14.12.14

Chapter IV: STRATEGY ANALYSIS


MANAGERIAL GRID
Our Vision
Grid is a world authority on human behavior in organizations.
We are the leader in developing outstanding
relationships that drive exceptional performance.
Grid delivers The Power to Change.


Our Objectives
  • To deliver The Power to Change by facilitating productive and fulfilling organization relationships that make a difference in the lives of millions of people around the world.
  • To provide return, opportunity, and recognition to Associates and Staff.
  • To each enjoy the benefits of personal challenge, growth, fun, and pride in our work.
  • As a byproduct, to produce a superior financial return for reinvestment growth and a value return to investors.
An organization culture characterized by:
  • Commitment
  • Positive change and innovation
  • Open, honest communication
  • A "what's right" rather than a "who's right" attitude
  • Using conflict situations as positive sources of creative energy
  • High standards, accountability, critique, and continuous improvement

Blake & Mouton’s Grid Theory

After Ralph Stogdill’s pivotal article in 1948, leadership studies shifted from a focus on what a leader “has”—often thought to be inborn traits, to what a leader “does”—or the style and behavioral functions of leaders.  Based on the findings of the University of Michigan and Ohio State studies which emphasized task- and relations-oriented behaviors, Blake and Mouton (1964) built a managerial grid—also published as a leadership grid—that integrated a high concern for production with a high concern for people as the one best way to achieve effective leadership.   A leader’s answers to statements about management assumptions are plotted on a Managerial Grid, with concern for people varying from 1 to 9 on the vertical axis, and concern for production varying from 1 to 9 on the horizontal axis.  The Grid is still used in leadership training sessions today.



The following five basic cluster styles result from the interaction of task- and relations-oriented responses: 
1.   Authority-Obedience Management (high production; low people).  The leader’s main concern is in accomplishing the task in the most efficient way possible.  A high concern for production is combined with minimum concern for the people.  This leader dictates what should be done.
2.    Country Club Management (high people; low production). The leader shows minimum concern for production and high concern for people.  This leader focuses on making the people feel good, even if it ends in slower production or not achieving results.
3.     Impoverished Management (low people; low production).  The leader has minimum concern for both people and production.  This leader does just enough to keep his or her job. 
4.    Organization Man (medium people; medium production)The leader goes along with the general flow of the organization.  This leader is happy with the status quo.
5.    Team Management (high people; high production)The leader integrates a high concern for people as well as for production.  This leader attempts to meet organizational goals through the participation, involvement, and commitment of all the members in the organization.  Synergistic integration of high concern for both people and production is the key to greatest effectiveness.  However, without openness, trust, respect, even confrontation to resolve conflict as well as mutual development and change, this apparent 9,9 orientation can take the form of paternalism.  Likewise, this theory allows for leaders to masquerade their behaviors with a back-up style, as some opportunistic leaders do. 
Managerial Grid theory recommends optimum leadership behavior—team management.  A study of 731 managers replicated the original findings that 9,9 –oriented managers from a variety of companies were more likely to advance in their careers (J. Hall, 1976).  However, later studies have not consistently linked the team management orientation to effective leadership in every situation.  Therefore, situational theories have attempted to explain the contingencies that seem to moderate the effectiveness of the leader’s behavior.
MANAGERIAL GRID
Robert R. Blake and Anne Adams McCanse1 refined the Leadership Grid® which identified various types of managerial leadership based on concern for production coupled with concern for people. While they consider the “team management” style of leadership to be ideal, they recognize that it may be difficult to implement in some work situations. Effective managers have great concern for both people and production. They work to motivate employees to reach their highest levels of accomplishment. They are flexible and responsive to change, and they understand the need to change.



CONTINGENCY THEORY
Fred Fiedler2 developed a contingency or situational theory of leadership. Fiedler postulates that three important situational dimensions are assumed to influence the leader’s effectiveness. They are:
Leader-member relations: the degree of confidence the subordinates have in the leader. It also includes the loyalty shown the leader and the leader’s attractiveness.
Task structure: the degree to which the followers’ jobs are routine as contrasted with non routine.
Position power: the power inherent in the leadership position. It includes the rewards and punishments typically associated with the position, the leader’s formal authority (based on ranking in the managerial hierarchy), and the support that the leader receives from supervisors and the overall organization.
PATH-GOAL THEORY
The path-goal theory postulates that the most successful leaders are those who increase subordinate motivation by charting out and clarifying the paths to high performance. According to Robert House’s path-goal theory,3 effective leaders:
• Motivate their followers to achieve group and organizational goals.
• Make sure that they have control over outcomes their subordinates desire.
• Reward subordinates for performing at a high level or achieving their work goals by giving them desired outcomes.
• Raise their subordinates’ beliefs about their ability to achieve their work goals and perform at a high level.
• Take into account their subordinates’ characteristics and the type of work they do.
LEADER-STYLE THEORY
The Vroom and Yetton Model4 describes the different ways leaders can make decisions and guides leaders in determining the extent to which subordinates should participate in decision making. The expanded version of their model, the “Vroom, Yetton, Jago Model,” holds that 
(1) organizational decisions should be of the highest quality and
(2) subordinates should accept and be committed to organizational decisions that are made. The model presents methods for determining the appropriateness of leader style.
HERSEY AND BLANCHARD THEORY
Paul Hersey and Kenneth H. Blanchard5 (a co-author of the One Minute Manager) identified a three-dimensional approach for assessing leadership effectiveness:
• Leaders exhibit task behavior (the extent to which leaders are likely to organize and define the roles of followers and direct the work) and relationship behavior (the extent to which leaders are likely to be supportive, encouraging, and the like).
• The effectiveness of the leader depends on how his or her leadership style interrelates with the situation.
• The willingness and ability (readiness) of an employee to do a particular task is an important situational factor.
* This approach is easy to understand, offers suggestions for changing leadership style, and shows leaders what to do and when to do it. It focuses on the need for adaptability (the degree to which the leader is able to vary his or her style appropriately to the readiness level of a follower in a given situation).
TRANSFORMATIONAL LEADERSHIP
According to Bernard Bass,6 transformational leadership occurs when a leader transforms, or changes, his or her followers in three important ways that together result in followers trusting the leader, performing behaviors that contribute to the achievement of organizational goals, and being motivated to perform at a high level.
Transformational leaders:
• Increase subordinates’ awareness of the importance of their tasks and the importance of performing well.
• Make subordinates aware of their needs for personal growth, development, and accomplishment.
• Motivate their subordinates to work for the good of the organization rather than exclusively for their own personal gain or benefit.
Building on Bass’s contributions, Tichy and Devanna identified the characteristics of transformational leaders as follows:
• They identify themselves as change agents.
• They are courageous individuals.
• They believe in people.
• They are value-driven.
• They are lifelong learners.
• They have the ability to deal with complexity.

• They are visionaries.

Chapter II CORPORATE STRATEGY

Our principles: We recognize that we must integrate our business values and operations to meet the expectations of our stakeholders. They ...