A fundamental analysis of the influence process by upper-echelon leaders (TMT) top management team.

University Degree Business and Administrative studies

This paper offers a fundamental analysis of the influence process by upper-echelon leaders (TMT) top management team. Calculated leadership is affected by the strategic insight of the (TMT), which is related to organizational performance and culture. Upper-Echelon leader have various ways of influencing their team, hence this paper analyses the influences process that upper-echelon leaders may employ. In addition it analyses the influences process utilized by three distinct leaders: Stanley Wang, Leslie Marks, and Joseph Hadad. Following the analysis of these three leaders the paper concludes with findings of how these three leaders implemented the influence process differently but yet effectively.

It has been questioned and researched about how leaders influence their particular corporation(Wright &Williams, 2005).This question has been posed by many top researchers in the field of leadership. Upper echelon leaders or the top management team (TMT) are expected to provide their organization with strategic management instead of managing the daily responsibilities. The effectiveness and leadership of each particular leader is created by several distinctive factors, and the method they utilize to lead their corporation, differ from business to business, and among branch within a particular business. Successful echelon leaders may adjust their leadership styles to fit the organizational culture, or they may incorporate strategic changes to shape the organization to fit their style of leadership (Lee &Sweeny, 2001). This article examines the influence processes of upper echelon leaders, and influence processes at work with regard to three leaders Stanley Wang, Leslie Marks, and Joseph Hadad, in three diverse industries.

One of the most significant determinants in managerial effectiveness is success in influencing people (Wright & Williams, 2005). Influence processes are imperative in comprehending how leaders inspire their subordinates dedication and extra effort, how decision are made within and for the organization, whether or not plan and guidelines were/ are implemented effectively, how managers obtain support form lateral peers they have no authority over, how superiors are influenced to provide support and necessary resources, and why a particular organization may adopt certain innovations and reject others (Falbe &Yulk, abstract, 1992).

Influence process is an evolving theory (Wright &Williams, 2005). Influence process is a prospect on influence and how it occurs. Influence process by definition means employing an array of characteristics to influence actions or behaviors (Lee & Sweeny, 2001), individuals, organizations or groups are the behaviors that are influenced. The influence process is different from the influence tactics in that influence tactics is more intense and repeated and imposed repeatedly over time, giving a leader more and more complete control over all aspects of the organization. In essence influence tactics are specific expression of influence process. Therefore various type of influence process necessitates different tactics for opposing or counteracting them.

Strategic leadership and innovative approach are essential for attaining and sustaining strategic competitiveness in the century(Lee & Sweeny, 2000). Time and time again leaders have been recognized for their vital role in identifying prospects and making optimal decisions that will affect the influence process. According to Nahavandi, 2006 there are six influence processes that allow leaders to have an effect on the strategic path and performance of the organization. Direct decision, allocation of resources, reward system, selection of other leaders, promotions and role modeling.

1) Direct decision- . Leaders will have the capability to influence the preference of their group, ...

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1) Direct decision- . Leaders will have the capability to influence the preference of their group, based exclusively on the control they have of the vision and mission of the organization (Nahavandi, 2006). Vision and mission affect the culture of the organization` by undoubtedly concentrating on what the organization consider crucial and beneficial (Nahavandi, 2006). Therefore the capability for leaders to affect the organization vision, mission and essentially the organization strategy- upper echelons leaders must have a direct relationship with their management, who in turn play a vital role in implementing strategies, state decisions making policies and setting the overall climate of the organization (Nahavandi, 2006). Leaders determine the organizational structure through the “direct decisions" of variables that affect the structure or indirectly through the people they influence (Nahavandi, 2006).

2) The allocation of resources- this is another influence process that upper echelons leaders employ and it has significant impact to their organization. These leaders are the top decision makers on the allocation of resources (technology, money, tasks, etc.) to both individuals and organizational departments (Nahavandi, 2006). Upper echelon leaders are the ones who decide who get what and how much. Allocation of resources is affected by a leader support or lack of support, of a particular organizational culture and strategy. It helps to reinforce desire outcome and discourage undesirable outcomes (Nahavandi, 2006).

3) Reward System- be it (formal or informal) significantly impacts organizational culture and the actions of the employees (Nahavandi, 2006). Here employees hope to gain monetary incentives by adhering or conforming to specific behavioral standards or they may attain a particular goal that reflects the mission of their organization. Factor that affect the reward system are employee whose action fit the mission, vision and culture of their organization (Nahavandi, 2006) are more likely to be rewarded that those whose behavior does not.

4&5) Selection of other leader and promotion- Another way upper echelon leaders can reward employees that adhere and fit the organizational culture and structure, as well as meet individual goals and objectives are much more likely to be promoted to top leadership positions – as opposed to those who do not (Nahavandi, 2006). In addition according to Nahavandi, 2006, this particular influence process can be factual for almost any organizational situation; hence those who organically fit well into an organization’s mission and culture are more fitting to be chosen and rewarded in some manner (in-group).This influence process is also affected by employees action or lack their of.

6) Role modeling- a leader who is avid about customer service will essentially focus on this particular passion, and it is eventually transferred down to his employees (Nahavandi, 2006). Role modeling can have ethical implications for employees; as such it can be communicated through the vision and/or mission or through regular communication to employees but mainly how a leader expects employees to behave (Nahavandi, 2006).

To better understand the influence process and how upper-echelon or TMT utilize the process below is an analysis of three distinct leaders Stanley Wang, Leslie Marks, and Joseph Hadad, who employ the same influence methods but quite differently yet very effectively.

In analyzing the data above it shows that leaders within the upper echelon may employ the same influence method but incorporates it in different ways. As with the Stanley Wang, Leslie Marks, and Joseph Hadad. They made decisions, rewarded, promoted, role modeled and allocated resources in different manners all while influencing their employees to maintain and fit in with the company structure. According to Hambrick (2007) upper echelons leaders act and lead on the basis of their personal views and comprehension of strategic leadership, in addition to their educational principles, individual experiences and individual personalities. According,to Nahavandi, (2006).

A leader personality influences his/her preferences, behavior and style
Personality may affect how a leader learns skills and how it is implemented
Leader needs to be aware that certain personality traits will affect work related behavior and they must develop self awareness.

This has been the foundation of the upper echelon theory, which was developed on the principle of bounded rationality (Cyert & March, 1963; March & Simon, 1958).

Summery and Conclusion

Overall the data has shown that upper-echelon leaders do not employ the influence process the same way. Whether it’s direct decisions, rewards, role modeling, the allocation of resources selection of a new leader or promotion – Upper echelon leaders and their TMT have many influence processes that impact their organizations (Nahavandi, 2006). It is imperative for them to make direct decisions, because the decisions that they make will affect their entire organization. It is clear form analyzing these three leaders that making direct decisions will determined how the company is structured and but more importantly their company’s culture. Their own personal style of leadership foreshadows how they employ influence process. Their values play a significant role in how they influence their workers, for example Joseph values equal pay for all his employees and made direct decisions that would eventually get all workers on the same level of pay if they performed well regardless of status with the hospital, while Leslie Marks values the knowledge gained through experience.

It is important to for upper-echelon leaders understand the influence process, so that they can effectively influence his/her organization. Failure to understand the culture of the organization can be met with resistance when a leader is attempting to influence his/her employees. Therefore the analysis of the data of the leaders mention here-in means that the leaders’ personality trait governs how he/she governs the entire organization.

It is important to know because as a potential employer or employees, it is imperative to match you leadership or employees qualities to the organizational culture and structure. It can determine whether one not one becomes a member of the in or out group.

References

Falbe, C. & Yulk, F. (1992).Consequences for Managers of Using Single Influence Tactics and Combinations of Tactics: The Academy of Management Journal, Vol. 35, No. 3 (Aug., 1992), pp. 638-652doi:10.2307/256490 Retrieved September, 20, 2007 from: 4273%28199208%2935%3A3%3C638%3ACFMOUS%3E2.0.CO%3B2- N&size=LARGE&origin=JSTOR-enlargePage

Hambrick, D. C. (2007). Upper echelons theory: An update. Academy of management review , 32 (2), 334-343.

Lee,D. & Sweeny, P. (2001). An assessment of Influence Tactics Used by Projects Managers:; Jun2001, Vol. 13 Issue 2, p16, 9p, 5 charts Retrieved September 21, 2007 from

March, J. G., & Simon, H. A. (1958). Organizations. New York: Wiley.

Navahandi, A. (2006). The art and science of leadership (4th ed.). Upper Saddle River, NJ, USA: Pearson Prentice Hall.

Wright, P. & William , J.(2005). Strategic Leadership and Executive Innovation Influence: An International Multi-Cluster Comparative Study:Strategic Management Journal:Strat. Mgmt. J., 26: 665–682 (2005)

Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/smj.469