Week 7
Leadership
Leadership
Describe the Autocratic/Directive Leader style and its pros and cons
Definition: Leaders with this style: Act as sole expert, Do not seek input, Do not encourage suggestions
Pros: Useful when structure is needed (e.g., kindergarten teacher), in High-stress/urgent situations (e.g., military commander during battle)
Cons: Produces less intrinsic motivation, People take less pride in their work (often lower quality), In general, trait-based approaches are not that reliable...
Define what is meant by the double bind in the context of power.
When women act traditionally feminine, they are liked but not seen as leadership material. On the other hand, when women act traditionally masculine, they are disliked and not seen as leadership material
Name two benefits and two costs to a strong culture.
Any two benefits from this list:
- Ability to attract and retain employees
- High motivation to achieve the vision or cause
- Feelings of “fit,” cohesion, and solidarity
Any two costs from this list:
- Unwillingness to question shared values/assumptions
- Insulation from outside viewpoints
- Lack of diverse opinions & perspectives
- Lack of creativity
- Feeling coerced & pressured to comply with norms
What are the two limits of rational analysis and expand on what it implies?
1) Bound by uncertainty and ambiguity
2) Bound by the imperfections of the mind
Implications: 1) The Rational analysis model requires complete information and very often we simply don’t have that much information
2) Limited by systematic biases that alter the way we gather, process, and evaluate information
What are the two definitions of negotiation success and expand more on what they mean
1) Balanced deals that create value: Expand the pie before dividing it, more is, grow it before dividing it, both are better off in a world with more pie, even if one person wins more, so you can claim a reasonable portion of the pie
2) Good reputation/relationship: You are trusted and respected, generate long-term relationships and repeat business in the future, and do not want to crush the other person, they will find another person
Name the 4 key aspects of becoming a transformational leader and briefly describe each.
Idealized influence: behaving in ways that each the admiration, trust, and respect of followers
Inspirational motivation: foster enthusiasm and commitment (setting the stage, meaning, job design
Intellectual stimulation: challenge individual’s innovation and creativity (autonomy, task-identity, goal-setting)
Individualized consideration: coaching and mentoring (perspective taking, assuming the best intentions)
Explain why positions of high power but low status often lead to customer dissatisfaction and provide two examples of jobs that fit this description.
Individuals may feel the need to assert their dominance
Examples: parking enforcement, airport security, bar bouncer
Explain what the Common Knowledge Problem is and provide a strategy that can fix this problem.
Explanation of the Common Knowledge Problem:
Groups spend the majority of time discussing information that they all have in common. Unique information is rarely shared and, if it is shared, it is often not widely discussed. This means that groups often make poor decisions because they need to fully communicate all the info each member has.
Strategies (can name any of the following):
- Plan out how the group will make its decision before starting the decision
- Assign someone to be the facilitator who ensures all members have a voice
- Simply knowing about the problem of unshared information helps
Define Tunnel Vision and give two real-world examples of it.
Escalation of Commitment: Investing more resources (time, money, social capital) in the hope of overturning initial failures; With each new investment, commitment to a good outcome grows
Examples:
• Continuing to repair a car that would be cheaper to replace
• Paying for storage on furniture that doesn’t fit your new place
• Continuing to work on a so-so idea when it would be faster to start over
What are the benefits of MESOs? (Multiple Equivalent Simultaneous Offers)
1) Anchor the negotiation but still appear flexible
2) Collect information from the other party about their priorities/ interests
3) Educate the other party about your priorities/ interests
4) Can highlight value-added- distinguish self from others
Explain 2 questions or methods to understand your manager’s mindset accurately.
Any 2 questions:
- How would you describe my role and responsibilities?
- Who is someone who excelled in my role? What did they do? So you can try and emulate it.
- What would make your life easier?
- If I have any information, how would they prefer to receive it?
- What keeps them up at night? What is top-of-mind right now?
Any 2 methods:
- Communication including: getting to the point, communicating early, showing up at critical moments
- Managing your own emotions: anticipate responses
Explain the most effective way to feel high levels of power in a particular position
Turning up the Behavioral Activation System (BAS, AKA GO) which are things that keep us activated, for eg. acquiring wealth. Simultaneously to feel power, we need to turn down the Behavioral Inhibition System (BIS, AKA STOP) which are things that hold us back from achieving our goals, eg. in most cases this comes from social pressures and the people around us.
How do we learn culture through socialization? Name the 3 steps and explain them each briefly.
Socialization: the primary process by which individuals learn about and adapt to a culture
- Anticipatory stage: this involves observation
- Encounter stage: once you join the process of conformity
- Adaptation stage: when you internalize the norms and behaviours of that culture
What is the term that refers to our strong inclination to sustain the existing state of affairs, even when the existing state is faced with apparent disadvantages? What causes people to fall victim to this term?
The answer is Status quo bias. The resistance to change can be attributed to any of the following factors:
Familiarity
Comfort
fear of uncertainty
[Name at least 2 of the factors]
Differentiate between target price and reservation price; using these concepts, define what is the “ZOPA” in negotiation. [Zone of possible agreement]
Reservation price is your point of indifference, your bottom line. It is based on your BATNA (e.g. opportunity costs, switching costs, preferences). You should never reveal your reservation price.
Target price: determined by analyzing the other party’s Reservation Price and BATNA and by focusing on their weakness.
ZOPA: the space between the buyer’s reservation price and the seller’s reservation price. If the Buyer’s reservation price is greater than the seller’s reservation then a zone of possible agreement exists.