the intended audience.
Leading and Individual Communication Chapter 6
Some processes can be reversed, but communication remains irreversible. We may wish we could
take something back that we said, but we cannot. All we can do is try to clear up any confusion,
perhaps apologize, and restate our position. Communication is also highly complex, not only
because of its many parts but also because it involves human beings. People are all different, and
they bring different experiences, insights, and biases to a conversation. There is nothing totally
straightforward about the ways people communicate or interact with each other.
Barriers to Interpersonal Communication
As people at work interact with each other, a series of barriers can interfere with effective inter-
personal communication. Table 6.3 presents some of the common barriers.
Table 6.3 Barriers to interpersonal communication
Individual differences Situational factors Transmission problems
Age Emotions, such as mood and tone Language
Gender Distractions Slang
Exclusive language Settings Technical terminology
Educational level Disability—sender
Organizational rank Disability—receiver
Personalities Nonverbal contradictions
Individual Differences
Managers and supervisors are normally of different ages, which can create a generation gap in
conversations. Substantial evidence suggests that women and men communicate in different
ways on the job, especially when one gender supervises the other. Exclusive language involves
using words and concepts known only to a select group (think of sports metaphors), thereby
excluding others (people who do not follow sports). Entry-level workers and workers with low
levels of education may have trouble follow-
ing some specialized conversations related
to high-level duties.
People at higher organizational rank are
often intimidating to subordinates. At
other times, the leader suffers from a lack
of credibility. Without trust between the
leader and the follower, communication
tends to be flawed. Most of us tend to
believe the messenger before we believe the
message, and the resulting trust and cred-
ibility problems are destructive to clear
communication.
And finally, some people just do not get
along, which means their personalities can
get in the way. Big egos can cause politi-
cal battles, turf wars, and the overzealous
© monkeybusinessimages/iStock/Thinkstock
▲▲ Differences in gender can create barriers to communication
in the workplace, particularly when one gender supervises the
other.
Leading and Individual Communication Chapter 6
pursuit of power and resources. Egos influence how we treat each other and how receptive we are
to being influenced by others.
Situational Factors
Numerous situational factors can derail an interaction with a colleague at work. It is important
to be aware of your mood and tone when you speak to others, because things said in the heat of
the moment often come back to haunt you. It is also important to be aware of distractions, such
as construction noise near an office meeting, which may prevent people from giving their full
attention to the conversation. Moreover, it is important to be aware of the timing and setting of
sensitive communications or announcements, especially when they involve layoffs and termina-
tions, closing a location, or the death of an employee. In each of these scenarios, transmitting and
receiving significant information becomes much more difficult.
Transmission Problems
Language and slang can create confusing messages in domestic and international settings.
Someone who is not versed in popular culture may not understand current terminology, such
as twerking, introduced in the early part of the 2000s. Conversations become far more complex
when two people who have different first languages attempt to communicate.
Technical terminology includes the usage of terms specific to a person’s vocation or occupation.
Technical terms are used in many areas, including information technology, accounting, research
and development, and others.
Sender disabilities are mostly related to speech and speech impairments. Receiver disabilities
include hearing and sight problems. Nonverbal contradictions occur when a person’s body lan-
guage does not match the verbal message. Someone who says, “Yeah, that’s great work,” while
looking disinterested and bored is not exactly sending a ringing endorsement. Employees will
pick up on the disparate messages when a leader delivers information in this way.
Overcoming Interpersonal Communication Barriers
When carrying on a conversation, the sender and receiver both have important duties. Fulfilling
your end of the conversation can help you avoid problems associated with miscommunication,
especially those that lead to unnecessary conflicts. The requirements for the two persons engaged
in a conversation are outlined in Table 6.4.
Table 6.4 Creating high-quality individual communication
Sender duties Receiver duties
Awareness of barriers Active listening
Empathy Seek clarification of the message
Careful attention to nonverbal cues Provide constructive feedback
Confirmation of the message
Senders should be aware of all types of barriers. Effective leaders are especially gifted at under-
standing what might prevent a message from arriving as it was intended. They exhibit empathy
and understanding of the audience by “walking a mile in their shoes.” Good communicators
Leading and Individual Communication Chapter 6
make sure what they say verbally matches with their body language, including posture, eye con-
tact, physical distance from the other person, and other nonverbal messages. Effective leaders
make sure messages arrive as they are intended. They confirm by asking simple questions, such
as, “Do you understand?”
Remember that a sender or speaker makes up only half of the formula. All members of an orga-
nization appreciate effective receivers who are well versed in the following active listening skills:
• Listen for content: Try to hear exactly the content of the message.
• Listen for feelings: Find out how the source feels about the message.
• Respond to feelings: Let speakers know their feelings are recognized.
• Note cues: Be sensitive to verbal and nonverbal messages.
Receivers who work well with others seek clarification when a message is unclear. It is better to
say, “I don’t understand” than simply guess at a sender’s meaning. This step is especially impor-
tant when carrying out orders or following a supervisor’s directions. Good receivers also offer
constructive feedback. This includes telling others how you honestly feel about something they
said or did. Be sure to provide feedback with real feeling based on trust. Make the feedback
specific. Give the feedback when the receiver is ready to receive it. Finally, offer the feedback in
smaller doses; never give more than the receiver can handle.
Successful interpersonal communication involves a shared commitment by two people. It is easy
to multitask while on the phone, avoid eye contact with and remain disinterested in someone of
lower rank, or send messages in other ways that communicate to the person that his or her mes-
sage is not that important. Good leaders avoid making those kinds of mistakes. If you’ve ever seen
someone who makes everyone around him or her “feel” important, you have been watching an
effective communicator.
The Role of Nonverbal Communication
In interpersonal communication, the tone, the actual words, and the nonverbal cues complement
and complete every message, which means nonverbal cues deserve careful attention. Nonverbal
communication plays a major role in one-on-one interactions. Table 6.5 presents some important
things to remember about nonverbal communication.
Table 6.5 The nature of nonverbal communication
Principle (nonverbal communication . . . ) Implications
Takes place in a context The same nonverbal message has different meanings,
depending on where it is transmitted.
Consists of packages or clusters Several cues are transmitted simultaneously.
Is governed by rules Social norms and traditions shape the use of
nonverbal cues.
Provides clues to the real message Nonverbal cues are difficult to fake.
Connects with verbal to form the full message Behaviors connect with nonverbal actions.
Always communicates Even when you are trying to avoid sending a message, your
nonverbal cues continue to communicate.
Source: Adapted from DeVito, J. (2009). The interpersonal communication book, 12th edition. Boston: Allyn & Bacon.
Leading and Individual Communication Chapter 6
Table 6.5 offers several sweeping inferences. The concept that nonverbal communication takes
place in a context suggests that folding your arms and leaning back in one context may mean
you’re relaxed and are taking everything in; but in another context, the same body language sug-
gests frustration or boredom. Packages or clusters of nonverbal cues are normally transmitted,
which means words are not all that matters. Eye contact, hand gestures, posture, pacing, facial
expression, leg movements, and breathing will be considered simultaneously with the words.
Social norms strongly influence the interpretation of nonverbal cues. The “V” signal made with
two fingers meant “Victory” during World War II in England, symbolized “Peace” during the
Vietnam War in the United States, and is an obscene gesture in some cultures. A wink signals
flirtation in one context and implies that “you’re an insider” in another.
Most of the time, nonverbal communication cannot be used to fool someone. Someone who dis-
agrees with you may verbally signal concurrence but will send other signals, such as looking away
or looking down, that contradict the message. The combination of verbal and nonverbal cues
can send a strong message. A person expressing adamant support for an idea may pound a fist or
shake one in the air. Nonverbal cues communicate even when you are trying to avoid sending a
message. When you are sad or frustrated, body language sends that message even when the words
being spoken are “I’m okay,” or “I’m fine.”
Forms of Nonverbal Communication
Many forms of nonverbal communication take place. People make judgments about the words
you speak, but many other factors come into play as they interpret the message. Among the more
notable forms of nonverbal communication are the following:
• kinesic cues
• appearance
• dress
• artifacts
• touch
• space
• paralanguage
• time
• manners
Kinesic Cues
Kinesic cues are messages communicated
by nonlinguistic body language or move-
ments. These include messages conveyed
by various parts of the body. Examples
of kinesic cues are provided in Table 6.6
(Birdwhistell, 1970).
▶▲A handshake is a form of touch that con-
veys an important message.
Allan Danahar/Digital Vision/Thinkstock
Leading and Individual Communication Chapter 6
Table 6.6 Selected kinesic cues and interpretations
Body element Movement Interpretation
Head nodding
tilting
downward movement
agreement, listening
interest
defensiveness
Eyes gazing
shifting, darting
attentive, honesty
uncertain, lying
Mouth smile enjoyment, pleasure
Shoulders leaning forward
leaning away
slouching
interest, rapport
lack of interest, skepticism
low self-esteem
Hands touching others
touching self
hand over mouth
hands on hips
powerful
nervous, anxious
wishing to escape
challenging
Arms crossed closed to ideas, bored
Sources: Adapted from Pentland, A. (2008). Honest signals: How they shape our world. Boston: M.I.T. Press, 10–40, 105, and Malandro, L. A., & Barker, L.
(1983). Nonverbal communication. Reading, MA: Addison-Wesley Publishing, 226–230.
Appearance
Appearance consists of elements you can control and some that are less controllable. A less con-
trollable element is physical appearance as determined by what others consider to be attractive.
Several studies indicate that people who are physically attractive enjoy a kind of halo effect, in
which others tend to assume they are more intelligent, witty, charming—and even more honest
—than others (Harper, 1993; Schoenberger, 1997).
The other component of appearance can be controlled. Hair styles, dress, and the use of makeup
also convey nonverbal images and messages. Think, for example, of how you react to someone
wearing sunglasses indoors in a dark room or at night. Gaudy makeup or ostentatious hair styles
attract a certain type of attention, which may convey the image of being unprofessional or some-
one who need not be taken seriously. Tattoos also send messages, especially visible, extreme
versions. Women wearing low-cut, provocative, and revealing clothing send different nonverbal
messages than those with conservative outfits. Men who insist on unbuttoning one more button
to reveal more chest also send messages.
Artifacts
Artifacts include additional items, such as jewelry, eyeglasses, and even the car you drive.
Piercings, while more common, still connote an element of rebellion to many people. Both men
and women notice expensive rings, necklaces, and other forms of jewelry. And, some may judge
a person who drives an old, beat-up car as less successful and talented than an individual in the
same profession who is driving an upscale vehicle.
Touch
Physical touch has undergone a metamorphosis, in terms of what may be considered acceptable
or unacceptable. Hugging, backslapping, and other forms of touch have largely been removed
from the workplace, unless express permission has been granted.
Leading and Individual Communication Chapter 6
One element of touch, the handshake, continues to convey important messages. A firm hand-
shake accompanied by eye contact expresses confidence. A weak handshake with eyes averted
signals shyness and other less desirable traits (Brown, 2000). For both men and women, a
firm handshake can create a favorable first impression. At the same time, always be aware of
the possibility that the other person has arthritis or some other condition that makes a firm
grip painful.
Space
Space, or physical distance, sends powerful signals. Substantial evidence suggests the concepts of
personal space vary widely by culture. In the United States, maintaining physical distance creates
a certain level of comfort. Someone who feels his or her personal space has been invaded quickly
becomes defensive. Table 6.7 indicates the five levels of personal space.
Table 6.7 Levels of personal space
Level Distance Communication
Public 12–15 ft To feel protected; eye contact may or may not take place; able to move
freely past the person
Social 4–12 ft Making eye contact, shaking hands, casual conversations
Formal business 7–12 ft Greater distance implies social power (distance from visitor chair to
CEO chair in an office)
Personal 18 in.–4 ft People are able to touch each other; expresses closeness “at an arm’s
length”; for friends and family members; not appropriate for business
Intimate 18 in. or less Expresses closeness and affection; uncomfortable when forced upon a
person (elevators, subway cars, airline seats)
Source: Adapted from Hall, E. T. (1982). The Hidden Dimension. New York: Doubleday.
Violating personal space, or “getting in someone’s face,” indicates aggression and often accompa-
nies an argument or more violent interaction. Effective communicators are always aware of the
proper distance.
Paralanguage
Paralanguage refers to how something is said rather than what is said in a message. Key ele-
ments include tone, phrasing, pacing, pitch, and intensity (Knapp & Hall, 1992). Paralanguage
changes messages from surprised to sarcastic—for example, consider the ways you can say, “Oh,
really?” Pacing indicates when someone wishes to speak or stop speaking. Paralanguage conveys
urgency, especially through pitch. As a speaker in a conversation, awareness of how you are
delivering a message plays an important role. The wrong paralanguage conflicts with the words
that you say.
Time
Time contains two elements: punctuality and promptness, and the pace of life, including business
transactions. Regarding punctuality, in North America, a strong emphasis on being early or on
time exists. Failure to arrive on time signals either irresponsibility or disrespect of the person you
have inconvenienced by being late. In many other cultures, being late may be fashionable or is at
least to be expected. Knowing the arrival habits of business partners constitutes an adjustment
for many persons engaged in international commerce.
Leading and Individual Communication Chapter 6
The pace of life determines the use of time. In cultures where time takes on the characteristics of
a commodity, as in the saying, “Time is money,” it is not to be wasted. Saving time constitutes a
virtue. Other cultures view time differently, seeing it as more fluid (Hall, 1989).
To be on the safe side, your best bet in the United States is to develop a reputation for being punc-
tual. If you have an accident or unavoidable delay, promptly contact the person you were to meet
and explain why you will be late. Failure to do so may harm the business relationship. Chronic
tardiness is likely to inhibit your career. Being known as someone who makes deadlines is a major
career asset.
Manners
Manners are an underappreciated aspect of both verbal and nonverbal communication. Cultural
norms have shifted, and what once was considered common courtesy has changed. At the same
time, you can gain a career advantage by demonstrating good manners. Here are some examples:
• Open the door for others, regardless of gender, with a pleasant greeting.
• Avoid the use of profanity in formal business relationships, even when those around you
curse.
• Keep your mouth closed while chewing food; do not talk with food in your mouth.
• Let others finish their sentences without interrupting.
• Generously use the words please and thank you.
• Compliment others for work, effort, and cooperation rather than for their appearance.
In summary, a great deal of what we communicate and how we communicate will be dictated by
nonverbal cues. Taking the time to understand the effective use of nonverbal communication,
including appearance, dress, artifacts, touch, space, paralanguage, time, and manners will help
you become a more effective businessperson, manager, and leader in any context.
M A N A G E M E N T I N P R A C T I C E
Communication and Conflict
A strong relationship exists between communication and conflict in organizations. Poor communi-
cation can lead to conflict, while high-quality communication can prevent or help resolve conflicts.
As a manager or leader, your role often is to settle various kinds of disputes among members of
your company or organization. Effective communication skills can assist in every step of the process.
Following are the classic steps involved in resolving a conflict:
1. Identify the nature of the conflict.
2. Identify all parties involved in the conflict.
3. Discover the positions of all parties involved.
4. Look for a bargaining zone.
5. Reach a resolution.
Communication skills are vital when seeking to understand the nature of a conflict. Effective man-
agers know the right kinds of questions to ask in order to fully comprehend what has happened.
(continued)
Leading and Organizational Communication Chapter 6
6.5 Leading and Organizational Communication
Although it is clear that individual communication and organizational communication are not,
and cannot be, completely separate topics, here we will look at them independently. In general,
two communication systems pass messages through the organization. The formal communi-
cation system is composed of every organizationally approved channel. These include letters,
memos, meetings, direct conversations, bulletin boards, the company’s website, company maga-
zines and newspapers, satellite transmissions, cell phones, and interconnected laptop systems,
including those with GPS locators. The second network—the grapevine, or informal communi-
cation—emerges through social interactions among employees.
Oftentimes, an outburst such as a shouting match or a deliberate violation of a rule is the end prod-
uct of the conflict, not the cause. Part of the process, at the point, begins with establishing a sense
of calm and order by using both verbal and nonverbal cues.
Next, although only two persons may seem to be involved in a dispute, others close by often have a
vested interested in the outcome. Your communication skills can help you find out who is involved
and why. Listening becomes an important ingredient in the process.
The third step, discovering the positions of all parties involved, requires restraint, listening, and pos-
ing the right kinds of questions. An effective conflict manager knows that it is important to follow
up in order to gain the greatest level of clarity in a person’s response. The conflict cannot be effec-
tively resolved if you don’t know exactly what each party wants.
When seeking to find the bargaining zone, the concept of best alternative to a negotiated agree-
ment (BATNA) can be helpful. It identifies the lowest acceptable value to a person engaged in the
conflict or in a negotiation. BATNA allows the manager to know what will cause an impasse in try-
ing to reach an agreement (Bazerman & Neale, 1992, pp. 67–68). Effective communication skills
help to identify a person’s “go to the wall” breaking point.
Finally, the conflict will be ended with a win-win, win-lose, or lose-lose settlement. In a win-win,
both sides gain something and believe they are better off. At times, the right question or comment
can reveal such an outcome. In a win-lose, one side gets its way and the other does not. The man-
ager’s job is to carefully explain the rationale for such a decision, thereby reducing the potential for
another conflict in the future. A lose-lose, or compromise, also involves careful explanations to all
parties involved, including the manager’s reasoning for choosing such a course of action.
An effective problem solver remains constantly aware of the barriers to individual communication
while seeking to settle an argument or clash. The individual also employs all possible methods to
improve communication, in his or her role as both sender and receiver when dealing with each
party. Is this an art or a science? The answer is probably both. You can become a more effective
leader by understanding how to help people in your organization get past conflict and move into a
more constructive course of action.
Discussion Questions
1. When trying to identify the nature and parties involved in a conflict, what kinds of questions
might make the situation worse rather than better?
2. If the two sides are at a complete impasse, which type of resolution becomes most and least
likely—win-win, win-lose, lose-lose, or compromise?
3. How do listening skills affect a manager’s ability to resolve conflicts?
Leading and Organizational Communication Chapter 6
Formal Communication Patterns
Each organization is unique. Company leaders design organizational structures suited to the
organization’s unique needs. The same is true for communication systems. In both organizational
structure and communication systems, certain identifiable patterns emerge. Figure 6.3 depicts
four common communication patterns found in business settings: chain, wheel, circle, and all-
channel (Guetzkow & Simon, 1955).
Chain
The chain approach to management communication parallels the concepts of “chain of com-
mand” or “hierarchy of authority.” Messages flow primarily in two directions, upward and down-
ward. Top managers issue orders and relay decisions to middle managers. Middle managers
transfer the information to front-line supervisors. Front-line supervisors inform entry-level work-
ers. Questions, inquiries, and requests for clarification are relayed in the reverse order.
f06.03_MGT330.ai
Wheel
Employee
Employee Manager
Employee
Employee
CEO
Division Manager
Region Manager
Area Manager
Chain
Team
Member
Team
Member
Team
Member
Team
Member
Circle
Supervisor
Middle
Manager
Entry-Level
Employee
Entry-Level
Employee
Entry-Level
Employee
All-Channel
Figure 6.3 Formal communication patterns: Chain, wheel, circle, all-channel
Source: From GRIFFIN/MOORHEAD. ORGANIZATIONAL BEHAVIOUR, 7E. © 2004 South-Western, a part of Cengage Learning, Inc. Reproduced by
permission. www.cengage.com/permissions
www.cengage.com/permissions
Leading and Organizational Communication Chapter 6
Directives sent through the chain approach to management communication indicate centraliza-
tion: a form of organizational structure in which a low degree of delegation of decision making,
authority, and power takes place. Lower-level employees become so-called order takers and order
followers in such a system. Managers and employees who violate the chain of command by com-
municating directly with other departments are said to “walk the gangplank” and disrupt the
communication system. The chain design can be characterized as a mechanistic approach to
organizational communication, largely driven by rules, procedures, titles that indicate organiza-
tional status, and formal relationships between employees.
The chain design offers benefits to certain types of organizations. The model fits situations in
which precision in carrying out tasks or assignments holds high priority. Military and police
organizations serve as prime examples; although the chain works well only within the organiza-
tion rather than when one unit (police) must coordinate with other units (fire, storm cleanup
departments, etc.). The chain model can also be found in companies that produce standardized
products and have few needs for innovation or change.
Wheel
In a wheel arrangement, a manager or supervisor is the center of the wheel. Individual spokes,
or communication channels, connect the manager to subordinates. In such a system, the man-
ager retains information and dispenses it to employees as needed, serving as a control center.
Individual employees communicate only with the manager and not with one another.
The wheel approach may be used in task forces or project teams, especially when members are
disbursed geographically. For example, should a team be formed to identify and purchase a new
manufacturing site, members of the group may be sent to a variety of locations where they col-
lect information about the costs of land, the availability of contractors and laborers, access to
transportation systems, the nature of the local government, prevailing wages, and other factors.
Each reports to the head of the task force, who then can relay the information to decision makers.
A similar situation arises when teams are disbursed to various countries to identify those that
would be targets for international expansion.
Normally, a wheel approach is not appropriate to a continuing managerial situation. Over time,
employees do not usually remain isolated from each other. Exceptions are possible, such as when
a series of park rangers reports to a central office regarding fire threats and other activities in the
park system.
Circle
A circle resembles the wheel approach, only without the central hub. In a circle system, members
communicate freely with other members, even when one member of the circle is the formally
designated leader. The flow of communication, however, goes around the wheel, either clockwise
or counterclockwise. This method matches work that takes place sequentially. One member’s
end product becomes the beginning point for the next member, for example, when one member
involved in a project completes his part of a project report about the work and passes it along to
the next team member who then adds her section.
The circle approach may be found in task force operations as well as in laboratory settings where
experiments take place in a carefully constructed format. It might also fit with certain creative
endeavors, such as preparing advertisements or market research projects.
Leading and Organizational Communication Chapter 6
All-Channel
In an all-channel communication arrangement, messages move freely across organizational
ranks and members of a team, group, or department. Members determine which people should
receive messages, regardless of title or status. The all-channel approach to communication design
matches an increasing number of departments and companies. Many Internet firms, such as
Google, maintain open work spaces that have no doors and walls. Employees move about freely
and are encouraged to develop and propose new and innovative ideas. Managers work side by side
with other organizational members. The all-channel method empowers employees and encour-
ages innovation. Consequently, it has often become the method of choice for research and devel-
opment departments as well as other units that emphasize creativity.
A person is not likely to go into a company and quickly identify the communication pattern.
Some clues may be obtained from the information provided in Table 6.8. Many organizations
incorporate elements of least two of the systems. Some projects are directed by using a wheel
pattern, others by a circle (Lin & Benbasat, 1991). Other companies may maintain an all-channel
approach organization-wide, but use a wheel or circle in certain circumstances. The least flexible
chain approach, while less common, may be the most visible to an outsider.
Table 6.8 Managerial messages and communication systems
Pattern Common messages
Chain Memo/directive, bulk email, formal presentation by manager; little or no feedback expected
Wheel Interpersonal conversations, email exchanges, calls, meetings directed by a supervisor;
feedback needed
Circle Checklist with notation when task is completed, interpersonal conversations between
members, emails, calls; less structured meetings with feedback expected
All-Channel Interpersonal conversations, unstructured meetings, emails, calls; constant feedback in all
directions
Types of Messages and Communication Goals
Company leaders guide organizations through dull periods and dramatic challenges. Messages
vary from straightforward concepts to complex presentations designed to change attitudes, opin-
ions, or values. Table 6.9 indicates a series of messages and their goals and the corresponding
degree of complexity associated with each goal.
Table 6.9 Messages and goals
Type of message or goal Degree of message complexity
Remind
Schedule/coordinate
Lowest
Inform
Solicit input
Report findings
Moderate
Persuade Highest
Leading and Organizational Communication Chapter 6
A message designed to remind can target individuals, groups, or the entire organization.
Reminders of meetings, deadlines, and other time-related issues are commonplace in compa-
nies. Messages that schedule or coordinate activities are sent to sets of individuals working on
a common project or task. Planning processes dictate schedules. Informational messages vary
more widely. At times the information can be relatively mundane; at others, key organizational
events, outcomes, or decisions are transmitted. Soliciting input ranges from collecting opinions
to gathering full sets of data to make the most informed decision possible. Reporting findings
requires complete descriptions of an analysis and may invite further discussion and evaluation.
The greatest message complexity occurs in attempts to persuade because either a logical or emo-
tional presentation designed to change an attitude must be constructed. Faulty reasoning or lack
of a compelling argument will cause the persuasion attempt to fail (Burnes, 2004).
Types of Formal Messages
Formal communication systems move information throughout the organization. The informa-
tion can travel upward, downward, laterally, or in all directions at once. The most common types
of messages transmitted via formal channels include
• job instructions
• job rationale
• standardized information
• team and group coordination
• questions and answers
• decisions and plans
• ideological indoctrination
Job instructions take many forms. A direct address by a supervisor instructs an employee how
to carry out a task or set of tasks. Employee training programs provide information to new hires.
Performance appraisal systems correct ineffective performance. Mentoring programs render
additional insights and information about how to successfully perform a task or job.
A job rationale answers the “why” questions. In other words, managers explain why a job should
be completed in a certain way and what makes the job important. A manager who tells the
employee, “We do the job this way, because it saves time,” or “We ask you to compile sales sta-
tistics by store so that we know which products do well in each unit, and which do not,” has
provided the rationale for the job.
Standardized information consists of items that apply equally to everyone in the firm, or to every
person in a given department. Examples include the company’s list of rules, protocols for evacu-
ation in case of an emergency, and any procedures that apply to specific units in the company.
Standardized information in a retail store consists of how inventory is managed (move the oldest
merchandise to the front of the shelf), how cash is handled (leave $100.00 in bills and coins in
the register each day), and protocols for accepting two-party checks and other forms of payment.
Standardized information in the production department includes safety procedures and rules as
well as methods for completing each task. Standardized information in accounting contains mes-
sages about which procedures are used, such as methods of depreciation and methods of valuing
inventory.
Team and group coordination messages set meeting times, dates, and deadlines, and they help
establish relationships between members. Members of the workplace safety committee know
Leading and Organizational Communication Chapter 6
that the group meets the third Monday of each month, that a deadline for completing a report
about a recent series of accidents looms, and that the committee always consists of six mem-
bers—two from production, one from human resources, one from quality control, and two other
individuals. Systems for electing a committee chair may also be part of the coordination effort.
Questions and answers move upward, downward, and laterally in business organizations.
Questions may be posed by employees to managers, by managers to employees, or by members at
the same rank, such as from one supervisor to another.
Decisions and plans shape the direction of the company. Managers convey them verbally and
in writing. Effective organizations chart planned courses that every employee can understand
and follow.
Ideological indoctrination statements tell employees, “This is a great place to work.” At times,
the message begins with a company’s statement of mission. Support for ethical behaviors, social
responsibility, and the conservation of resources accompanies ideas about the company’s internal
environment as being welcoming and helpful.
Information Richness
One method used to describe business and
management communication employs the
concept of information richness, or the
potential information-carrying capacity of
a communication channel. At one extreme,
rich communication means the channel
provides opportunities for feedback, has a
full range of visual and audio communica-
tion, and presents the opportunity to per-
sonalize a message. At the other extreme, a
lean channel offers no venue for feedback,
is impersonal, and can transmit only a lim-
ited amount of information (Lengel & Daft,
1988). Table 6.10 summarizes the contin-
uum from the leanest channel to the rich-
est channel.
Table 6.10 Channel richness
Leanest channel Moderate richness Richest channel
Impersonal static
channel
Personal static channel Interactive channel Face-to-face
Routine, clear, general;
simple messages
Personal message,
prompt response
needed; slightly complex
messages
Some interaction is
valuable; moderately
difficult messages
Nonroutine, ambiguous;
difficult messages
Source: Adapted from Lengel, R. H. & Daft, R. L. (1988). The selection of communication media as an executive skill, Academy of Management Executive,
(2) August, 225–232.
Creatas/Thinkstock
▲▲ Interactive channels such as videoconferencing maintain
many of the benefits of face-to-face interactions.
Leading and Organizational Communication Chapter 6
The richest channels suit the most complex messages and circumstances that require discus-
sion and interaction. Interactions take place in person or face to face. As a result, the channel
provides for both verbal and nonverbal transmissions. Intonation and other cues accompany the
person’s words. These interactions resemble a dance featuring an exchange of information, ideas,
and opinions. In presentations and other more formal settings, other cues can be added by using
visual aids, such as a PowerPoint presentation or printed handout materials.
Interactive channels offer many of the benefits of face-to-face meetings. Videoconferencing and
conference calls retain the ability to move beyond words to inflection and other cues. In the case of
videoconferencing, visual cues are available. While not at the same level as the immediate feedback
of an actual face-to-face meeting, interactive channels allow participants to visit concurrently.
Personal static channels such as telephone calls, text messages, and instant messages provide
leaner communication, because visual elements and nonverbal cues are absent. Quick response
systems such as instant messaging create what are nearly conversations, in which users can pose
questions and answers along with proposals and counterproposals. Personal static channels facil-
itate a great deal of today’s business operations, because employees and customers can commu-
nicate via these channels.
The leanest communication channels are impersonal static channels. Verbal intonation and non-
verbal cues cannot be transmitted through these channels. Lean formats include most printed
documents, such as letters, reports, and proposals. Standardized information with less complex-
ity can be sent through leaner channels. In-depth explanations of complicated issues are possible;
however, they are transmitted without the benefits of other channels. In summary, channel rich-
ness is an effective tool for use in selecting the best way to send a message. By analyzing channel
richness, a manager can select the best channel for any communication effort.
Barriers to Formal Organizational Communication
Communication systems in organizations require careful construction and constant mainte-
nance. As new technologies have emerged, the potential barriers to high-quality communica-
tion have risen. Effective leaders recognize the importance of efficient communication systems.
Barriers that can inhibit formal communication include
• information overload
• physical barriers
• interpersonal barriers
• informal contradiction of the formal message
Information overload problems have grown in the past two decades, primarily due to the influ-
ence of additional new technologies. Any manager who takes time away from the job is likely to
return to a filled email inbox. People can be reached in various ways, and monitoring each com-
munication takes time. The possibility of lost messages or misunderstood messages results from
information overload.
Some physical barriers include time zone differences, telephone line static, and computers that
crash. Office walls also can be physical barriers to effective communication, which is one reason
that many organizations are adapting open floor plans with cubicles instead of traditional walls.
All the interpersonal barriers that interrupt communication between individuals can also create
formal communication problems. Issues such as organizational rank and personalities are pri-
mary examples of these problems.
Leading and Organizational Communication Chapter 6
Informal communication, which can sometimes take the form of gossip, is fun. Consequently,
rumors often continue even after management has disputed them through the formal communi-
cation system. The persistent rumor problem can affect morale when the stories are about layoffs,
lack of pay raises, and terminations of popular managers.
Overcoming Barriers to Formal Communication
To make sure messages and information travel efficiently and effectively through an organization,
the company should establish and maintain a good management information system (MIS). A
well-designed management information system consists of the people and technologies used
to collect and process organizational information. An effective MIS begins with effective people
who know how to collect important organizational information. These individuals are found in
many areas including accounting, forecasting, production, quality control, and human resources,
as well as at executive levels in the organization.
An effective MIS maintains the best technologies. Company phone systems should be easy to
use, the website should be easy to negotiate, and systems should be in place to make sure that key
decisions and announcements reach every person who needs to hear them.
An effective MIS carries quality information. Key company information will be timely, accu-
rate, important, and summarized. A manager needs to quickly access important statistics and
information for decision-making processes. Individual employees need to find the types of data
that help them perform their jobs most effectively. For example, to best serve the client’s needs,
a customer service representative should be able to access information about previous contacts a
person or business has made with the company.
Managing the Grapevine
The grapevine has three main characteristics. First, an organization’s leadership does not control
it. Second, employees frequently perceive the information as accurate and believable, even more
than a formal communication issued by top management. Third, the grapevine is used largely to
serve the self-interests of the people within the grapevine stream. One important consideration
is how information gets moving through the grapevine.
Many employees assume that rumors start because they make interesting gossip. Actually, the
grapevine is fed by situations that are important to people, ambiguity in the workplace, and
conditions that arouse anxiety in employees. The grapevine flourishes in organizations because
work situations frequently contain these three elements. The secrecy and competition typically
present in organizations around issues such as a new boss coming on board, downsizing, and
organizational realignment create the conditions that both encourage and sustain the grapevine.
While managers cannot eliminate the grapevine, they can manage it by infusing as much correct
information into the front end of the communication pipeline as is possible. They can also deal
quickly with false rumors, both through formal denials and by exerting pressure on the informal
channel. Effective leaders also recognize the potential of the grapevine to pass along compli-
ments to a worker through the employee’s social network on the job.
The terms complement and supplement have been applied to the grapevine. It adds additional
richness to formal communication channels. When managed correctly, its damaging effects can
be limited, and positive aspects can be accentuated.
Communication systems are the lifelines of organizations. Effective communicators often enjoy
successful careers and personal lives. They understand the factors that can disrupt quality
Summary Chapter 6
communication and take steps to overcome those problems. They are good listeners. They also
monitor messages in the formal and informal communication channels to make certain the
proper information arrives where and when it is needed. Anyone who can work a room or make
an impressive speech has a major advantage in the area of leadership and communication.
Summary
A group consists of two or more people interacting who share collective norms and goals and
have a common identity. Members of the organization establish formal groups to achieve com-
pany goals and objectives. Three of the most common types of formal groups are work groups,
committees, and project groups. An informal group emerges without the endorsement of orga-
nizational leaders; it does not have a designated structure or work toward organizational goals
other than socialization and friendship. Three forces tend to bring informal groups together:
activities, shared sentiments, and interactions. Formal and informal groups consist of four types
of members: the leader, opinion leaders, members in good standing, and the gatekeeper.
The essence of a team is a shared commitment. The most common types of teams include cross-
functional teams, virtual teams, and self-managed teams. Both groups and teams go through
stages of development that include forming, storming, norming, performing, and adjourning.
Good teams result from a match between the composition of the team, the design of the work,
contextual factors, and process variables. Three managerial activities that can help managers lead
employees to greater degrees of team participation are found in recruiting and selection, coach-
ing, and reward systems.
Social loafing occurs when team members give less effort to a group than they would if working
individually. Group size can affect the degree of employee effort in the group, as can the level of
group cohesiveness. Overly cohesive groups, however, may be prone to problems such as group-
think, when group pressures for conformity become so intense that the group avoids unusual,
minority, or unpopular views. Individual employees can take steps to become better team players,
regardless of other circumstances.
Communication is the process of transmitting, receiving, and processing information. It takes
place on an individual, interpersonal level and travels through organizational systems. Barriers
to individual communication include individual differences, situational factors, and transmission
problems. Both senders and receivers can seek to resolve these problems. Nonverbal communica-
tion includes kinesic cues, appearance, dress, artifacts, touch, space, paralanguage, time, and man-
ners. Effective communicators are aware of the messages they send via these nonverbal signals.
An organization’s formal communication system is composed of every channel that has been
approved by management. Four common communication patterns found in organizations
include the chain, wheel, circle, and all-channel forms. The most common types of messages
transmitted via formal channels include job instructions, a job rationale, standardized informa-
tion, team and group coordination information, questions and answers, decisions and plans, and
ideological indoctrination. Information richness is the potential information-carrying capacity of
a communication channel, ranging from lean to rich. The barriers that can inhibit formal com-
munication include information overload, physical barriers, interpersonal barriers, and informal
contradiction of a formal message. A management information system consists of the people and
technologies used to collect and process organizational information that can help overcome the
barriers to formal communication.
The grapevine, or informal organizational communication, exhibits three characteristics. First,
an organization’s leadership does not control it. Second, the information often is perceived as
Summary Chapter 6
accurate and believable, even more than a formal communication issued by top management.
Third, it is largely used to serve the self-interests of the people within the grapevine stream. One
important consideration is how information gets moving through the grapevine. Managers can
work to make sure that informal information complements and supplements what has been sent
through formal channels.
C A S E S T U D Y
The Slacker
Margaret Kontras is at her wit’s end. Two months ago, she was placed in charge of a task force
created to oversee the opening of a second location for a high-end fashion retailer. The original
store, Chic Central, had achieved a great deal of success in a freestanding location in a downtown
trading district. Now, the store’s manager and owner has decided to find a property for a second
store, on the opposite side of the city. She places Margaret in charge of three activities. Her first
task is to identify the best physical property. Second, she will be involved in hiring an architect and
interior designer to create a retail experience that feels similar to that at the first location, yet is dif-
ferent enough so that it does not appear to be simply another store in a chain of stores. And third,
Margaret will direct the purchases of inventory for the new location, whose grand opening is tar-
geted to take place between Halloween and the first week in November.
The task force consists of three other individuals from different parts of the company. An accoun-
tant, a successful salesperson, and a human resource assistant manager make up the rest of the
team. Each member has been chosen for a specific reason. The accountant will focus on financial
aspects of the property purchase. The salesperson will be involved in helping to design the interior
of the store and selecting inventory, and the human resource manager will contribute to each activ-
ity as needed.
One problem facing Margaret is that the salesperson, Kendrick, is less than thrilled to be assigned
his task. Kendrick believes that he is losing money by not staying full-time on his sales station,
because he will miss serving some of his favorite customers when they visit the original store.
Consequently, Kendrick has been making a series of excuses to stay out of site visits when the team
examines various properties. As the process of purchasing inventory moves forward, Kendrick sits
lifeless in meetings without contributing ideas or commentary.
Unfortunately, Kendrick’s attitude is beginning to rub off on the other team members. They
grumble that finding the best location is “taking too long” and “wasting time.” No one seems to
want to engage in creating the store’s look. It doesn’t help that the three team members have not
seemed to bond with each other in any way; instead, each of them goes his or her separate way.
Soon Margaret feels like she is doing all of the work and not getting any help. She worries that
store management will blame her for the slow pace of the task assignment, which might result in
the store not being ready in time for the lucrative shopping season from Thanksgiving to Christmas.
She knows that unless she inspires some effort in the team, especially from Kendrick, the success of
the second store might be in jeopardy before it even opens.
Discussion Questions
1. What stage of team development is taking place in this scenario?
2. How can Margaret manage these individuals to get them to cooperate and give greater effort to
the task?
3. What type of communication should Margaret use to deal with Kendrick?
4. Should Margaret communicate with the store owner-manager at the primary location about the
problems she is encountering? Why or why not?
Key Terms Chapter 6
Key Terms
adjourning The process that occurs when members prepare to disband the group.
communication The sequence of transmitting, receiving, and processing information.
formal communication system Messages that travel through organizationally approved
channels.
formal group A group that an organization establishes to seek company goals and objectives.
forming The process that occurs when members get oriented to the group and start getting to
know each other.
group A collection of two or more people interacting who share collective norms and goals
and have a common identity.
group cohesiveness The degree of goal commitment, conformity, cooperation, and group
control over members that exists.
groupthink A phenomenon that results when group pressures for conformity become so
intense that the group avoids any unusual, minority, or unpopular views.
informal communication Messages that travel through social interactions among employees.
informal group A group that emerges without the endorsement of organizational leaders.
information richness The potential information-carrying capacity of a communication
channel.
kinesic cues Messages communicated by nonlinguistic body language or movements.
management information system A group consisting of the people and technologies used to
collect and process organizational information.
norming The stage that takes place after conflicts have been resolved.
norms Rules that govern behaviors in a group.
performing The stage that occurs when members focus on solving problems and completing
their assigned tasks.
social loafing The behavior that occurs when team members give less effort to a group than
they would if working individually.
storming The stage that takes place as individual personalities, roles, and conflicts emerge
within the group.
team A small group of people, with complementary skills, who work together to achieve a
common purpose and hold themselves mutually accountable for accomplishing group goals.
team building An effort that consists of all activities designed to improve the internal func-
tioning of work groups.
Critical Thinking Chapter 6
Critical Thinking
Review Questions
1. Define the term group.
2. What two types of groups form in organizations?
3. Describe three types of formal groups that are present in business organizations.
4. What types of teams are present in today’s organizations?
5. What are the stages of team development?
6. What is a norm, and what three types of norms are present in business organizations?
7. What four characteristics are parts of forming effective teams?
8. What is social loafing?
9. Define group cohesiveness.
10. Define communication, and name the two primary forms in business organizations.
11. What are the three categories of barriers to individual interpersonal communication?
12. What can the sender and receiver do to improve individual interpersonal communication?
13. What four patterns of formal communication are present in business organizations?
14. What types of information are passed via formal communication channels?
15. Define information richness.
16. What are the barriers to formal communication?
17. Describe a management information system.
18. Define grapevine, and explain how leaders can use such a channel effectively.
Analytical Exercises
1. Explain the role of a leader, opinion leaders, members in good standing, and a gatekeeper in
these situations:
• Group of employees forming a bowling team
• Team of advertising agency employees assigned to create a television commercial
• Work safety committee in a manufacturing company
• City council subcommittee assigned to investigate a mayor’s potential misconduct
2. Explain how the stages of team development would be different in a virtual team as opposed
to an on-site, cross-functional team.
3. Explain how the four characteristics of effective teams would be related to the factors that
increase or decrease group cohesiveness.
4. How would the three types of norms noted in Table 6.1 appear in the following situations?
• Loading dock team at a large trucking firm
• Team of scientists working on a new vaccination
• Professional basketball team
Critical Thinking Chapter 6
5. A semantics problem occurs when a word or comment could be interpreted in different ways.
When a leader tells a subordinate, “I need this project completed as soon as possible,” what
does the leader mean? Is the meaning potentially different from what the employee hears? List
five additional examples of semantics and language problems that could occur at work. Share
your answers with the class.
6. Explain the relationships between group norms, social loafing, and informal communication.
7. Explain how nonverbal cues might complicate the following situations:
• Employee who believes she is being sexually harassed by a coworker
• Employee who believes his performance appraisal results are unfair
• Supervisor who must terminate a popular employee due to the individual’s unethical
actions
8. Explain whether a leader should design a chain, wheel, circle, or all-channel form of commu-
nication in each of these situations:
• Virtual team looking for a new geographic location for a store in a foreign country
• Project team bringing a new product to market in a pharmaceutical company
• Work group in a manufacturing plant