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Principles of Management

Leading the OrganizationLecture 9Lecture 9

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Understanding Individuals in Organizations The Psychological Contract

– 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.

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Figure 15.1: The Psychological Contract

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Understanding Individuals in Organizations (cont’d) The Person-Job Fit

- The extent to which the contribution made by the individual match the inducements offered by the organization.

Individual Differences– Personal attributes that vary from one person to

another.• Physical, psychological, or emotional.

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Personality and Individual Behavior Personality

– The relatively stable set of psychological and behavioral attributes that distinguish one person from another.

The “Big Five” Personality Traits– Agreeableness—a person’s ability to get along with others.– Conscientiousness—the number of goals on which a person

focuses.– Negative emotionality—the extent to which a person is

calm, resilient, and secure.– Extraversion—a person’s comfort level with relationships.– Openness—a person’s rigidity of beliefs and range of

interests.

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Figure 15.2: The “Big Five” Model of Personality

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Other Personality Traits at Work Locus of Control

– The extent to which people believe that their behavior has a real effect on what happens to them.

• Internal locus of control—individuals who believe they are in control of their lives.

• External locus of control—individuals believe that external forces dictate what happen to them.

Self-Efficacy– 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.

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Other Personality Traits at Work (cont’d) Authoritarianism

– The extent to which an individual believes that power and status differences are appropriate within hierarchical social systems like organizations.

Machiavellianism– Behavior directed at gaining power and

controlling the behavior of others.

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Other Personality Traits at Work (cont’d) Self-Esteem

– The extent to which a person believes she/he is a worthwhile and deserving individual.

Risk Propensity– The degree to which an individual is willing to

take chances and make risky decisions.

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The Nature of Leadership The Meaning of Leadership

• Using noncoercive influence to shape the group’s or organization’s goals.

• Motivating others’ behavior toward goals.• Helping to define organizational culture.

– Leaders• People who can influence the behaviors of others without

having to rely on force.• People who are accepted as leaders by others.

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The Nature of Leadership (cont’d) Power and Leadership

– Power is the ability to affect the behavior of others.• Legitimate power is granted through the organizational

hierarchy.

• Reward power is the power to give or withhold rewards.

• Coercive power is the capability to force compliance by means of psychological, emotional, or physical threat.

• Referent power is the personal power that accrues to someone based on identification, imitation, loyalty, or charisma.

• Expert power is derived from the possession of information or expertise.

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Situational Approaches to Leadership Path-Goal Theory (Evans and House)

– The primary functions of a leader are:• To make valued or desired rewards available in the workplace

• To clarify for the subordinate the kinds of behavior that will lead to goal accomplishment or rewards

– Leader Behaviors:• Directive leader behavior

• Supportive leader behavior

• Participative leader behavior

• Achievement-oriented leader behavior

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Figure 17.4: The Path-Goal Framework

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Situational Approaches to Leadership (cont’d) The Leader-Member Exchange (LMX)

Approach– Stresses the importance of variable

relationships between supervisors and each of their subordinates.

– Vertical dyads• 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.

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