Leading in the 21st century- New paradigms for a globalizing world

MGMT-E 152

Prof. Michael Pirson

Class 7: October 29

Agenda

Housekeeping Employee Engagement Experiment New model of leadership Next Class

Schedule OverviewSchedule Overview: 1) September 17 - Overview of the course- Setting the stage

PART I- System level challenges 2) September 24 -System level challenge: Environmental and social sustainability 3) October 1 - System level challenge: Environmental sustainability 4) October 8 - System level challenge: Social sustainability 5) October 15 - Meeting System level challenges: Distilling and Applying Frameworks

PART II- Organizational Level 6) October 22 - Organizational level challenges- Decreasing Stakeholder trust 7) October 29 - Organizational level challenges: Employee engagement- managing commitment 8) November 5 - Meeting organizational level challenges: Distilling and applying management frameworks

PART III- Individual Level 9) November 12 - Individual challenges: Managing the self 10) November 19 - Social Entrepreneurship- managing the self, the organization and society 11) December 3 - Discussing Life entrepreneurship- Leading a meaningful life, leading others with purpose

Presentations 12) December 10, Presentations 13) December 17, Presentations

Housekeeping Reminder: 3 objectives in this class:

Understanding the leadership challenges in the 21st century Increasing reflective capacity with regard to Leadership in the 21st century Present you with actionable knowledge on how to deal with leadership

challenges of the 21st century

Another round of thumbs up for this weeks’ reflection assignments!!! Keep it up!

Frameworks (check and follow assignment description) Trust

OTP (Pirson) (questionnaire) Paine’s ethical compass

Engagement 4 Drive Model Gallup Model (questionnaire)

Housekeeping Collecting data for assignment

Start with your own insight Use press coverage Do surveys (especially for final projects)

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Make up assignments

Early class evaluations 12 responses

Too much reading- too little reading Too much group work- too little group work Participation

Employee engagement

I like working at my company. 1 (I strongly disagree) 2 (I disagree) 3 (neutral) 4 (agree) 5 (strongly agree)

Employee engagement-facts

Based on Gallup Management Journal (Gallup.com)

Employee Engagement- Facts USA most strongly among engaged employees (27% of

respondents) and those who were not engaged (59%) or actively disengaged (14%). (See sidebar "The Three Types of Employees.")

GB 19% are "engaged," or loyal, productive, and find their work satisfying; 61% are "not engaged" employees who aren't psychologically committed to their roles and may leave if an opportunity presents itself; and 20% are "actively disengaged,"

The percentage of engaged workers in Great Britain compares more favorably with engagement levels in Germany and France (12% each), Japan (9%), and Singapore (6%), which

Employee Engagement- Facts

Evaluating Employee Engagement- Gallup Q12

Do you know what is expected of you at work? Do you have the materials and equipment you need to do your work right? At work, do you have the opportunity to do what you do best every day? In the last seven days, have you received recognition or praise for doing

good work? Does your supervisor, or someone at work, seem to care about you as a

person? Is there someone at work who encourages your development? At work, do your opinions seem to count? Does the mission/purpose of your company make you feel your job is

important? Are your associates (fellow employees) committed to doing quality work? Do you have a best friend at work? In the last six months, has someone at work talked to you about your

progress? In the last year, have you had opportunities at work to learn and grow?

Results from survey

Why bother?

Why bother?

Gallup research has shown that engaged employees are more productive, Innovative, profitable, safer, create stronger customer relationships, and stay longer with their company

than less engaged employees.

Why bother? firms with the highest percentage of engaged employees

collectively increased operating income 19% and earnings per share 28% year to year.

Those companies with the lowest percentage of engaged employees showed year-to-year declines of 33% in operating income and 11% in earnings per share.

In a related study over a longer time horizon (three years), the firms with the highest levels of employee engagement achieved a 3.7% increase in operating margins, while those with the lowest levels of engagement suffered a drop of 2%.

What can be done?

What can be done?Key Drivers of Employee Commitment

(percent impact of each factor) Trust in senior leadership 14 % Chance to use skills on the job 14% Job security 11% Competitiveness of rewards 11% Quality of company’s products/services 10% Absence of work-related stress 7% Honesty and integrity of company’s business

conduct 7% All other factors 26%

New Leadership Model

Experiment

Humane Leadership

Discussion

Next ClassNovember 5 - Meeting organizational level challenges: Distilling

and applying management frameworks Assignment: (to be completed in teams of 2) Outline the approach of an organization of your choice with regard to

organizational trust and employee engagement. Apply the organizational trust and the employee engagement frameworks and outline recommendations.

Be sure to cover the following issues: Briefly introduce the analysis framework of your choice Examine the current performance of the organization Analyze the reasons for the current performance Prescribe ways to improve the current status And suggest ways to monitor progress over time.

Drop off on Course Website by Tuesday 7 pm