LBDM - Leadership and Behavioural Decision Making (BKULHMA83A)
Institution
Katholieke Universiteit Leuven (KU Leuven)
This is a personal summary from the course LBDM - Leadership & Behavioural Decision Making, given by Prof. Lieven Brebels and Nicolas Bastardoz. It encompasses the content seen during the classes and powerpoints, videos, additional readings & cases and my personal notes.
LBDM - Leadership and Behavioural Decision Making (BKULHMA83A)
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LEADERSHIP &
BEHAVIOURAL DECISION
MAKING
L. Brebels & N. Bastardoz
MBA 2023-2024
Charlotte De Keukelaere
[E-mailadres]
,MBA ’23-’24 Prof. L. Brebels & N. Bastardoz
1 INHOUDSOPGAVE
Introduction To Leadership ............................................................................................................................. 7
1 Definitions .............................................................................................................................................. 7
1.1 Leadership & leaders ............................................................................................................................. 7
1.2 Difference between a leader and manager ........................................................................................... 7
1.3 Leaders: born or made? ......................................................................................................................... 7
1.4 Knowledge about leadership ................................................................................................................. 8
2 Leader development ............................................................................................................................... 8
2.1 Leadership training ................................................................................................................................ 8
2.1.1 Focus on knowledges, skills & attitudes........................................................................................ 8
2.1.2 Five recommendations ................................................................................................................. 9
2.2 Leadership development ........................................................................................................................ 9
2.2.1 Focus on behaviors, identity & self-views ......................................................................................... 9
2.2.2 Five recommendations ...................................................................................................................... 9
2.3 Developing as a leader ......................................................................................................................... 10
2.3.1 Information rule of 70 – 20 – 10...................................................................................................... 10
5 Challenge & support ............................................................................................................................. 16
5.1 Practice ................................................................................................................................................ 16
6 Key insights of introduction to leadership ............................................................................................. 16
1 What are traits (Individual Preferences) ............................................................................................... 17
1.1 History of trait research ....................................................................................................................... 17
1.2 List of traits associated with leadership (The Big 5)............................................................................. 18
3 Intelligence ........................................................................................................................................... 21
3.1 Too high on a desirable factor ............................................................................................................. 22
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,MBA ’23-’24 Prof. L. Brebels & N. Bastardoz
4 Personal development .......................................................................................................................... 23
5 Context................................................................................................................................................. 24
5.1 Milgram’s Experiment.......................................................................................................................... 24
5.2 Personal development ......................................................................................................................... 24
6 Behaviours ........................................................................................................................................... 25
6.1 From traits to behaviours: Integrated/Process Model ......................................................................... 25
6.1.1 Leader Behaviour ........................................................................................................................ 26
1 Context................................................................................................................................................. 34
1.1 Contemporary perspective on context ................................................................................................. 34
1.2 Crisis as a moderator ........................................................................................................................... 35
1.3 Hierarchical distance as a moderator .................................................................................................. 35
1.4 Context as a shaper of leadership behavior ......................................................................................... 36
2 Leadership categorization theory SUPER!!!........................................................................................ 36
2.1 Explanation (LCT) ................................................................................................................................. 37
2.2 Managerial implications of contextual theories .................................................................................. 38
3 Culture ................................................................................................................................................. 39
3.1.1 About Culture .............................................................................................................................. 39
3.2 Culture as a contextual moderator ...................................................................................................... 39
3.3 Culture as a filtering mechanism ......................................................................................................... 40
3.4 Hofstede Cultural Values ..................................................................................................................... 41
3.4.1 Power distance............................................................................................................................ 41
3.4.2 Individualism ............................................................................................................................... 41
3.4.3 Masculinity / Feminity ................................................................................................................ 41
3.5 Hofstede Example: Belgium ................................................................................................................. 42
3.6 GLOBE: Universally positive leadership attributes ............................................................................... 42
6 Conclusion ............................................................................................................................................ 47
6.1.1 Final words about context .......................................................................................................... 47
6.1.2 Final words about cross-cultural awareness ............................................................................... 47
6.1.3 Key of context & culture ............................................................................................................. 47
Group Decision Making ................................................................................................................................. 55
1 Scientific evidence on what determines student group performance .................................................... 55
1.1.1 Correlation Matrix ....................................................................................................................... 55
1.1.2 Research Model .......................................................................................................................... 56
1.2 Theory and hypotheses (1) ................................................................................................................... 56
1.2.1 Team potency results .................................................................................................................. 56
1.3 Appraising this evidence ...................................................................................................................... 57
1 Social Identity ....................................................................................................................................... 62
Pre-Class Video ............................................................................................................................................. 62
1.1 A social identity theory of leadership ................................................................................................... 63
1.1.1 Followers’ group identification (moderator) .............................................................................. 64
1.1.2 Group prototypicality (as an independent variable) ................................................................... 65
1.1.3 Managerial implications .............................................................................................................. 66
2 Followership ......................................................................................................................................... 67
When did we talk about or discuss followers? ............................................................................................. 67
2.1 Can there be leaders without followers? ............................................................................................. 67
2.2 Perspectives on followership................................................................................................................ 68
2.3 Why follow? ......................................................................................................................................... 69
“Never Follow” ............................................................................................................................................. 69
2.4 Bad followership .................................................................................................................................. 69
Power & Ethics in Leadership ........................................................................................................................ 70
Behavioural decision making ........................................................................................................................ 72
1 History of BDM ..................................................................................................................................... 72
2 Why study ‘Econs’? ............................................................................................................................... 74
2.1 Econ-human conversation ................................................................................................................... 74
2.2 Behavioural Economics (BE) is about how much humans differ from ‘econs’...................................... 75
2.3 2008: BE steps up from pure academia ............................................................................................... 75
2.4 2011: Dual processing further popularized .......................................................................................... 75
3 Expected Utility Theory ........................................................................................................................ 76
4 Prospect theory: the value function ...................................................................................................... 76
6 Emotions and affective forecasting ....................................................................................................... 79
6.1 Emotion................................................................................................................................................ 79
A. Valence ..................................................................................................................................................... 79
B. Intensity .................................................................................................................................................... 79
C. Duration.................................................................................................................................................... 80
6.2 Forecasting VS Experiencing ................................................................................................................ 80
7 Cognitive Dissonance ............................................................................................................................ 81
7.1 Zappos – Online Company ................................................................................................................... 81
7.2 Upside and downside to cognitive dissonance..................................................................................... 81
From the origins of morality toward contemporary organizational justice .................................................... 82
1 Introduction ......................................................................................................................................... 82
1.1 Disconfirming the Veneer Theory......................................................................................................... 82
1.2 What is evolutionary unique to humans? ............................................................................................ 83
This structure of outcome interdependence continues into contemporary organizational life .................. 83
The impact of framing and reputation on human decision-making in interdependent situations .............. 83
How do we succesfully cooperate with strangers? ...................................................................................... 84
2 Understanding fairness in the workplace .............................................................................................. 84
2.1 Why people value fairness in the workplace........................................................................................ 85
2.2 Frequent Problem ................................................................................................................................ 85
3 Types of Justice perceptions & Justice Enactment ................................................................................. 86
3.1 Fair process .......................................................................................................................................... 86
3.1.1 Procedural justice ....................................................................................................................... 86
3.1.2 Interactional justice .................................................................................................................... 86
3.1.3 Distributive Justice ...................................................................................................................... 87
3.2 Preferential treatment with good intentions ....................................................................................... 88
1 Behavioral ethics .................................................................................................................................. 91
1.1 Attributing ‘good’ and ‘bad’ ................................................................................................................ 91
1.2 Contingencies on the effectiveness of ethics policies and codes of conduct ........................................ 91
1.1 Sanctioning Systems ............................................................................................................................ 92
1.2 Reducing bias in your organization ...................................................................................................... 92
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,MBA ’23-’24 Prof. L. Brebels & N. Bastardoz
2 What are Nudges? ................................................................................................................................ 93
2.1 From individual DM to decision leadership: ......................................................................................... 93
2.1.1 Ethical implications ..................................................................................................................... 93
2.2 A social identity critique of nudging .................................................................................................... 94
2.3 A social identity approach to decision-making .................................................................................... 95
2.4 How to use nudges as a leader? .......................................................................................................... 95
Decision leadership advice 1 ........................................................................................................................ 95
Decision leadership advice 2 ........................................................................................................................ 96
Decision leadership advice 3 ........................................................................................................................ 96
Decision leadership advice 4 ........................................................................................................................ 96
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,MBA ’23-’24 Prof. L. Brebels & N. Bastardoz
INTRODUCTION TO LEADERSHIP
Evaluation
• Group assignment (25% if at least 8/20 on part a. at the exam)
• Written exam (75%)
a. Statements (35% if at least 8/20; 100% if lower than 8/20)
This part consists of correct or incorrect statements that should be correctly identified by the
student as correct or incorrect.
b. Open questions (40%, if threshold of 8/20 reached on part 2a)
This part consists of two open questions (one about the leadership part and one about the
BDM part)
The optional readings will not be exam material!
1 DEFINITIONS
1.1 LEADERSHIP & LEADERS
It’s not enough to read one book to become a great leader:
• There is no universal, one best way to lead or one enduring and integrative theory of
leadership.
• There is no right or wrong leadership theory.
• Organizations are looking for competence, not a list of attributes.
• There is no ‘the truth’ about leadership.
Leadership is the process of influencing others toward the realization of a shared goal.
Leaders are individuals who have a differential influence on the initiation, direction, and
coordination of group activities over and above the influence associated with formal authority.
1.2 DIFFERENCE BETWEEN A LEADER AND MANAGER
You do not need to have a position of authority (or formal power) to be a leader.
Leadership requires some shared goals, so everyone can be a leader.
• No shared goal => NO LEADERSHIP (even if there is some use of authority).
1.3 LEADERS: BORN OR MADE?
Few abilities are inherited.
o The majority of the more important abilities are learned and developed in interaction with
others.
This is especially true for such abilities as leadership. There are no born leaders.
But there are some traits, characteristics that help to become a good leader => BORN.
But it’s important to develop behaviours & styles => LEARNED.
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,MBA ’23-’24 Prof. L. Brebels & N. Bastardoz
1.4 KNOWLEDGE ABOUT LEADERSHIP
• Leadership is a dynamic influential process, not a position or a static label
o Leadership requires a social interaction between people
• Everyone exercises some form of leadership
o Even babies in day-care when they play together. Unless one has no social relationship at all,
everyone will to some extent be a leader.
• Leadership can be developed
o Different leadership behaviours and styles can be developed
• The effective leader behaviours / styles are context-specific
o Context is made of many different facets: the task you have to perform, the employees you
manage, the organization you work in...
o Effective leadership depends upon a multiple of conditions. There is no one
predetermined, correct way to behave as a leader
• Women and men are equally effective as leaders
• Many leadership practices are universal and some are culturally-specific
o Integrity, charisma, or team-oriented are attributed that are universally desirable. What that
means though may vary across cultures (e.g., being charismatic in the US versus in Belgium
versus in Cuba).
• Being a leader contains certain pitfalls (e.g., power, ethics)
o Those who lead tend to feel powerful and become less attuned to others’ feelings and
interests. Ethical norms may be less constraining when we feel powerful.
2 LEADER DEVELOPMENT
2.1 LEADERSHIP TRAINING
2.1.1 FOCUS ON KNOWLEDGES, SKILLS & ATTITUDES
Set of systematic learning initiative design to enhance specific job-relevant knowledge (what you
know), skills (what you can do) and attitudes (what you think or feel about it)
à KSAs
For example:
Leaders should know how to recognize when employees need their emotional support, have the
communication skills to convey their understanding and discuss solutions, hold empathic attitudes,
and be motivated to act accordingly.
THE GOAL OF LEADERSHIP TRAINING:
Add new skills to an established or emerging leader’s skill repertoire, provide the knowledge to use
the skills appropriately, and adopt the attitudes necessary to adapt and apply them on the job.
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, MBA ’23-’24 Prof. L. Brebels & N. Bastardoz
2.1.2 FIVE RECOMMENDATIONS
1. Conduct a systematic analysis of the KSAs for leader success (needs analysis).
Because there are so many different leadership KSAs, researchers have grouped them into 4
main types of required skills that should be targeted in training interventions:
o Intrapersonal
o Interpersonal
o Business
o Leadership.
2. Choose scientifically validated training initiatives and evaluate their effectiveness.
3. Make it easy for learners to apply training back to the job by removing barriers to motivation
and transfer.
4. Base the design of training on multiple formats with opportunities for practice and feedback
to enhance learning.
5. Help the training stick by providing resources, opportunities for on-the-job practice, and
incentives that make it easy to use newly acquired KSAs.
2.2 LEADERSHIP DEVELOPMENT
2.2.1 FOCUS ON BEHAVIORS, IDENTITY & SELF-VIEWS
One of the reasons for leadership development initiatives is to nudge people out of their comfort
zones to acquire new ways of being an effective leader.
As compared with relatively straightforward skills acquisition through training interventions,
leadership developmental initiatives take on more complex and holistic challenges associated with
changing the inherent behavioral tendencies (some have called this personality) of human beings.
2.2.2 FIVE RECOMMENDATIONS
1. Leverage work experiences for development
2. Provide access to feedback and support
3. Use evidence-based processes for structured reflection
4. Facilitating changes in self-views
5. Give it time to work
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