Leadership and work on Processes
How do executives affect their respective organizations? This interrogate has been asked by many top researchers in the field of leadership. Hambrick (2007) believes those leaders within the upper echelons behave on the foundation of their personal views and comprehension of "strategic situations", as well as their cultural values, personal experiences and private personalities. This has been the basis of the upper echelon law for many years, which was advanced on the principle of bounded rationality (Cyert & March, 1963; March & Simon, 1958). However, regardless of these types of utterly involved situations and "uncertain situations" (Mischel, 1977), leaders within the upper echelon of an society have exact processes straight through which they can affect and turn an institution.
Leadership and work on Processes
Specifically, six affect processes allow leaders to shape the strategic direction and performance of the organization. Starting with direct decisions, leaders have the capability to shape the choices their followers have based solely on the operate they have of the foresight and mission of the society (Nahavandi, 2006). These two variables (i.e., foresight and mission) thus affect the culture of the custom by clearly focusing on what the society deems prominent and considerable (Nahavandi, 2006). In expanding to the capability for leaders to affect the vision, mission and strategy of an custom - upper echelon leaders have a direct connection with management, which plays a vital role in shaping (or re-shaping) strategy, dictating decision making and setting the atmosphere or buildings of the society (Miller and Droge, 1993; Nahavandi, 2006). Leaders resolve the organizational buildings straight through the "direct decisions" of variables that affect the buildings or indirectly straight through the habitancy they affect (Nahavandi, 2006). As a fictitious example, Stanley Wang of Acme Toys joined the enterprise just prior to the founder's retirement. The founder, James Green, was forced to make a direct decision as to whether or not to make Stanley the new Chief menagerial Officer (Ceo) of the company. This decision would directly impact the organizational buildings and affect the culture of the society based on Stanley's personal values and experience.
The allocation of resources is also other way upper echelon leaders have considerable impact to an society (Schein, 2004). These leaders are the top decision makers on the allocation of resources (i.e., human, technology, money, etc.) to both individuals and organizational units (Nahavandi, 2006). For example, a Ceo may want to push the sale of a series of new products, so the Ceo may dedicate a large portion of the ample allocation to the sales and marketing enterprise units and pull funding from other enterprise units which are of lesser concern. In this example, the allocation of resources supports exact objectives (i.e., mission) in support of corporate strategy and creates a buildings that enables the aspired outcomes (Nahavandi, 2006; Miller, 1987).
In expanding to direct decisions and the allocation of resources, repaymen systems (formal and informal) also have a considerable impact on the culture of an custom or its employees (Schein, 2004; Nahavandi, 2006). Most of us are familiar with this type of behavior in the form of monetary incentives when we cleave or conform to exact behavioral standards and/or perform goals that reflect the mission of the organization. For example, an worker may receive a 10% bonus if he/she obtains a exact sales wage or gross margin target of a product or service.
However, repaymen systems are not only exiguous to monetary gain, but also straight through the choice and promotion of other leaders (Nahavandi, 2006). Those who cleave and fit the organizational culture and structure, as well as meet private goals and objectives are much more likely to be promoted to top leadership positions - as opposed to those who do not (Nahavandi, 2006). This process can be true for approximately any situation; those who plainly fit well into an organization's mission and culture are more apt to be excellent and rewarded in some fashion.
Both of these affect processes can be seen over the board in our example scenarios. Again using Acme Toys as an example, Stanley Wang was rewarded significantly by his boss, James Green, by giving him all the company's high profile projects. He was then given every inherent award the enterprise had to offer; thus justifying his future choice for Ceo.
According to Nahavandi (2006) while rewarding employees encourages exact "behaviors and decisions" that fall in line with the culture of the organization, leaders who act as role models and enact standards for decision making have a greater impact to the organization. For example, an upper echelon leader may ask their top sales managers to produce a strategic sales plan that will perform the goals and objectives of the organization. Although, he does not dictate how they perform those objectives, he can be assured they will perform the desired outcome by setting decision making standards and clear guidelines.
An supplementary way leaders affect organizations is straight through their own behavior or role modeling (Nahavandi, 2006; Schein, 2004). A leader who is passionate about customer assistance will focus on this passion in data that is transferred to his or her employees. This can also be shown in terms of ethics, and how a leader communicates and expects employees to behave. This might be communicated straight through the foresight and/or mission or straight through regular transportation to employees. For example, as President of Uniform Data Link, Leslie Marks made it a point to come to be a role model for her employees. She moved her office from the third floor to the first floor to show that everyone was equal and your title within the enterprise does not dictate the level of significance you have. She ordinarily encouraged everyone to share ideas and worked directly with engineers instead of working straight through layers of management. Leslie also reinforced her values of comfort in the workplace by arrival to work in jeans approximately every day.
Whether it's direct decisions, rewards, role modeling or the allocation of resources - leaders have many affect processes that impact their organizations (Nahavandi, 2006). By utilizing these processes, upper echelon leaders essentially originate a mirror image of their own personal style, values, preferences and experience.
References
Cyert, R. M., & March, J. (1963). A behavioral law of the firm. Upper Saddle River, Nj: Prentice Hall.
Hambrick, D. C. (2007). Upper echelons theory: An update. Academy of supervision retell , 32 (2), 334-343.
March, J. G., & Simon, H. A. (1958). Organizations. New York: Wiley.
Miller, D. (1987). The genesis of configuration. Academy of supervision retell , 12, 686-701.
Miller, D., & Droge, C. (1986). Psychological and customary determinants of structure. menagerial science regular , 31 (4), 539-560.
Mischel, W. (1977). The interaction of someone and situation. In D. Magnusson, & N. S. Endler (Eds.), Personality at the crossroads: Current issues in interactional science of mind (pp. 217-247). Hillsdale, Nj: Lawrence Erlbaum Associates.
Nahavandi, A. (2006). The art and science of leadership. Upper Saddle River, Nj: Prentice Hall.
Schein, E. (2004). 2004. San Francisco: Jossey-Bass.
Schein, E. H. (1983). The role of the founder in creating organizational culture. Organizational dynamics , 12 (1), 13-28.
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