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Summary Leading and Managing People lectures ()
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Summary of all lectures of the course Leading and Managing People. For the exam, I also strongly recommend reading the book.
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Summary Leading & Managing PeopleLecture 1 – Introduction to OB and HRM
Organisational behaviour – examples: how people work in teams, personality, leadership, etc.
The width of people processes (= organisational behaviour) within organisations
Effect of COVID: people that joined an emergency departments (healthcare) during COVID start leaving their jobs more quickly,
because they felt disconnected with their organisations/colleagues/patients
→ Factors happening in the real world do impact humans and lead to important outcomes for organisations (e.g. people
leaving their job = expensive to manage)
Example – Volkswagen diesel scandal (2015): organisation engaging in unethical behaviour it was people engaging in a fraud
If we look at organisational performance, we look at people processes
The way humans are wired shape organisational outcomes important to have a look at these people processes
Managing people ≠ Leading people
Manager = someone who gets things done through other people in organisations has a central role
People skills: ability to work with, understand, and motivate other people, both individually and in groups
- Better human or interpersonal skills result in lower turnover of quality employees
- ‘Good places to work’ tend to have better financial performance
Exercise:
o What are characteristics of Leaders, Managers and Coaches? (e.g. football)
o How are the roles similar vs. different? (coach can enable you to become better in skills)
o What is your ideal type of each? (e.g. Mark Rutte)
Strong/charismatic leaders:
Seek status: Dominance, Capacity for Status, Self-Acceptance
Are focussed on others: Sociability, Social Presence, Empathy
Have a typical Big Five: Extraverted, Emotionally Stable, Agreeable (looking for harmony), Conscientious (strong sense of
duty), Open to New Experiences
Yet, personality has only partial utility:
- Correlations with having a leadership-role are small (personality – outcome of leadership, i.e. performance)
- It does not predict organisational effectiveness
- Only useful when predicting leaders’ behaviour
Strong leaders exchange value within their followers in a strong partnership a partnership needs to develop
Employees who feel their leaders care about their health engage more in organisational citizenship behaviour
Strong leaders are prototypical, socially attractive, in-group members
- People are perceived as belonging to one group: the in-group
- Leaders have influence, because they embody the ideals of the group
Leadership is about the relationship a person has with people that follow & you do
that through different means personality, exchanging value, identification with
followers
Effective vs. Successful managers:
- Effective managers get stuff done
- Successful managers have strict promotions / quickly ascend the ladder (not ideal)
All managers engage in 4 managerial activities (see figure), but to what extent?
Average manager spends 19% of time on Networking, 20% on HRM, 29% on Communication & 32% on traditional management
Effective managers are more task focused
Successful managers are more people focused (Networking) – with whom can I work? what can we develop? Etc
Under which circumstances is a manager or leader effective?
Organisational Behaviour (OB) = field of study that investigates the impact that
individuals, groups, and structure have on behaviour within organisations for the purpose
OB is a field of study that endeavours to:
- Understand, explain, predict and improve it
- Change (improve) human behaviour as it occurs in the organisational context
Fields that study OB: psychology, social psychology, sociology, anthropology
OB aims to explain:
- Inputs – Processes – Outcomes
Dependent (Y) variable = outcome we want to predict / change
Independent (X) variable = variable that (we expect to) predicts the outcome
Mediator (M) variable = variable that (partly) explains the relationship between X
and Y
Moderator / contingency (W) variable = variable impacting on the relationship
between X and Y few absolutes in OB – much ‘depends’
When we want to explain and predict behaviour, we often see that it depends on what is the mediator (M)
& under which circumstances (W) is this relationship truly the case?
,Example: More favourable organisational culture in terms of safety, leads to better safety outcomes is only the case (W)
when leadership incentivises people to actually work along those lines as well
Due to contingencies, we can explain but not confidently predict
Individual factors: e.g. cannot predict which staff member leaves when
Group factors: e.g. cannot predict level of cohesion & performance of particular groups
Structure factors: e.g. cannot predict performance improvements that a given structure change will bring
Management factors: e.g. cannot predict which managers will achieve highest levels of commitment & performance in
given setting
OB variables occur across levels / contexts:
- PESTLE: the Political, Economical, Social, Technological, Legal and Ecological context
- Individual factors + group factors + management & organisation factors + leadership
process factors organisational effectiveness & quality of working life
→ Bottom Up: Individual – Group – Organisational – National – Global
→ Top Down: Global – National – Organisational – Group – Individual
Micro OB = behaviour of individuals what do you do in particular context?
Example – what motivates employees to perform their jobs? How do employees develop
perceptions of their workplace & how do these perceptions in turn influence their behaviour?
When are you satisfied / stressed about your work? When do you feel the break should come?
Inputs: diversity in organisations, personality & values
Processes: emotions & moods, motivation, perception & decision making
Outcomes: attitudes & stress, task performance, citizenship behaviour, withdrawal behaviour
Meso OB = behaviour of people working together in teams or groups
Example – what mix of skills among team members increases team performance? What is the exchange relationship
between leaders & employees? What impact is needed for people to end up obeying?
Inputs: group structure, group roles, team responsibilities
Processes: communication, leadership, power & politics, conflict & negotiation
Outcomes: group cohesion, group functioning
Macro OB = ‘behaviours’ of entire organisations & its impact on lower levels of analysis
Example – what type of culture is optimal for performance? How should an organisation be structured to best cope with its
surrounding environment? What is the impact of processes & structures on people processes & outcomes?
Inputs: structure, culture
Processes: HRM, change practices
Outcomes: productivity, survival
Example – BP Deepwater Horizon: oil spill caught fire death
Technical aspects played a role, but people processes had a key role
Look at micro, meso and macro OB levels (figure)
Challenges & opportunities for OB: can be addressed through HRM
- Economic pressures, continuing globalisation, workforce demographics
- Maintaining employee well-being
- Managing natural performance decline
- IT: automation and computer/internet forms of selection
- Remote/dispersed working
Human Resource Management (HRM)
Look at policies & practices that we want to implement at e.g. organisational level
HRM can reduce workload = applied (development) & micro
How can organisation implement knowledge about organisational behaviour
HR functions:
Benefit programs | pay | managing turnover | job design | managing work-life conflicts | diversity management | talent
management
Look at how individuals in an organisation can perform optimally for both themselves & the organisation
Through training, rewarding (e.g. benefit packages, gym membership) individuals
Look at how new employees can be recruited & how people can be made to leave in a pleasant way
Look at how jobs can be designed (e.g. job crafting)
High-performance work systems (HPWS) = a group of separate but interconnected HR practices designed to enhance
employee effectiveness
→ This contrasts with HRM services that are often mired down in managing trivial
administrative tasks
→ Recruitment – selection – induction (get employee acquainted with organisation) – training
– performance appraisal – reward – discipline – career planning – promotion ( – training –
performance appraisal – reward – discipline – career planning – promotion) – termination
– recruitment
, Employee recruitment & selection: (= HR key element)
Interviews = most traditional selection method: less objective – e.g. candidates with performance anxiety perform poorly in
tech interviews
→ Ways to improve interviewing: multiple interviewers (e.g. 2), structured list, have person provide feedback on
results of interview (e.g. I don’t recognise myself in that)
- Impression management (IM): strongly related to interviewers’ ratings of interview performance
Yet, the relationship between IM use & job performance is weaker
2 types: Honest IM (helpful, wearing suit) & Deceptive IM (lying bias)
Weak support for link between how someone portrayed who they were during interview & how they actually
perform later on
Want to understand better how person will engage in the job that they will do ( use assessment centres)
Assessment centres can enable us to have a bit more objectivity in process
In the act of asking (instead of having the perform), you allow for impression management
You will always be assessed how close can we get to how you will actually behave?
Exercise – rewarding employees:
o What makes you feel valued at work?
Financial incentives, feeling trusted, being given more opportunities to work on different/more important tasks
o Does this impact on how you would like to be rewarded by your work?
o How should HR departments address this for their employees? (providing structure, policies, training)
Ongoing learning: HR departments can deliver this for you
Types of training: basic skills, technical skills, problem solving skills, interpersonal skills, civility training, ethics training
Methods of training: formal vs. informal | on vs. off the job
Performance evaluation: (= HR key element)
- What is performance?
Task performance = how well are you at doing your tasks / main job?
Citizenship behaviours (OCBs) = about you going the extra mile (doing more than actually required by contract)
Counter productivity = stealing, fraud, undesirable behaviour, creating a toxic environment
- Why do performance evaluation?
Make general human resource decisions (e.g. strategic direction)
Identify training & development needs
Provide feedback to employees
- Who should do performance evaluation?
Typically the line-manager (line-manager should have sufficient info to do evaluation)
360-degree feedback
Mixed evidence (consistent tasks vs. politics)
Take away messages:
For leading & managing people it is important to consider OB and HRM
OB is field of study that draws on many disciplines, and levels of analysis (e.g. psychology, sociology, etc.)
Through systematic study we aim to predict and explain people’s behaviour & improve organisational outcomes, yet few
absolutes exist in this domain
HRM has many functions that, when organised well, can provide benefits for organisations & employees
Lessons for LMP:
1. Be a people leader: develop your interpersonal (people) skills to be effective in your job (through value, identification)
2. Don’t generalise: resist the inclination to rely on generalisations; human behaviour often ‘depends’ get to know the
person and understand the context
3. Be evidence-based: use metrics rather than hunches to explain cause-and-effect relationships
4. Train: provide training to improve your employees with the necessary skills
5. Apply OB: use OB-insights to improve your employees’ work quality
Lecture 2 – Individual differences and diversity in organisations
Mistakes and illegal acts – to what extent can this be attributed to their personality?
Example – Nick Leeson: £830m losses through unauthorised speculative trading collapse of Barings Bank
Example – Jérôme Kerviel: €4.9b losses through unauthorised trading
Example – Kewku Adoboli: fraud of £2b at UBS 7-year prison sentence
Personality = an enduring disposition (= stable) to act & feel in particular ways that differentiate one individual from another
Personality is same as “individual differences”
Personality: traits/characteristics
Why measure personality?
- Impacts work outcomes
- Is helpful in hiring & training decisions (e.g. extravert job in sales/with people)
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