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  1. 1. Principles of Management Leading the Organization Lecture 9
  2. 2. Understanding Individuals in Organizations <ul><li>The Psychological Contract </li></ul><ul><ul><li>The overall set of expectations held by an individual with respect to what he or she will contribute to the organization and what the organization will provide in return. </li></ul></ul>15–
  3. 3. Figure 15.1: The Psychological Contract 15–
  4. 4. Understanding Individuals in Organizations (cont’d) <ul><li>The Person-Job Fit </li></ul><ul><li>- The extent to which the contribution made by the individual match the inducements offered by the organization. </li></ul><ul><li>Individual Differences </li></ul><ul><ul><li>Personal attributes that vary from one person to another. </li></ul></ul><ul><ul><ul><li>Physical, psychological, or emotional. </li></ul></ul></ul>15–
  5. 5. Personality and Individual Behavior <ul><li>Personality </li></ul><ul><ul><li>The relatively stable set of psychological and behavioral attributes that distinguish one person from another. </li></ul></ul><ul><li>The “Big Five” Personality Traits </li></ul><ul><ul><li>Agreeableness—a person’s ability to get along with others. </li></ul></ul><ul><ul><li>Conscientiousness—the number of goals on which a person focuses. </li></ul></ul><ul><ul><li>Negative emotionality—the extent to which a person is calm, resilient, and secure. </li></ul></ul><ul><ul><li>Extraversion—a person’s comfort level with relationships. </li></ul></ul><ul><ul><li>Openness—a person’s rigidity of beliefs and range of interests. </li></ul></ul>15–
  6. 6. Figure 15.2: The “Big Five” Model of Personality 15–
  7. 7. Other Personality Traits at Work <ul><li>Locus of Control </li></ul><ul><ul><li>The extent to which people believe that their behavior has a real effect on what happens to them. </li></ul></ul><ul><ul><ul><li>Internal locus of control — individuals who believe they are in control of their lives. </li></ul></ul></ul><ul><ul><ul><li>External locus of control — individuals believe that external forces dictate what happen to them. </li></ul></ul></ul><ul><li>Self-Efficacy </li></ul><ul><ul><li>A person’s belief about his or her capabilities to perform a task. High self-efficacy individuals believe they can perform well while low self-efficacy individuals doubt their ability to perform. </li></ul></ul>15–
  8. 8. Other Personality Traits at Work (cont’d) <ul><li>Authoritarianism </li></ul><ul><ul><li>The extent to which an individual believes that power and status differences are appropriate within hierarchical social systems like organizations. </li></ul></ul><ul><li>Machiavellianism </li></ul><ul><ul><li>Behavior directed at gaining power and controlling the behavior of others. </li></ul></ul>15–
  9. 9. Other Personality Traits at Work (cont’d) <ul><li>Self-Esteem </li></ul><ul><ul><li>The extent to which a person believes she/he is a worthwhile and deserving individual. </li></ul></ul><ul><li>Risk Propensity </li></ul><ul><ul><li>The degree to which an individual is willing to take chances and make risky decisions. </li></ul></ul>15–
  10. 10. The Nature of Leadership <ul><li>The Meaning of Leadership </li></ul><ul><ul><ul><li>Using noncoercive influence to shape the group’s or organization’s goals. </li></ul></ul></ul><ul><ul><ul><li>Motivating others’ behavior toward goals. </li></ul></ul></ul><ul><ul><ul><li>Helping to define organizational culture. </li></ul></ul></ul><ul><ul><li>Leaders </li></ul></ul><ul><ul><ul><li>People who can influence the behaviors of others without having to rely on force. </li></ul></ul></ul><ul><ul><ul><li>People who are accepted as leaders by others. </li></ul></ul></ul>15–
  11. 11. The Nature of Leadership (cont’d) <ul><li>Power and Leadership </li></ul><ul><ul><li>Power is the ability to affect the behavior of others. </li></ul></ul><ul><ul><ul><li>Legitimate power is granted through the organizational hierarchy. </li></ul></ul></ul><ul><ul><ul><li>Reward power is the power to give or withhold rewards. </li></ul></ul></ul><ul><ul><ul><li>Coercive power is the capability to force compliance by means of psychological, emotional, or physical threat. </li></ul></ul></ul><ul><ul><ul><li>Referent power is the personal power that accrues to someone based on identification, imitation, loyalty, or charisma. </li></ul></ul></ul><ul><ul><ul><li>Expert power is derived from the possession of information or expertise. </li></ul></ul></ul>15–
  12. 12. Situational Approaches to Leadership <ul><li>Path-Goal Theory (Evans and House) </li></ul><ul><ul><li>The primary functions of a leader are: </li></ul></ul><ul><ul><ul><li>To make valued or desired rewards available in the workplace </li></ul></ul></ul><ul><ul><ul><li>To clarify for the subordinate the kinds of behavior that will lead to goal accomplishment or rewards </li></ul></ul></ul><ul><ul><li>Leader Behaviors: </li></ul></ul><ul><ul><ul><li>Directive leader behavior </li></ul></ul></ul><ul><ul><ul><li>Supportive leader behavior </li></ul></ul></ul><ul><ul><ul><li>Participative leader behavior </li></ul></ul></ul><ul><ul><ul><li>Achievement-oriented leader behavior </li></ul></ul></ul>15–
  13. 13. Figure 17.4: The Path-Goal Framework 15–
  14. 14. Situational Approaches to Leadership (cont’d) <ul><li>The Leader-Member Exchange (LMX) Approach </li></ul><ul><ul><li>Stresses the importance of variable relationships between supervisors and each of their subordinates. </li></ul></ul><ul><ul><li>Vertical dyads </li></ul></ul><ul><ul><ul><li>Leaders form unique independent relationships with each subordinate (dyads) in which the subordinate becomes a member of the leader’s out-group or in-group. </li></ul></ul></ul>15–