1. MGT 450 – Spring 2016 Class 8 – Chapter 5 PARTICIPATIVE LEADERSHIP AND EMPOWERMENT

2. Chapter 5 Learning Objectives After studying this chapter, you should be able to: Understand different forms of participative leadership and empowerment. Understand the situations in which participative leadership is most likely to be effective. Understand procedures for the effective use of consultation. Understand the potential benefits and risks of delegation. Understand when and how to use delegation effectively. 5-2 Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations

3. Nature of Participative Leadership A variety of different decision procedures may be used by a manager that involves differing amounts of influence over a decision by subordinates or group members Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 5-3

4. Continuum of Decision Procedures Autocratic DecisionConsultationJoint DecisionDelegation _________________________________________________________________________________________ No Influence High Influence By Others by Others

5. Varieties of Participation Autocratic decision – managers make decisions alone without asking for input from subordinates. These people have no direct influence on the decision – therefore no participation Consultation – leader asks for opinions of others and makes the decision alone after seriously considering their suggestions and concerns Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 5-5

6. Varieties of Participation Joint decision – Leader meets with others to discuss the situation and make a decision together – the leader has no more influence over the final decision than any other participant Delegation – Leader gives the individual or group the authority and responsibility for making and implementing the decision. The leader typically sets boundaries and may require approval.

7. Varieties of Participation Laissez-Faire Leadership A non-authoritarian leadership style. Laissez-Faire leaders try to give the least possible guidance to subordinates, and try to achieve control through less obvious means. They believe that people excel when they are left alone to respond to their responsibilities and obligations in their own ways. Requires competent and self-managing subordinates.

8. Benefits of Participative Leadership Decision quality – offers more discussions and possible solutions from which to choose Decision acceptance – people who have influence in soloving the problem tend to identify with it and perceive it to be as much their decision. There is ‘buy-in’ Process satisfaction – having a voice in the decision-making process can have beneficial effects regardless of the actual influence the individuals have over the final decision. They feel that their opinions matter! Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 5-8

9. Benefits of Participative Leadership Differing objectives Downward – Draws on the knowledge and problem-solving expertise of subordinates; Lateral – Peers may have relevant knowledge about the cause of the problem and likely solutions Upward – Draws on the expertise of superiors. Also allows a leader to find out how his boss feels about the problem – leading to greater buy- in

10. Guidelines for Participative Leadership Diagnose Decision Situations Decision importance – How important is this decision, e.g. What color should the machine be vs. what is the ease of serviceability or cost per hour of running this machine Expertise – who has the relevant knowledge? Likely cooperation – i.e. personal politics, power & influence Likely acceptance – W.I.I.F.M. Meeting feasibility – Do we have enough time to gather the group together to hash things out? Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 5-10

11. Guidelines for Participative Leadership Solicit and acknowledge everyone’s concerns Solicit tentative proposals, i.e. brainstorming Record ideas and suggestions – who said what Build on ideas – focus on strengths vs weaknesses of proposed solutions Always employ tact when expressing concerns about a suggestion Listing to dissenting views without being defensive Show appreciation for suggestions

12. Benefits of Delegation Similar to the Benefits of Participative Leadership Develop subordinate skills and confidence Enable subordinates to deal with situations quickly without have always to consult with the boss Improve decision making by moving them close to the action Increase subordinate commitment to the task Make the job more interesting for the subordinates Reduce or refine your workload to improve effectiveness & time management Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 5-12

13. Risks of Delegation Confidentiality of information Secure vs. insecure manager Inherent risks of power sharing, e.g. 2 Type A personalities Mistakes by subordinates – can you afford them? Personal achievement by manager = ego trip Performance bias – can they do it as well as me Subordinate characteristics – are they capable of doing the work and not screwing it up Distrust – of subordinates Leader authority – I’m the leader; I’m supposed to make these decisions Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 5-13

14. Guidelines for Delegation What to Delegate Tasks that can be done better by a subordinate Urgent but not high priority Relevant to a subordinate’s career – a teaching moment Appropriate difficulty Both pleasant and unpleasant tasks Tasks not central to the manager’s role Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 5-14

15. More Guidelines for Delegation How to Delegate Specify responsibilities clearly – who does what Provide adequate authority limits – what you can and cannot do Specify reporting requirements – what, when, how Ensure subordinate acceptance of responsibilities Inform others who need to know – particularly colleagues and subordinates Monitor progress Provide support & assistance when asked for or necessary Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 5-15

16. FIN DE CLASS 8 Homework for Class 9 Re-read and understand Chapter 5 Read Chapter 6 Team 5 = Prepare to lead Chapter 4 Review and Discussion Questions Team 6 = Prepare to analyze and discuss the Case Study for Chapter 5