Week 7
What is leadership and what do leaders do?
Leadership is the use of power and influence to direct the activities of followers toward the goal achievement.
Leaders establish membership, communication, recognition
What’s the meaning of formal and personal power?
Formal power is coercive, reward and legitimate. Personal power is expert and referent.
What is the two components of social conformity
1. Conform when other are similar ( in group)
2. Conform when their behaviour is visible
What’s the limits of rational analysis?
- Bound by uncertainty and ambiguity
- Bound by the imperfections of the mind
What’s the structure of negotiation?
Distributive aspects, compatible aspects and integrative aspects
Explain what autocratic leaders are like and when this autocratic leadership style is useful.
Autocratic leaders: Act as sole expert, do not seek input, do not encourage suggestions
Useful: High-level structure is needed, high stress/urgent situations
What’s the difference between expert and referent?
Expert is obtaining compliance as a result of expertise, special skill, or knowledge
Referent is obtaining compliance because others want to identify or be like the person
What is Effort Justification
Effort Justification –people tend to place greater value on
outcomes that they had to put more effort in achieving
Give an example of escalation of commitment
- 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
1. Prepare
2. Identify your and their interests
3. Leverage difference
4. Make package offers
Explain the pros and cons of democratic leadership
Pros: Increase intrinsic motivation and gets everyone involved
Cons: Requires clear communication among workers, production often takes longer
Are status and power always aligned?
No. Power is about controlling resources and others. Status is about respect
What is socialization aided by:
psychological process
What is a status quo bias?
- We have a strong bias to stick with the status quo even if there are severe disadvantages to doing so
What should we not let our opponents know?
Relative weighting of options
Give a scenario in which a company transitions from democratic leadership to laissez-faire leadership style and explain the transition process
Free response as long as the points make sense
What does ethical decision-making model include?
moral awareness, moral judgement and moral intent
Informational Conformity
Conformity because group's behavior helps you learn what's right or true in an ambiguous situation. Leads to private acceptance (not just mere compliance)
Give an example of a “pros vs. cons” analysis of two options
- Whether or not to take the job
- Whether or not to ask for a raise
what is Pareto-Optimal Solutions and give example
Give appropriate example
Explain the pros and cons of transformative leadership theory and give an example of it in the real world
Pros: inspire exceptional performance and high levels of satisfaction, change beliefs and attitudes to correspond to a new vision
Cons: Can result in blind allegiance, can lead to excessive risk taking
Example as appropriate
What is bounded ethicality?
people are prone to blind spots
Why don’t groups share all info?
1.) Individuals tend to stick to their initial opinion even when
presented with new information (i.e., preference bias)
2.) Individuals tend to bias the information they possess over the
information others possess (i.e., ownership bias).
3.) Individuals value information that can be corroborated by
others in the group (i.e., corroboration bias).
4.) Groups typically discuss shared info before ever talking about
unshared info (also due to corroboration bias).
5.) Without fully shared info, chances are a majority accused the
wrong person because of normative social influence. Group
members who disagreed did not speak up and may not have
shared the needed info because they wanted to fit in
How does a rational analysis model work?
- Identify the problem
- Search for relevant information
- Develop Alternatives
- Evaluate the Alternatives
- Choose Best Solution
- Implement Chosen solution
What is the J O B N E G O T I AT I O N T I P S
1. Negotiation = Information Gathering
2. Understand your partner and their interests (Prepare!)
3. Prep for tough questions (e.g., weak BATNA, probing for low anchors)
4. Get all your issues out before agreeing to specifics (most important
doesn’t need to be first)
5. Look for win-wins
6. Frame options as commitments to the firm (being in Toronto for family
vs. the firm)
7. Think of MESOs
8. Don’t be afraid - there’s nothing wrong with gathering information
9. Don’t reveal your reservation price!
10. Don’t give away compatible dimensions for free