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Dr.Nader Daee

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six scholarly references

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Provide an overview of the leader including history and a biography. Explain why this leader was chosen.

Research Summary

Provide a summary by week of what your team reported. Feel free to update and edit the submitted reports as your team may have discovered additional information.. Use the “Research Summary” as the heading and then week by week use the following sub-headings as appropriate

Literature Review

Select three scholarly resources that you have used in this document and provide a report on each of the reference sources. You must give the reader an encapsulated review of what information you found most relevant to your research. Identify, discuss, and describe in detail significant agreement among your sources. The goal should be a paragraph containing a minimum of three to five sentences per review.


Apply the concepts from Chapter 12 and the scholarly articles from the literature review section to create a leadership profile of the subject of your team project and use each concept as a sub-heading.


What Is Leadership? 1 Contrast leadershipand management. We define leadership as the ability to influence a group toward the achievement of a vision or set of goals. The source of this influence may be formal, such as that provided by managerial rank in an organization. But not all leaders are managers, nor are all managers leaders. Just because an organization provides its managers with certain formal rights is no assurance they will lead effectively. Nonsanctioned leadership—the ability to influence that arises outside the formal structure of the organization—is often as important or more important than formal influence. Leaders can emerge from within a group as well as by formal appointment. leadership The ability to influence a group toward the achievementof a vision or set of goals. Organizations need strong leadership and strong management for optimal effectiveness. We need leaders to challenge the status quo, create visions of the future, and inspire organizational members to achieve the visions. We also need managers to formulate detailed plans, create efficient organizational structures, and oversee day-to-day operations. Note: Survey of 700 respondents. Source: Based on J. Brox, “The Results Are In: How Do You Ensure You’re Constantly Developing as a Leader?” (May 14, 2013), http://www.refreshleadership.com/index.php/2013/05/results-ensure-youre-constantly-developing-leader/#more-4732.” Trait Theories 2 Summarize the conclusions of trait theories of leadership. Throughout history, strong leaders have been described by their traits. Trait theories of leadership focus on personal qualities and characteristics. The search for personality, social, physical, or intellectual attributes that differentiate leaders from nonleaders goes back to the earliest stages of leadership research. trait theories of leadership Theories that consider personal qualities and characteristics that differentiate leaders from nonleaders. Early efforts to isolate leadership traits resulted in a number of dead ends. A research review in the late 1960s identified nearly 80 leadership traits, but only 5 were common to 4 or more of the investigations.1 By the 1990s, we could say most leaders “are not like other people,” but the particular traits that characterized them varied a great deal from review to review.2 Identifying leadership traits remained a challenge. A breakthrough came when researchers began organizing traits around the Big Five personality framework (see Chapter 5).3 Most of the dozens of traits in various leadership reviews fit under one of the Big Five (ambition and energy are part of extraversion, for instance), giving strong support to certain traits as predictors of leadership. A comprehensive review of the leadership literature organized around the Big Five has found extraversion to be the most predictive trait of effective leadership,4but it is more strongly related to the way leaders emerge than to their effectiveness. Sociable and dominant people are more likely to assert themselves in group situations, but leaders need to make sure they’re not too assertive. One study found leaders who scored very high on assertiveness were less effective than those who were moderately high.5 Unlike agreeableness and emotional stability, conscientiousness and openness to experience also showed strong relationships to leadership, though not quite as strong as extraversion. Overall, the trait approach does have something to offer. Leaders who like being around people and are able to assert themselves (extraverted), who are disciplined and able to keep commitments they make (conscientious), and who are creative and flexible (open) do have an apparent advantage when it comes to leadership, suggesting good leaders do have key traits in common. One reason is that conscientiousness and extraversion are positively related to leaders’ self-efficacy, which explained most of the variance in subordinates’ ratings of leader performance.6 People are more likely to follow someone who is confident she’s going in the right direction. Photo 12-1Indra Nooyi, CEO and board chairman of PepsiCo, is described as fun-loving, sociable, agreeable, conscientious, emotionally stable, and open to experiences. Recognized as one of the most powerful women in business, Nooyi’s personal qualities andtraits have contributed to her job performance and career success.  Source: PRNewsFoto/PepsiCo, Ray Hand. Another trait that may indicate effective leadership is emotional intelligence (EI), discussed in Chapter 4 . Advocates of EI argue that without it, a person can have outstanding training, a highly analytical mind, a compelling vision, and an endless supply of terrific ideas but still not make a great leader. This may be especially true as individuals move up in an organization.7 A core component of EI is empathy. Empathetic leaders can sense others’ needs, listen to what followers say (and don’t say), and read the reactions of others. A leader who effectively displays and manages emotions will find it easier to influence the feelings of followers by expressing genuine sympathy and enthusiasm for good performance, and by showing irritation when employees fail to perform.8 The link between EI and leadership effectiveness may be worth investigating in greater detail.9 Recent research has demonstrated that people high in EI are more likely to emerge as leaders, even after taking cognitive ability and personality into account.10 Based on the latest findings, we offer two conclusions. First, contrary to what we believed 20 years ago and thanks to the Big Five, we can say that traits can predict leadership. Second, traits do a better job predicting the emergence of leaders and the appearance of leadership than distinguishing between effective and ineffective leaders.11 The fact that an individual exhibits the right traits and that others consider him or her a leader does not necessarily mean the leader is successful at getting the group to achieve its goals. Behavioral Theories 3 Identify the central tenetsand main limitations of behavioral theories. The failures of early trait studies led researchers in the late 1940s through the 1960s to wonder whether there was something unique in the way effective leaders behave. Trait research provides a basis for selecting the right people for leadership. In contrast, behavioral theories of leadership implied we could train people to be leaders. behavioral theories of leadership Theories proposing that specificbehaviors differentiate leadersfrom nonleaders. The most comprehensive theories resulted from the Ohio State Studies in the late 1940s,12 which sought to identify independent dimensions of leader behavior. Beginning with more than a thousand dimensions, the studies narrowed the list to two that substantially accounted for most of the leadership behavior described by employees: initiating structure and consideration. Initiating structure is the extent to which a leader is likely to define and structure his or her role and those of employees in the search for goal attainment. It includes behavior that attempts to organize work, work relationships, and goals. A leader high in initiating structure is someone who “assigns group members to particular tasks,” “expects workers to maintain definite standards of performance,” and “emphasizes the meeting of deadlines.” initiating structure The extent to which a leader is likely to define and structure his or her role and those of subordinates in the search for goal attainment. Consideration is the extent to which a person’s job relationships are characterized by mutual trust, respect for employees’ ideas, and regard for their feelings. A leader high in consideration helps employees with personal problems, is friendly and approachable, treats all employees as equals, and expresses appreciation and support. In a recent survey, when asked to indicate what most motivated them at work, 66 percent of employees mentioned appreciation.13 consideration The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinates’ ideas, and regard for their feelings. Photo 12-2Morgan Smith (left) is an employee-oriented leader who takes a personal interest in the needs of his employees. As former owner and managing partner of Boneheads Restaurant in Lake Forest, California, Smith is described as a generous, kind, and cheerful manager who shows respect for employees and helps them to reach their full potential.  Source: Jebb Harris/ZUMAPRESS/Newscom. Leadership studies at the University of Michigan’s Survey Research Center had similar objectives to the Ohio State Studies: to locate behavioral characteristics of leaders that appeared related to performance effectiveness. The Michigan group also identified two behavioral types: the employee-oriented leader emphasized interpersonal relationships by taking a personal interest in employees’ needs and accepting individual differences among them, and the production-oriented leader emphasized technical or task aspects of jobs, focusing on accomplishing the group’s tasks. These dimensions are closely related to the Ohio State dimensions. Employee-oriented leadership is similar to consideration, and production-oriented leadership is similar to initiating structure. In fact, most researchers use the terms synonymously.14 employee-oriented leader A leader who emphasizes interpersonal relations, takes a personal interest in the needs of employees, and accepts individual differences among members. production-oriented leader A leader who emphasizes technical or task aspects of the job. At one time, the results of behavioral theories tests were thought to be disappointing. However, a review of 160 studies found the followers of leaders high in consideration were more satisfied with their jobs, were more motivated, and had more respect for their leaders. Initiating structure was more strongly related to higher levels of group and organization productivity and more positive performance evaluations. glOBalization! Leaders Broaden Their Span of Controlin Multinational Organizations In the past 20 years, senior corporate leaders have increased their average number of direct reports from 5 to 10 as their organizations have spread into new multinational territories. You may think this is yet another example of organization bloat. In reality, it has more to do with the desire of today’s CEOs to directly engage with all areas of their business interests, bringing in representatives from new overseas ventures and even eliminating a significant middle layer of hierarchy (the role of the deputy, or COO, is on the decline among Fortune 500 companies). In fact, 80 percent of the new managers reporting to CEOs are functional leaders, who have been increasingly taking on general manager roles. While the jump from 5 to 10 may not seem big in terms of headcount, the fact that these new direct reports represent diverse corporate interests poses a challenge for leadership. Research suggests the number of direct reports should be fewer than five if significant cross-organizational collaboration is needed, as in most multinational organizations. Experts also advise limiting the CEO’s span of control when organizations are in transition, as globally expanding businesses are by definition. The type of leadership the organization’s particular CEO embodies should also suggest the optimal span of control, as should the national cultures of top overseas managers. A study from 23 countries showed that, in agreement with leader–member exchange (LMX) theory discussed in this chapter, individuals whose leaders treat them as favorites trust their leaders more in individualistic than in collectivistic cultures. This suggests that a CEO may be effective with a higher number of direct reports when they are from the organization’s Asian business interests, for example, because the collectivist culture’s respect for authority does not depend on personalized LMX attention. A CEO managing Western-culture direct reports might be better advised to keep the number to five or fewer in order to leverage the positive outcomes of high LMX. Leadership issues are always at the forefront as companies expand. Companies have stretched and flattened their organizational structures to meet their global aspirations, but few leaders have directly addressed the high need for mental proximity—the ability to connect closely with their key employees, who are, after all, influential leaders themselves. Sources: B. Groysberg and M. Slind, “Leadership Is a Conversation,” Harvard Business Review (June 2012), pp. 76–84; G. L. Neilson and J. Wulf, “How Many Direct Reports?” Harvard Business Review (April 2012), pp. 112–119; and T. Rockstuhl, J. H. Dulebohn, S. Ang, and L. M. Shore, “Leader-Member Exchange (LMX) and Culture: A Meta-Analysis of Correlates of LMX across 23 Countries,” Journal of Applied Psychology 97 (2012), pp. 1097–1130. Research from the GLOBE study suggests there are international differences in the preference for initiating structure and consideration.15 Based on the values of Brazilian employees, for instance, a U.S. manager leading a team in Brazil would need to be team oriented, participative, and humane. Leaders high in consideration would succeed best in this culture. As one Brazilian manager said in the study, “We do not prefer leaders who take self-governing decisions and act alone without engaging the group. That’s part of who we are.” Compared to U.S. employees, the French have a more bureaucratic view of leaders and are less likely to expect them to be humane and considerate. A leader high in initiating structure (relatively task-oriented) will do best and can make decisions in a relatively autocratic manner. A manager who scores high on consideration (people oriented) may find that style backfires in France. According to the study, Chinese culture emphasizes being polite, considerate, and unselfish, but it has a high performance orientation. Thus, consideration and initiating structure may both be important. Summary of Trait Theories and Behavioral Theories Leaders who have certain traits and who display consideration and structuring behaviors do appear to be more effective. Perhaps you’re wondering whether conscientious leaders (trait) are more likely to be structuring (behavior) and extraverted leaders (trait) to be considerate (behavior). Unfortunately, we are not sure there is a connection. Future research is needed to integrate these approaches. Some leaders may have the right traits or display the right behaviors and still fail. As important as traits and behaviors are in identifying effective or ineffective leaders, they do not guarantee success. Context matters, too, which has given rise to the contingency theories we discuss next. Contingency Theories 4 Assess contingency theories of leadership by their level of support. Some tough-minded leaders seem to gain a lot of admirers when they take over struggling companies and lead them out of the doldrums. However, predicting leadership success is more complex than isolating a few traits or behaviors. What works in very bad times and in very good times doesn’t seem to translate into long-term success. When researchers looked at situational influences, it appeared that under condition a, leadership style x would be appropriate, whereas style y was more suitable for condition b, and style z for condition c. But what were conditions a, b, and c? We next consider four approaches to isolating situational variables: the Fiedler model, situational theory, path–goal theory, and the leader-participation model. The Fiedler Model Fred Fiedler developed the first comprehensive contingency model for leadership.16 The Fiedler contingency model proposes that effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives the leader control. Fiedler contingency model The theory that effective groups depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader. Identifying Leadership Style Fiedler believes a key factor in leadership success is the individual’s basic leadership style. He created the least preferred co-worker (LPC) questionnaire to identify that style by measuring whether a person is task or relationship oriented. The LPC questionnaire asks respondents to think of all the co-workers they have ever had and describe the one they least enjoyed working with by rating that person on a scale of 1 to 8 for each of 16 sets of contrasting adjectives (such as pleasant–unpleasant, efficient–inefficient, open–guarded, supportive–hostile). If you describe the person you are least able to work with in favorable terms (a high LPC score), Fiedler would label you relationship oriented. If you see your least-preferred co-worker in unfavorable terms (a low LPC score), you are primarily interested in productivity and are task oriented. About 16 percent of respondents score in the middle range17 and thus fall outside the theory’s predictions. Our discussion relates to the 84 percent who score in the high or low range of the LPC questionnaire. least preferred co-worker (LPC) questionnaire An instrument thatpurports to measure whether a person is task or relationship oriented. Fiedler assumes an individual’s leadership style is fixed; if a situation requires a task-oriented leader and the person in the leadership position is relationship oriented, either the situation has to be modified or the leader has to be replaced to achieve optimal effectiveness. What’s My LPC Score? In the Self-Assessment Library (available in MyManagementLab), take assessment IV.E.5 (What’s My LPC Score?). Defining the Situation After assessing an individual’s basic leadership style through the LPC questionnaire, we match the leader with the situation. Fiedler identified three contingency or situational dimensions: Leader–member relations is the degree of confidence, trust, and respect members have in their leader. Task structure is the degree to which the job assignments are procedurized (that is, structured or unstructured). Position power is the degree of influence a leader has over power variables such as hiring, firing, discipline, promotions, and salary increases. leader–member relations The degree of confidence, trust, and respect subordinates have in their leader. task structure The degree to which job assignments are procedurized. position power Influence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases. We evaluate the situation in terms of these three variables. Fiedler states that the better the leader–member relations, the more highly structured the job, and the stronger the position power, the more control the leader has. A very favorable situation (in which the leader has a great deal of control) might include a payroll manager who is well respected and whose employees have confidence in him (good leader–member relations), activities that are clear and specific—such as wage computation, check writing, and report filing (high task structure), and provision of considerable freedom to reward and punish employees (strong position power). An unfavorable situation might be that of the disliked chairperson of a volunteer United Way fundraising team. In this job, the leader has very little control. Matching Leaders and Situations Combining the three contingency dimensions yields eight possible situations in which leaders can find themselves (Exhibit 12-1). The Fiedler model proposes matching an individual’s LPC score and these eight situations to achieve maximum leadership effectiveness.18 Fiedler concluded that task-oriented leaders perform better in situations very favorable to them and very unfavorable. So, when faced with a category I, II, III, VII, or VIII situation, task-oriented leaders perform better. Relationship-oriented leaders, however, perform better in moderately favorable situations—categories IV, V, and VI. Fiedler later condensed these eight situations down to three.19 Task-oriented leaders perform best in situations of high and low control, while relationship-oriented leaders perform best in moderate control situations. How would you apply Fiedler’s findings? You would match leaders—in terms of their LPC scores—with the type of situation—in terms of leader–member relationships, task structure, and position power—for which they were best suited. But remember that Fiedler views an individual’s leadership style as fixed. Therefore, there are only two ways to improve leader effectiveness. Exhibit 12-1 Findings from the Fiedler Model First, you can change the leader to fit the situation—as a baseball manager puts a right- or left-handed pitcher into the game depending on the hitter. If a group situation rates highly unfavorable but is currently led by a relationship-oriented manager, for example, the group’s performance could be improved under a manager who is task-oriented. The second alternative is to change the situation to fit the leader by restructuring tasks or increasing or decreasing the leader’s power to control factors such as salary increases, promotions, and disciplinary actions. Evaluation Studies testing the overall validity of the Fiedler model find considerable evidence to support substantial parts of it.20 If we use three categories rather than the original eight, ample evidence supports Fiedler’s conclusions.21 But the logic underlying the LPC questionnaire is not well understood, and respondents’ scores are not stable.22 The contingency variables are also complex and difficult for practitioners to assess.23 Other Contingency Theories Although LPC theory is the most researched contingency theory, three others deserve mention. Situational Leadership Theory Situational leadership theory (SLT) focuses on the followers. It says successful leadership depends on selecting the right leadership style contingent on the followers’ readiness, the extent to which they are willing and able to accomplish a specific task. A leader should choose one of four behaviors depending on follower readiness. situational leadership theory (SLT) A contingency theory that focuses on followers’ readiness. If followers are unable and unwilling to do a task, the leader needs to give clear and specific directions; if they are unable and willing, the leader needs to display high task orientation to compensate for followers’ lack of ability, and high relationship orientation to get them to “buy into” the leader’s desires. If followers are able and unwilling, the leader needs to use a supportive and participative style; if they are both able and willing, the leader doesn’t need to do much. SLT has intuitive appeal. It acknowledges the importance of followers and builds on the logic that leaders can compensate for their limited ability and motivation. Yet research efforts to test and support the theory have generally been disappointing.24 Why? Possible explanations include internal ambiguities and inconsistencies in the model itself as well as problems with research methodology in tests. So, despite its intuitive appeal and wide popularity, any endorsement must be cautious for now. Path–Goal Theory Developed by Robert House, path–goal theory extracts elements from the Ohio State leadership research on initiating structure and consideration, and the expectancy theory of motivation.25 The theory suggests it’s the leader’s job to provide followers with information, support, or other resources necessary to achieve goals. (The term path–goal implies effective leaders clarify followers’ paths to their work goals and make the journey easier by reducing roadblocks.) path–goal theory A theory that states that it is the leader’s job to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization. Photo 12-3CEO Alan Mulally led a successful turnaround effort at Ford Motor Company by applying the path–goal theory. He directed managers and employees toward the goal of making Ford globally competitive and profitable and developed the Way Forward plan that focused on everyone in the company operating as one team around the world.  Source: REUTERS/James Fassinger. According to path–goal theory, whether a leader should be directive or supportive, or should demonstrate some other behavior, depends on complex analysis of the situation. The theory predicts: Directive leadership yields greater satisfaction when tasks are ambiguous or stressful than when they are highly structured and well laid out. Supportive leadership results in high performance and satisfaction when employees are performing structured tasks. Directive leadership is likely to be perceived as redundant among employees with high ability or considerable experience. In a study of 162 workers in a document-processing organization, researchers found workers’ conscientiousness was related to higher levels of performance only when supervisors set goals and defined roles, responsibilities, and priorities.26 Other research has found that goal-focused leadership can lead to higher levels of emotional exhaustion for subordinates who are low in conscientiousness and emotional stability.27 These studies demonstrate that leaders who set goals enable conscientious followers to achieve higher performance but may cause stress for workers who are low in conscientiousness. Leader-Participation Model The final contingency theory we cover argues that the way the leader makes decisions is as important as what she or he decides. Victor Vroom and Phillip Yetton’s leader-participation model relates leadership behavior and participation in decision making.28 Like path–goal theory, it says leader behavior must adjust to reflect the task structure. The model is normative—it provides a decision tree of seven contingencies and five leadership styles for determining the form and amount of participation in decision making. leader-participation model A leadership theory that provides a set of rules to determine the form and amount of participative decision making in different situations. As one leadership scholar noted, “Leaders do not exist in a vacuum”; leadership is a symbiotic relationship between leaders and followers.29 But the theories we’ve covered to this point assume leaders use a fairly homogeneous style with everyone in their work unit. Think about your experiences in groups. Did leaders often act very differently toward different people? Our next theory considers differences in the relationships leaders form with diverse followers. Leader–Member Exchange (LMX) Theory Think of a leader you know. Does this leader have favorites who make up his or her ingroup? If you answered “yes,” you’re acknowledging the foundation of leader–member exchange theory.30 Leader–member exchange (LMX) theory argues that, because of time pressures, leaders establish a special relationship with a small group of their followers. These individuals make up the ingroup—they are trusted, get a disproportionate amount of the leader’s attention, and are more likely to receive special privileges. Other followers fall into the outgroup. leader–member exchange (LMX) theory A theory that supports leaders’ creation of ingroups and outgroups; subordinates with ingroup status will have higher performance ratings, less turnover, and greater job satisfaction. LMX theory proposes that early in the history of the interaction between a leader and a given follower, the leader implicitly categorizes the follower as an “in” or an “out”; that relationship is relatively stable over time. Leaders induce LMX by rewarding employees with whom they want a closer linkage and punishing those with whom they do not.31 For the LMX relationship to remain intact, the leader and the follower must invest in the relationship. Just how the leader chooses who falls into each category is unclear, but there is evidence ingroup members have demographic, attitude, and personality characteristics similar to those of their leader or a higher level of competence than outgroup members32 (see Exhibit 12-2). Leaders and followers of the same gender tend to have closer (higher LMX) relationships than those of different genders.33 Even though the leader does the choosing, the follower’s characteristics drive the categorizing decision. Research to test LMX theory has been generally supportive, with substantive evidence that leaders do differentiate among followers; these disparities are far from random; and followers with ingroup status will have higher performance ratings, engage in more helping or “citizenship” behaviors at work, and report greater satisfaction with their superior.34 One study conducted in Portugal and the United States found that leader–member exchange was associated strongly with followers’ commitment to the organization when leaders were seen as embodying the values and identity of the organization.35 These findings for ingroup members shouldn’t be surprising, given our knowledge of self-fulfilling prophecy (see Chapter 6). Leaders invest resources with those they expect to perform best. Believing ingroup members are the most competent, leaders treat them as such and unwittingly fulfill their prophecy. Exhibit 12-2 Leader-Member Exchange Theory Leader–follower relationships may be stronger when followers have a more active role in shaping their own job performance. A study in Turkey demonstrated that when leaders differentiated strongly among their followers in terms of their relationships (some followers had very positive leader–member exchange, others very poor), employees responded with more negative work attitudes and higher levels of withdrawal behavior.36 Research on 287 software developers and 164 supervisors showed leader–member relationships have a stronger impact on employee performance and attitudes when employees have higher levels of autonomy and a more internal locus of control.37 Charismatic Leadership and Transformational Leadership 5 Contrast charismatic and transformational leadership. In this section, we present two contemporary leadership theories—charismatic leadership and transformational leadership—with a common theme: They view leaders as individuals who inspire followers through words, ideas, and behaviors. Charismatic Leadership Martin Luther King Jr., Ronald Reagan, Mary Kay Ash (founder of Mary Kay Cosmetics), and Steve Jobs (co-founder of Apple Computer) are frequently cited as charismatic leaders. What do they have in common? What Is Charismatic Leadership? Sociologist Max Weber defined charisma (from the Greek for “gift”) more than a century ago as “a certain quality of an individual personality, by virtue of which he or she is set apart from ordinary people and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities. These are not accessible to the ordinary person and are regarded as of divine origin or as exemplary, and on the basis of them the individual concerned is treated as a leader.”38 Weber argued that charismatic leadership was one of several ideal types of authority. The first researcher to consider charismatic leadership in terms of OB was Robert House. According to House’s charismatic leadership theory , followers attribute heroic or extraordinary leadership abilities when they observe certain behaviors, and tend to give these leaders power.39 A number of studies have attempted to identify the characteristics of charismatic leaders: They have a vision, are willing to take personal risks to achieve that vision, are sensitive to follower needs, and exhibit extraordinary behaviors40 (see Exhibit 12-3). charismatic leadership theory A leadership theory that states that followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. Vision and articulation. Has a vision—expressed as an idealized goal—that proposes a future better than the status quo; and is able to clarify the importance of the vision in terms that are understandable to others. Personal risk. Willing to take on high personal risk, incur high costs, and engage in selfsacrifice to achieve the vision. Sensitivity to follower needs. Perceptive of others’ abilities and responsive to their needs and feelings. Unconventional behavior. Engages in behaviors that are perceived as novel and counter to norms. Exhibit 12-3 Key Characteristics of a Charismatic Leader Source: Based on J. A. Conger and R. N. Kanungo, Charismatic Leadership in Organizations (Thousand Oaks, CA: Sage, 1998), p. 94. Are Charismatic Leaders Born or Made? Are charismatic leaders born with their qualities? Or can people actually learn to be charismatic leaders? Yes, and yes. Individuals are born with traits that make them charismatic. In fact, studies of identical twins have found they score similarly on charismatic leadership measures, even if they were raised in different households and never met. Personality is also related to charismatic leadership; charismatic leaders are likely to be extraverted, self-confident, and achievement oriented.41 Consider Presidents Barack Obama and Ronald Reagan: Like them or not, they are often compared because both possess the qualities of charismatic leaders. To develop an aura of charisma by maintaining an optimistic view, use passion as a catalyst for generating enthusiasm, and communicate with the whole body, not just with words. Use an animated voice, reinforce your message with eye contact and enthusiastic expressions, and use gestures for emphasis. Draw others in by creating a bond that inspires them to follow. Bring out the potential in followers by tapping into their emotions. Recent research indicates that your presence matters as well in creating a charismatic impression. If you stay active and central in your leadership roles, you will naturally communicate your vision for achieving goals to your followers, which increases the likelihood that you will be seen as charismatic.42 How Charismatic Leaders Influence Followers How do charismatic leaders actually influence followers? By articulating an appealing vision , a long-term strategy for attaining a goal by linking the present with a better future for the organization. Desirable visions fit the times and circumstances and reflect the uniqueness of the organization. vision A long-term strategy for attaining a goal or goals. A vision needs an accompanying vision statement , a formal articulation of an organization’s vision or mission. Charismatic leaders may use vision statements to imprint on followers an overarching goal and purpose. They build followers’ self-esteem and confidence with high performance expectations and the belief that followers can attain them. Next, through words and actions the leader conveys a new set of values and sets an example for followers to imitate. One study of Israeli bank employees showed charismatic leaders were more effective because their employees personally identified with them. Charismatic leaders also set a tone of cooperation and mutual support. A study of 115 government employees found they had a stronger sense of personal belonging at work when they had charismatic leaders, increasing their willingness to engage in helping and compliance-oriented behavior.43 vision statement A formal articulation of an organization’svision or mission. Finally, the charismatic leader engages in emotion-inducing and often unconventional behavior to demonstrate courage and conviction about the vision. Followers “catch” the emotions their leader is conveying.44 Does Effective Charismatic Leadership Depend on the Situation? People working for charismatic leaders are motivated to exert extra effort and, because they like and respect their leaders, express greater satisfaction. Organizations with charismatic CEOs are more profitable, and charismatic college professors enjoy higher course evaluations.45 Even in laboratory studies, when people are psychologically aroused, they are more likely to respond to charismatic leaders.46 This may explain why, when charismatic leaders surface, it’s likely to be in politics or religion, or during wartime, or when a business is in its infancy or facing a life-threatening crisis. Franklin D. Roosevelt offered a vision to get the United States out of the Great Depression in the 1930s. In 1997, when Apple Computer was floundering and lacking direction, the board persuaded charismatic co-founder Steve Jobs to return as interim CEO and restore the company to its innovative roots. Another situational factor limiting charisma is the level in the organization. Top executives create vision; it’s more difficult to utilize a person’s charismatic leadership qualities in lower-level management jobs or to align his or her vision with the larger goals of the organization. Finally, people are especially receptive to charismatic leadership when they sense a crisis, when they are under stress, or when they fear for their lives. Charismatic leaders are able to reduce stress for their employees, perhaps because they help make work seem more meaningful and interesting.47 Some peoples’ personalities are especially susceptible to charismatic leadership.48 Consider self-esteem. An individual who lacks self-esteem and questions his or her self-worth is more likely to absorb a leader’s direction rather than establish his or her own way of leading or thinking. The Dark Side of Charismatic Leadership Charismatic business leaders like GE’s Jack Welch, Apple’s Steve Jobs, Southwest Airlines’ Herb Kelleher, and Microsoft’s Steven Ballmer became celebrities on the order of Kate Middleton and Brad Pitt. Every company wanted a charismatic CEO, and to attract them, boards of directors gave them unprecedented autonomy and resources—the use of private jets and multimillion-dollar penthouses, interest-free loans to buy beach homes and artwork, security staffs, and similar benefits befitting royalty. One study showed charismatic CEOs were able to leverage higher salaries even when their performance was mediocre.49 Unfortunately, charismatic leaders who are larger than life don’t necessarily act in the best interests of their organizations.50 Many have allowed their personal goals to override the goals of the organization. The results at companies such as Enron, Tyco, WorldCom, and HealthSouth were leaders who recklessly used organizational resources for their personal benefit and executives who violated laws and ethical boundaries to inflate stock prices and allow leaders to cash in millions of dollars in stock options. Research has shown that individuals who are narcissistic are also higher in some behaviors associated with charismatic leadership.51 It’s not that charismatic leadership isn’t effective; overall, it is. But a charismatic leader isn’t always the answer. Success depends, to some extent, on the situation and on the leader’s vision. Some charismatic leaders—Hitler, for example—are all too successful at convincing their followers to pursue a vision that can be disastrous. How Charismatic Am I? In the Self-Assessment Library (available in MyManagementLab), take assessment II.B.2 (How Charismatic Am I?). Myth or Science? “Top Leaders Feel the Most Stress” Leaders of corporations fight pressures from their boards, customers, managers, and employees. Wouldn’t it stand to reason they are the most stressed people in their organizations? Apparently not. According to studies from Harvard University, the University of California–San Diego, and Stanford University, leadership brings a blissful relief from the stress felt by individuals who are not in managerial roles. Not only did leaders report less anxiety than nonleaders, but their cortisol (stress hormone) levels were also lower, indicating they biologically are less likely to register stress. Another study found that individuals in higher-status occupational groups registered less perceived stress and lower blood pressure readings than those in lower status occupations. If you’re thinking this is one more reason “it’s better at the top,” you may be right, if only partially. It is true that leaders appear to show fewer signs of stress by virtue of being leaders, regardless of higher income or longer job tenure. However, researchers found no “magic level” in an organization at which employees feel a reduction in stress levels. One study found that stress reduction correlates with feelings of control. Leaders with more subordinates and greater power felt less stress than other individuals who knew they had less control over outcomes. Top leaders who control the resources of their corporations and have plenty of employees to carry out their directives therefore can fight stressors before they affect them. Sources: M. Korn, “Top-Level Leaders Have Less Stress Than Others,” The Wall Street Journal (October 3, 2012), p. B6; G. D. Sherman et al. “Leadership Is Associated with Lower Levels of Stress,” Proceedings of the National Academy of Sciences of the United States of America (October 30, 2012), pp. 17903–17907; and E. Wiernik et al., “Occupational Status Moderates the Association between Current Perceived Stress and High Blood Pressure: Evidence from the IPC Cohort Study,” Hypertension (March 2013), pp. 571–577. Transformational Leadership A stream of research has focused on differentiating transformational from transactional leaders.52 The Ohio State studies, Fiedler’s model, and path–goal theory describe transactional leaders , who guide their followers toward established goals by clarifying role and task requirements. Transformational leaders inspire followers to transcend their self-interests for the good of the organization. Transformational leaders can have an extraordinary effect on their followers. Richard Branson of the Virgin Group is a good example of a transformational leader. He pays attention to the concerns and needs of individual followers, changes followers’ awareness of issues by helping them look at old problems in new ways, and excites and inspires followers to put forth extra effort to achieve group goals. Recent research suggests that transformational leaders are most effective when their followers are able to see the positive impact of their work through direct interaction with customers or other beneficiaries.53 Exhibit 12-4 briefly identifies and defines characteristics that differentiate these two types of leaders. transactional leaders Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. transformational leaders Leaders who inspire followers to transcend their own self-interests and who are capable of having a profound and extraordinary effect on followers. Transactional Leader Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments. Management by Exception (active): Watches and searches for deviations from rules and standards, takes correct action. Management by Exception (passive): Intervenes only if standards are not met. Laissez-Faire: Abdicates responsibilities, avoids making decisions. Transformational Leader Idealized Influence: Provides vision and sense of mission, instills pride, gains respect and trust. Inspirational Motivation: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways. Intellectual Stimulation: Promotes intelligence, rationality, and careful problem solving. Individualized Consideration: Gives personal attention, treats each employee individually, coaches, advises. Exhibit 12-4 Characteristics of Transactional and TransformationalLeaders Source: Based on A. H. Eagly, M. C. Johannesen-Schmidt, and M. L. Van Engen, “Transformational, Transactional, and Laissez-faire Leadership Styles: A Meta-Analysis Comparing Women and Men,” Psychological Bulletin 129, no. 4 (2003), pp. 569–591; andT.  A. Judge and J. E. Bono, “Five Factor Model of Personality and Transformational Leadership,” Journal of Applied Psychology 85,no. 5 (2000), pp. 751–765. Transactional and transformational leadership complement each other; they aren’t opposing approaches to getting things done.54 Transformational leadership builds on transactional leadership and produces levels of follower effort and performance beyond what transactional leadership alone can do. But the reverse isn’t true. So if you are a good transactional leader but do not have transformational qualities, you’ll likely only be a mediocre leader. The best leaders are transactional and transformational. Full Range of Leadership Model Exhibit 12-5 shows the full range of leadership model. Laissez-faire is the most passive and therefore least effective of leader behaviors.55 Management by exception—active or passive—is slightly better, but it’s still considered ineffective. Management-by-exception leaders tend to be available only when there is a problem, which is often too late. Contingent reward leadership can be an effective style of leadership but will not get employees to go above and beyond the call of duty. Only with the four remaining styles—all aspects of transformational leadership—are leaders able to motivate followers to perform above expectations and transcend their self-interest for the sake of the organization. Individualized consideration, intellectual stimulation, inspirational motivation, and idealized influence (known as the “four I’s”) all result in extra effort from workers, higher productivity, higher morale and satisfaction, higher organizational effectiveness, lower turnover, lower absenteeism, and greater organizational adaptability. Based on this model, leaders are generally most effective when they regularly use the four I’s. Exhibit 12-5 Full Range of Leadership Model How Transformational Leadership Works Transformational leaders are more effective because they are creative, but also because they encourage those who follow them to be creative, too.56Companies with transformational leaders have greater decentralization of responsibility, managers have more propensity to take risks, and compensation plans are geared toward long-term results—all of which facilitate corporate entrepreneurship.57 One study of information technology workers in China found empowering leadership behavior led to feelings of positive personal control among workers, which increased their creativity at work.58 Another recent study indicated that abusive supervisors negatively affect creativity, not for just their direct reports but for whole teams.59 Companies with transformational leaders show greater agreement among top managers about the organization’s goals, which yields superior organizational performance.60 The Israeli military has seen similar results, showing that transformational leaders improve performance by building consensus among group members.61 Transformational leaders are able to increase follower self-efficacy, giving the group a “can do” spirit.62 Followers are more likely to pursue ambitious goals, agree on the strategic goals of the organization, and believe the goals they are pursuing are personally important.63 Just as vision helps explain how charismatic leadership works, it also explains part of the effect of transformational leadership. One study found vision was even more important than a charismatic (effusive, dynamic, lively) communication style in explaining the success of entrepreneurial firms.64 Photo 12-4The transformational leadership of Cisco CEO John Chambers has helped grow the company into the top global designer and maker of networking equipment, with record sales of $46 billion. Chambers communicated his visionary strategy to employees, encouraged them to be creative, and empowered them to make decisions.  Source: Imaginechina via AP Images. Evaluation of Transformational Leadership Transformational leadership has been supported at diverse job levels and occupations (school principals, teachers, marine commanders, ministers, presidents of MBA associations, military cadets, union shop stewards, sales reps). One study of R&D firms found teams whose project leaders scored high on transformational leadership produced better-quality products as judged one year later and higher profits five years later.65 Another study looking at employee creativity and transformational leadership found employees with transformational leaders had more confidence in their ability to be creative at work and higher levels of creative performance.66 A review of 117 studies testing transformational leadership found it was related to higher levels of individual follower performance, team performance, and organizational performance.67 Transformational leadership isn’t equally effective in all situations. It has a greater impact on the bottom line in smaller, privately held firms than in more complex organizations.68 Transformational leadership may be more effective when leaders can directly interact with the workforce to make decisions than when they report to an external board of directors or deal with a complex bureaucratic structure. One study showed transformational leaders were more effective in improving group potency in teams higher in power distance and collectivism.69 Other research using a sample of employees both in China and the United States found that transformational leadership had a more positive relationship with perceived procedural justice among individuals who were lower in power-distance orientation, which in turn related to a stronger transformational leadership-citizenship behavior relationship among those higher in power distance.70Transformational leaders also obtain higher levels of trust, which reduces stress for followers.71 In short, transformational leadership works through a number of different processes. One study examined how different types of transformational leadership can be effective depending on whether work is evaluated at the team or the individual level.72 Individual-focused transformational leadership is behavior that empowers individual followers to develop, enhance their abilities, and increase self-efficacy. Team-focused transformational leadership emphasizes group goals, shared values and beliefs, and unified efforts. Evidence from a sample of 203 team members and 60 leaders in a business unit found individual transformational leadership associated with higher individual-level performance, whereas team-focused transformational leadership drew higher group-level performance. Transformational leadership theory is not perfect. Contingent reward leadership may not characterize transactional leaders only. And contrary to the full range of leadership model, the four I’s of transformational leadership are not always superior in effectiveness to transactional leadership; contingent reward leadership sometimes works as well as transformational leadership. In summary, transformational leadership is more strongly correlated than transactional leadership with lower turnover rates, higher productivity, lower employee stress and burnout, and higher employee satisfaction.73 Like charisma, it can be learned. One study of Canadian bank managers found branches managed by those who underwent transformational leadership training performed significantly better than branches whose managers did not receive training. The GLOBE study—of 18,000 leaders from 825 organizations in 62 countries—links a number of elements of transformational leadership with effective leadership, regardless of country.74 This conclusion is very important because it disputes the contingency view that leadership style needs to adapt to cultural differences. What elements of transformational leadership appear universal? Vision, foresight, providing encouragement, trustworthiness, dynamism, positiveness, and proactiveness top the list. The GLOBE team concluded that “effective business leaders in any country are expected by their subordinates to provide a powerful and proactive vision to guide the company into the future, strong motivational skills to stimulate all employees to fulfill the vision, and excellent planning skills to assist in implementing the vision.” 75 A vision is important in any culture, but the way it is formed and communicated may need to be adapted. Authentic Leadership: Ethics and Trust 6 Define authentic leadership. Although theories have increased our understanding of effective leadership, they do not explicitly deal with the role of ethics and trust, which some argue is essential to complete the picture. Here, we consider these two concepts under the rubric of authentic leadership.76 What Is Authentic Leadership? SAP’s Co-CEO Bill McDermott’s motto is “Stay Hungry, Stay Humble,” and he appears to practice what he preaches. Campbell Soup’s CEO Denise Morrison decided to lower sodium in the company’s soup products simply because it was the right thing to do. McDermott and Morrison appear to be good exemplars of authentic leadership.77 Authentic leaders know who they are, know what they believe in and value, and act on those values and beliefs openly and candidly. Their followers consider them ethical people. The primary quality produced by authentic leadership is trust. Authentic leaders share information, encourage open communication, and stick to their ideals. The result: People come to have faith in them. authentic leaders Leaders who know who they are, know what they believe in and value, and act on those values and beliefs openly and candidly. Their followers would consider them to be ethical people. There has been limited research on authentic leadership to date. However, recent research indicates that authentic leadership, especially when shared among top management team members, created a positive energizing effect (see affective events theory, discussed in Chapter 4) that heightened firm performance.78 Authentic leadership is a promising way to think about ethics and trust in leadership because it focuses on the moral aspects of being a leader. Transformational or charismatic leaders can have a vision and communicate it persuasively, but sometimes the vision is wrong (as in the case of Hitler), or the leader is more concerned with his or her own needs or pleasures, as were Dennis Kozlowski (ex-CEO of Tyco), Jeff Skilling (ex-CEO of Enron), and Raj Rajaratnam (founder of the Galleon Group).79 Photo 12-5Entrepreneur Grace Liuis an authentic leader. Shown here with her employees, Liu is co-founder and managing director of Asianera, a maker of hand-painted bone china. She built her successful business of high-quality porcelain and innovative design basedon her strong personal core values of respecting the individual andoperating with integrity.  Source: Ton Koene/ZUMApress/Newscom. Am I an Ethical Leader? In the Self-Assessment Library (available in MyManagementLab), take assessment IV.E.4 (Am I an Ethical Leader?). Ethical Leadership Researchers have begun to study the ethical implications in leadership.80 Why now? One reason may be the growing interest in ethics throughout the field of management. Another may be the discovery that many past leaders—such as Martin Luther King Jr., John F. Kennedy, and Thomas Jefferson—suffered ethical shortcomings. Another reason may be the growing realization that although every member of an organization is responsible for ethical behavior, many initiatives aimed at increasing organizational ethical behavior are focused on the leaders. The role of the leader in creating the ethical expectations for all members is crucial.81 A recent study of 2,572 U.S. Army soldiers underscored that ethical top leadership influences not only direct followers, but across all organizational levels, because these top leaders create an ethical culture and expect lower-level leaders to behave along ethical guidelines.82 Ethics and leadership intersect at a number of junctures. Transformational leadership has ethical implications since these leaders change the way followers think. Charisma, too, has an ethical component. Unethical leaders use their charisma to enhance power over followers, directed toward self-serving ends. Leaders who treat their followers with fairness, especially by providing honest, frequent, and accurate information, are seen as more effective.83 Related to this is the concept of humbleness, another characteristic ethical leaders often exhibit as part of being authentic. Research indicates that leaders who model humility help followers to understand the growth process for their own development.84 Leaders rated as highly ethical tend to have followers who engage in more organizational citizenship behaviors and who are more willing to bring problems to the leaders’ attention.85 Recent research also found that ethical leadership reduced interpersonal conflicts.86 Because top executives set the moral tone for an organization, they need to set high ethical standards, demonstrate them through their own behavior, and encourage and reward integrity in others while avoiding abuses of power such as giving themselves large raises and bonuses while laying off employees. A recent research review found that role modeling by top leaders positively influenced managers throughout their organizations to behave ethically and fostered a climate that reinforced group-level ethical conduct. The findings suggest that organizations should invest in ethical leadership training programs, especially in industries with few ethical regulations. The researchers furthermore advised that ethical leadership training programs to teach cultural values should be mandated for leaders who take foreign assignments or manage multicultural work teams.87 For ethical leadership to be effective, it is not enough for the leader to simply possess high moral character. After all, there is no universal standard for ethical behavior, and ethical norms vary by culture, by industry, and even sometimes within an organization. Leaders must be willing to express their ethical beliefs and persuade others to follow their standards. Followers must believe in both the leader and the overlying principles, even if they don’t personally agree with every minor stance. To convey their beliefs, leaders should learn to express their moral convictions in statements that reflect values shared with their organization’s members. Leaders can build on this foundation of trust to show their character, enhance a sense of unity, and create buy-in from followers. The leader’s message should announce high goals and confidence that they can be reached. Ethical leaders’ statements are often positive messages, such as Winston Churchill’s opening for his World War II victory speech: “This is your hour. This is not a victory of a party of or any class. It’s a victory of the great British nation as a whole.” An example of an ethical leader’s negative message is this speech by Gandhi: “Even if all the United Nations opposes me, even if the whole of India forsakes me, I will say, ‘You are wrong. India will wrench with nonviolence her liberty from unwilling hands.’ ” Positive and negative ethical leader statements can be equally effective when they deliver clear, moral, inclusive, goal-setting statements with persuasiveness. In fact, they can set trends in motion to make the seemingly far-fetched become real.88 Leadership is not value-free. In assessing its effectiveness, we need to address the means a leader uses to achieve goals as well as the content of those goals. Scholars have tried to integrate ethical and charismatic leadership by advancing the idea of socialized charismatic leadership —leadership that conveys other-centered (not self-centered) values by leaders who model ethical conduct.89 Socialized charismatic leaders are able to bring employee values in line with their own values through their words and actions.90 socialized charismatic leadership A leadership concept that states that leaders conveyvalues that are other centeredversus self centered and whorole-model ethical conduct. Servant Leadership Scholars have recently considered ethical leadership from a new angle by examining servant leadership .91 Servant leaders go beyond their self-interest and focus on opportunities to help followers grow and develop. They don’t use power to achieve ends; they emphasize persuasion. Characteristic behaviors include listening, empathizing, persuading, accepting stewardship, and actively developing followers’ potential. A recent study of 126 CEOs found that servant leadership is negatively correlated with the trait of narcissism.92 Because servant leadership focuses on serving the needs of others, research has focused on its outcomes for the well-being of followers. servant leadership A leadership style marked by going beyondthe leader’s own self-interest and instead focusing on opportunitiesto help followers grow and develop. An Ethical Choice Holding Leaders Ethically Accountable No one thinks leaders shouldn’t be accountable. Leaders must balance many and conflicting stakeholder demands. The first, largely unspoken, demand is for strong financial performance; leaders are probably terminated more often for missing this goal than for all other factors combined. When one balances the often-extreme pressure for financial performance with the desire most leaders have to act ethically toward their employees, there is unfortunately little leadership accountability to ensure ethical leadership is happening. Given that pressure, ethical leadership may be under-rewarded and depend solely on the leader’s innate decency. Ethical leadership is a relatively new area of research attention. Demonstrating fairness and social responsibility and abiding by the law even run counter to many old-school models of leadership. Consider, for example, legendary management guru Peter Drucker’s advice (1967): “It is the duty of the executive to remove ruthlessly anyone—and especially any manager—who consistently fails to perform with high distinction. To let such a man stay on corrupts the others.” Modern ethical leadership guidelines say this cut-throat mindset fails to consider the moral implications of treating people as objects at an organization’s disposal. While few organizations still require “performance at all costs,” financiers, shareholders, and boards have the reward power to teach leaders which outcomes to value. Ethical leadership resounds positively throughout all organizational levels, resulting in responsible and potentially highly profitable outcomes, but the ultimate ethical test will come when shareholders—and leaders—show signs of balancing these accountabilities themselves. Sources: T. E. Ricks, “What Ever Happened to Accountability?” Harvard Business Review (October 2012), pp. 93–100; J. M. Schaubroeck et al., “Embedding Ethical Leadership Within and Across Organizational Levels,” Academy of Management Journal 55 (2012), pp. 1053–1078; and J. Stouten, M. van Dijke, and D. De Cremer, “Ethical Leadership,” Journal of Personnel Psychology 11 (2012), pp. 1–6. What are the effects of servant leadership? One study of 123 supervisors found it resulted in higher levels of commitment to the supervisor, self-efficacy, and perceptions of justice, which all were related to organizational citizenship behavior.93 This relationship between servant leadership and follower OCB appears to be stronger when followers are focused on being dutiful and responsible.94 Second, servant leadership increases team potency (a belief that one’s team has above-average skills and abilities), which in turn leads to higher levels of group performance.95 Third, a study with a nationally representative sample found higher levels of citizenship associated with a focus on growth and advancement, which in turn was associated with higher levels of creative performance.96 Servant leadership may be more prevalent and more effective in certain cultures.97 When asked to draw images of leaders, for example, U.S. subjects tend to draw them in front of the group, giving orders to followers. Singaporeans tend to draw leaders at the back of the group, acting more to gather a group’s opinions together and then unify them from the rear. This suggests the East Asian prototype is more like a servant leader, which might mean servant leadership is more effective in these cultures. Trust and Leadership Trust is a psychological state that exists when you agree to make yourself vulnerable to another because you have positive expectations about how things are going to turn out.98 Although you aren’t completely in control of the situation, you are willing to take a chance that the other person will come through for you. Trust is a primary attribute associated with leadership; breaking it can have serious adverse effects on a group’s performance.99 trust A positive expectation that another will not act opportunistically. Followers who trust a leader are confident their rights and interests will not be abused.100 Transformational leaders create support for their ideas in part by arguing that their direction will be in everyone’s best interests. People are unlikely to look up to or follow someone they perceive as dishonest or likely to take advantage of them. Thus, as you might expect, transformational leaders do generate higher levels of trust from their followers, which in turn is related to higher levels of team confidence and, ultimately, higher levels of team performance.101 In a simple contractual exchange of goods and services, your employer is legally bound to pay you for fulfilling your job description. But today’s rapid reorganizations, diffusion of responsibility, and collaborative team-based work style mean employment relationships are not stable long-term contracts with explicit terms. Rather, they are more fundamentally based on trusting relationships than ever before. You have to trust that if you show your supervisor a creative project you’ve been working on, he or she won’t steal the credit behind your back. You have to trust that the extra work you’ve been doing will be recognized in your performance appraisal. In contemporary organizations, where work is less closely documented and specified, voluntary employee contribution based on trust is absolutely necessary. Only a trusted leader will be able to encourage employees to reach beyond themselves to a transformational goal. How Is Trust Developed? Trust isn’t just about the leader; the characteristics of followers also influence its development. What key characteristics lead us to believe a leader is trustworthy? Evidence has identified three: integrity, benevolence, and ability (see Exhibit  12-6).102 Exhibit 12-6 The Nature of Trust Integrity refers to honesty and truthfulness. When 570 white-collar employees were given a list of 28 attributes related to leadership, they rated honesty the most important by far.103 Integrity also means having consistency between what you do and say. Benevolence means the trusted person has your interests at heart, even if yours aren’t necessarily in line with theirs. Caring and supportive behavior is part of the emotional bond between leaders and followers. Ability encompasses an individual’s technical and interpersonal knowledge and skills. Even a highly principled person with the best intentions in the world won’t be trusted to accomplish a positive outcome for you if you don’t have faith in his or her ability to get the job done. Does the person know what he or she is talking about? You’re unlikely to listen to or depend on someone whose abilities you don’t believe in. Trust as a Process Trust propensity refers to how likely a particular employee is to trust a leader. Some people are simply more likely to believe others can be trusted.104 Those who carefully document every promise or conversation with their supervisors aren’t very high in trust propensity, and they probably aren’t going to take a leader’s word for anything. Those who think most people are basically honest and forthright will be much more likely to seek out evidence that their leaders have behaved in a trustworthy manner. Trust propensity is closely linked to the personality trait of agreeableness, and people with lower self-esteem are less likely to trust others.105 Time is the final component for building trust. We come to trust people based on observing their behavior over a period of time.106 Leaders need to demonstrate they have integrity, benevolence, and ability in situations where trust is important—say, where they could behave opportunistically or let employees down. Trust can be won in the ability domain by demonstrating competence. Recent research with 100 companies around the world suggests that leaders can build trust by shifting their communication style from top-down commands to ongoing organizational dialogue. When leaders regularly create interpersonal conversations with their employees that are intimate, interactive, and inclusive and that intentionally follow an agenda, followers demonstrate trust with high levels of engagement.107 Leaders who break the psychological contract with workers, demonstrating they aren’t trustworthy, will find employees are less satisfied and less committed, have a higher intent toward turnover, engage in less citizenship behavior, and have lower levels of task performance.108 Leaders who betray trust are especially likely to be evaluated negatively by followers if there is already a low level of leader–member exchange.109 Once it is violated, trust can be regained, but only in certain situations and depending on the type of violation.110 If the cause is lack of ability, it’s usually best to apologize and recognize you should have done better. When lack of integrity is the problem, apologies don’t do much good. Regardless of the violation, saying nothing or refusing to confirm or deny guilt is never an effective strategy for regaining trust. Trust can be restored when we observe a consistent pattern of trustworthy behavior by the transgressor. However, if the transgressor used deception, trust never fully returns, not even after apologies, promises, or a consistent pattern of trustworthy actions.111 What Are the Consequences of Trust? Trust between supervisors and employees has a number of advantages. Here are just a few that research has shown: Trust encourages taking risks. Whenever employees decide to deviate from the usual way of doing things, or to take their supervisors’ word on a new direction, they are taking a risk. In both cases, a trusting relationship can facilitate that leap. Trust facilitates information sharing. One big reason employees fail to express concerns at work is that they don’t feel psychologically safe revealing their views. When managers demonstrate they will give employees’ ideas a fair hearing and actively make changes, employees are more willing to speak out.112 Trusting groups are more effective. When a leader sets a trusting tone in a group, members are more willing to help each other and exert extra effort, which increases trust. Members of mistrusting groups tend to be suspicious of each other, constantly guard against exploitation, and restrict communication with others in the group. These actions tend to undermine and eventually destroy the group. Trust enhances productivity. The bottom-line interest of companies appears to be positively influenced by trust. Employees who trust their supervisors tend to receive higher performance ratings.113 People respond to mistrust by concealing information and secretly pursuing their own interests. Leading for the Future: Mentoring 7 Demonstrate the role mentoring plays in our understanding of leadership. Leaders often take responsibility for developing future leaders. Let’s consider what makes mentoring valuable as well as its potential pitfalls. Mentoring A mentor is a senior employee who sponsors and supports a less-experienced employee, a protégé. Successful mentors are good teachers. They present ideas clearly, listen well, and empathize with protégés’ problems. Mentoring relationships serve career functions and psychosocial functions (see Exhibit 12-7).114 mentor A senior employeewho sponsors and supports a less-experienced employee, called a protégé. Career Functions Psychosocial Functions Lobbying to get the protégé challenging and visible assignments Coaching the protégé to help develop his or her skills and achieve work objectives Providing exposure to influential individuals within the organization Protecting the protégé from possible risks to his or her reputation Sponsoring the protégé by nominating him or her for potential advances or promotions Acting as a sounding board for ideas the protégé might be hesitant to share with a direct supervisor Counseling the protégé to bolster his or her self-confidence Sharing personal experiences with the protégé Providing friendship and acceptance Acting as a role model Exhibit 12-7 Career and Psychological Functions of the Mentoring Relationship Traditional informal mentoring relationships develop when leaders identify a less experienced, lower-level employee who appears to have potential for future development.115 The protégé is often tested with a particularly challenging assignment. If he or she performs acceptably, the mentor will develop the relationship, informally showing the protégé how the organization really works outside its formal structures and procedures. Why would a leader want to be a mentor?116 Many feel they have something to share with the younger generation and want to provide a legacy. Mentoring provides unfiltered access to the attitudes of employees, and protégés can be an excellent source of early warning signals that identify potential organizational problems. Are all employees in an organization likely to participate in a mentoring relationship? Unfortunately, no.117 However, research continues to indicate that employers should establish mentoring programs because they benefit both mentors and protégés. A recent study in Korea found that mentors achieved higher levels of transformational leadership abilities as a result of the process, while organizational commitment and well-being increased for both mentors and protégés.118 Although begun with the best intentions, these formal relationships are not as effective as informal ones.119 Poor planning and design may often be the reason. Mentor commitment is critical to program effectiveness; mentors must see the relationship as beneficial to themselves and the protégé. The protégé must feel he or she has input into the relationship; someone who feels it’s foisted on him or her will just go through the motions.120 Formal mentoring programs are also most likely to succeed if they appropriately match the work style, needs, and skills of protégé and mentor.121 You might assume mentoring is valuable for objective outcomes like compensation and job performance, but research suggests the gains are primarily psychological. Research indicates that while mentoring can have an impact on career success, it is not as much of a contributing factor as ability and personality. It may feel nice to have a mentor, but it doesn’t appear that having a good mentor, or any mentor, is critical to your career. Mentors may be effective not because of the functions they provide, but because of the resources they can obtain; a mentor connected to a powerful network can build relationships that will help the protégé advance. Network ties, whether built through a mentor or not, are a significant predictor of career success.122 If a mentor is not well connected or not a very strong performer, the best mentoring advice in the world will not be very beneficial. Challenges to the Leadership Construct 8 Address challenges to the effectiveness of leadership. “In the 1500s, people ascribed all events they didn’t understand to God. Why did the crops fail? God. Why did someone die? God. Now our all-purpose explanation is leadership.”123 But much of an organization’s success or failure is due to factors outside the influence of leadership. Sometimes it’s a matter of being in the right or wrong place at a given time. In this section, we present two perspectives and one technological change that challenge accepted beliefs about the value of leadership. Leadership as an Attribution As you may remember from Chapter 6, attribution theory examines how people try to make sense of cause-and-effect relationships. The attribution theory of leadership says leadership is merely an attribution people make about other individuals.124 We attribute to leaders intelligence, outgoing personality, strong verbal skills, aggressiveness, understanding, and industriousness.125 At the organizational level, we tend, rightly or wrongly, to see leaders as responsible for both extremely negative and extremely positive performance.126 attribution theory of leadership A leadership theory that says that leadership is merely an attributionthat people make about other individuals. One study of 128 major U.S. corporations found that whereas perceptions of CEO charisma did not lead to objectively better company performance, company performance did lead to perceptions of charisma.127 Employee perceptions of leaders’ behaviors are significant predictors of whether they blame the leader for failure, regardless of how the leader assesses him- or herself.128 A study of more than 3,000 employees from western Europe, the United States, and the Middle East found people who tended to “romanticize” leadership in general were more likely to believe their own leaders were transformational.129 When Merrill Lynch began to lose billions in 2008 as a result of its investments in mortgage securities, it wasn’t long before CEO Stan O’Neal lost his job. O’Neal appeared before the House Oversight and Government Reform Committee of the U.S. Congress for what one committee member termed “a public flogging.” Some called him a “criminal” and others suggested Merrill’s losses during his tenure represented “attempted destruction.”130 Whether O’Neal was responsible for the losses at Merrill or deserved his nine-figure severance package is difficult to answer. However, we can argue that he probably changed very little between 2004 when Fortune described him as a “turnaround genius” and 2009 when he was fired. What changed was the performance of the organization he led. It’s not necessarily wrong to terminate a CEO for flagging financial performance. However, O’Neal’s story illustrates the power of the attribution approach to leadership: hero and genius when things are going well, villain when they aren’t. We make demographic assumptions about leaders. Respondents in a study assumed a leader described with no identifying racial information was white at a rate beyond the base rate of white employees in a company. In scenarios where identical leadership situations are described but the leaders’ race is manipulated, white leaders are rated as more effective than leaders of other racial groups.131 One large-scale summary study (a meta-analysis) found that many individuals hold stereotypes of men as having more leader characteristics than women, although as you might expect, this tendency to equate leadership with masculinity has decreased over time.132 Other data suggest women’s perceived success as transformational leaders may be based on demographic characteristics. Teams prefer male leaders when aggressively competing against other teams, but they prefer female leaders when the competition is within teams and calls for improving positive relationships within the group.133 Attribution theory suggests what’s important is projecting the appearance of being a leader rather than focusing on actual accomplishments. Leader-wannabes who can shape the perception that they’re smart, personable, verbally adept, aggressive, hardworking, and consistent in their style can increase the probability their bosses, colleagues, and employees will view them as effective leaders. Substitutes for and Neutralizers of Leadership One theory of leadership suggests that in many situations leaders’ actions are irrelevant.134 Experience and training are among the substitutes that can replace the need for a leader’s support or ability to create structure. Recently, companies such as videogame producer Valve Corporation, Gore-Tex maker W. L. Gore, and collaboration-software firm GitHub have experimented with eliminating leaders and management. Governance in the “bossless” work environment is achieved through accountability to co-workers, who determine team composition and even sometimes pay.135 Organizational characteristics such as explicit formalized goals, rigid rules and procedures, and cohesive work groups can replace formal leadership, while indifference to organizational rewards can neutralize its effects. Neutralizers make it impossible for leader behavior to make any difference to follower outcomes (see Exhibit 12-8). substitutes Attributes, such as experience and training, that can replace the need for a leader’s support or ability to create structure. neutralizers Attributes that make it impossible for leader behavior to make any difference to follower outcomes. Defining Characteristics Relationship-Oriented Leadership Task-Oriented Leadership Individual  Experience/training No effect on Substitutes for  Professionalism Substitutes for Substitutes for  Indifference to rewards Neutralizes Neutralizes Job  Highly structured task No effect on Substitutes for  Provides its own feedback No effect on Substitutes for  Intrinsically satisfying Substitutes for No effect on Organization  Explicit formalized goals No effect on Substitutes for  Rigid rules and procedures No effect on Substitutes for  Cohesive work groups Substitutes for Substitutes for Exhibit 12-8 Substitutes for and Neutralizers of Leadership Source: Based on S. Kerr and J. M. Jermier, “Substitutes for Leadership: Their Meaning and Measurement,” Organizational Behaviorand Human Performance (December 1978), p. 378. It’s simplistic to think employees are guided to goal accomplishments solely by the actions of their leaders. We’ve introduced a number of variables—such as attitudes, personality, ability, and group norms—that affect employee performance and satisfaction. Leadership is simply another independent variable in our overall OB model. Sometimes the difference between substitutes and neutralizers is fuzzy. If I’m working on a task that’s intrinsically enjoyable, theory predicts leadership will be less important because the task provides motivation. But does that mean intrinsically enjoyable tasks neutralize leadership effects, or substitute for them, or both? Another problem is that while substitutes for leadership (such as employee characteristics, the nature of the task, etc.) matter to performance, that doesn’t necessarily mean leadership doesn’t.136 Online Leadership How do you lead people who are physically separated from you and with whom you communicate electronically? This question needs attention from OB researchers.137 Today’s managers and employees are increasingly linked by networks rather than geographic proximity. We propose that online leaders have to think carefully about what actions they want their digital messages to initiate. They confront unique challenges, the greatest of which appears to be developing and maintaining trust. Identification-based trust , based on a mutual understanding of each other’s intentions and appreciation of the other’s wants and desires, is particularly difficult to achieve without face-to-face interaction.138 Online negotiations can also be hindered because parties express lower levels of trust.139 identification-based trust Trust based on a mutual understanding of each other’s intentions andappreciation of each other’s wants and desires. We believe good leadership skills will soon include the ability to communicate support, trust, and inspiration through electronic communication and to accurately read emotions in others’ messages. In electronic communication, writing skills are likely to become an extension of interpersonal skills. Finding and Creating Effective Leaders How can organizations find or create effective leaders? Let’s try to answer that question. Selecting Leaders The process organizations go through to fill management positions is an exercise in the identification of effective leaders. You might begin by reviewing the knowledge, skills, and abilities needed to do the job effectively. Personality tests can identify traits associated with leadership—extraversion, conscientiousness, and openness to experience. High self-monitors are better at reading situations and adjusting their behavior accordingly. Candidates with high emotional intelligence should have an advantage, especially in situations requiring transformational leadership.140 Experience is a poor predictor of leader effectiveness, but situation-specific experience is relevant. Because nothing lasts forever, the most important event an organization needs to plan for is a change in leadership. JCPenney recently hired a CEO with no department store experience who promptly changed its overall strategy, a maneuver so disastrous that Penney’s stock fell 69 percent in the roughly one year he lasted (at which time Penney rehired the old CEO it had forced out). Organizations seem to spend no time on leadership succession and are surprised when their picks turn out poorly. HP is on its fourth CEO in 7 years, including one who lasted a matter of months, causing observers to wonder whether HP’s and JCPenney’s boards of directors had done their homework in leadership succession. Training Leaders Organizations spend billions of dollars on leadership training and development.141 These take many forms, including $50,000 executive leadership programs offered by universities such as Harvard to sailing experiences offered by the Outward Bound program. Business schools are placing renewed emphasis on leadership development. Some companies place a lot of emphasis on leadership development. Goldman Sachs is well known for developing leaders; at one point, BusinessWeek called it the “Leadership Factory.” 142 How can managers get the most from their leadership-training budgets? First, leadership training is likely to be more successful with high self-monitors. Such individuals have the flexibility to change their behavior. Second, organizations can teach implementation skills. Third, we can teach skills such as trust building and mentoring. Leaders can be taught situational-analysis skills. They can learn how to evaluate situations, modify them to better fit their style, and assess which leader behaviors might be most effective in given situations. BHP Billiton, Best Buy, Nokia, and Adobe have hired coaches to help top executives one on one to improve their interpersonal skills and act less autocratically.143 Fourth, behavioral training through modeling exercises can increase an individual’s ability to exhibit charismatic leadership qualities. Recent research also indicates that leaders should engage in regularly reviewing their leadership after key organizational events as part of their development. These after-event reviews are especially effective for leaders who are high in conscientiousness and openness to experience, and who are emotionally stable (low in neuroticism).144 Finally, leaders can be trained in transformational leadership skills that have bottom-line results, whether in the financial performance of Canadian banks or the effectiveness of soldiers in the Israeli Defense Forces.145 Summary Leadership plays a central part in understanding group behavior because it’s the leader who usually directs us toward our goals. Knowing what makes a good leader should thus be valuable in improving group performance. The early search for a set of universal leadership traits failed. However, recent efforts using the Big Five personality framework show strong and consistent relationships between leadership and extraversion, conscientiousness, and openness to experience. The behavioral approach’s major contribution was narrowing leadership into task-oriented (initiating structure) and people-oriented (consideration) styles. By considering the situation in which the leader operates, contingency theories promised to improve on the behavioral approach, but only LPC theory has fared well in leadership research. Research on charismatic and transformational leadership has made major contributions to our understanding of leadership effectiveness.
Week 2 – Team Project Updates (Group D) 5 Week 2 – Team Project Updates (Group D) Question 1. Do An Assessment Of The Employee Satisfaction In One Of The Organizations Led By The Leader According To Chapter Three. According to the chapter, the leaders are responsible for the assessment of job satisfaction among the employees. The leaders face the challenges of determining ways through which they can improve job satisfaction among the employees for the business to stay competitive. Organizational leaders have a significant role in assessing the employee job satisfaction to improve the performance of the employees (Mathieu, 2014). The managers improve the employee job satisfaction through various methods. First, they provide a positive working environment for the employees. A motivating working environment can enhance job satisfaction within the employees. Secondly, the leaders provide rewards and recognition to the performing employees. Recognition and reward are both significant in creating motivation and morale of the employees. The leaders accomplish this by simply having a small celebration to motivate the employees and increase their job satisfaction. Third, the leaders improve the job satisfaction by engaging the employees in important events such as the decision-making process. For example, Sony Electronics Company involves its employees in the sharing of ideas to improve the brand. After the assessment, the managers also develop the employee skills and their potentials through training and development programs (Mathieu, 2014). Training equips the employees that may be lagging behind with the necessary skills and ability to improve the employee performance as well as that of the organization. Finally, the leaders improve the job satisfaction through the assessment and evaluation of the job satisfaction among the employees. Continuous assessment is essential in developing the skills of the employees and therefore their performance at work. The assessment measures the employee progress, therefore, determining the gaps that need further improvement. Question: 2 .Assess the “mood” of this Leader and also assess the level of Emotional Intelligence of the Leader especially applying the analysis on pages 1-9 – 113 of the textbook. (Chapter 4) Assessment of the “Mood” Of This Leader and the Level of Emotional Intelligence of the Leader According to chapter four, the manager has the emotional leadership skills and emotional intelligence while interacting with the employees. Emotional leadership is the practice that leaders utilize to leverage the employees to a common objective, to improve the performance of the organization (McCleskey, 2014). An emotional approach is an important method of leveraging the employees towards realizing the organizational goals and objectives. The leader here uses positive mood to influence the employees in a positive way. The manager in question is a charismatic type of a leader as he transmits his emotions to the employees through a concept known as “emotional contagion.” The leader also uses a group effective tone while addressing a group of employees. Organizations with leaders that have positive mood have good reputation and performance than those whose leaders’ tones are negative. The processes such as cooperation, teamwork, and strategy task greatly depend on the mood of the leaders. Expressing the attitudes publicly would reflect on the employees as the employees react to the moods cognitively. Robust emotional leadership is influenced by the emotional intelligence of the manager. Emotional intelligence is the capacity to assess, observe and manage one’s emotions and those of the employees. The leader uses the elements of emotional intelligence namely social awareness, self-management, relationship management and self-awareness (Goleman, 2013). Self-management is the ability of a leader to control his or her emotions in an honest way making sure not to let the employees realize that that something could be bothering them. Self-awareness is the capability of a leader to understand his or her emotions and maintain confidence regardless of the weaknesses that he or she may have. Social awareness comprises of empathy towards the employees and organizational perception. Finally, relationship management is used be leaders when managing big groups. The manager uses all the four elements successfully to resolve conflicts and increase the organizational performance. Question- 3 Big Five Personality Model to the Leader. Assess how much if any of the Dark Triad BIG FIVE PERSONALITY MODEL: Extraversion Agreeableness Conscientiousness Emotional Stability Openness to Experience We will now examine the Big Five Personality Model in association with Elon Musk. The five areas can demonstrate or predict behavior at work. In addition to the Big Five Personality Model, we will also examine if the Dark Triad applies to Elon Musk. Elon Musk would probably not be considered an extrovert. He is a self innovator who as able to use his mind to generate extremely unique ideas and strategies. Musk is also not known for being a polished public speaker, considering this would most likely be a skill of an extrovert, he does not fall into this category. At the same time however, he does have one major trait of an extrovert, which is assertiveness. Musk was told time and time again that many of his endeavors such as Tesla and SpaceX would fail, but Musk was assertive in saying they would be a success. This takes a strong personality, and Musk certainly has one. Agreeableness is something that can be positive and negative. From a leadership standpoint, an assertive leader can be an effective leader. Elon Musk is known to be incredibly optimistic and determined in projects. He is known to “stay the course” and does not believe that problems cannot be solved. This strong mind has allowed Elon Musk to continue to develop new ideas in the face of doubt and adversity. Conscientiousness is a trait that Musk displays without a doubt. Elon Musk is incredibly persistent as the idea of SpaceX and Tesla were expected my many to be a failure. In fact, SpaceX at one time was admittedly (by Musk) a near failure in its early years after repeated failed launches. Being persistent, strategies developed to increase investment and research saved SpaceX. This conscientiousness to be persistent, and dependable and doing what he said he will, made both Tesla and SpaceX iconic due to the end result. According to an article in exploringmarkets.com, Elon Musk is even said to always invest in his new ideas, because he does not expect others to invest in something he is not willing to himself. These out of the ordinary ideas faced extreme criticism but Elon Musk pushed forward. Emotional Stability is extremely important in an organization; it directly relates to job performance and is essential for successful leaders and managers. Elon Musk’s consistent positive attitude and optimism is something he is known for. He always stays focused on the goal regardless of setbacks. He is someone who enjoys innovation, and claims to put 80 to 100 hours per week. Setbacks in the workplace are something every employee faces at some point, and only those who can learn from these setbacks can maximize the chance of success. Using failure as an opportunity to learn is something Elon Musk has mastered. This reflects his emotional stability. The most compatible trait with Elon Musk is Openness to Experience. His ideas of space development (SpaceX) and Tesla are products that offer a completely new experience for consumers. This is also someone who was born in South Africa, and came to the United States due to business opportunities. Elon Musk, by action, has demonstrated an openness to experience. This, of all the traits, reflects his success because this trait alone has allowed him to enter areas of business that were seen as very high risk. He is willing to push the boundaries and limits for himself, as well as the products his companies offer. Regarding the Dark Triad, I would say Elon Musk does have some traits of Machiavellianism. For Musk, it is said that failure can be an option. With SpaceX for example, it took multiple attempts at launches before success. On one hand this is persistence and commitment, but it can also be viewed as risky and only being focused on the end result. I do however think Elon Musk’s determination is actually viewed in a positive light, because it is not manipulative by nature. He actually sees his ideas as beneficial for the world, and this shows empathy. I think overall the Dark Triad (Machiavellianism, Narcissism, Pyschopathy) do not apply to Elon Musk. Even referring to Machiavellianism, his small comparisons can also be viewed in a positive light When examining the Big Five Personality Traits, we have found that Elon Musk has some of these desirable traits. Some of these traits have been key in his success in the modern business world. The traits reflect his behavior, help us understand his personality, and help paint a better overall picture of Elon Musk. Question 4 Read and apply from the DeVry library the following article- Narcissistic Leaders: The Incredible Pros, the Inevitable Cons. Authors: Maccoby, Michael (Chapter 5) “Michael Maccoby is a psychoanalyst, anthropologist and author; he is internationally recognized as an expert on leadership. Dr. Maccoby is president of The Maccoby Group in Washington, DC and is an Associate Fellow of the Saïd Business School, Oxford University. For more than 35 years, Dr. Maccoby has been coach and consultant to all kind of leaders in the World Bank, universities, unions, corporations, and the State and Commerce Departments of the U.S. Government and the U.S. Army. He has worked in 36 countries in the Americas, Asia, Africa, Europe and the Middle East”. (Dr. Michael Maccoby Biography, March 2013) “Dr. Maccoby’s article “Narcissistic Leaders: the Incredible Pros, the Inevitable Cons”, January, 2000 has won a McKinsey Award, which recognizes the two best Harvard Business Review articles published each year. It was the basis for the book, The Productive Narcissist: The Promise and Peril of Visionary Leadership, published in 2003. In 2007, Harvard Business School Press published the paperback with a new introduction, re-titled Narcissistic Leaders: Who Succeeds and Who Fails”. (Dr. Michael Maccoby Biography, March 2013) Dr. Maccoby as a psychoanalyst tend to see and analyze leaders and CEOs personalities types thru Sigmund Freud’s personalities types. Freud acknowledged that there are different variability of personalities, Freud identified three main kinds of personalities: erotic, obsessive, and narcissistic. Most people have components of the main three types. Erotic: not in sexual terms, but whom is loving and being loved is most essential. This personality type is very productive, are developers, enablers and helpers at work. They are supportive and caring; but they evade conflict and like others to dependent on them. Freud sees them as outer-directed people. Obsessive: are self-reliant, conscientious and inner-directed. They like to create and keep order as well as resolve conflict. They also communicate very effectively and focus on improvement (self, values and morals), productively they are excellent mentors and team players. Unproductively, they are rule-bound bureaucrats. The last type is narcissists. Narcissists: are independent, like to be admired, vision oriented, like to learn everything about everything that involve their companies and its products, have the tendency to isolate themselves; are also innovators, business driven, love gain power, control and glory. Productively, are experts in their businesses, extreme workers (workaholic), always posing criticalquestions? (Michael Maccoby, 2000) Elon musk is a South African born, now he lives in Bel-Air California USA. He is an inventor, Explorer and Engineer. Musk did all his higher education studies between Canada and United States. Musk is an entrepreneur and a truly visionary; and is a founder/co-founder of several companies such as Tesla motors, SpaceX, Zip2, X.com. He also is the CEO of some of the mentioned companies and SolaCity, he is a true believer of clean energy. His wealth is estimated around $16 Billion. In his personal life, he had been married a couple of time and has six children with his first wife all boys. (Bogdan, J. 2017. Elon Musk. Salem Press Biographical Encyclopedia) Due to Musk achievements in life and personality type, Elon Musk fall into the Sigmund Freud’s personality types, as a Narcissists. Musk’s personality profile exposes his obvious productive narcissistic abilities that shaped his vision worldwide. Musk is independent, vision oriented, business driven, like to be admire, workaholic, controlling among other characteristic of a narcissistic personality type. He also has some trace of the erotic and obsessive type of personalities. Agreeing with Dr. Maccoby, narcissism can be extremely useful and moreover necessary. Productive narcissists have the bravery of been business oriented and often are catalysts of societal changes and transformations. Elon Musk fit the profile of been in the productive category of narcissism. Musk is always working to help humanity by keeping a clean environment which the case of Tesla Motors and SolarCity companies that he help to develop and build. His technological innovation and interests have an impact in social changes, ethical issues and in the business sectors, which is an indicator of his productive narcissistic personality type. Musk’s personal and professional life has his own daemons that he fight for the good of been a productive narcissistic leadership and the greater good of mankind. In applying Dr.Maccoby’s of Fromm’s 4th Personality type, the marketing personality. Elon Musk is more on the productive type due to his expertise in quality progression, commitment tostrategic people in business partnerships and projects developments when marketing and selling himself to others. “More and more large corporations are getting into bed with narcissists. They are finding that there is no substitute for narcissistic leaders in an age of innovation”. (Michael Maccoby, 2000) Question 5 Apply the criteria on Creative Behavior to the Leader. How does the “Choosing to Lie” box on page 178 apply? The criteria of creative behavior has four steps: Problem formulation, information gathering, idea generation, and idea evaluation. Elon Musk is an extremely innovative and creative individual. He believes in working hard and long hours. He states if you work 100 hours per week and a competitor works 50 hours per week, you will accomplish twice as much in one year (Musk, 2014). Elon is very good at thinking creatively to solve problems. Elon says that if you look at something and say that product will never become popular because it’s too expensive. This starts the creative process starting with problem formulation. The problem has been identified as an expensive product, so costly to produce that little to no research or funds are being put into improving the availability of the product. The product is then broken down by what components make up the product and the market value of each individual component also called information gathering. Each component is closely scrutinized to During the idea generation stage, alternative and substitute components are explored that will produce the same effect in a cheaper way. The final ideas that pass standards will then be evaluated for feasibility and output success. Elon’s vision and ability to streamline products such as rocket components that previously hadn’t been engineered since the 1960’s has earned him titles such as “the Henry Ford of rockets (Chafkin, 2014).” Regarding ethics and business, Elon Musk supports being as ethical as possible as well as delivering the best and most innovative product possible. He is humble enough to accept and share that he has failed before and that he has been wrong many times before. “Your goal is to be less wrong (Musk, 2014).” Musk goes out of his way to ensure his decisions remain morally and ethically sound not only for himself, but for his businesses and his shareholders. He believes in “ethical standards, values, and moral convictions (Padgett, 2015),” which is a notoriously difficult statement regarding public perception of modern businesspeople. Elon does not lie to himself about the realities of his companies, or to his shareholders. Musk also says he wishes that his friends would tell him when he is wrong instead of just letting him do what he thinks is the best way. Honesty is what he desires, not withholding, and as people can get blinded by their own thoughts, having a friend to provide a different perspective is something that Elon greatly values (Musk, 2014). References Goleman, D., Boyatzis, R., & McKee, A. (2013). Primal leadership: Unleashing the power of emotional intelligence. Harvard Business Press. Mathieu, C., Neumann, C. S., Hare, R. D., & Babiak, P. (2014). A dark side of leadership: Corporate psychopathy and its influence on employee well-being and job satisfaction. Personality and Individual Differences, 59, 83-88. McCleskey, J. (2014). Emotional intelligence and leadership: A review of the progress, controversy, and criticism. International Journal of Organizational Analysis, 22(1), 76-93 10 brilliant quotes from Elon Musk about business, and his love for America. (n.d.). Retrieved May 13, 2017, from http://www.exploringmarkets.com/2014/03/10-brilliant-quotes-from-elon-musk.html Hollingham, R. (2012, June 12). BBC – Future – How SpaceX learned from Nasa’s successes – and failures. Retrieved May 13, 2017, from http://www.bbc.com/future/story/20120611-learning-from-pioneers-mistakes Musk, Elon. Nov 30, 2014. Elon Musk – Work ethics, Principles, Attitude, Failure – Pearls of Advice. Retrieved May 14, 2017 from https://www.youtube.com/watch?v=NU7W7qe2R0A Chafkin, Max. Jun 10, 2014. Elon Musk: How I Became The Real ‘Iron Man’. Retrieved May 14, 2017 from https://www.youtube.com/watch?v=mh45igK4Esw Goleman, D., Boyatzis, R., & McKee, A. (2013). Primal leadership: Unleashing the power of emotional intelligence. Harvard Business Press. Maccoby, M. (2000). Narcissistic Leaders. (cover story). Harvard Business Review, 78(1), Retrieved from: http://proxy.devry.edu/login?url=http://search.ebscohost.com/login.aspx? direct=true&AuthType=url,cookie,ip,uid&db=bth&AN=2628908&site=eds-live
Week 3 – Team Project Updates (Group D) Week 3- Team Project Updates (Group D)   Question.1 Assess the Leader using Mazlow’s Hierarchy of Needs, McGregor’s Theory X-Y model, Hertzberg’s Two-Factor Theory and McClelland’s Theory of Needs. Choose and apply two of the Contemporary Theories of Motivation (pages 189-207 from Chapter 7). McClelland’s Theory of Needs: QH In 1961, David McClelland put together his work in his book, “The Achieving Society.” Where, he identified three motivators that he believed we all have: a need for achievement, a need for affiliation, and a need for power. According to McClelland, a person will have different characteristics depending on their dominant motivator. These motivators are learned (which is why this theory is sometimes called the Learned Needs Theory). He says that, regardless of our gender, culture, or age, we all have three motivating drivers, and one of these will be our dominant motivating driver. This prevailing motivator is essentially dependent on our culture and life experiences. The dominant motivator such as achievement, affiliation and power have the following characteristics on a specific person, describe as follow: Achievement: Has a strong need to set and accomplish challenging goals. Takes calculated risks to accomplish their goals. Likes to receive regular feedback on their progress and achievements. Often likes to work alone. Affiliation: Wants to belong to the group. Wants to be liked, and will often go along with whatever the rest of the group wants to do. Favors collaboration over competition. Doesn’t like high risk or uncertainty. Power: Wants to control and influence others Likes to win arguments. Enjoys competition and winning. Enjoys status and recognition. It is important to notice that People with a strong power motivator are often divided into two groups: personal and institutional. People with a personal power drive want to control others, whereas people with an institutional power drive like to organize the efforts of a team to further the company’s goals. Those with an institutional power need are usually more desirable as team members. (Eyre, The Mind Tools, May 2017), The McClelland’s three motivators or Theory of needs can use to get closer look at what is important about Elon Musk and what are his driven motivation as a leader. McClelland’s Theory of needs, in the case of E. Musk will be apply in reference to his achievements , power and affiliation; which are the things that keeping focus on his dedication towards his work. Achievement Elon Musk is all the time dedicating to complete a task. If one of his project is not up to par with his criteria; he has no objection to work overtime or as many hours needed to accomplish challenging goals for a successful completion. He is the type of person that analyze and calculate any risk that may present a challenge to his goal. Musk always is committed to set and keep quality standards for his projects. Moreover, he is driven to work alone or with other high achievers that will keep him motivated. “Work like hell. I mean you just have to put in 80-100 hour weeks every week. [This] improves the odds of success. If other people are putting in 40- hour work weeks and you’re putting in 100- hour work weeks, even if you’re doing the same thing, you know that you will achieve in four months what it takes them a year to achieve” (Pressman, 2016). Affiliation Elon Musk is a person of determination and opportunity. When it comes to interpersonal relationships and friendships, Elon Musk only appears to be concerned with, what relate to business. He favors collaboration over competition. Musk likes to belong to high achievers groups and affiliate himself with individual that perform effectively in a team. He also have affiliation to individuals that are supportive of the working environment that provide personal interaction. Musk does not like uncertainty and risky projects delegating them to others people, but always keeping control of what’s going on. . It is important him to get balanced feedback somewhat personal, based on co-operation and mutual understanding of a good trustful working relationship that will keep his motivation going. “I think it’s very important to have a feedback loop, where you’re constantly thinking about what you’ve done and how you could be doing it better. I think that’s the single best piece of advice: constantly think about how you could be doing things better and questioning yourself.”(Pressman, 2016). Power Elon Musk is known for having a tough impulse to be influential and controlling on his employees. He enjoys competition that is goal-oriented projects and work best when he is in charge. Employees working on his projects are monitor closely, and if results are not satisfactory; he make his employees to re-start the project all over again which shows his controlling spirit. Because of Musk’s strong power as a motivator, he is driven to personal power having the need to control others. His high need for achievement as a motivator, Musk likes status and recognition. Finally, McClelland’s Theory of Needs also called Human Motivation Theory with its three essential components such as the needs for achievement, affiliation and power are forces of a person’s basic elements of motivation. These motivator elements are cultivated through life with our experiences and culture. Hertzberg’s Two-Factor Theory The concept behind Hertzberg’s Two-Factor Theory, also called the motivation-hygiene theory is that factors that determine satisfaction in the workplace and dissatisfaction are separate. They are separated by intrinsic and extrinsic factors, and are not dependent one one-another. When applying Hertzberg’s Two-Factor Theory to Elon Musk, it helps us have a better picture of how it applies to him. Intrinsic factors, or factors that are related to job satisfaction such as achievements and opportunities are related to satisfaction. Extrinsic factors such as pay, opportunity, and working conditions are related to dissatisfaction when they are absent. According to Hertzberg’s theory, if the dissatisfying factors are dealt with or eliminated, it may reduce dissatisfaction, but not necessarily provide motivation. Intrinsic factors would still need to be existent to motivate employees regardless. When comparing with Elon Musk, this theory could be supportive. Elon Musk is an individual who has thrived off of achievements. Despite some adversity, his accomplishments with SpaceX and Tesla have motivated to continuously push the envelope. This motivation drives Elon Musk, and in addition, he believes these achievements are beneficial to those around him. Challenges have also been a huge factor for Elon Musk. Constant criticism and setbacks have driven Elon Musk to always rise to the occasion and find a way to make things work. This can be seen with the multiple failures in SpaceX launches early on. He used the challenge to motivate himself to identify the failures and improve. This was not motivated by extrinsic factors, therefore it could be assumed even if extrinsic factors were present, he would have found the motivation separately. Hertzberg’s Two-Factor Theory is not widely supported for several reasons. A few of the reasons that it relies on self-reporting, and it does not measure the level of satisfaction. Despite the criticisms, you can examine a leader like Elon Musk and find a level of relationship with Hertzberg’s Two-Factor Theory. Elon Musk is a man who seems to be driven, at least in part, by intrinsic factors. Question: 2 Examine the motivational concepts from Chapter 8 and show how the Leader either applied or missed applying these concepts. In this particular situation, Elon Musk of Tesla Motors has displayed some aspects that have enabled him to be termed as one of the greatest employees when it comes to the issue of employee motivation. To begin with, this particular CEO has employed some tactics that have significantly motivated the employees working in this particular organization and thus improving the overall performance of these specific individuals. To begin with, Elon Musk is one of the best CEO, and this is due to his outstanding leadership qualities. This particular CEO is known to let the employees work on their timelines without having to give them a deadline necessarily. This ensures that the employees can work at their pace and thus this motivates them to perfect on their current tasks that they are performing (Byrne, 2005) However, some issues have made Elon Musk miss in applying the various motivation concepts on his employees. To begin with, Elon has been known to possess poor communication skills. This has been a great barrier when he is communicating with the other employees of this particular organization. In most cases, poor communication skills result in poor delayed projects and this mainly because if individual information is not well communicated, then this may lead to chances of errors. Additionally, at times Elon is known to push his employees extra hard and this at times may cause the employees to feel uncomfortable and thus interfere with the process of service delivery. It is clear that Elon Musk of Tesla Motors has some motivational concepts that have been an excellent source of his success. In addition to this, his motivation skills have also helped him to become one of the smartest CEO’s in the face of the earth. However, due to his over ambitiousness, he has not been able to portray these motivation concepts throughout his career, and this has led him to brush shoulders with some of his employees who at times have ended up quitting their jobs at Tesla Motors (Sostrin, 2013). References Byrne, H. (2005). Job descriptions and duties for church members and workers. Longwood, Fla: Xulon Press. Sostrin, J. (2013). Beyond the job description : How Managers and Employees Can Navigate the True Demands of the Job. New York, NY: Palgrave Macmillan. Elizabeth Eyre (The Mind Tools, May 2017), McClelland’s Human Motivation Theory. Retrieved May 19, 2017 from: https://www.mindtools.com/pages/article/human-motivation-theory.htm Pressman, Matt. (November, 2016). Great Leadership: 10 Elon Musk Quotes That Provide A Glimpse Into The DNA Of Tesla. TeslaNews., Retrieved from https://evannex.com/blogs/news/great-leadership-10-elon-musk-quotes-that-provide-a-glimpse-into-the-dna-of-tesla Laudon, K. C., & Laudon, J. P. (2016). Management information systems managing the digital firm. Hoboken: Pearson.
Week 4 – Team Project Updates (Group D) Week 4- Team Project Updates (Group D)   Q.1 Review the organization this Leader was at the top of and assess what the group behavior was like under this Leader (Chapter 9).   Leadership and Groups The leaders of an organization are individuals who are tasked with the responsibility of providing the organization with direction. These individuals in most cases constitute of the organizational top management like the CEO and CFO of the organization and the organization’s board of directors. Currently, the ratio of men to women in these positions significantly differs with the majority of the positions belonging to men and only a few women managing to maintain these executive positions in the large organizations. For the case of men that have been in business for a long time, they prefer working with individuals whom they completely trust and have gained believe about their loyalty to their course for a long time. A good example of such a leader is Elon Musk. Elon Musk is one of the most powerful individuals in the world. He is well recognized for his large electronics and motors companies, SpaceX, Telsa and Neutral ink among others. He has an estimated current net worth of 15.2 billion, thus making him among the top 100 richest people in the world. To such a leader, the team of the people who works together with him are those that he has been operating with for a long time. In almost all the organizations that he has established, he has utilized the group members of people whom he has known for long. The majority of the individuals who he has teamed up with, in order to create the many organizations which he is among the founders are men, who had been operating together with him for a long time. Under his leadership, therefore, a large number of the people who formulate groups under him are those that have gained his trust. It is due to this reason that people who recently gained employment within his organization do not have the chance to manage climbing to the senior management levels. This aspect has also led to many women lacking the ability to attain the executive positions in many of these organizations (Forsyth, 2010). Q-2 How did teams get implemented in the Leader’s organization? Were they successful? What could have been done better? While examining how teams are implemented by Elon Musk, it is easy to see why he has been a success. Elon Musk has a clear expectation and purpose for his employees. This has led to Elon Musk being responsible for some of the most innovative products we have ever seen. First, Elon Musk has a production team tasked with focusing all efforts in product quality. He assigns his teams to focus less on marketing, and more on product. They are encouraged to take risks and develop new, even unorthodox ideas. While many companies put a strong focus on the marketing team, Elon Musk focuses resources on a quality marketing team capable of providing internal feedback and thinking outside the box. Second, the teams inside both Space X and Tesla can be explained as cross functional. The allocation of roles within teams at Tesla for example can be evaluated. In a 2016 article by Fred Lambert, he examines the role of the team designing “autopilot” and why it is so appealing to top level candidates. Quite simply, inventors and innovators rarely get the funded opportunity to see their products tested in a short term feedback loop. This allows them to see their ideas put into real life scenarios. These teams have an extremely rewarding opportunity as a result of this structure. At the same time, the design team is separate. They are tasked with focusing on designing appearance’s that are appealing to the customer. These cross functional teams are combined to form the end result. This is a great way for Elon Musk to utilize employees’ talents to form a better product. Last, the teams are focused on a collective effort. Whether it is Space X or Tesla, there is a clear purpose. For example, with autopilot, this is a task within a task. The purpose and result should be an appealing vehicle, capable of providing transportation for a customer safely and efficiently. These tasks are part of a greater collective effort. This allows Tesla to obtain experts from every field involved in the process. They are constantly indirectly evaluated by the products being tested. Elon Musk can turn to any one of his teams and know he is receiving feedback from experts in their designated area. When examining what could have been done better, it is actually a difficult question because the answer can be looked at from two perspectives. Elon Musk is known to “ask the impossible”. Sometimes the teams may fall short of a goal, or have setbacks. This can be seen early on with Space X’s launch failures. Developing reasonable goals may have allowed teams to accomplish measured goals even if it took more time. At the same time however, these task drive innovation and forward thinking, which have led Elon Musk to develop out of the world products. The teams within Elon Musk’s organizations are successful because they are diverse, have clear purposes, leadership, and proper resources. Elon Musk provides them with unique opportunities in their field of work, and allows for feedback within the organizations. The cross functional teams will continue to be a driving force behind the success of Elon Musk. References Forsyth, D. (2010). Group dynamics. Belmont, Calif: Wadsworth Cengage Learning. Lambert, F., & Fred Lambert @FredericLambert Fred is the Editor in Chief and Main Writer at Electrek. (2016, February 22). A look at the team of “hardcore” engineers building Tesla’s Autopilot and the exodus that followed its release. Retrieved May 28, 2017, from https://electrek.co/2016/02/22/tesla-autopilot-team-exodus/ Robbins, S. P., & Judge, T. A. (2017). Organizational behavior. Harlow: Pearson Education Limited.
Week 5 – Team Project Updates (Group D) Week 5- Team Project Updates (Group D)   Question: 2 What Contingency Theory (pages 337-341) of leadership allies to this Leader? Examine and apply the two theories of Charismatic and Transformational Leadership to this Leader. Determine the level of authenticity, ethical and trustworthy behavior of this Leader (pages 349-355). (Chapter 12)  What Contingency Theory (pages 337-341) of leadership allies to this Leader? Elon Musk is a leader who currently leads Tesla Motors organization in the industry of motor vehicles. Being a founder of a large number of other organizations, Elon Musk has demonstrated a good leadership capability which has inspired many other leaders. A contingency theory that clearly allies to his style of leadership is the leader-participation model. This leadership theory explains that the leader’s behavior should demonstrate his leadership decisions and demonstrations which he or she makes to his or her subordinates. Elon Musk has managed to inspire a large number of individuals and pushed them to their highest levels of capabilities which they never through they could manage to attain. He has managed to achieve this aspect through the alignment of his behaviors in leadership with the theories that he utilizes. Examine and apply the two theories of Charismatic and Transformational Leadership to this Leader. A charismatic leader is a type of leader who can motivate and inspire other people. Elon Musk is a type of leader that has inspired a large number of people to push their abilities and innovative capabilities to a high level. A large number of individuals who operate under him have expressed the many ways through which this leader has helped them manage to reach their high potentials through motivation and inspiration. A transformational leader is, on the other hand, a type of leader who operates with subordinates with the aim of identifying and implementing the needed change. Being a leader during this time of highly changing technological capabilities, Elon is a leader with significant change characteristics. Through his operations, he has involved in significant activities of establishing change within organizations and even the society. Determine the level of authenticity, ethical and trustworthy behavior of this Leader Ethically, Elon Musk is among the few leaders who have not been caught in many unethical scandals and behaviors. He has remained significantly ethical and true to those he leads and inspires. His high moral and ethical standards have made him a significantly trustworthy individual that investors among many other people trust with their money and other aspects. All his provisions and leadership aspects are completely genuine, an aspect that has further increased the trustworthiness of others to him (Brox, 2013). References Brox, J. (2013). The Results Are In: How Do You Ensure You’re Constantly Developing as a Leader: Leadership. Retrieved from http://www.refreshleadership.com/index.php/2013/05/results-ensure-youre-constantly-developing-leader/#more-4732
Week 6 – Team Project Updates (Group D) Team Project Updates-Week-5 1.      using your research, apply applicable concepts from Chapter 15 and report on the organizational structure of the Leader’s organization. Tesla Motors are one of the most influential motors companies in the United States. It was founded in the year 2003 by Marc Tar penning and Martin Eberhard. Among these two main founders, the company also consider Elon Musk and JB Straubel among the co-founders. The organization specializes in the manufacture of electric cars, energy storage, manufacture of solar panels and the lithium ion battery. The organization has its headquarters in California and is led by the current Tesla Motors CEO, Elon Musk. Among the many strengths that the organization possesses its organizational structure which enhances significant effectiveness within the organization and its activities. The first main aspect of Tesla Motors about its structure is its global hierarchy. The organization has a large number of functional teams which defines its capability to remain completely effective in its operations. The teams operate on a global basis where they address issues of motors that are around the whole world. The teams consider all the aspects that take place within the organization and without at a global aspect. The first office in the hierarchy and the top most about command is the chief executive officer’s office, which is currently held by the organizational leader, Elon Musk. This office is followed by the office of the chief financial officer, which is followed by the chief technology officer’s office. These are the three senior-most positions in the hierarchy structure of Tesla Motors. Other important positions include the vice president-vehicle engineering, the chief designer, vice president-powertrain operations, general counsel, and the vice president North American sales among other positions (Meyer, 2017). The three of the top officials of Tesla Motors organization have a general role in the whole organization. Together with the board of directors and a few other members of the organizational management, the individuals make decisions for the whole organizations. The rest of the offices have positions for individuals that head different departments within the organization. The vice president-vehicle engineering, for example, is a leader in the organizational department of engineering and thus another major aspect of Tesla Motors is departmentalization. According to the specific function that a certain group of fully specialized employees involves in, Tesla Motors is fully stratified into departments which consist of individuals that involve in the provision of related job tasks. These departments and specialization aspects help to improve the effectiveness of organizational operations. If for example, a certain number of individuals within the organization involved in the production of vehicles, the individuals are grouped together in the production or manufacturing department. The engineers of the vehicles are on the other hand grouped in another department, and thus the organization contains a large number of departments which compose of the organizational structure. The other major aspect of Tesla Motors organizational structure is the global centralization aspect. With this regard, the organization utilizes the global centralization to lead and provide directions for operations. This centralization makes the organizational CEO, Elon Musk the main organizational decision maker and also ensures that majority of the decisions for overseas activities are made from the organization’s headquarters unlike the structures of many other organizations where overseas sections operate as their independent organizations. The other important aspect of the organizational structure is the minimal regional divisions. This aspect has its main focus being on the extent of divisions within the organization. The divisions have their main use being the implementation of different marketing campaigns and operational strategies. For financial reporting among other functions, the organization has divisions like the United States, Norway, China and Other divisions (Meyer, 2017). References Meyer, P. (2017). Tesla Motors, Inc.’s Organizational Structure, Characteristics (An Analysis): Panmore Institute. Retrieved from http://panmore.com/tesla-motors-inc-organizational-structure-characteristics-analysis


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