BUILDING HIGHPERFORMANCE

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Commonwealth Center FOR HIGH-PERFORMANCE ORGANIZA
TIONS, INC.
v
MODULE IV LEADERSHIP PHILOSOPHY
BUILDING HIGH-PERFORMANCE ORGANIZATIONS IN THE
TWENTY-FIRSTCENTURY
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LEADERSHIP Functions Philosophy Form
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LEADERSHIP PHILOSOPHY
Beliefs about the Nature and Motivation of People
1. The Nature of People and Their Attitudes
Toward Work
People dont like to work they are not
ambitious and dont want responsibility will not
do a good job unless directed, closely
supervised, and often coerced.
Doing a good job is core need of people they
want to be part of something important and to be
empowered self-control and self-direction are
more effective than external control
2. Primary Source of Motivation
People are motivated primarily by the lower
level needs (Maslow) of physiological,
safety/security, and belongingness hygiene
factors (Herzberg) including salary, benefits,
security, status, working conditions,
supervision, conflict, fairness
People are motivated primarily by the higher
level needs (Maslow) of esteem and
self-actualization motivators (Herzberg)
including interesting/challenging work,
responsibility, achievement, recognition, growth,
and advancement
3. Distribution of Knowledge and Creativ
ity
Knowledge and creativity is concentrated mostly
at the top of the organization top management
and experts know best what is needed no need
to consult with less knowledgeable lower levels
Knowledge and creativity are widely distributed
throughout the organiza-tion those closest to a
function often know best how to direct and
improve it consultation is necessary to get the
best decisions
4. What is assumed to be the nature of
work?
Work is best accomplished by dividing it up into
simpler and simpler pieces with management
responsible for integration work is what an
individual does alone rewards are win-lose
based on competition
Work is larger than any single individual and
needs a network of talented individuals working
together to accomplish it rewards are win-win
based on cooperative performance in teams
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LEADERSHIP PHILOSOPHY
Beliefs about the Nature and Motivation of People
5. Douglas McGregor The Human Side of En
terprise, 1960
Theory Y
Theory X
6. Rensis Likert, The Human Organization,
1967

System 4 Participative
System 2 Benevolent Autocratic
System 3 Consultative
System 1 Exploitative Aut
ocratic
7. Peter Block, The Empowered Manager, 19
91
Entrepreneurial Cycle
Bureaucratic Cycle
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MASLOWS HIERARCHY OF NEEDS
Growth (Self-Actualization)
Esteem (Ego-Status)
Belongingness
Safety/Security
Physical /Basic Survival (food, shelter, warmth,
etc.)
Adapted from A. H. Maslow, Motivation and
Personality (NY Harper Row, 1954)
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MOTIVATION MASLOW, HERZBERG, AND EMERY
MASLOW (motives/needs) Growth (Self-Actualizat
ion)
Esteem (Ego-Status)
HERZBERG (goals/incentives) Interesting, Chal
lenging Work Responsibility Achievement Recogni
tion Professional Growth Advancement to Higher-L
evel Tasks
EMERY (job design) Variety and Challenge Elb
ow Room for Decision-Making Feedback and Learning
Mutual Support and Respect View of the Whole R
oom to Grow
MOTIVATORS (Factors associated with job satisfact
ion and motivation)
Salary and Benefits Sense of Security Interperso
nal Relationships Status Working Conditions Qua
lity of Supervision Organization Policies and Fai
r Administra-tion
Belongingness Safety/Security Physical (Basic Su
rvival -- e.g., food, shelter, warmth, etc.)

Fair and Adequate Pay Job Security Benefits Saf
ety
Health Due Process
HYGIENE FACTORS (Adequate levels of these factors
can prevent dissatis- faction but are not
themselves motivators)
Adapted from A. H. Maslow, Motivation and
Personality (NY Harper Row, 1954) F.
Herzberg, et.al., Motivation to Work (NYJohn
Wiley, 1959) and F. Emery, Report on the
Hunsfoss Project (London Tavistock, 1964)
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McGREGORS THEORY X vs. THEORY Y
Theory Y
Theory X

• Work is as natural as play, if the conditions
  are favorable
  
• Self-control is often indispensable in achieving
  organizational goals
  
• The capacity for creativity in solving
  organizational problems is widely distributed in
  the population
  
• Motivation occurs at the social, esteem, and
  self-actualization levels, as well as
  physiological and security levels
  
• People can be self-directed and creative at work
  if properlymotivated

• Work is inherently distasteful to most people
• Most people are not ambitious, have little desire
  for responsi-bility, and prefer to be directed
  
• Most people have little capacity for creativity
  in solving organizational problems
  
• Motivation occurs only at the physiological and
  safety levels (Maslows Hierarchy of Needs)
  
• Most people must be closely controlled and often
  coerced to achieve organizational objectives

Adapted from Douglas McGregor, The Human Side of
Enterprise (NY McGraw-Hill, 1960)
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BLOCKS BUREARCRATIC vs ENTREPRENEURAL CYCLES
BUREAUCRATIC CYCLE THE PATRIARCHAL CONTRACT REQUI
RES submittal to a higher authority the top k
nows best management is autocratic, centralized
control hierarchical values clear lines of
authority denial of self-expression be careful,
safe personal sacrifice for unnamed future reward
s believing the contract is just or seen as di
sloyal MYOPIC SELF-INTEREST success is define
d as obtaining personal rewards -- e.g.,
advancement, gaining more formal authority,
tangible rewards, and corporate jewelry
MANIPULATIVE TACTICS autocratic culture and per
sonal ambition support behaviors which are
personally strategic, cautious, and indirect --
i.e., manipulative based on controlling people
without their knowing it playing the game
DEPENDENCY we feel our survival is in the hands
of someone else our situation depends on what
others decide and how they choose to treat us
ENTREPRENEURIAL CYCLE THE ENTREPRENEURAL CONTRACT
SEES authority as coming from within each perso
n individuals are responsible for their own
actions and for the success of the organization
management focuses the organization on its
purpose and helps create the needed culture and
structure self-expression is necessary to free pe
oples energy, excitement, passion, and
motivation commitment to the commonly held vision
and values forms the basis for responsible
individual action people committing to the organi
zation because they want to, not because they
have to ENLIGHTENED SELF-INTEREST success is d
efined as making a contribution, doing something
important, serving internal partners and external
customers, acting with integrity personal
rewards are of secondary importance
AUTHENTIC TACTICS behavior is direct and honest
information and control are shared people know
where they stand AUTONOMY we feel our survival
is in our own hands we take responsibility for
our own situation and future
Adapted from Peter Block, The Empowered Manager
(San Francisco Josey-Bass, 1991), pp. 21-23
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LIKERTS ORGANIZATIONAL SYSTEMS
SYSTEM Zero(Laissez Faire)
Higher Level(comes from outside org.)
Mixed (but mostly within tech. areas)
Mixed(but mostly on technical
issues) Mixed(often avoided)
Mixed(sometimes not set at
all) Mixed (positive toward job but not o
rg.)Mixed(poor to good)
SYSTEM 1(ExploitativeAutocratic)
SecurityMoney None Down
Only Boss Alone Top Down H
ostile Mediocre
SYSTEM 2(BenevolentAutocratic)
Status Littl
e MostlyDown
Boss Mostly, Some Technical at 1st Level
Top Down Mixed(toward nega
tive) Fair to Good
SYSTEM 3(Consultative) GrowthR
ecognition Some
UpandDown Boss Focused
Asks, Decides, Explains At Top, withCons
ultation Mixed(toward)positive
Good to Excellent
SYSTEM 4(Participative) Identit
yAchievementInfluence Much
Up, Down, and Sideways
Team Based Group Partici
pation Favorable
Excellent
EMPLOYEEMOTIVATION TEAMWORK
COMMUNI-CATION DEC
ISION MAKING GOALS SET
EMPLOYEE ATTITUDES OUTPUT
Adapted from Rensis Likert, The Human
Organization, (New York McGraw-Hill, 1967)
Adapted from Marvin Weisbord, Why
Organizational Development Hasnt Worked (So
Far) in Medical Centers Health Care Management
Review (Spring, 1976).
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LIKERTS FOUR LEADERSHIP PHILOSOPHIES
SYSTEM 4(Participative) Very similar to S3 pe
ople are seen as wanting--even needing-- to do a
good job if they know what needs doing and have
the skills, they will do a good job without very
much external control or direction.
Once the basic hygiene factors (pay, benefits,
working conditions, safety, etc.) are taken care
of in a fair way, then motivation is seen as
coming from within the work it must provide
challenge, growth, recognition, and a sense of
contribution. People are seen as being so capable
that many responsibilities seen in the past as
being solely the work of managers can be
transferred to self-directed work teams who
perform these leadership /management functions as
a natural part of getting the technical/task work
done. Work is seen as complex processes involvi
ng collectives of employees working together to
reach goals teams are responsible for
task/technical, managerial, and leadership
functions. This style is adult-adult in relat
ionship management (and team leaders with
delegated responsibility) is still accountable,
but recognizes it must play a stewardship role in
creating empowered work teams.
SYSTEM 1(Exploitative Autocratic)
People are seen as basically lazy, selfish, dish
onest, and inept they will not work unless
constantly threatened and closely supervised
workers are exploited and have little recourse.
People are motivated by the fear of the loss of
job, pay, or dignity they will be terminated or
punished if they do not comply with managements
directions its my way (the bosses) or the
highway. Knowledge, ability, and creativity ar
e seen as concentrated in management workers are
seen as largely incompetent as a result, there
is no need for management to consult, because
labor has nothing useful to say.
To best control labor, work is divided into smal
l (dumber and dumber) pieces there is a
supervisor for every 6-8 workers, a manager for
each 6-8 supervisors to tightly control, direct,
and punish results in a steep, high hierarchy.
This is a master-slave style it is clear th
at the worker is not important to the
organization if you dont like this deal,
theres a bus leaving every 5 minutes its only
positive aspect is that it is honest about not
caring about the worker fear and mistrust
characterize relationships.
SYSTEM 2(Benevolent Autocratic)
Not much shift from S1 people are still seen as
self-centered and in need of close supervision
because management wants to prevent costly
turnover, however, policies are more benevolent.
In addition to fear/punishment, status is added
as a motivator if workers are mindlessly loyal
and compliant, they are rewarded with the
illusion of advancement S2 organizations usually
have many status layers with each layer having
many pay steps. Knowledge, ability, and creativ
ity are still seen as concentrated in management
some confidence is shown in the technical ability
of workers but organizational decisions are
still made without consultation.
Work is still broken into pieces with management
responsible for the integration of work
critical parent-child relationship between
management and labor (and between each layer in
the steep hierarchy). This style, while m
ore benevolent, is manipulative masters treat
the servants better because good help is hard
to get, but there is still no say for the
servants on management issues mistrust often
characterizes the relationships.
SYSTEM 3(Consultative) A major shift from S1/S
2 people are seen as wanting--even needing-- to
do a good job if they know what needs doing and
have the skills, they will do a good job without
very much external control or direction.
Once the basic hygiene factors (pay, benefits,
working conditions, safety, etc.) are taken care
of in a fair way, then motivation is seen as
coming from within the work it must provide
challenge, growth, recognition, and a sense of
contribution. Knowledge, ability, and creativity
are seen as widely distributed management does
not know all the answers (or even all the
questions) it needs help if the best decisions
for the customer and the organization are to be
found consultation is the norm less hierarchy
is needed. Work is seen as complex processes in
volving networks or employees working together to
reach goals managements responsibility is to
create a culture (values, strategies, structures,
and systems) that allow for maximum
consultation. This style is adult-adult in re
lationship management is still accountable, but
it recognizes that it must consult widely if good
decisions are to be made.
Adapted from Rensis Likert, The Human
Organization, (New York McGraw-Hill, 1967)
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IV-11
System 1
System 2
System 3
System 4
Leadership
Motivation
Team Work
Communication
Decision Making
Goals
Control
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LEADERSHIP PHILOSOPHY
WHY DONT WE CHANGE?
If managers have to choose between giving up
control for the sake of higher performance and
maintaining control knowing performance will be
less, in most cases managers choose to maintain
control. Peter Block, The Empowered Manager P
ositive Political Skills at Work
(San Francisco Jossey-Bass, 1991), p. 46
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LEADERSHIP PHILOSOPHY
WHY DONT WE CHANGE?
People live their lives as prisoners of their
own past. Gareth Morgan, Images of
Organizations (Newbury Park, CA Sage, 1986)
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LEADERSHIP PHILOSOPHY
FOUR TYPES OF MANAGERS ACCORDING TO GES JACK WEL
CH

SHARES THE VALUES
participative management empowerment and support
TYPE 3
TYPE 1
More difficult decision second chance, new locat
ion
Easy, clear decision onward and upward
DOESNT MEET TASK COMMITMENTS
MEETS TASK COMMITMENTS
TYPE 2
TYPE 4
Tough but clear decision OUT
Toughest decision OUT
DOESNT SHARE THE VALUES
autocratic management control and coercion
Adapted from Jack Welchs Letter to
Stockholders, GE Annual Report, January 1991
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LEADERSHIP PHILOSOPHY
THE NATURE OF PEOPLE
100
90
80
70
60
PERCENT OF PEOPLE
50
40
30
20
10
0
1. People who will keep trying to do a good job
(however they define good job) regardless of the
system will go the extra mile will creatively
work around systems blocks
3. People who are watching what happens to
them before deciding would have to both fix
the system and take care of them to get these
to do a good job
2. People who would do a good job if the system
allowed and/or supported will do as good as they
can, but if block-ed, wont go any farther
4. People who wont ever do a good job,
regardless of the system
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LEADERSHIP PHILOSOPHY
WHOS IN CHARGE?
Cooperation Collaborative High Teamwork
Were in Charge
S4
S3
Broad Ownership
Synergy Consistency Standardization
S2
Seen as Empowerment by line/Loss of Power by
mgt.
Seen as Loss of Power by those with autonomy
S3/4
Consistency Standardization
S1
AccountabilityFlexibility
S1/2
S0
Global Perspective
Local Responsiveness
Im in Charge
Youre in Charge
Seen as Loss of Power by HQ/Top mgt.
HQ/Top/Feds Centralized High Control
Field/1st Line/Partners Decentralized
High Autonomy
Seen as Loss of Power by those with autonomy
Adapted and synthesized from Robert W. Keidel,
Triangular Design A New Organizational
Geometry, Academy of Management Executive (Vol.
4, No. 4, 1990), pp. 21-37 and from Rensis
Likert, The Human Organization (New York
McGraw-Hill, 1967)