Analyzing Leadership Decisions Your final Portfolio Paper is a thoughtful analysis of an ineffective or poor leadership decision. You may use a well-known leadership decision such as the 2011 decision

Module 1 refers to the use of: prescriptive and descriptive decision making, heuristics and critical thinking used for decision making.

• Behavioral models of managerial decision-making. Marketing Letters, 23(2), 405-421.

• Ballantyne, S. (2012, September). Leadership decision-making utilizing a strategic focus to enhance global achievement. Journal of Management and Marketing Research, 11, 1-6.

• Weick, K. E. (1993). The collapse of sensemaking in organizations: The Mann Gulch Disaster. Administrative Science Quarterly, 38(4), 628-652.

Recommended

• Burns, J. (1979). Two excerpts from leadership. Educational Leadership, 36(6), 380.

• Goldfarb, A., Ho, T., Amaldoss, W., Brown, A., Chen, Y., Cui, T., & Yang, B. (2012). Module 2 –Learn about specific models of decision making and explore thevarious tools managers and leaders can use when making decsions within the contect of the organization setting.

While most leaders will gravitate toward a particular model of decision making, all models are appropriate for all leaders—it depends on the circumstances. The following illustration provides recommendations for when each of the models should be used.

The Vroom-Yetton-Jago decision model was based on the work of Victor Vroom and Phillip Yetton in the early 1970s. In the late 1980s, Vroom worked with Aurthur Jago to incorporate a mathematical component to the model. Subsequently, this model goes by a combination of names.

This model provides guidance on how to make a decision and whether the decision should be made by one person versus by a team. Three primary factors impact the degree of participation from the team:

• Decision quality

• Subordinate commitment

• Time constraints

The leader chooses to use his team in the decision-making process by asking a series of questions. Take a look at the Vroom-Yetton-Jago decision model illustration.

http://www.mindtools.com/media/Diagrams/Vroom.gif

Transcript for Image

But what do all these letters and numbers mean? They represent the different leadership styles. Click each tab to learn more.

• Autocratic 1 (A1)

• Autocratic 2 (A2)

• Consultative 1 (C1)

• Consultative 2 (C2)

• Collaborative (G2)

There are a number of tools that are available for leaders to use in making decisions. Decision trees, mind maps, and diagrams are all popular tools to use in decision making.

Module 3 - In week three, we will seek to understand the problem solving process. Also, we will look at how to properly formulate management questions and develop effective problem statements. Keep in mind that management and leadership are required to engage in the problem-solving process in order to benefit their organization and also maximize organizational effectiveness.

 Bjorklund, R. L., & Holt, S. S. (2012). Overcoming barriers to participation in diverse strategic decision-making groups: A leadership perspective. International Journal of Business and Management, 7(6), 49-57.

 Nickerson, J., Yen, C., & Mahoney, J. T. (2012). Exploring the problem-finding and problem-solving approach for designing organizations. Academy of Management Perspectives, 26(1), 52-72.

Problem-Solving Process

Burns (1979) shared how “the decision making leader responds to unexpected events by analysis of the relevant facts and reassessment of ends and means” (p. 408). Regardless of the setting where a leader works, she will likely spend a great amount of time solving problems. Understanding the problem-solving process is important for leaders to make effective decisions. Butterfield (2013) suggested that one thing that distinguishes a manager from line staff is the role managers play as problem solvers. The various steps in the problem-solving process are illustrated below: (http://binsinuation.blogspot.com/2012/08/where-indian-politics-just-cannot-reach.html_ - please review diagram

Module 4 - We will turn our attention toward managing group dynamics in a decision environment. As we will see this week, divergent and convergent thinking is quite common in such an environment. Also, we will look at some of the negative consequences of common challenges and decision outcomes. Further, we will take a close look at consensus in the decision-making process and the importance of negotiation in such a process.

• Charrier, G. O. (1972). Cog's ladder: A model of group growth. SAM Advanced Management Journal (00360805), 37(1), 30. (Note: this is a foundational article to the field)

Recommended

• Ben-Hur, S., Kinley, N., & Jonsen, K. (2012). Coaching executive teams to reach better decisions. The Journal of Management Development, 31(7), 711-723.

Whether a group comes together on its own or is brought together by the direction of team leaders, the team’s life typically progresses through several stages. We will review two different models that represent the stages of a team’s life.

Click each tab to view Bruce Tuckman’s model of team development, as explained by Greenberg (2011).

• Forming

• Storming

• Norming

• Performing

• Adjourning/Mourning

Another approach for explaining team development is Cog’s Ladder. The original Cog’s Ladder model was developed in 1972 by Charrier (1972) to better understand how a group goes through a process of growth similar to the maturation process of individuals. This five-step process focuses on individual and group development, as well as the roles and responsibility a team leader holds in the development of team members. A team leader provides guidance and direction, actively listens and encourages clear communication, rewards performance, and creates a nonthreatening environment where goals and standards can be accomplished. The five stages of Cog’s Ladder.

Polite

Why Are We Here?

Bid for Power

Constructive

Esprit

Module 5 - We will take a look at emotional influences and managing biases in the decision-making process. As we will see this week, demonstrating a higher level of emotional intelligence is critical to the manager, the organizational leader, and the decision-making process.

Hess, J. D., & Bacigalupo, A. C. (2011). Enhancing decisions and decision-making processes through the application of emotional intelligence skills. Management Decision, 49(5), 710-721. doi: 10.1108/00251741111130805

Biases in Decision Making

Bazerman and Moore (2013) claim that “overconfidence is the mother of all biases” (p. 14). They argue that if we were more “humble” (p. 15) about our judgments and decisions, we would be more likely to question our opinions and biases. Unfortunately, that is hard to do.

Individual biases can impact the decisions that leaders make. Bazerman and Moore (2013) discuss 12 different biases that impact these decisions. These 12 biases are split into three different categories, based on the heuristic from which they emanate.

Understanding Emotional Influences on Decision Making

Goleman (2005) popularized the term emotional intelligence, or EQ.Goleman built his work off Howard Gardner’s theory of multiple intelligences. Before his work, many leaders mistakenly believed (and still do, for that matter) that they could not control these emotions. Have you ever thought about your own EQ? Take this quiz to see what level of EQ you have. Review the feedback when you are finished to get some ideas on what you can do to enhance your EQ, if needed.

The basis of Goleman’s work is the belief that people who understand their own emotions are able to understand the emotions of others. EQ consists of several attributes:

1. Self-awareness

2. Self-management

3. Awareness of others

4. Empathy

5. Relationship management

As a result of managing emotions at work, leaders can increase both their personal and social competency. Leaders using EQ tend to encourage cooperation and collaboration in the workforce. They build meaningful connections with their subordinates, which often lead to better decisions and outcomes for their organization.

Module 6 - As we move ahead into the sixth week of the course, will turn our attention toward conflict management and the decision-making process. As such, will look at the various types of organizational conflict and their impact on decision-making.

• inha, A. B. (2011, December). Conflict management: Making life easier. IUP Journal of Soft Skills, 31-42.

Recommended

• Brand, W. (2014). How to effectively manage conflict. Journal of Protective Coatings & Linings, 31(1), 75-79.

Conflict is broadly defined at the process that “begins when one party perceives another party has negatively affected, or is about to negatively affect, something that the first party cares about” (Robbins & Judge, 2010, p. 194). Conflict can also be described simply as a state of disharmony. When there are high levels of conflict, hostility and frustration may result, leading to decreased productivity. On the other hand, conflict has the potential to spark creativity, inspire constructive feedback, and ultimately result in increased problem solving. The key is in understanding the difference between positive and negative conflict.

• Positive conflict occurs when members disagree, but show mutual respect for differences in individual thoughts, feelings and ideas. Instead of taking statements personally, individuals assert themselves to achieve positive results; thus, misunderstandings can be easily clarified, communication channels are opened, the ability to sense problems improves, and ultimately job satisfaction and productivity will increase.

With negative conflict, individuals with differing viewpoints are often viewed as the enemy. Individuals may be more concerned with protecting themselves, or their positions (Robbins & Judge, 2010). In extreme instances, individuals may try to win at all costs. In such instances, negative statements are taken personally. This type of conflict typically results in hurt feelings, growing distrust, personal attacks, and decreased exchange of thoughts, feelings, and information.

As leaders deal with decisions, there are three views of conflict necessary to understand.

• The traditional view sees conflict as negative and dysfunctional. Conflict should be avoided. Leaders using the traditional view of conflict would determine causes of conflict and make corrections in order to improve decisions in the organization.

• Conflict, in the human-relations view, is a natural occurrence and is seen as inevitable. In this view, conflict should be accepted and is often seen as being beneficial to the performance of the organization.

• The interactionist view of conflict actually encourages conflict; it suggests that a minimal amount of conflict keeps organizations from becoming static and leads to change and innovation.

These views are not all that different from one another. While the traditional view sees conflict as negative, the interactionist view similarly recommends that destructive forms of conflict should be avoided. Likewise, the human-relations view recognizes that conflict cannot be eliminated, so it is important to learn to deal with it in a purposeful and productive manner.

Solutions for Addressing Conflict

Choosing the “best” approach to address conflict can be challenging.

 Robbins and Judge (2010) describe five common approaches for dealing with conflict (similar to those presented in the podcast). Click each tab to learn more.

Avoiding

Accommodating

Competing/Forcing

Collaborating

Compromising

Organizational leadership should also be aware of cultural differences in conflict and negotiations. In highly competitive countries, such as the United States, a winner-take-all negotiation style is considered acceptable, whereas it would not be in Sweden, a country that values harmony and fairness. In some countries, such as Japan, conflict is considered a negative interaction and is usually avoided. In contrast, there are parts of Italy where conflict is an acceptable communication norm.

Resolving Conflict

For conflict management to be successful, it is important to get involved and take responsibility for dealing with the conflict situation. Robbins and Judge (2010) share a five-step approach for successfully dealing with conflict.

1. Take responsibility for dealing with conflict. A leader cannot turn conflict into a positive situation if he or she fails to take responsibility for dealing with the situation.

2. Uncover, discuss, and define the real problem. There is nothing worse than having incomplete or inaccurate information.

3. Ask questions and listen. To truly understand the conflict situation, the leader must ask open-ended questions and practice reflective listening.

4. Set goals and create an action plan. Focus on specific, measurable and attainable goals.

5. Follow-up. While the hope is that the four previous steps will have resolved the issue, ensuring the conflict resolution can only happen when the leader ensures the solution achieved the intended goal.

These five steps can help you resolve conflict at your workplace. We all know it will not be easy to seamlessly follow these steps; however, using them as a guideline should help focus the process so you can feel calmer next time you are stuck in conflict.

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Module 7: Cultural Differences and Ethics in Decision Making

In Module 7 you will learn what it means to make ethical decisions. You will also learn about the impact of global ethics, as well as cultural differences in decision making.

Ethical Decision Making

Ethical considerations should be an important component in leadership decision making. Organizational values are vitally important; corporate culture can exert a powerful influence on decisions leaders make in organizations. The culture of an organization provides signals to employees about what is right and wrong. There are many other aspects of an organization that may influence ethical decision making. These include the policies of the organization, the system of rewards and recognition, and the legal standards with which the organization complies.

Codes of ethics and ethics training are important within any organization. It is not enough, however, to simply post a code of ethics and/or train employees on the code. Leaders must create ethical cultures within organizations if ethical decision making is going to occur. Ethics should be embedded in the daily activities of the organization’s employees. This occurs only when there is strong ethical leadership. Employees do what their leaders do. Leaders must demonstrate that ethical behavior and ethical decision making are important. Listen to this podcast and take some time to decide what you would do in the three scenarios.

Robbins and Judge (2010) discussed the criteria that leaders should use to make ethical decisions. Click each tab to learn more.

The utilitarian criterion

The focus on rights

Justice

Using a framework for ethical decision making helps to guide the process for making ethical decisions in organizations. Follow the steps in the Framework For Ethical Decision Making image as you consider a decision you have recently had to make at your workplace. To what extent did you follow this framework? What might you change to improve the process next time you have to make an ethical decision?

One of the challenges leaders face in the global environment is that there are no established ethical standards that are globally recognized. Robbins and Judge (2010) suggest that leaders of global organizations must establish ethical principles that reflect cultural norms in order for high standards to be upheld consistently.

In order to effectively understand ethics, it is first important to understand the difference between utilitarianism and Kantianism.

• Utilitarianism is described as the moral worth of an action, and is determined by its contribution to the overall utility. This view may result in an action being considered moral even when it violates an individual’s rights.

• Kantianism, based off the philosophical beliefs of Immanual Kant, revolves around duty rather than around emotion or feelings. Considering if everyone will act the same and respect all human beings (not just the interest of a select few) are foundational components of Kantianism.

Currently, many parts of the world have ethical guidelines, based often from their cultural belief systems. These guidelines help people to stay within some moral boundary when dealing with others. The problem is many of these belief systems contradict the belief systems of other cultures.

International leaders will frequently face ethical dilemmas such as corruption, bribery and abuse of power. Ethics, according to Cavusgil, Knight, and Riesenberger (2013), are a consideration in all international business decisions. The unfortunate reality is that bribery is very common in many countries, and payments to gain favors are also legal and expected in some countries. Cavusgil et al. (2013) provide a list of countries with low corruption levels—they include Canada, Denmark, Finland, and New Zealand. They also provided a list of countries with high corruption levels—these include nations in Africa and the former Soviet Union states.

Some of the ethical issues a global leader will face include the following:

• Falsifying/misrepresenting contracts or financial statements

• Paying/accepting bribes, kickbacks, or inappropriate gifts

• Tolerating sweatshop conditions, child labor, or other employee abuses

• Employing false/deceptive marketing practices

• Engaging in deceptive, discriminatory, or predatory pricing

• Deceiving/abusing intermediaries in international channels

• Engaging in activities that harm the natural environment

Global corporate social responsibility (CSR) occurs when a leader acts in a socially responsible manner and is meeting or exceeding the ethical, legal, and commercial expectations of stakeholders. While making a profit is the expectation of shareholders of the organization, the organization’s leaders must also meet their shareholders’ ethical and legal expectations. Unethical behavior can damage the reputation of an organization and lead to the risk of criminal and/or civil prosecution and substantial fines.

Cultural Differences and Decision Making

Issues as presented on the previous page may vary from culture to culture. Global decision leaders must understand the impact of cultural differences on decision making. According to Cavusgil et al. (2013), very little research exists on the cultural differences in decision making. It is, however, reasonable to assume that the cultural background of the decision maker can have a significant influence on the decisions made. Decision leaders must understand how their own cultural differences influence their decision making; they also must understand the variations of ethical standards among the countries with which they conduct business.

The concept of ethical relativism is often referred to as “When in Rome, do as the Romans do.” Ethical normativism, on the other hand, refers to ethical behavioral standards that are universal. These standards are believed to be those that organizational leaders should uphold around the world. Most global decision leaders of international firms strike a balance between these two. Global leaders must make decisions based on a set of values and standards that address the many dilemmas they will encounter due to cultural differences.

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Module 8: The Decision Leader

In Module 8 you will learn about leadership theories and the future of leadership in the changing economy. You will have also an opportunity to reflect on your own leadership.

Leadership Models and Theories

Leaders are responsible for identifying the styles and traits they are most inclined to use, appropriately diagnosing the situation at hand, and adapting their leadership style to fit the situation. In order for leaders to positively affect organizational effectiveness, they must first know themselves and then learn about their subordinates. By recognizing what is lacking in a particular situation (i.e., knowledge, commitment, motivation, competence), leaders can effectively adapt their leadership style to accommodate the area that is lacking, thereby increasing the individuals’ overall effectiveness.

Understanding different leadership theories is important for decision leaders. Early theories of leadership described by Robbins and Judge (2010) include trait, behavioral, and contingency theories. The major difference they suggested between behavior and trait theories was that traits could not be taught. It was thought that people with certain characteristics would be good leaders. Behavioral theories were based on the fact that behavior could be taught, so anyone could be trained to be an effective leader. Robbins and Judge, in discussing the Fiedler contingency model, proposed that effective group performance depended on the proper match between the leader’s style and the degree to which the situation gives control to the leader.

Today it is believed that different types of leadership styles exist in work environments. Click each tab to learn about a few of the most common leadership styles.

• Transformational

• Transactional

• Charismatic

• Authentic

Transformational leaders lead change in inspirational and visionary ways. One of the keys to transformational leadership is the focus on the development of others, as well as meeting goals through moral decisions. Nelson Mandela is an example of a transformational leader. 

Regardless of the type of leadership with which leaders most align themselves, leaders must adapt their leadership style to meet organizational challenges.

The Changing Face of Leadership

The leadership issues of today will be driven increasingly by globalization and technology. The presence of the Internet and other methods of electronic communication force the issue of leadership transparency and ethics. Nearly every move and every decision a leader makes can be tracked and monitored electronically, and as workers engage with each other around the world, information sharing has become ubiquitous.

As you complete this course, it is important to identify resources you can use to continue your learning about decision making at a leadership level so that you can keep up with the changing face of leadership. You have viewed several TED Talks in this course (and in many of your other courses in this program). One method to continue your learning is to keep current on TED Talks.

In the following TED Talk, Stanley McChrystal describes how leadership has changed with the events of 9/11.

Listen, Learn … then Lead

http://embed.ted.com/talks/stanley_mcchrystal.html

In the following TED Talk, Roselinde Torres offers basic questions that leaders should ask as they try to stay current in their world.

What it Takes to be a Great Leader

http://embed.ted.com/talks/roselinde_torres_what_it_takes_to_be_a_great_leader.html

n the following TED Talk, Fields Wicker-Miurin shares stories of three international leaders.

Learning from Leadership’s Missing Manual

http://embed.ted.com/talks/fields_wicker_miurin_learning_from_leadership_s_missing_manual.html

Reflections on Leadership

As you reflect on what you have learned in this course, consider the type of decision leader you would like to be. What have you specifically learned about yourself that might enhance your understanding of others and your ability to lead and to make decisions? Leading and managing organizational behavior is a constant flow of decisions and evaluations. How you perceive yourself and others directly impacts the quality and effectiveness of your decisions and your ability to unblock filters to your perceptions and to understand how you evaluate situations, individuals, and groups.

Organizational effectiveness is limited by the quality of individual contributions. Therefore, your responsibility as a leader or manager is to understand and enhance those individual contributions through the decisions you make to empower and inspire for optimum organizational behavior and performance.