Chapter 16 – Skills for Optimizing Leadership as Situations Change
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Exercise 16-2
Exercise Title: Introduction to Negotiation
Purpose: To expose students to real life negotiation situations.
Summary: This exercise consists of two sessions with a homework assignment between sessions. In the
first session, split participants into two groups. One group should brainstorm issues or times where
negotiation is commonplace, and the other group should brainstorm issues or times where negotiation is
Session 1 takes about 20 minutes, and session 2 takes about 30 minutes.
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Exercise 16-3
Exercise Title: Competition and Cooperation at Work
Purpose: To demonstrate advantages and disadvantages of competitive and cooperative reward structures
on intra-group and inter-group relations, and how larger system characteristics influence these behaviors.
Summary: As background, this exercise is one of the numerous variants to the familiar prisoner’s
dilemma. The term prisoner’s dilemma refers to the decision faced by two accomplices who were
In this exercise, students should be divided into groups of four. Each group of four will represent a work
team within a larger company. Due to difficult economic conditions, the company has decided two main
changes need to occur in its internal operations. First, there will be a need to downsize company
personnel. In other words, some current employees will lose their jobs. Second, the company has decided
to emphasize a “team” approach. The company has adopted the increasingly popular business philosophy
This exercise takes about 40 minutes to complete.
Chapter 16 – Skills for Optimizing Leadership as Situations Change
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Playing the Company Game
The game is composed of ten rounds. During each round, team members will have specified
periods of time to decide upon and (confidentially) mark their choices. These choices
involve writing either an “X” or a “Y” on slips of paper, which will subsequently be shown,
to the other members of the team. Because the company values widespread sharing of
performance information, the current standings of all members within each team are
publicly displayed on a “record of performance.” This amounts to a tally sheet like the
following:
Choice Pts Won Pts Lost Balance
Team member #1 ______ ______ ______ ______
Performance appraisal points will be won or lost for each round according to the following
schedule:
When the team chooses: Assign to X’s: Assign to Y’s:
4 X’s Lose 10 pts each —————–
Chapter 16 – Skills for Optimizing Leadership as Situations Change
The task by which each team member’s performance will be evaluated amounts to a series
of ten decision rounds. Most of the decisions must be made confidentially and
independently without consultation with other team members, though some will be made
after conferring with other team members during rounds 5, 8, and 10. Even when
conferences are authorized, however, the actual decisions by individual team members
must be recorded confidentially after the conference.
Round Time Allowed Confer With Special Rules
1 2 minutes No one
2 1 minute No one
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Exercise 16-4
Exercise Title: Diagnosing Performance Problems
Purpose: To apply the performance model: Performance = f (Expectations x Capabilities x Opportunities
x Motivation), to case studies and real life leadership situations.
Summary: Instructors should describe a performance problem they have encountered in the past, and
then ask students for recommendations on how to resolve the problem. Instructors should then review and
Chapter 16 – Skills for Optimizing Leadership as Situations Change
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Exercise 16-5
Exercise Title: Building Development Plans
Purpose: To give students the tools necessary to build a best practice development plan.
Summary: Instructors should review the development planning process as outlined in Chapter 8, and
highlight that good development plans have the following characteristics:
• Development Goals: A brief description of the knowledge, behaviors, or skills that a person needs
to develop in order to achieve career or life goals.
Instructors should use the sample plan on the next page to help students better understand the components
of a development plan. This plan is somewhat simpler than the example in the book, and was designed as
such in order to make it easier for students to complete.
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Sample Individual Development Plan (IDP)
Name: Chris Sample Supervisor: George Castanza Planning Period: April-July 2006
Development Goals
Action Plans – Developmental Activities & Resources
(What, Who & How)
Time Line
(Target Dates)
Criteria for Success
(What will successful
outcomes be?)
People Development –
Increase the amount of
time spent on people
development, provide
consistent coaching and
Set aside time for monthly one-on-ones with Management Team.
Provide consistent, specific and timely feedback to Associates.
Routinely check-in with Associates regarding both accomplishments
and issues of concern.
By end of April 2006
By end of April 2006
Ongoing
Conducted one-on-ones routinely.
Am able to clearly articulate the strengths
and areas of development for my staff.
Targeted key people as high potential;
continuously building a strong “bench.”
Chapter 16 – Skills for Optimizing Leadership as Situations Change
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Creating Your Individual Development Plan
Step 1: Focus on a Development Goal
Step 2: Implement Action Steps
Write down what you will do at work to reach the development goals in the “Action Plans” box on
Step 3: Time Line
Write down when you will complete the activities specified in the “Time Line” box.
Step 4: Criteria for Success
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Individual Development Plan (IDP)
Development Goals
Action Plans – Developmental Activities & Resources
(What, Who & How)
Time Line
(Target Dates)
Criteria for Success
(What will successful
outcomes be?)
•
Chapter 16 – Skills for Optimizing Leadership as Situations Change
Development Planning Checklist
Development Goals:
□ Are the development goals related to a person’s career or life goals?
Action Steps:
□ Are the steps specific, attainable, and measurable?
□ Are the activities mostly on-the-job?
Time Line:
□ Are dates assigned to each action step?
□ Are the dates realistic?
Criteria for Success:
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Exercise 16-6
Exercise Title: The Hot Stove Rule
Purpose: To provide a set of guidelines for using punishment effectively.
Summary: Douglas McGregor identified guidelines for using punishment effectively, which he called the
“hot stove rule” (drawing upon the undeniable lesson one learns by touching a red hot stove). You can
have an interesting and fruitful class discussion by exploring implications of the hot stove analogy. It will
probably be most meaningful to the class if you draw their ideas out in discussion rather than merely list
the points listed below. You might ask, “How is effective punishment like the lesson one learns by
touching a red hot stove?” Following are McGregor’s ideas about characteristics of effective punishment,
drawing upon the hot stove analogy:
It’s swift. The association between the behavior (touching the stove) and the consequence (the burn)
is undeniable, and the reaction is immediate. Therefore, leaders should establish clear rules and
policies so subordinates know the consequences for misbehavior. Furthermore, leaders must act
quickly and not “look the other way” when negative behavior occurs.
It’s consistent. The stove burns every time. Favoritism or selective punishment will cause serious
morale problems.
It offers an alternative. The person can move away from or avoid the stove. Leaders should present
subordinates with acceptable alternative behaviors to those being punished.
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