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University of Notre Dame

EMBA 60616

Leadership and Decision-Making

Timothy A. Judge

South Bend – Cincinnati EMBA Program September 1, 2012

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1. September 1 Leading the Dark Side

2. September 28 In-Class Essay

Schedule of Classes by Topic

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Today’s Schedule

10:45-11:30 Exercise: Bestbooks

11:30-12:00 Dark Side Reports, Q&A

12:00-1:15 Break

1:15-1:35 Power and Influence

1:35-1:55 Case: Thomas Green

1:55-2:10 Results: Wonderlic, Cartoon, ARP

2:10-2:20 Preview: Final In-Class Essay

2:20-2:30 Wrap-up

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Class #6

Section 1

Exercise: Bestbooks

BestBooks – Paige Turner Tips for Doing Well

• Score your performance on two dimensions

• Distributive performance: Your individual points

• Integrative performance: Combined dyad points

• Feedback report you received a preliminary

diagnostic but don’t be discouraged

• Vast majority of people improve

• Have fun! Yes, you want to do well, but with

an average deviation of 5 points (95 vs. 90),

this amounts to .00125 points on .00 to 1.00

grading scale (1/8th of 1 point) 5

BestBooks – Paige Turner Tips for Doing Well

• Begin with an integrative mindset

• Focus on issues rather than positions or

personalities

• Share information within ethical bounds

• Discover compatible issues (same preferences)

• Discover differential preferences

• Don’t forget about distributive negotiation –

exercise has integrative and distributive

elements 6

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Bestbooks / Paige Turner Instructions

• Read instructions individually

– 15 minutes only

• Break into dyads

– See next slide for assignments

• Negotiate

– 30 minutes only

• Turn in Final Agreement Settlement Form

– Each person turn in signed pink form

Bestbooks / Paige Turner

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Pair Paige Turner

Agent

Bestbooks

Representative

1 Dean, Brian Aquino, Brad

2 Britenfeld, M.K. Williams, Shawn

3 O’Malley, Tom Leffel, Jason

4 Lawless, Nathan Piech, Ryan

5 Heine, Julie Roth, Melissa

6 Chrnelich, Ben Bussing, Brian

7 Burnette, Tim Huffines, Cody

8 Escobar, Dario Jeffrey, Michelle

9 Bolka, B.J. Vogt, Lou

10 Lange, Louie Piatz, Josh

11 Kryzewski, Vinnie Delano, Kassen

12 Britton, Orsa Stella, David

13 Cafiero, Arthur Michel, Greg

Pair Paige Turner

Agent

Bestbooks

Representative

14 Morris, Doug Brocke, Jason

15 Laidig, Daniel Luft, Scott

16 Bland, Mark Joseph, Jason

17 Gutierrez, Ted Duncan, Beth

18 Kurtich, Christina Price, Aaron

19 Luckey, Travis Sabulsky, Stephen

20 Riethmeier, Pete Mayfield, William

21 Bauer, Brett Noyes, Michael

25 Fergusson, Scott Kyle, Jim

Cincinnati

22 Eichmann, Stephen Shanmugam, M.

23 Padgett, Michael Gleason, Janet

24 Daniels, Ed Yulin, Linda

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Class #6

Section 2

Dark Side Reports

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EMBA 60616: Leadership and Decision-Making

Spring 2012

“Dark Side” Feedback Report Machiavellianism, Narcissism, Self-Monitoring

Mach E. Velli

Professor Timothy A. Judge September 1, 2012

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• Not enough leadership research and

practice focuses on “dark side” of

leadership

– Power

– Influence

– Manipulation

• Why is this the case?

• If great leaders operate without the regard

for power, why do they have so much of it?

The “Dark Side” Importance and Meaning

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• Bright and dark sides are not always

functional and dysfunctional

– Every trait has counter effects

– Examples

• Conscientiousness and adaptation

• Extraversion and impulsivity

• So is our understanding

– Incomplete?

– Idealistic?

The “Dark Side” Importance and Meaning

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• Machiavellianism

– Employment of cunning and duplicity to lead

constituents towards a purpose that affords the

leader usable political and social power

• Narcissism

– “Self-love,” or the belief that one is uniquely

special and entitled to praise and admiration

• Self-monitoring

– Ability and motivation to control self-

presentation

The “Dark Side” Traits

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Dark Side Traits Your Self-Reported Scores

Raw

Score

Population

Norm

Class

Norm

Machiavellianism 2.30 -36.73 -35.11

Narcissism 0.19 -215.18 -218.09

Self-Monitoring 2.26 -174.28 -149.87

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• These do not indicate psychopathology!

• Any other limitations to these results?

• Are there times when we need our dark

side?

The “Dark Side” Interpretation

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Every calling or profession has its own characteristic persona. It

is easy to study these things nowadays, when the photographs

of public personalities so frequently appear in the press. A

certain kind of behaviour is forced on them by the world, and

professional people endeavour to come up to these

expectations. Only, the danger is that they become identical

with their personas-the professor with his text-book, the tenor

with his voice. Then the damage is done; henceforth he lives

exclusively against the background of his own

biography…One could say, with a little exaggeration, that

the persona is that which in reality one is not, but which oneself

as well as others think one is.

-- Carl Jung, 1940

The “Dark Side” Interpretation

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Class #6

Section 3

Power and Influence

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• Several studies of actual influence attempts have studied

this issue

• Analysis of 472 influence attempts from the perspective of

leaders and 345 influence attempts from the perspective of

followers

• Use of various tactics

– rational appeal 80% of influence attempts

– pressure 25% of influence attempts

– inspirational appeal 10% of influence attempts

– consultation 10% of influence attempts

Leadership=Influencing Others What Works and Why

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Consultation Seeks your participation and input; openness

– I asked him to take those he felt most comfortable with

Coalition Seeks aid of others or uses support of others as a reason

– I used my association with a student whose father is well-known

Pressure Uses demands, threats, control, or persistent reminders

– My compensation was tied to the goal they set

Personal appeal Appeals to your feelings of loyalty and friendship

– I even tried asking her to try it just as a favor to me

Legitimating Claiming authority or right; consistent with policies

– It is in the contact that we have a meeting at that time

Leadership=Influencing Others Influence Tactics

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Inspirational appeal

Appealing to values, ideals, and aspirations or by increasing your

confidence that you can do it

– He emphasized that personal interest is the major criteria in making a

choice…This offer reflects your interests

– I convinced them that it would improve their department

– You can take lots of responsibility right away

Rational appeal

Uses logical arguments and factual evidence to persuade

– My computer at home has a faster processor... he convinced me that the

quality of work would be higher

Exchange

Offers an exchange of favors, indicates willingness to reciprocate,

promises your share of benefits

– I would forego my yearly merit raise for the change in hours

Leadership=Influencing Others Influence Tactics (Continued)

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0

1

2

3

4

5

6

7

8

9

0 1 2 3 4 5 6 7 8 9

Use Rank

Pressure

Inspirational appeal

Rational appeal

Transaction

Coalition

Personal appeal

Ingratiation

Leadership=Influencing Others Influence Tactics: What’s Used, What Works

Most used Least used

Most

eff

ect

ive

Least

eff

ect

ive

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• We use least the tactics that work the best

• If power is the accumulation of influence,

how do these results fit with what we know

about the most important bases of power

(expert, referent)

• Does this mean we should only use

inspirational appeals?

• How do these fit with the “dark side”?

Power and Influence Implications

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Class #6

Section 4

Case: Thomas Green

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Class #6

Section 5

Results!

Position Score Position Score

Chemist 31 Foreman 22

Engineer 30 Clerical, General 21

Manager 30 Police, Patrol Officer 21

Administrator 29 Receptionist 21

Computer Programmer 29 Labor, Unskilled 20

Adjuster, Claims 29 Mechanic, Helper 19

Librarian 27 Maintenance 18

Manager Trainee 27 Guard, Security 17

Writer, News 26 Nurse’s Aide 17

Office, General 24 Assembler 16

Sales, General 24 Packer 15

Bank Teller 22 Warehouse Person 15

Clerk, Order 22 Maid 11

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Majo

r Jo

b A

pplica

nt Sco

res

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Class Wonderlic Results Interpretation

• This is one test with nothing at stake

• Class scores far above averages

– Average class score is above 90th percentile

• Measure one important aspect of

intelligence – crystalized intelligence – but

not only (or perhaps only important) aspect

• Intelligence tests are one of the most valid

means of selecting people, but in getting

feedback, do you see why only 10% of

organizations use them?

The Purple Team

14 captions (unlimited-caption option)

Class Cartoon Group Results Runner Up – Most Creative Team

“’All inclusive’ looked different in the brochure…”

From the Purple Team

Class Cartoon Group Results Runner Up – Favorite Quote

And the Winners Are…

The Light Gold Team

9 captions (unlimited-caption option)

Class Cartoon Group Results First Place – Most Creative Team

The Light Gold Team

Class Cartoon Group Results First Place – Most Creative Team

“Carl Doesn’t Taste As Good As He Looked”

“Maybe we should have eaten the fruit first?”

The Pink Team

20 captions (3 caption goal)

Class Cartoon Group Results First Place – Best Single Quote

“Maybe we should have eaten the fruit first?”

From the Pink Team

Class Cartoon Group Results First Place – Best Quote

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Class #6

Section 6

Preview: Final In-Class Essay

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Final In-Class Essay Preparation and Expectations

• Two types of questions

– Application

• Asks you to address an issue based on feedback

– Scenario

• Much like our cases, where you’ll apply course

concepts to problem at hand

• Doing well

– Apply what you’ve learned

– See grading rubric

– See sample questions

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Due Soon! Written Assignments and Peer Evaluation

• Collecting No’s, Personal Development Plan

(PDP), and Reflections Paper

– Please turn in no later than September 21

• Peer Evaluation

– Please complete confidential form sometime

during class this afternoon and turn into me

when finished

• Grades

– I will send you all your reports in PDF form

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Final Thoughts Last Class

• Goals of the course

– Know ourselves better

– Understand others better

– Address our weaknesses and leverage our

strengths (PDP; reflections paper)

• Hopefully, the material and discussions have

been useful in augmenting your own

experiences

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Understanding

YOURSELF Do you know yourself? Do

others know you?

• Personality

• Values

• Attitudes

Understanding

OTHERS Do you understand others? Do

others understand you?

• Personality

• Values

• Attitudes

Deciding/Solving

YOURSELF What decisions do you make?

How do you analyze and solve

problems?

How can you better understand:

• Analytical tools to objectively

evaluate decisions?

• Limits of rational decision-

making?

• Cognitive biases so as to

avoid “blind spots”?

Managing/Leading

OTHERS • How do you lead and follow?

• Are there effective methods

and models of leadership from

which you can learn?

• How well do you understand

the dark side of power and

influence?

Making Decisions

ABOUT OTHERS • How can you make more

effective hiring decisions?

• How can you evaluating

those decisions more

effectively?

FUNDAMENTAL APPLIED

INNER

PRIVATE

SELF

Animus

OUTER

PUBLIC

SELF

Persona

Living Well

YOURSELF • Can you formulate a plan to

improve your ability to live a

happy and productive life?

Contributing to

ORGANIZATION • Do you leverage your skills

effectively?

• How do you cooperate and

conflict with others?

Motivating

OTHERS • Do you use the most effective

means of motivating others?

• Are there ways to improve

your motivations?

MODEL 1: Model of Effectiveness We Will Follow Throughout Course

Deciding/Solving

WITH OTHERS • How can you better under-

stand -- and thus resist where appropriate -- group pressure –

for conformity?

• How do you decide in group?

• How do you make the most of

your group’s resources?

Do you achieve synergy?

1. Leading and managing is art and science • There are principles and methods by which we can lead,

manage, and make decisions more effectively

2. The most under-appreciated skill in effective

managers is analysis • Use metrics and rigorous analysis

3. Personality matters and yet has paradox • Understand yourself and others through knowing your

personality; every bright(dark) side casts a shadow(light)

4. Biases dominate every decision • Learn the biases and how to recognize them in yourself

and in others 39

Learning Objectives The 16 Takeaways: 1–4

5. Individuals often make decisions based on

needlessly limited information • Ensure that you have as full a picture of the ‘conceptual

field’ as possible (it’s the foundation of the house)

6. The average group is not effective • Be a facilitator to get the most out of your group

7. Cooperation is a poor negotiation strategy • The best negotiators hold true to their interests

8. To negotiate effectively, one must first focus on

interests rather than positions (yours and others) • First share information on your interests, and try to find

out others’ interests—expand the pie before dividing it 40

Learning Objectives The 16 Takeaways: 5–8

9. The most important people decisions (e.g., hiring)

are poorly evaluated, if at all

• Evaluate decisions using validity and utility

10. The best predictor of performance is IQ • Hire/promote employees using intelligence tests

11. Good motivators and decision-makers know the

power of framing • In negotiating, motivating, and leading, use framing

12. The most effective leaders are seen as

charismatic and transformational • Learn to be a visionary leader

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Learning Objectives The 16 Takeaways: 9–12

13. The best motivator is setting very difficult goals • Set hard and specific goals for yourself and others

14. The two best influence tactics are the least used • Gain commitment through consultation, inspirational

appeal

15. Far and away, the most important predictor of

job satisfaction is…the work itself • Increase your – and others’ – job satisfaction by focusing

on the intrinsic nature of the work itself

16. We spend too much of our time – and money –

on things that don’t make us happy • Spend your time and resources on what matters most

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Learning Objectives The 16 Takeaways: 13–16

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Final Thoughts Last Class

• I’ll send you all of your preliminary reports

in PDF form

• Our relationship evolves but doesn’t end

with the course

• Always happy to discuss doing research with

your companies

• Please keep in touch!

. . . . . . . .