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1 Table of Contents  Table of Conten ts........................................................................................................ 1  Table of Conten ts........................................................................................................ 1  Table of Conten ts........................................................................................................ 1  Table of Contents........................................................................................................ 1 Introduction ................................................................................................................. 2 Observation ................................................................................................................. 2 Company Profile ....................................................................................................... 2  The Story Inside the Company ................................................................................. 2  Theory Findings ........................................................................................................... 6 Power and Influence ................................................................................................. 6 Power.................................................................................................................... 6 Influence ............................................................................................................... 6 Conflict and Negotiation ...........................................................................................7 Conflict................................................................................................................. 7 Constructive Conflict............................................................................................. 7 Relationship Conflict ............................................................................................. 8 Cultures and Gender Differences in Conflict-Handling Styles................................. 8 Negotiation ........................................................................................................... 9 Leadership ............................................................................................................. 10 Shared Leadership .............................................................................................. 10 Analysis Discussions .................................................................................................. 10  The software program structural changes in project developmen t process ............ 10  The way how a leader dealing with the project disorder ......................................... 11  The way leader dealing with t he male and female members i n a team.................. 12  The negotiation by a leader due to his responsibility to the team ........................... 12  The biggest action made by a leader ......................................................................15 Conclusions and Recommendations .......................................................................... 15 References ................................................................................................................ 16

Leadership Observation

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Table of Contents Table of Contents........................................................................................................1

 Table of Contents........................................................................................................1

 Table of Contents........................................................................................................1

 Table of Contents........................................................................................................1

Introduction ................................................................................................................. 2

Observation ................................................................................................................. 2

Company Profile ....................................................................................................... 2

 The Story Inside the Company ................................................................................. 2

 Theory Findings ........................................................................................................... 6

Power and Influence ................................................................................................. 6Power .................................................................................................................... 6

Influence ............................................................................................................... 6

Conflict and Negotiation ........................................................................................... 7

Conflict ................................................................................................................. 7

Constructive Conflict ............................................................................................. 7

Relationship Conflict ............................................................................................. 8

Cultures and Gender Differences in Conflict-Handling Styles ................................. 8

Negotiation ........................................................................................................... 9

Leadership ............................................................................................................. 10

Shared Leadership .............................................................................................. 10

Analysis Discussions .................................................................................................. 10

 The software program structural changes in project development process ............10

 The way how a leader dealing with the project disorder ......................................... 11

 The way leader dealing with the male and female members in a team .................. 12

 The negotiation by a leader due to his responsibility to the team ........................... 12

 The biggest action made by a leader ...................................................................... 15

Conclusions and Recommendations .......................................................................... 15

References ................................................................................................................ 16

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IntroductionIT Consultant Company (PT. BT) had just created its new software division regarding to its

first winning tender of software project for NHI a harbor corporate. According to this project a

company hired new team development including its team leader.

The new team development and its leader were passing through various situations either in

the bad or good times during the project development. Therefore the case issues inside it are likely

interested to observe, especially about the leader itself.

The leader case observation will adopt several theories in Leadership and Organizational

Behavior subject, whereas the issues are covering about what problems faced by the leader and

how a leader dealing with those kind of problems.

The referenced theories in this leader observation are Power and Influence, Conflict and

  Negotiation, and Leadership. The specific issues to be discussed further are as follows: thesoftware program structural changes in project development process, the way how a leader dealing

with the project disorder, the way leader dealing with the male and female members in a team, the

negotiation by a leader due to his responsibility to the team, and the last discussion is about the biggest action made by a leader.

Observation

Company Profile

PT. BT (BT) is IT Consultant Company located in North Jakarta, DKI Jakarta. The

company was established in around 1980’s. At first, this Company’s main business was in ITInfrastructure / Hardware specialization which running under the Hardware Division. BT has been

successfully growing through this line of business, and it has been running a lot of Government-related projects as its major clients.

Inspired by its success BT interested to enter new other area in IT field, Software

Development. In 2006, BT participated in and won the tender of another Government project, the

 National Harbor of Indonesia (NHI) in out of Jakarta city, which in fact is out of Java Island. The

 project was to develop new application system software for the harbor operational management.

The Story Inside the Company

Along with this new project, BT created new division, the Software Division, and then

recruited many new IT background employees to get involved in the software development team.As a premiere project in this software field, BT did not have any experience in managing the project. Therefore, BT handed the whole things on to the new team, let I say this team as “A

Team” to start the development process. Regarding to the need of additional member in a team, BT

hired a new employee (his name is FR) in the middle of the development process. FR had been previously working in some of other IT Consultant Companies for several years as a programmer 

and a team leader. Since he had much more experience in software development than any other 

members in the A team, FR then was positioned as a team leader.

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Since he joined and being a leader in the A Team, FR sensed that the existing software

 program structure was improperly developed, there were no standard methods and specific rules.

As in the process of software development, the application system should be divided into number of modules and each of which handled by a certain team member, he thought that standard

methods and rules were necessary based on his experience to help in integrating those breaking

modules into one whole application system in the final process.

According to this condition, FR decided to propose the changes in the software program

structure, and started the development from the beginning. After he got the approval to do that, hereshuffled the new software program structure from zero, then created and applied the standard

methods and specific rules what he meant to be there, the other team members must stick and

follow it in working on their jobs. But unfortunately, the conflict began where the other team

members felt offended by all FR did, it was like he did not even show a bit respect and appreciatethe A Team’s effort on what they had developed before. They felt so unfair, moreover when the

superior seemed in the FR’s side and tend to support him. Eventually, it caused most of the A

Team members resigned one by one.

This consequence had created another new task for FR to hire new employees that fit to hisrequirements, because he was responsible to his superior to keep the project going on. After therequired employees collected, he formed new team, let I call it as “B Team”. While the project was

located in remote area out of the city, FR decided to split the team which several members stay in

the office and the rest members were assigned to the site.

This new team formation was being able to run the development process according to the

line of rules made by FR. Initially almost everything was well organized and the communication

amongst the team members was good as well as between a team leader and his team members.However behind any successful project there always had been disasters in the middle of the

development process, moreover when the team facing the urgency to meet the project deadline, it

caused kind of stressful, worried, high tempered, sensitive feeling for the people involved in thedevelopment. Usually in the progress of software development, the flow can move forward and

  backward, because of client requirements can change anytime. That is the complexity in

developing integrated application system software, especially for big and complicated system.

In such cases, FR treated his team too emotionally and quite often he gave instructions to

finish certain work in very short time, and if the result consisted of many mistakes, he got easily

high tempered by straight forward statements or words out of his mouth, and even sometimes hedid it in front of the other team members. This problem was frequently experienced by male

members, whereas FR always tried hard to be more politely to the female members even though

his highly-tempered was still unconsciously shown. Those ways brought many complaints fromthe team members, because it was hard for them to keep focus and concentrate to the job if they

felt too much tension and pressures by their surrounding; the deadline work and their leader’s bad

treatment. FR knew that exactly and admitted it, he also promised then attempting to reduce his behavior although it was seem unavoidable reaction for him when that similar stressful situation

came up.

In the other side, this team replacement and reconstruction of NHI project and still lack of  project management factor has led to delayed time in delivering the project to go live in site. The

company’s expense for project cost was also affected, automatically this time extension needed

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extra cost and extra work for BT to make a new deal in negotiation with NHI as the client. In

effect, BT controlled its project budget tightly in order to keep the NHI project profitable for the

company as expected initially. The new policy focus on the change of compensation system, wherethe B Team was the subject to that change according to the following ones:

• Previous B Team compensation system

o Employee got paid (per month) based on several factors:

Base Salary net salary an employee must get for each month

Incentive Pay based on number of days of employee attendance in amonth, that means if an employee does not come to office on certain

day/s, there is a cut off on his/her incentive payment

Overtime Pay start being calculated after office hour (8.30 – 17.30),which is the overtime at least for 2 hours duration

Transportation and Meal Allowance plus overtime meal

o Other employee’s benefit:

Promised of project bonus that will be given at the end of projectfinalization

•  New B Team compensation system

o Employee got paid (per month) based on several factors:

Base Salary, transportation and meal allowance (plus overtime meal),

 but no Incentive pay, no overtime pay

Company gave an increment on employee’s base salary for about 50%,

due to the elimination of incentive and overtime pay

o Other employee’s benefit:

The project bonus was also eliminated, because the actual profit the

company will get was decreasing and less than what company hasexpected before

This condition led to another new problem such as complaints from the team members toFR as their team leader, they insisted FR to fight for them to be treated equitable. FR took the

complaints seriously and showed his responsibility of his team members by requesting for 

schedule arrangement to conduct a formal meeting with the top management to discuss this new

compensation system policy. FR tried to explain the new policy might bring side effects to histeam members, while the workload and job demand acquire them to work overtime frequently. The

top management assured him that this policy just only for this project which was assumed as the

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first trial-error and less experienced one for the BT itself, so the target is to finish and implement it

to go live on site successfully. It was merely for the BT’s good reputation, even though the project

was still not profitable. By holding this reputation, BT would pursue and convinced to get other new software projects. Afterwards based on the BT’s experience, the project development process

could be measured wisely to get more profitable (beside the client itself) to both BT and the

employees.

Through many those argumentations and negotiations, the result of this meeting was kept

the new compensation system unchanged, and FR was forced to agree with that.

By the time went on, the team members who stayed in the office began to showing their 

 protest through their actions, they were not able to say anything about this new situation. Some of 

them started to come late to the office or they attempted as much as possible to work within theoffice hours (08.30 – 17.30), and many team members even requested to stay at home and do their 

  job remotely from their home, which this one violated one of the BT’s rules (the employees

attendance is a must in doing their duties).

In the other side, other parts of the team members who stayed on site out of the BT office began to feel envy to their colleagues in the BT office, because of the insignificantly total paydifferences between them in the office and others out of the office who have much more workload

to handle.

FR could see this inequity and he was struggling to fight for his team members to betreated fair, then he tried for the second time to negotiate with the top management to give at least

a project bonus to appreciate all the team members’ merit in the project, as it was part of the

employee’s rights based on common employment regulations. Before FR stepped into this secondattempt, he had made two alternative options together with his team members, that is:

1. As the first option, if the request was approved by the top management, the existing

running process kept going on

2. Otherwise, as the second option, FR planned to resign from BT and establish a newsmall corporation /  Perusahaan Terbatas (PT) together with the team members to

continue running other new NHI-related project, while FR had already got channel to

the NHI internal management party, therefore he knew how to deal with it.

The FR’s second trial resulted nothing, the top management did not approve FR proposal,

and still hold the previous principal tightly. Consequently, FR then run the second option, he along

with his team members resigned and started to organize the corporate establishment plan, withinvolving everyone as a leader of the team. The rules can be everyone is the boss or no one is the

 boss. So they share same portion of responsibility in developing the project and also in projectdividend division.

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Theory Findings

 Power and Influence

Power

The capacity of a person, team, or organization to influence others and it exist when one

 party dependent on the other for something of value. The dependent person must also have

countervailing power, some power over the dominant party to maintain the relationship [1].

A model of power within organizations to emerging the power over others:

• Sources of power: Legitimate, Reward, Coercive (these three sources originate from the

 position), whereas Expert, Referent (in contrast originates from within the person)

• Contingencies of power: Substitutability, Centrality, Discretion, Visibility

Expert power is an individual’s or work team unit’s capacity to influence others by

 possessing knowledge or skills that others value. The reason is that employee knowledge

 becomes the means of production and is ultimately outside the control of those who own

the company. And without this control over production, owners are more dependent on

employees to achieve their corporate objectives.

Power contingencies is used to determine whether the source of power translate into real power.

Individual and work team unit are more powerful when they are no substitutable, that is when there

is a lack of alternatives. They reduce substitutability by controlling tasks and knowledge and by

differentiating themselves from competitors.

Influence

Influence is any behavior that attempts to alter someone’s attitudes or behavior [1].

• Types of Influence Tactics in Organizations: Silent Authority, Assertiveness, Information

Control, Coalition Formation, Upward Appeal, Persuasion, Ingratiation and Impression

Management, and Exchange [1].

• The Examples of Some Consequences and Contingencies of Influence Tactics [1]:

o Soft Influence Tactics: friendly persuasion, subtle ingratiation and impressionmanagement

o Hard Influence Tactics: upward appeal and assertiveness

The most appropriate influence tactic depends on the influencer’s power base, whether the

 person being influenced, compared with the influencer is higher, lower, or at the same level in the

organization; and on personal, organizational, and cultural values regarding influence behavior [1].

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To know which of those influence tactics are best is by identifying the three ways that

 people react when others try to influence them [1]:

• Resistance, it occurs when people or work units oppose the behavior desired by the

influencer and consequently refuse, argue, or delay engaging in the behavior 

• Compliance, it occurs when people are motivated to implement the influencer's

request at a minimal level of effort and for purely instrumental reasons. External

sources are necessary to motivate the desired behavior to occur 

• Commitment, it is a strongest form of influence, whereby people identify with the

influencer's request and are highly motivated to implement it even when extrinsic

sources of motivation are no longer present.

Generally people react more favorably to soft tactics than to hard tactics. Soft influence

tactics rely on personal sources of power (expert / referent power). Which tend to build

commitment to the influencer's request. In contrast, rely on position power (legitimate, reward, and

coercion), so they tend to produce compliance or, worse, resistance. Hard tactics also tend to

undermine trust and thus can hurt future relationships.

The most appropriate influence strategy depends on a few contingencies:

• The first most obvious contingency is which sources of power are strongest.

• Whether the person being influenced compared to the influencer is higher, lower or 

at the same level in the organization.

• Based on personal, organizational, and cultural values.

Conflict and Negotiation

Conflict

 A process in which one party perceives that his or her interests are being opposed or 

negatively affected by another party [1].

Constructive Conflict

 A type of conflict in which people focus their discussion on the issue while maintaining respect for people having other points of view [1].

This conflict is called constructive because different positions are encouraged so that ideas

and recommendations can be clarified, redesigned, and tested for logical soundness. In keeping

focused on the issue helps participants reexamine their assumptions and beliefs without triggering

the drive to defend and its associated negative emotions and ego-defense mechanism behaviors.

The team and organization with very low levels of constructive conflict are less effective [1].

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Relationship Conflict

 A type of conflict in which people focus on characteristics of other individuals, rather than

on the issues, as the source of conflict [1].

Relationship conflict focuses on people, because the parties refer to interpersonal

incompatibilities such as “personality clashes” rather than the differences of participants’ opinion

regarding the tasks. Attacking or displaying an aggressive response toward the person triggers

defense mechanisms and becomes less motivated to communicate and share information, making it

more difficult for the parties to discover common ground and ultimately resolve the conflict. The

 participants increasingly rely on more distorted perceptions and this tends to further escalate the

conflict. With this type of conflict, people experience and react to strong emotional responses

during such conflict episodes [1].

In conflict management to separate constructive conflict from relationship conflict, there

are three strategies to minimize the level of relationship conflict during constructive conflict

episodes [1]:

a) Emotional Intelligence. Relationship conflict is less likely to occur or to escalate when

team members have high levels of emotional intelligence. Employees are better able to

regulate their emotions during debate, thus reducing the risk of escalating perceptions of 

interpersonal hostility. Employee view a co-worker’s emotional reaction as valuable

information about that person’s needs and expectations, rather than as a personal attack.

 b) Cohesive team. Relationship conflict is suppressed when the conflict occurs within a highly

cohesive team. The longer people work together, get to know each other, and develop

mutual trust, the more latitude they give each other to show emotions without being  personally offended. Strong cohesion also allows each employee to know about and

anticipate the behaviors and emotions of teammates.

c) Supportive team norms. Relationship conflict will be less likely to occur when the team has

norms that encourage openness, so the team members will learn to appreciate honest

dialogue without personally reacting to any emotional display during the disagreements.

The team with low relationship conflict use humor to maintain positive group emotions,

then offsetting negative feelings team members might develop toward some co-workers

during debate.

Cultures and Gender Differences in Conflict-Handling Styles

According to the theory, men and women also tend to rely on different conflict-handling

styles. Generally, women pay more attention than do men to the relationship between the parties.

Men tend to be more competitive and take a short-term orientation to the relationship. There are

also some influences in conflict handling between those who are from high collectivism culture

and low collectivism culture.

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Meanwhile, there are five types of conflict handling style contingencies and problems: Problem

Solving, Avoiding, Forcing, Yielding, and Compromising [1].

Negotiation

The process whereby two or more conflicting parties attempt to resolve their divergent 

 goals by redefining the terms of their interdependence [1].

Parties do negotiate when they think that discussion can produce a more satisfactory

arrangement for themselves in their exchange of services. Negotiation is evident in the workplace

 because employees work interdependently with each other. They negotiate with their boss, client,

and between co-workers over company policy, work assignments, project deadline, project

standard rules through disputes and agreements.

Successful negotiations occur when the parties adopt a problem-solving in conflict-

handling style, but this way is sometimes costly. The alternatives such any win-lose style (forcing,

yielding, etc) do not produce best solution because the necessary information have not been sharedyet to meet mutually satisfactory solution. The problem-solving style must be adopted when the

mutual trust between the parties has been established.

Problem solving tries to find mutually beneficial solution to the disagreement, known as

win-win orientation. The information resources are expandable if the parties work together to find

a creative solution, therefore sharing information is important in this problem solving style [1].

The four most important negotiator skills are as follows [1]:

• Setting goals: putting initial offer, setting target, resistance points

• Gathering information: The two parties spend time listening closely each other to

information details conveyed by each party

• Communicating effectively: maintain effective relationships between the parties, minimize

socioemotional conflict, focusing on issues rather than people, avoid irritating statements,

master of persuasion, must structure the content of their message

• Making concessions: concessions move the parties toward agreement and it should be

under certain conditions, which are:

◦ concessions need to be labeled to the other party, because concession is costly for one

 party and beneficial for other party

◦ concessions should be accompanied by an expectation that other party should

reciprocate

◦ concessions should be given in installments, not all at once

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The best strategy is to be moderately tough and give just enough concessions to

communicate sincerity and motivation to resolve the conflict. But being too tough can undermine

relations between the parties, so in giving too many concessions implies weakness and encourages

other party to use power and resistance [1].

Effective negotiation usually use Exchange influence activities which promising benefits or resources in exchange for the target person's compliance.

 Leadership

Shared Leadership

The view that leadership is broadly distributed, rather than assigned to one person, such

that people within the team and organization lead each other [1].

Analysis Discussions

The following are the case issues I would like to analyze further based on the theory provided:

The software program structural changes in project development process

The software program structure changes and development reshuffled from the beginning

which made by FR without compromising first with other existing A Team members.

FR proposed the software program structure changes to his superior and he got the approval,

FR used power and influence to his superior to assure what he was going to do was right and can

 be accounted and relied on to deliver the best product. His superior gives fully trust to FR and

supporting what he wanted to do. FR have strong expert power and non substitutable contingency

of his power, regarding to FR's skill, knowledge and experiences in the related project field and

also hard to find another person fit to the job requirements at that time. Whereas BT had not

enough experience in this premiere software project, so BT fully depends to FR's direction. Other 

than that, FR also use soft influence tactic, that is friendly persuasion through his expertise plus FR 

was using logical arguments, factual evidence, and emotional appeals to influence and convince his

superior (which was in higher level position) of the value of his request. The way a superior reacts

to FR's request showing a Commitment and was highly motivated to approve the change in

software program development structure with less extrinsic sources of motivation.

In this case, FR might have a positive aim to deliver the best product by changing the

software program structure standards and rules (as the source of issue in constructive conflict), but

the way he did brought to disagreement which create such a constructive conflict in the team

 because he did that without asking the team’s agreement and consideration first, it was only based

on his superior’s approval alone (as the source of issue in relationship conflict), it was obvious that

FR was unethical and he desired quick solution. As a leader, FR adopted a Forcing Conflict-

Handling-Style where his team must follow those new standards / rules he had created. This

conflict had high risk of relationship conflict in the A Team and affecting bad long-term relations

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which indicated by the escalated feeling of offended and unfair in the A Team members (due to

their previous efforts likely not appreciated), until they finally decided to resign from BT.

According to the case, there still lack of emotionally intelligence, cohesive team, and

supportive team norms in the A Team. So to reduce the relationship conflict during the

constructive conflict, those three strategies should be applied to manage the conflict:

• FR may share his idea on the project, but he was supposed to discuss first internally in the

team before brought it up front to his superior. If the team agreed then FR could proceed to

actualize his idea, otherwise FR and the team must look for other solution that fit to all.

This showing respect exists in the A Team, they also would be more supportive and

cooperative to their team leader (FR) and automatically such way could keep the A Team

solid and build trust each other, it is good for long-term relations and increasing future

 problem solving.

This case is also implying discretion contingency of power (the freedom to exercise judgment, to make decisions without receiving permission from else others). Consider the position

of FR as a team leader, it seemed that he had legitimate, reward, and coercive power over the A

team members. He become more powerful because his high level of project and team control

delegated by his superior made him having plenty of discretion in his jobs.

The way how a leader dealing with the project disorder 

FR treated his team too emotionally in dealing with project user requirements frequent

changing, project deadline, project complexity, and the mistakes in works done by the members.

The frequent changes in project user requirements, urgency to meet project deadline, acomplexity in process, and the work mistakes made by the members (as the source of constructive

conflict) may created stressful situation in work environment. If FR treated his team (B Team) too

emotionally and easily high tempered in dealing with those things (as the source of issue in

relationship conflict), it would not help the situation better, in fact it just caused the members feel

worse, could not focus and concentrate to their works, high level of anxiety, and stressful.

Such way indicated that FR use Forcing Conflict-Handling Style and he typically has a

win-lose orientation, but consequently this style relies on some of the hard influence tactics,

 particularly upward appeal and assertiveness to get his own way. FR also seemed had legitimate,

reward, and coercive power over the B team members.

In order to minimize the relationship conflict during the constructive conflict happened in

B team, there should be emotionally intelligence, cohesive team, and supportive team norms exist

to be managed well. The team members will be able to do the job well, and could be more

responsive as well as more concentration toward their jobs, if they feel these following with their 

work environment:

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• Comfort: they love their jobs, the members get to know each other closely, building

mutual trust, helping each other when encounter difficulties, understanding, learning

not easily get into personally if problem occurs.

• Secured: nobody threatens each other, not treated badly, leader willing to change his

 bad behavior and characteristics towards his team.

• Relaxed: open-minded leader, the members can be honest about their feelings, chances

to give feedback to the leaders, allowed to have flexible working hours with a target.

• Refreshed: given enough off-time, encouraged to have a balanced-life, involved in

social event conducted by company.

In the end, these are done to maintain sustainable good relations in the team and delivering

the best software product to the client.

The way leader dealing with the male and female members in a team

FR usually treated male members with forces in stricter way or rude, whereas he always

tried hard to give the female members more flexibility and with much more compromising in

conveying the job duties.

Based on the case observation in this part, since the female members tend to adopt a

compromising in business settings and are more willing to compromise to protect the relationship,

so in return, FR as their team leader try and learn to do the same thing in treating them in order to

get the job done, because he was concern and realize that women have more sensitive feeling than

men.

Compromising involved when the parties have equal power, time pressure exists for 

resolving the conflict, and the parties lack trust and openness for problem solving. Then this style

will results in suboptimal solution when mutual gains are possible [1].

In contrast, men who are especially in low collectivism cultures are more likely to use the

forcing approach to conflict handling. What I mean here is, FR was a typical person such another 

technical guy who has been living mostly in technical area which lack of socially collectivism.

Forcing has preferred common style when the male members treated as if they have a deep

conviction about their position, and seeing their leader’s behavior is unethical. Then the disputerequires a quick solution. This style has highest risk of relationship conflict, may damage long-

term relations, reducing future problem solving [1].

The negotiation by a leader due to his responsibility to the team

FR showed his responsibility of his team members by attempting to conduct negotiation

with the Top Management twice, because he wanted his team being treated fairly.

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The negotiation conducted in this case which involving FR and the top management due to

B Team new compensation system policy, was implying the four most important skills, such as:

◦ Setting goals:

▪ FR:

• Putting initial offer  accelerating the project development to go live within

next 7 until 12 months.

• Setting target to finish the project within 7 months, FR needed to recruit new

employees to the B Team. Then the overtime, incentive pay, and project bonus

should not be eliminated.

• Resistance points the overtime pay and project bonus should be remained,

the earliest time project would be go live cannot be less than 7 months

▪ BT Top Management:

• Putting initial offer  new base salary increased by 50 % (plus transportation

and meal allowance).

• Setting target temporarily eliminated the incentive pay and overtime pay,

and also project bonus (in B Team members). The project must be able to be

implemented on site in 6 months later.

• Resistance points whatever matters it would take, this project should keep a

company’s good reputation in order to get client trust and obtain the other new

software projects in the future.

◦ Gathering information:

▪ Top Management spent time listening closely to information details conveyed by

FR, such as:

• FR explained the new policy could bring side effects to his team members:

◦Coming late to the office

◦ The employees attempted to working within the office hours (08.30 – 

17.30)

◦ The employees requested to do their job remotely from their home

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• FR informed that the workload and job demand acquire his team members to

work overtime frequently

• FR suggested that all his team’s contribution should be rewarded suitably. The

new compensation system based on fix-pay in basic salary did not motivate his

team’s performance

▪ FR spent time listening closely to information details conveyed by the Top

Management, such as:

▪ Top Management forecasted that this premiere project was unlikely profitable.

Therefore company should control its budget carefully regarding to this project.

Top Management found that fixed-pay base is the best solution at this moment.

▪ Company really need to keep its good reputation, to get another prospect software

 project tenders.

▪ If the project profitable, BT would be back to using the previous compensation

system

◦ Communicating effectively: maintain effective relationships between the parties,

minimize socioemotional conflict, focusing on issues rather than people, avoid

irritating statements, master of persuasion, must structure the content of their message

◦ Making concessions: concessions move the parties toward agreement and it should be

under certain conditions, which are:

▪ concessions need to be labeled to the other party, because concession is costly for 

one party and beneficial for other party

▪ concessions should be accompanied by an expectation that other party should

reciprocate

▪ concessions should be given in installments, not all at once

However, this negotiation result was the new compensation system kept being applied in

this project.

In the second negotiation with the Top Management, FR preparing other alternative

strategies if the negotiation failed, that is FR with the team was planning to resign from BT and

organize their own new corporate establishment.

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The biggest action made by a leader 

The biggest action of what FR has done, that is FR and the B Team members established

their own new corporate with involving everyone as a leader of the team.

Shared leadership flourishes in organization where the formal leader (FR) is willing to

delegate power and encourage employees to take initiative and risks without fear of failure. Shared

leadership also calls a collaborative rather than internally competitive. Shared leadership lacks of 

formal authority, it operates best when employees learn to influence others through their 

enthusiasm, logical analysis, and involvement in their idea or vision [1].

This shows that there is no positional power in a team, where everyone can share an idea

and vision that others to follow and respect, they also have same right and decision power. In a

short the team itself is the boss, they will encourage the team to get the best and will not let the

team down.

Meanwhile, the consequence by sharing same portion of project dividend division mayresult to if the project was not profitable, they would not get paid at all.

Conclusions and RecommendationsBased on the several theories in Leadership and Organizational Behavior subject, which

were applied in the problem issues faced by FR can help to identify and analyze how FR dealt with

those problem issues.

The sources of power such as legitimate, reward and coercive will be suitable used by a

leader position, whereas expert, referent will be suitable used by the quality within a leader. The

contingencies of power to determine whether the source of power translate into real power.Individual and work team unit are more powerful when they are no substitutable by controlling

tasks and knowledge to differentiate themselves from competitors.

The most appropriate influence tactic depends on the influencer’s power base, whether the

 person being influenced, compared with the influencer is higher, lower, or at the same level in the

organization; and on personal, organizational, and cultural values regarding influence behavior.

Generally people react more favorably to soft tactics than to hard tactics. Soft influence tactics rely

on personal sources of power (expert / referent power). Which tend to build commitment to the

influencer's request. In contrast, rely on position power (legitimate, reward, and coercion), so they

tend to produce compliance or, worse, resistance. Hard tactics also tend to undermine trust andthus can hurt future relationships.

There are two types of conflict, that is constructive and relationship conflict. Constructive

conflict focuses on the issue to deal with, whereas relationship conflict focuses on the personality

of the parties involved in the conflict. The best conflict management should consider about the

emotional intelligence, cohesive team, and supportive team norms. In the best practices, it should

encourage constructive conflict and minimize relationship conflict, even though these two types of 

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conflict separation is not that easy. In other words, any attempt to engage in constructive conflict,

no matter how calmly and rationally, may still sow the seeds of relationship conflict. Generally,

women pay more attention than do men to the relationship between the parties. Men tend to be

more competitive and take a short-term orientation to the relationship.

Successful negotiations occur when the parties adopt a problem-solving in conflict-handling style, but this way is sometimes costly. The four most important negotiator skills are

setting goals, gathering information, communicating effectively, making concessions. Effective

negotiation usually use Exchange influence activities which promising benefits or resources in

exchange for the target person's compliance.

Shared leadership is the view that leadership is broadly distributed, rather than assigned to

one person, such that people within the team and organization lead each other.

FR can manage well on his duties and has high level of responsibility to his team toward

the top management, yet he still had poor ability in manage the people itself. It was clearly showedthrough the problems occurred in the software program structural changes in project development

 process, the way how FR dealing with the project disorder, the way FR dealing with the male and

female members in a team, the negotiation by FR due to his responsibility to the team, and the last

is in the biggest action made by FR.

References[1]. MacShane/Von Glinow, “Organizational Behavior”, 5, McGraw Hill, 2010