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Leadership and the Decision-Making Process

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Leadership and the Decision-Making Process Written by: Victor H. Vroom Presented by: Joey Grant Presentation Outline About the author - Victor H. Vroom The Jim Burns ... – PowerPoint PPT presentation

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Title: Leadership and the Decision-Making Process


1
Leadership and the Decision-Making Process
  • Written by Victor H. Vroom
  • Presented by Joey Grant

2
Presentation Outline
  • About the author - Victor H. Vroom
  • The Jim Burns Decision
  • Leadership Style
  • Normative Model
  • Descriptive Model
  • Related Articles
  • Personal Experience

3
Victor H. Vroom
  • Yale School of Management - BearingPoint
    Professor of Management and Professor of
    Psychology
  • International expert on leadership and
    decision-making
  • Ph.D. - University of Michigan
  • M.Sc. - McGill University
  • B.Sc. - McGill University

4
Victor H. Vroom
  • Achievements and Honors
  • 2004 - Distinguished Scholarly Contribution Award
    from Academy of Management
  • 2004 Literati Award
  • Books
  • 1964 - Work and Motivation
  • Leadership and Decision-Making
  • The New LeadershipManaging Participation in
    Organizations

5
The Jim Burns Decision
  • Scenario
  • Emergency response manager specializing in
    ecological control systems
  • Environmental damage
  • 10,000 gallons of crude oil
  • Threatened wildlife sanctuary
  • Liability issue
  • Driver is uninsured
  • Oil company denied any responsibility
  • Estimated a half million dollars for clean up

6
The Jim Burns Decision
  • Raises two issues
  • What solution or decision should be adopted?
  • How and with whom should it be decided?

7
Leadership Style
  • What happens between a leader and the leaders
    associates in decision-making situations?
  • Five Styles10pt scale
  • Decide (0)
  • Consult individually (3)
  • Consult group (5)
  • Facilitate (7)
  • Delegate (10)
  • Help managers decide what style fits the
    situation
  • Describe what people do

8
Normative Model
  • To help managers or leaders select the style that
    best fits a given situation
  • Decision Quality
  • Decision Implementation
  • Costs of Decision Making
  • Development

9
Decision Quality
  • Will decision quality increase or decrease?
  • Factors
  • Relevant knowledge or expertise
  • Goals of the potential participants
  • Synergy

10
Decision Implementation
  • The effectiveness of implementation depends on
    the commitment to its success
  • People support what they build
  • Greater buy in
  • Commitment to decisions
  • Motivation to implement effectively

11
Costs of Decision Making
  • Time used by seeking consensus
  • Increased time interval
  • Relevant in emergencies
  • Number of hours consumed by the process
  • More generally relevant

12
Development Benefits
  • Potential to offset the costs
  • Increases the potential value of the group to the
    organization in three ways
  • Develops the knowledge and competence of
    individual members
  • Increases teamwork and collaboration
  • Increases identification with organizational goals

13
Analysis Tools
  • Criteria
  • Decision must fall within your area of freedom of
    discretion
  • There must be some group of potential
    participants
  • Time-Driven Model
  • Short-term
  • Minimum cost
  • No value placed on employee development
  • Development Driven Model
  • Long-term
  • Maximum developmental consequences
  • No value placed on time

14
Situational Factors in the Normative Model
  • Decision Significance
  • Importance of Commitment
  • Leaders Expertise
  • Likelihood of Commitment
  • Group Support for Objectives
  • Group Expertise
  • Team Competence

15
Time-Driven Model
16
Development-Driven Model
17
Origin of the Model
  • 25 years of research
  • Collected cases from managers
  • Goal was to build a model to maximize the
    frequency of successful decisions
  • Worked with social scientists
  • Computer program for advanced analysis

18
Descriptive Model
  • To study managerial problems as they are
  • To learn from managers decision-making power
  • Problem set
  • Findings
  • Managers behave situationally
  • Managers make more participative choices on
    highly significant decisions
  • Need commitment from group
  • Lack expertise
  • Low likelihood of commitment
  • High group expertise
  • History of effective group work

19
Descriptive Model
  • A move towards more participative processes
  • External environment of organizations
  • Flattening of the pyramid
  • Growth of information technology
  • Changing nature of the labor force
  • Cultural variances
  • High per capita GNP, strong democratic tradition,
    highly educated workforce
  • Gender differences
  • Women are more participative, autocratic males
    are preferred to autocratic women
  • Level in the organization
  • Higher the level in the organizational ladder,
    the more participative the manager

20
Related Article 1
  • The role of leadership style, organizational
    outcome, and gender on attributional bias toward
    leaders
  • Charismatic leaders
  • Gather followers through personality and charm
    rather than power
  • Charismatic leaders received more credit and less
    blame
  • Women were held less accountable for
    organizational failure

21
Related Article 2
  • Men, women and the use of powerIs it based on
    the person or the situation?
  • Investigates whether the use of power and sharing
    of goal information differ between men and women
  • Question 1Is there a difference in the use of
    power between males and females?

22
Related Article 2
  • Question 2 Does using a male leadership model
    vs. using a female leadership model affect the
    effectiveness of a given situation?

23
Related Article 2
  • Results
  • Leadership style is more of a situational choice
    than a gender characteristic
  • 53 of teams shared task information
  • 80 of female/female groups adopted the
    participative style
  • 50 of female/male groups used the participative
    style
  • 40 of males used the participative style
  • Participative leadership yielded a more effective
    decision than autocratic leadership
  • 95 to 55 solved the problem
  • Fastest team used the participative style

24
Related Article 3
  • Situational Leadership
  • Team vs. 1-on-1
  • Two types of behavior
  • Directive - one-way communication
  • Supportive - two-way communication
  • Four Styles
  • Directing - high-directive/low-supportive
  • Coaching - high-directive/high-supportive
  • Supporting - high supportive/low-directive
  • Delegating - low-supportive/low-directive

25
References
  • Blanchard, K. (2008). Situational leadership.
    Leadership Excellence, 25(5), 19. Retrieved
    from
  • http//search.proquest.com/docview204622183
  • Langford, M., Welch, O. J., Welch, S. T.
    (1998). Men, women, and the use of power Is it
    based on the person or the situation?
    Equality, Diversity and Inclusion An
    International Journal, 17(1), 1. Retrieved from
    http//search.proquest.com/docview/1996057
    66
  • Loper, E. S. (2007). The role of leadership
    style, organizational outcome, and gender on
    attributional bias toward leaders. Dissertation
    Abstracts International, 68, Retrieved from
    EBSCOhost.
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