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PYC 4810Exam Oct/Nov 2018
Questions and Answers
Person-oriented vs production-oriented leaders Page 487/8 in the TEXTBOOK
A large body of research suggests that leaders differ greatly along those two dimensions. Leaders
who are high on the initiating structure (or production-centered) dimension are concerned
mainly with production, and focus on getting the job done. They engage in actions such as
organising work, setting goals, and making leader and subordinate roles explicit. Leaders low on
this dimension show less of a tendency to engage in those actions. Leaders high on the second
dimension, the consideration (or person-centered) dimension, are concerned with establishing
good relations with their subordinates and being liked by them. They do favours for their
subordinates, explain things to them, and ensure their welfare. Leaders who are low on this
dimension don’t care much about how they get along with their subordinates. The two
dimensions
(initiating structure and consideration) are largely independent.
Research shows that both patterns have advantages and disadvantages. The major benefits of
people-oriented leadership are improved group atmosphere and morale, but since leaders high
on this dimension shy away from presenting negative feedback to subordinates, productivity
sometimes suffers. The benefits of initiating structure leadership include enhanced efficiency
and performance, while its shortcomings are that work attitudes such as job satisfaction and
organisational commitment may suffer. A pattern whereby leaders demonstrate high degrees of
concern with both people and production has been shown to have an edge in many settings,
over leaders who only use one or the other.
, The mere fact that two new machines were installed will not automatically improve production.
If the company does not give adequate training and explain the reason for installing the machines
and that it will be to the benefit of the company AND the employees it can have the opposite
effect like it is in this case. In this case the production manager MUST adopt to a mixed
leadership style where production is important AND show care for the wellbeing of the workers.
This will attribute to the leader as to be seen as a “skillfull” leader that show that he can
COMBINE both these overall styles. Production is important BUT must go hand in hand with
the development (Training) of the workforce. To lead successfully a person must demonstrate
expertise and empathy. GRID TRAINING is the answer. This is a multistep process designed to
cultivate within leaders a concern for people AND a concern for production.
equity theory The theory stating that people strive to maintain ratios of their own outcomes (rewards) to their own
inputs (contributions) that are equal to the outcome/input ratios of others with whom they compare themselves.
(Page 254 in the Textbook)
Equity theory proposes that individuals are motivated to maintain equitable (I.e. Fair)
relationships between themselves and others to avoid relationships that are inequitable.
Individuals compare themselves in terms of outcomes (e.g. What they get out of their jobs, like
benefits) and inputs (the contributions that they made e.g. time they worked and extra effort put
in). Individuals make Equity judgements by comparing outcome/ input ratios by determining it
against others’ ratios. These comparisons could therefore result in three different states, namely:
overpayments inequity, underpayment inequity and equitable payment.
According to research findings, the more individuals believe that they are unfairly paid, the more
negative symptoms of stress they display, such as coronary heart disease, depression and
insomnia. Management should avoid underpayment in response to avoidance of a strike under
dissatisfied employees. They should also avoid overpayment as to not create inequality within
the workplace. The organization should be transparent when helping employees to to understand
the basis for their salaries.
In this case where production has dropped , there was poor training and there is a lack of system
and financial incentives – leading to poor morale the manufacturing manager can address this by
implementing the following:
• Provide training for the newly installed machines
• Hold meetings with the workers to explain that it will be to the benefit of the company
AND give and implement a financial incentive plan for the workers IF new production
targets are met due to the installation of the new machines.
• This wil show empaty and improve the morale of the workers.
This will show that the company has the wellbeing of the company in mind and there will be
benefits for the workers – a win / win situation
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