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Ppt Ch 4 Presentation Transcript

  • 1.  
  • 2. Assessing Leadership and Measuring Its Effects
    • “ Only 8% of Fortune 1000 executive directors rate their leadership capacity as excellent, while 47% rated their leadership capacity as fair to poor.”
    • ~The Conference Board
    Chapter 4
  • 3. Practice-Research Gap
    • The gap between what researchers know about predicting and evaluating leadership effectiveness and the techniques actually used by organizations to hire, evaluate, and promote leaders.
    • This gap has a profound impact on the quality of people in leadership positions today.
  • 4. Managerial Incompetence
    • Despite the pervasiveness of leadership, the base rate of managerial incompetence may be somewhere between 50 – 75 percent.
    • The Dr Gordy test is one way to determine the level of incompetence among leaders.
    • Effective leaders are individuals who are good at building teams and getting results.
    • Most people in leadership positions get paid to get results , and they get results by building teams.
  • 5. Managerial Incompetence (continued)
    • Managers can be categorized as being:
      • Competent Managers
      • Results Only Managers
      • Cheerleaders
      • In Name Only Managers
    • Research shows that organizations having higher number of Competent Managers occupying critical positions are more successful than those without.
  • 6. The Two Dimensions of Managerial Incompetence
  • 7. Need for Leadership Talent Management
    • The biggest source of worry for organizations anywhere is the lack of high quality leadership talent.
    • Three critical ingredients most looked for in persons in positions of authority include:
      • Problem solving and sound decision making abilities.
      • Local/functional know-how.
      • Ability to get things done through others.
  • 8. Need for Leadership Talent Management (continued)
    • Several factors contribute to the shortfall in managerial incompetence:
      • Demographics
      • Lack of employee loyalty
      • Lack of good systems to identify and develop leadership talent
      • Technology
  • 9. Leadership Talent Management
    • Leadership talent management system : Consists of those processes and procedures organizations use to hire, develop, evaluate, reward, promote, and retain its leaders.
    • Research has shown that good talent management systems can have a profound impact on organizational effectiveness and success.
  • 10. Steps Involved in Leadership Talent Management (continued)
    • Clarify the organization’s strategy for the future.
    • Identify what are or will be the critical leadership positions in the organization.
    • Develop a competency model for the critical leadership positions.
    • Ensure the organization’s recruiting and selection processes are identifying, hiring, developing, rewarding, and promoting the right candidates.
    • Adopt valid and well-researched processes for hiring, developing, and promoting leadership talent.
  • 11. Assessing Leadership Potential
    • It is fundamentally concerned with predicting who will or will not be an effective leader before they have been placed into a position.
      • Accurately predicting managerial effectiveness is critically important but not at all straightforward.
    • Research has systematically determined which leadership assessment techniques yield more valid and accurate predictions than other techniques.
  • 12. Typical Correlations between Different Assessment Techniques and Job Performance in the United States
  • 13. Best Practices in Assessing Leadership Potential
    • Research shows that by developing a competency model, one can clearly define the skills and attributes required in the right candidate.
    • The best candidate would be the person with the most, if not all, of those skills and attributes.
    • The multiple hurdles approach is the most cost-effective and valid way to identify the best candidate from the applicant pool.
  • 14. Example of a mid-level leadership competency model
  • 15. Multiple Hurdles Approach
  • 16. Multiple Hurdles Approach (continued)
    • Use most inexpensive assessment techniques first .
    • Use Internet or paper-and-pencil measures of leadership potential.
    • Interview the remaining talent pool.
      • Structured interviews
      • Unstructured interviews
    • Put the top three candidates through an assessment center .
      • In-Basket exercises
      • Role plays
  • 17. Making Sense of the Process
    • Many times, having a clearly defined competency model , a biographical form , and structural interview questions linked to the model will suffice.
    • Research is the only way to determine which assessment techniques are the most valid for which leadership positions.
  • 18. Measuring the Effects of Leadership
    • Just as various techniques are used to assess leaders, there are also various ways to measure their effects on subordinates and organizations.
      • When judging, the consequences of leader behaviors are examined, than the behaviors per se.
    • Commonly used measures to judge successful and unsuccessful leaders include:
      • Superiors’ effectiveness and performance ratings
      • Subordinates’ ratings of their job satisfaction and morale or of their leader’s effectiveness
      • Unit performance indices
  • 19. Common Measures of Successful and Unsuccessful Leadership
  • 20. Best Practices in Measuring Leadership Success
    • Ratings by superiors and subordinates generally yield useful information about a leader’s effectiveness.
    • Multiple measures often yield the best information about leadership success.
    • Practitioners need to think critically about how their behavior affects the measures used to judge leadership success.
    • Practitioners need to be aware of leadership success measures being biased .
  • 21. Methodologies Used to Study Leadership
    • Qualitative Approach
      • Case study : In-depth analysis of a leader’s activities.
    • Quantitative Approaches
      • Correlational studies : Used to determine statistical relationship between leader qualities and various measures of leadership effectiveness.
        • Correlation coefficient
        • Casual inferences
      • Experiments : Generally consist of both:
        • Independent variables
        • Dependent variables
  • 22. Some Common and Uncommon Variations of Leadership Studies
  • 23. Maxims and Theories of Leadership
    • Maxims: Personal opinions that can give leaders valuable advice about leadership.
    • Theory: Framework for conceptualizing relationships between variables and guiding research toward a fuller understanding of phenomena.
    • Theories are central to scientific research because:
      • Public predictions of how leadership variables are interrelated.
      • The systematic gathering and analysis of data.
      • Peer review of results.
  • 24. Jack Welch’s Eight Rules
  • 25. Summary
    • Leadership is the most important topic in the world today.
    • Leadership talent management systems helps organizations minimize crisis of insufficient effective leaders.
    • Various techniques exist for organizations to assess leadership potential and performance.
    • Quantitative and qualitative approaches are used to study linkages between leadership potential and performance measures.
    • Maxims may represent valid advice, but they are ultimately no more than personal opinion .
    • Theories are a collection of testable predictions about the relationships between certain variables.