Ppt Ch 4


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Ppt Ch 4

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