Chapter 8

1. Chapter 8 Leading Effectively

2. Steve Jobs The Challenge of Leadership • Steve Jobs has been called “a classic comeback kid” and “the Lazarus of the PC world.” Jobs and his friend, Steve Wozniak, founded Apple Computer in Jobs’ father’s garage in the 1970s. • Jobs had a passionate vision, but had no management training, no business skills, and his style wasn’t suited to building a stable corporation; he was ousted from Apple in 1985, his reputation apparently forever tarnished. • Since then, Jobs founded NeXT, bought Pixar Animation Studies and made it a powerhouse, and is again CEO of Apple. Some still wonder if Jobs is what Apple needs now. • The realization that some leaders -- like Steve Jobs -- have bounced back and forth between success and failure illustrates the difficulty of defining what makes a leader successful.

3. What is Leadership? Leadership is the ability to influence others toward the achievement of goals

4. Leadership and Management • Leadership may sound like another name for management, but the terms are generally viewed as distinct. • Management aims to give consistency and order to organizations; leadership seeks to provide constructive and adaptive change. • Management is directed toward coordinating activities in order to get the job done; leadership is concerned with the process of developing mutual purposes. • Management relies more on a one-way authority relationship, while leadership relies more on a multidirectional influence relationship. • “Managers are people who do things right and leaders are people who do the right things.”

5. “Old Look” “New Look” Traits Behaviors Universal Situational One-Way Influence Reciprocal Influence Uniform Dyadic Leading Subordinates Leading Everyone Transactional Transformational The Changing Look of Leadership(Figure 8-1)

6. Emerging Perspectives on Leadership • While early leadership approaches emphasized the traits of successful leaders -- who they are -- newer approaches ask how successful leaders behave -- what they do. • Early approaches to leadership tended to take a universalistic perspective, asking, “What works?” Newer approaches, recognizing that characteristics of the situation, such as followers’ needs and skills and various aspects of the task must be considered, ask, “What works when?” • Early approaches considered primarily one-way influence, how a leader influences followers. Newer approaches recognize that the influence process is reciprocal -- just as leaders are influencing followers, followers are influencing leaders.

7. Emerging Perspectives on Leadership (Cont. • While early approaches tended to assume that leaders treat their various followers in similar ways, more recent approaches recognize that leaders may -- for good or bad reasons -- treat different followers differently. • While leadership approaches initially focused on the relationship of leaders to their subordinates, modern views are more inclusive; the “others” whom leaders influence may sometimes be team members or even hierarchical superiors. • Most early approaches to leadership tended to consider how a leader might influence others through a series of transactions. Newer approaches look more broadly at how leaders take actions to transform followers and organizations.

8. Lighten Up: The Link to Links • A recent study of golfing and leader effectiveness conducted by the New York Times compared golf handicaps of corporate heads to their companies’ stock market performance over three years. • The lower (better) the leader’s golf handicap, the better his or her company’s performance. • Perhaps natural leaders also tend to be natural athletes. • Perhaps perseverance and high need for achievement pay off in both golf and business. • Perhaps early life experiences -- such as caddying for executives -- build business skills while providing exposure to business banter.

9. Web Wise: The 20 Most InfluentialLeaders of the 20th Century • With the coming of the new millennium, Time magazine selected and profiled “100 remarkable people … who -- for better or worse -- most influenced the last 100 years.” • They were considered in their fields of endeavor. For the profiles of the 20 most influential leaders and revolutionaries, go to: • http://www.time.com/time/time100/

10. Leader Traits • The earliest approach to the study of leadership was to try to identify characteristics, or traits, of successful leaders. • Literally thousands of studies have now explored leadership traits. • Of the traits, activity, intelligence, knowledge, dominance, and self-confidence are most often found to be linked to leader success. • Unfortunately, most reviews of studies relating to leadership traits have concluded that the trait approach has not been fruitful. • Very few traits show up consistently across studies. • Also, since traits are relatively stable, it is unlikely that leaders can develop them through training. • So, attention has shifted from what successful leaders are to what they do.

11. Leaders aren’t born, they are made. And they are made just like anything else, through hard work.”-- Vince Lombardi

12. Black Elk Washakie Sitting Bull Web Wise: Native American Leaders • The website of the Indigenous Peoples’ Literature includes profiles of many native American great chiefs and leaders. The profiles provide rich insights into the wide range of traits, behaviors, and motivations of those leaders. • http://www.indians.org/welker/leaders.htm

13. Lower Degree of Participation Higher Autocratic Democratic Autocratic and Democratic Styles(Figure 8-2)

14. Autocratic and Democratic Styles • Autocratic leaders make decisions themselves, without inputs from subordinates. Democratic leaderslet subordinates participate in decision making. • Democratic style is consistently linked to higher levels of subordinate satisfaction. • Democratic style is usually positively, but weakly, related to productivity. • This weak link of democratic style to performance may be because many factors determine whether a democratic style is appropriate, including the nature of the tasks and the characteristics of subordinates.

15. Autocratic and Democratic Styles(Continued) • When tasks are simple and repetitive, participation has little effect, because “there is little to participate about.” • When subordinates are intelligent and desire independence, participation is especially important. • Participation is empowering and satisfying, and it generates enthusiasm for the decisions that are reached. • Participation takes time, and people sometimes don’t like to participate, especially if they care little about the decision. • Since leaders may give more productive followers more responsibility, the relationship between democratic style and performance could be due to the impact of performance on style rather than vice versa.

16. Consideration and Initiating Structure • Effective leaders show concern for both the task and the people they leader. Without concern for task, the job won’t get done. Without concern for people, satisfaction, motivation, and team spirit will suffer and performance will ultimately suffer. • Two sets of leader behaviors -- consideration and initiating structure -- address these concerns. • Consideration and initiating structure are not conflicting sets of behaviors. Skillful leaders should be able to exhibit both sets of behaviors, and they should use those behaviors as needed.

17. Consideration and Initiating Structure(Continued) • Consideration is behavior that shows friendship, mutual trust, respect, and warmth. Considerate leaders are friendly and approachable, look out for the personal welfare of team members, back up the members in their actions, and find time to listen to them. • Initiating structure is behavior that helps clarify the task and get the job done. Initiating leaders provide definite standards of performance, set goals, organize work, emphasize meeting deadlines, and coordinate the work of team members.

18. Consideration Treats all work unit members as his or her equal Is friendly and approachable Does little things to make work pleasant Puts suggestions made by the work unit into operation Looks out for personal welfare of work unit members Initiating Structure Lets work unit members know what is expected of them Schedules the work to be done Encourages the use of uniform procedures Assigns work unit members to particular tasks Makes his or her attitudes clear to the group Sample Items To Measure Considerationand Initiating Structure

19. High Consideration Low Initiating Structure Low High Consideration and Initiating Structure(Figure 8-3)

20. Focus on Management: Recycling Peopleat Omni Computer Products • Gerald Chamales is founder, President, and CEO of Omni Computer Products. • Chamales provides an example of a leader who cares about his employees as well as profit. • A college dropout and recovering drug and alcohol abuser who spent six months in a psychiatric facility and then bottomed out as a homeless youth 25 years ago, Chamales now recycles both people and laser cartridges. • A full third of his 250 employees, including managers, are drawn from the welfare rolls and halfway houses of Los Angeles. • Chamales demands that those with drug or alcohol problems have 30 days of sobriety in a treatment program, and he then gives them training, motivational seminars, mentoring, and even loans.

21. Lighten Up: Bosses from Hell • In his Dilbert cartoons, Scott Adams lambastes “pointy-headed” bosses who are amazingly insensitive, unqualified, vindictive, fail to deliver on promises, or are simply clueless. • Here are some actual bad bosses from”best boss/worst boss” contests: • An elderly engineer passed away at his desk at approximately 3 o’clock. The boss told office workers not to call 911 until 5 o’clock because it would disrupt the routine and be unproductive. • A boss told a programmer, “Give me a list of the unknown bugs in this system.” • A supervisor for a Fortune 500 chemical manufacturer would announce at 3 p.m. that he was leaving early, say his good nights, and leave, only to sneak up the back stairway to hide in the supply closet with the lights off to spy on employees for two hours.

22. Path-Goal Theory • The theory is called path-goal because its major concern is how the leader influences the followers’ perceptions of their work goals, personal goals, and paths to goal attainment. • The theory suggests that a leader’s behavior is motivating or satisfying to the degree that the behavior increases follower goal attainment and clarifies the paths to these goals.

23. Leader Motivational Functions in Path-Goal Theory • The leader can increase valences associated with work-goal attainment. • The leader can increase instrumentalities of work-goal attainment for the acquisition of personal outcomes. • The leader can increase the expectancy that effort will result in work-goal attainment.

24. Some Contingency Factors in the Path-Goal Theory • Some task contingency variables: • degree of structure • degree to which the task is intrinsically satisfying • degree to which the task provides feedback concerning accomplishment • Some follower contingency variables: • need for independence • ability, experience, training • “professional” orientation

25. Subordinate Characteristics • Clarification of • Paths to Goals • Increased Goal • Attainment • Subordinate • Responses: • Motivation • Performance • Satisfaction Task Characteristics Elements of Path-Goal Theory(Figure 8-4) • Leader Behaviors: • Directive • Supportive • Participative • Achievement- • Oriented

26. Identify Task and Employee Needs Match Appropriate Leader Behavior to the Situation If This Does Not Work, Replace the Leader If This Does Not Work, Train the Leader to Change His/Her Behavior Change Leader Behavior If It Does Not Match the Situation The Bottom Line:Applying Path-Goal Theory Assess the Situation

27. Some Leadership Substitutes and Neutralizers(From Figure 8-5)

28. http://www.nwlink.com/~donclark/ Web Wise: Big Dog’s Leadership Page • Big Dog’s Leadership Page is part of the website called Big Dog’s Bowl of Biscuits. • The Bowl of Biscuits site contains information on training, leadership, and performance, as well as Big Dog’s Library and other information. • The Leadership Page provides information “for new supervisors, managers, leads, and anyone wishing to move up through the ranks as a leader.”

29. Recognize That Leader Behaviors for Which Substitutes Exist May Not Be Needed Identify Neutralizers of Leadership Implement Leadership Strategies Develop Strategies to Overcome Neutralizers of Leadership The Bottom Line: Managing Substitutesand Neutralizers of Leadership Identify Substitutes for Leadership

30. Leader-Member Exchange Theory • According to leader-member exchange theory, leaders establish a one-on-one relationship with each follower. These relationships vary in terms of the quality of the exchange. • Some followers -- members of the in-group -- have a high-quality relationship with the leader, characterized by mutual trust, liking, and respect. They enjoy the confidence of the leader, are given interesting and challenging assignments, and in turn they work hard, are loyal, and support the leader. • Other followers -- the out-group -- have a lower quality relationship with the leader. The leader tends to see them as lacking motivation or competence or loyalty, interacts with them less, and offers them fewer chances to demonstrate their capabilities. • Out-group members may “live down” to the leader’s expectations, carrying out the tasks defined in their formal job descriptions and facing no real expectations of loyalty, creativity, or high performance.

31. Leader-Member Exchange Theory (Cont.) • Followers may sometimes find themselves as members of out-groups due less to their abilities and potential than to favoritism, stereotypes, and personal conflicts. • In an ideal world their would be no in-groups and out-groups. In the real world, in-groups and out-groups are common and perhaps cannot be avoided. • Leaders must do all they can to ensure that in-group membership is based on ability and motivation rather than favoritism and prejudice. • They must also ensure that followers can move between the groups, having access to in-group membership when it is earned and falling from such status when it is no longer justified. • The most recent focus of leader-member exchange theory is on the process of leadership making, which develops over time in three phases.

32. S S In-Group Out-Group Leader SA SE S S SB SD SC S S S S S Subordinate S Leader-Member Exchange Model(Figure 8-6)

33. Identify Employees Who You Feel Are Part of the “In-Group” Identify Leaders Who You Feel Are Part of the “Out-Group” Implement Leadership Strategies Develop Leadership Strategies for Moving Employees from the “Out-Group” to the “In-Group” The Bottom Line: Applying theLeader-Member Exchange Model List the Employees in Your Work Unit

34. Stranger Acquaintance Partner Time Phases in Leadership Making(Figure 8-7) ROLE Scripted Tested Negotiated INFLUENCES One-Way Mixed Reciprocal EXCHANGES Low Quality Medium Quality High Quality INTERESTS Self Self/Other Group

35. Types of Leadership • Transactional Leadership: Leadership based on transactions or exchanges -- the promise, and provision, of rewards for good performance and threats or discipline for poor performance. • Transformational Leadership: Leadership which transforms followers and organizations by: • broadening and elevating the interests of employees • generating awareness and acceptance of the purposes and missions of the group • stirring employees to look beyond their own self interest for the good of the group

36. “It is time for a new generation of leadership, to cope with new problems and new opportunities. For there is a new world to be won.” -- John F. Kennedy

37. ATTRIBUTED CHARISMA INDIVIDUALIZED CONSIDERATION IDEALIZED INFLUENCE INTELLECTUAL STIMULATION INSPIRATIONAL LEADERSHIP Elements of Transformational Leadership TRANSFORMATIONAL LEADERSHIP

38. Transformational Leader Behaviors • Attributed charisma. Charisma is a Greek word meaning “Divinely inspired gift.” Leaders are seen as charismatic when they display a sense of power and confidence, remain calm during crisis situations, and provide reassurance that obstacles can be overcome. • Idealized influence. Leaders display idealized influence when they talk about their important values and beliefs; consider the moral and ethical consequences of their decisions; display conviction in their ideals, beliefs, and values; and model values in their actions. • Intellectual stimulation. Intellectually stimulating leaders help followers recognize problems and find ways to solve them. They encourage followers to challenge the status quo. They champion change and foster creative deviance.

39. Transformational Leader Behaviors(Continued) • Inspirational leadership. Inspirational leaders give followers hope, energizing them to pursue a vision. They envision exciting new possibilities, talk optimistically about the future, express confidence that goals can be met, and articulate a compelling vision of the future. • Individualized consideration. Transformational leaders show personal interest and concern in their individual followers, and they promote their followers’ self-development. They coach their followers, serve as their mentors, and focus them on developing their strengths.

40. “A leader is a dealer in hope.” -- Napoleon Bonaparte

41. “Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great.” -- Mark Twain

42. “The great law of culture is: Let each become all that he was capable of being.” -- Thomas Carlyle

43. ANTICIPATORY SKILLS SELF- UNDERSTANDING SKILLS VISIONING SKILLS EMPOWERMENT SKILLS VALUE- CONGRUENCE SKILLS Skills Associated with Transformational Leadership TRANSFORMATIONAL LEADERSHIP

44. Skills Associated with Transformational Leadership • Anticipatory Skills -- The ability to intuitively and systematically scan the changing environment. • Visioning Skills -- The process of persuasion and example by which an individual or leadership team induces a group to take action that is in accord with shared purposes. • Value-Congruence Skills -- The ability to be in touch with followers’ needs in order to engage followers on the basis of shared motives, values, and goals. • Empowerment Skills -- The ability to effectively share power with followers. • Self-Understanding Skills -- Frameworks with which leaders understand both themselves and their followers.

45. Focus on Management: Transformational Leadership at General Electric • Jack Welch, former CEO of General Electric, is a notable transformational leader. • “We have found what we believe to be the distilled essence of competitiveness. It is the reservoir of talent and creativity and energy that can be found in each of our people. That essence is liberated when we make people believe that what they think and do is important -- and then get out of their way while they do it.” • Welch describes his successor: “I want somebody with incredible energy who can excite others, who can define their visions, who finds change fun and doesn’t get paralyzed by it. I want somebody who feels comfortable in Delhi or Denver.”

46. Articulate This Mission with Great Conviction to Employees Provide Leadership That Inspires Employees to Embrace the Mission Provide Strong Support for Employees by Showing Concern for Their Needs, Goals, and General Welfare Empower Employees to Do What Is Needed to Achieve the Mission The Bottom Line: ApplyingTransformational Leadership Theory Develop a Mission That Responds to Organizational Challenges or Opportunities

47. Carly Fiorina Focus on Management: Rebuilding theGarage at Hewlett-Packard • When, in 1999, Carly Fiorina was named the CEO of Hewlett-Packard, she became the first female CEO of one of America’s 20 largest corporations and was ranked by Fortune magazine as the most powerful woman in American business. • When Fiorina took over the reins, HP was awash in question marks, with lackluster performance and a dearth of innovative offerings. • Fiorina saw the company as sick and endangered -- slow, complacent, and risk averse.

48. Focus on Management: Rebuilding theGarage at Hewlett-Packard (Continued) • Seeking to reinvent HP, Fiorina evoked the original spirit of the company -- it was started in a garage and rode a history of innovation -- and launched a $200 million brand and advertising campaign that included a logo with the word “invent.” • Saying, “Preserve the best, reinvent the rest,” Fiorina has pushed through more drastic changes in a short period of time than HP has ever seen before. • She drew up a “rules of the garage” based on how the original HP operated. Among its mantras are “No politics, no bureaucracy” and “Radical ideas are not bad ideas.” • Fiorina has revamped salary structures to tie pay more closely to performance, reinforced key values, and restructured the company. She is seeking to move the company to “Internet time.” • She succeeded with her plan to “reinvent” HP by merging it with Compaq in the face of fierce competition.

49. The Language of Leadership • Transformational leaders must be able to inspire; communicate their vision, ideals and beliefs; provide compelling reassurance; and challenge followers to think in new ways. • To do all this, transformational leaders must be masters of communication; they must “speak the language of leadership.” • Two aspects of the language of leadership -- framing and rhetorical crafting -- are crucial.

50. Framing and Rhetorical Crafting • Framing is presenting the message -- defining the purpose in a meaningful way. • Rhetorical crafting is using symbolic language to give emotional power to the message. • Two elements of framing are amplifying values -- the process of identifying and elevating certain values as basic to the overall mission -- and belief amplification -- the process of emphasizing factors that support or impede actions taken to achieve desired values. • Rhetorical techniques of inspirational leaders include using metaphors, analogies, and stories, gearing language to the particular audience, and using speech techniques such as alliteration, repetition, and rhythm.