(Mt) – University of Colorado Denver Leadership and Management Discussion

The Leadership Experience SEVENTH EDITION RICHARD L. DAFT Owen Graduate School of Management Vanderbilt University With the assistance of Patricia G. Lane Australia • Brazil • Mexico • Singapore • United Kingdom • United States The Leadership Experience Seventh Edition Richard L. Daft With the assistance of Patricia G. Lane Vice President, General Manager, Social Science & Qualitative Business: Erin Joyner Product Director: Jason Fremder Product Manager: Mike Roche Content Developer: Jamie Mack Product Assistant: Allie Janneck Marketing Director: Kristen Hurd ª 2018, 2015 Cengage Learning¤ ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, except as permitted by U.S. copyright law, without the prior written permission of the copyright owner. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com Marketing Manager: Emily Horowitz Marketing Coordinator: Casey Binder Library of Congress Control Number: 2016940679 Art and Cover Direction, Production Management, and Composition: Cenveo Publisher Services ISBN-13: 978-1-337-10227-8 Intellectual Property Analyst: Diane Garrity Project Manager: Sarah Shainwald Manufacturing Planner: Ron Montgomery Cover Image(s): Moment/Getty Images; blackzheep/Shutterstock.com Interior design credits: Design Pics/The Irish Image Collection/Getty Images; Steve Weinrebe/Photographer’s Choice RF/Getty Images; Bastar/Vetta/Getty Images; Vinimay Kaul/EyeEm/Getty Images; Matic Stojs/ ShutterStock.com Cengage Learning 20 Channel Center Street Boston, MA 02210 USA Cengage Learning is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative at www.cengage.com. Cengage Learning products are represented in Canada by Nelson Education, Ltd. To learn more about Cengage Learning Solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in Canada Print Number: 01 Print Year: 2016 To the spiritual leaders who shaped my growth and development as a leader and as a human being. BRIEF CONTENTS PART 1: INTRODUCTION TO LEADERSHIP 1 1. What Does It Mean to Be a Leader? 2 PART 2: RESEARCH PERSPECTIVES ON LEADERSHIP 33 2. Traits, Behaviors, and Relationships 34 3. Contingency Approaches to Leadership 64 PART 3: THE PERSONAL SIDE OF LEADERSHIP 4. 5. 6. 7. The Leader as an Individual 98 Leadership Mind and Emotion 134 Courage and Moral Leadership 166 Followership 196 PART 4: THE LEADER AS A RELATIONSHIP BUILDER 8. 9. 10. 11. 12. 225 Motivation and Empowerment 226 Leadership Communication 260 Leading Teams 292 Developing Leadership Diversity 326 Leadership Power and Influence 360 PART 5: THE LEADER AS SOCIAL ARCHITECT 13. Creating Vision and Strategic Direction 394 14. Shaping Culture and Values 428 15. Leading Change 462 Name Index 494 Index of Organizations 498 Subject Index 502 iv 97 393 CONTENTS PART 1: INTRODUCTION TO LEADERSHIP Chapter 1: What Does It Mean to Be a Leader? 1.1 Why We Need Leadership 2 Leader’s Self-Insight 1.2 1.5 Leadership Can Be Learned 1.2 The New Reality for Leaders 1.5a Leader Fatal Flaws 8 Leader’s Self-Insight 1.3 1.2a From Stabilizer to Change Manager 9 1.2b From Controller to Facilitator 9 1.2c From Competitor to Collaborator 10 In the Lead 11 1.2e From Hero to Humble In the Lead 22 12 Leadership Essentials 26 Discussion Questions 27 Leadership at Work 1.3 How Leadership Differs from Management 14 1.3a Providing Direction 14 1.3b Aligning Followers 15 1.3c Building Relationships 16 1.3d Developing Personal Leadership Qualities 1.3e Creating Outcomes 16 27 Leadership Development: Cases for analysis Sales Engineering Division The Marshall Plan 16 References Chapter 2: Traits, Behaviors, and Relationships 38 Leader’s Self-Insight 2.1 40 38 37 29 29 29 30 2.1c Drive In the Lead 36 2.1a Optimism and Self-Confidence 2.1b Honesty and Integrity 34 24 24 27 Leadership Right–Wrong PART 2: RESEARCH PERSPECTIVES ON LEADERSHIP Leader’s Bookshelf 23 23 1.7 Organization of This Book 13 2.1 The Trait Approach 21 1.6 Mastering the Art and Science of Leadership 12 18 21 1.5b Leader Good Behaviors 1.2d From Diversity Avoider to Diversity Promoter 11 Consider This! 17 1.4a Historical Overview of Major Approaches 1.4b A Model of Leadership Evolution 19 7 Leader’s Self-Insight 1.1 17 1.4 Evolving Theories of Leadership 4 1.1a Defining Leadership 5 1.1b Everyday Leadership 6 Leader’s Bookshelf 1 33 40 40 2.2 Know Your Strengths 41 2.2a What Are Strengths? 41 2.2b Matching Strengths with Roles 2.3 Behavior Approaches 42 43 v vi CONTENTS 2.3a Autocratic versus Democratic Behaviors Consider This! In the Lead 43 44 45 Leader’s Self-Insight 2.2 46 48 In the Lead 50 Leader’s Self-Insight 2.3 52 In the Lead 56 Discussion Questions 57 55 In the Lead 58 60 Leadership Essentials 91 Discussion Questions 92 Leadership at Work 3.1 The Contingency Approach 66 90 92 Task versus Relationship Role Play Alvis Corporation 69 69 70 References 94 95 PART 3: THE PERSONAL SIDE OF LEADERSHIP 4.1 The Secret Ingredient for Leadership Success 4.2 Personality and Leadership In the Lead 102 102 Leader’s Self-Insight 4.1 Leader’s Bookshelf 100 100 In the Lead 107 Leader’s Self-Insight 4.2 4.3 Values and Attitudes 106 103 102 108 109 4.3a Instrumental and End Values Leader’s Self-Insight 4.3 4.2a A Model of Personality 97 4.2b Personality Traits and Leader Behavior 98 4.1a The Importance of Self-Awareness 4.1b Leader Blind Spots 101 93 93 An Impossible Dream? 3.2 Hersey and Blanchard’s Situational Theory Chapter 4: The Leader as an Individual 92 Leadership Development: Cases for Analysis 67 Leader’s Self-Insight 3.1 3.2a Leader Style 64 88 89 Leader’s Self-Insight 3.3 58 Chapter 3: Contingency Approaches to Leadership 81 87 3.6 Substitutes for Leadership 61 Leader’s Bookshelf 80 3.5a Leader Participation Styles 82 3.5b Diagnostic Questions 83 3.5c Selecting a Decision Style 83 58 Transition to Leadership 80 3.4c Use of Rewards In the Lead Consolidated Products 79 3.5 The Vroom–Jago Contingency Model Leadership Development: Cases for Analysis References 79 Consider This! 58 Your Ideal Leader Traits 77 3.4b Situational Contingencies 55 2.5 Entrepreneurial Traits and Behaviors Leadership Essentials 77 3.4a Leader Behavior 2.4a Vertical Dyad Linkage Model 53 2.4b Leader–Member Exchange 54 2.4c Partnership Building 54 Leadership at Work 75 3.4 Path–Goal Theory 50 2.3e Theories of a ‘‘High-High’’ Leader 73 3.3a Leadership Style 73 3.3b Situation 74 3.3c Contingency Theory 75 47 2.4 Individualized Leadership 73 3.3 Fiedler’s Contingency Model 47 2.3c University of Michigan Studies 2.3d The Leadership Grid 49 In the Lead 71 72 Leader’s Self-Insight 3.2 2.3b Ohio State Studies In the Lead 3.2b Follower Readiness In the Lead In the Lead 109 110 111 4.3b How Attitudes Affect Leadership 112 106 CONTENTS vii Consider This! 5.5 Leading with Love versus Leading with Fear 112 4.4 Social Perception and Attributions 4.4a Perceptual Distortions 4.4b Attributions 115 In the Lead 114 Leader’s Self-Insight 5.3 114 5.5a Fear in Organizations In the Lead 116 Consider This! 4.5a Patterns of Thinking and Brain Dominance 117 Leader’s Self-Insight 4.4 118 4.6 Working with Different Personality Types Leadership Essentials 126 Discussion Questions 127 Leadership at Work 127 Past and Future 127 120 122 123 158 Discussion Questions 159 Mentors 160 163 6.1 Moral Leadership Today Leader’s Bookshelf 130 In the Lead Chapter 5: Leadership Mind and Emotion 5.1 Leading with Head and Heart 134 6.3 Becoming a Moral Leader 5.2a Assumptions 138 5.2b Changing or Expanding Mental Models 139 5.3 Developing a Leader’s Mind 5.3a Independent Thinking Leader’s Bookshelf 140 140 141 142 5.4 Emotional Intelligence 5.4a What Are Emotions? 146 5.4b Why Are Emotions Important? 5.4c The Components of Emotional Intelligence 149 152 Leader’s Self-Insight 5.2 153 179 6.5a What Is Courage? Consider This! 146 In the Lead 147 174 6.4a Authoritarian Management 176 6.4b Participative Management 177 6.4c Stewardship 177 6.4d The Servant Leader 178 180 6.5 Leading with Courage 144 145 173 176 Leader’s Self-Insight 6.2 143 5.3c Systems Thinking 5.3d Personal Mastery In the Lead 138 6.4 Servant Leadership In the Lead 5.3b Open-Mindedness Leader’s Self-Insight 5.1 172 6.2 Acting Like a Moral Leader 136 169 170 Leader’s Self-Insight 6.1 136 168 169 6.1b Leaders Set the Ethical Tone 131 166 168 6.1a The Ethical Climate in Business Environmental Designs International In the Lead 162 Chapter 6: Courage and Moral Leadership 128 128 5.2 Mental Models 160 160 The USS Florida References 158 160 Leadership Development: Cases for Analysis The New Boss Leadership Development: Cases for Analysis References Leadership Essentials Leadership at Work 4.5b Problem-Solving Styles: Jungian Types Leader’s Self-Insight 4.5 156 157 5.5c Why Followers Respond to Love 119 A Nice Manager 155 155 5.5b Bringing Love to Work 116 4.5 Cognitive Differences In the Lead 154 180 181 181 182 Leader’s Self-Insight 6.3 184 6.5b How Does Courage Apply to Moral Leadership? 184 6.5c Finding Personal Courage 185 In the Lead 186 Leadership Essentials 187 153 viii CONTENTS Discussion Questions Leadership at Work Scary Person Leader’s Bookshelf 188 189 In the Lead 7.5 The Power and Courage to Manage Up 189 Leadership Development: Cases for Analysis ‘‘What Should I Say?’’ 189 189 191 196 7.1 The Art of Followership 198 7.1a Learn to Manage Up as Well as Down 199 7.1b Managing Up Presents Unique Challenges 199 In the Lead 7.3 Styles of Followership Leader’s Self-Insight 7.1 Consider This! 213 200 201 203 Leader’s Self-Insight 7.3 Leadership Essentials 218 Discussion Questions 218 Leadership at Work 204 Follower Role Play 205 217 219 219 Leadership Development: Cases for Analysis 7.4 Strategies for Managing Up 205 Waiting for Clearance 7.4a Understand the Leader 205 7.4b Tactics for Managing Up 206 Leader’s Self-Insight 7.2 Jake’s Pet Land References 207 Chapter 8: Motivation and Empowerment 8.1 Leadership and Motivation 221 222 228 In the Lead 232 8.2a Hierarchy of Needs Theory 8.2b Two-Factor Theory 234 In the Lead Leader’s Self-Insight 8.1 Consider This! 232 237 238 Leadership Essentials 251 Discussion Questions 252 Leadership at Work 252 Leadership Development: Cases for Analysis 243 250 250 252 Should, Need, Like, Love 242 8.4 Empowering People to Meet Higher Needs 250 8.6a The Making Progress Principle 8.6b Building a Thriving Workforce 237 238 Leader’s Self-Insight 8.2 249 8.6 New Ideas for Motivation 236 8.3a Reinforcement Perspective on Motivation 8.3b Expectancy Theory 240 8.3c Equity Theory 241 248 8.5 Giving Meaning to Work through Engagement 248 233 In the Lead 8.3 Other Motivation Theories 246 Leader’s Self-Insight 8.3 235 8.2c Acquired Needs Theory 225 8.4a The Psychological Model of Empowerment 244 8.4b Job Design for Empowerment 244 8.4c Empowerment Applications 246 226 8.1a Intrinsic and Extrinsic Rewards 229 8.1b Positive and Negative Motives 230 8.2 Needs-Based Theories of Motivation 220 220 PART 4: THE LEADER AS A RELATIONSHIP BUILDER Leader’s Bookshelf 213 7.6a Clarity of Direction 214 7.6b Opportunities for Growth 214 7.6c Frequent, Specific, and Immediate Feedback 216 7.6d Protection from Organizational Intrusions 217 199 7.2 What Your Leader Wants from You In the Lead In the Lead 7.6 What Followers Want from Leaders 192 Chapter 7: Followership 210 7.5a Sources of Power for Managing Up 210 7.5b Necessary Courage to Manage Up 211 The Boy, the Girl, the Ferryboat Captain, and the Hermits References 209 209 Commissions for Charlotte 254 254 CONTENTS Sun Spots References ix 255 256 Chapter 9: Leadership Communication 9.1 How Leaders Communicate Leader’s Self-Insight 9.1 In the Lead 264 In the Lead 305 10.5a Essential Team Competencies 272 Leader’s Self-Insight 10.2 273 10.6 Leading a Virtual Team 274 In the Lead 275 275 277 278 9.4b Effectively Using Electronic Communication Channels 279 9.5 Nonverbal Communication 281 9.6a Leadership via Social Media 9.6b Being Crisis-Ready 282 281 281 Leader’s Self-Insight 10.3 Leadership Essentials 317 Discussion Questions 317 Team Feedback 283 Discussion Questions 284 Listen Like a Professional Decision Time References The Superintendent’s Directive 286 312 315 316 318 318 319 319 Devereaux-Dering Group 285 Leadership Development: Cases for Analysis 287 311 Leadership Development: Cases for Analysis 285 310 10.7a Types of Conflict 312 10.7b Balancing Conflict and Cooperation 10.7c Causes of Conflict 313 10.7d Styles to Handle Conflict 313 Leadership at Work 283 308 309 10.7e Negotiation 9.6 Current Communication Challenges 307 10.6a Uses of Virtual Teams 309 10.6b Challenges of Virtual Teams 10.7 Handling Team Conflict 9.4a The Continuum of Channel Richness 306 306 307 10.5b Team Member Roles 9.4 Selecting the Correct Communication Channel 276 288 304 10.5 What Team Members Must Contribute 9.3 Communicating to Persuade and Influence References 301 10.4c Team Norms 273 Leadership Essentials 300 10.4a How Teams Develop 302 10.4b Team Cohesiveness 303 270 9.2f The Power of Stories Leader’s Bookshelf 298 299 301 10.4 Team Processes Leader’s Self-Insight 9.3 Hunter-Worth 297 Leader’s Bookshelf 266 9.2d Dialogue 270 9.2e Communicating with Candor Leadership at Work 295 10.3 Leading a Team to High Performance 265 Leader’s Self-Insight 9.2 In the Lead 295 Leader’s Self-Insight 10.1 9.2a Creating an Open Communication Climate 267 9.2b Asking Questions 267 9.2c Listening 268 In the Lead 294 10.2 The Dilemma for Team Members 266 In the Lead 294 10.1b Types of Teams 263 9.2 Leading Strategic Conversations In the Lead 10.1 The Value of Teams Consider This! 262 9.1b The Leader as Communication Champion 264 Consider This! 292 10.1a What Is a Team? 260 9.1a Management Communication Chapter 10: Leading Teams 320 322 286 Chapter 11: Developing Leadership Diversity 326 11.1 Leading People Who Aren’t Like You 328 Leader’s Self-Insight 11.1 329 x CONTENTS 11.2 Diversity Today 329 The Trouble with Bangles 11.2a Definition of Diversity 329 11.2b Changing Attitudes toward Diversity In the Lead References 330 331 11.2c The Value of Organizational Diversity 11.3 Challenges Minorities Face 331 332 Leader’s Bookshelf In the Lead 337 In the Lead 341 12.3a Leader Frames of Reference 377 12.3b Political Tactics for Asserting Leader Influence 378 346 Leader’s Self-Insight 12.3 11.7 Ways to Encourage the Advancement of Women and Minorities 349 11.7a Employee Affinity Groups 349 11.7b Minority Sponsorship 350 351 Discussion Questions 352 In the Lead 379 382 12.4 Don’t Take Power Personally Leadership Essentials 384 Discussion Questions 385 Leadership at Work 386 Leadership Development: Cases for Analysis 352 The Suarez Effect 353 387 Waite Pharmaceuticals 353 References 13.1 The Leader’s Job: Looking Forward 13.1a Stimulating Vision and Action 396 396 394 388 390 PART 5: THE LEADER AS SOCIAL ARCHITECT Chapter 13: Creating Vision and Strategic Direction Consider This! 393 397 13.1b Strategic Leadership In the Lead 382 386 Circle of Influence 352 Leadership Development: Cases for Analysis True to Myself 376 12.3 Increasing Power through Political Activity 344 347 Personal Diversity 374 Consider This! 342 11.5b Social Value Systems 343 11.5c Developing Cultural Intelligence 11.5d Leadership Implications 345 Leadership Essentials 371 372 12.2b Follower Responses to the Use of Power 375 341 11.5a The Sociocultural Environment Leadership at Work 371 12.2a Specific Types of Power 340 11.6 Becoming an Inclusive Leader 370 12.2 Using Hard versus Soft Power 340 368 369 Leader’s Self-Insight 12.2 In the Lead Leader’s Self-Insight 11.3 365 12.1d Machiavellian-Style Leadership 338 11.5 Global Diversity 364 366 Leader’s Bookshelf 11.4a Women as Leaders 339 11.4b Is Leader Style Gender-Driven? In the Lead 362 In the Lead 336 11.4 Ways Women Lead In the Lead 12.1 Four Kinds of Influential Leadership 12.1c Coalitional Leadership 334 337 Consider This! 360 Leader’s Self-Insight 12.1 333 11.3b The Glass Ceiling Chapter 12: Leadership Power and Influence 12.1a Transformational Leadership 362 12.1b Charismatic Leadership 363 11.3a Prejudice, Stereotypes, and Discrimination 332 Leader’s Self-Insight 11.2 355 356 399 398 387 376 CONTENTS xi 13.2 Leadership Vision 400 Leader’s Self-Insight 13.1 13.2a What Vision Does Leader’s Self-Insight 13.2 14.3d Specialized Language 442 14.3e Selection and Socialization 442 14.3f Daily Actions 443 402 402 13.2b Common Themes of Vision In the Lead 404 Leader’s Self-Insight 14.2 406 13.2c Leader Steps to Creating a Vision 13.3 Mission 406 407 Leader’s Bookshelf 407 408 13.3b A Framework for Noble Purpose In the Lead 410 412 13.4 The Leader as Strategist-in-Chief 413 13.4a How to Achieve the Vision 13.4b How to Execute 415 In the Lead 413 Leader’s Self-Insight 13.3 14.4b Achievement Culture 446 14.4c Involvement Culture 447 14.4d Consistency Culture 447 14.5 Ethical Values in Organizations In the Lead Leadership Essentials 419 Discussion Questions 420 Leadership at Work 420 Future Thinking 420 14.6b Spiritual Values The New Museum 453 Discussion Questions 454 Walk the Talk Chapter 14: Shaping Culture and Values 14.1 Organizational Culture 14.1a What Is Culture? 428 430 432 433 436 440 14.3a Ceremonies 441 14.3b Stories 441 14.3c Symbols 441 464 465 466 466 15.2 A Framework for Change 15.3 Using Appreciative Inquiry 437 Leader’s Self-Insight 15.2 In the Lead 439 462 467 469 15.3a Applying Appreciative Inquiry on a Large Scale 469 435 14.2b The High-Performance Culture 14.3 Cultural Leadership Chapter 15: Leading Change In the Lead 434 Leader’s Self-Insight 14.1 457 458 Leader’s Self-Insight 15.1 14.2 Culture Strength, Responsiveness, and Performance 435 In the Lead 456 15.1a Resistance Is Real 464 15.1b The Leader as Change Agent 431 14.2a Responsive Cultures 456 15.1 Leadership Means Leading Change 430 14.1b Importance of Culture Consider This! 454 5 Star and Amtech References In the Lead 450 451 454 Culture Clash 423 425 Leader’s Bookshelf 449 Leadership Development: Cases for Analysis 422 The Visionary Leader Leadership Essentials Leadership at Work 422 449 449 Leader’s Self-Insight 14.3 Leadership Development: Cases for Analysis 448 448 14.6 Values-Based Leadership 14.6a Personal Values 416 446 446 In the Lead 415 445 14.4a Adaptability Culture In the Lead 13.3a What Mission Does References 14.4 The Competing Values Approach to Shaping Culture 443 404 470 472 15.3b Applying Appreciative Inquiry Every Day 472 Leader’s Bookshelf 473 15.4 Leading Creativity for Change 473 xii CONTENTS 15.4a Instilling Creative Values 474 15.4b Leading Creative People 475 Leader’s Self-Insight 15.3 15.5 Implementing Change Consider This! 487 Leadership Development: Cases for Analysis 481 ‘‘From This Point On. . .’’ 481 488 Riverside Pediatric Associates References 491 483 Name Index 484 487 Organizational Change Role Play 477 15.5a Helping People Change 482 15.5b The Keys That Help People Change In the Lead Leadership at Work 494 Leadership Essentials 486 Index of Organizations Discussion Questions 486 Subject Index 502 498 489 488 ABOUT THE AUTHOR Richard L. Daft, Ph.D., is the Brownlee O. Currey, Jr., Professor of Management and Principal Senior Lecturer in the Owen Graduate School of Management at Vanderbilt University. Professor Daft specializes in the study of leadership and organization theory. Dr. Daft is a Fellow of the Academy of Management and has served on the editorial boards of Academy of Management Journal, Administrative Science Quarterly, and Journal of Management Education. He also served as the associate dean at the Owen School, was the associate editor-in-chief of Organization Science, and served for three years as associate editor of Administrative Science Quarterly. Professor Daft has authored or coauthored 14 books. His latest books include The Executive and the Elephant: A Leader’s Guide to Building Inner Excellence (Jossey-Bass, 2010) and Building Management Skills: An Action First Approach (with Dorothy Marcic, Cengage/Southwest, 2014). He is also the author of Organization Theory and Design (Cengage/Southwest, 2016), Management (Cengage/ Southwest, 2018), and Fusion Leadership: Unlocking the Subtle Forces That Change People and Organizations (with Robert Lengel, Berrett-Koehler, 2000). He has also authored dozens of scholarly articles, papers, and chapters. His work has been published in Organizational Dynamics, Administrative Science Quarterly, Academy of Management Journal, Academy of Management Review, Strategic Management Journal, Journal of Management, Accounting Organizations and Society, Management Science, MIS Quarterly, California Management Review, Leadership Excellence, Leader to Leader, and Organizational Behavior Teaching Review. Dr. Daft also is an active teacher and consultant. He has taught leadership, leading change, management, organizational theory, and organizational behavior. He has also produced for-profit theatrical productions and helped manage a start-up enterprise. He has been involved in management development and consulting for many companies and government organizations, including the National Academy of Science, Oak Ridge National Laboratory, American Banking Association, AutoZone, Aegis Technology, Bell Canada, Aluminum Bahrain (Alba), Bridgestone, TVA, Cardinal Healthcare, Pratt & Whitney, Allstate Insurance, State Farm Insurance, the United States Air Force, the U.S. Army, Central Parking System, USAA, Bristol-Myers Squibb, Eli Lilly, Vulcan Materials, and the Vanderbilt University Medical Center. xiii PREFACE Many leaders have recently had their assumptions challenged about how organizations succeed. Leaders are struggling to make sense of the shifting environment and to learn how to lead the people in their companies effectively and successfully in the midst of turmoil. The crisis in the housing, mortgage, and finance industries and resulting recession; volatile oil prices; ethical scandals; political turmoil; and other events have dramatically shifted the organizational and economic landscape. This edition of The Leadership Experience addresses themes and issues that are directly relevant to the current turbulent environment. My vision for the seventh edition is to give students an exciting, applied, and comprehensive view of what leadership is like in today’s world. The Leadership Experience integrates recent ideas and applications with established scholarly research in a way that makes the topic of leadership come alive. Organizations are undergoing major changes, and this textbook addresses the qualities and skills leaders need in this rapidly evolving world. Recent chaotic events, combined with factors such as a growing need for creativity and innovation in organizations, the rise of social media, the growth of e-business and mobile commerce, the use of virtual teams and telecommuting, globalization, the growing problem of cybercrime, and other ongoing transformations place new demands on leaders that go far beyond the topics traditionally taught in courses on management or organizational behavior. My experiences teaching leadership to students and managers, and working with leaders to change their organizations, have affirmed for me the value of traditional leadership concepts while highlighting the importance of including new ideas and applications. The Leadership Experience thoroughly covers the history of leadership studies and the traditional theories but goes beyond that to incorporate valuable ideas such as leadership vision, shaping culture and values, leadership courage, and the importance of moral leadership. The book expands the treatment of leadership to capture the excitement of the subject in a way that motivates students and challenges them to develop their leadership potential. NEW TO THE SEVENTH EDITION A primary focus for revising The Leadership Experience, seventh edition, has been to relate leadership concepts and theories to real events in today’s turbulent environment. Each chapter has been revised and updated to bring in current issues and events that leaders are facing. Topics and application examples that have been added or expanded in the seventh edition include: xiv PREFACE • • • • • • • • • • • developing a global mindset leading with humility leadership courage as a skill the influence of emotions on performance the importance of self-awareness for leadership entrepreneurial leadership overcoming bias in the workplace candid communication how leaders use social media leadership coaching balancing conflict and cooperation xv • • • • • • • • • agile leadership fostering a thriving workforce team competencies how to confront others during conflict diversity of thought co-creating a vision building a high-performance culture through values and results the mental transition required for people to change behavior using a positive emotional attractor Some of the new examples of leaders and leadership within organizations that show practical applications of key concepts include: • • • • • • • • • • • • • • • • Pope Francis Mickey Drexler, J. Crew Warren Buffett, Berkshire Hathaway Satya Nadella, Microsoft Laura Smith, Yola Nancy Dubec, A&E Networks Angela Ahrendts, Apple Coach Ron Rivera, Carolina Panthers Chade-Meng Tan, Google Kip Tindell, Container Store Gen. Stanley McChrystal, U. S. Army Rich Gee, Rich Gee Group Dan Price, Gravity Payments Grant Reid, Mars Inc Zingerman’s Honda Engine Plant • • • • • • • • • • • • • • • • Seattle Seahawks Earl’s Restaurants Mattel Toys Chris Rufer, Morning Star Golden State Warriors Vivek Gupta, Zensar Technologies Inga Beale, Lloyd’s of London Intel HealthFitness Norman Seabrook, Riker’s Island Dick Costolo, Twitter BNSF Railway Rui Sousa, Ronnie McKnight,Tom Camp, UPS Natarajan Chandrasekaran, Tata Consultancy Marvin Ellison, J. C. Penney Jon Fairest, Sanofi Canada The Leadership Experience continues to offer students great opportunities for self-assessment and leadership development. An important aspect of learning to be a leader involves looking inward for greater self-understanding, and the seventh edition provides many opportunities for this type of reflection. Each chapter includes multiple questionnaires or exercises that enable students to learn about their own leadership beliefs, values, competencies, and skills. These exercises help students gauge their current standing and connect the chapter concepts and examples to ideas for expanding their own leadership abilities. A few of the self-assessment topics involve engagement, networking, ethical maturity, personality traits, leading diverse people, developing a personal vision, spiritual leadership, candor, leadership courage, optimism, and leading with love versus leading with fear. Self-assessments related to basic leadership abilities such as listening skills, emotional intelligence, motivating others, and using power and influence are also included. Additional selfassessments are available within MindTap. xvi PREFACE ORGANIZATION The organization of the book is based on first understanding basic ways in which leaders differ from managers, and the ways leaders set direction, seek alignment between organizations and followers, build relationships, and create change. Thus, the organization of this book is in five parts: 1. Introduction to Leadership 2. Research Perspectives on Leadership 3. The Personal Side of Leadership 4. The Leader as a Relationship Builder 5. The Leader as Social Architect The book integrates materials from both micro and macro approaches to leadership, from both academia and the real world, and from traditional ideas and recent thinking. DISTINGUISHING FEATURES This book has a number of special features that are designed to make the material accessible and valuable to students. In the Lead The Leadership Experience is loaded with new examples of leaders in both traditional and contemporary organizations. Each chapter opens with a reallife example that relates to the chapter content, and several additional examples are highlighted within each chapter. These examples are drawn from a wide variety of organizations including education, the military, government agencies, businesses, and nonprofit organizations. Consider This! Each chapter contains a Consider This box that is personal, compelling, and inspiring. This box may be a saying from a famous leader, or wisdom from the ages. These Consider This boxes provide novel and interesting material to expand the reader’s thinking about the leadership experience. Leader’s Bookshelf In this edition, six of the 15 chapters have new Leader’s Bookshelf reviews. A unique feature of The Leadership Experience is that each chapter includes a review of a recent book relevant to the chapter’s content. The Leader’s Bookshelf connects students to issues and topics being read and discussed in the worlds of academia, business, military, education, and nonprofit organizations. New Leader Action Memo This feature helps students apply the chapter concepts in their own lives and leadership activities and directs them to self-assessments related to various chapter topics. Leader’s Self-Insight These boxes provide self-assessments for learners and an opportunity to experience leadership issues in a personal way. These exercises take the form of questionnaires, scenarios, and activities. PREFACE Student Development Each chapter ends with discussion questions and then two activities for student development. The first, Leadership at Work, is a practical, skillbuilding activity that engages the student in applying chapter concepts to real-life leadership. These exercises are designed so students can complete them on their own outside of class or in class as part of a group activity. Instructor tips are given for maximizing in-class learning with the Leadership at Work exercises. Leadership Development: Cases for Analysis, the second end-of-chapter activity, provides two short, problem-oriented cases for analysis. These cases test the student’s ability to apply concepts when dealing with real-life leadership issues. The cases challenge the student’s cognitive understanding of leadership ideas while the Leadership at Work exercises and the feedback questionnaires assess the student’s progress as a leader. Business Insights: Essentials’ intuitive user interface makes it easy for students and instructors to search and find in-depth information on businesses, industries, and products. Features and benefits include the ability to search across multiple data types from a single search box with targeted search options by category. This includes company information, articles, industry data, SWOT Reports, Thomson Reuters Company Financials and Investment Reports, Market Share Reports, and Industry Essays. We have created assignments based on articles that connect directly with the content covered in your text, including assessment questions to test students on their knowledge of the content and emphasizing real-world examples. MindTap¤ Management for Daft’s The Leadership Experience, 7th Edition, is the digital learning solution that helps instructors to engage and transform today’s students into critical thinkers. Through paths of dynamic assignments and applications that you can personalize, real-time course analytics, and an accessible reader, MindTap helps you turn cookie-cutter into cutting-edge, apathy into engagement, and memorizers into higher-level thinkers. As an instructor using MindTap, you have at your fingertips the right content and a unique set of tools curated specifically for your course, all in an interface designed to improve workflow and save time when planning lessons and course structure. The control over building and personalizing your course is all yours, so you can focus on the most relevant material while also lowering costs for your students. Stay connected and informed in your course through real-time student tracking that provides the opportunity to adjust the course as needed based on analytics of interactivity in the course. The MindTap Assignments are fully integrated with the text, providing calculated combinations of lower- and higher-order thinking skills exercises. Students can work together in the experiential exercises to create videos, write papers, deliver presentations, and more. Interactive Self-Assessments engage students by helping them make personal connections to the content presented in each chapter. A flexible grading system offers grade analytics and grade book export tools to work with any learning management system. ANCILLARIES This edition offers a wide range of instructor ancillaries to fully enable instructors to bring the leadership experience into the classroom. These ancillaries include: xvii xviii PREFACE Instructor’s Manual A comprehensive Instructor’s Manual is available to assist in lecture preparation. Included in the Instructor’s Manual are the chapter outlines, suggested answers to end-of-chapter materials, suggestions for further study, and a quick-glance overview for each chapter of the available MindTap resources to assist instructors in their planning. Test Bank Cengage Learning Testing Powered by Cognero is a flexible, online system that allows you to author, edit, and manage test bank content from multiple Cengage Learning solutions; create multiple test versions in an instant; and deliver tests from your LMS, your classroom, or wherever you want. The test bank for The Leadership Experience, seventh edition, includes approximately 60 questions per chapter to help you in writing examinations. Types of questions include true/false, multiple choice, completion, short-answer, and essay, with all questions tagged to relevant national competencies. To ensure consistency across our entire package, the content of the test bank has been fully reviewed and updated by the same authors who have crafted our new digital resources. PowerPoint Lecture Presentations An asset to any instructor, the PowerPoint lecture presentations include outlines for every chapter, illustrations from the text, and additional examples to provide learning opportunities for students. Videos Videos compiled specifically to accompany The Leadership Experience, seventh edition, allow students to engage with the textual material by applying theories and concepts to real-world situations. ACKNOWLEDGMENTS Textbook writing is a team enterprise. This book has integrated ideas and support from many people whom I want to acknowledge. I want to extend special thanks to my editorial associate, Pat Lane. I could not have undertaken this revision without Pat’s help. She skillfully drafted materials for the chapters, found original sources, and did an outstanding job with last-minute changes, the copyedited manuscript, art, and galley proofs. Pat’s talent and personal enthusiasm for this text added greatly to its excellence. Here at Vanderbilt I want to thank my assistant, Linda Roberts, for the tremendous volume and quality of work she accomplished on my behalf that gave me time to write. Eric Johnson, the dean at Owen, and Sal March, associate dean, have maintained a positive scholarly atmosphere and supported me with the time and resources to complete the revision of this book. I also appreciate the intellectual stimulation and support from friends and colleagues at the Owen School—Bruce Barry, Ray Friedman, Jessica Kennedy, Rich Oliver, David Owens, Ty Park, Ranga Ramanujam, Bart Victor, and Tim Vogus. PREFACE xix I want to acknowledge the reviewers who provided feedback. Their ideas helped me improve the book in many areas: Thomas H. Arcy University of Houston—Central Campus Janey Ayres Purdue University Kristin Backhaus SUNY New Paltz Bill Bommer Georgia State University William Russell Brown Navarro College Jared Caughron University of Oklahoma Meredith Rentz Cook North Central Texas College Glenn K. Cunningham Duquesne University Jeffrey Fisher Embry Riddle Aeronautical University Richard T. Martin Washburn University Jalane Meloun Barry University Mark Nagel Normandale Community College Ranjna Patel Bethune Cookman College Chad Peterson Baylor University Gordon Riggles University of Colorado Miriam Rothman University of San Diego Bill Service Samford University Dan Sherman University of Alabama at Huntsville Bret Simmons North Dakota State University Ron Franzen Saint Luke’s Hospital Shane Spiller University of Montevallo Adrian Guardia Texas A&M University—San Antonio Shand H. Stringham Duquesne University Delia J. Haak John Brown University Ahmad Tootonchi Frostburg State University Nell Hartley Robert Morris College Mary L. Tucker Ohio University Ann Horn-Jeddy Medaille College Joseph W. Weiss Bentley University Ellen Jordan Mount Olive College Donald D. White University of Arkansas Alyson Livingston North Central Texas College Xavier Whitaker Baylor University Gregory Manora Auburn University–Montgomery Jean Wilson The College of William and Mary Joseph Martelli The University of Findlay George A. Wynn University of Tampa The developers at Cengage Learning also deserve special mention. Senior Product Manager Mike Roche supported the concept for this book and obtained the xx PREFACE resources necessary for its completion. Associate Content Developer Jamie Mack provided terrific support for the book’s writing, reviews, and production. I also thank Bob Lengel at the University of Texas at San Antonio. Bob’s enthusiasm for leadership many years ago stimulated me to begin reading, teaching, and training in the area of leadership development. His enthusiasm also led to our collaboration on the book Fusion Leadership: Unlocking the Subtle Forces That Change People and Organizations. I thank Bob for keeping the leadership dream alive, which in time enabled me to pursue my dream of writing this leadership textbook. Finally, I want to acknowledge my loving daughters Danielle, Amy, Roxanne, Solange, and Elizabeth. Although everyone is now pursuing their own lives and careers, I appreciate the good feelings and connections with my children and grandchildren. On occasion, we have been able to travel, vacation, watch a play, or just be together—all of which reconnect me to the things that really count. Richard L. Daft Nashville, Tennessee Part 1: Introduction to Leadership Chapter 1: What Does It Mean to Be a Leader? Chapter 1: What Does It Mean to Be a Leader? YOUR LEADERSHIP CHALLENGE After reading this chapter, you should be able to: • Understand the full meaning of leadership and see the leadership potential in yourself and others. • Recognize and facilitate the six fundamental transformations in today’s organizations and leaders. • Identify the primary reasons for leadership derailment and the new paradigm skills that can help you avoid it. • Recognize the traditional functions of management and the fundamental differences between leadership and management. • Appreciate the crucial importance of providing direction, alignment, relationships, personal qualities, and outcomes. • Explain how leadership has evolved and how historical approaches apply to the practice of leadership today. CHAPTER OUTLINE 4 Why We Need Leadership In the Lead 8 The New Reality for Leaders 13 14 How Leadership Differs from Management Pope Francis, Roman Catholic Church 23 Google 17 Evolving Theories of Leadership 21 Leadership Can Be Learned 24 Mastering the Art and Science of Leadership 24 Organization of This Book Leader’s Self-Insight 11 Your Learning Style: Using Multiple Intelligences 17 Your Leadership Potential 22 Are You on a Fast Track to Nowhere? Leader’s Bookshelf 7 My Life in Leadership: The Journey and Lessons Learned Along the Way Leadership at Work 27 Leadership Right–Wrong Leadership Development: Cases for Analysis 29 Sales Engineering Division 29 The Marshall Plan A braham Lincoln had less leadership experience than any previous president, but when historians rank the ‘‘greatest presidents,’’ Lincoln frequently tops the list. Interest in Lincoln’s leadership swelled with the release of Steven Spielberg’s historical film Lincoln, which was a huge critical and commercial success, grossing more than $250 million at the box office and garnering 12 Academy Award nominations. ‘‘Lincoln’s presidency is a big, well-lit classroom for business leaders seeking to build successful, enduring organizations,’’ said Howard Schultz, CEO of Starbucks. In this era of disconnected and often morally bankrupt leaders, it is no wonder the skills, strengths, and character of Lincoln have struck a chord. Lincoln once provoked an opponent to tears by using his expert communication skills to mimic and ridicule his rival. Soon afterward, the man who would later become the 16th president of the United States felt disappointed and ashamed of his own behavior and sought out his opponent to offer an apology. Lincoln took this as a valuable lesson about channeling his emotions, practicing empathy, and using his abilities to promote good. From then on, Lincoln applied his superb leadership and communication skills to serve the higher interests of the American people rather than his own goals and ego. His ability to control his emotions and stay committed 3 4 PART 1 INTRODUCTION TO LEADERSHIP to a vision even under intense hardship, his commitment to go into the field and establish connections with soldiers and the general public, and his willingness to listen to different points of view and to share credit for successes and take blame for failures all tap into a deep longing within people for genuine leadership.1 The public trust in leaders may be at an all-time low. Referring to the dire economic situation that followed the ethical and financial problems in the mortgage and finance industries, David Rothkopf wrote in the Washington Post, ‘‘This is not just a global economic crisis. It is a global leadership crisis.’’2 1-1 WHY WE NEED LEADERSHIP Many of us think of leadership in a way similar to what U.S. Supreme Court Justice Potter Stewart said about obscenity in reviewing a 1964 pornography case: we may not be able to define it but ‘‘we know it when we see it.’’3 People can clearly see leadership in Abraham Lincoln, but many are having a hard time seeing it in current political, business, military, and even religious leaders. General David Petraeus, one of the most decorated military leaders of his generation, stepped down as director of the Central Intelligence Agency after the FBI inadvertently discovered he had an extramarital affair with his biographer and began investigating for potential leaks of classified information. The British Broadcasting Corporation (BBC) was tarnished by allegations that managers covered up years of sexual abuse by a well-known reporter.4 Senator Chuck Grassley recently probed the financial records of six wellknown televangelists, including Creflo Dollar and Kenneth Copeland, after reports that tax-exempt donations were financing lavish lifestyles for the religious leaders, including mansions, Rolls Royce cars, and private jets.5 Nearly every month brings a new report of a business leader somewhere lying to, misleading, or cheating employees, customers, or the government. No wonder survey after survey shows that confidence in leaders is sinking and suspicion and distrust are rising.6 Yet there are good leaders working in every organization, large and small. In fact, quality leadership is all around us every day, in all facets of our lives—our families, schools, communities, social clubs, and volunteer organizations, as well as in the world of business, sports, religion, government, and the military. Without good leadership, our institutions and society would fall apart. Before we can examine what makes an effective leader, we need to know what leadership means. Scholars and other writers have offered hundreds of definitions of the term leadership, prompting James McGregor Burns to conclude that leadership ‘‘is one of the most observed and least understood phenomena on earth.’’7 Defining leadership has been a complex and elusive problem largely because the nature of leadership itself is complex. Some have even suggested that leadership is nothing more than a romantic myth, perhaps based on the false hope that someone will come along and solve our problems by sheer force of will.8 There is some evidence that people do pin their hopes on leaders in ways that are not always realistic. Think about how some struggling companies recruit wellknown, charismatic CEOs and invest tremendous hopes in them, only to find that their problems actually get worse.9 For example, Yahoo hired former Autodesk CEO Carol Bartz in 2009 with high hopes that the star leader could turn the struggling company around, only to ask her to leave a couple of years later as Yahoo’s fortunes continued to slide. In mid-2012, Yahoo hired former Google executive Marissa Mayer as the fifth CEO in five years. CHAPTER 1 WHAT DOES IT MEAN TO BE A LEADER? 5 Particularly when times are tough, people often look to a grand, charismatic type of leader to alleviate fear and uncertainty. Think of how Barack Obama sailed to the U.S. presidency in 2008 based largely on his charisma and the ability to make people feel hopeful in a time of uncertainty. In recent years, the romantic or heroic view of leadership has been challenged.10 Much progress has been made in understanding the essential nature of leadership as a real and powerful influence in organizations and societies. 1-1a Defining Leadership Leadership studies are an evolving discipline, and the concept of leadership will continue to develop. For the purpose of this book, we will focus on a single definition that delineates the essential elements of the leadership process: Leadership is an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes.11 Exhibit 1.1 summarizes the key elements in this definition. Leadership involves influence; it occurs among people; those people intentionally desire significant changes; and the changes reflect purposes shared by leaders and followers. Influence means that the relationship among people is not passive; however, also inherent in this definition is the concept that influence is multidirectional and noncoercive. The basic cultural values in North America make it easiest to think of leadership as something a leader does to a follower.12 However, leadership is reciprocal. In most organizations, superiors influence subordinates, but subordinates also influence superiors. The people involved in the relationship want substantive changes—leadership involves creating change, not maintaining the status quo. In addition, the changes sought are not dictated by leaders but reflect purposes that leaders and followers share. Moreover, change is toward an outcome that both the leader and the followers want, a desired future or shared purpose that motivates them toward this more preferable outcome. An important aspect of leadership is influencing others to come together around a common vision. Thus, leadership involves the influence of people to bring about change toward a desirable future. EXHIBIT 1.1 What Leadership Involves Influence Followers Leader Shared purpose Intention Personal responsibility and integrity Change Leadership an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes 6 PART 1 INTRODUCTION TO LEADERSHIP Also, leadership is a people activity and is distinct from administrative paperwork or planning activities. Leadership occurs among people; it is not something done to people. Since leadership involves people, there must be followers. An individual performer who achieves excellence as a scientist, musician, athlete, or woodcarver may be a leader in her field of expertise but is not a leader as defined in this book unless followers are involved. Followers are an important part of the leadership process, and all leaders are sometimes followers as well. Good leaders know how to follow, and they set an example for others. The issue of intention or will means that people—leader and followers—are actively involved in the pursuit of change. Each person takes personal responsibility to achieve the desired future. One stereotype is that leaders are somehow different, that they are above others; however, in reality, the qualities needed for effective leadership are the same as those needed to be an effective follower.13 Effective followers think for themselves and carry out assignments with energy and enthusiasm. They are committed to something outside their own self-interest, and they have the courage to stand up for what they believe. Good followers are not ‘‘yes people’’ who blindly follow a leader. Effective leaders and effective followers may sometimes be the same people, playing different roles at different times. At its best, leadership is shared among leaders and followers, with everyone fully engaged and accepting higher levels of responsibility. 1-1b Everyday Leadership Using this definition of leadership makes clear that leadership can come from anyone. When we stop equating leadership with greatness and public visibility, it becomes easier to see our own opportunities for leadership and recognize the leadership of people we interact with every day. Leaders come in all shapes and sizes, and many true leaders are working behind the scenes. Leadership that has big outcomes often starts small. • • • Wendy Kopp was a senior at Princeton University when she first came up with the idea of a sort of ‘‘Peace Corps for teachers,’’ a national organization that would recruit recent college graduates to commit to teach for two years at some of America’s toughest public schools. One of her Princeton professors admits he called her ‘‘deranged’’ when she proposed the idea to him. Yet Teach for America, the organization Kopp started, became one of the most respected educational initiatives in the United States. As the organization has grown larger, it has come under attack, but most observers agree it has changed education for the better and it continues to harness the idealism of young college graduates as a force for good.14 Clinical psychologist Barbara Van Dahlen was working primarily with children in the Washington, D.C., area when she became concerned about the effects of the wars in Iraq and Afghanistan on the mental health of U.S. soldiers, veterans, and their families. Van Dahlen founded Give an Hour to provide free services that give help and hope to returning service members. The organization now has a national network of more than 6,100 mental health professionals who volunteer their time. Give an Hour also works with other organizations, such as Bare the Burden, a nonprofit organization that creates an online community for veterans to heal by connecting with others.15 During his five years working as a car salesman, Robert Chambers was disgusted by how some dealers and finance institutions preyed on low-income customers. After he retired from a varied career, the 62-year-old electrical engineer LEADER’S BOOKSHELF My Life in Leadership: The Journey and Lessons Learned Along the Way by Frances Hesselbein What college dropout transformed one of the world’s largest volunteer organizations, was named Fortune magazine’s ‘‘Best Nonprofit Manager in America,’’ and received America’s highest civilian honor, the Presidential Medal of Freedom? The answer: Frances Hesselbein, who began her amazing leadership journey as a somewhat reluctant volunteer leader of Girl Scout Troup 17 in Johnstown, Pennsylvania, when she was in her early twenties. In her autobiography, My Life in Leadership, Hesselbein, now in her late 90s, shares what she has learned about leadership throughout her long career. ‘‘LEADERSHIP IS A MATTER OF HOW TO BE, NOT HOW TO DO’’ Hesselbein argues that ‘‘it is the quality and character of the leader that determines performance.’’ For her, leadership is about serving others. From her beginning as a volunteer Scout leader, she eventually became CEO of the Girl Scouts of the USA, and later was founding president of famed management scholar Peter Drucker’s Leader to Leader Institute (she still serves as CEO of the organization, recently renamed the Frances Hesselbein Leadership Institute). Here are a few of the key lessons Hesselbein has learned along the way: • • Have a Clear Mission That Everyone Can Support. As soon as she became CEO of the national Girl Scouts, Hesselbein took a close look at the mission of the organization and began asking leaders at all levels, as well as girls themselves, what they really valued, wanted, and needed. ‘‘Because we included everyone, it became theirs, not ours,’’ she says. Hesselbein calls the mission, vision, and values ‘‘the soul of the organization,’’ which should be central ‘‘even as we abandon the vestiges of the past that spell irrelevance in the future.’’ Be Inclusive. Hesselbein also ditched the hierarchy, sharing information and power with leaders at all levels from the beginning. A concept she called ‘‘circular management,’’ put the leader in the middle of the • organizational chart rather than at the top of a hierarchy. Everyone was a member of a team, and there were no superiors and subordinates. Being inclusive develops leaders at every level and increases the energy and creativity of the entire organization. Make Learning a Top Priority. Organizations have to keep changing and adapting when it’s necessary. ‘‘The first item in your budget should be learning, education, and development of your people,’’ she says. THE GREAT ADVENTURE Hesselbein tells her story in Learning to Lead as a great adventure that she enjoyed every step of the way. It is a story told in a very personal way, but one that is packed with observations and reflections that are as relevant to today’s leaders as when Hesselbein first began her long leadership journey as a volunteer Girl Scout leader. Source: Learning to Lead, by Frances Hesselbein, is published by Jossey-Bass. decided to do something about it. He founded More Than Wheels, which helps low-income people buy new, base-model cars at low prices and on good loan terms. With branches in New Hampshire, Vermont, and Maine, More Than Wheels has negotiated price and extended warranty deals with a dozen or so auto dealers and worked with banks to provide low interest rates. More Than Wheels guarantees the loan and then works with clients to help them manage their finances, improve their credit scores, and improve their future.16 There are opportunities for leadership all around us that involve influence and change toward a desired goal or outcome. As further illustrated in the Leader’s Bookshelf, widely known and highly respected leaders often begin their leadership journeys in small ways. The leaders of tomorrow’s organizations will come from anywhere and everywhere, just as they always have. Do you have the capacity and commitment required for taking a leadership role in your school, community, or workplace? You can start now, wherever you are, to practice leadership in your own life. Leadership is an everyday way of acting and thinking that has little to do with a title or formal position in an organization. As we will discuss in the following section, business leaders need to understand this tenet more than ever in the world of the twenty-first century. NEW LEADER ACTION MEMO As a leader, you can recognize opportunities for leadership and act to influence others and bring about changes for a better future. 7 8 PART 1 INTRODUCTION TO LEADERSHIP 1-2 THE NEW REALITY FOR LEADERS Paradigm a shared mindset that represents a fundamental way of thinking about, perceiving, and understanding the world Social media. Globalization. Mobile commerce. Geopolitical wars. Renewable technologies and smart machines. Outsourcing. Climate change and resource scarcity. Telecommuting and virtual teams. Cybercrime. Redistribution of economic power. Massive changes in the world mean today’s leaders are facing challenges they couldn’t even imagine just a few years ago.17 In a survey by the Center for Creative Leadership, 84 percent of leaders surveyed say the definition of effective leadership changed significantly within the first few years of the twenty-first century.18 And that was even before social and mobile technologies began reshaping everyday life and work. Social connectedness and mobility are becoming central aspects of every leader’s job. Some historians and other scholars believe our world is undergoing a transformation more profound and far-reaching than any experienced since the dawn of the modern age and the Industrial Revolution more than 500 years ago. Today’s leaders operate in a world where little is certain, the pace is relentless, and everything is more complex. This transformation requires a transition from a traditional to a new leadership paradigm, as outlined in Exhibit 1.2.19 A paradigm is a shared mindset that represents a fundamental way of thinking about, perceiving, and understanding the world. Although many leaders are still operating from an old-paradigm mindset, as outlined in the first column of Exhibit 1.2, they are increasingly ineffective. Successful leaders will respond to the new reality outlined in the second column of the exhibit. EXHIBIT 1.2 The New Reality for Leaders From Old Paradigm Leader To New Paradigm Leader Stabilizer Change Manager Controller Facilitator Competitor Collaborator Diversity Avoider Diversity Promoter Hero Humble CHAPTER 1 WHAT DOES IT MEAN TO BE A LEADER? 1-2a From Stabilizer to Change Manager In the past, many leaders assumed that if they could just keep things running on a steady, even keel, the organization would be successful. Yet today’s world is in constant motion, and nothing seems certain anymore. If leaders still had an illusion of stability at the dawn of the twenty-first century, it is surely shattered by now. Consider the following recent events: • • • A powerful earthquake in Japan triggered massive tsunami waves that damaged the nuclear reactors at the Fukushima Daiichi power plant and led to the shutdown of numerous companies, creating supply chain disruptions for manufacturers around the world. In the wake of the disaster, managers at Tokyo Electric Power Company (Tepco) were criticized for failing to act quickly enough to cool the reactors at Fukushima. Trying to protect their investment, they hesitated to use seawater, which they knew could damage the reactors, leading to the second-largest nuclear disaster in history.20 In 2015, the Volkswagen Group, one of the largest car manufacturers in the world and known as maker of ‘‘the people’s car,’’ was discovered to have used software designed to cheat U.S. emissions tests, affecting 11 million vehicles worldwide. Actual exhaust emissions turned out to be up to 40 times higher than the emission tests revealed. VW’s emissions scandal cast doubt on the reputations and emissions validity of other auto manufacturers such as Mercedes and BMW. Germany’s national economy and auto suppliers worldwide will likely be hurt as VW sales decline.21 Greece was in a deep recession in 2015 due to huge debts to the European Union (EU). Sharp cutbacks in government spending had decimated personal incomes and businesses in the region. Ireland and Spain f similar debt problems previously, causing talk of a possible breakup of the euro system (the single currency adopted by EU countries), which would deal a severe blow to the global financial system. Leaders of multinational firms have to take steps to protect themselves, as well as consider what they will do in the event that a return to national currencies requires a rethinking of everything from how to expand operations to how to pick suppliers or pay employees.22 Most leaders, whether in business, politics, the military, education, social services, the arts, or the world of sports, recognize that trying to maintain stability in a world of such unexpected and far-reaching change is a losing battle. ‘‘You have to be able to react very quickly,’’ said Ellen Kullman, recently retired CEO of DuPont, referring to the impact of events such as the Japanese tsunami and the EU financial crisis. ‘‘And the world is so connected that the feedback loops are more intense.’’23 Today’s best leaders accept the inevitability of change and crisis and tap into them as potential sources of energy and self-renewal. Adaptability is the watchword of the day. 1-2b From Controller to Facilitator Leaders in powerful positions once believed strict control was needed for the organization to function efficiently and effectively. Rigid organizational hierarchies, structured jobs and work processes, and detailed, inviolate procedures let everyone know that those at the top had power and those at the bottom had none. 9 10 PART 1 INTRODUCTION TO LEADERSHIP Today, the old assumptions about the distribution of power are no longer valid. An emphasis on control and rigidity serves to squelch motivation, innovation, and morale rather than produce desired results. Effective leaders share power rather than hoard it and find ways to increase an organization’s brainpower by getting everyone in the organization involved and committed. Rather than being a controller, the leader is a facilitator who helps people do and be their best by removing obstacles to performance, getting people what they need, providing learning opportunities, and offering support and feedback. One reason for this is that the financial basis of today’s economy is becoming information rather than the tangible assets of land, buildings, and machines. This means human capital is becoming more important than financial capital, which increases the power of employees. ‘‘Ideas are now more important than materials,’’ as former Israeli president Shimon Peres once put it.24 When all the organization needed was workers to run machines eight hours a day, traditional commandand-control systems generally worked quite well, but success today depends on the intellectual capacity of all employees. One of the leader’s most challenging jobs is to enable people to embrace and use their power effectively.25 When he took over as CEO of India’s struggling HCL Technologies in 2005, Vineet Nayar took a huge risk that proved to be a highly effective route to true employee empowerment and increasing revenues. His revolutionary move was to organize the company around the principle of ‘‘employees first, customers second.’’ Nayar created an open online forum where people could post questions and leaders would answer. Employees were overjoyed that leaders were willing to acknowledge the problems in the company, and they began proposing solutions. This began the transfer of power and responsibility for solving problems from top executives to employees. In the new HCL, the job of leaders is to serve employees.26 Nayar, who served as CEO until 2013, wrote a book titled Employees First, Customers Second: Turning Conventional Management Upside Down to explain how leaders can tap into the power of this unconventional approach.27 1-2c From Competitor to Collaborator NEW LEADER ACTION MEMO Go to Leader’s Self-Insight 1.1 to learn about your own ‘‘intelligence’’ for dealing with collaboration and with the other new realities facing leaders. Social media has ‘‘put connectivity on steroids,’’ blurring and sometimes obliterating boundaries within and between organizations.28 In a hyperconnected, networked age, collaboration becomes more important than competition. Successful leaders harness and make the most of ideas, talent, and resources from across boundaries of all kinds. Although some companies still encourage internal competition and aggressiveness, most successful leaders stress teamwork, compromise, and cooperation. Self-directed teams and other forms of horizontal collaboration spread knowledge and information throughout the organization. Effective leaders also work collaboratively with suppliers, customers, governments, universities, and other organizations. There is a growing trend within companies to think of themselves as teams that create value jointly rather than as autonomous entities in competition with all others. Collaboration presents greater leadership challenges than did the old concept of competition. Leaders first have to develop their own collaborative mindset and then create an environment of teamwork and community that fosters collaboration and mutual support. They learn to keep the lines of communication open and use influence rather than wielding their authority to quell harmful politicking, get buy-in on important matters, and move things forward.29 LEADER’S SELF-INSIGHT 1.1 Your Learning Style: Using Multiple Intelligences Instructions: Multiple-intelligence theory suggests that there are several different ways of learning about things in a topsy-turvy world; hence there are multiple ‘‘intelligences,’’ of which five are interpersonal (learn via interactions with others), intrapersonal (own inner states), logical–mathematical (rationality and logic), verbal–linguistic (words and language), and musical (sounds, tonal patterns, and rhythms). Most people prefer one or two of the intelligences as a way of learning, yet each person has the potential to develop skills in each of the intelligences. The following items will help you identify the forms of intelligence that you tend to use or enjoy most, as well as the forms that you use less. Please check each item below as Mostly False or Mostly True for you. 13. When among strangers, I easily find someone to talk to. 14. I spend time alone meditating, reflecting, or thinking. 15. After hearing a tune once or twice, I am able to sing it back with some accuracy. ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Questions 1, 6, 11: Logical–mathematical intelligence. # Mostly True ¼ ________. Questions 2, 7, 12: Verbal–linguistic intelligence. # Mostly True ¼ ________. Questions 3, 8, 13: Interpersonal intelligence. # Mostly True ¼ ________. Questions 4, 9, 14: Intrapersonal intelligence. # Mostly True ¼ ________. Questions 5, 10, 15: Musical intelligence. # Mostly True ¼ ________. ______ ______ ______ ______ ______ ______ Scoring and Interpretation Count the number of items checked Mostly True that represent each of the five intelligences as indicated below. Mostly Mostly False True 1. I like to work with and solve complex problems. 2. I recently wrote something that I am especially proud of. 3. I have three or more friends. 4. I like to learn about myself through personality tests. 5. I frequently listen to music on the radio or iPod-type player. 6. Math and science were among my favorite subjects. 7. Language and social studies were among my favorite subjects. 8. I am frequently involved in social activities. 9. I have or would like to attend personal growth seminars. 10. I notice if a melody is out of tune or off key. 11. I am good at problem solving that requires logical thinking. 12. My conversations frequently include things I’ve read or heard about. ______ ______ Educational institutions tend to stress the logical– mathematical and verbal–linguistic forms of learning. How do your intelligences align with the changes taking place in the world? Would you rather rely on using one intelligence in depth or develop multiple intelligences? Any intelligence above for which you received a score of 3 is a major source of learning for you, and a score of zero means you may not use it at all. How do your intelligences fit your career plans and your aspirations for the type of leader you want to be? Sources: Based on Kirsi Tirri, Petri Nokelainen, and Martin Ubani, ‘‘Conceptual Definition and Empirical Validation of the Spiritual Sensitivity Scale,’’ Journal of Empirical Theology 19 (2006), pp. 37–62; and David Lazear, ‘‘Seven Ways of Knowing: Teaching for Multiple Intelligences,’’ (Palatine, IL: IRI/Skylight Publishing, 1991). ______ ______ ______ ______ 1-2d From Diversity Avoider to Diversity Promoter Many of today’s organizations were built on assumptions of uniformity, separation, and specialization. People who think alike, act alike, and have similar job skills are grouped into a department, such as accounting or manufacturing, separate from other departments. Homogenous groups find it easy to get along, communicate, and understand one another. The uniform thinking that arises, however, can be a disaster in a world becoming more multinational and diverse. 11 12 PART 1 INTRODUCTION TO LEADERSHIP Bringing diversity into the organization is the way to attract the best human talent and develop an organizational mindset broad enough to thrive in a multinational world. Carlos Ghosn, CEO of Nissan, says one reason his company has been able to cope with change and crises better than some of its competitors is its highly diverse culture and workforce.30 Two business school graduates in their twenties discovered the importance of diversity when they started a specialized advertising firm. They worked hard, and as the firm grew, they hired more people just like themselves—bright, young, intense college graduates who were committed and hard working. The firm grew to about 20 employees over two and a half years, but the expected profits never materialized. The two entrepreneurs could never get a handle on what was wrong, and the firm slid into bankruptcy. Convinced the idea was still valid, they started over, but with a new philosophy. They sought employees with different ages, values, ethnic backgrounds, and work experience. People had different styles, yet the organization seemed to work better. People played different roles, and the diverse experiences of the group enabled the firm to respond to unique situations and handle a variety of organizational and personal needs. The advertising firm is growing again, and this time it is also making a profit. ConsiderThis! Should Leaders Live by the Cowboy Code? 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. A cowboy never takes unfair advantage—even of an enemy. A cowboy never goes back on his word or betrays a trust. A cowboy always tells the truth. A cowboy is kind and gentle with children, the elderly, and animals. A cowboy is free from racial or religious prejudice. A cowboy is always helpful and lends a hand when anyone is in trouble. A cowboy is a good worker. A cowboy stays clean in thought, speech, action, and personal habits. A cowboy respects womanhood, parents, and the laws of his nation. A cowboy is a patriot to his country. Source: Gene Autry’s Cowboy Commandments are reported, with some variations in wording, in multiple sources. 1-2e From Hero to Humble Another shift is the move from celebrating the ‘‘leader-as-hero’’ to recognizing the hard-working behind-the-scenes leader who quietly builds a strong, enduring company by supporting and developing others rather than touting his or her own abilities and successes.31 Recall from this chapter’s opening example how Abraham Lincoln made an intentional choice early in his political career to use his abilities to serve the interests of the American people rather than to feed his own ego. This chapter’s Consider This box presents 10 commandments based on 1950s western film star Gene Autry’s Cowboy Code that can be regarded as applicable to newparadigm leaders even today. CHAPTER 1 WHAT DOES IT MEAN TO BE A LEADER? One reason for the shift from hero to humble is that it is less and less realistic for an individual leader to meet all the challenges a team or organization faces in a complex and rapidly changing world. Another is that ambitious, highly self-confident, charismatic leaders have been at the forefront of some of the ethical scandals and business failures of recent years. The hero leader may make more risky and daring decisions, often without considering the greater good, whereas a humble leader will seek advice and take time to think through the possible consequences of his or her actions.32 A recent study from the W.P. Carey School of Business at Arizona State University found that the most effective CEOs, for example, were those who led with humility by empowering and appreciating their employees, being open to feedback, and putting the greater good above their own self-interest.33 Jim Collins, author of Good to Great and Great by Choice, calls this new breed ‘‘Level 5 leaders.’’34 In contrast to the view of great leaders as larger-than-life personalities with strong egos and big ambitions, Level 5 leaders often seem shy and unpretentious and have no need to be in the limelight. They are more concerned with the success of the team or company than with their own success. These leaders are characterized by an almost complete lack of ego, coupled with a fierce resolve to do what is best for the organization. They accept full responsibility for mistakes, poor results, or failures, but they typically give credit for successes to other people. One corporate example is Sir Terry Leahy, who recently retired after more than a decade leading Britain’s Tesco. That is a long and successful tenure for a leader whom most people know little about. Leahy didn’t court personal publicity, much to the chagrin of journalists, and he put his energies into promoting Tesco and its employees rather than himself.35 Although most research regarding the new type of leader has been on corporate CEOs like Sir Terry Leahy, it is important to remember that new-paradigm or Level 5 leaders are in all positions in all types of organizations. Perhaps not surprisingly, Pope Francis is an excellent example of a humble leader. He chose to be named after St. Francis of Assisi to illustrate that humility and service come first. But the popular pope also illustrates many other qualities of the new-paradigm leader. IN THE LEAD Pope Francis, Roman Catholic Church He was chosen as Time magazine’s 2013 ‘‘Person of the Year,’’ is a leader in Google searches, has tripled attendance at papal events with his humility, empathy, and commitment to the disenfranchised, and created a huge stir when he visited the United States for the first time in September 2015. The leader considered ‘‘everyone’s pope’’ has become a celebrity among managers, leadership coaches, entrepreneurs, and CEOs, too. In a short period of time, Francis has brought about tremendous change and revival in a huge, global organization that has suffered devastating scandals in recent years and, not so long ago, seemed on the verge of becoming irrelevant. He did it by using not only his personal charisma and character but also leadership skills that anyone can apply. For example, Francis doesn’t fear change and is willing to take risks. He has reached out to atheists and agnostics, proclaimed a year of jubilee for women who have had abortions but have since chosen to reflect on the Church’s teachings on the subject, and declared that God has redeemed all of us, not just Catholics. Francis has also demonstrated the importance 13 Humility is not weakness. Humility has its effect across levels of an organization in an empowered uplifting way. You can’t browbeat people into performance. Angelo Kinicki, Management Professor, Author, and Consultant 14 NEW LEADER ACTION MEMO As a leader, you can respond to the reality of change and crisis, the need for empowerment, collaboration, and diversity, and the importance of a higher purpose. You can channel your ambition toward achieving larger organizational goals rather than feeding your own ego. PART 1 INTRODUCTION TO LEADERSHIP of empowering rather than controlling subordinates. He transformed the Synod of Bishops into a decision-making group rather than a ceremonial one. He created a global Council of Cardinal Advisers made up of members who reflect diverse views. He is always willing to listen to advice from anyone and uses social media. He has washed the feet of prisoners, women, and Muslims, rather than performing the traditional ritual only on priests, as a way to show the value of every person and what each person can contribute. He makes personal telephone calls to unsuspecting people, such as the 14-year-old brother of a gas station attendant killed in an armed robbery and a Vatican critic who was ill in the hospital. Francis is willing to listen, to collaborate, and to take advice, but he also isn’t afraid to move forward with his own ideas when he believes this serves the greater good and is in the best interest of the organization.36 Once a relatively obscure Jesuit cardinal, Pope Francis has become one of the most recognized—and some believe most effective—leaders in the world. Within two years, he has brought significant positive changes, including economic reforms at the Vatican and evolving discussions about social issues. He shows that, rather than playing it safe or being blinded by fear of failure, leaders can bring fresh perspectives to problems and apply their skills to achieve a higher purpose. 1-3 HOW LEADERSHIP DIFFERS FROM MANAGEMENT NEW LEADER ACTION MEMO You can evaluate your own leadership potential by completing the quiz in Leader’s Self-Insight 1.2. Management can be defined as the attainment of organizational goals in an effective and efficient manner through planning, organizing, staffing, directing, and controlling organizational resources. So, what is it that distinguishes the process of leadership from that of management? Managers and leaders are not inherently different types of people. There are managers at all hierarchical levels who are also good leaders, and many people can develop the qualities needed for effective leadership and management. Both are essential in organizations and must be integrated effectively to lead to high performance.37 That is, leadership cannot replace management; the two have to go hand-in-hand. Exhibit 1.3 compares management to leadership in five areas crucial to organizational performance—providing direction, aligning followers, building relationships, developing personal qualities, and creating leader outcomes.38 1-3a Providing Direction Management the attainment of organizational goals in an effective and efficient manner through planning, organizing, staffing, directing, and controlling organizational resources Vision a picture of an ambitious, desirable future for the organization or team Both leadership and management are concerned with providing direction for the organization, but there are differences. Management focuses on establishing detailed plans and schedules for achieving specific results, then allocating resources to accomplish the plan. Leadership calls for creating a compelling vision of the future, setting the context within which to view challenges and opportunities, and developing farsighted strategies for producing the changes needed to achieve the vision. Whereas management calls for keeping an eye on the bottom line and short-term results, leadership means keeping an eye on the horizon and the longterm future. A vision is a picture of an ambitious, desirable future for the organization or team. It can be as lofty as Motorola’s aim to ‘‘become the premier company in the CHAPTER 1 WHAT DOES IT MEAN TO BE A LEADER? 15 EXHIBIT 1.3 Comparing Management and Leadership Management Leadership Direction: • Plan and budget • Minimize risk for sure results • Focus on bottom line • Create vision and strategy • Maximize opportunity • Keep eye on horizon Alignment: • Organize and staff • Direct and control • Create structure and order • Create shared culture and values • Provide learning opportunities • Encourage networks and flexibility Relationships: • Invest in goods • Use position power • Focus people on specific goals • Invest in people • Use personal influence • Inspire with purpose and trust Personal Qualities: • Emotional distance • Expert mind • Talking • Conformity • Insight into organization • Emotional connections (Heart) • Open mind (Mindfulness) • Listening (Communication) • Nonconformity (Courage) • Insight into self (Character) Outcomes: • Maintain stability; create a • Create change and a culture of culture of efficiency agility and integrity Sources: Based on John P. Kotter, A Force for Change: How Leadership Differs from Management (New York: The Free Press, 1990) and ideas in Kevin Cashman, ‘‘Lead with Energy,’’ Leadership Excellence (December 2010), p. 7; Henry Mintzberg, Managing (San Francisco: Berrett-Koehler, 2009); and Mike Maddock, ‘‘The One Talent That Makes Good Leaders Great,’’ Forbes (September 26, 2012), www.forbes.com/sites/mikemaddock/2012/09/26/the-one-talent-that-makes-good-leaders-great/ (accessed March 7, 2013). world’’ or as down-to-earth as the Swedish company IKEA’s simple vision ‘‘to provide affordable furniture for people with limited budgets.’’ 1-3b Aligning Followers Management entails organizing a structure to accomplish the plan; staffing the structure with employees; and developing policies, procedures, and systems to direct employees and monitor implementation of the plan. Leadership is concerned instead with communicating the vision and developing a shared culture and set of core values that can lead to the desired future state. Whereas the vision describes the destination, the culture and values help define the journey toward it so that everyone is lined up in the same direction. Leadership provides learning opportunities so people can expand their minds and abilities and assume responsibility for their own actions. Think about classes you have taken at your college or university. In some classes, the professor tells students exactly what to do and how to do it, and many students expect this kind of direction and control. Have you ever had a class where the instructor instead inspired and encouraged you and your classmates to find innovative ways to meet 16 PART 1 INTRODUCTION TO LEADERSHIP goals? The difference reflects a rational management versus a leadership approach. 1-3c Building Relationships In terms of relationships, management focuses on getting the most results out of people so that production goals are achieved and goods and services are provided to customers in a timely manner. Leadership, on the other hand, focuses on investing more in people so they are energized and inspired to accomplish goals. Whereas the management relationship is based on position and formal authority, leadership is a relationship based on personal influence and trust. For example, in an authority relationship, both people accept that a manager can tell a subordinate to be at work at 7:30 A.M. or her pay will be docked. Leadership, on the other hand, relies on influence, which is less likely to use coercion. The role of leadership is to attract and energize people, motivating them through purpose and challenge rather than rewards or punishments.39 The differing source of power is one of the key distinctions between management and leadership. Take away a manager’s formal position, and will people choose to follow her? That is the mark of a leader. 1-3d Developing Personal Leadership Qualities NEW LEADER ACTION MEMO As a leader, you can awaken your leadership qualities of enthusiasm, integrity, courage, and moral commitment. You can make emotional connections with followers to increase your leadership effectiveness. Leadership is more than a set of skills; it relies on a number of subtle personal qualities that are hard to see but are very powerful. These include things like enthusiasm, integrity, courage, and humility. First of all, good leadership springs from a genuine caring for the work and a genuine concern for other people. The process of management generally encourages emotional distance, but leadership means being emotionally connected to others. Where there is leadership, people become part of a community and feel that they are contributing to something worthwhile. Whereas management means providing answers and solving problems, leadership requires the courage to admit mistakes and doubts, to listen, and to trust and learn from others. Developing leadership qualities takes work. For leadership to happen, leaders may have to undergo a journey of self-discovery and personal understanding.40 Leadership experts agree that a top characteristic of effective leaders is that they know who they are and what they stand for. In addition, leaders have the courage to act on their beliefs. True leaders tend to have open minds that welcome new ideas rather than closed minds that criticize new ideas. Leaders listen and discern what people want and need more than they talk to give advice and orders. Leaders are willing to be nonconformists, to disagree and say no when it serves the larger good, and to accept nonconformity from others rather than try to squeeze everyone into the same mindset. 1-3e Creating Outcomes The differences between management and leadership create two differing outcomes, as illustrated at the bottom of Exhibit 1.3. Management maintains a degree of stability, predictability, and order through a culture of efficiency. Leadership, on the other hand, creates change, often radical change, within a culture of agility and integrity that helps the organization thrive over the long haul by promoting openness and honesty, positive relationships, and long-term innovation. Leadership facilitates the courage needed to make difficult and unconventional decisions that may sometimes hurt short-term results. LEADER’S SELF-INSIGHT 1.2 Your Leadership Potential Instructions: Questions 1–6 below are about you right now. Questions 7–14 are about how you would like to be if you were the head of a major department at a corporation. Answer Mostly False or Mostly True to indicate whether the item describes you accurately or whether you would strive to perform each activity as a department head. Mostly Mostly False True Now 1. 2. 3. 4. 5. 6. When I have a number of tasks or homework assignments to do, I set priorities and organize the work to meet the deadlines. When I am involved in a serious disagreement, I hang in there and talk it out until it is completely resolved. I would rather sit in front of my computer than spend a lot of time with people. I reach out to include other people in activities or when there are discussions. I know my long-term vision for career, family, and other activities. When solving problems, I prefer analyzing things myself to working through them with a group of people. Head of Major Department ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Mostly Mostly False True 7. I would help subordinates clarify goals and how to reach them. ______ ______ 8. I would give people a sense of longterm mission and higher purpose. ______ ______ 9. I would make sure jobs get out on time. ______ ______ 10. I would scout for new product or service opportunities. 11. I would give credit to people who do their jobs well. 12. I would promote unconventional beliefs and values. 13. I would establish procedures to help the department operate smoothly. 14. I would verbalize the higher values that I and the organization stand for. ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Scoring and Interpretation Count the number of Mostly True answers to even-numbered questions: ____. Count the number of Mostly True answers to odd-numbered questions: ____. Compare the two scores. The even-numbered items represent behaviors and activities typical of leadership. Leaders are personally involved in shaping ideas, values, vision, and change. They often use an intuitive approach to develop fresh ideas and seek new directions for the department or organization. The odd-numbered items are considered more traditional management activities. Managers respond to organizational problems in an impersonal way, make rational decisions, and work for stability and efficiency. If you answered yes to more even-numbered than oddnumbered items, you may have potential leadership qualities. If you answered yes to more odd-numbered items, you may have management qualities. Management qualities are an important foundation for new leaders because the organization first has to operate efficiently. Then leadership qualities can enhance performance. Both sets of qualities can be developed or improved with awareness and experience. Sources: Based on John P. Kotter, Leading Change (Boston, MA: Harvard Business School Press, 1996), p. 26; Joseph C. Rost, Leadership for the Twenty-first Century (Westport, CT: Praeger, 1993), p. 149; and Brian Dumaine, ‘‘The New Non-Manager Managers,’’ Fortune (February 22, 1993), pp. 80–84. 1-4 EVOLVING THEORIES OF LEADERSHIP To understand leadership as it is viewed and practiced today, it is important to recognize that the concept of leadership has changed over time. Leadership typically reflects the larger society, and theories have evolved as norms, attitudes, and understandings in the larger world have changed.41 17 18 PART 1 INTRODUCTION TO LEADERSHIP 1-4a Historical Overview of Major Approaches The various leadership theories can be categorized into six basic approaches, each of which is briefly described in this section. Many of these ideas are still applicable to leadership studies today and are discussed in various chapters of this text. Great Man Theories This is the granddaddy of leadership concepts. The earliest studies of leadership adopted the belief that leaders (who were always thought of as male) were born with certain heroic leadership traits and natural abilities of power and influence. In organizations, social movements, religions, governments, and the military, leadership was conceptualized as a single ‘‘Great Man’’ who put everything together and influenced others to follow along based on the strength of inherited traits, qualities, and abilities. Trait Theories Studies of these larger-than-life leaders spurred research into the various traits that defined a leader. Beginning in the 1920s, researchers looked to see if leaders had particular traits or characteristics, such as intelligence or energy, that distinguished them from nonleaders and contributed to success. It was thought that if traits could be identified, leaders could be predicted, or perhaps even trained. Although research failed to produce a list of traits that would always guarantee leadership success, the interest in leadership characteristics has continued to the present day. Behavior Theories The failure to identify a universal set of leadership traits led researchers in the early 1950s to begin looking at what a leader does rather than who he or she is. One line of research focused on what leaders actually do on the job, such as various management activities, roles, and responsibilities. These studies were soon expanded to try to determine how effective leaders differ in their behavior from ineffective ones. Researchers looked at how a leader behaved toward followers and how this correlated with leadership effectiveness or ineffectiveness. Chapter 2 discusses trait and behavior theories. Contingency Theories Researchers next began to consider the contextual and situational variables that influence what leadership behaviors will be effective. The idea behind contingency theories is that leaders can analyze their situations and tailor their behavior to improve leadership effectiveness. Major situational variables are the characteristics of followers, characteristics of the work environment and follower tasks, and the external environment. Contingency theories, sometimes called situational theories, emphasize that leadership cannot be understood in a vacuum separate from various elements of the group or organizational situation. Chapter 3 covers contingency theories. Influence Theories These theories examine influence processes between leaders and followers. One primary topic of study is charismatic leadership (Chapter 12), which refers to leadership influence based not on position or formal authority but, rather, on the qualities and charismatic personality of the leader. Related areas of study are leadership vision (Chapter 13) and organizational culture (Chapter 14). Leaders influence people to change by providing an inspiring vision of the future and shaping the culture and values needed to attain it. Several chapters of this text relate to the topic of influence because it is essential to understanding leadership. CHAPTER 1 WHAT DOES IT MEAN TO BE A LEADER? 19 Relational Theories Since the late 1970s, many ideas of leadership have focused on the relational aspect, that is, how leaders and followers interact and influence one another. Rather than being seen as something a leader does to a follower, leadership is viewed as a relational process that meaningfully engages all participants and enables each person to contribute to achieving the vision. Interpersonal relationships are seen as the most important facet of leadership effectiveness.42 Two significant relational theories are transformational leadership (Chapter 12) and servant leadership (Chapter 6). Other important relational topics covered in various chapters of the text include the personal qualities that leaders need to build effective relationships, such as emotional intelligence, a leader’s mind, integrity and high moral standards, and personal courage. In addition, leaders build relationships through motivation and empowerment, leadership communication, team leadership, and embracing diversity. 1-4b A Model of Leadership Evolution Exhibit 1.4 provides a framework for examining the evolution of leadership from the early Great Man theories to today’s relational theories. Each cell in the model summarizes an era of leadership thinking that was dominant in its time but may be less appropriate for today’s world.43 Leadership Era 1 This era may be conceptualized as pre-industrial and prebureaucratic. Most organizations were small and were run by a single individual who many times hired workers because they were friends or relatives, not necessarily EXHIBIT 1.4 Leadership Evolution Environment Stable Organization Turbulent Era 2 Rational Management • Behavior theories • Contingency theories Era 3 Team or Lateral Leadership • Influence theories Organization: • Vertical hierarchy, bureaucracy • Functional management Organization: • Horizontal organization • Cross-functional teams Era 1 Great Person Leadership • Great Man theories • Trait theories Era 4 Agile Leadership • Relational theories • Level 5 leadership Organization: • Pre-bureaucratic organization • Administrative principles Organization: • High-performance culture • Shared vision, alignment • Facilitate change and adaptation Scope Individual 20 PART 1 INTRODUCTION TO LEADERSHIP because of their skills or qualifications. The size and simplicity of organizations and the stable nature of the environment made it easy for a single person to understand the big picture, coordinate and control all activities, and keep things on track. This is the era of Great Man leadership and the emphasis on personal traits of leaders. A leader was conceptualized as a single hero who saw the big picture and how everything fit into a whole. Leadership Era 2 In Era 2, we see the emergence of hierarchy and bureaucracy. Although the world remains stable, organizations have begun to grow so large that they require rules and standard procedures to ensure that activities are performed efficiently and effectively. Hierarchies of authority provide a sensible mechanism for supervision and control of workers, and decisions once based on rules of thumb or tradition are repl with precise procedures. This era sees the rise of the ‘‘rational manager’’ who directs and controls others using an impersonal approach. Employees aren’t expected to think for themselves; they are expected to do as they’re told, follow rules and procedures, and accomplish specific tasks. The focus is on details rather than the big picture. The rational manager was well-suited to a stable environment. The behavior and contingency theories worked here because leaders could analyze their situation, develop careful plans, and control what happened. But rational management is no longer sufficient for leadership in today’s world. NEW LEADER ACTION MEMO As a leader, you can use the leadership skills that fit the correct era for your organization. You can use influence and relational aspects as appropriate for your organization. Leadership Era 3 This era represented a tremendous shock to managers in North America and Europe. Suddenly, the world was no longer stable, and the prized techniques of rational management were no longer successful. Beginning with the OPEC oil embargo of 1972 to 1973 and continuing with the severe global competition of the 1980s and early 1990s, many managers saw that environmental conditions had become chaotic. The Japanese began to dominate world commerce with their ideas of team leadership and superb quality. This became an era of great confusion for leaders. They tried team-based approaches, downsizing, reengineering, quality programs, and empowerment as ways to improve performance an…

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