Beruflich Dokumente
Kultur Dokumente
Afasaneh Nahavandi
SECTION ONE
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INTRODUCTION, COURSE OUTLINES 3
SECTION TWO
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CHAPTER MATERIALS 17
PART ONE
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BUILDING BLOCKS
Chapters 1 through 5 present the building blocks and foundational theories 18
of leadership.
CHAPTER 1
DEFINITION AND SIGNIFICANCE OF LEADERSHIP 19
CHAPTER 2
THE GLOBAL AND CULTURAL CONTEXTS 32
CHAPTER 3
THE FOUNDATIONS OF MODERN LEADERSHIP 54
CHAPTER 4
INDIVIDUAL DIFFERENCES AND TRAITS 74
CHAPTER 5 85
POWER
PART II
CONTEMPORARY CONCEPTS
Chapters 6 and 7 present theories that currently dominate the field of leadership including charismatic,
transformational, and authentic leadership, and a consideration of upper-echelon and nonprofit
leadership
CHAPTER 6
Current Era in Leadership: Inspiration and Connection to Followers 99
CHAPTER 7
Other Leadership Perspectives: Upper Echelon and Nonprofit Leadership 113
LEADING
Chapters 8, 9, and 10 focus on key aspects of leading people and organizations including leading teams
and change and developing leaders.
CHAPTER 8
LEADING TEAMS 130
CHAPTER 9
LEADING CHANGE 146
CHAPTER 10
DEVELOPING LEADERS 160
The topic of leadership is challenging and stimulating for students and faculty. Whether the course is
offered as part of an undergraduate curriculum, as a graduate business elective, in an educational
leadership program, or in a public administration program, it is always popular. The newfound interest
in the topic, which has led to the publication of many widely available popular books, is further bringing
students back to leadership classrooms. It is easy for them to get frustrated and disappointed, however.
Leadership may appear easy to define and interesting to write about, but it is difficult to teach. It is a
field that contains many well-developed theories, is replete with empirical challenges, and continues to
be highly divided.
The goal of the “Art and Science of Leadership” is to move beyond the differences and the
divisions and to provide students with a theory- and research-based, integrative, hands-on, and practical
view of leadership. The seventh edition of the book builds on the strengths of the first six editions and
introduces some new emphasis and many updated theories, examples, and cases. The many debates and
controversies within the field of leadership are presented in this edition as they were in the previous
ones. As in previous editions, I continue to emphasize integration of the concepts and distilling useful
and practical concepts from each theory while taking a cross-cultural perspective. The guiding
philosophy and assumptions remain the same. These include:
Leadership is about others. Leaders exist to help others achieve their goals.
Leadership is a complex process that cannot be explained by one word, one concept, or through
a simple definition or action.
We all can learn to become better leaders. For some of us, the learning is easier in certain areas
than in others, but with practice and support from our organizations, we all can improve our
leadership skills.
A cross-cultural perspective is essential to understanding leadership. Leadership is not a
culture-free process.
Theories are useful tools. Although they sometimes appear esoteric, complicated, and even
contradictory, theories are useful tools that help clarify the complex process of leadership.
Application and practice are essential to learning. You cannot learn to lead from a book or in a
classroom alone. To learn to lead, you have to practice.
As is the case with every edition, extensive research has gone into this edition. I also had the
opportunity to teach several large undergraduate leadership classes for the past couple of years and my
students’ feedback has shaped many of the revisions that you will see in this edition. Although the
overall structure remains the same, the outline in many chapters has been changed, and several new
features have been added to ensure that students can learn more easily and apply what they learn more
readily. Specific changes include:
Close to two hundred new references have been added throughout the chapters, almost all
dating from 2010 forward.
Close to 150 references were removed either because newer, more current research was
available, the examples no longer fit, or leaders had left or retired.
Updated and revised learning outcomes for each chapter.
Two new pedagogical features in all the chapters:
o Each chapter starts with a “The Leadership Question” that focuses the student on the
theoretical or practical issues covered in the chapter. The question is specifically addressed
at some point in the chapter in “Leadership Question Revisited” segment.
o Each chapter includes a “What Do You Do?” feature that presents a brief action-oriented
scenario to help students connect the material with hands-on applications.
In addition to general updates of research and examples in all the chapters, six of the ten chapters have
been substantially revised. Changes include:
In Chapter 2:
o A substantial revision of the presentation of the GLOBE research
o Substantial revision and of the material on gender and diversity
In Chapter 6:
o Chapter is retitled to address the new era in leadership research
o Extensively revised presentation of value-based leadership including servant, authentic,
and positive leadership
o New “Applying What You Learn: Balancing a Positive Approach with Realism”
o Revised self-assessment on authentic leadership
o Extensive revision of the Avon-Andrea Jung case to reflect her leaving the company
In Chapter 7:
o New “Leading Change: Public Allies”
o Extensive revision of the Leadership in Action case to reflect changes in leadership at
P&G
In Chapter 8:
o New Leading Change: Google”
o New material on helping teams become effective
In Chapter 9:
o Structure of the chapter has been revised
o New Leading Change: Ford’s Alan Mulally”
o New exercise—The 6 hats
o Extensively revised Leadership in Action that reflects company’s change in policy
Regardless of the level at which leadership is taught, it is generally taught as an elective. Therefore, the
content of the course remains very much up to the instructor. Most faculty who teach a leadership
course have some degree of expertise in the topic. They are likely to have their own favorite materials
and lectures. I developed the contents of this handbook based on those assumptions. In addition to the
multiple choice and true/false questions that are provided for this edition, you will find potential
assignments throughout the handbook. I also provide a summary and detailed outline of every chapter
for quick review.
I focused on providing the instructor with directions and ideas for the exercises and other
activities presented in the text. I have tested all of the exercises at the end of the chapters in my classes
over the past 30 years. Many are appropriate for all students; some work better with students with more
work experience. In spite of some differences, however, they are all accessible and relatively easy to
use. The clear majority are designed to be used as a brief supplement to a topic during a class period; a
few are lengthy enough to take up a whole class. I provide two brief course outlines along with a table
of activities to help instructors design their courses and decide which activities are appropriate for their
class.
The following table presents a summary of all the self-assessments and exercises at the end of each
chapter in the text. The table indicates 1) whether the activities require individual or group work, in
some cases both, 2) whether they can be done in class or require work at home, 3) the approximate time
needed to complete the activity, 4) the complexity level, and 5) whether the activity can be used as a
course assignment.
Individual or group
The rating of individual (I) or group (G) indicates whether students have to work on this activity by
themselves or in groups. In many cases both are required, as students have to complete an individual
section before moving to group activities (e.g., Exercise 5.3 “Recognizing blocks to empowerment”).
Some activities require no prior individual work or are too complex for individual students to complete
alone. Others, such as the self-assessments, require only individual work.
In class or at home
Some of the activities can be assigned as homework for students to complete outside of class. These are
marked “H.” Others require work in class either individually or in groups; they are indicated by “C.”
Time needed
The time estimates provided are approximate minimum time required to complete an activity. Ten
minutes is used as the base minimum, although many of the self-assessments are likely to take the
students less than 10 minutes to complete. The majority of exercises requires around 30 minutes. The
time needed often varies depending on class size.
Complexity level
A rating of 1, 2, and 3 is used to evaluate the complexity level of each activity.
o 1 = Low complexity
This rating indicates simple exercises that do not require a high level of skill or major time
commitment. For example, the first two activities (Exercise 1.1 and 1.2) are both rated as a “1.”
They are both appropriate for getting the faculty and the student used to experiential exercises.
Most of the self-assessments, which the students will be doing on their own, are also rated as
low complexity.
o 2 = Moderate complexity
This rating indicates that the activity requires some skills and generally a time commitment of
30 minutes or longer. For example, Exercise 2.3 “Leadership and gender,” and 5.2 “Who holds
power in your organization?” are rated as a “2” because they require students to integrate
information from the chapters in order to complete the exercise.
o 3 = High complexity
A rating of 3 indicates that the activity is complex and time consuming. Activities rated as a
“3” either require complex role plays (e.g., Exercise 2.2 “Narian bridges”) or complex
integration and application of course concepts (e.g., Exercise 3.2, “Using the normative
decision model,” and 6.2 “Charismatic speech”).
Course assignment
This symbol in the table and in the Leader’s Handbook indicates that the activity is well suited
for use as a course assignment, graded or otherwise. The assignments are described throughout
the handbook.
Chapters 1 through 5 present the building blocks and foundational theories of leadership.
Chapter Overview
This chapter introduces students to the concepts of leadership and leadership effectiveness by providing
working definitions and limitations of the concepts. The applicability and limitations of existing models
and theories are discussed. Obstacles to effectiveness and the differences between leadership and
management are presented. Roles and functions of leaders are outlined followed by a presentation of the
arguments regarding the importance of leadership in organizational performance. Current trends and
changes in organizations are considered along with the factors that are leading to those changes with a
focus on demographic trends. Barriers to effective leadership are considered.
Chapter Objectives
management
List the roles and functions
of leaders and managers Figure 1.1: Leader’s functions
in shaping organizational
Exercise 1.1
Exercise 1.2
culture Exercise 1.3
Applying What You Learn:
Leadership Basics
Explain the changes in
organizations and how they What do you do?
Figure 1.2: Control versus
Exercise 1.1
Exercise 1.2
affect leaders results-oriented leadership Exercise 1.3
Figure 1.3: Factors fueling Exercise 1.4
changes in organizations and
their leadership
Figure1.4: Diversity in the U.S.
population
Table 1.3: U.S. demographic
highlights and trends
Summarize the debate over
the role and impact of Applying What You Learn:
Leadership Basics)
Exercise 1.3
Chapter Outline
The Leadership Question Some leaders are focused on getting things done while others put taking
care of their followers first. Some look at the big picture, and others hone in on the details. Is one
approach better than the other? Which do you prefer?
a. Who is a leader?
A leader is defined as any person who influences individuals and groups within an organization, helps
them in the establishment of goals, and guides them toward achievement of those goals, thereby
allowing them to be effective.
The definition includes four elements: 1) group process; there are no leaders without followers, 2)
leadership involves interpersonal influence, 2) action and goal orientation, and 3) hierarchical
relationship.
The issue of effectiveness is complex and multifaceted with different theories focusing on different
aspects including group performance, employee satisfaction, and organizational change.
Luthans’s research on the difference between effective and successful leaders is presented. In many
cases, those who are effective are not always successful. Effective leaders communicate with followers,
manage conflict, and train and develop subordinates; successful leaders focus on networking and taking
care of their supervisors.
Ideally, effectiveness should include both elements of taking care of followers and also external factors.
The case of the New York Times illustrates the possible dichotomy.
d. An integrative definition
Definition includes internal stability and health, external adaptability, and goal achievement.
A leader is effective when his or followers achieve their goals, can function well together, and can adapt
to the changing demands from external forces.
Leadership Question Revisited Summarizes the complexity of the definitions of leadership and
effectiveness and emphasizes the importance of the context and situation in determining what
effectiveness is.
Leadership is a universal concept that has existed throughout history and in all cultures. People need
leaders: 1) because groups need to stay orderly and focused, 2) to accomplish tasks, 3) to make sense of
the world, and 4) as a romantic ideal.
Arguments over the impact of leadership in organizations are presented in this section. In spite of strong
popular beliefs that leaders are important, research findings have not been very supportive of the
concept (Table 1.1). The impact of the leader is often affected by situational characteristics that limit his
or her power and discretion. These factors are described in detail in chapters 6 and 7. The view that
leaders impact their organizations directly through their actions and decisions, or indirectly through the
vision they provide, is reaffirmed.
Leading Change The Container Store is an organization with a unique culture focused on customers
and on taking care of employees who are the ones who deal with the customers. Its definition of
effectiveness is “making the customer dance” from delight at having a product that fits her needs. They
create their culture through careful selection, extensive training, high pay, taking care of employees
through work-life balance, and a family-friendly environment. The leaders are focused on the culture
and on maintaining it.
Discussion of obstacles to effective leadership focuses on the need to practice various leadership skills
in an atmosphere that encourages experimentation and tolerates mistakes. Organizational rigidity, lack
of opportunity for practice, uncertainty, organizational complexity, and inaccessible academic research
are all obstacles to effective leadership.
Arguments about the difference between leadership and management are presented. Leaders are
considered by some to be visionary and future oriented, whereas managers focus on day-to-day routine
activities (Table 1.2). The section concludes that effective managers often perform many of the duties
and activities ascribed to leaders thereby making the distinction between the two concepts somewhat
unnecessary.
a. Managerial roles
This section presents Mintzberg’s research on managerial roles and discusses cultural and gender
differences in those roles. Research has found that female managers work at a calmer pace and have
closer contact with their followers and where a more reflective approach is presented. The concept of
web structure is used to describe the style and structure used by female managers.
The key role of leaders in the creation and maintenance of an organization’s culture are discussed. The
processes used by leaders to shape culture are role modeling, setting up the reward system, hiring
decisions, and decisions regarding strategy and structure (Figure 1.1).
Applying What You Learn: Leadership Basics Focuses on leadership as a long-term journey rather
than a destination and emphasizes learning. Basic leadership factors include finding your passion,
learning about yourself, experimenting with new situations, getting comfortable with failure, paying
attention to the environment, and keeping a sense of humor.
The current trends and changes in the United States and many other Western organizations are described
with focus on the quality, empowerment, and participative management movements.
What do you do? The short scenario illustrates the ongoing challenges organizations and leaders face
in adapting to new leadership models that recommend participation, openness, and flexibility. Although
many organizations state such approaches as their practice or their goal, many continue to implement
more traditional models that may not fit well with some employees and managers. As a practical matter,
one leader, especially one who is not at the highest levels of an organization, cannot push for rapid
change. The most reasonable approach is to “nudge” for small changes, demonstrate their success, and
build on such success. In some cases, though, organizations and their leaders do not welcome change. If
there is not room for change, employees need to reevaluate the fit between them and the organization.
c. Barriers to change
Focuses on the difficulties faced by many organizations in moving toward new leadership and
management models. Increased financial pressures, focus on individuals, and absence of teams at higher
levels of decision-making, as well as the difficulty leaders have in giving up control after having been
trained in a top-down style for many years, are discussed as the primary barriers to change in
organizations.
A leader is a person who influences individuals and groups within an organization, helps them establish
goals, and guides them toward achievement of those goals, thereby allowing them to be effective.
Leaders are effective when their followers achieve their goals, can function well together, and can adapt
to changing demands from external forces.
4. Provide one example each of an effective leader and a successful leader. Consider how they
differ and what you can learn from each.
5. What are the obstacles to effective leadership? How have the nature and occurrence of such
obstacles changed in recent years? Why?
Organizations face considerable uncertainty that creates pressure for quick responses and solutions.
External forces, such as voters and investors, demand immediate attention. In an atmosphere of
crisis, there is no time or patience for learning. Uncertainty creates a vicious cycle that allows no
time for the learning that would help current crises continue. The lack of learning and
experimentation in turn causes the continuation of the crises, which makes the time needed to learn
and practice innovative behaviors unavailable.
Organizations are often rigid and unforgiving. In their push for short-term and immediate
performance, they do not allow any room for mistakes and experimentation. The rigidity and
rewards systems of many institutions discourage such endeavors.
Organizations fall back on old ideas about what effective leadership is and, therefore, rely on
simplistic solutions that do not fit new and complex problems.
Organizations develop a particular culture that strongly influences how things are done and
what is considered acceptable behavior. As leaders try to implement new ideas and experiment with
new methods, they may face resistance generated by the established culture.
The difficulty involved is understanding and applying the findings of academic research.
6. Based on your knowledge of the field of management and your personal definition of
leadership, how are management and leadership similar or different? How can the differences be
reconciled? How do these differences add to our understanding of leadership?
Management Leadership
Focus on the present Focus on the future
Maintain status quo and stability Create change
Implement policies and procedures Initiate goals and strategies
Maintain existing structure Create a culture based on shared values
Remain aloof to maintain objectivity Establish an emotional link with followers
Use position power Use personal power
7. What are the ways in which leaders influence the creation of culture in their organizations?
8. What are the elements of the emerging leadership styles? What are the factors that support such
styles?
The roles of leaders are changing demanding new styles of leadership that focus more on results than on
control (Figure 1.2). Increasingly, leaders give up many of their traditional managerial roles and focus
more on providing vision, guidance, and leadership. They allow employees to organize and plan
activities and even control their own work while sharing responsibility for the results with their leaders.
Some of the primary factors fueling theses changes include: demographic changes, employee
expectations, worldwide political changes, and increased globalization (Figure 1.3).
9. What obstacles do new leadership styles face in traditional organizations? How can obstacles
The leadership challenge for this chapter focuses the challenges people face when they move to a
leadership role. The dilemma is to how maintain existing relationships with those who used to be your
equals while establishing authority and fulfilling leadership roles. This is a common challenge that
many students face as they are promoted to supervisory positions, often over their friends or individuals
who are much older than they are. Some of the issues that students must consider are:
Establishing authority and hierarchy is necessary, but it is often overdone and exaggerated by
inexperienced leaders. Although followers must understand that the newly promoted person has
different roles and responsibilities, there is no need to completely separate from the group and become
overly autocratic, a mistake that many new supervisors make.
Things to avoid:
o Although maintaining good relationships is essential, trying to continue being “one of the
boys” is difficult. Some boundaries must be established.
o Overplaying the leader role. Becoming autocratic and heavy handed is not the solution and
likely to destroy productive relationships.
o Don’t pretend to know all the answers. Particularly in Western cultures, admitting to not
knowing something is fully acceptable for a leader. Rely on your team.
Materials needed: paper and pencil for students; use of board; flip chart.
2. Essentials (7 minutes)
Assign students to groups, or let them pick their own, and ask them to pare down the list to 7 to 10
characteristics. What do they consider essential? Which ones make or break a leader?
This is a pretty lively stage because chances are that they will not easily agree on what is essential, a
fact that is partly the point of this exercise.
Option: This exercise works very well as an in-class introductory activity, instead of students working
individually and in groups. The activity takes between 15 and 20 minutes.
Step 1: Solicit characteristics from students and record them on the board, developing a long list.
Encourage them to suggest behaviors and traits.
Step 2: Review each item on the list and ask students whether they consider it essential or optional and
delete those the class generally agree are optional. You are likely to get much disagreement. You should
keep any that the students think are essential or feel strongly about. This should result in a long list,
which is the goal.
This exercise is designed to help students develop a personal definition of leadership and understand
how their personal view of ideal leadership affects their assumptions and future behaviors as leaders.
The exercise can be used in a variety of ways, from a cooperative learning exercise as presented in the
text to an individual assignment focusing on only the first step.
Total time: Minimum 25 minutes; maximum time depends on number of students and groups.
Materials needed: Paper and pencil; use of board; flip chart can be useful for development of group
definitions and presentations.
Option: The personal list developed by each student can be used as a basis for evaluating what students
have learned in class and how their thinking has evolved, their assumptions have been changed or
reaffirmed. The lists can be collected by the instructor and handed back the last week of class.
Option: Groups can be assigned based on gender or other cultural characteristics to accentuate cultural
differences and focus discussion on the cultural elements of ideal leadership.
Option: Group presentations can be replaced by the instructor asking each group for their first, second,
third, and so forth characteristic in a round robin fashion until all items are recorded on the board.
Overall: This is a very simple exercise for both students and faculty. It can serve as a nice ice breaker
the first week of class and help point out the richness of concept and process of leadership and prepare
students for the broad diversity of topics and issues that will be discussed throughout the term.
As with Exercise 1.1, this exercise is designed to help students clarify their personal assumptions about
leadership. It can be used alone or in conjunction with Exercise 1.1. Using images to clarify ideal
leadership is generally appealing to students. Although the exercise has a group-discussion component,
the exercise is not designed as a cooperative learning exercise. Group discussions help students fine-
tune and clarify their personal definitions.
Ask students to pick an image/metaphor and list the implications of that metaphor for the role and
behavioral expectations of leaders. For example, an orchestra conductor is the undeniable leader of the
orchestra; nothing happens without his or her direction. He or she is in full control and often dictates the
actions of others. The organization, on the other hand, is fully synchronized and acts in total
coordination and unison. The head of the family is similarly in full control, although the sense of total
cooperation and focused action is lacking. The head of a family has responsibility for the emotional and
psychological well-being of members, a factor that is lacking from an orchestra. The issue of conflict is
also part of a family much more so than an orchestra.
Students are often very creative with their images. The instructor’s goal should be to guide them in the
understanding of the implications of the image they select.
Option: This step can be skipped to move directly to class-discussion, especially in small classes (under
25 students) where whole-class discussions are possible. Having small group discussions allows
students to fine-tune their images and think about the consequences.
Option: As with Exercise 1.1, discussion of cross-cultural differences in images of leadership is very
appropriate. Particularly, the diversity of images that are used in the United States can be pointed out as
resulting from the cultural diversity within the population.
Overall: As with Exercise 1.1, Exercise 1.2 is very simple and easy to execute. The development of
images triggers lively and interesting discussion among the students and makes this an ideal ice breaker
for the first week of class.
1. Long-term historical, political, and economic forces include such factors as:
The history of the organization if it has been around for a while
The national history, if relevant (for example, the organization may
have a long-standing positive or negative reputation)
Political factors (for example, the organization may be tied to a
particular political party or system)
Long-term economic factors (for example, the steel industry has
long-term economic factors to consider
Contemporary context
The first Gulf War
Conservative vs. liberals
The United States as the remaining superpower
Prior actions by Bill Clinton
Immediate context
The terrorist attacks of 9/11
The war in Afghanistan
The Iraq War
The Neoconservative agenda
The support and dissent from traditional allies
The conservative agenda
The concern of a legacy
How the task is defined (easy victory; welcome by Iraqis)
International goals
Domestic goals
Followers (voters on both sides of the political lines)
The 2008 U.S. presidential election
Overall: The Leadership Context exercise is a powerful way to focus students’ attention on the
importance of the leadership context instead of looking only at the leader characteristics.
Case summary
The case discussed David Neeleman founder of Morris Air, JetBlue, and most recently the Brazilian
airline Azul. JetBlue is one of the success stories in the U.S. airlines industry and Azul appears to be
following the same path. JetBlue has been very successful while breaking all the rules of the industry.
Its small size, dedicated staff, no-layoff policy, unusual routes, and willingness to innovate have allowed
it to achieve success. In spite of low prices, the airline pampers its customers with individual TV sets,
chocolate chip cookies, and outstanding service. JetBlue’s president David Neeleman relies on his
employees for ideas and innovation. The airline’s “can do” attitude and its reliance on innovation play a
great part in its success.
Focus on the customer, getting information from all sources, and maintaining a strong team spirit within
the company are the key elements of JetBlue’s culture. The company aims at pleasing its customers by
pampering them and addressing their needs. JetBlue also listens to its employees, tries to create an
egalitarian culture when participation is encouraged, and works on leaving the “we-they” attitude that
typifies management and labor in most company behind.
2. What role does the leader play in the development and maintenance of the culture?
Because JetBlue is still young, the impact of its founder, David Neeleman is still highly pervasive. His
entrepreneurial, high-risk approach to business is evident in all aspects of the company. He is present
and active in all aspects of the business. He serves as the formal leader, making key decisions, but he
also serves as a role model, through his interaction with customers, his willingness to listen to his
employees, his active engagement in the company, and his informal demeanor. The “image” of an
effective and engaged leader is further communicated from customers and from employee to employee
to reinforce his role and his power over the company. The company’s creativity and willingness not to
follow industry rules is also a reflection of Neeleman’s entrepreneurial spirit.
Chapter Overview
This chapter considers the cultural context of leadership at the national, small-group, and organizational
levels. After defining culture, four models of national culture are presented: Hall’s high- and low-
context, Hofstede’s five dimensions, Trompenaars’s dimensions, and the Global Leadership and
Organizational Behavior Effectiveness (GLOBE) research. The impact of group culture in terms of
gender and diversity is considered, and the causes and solutions to leadership differences based on
gender and other small-group membership are presented. The concept of developing a cultural mindset
is presented to provide leaders and organizations as a way of managing diversity.
Chapter Objectives
Define culture and its three Table 2.1 Exercises 2.1
levels and explain the role it Figure 2.1 through 2.3
plays in leadership What do you do?
Leadership Challenge
Apply Hall’s model of national Figure 2.2
culture to leadership situations
Apply Hofstede’s model of Table 2.2
national culture to leadership Table 2.3
situations
Apply Trompenaar’s model of Figure 2.3
national culture to leadership
situations
Apply the GLOBE model of Figure 2.4
national culture to leadership Table 2.4
situations
Identify the impact of gender Table 2.5 Exercise 2.4
on leadership Leading Change: Deloitte Exercise 2.5
Supports All Its Employees Self-assessment
2.3
Address how leaders can Applying What You Learn: Using Self-assessment
develop a cultural mindset Culture to Be Effective 2.1
Figure 2.5 Self-assessment
2.2
Present the steps organizations Figure 2.6
can take to become more What do you do?
multicultural Leadership in Action: Leadership
Based on Ancient Principles
The Leadership Question provides a starting point for discussing the role of culture.
Culture consists of the commonly held values within a group of people and includes norms, customs,
values, and assumptions that guide behavior (Table 2.1).
b. Levels of culture
Three levels of culture are identified. These are: national, ethnic or other cultural groups within a nation,
and organization culture (Figure 2.1).
Hall’s model is based on the communication context. Members of high-context cultures rely on context,
nonverbal cues, and situational factors to communicate. Those from low-context cultures focus on
explicit messages. Examples of each type of culture are provided (Figure 2.2).
Hofstede’s model of culture classifies cultures based on five dimensions (Table 2.1). Harry Triandis
further refined the model by adding the concept of tight and loose cultures, and the vertical and
horizontal dimension to individual—collectivism (Table 2.2).
What do you do? The scenario illustrates the challenges of leading a multicultural team where
members have different values and priorities and different approaches to work resulting in conflict and
discord. Although some the conflict may be related to individual differences rather than culture as the
group members think, culture may play a role in how each member sets priorities and how each prefers
to work. Providing cross-cultural awareness is a starting point to allow the group members to assess
where the origins of the conflict may be and moving toward using the differences as a strength rather
than as a source of conflict. Becoming aware that people behave the way they do partly because of their
values and culture, rather than to be disagreeable or because they are wrong, can help most reasonable
people adjust their reactions and responses. Cultural awareness training can help group members learn
about national and group cultural differences in values and can be a positive step in resolving the
conflict. It may also be helpful to train the group on conflict resolution methods that can help them put
their cultural knowledge to work.
The GLOBE research is the most current most extensive research on cultural dimensions and proposes
nice cultural values to help understand different cultures. The research suggests that culture impacts, but
does not predict, leadership behavior through people’s expectations—what GLOBE has labeled
culturally endorsed theory of leadership (CLT). It provides many refined dimensions to classify and
understand cultures: power distance, uncertainty avoidance, humane orientation, collectivism I—
Institutional, collectivism II—In group, assertiveness, gender-egalitarianism, future orientation, and
performance orientation.
Applying What You Learn: Using Culture to Be Effective outlines the key factors for managers to
build the culture of their organization. They include: clear definition of desired culture, sharing with
employees, adjusting the reward system, attention to details, and “walking the talk.”
Summarizes the various statistics that point to gender inequality in the United States and in other
countries.
Suggested reasons for gender inequality in leadership and in organizations are summarized in Table 2.5.
Factors that are likely to contribute to inequality include: challenges in balancing work life, persistent
stereotypes, and discrimination. Other factors that are mentioned but not likely to be the cause are:
gender differences in style and effectiveness, commitment to work, and level of education.
Leading Change Deloitte supports all its employees: Deloitte, one of the Big Four accounting firms, is
taking steps to increase the diversity of its employees, who are 92% white. CEO Barry Salzberg has
made diversity a major strategic focus. The company has broadened its recruiting base and has
implemented a program called Mass Career Customization that provides all employees, not just women
and minorities, with an opportunity to develop their own career path based on their needs and work-life
balance. Deloitte has received much recognition for the program.
The Leadership Question Revisited points out that there are some universal leadership ideals as
indicated by the GLOBE research, whereas others are culture-specific. Integrity seems to be one of the
universal desired leadership characteristics.
To address the challenges of managing a diverse organization successfully, leaders have to develop a
cultural mindset which is a way of thinking and an outlook where culture is taken into consideration in
deliberations, decisions, and behaviors, and organizations have to become more multicultural.
A cultural mindset is the basis for cultural competence since it focuses on how one thinks. Figure 2.5
presents the cognitive, behavioral, and skill-based elements of a cultural mindset which allows for the
adoption of a multicultural approach in organizations.
The key factors in becoming a multicultural organization are presented in Figure 2.6.
What do you do? The scenario presents a recruiting dilemma that many organizations face. When
looking for new employees, many organizations rely on existing employees to recommend people they
know. Although the practice appears logical because it allows organizations to hire people they know
1. What are the four models of culture, and how do they affect leadership?
The four models of culture are: Hall’s cultural context, Hofsted’s five cultural dimensions,
Trompernaars’s dimensions, and GLOBE. All models, in different ways, address cultural differences and
values that affect social and interpersonal interactions. As such, they all address differences in who
people consider leaders and what traits and behaviors they consider to be effective leadership. For
example, Hall addresses communication context differences. Leaders from high and low-context
cultures approach their followers differently. Similarly, Hofstede’s five dimensions all deal with cultural
values that may impact leadership. Trompenaars’s model and GLOBE were specifically developed to
address organizational and leadership settings.
2. How are the different models of culture similar? What unique contributions does each model
make?
All four models address key national cultural differences that affect people’s behavior. They all
therefore assume that culture has a potential to affect behavior. Hofstede is one of the most often cited
and oldest models of the role of culture in organizational settings. His five dimensions provide a clear
and concise way to comparing cultures. Trompenaars provides a clear focus on how national culture
may impact organizational settings. GLOBE is the most comprehensive model to date with extensive
research based in more than 60 countries. GLOBE and Hofstede share several cultural dimensions.
GLOBE, however, provides more precise research and finer differences among cultural groups. GLOBE
further provides detailed research about cultural values as they actually are and leadership ideals (CLT)
that show what people would like their ideal leaders to be.
3. How would the definitions of leaders and effectiveness differ based on the different cultural
values presented by Hofstede, Trompenaars, and the GLOBE findings?
Trompenaars’s research and GLOBE address this issue most directly. Trompenaars provides a model of
four cross-cultural organizational cultures that each includes a different type of leadership (Figure 2.3).
GLOBE outlines CLTs described in Table 2.4 and describes not only how leadership actually differs
based on cultural values within each country cluster, but how people within each culture have different
ideals of leadership.
4. How does group membership impact leaders and leadership?
In addition to national culture, a person’s cultural background includes various groups such as gender,
ethnicity, religion, or other groups. Each cultural group develops unique characteristics that have the
potential to affect leadership. For example, research about gender differences shows that there may be
persistent differences in how men and women lead. Similarly, even if the leader is not affected by his or
her group membership, others may perceive him or her differently based on such membership. For
example, women and minorities may not be as easily accepted as leaders or their competence may be
challenged.
5. What are the factors that contribute to the inequality of men and women in the workplace?
Table 2.5 summarizes the research on the suggested causes of gender inequality in leadership and in
organizations. The often cited causes include: gender differences in leadership and management style,
difficulty of balancing work and life, gender differences in commitment to work, gender differences in
education, stereotypes, and discrimination. Among these, challenges of balancing work and life,
A cultural mindset is a way of thinking and an outlook where culture is taken into consideration in
deliberations, decisions, and behaviors. It is the basis for cultural competence and cultural literacy,
concepts that are often used in organizations. A cultural mindset includes cognition—a way of thinking
(self-awareness, curiosity, including culture in problem-solving, adopting a multicultural lens), behavior
—the way people act (self-presentation, verbal and nonverbal cues, interaction, and addressing cultural
issues), and skills (interpersonal, communication, language) (see Figure 2.5).
The starting point to successfully becoming multicultural is a leadership with a cultural mindset. Other
factors include: accountability, proper recruiting, having role-models, education and training, research
and measurement, setting the right policy, and generally monitoring and implementing a supportive
culture (Figure 2.6).
As illustrated in many of the examples in the chapter, organizations where the leader has a commitment
to diversity are more often successful in becoming multicultural. Having a leader with a cultural
mindset is key because the leader not only makes the key decisions, but also role models desired
behaviors, sets the reward system, and shapes the culture of an organization. Without support from
leadership and without leaders who have a cultural mindset, organizations will have difficulty becoming
and remaining multicultural.
The leadership challenge for this chapter focuses on the impact of culture. The dilemma for the leader is
to balance culture, organizational needs, fairness, and legal standards. Some of the issues that students
must consider before making their decision are:
The Saudi culture. Saudi Arabia is a Muslim country where because of religious traditions and
requirements, women have practically no role in public life and business transactions. Women are
not only covered from head to toe when out in public, they are also often segregated from men.
Although these standards are not as strictly enforced on non-Muslim and Western women, they still
find their freedom highly restricted when traveling or living in Saudi Arabia. In addition to the
limited role of women, the Saudi culture is generally high-context, collectivistic, power and status-
oriented, ascriptive in that who you are is more important than your performance, and with a long-
term orientation. Students should be directed to do some research regarding the culture. Web sites
such as www.executiveplanet.com can provide a quick overview.
Legal requirements. Depending on the country, there may be clear antidiscrimination laws
protecting women and minorities. For example, antidiscrimination and equal opportunity apply to
all U.S. companies, regardless of where they operate. Other Western countries do not have as
specific legal requirements regarding discrimination. The argument that Saudi culture does not
welcome women may therefore, in and of itself, not be legally defensible. Managers are required, at
the very minimum, to uphold the laws of the country in which they operate.
Company interest. It is in the company’s best interest to have its best and most experienced
negotiator represent it. Sending an inexperienced person may be highly detrimental.
Given the complexity of these issues, a simple solution of is not likely to work. Sending the female
executive to Saudi Arabia may not be feasible, although many foreign women function well in those
environments. They are often treated as a “third gender,” neither male, nor quite female. Whether this
would work in this case depends on the existing relationship with the Saudi clients. Some possible
solutions may be:
Holding negotiations in another country, such as the United Arab Emirates, Egypt, or
Lebanon, which are all close to Saudi Arabia but not as restrictive concerning the role of women
and may provide a comfortable compromise.
Sending the female executive’s manager, if it is a male, along as the front person. She
could then provide “support” to her boss.
Hiring a local or third-party negotiator that would report to and work with the female
executive.
Powerpoints slides provide additional information about a further addition to the Hofstede’s
concept of individualism—collectivism proposed by Harry Triandis. The concept of Vertical and
Horizontal individualism—collectivism refines the dimension by introducing the issue of hierarchy vs.
egalitarianism. Vertical cultures are hierarchy based, whereas horizontal ones are egalitarian.
I have used this exercise as an introductory ice breaker in most of my culture classes or lectures. It is
simple and quickly illustrates the power of one’s cultural lens.
Total Time: 5 to 20 minutes (5 minutes to draw the map; another 5 to review or longer if you have
students work in groups).
Instructor preparation: You will need to have a world map available either in hard copy or online to
show students when they have completed their task.
Instruct the students to draw the 7 continents, or as many as they can, on a sheet of paper.
When they are done, show them the world map you have prepared. Discuss the following:
You can use a 1 to14 scale for them to score themselves—1 point for getting the continent, another for
placing it correctly.
Most U.S. students have limited knowledge of geography and many are not able to place all
seven continents, some cannot name all seven.
2. Where did you start your map? What’s the first place you drew? What continent is in the
center? Why?
Most students start with their own continent/country and place it in the center of page. I often have non-
U.S. students and there are clear differences among them regarding where they start and what is in the
center, allowing for a simple demonstration. My students have primarily been from the Northern
hemisphere, so the occasional Australian or other student from the Southern part of the globe provides
an additional perspective.
3. What does your map tell you about your knowledge of the world?
The way students draw their map reflects how they see their world with their own continent/country at
the center. Because many cannot accurately draw the map, their lack of knowledge of the physical
geography is likely to be matched by a lack of cultural knowledge. The exercise demonstrates the
limited world view that many of us have.
I often have students who are expert world travelers, for example military personnel or expats.
They often perform better at this exercise further demonstrating how travel can help in gaining a world
view, at least to some extent.
Total time: 20 to 30 minutes (10 minutes to complete exercise, individual 10–20 minute discussions to
review implications for leadership).
Discussion Points
The key to this exercise is to explore the differences without considering what is right or wrong.
Students must, however, be encouraged to explore their own cultural values and consider their
implications for assumptions and expectations of leaders. The cultural values that may be unconscious
can become obvious by becoming aware of the assumptions of other cultures.
What are the key assumptions in my culture that may guide what I expect of leaders and how they
should behave?
How would such assumptions work or not work in other cultures?
Which assumptions from other cultures would be hardest to work with? Why?
Overall: The proverb exercise is a simple and powerful introduction to revealing cultural assumptions
and their potential impact on leadership and to providing examples for the various cultural dimension
models discussed in the chapter. Being aware of the presence of cultural differences is the first step
toward cultural competence.
Narian Bridges is a very engaging cross-cultural role play designed to allow students to experience the
challenges of interacting with different cultures. Although no out-of-class preparation is needed for the
students, the instructor needs to decide on team assignments prior to class. You can expect considerable
frustration on the part of U.S. teams and lively discussion about how to deal with cross-cultural
differences and conflicting goals.
Materials needed: Access to 2 separate rooms (quiet hallway or sitting area) to allow for separate
planning for each cultural group.
Instructor’s preparation: The instructor needs to decide on team assignments prior to class. The only
restriction is that Mr. Dafti has to be male; all other roles can be assigned to either male or female
students. Selection of students to play Narian or U.S. roles can be made randomly or based on each
student’s personal characteristics. For example, students who show “typical” American characteristics,
such as assertiveness and directness, can be assigned to the U.S. team to emphasize those roles, or they
can be put in Narian teams to allow them to experience a different culture.
Both the Narian and U.S. team can function with just two members. Depending on class size, some
teams may have three members whereas others only two. Keeping the Narian and U.S. teams at no more
than three allows for all members to participate. Students assigned to teams larger than three are
unlikely to have the opportunity to role play.
For each role-play group, assign:
Narian Team U.S. Team
Mr. Dafti (male student) U.S. team leader
Naran Team member 1
Touran (optional) Team member 2 (optional)
Call students’ names and pair them up with their Narian and U.S. role play groups before you provide
further instructions. There is no restriction on the overall number of role play groups. Provide students
with role play instruction sheets appropriate for their role (see end of this chapter).
Preparation: Separate the Narian and U.S. teams by sending U.S. team to another room. Review
instructions on the role play sheets with Narian and U.S. teams separately, reminding each group about
basic role-play rules:
Stay in the general guidelines provided by your role
Improvise as needed while keeping goal in mind
Practice role for a few minutes alone or with your team
Provide rich role play so that others can respond to you
Be as creative as you feel comfortable; some of the students will play roles more intensely than
others; differences are normal
In helping each group of students prepare for their roles while answering their questions, the instructor
can provide them with the following information.
Narian teams: The description of Narian culture matches that of a high power distance, feminine,
vertical collectivist culture with moderate uncertainty avoidance. The culture has many elements of
middle-eastern cultures. Students find the highly differentiated but equal gender roles both surprising
and comfortable. Issues that need to be emphasized in preparing students to role play Narians are:
U.S. teams: Initially, the U.S. team members have an easier task because they are role-playing a culture
with which they are familiar. The U.S. culture is moderate-to-low power distance, masculine,
individualistic, and tolerant of uncertainty. Issues that need to be emphasized in preparing students to
role-play U.S. team members are:
Remember that your goal is changing the contract and that your success depends on getting Dafti to
agree with the changes
Appear confident and knowledgeable
Rely on your relationship with the two Narian associates, Naran and Touran, and on your
information about Narian culture
Remember that the Narians speak English well and are familiar with U.S. culture
Once both groups are prepared (approximately 15 minutes), invite the U.S. team back and inform them
that they have a maximum of 20 minutes for the role play. Each group of U.S. and Narian teams can sit
in clusters to start their interaction.
Overall: The Narian Bridges is a powerful role-play that works even with students and instructors who
have limited experience at role play or cross-cultural situations. The issues at play tie in directly with the
cultural dimensions presented in the chapter.
In the United States, as in many other, but not all, cultures, the images of leadership are closely tied to
typical male behaviors. For example, leaders and males are supposed to be aggressive, dominant, and
competitive. Females on the other hand are typically expected to be submissive, quiet, and cooperative.
The female gender roles are generally inconsistent with the traditional views of leadership.
Although some students are aware of the link between gender and leadership, many assume that
such links do not exist any longer. This exercise is designed to explore the relationship between gender
roles and leadership.
Overall: This relatively simple exercise can be a powerful demonstration of the strength of gender
stereotypes. Focus on the future and changes in our views of leadership allow for a view of the future
and the role of culture.
Sexual harassment is considered a form of discrimination in the United States (although not in many
other countries). As such, it is one of the potential reasons why women do not achieve their full
potential in organizations. The exercise is designed to provide clarity regarding what sexual harassment
is. This is a sensitive topic and always engenders much heated discussion, sometimes some hostility.
Although students can be assigned to complete the exercise at home, classroom discussion, facilitated
by the instructor is essential to understanding the concept.
Procedure: You can assign a few or all of the scenarios. Each presents different cases, some clear and
some not so clear. Students can review the scenarios prior to class or during class, then be assigned to
small groups to further discuss them, before discussing them in class.
Scenarios
1. Clear quid-pro-quo situation involves grade in exchange for relationship. This is a simple and
undisputable case of sexual harassment with one person, in this case an instructor with power,
demanding a relationship from another with less power.
2. This is a case of harassment or “stalking” (as some students may call it). While clearly not
sanctioned by an organization and not involving a differential power, the unwanted attention of a sexual
nature, that makes the other person uncomfortable, can be considered harassment. This scenario
illustrates that harassment does not require a formal institutional setting, unequal power or quid-pro-
quo. Unwanted advances that make a person uncomfortable are considered harassment.
3. This is a case of sexual harassment. One person is the target of ridicule and unwanted action of
a sexual nature by co-workers. This case illustrates that men can also be the victim of harassment and
that there does not need to be a boss–employee relationship. In this case, co-workers are creating a
hostile work environment for Ricardo. Their actions should not be tolerated by the organization and they
provide Ricardo with a clear case of harassment.
4. While this case shows physical contact between a boss and an employee, it does not constitute
harassment. The physical contact is not unwelcome and is well accepted and understood by both parties.
A simple act of friendship, such as a hug, does not constitute harassment, unless it is unwelcome or
makes other people uncomfortable.
5. This is a complex situation that does not clearly involve harassment. Because the relationship
was consensual and both parties understood the challenges and consequences, it is not harassment. Two
employees engaged in a relationship that did not work out; both are uncomfortable with the aftermath;
one is complaining. Although their inability to work together is based on their past relationship, there is
no intentional or unintentional harassment. The organization can hold both of them responsible and
should take action to help solve the situation (e.g., move one or both to other departments or locations).
However, this situation is no different than two people simply not getting along based on various
personality differences. This scenario presents an example of why many organizations have a “no
dating” policy. Although such policies appear reasonable, they are difficult to enforce and maybe even
not reasonable considering how much time we all spend at work.
6. Although Nadine’s behavior may be somewhat sexual, neither she, nor her co-workers are
uncomfortable with their relationships. This does not constitute harassment. However, should other
people, for example people visiting the office, complain about the bantering, the situation may approach
a hostile environment.
7. Greece is a warm culture where physical contact between men is fully acceptable. Men often
walk hand-in-hand and embrace freely to express their friendship and affection. Such close physical
contact between men is uncomfortable and considered inappropriate in some other cultures. It is likely
that Nicholas was acting in accordance to his culture’s norms and not paying attention to U.S. norms.
While his actions made his co-workers uncomfortable, his intentions were most likely not what is
believed. This case illustrates the importance of being aware of basic cultural differences when
interacting with different cultures.
Overall: The scenarios are engaging and engender lively discussions. Instructors must be very careful
about monitoring their students and preventing the discussion to degenerate into sarcastic comments and
jokes and, in some cases, harassment of others who disagree. If the class does get out of control (it has
happened to me once), it can serve as a “teachable moment” to show the impact of a hostile
environment on expression of ideas and learning.
This self-assessment is designed to enhance students’ awareness of their own cultural background and
its potential influence on them. There are no right or wrong answers. It is a good assignment for students
to complete after reading the chapter and prior to coming to class for the discussion of culture. Because
many students come from multiple cultural backgrounds, they can be asked to identify their primary
background as well as others they believe are significant.
Course Assignment
The self-assessment can be used as a course assignment asking students to apply the concepts they
learned in the chapter to analyze and understand their own cultural background. They could use any or
all the cultural values model and identify the values that they recognize and provide examples of each.
For example, a student with a Mexican background would address the importance of family and
community, the authority of male parents, recount stories they have heard that may reflect the
importance of community and respect of authority. They could also address to what extend they
personally rely on those values and how their own behavior may reflect them.
If students are from several different backgrounds, this self-assessment can help them identify
potential areas of agreement or conflict among the various cultural values they hold. In some cases,
students are keenly aware of the differences (e.g., traditional versus modern values; role of women, and
so forth). In other cases, this self-assessment may help them identify reasons why some of their values
are either very strong or less so.
Option: Students can be grouped during class and asked to compare their cultural backgrounds and how
they may influence their thinking and behavior. One alternative would be to create the teams based on
similar backgrounds.
This self-assessment helps students evaluate the degree to which they have a cultural mindset. There are
no right or wrong answers. It should be assigned after reading the chapter, and preferably even after
class discussion, about the topic to assure that students have a solid understanding of the concepts
before completing the assignment.
Course Assignment
Having an indication of the degree of cultural mindset can provide students a springboard for
identifying goals for change and improvement. They can be asked to review each of the questions on the
questionnaire and identify areas they may want to target for development. The assignment can serve as a
reflection and action plan to help students develop a stronger cultural mindset. The depth and richness
of their reflection, analysis, and action plan can be the basis for grading.
The self-assessment can be assigned to be completed before or after class. It helps students explore their
personal views of women in various settings and helps them become aware of how such views may
impact them in the workplace. For example, although they may perceive women to have a right to work,
they also may believe that women’s primary responsibility is to their family. Such potential
contradictions can become the basis for self-awareness.
Course Assignment
The self-assessments can be used to develop students’ self-awareness of their attitudes toward women
and begin to address what impact such attitudes may have in their work relationship or in their role as
leaders. Although one may expect male students to have more negative attitudes, female students may
also hold values about women that may prevent them from succeeding or from helping other women
succeed.
Case summary
The case presents the leadership and culture of the Tata group, India’s industrial conglomerate which
includes an informations system, steel, energy, consumer goods, and hospitality companies inside and
outside of India including Jaguar, Land Rover, and Daewoo Motors. The company is family-owned and run.
The leadership was recently transferred from Ratan Tata who led for 21 years to Cyrus Mistri. The strength
of the management of Tata came to light during the 2008 terrorist attack on one of the Tata-owned hotels in
Mumbai where employees selflessly helped trapped guests escape. The Tata group emphasizes cultural
diversity and aims at marrying Western capitalist principles with ancient traditions.
The Tata family and the company’s top leadership are Parsi’s who are related to Zorastrians, a religion that
dates back more the 2,500 years to ancient Persia. Zoroastrians are still practicing in parts of India and
modern Iran. Parsi cultural values include integrity, hospitality, humility, kindness, and selflessness. These
values are present in the leadership of Ratan Tata who is known for his humility, tolerance, and low-key, but
strong leadership.
Within India, the Tata group heavily recruits from rural areas where people still hold the traditional values
that it emphasizes. However, a majority of the company’s business is outside of India. Therefore, Tata
focuses on cultural and global diversity as one of its strengths. The fact that India is a highly diverse culture
and the owner has strong cultural values both have influenced the emphasis on culture and diversity.
While the cultural values are unique, Tata has successfully married Western business practices and ancient
Indian principles. Many of the latter are consistent with current leadership theories such as those presented
in Chapter 6, particularly servant leadership and authentic leadership. Tata is not just an Indian company; it
is a global conglomerate. The principles it relies on have already worked in non-Indian cultures and
therefore are likely to be transferrable to non-Indian companies.
Your culture focuses on harmony and respect for tradition and authority. You are taught from very early in
life that disagreeing with others is rude and a sign of selfishness. Differences in points of view are expressed
very gently and in an extremely roundabout way. As a result, business discussions are often veiled and
lengthy. Leaders and bosses do not discuss the details of business deals. Even major contracts operate on a
handshake from the leaders and there have been many conflicts with Western companies over the need to
draft precise legal contracts. Narians find this aspect of Western business insulting and accept it very
reluctantly.
You come from an old aristocratic Narian family with close ties to the monarchy. You have received your
higher education in Europe and Austria. As is the case with many wealthy Narians, you have traveled
extensively throughout the world and are very knowledgeable in the cultures and customs of European
countries. Your family spends a good deal of its time in Europe every year, and your two daughters are
currently going to college in France and Switzerland. However, you have less familiarity with the United
States, as you have only been there on two official trips.
Although you are aware of the importance of the United States to your country’s development, you are not
very fond of their presence in Nari. You would prefer working with Europeans whom you find more
cultured and more “civilized.” The King, however, would like closer ties with the United States and has
asked that U.S. companies be given every possible consideration. Americans seem to you to be rude, pushy,
and unruly and lacking proper respect for tradition and authority. Your dealings with U.S. companies have
led you to believe that their eagerness for contracts with your country often clashes with your culture and
way of life. However, the construction company you have been working with on the bridge project has, so
far, been easy to work with, and you have found the young engineer in charge of the project, whom you
have met once at a cocktail party, to be charming.
The bridge project is particularly interesting to you because one of the bridges that are planned is located
near a number of historical and religious sites and its placement and design need to be in harmony with the
environment. Therefore, you have personally made several key decisions regarding that one bridge. You are
aware that the U.S. construction company is not happy about your choices, but that does not concern you as
you believe that their role is to implement the wishes of your government. You have already made up your
mind based on the needs of your country. Naran and Touran have been instructed to carry out your wishes
and work on the details of the plans.
The head project U.S. engineer has asked for a meeting, and you are welcoming the opportunity to get to
know him/her better, particularly in light of your positive first impression and your two associates’
friendship with him/her.
During this meeting, your goal is to solidify the social relationship that is essential to a good business
relationship.
Your culture focuses on harmony and respect for tradition and authority. You are taught from very early in
life that disagreeing with others is rude and a sign of selfishness. Differences in points of view are expressed
very gently and in an extremely roundabout way. As a result, business discussions are often veiled and
lengthy. Leaders and bosses do not discuss the details of business deals. Even major contracts operate on a
handshake from the leaders and there have been many conflicts with Western companies over the need to
draft precise legal contracts. Narians find this aspect of Western business insulting and accept it very
reluctantly.
You are both from the higher levels of Narian society. You have traveled extensively around the world and
are both U.S.-educated with a BS in Engineering and a Masters in Business. Like many young Narians, you
find the excitement of the West, particularly the United States, appealing. You have many American and
other Western friends, and you enjoy the openness and relaxed interactions that you have with them. You
have a good relationship with the U.S. project head whom you have met on a number of work and social
occasions.
In spite of your interest in the West, you remain Narian at heart and you have no ambivalence about your
loyalties to your culture and country. The focus on harmony and civility in your culture remains a key focus
for you. Like all Narians, you have a strong respect for authority, particularly for Mr. Dafti who has been a
mentor for the two of you. You also know his family very well.
You are both aware of the potential problem with one of the bridges. The head U.S. engineer has mentioned
it to you. However, you have complete faith in Mr. Dafti’s skills as an engineer and a manager. You have
found the U.S. construction company’s insistence on change irritating and have interpreted it as a typical
sign of Western impatience and lack of knowledge of Nari. You have tried to explain the reasons to the U.S.
engineer without being rude, but you are not sure that you were able to get through. You are welcoming the
opportunity for Mr. Dafti to get to know the head project engineer in order to establish better relations. Your
role as Mr. Dafti’s associates is to hash out the finer details later.
During this meeting, your goal is to solidify the social relationship that is essential to a good business
relationship. You also want to avoid any potential conflict that may jeopardize Mr. Dafti’s trust of the new
U.S. associates.
The Narian Bridge Project is key to your company’s success. Although your company has done a lot of
business all over the world, this is the first time it has been able to win a contract in Nari by beating several
European firms in what appeared to be a secret, very confusing negotiation process. You are still not sure
why you were awarded the contract, but are confident that you can perform.
You have been with your company for eight years. As a result of your focus on international management in
your MBA, your excellent technical skills, your outstanding performance, and your interest in foreign
assignments, you have been put in charge of the key Narian project. You have already spent three successful
years overseas, six months of which were spent in another middle-eastern country. You have been in Nari
for two months and have very much enjoyed your stay. The culture is very warm and you have made friends
with many young Western educated Narians who seem to share many of your values. You have even been
trying to recruit several of them to leave Nari to join your firm, but have so far been unsuccessful.
You have instructions from your company to finalize the details of the bridges. Particularly, you need to
change the design on one of the bridges. Although you have not had the opportunity to go to the site, your
team has. Their analysis, and you agree with it, clearly shows that the location selected for one of the
bridges and the design that has been proposed is unworkable. You are proposing to move the location by
only three miles and build a much simpler and more functional bridge. Unless you can change the design,
you will not be able to complete the project.
Your associates have also been in Nari for more than six months. Like you, they speak a few words of
Narian and have found the culture to be welcoming. Their background is more technical and they have the
expertise to evaluate and change the design more than you, whereas you have expertise in international
negotiations.
You are very optimistic about being able to achieve your goal of reaching a clear final agreement. You have
had the contracts with the final changes drafted by your lawyers and reviewed by a Narian attorney. You
have them ready for Mr. Dafti. You have met Mr. Dafti once before and found him to be charming. You are
close friends with his two associates and, given their background, education, and your conversations with
them, you know that they are aware of the location problem. Although you have not been able to get a clear
commitment from them, you think that they will support you. You were granted the meeting with Mr. Dafti
within days of requesting it. You are ready to do some business!
Your goal is to obtain final agreements as soon as possible, including changes in design of that one bridge,
and succeed in this contract in the hope of continued cooperation.
The Narian Bridge Project is key to your company’s success. Although your company has done a lot of
business all over the world, this is the first time it has been able to win a contract in Nari by beating several
European firms in what appeared to be a secret, very confusing negotiation process. You are still not sure
why you were awarded the contract, but are confident that you can perform.
You each have been with your company for more than five years. As a result of your excellent technical
skills, your outstanding performance, and your interest in foreign assignments, you have already been
assigned to several foreign countries as technical advisors on a variety of projects. You both tend to spend a
limited time in each country, but you have gained considerably successful experiences. Nari has been one of
your longer assignments. You have been here for more than six months and have picked up some of the
language. You have found the culture to be welcoming. You have made friends with many young Western
educated Narians who seem to share many of your values.
Your role has been to hash out the technical details, and, in that capacity, you have worked with several
Narian engineers and have met Naran and Touran on many occasions. Your analysis clearly shows that the
location selected for one of the bridges and the design that has been proposed are unworkable. You have
proposed to move the location by only three miles and build a much simpler and more functional bridge.
Unless you can change the design, you will not be able to complete the project. Your attempts at discussing
the problem with your Narian counterparts have not been successful. You hope that the new head U.S.
engineer can negotiate the change during an upcoming meeting with Mr. Dafti.
During this meeting, your goal is to support the head U.S. engineer to obtain final agreements as soon as
possible, including changes in design of that one bridge and succeed in this contract in the hope of
continued cooperation.
Your team’s task is to list the typical personality traits and behaviors associated with the male gender
roles in the United States.
Your team’s task is to list the typical personality traits and behaviors associated with the female gender
roles in the United States.
Characteristics of leaders
Your team’s task is to list the typical personality traits and behaviors associated with traditional leaders
in the United States.
Chapter Overview
This chapter presents an overview of the history of the field of leadership by dividing it into the three
eras of trait, behavior, and contingency. It also reviews the early theories of leadership with a focus on
contingency models that constitute the foundation of modern leadership. The following models are
considered: Fiedler’s Contingency model, the Normative Decision model, Path-goal theory, attributional
models, substitutes for leadership, and Leader-Member Exchange.
Chapter Objectives
Figure 3.2
Path-Goal Theory
Leading change: Jim
Goodnight of SAS
Substitutes for Leadership
Table 3.5
Leader-Member Exchange
Figure 3.3
Table 3.6
Self-assessment 3.3
Chapter Outline
The Leadership Question presents the age-old leadership questions about whether leaders are born or
made and what may be some key characteristics of leaders.
A review of the methods and results of the early scientific approach to leadership focused on identifying
leadership traits is presented. The results of more than 50 years of research indicate that, although some
traits are correlated with leadership, no trait or combination of traits can be used to identify leaders.
Elements of the currently dominant contingency approach to leadership are presented. They include:
There is no one best way to lead.
The situation and the various relevant contextual factors will help determine which style or
behavior is most effective.
People can learn to become good leaders.
Leadership makes a difference in the effectiveness of groups and organizations.
Both the personal and situational characteristics affect leadership effectiveness.
2. Early Theories
i. Leader’s style
The Least Preferred Co-Worker scale (LPC) is presented as the measure of leader style in the
contingency model (Table 3.1).
Task-motivated/low LPC individuals are described as being primarily motivated by task
accomplishment.
Relationship-motivated/high LPC individuals are described as primarily motivated by good
interpersonal relationships.
The socio-independent/middle LPC individuals are described as generally being unconcerned
with others’ opinions.
Applying What You Learn: Putting the Contingency Model to Work presents the Leader Match
Concept which is the training method based on the contingency model. The focus is on learning to
recognize the various elements of situational control and on adapting the situation to match the leader’s
style. Fiedler assumes that the leader’s style is stable and not easily changeable; however leadership
c. Path-Goal Theory
i.The framework
The path-goal theory of leadership is presented with focus on the role of the leader to clear
paths for subordinates to accomplish goals. The exchange between the leader and followers
centers around this obstacle removal role and the exchange of guidance or support from the
leader for performance and satisfaction from followers.
The two central hypotheses of the model are discussed. These are: when the task is
structured, the leader’s supportive behavior leads to follower satisfaction, whereas when the
task is ambiguous, the leader’s structuring behavior leads to satisfaction.
Leading Change Jim Goodnight of SAS has built a company based on long-term thinking and taking
care of employees and customers. He believes that the company needs to remove day-to-day challenges
to allow employees to do their job. He sees the role of the leader as the facilitator of the creative
process.
What do you do? presents the case of a new manager whose team members perform well, but do not
seem to rely on the manager. It is a textbook case for the Substitute for Leadership theory. The
employees are experienced, work away from the office, and perform well. All are factors that provide
leadership substitutes. Although the tendency of many managers would be to push for more contact, this
may be a good case of “not messing with success.” You should establish one-on-one connections and
establish trust to assure that team members know them can rely on you and on one another, and then
focus on strategic issues and on supporting the team members.
e. Leader-Member Exchange
i. The Framework
The LMX model (vertical dyad linkage) is presented with the focus on the impact of existence
of in-groups and out-groups on organizational performance and leadership effectiveness
(Figure 3.3). The three stages of development of the relationship between leaders and followers
are described (Table 3.6).
The effect of culture on in-group membership is presented. In many cultures in-group
membership is assumed to be based on performance. In collectivistic cultures such Malaysia
and many middle-eastern countries, in-group membership tends to be based on family and clan
membership.
Leadership Question Revisited clarifies the research findings that leaders are not born and that
leadership is much more than a collection of traits. Leaders are made from experience and from the
interaction of individual traits with contextual factors.
1. What are the similarities and differences between the trait and behavior approaches to
leadership?
Both the trait and the behavior approaches are looking for simple explanations of what defines
leadership and leadership effectiveness. Both approaches are focused on the leader. The trait approach
seeks to identify leader traits that differentiate between leaders and followers and that allow for
identification of who is an effective leader. Although the research identified some traits, it was generally
not successful in identifying one or a set of trait that define leaders.
The behavior approach is also focused on the leader, but considers behaviors rather than traits.
The advantage of behaviors is that they are more easily observed and measured and can be taught. The
The contingency approach to leadership states that understanding leadership requires consideration of
both the leader and the leadership situation. There is no single best way to lead and what makes a leader
effective depends on the characteristics of the leadership situation. For leaders to be effective they need
to match the situation either by having different traits, using different behaviors, or by changing the
situation.
3. Define the leadership and situation factors included in Fiedler’s Contingency Model. What are
the primary predictions of the model?
The leader characteristic in Fiedler’s model is the style of the leader, either task- or relationship-
orientation as measured by the Least Preferred Co-Worker scale. The leader’s style indicates his/her
primary motivation and cannot be changed.
The situational characteristics are, in order of importance: the leader-member relations, the task
structure, and the position power of the leader. They are combined into situational control which
indicates the degree to which leaders have control over the leadership situation.
The model states that leadership effectiveness is a function of the match between leader’s style
and situational control. Leaders who are task-motivated are most effective when they have either high or
low control. Leaders who are relationship-motivated are most effective when they have moderate
control. Because leaders cannot change their style, nor should they according to Fiedler, they must learn
to change the situation to fit their style.
4. After assessing your own style, interview several people with whom you worked to determine
whether their perception match your score based on the LPC.
Students should focus on asking about how they behave under stress and in different situations rather
than ask others to fill out the LPC scale for them.
5. Provide examples for the situations in which each of the major decision styles of the Normative
Decision Model would be appropriate.
Autocratic styles are most effective when the leader has high expertise, little time, and the group is
supportive and likely to agree with the leader’s decision. Furthermore, if followers cannot agree on a
solution or course of action, the leader can use an autocratic style of decision making.
Consultation should be used when followers’ support is essential in accomplishing the goal,
there is time to consult, followers can agree on a solution, or when the leader does not have the
necessary information or expertise.
Group decision making should be used when there is time and followers work well together
and can agree on a decision.
6. Provide examples of how the Path-Goal Theory of leadership can be used to improve
leadership effectiveness.
The role of the leader according to Path-Goal is to remove obstacles that block the followers’ path to
accomplishing goals. If the goal is unclear, the leader needs to provide structure. If the task is
uninteresting and boring, the leader needs to be considerate. The leader must understand the needs of
followers and what motivates them.
7. How does the LMX Model differ from all the other contingency theories of leadership?
8. What are the positive and negative impacts of substitutes on leaders and organizations? Provide
examples.
Substitutes for leadership can be used to improve the effectiveness of the leader and to free his/her time
for other tasks. Substitutes can be very positive if followers are able to do much of their tasks without
close supervision, or if the group provides sources of support and motivation. In the most positive
situation, substitutes can empower followers to do their job without having to constantly rely on their
leader.
In the most negative situation, substitutes can undermine the leaders’ ability to lead and guide
followers. If the group acts against accomplishment of goals, if the organization does not provide the
leader with enough power or resources to influence the group, if there is so much physical distance and
little contact to maintain close group cohesion, the leader will lose his/her ability to influence the group.
9. How can leaders use the LMX Model in improving their effectiveness?
The relationship with followers is a natural part of leadership as is the formation of in- and out-groups.
These can be used productively by assuring that membership in the in-group is fluid and based on
performance. Leaders should actively seek out new members and have different in-groups for different
situations and tasks. They also should avoid highly differentiated groups where the out-group members
feel highly disadvantaged compared to those who are in the in-group. Leaders should also be mindful of
the role of culture when forming in-groups.
10. Compare and contrast the contingency models of leadership. How do they each contribute to
our understanding of leadership?
Leadership Challenge
This challenge is related to the role of culture in determining in-group membership. India is a
collectivist culture where people are close to their family and clan members and trust them implicitly
Leader training:
The exercise starts with the instructor training the selected team leaders either before class or at the
beginning of class. The leaders have to be trained in wolf-making without their group being present.
Leaders can be trained by demonstrating wolf-making, sharing written instructions with team
leaders, and allowing them to make a practice toy with the instructor.
Provide each team leader with their Leader Style instruction sheet.
Remind them that the Leader Style instructions are confidential and that they should not share them
with their team or with other team leaders.
Remind leaders that they should not provide their team members with the written instructions for toy
making, but rather, that they should train them on how to make the toys. This step forces the leader
to interact with followers rather than simply handing out the written instructions.
The production run ends after 15 minutes. Instructor and assistant(s) check quality and count production
of each group.
Ask each team leader to describe their style and express their views. Focus class discussion around
issues of differences among the leader behaviors and styles and their effect on subordinates’ satisfaction,
productivity, and quality.
Overall: The exercise provides a vivid demonstration of the different leader behaviors and potentially of
the difficulty and challenge leaders face when they attempt to change their behaviors.
Scenario Solutions
Centralizing Purchasing
1. What type of problem is it?
Yes; some decisions regarding both process and outcome are clearly better than others.
Maybe, although individual managers may have other information that, at this point, is not available to
the manager.
Yes; acceptance and buy in of all individual managers are absolutely key.
No; managers are used to independence and autonomy, they can drag their feet forever and sabotage any
decision they don’t agree with.
Is there conflict among subordinates (are they cohesive) regarding the problem?
Probably yes; the larger facilities would like more autonomy than others.
The leader does not have all the information (AI is eliminated).
Subordinates have enough information and expertise and quality is important (CII and GII are
acceptable).
Quality is important, leader lacks information, problem is somewhat unstructured, and interaction
among subordinates is important (AI, AII, and CI are eliminated).
Subordinate buy-in is essential (AI, AII, and CI are eliminated).
Buy-in is important and subordinates are likely to disagree over solution; interaction among them is
encouraged (AI, AII, and CI are eliminated).
GII, which applies to group decision and requires involvement of the group in decision making, is the
acceptable decision style. With some management of process and egos, CII may also be an option,
especially if managers cannot agree on a solution after extensive discussions.
Why?
The subordinates (managers in this case) have power and information and share in the organization’s
goals. Their expertise and buy-in are key to a successful decision.
AI, AII, CI which apply to group decision, but involve leader making the decision alone, are not
acceptable.
Why?
The managers can easily sabotage the outcome through various direct and indirect means. The potential
change in the purchasing process affects their autonomy and constitutes a major change for them. Such
a change cannot succeed without their buy in.
Individual decision
Yes; the leader and the assistant know the job requirements and the candidates.
Yes; previous interns have been good and the position is temporary.
Yes.
No.
All styles are acceptable in this case. AI and AII are more efficient ways of making the decision. DI is
probably the best style.
Why?
The assistant has all the information and the expertise. Delegation of the decision would free up the
leader’s time and provide a growth opportunity for the assistant while guaranteeing a quality decision.
There really are no unacceptable styles, although group decision in this case would be unnecessary, and
inefficient.
Not really; the leader has the power to make the decision.
Is there conflict among subordinates (are they cohesive) regarding the problem?
Yes; there is no agreement as to who should stay and who should move; there are also individual
differences within departments.
AI, AII, CI are likely to be the best styles in this case. The leader needs to make a final decision.
Why?
The leader has all the necessary information and expertise; there is a genuine time pressure,
subordinates are not likely to agree on one solution although they will accept the leader’s decision. CI
may not be viable given the time pressure.
Why?
Group decision making is inappropriate given that subordinates conflict on the desired outcome and
given the time pressure to make a quick decision.
These instructions are important to assure that students complete the scale properly.
The score is interpreted as follows:
If your score is 73 or above, you are a relationship-motivated (high-LPC) person.
If your score is 64 or below, you are a task-motivated (low-LPC) person.
If your score is between 65 and 72, you are a socio-independent (middle-LPC) person.
Relationship-motivated/high LPC
The students sometimes have trouble making the jump from describing another person to describing
their own style. It helps to point out to them that their perception and description of their LPC is a
reflection of their motivational preferences.
Option: The self-assessment can be used as the basis for a group exercise. Students’ self-assessment can
be used as the basis of class discussion about the various aspects of the contingency model.
Total time: Minimum 35 minutes in class (15 minutes for completing self-assessment, 20 minutes for
group discussion); depends on the number of teams (5 minutes per team)
Materials needed: Paper and pencil; board or flip chart can be useful.
Overall: This exercise, used as an individual assessment or as a group exercise can provide a hands-on
conclusion to the presentation of the contingency model. Given the complexities of the model, such
applied focus is very helpful to most students. In some cases, the situations described by the students do
not support the predictions of the model. I have used those situations as a springboard to presenting
other leadership theories such as the normative decision model, the LMX, or transformational
leadership, pointing out that no one theory or model will fit all situations.
Overall: Students tend to find this assessment to be very informative. Although most have in- and out-
groups, few are aware of their impact or even think much about how membership is determined.
Course Assignment
This exercise can be used as an assignment for the course. The students would be asked to record their
in-group and out-group as described by the exercise and provide a written analysis of the benefits and
disadvantages along with a plan for future action.
Case summary
The case of Jack Hartnett is an excellent illustration of contingency leadership concepts. Hartnett owns
54 restaurant franchises with outstanding financial performance. Additionally, his turnover and training
costs are lower than the industry average. Hartnett runs his organization as a benevolent dictator. He
demands loyalty and obedience and he takes a personal interest in the personal lives of his managers and
employees. The organization does not implement any of the current management methods and is, in
many ways, an anachronism. Nevertheless, it is very effective and successful.
Jack Hartnett is a highly authoritarian leader who tolerates very little dissent. He does not allow for
participation and demands loyalty and obedience from his employees. Although he is highly
authoritarian, he also shows a high degree of care and concern about the lives of his employees. He does
not hesitate to get involved in their personal problems. He runs his organizations like a traditional,
patriarchal family where the father figure is both benevolent and the unquestioned leader.
The success of Hartnett’s organization illustrates the concept of contingency leadership. Although his
style of leadership may appear to be outdated, it works for his organization and for the restaurant
franchise business. It is important to note that D. L. Rodgers Corporation is a small business.
Additionally, the restaurant franchise business requires tight financial control and a strong focus on
standardization and short-term results in order to be financially viable. Hartnett’s style fits the industry
and the culture he has created. Additionally, through careful recruiting and selection of employees, he
assures the continuation of the culture he has created. He picks people who can work with him and in
the organizational culture he has created. The key factor is the fit between the leader and the
organization.
Whether students decide if they would like to work for Hartnett or not is greatly dependent on
their personality and individual values. These topics are discussed in the next chapter. The Hartnett case
can be revisited after discussion of individual differences.
1. Fold up one corner 2. Cut off top and 3. Fold to the left
of rectangular paper to Discard
make a square
As the team leader, you are required to be open and participative. Consult with your team members, ask
for their input, treat them as equals, and encourage them to participate and provide suggestions.
Remember not to share these instructions or the written wolf-making instructions with your team
members.
----------------------------------------------------------------------------------------------------------------
As team leader, you are the expert on this task. Provide the team members with directions and tell them
what you expect of them. There is not much time for participation and suggestions. Focus on the task
and get going.
Remember not to share these instructions or the written wolf-making instructions with your team
members.
----------------------------------------------------------------------------------------------------------------
Laissez-faire
As the team leader, simply provide instructions on how to make the toys and then leave your team alone
to produce the items. Try to limit your contact with them and do not provide them with too many
instructions. Let them do their job.
Remember not to share these instructions or the written wolf-making instructions with your team
members.
Chapter Overview
This chapter discusses the role that individual differences and traits play in leadership. Individual differences
discussed include demographic factors, values, abilities (including intelligence and emotional intelligence) and
skills, and several personality traits including the Big Five, locus of control, Type A, self-monitoring,
Machiavellianism, and narcissistic personality. The chapter discusses how individual difference characteristics
provide limits to leaders’ behavior and ability and ease of learning new behaviors and styles. The focus is to view
individual difference characteristics as a self-assessment and developmental tools for identifying strengths and
weaknesses.
Chapter Objectives
characteristics play
in leadership.
Identify the impact
of values on Self-assessment 4.1
leadership.
Present
relationship between
the
Table 4.2
Table 4.3
Self-assessment 4.2
Chapter Outline
The Leadership Question focuses on some personal characteristics that impact leadership.
A framework for understanding individual difference characteristics is presented where the effect of both heredity
and environment are emphasized. The major individual characteristics of personality, values, and abilities and
skills are defined. The combined role of individual differences and the situation are clarified by proposing a model
that defines behavioral zones of comfort and discomfort (Figure 4.1).
a. A discussion of dynamic nature of personality and the role and importance of the situation and
context is presented.
Individual characteristics play the strongest role in determining behavior when the situation does not
provide clear guidelines. They also set limits and create a behavioral range, rather than dictate behaviors
(Figure 4.2).
Research indicates that in spite of women and minorities entering the workforce in record numbers, the
strong majority of U.S. leaders are still male and white and forms a homogeneous group. This
homogeneity may provide some constraints in creativity.
3. Values
After defining values as long lasting beliefs about what is worthwhile and desirable, the impact of
culture on values is discussed. Cultural values introduced in Chapter 2 are used to explain cross-cultural
differences in value systems.
The role of age and generational differences are presented (Table 4.1). The different view of ethics as a
value is discussed.
Ethics is one of the values that has strong impact on leadership. The relativist and universalist views of
ethics are presented and cultural differences in ethics are considered.
a. Intelligence
The research on the link between intelligence and leadership is presented. Although intelligence and
leadership are generally found to be related, the relationship is complex and moderated by many
different factors.
Although cognitive ability is important, practical intelligence addresses the skills people use to solve
everyday challenges. Emotional intelligence which includes ability to relate to others (Table 4.2) may
have greater impact on leadership effectiveness.
c. Creativity
The four characteristics of creative people presented and their potential importance to leadership is
discussed. They include: Perseverance in the face of obstacles, willingness to take risks, willingness to
grow and openness to new experiences, and tolerance for ambiguity.
3. Skills
As leaders move up in their organization, they require more interpersonal and conceptual skills and less
technical skills (Table 4.3).
The interest in the role of traits has been revived, with research by Kirkpatrick and Locke in 1991 that
identified personal characteristics that are preconditions for rather than determinants of effective
leadership. These are: Drive, desire to lead, honesty, self-confidence, intelligence, and knowledge of the
business.
The rest of the chapter presents various other personality traits that may impact how leaders lead.
What do you do? The employee’s behavior may be as much a function of her personality as they are a
function of her environment. She has some of the preconditions for being a good leader including drive,
desire to lead, and knowledge of the business. However, working with others is also essential to
effectiveness as a leader or followers. Getting a strong performer on the team is always a good
opportunity. However, her potential weaknesses are likely to detract from her performance. Pointing that
out to her is the path to getting her to moderate or change her behaviors. It also may be that being in a
new environment will show a different side of her. In either case, you need to monitor the situation and
address issues that may arise objectively, quickly and consistently.
The Big Five personality dimensions, which have been found to be consistent components of
personality, are described (Table 4.4). Although none are strong predictors of leadership,
conscientiousness and extraversion have the strongest links to work-related behaviors.
b. Proactive personality
Proactive individuals take control to influence events in their lives and attribute things that happen to
them to their own efforts and abilities. The focus is on changing the environment rather than being
constrained by it. They tend to be more satisfied with their life and their work and be more
c. Type A
Type A behavior pattern and its core element of need for control are described, and the research about
work-related behaviors is presented (Figure 4.4). Specifically, the Type A’s time urgency,
competitiveness, polyphasic behaviors, and hostility and their related behavior of poor delegation,
preference for working alone, action-orientation, high perception of stress, and harder work are
discussed.
Leading Change The case presents Jeffrey Katzenberg, co-founder of Dream Works Animation SKG
which has produced hits such as Monsters vs. Aliens and Shrek. It traces his early days as a demanding,
angry, and often unreasonable executive at Disney who pushed his employees beyond their limits.
Katzenberg, who was very publicly fired from Disney in 1994, has slowly evolved into a somewhat
calmer and more balanced person who is aware of his effect on followers and focuses on cultivating
them.
d. Self-monitoring
Self-monitoring refers to the degree to which people are capable of reading and using environmental
and social cues. This ability to perceive and evaluate situations correctly is suggested to be key to
leadership effectiveness.
The dark triad refers to a combination of three socially malevolent characteristics and behaviors that
include Machiavellianism, subclinical narcissism, and subclinical psychopathy, all described in Table
4.5. All three entail malevolent, self-promoting, disagreeable, emotionally cold and duplicitous
characteristics. Leaders with these characteristics get ahead without establishing connections with others
but by being manipulative and ruthless. (Figure 4.5)
Applying What You Learn: Dealing with Abusive Bosses provides advice on how to manage and
survive abusive leaders through careful documentation, keeping a cool head, and knowing when to
leave the situation.
Leadership Question Revisited emphasizes that no one trait or even a set of traits determines who will
lead and be effective. Because some characteristics are important and others may prevent effectiveness,
leaders need to be aware of their own traits, strengths, and weaknesses.
This section focuses on the importance of self-awareness and the judicious use of individual
characteristics in identifying and training leaders. While various characteristics have links to leadership,
they are not appropriate for personnel decisions and should rather be used as developmental tools.
Individual characteristics include demographic, physical, psychological and behavioral factors that
make an individual unique. Although all of these can impact leadership, they are by no means the
strongest determinant of leadership effectiveness. The collection of many different individual
characteristics help determine what makes a person unique. They further provide a range within which
2. How do values affect behavior, and what impact does culture have on our value system?
Values are long-lasting beliefs about what is worthwhile, right, and desirable. They have a strong impact
on our behavior. Values are strongly influenced by culture at all levels. National culture impacts whether
we value individuals or groups, focus on performance, consider time to be an asset, how important we
think directness is, and to what extent we emphasize honesty and integrity. Any of these factors can
impact a person’s leadership style. Furthermore, generational differences impact our value system and
focus. Therefore, awareness of one’s value system is an important part of leader development.
3. How do new approaches to leadership traits differ from those presented earlier?
The earlier approaches to leadership traits focused on identifying one or more traits that determined who
will be an effective leader. The more current approaches recognize the importance of individual
characteristics and propose a set of traits that are preconditions for effective leadership, but no required.
They include: Drive, desire to lead, honesty, self-confidence, intelligence, and knowledge of the
business.
Demographic factors have not been found to have a direct impact on leadership. However, research
shows that the leaders of U.S. organizations share many characteristics and the group is generally highly
homogeneous. In one study, they were all male, majority first-born, in their late 50s, right-handed, taller
than average with graduate degrees. The fact that the leadership of organizations as a group is highly
homogeneous may be cause of concern when considering that it may prevent creativity and diverse
viewpoints.
Many of the components that define traditional intelligence, such as cognitive ability, ability to integrate
information, analyze problems, and so forth are related to leadership to some extent. However, research
does not indicate a strong relationship between traditional intelligence (IQ) and leadership. In some
cases, being too intelligent may impede effective leadership. However, other types of intelligence,
particularly emotional intelligence (EQ) have been found to have links to leadership effectiveness. EQ
consists of: self-awareness, self-regulations, self-motivation, empathy for others, and interpersonal and
social skills. Because EQ is more focused on people than traditional intelligence, it has a closer link to
leadership.
The ability to think in new ways, think outside the box, and see problems from new and novel
perspectives are all important to leadership in today’s turbulent environment. Characteristics associated
with creativity include: perseverance in the face of obstacles, willingness to take risks, willingness to
grow, openness to new experiences, and tolerance for ambiguity. \
7. Describe the six personal traits and their implications for leadership.
The Big Five personality dimensions have been found to be key components of personality. They are:
conscientiousness, extraversion/introversion, openness to experience, emotional stability, and
8. What are the limitations of the personality approach presented in this chapter, and how should
the information about personal characteristics be used in leadership?
The information about individual characteristics should not be used for the selection or evaluation of
leaders. However, it is an excellent source of knowledge that can help in development. Although many
of the measures are robust and well developed, they are not intended for use in organizational or
leadership settings and should be used with caution in such settings, if at all.
9. After completing the personality self-assessment survey at the end of this chapter, consider
your personal profile. What is the impact of this profile on your leadership style?
Total time: Minimum 30 minutes in class; an additional 15 minutes required if Part I is assigned in
class
Materials needed: Paper and pencil; board or flip chart can be useful.
Overall: With some luck and the right personality mix in the classroom, this exercise can provide a
vivid example of the impact of personality on organizations. As an introduction to the topic, it can be
used to help students understand the individual differences by tying them to a personal experience.
Course Assignment
All the self-assessments in this chapter can be used to develop students’ self-awareness of their
personal characteristics. Students can be asked to describe and analyze each of the characteristics
measured in the self-assessments with a focus on identifying resulting strengths and weaknesses.
Students should be reminded that the changing personality is not the goal, rather understanding
should be their focus. By developing increasing self-awareness, they can build on their strengths and
compensate for their weaknesses.
Case summary
Zhang Xin ranks fifth on the list of the world’s self-made female Chinese billionaires. She was raised by
educated parents who suffered persecution during the Mao’s revolution. Through her intelligence and hard
work, she was education in the United Kingdom and eventually started work for Goldman Sachs where,
although successful, she did not feel she fit in with the hyper-competitive environment. She returned to China,
married an entrepreneur, and together they founded Soho China, the largest commercial real estate company
in the country. In spite of her considerable wealth, she remains frugal and humble. She has been recognized
for her creativity.
1. What are Zhang’s key personal characteristics? How do they each contribute to her success?
Zhang is a proactive individual who does not let the situation constrain her progress. She has achieved her
success in spite of difficult circumstances and because of her hard work and perseverance. Her humility and
her tenacity have been key to her success.
Zhang’s family background, both her parent’s high level of education, and the hardships they experienced
during China’s revolution have continued to impact her outlook and behaviors. The hard work and humility
are key Chinese cultural values as is her desire to contribute to the good of her community.
Chapter Objectives
OBJECTIVES THROUGH THROUGH FEATURES, THROUGH EXERCISES
BASIC TEXT TABLES, and FIGURES
Define power,
consequences, and
its
its Figure 5.1
Figure 5.2
Exercise 5.1
Chapter Outline
The Leadership Question Power is essential to leadership; but it can also be abused. How can leaders
use power to get things done without becoming autocratic or abusive?
Power is the ability of one person to influence another person. Authority is power vested in a position.
Commitment, compliance, and resistance are discussed as the three possible follower reactions to a leader’s use of
power. (Figure 5.1)
Power distribution and culture: The impact of power on culture is discussed (Figure 5.2). Hofstede’s
concept of power distance and tolerance for diversity and Trompernaars’ cultural organizational model
are used to explain cross-cultural difference in power. On the one hand, the Chinese, Mexican, French,
Italian, and German cultures all attribute considerably more power to their leaders than do U.S.
subordinates. On the other hand, Swedes have little need for hierarchy and authority and as a result can
function easily in leaderless team environments.
2. Sources of power
Sources and consequences: French and Raven’s five sources of individual power are described (Table
5.1) and potential reactions to the use of each source by a leader are discussed (Figure 5.3). The sources
are: legitimate, reward, coercive, expert, and referent power. Whereas the first three depend on the
organization and are more likely to lead to either compliance or resistance, the last two depend on the
individual and are more likely to lead to follower commitment.
Using Individual sources of power: Power and influence are compared, and influence tactics and their
consequences are discussed. Research outlining the effect of influence tactics available to leaders is
summarized, (Table 5.2) and the work of Kotter on career stages and use of different power sources is
presented. In early career stages, leaders develop a base of power by building broad networks and
establishing credibility through their expertise and demonstration of competence. In middle career
stages, the challenge is to use power wisely and ethically, whereas in later stages the issue becomes
letting go gracefully (Figure 5.4).
The sources of power stemming from organizational structures are presented. These sources are
suggested to be key to teams, and team leaders’ ability to achieve their goals (Table 5.3).
Coping with uncertainty: The first structural source of power for teams is their ability to help others
cope with uncertainty through obtaining information that they need, through preventing uncertainty by
predicting and forecasting events, and through absorption of uncertainty by preventing change from
affecting other parts of the organization.
Centrality: The second source of power for teams is the degree to which the team’s activities are key
and central to the overall mission and goals of the organization.
Dependability and substitutability: The third source of team power is the extent to which the team’s
expertise is needed by others.
Applying What You Learn: Managing Power When You Are a New Manager presents guidelines
for establishing and using power well when a person moves to a supervisory level. The focus is on
relying on broad sources of power, particularly on the personal one, using followers’ knowledge and
feedback, and setting boundaries.
The growing number of examples of abuse of power in organizations points to a potential problem with
having too much power without much accountability. Abuse involves taking advantage of one’s power
for personal gain. Corruption is abusing one’s power to benefit oneself or others. Destructive or toxic
leadership is leadership that violates the interests of the organization and the well-being of followers.
Abusive and destructive leadership may not be illegal; corruption is. Power tends to increase the
distance between leaders and followers and sets the stage for potential abuse.
Both leader and organizational characteristics contribute to abuse of power (see Table 5.4 for a
summary).
Leader characteristics include factors such as arrogance, inflated view of self, inflexibility, ruthlessness,
and concern with power. Researchers have suggested that “evil” or destructive narcissist managers are
more likely to have these characteristics and therefore abuse their power.
Follower characteristics can contribute to corruption. Particularly, silence, agreement, and compliance
may feed into the leader’s sense of entitlement.
Organizational factors include the culture of the organization, hiring practices, and centralized structure
along with short-term rewards based on limited criteria.
The leadership and organizational factors combine to create a corruption cycle presented in Figure 5.5.
Follower compliance, dependence, and submission play a role.
Poor decision making due to poor information is one of the major consequences of excessive power. The
development of a separate morality by the leader can also lead to unethical actions. Finally, devaluation of
subordinates can create a self-fulfilling prophecy that prevents delegation and empowerment and leads to
further isolation and poor decision making.
d. Solutions
In order to prevent power corruption organizations must: encourage open communication, involve
leader in day-to-day activities, reduce followers’ dependence on the leader, use objective measures of
performance, involve outsiders in decision-making, and change and monitor the culture (Table 5.5).
a. Requirements of empowerment
Empowerment is defined as the giving away and sharing of power with those who need it to perform
their job. Factors involved in empowerment are presented in Table 5.6.
Leadership factors: To encourage empowerment, the leader must create a positive atmosphere, set high
standards, encourage initiative, reward followers, practice equity and collaboration, and have confidence
in followers.
What do you do? presents a case of employees who are taking advantage of empowerment practices
and are not pulling their weight. Don’t ignore the problem; address it quickly and directly. The first
course of action is accurate data collection and documentation to assure that you have data to support
your assertions. Direct, but non-threatening discussion is the next step. You can explain the impact their
action is having on the group and involve their co-workers to help convince them of the impact. Make
sure that you hear their side of the situation as well. They may face challenges that prevent them from
doing their job well in the new environment. For example, having more autonomy may make it harder
for them do perform and they may need more directions or training. Empowerment does not mean lower
performance; the goal is to help employees become more effective.
b. Impact of empowerment
Much anecdotal evidence supports the positive benefits of empowerment. Empirical research is not as
clear. However, the concept is well established in the United States and several other Western countries.
Leading Change presents the case of Brazilian businessman Ricardo Semler who has championed the
concept of open book management and practices power sharing, participation management, and
empowerment in his company Semco. These practices require extensive training and have led to high
performance for the company.
Leadership Question Revisited Effective use of power is about balance and moderation. Leaders
should use all power sources depending on the situation and while maintaining integrity, concern for
achieving goals, and taking care of their followers.
Power changes both the power holder and those who are subject to it. Having authority over others can
have both positive and negative consequences. People can become more action oriented, show more
interpersonal sensitivity, focus on rules, and become more generous. Research also shows that power
holders can focus on retaining their power, believe they are more in touch with others than they actually
are, become oblivious to the needs of others, and lose their ability to empathize.
Those subject to power have three typical reactions. First they can commit to the actions and
decisions of the power holder, believing in them and willingly carry out what is asked of them. Second
they can simply comply without having any personal commitment. Finally, they can resist power
actively.
2. Provide examples for each personal source of power. Why are some forms of power more
influential than others?
5. Provide examples of how teams can use the sources of power available to them.
The key to the success of teams is for them to do “real” work that is significant and important and to be
empowered to implement their decisions. Therefore, having access to power is essential for their
success. The following are sources of power available to teams.
Coping with uncertainty Based on the ability to reduce uncertainty for others
Centrality Based on being central to how the organization achieves its mission and
goals
Dependency Based on others depending on power holder to get their work done
Substitutability Based on providing a unique and irreplaceable service or product to others
6. How are the team sources of power different from those available to individuals?
The sources of power for teams mirror those used by individuals to some extent. For example,
dependency and substitutability relate to expertise. However, the team sources of power depend on the
team fulfilling and supporting strategic actions for the whole organization. The ability to cope with
uncertainty, for example, helps the organization achieve its goals.
7. What are the factors that contribute to power abuse, corruption, and destructive leadership?
Leader, follower, and organizational characteristics can all contribute to corruption. Although followers
are almost never the starting point or the source of corruption and abuse, their actions or inactions
contribute to the cycle. Leader and organizational characteristics can have equal influence. An arrogant,
narcissistic, and unethical leader will not be able to abuse power as easily in an organization that does
not tolerate it and has in place ways to address power abuse. Similarly, a culture that may encourage
abuse and corruption is not likely to encourage all leaders to abuse power.
Solutions to corruption and abuse must address the leader, followers, and organizational characteristics.
The following help:
Clear message and consistency regarding a no tolerance policy
Holding the leaders accountable for their decisions and actions
Reducing uncertainty so that everyone knows what the goals and limits are and can follow rules
Training for leaders and followers to be aware of corruption and organizational policies regarding
abuse and corruption
Protecting employees by providing ways of reporting abuse and whistle-blowing without fear of
retribution
Open communication at all levels that allow information to flow freely. A highly secretive
atmosphere and centralized information provides fertile ground for abuse
Leader involvement in day-to-day activities to reduce the distance between leaders and followers as
much as possible; contact between them increases cohesion and allows for informal interaction
Leaders play a key role in creating a culture and environment where empowerment can flourish. It is the
leader who must share power in order to empower followers. Additionally, the leader must:
Create a positive emotional atmosphere
Set high performance standards to motivate followers
Encourage initiative and responsibility
Reward followers openly and personally
Practice equity and encourage collaboration
Carefully monitor and measure performance and provide feedback
Although the leader must give away some of his power when empowering followers, and it may appear
initially that he/she does not have as much do to and as many responsibilities, empowering followers
actually increases the leader’s power and influence. While the leader may not be “doing” as many of the
same things, he/she will most likely increase his/her power by developing a performing and cohesive
group. The leader also will have more time to actually lead, and provide direction, inspiration, and
recognition, all of which increase his/her power with followers. If empowerment is implemented well, it
In preparation for this assignment students should be encouraged to read articles about executive
salaries. Useful information can be found in several of the Web sites listed at the end of the chapter:
http://www.rileyguide.com/execpay.html
http://www.aflcio.org/corporateamerica/paywatch/index.cfm
http://bwnt.businessweek.com/exec_comp/2002/index.asp
Option: The exercise can be done individually before class but is best done in a group setting in class
after students have reviewed the quotes individually either before class or in class. This type of activity
works equally well with younger students and those with some work experience.
Overall: This exercise is an easy and effective way of introducing the complexity of power and its
importance to followers and organizations. It also allows for review and discussion of cultural factors
and their impact on leadership.
Quote Implications
Be the chief, but never the lord (Lao Egalitarian approach where the leader is seen as guide
Tzu)
There is danger from all men. The Indicates the typical U.S. ambiguous and sometimes difficulty
only maxim of a free government relationship with power. Recommends balance and egalitarian
ought to be to trust no man living with relationships
power to endanger the public liberty
(John Adams)
I know of no safe repository of the Another quote that indicates the U.S. difficult relationship
ultimate power of society but people. with power which is necessary, but should be watched. Strong
And if we think them not enlightened democratic view of power as necessary, but must be carefully
enough, the remedy is not to take the watched. Interesting possible link to how Semco is managed
power from them, but to inform them
by education (Thomas Jefferson)
Justice without force is powerless; Quote is from French philosopher Pascal who was part of the
force without justice is tyrannical enlightened movement that informed many of the principles
(Blaise Pascal) of the French and American revolutions. Emphasizes the
importance of power, and the need for careful handling of
power to assure fairness
Overall: This exercise is an effective way for students to apply the concepts about sources of power and
influence to their personal experiences and thereby gain a deeper understanding of the concepts.
Course Assignment
This exercise can be used as an assignment for the course. It allows students to demonstrate their
understanding of the sources of power and influence and apply their knowledge to a real-life situation.
Option: The exercise can be used as an individual assessment to help students understand empowerment
better or as a group exercise (after the individual ranking). The group exercise focuses on devising
strategies for removing obstacles to empowerment. This type of activity works best with more mature
students who have some work experience. I have used it very successfully with part-time MBAs. The
group activity is not as effective with traditional undergraduates who have limited or no work experience.
The description below is for the group-based exercise.
Materials needed: Paper and pencil; board or flip chart can be useful.
Part II: Strategies for removing obstacles (Group work; 15–20 minutes)
In this part of the exercise, groups of students select one of their members’ organizations, clearly identify
the blocks to empowerment, and develop strategies for their removal. Issues that they need to consider
before they embark in their search for strategies relate to readiness for change and include:
If the group feels that the answer to these questions is generally positive, then they should develop
strategies to help move the organization toward empowerment.
Is the leadership of the organization ready for moving toward empowerment?
Are employees and managers ready for empowerment?
Is empowerment appropriate given the culture, strategy, performance levels, and so on?
Would the stress and pain of moving toward empowerment be worth the potential benefits?
The Instructor needs to point out to the students that their strategies do not have to solve all the problems;
each group can set priorities in what can and should be done.
Each group can be given 4–5 minutes to present their organization and their solutions or a general class
discussion of the solutions can take place.
Overall: This exercise is very effective with students who already have some experience with teams,
quality circles, or empowerment. Working on this exercise allows them to identify the obstacles and
understand why the strategies their organization has been trying to implement may not be working.
Discussions invariably turn toward the role of the leader in setting and encouraging a culture that would
support sharing of power.
Course Assignment
This exercise can be used as an assignment for the course. The assignment uses the students’
organizations as live cases. The questionnaire is used as a tool to analyze the situation; other analysis can
be required along with a description of the organization or departments the student is rating. The
strategies portion involves developing and evaluating various alternatives for implementation of new
management techniques.
Case summary
Richard (Dick) Fuld is the last CEO of Lehman Brothers, a financial services firm that was founded in
1850 and was one of the first companies to disintegrate and declare bankruptcy in 2008. The company
and its CEO have been accused of shady accounting practices that allowed it to hide risky investments.
Fuld has been the head of the company since 1994 and was well known for his expertise and
performance and his strong and bullying style. His nickname “the Gorilla” represents both his habitual
grunting and his domineering style.
Fuld based his power on developing considerable expertise early in his career. He also built a strong
network of friends and political allies who gave him referent power. As he gained official titles and
position in Lehmans, he accumulated legitimate power and considerable reward and coercive power
along with the official position. He, very astutely, used all the sources of power to build on one another.
He used his legitimate position and the privileges it brought to further develop friendships and contacts.
He used the same power to intimidate those who disagreed with him and reward those whom he liked.
Dick Fuld shows many of the individual characteristics that may lead to abuse and corruption. As his
success increased, he developed an inflated view of himself, demonstrated considerable hubris, and
became arrogant. His temper further contributed to this. His treatment of subordinates shows his
rigidity, sense of entitlement, and willingness to use his power to achieve his goals or simply belittle
them. All the while, Fuld handsomely rewarded followers who performed and conformed.
The follower and organizational factors that lead to corruption are also present. Because of his
expertise and high performance, there was little accountability as Fuld refused to acknowledge
problems. He created a culture of intimidation that rewarded only financial performance while ignoring
other potential problems. The intimidation of those who disagreed with him further led to lack of dissent
and inflated his sense of power. Aside from bankruptcy, Fuld and the company are accused of financial
wrong-doing and subject to investigation.
Chapters 6 and 7 present theories that currently dominate the field of leadership including charismatic,
transformational, and authentic leadership, and a consideration of upper-echelon and nonprofit
leadership.
Chapter Objectives
Chapter Outline
The Leadership Question Charisma is considered a positive trait for a leader, and charismatic leaders
are sought after. Are charismatic leaders always effective and desirable? Is it a necessary element of
leadership?
Charismatic leadership is defined as a relationship between leaders and followers rather than a simple
collection of leader traits and behaviors. It involves leaders, followers, and the leadership situation
(Figure 6.1).
The personality and behavioral characteristics of charismatic leaders are presented (Table 6.1) along with
several U.S. and international examples of charismatic leaders. High self-confidence and excellent
articulation skills are central.
b. Characteristics of followers
The personality and behavioral characteristics of followers of charismatic leaders are discussed (Table
6.2). Loyalty to and obedience of leaders are essential elements.
Because charismatic leadership is defined as a relationship between leaders and followers, the elements
of a charismatic relationship and the situation in which it occurs are key.
External crisis and turbulence is key to the emergence of charismatic leaders (Table 6.3). Whether real or
perceived, a sense of crisis and ability for the leader to articulate his/her vision to resolve the crisis are
important.
Internal organizational conditions include: the organizational life cycle, the type of task, and the
organizational culture and structure. The more uncertainty, the more likely that a charismatic leader will
emerge.
Role of culture. The role of culture in charismatic leadership is explored. Some research suggests that
cultures with a strong prophetic salvation are more likely to give rise to charismatic leaders than those
without such views. These cultures include many with a Judeo-Christian tradition.
This section discusses the characteristics of unethical charismatic leaders who use their relationship with
followers to pursue their personal goals and agenda. Negative charismatic leaders may also present a
flawed vision that is self-serving or unrealistic (Table 6.4).
The section ends with an evaluation of charismatic leadership concepts. A number of different
interpretations of charismatic leadership have been proposed. The concepts have a strong appeal although
charismatic leadership should not be viewed as a cure-all.
Leadership Question Revisited Although charisma can be a powerful leadership factor, it also has the
potential for being destructive. It is neither a requirement nor sufficient for effective leadership. Charisma
has to be accompanied by the other hard work of leadership.
a. Transactional leadership
Contingency reward. Transactional leadership is based on the concept that the leader provides followers
with resources and rewards in exchange for motivation and productivity. When well implemented, this
exchange is at the heart of motivation and can lead to highly desirable results.
Management by exception (MBE). MBE is another type of transactional leadership where the leader only
intervenes when things go wrong, relying on discipline and punishment. MBE is usually associated with
follower dissatisfaction and poor performance.
b. Transformational leadership
Transformational leadership is concerned with inspiring followers to enable them to enact revolutionary
change in their organization. The components are presented in Figure 6.2.
Charisma and inspiration. The first component of transformational leadership is the creation of an
intense emotional bond between leaders and followers through charismatic leadership.
Intellectual stimulation. The second component of transformational leadership is the leader’s ability to
challenge followers intellectually to solve problems through new and creative means.
What do you do? The scenario presents the case of leader who is effective but faces a change in upper
management that focuses on change and transformation. As a result, the leader no longer fits well. While
effectively managing the status quo is highly valuable, this leader is finding that it is not enough. It may
be that the organization actually needs change and transformation; or the new upper leaders simply may
want change for the sake of change. In either case, it is important to adjust and fulfill organizational
goals. You can try to manage the pace of change by negotiating with your supervisors, but if the lack of
fit continues, and if the high stress continues, it may be time to explore other options.
There are many studies of transformational leadership from those testing the basic hypothesis to several
others looking at the concepts across culture and gender. Although the model has been generally
supported, further research is needed in regards to the measurement of the concepts. Several
recommendations for application include: Projecting confidence, providing a clear vision, encouraging
creativity, setting high expectations, and establishing personal relationships with followers.
Leading Change presents the case of Sir Richard Branson, the founder and CEO of the Virgin Group, a
family of companies headquartered in London. Branson is a self-made entrepreneur with a flair for
outrageous marketing stunts. He has also built his company on the philosophy that leaders must like
people and focus on bringing out the best in every employee.
The theories presented in this section focus on more than leader behaviors and actions; they present a
highly emotional process based on fundamental values.
First proposed by Robert Greenleaf, servant leadership focuses on followers rather than the organization
or the leader. Service to followers and their development is essential to effectiveness. The traits and
behaviors associated with servant leadership are presented in Figure 6.3. The model is new and has
generated much interest, but is not yet well supported by research.
b. Authentic leadership
Authentic leadership focuses on the importance of self-awareness and leadership based on true values
and beliefs. The theory proposed that the most effective leaders are those who understand their strengths
and true purpose, develop them, and base their leadership on them.
Definition and elements of authentic leadership (Figure 6.4 and Table 6.5) include self-awareness,
balanced information processes, behaviors that are true to self, and relational transparency.
c. Positive leadership
The concept of positive leadership is based on a new approach in psychology and organizational
behavior that takes a strength rather than a deficit approach. The approach suggests that how one thinks
influences behaviors and outcomes and recommends that leaders remain positive and optimistic, focus
on strengths, create a positive climate while setting high standards, and dealing with negativity quickly.
The characteristics of positive leaders are presented in Figure 6.5.
Practicing positive leadership requires the following: Being optimistic, encouraging positive
deviance, focusing on strengths, creating a positive climate, maintaining positive relationships, having
positive communications, and dealing with negativity quickly.
Applying What You Learn: Balancing a Positive Approach with Realism While being positive is an
important tool for leaders and can be infectious, it is important for leaders to also be realistic, rely on
data, not overestimate strengths, allow for criticism, and push to get all sides and the good and bad
news.
The value-based approaches have yet to be fully and thoroughly evaluated and researched. There is
some evidence that they can have positive impact on followers and performance. The approaches
emphasize the relationship between leaders and followers.
Spiritual and authentic leadership are focused on an intense bond and relationship with
followers much the same way as charismatic leadership is. Some suggest that the root of the charismatic
and transformational leadership is authenticity which wins over followers based on the strength of
beliefs. The concept of positive leadership is new to the field and allows us to have a look at the way
leaders think about their situation and how the way they think may influence their leadership. All three
concepts are relatively new and provide ample opportunity for research.
There has been some critiques of value-based approaches that suggest that it can lead to delusional
optimism, poor performance when leaders and followers become overly and unrealistically positive,
overestimate their strengths, and have a bias for “brightsideness.”
Neocharismatic leadership concepts address a side of leadership that previous theories do not. It looks at
the relationship and emotional bond between leaders and followers and allows us to study leaders who
are interesting and appear magical in their powers. The theories also allow us to address how leaders can
change organizations and also look at leaders in all levels of the organization.
Charismatic leadership requires the leader, followers, and the right situation. On the leader side,
charismatic leaders are self-confident and expressive, have strong convictions and high energy, and are
active image builders and role models. On the follower side, followers have a high degree of esteem and
affection for their leader, are loyal and devoted, identify with the leader, are confident in the leader’s
abilities, and have high performance expectations and unquestioning obedience. The charismatic
situation requires a sense of real or perceived crisis. The crisis can be internal due to poor performance,
or external due to a threat. Either way, there must be a sense that change is needed, there is availability
of dramatic symbols, and an opportunity for the leader to articulate the vision and the role of followers.
Charismatic leadership assumes the presence of a savior in times of crisis. The concept of savior is more
prominent in Judeo-Christian religions than in other ones. Therefore the concept of charisma is not
universal or at least, its presentation in Western research does not apply to all cultures. Many leadership
concepts are dependent on the cultural context. Specifically, there are universally positive, negative, and
contingent traits:
Some managers confuse MBE with empowerment. In both cases, it appears that the leader lets followers
do what they want. That comparison is not accurate. In MBE, the leader does not engage with followers
unless it is to criticize. In empowerment, the leader provides latitude for followers to do their job, but is
highly active in setting goals, providing guidelines, encouraging, and giving both positive and negative
feedback.
6. Describe the elements of transformational leadership and its role in enacting organizational
change.
7. Compare and contrast value-based, authentic, and positive leadership concepts. Why do these
approaches have so much appeal?
The concepts of value-based, authentic, and positive leadership share common elements with other
approaches to leadership presented in this chapter. All focus on the relationship between leaders and
followers and on the sharing of a vision for the group. Some suggest that authentic leadership is at the
root of the other concepts. Although charismatic, transformational, spiritual, and positive leaders all
have to necessarily have some degree of authenticity, authentic leaders do not necessarily need to be
charismatic, transformational, spiritual, or positive.
Positive leadership offers a fresh approach in that the focus is more on how a leader thinks and
less on what he or she is—charismatic, value-based, or authentic, for example. Owing to its roots in
psychology, positive leadership has a cognitive approach that emphasizes the perspective leaders choose
to take, how they analyze and interpret the situation, and how those processes determine their behavior.
Specifically, positive leaders take on a positive perspective that guides their approach to leading
themselves and others.
Value-based, authentic, and positive leadership present opportunities and challenges. The
concepts add considerable richness to the study of leadership by introducing and considering the role of
emotions, in the case of value-based and authentic leadership, in the leadership process. Additionally,
the introduction of hope and optimism which is the basis of all three concepts, to understanding
leadership is a significant contribution.
8. What are the major contributions and shortcomings of neocharismatic approaches to our
understanding of leadership?
Charismatic, transformational, value-based, authentic, and positive leadership concepts contribute to the
demystification and understanding of leadership processes. They have a broad appeal and provide an
intuitive understanding of leadership that is applicable to large-scale leadership situations. They are also
responsible for resurgence in the interest in leadership. Because of their relatively recent development,
the concepts still require much refinement, and their use in training leaders needs further refinement,
particularly with regard to identification of various situations under which change-oriented leadership
might be more appropriate and more effective.
Option: Step 4 can be used to make the exercise a group activity. Each group could then select one of
its members as leader, analyze his/her behavior, followers’ behavior, and the situational elements that
allow for the emergence and effectiveness of charismatic leadership.
Course Assignment
This exercise can be used as an assignment for the course by asking students to describe and analyze a
charismatic leader, his/her followers, and the leadership situation.
Because of the time required to complete this exercise, the groups should be required to do their
preparation outside of class after having been provided with the necessary information.
Total time: Minimum 50 minutes preparation (15 with the instructor; 35 in the group); 5 minutes per
group presentation.
Step 1: Preparation
Students should be assigned to groups of 3 to 5. Existing groups can be used.
Each group must select a topic for a 5-minute speech. The topics should have the potential to inspire
and motivate. Good options are company or school mission statements. Other examples are the
introduction of a new product or service to a sales group, the presentation of a major strategic
change to a department or team, or the introduction (self or by someone else) of a new leader.
Each group needs to select the target audience for their speech. All presentations will be made to the
class after informing them of the target audience. The intended audience will affect the speech and
therefore needs to be identified.
Following are definitions and examples of framing and rhetorical techniques to help the groups prepare
for their speeches (for more details see Conger 1989 and 1991).
Framing involves selecting a framework for the message around certain goals. For example,
the two statements “our company goal is to build communication devices,” and “our company goal is to
connect human beings to one another” deliver the same basic message with very different frames. Some
methods for framing are:
Amplify values and beliefs: Select values and stories that illustrate the core higher values that
appeal to the audience.
Bring out the importance of the mission: Emphasize and exaggerate the need for change and the
attractiveness of the solution.
Clarify the need to accomplish the mission: Focus on the “good” of the mission and the dangers of
not accomplishing it.
Focus on the efficacy of the mission: Provide examples of how the mission will work in order to
build the audience’s confidence in the correctness of the selected path.
All the above techniques are designed to provide the audience of followers with a reason for accepting
the proposed change or idea.
Rhetorical techniques are used to further emphasize the message. These include:
Use of metaphors, analogies, and brief stories to make the mission and goals concrete, set them
apart for undesirable things or events that the audience is likely to know, and create the needed
emotional reactions in followers.
Use of language that the audience will understand is key to an effective message.
Repetition of the key message through various means and media emphasizes its importance.
Alliteration is the repetition of initial consonants sounds (e.g., mighty mountains of Montana)
which provide a pleasing rhythm to the speech.
Overall: This exercise is often difficult for students, but it can be very effective. The ability to develop a
well crafted message is often closer than most students think and even partially succeeding in that task
demonstrates one of the major behavioral components of charismatic leadership. The fact that some
students are more comfortable with this exercise than others can also be used to point to the effect of
personality on one’s ability to practice and learn new behaviors.
Course Assignment
This exercise can be used as an assignment for an oral presentation in the course. Because of its
difficulty, it may not be appropriate for a large percentage. I have used it as an alternative or addition to
class participation grade.
Because of the time required to complete this exercise, students should be required to watch the
speeches outside of class after having been provided with the necessary information.
Total time: Minimum 30 minutes preparation individually; another 30 minutes in the group.
Step 1: Preparation
Students should be assigned to groups of 3 to 5. Existing groups can be used.
Each group must select or be assigned the one or two speeches they will analyze. Each student
should then watch the speech or speeches outside of class and complete an initial assessment.
In class, the groups can review the speech and complete the assessment again after discussion.
Following are definitions and examples of framing and rhetorical techniques to help the groups prepare
for their speeches (for more details see Conger 1989 and 1991).
Framing involves selecting a framework for the message around certain goals. For example, the two
statements “our company goal is to build communication devices,” and “our company goal is to connect
human beings to one another” deliver the same basic message with very different frames. Some methods
for framing are:
Amplify values and beliefs: Select values and stories that illustrate the core higher values that
appeal to the audience.
Bring out the importance of the mission: Emphasize and exaggerate the need for change and the
attractiveness of the solution.
Clarify the need to accomplish the mission: Focus on the “good” of the mission and the dangers of
not accomplishing it.
Focus on the efficacy of the mission: Provide examples of how the mission will work in order to
build the audience’s confidence in the correctness of the selected path.
All the above techniques are designed to provide the audience of followers with a reason for accepting
the proposed change or idea.
Rhetorical techniques are used to further emphasize the message. These include:
Use of metaphors, analogies, and brief stories to make the mission and goals concrete, set them
apart for undesirable things or events that the audience is likely to know, and create the needed
emotional reactions in followers.
Use of language that the audience will understand is key to an effective message.
Repetition of the key message through various means and media emphasizes its importance.
Alliteration is the repetition of initial consonants sounds (e.g., mighty mountains of Montana) which
provide a pleasing rhythm to the speech.
Nonverbal messages need to be consistent and support the spoken words. For example, the style of
dress, clear and confident voice, and lack of hesitation can all be used to further send a message of
confidence
Overall: This exercise is interesting for students and is effective in demonstrating one of the powerful
tools charismatic leaders often use. It is important to emphasize that non-charismatic leaders can also be
highly effective.
If assigned as a written assignment, students can be asked to conduct the evaluation and write a 1–2
page analysis of the elements of charismatic speech.
Course Assignment
The self-assessments in this chapter can be used to develop students’ self-awareness of their personal
characteristics. Students can be asked to describe and analyze the characteristics measured in the
self-assessments with a focus on identifying resulting strengths and weaknesses. Students should be
reminded that changing personality is not the goal, rather understanding should be their focus. By
developing increasing self-awareness, they can build on their strengths and compensate for their
weaknesses.
Case summary
Andrea Jung, Avon’s first female CEO, was highly celebrated as a charismatic transformational leader
until she left in 2011 under a cloud of poor performance and legal accusations. She was ranked as one of
the best and later one of the worst CEOs. For more than 10 years, she successfully changed Avon by
connecting with employees and investors and reinventing the company and herself. She was known for
her drive, enthusiasm, and passion for the company. She focused on internal and external
communication to build and share a vision of the company she is leading. However poor decisions and
not grooming a successor caused her to leave the leadership of Avon.
1. What are the key elements of Andrea Jung’s leadership style? Consider the various models
presented in this chapter.
A passion for her organization, a need for consensus building, high enthusiasm, and a focus on
communication are key to Jung’s leadership effectiveness. Her extensive experience in retail and tenure
with Avon provide her with the credibility she needs to run her organization. Her insistence on
developing a shared vision that fully includes the traditional backbone of the company—the Avon ladies
—is evidence of her awareness of the importance of forging a new organizational culture based on the
successful elements of the existing one.
A strong conviction and enthusiasm about Avon, high energy and enthusiasm, strong
communication skills, and active image building (such as leadership in charities focused on benefiting
women) are all elements of charismatic leaders that are present in Jung. Because of some decline in
sales and threats from new retail outlets such as the Internet, a sense of urgency and crisis is present.
Not as evident is the strong follower emotional reaction to Jung’s leadership.
In terms of transformational leadership, Jung has demonstrated her ability to intellectually
stimulate her followers by allowing and encouraging active participation and ownership of changes
implemented in the company. Her high enthusiasm and relentless confidence in the company, along with
her consensus building, further help her followers overcome resistance to change.
The most apparent elements of visionary leadership are enthusiasm, collaboration in the
development of a vision, and her focus on people.
Although Jung showed elements of charismatic and transformational leadership and was popular, she
also made serious mistakes such as rejecting a potentially lucrative merger. Being charismatic and
transformational do not guarantee effectiveness. A leader can inspire and connect with followers, but
still make mistakes. Effective leadership is highly complex and no one factor, trait, or behavior predicts
how well a leader can do.
Chapter Objectives
Chapter Outline
The Leadership Question Do you think there is a difference between leaders at different levels of the
organization and in different organizations? Besides size and number of people who report to you, is
leadership fundamentally different at top and lower levels or in different organizations?
The major differences between micro and upper-echelon leadership are presented (Table 7.1). These are
scope, focus, effectiveness criteria, and level of decision-making. The new strategic focus for leaders at
all levels is discussed.
a. Strategic forces
The six strategic forces of environment, technology, strategy, culture, structure, and leadership are
proposed as the domain of strategic leaders (Figure 7.1). Leaders in the upper echelon of organizations
juggle these six forces to help organizations reach their goals.
An integrated view of the role of leadership in strategic management is presented whereby the leader is
assumed to play a central role in the creation of the culture and strategy of an organization. Additionally,
when the organization is well established, the leader plays a role in the implementation of strategy
(Figure 7.2).
The external and internal factors that moderate the power and influence of upper-echelon leaders on
organizations are discussed (Table 7.2). These factors either limit the power and discretion of the leader
or limit the impact of the leader’s actions and decisions.
External environmental factors include environmental uncertainty, type of industry, market growth, and
legal constraints.
Internal factors include: Organizational stability, size and structure, culture, stage of organizational
development, and the presence, power, and makeup of a Top Management Team (TMT).
Applying What You Learn: Managing in Times of Crisis Leaders increasingly have to manage in
times of crisis. Some key guidelines are: Be realistic, face the situation directly, do research and gather
facts, seek help and support, be a role model, tell the truth, remain calm, practice kindness, listen and
have empathy, and take action.
The research on the impact of upper-echelon’s individual characteristic on their leadership style and
their organization is reviewed. Four strategic leadership types are proposed.
After a review of various individual characteristics of strategic leaders, two common themes that run
through the research emerge. These are the degree of the leader’s challenge seeking and his or her need
for control.
Challenge-seeking: The degree to which a leader seeks challenge, is a risk taker, and is open to change
and innovation is one of the key characteristics of upper-echelon leaders. This characteristic has the
most impact on the way a leader formulates the strategy of his/her organization. At one end are leaders
who seek challenge and are innovative, at the other end are leaders who are risk averse and
uncomfortable with change.
Need for control: Need for control is the second characteristic of upper-echelon leaders and includes
degree of delegation, participative leadership, and encouragement of as well as tolerance for diversity of
form and opinions. This characteristic has the most impact on the internal culture and structure of an
organization. High-control leaders push for uniformity and control, whereas low-control leaders allow
flexibility and openness.
The combination of challenge-seeking and need for control yields four strategic leadership types (Figure
7.3). The type of leadership that is effective is contingent upon an organization’s environment, culture,
strategy, and structure. Additionally, each type of leader is likely to create a different type of
organization.
What do you do? The scenario provides an example of a leader whose strategic leadership type fits
more in SQG or PM and moves to an organization whose leadership is innovative, either HCI or PI.
While there may be an apparent lack of fit with other managers or the general style of the leadership,
organizations need all types of leadership to run smoothly and be effective. The complementary styles
allow the organization and its members to address different challenges they may face. Although the
SQG manager may not be the most innovative one, you can still contribute by helping the organization
run efficiently. It is important to be aware of strengths and weaknesses and work with them to contribute
to the organization.
The effect of culture: Culture may have an impact on strategic leadership type. Using Trompenaars’
dimensions, an analysis of the potential impact of culture using the example of French top executives is
presented. Hierarchy, elitism, and focus on intellectual achievement are partly attributed to the French
cultural value of high power distance.
The effect of gender: Although there is limited empirical research regarding the effect of gender,
anecdotal and case studies of female executives are discussed pointing to many female executives using
a more participative style.
The processes used by upper-echelon leaders to affect their organization are discussed (Figure 7.4)
a. Direct decisions
Direct decisions regarding all organizational factors including strategy, mission, culture, and structure is
one of the most obvious ways in which upper-echelon leaders impact their organizations.
Control over resources and rewards provide upper-echelon leaders with considerable opportunities to
shape their organizations.
Setting decision standards and behavioral norms and modeling of certain styles and actions are indirect
but still powerful means for upper-echelon leaders to impact the organization.
The responsibilities of upper-echelon leaders are discussed with a focus on the need to match the
considerable power assigned to them with accountability for their own and their organizations’ actions
(Table 7.4).
Leading Change Public Allies is a unique community-based nonprofit organization whose goal is to
develop leadership capabilities within a community by educating and training young volunteers who
return to their communities to lead and implement various projects. The organization runs on the basic
belief that leadership is an action (a verb), not a position (a noun). Since its creation in 1992 Public
Allies has established a considerable network of supporters, has won much praise, and has trained
thousands of leaders. Sixty-seven percent of whom are people of color and 60 percent female.
Leadership in nonprofits is the intermediary between donors and recipients (Figure 7.5). Their focus is,
more than other organizations, on integrity, trustworthiness, and collaboration. Because of their flat
structure and limited resources, many nonprofits have trouble recruiting, training, and retaining the
leadership they need. They therefore face a crisis in leadership with a significant shortfall in qualified
leaders.
Leadership Question Revisited Although leading involves the same basic processes of taking care of
task and taking care of people no matter what the level and the setting, leaders at different levels and in
different sectors need different types of skills and strengths. Connecting with followers is always
important, as are competence and knowledge of the task at hand. In all cases, leaders need to understand
their leadership context.
The differences between micro and macro leadership focus on who the leader is, what the scope of
leadership is, what the primary focus is, and what the effectiveness criteria are.
There are six strategic forces that upper-echelon leaders must pay attention to. They are the external
environment and the structure, strategy, technology, leadership, and culture of the organization. Various
strategic forces become important at different times, but leaders must pay attention to all of them as they
Upper-echelon leaders formulate the strategy of organizations in cooperation with other top level leaders
and the top management team and they are then responsible for implementation of the strategy
throughout the organization. There are several internal and external factors that moderate the power,
discretion, and the impact of leaders on both formulation and implementation of strategy.
4. Provide examples for each of the moderating factors on the impact of leadership in
organizations.
The research on the characteristics of upper-echelon leadership falls into two categories:
Challenge-seeking: The degree to which a leader seeks challenge, is a risk taker, and is open to change
and innovation is one of the key characteristics of upper-echelon leaders. This characteristic has the
most impact on the way a leader formulates the strategy of his/her organization. At one end are leaders
who seek challenge and are innovative, at the other end are leaders who are risk averse and
uncomfortable with change.
Need for control: Need for control is the second characteristic of upper-echelon leaders and includes
degree of delegation, participative leadership, and encouragement of and tolerance for diversity of form
and opinions. This characteristic has the most impact on the internal culture and structure of an
organization. High-control leaders push for uniformity and control, whereas low-control leaders allow
flexibility and openness.
6. Describe each of the four strategic leadership types. Provide examples of each type.
The need for control and the degree of seeking challenge are combined to yield four distinct strategic
leadership types. They are:
High-control innovator (HCI): HCIs are challenge-seekers who have a high need for control. They
select high-risk, innovative strategies while creating centralized structures with strong cultures.
Status quo guardian (SQG): SQGs are challenge-averse and need high control. They select strategies
that are tried and true and maintain high control over their organizations.
Participative innovators (PI): PIs seek challenge and innovation in their strategies while creating a
loose, open, and participative culture and structure inside their organizations.
Process manager (PM): PMs allow for openness of culture and structure while avoiding risky and
innovative strategies.
7. How do culture and gender affect strategic leadership?
There is limited research about the role of culture and gender in strategic leadership. However, there is
some indication that culture may have an impact on strategic leadership type. Using Trompenaars’
dimensions, an analysis of the potential impact of culture using the example of French top executives is
presented. Hierarchy, elitism, and focus on intellectual achievement are partly attributed to the French
cultural value of high power distance. Similarly, in spite of limited empirical research regarding the
Upper-echelon leaders have considerable power and privilege to lead their organizations. With such
power comes considerable responsibility for members of the organization and, some would argue, for
external constituents as well. However, increasingly, upper-echelon leaders are not held accountable for
their actions or for their organization’s performance. There are many instances of leaders being
rewarded handsomely while their organization performs poorly. The examples of outright fraud and
ethical violations also suggest that many leaders are not held accountable.
Although organizational performance should be one of the primary determinants of the
compensation of upper-echelon leaders, there are many other factors that determine the compensation.
They include: firm size, industry competition, CEO power and discretion, the extent of
internationalization, and high stress and instability.
For the benefit of organizational and social functioning and well-being, it is essential that the
tremendous power, influence, and status of CEOs be accompanied by accountability and responsibility
to their various constituents. Such accountability exists on paper but is hardly ever executed. The power
and impact of upper-echelon leaders are undeniable. Their credibility and ability to further affect their
organizations, however, can increase only with more accountability.
10. What are the unique characteristics and challenges of nonprofit leadership?
After reading the scenario, assign students to groups of 3–5 to complete the worksheet and make a
recommendation regarding their choice of new principal.
Worksheet Sample
Strategic Forces J.B. Davison Jerry Popovich
Environment Defined primarily as school board and Defined broadly to include
parents community
Strategy Focus on basics (reading, writing, math, Focus on community
and discipline) partnerships including parents
and businesses
Culture Tight controls, paternalistic Open
Structure Centralized, formalized Fluid/organic
Technology Likely not major focus Major focus
Leadership Authoritarian; control-oriented Participative
Discussion items
1. How are the two candidates different?
Davison’s orientation to education is traditional with an emphasis on the basics and on discipline. His
education and background are also traditional. Popovich’s approach is more focused on community and
is likely to be more creative. Her background with computers and industry is less typical of a school
principal. They are both well qualified for the job.
3. The choice
Both candidates are good choices for the job. It is important for students to understand that there is no
right choice. Whom each group picks depends on how they view the situation at the school. Each
candidate brings a unique and different set of skills. Their approaches are very different. Davison’s may
have a quicker response whereas Popovich’s approach is likely to be more long term. The quick
response from Davison’s approach may not provide long-term solutions, whereas Popovich’s approach
may not have a chance to work without quick solutions.
Overall: The brief scenario provides a good mechanism for students to analyze the impact of upper-
echelon leaders. The major theme for this exercise is to realize that there is no right answer and to
understand the consequences of the choice that is made.
Option 1: Ask students to rate their own organization, department, or team. This option is most effective
with students with work experience.
Option 2: Provide students with the cases at the end of this chapter and ask them to rate the organization
and leaders described in the cases. This option is most effective with students with limited work
experience, or as a practice for rating their own organization.
Total time: Minimum 15 minutes for Option 1 (5 minutes for rating, 10 minutes for discussion);
minimum 25 minutes for Option 2 (15 minutes for rating, 10 minutes for discussion).
Course Assignment
This exercise can be used as an assignment for the course. Students can be asked to either provide a
description of their own organization or use one or more of the cases at the end of the chapter to do a
case analysis of the organization, its culture, structure, and leadership.
Case Solutions
J.C. Green Leslie Marks Joseph Hadad
Direct decisions Selection of replacement Work assignments and Compensation system
location her own office
Allocation of Based on performance
resources
Reward system Reward for intelligence, New compensation and
wit, and analytical skills benefit system
Selection of other Choice of Stanley Wang Focus on internal Based on performance
leaders promotions
Role modeling Running Open door; office Focus on financial
moved to first floor; factors
informal dress
Course Assignment
This exercise can be used as an assignment for the course. Students can be asked to analyze, compare,
and contrast the influence processes used by the three leaders.
Control
High
15 0
Low
0
Low Challenge Seeking
Case summary
P&G is one of the top consumer good companies in the world. Under the leadership of A.G. Lafley from
2000 to 2009 the company transformed itself and maintained a strong market position. His carefully
groomed successor Bob McDonald took over in 2009 when Lafley retired, but was not received well
causing the board of directors to call Lafley out of retirement in 2013 to once again head the company.
Lafley is known for quiet determination, decisiveness, a soft-spoken style, and focus on the customer
and the product. Throughout, his messages have been simple and repetitive making sure everyone
understood the importance of the customer. Although P&G has very well-designed succession plans,
McDonald’s departure leaves the company without an obvious leader after Lafley leaves. Additionally,
Lafley is now working with one of the most powerful board of directors in the world, many of whom
face considerable challenges in their own organizations.
All the strategic forces presented in Figure 7.1 impact P&G. Particularly, the changing environment and
competition, and new technology have forced the company to look for new products and new markets.
Internally, the culture of the company played a significant negative role in preventing the necessary
changes. Lafley was instrumental in changing the culture and focusing it on the customer. Changes in
the structure, toward teams and decentralization, have further supported the new strategies. Leadership
has played a key role. Lafley’s leadership brought stability and hope. McDonald had a particular focus
on leadership, teaching it to others and practicing what he preaches. Lafley is now once again charged
with reviving the company in an increasingly competitive environment and has the added challenge of
grooming a successor, once again.
P&G is a huge global conglomerate that faces constant uncertainty and a need for market growth. While
the culture is well set, it also is in need of continuous revitalization given the maturity of the
organization. In addition to these internal and external factors that affect the leaders’ discretion, the
presence of a very powerful BOD with many prominent members is a big challenge for the leaders.
Laflely, like most of P&G’s leadership, is a long-time company insider. He is known to be understated
and quiet with a passion for focusing on the customer. He is also highly decisive and strong but not
flashy. Lafley encouraged the use of teams, decentralized decision making, and encouraged increased
participation. His message was simple; he used dramatic symbols to make his point; he was a careful
listener; and he provided a clear focus. He seeks innovation, but has a relatively low need for control,
placing him in the PI category.
Northern Lights
Northern Lights utilities is one of two major utility companies in a three-state region in the Midwest. In
spite of the changes in the industry and the increasing competition as a result of new deregulation, the
publicly owned company continues to be successful as it has been for the past 35 years. The company is
known for its performance-based incentive system that focuses entirely on monetary rewards for
employees and managers. The system has been in place for almost the life of the company and has been
very effective. The turnover rate is considerably below industry averages. As a result, the average tenure
of employees and managers is more than 10 years. All of the managers are promoted from within, and
most have come up through the ranks with company-supported education. Productivity is high, and
profits have been good.
The organization has a strong family atmosphere. In spite of its size, most people know one
another and family members by name. The president, Thomas Wysocki, has also come through the
ranks. He is a “company man,” and both his sons also work for Northern Lights. Whereas many of the
D.C. Medical
As a result of the major changes in the health-care industry, D.C. Medical was divested by a major
hospital that owned this out-patient clinic. Instead of risking shut-down, the employees and managers of
the clinic decided to buy their own organization. Three years after the buy-out, the employee-owned
clinic is thriving. Its 20 physicians and 42 staff are known for quality, low-cost health care. Quality and
concern for their patients are the common threads for all the employee-owners who are managing the
clinic with the help of their administrator, Amy Hidalgo, one of the few people who is not an owner.
The employees have organized themselves into cross-functional teams that run the different departments
and report to Hidalgo. The employees see Hidalgo as the “obstacle remover.” Her role is to obtain
resources and facilitate providing quality health care. She has focused much of her attention on external
relations and marketing, which are her strong points. She has developed a number of very successful
P.R. campaigns and has established partnerships with several businesses. The various teams have been
very successful in running the facility. Each department has come up with many new procedures to
address their clients’ needs leading to considerable success for the clinic.
LEADING
Chapters 8, 9, and 10 focus on key aspects of leading people and organizations including leading teams
and change and developing leaders.
Chapter Objectives
Chapter Outline
The Leadership Question What are the factors that make the implementation of teams so challenging
for many leaders? What can be done to improve the situation?
This section discusses how organizations and leaders can use participation (Figure 8.1) and the potential
benefits it can have.
Table 8.1 outlines the criteria for using participation. Task complexity, employee commitment,
organization readiness, and task characteristics are some of the relevant criteria.
The key role of culture in the use and success of participative management is discussed while pointing
out that high power distance and collectivism have a great impact on the leaders’ use of participation as
a management tool.
This section provides a detailed description of the advantages and disadvantages of delegation as a
leadership tool.
a. Benefits of delegation
The benefits of delegation include: Freeing up the leader’s time, providing employees with growth
opportunities, allowing them to be involved in tasks, providing the leader with opportunities to observe
employees, and increasing employee motivation and satisfaction.
The factors that cause many leaders to fail to delegate tasks and responsibilities to their followers are
presented in Table 8.3.
The use of teams as a formal structure to encourage participation in decision making is discussed.
Leading Change Google presents the case of Google which aims to be the happiest place to work, not
just for the sake of employee satisfaction, but because the company has determined that keeping
employees engaged and satisfied is essential to its effectiveness and performance. By providing a fun,
pleasant, and highly engaging work environment that includes shops, terraces, play areas, and gourmet
free food, and removing physical barrier for cooperation and teamwork, Google encourages its
employees to work and play hard and cooperate. Extensive monitoring and measurement assures that
the various changes and activities are effective.
a. Characteristics of teams
Table 8.4 summarizes the difference between groups and teams. Commitment to common goals and
procedures, shared responsibility and leadership, and synergy are key elements of teams.
b. Self-managed teams
Elements of self-managed teams are presented. These include: the power to manage their own work, not
having an outside manager, coordination and cooperation with other teams, and internal leadership
based on facilitation.
Applying What You Learn: Using a Sports Team Model in Management The sports team model can
be used to improve team management. Specifically, leaders should: encourage both cooperation and
competition, provide early wins, break out through losing streaks with positive thinking, take time to
practice, keep membership stable, and review performance.
c. Self-leadership
Size is one the structural factors that can affect the effectiveness of a team. Leaders should strive to keep
teams small enough to allow members to interact easily without creating dysfunctional subgroups.
Selection of members is another key factor. The issue of group homogeneity or heterogeneity is key
(Figure 8.2).
The new roles of leaders in a team environment are presented (Figure 8.3) and the stresses and obstacles
associated with the new roles are discussed. A cultural analysis of teams is presented by focusing on the
U.S. and Australian individualism cultural value as the basis for the new concept of collaborative
individualism that is suggested to replace the eastern-based concept of cooperative and harmonious
teams.
What do you do? presents the case of forming a team with only top performers to address a challenging
task. Although it seems logical that the best and brightest are likely to perform well when all put
together, it is not necessarily the case. Issues of size and composition, and creating diversity on a variety
of dimensions including expertise, strength, and perspective are also essential. Additionally, teams can
be effective only if members work well together. Simply putting together high performers does not
guarantee that they can work well together.
Table 8.5 summarizes the four typical dysfunctions that teams face.
Groupthink is one of the most serious dysfunctions that teams can face. Cohesive teams strive for
agreement at the expense of critical evaluation and creative discussions. The antecedents, symptoms,
and consequences of groupthink are presented in Figure 8.4 and solutions are presented.
Free riders are members who benefit from the team without contributing. They can severely impact the
team’s cohesion and effectiveness.
Negativity and bad apples can quickly sap a group’s motivation and reduce its performance.
Lack of cooperation and trust is a key factor in poorly performing teams.
In order for teams to be effective they must be created with a real purpose in mind, be empowered to
take action, and be supported by the organization. To make teams effective, leaders must continuously
monitor them and act quickly when problems and dysfunctions occur. Leaders must help the group to
develop trust (Figure 8.5). Additionally, teams require special training to become effective. The training
should include: team building, cross training, coordination training, self-guided correction, and
assertiveness. The importance of building trust and the elements that lead to trust in teams are presented.
The factors that determine the use of participation are: task complexity, employee commitment,
organization readiness, and task characteristics. Participation is not a cure-all and does not always
constitute the best approach. Organizations vary in their use of participative management and the degree
to which they use teams.
Participation in decision making can have positive impacts on employee morale, performance,
and reduce turnover and absenteeism. However, participative management and teams can also provide
some challenges that include needing more time and dysfunctional teams.
Collectivism can have a strong impact on the use of participation by the leader and how well it is
accepted. Cultures with a strong collectivistic value tend to find team structures easier to use while
individualistic cultures may find them difficult. Additionally, power distance also affects how well
participation is accepted. In high power distance cultures, participation and empowerment may not be
easily implemented. In more egalitarian cultures, employees and leaders find participation more
comfortable.
3. What organizational strategies can be used to help leaders delegate more often and more
effectively?
As with any skill, delegation can be taught and developed in leaders. The benefits of delegation include:
Freeing up the leader’s time for new tasks and strategic activities
Providing employees with opportunities to learn and develop
Allowing employees to be involved in tasks
Allowing observation and evaluation of employees in new tasks
Increasing employee motivation and satisfaction
Delegate, do not dump Delegate both pleasant and unpleasant tasks; provide followers
with a variety of experiences.
Clarify goals and expectations Provide clear goals and guidelines regarding expectations and
limitations.
Provide support and authority As a task is delegated, provide necessary authority and resources
such as time, training, and advice needed to complete the task.
Monitor and provide feedback Keep track of progress and provide feedback during and after
task completion at regular intervals.
Delegate to different followers Delegate tasks to those who are most motivated to complete
them as well as those who have potential but no clear track
record of performance.
Create a safe environment Encourage experimentation; tolerate honest mistakes and worthy
efforts that may fail.
Develop your own coaching skills Take workshops and training classes to assure that you have the
skills to delegate.
4. Compare and contrast groups and teams. Provide an example of an effective team. What are the
elements that contribute to its success?
Groups Teams
Members work on a common goal. Members are fully committed to common goals and a
mission they developed.
Members are accountable to manager. Members are mutually accountable to one another.
Members do not have clear stable culture Members trust one another and team enjoys a
and conflict is frequent. collaborative culture.
Leadership is assigned to single person. Members all share in leadership.
Groups may accomplish their goals. Teams achieve synergy: 2 + 2 = 5
Having a common goal and developing trust are key to the success of teams, as are the right types of
training and being empowered to work on meaningful tasks.
Delegation is an age-old management tool that allows for the development of followers and reduction of
the leader’s workload. Team-based organizations and self-managed teams are relatively new and go
hand-in-hand with the implementation of participative decision making and empowerment.
In delegation, leaders and managers retain responsibility and authority for all activities. While
followers are assigned tasks, the manager continues to have full responsibility for the outcome.
Additionally, the manager provides goals, guidelines, monitors activities and results, and so forth. In
self-management teams, the responsibility and authority rests with the team itself as does the goal-
setting and monitoring. Self-managed teams do not need a manager to oversee their activities. They
manage their own work, coordinate with other groups and lead themselves often through facilitative and
shared leadership.
Some of the steps leaders can take to become self-leaders and encourage self-leadership in others are to:
listen more; talk less; ask questions rather than provide answers; share information rather than hoard it;
encourage independent thinking rather than compliant followership; and encourage creativity rather than
conformity.
7. What are some typical dysfunctions that teams may face? What is the role of the leader in
managing them?
Teams face many challenges. Primary ones include: developing groupthink, presence of free-riders,
negativity, and lack of trust.
Groupthink develops when team members’ desire for cohesion overrides their ability to think and
evaluate issues critically. Team members strive to get along, reduce conflict, and keep their membership
in the group. When cohesive groups face a complex situation, they insulate themselves from outsiders
and fail to consider alternatives instead reaching for quick agreement that protects the group sense of
cohesion. A key antecedent of Groupthink is directive leadership that further encourages quick
Free Riders are people who are group members and benefit from their membership but do not contribute
to the group. Free-riders appear to be more common in individualistic cultures. In collectivistic cultures,
the sense of group and the need to be part of the group often prevents people from free-riding. In
individualistic cultures, the focus on individual contribution reinforces the need to have equal and
similar contributions from all team members, causing them to feel a sense of unfair advantage when
facing potential free-riders.
Negativity and Bad Apples can quickly spread and damage the cohesion, effectiveness, or even ethical
behavior of a team. One unhappy and unmotivated team member can have a disproportionate negative
effect on her team. The “bad apples” are often focused on their own goals, uncooperative or
domineering, and unwilling to contribute. Their constant complaining and lack of motivation draw the
group down and prevent other team members for achieving the group’s goals.
Lack of Cooperation and Trust can be highly detrimental to teams. An effective team is one where
members trust one another to work toward a common goal. Trust allows group members to safely
experiment, learn, and make mistakes without fear of ridicule and retribution. Lack of trust greatly
hampers the effectiveness of a team and prevents it from reaping benefits from having a team.
Team leaders and in some cases, outside leaders, have a great responsibility in monitoring teams to
assure that dysfunctions do not occur and in addressing them when they do. In the case of groupthink,
the presence of a strong leader can be a contributing factor, so leaders must keep their distance from the
team to help prevent groupthink. In other cases, quick action from the leader is essential to address the
problems.
8. How has the role of leaders changed in team environments? What functions remain?
Self-managed teams rely on their leader for things other than the traditional goal setting, monitoring,
and providing rewards. Those functions are achieved by the team members themselves. However, team
leaders continue to play a key role in the success of the team. Specifically, they must provide various
training including:
Team building to clarify team goals and member roles and set patterns for acceptable
interaction
Cross training to assure that team members understand one another’s tasks
Coordination training to allow the team to work together by improving communication and
coordination
Self-guided correction to teach team members to monitor, assess, and correct their behavior in
the team
Assertiveness training to help team members express themselves appropriately when making
requests, providing feedback, and other interactions among themselves.
Total time: Minimum 45 minutes in class (10–15 minutes preparation; 25 minutes role play; 10 minutes
debriefing)
Review the general scenario with the whole class reminding them of the role-play rules (used in Narian
Bridges):
Stay in the general guidelines provided by your role
Improvise as needed while keeping goal in mind
Practice role for a few minutes alone or with your team
Provide rich role play so that others can respond to you
Be as creative as you feel comfortable; some of you will play your role more intensely than others;
differences are normal
The instructor then needs to review each role with students playing that role (i.e., all managers, all
Frans, all Gerrys, etc.).
The other three employees will serve as observers in the meeting between the manager and the selected
employee using the observer worksheet to evaluate the process. The selected employee should also
complete the worksheet at the end of the meeting. Remind students that they will have to share their
comments with the manager and the employee and that therefore they need to:
Focus on specific behavior
Be critical but constructive
Be professional (stay away from personal comments)
Overall: I have a used this role play a number of times in my classes. It works well and provides
students with an experience with the nuts and bolts of delegation. As with many other role plays,
students with some work experience handle the task better, although the setting provides a nice
opportunity for practice for more traditional and younger students with limited or no managerial
experience. The only drawback of the exercise is its length.
Course Assignment
The exercise works very well as a homework/journal-type assignment requiring students to track their
own behaviors and to perform basic goal-setting in regard to areas that they would like to change.
Whole Foods
Case summary
The case describes John Mackey, the CEO of Whole Foods and the company he has created. Whole
Foods is changing the grocery business with its focus on nature foods, bright, well-decorated facilities,
and outstanding customer service. Mackey founded the company in 1980 and has created a culture that
reflects his own values of democracy and equality. A vegan, he emphasizes healthy foods, stays
involved in his business, and practices a frugal lifestyle in spite of the considerable success of his
company. Teams are the basis of all decision making at Whole Foods; they decided whom to hire, what
products to carry, and even how to allocate raises. The company prides itself on its “Declaration of
Interdependence” which affirms the importance of employees, customers, community, and all other
stakeholders. Whole Foods implements John Mackey’s democratic ideals by sharing decision making,
sharing profits with employees, making employee fun and happiness a priority, continuously training
employees, and promoting from within to encourage and develop talent. The team-based, employee-
focused culture and structure have allowed the company to thrive and grow.
John Mackey has stayed true to his roots as, what one person describes, an anarchist. His focus on
democracy, healthy foods, and the building of community permeates his company. Even with
considerable financial success, he remains accessible and involved in his business. His deep-seated
beliefs in equality and democracy have been translated into team-based approach to management. While
he remains involved in the company, the decisions are made by teams at all levels. With a focus on
employee empowerment and development, John Mackey appears to have instituted a sense of self-
leadership at Whole Foods.
The teams at Whole Foods are an integral part of the culture and structure of the company. They are not
an afterthought; they are the company. The complete involvement at all levels of decision making makes
them central to the organization and allows them to be effective. The focus on interdependence among
employees, customers, and other stakeholders further emphasizes the importance of cooperation and
working together, further reinforcing the role of the teams. Overall, the teams at Whole Foods work well
because their task is complex, the employees are committed and highly competent, and the leader and
the organization are ready for empowerment.
Your employees
Fran Smith has been with Sunshine for 8 years and has been a strong performer. S/he is one of your
trusted employees.
Gerry Narden has been with Sunshine for 5 years moving up through the ranks. S/he is very eager but
makes mistakes.
Terry Chan has a 9-year tenure at Sunshine. S/he is a high performer and seems to like to do her/his
own thing with personal contacts.
J.P. Ricci is the youngest member of the team with barely one year at Sunshine. S/he is very bright but
not always very motivated.
Plan the meeting during which you will delegate the task. What do you need to say? What areas do you
need to cover? How are you addressing your employees’ needs?
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Observer Worksheet
Chapter Objectives
Chapter Outline
The Leadership Question Change is hard and most people will resist it. Given this, should leaders
simply push change through (get it over with) or should they take time, introduce things slowly, and
give followers time to adjust?
Culture at the national and organizational levels can affect how people and organizations manage
change. Tolerance for ambiguity and perceptions of times are two cultural values that impact how
people manage change.
a. Types of change
Types of change include planned, unplanned, evolutionary, and revolutionary change (Table 9.1). Each
type requires different types of actions from leaders.
Lewin’s force field model for change is presented (Figure 9.2) and a three stage process is described.
The three phases of unfreezing, changing, and refreezing are presented (Figure 9.3). Each stage is
described with examples from 3M and Avon. The importance of the often-ignored unfreezing and
refreezing phases is highlighted.
Planned change typically follows a six-step process that includes recognition of the need for change,
development of ideas, adoption of an idea, implementation, allocation of resources, and evaluation
(Figure 9.4). The case of the FBI and a GM plant are presented as examples.
Steps for managing sudden change are presented including creating a flexible organization, being
proactive, rotating leaders, and experimentation.
Change, no matter how positive, leads to some degree of resistance and stress.
a. Causes of resistance
Causes of resistance to change fall into the three categories of organizational, group, and individual
factors (Table 9.2). The example of Ford Motor Company is used to illustrate them.
What do you do? presents an example of a leader having to push through change that is not supported
unanimously but needs to be implemented quickly. Even when there is little time and not much
opportunity to prepare the team and establish the need for change (unfreezing), leaders can still seek to
involve their followers in other stages. For example it would help to get input into how to do what is
required to do, how to divide the task, how to minimize the negative impact, and so on. Any input helps
in reducing resistance. In addition, the leader has to communicate extensively and as openly as possible
with followers.
b. Solutions
Leaders have a variety of tools and methods available to them to implement change.
a. Creativity
Creativity, also called divergent or lateral thinking, is the ability to link or combine ideas in new ways. It
is a key factor in generating and implementing meaningful change. Leaders can put in place several
processes to encourage creativity in their team or organization including: avoiding autocratic styles, an
open organizational culture, encouraging a questioning attitude, and tolerating mistakes and
experimentation.
b. Improvisation
Another related leadership factor in successful change is the leader’s ability to improvise, a process that
involves creation of something spontaneously without specific preparation, but with considerable
overall expertise and experience.
Leading Change: Mulally Takes on Ford presents the CEO of Ford who has changed the culture of
the car manufacturer and has helped it remain profitable. He faced a classic case of inertia and
complacent culture when he took over in 2006. Through communication, setting a new shared mission,
structural changes, and a personal approachable style, Mulally changed the culture of the company and
encouraged employees to be innovative.
The concept of visionary leadership focuses on providing a clear vision and inspiring followers as a key
to successful change. In addition, followers must be empowered, given flexibility, and encouraged to
cooperate.
A motivating vision is part of exemplary leadership that supports change (Figure 9.4). Such a
leader sets clear standards, expects the best from employees, encourages the heart, provides
personalized recognition, celebrates success, and role models desired behaviors.
d. Learning organizations
Organizations where people expand their capacity to create, where innovation and cooperation are
nurtured, and where knowledge is transferred are learning organizations that are likely to handle change
well (Table 9.4).
Several blocks to being a learning organization are presented (Figure 9.6). Organizations can
avoid such blocks by remaining open to new ideas, developing local solutions, providing time for
learning, and putting in place appropriate leadership. The example of 3M is presented.
e. Positive approach
The concept of positive leadership discussed in Chapter 6 is presented as an effective approach for
leading change. Knowledge alone does not change behavior; rather having examples and role models
that show a positive outcome can be used as a powerful tool to create and encourage change.
Leaders have considerable influence on their organization. They can encourage change by
communicating priorities clearly, being a role model, and allocating resources and rewards to support
change.
Applying What You Learn: Guidelines for Change presents practical tips for changing organizations
including clear communication, relying on change agents, involving people in the change process, being
supportive, managing higher levels of the organization, and role modeling.
Organizations face pressure for change from both inside and outside. Internal factors include: low
performance, new leadership, low satisfaction, new mission, and conflict. Low performance, also
referred to as the performance gap, is the difference between expected and actual performance. Various
changes are implemented to address the gap. New leadership from either inside or outside the
organization is another factor that leads to pressure for change. Additionally, low satisfaction is likely to
push organizations to make changes, as are a new mission or on-going conflict inside the organization.
External forces for change include economic and political changes. Additionally, as cultures evolve and
social changes occur, organizations are often forced to change to address them. Demographic changes
such as an aging population or a more diverse workforce further pressure organizations to make internal
changes. Finally, technology and changes in an industry can force changes in organizations.
Culture can impact how leaders view change, either as an opportunity or a threat. Tolerance for
ambiguity and the perception of time are two cultural values that impact how we view change. Not
tolerating ambiguity and being risk averse, which are values in cultures such as Greece, Portugal, and
Japan, can lead leaders to view change as a threat and look for ways to neutralize its impact. In other
cultures such as the United States and Canada, the short-term orientation and tolerance for ambiguity
leads leaders to manage change more easily and make adjustments as the need arises.
Lewin proposed that organizations face pressure for status quo and for change. When forces for change
are stronger than those opposing them, the organization will move toward making changes. When forces
for status quo are stronger, people will resist change. To implement change, leaders must either increase
the strength of the forces for change or decrease those that resist it. Additionally, Lewin proposed that
change occurs in three stages of unfreezing, change, and freezing. In the first stage, organizations
prepare for change and understand the need for change. After change is introduced in the second stage,
there must be a period during which change is allowed to freeze and settle down. Organizations often
5. Present the six steps in the process of planned change and describe the role of leaders in each
step.
The six steps are: recognition of the need for change, development of ideas, adoption of one or more
ideas, implementation, allocation of resources, and evaluation. In the first three stages, leaders must
prepare the organization for change (similar to Lewin’s unfreezing stage) and provide opportunities for
as much input as possible to develop the best alternatives and get as much buy-in as possible. Once an
idea is selected and implemented, leaders must support the change through allocation of resources such
as training, time to learn, and financial rewards. Finally, the leader must support evaluation of whether
the change has been effective and be ready to start the process over if the desired state is not achieved.
6. What can leaders do to prepare their organizations to deal with unplanned change?
Actions that leaders can take to prepare for unplanned change also support change in general. They
include:
Avoid becoming too formal, hierarchical, rigid, and inflexible.
Infuse moderate amounts of uncertainty, unpredictability, and spontaneity into decisions to help
prevent complacency.
Stay on the offensive and be proactive with introducing new strategies, products, services, or
processes.
Replace and rotate leaders to bring in fresh ideas, methods, and visions
Experiment often with new methods, products, processes, structures, and so forth, to help
8. Describe ways in which resistance to change can be reduced and explain when each methods
can be used.
9. Compare and contrast creativity and improvisation and explain their role in leading change.
Creativity is the ability to link or combine ideas in novel ways. Improvisation is creating something
spontaneously without specific preparation. Both are essential in leading change. To encourage
creativity, leaders must be open to participation, create flexible structures, have an open culture,
encourage a questioning attitude, and tolerate mistakes. Improvisation can only happen with a
combination of planned and unplanned activities and requires expertise and perspective on the situation.
Leaders and followers must understand a situation before they can improvise and be creative.
Visionary leadership focuses on providing a vision to guide and inspire change. In addition to providing
a vision, visionary leaders empower followers and express confidence that they can achieve high results.
They encourage flexibility and are open to change. Finally, they encourage teamwork and cooperation to
implement change. Visionary leaders are those who challenge the process, create a shared vision, role
model the change they want, enable followers to implement change, encourage and motivate followers,
and celebrate successes at every stage.
12. What are the elements of an organizational culture that support change, and what role do
leaders play in developing that culture?
An effective way to implement successful change is to develop a culture that accepts change and is
ready to learn. Such a culture is called a learning organization where people continually expand their
capacity to create, where innovation and cooperation are nurtured, and where knowledge is shared and
transferred throughout the organization. The elements of learning organizations are:
Element Description
Shared vision Using cooperation and openness to build a shared vision through a common
identity and a common goal of the future that leads to commitment.
System thinking Understanding inter-relations and the invisible and visible bonds that connect
people inside and outside the organization.
Mental models Being aware of stated and unstated assumptions and mental models that
guide behaviors and decisions and developing new ones based on openness
and cooperation.
Personal mastery Continually clarifying and developing personal visions and goals, and
expanding skills sets and levels of proficiency.
Team learning Developing synergy and the ability to think and work together to question
assumptions and build new processes.
Leaders play a key role in creating and supporting learning organizations by building an open and
supportive culture that supports transformation and change. Being open to new ideas, encouraging
followers to develop local solutions and providing time for learning and experimentation are part of the
leader’s role in learning organization.
Additional leaders can take a positive approach that is optimistic and supportive. Rather than
pushing change by providing more information and knowledge, a positive approach focuses on
providing examples of successful change and its positive impact that encourages followers to adopt
change.
The case is relatively typical of what mid-level leaders face in many organizations. They are charged
with putting in places changes without much warning or input.
The best strategy is presenting the facts clearly; give it to them straight. The plan required from upper
management must be presented as it is. The team leader should not either defend or oppose the plan. It
is important to retain “authenticity” without criticizing upper level decision making. The change is a
“fait-accompli.” There is not much discussion besides venting, which should be allowed, but controlled.
The challenge now is how to move to implementation. This is an area where the team can have input.
Within the limits set by upper level leadership and by the situation, what can the team do to make this
work? What are some strategies and processes they can implement? How can they reduce the negative
Authenticity and honesty are important factors; however, it is important to keep the information sharing
to statements such as “I don’t like this much myself either” or “I know how you feel”. However, the
team leader’s behaviors and reactions are role models for the followers. Therefore, she/he must present
an optimistic and positive front to encourage the followers to accept and manage the change well.
Negativity from the leader is likely to feed into the team’s anger and be unproductive.
Provide as much information as possible; ask your supervisor for information and share it with
the group in a timely basis
Seek training and resources for the group
Allow some venting, but keep it focused and limited
Empathize and encourage the group to focus on what it can do rather than what it does not like
Provide as many opportunities for participation and input into the implementation as is possible
Seek support for the group from HR if available
Help the two members who are let go through team support, recommendations, emotional
support, and through organizational support if available
Time needed: 30 to 40 minutes for preparation; 2–5 minutes per group for presentation if used as an in-
class assignment
Course Assignment
This exercise can be used as a team assignment for the course by asking teams to identify a problem and
present a plan for change to address the problem. The assignment can be as simple or as complex as an
instructor chooses to make it. It has the potential to be a highly involved assignment, even requiring
students to seek help and involvement from the organization, or it can be a simple hypothetical exercise
to make them familiar with the steps in the process of planned change. Because of the potential
complexity and the need to brainstorm, this is a team rather than an individual exercise.
Time needed: 60 to 75 minutes; 10 minutes for preparation, 45 minutes for the group process, 15
minutes for discussion and debriefing.
Materials needed: Time keeping tool; paper hats of different colors can useful and fun.
1. Instruct the students to follow the directions in the exercise and select a topic
2. Explain the meaning of each of the color hats and provide examples to assure that students
understand each:
White Hat: Neutral and objective: Focus on objectivity, facts and figures. Ask questions such as: What
information do we have? What do we know? Are there any data available on this? Are we sure this is a
fact, not just an opinion?
Red Hat: Anger (seeing red), rage, and emotions: Focus on the emotional view. Ask questions such as:
How does this make people feel? Why do people get so angry or happy?
Black Hat: Somber, serious, and cautious: Focus on pointing out weaknesses and problems. Ask
questions such as: What are the shortcomings? What are the problems? What is the negative impact?
Yellow Hat: Sunny and positive: Focus on hope and positive thinking; look at the best possible
outcome. Ask questions such as: What is the up side? What are the benefits and advantages? How can
this benefit us?
Green Hat: Abundance: Focus on creativity and new ideas. Ask questions such as: What are the
different ways of looking at this? What are some crazy approaches to this? What could we do if there
were not limits or restrictions?
Blue Hat: Sky view: Focus on control, integration, and putting together of ideas from a broad
perspective. Ask questions such as: What’s the view from 10,000 feet? How does it impact the overall
system or organization? What’s the big picture?
3. Review the rules with the students and insist that they follow them closely:
Designate a facilitator who will keep track of time, direct the group to switch hats, reiterate
their function, and remind everyone of the rules. The facilitator will use language such as “now
let’s all put on our red hats” to transition from one hat to the other.
Always refer to the hat colors, not the function. For example, you can say “Let’s put on our
white hats” not “Let’s look at the facts.”
Begin and end with the Blue Hat. At the beginning, it allows you to address general issues and
what you are doing (i.e., reviewing the rules and deciding the order of the hats). At the end, it
allows you to review and sum up.
You may put the other hats on in any order your group wants.
Keep your “hat on” when you are in a color mode. For example, if the group is wearing the
green hat and focusing on creativity, members cannot decide in the middle of the green period
to put on their black hats and discuss the weaknesses of the ideas being proposed. You can only
switch hats when time is up and the whole group wears a different hat.
You can also give each person a minute or two to think when you start and when you switch
hats. With the hats “on,” each member has about one minute to express his/her views under
each color. The total amount of time will depend on the number of people in your group. For
example, four people will take about 24 minutes to discuss an issue (6 x 4 = 24) + an extra 4
Review the process focusing on benefits and difficulties (what was easy, what was hard), what could
have been done differently and on applications to real life.
Overall: This can be an engaging exercise. The biggest challenge students have is keeping to the theme
of the hat and not arguing. If you have large groups, designating one facilitator who does not participate
can be helpful.
Course Assignment
This exercise can be used as an assignment for the course by asking students to analyze the elements of
their credibility and present an action plan to improve it.
Course Assignment
Students can be asked to describe and analyze their scores on creativity with a focus on identifying
resulting strengths and weaknesses. Students should be reminded that the changing personality is not the
goal, rather understanding should be their focus. They can also identify behaviors they may want to
change, or actions they could take to become more creative. By developing increasing self-awareness,
they can build on their strengths and compensate for their weaknesses.
Case summary
For several years, the electronic store Best Buy instituted a flexible work schedule for its headquarter
staff and employees called ROWE (Results Only Work Environment). The program removed the time
clock and the traditional necessity to be in the office from the workplace. Employees were evaluated
based on their performance, the results they showed, and how well they met their goals rather than
based on the time they sat at their desk or spent in meetings. Considerable improvement in productivity
and morale indicated that the program was effective. The program was started by two mid-level HR
employees and for several years implemented in various parts of the organization before top-level
management was informed of it. However, Best Buy’s overall performance and sales lagged. Although
there was no evidence that ROWE was to blame, the new CEO Hubert Joly revoked the program in
2013 citing the need to have a discussion about flexibility. With or without ROWE, Best Buy continues
to struggle.
1. What are the internal and external forces for change at Best Buy?
ROWE was started because of considerable employee dissatisfaction with lack of work–life balance
which was the primary force for change. The availability of technology such as wireless access also
made the change possible allowing employees to stay connected to their office and their work almost
anywhere. Best Buy has been under pressure to improve productivity to stay competitive and respond to
the changing needs of its market which includes many more women making the technology purchase
decisions. The company had already implemented many other changes and therefore was used to
change. Joly revoked ROWE at the heels of poor overall performance, although there was no evidence
that the flexible schedule impact productivity negatively.
2. How were the two changes (ROWE and its removal) implemented?
ROWE started in middle levels of the organization, implemented by employees and managers who had
considerable input to customize it for their own needs. After several years of success and positive
results, upper management was finally brought in to assure their support. After they approved of the
program, it was then introduced to the whole company while still providing choices for various
managers to either adopt the program or stay with the old systems. The productivity data and the
testimony of the employees and managers who are on ROWE have been the main tool used to convince
others of the need to implement the new system and to complete the unfreezing phase. Education is the
primary tool used to overcome resistance to change.
The revocation of ROWE was a simple edict from the CEO with apparent support from the
leadership team. No discussions, no employee input.
When ROWE was implemented, the middle-managers were the ones who initiated and drove the change
process. Upper management was only involved when the program showed results. Their support is of
course essential to the success of the program. Many middle-level leaders, however, were still resisting
the change process whereas employees have been much more receptive. However, the program and its
implementation involved people at many different levels of the organization, leading to its eventual
success.
In the case of the revocation, the leaders took on all the responsibilities and simply imposed a
top-down change.
Chapter Objectives
OBJECTIVES THROUGH THROUGH FEATURES, TABLES, THROUGH
BASIC TEXT and FIGURES EXERCISES
Define the elements of
leader development Figure 10.1
Leadership in action case: Developing
Self-
assessment
leaders at SW Airlines 10.1
Explain the factors
involved in learning Figure 10.2
development
Summarize the role of
the person and the Figure 10.5
Applying What You Learn: Personal
organization in effective Development
leader development Leadership Challenge: Finding the
right fit
Chapter Outline
The Leadership Question How successful is leader development? What can we teach and can people
really learn?
Leader development focuses on ongoing, dynamic, and long-term change or evolution that occurs as a
result of experience and on expanding a person’s capacity to be effective as a leader. Leadership
development considers the overall organization’s capacity to be effective through its leadership. The
levels of development are presented (Figure 10.1).
a. Factors in learning
Learning is defined as a relatively permanent change in behavior, knowledge, or skills that results from
experience. Learning requires awareness and willingness to learn, capacity to learn, the right
organizational climate, and exposure to the right experiences (Figure 10.2). It also requires persistence
and practice.
Leader development addresses various areas including: basic knowledge, personal growth, skills,
creativity, and strategic issues (Table 10.1).
Factors that should be used to determine the effectiveness of a development program include:
assessment, awareness, rich experiences, opportunity to practice, feedback and follow-up, support from
the organization, and fit with the organization (Figure 10.3). In addition, an effective program should
have clear goals, use a combination of methods, and conduct assessment and follow-up.
What do you do? presents the challenge of training a person to learn “soft” people skills. The first step
is to clearly and directly discuss the issue with the employee and explain how this weakness in people
skills can be an obstacle to his success and performance. The least costly method for training is having
the person work with a mentor who is a successful senior inside in the company. The person’s success
and tenure should provide the credibility needed. The shadowing and observation would provide the
basic information needed. Once the employee understands the methods that he needs to learn and
employ, coaching, again from an insider, would help practice and learn those behaviors. Classroom
instruction (such as seminars) can further reinforce the learning. Using inside mentors and coaches is
less costly than hiring external consultants, although having outside people could be more effective.
a. Self-awareness
Self-awareness is the first step in and the cornerstone of any development program. It involves
clarifying values and priorities, seeking new experiences, and seeking feedback through formal and
informal channels. Although it is an essential step in development, by itself it has limited effectiveness
(Table 10.2).
b. Experience
Experience is the core of any development program. On the job experience or experience through
various training provides opportunities to challenge the leader and stretch his/her abilities. It provides
one of the richest and most effective methods of leader development (Table 10.2).
Coaching and mentoring are powerful methods of leader development to help leaders grow both
personally and professionally. Coaching is individualized feedback on behavior and performance with
focus on future improvement. It is a highly effective method of leader development particularly when
combined with other methods (Table 10.2). Elements of effective coaching are presented (Table 10.3).
Mentoring is a supportive long-term formal or informal professional relationship. It is less focused and
specific than coaching, but can be helpful as part of a program (Table 10.2).
Providing comprehensive and extensive feedback from various sources to leaders about their behaviors
and performance can be key to their development (Figure 10.4). Such programs are highly popular and
can be effective if certain criteria are considered (Table 10.4).
e. Outdoor challenges
Leading Change: Howard Schultz presents the CEO of Starbucks and his focus on employees and on
their well-being and development. Such attention to employees is at the heart of the success of the
company.
The appropriateness and effectiveness of leader development programs depends on the cultural context
in which they take place. The communication context and cultural values of individualism, action-
orientation, tolerance of ambiguity, perception of time, and power distance can all impact what program
is effective (Table 10.5).
Gender and diversity are both factors to consider in leader development. Lack of opportunity to develop
leadership skills is often cited as the cause of poor representation of women and minorities in leadership
roles. Providing varied development opportunities, encouraging developmental relationship, and
developing networks are some of the solutions.
5. Effectiveness of development
The Leadership Question Revisited Reviews the importance of desire or motivation to learn and
opportunity to practice in development, along with the need for organizational support. There is a need
to carefully evaluate the effectiveness of various leader development programs. Several factors play a
key role in their effectiveness (Figure 10.4).
Personal commitment, organizational commitment, and the fit between the person and the organization
are key factors in making development succeed.
Applying What You Learn: Personal Development provides guidelines for individuals to develop
their own leadership skills. Openness to new experience, seeking volunteer work and feedback, focusing
on understanding one’s strengths, and persistence and practice are key.
Development is an ongoing dynamic, long-term change or evaluation that occurs because of various
learning experience. Leader development focuses on the individual leader and providing him or her with
the tools to improve. Leadership development focuses on an overall organizations capacity to get the
work done through its many leaders. While the methods are sometimes similar, it is important for
organizations to be clear on which level they are focusing on and provide the appropriate program.
2. What are the five factors in learning? What role do they play in leader development?
Learning involves a relatively permanent increase or change in behavior, knowledge, or skill that comes
as a result of experience. There are five factors involved in learning. First, the person must be willing to
learn which requires an awareness of where they are and what they know. They must be both ready and
motivated. Second, the person must be able to learn through the right combination of intelligence and
personality traits. Third, the person must have access to the right opportunities to be able to learn.
Area Description
Basic knowledge Information about content of leadership; definitions; basic
concepts such as communication, feedback, contingent
rewards; typically through classroom education
Personal growth Self-awareness and understanding strengths and
weaknesses; getting in touch with personal values, dreams,
and aspirations
Skills development: supervisory, How to apply knowledge; includes supervisor and
managerial, and interpersonal skills managerial skills such as planning, goal setting, and
monitoring, as well as conceptual skills such as problem
solving and decision making, and skills related to managing
interpersonal relations
Creativity Expanding ability to think in novel and innovative ways
and to think “outside the box”
Strategic issues Developing mission; strategic planning
4. Explain the criteria for effective development programs. Which ones do you think are most
important? Why?
There are eight criteria that can be used to determine the effectiveness of a development program. First a
development program must provide leaders with assessment about their current abilities, strengths,
weaknesses, and so forth. The information leads to the second criteria which is self-awareness and
motivation. The third factor is availability of and exposure to rich experience that encourage learning.
Fourth, leaders must have opportunities to practice the behavior and skills they learn in the development
process. Fifth, there must be feedback about the progress and follow-up about what needs to be
adjusted. The other two factors that support effective development are presence of role models and
support from the organization. Finally, development cannot be effective if what is taught does not fit
well with the organization.
The self-awareness and fit can be argued to be the most important two factors. Without self-
awareness, there is not interest and motivation to learn. Without a good fit with the organization, any
learning will go to waste.
5. Compare and contrast the methods of leader development described in this chapter. What
advantages and disadvantages do they each provide? When should they be used?
6. What are the core and cornerstone of development? How are they related?
Coaching and mentoring are both developmental relationships. Coaching involves providing
individualized and constructive feedback about current behavior to improve the future. It is specific and
task-related. Mentoring is a supportive long-term, formal or informal relationships that also provides
feedback about behavior and performance but tends to be more generic and not as focused on specific
behaviors or skills. Both coaching and mentoring depend on establishing trust.
Feedback intensive programs provide leaders with feedback about their style and behaviors from many
sources including followers, superiors and, in some cases, outsiders to the organization. The leader’s
self-assessment is also included. The feedback is provided objectively and sources remain anonymous.
Such programs are ideal for increasing awareness and can be highly effective when combined with
coaching and mentoring to address needed areas. Handling the information professionally is key to their
success. Specific factors that contribute to their success include the following:
Factor Description
Organizational buy-in and readiness All levels of the organization must be well informed and
prepared regarding process, content, and goals of program.
Top management support is particularly essential.
Confidentiality and careful Maintaining anonymity of the raters and confidentiality in
administration the process assure continued trust in the results and goals.
Careful administration of surveys and handling of data are
also essential.
Well-trained facilitator Program success requires the skills of a well-trained,
professional, internal or external facilitator to help
interpret the information and deal with sensitive data and
discomfort.
Focus on behaviors The feedback should focus on specific behaviors that are
related to job performance rather than general evaluative
statements.
Clear explanation of purpose and goals Those providing feedback and the leader receiving the
feedback should be very clear on the goal of the program
and how data will be used.
Separate feedback from groups Present the leader with separate feedback from each group
or source to help clarity, interpretation, and understanding.
Follow-up The initial step of increasing leaders’ self-awareness must
be followed up with action plans.
Combine with other developmental The feedback increases awareness but without other
programs developmental tools, does not provide the leader with the
means of changing behaviors.
Classroom education is a highly popular method of leader development. It tends to be efficient and
allows organizations to convey knowledge to large groups of people in a consistent manner. It is used
extensively at the supervisory and mid-level manager levels. It can be a good method of increasing self-
10. What is the role of culture in leader development? What cultural factors must be taken into
account when implementing a program?
Cultural values affect how the learning process is implemented, how feedback is provided, and the
setting in which learning and development can be optimized. Leader development therefore must be
considered within the cultural context. Below are the cultural values and how they impact development.
11. What are specific issues to consider when developing women and members of minority
groups?
Women and minorities have specific development needs that cannot always be addressed through a
generic development program. Women and minorities have differential opportunities for growth and
limited exposure to development opportunities in many organizations. They are often evaluated based
on norms that are developed for white males and that may not be as relevant for them. A development
program that supports the growth of women and minorities must consider the following:
Opportunity to participate in single-identity development programs that reinforce validation,
provide role models and networking, and can make available relevant content to address specific
concerns
Encouraging developmental relationships through formal and informal organizational programs to
assure that women and minorities have access to powerful coaches and mentors who are both
similar to and different from them
Developing networks that can help women and minorities in their career development process
The key to successful development is a good fit between the person and the organization. Personal
factors include personal commitment on the part of the leader. Leaders must be committed to their own
development. The organization must also show commitment and resources by providing the right
amount of support and opportunities. The development program must reflect organizational vision,
mission, and strategic goals and fit the leaders’ personal goals to a reasonable extent.
Students should be encouraged to explore the various issues. There is no right or wrong answer. It is
important to clarify values and priorities both in the short term and the long term. Any decision that is
based on careful thinking and awareness of the challenges that will be present regardless of the decision
made, will be the right one. For the purpose of this exercise, the process of thinking about fit and
priorities is what matters.
Total time: 30 minutes for steps I and II; more time needed for reflection and making contacts with
mentors,
The list is dynamic and changes as students develop new competencies and face new challenges. They
should be encouraged to review the list every few months to identify potential gaps.
Course Assignment
This exercise can be used as an assignment for the course. Steps 1 and 2 can be assigned at the end of
the semester as a developmental exercise. Or, these steps can be assigned earlier in the semester and a
follow-up to see how the process of establishing a mentoring relationship (Step 3) can be done at the
end of the semester.
Grading this assignment cannot be based on the content of the mission statement, rather
students should be evaluated on how thoroughly they complete the process. Preferably, a pass/fail grade
should be assigned.
Total time: Minimum 30 minutes and up to 2 hours depending on level of student involvement
Course Assignment
This exercise can be used as an assignment for the course. It can be used either as a concluding exercise
or as a staged exercise that students revise several times during the semester. Grading this assignment
cannot be based on the content of the mission statement, rather students should be evaluated on how
thoroughly they complete the process. Preferably, a pass/fail grade should be assigned.
Case summary
SW Airlines is one of the most successful airlines in the United States. Much of its success is related to
its special culture that focuses on the individual and on both leader and leadership development. Current
and past executives are all highly committed to maintaining the unique culture and they pay particular
attention to development. The company is highly disciplined about hiring the right people who have a
chance to fit, is not shy about allowing them to flourish, and firing those who do not fit. Additionally,
SW has extensive formal and informal training, coaching, and mentoring to develop its employees.
Employees are exposed to many role models who take their responsibility for developing others
seriously.
The development process starts at the time of interviews where people are carefully screened and
selected to fit the culture of the company. All employees are mentored and coached particularly to
assure that they develop the right attitude. Southwest further offers formal leadership training programs
available to all employees. Internal leaders not only participate and present in those training sessions,
but they also consciously role model the right leader behaviors in their regular interactions with
employees.
Southwest is particularly focused on having a good fit between the person and the organization
as the primary source of success for employees. Barrett personally volunteers to mentor anyone who
wants to learn and to succeed.
2. What is the role of culture and fit in the success of the company?
The fit between employees and the organizational culture is the source of success of the organization.
Through careful selection and training, the organization assures a match between who people are and
their values and the values of the company. Those who don’t fit either do not get hired or do not survive
long. Constant reminders of the culture and training about the culture assure continuity of the fit. This
carefully managed and monitored fit continues to be a source of competitive advantage for Southwest.