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I
CHAPTER / THENATURE
ANDIMPORTANCE
OF LEADERSHIP
of
TT -:n11a5te1ization Jon Runstrom roucheson many leadershiptopics to be
I coveredin this book, including the ideasthat caringr""a"rrr,rrp
l ferencein an organization'sJ,r...rr, can makea dif_
,n", a successfulleaderworks well with
his or her team, and that many
are . our
"r..ar.-ii"aers
introductory chapter begins with. "iribl;;;;proachable
an .*ptu.r"tio, of what leadersirrpis and
we then examinehow leadersmake a aiil..n.., is not.
the variousroles they play,and the
major satisfactionsand frusrrations they
experience.The .h;;;r- arsoincludes an
explanationof how readingthis book ani
doi'ngthe various qtizzesandexercises will
enhanceyour own leadeiship skills.
It .o".roa", with a air*Jo' of ,,follower_
ship"-giving leadersgo'odmaterial
to work wrth.
goal attainment
t r-(:)\\ n trom € Interpersonalinfluence.d.irectedthrough communication toward
with directions
h--eieht si& m Theinfluential increment over and above mechanical compliance
I rrin- states- and orders
tr An act that causesothers to act or respond in a shared direction
I don't care
mTheartofinfluencingpeoplebypersuasionorexampletofollowalineof
emrlor-eesas
's Sols-are's action
in
rs nar-imum {a Theprincipal dynamic force that motivates and coordinates the organization
;ates flerible th. u..o-plishment of its objectives3
quarterback
tLr'arnamen6 w A willingness to take the blame (as defined by legendary football
p;:rs. loe Montana)a
per enr-iron-
e here appear Amajorpointaboutleadershipisthatitisnotfoundonlyamongpeopleinhigh-
and can be prac-
x.i:-irple, t'ou t.u.t poritions. Leadership is neeied at all levels in an organization
to a formal leadership position'
peicentr'and ticed to some extent .u.n by a person not assigned
a person might take the initiative to
| r:'1e has left For example, working a, a i.r.tio' accountant)
more careful about what they classifi, as
suggest ro management thai they need to be
of workers exercising leadership is
p-.iori'n kind a true sale.An extreme example of the importance
involvement in
rer .iid l-ork, Roadway Express, Inc' Aftei implementing a program 9f gllloVee
that if Roadway is to
ild-. lhat flex- productivity improvement, RoaJway management concluded
less than 5 percent in a good
rn:. and that io-p.a. in an industry in which n"i profit margins are
jg,OOO employeesmust be a leader's
y.ur,
' .rr".y one of its
ifr. aUitity to lead others effectively is a rare quality. It becomes even more rare at
of such positions requires
the highest livels in an organization becausethe complexity
in search of new leader-
unr,".*g. of leadership"sldlls.This is one reason that firms
" It is also why companies n-ow
ship seek6ut a select group of brand-name executives.6
.-phn,i,.leadership,traininganddevelopmenttocreateanewsupplyofleaders
r topics to be
throuehout the fi.rm.
n make a dif-
d-. -.rell with
rchrble. Our '#6H8W.
r ind is not.
is a long-term relationship, or
pl:,,. andthe The current understanding of leadership is that it
r Lncludesan betweenleadJrsand groupmembers'^tt"t9t1q,t:l:::ilt::l:;:l"i
partnership,
a wav that
ere rciseswill ;;;;;hf; in. t.rd., and the sioup m.e'nbersare t:,"t:':'9 in such
rf -tbllower- them is approximatelybalanced'Block aiso O:tti!,:: n-T:1ti
,,-,-,-^-,:^^+^r-. 1 - ^ l ^ - - - , { I l l ^ r l r e i s o d e s c r ' i h e s Dartnef-
ih. po*.. L.*..n
parent-takes respon-
ship as the opposite of p"r.ntittg (in which.one person-the
child). Partnership occurs when control
slUitity fo, ttr" welfare tf .n. oihe.-th.
member, in a move away from authoritarianism
shifts from the leader to the group
'ZFour things are necessary for a valid partner-
and toward shared decision iaking
ship to exist:
hr. ::rt. The
every.level is responsible for
hr; others to l. Exchange oJ'pw"pose.Ina partnership, every worker at
people at many levels' the
in : ,'e confi- defining vision and ,rulo.,. Through diaiogue with
1i"--:lalgoals.2 leader helps articulate a widely accepted vision'
a contrary opinion will be
2. A ri.ght ti say ru0.The belief inut peopl. who express
t-. r .tr.
n..-l mluon
| can lose an argument
-. --
F l\'s. flere
porrirh.d runs contrary to a partnership' Rather, a person
but never a voice.
4 CHAPTER
1 /THE NATURE
ANDIMPORTANCE
OFLEADERSHIP
f .. ;rn aCt Of
11 the truth Passionate
Creative Persistent
ri" e tos'ard.
lnnovative Analytical
x,:: rhe idea
Couraqeous Structured
li:ied to an lmaqinative Deliberative
T:is theory FYnorimant2l
L / \ P v ' " t ' v ' r l q i
Authoritative
Za::tlnal,and
rc u eltare of
ol,ecrir-istsin
Trusting Guarded
Warm and radiant Cool and reserved
I :"
I
lnitiator
h-: eets'een
teacner
Actsas coach,consultant, Acts as a boss
i grrod rela-
Doesthe rightthings Doesthingsright
n: rositions
'Anatomyof a Leader:whereArethe Leadersof Tomorrow.?"
Management Review'
r c,rline sur- source:Genevieve capowski,
vli"tl I sga, p. 1-p' VersusLeaders:,Acorporate^r^?b)/:^M:::"9,"mentReview'
2; Davidrugiuno,-;Munugers
u-i be more iiffi;6; i'r6;, s; x"r.iill Eiorc, The"LJhinate 20,02)'
SixSisma(NewYork:AMACOM'
e@w*@'sw@
T::e authors
oi,r*r'.10(Yet
w Management prod,uces order, consistency, and predictability'
be :n a posi-
r -s such an m Leadership produces change and adaptability to new products) new markets,
Y:*]'.lSpOintS ,ta* ao-patitors, new customers)and new work processes'
the
* Leadership, in contrast to management, involves having a vision of what
accomplish it'
organizati-on can become and mobilizing people to
I of
".. * Leadership requires eliciting cooperation and teamwork from a large network
I in that network motivated by using every
people ani L.eping the key people
bn -eadership
manner of Persuasion.
th.;:unctions
-, .. rrnllins m Leadership produces change, often to a dramatic degree, such as by spearhead-
an old product.
! 1: u v4rrb.
[:-. -',rganize, ing the launch of a new piodu.t or opening a new market for
a degree of predictability and order'
M.-"rr"g"1n..,.tis more likely to produce
F: :r,rnager's ru Top-level leaders are likely to transform their organizations) whereas top-level
r!:::ristrative managersjust manage(or maintain) organizations'
the
h,re:ce. Table m A leader creates a vision (lofty goal) to direct the organization. In contrast,
and his o,r
tsge ment. As key function of the manag.r ir io implement the vision. The manager
formulates.[
ii. her team thus choose the means to achieve the end that the leader
lnf,gers must figure and
rse"l. organi- If these views are taken to their extreme, the leader is an inspirational
status quo. But we must be carefirl
[c':is betq/een the manager is a stodgy bureaucrat mired in the
Effective leaders have to be good
not to do"wnplay the importance of management.
6 CHAPTER
1 /THENATUREAND
IMPoRTANCE
oF LEADERSHIP
hen Rose Marie Bravo took over as which she ran for five years until leaving to join
chief executiveof Burberry Group plc London-based Burberry. She sat down with
Tlte
in 1997, the company was a staid Wall Sn"eetJow.nal to talk about how she plans
to
British raincoat maker, far off the radar screensof keep Burberry flourishing without dilutlns the
the fashion world. Today, Burberry,s turnaround brand's exclusiveimage. Excerpts showing Biavo,s
is legendary, and its tartan bedecks everwhins leadership practice and attitudes follow:
from hats to luggage to bikinis, in a riot of colori
from pink to blue to purple. WS|: How do you keep the brand hot and fresh
Most notably, Burberry has been able to sustain season after season when fashion always
its new momentum, consistently posting gains in changesf
an industry nororious for passing trends and fickle Bravo: This is the biggest quesrion facing any
consumers. The company has had five straieht brand, whether it is Coca-Cola or Mercedes
years of annual sales increases, with annual iiol-
Benz. Constant creativity and innovation are
umes of about $1.2 billion (626 pounds sterling). required. You just can never stop. Our new
The Bronx-born Ms. Bravo, 53, began as a cos_ motto at Burberry is we never stop designing.
metics and fragrance buyer at Macy,s before jump_ And creativity doesn,t just come from the
ing to the now defunct upscaleretailer, I. Masnin.
designers.
where she rose ro chairman and CEO. In 1952,
For example, we did an ad campaign .
she was named president of Saks Fifth Avenue- they did flashes of color, literally thrown onto
THEIMPACTOFLEADERSHIP
ON ORGANIZATIONAL
PERFORMANCE
and white picture. It almost looked like have a logo on it, and we didn't have to write
hnt had spilled color onto the photograph. our name across ir. I called Geraldine Stutz,
b looked ar it and said, this should be scarves. the retired head of Henri Bendel (the New
m-E ,lid a q'hole series of scarves that became York specialty retailer famous for its brown
heqsellers. This idea came from our fadvertis- striped bags). I said, ..We need to do a shop_
nmng. aeencv. ping bag, what do you thinkf" She said,
ndeascan come from the salesfloor, the mar_
"Come on, it has to be plaid.',
kdng departmtnt, even from accountants,
trclie\ e ir or not. So keeping that open attitude Bravo offers five lessonsfor rebuilding and sus_
rhrr r-ou can get an idea that can be a business taining a hot brand:
nlra from just about an),rvhere is important. I Lesson I: Don't rest on your laurels-reinvent
It is not just the ownership of one p.rron o. yourself every day and never stop thinking of
rrro people. new ways to wow the customer.
FSf: \\hat do you do specifically to motivate and
r Lesson 2: Maintain riour core customer while
inspire peoplef
pursuing a new one.
Gravo: We like management to visit the stores,
ralk to the salespeople.pe ople at whatever level I Lesson 3: Don't worry about where a new idea
rhev are working have a point of view and have comes from. Execution is the key.
something to say that is worth listening to. We I Lesson 4: Don't rely on a formula.
lust because
m- to set an agenda throughout the company something works for one company doesn,t
n-here everyone's opinion counts, and it's nice mean it will work for another.
to be asked. I Lesson 5: Surround yourself with great people.
WS|: Star designers have become more common It's all about teamwork.
today. But it sounds like you believe in a team
approach. q ,FI I | 9 I I
Bravo: Some people like a lot of confrontation. I
l. In what way does Bravo bring technical exper-
don't. I like people to get along. I like to have
tise to her leadership positionl
everybody contribute. But I don't necessarily
2. In what way does Bravo emphasize listening to
believe in consensus,becausethen you can end
workers in her leadership approachf
up with mediocrity.
SOURCE: Excerpted from Sally Beatty; ,.plotting plaid,s Future:
WSJ: For examplel
Burberry's Rose Marie Bravo Designs Ways io Keep Brand
Bravo: The plaid shopping bag. Everybody and Still Exclusive,,' Tl.teWall Street
9r9yi"g Jowrnal, Siptember
wanted to go neutral-solid beige or black. I 9,20.04, pp. Bl, 88. Copyright 20O4by Dow
Jones& Co., Inc.
Reprinted with permission of Dow lones & Co. Inc. in the format
felt instinctively, it was too subtle. In fact, we
Textbook via Copy.ight ClearanceCenter.
could have the only shopping bag that didn,t
tu@*Mlwtu
twtuF*@
F is not necessary)and
t- Substitute s for Leadership At times competent leadership
factors in the work situa-
lic incompetent leadership can be counterbalanced by certain
consequence to the per-
tion. Under these circumstances) leadership itself is of little
: formanceandsatisfactionofteammembers.Accordingtothisviewpoint,many
ts
are factors in the work
he org*irutlons have substitutes for leadership. such substitutes
perform,-making the leader's
tr- environment that provide guidance and incentives to
substitutes: closely knit
DE role almost sop.rflrrour.tt Figo.. I-1 shows four leadership
norms'
t5 teams, intrinsii satisfaction, computer technology, and professional
nt
clowly lenit tenrwsof highty traiyted.i.nd.ipid.wnls.w4ren members of a cohesive, higily
truini group are foculedott a goal, they may require almost no leadership to accom-
)n air traffic controllers who direct traf-
plish thJir task. Serreralresea.chLrshave studied
E5 jet fighters on a nuclear aircraft carrier'
fic into San Francisco and pilots who land
q leadership is seemingly
With such groups, directive (decisive and task-oriented)
ns groups rely more on each other than
unimportani When danger is tire highest, these
ts.
on a leader.
nd
nd Inn insi,csntisfa.cti,0n.Employees who are engaged in work they find strongly self-moti-
Part of the reason is
is5 vating, or intrinsically ,"drfylng, require a minimum of leadership.
The worker may require lit-
its thut t. task itself grabs the workeris attention and energy.
information technology
ilt tle leadership as long as the task is proceeding smoottrly. Many
computer professionals,
ed fums provide a minimum of leadership and management to
latest computer virus'
il- *ho m"y be totally absorbed in such tasks as combating the
to
monitoring and com-
Cvrllputei' technology.some companies today use computer-aided
of the supervisor's leadership functions' The
puter netlvorking to take over many
data, and directions for certain tasks are
.o-p.ra., provides productivity and quality
detection and goal are incorpo-
entered into the inlbrmation system. E r.r-t "rtot lettinq
of asking a supervisor tor asslstance) some
rated into some interaction systems.Instead
for assistance from other workers' (we could
;r- employees use the computer network to ask
than to lead workers')
rn. *grr. L.r. that the .o-poa.. is being used to control radrer
trP
professi.onnln4rl,tcs.workers who incorporate strong professional norms often require
b- professional a:coY:l-
he u -irri-o- of supervision and leadership. A group of certified
do an honest job of audit-
d tanrs may not neeldvisionary leadership to inspire them to
ine the books of a client or advising against tax fraud'
10 .I
CHAPTER / THENATURE
ANDIMPORTANCE
OFLEADERSHIP
rciership
ft-ecrive-
r s-ith at
t ot 940
milar to
tl uroup
gSested
r leader
rlates of
ership is
Eust be
a larger
90s and
rcent of
cctronic
ni lead-
m have
ntrol of
I stock-
lues are
nilar to
'$-they
[ership.
oreari-
s inside
[n rirat
['s suc-
Brecast
n s'hat
rnce is
rmplex
I man-
n. The
hrne a
hc,dr,rct
12 CHAPTER
1 /THE NATURE
ANDIMPORTANCE
OFLEADERSHIP
9. .""1 ng othermembers
of theteam.
":'"t
lwould 4
:h:rulilif
13. The problems of my teammaresare my problems too.
2 3
14. Resolving conflict is an acdviry I enjoy.
2 34
I5. I would cooperarewith another unit in the organization
even if
di*s'*a*" position
,*.' itsmembers.
T ? n
f
severa
"'n"'1'u'' *.:
,lT::;:I*
n**,
r**,
5
rl-
c
14 CHAPTER
1 /THE NATUREAND
IMPORTANCE
OFLEADERSHIP
oli?41"61r;fr)a#:Bt!w'#t/atts4l;#li/;;tlttF436':t#t&ffn
: *t*":**;*u'u-:tTm:qs-qimifl
.';i
"i:':,','"?
broughtthat companyout of bankrup"VIg
acquiredthe Macy'sand Broadway
both coasrs'The
chains,whichgaveFederared a sfong market'hn" up anddown
..u"o*'::"Ti.:i::ltors for vears'
veteranretailerh-' b'* ';;;;;il;liv""
Particularlyimpressivehasbeenrrll.auiritytotrrrnarolLn;|prestigiousstoresthat
helpedrevive
n"". r"u." on hard *;; i" Federated'
Questrom
:*itit thatsome crit-
"'ilili*T:i'H:.-il:["m raced,on '- I
were
f 1s, I :.
l:: ::o^'s
tired and its piitt' *t" too,high'
Retail ana-
ics thought that its fhi;;'
t'n"ti"""gt ltt"ty *" to redefine what the *,?:1,::;,
lysts Feltthat rhe Ott*ttt
"t
16 CHAPTER
1 /THE NATURE
ANDIMPORTANCE
OFLEADERSHIP
Questrom said the only way to boost morale was to start making money
again. lr.ofit would tal<ecare of the stock price as well. Since ttre mid-lqq0s,
the retailer had lost cusromers to discounr chains such as Target and Wal-
M a r t a n d t o m o d e r a r e - p r i c e dr e r a i l e r s ,i n c l u d i n g K o h l ' s a n a 5 l a N a v y , a s
they had expanded nationwide. Becoming profitable was going to be painful
becauseit would mean change. Questrom said. To offer comperitive prices.to
neededa more competitivecost st-rucrure,
which
*.:"t.::lrili i;ff"t
Penney'sdepartment sroreshad to have rhe right assortmenrof mer-
- J.C-
chandise at competitive prices. The only way to do that was to centralize the
buying decisions.Headquarterswould pick and deliver the merchandise,and
store pers.onnelwortld focus on running the stores. Questrom said that J.C.
Pennevfell behind its competitorswhen it did not centralizesooner.It was no
longei ef'ficientto have I,150 stores each making rhar many decisionsabout
merchandise.It wasslow,expensive,and confusingro the customers.It a-[sopre-
vented tJle company from developinga national message.
Questrom said that some of'the immediacyof having vendors luocldng on
y_ourdoor every day was lost when the company moved to Dallas from New
York in 1988. "We have to be awareof what's happeningin the fashionworld
and bring that to middle Americaar grearvalues."'He.oiride.ed addinf offices
18 1 /THE NATURE
CHAPTER OF LEADERSHIP
ANDIMPORTANCE
The types of satisfactions that you might obtain from being a formal leader depend
on your particular leadership position. Factors such as the amount of money you are
paid and the type of people in your group influence your satisfaction. There are seven
sources ofsatisfaction that leaders often experience.
l. A feeli,ng of power and. prestige. Being a leader automatically grants you some
power. Prestige is forthcoming because many people think highly of people who
are leaders. In some organizations, top-Ievel leaders are addressedas Mr., Mrs., or
Ms., whereas lower-ranking people are referred to by their surnames. Yet many
leaders encourage others to call them by their first name.
2. A cbwnceto belp othersgrow and' d'evehp.A leader works direcdy with people, often
teaching them job skills, serving as a mentor, and listening to personal problems.
Part of a leader's job is to help other people become managers and leaders.
A leader often feels as much of a "people helper" as does a human resource man-
ager or a counselor.
3. High imcowe. Leaders, in general, receive higher Pay than team members, and
executive leaders in major business corporations typically earn several million dol-
lars per year. A handfirl of business executives receive compensation of over $100
million per year. If money is an important motivator or satisfier, being a leader has
a built-in satisfaction. In some situations a team leader earns virtually the same
amount of money as other team members. Occupying a leadership position, how-
ever, is a starting point on the path to high-paying leadership positions.
4. Respectand stwtws.A leader frequendy receives respect from group members. IIe
or she also enjoys a higher status than people who are not occupying a leadership
role. Status accompanies being appointed to a leadership position on or off
the job. \4hen an individual's personal qualifications match the position, his or her
status is even higher.
5 . Good.opportwnitiesfor ndvnncernent. Once you become a leader, your advancement
opportunities increase. Obtaining a leadership position is a vital first step for career
advancement in many organizations. Staff or individual contributor positions help
ANDFRUSTRATIONS
THESATISFACTIONS A LEADER 19
OFBEING
execudvesrise through a
broaden a person's professional experience, but most
managerial Path.
a leader is that you receive
6. Afeetng of "being iru on, things.A side benefit of being
as a manager you are invited to attend
more inside information. For instance)
meetings you are given information not passed
management meetings. In those
such tidbit might be plans for expansion or
ulorrg"to individual clntributors. One
downsizing.
A leader is often in the posi-
7. An opportwnity to control lnuney and. other resharces.
budget and authorize expenses. Even
tion of helping to prepare u i"purt-".tt
personall5 knowing that your judgment
though yo.t .unno, spend this money
some satisfaction. Many leaders in
on financial matters is trusted does provide
annual budgets of several million
both private and public organizations control
dollars.
as a supervisor, admin-
About one out of ten people in the work force is classified
of these people is-a t11e leader' Yet the prob-
istrator, or manager. Xoa .u"ry one
from the leadership portions of their job'
lems these people experience ofa.n ,a.-
role becauseof the frus-
Many individual contributors refuse to accept a leadership
Theie frustrations include the following:
trations they have seen leaders endure.
jobs are usually expected
|, Too rnwch unc\mpensa,ted'owrt,iwe. People in leadership
hours are calle'd casual
to work longer hours than other employees. Such unpaid
spend ab_outfi{ty-
or overtime. ?eople in organizational leadership positions ln5atty
demands' this figure can
five hours pe, w..k *oiking. During peak periods of peak
surge to eightY hours Per week'
zhrnd,ncha.ilt would take severalpages to list all the potential problems
n 2. Tbi rnany
the validity of Murphy's law:
leaders face. Being a leader is a good way to discover
,,If anything .* go *org, it -ili." A leader is subject to a batch of problems involv-
rs. position is a source of
ing people and thrngs- tri*y p.opte find that a leadership
stress,and many managers experience burnout'
3,Noteruowgbnwthor'ityt0ca'rryowtrespons'ibility.Peop|einmanagerialpositions
i*d over which they have
complain"repeatedly ih"t th"yi.. held responsible for things
ldol- with an ill-performing
Iittle control. As a ieader, you might be expected to work
lloo
nas team member' y., yoo tu.t ttt" p"iott to fire him.or h^er'Or you might be expected
authority to become
r too small a staff and no
to produce higir-quality service with
Fame fully staffed.
bot ' general colin Powell says,
4. Loneliness.As Secretary of State and former five-star
,,Command is lonely.'; The higher you rise as a leader, the lonelier you will be
He people in whom you can
in a certain ,e.,.re. i""dership limits the number of
negative feelings about your employer to a
off confide. It is awkward to confide
complain about one group member to
team member. It is equally awkward io
her feel lonely because they miss being
another. Some people in leadership positions
.ent "one of the gang."
facing a leader is the num-
S. Too **ry priblr*, i.nvolvi.ngpeople. hmalor frustration
action. The lower your leadership
help ber of human resource pio'Ut..nt requiring
20 CHAPTER
1 /THE NATUREAND
IMPORTANCE
OFLEADERSHIP
position, the more such problems you face. For example, the office supervisor
spends more time de aling with problem employees than does the chief informa-
tion officer.
6. Too wouchotgnn'izationnlpolitics. People at all levels of an organizatton, from the
office assistantto the chairperson of the board) must be aware of political factors.
Yet you can avoid politics more easily as an indMdual contributor than you can a.s
a leader. As a leader you have to engage in political byplay from three directions:
below, sideways, and upward. Political tactics such as forming alliances and coali-
tions are a necessarypart of a leader's role. Another troublesome aspect of organ-
izational politics is that there are people lurking to take you our of the game,
particularly if you are changing the status quo. These enemies within might attack
you directly in an attempt to shift the issue to your character and style and avoid
discussing the changes you are amempring to implement. or, your superiors might
divert you from your goals by keeping you overwhelmed with the details of
your change effort.23 In addition, backstabbers may agree with you in person but
badmouth you to others.
7 . Tbepurswit of conflictitcggoals. A major challenge leaders face is to navigate among
conflicting goals. The central theme of these dilemmas is attempting to granr orh-
ers the authority to act independently, yet srill getting them aligned or pulling
together for a common purpose.24Many of the topics relating to these conflicting
goals are discussed at later points in the text.
1 A Frameworkfor UnderstandingLeadership
L
Many different theories and explanations of leadership have been developed because
ofthe interest in leadership as a practice and as a researchtopic. Severalattempts have
been made to integrate the large number of leadership theories into one compre-
hensive framework.2s The framework presented here focuses on the maior sets ofvari-
ables that influence leadership effectiveness. The basic assumption underlying the
framework can be expressedin terms of a simple formula with a profound meaning:
L: f ( 1 ,B m , s )
The formula means that the leadership process is a function of the leader, group
members (or followers), and other situational variables.26In other words, leadership
does not exist in the abstract but takes into account factors related to the leader, ttre
person or persons being led, and a variety of forces in the environment. A charismatic
LEADERSHIP 21
FORUNDERSTANDING
A FRAMEWORK
Leadership
for Understanding
FtcuREt-z A Framework
Inc.
Source:ManagingToday!by StephenP Robbins,O 1997.Reprintedby permissionof Prentice-Hall,
UpperSaddleRiver,N.J.
and visionary leader might be just what a troubled organization needs to help it
achieveworld-class success.Yet a group of part-time telemarketers might need a more
direct and focused type of leader to help them when their telephone calls mosdy meet
with abrupt rejection from the people solicited.
The m-odel presented in Figure l-2 extends this situational perspective.2T Ac-
IP"- cording to this model, leadership can best be understood by examining its key vari-
pl tn ables: leader characteristics and traits, leader behavior and style, group member
characteristics, and the internal and external environment. At the right side of the
P.:
Er\'ec framework, leadership effectiveness refers to attaining desirable outcomes such as
productivity, quality, and satisfaction in a given situation. Whether or not the leader
is effective depends on the four sets of variables in the box.
Beginning at the top of the circle, lead.er chnracteristics nnd' traits tefers to the
inner qualities, such as self-confidence and problem-solving ability, that help a leader
[ur. function effectively in many situations. Lead,erbehavior and' stylerefers to the activi-
ihale ties engaged in by the leader, including his or her characteristic approach, that relate
[Pre- to his or her effectiveness.A leader who frequendy coachesgroup members and prac-
f.-i- tices participative leadership, for example, might be effective in many circumstances.
Growp wetmber chnracteristics refers to attributes of the group members that could
I the
Fiog, have a blaring on how effective the leadership attempt will be. Intelligent and well-
I
motivated group members, for example, help the leader do an outstanding job. The
internal aid, exiernal entironwent also influences leadership effectiveness.A leader in
a culturally diverse environment, for example, will need to have multicultural skills to
be effective. All of the topics in this text fit somewhere into this model, and the fit will
; the be more obvious at some places than at others. Table l-2, on the following page' out-
tlc lines how the elements of the leadership model line up with chapters in the text'
22 cHAprER1 /THE NATURE
ANDtMpoRTANcE
oF LEADERSHTp
The arrows connecting the four sets of variables in Figure l-2 suggest a reciprocal
influence among them. Some of these linkages are stronger than others. The most
pronounced linkage is that a leader's characteristics and traits will typically influence
the leader's style. If a given individual is extroverted, warm, and caring, it will be nat-
ural for him or her to adopt a people-oriented leadership style. enoth., li.rkug. is that
the group members' characteristics might influence the leader's style. If the members
are capable and self-sufficient, the leader is likely to choose a leadership style that
grants freedom to the group. rt will be easier for the leader to empowei these peo-
ple. A final linkage is that the internal and external environment can influenci or
mediate the leader's traits to some extent. In an environment in which creativity and
risk taking are fostered, leaders are more likely to give expression to their tendencies
toward creative problem solving and risk taliing.
I SkillDevelopmentin Leadership
t-
Leadership skills are in high demand. Executives seeking candidates for high-level
management jobs list leadership skills as the top attributes they want. After these
come industry-specific experience and functionaly'echnical expertise.2s Leadership
skills are also sought in candidates for entry-level professional positions. Although
students of leadership will find this information encouraging, developing leadership
IN LEADERSHIP
SKILLDEVELOPMENT 23
skills is more complex than developing a structured skill such as sending photos over
thc Internet. Nevertheless, 1rs1 can develop leadership skiils by studying this text,
rvhich follows a general learning model:
Leadership Skill-Building Exercise 1-2 gives you the opportunity to begin develop-
ing your leadership skills systematically
i2.'liii:,ii:,.;:::
IVIYLEADERSHIPPORTF0L|0
THELEADERSHIP
EXPERIENCE
AUDIT
Readersof this book vary consid.erably,
in their leadership, managerial,and super-
visory experience.Yet even readerswho have not yer occupied, r"i-"11."1.,
ship position may hcve had at leasra rasreof, being a leader.Use the following
any possibleteadershipe*peri.nJ., y", ,,-,ighih;;;J;;:
::::,:l': ::,':*
lt position,.such
asvicep-resident.
department
head.
"]|on]ui.liJ',"r..*nip
manager,assistant.lnt"r,.r"rm leader,group leader,or crew chiel.
t totake
care
oraprobrem'
arthough
I was
::'J:1,,f;:tniT:iy#J,lil"o
T.t
l:'l
f-
ff::il:TH;',:':llli,.o.,"n."
L Held ffice in a club at high school, careerschool, or college
n Was editor of a campus newspaper
or section of the newspapersuch as sports
tt
a study group for a course
:rrrn,r.l
L__.1Organized an ongoing activiry to sell merchau"rdise
at people'shomes' such
n, 6,. Auon. Md K";, or Tupperware
.-,:,,.,"1:'
:;i=:: ::::.#i::T,T:H
;;T'"
l: I
lt
"' uvt''tp;Jg
ffi?ff:T?:i::::;,ili',';'"'n
peopre
outoraburning
n
u x"i:: #::i:j *:g demands
onacompany
o*hesovernmen,
f.]l
U Organized a group ofl to help out people in need' such as physically
<Jisabled
senior cirizenfriends
I Other:
Exercisethat
@ O XNOWf,3DGE BANK: contains a LeadershipSkill-Building
*ill giu. you more insight into the nature
multidimensional of effectivegroup mem-
bership.
L Self-rnnnagewent. The key to being a good follower is to think for oneself and to
work well without close supervision. Effective group members see themselves as
being as capable as their leaders.
2. Coirwitrnent.Effecnve followers are committed to something beyond themselves,
be it a cause, product, department, organization, idea, or value. To a committed
group membei, the leader facilitates progress toward achievi,ng a goal.
Z."Co*ptterce nnd.focws. Effective followers build their competence and focus their
efforts for maximum impact. Competence centers on mastering skills that will be
useful to the organization. Irss effective group members rarely take the initiative
to engage in training and development'
4. Courage. Effective follo*... establish themselves as independent, critical thinkers
and fight for what they believe is right. A good follower, for example, might chal-
lenge the company's policy of taking ninety days to make good on accounts
puyuUt., or of iecruiting key people almost exclusively from people with demo-
graphic characteristics similar to those_of top management'
The above list is illustrative, since almost any positive human quality would con-
tribute directly or indirectly to being an effective group member or follower.
Another way of framing the qualities of effective followers is to say that such fol-
lowers display the personal characteristics and qualities of leaders. Although leaders
cannot b. e"p..t.d to change the personalities of group members, they can take
steps to .rr.orr."g" the above qualities. Interventions such as coaching, empower-
-Jrt, ,rrpportive communication, and frequent feedback would support effective
followership.
26 1 /THE NATUREAND
CHAPTER OFLEADERSHIP
IMPORTANCE
lc€
Summary cottege.hmco.com/pic/dubrin5"
#
Leadership is the ability to inspire confidence in and Complexity theory argues that leaders and man-
support among the people who are needed to agers can do litde to alter the course of the complex
achieve organizational goals. Leading is a major part organizational system. The system, rather than the
of a manager'sjob, but a manager also plans, organ- leader, dictates that all companies ultimately die.
izes, and controls. Leadership is said to deal with Examining the roles carried out by leaders con-
change, inspiration, motivation, and influence. In tributes to an understanding of the leadership func-
contrast) management deals more with maintaining tion. Nine such leadership roles are the figurehead,
equilibrium and the status quo. An important cur- spokesperson, negotiator, coach and motivator,
rent development is to regard leadership as a long- team builder, team player, technical problem solver)
term relationship, or partnership, between leaders entrepreneur, and strategic planner. An important
and group members. implication of these roles is that managers at every
Many people attribute organizational perfor- level can exert leadership.
mance to leadership actions. Some research evidence Leadership positions often are satisfiiing because
supports this .widely accepted view. Others argue they offer such things as power) prestige, the oppor-
that certain factors in the work environment, called tunity to help others, high income, and the opportu-
substitutes for leadership, make the leader's role nity to control resources. At other times being a
almost superfluous. Among these factors are closely leader carries with it a number of frustrations, such
knit teams of highly trained workers, intrinsic satis- as insufficient authority, having to deal with human
faction with work, computer technology, and pio- problems, and too much organizational politics. The
fessional norms. Another antileadership argument is leader also has the difficult task of balancing work-
that the leader is irrelevant in most organizational ers' need to be independent with their need to com-
outcomes because the situation is more important mit to a common purpose .
and the leader has unilateral control over only a few The framework for understanding leadership pre-
resources. Moreover, since new leaders are chosen sented here is based on the idea that the leader-
whose values are compatible with those of the firm, ship process is a function of the leader, group
those values actually are more important. members, and other situational variables. According
DISCUSSION ANDACTIVITIES 27
QUESTIONS
ll
I
pl r*-r.lel. leadership can best be understood by
immng. irs key variables: leader characteristics and
ential exercises, obtaining feedback, and practicing
in natural settings.
I gl,.* b.a'ler behavior and style, group member To be an effective leader, one needs good follow-
!nu':: e s-tics, and the internal and external envi- ers wit-h characteristics such as self-management,
iorg:::- Leadership effectiveness is dependent on commitment, competence and focus, and courage.
ph--r"d -.ersof variables. A key role for followers is to collaborate with leaders
b qrr-.+ iership skills can be developed by following a in achieving organizational goals. The postbureau-
lenrI::,:1 learning model that involves acquiring con- cratic organization requires a new kind of alliance
- knos'ledge, reading examples, doing experi- between leaders and the led.
r -e.'i.er
si-1' :lLr -
Key Terms
hr lea,l- P Attribution theory
rg:1'and hip Substitutesfor leadership
ip theory LeadershipefTectiveness
lc€
;f, Il_ O Guidetines
for Actionand SkittDevelopment
+;.i
[d man- 1i,*a amounts of information have been gathered described in this text. Then choose the formulation
compler .urrtr.'utleaders and leadership, and many different that seems best to fit the leadership situation you
*rm the llc;*lership theories have been developed. Many lead- face. For example, if you are leading a team) review
[.he. ::ship research findings and theories are confusing . the information about team leadership. Typically
brs con- i:'J contradictory. Nevertheless, from this thicket of an effective leader needs to combine several lead-
rip tunc- -^:brmation emerge many useful leadership concepts ership approaches to meet the demands of a given
urehead, r:d techniques to guide you toward becoming a situation. For instance, a leader might need to
on|alor, :ore effective leader. combine creative problem solving and emotional
n solr-er, As you work toward leadership effectiveness, support to members to help the team rebound
nPortant irst be familiar with the approaches to leadership from a crisis.
at eYery
7 . Mter reading this chapter, do you believe that a 9. S4rich of the nine leadership roles do r-m
person who is not a "born leader" still has a you are the most suited for at this stage
good chance of becoming an effective leaderf careerfExplain your reasoning.
Explain. 10. In what way might being an effectire
8. Top-level leadersof major businesscorporarions help prepare a person for becoming an
receive some of the highest compensation pack- leaderl
ages in the work force. lVhy are businessleaders
paid so much)
j'Hf,
",1
A fi"#;:o',i11',,,':g;'.lT
#.1 revive Gateway by applying rhe same
approachthar he successfullyusedto rurn
way, Inc. announced that it is.retre.atingfrom PC maker eMachines, Inc., which
the consumer electronics world and returnrng acquired in 2004. There, he slashed
to its original mission of marketing consolidating component suppliers,
ilrson;
t"T8:T;t;r, qualiry and fiJling retail orders on rime.
objective is to fix our core-business,,, time of its acquisirion,eMachinesemplolod
sals W^aV.n5 R. lnouye, who recently assumedtlre I38 workers bur was consistentlv profitabh
role of chief executive."People talk about multi- had $l billion in annual sales.
t11kinS, but in real life you have ro focus on one So far at Gateway. Inouye has closed rhr
rime.' Inouye saysthat new dealswith 188 of its .loss-plaguedGateway CoLrntrr-
$l"S "t,
PC retailers. Best Buy Co., Inc. and CompU.SA and outsourced manufacturing and
Inc.; as well as a greater Focuson fast-growrng service.Gateway will continue to market
should the money-tosin[ related products via the lnternet and
::j:_b"rk .PCs, .attow
company ro earn consisrent profits beginning sales,in addition to managing its neq.dea.b
next
'id;.year. big retailers.
is a huge gamble for Gateway,which The changeswere made with rwo lofn'
.
has relied on consumer electronics-,o prop up mind: (l) eventuallyro unseat Hewlett-
profit^margins at its once rhriving pC bus,ncss. Co. as the leading sel.lerof home pCs, and I
But Gateway'sconsumer electronicssalesnever becomea $10 billion businessilr the next
ov.ercamethe drag fiom irs pC business,which "I don't think it's a big strerc[*
still accounted for 72 percent of its revenue last tL. _y.*
CEO insists.
year. Cateway losr a cumulative $2.4 billion in the Yet Gateway's new direction represens I
years, to biltion plete rurnaround from just four years ago.
li::**
trom a one-yearls. :"1.'^9i".pp:d. $3.4
high of $6.1 billion. Waitt plunged into consumer electroni
Gateway has suffered four failed resffucturings Gateway'sbusinessfell victim
. to price u'arsi
in the past three years,all under the auspicesof by Dell Inc. and Hewletr-packard
former chief executive Ted Waitt, who itepped (HP). Like Dell, Gateway
was founded as a
down as CEO in 20.04. This ri-e nro'und, seller. But by the mid-l990s,
the compam
Inouye, a veteran retailing execudve, hopes to Iaunched its own chain
of showrooms to
LEADERSHIP
CASEPROBLEM
B 29
5=:fi ';l1,l1l';11
saiesro achieveat ieastt irilliou
bing an "over 50 percenr..shareof the U.j.
ietail
iil.1.,.j:Tj.'"
q-::_i----once
:[|;:s
the highestin the industry at 26 oer_
salesas soon as the first quarrer of 2005.
rently holds a 60 percenrshareof rerailsales.
Hp cur_
com_
paredwirh Gateway's30 percentshare.
*_ : of revenuc-to below Dell.s 9.5 percenr.
L-;:-=rilv now employsabout I,800 workers.
down Q U E S T I O N S
r :: i,500 when Inouye rook ovcr. Much
nStr:rian of the
t around
. ". cr headcount comesfrom closingthe
..lnirv stores. lnoul,e explains that
Gateway
I trf,iJiiSTlli ;"lHx.TilJ'""'pving-;
lower ' thatInouve
il::ff1iru;:T:row'th Eoars
G:ieu'av :.:.cn\es will allow the company to be profitable
rnses br= :--'n uirh thin margrnsof abour B percenr.
' jili]f;,r,]::J$
xiltsting
- -\: the
-
Famouslyfrugal. Inouye neverspendsmore
:t tor lunch, buys the cheapestgrs for his
than
cer, and d urirrg Gateway'stransitionI
J:.rff^t':L
ffi,',*10-1;'
1ed onlv _-_r\been known to clip coupons for staples
such as 4. \4ftar leadershipchallengcs
tt'lc and :',rp His fiatherwas a tomato nnd peaj Farmer lace lnouve as he
in to impleme'rhis turnaroun<l
iuba Ciry California. An uncanny abiliry
to .*o".,
oF
rhe last ier hnancial details from opcradrg reports
ilffJ
earned
1- SIOTeS
uslomer
rnouye the luckname ,,Wayne Man,',
nLrmancalculatorin the film Rain Man.
after the
i',",,tfi :flil,sl
H#i##rpp#tiir,:"t?i,t
iil j{i##:il.t.s
f ;ix-*
PCs and His talentsand quirks not withsrandinq.
kphone
als s-ith
husrnessanalystschara*erize the CEO'silrrl
ttusplaceHP as quixotic (far_tetched,1.
some
,o $"ifr T",:t
;:l:."'J
rnc. rn rhe formarTerrbookvia CopyrighrCiearance
The shift ::il:i"t
eoals fui
Pickard
d 2;to
three to
:h..' the
ia com-
r- u'hen
nics as
i ignited
Dmpany sJf,xi;J:;"5.:l
TttJ:,,
#i::'j'
:;
her Girl Scourrroop at age.l l,
drive lor homelesspeople jn her hometown
t h r e e c o n s e c u t i v es u m l n e r s .S o L e e b e l i e v e d
p . . r ; a . n i o f t h c . s ee x p e r i e n c e si n, a d d i d o n
to her formal edu_
for
that
a Crect t h e , A s i a n S t u d e n r A s s o c i a r i o nil n
.
l r i g h s c h o o l . catron, were preparing
ur.. had a n d t h e c a p t a i no f h e r . s o c c e tr e a m i n i o t h her to be a corporate
h i g h leader. Ar college Lee majored in
denon- school and college. She also orgrnizecl iuformation
, fooa s y s t e m s a n d b u s i n e s s a d m i n i s t r a t i o n '
(continucrrt
30 cHAprER1 / THENATURE
ANDtMpoRTANcE
oF LEADERSHTp
's
L e e f i r s t p o s i t i o n i r r i r r d t r s t r rr ra s a h u s i n c s s her nov employer. At the outsetl she reminde:
r n a l v s t n t I m c d i u n r - s i z ec o n s u l t i r r gf i r r n t l r a t h e r n c u l n a n a g e rl r r d l e r n r l c a d c r l h a t s l r c
1.1...
h e l p c dc l i e r r r si n r p l e r n e n [t a r g c - s c . r s. llcs t c m ss r r c h t b r r e . i t h c m a r r r g e r i a lr o u t c t o r - c r r r a i r r i ni g n:
r s e u r c l p r i s cs o f i r r a r e .S h e e x p l a i n e dt o l r c l t e r r r r t c c h n i c , p r lo s i r i o r rA. J i o ' s i r r n o n r h so f h a r d n o r * .
l e a d e rr t t h e o r r l s e tt h . r t s h c n . r n t c d t o b e p l l c c d Lec looked fornald ro her firsr ficrmal per-lb:-
oD a rnJllirgelncnttt'rrcl(rJtlter Lllxlt rr tcchrrical n r J l r c ec v i r l u . l r i o r rH. c l t e l m l e a d e ri-n l b r - m e dl r c :
t r a c kb e c r u s es h ee s p i l c dt o h c c o m i n ga c o r p o r a f c t l r a r l r c r p e r f b l m a n c cr r . r sl r c f t e rt h a u a r c r a g c .h u :
exccutivc. Lee's term leirder explained, .,Jen, I s h o r t o [ o u t s t e r r d i n g L. e e a s l < e ldo r r n e r p l . r n a t i o : -
Itnon lorr lrc in a hurrl'to geralrcadL . o r so f c a p a of rrhv her perfonnarlce \vas not considered out-
ble peoplelre looltirrgro r-[irnbtlre ladder..Brrrtou s t r n d i n g .S h ei u l b r r n e dl r c r r e a ml e r d c ra r r dr n a n -
f i r s t h n c t o b u i l d v o u r c x l . e ebr 1 p r o r i n g t h a t v o u a g e r , " l r r e c d r n o u t s t r l t d i l l g r a t i n g t o h c l p m .
arcan outstandirrg an.rlvst." l c h i c r c n r l g o a l o l ' b c c o r n i r r g, r l c . r d e r i r r o L r :
L c e r h o u g h t . " l r l o o l < sl i l < er h e c o l n p . r n \ n . )x)' a'nmnan\/
r r e e da l i t t l c c o n l i n c i r r gr h l t I ' m l e . r d e r s h im p ate- The manager replied, "Our performancc eval-
r i a l , s o I ' n r g o i r r g r o d i g i r r a u d p c r f . o r ml i l < ea uations are based orr yepl contribution to the
s t a r . "A r t l L c c d i d d i g i n . m t r c h r o r h c p l e a s t r r o e l ' companv. We care much lcss about r.vriting per-
l r c r c l i c n t s ,h e r t c l m l c r d c r , . r n d l r e r c o r r o r l < c r - s .fbrmance evaluations to help a senior business
H e r f i r s t l b r r p c r f o r r r r a r r clep p r a i s l l s n . c r e o u t - r r u a l y ' s tr e r i c l r h e r c r r e c r g o r l s . B e s i d e s ,
Jcrr.
s t a r r d i n gv, e r t h e c ( ) r n p a n )n a s s t i l l n o t r . c r r d tvo V o r . r ' \ cn r t d c
1 ' O r rpI o i n t e r r o r r g hl b t l u t r r a n t i n s
p r u m o t c J c nt o e t e l m l c r d e r p o s i t i o r r L . e e ' st c a r n t o b e a l e r . l c r i r r o u r f i r ' m .L c t v o u r p e r l o r m a r r c c
l e a d c r e r p l a i n c d , " B o b l t h e r c r r n l c a d c r ' sn r a r r - s p e r l <f b r i r s e l t . "
a g e r l a r r d I b o r h a g r e er h a t 1 ' o r ra r e c l c , i n ga n o u r - Thrt cveuing.fcrr rnet rr ith her fiancc.Kenrrerlr.
s t a n d i r r gj o b , b u t p r o m ( ) t i o n \; r r eh a r d t o c o r n cb v to discusshcr dilemnr.r.. "The problem, I(err.is rhar
i r r o r r r c o n r p c n v t h c s e d a v s . T h c c o r n p . r r r yi s t h c v d o n ' t g c t i r . I ' n t l c . r d c r s h im p a r e r i a la. n d t h e r
s h r i n l < i n gl n o r e t h x n c x p r r r d i n g ,s o t r l l < sr b o u t . l o n ' t s c ei t r c t . I ' m p e r f b r m i n gr v e l lr n d l c t r i n gm r
p r o n l o t i o na r e a l i t r l cf u r i l el i g h r r r o r r . " irrtenriorrs bc i<norrrr, but mr strafcg)'isn't rr.or.l<ing.
L e c d e c i d c dr h a t i r r , r o r r Jrda l < e I k r n g r i n r el o b e Tlrc companl is rnissirrgour on .r golderropi)orru-
p r o r n o t e dt ( ) t r t m l c l d c r o r m a n a g c ri .n h c r p r c s - rrirv bv ltot
Putlilg me or1r hst lca.icrsljprracl<.I
c n t c o m p e l l \ , s o s l r e h e g r n r o r l u i c t l y l o o l <l b r . r h a l e t o c o r r ri r r c cr h e m o f t h e i r e n . o ri n j u d g m e r r t , "
n e r ' rp o s i t i o ni r r l r c r t i c l d . H e r j o h h t r n t p r o c e e c l e d K c n n e t h .l h u r r r . r rrre s ( ) r r r cscp e c i . r l i s rt e
, plietl,
m o l c s r ri f i l v t h r r r s h e a r r r i c i p ; r t e dT. h r o r r g h a " l ' m l i s t e r r i n gt o v o u . a n d I u a n t t o g i v e
1'orr
s p o r t sc l t r b c o n t a c t .L e e n a s g r . a r r t e ld l o h i n t e r - g o o d a d ri c e . L c r m e b c o b j c c t i v el r e r ed c s p i r er h e
r i e r r w i t h a p a r r n e r i n I l a r g e r c , r n s r r l t i n gf i n n I . r c tt h l t I l o v e v o u . W l r i r rh a v cy o u d o r r c l a r e l l t o
offcring simillr serliccs.AJicr r scr.ies of ficrrrinter- p l o v c t o r i r e c o m p l r r \ t h r t v o u a r e l e a d e r s h i p
r i e n s , L e e u a s l r i r e d a s e s c n i o r b u s i n e s sa n a l v s t n r at c l ir l i "
p c r f i c r m i n gr v o r l t o n a s ) ' s t e l ns i r n i l e rt o t h c o r . l c
s h e l r a d l - c c r ru o r k i l r g r v i r h l ' o r n r o v e a r s .D u r i n g Q U E S T I O N S
h c r i r r t c l v i e r v sL, e c e m p h . r s i z c h d e r g o d o f o c c r r - l . W h o h r s t h e p r o b l c n rh e r c :f e n o r . r h cc o u s u l r -
p f i n g a l e a d e r s l r ippo s i r i o rar ss o o n l s L h cc o r r r p r n l ' irrgfirrnirr tlucsrion)
h e l i c r e dr h l t s h c r v r r sr e a d r 'f i r r s r r c ha r o l c . H e r 2 . W h a t l d r i c c c r n l o u o f l e r
Jcn to help hcr
f i r s t c l i e n t . r s s i g r r m e u r , , thaes l l . i r r gr t e a l n o l ' c o n - i r r c r c a s ch e r c h a r r e c so f o c c t r p y i n ga f o r . m a l
s u l t u r t si r r s t r i la s f r t e i n c o m c r a x c r l l c e n f c r ' . l c r d e r s h i pp o s i t i o ni r r t h e c o m p r n rI
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