1. BUSM 4177 / 4194 Leading for Change Topic 5: Participative Leadership Sometimes called “empowering leadership”

2. Learning Objectives Participative Leadership: 1.Understand different forms of participative leadership and empowerment. 2.Understand the major findings in research on consequences of participative leadership. 3.Understand the situations in which participative leadership is most likely to be effective. 4.Understand procedures for the effective use of consultation. 5.Understand the potential benefits and risks of delegation. 6.Understand when and how to use delegation effectively.

3. Types of Participative Leadership (a continuum of decision making involvement) AUTOCRATIC Weak (or no) input by other people Leader decides unilaterally CONSULTATIVE Leader seeks opinions of others Shares information JOINT DECISION Leader asks others to help make decisions Collaborative approach to decisions DELEGATION Strong input by other people Leader is “hands-off” leaving others to self- direct

4. The “causal model” of participative leadership: Overview Yukl suggests that there are three factors that determine just how beneficial participative leadership can be. (see section in textbook for fuller description)

5. Potential benefits of the consultative approach Decision quality Decision acceptance Satisfaction with decision process Development of participant skills

6. Potential benefits of the consultative approach Benefit 1: Decision quality “Involving other people in making a decision is likely to increase the quality of a decision when participants have information and knowledge lacked by the leader and are willing to cooperate in finding a good solution” Yukl (p113)

7. Potential benefits of the consultative approach Benefit 2 : Decision acceptance “People who have considerable influence in making a decision tend to identify with it and perceive it to be their decision. This feeling of ownership increase their motivation to implement it successfully” Yukl (p113)

8. Potential benefits of the consultative approach Benefit 3 : Satisfaction with decision process “Research on “procedural justice” found that the opportunity to express opinions and preferences before a decision is made (called voice) can have beneficial effects regardless of the actual influence participants have over the final decision (called choice)” Yukl (p113)

9. Potential benefits of the consultative approach Benefit 4 : Development of participant skills “…helping to make a complex decision can result in more skills and confidence by participants…. …involvement in diagnosing the problem, generating solutions and planning implementation builds skills… …may require considerable coaching and encouragement from leader..” Yukl (p114)

10. Research evidence on participative leadership claims: Can we show that it really does result in better outcomes? Research approachResearchers Does research show participative leadership to be more effective? Field research Examine real situations in organisations Coch & French (1948) Latham & Yukl (1975) yes Survey studies Questionnaires to leaders and followers Kim & Yukl (1995)yes Lit reviews and Meta-analyses Summarise all research papers Combine data from many studies Cotton et al (1988) Leana et al (1990) Mixed outcomes “Laboratory” experiments Set up experiment where leaders vary participative leadership Bragg & Andrews (1973) no

11. Research evidence on participative leadership claims: 2 “Overall, the results from research on the effects of participative leadership are not sufficiently strong and consistent to draw any firm conclusions Sometimes it results in higher satisfaction, effort and performance… at other times it does not!” Yukl (p 116) What additional factor(s) might help explain the difference in the outcome?

12. Situational variables may explain differences in outcomes seen Does the participative leadership approach only work when the “situation” or environment is right? This idea is the basis of contingency theories which we’ll cover more fully in a separate topic.. We touch on it lightly here

13. Victor Vroom & Philip Yetton 1973 Model that helps you decide how “participative” to be when making decisions – hence called “decision model Normative Decision model

14. Decision Procedures in Normative Decision Model Autocratic decision Consultative decision Group decision Normative Decision model – Autocratic, consultative and group decision approaches

15. Vroom & Yetton’s Normative Decision model – Summary or “contingency table” to determine approach

16. Moving beyond consultation: Joint decision making

17. Deciding whether to deeply involve staff in a decision depends on:  How important the decision is  Whether staff have the relevant knowledge or expertise  Whether staff are likely to cooperate  Whether staff would accept a decision made solely by the leader (autocratic)  Whether it is feasible to get staff together to make a joint decision

18. Moving beyond consultation: Joint decision making Encouraging staff to participate:  Ensure that staff have confidence / comfort to express concerns  Describe a proposal as “tentative”  Record staff ideas and suggestions  Look for ways to build on these ideas and suggestions  Be tactful in your feedback on suggestions  Listen to opposing views without getting defensive  Show appreciation for suggestions

19. Version Woodruff 2014 SIM Delegation as the ultimate decision-making approach

20. RMIT University© School of Management 20 Delegation Delegation (or passing down) is the partnership of authority and not responsibility to another person (normally from a manager to a subordinate) to carry out specific activities. It is one of the core concepts of leadership. Wikipedia Different forms and degrees of power sharing with individual staff. Your textbook “Major aspects of delegation include the variety and magnitude of responsibilities, the amount of discretion or range of choice allowed.. authority to take action and implement decisions without prior approval…” Your textbook Defining delegation entrust (a task or responsibility) to another person, typically one who is less senior than oneself Oxford English Dictionary

21. Benefits of Delegation  Decision quality improvement  Subordinate implementation commitment  Enriched job  Time management  Management development

22. Downside of Delegation  Power sharing  Mistakes  Competition  Personal achievement  Subordinate characteristics  Distrust  Leader authority

23. What should we delegate?  Tasks that can be done better by a subordinate  Urgent but not high priority  Relevant to a subordinate’s career  Appropriate difficulty  Both pleasant and unpleasant tasks  Tasks not central to the manager’s role

24. How should we delegate?  Specify responsibilities  Provide adequate authority limits  Specify reporting requirements  Ensure subordinate acceptance of responsibilities  Inform others who need to know  Monitor progress  Arrange for delegate to receive necessary information  Provide support ands assistance  Make “mistakes” a learning rather than a punishing experience

25. Images included in this presentation are licenced under creative commons. Learn more about the creative commons scheme here.creative commonshere RMIT is proud to partner with Pearson Australia in the development of the customised resources for this course. This presentation draws on material from chapter five of the course textbook Sustainable Leadership people, technology and design – an RMIT Custom Publication, Pearson ® Australia and is subject to copyright.Pearson ® Australia Presentation developed by Ian Woodruff, School of Management, RMIT University Graphics used in this presentation were created using Presenter Media Software licenced to Ian Woodruff, RMIT University.Presenter Media Presenter Media retains copyright for these graphics. Acknowledgements VERSION: 1