LEADERSHIP AND

MANAGEMENT TRAINING FOR

Treasurers & Asst. Treasurers
 GROUND RULES
Be H.O.T!
BeHere Now
Be One Hundred Percent Present
Be A Team Player
 LEARNING OBJECTIVES
Understand and appreciate the concepts of leadership,
managerial skills and competencies; and its application/
signicance in one's self and in the workplace/ LGU

Imbibe and understand the appropriate leadership values

and competencies/best practices as scal advisers and
as department heads/assistant heads of the Treasury
Service

Internalize the signicance of leading change and

resolving conflict in the workplace

Develop an action plan to reinforce their learnings/apply

the acquired knowledge in leadership and management
in their sphere of influence
Chart 3
 COURSE OUTLINE
Management Functions and Processes
Leading vs Managing
Systems Thinking
Leadership Framework/ Styles
Leadership Skills Model and Leading Activities:
a) Communicating
b) Motivating and Coaching
Coaching for Improved Performance
c) Managing Conflicts/ The Leader as Team-
Builder
d) Strategic Planning: Using the BSC Model
e) Decision Making
High Performance Leaders
Action Planning Chart 3
 MANAGEMENT FUNCTIONS AND PROCESSES

PLANNING

DECISION-MAKING ORGANIZING
CONTROLLING
COORDINATION

COMMUNICATION

INFLUENCING STAFFING

Chart 5
 MANAGING IS
GOALS AND
OBJECTIVES

ACHIEVING

Manager

Planning Thinking
THROUGH PEOPLE USING TECHNIQUES
Organizing Making Decisions
Directing Communicating
Controlling Improving

UTILIZING ORGANIZATIONS RESOURCES

EFFECTIVELY & EFFICIENTLY

IN AN ORGANIZATION
Chart 4
 L
E
A
D
I
N

Traditional View of Management G

Supervisors/ Managers
Planning Organizing Leading Controlling

Workers

Doing
 L
E
A
D

Contemporary View of Management I

N
G

Supervisors/ Managers
Leading

Workers

Planning & Organizing Doing

Controlling
 KRAs & Responsibilities

1 Bottom Line/ Increase income/prot,

Financial Mobilize resources effectively
Develop new markets

2 Customer increase customer satisfaction,

increase customer base
Develop ones value proposition

3 Process
improve systems and processes

4 People
Promote learning and growth
Chart 99
Competency Development Framework

Managing the
Organization/Business

Managing Teams/
the Work

Managing
Relationships

Managing the
Self

10
 Competencies of the 21st Century Leader
Managing Competencies
Strategic Planning
Organizing & Stafng
Performance Mgt
Personal Technical
Managing Change,
Effectiveness Technology Competencies
& Innovation Technical Skills
Self-Knowledge
Industry Awareness
Proactivity / Time
Project Management
Management
Professional Image Interpersonal Entrepreneurial Skills
Competencies
Emotional Intelligence
Interpersonal Sensitivity
Communication Skills
Leadership Networking Org
Sensitivity Negotiating

11
 LEADING Motivate
Communica
Delegate
te
CONTROLLING
Train Set
Performance
Lead/
Standards
Allocate Control Evaluate
Resources People Communicat
Administe e & Motivate
r Thing
Staff Make s Manag
Ideas
Decision e
Organize Develop & Plan
s Change
Analyze
ORGANIZING Problems
Make Environmental
Plans Set Scan
Goals PLANNING
12
LEADING is
The ability to inspire condence and
support among the people who are
needed to achieve organizational
goals
The art of influencing people by
persuasion and example to follow a
line of action
The principal dynamic force that
motivates and coordinates the
organization in the accomplishment
of its objectives
An effort to maintain control and
power over others
 A Leaders Mentality
LEADER ASSOCIATE
o Complains quietly Complains loudly

Thinks Blames
analyzes Accuses
evaluates
Initiates actions Waits for orders

Acts Reacts
Focuses on Focuses on
achievements problems &
Thinker excuses
achiever Worrier
doer
 LEADERSHIP vs MANAGEMENT
Deals with the Deals with the
interpersonal administrative
aspects of a aspects of the
managers job managers job
such as inspiring, such as planning,
motivating, organizing and
influencing and controlling
leading change
Maintains their
Transforms their organization
organization with through order,
a vision and consistency and
mobilizing predictability
people to
accomplish it
 LEADERS vs MANAGERS
Visionary Rational
Passionate Businesslike
Creative Persistent
Inspiring Tough-Minded
Innovative Analytical
Imaginative Deliberative
Experimental Authoritative
Warm and radiant Cool and reserved
Initiator Implementer
Acts as coach, consultant, teacher Acts as boss
Does the right things Does things right
Inspires through great ideas Commands through
position
Knows results are achieved Focuses on results
through people
Basic Principles Of Systems Thinking
As Applied To Management And
Leadership
Systems thinking is a management discipline
concerned with understanding a system
(comprising of policies, processes, practices and
people) by examining the linkages and interactions
between the components that comprise the entirety
of that dened system.

The whole system is a systems thinking view of the

complete organisation in relation to its environment
- an integrated, complex composition of many
interconnected systems (human and non-human)
that need to work together for the whole to function
successfully; e.g. the nance system, the decision- Chart 3
 Basic Principles Of Systems Thinking
As Applied To Management And
Leadership
Systems may be thought about as having clear external
boundaries (closed) or having links with their
environment (open). An open systems perspective is the
more common and realistic.

Whole system success requires group or team-level goal-

setting, development, incentives, communication,
reviews, rewards, accountability. The aim is to focus on
what binds individuals together and what binds systems
together rather than functional silo performance.

Chart 3
Basic Principles Of Systems Thinking
As Applied To Management And
Leadership
A whole system can succeed only through managers
collaborating in and across a number of functional
systems. The whole system can fail only if leadership
at the level of the whole system fails.

Factors in systemic failure may include confused goals,

weak system-wide understanding, flawed design,
individual incentives that encourage loyalty to sub-
ordinate (rather than super-ordinate) goals, inadequate
feedback, poor cooperation, lack of accountability, etc.

Chart 3
 Basic Principles Of Systems Thinking
As Applied To Management And
Leadership
The leadership challenge is accentuated by the realisation
that for every legitimate, ofcial or consciously designed
system (which is intended to be and is supposedly
rational) there is a shadow system. The shadow system is
where all the non-rational issues reside; e.g. politics, trust,
hopes, ambitions, greed, favours, power struggles, etc.

Chart 3
 Systems Approach to Management

A line of thought in themanagementeld which stresses the interactive

nature and interdependence of external and internal factors in an Chart 3
 LEADERSHIP FRAMEWORK

Leader
characteristics
and traits

Internal & Leaders

Leader behavior hip
external effective
and style ne s
environment s

Group member
characteristics

l = f(l,gm,s)
Managing Today: Robbins
 DEVELOPMENT OF LEADERSHIP THEORIES
Approach Central Theme Approximate Time Period
Authentic/ spiritual/ and
Emerging
servant leadership

Transformational
New Leadership
leadership theory
LMX Theory: High
quality relations has
Relational
more positive leader
outcomes
Contingency theory:
Situational Different situations
demand different
kinds of leadership

Behavioral What leaders do &

how they act
Trait Great Man theory:
Focus on innate 1900 1920 1940 1960 1970 1980 1990 2000 2010
qualities
 OLD vs NEW LEADERSHIP ROLE

Old Role New Role

Command and control Visionary
Rigid, one best way Change agent
Centralized and directive Coach and empowerer

Chart 24
 LEADERSHIP ROLES
1. Figurehead engage 5. Team builder & team player
in ceremonial contribute to group morale;
activities; represent cooperate w/ others, loyal
group to outsiders
6. Technical problem solver
2. Spokesperson serve as technical expert or
report information adviser
about the group to
outsiders 7. Entrepreneur suggest
innovative ideas; sear for
3. Negotiator make new undertakings for the
deals with others for group
needed resources
8. Strategic planner set
4. Coach and motivator direction for others based on
recognize external environment
achievements,
encourage and 9. Executor make things
inspire people happen; translating plans
into action
 TRAITS OF EFFECTIVE LEADERS

High Energy/
enthusiasm Internal locus of control Integrity/
Assertiveness Flexibility
trustworthiness

Sense of Humor TRAITS Humility

Self-condence Stability Intelligence Sensitivity to others

Chart 15
 CHARACTERISTICS OF CHARISMATIC
LEADERS
Visionary
Possess masterful communication skills
Ability to inspire trust
Able to make group members feel capable
Energy and action-oriented
Emotional expressiveness and warmth
Romanticize risk
Uses unconventional strategies

They challenge, prod and poke

 TIPS TO BECOMING A CHARISMATIC
LEADER
Be sure to treat everyone you meet as the most
important person you will meet that day.
Multiply the effectiveness of your handshake
Give sincere compliments
Thank people frequently, esp. your own group
members
Smile frequently, even if you are not in a happy mood
Maintain a childlike fascination for your world
Be more animated than others
Think big
 TRANSFORMATIONAL LEADER

Raises peoples awareness

Helps people look beyond self-interest
Helps people search for self-fulllment
Helps people understand need for change
Invests managers with sense of urgency
Is committed to greatness
Adopts a long-range broad perspective
Builds trust
Concentrates resources where most needed
 ETHICAL LEADERSHIP
Develop a code of ethics and follow it (On Top
of RA 6713).
Establish procedures for reporting violations.
Involve employees in identifying ethical issues.
Monitor ethical performance.
Reward ethical behavior.
Publicize ethical efforts.

Chart 77
 SERVANT LEADERSHIP
(9 Behaviors)
Serve First
Build Trust
Live Your Values
Listen to Understand
Think About Your Thinking
Add Value to Others
Demonstrate Courage
Increase Your Influence
Live Your Transformation
WELL-LIKED TRAITS OF LEADERS
1. Kind, humane (mabait)
2. Understanding (maunawain)
3. Gets along with others (marunong makisama)
4. Helpful (matulungin)
5. Industrious (masipag)
6. Has good sense of humor (palabiro)
7. Able to give way (mapagbigay)
8. Joyful (masayahin)
9. Patient (mapagpasensiya)
10. Gives order properly (maayos mag-utos)
Chart 32
 DISLIKED TRAITS OF LEADERS
1. Boastful (mayabang)
2.
Haughty (mapagmataas)
3. Rude (mataray)
4. Having favorites (may kinikilingan)
5. Lazy (tamad)
6. Does not accept mistakes (ayaw tumanggap ng
pagkakamali)
7. Selsh (makasarili)
8. Unapproachable (mahirap lapitan)
9. Gossiper (tsismoso/a)
10. Have no concern for others (walang malasakit sa kapwa)

Chart 33
 Leadership Styles

1.9 9.9

Employee-Centered

5.5

1.1 9.1

Task-Centered
 LEADERSHIP STYLES

1. Country Club Leadership (High People/Low

Production)
This type of leader lacks direction and control. The
result is a work environment that is very relaxed
and fun, but production suffers.

2. Produce or Perish Leadership (High Production/

Low People)
This type of leader is very autocratic, has strict
work rules, policies, and procedures, and views
punishment as the most effective means to
motivate employees.
 LEADERSHIP STYLES
3. Impoverished Leadership (Low Production/Low People)
This type of leader is mostly ineffective. He/she has neither a high
regard for creating systems for getting the job done, nor for creating
a work environment that is satisfying and motivating. The result is a
place of disorganization, dissatisfaction and disharmony.

4. Middle-of-the-Road Leadership (Medium Production/Medium

People)
This type of leader settles for average performance and often
believes that this is the most anyone can expect.

5. Team Leadership (High Production/High People)

This type of leader places production needs and the needs of the
people equally. This creates a team environment, which leads to
high satisfaction and motivation and, as a result, high production.
THEORY X and THEORY Y . . .
 Effective Leadership Practices:
Directive Behavior
Set goals or objectives
Makes clear the role each person will play in the
accomplishment of the task
Plans work in advance to be accomplished by the
follower
Organize resources
Sets time lines for future work
Determines methods of evaluation and standards of
performance
Shows or tells a follower how to do a specic tasks
Checks to see if work is done properly and on time

Chart 21
 Effective Leadership Practices:
Supportive Behavior
Listen to the problems of the follower (job or non-job related)
Praises the follower for task accomplishment
Asks for suggestions or inputs for task accomplishment
Encourages or reassures the follower that he/she can do the
task
Communicates information about the total organizations
operations
Discloses information about self (job or non-job related)
Facilitates follower problem-solving in task accomplishment
Communicates and demonstrates appreciation for task well done.

Chart 22
Though much is taken, much abides;
and though
We are not now that strength which in old days
Moved earth and heaven, that which we are,
we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to nd, and not yield.

Quoted by Sen. Miriam Santiago in her speech to USC, UP Manila

Chart 82
 L

Model of Leadership Skills

E
A
D
I
N
G

tive
Technical Emotional

Inte
Competence Intelligence
tra

rpe
nis

rso
mi
Ad

nal
Managing Core
People Leadershi Managing
p Skills Conflict

Creating Visions & Problem

Strategic Solving &
Planning Decision Making

Conceptual
Ref: Intro to Leadership, Peter Northouse
 L
E
A

Leading Activities
D
I
N
G
 43

COMMUNICATION
I know that you believe you
understand what you think I said,
but I am not sure you realize that
what you think you heard is not
what I meant.
 L
E

Communication Process A
D
I

Encodes Decodes N
G
Message
Message
Feelings
Thoughts Receiver
Ideas
Channel
Sender
rs

Context of
Filte

rs
the situation

Filte
Encodes
Message
Decodes
Message
Feedback Feelings
Thoughts
Ideas
 ELEMENTS OF A SPOKEN MESSAGE
The factual message (Job Level) Factual
Info The speaker transmits information to the listener statement
(What I inform you about)

The Self Revelation (Interpersonal Relations)

The speaker says something about him/herself or disclose
Me Self
him/herself consciously or subconsciously
revelation
(What I tell you about me)

Relationship (Interpersonal Relations)

You/ The speaker assesses the relationship the he/she has to the listener
Us (What I think of you or how well we get on with each other)
Relation-
Appeal (Interpersonal Relations) ship
To The speaker requests something from the listener
do (What I want you to do) Appeal

Chart 37
 L
E
A

COMMUNICATION BARRIERS D
I
N

Management G

Cultural differences Preoccupation with other

Hearing what one wants matters
to hear Insufcient time
Poor listening Assumptions
Different interpretations Lack of feedback
Contradictory verbal and Ambiguous, nonspecic Peers
Supervisor non verbal messages messages
Lack of Trust Physical distractions
Unclear initial idea (noise, interruptions)
Fear Lack of sensitivity
Negative attitudes to feelings
Differences in education Attempting to snow
and training the other party

Worker
 COMMUNICATION CHALLENGES OF A
LEADER

Communicating to out-group members

Communicating in conflict situations

What to Do:

1. Listen
2. Show Empathy
3. Recognize their Unique Contributions
4. Help them Feel Included
5. Create a Special Relationship
6. Give them a Voice and Empower them to Act

Chart 38
 L
E

How to Listen Actively A

D
I
N
G

Commit yourself to each individual act of listening.

Neutralize your biases.
Really concentrate on what is being said.
Encourage the speaker.
Ignore all distractions.
Focus on the main ideas.
Test your understanding.
Delay formulating your arguments.
Suspend judgment.
Dont talk too much.
Remember: listening is a key to personal success.
 Communication Styles
AGGRESSIVE PASSIVE ASSERTIVE

Fight Flight Face

Win-Lose Lose-Win Win-Win

Power over others Others have Power over

power over you yourself

Gotcha games Poor me games No games

Youre not OK, Youre OK, Im Youre OK, Im

Im OK not OK OK
COMMUNICATION IN MANAGEMENT
Give information to subordinates
Interpreting department policies and instructions
Instructing on what and how to work
Making assignments to subordinates
Following up or checking on assignments
Getting information
Advising subordinates
Correcting subordinates
Praising subordinates
Stimulating subordinates to continue or increase effort
Leading conferences
Negotiating with equals
Conciliating or mediating disputes between subordinates
Chart 40
 COMMUNICATIONS
as PRIME DUTY of Supervisors

Information Downwards Information Upwards

Company policies and Suggestions
objectives Questions
Departmental and individual
About job problems
objectives Complaints and grievances
About the job
Feelings and attitudes
Answers to questions
Feedback on problems encountered
Availability of resources
Feedback on results

Chart 42
 COMMUNICATION 101:
BASIC RIGHTS OF WORKERS
1. Let me know what you expect of me.
2. Give me an opportunity to perform.
3. Let me know how Im doing.
4. Give me guidance and support when and where I
need it.
5. Reward me according to my contribution.

Chart 44
 L
E
A

Leading Activities
D
I
N
G
 Motivation
(A perspective on Employee Motivation)

Dreams, Values,
Unfullled Needs, Effort
Wants, Desires
Performance Outcomes

Ability

ATTITUDES
Fullls Not Fulll
(Not FEEDBACK
(motivating)
motivating)
MASLOWs Hierarchy of Needs

Self- To be creative and imaginative,

Actualization to grow
To display ones abilities and
Self-Esteem talents with pride
Social To feel accepted and respected,
to belong
Security
To feel safe and secure

Physiological To survive and stay alive, to ll

body needs

Chart 27
 L
E
A

HERZBERGs Two-Factor Model D

I
N
G

Maintenance Motivators
Factors Achievement
Company Policies/ Recognition
Administration
Work itself (Challenge)
Supervision
Responsibility
Working conditions
Interpersonal relations Professional Growth
Benets Personal Growth
Status
Security
MASLOWs Hierarchy of Needs Needs of TODAYs Workers

SELF- self-fulllment, Opportunity to learn ACTUALIZATION realization of

new facts/information, individual potential, chance to develop
new skills
self-respect, Respect from fellow recognition, workers, chance to
ESTEEM achievement accomplish something worthwhile,
moving up in ones career
friendship, The friendliness of acceptance fellow
workers, the SOCIAL decency with which you
are treated
security, protection Opportunity to get a
SAFETY from harm, promotion, job security, freedom from fear
a safe work environment food, water, air, Fair wage to pay for
PHYSIOLOGICAL shelter, sex food, clothing, and a
place to live

Chart 29
 Principles of Motivation
Principle of Participation
Motivation to accomplish results tends to increase as
people are given the opportunity to participate in the
decisions affecting those results.

Principle of Communication
Motivation to accomplish results tends to increase as
people are informed about matters affecting those results.

Chart 34
Principle of Recognition
Motivation to accomplish results tends to increase as
people are given recognition for their contribution to those
results.

Principle of Delegated Authority

Motivation to accomplish results tends to increase as
people are given authority to make decisions affecting
those results.

Chart 35
 L
E

Some Suggestions for Motivating

A
D
I

Employees N
G

Recognize individual differences

Match people to jobs
Use goals
Ensure company goals are perceived
attainable
Rewards and recognition
Link rewards to performance
Dont ignore money
 L
E
A

Coaching
D
I
N
G

Coaching involves teaching, the passing on of

knowledge, but it goes beyond. Coaching is
active transfer of competence.
Steps in Coaching
1. Prepare the learner
2. Demonstrate the operation
3. Create a positive atmosphere
4. Have the learner perform the operation
5. Follow up
 L
E

KEY PRINCIPLES in
A
D
I
N

COACHING

1
G

KP Maintain or enhance self-esteem

KP2 Listen and respond with empathy

KP3 Ask for help in solving problem

62
Effective Coaching Habits
Describe the specic problem
Emphasize performance standards and
management expectations
Discuss possible causes of the
problem
Explore possible solutions and agree
on most appropriate solutions
Prepare action plan and agree on
follow up date
Express condence in employees
ability to work for improvement.
 L
E
A

Leading Activities
D
I
N
G
Kinds of Conflicts
 SOURCES OF CONFLICT
ROLE AMBIGUITIES unclear job expectations
and other task uncertainties

RESOURCE SCARCITIES having to share

resources with others and/or compete for
resource allocations make a situation conflict
prone, specially when resources are scarce

TASK INTERDEPENDENCIES when individuals

or groups depend on others outputs in order to
perform well themselves.

Chart 51
 SOURCES OF CONFLICT

COMPETING OBJECTIVES when objectives are poorly

set or reward systems are poorly designed, individuals
or groups may come into conflict by working to one
anothers disadvantage
STRUCTURAL DIFFERENTIATION differences in
organization structures and in the characteristics of
people stafng them may foster conflict because of
incompatible approaches toward work
UNRESOLVED PRIOR CONFLICT unless a conflict is
fully resolved, it may remain as a lingering basis for
future conflicts.

Chart 52
 CONFLICT RESOLUTION FRAMEWORK
High
Accommodation Collaboration
Playing down conflict & Searching for a solution that
seeking harmony among meets each others needs
parties
Degree of
Cooperativeness
Compromise
Bargaining for gains
and loses to each
party.

Denying the existence of Forcing a solution to impose

conflict and hiding true ones will on the other party
feelings
Low Competition
Avoidance
Low High
Degree of Assertiveness
Chart 54
A MODEL ON TRANSACTIONAL ANALYSIS

Chart 53
 Conflict Resolution
A constructive conflict
Each person expresses concerns respectfully
and actively listens
Concerns are expressed in I language without
attacking the character of others
Constructive solutions are considered to
resolve the conflict for the benet of all
involved
A solution is selected with an agreement to
review the outcomes of the solution at a future
date
 ATTITUDES for
Collaborative Conflict Resolution
Belief in availability and desirability of a mutually
accepted solution.
Belief in cooperation rather than competition.
Belief that everyone is of equal value.
Belief in the views of others as legitimate statements
of their position.
Belief that differences of opinion are helpful.
Belief in the trustworthiness of other members.

Chart 55
 HANDLING CONFLICT
1.Be positive and patient.
2.Focus on the problem, not on the person.
3.Keep an open mind; be flexible.
4.Seek the other persons ideas and point of view.
5.Explore all alternatives for resolving conflict.
6.Try to understand the other persons perception.
7.Respect the opinion of others.
8.End on a positive note.

Chart 56
 THE LEADER AS TEAMBUILDER
Involves clarifying roles of each subordinate and
creating the conditions necessary for mutually
cooperative efforts

As a team leader, you are probably aware of the

excitement as well as the uncertainty that goes with
the formation of a team.

In addition to what each individual experiences, every

new team goes through its own process of change.
This process is necessary in order to forge a fully
functioning team.

Chart 45
 WHY WOULD PEOPLE JOIN TEAMS
It offers psychological and material rewards:

SECURITY. It is where members can feel safe and cared for.

BELONGING. It provides an identication.

INDIVIDUALITY. It recognizes and supports the valuable

differences of its members.

PRIDE. Members share in group achievements and failures.

RECOGNITION. The outside world respect it as a more powerful

entity than it would an individual.

Successful leaders know how to create and nurture teams

so they become their source of pride.
Chart 46
 WHEN TEAMWORK ISNT THERE

Competition is normal. People will compete for attention,

promotions, another step in the corporate ladder.
But jealousy, hostility and politics result and most
organizational tasks suffer when individuals compete as
individuals rather than as teams.

WATCH FOR THESE SYMPTOMS :

Queries from other departments are handled sloppily or not at all.

You hear repeatedly That is not my job.
Conversations are gossipy , with snide remarks and unrelated to work.
Faces are blank or sullen than smiling and welcoming.
Absenteeism and turnover are high.

Chart 49
 L
E
A

Leading Activities
D
I
N
G
 Strategic Planning

Strategic planning is the process by which

an organization envisions its future and
develops the necessary procedures and
operations to achieve that future.

Provides a picture of the

organization as it wants to look in
the future.
A Balanced Scorecard is a

Carefully Selected
Set of Measures
Derived from the
Organizations Strategy
What is a Balanced Scorecard?

Measurement
System

Strategic
Management
System

Communication
Tool
BSC Translates Mission, Values,
Vision and Strategy

Balanced Scorecard
Mission Why we exist

Guiding Principles Values

Vision Word picture of the future

Differentiating activities Strategy

 Translating with the BSC
QUALITY
Our desired Future State

VISION

Differentiating Activities
STRATEGY

What we must do n
order to OBJECTIVES
Employee
implement our FINANCIAL CUSTOMER
Internal
Processes
Learning &
Growth
strategy
MEASURES
How strategic Employee
Internal
success is FINANCIAL CUSTOMER Processes
Learning &
Growth
measured and
tracked
 What is the Balanced Scorecard?

PROFITABL The BSC

E GROWTH Retains the
Financial traditional
Perspectiv nancial
New Current Productivi Use of Assets measures
e
Revenue Business ty

Customer Value Proposition

Customer Best in Best Total Best Total
Perspectiv Product/ Solution Cost
e Service
The BSC links
the nancial
Internal Product Customer Operational measures with
Perspectiv Innovation Intimacy Excellence the drivers of
e future
performance

Learning Skills Technology Environment

and
Growth
 The BALANCED SCORECARD

The BSC is a shared understanding of the Vision-Mission strategy

translated into:
ns
e s s s l a e s
iv r e s v e P r c
t u t t i n u
j e c e as r ge
i t i a t io so
Ob M Ta In Ac Re
Financial
Customer
Internal
Learning&Growth
The Balanced Scorecard translates the vision and strategy into a
coherent set of measures in four balanced perspectives
Strategy Map Objective Measure Target Initiative
Grow Annual Marketing
Revenue Revenue Gross Sales +30% program
Financial from new
Growth
products

Satisfy Customer CRM

Customer New Products Customer Protability +20% Program
Needs

World-Class Fast Time to Time to from 9 Cycle Time

Internal Product Market Market down to 6 Reengineering
Development months

Learning & Acquire, Staff Skills

Growth Highly Skilled
Develop Competence 90% Development
Workforce
Skills Program
 L
E
A

Leading Activities
D
I
N
G
 DECISION-MAKING
is the process of choosing a course of action for dealing
with a problem or opportunity
Steps in systematic decision making.
Recognize and dene the problem or opportunity.
Identify and analyze alternative courses of action, and
estimate their effects on the problem or opportunity.
Choose a preferred course of action.
Implement the preferred course of action.
Evaluate the results and follow up as necessary.

Chart 59
 Decision Analysis
Establish goals or objectives
Study current situation
Search for options
Compare options, use goal / objective as basis
Shortlist options
Assess adverse consequences of options
Choose the best option
 POTENTIAL PROBLEM
ANALYSIS
1. Identify Potential Problems

2. Identify Likely Causes

3. Take Preventive Action

4. Plan Contingent Actions

 L
E
A

Decision Making Styles

D
I
N
G

One A small Majority Team Team comes

person group decides discusses to a
decides decides and comes to unanimous
a consensus conclusion
 CONTINUUM OF LEADERSHIP BEHAVIOR
Boss-Centered Subordinate-Centered
Leadership Leadership

Use of authority by
leader
Area of freedom
for subordinate

Leader makes Leader Leader Leader Leader Leader Leader permits

decision and presents presents presents denes subordinates to
announces it sells decision ideas and tentative problem, gets limits, asks function within
invites decision suggestions, group to limits dened by
questions subject to makes make superior
change decision decision
 TYPES OF DECISIONS
Programmed decisions.
Involve routine problems that arise regularly and
can be addressed through standard responses.

Nonprogrammed decisions.
Involve nonroutine problems that require
solutions specically tailored to the situation at
hand.

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 DECISION ENVIRONMENTS

Certain decision environments.

Exist when information is sufcient to predict the
results of each alternative in advance of
implementation.

Risk decision environments.

Exist when decision makers lack complete certainty
regarding the outcomes of various courses of action,
but they are aware of the probabilities associated with
their occurrence.

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 UNCERTAIN DECISION ENVIRONMENTS
Exist when managers have so little information on hand that
they cannot even assign probabilities to various alternatives
and their possible outcomes.
Described as a rapidly changing setting in terms of:
External conditions.
The information technology requirements needed for
analyzing and making decisions.
The people who influence problem and choice denitions.

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UNCERTAIN DECISION ENVIRONMENTS

Can be described in terms of types of risks

encountered by the organization.
Strategic risks are threats to overall business
success.
Operational risks are threats inherent in the
technologies used to reach business success.
Reputation risks are threats to a brand or to the
rms reputation

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 DECISION-MAKING REALITIES

Decision making information may not be

available.

Bounded rationality and cognitive limitations

affect the way people dene problems, identify
alternatives, and choose preferred solutions.

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DECISION-MAKING REALITIES. . .

Most decision making in organizations goes

beyond step-by-step rational choice.

Decisions must be made under risk and

uncertainty.

Decisions should be ethical.

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 GROUP DECISION-MAKING
Decisions often are made by groups of people:
May be composed of individuals at different or at the
same level in the organization
May make some decisions without managerial input
Tend to follow the same decision-making process
Will have dynamics and interpersonal processes that
make group decision making very different from
decisions made by an individual.

Chart 66
INDIVIDUAL vs GROUP DECISION-MAKING

Important considerations for judging the

overall value of group decision vs.
individual decision making
Time
Cost
Nature of the problem
Satisfaction and commitment
Personal growth

Chart 67
 GROUP DECISION-MAKING TECHNIQUES
Brainstorming
Large number of ideas are generated while evaluation
of the ideas is deferred

Imagination is encouraged. No idea is too unique or

different, and the more ideas offered the better
Using or building on the ideas of others is
encouraged
There is no criticism of any idea, no matter how bad
it may seem at the time
Evaluation is postponed until the group can no longer
think of any new ideas
Chart 68
GROUP DECISION-MAKING TECHNIQUES. . .
Nominal group technique
1 Individuals silently, and without discussion, write down their
ideas
2 Each member presents one idea at a time, until all ideas are
presented, without discussion
3 Ideas presented on a blackboard and then discussed to
clarify and evaluate
4 Silent and independent vote or ranking of alternative choices
Delphi technique
Highly structured survey of participants regarding their
opinions or best judgments

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GROUP DECISION-MAKING TECHNIQUES. . .
Dialectical inquiry
Debate between very different sets of recommendations
and assumptions to encourage full discussion
Overcomes tendency of group to avoid conflict when
evaluating alternatives
Devils advocacy
Individual or subgroup argues against the
recommended actions and assumptions put forth by
other members of the group
Also overcomes tendency of group to avoid conflict
when evaluating alternatives

Chart 70
 Advantages and Disadvantages
of Group Decision Making
Groups can accumulate more knowledge
and facts and thus generate more and
better alternatives.
Groups often display superior judgment
when evaluating alternatives, especially for
complex problems.
Group involvement in decisions leads to a
higher level of acceptance of the decisions
and satisfaction.
Group decision making can result in growth
for members of the group.
Groups take more time to reach decisions
than do individuals.
Group social interactions may lead to
premature compromise and failure to
consider all alternatives fully.
Groups are often dominated by one or two
decision leaders which may reduce
acceptance, satisfaction and quality.
Managers may rely too much on group
decisions, leading to loss of their own
decision and implementation skills.
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 GROUP DECISION-MAKING PITFALLS
GROUPTHINK
Symptoms include
Self-censorship Rationalization Morality
Pressure Invulnerability Stereotype
Mindguards
Unanimity

Common information bias

Group members overemphasize information held by a majority,
failing to be mindful of information held by one or a few group
members reduces
Availability of unique information ideas
Perspectives possessed by individual group members

Chart 73
 GROUP DECISION-MAKING PITFALLS
Diversity-based inghting
Instead of creating rich discussions and insight,
diverse ideas create ill will and fractured groups
May occur when individuals feel strongly about their
ideas
No mechanisms exist to channel disagreement in
productive ways

Risky Shift
Groups make either riskier decisions than would have
been made by individual members acting alone
Direction of shift may be affected by diffusion of
responsibility
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ASK AND ANSWER THESE QUESTIONS:

Is the problem easy to deal with?

Might the problem resolve itself?
Is this my decision to make?
Is this a solvable problem within the
context of the organization?

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 REASONS FOR
DECISION-MAKING FAILURE

Managers too often copy others choices and

try to sell them to subordinates.

Subordinates may believe the manager is

imposing his or her will rather than working for
everyones interests.

Managers may focus on the problems they see

rather than the outcomes they want.

Managers use participation too infrequently.

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 WHY LEADERS FAIL
1. Are insensitive to others. They use an abrasive, intimidating,
bullying style.
2. Are cold, aloof, and arrogant toward others.
3. Betray trust.
4. Are overly ambitious. They think of the next job, and they play politics.
5. Have specic performance problems with the business.
6. Over manage. They are unable to delegate or build a team.
7. Cannot staff effectively.
8. Cannot think strategically.
9. Cannot adapt to a boss with a different style.
10. Are over dependent on an advocate or mentor.

Chart 78
LEADERSHIP WHEEL

Chart 79
 LEADERSHIP WHEEL

FOCUS and CONTEXT: At the hub of the wheel, the vision,

values and purpose on which leaders effectively focus
themselves and their teams or organizations.
RESPONSIBILITY FOR CHOICES. Leaders take initiative
and do what needs to be done rather than waiting for
someone else to do something.
AUTHENTICITY. Leaders are authentic and lead by visible
example, fostering openness and continuous feedback.
PASSION and COMMITMENT. Leaders are passionate and
build strong commitment through involvement and
ownership.
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 LEADERSHIP WHEEL

SPIRIT and MEANING. Leaders lead with heart and rouse

team or organizational spirit.

GROWING and DEVELOPING. Leaders help people grow

through strong coaching and continuous development.

MOBILIZING and ENERGIZING. Finally, leaders energize

people by building strong teams, inspiring and serving.

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 Start-Stop-Stay Action Planning
On the basis of what you have learned in this Course, what
are the activities that you will, beginning tomorrow and up
to the next 30 days:
a. Start/ Stay/Continue doing.
b. Stop doing.

List and prioritize these activities.

Make two copies of your plan.
Present and discuss, if called.
Keep a copy for your self.
Give one to your supervisor or a close
friend --- to help you monitor your progress.

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I will pay more for the ability to deal with
people than for any other ability under the
sun.

John D. Rockefeller
Noted Industrialist & Businessman

Chart 82