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Executive Summary
effective leadership, a business cannot work efficiently. The organization is built with an
intent of achieving set objective through the human capital. It is important to control and
offer direction to the workforce in order to achieve the set goals. The intent of this paper is to
examine the leadership of Frank Lowy who is the Chairman of Westfield Group and other
organizations. The papers examine his leadership style, traits and suggest better leadership to
and entrepreneurship as well a strong character that many credits to his Jewish background.
highly talented workers who offer superior results. Furthermore, his portrays transactional
leadership styles that can hinder creativity. To improve his leadership, Frank should apply
transformation style that is inspiring, motivation, visionary and mores the organisation and
followers ahead.
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Frank Lowy
businessman who is ranked highly by BRW Rich ratings (Margo, Lowy & Westfield
Holdings 2000). Accordingly to 2010 ratings, he was ranked as the richest man in Australia.
His wealth runs into billions, and by 2011, the business magnate fortune indicated that his
richness was more than $1.75 billion (Mayne & Power, 2013). In 2016, Frank`s assessed net
worth was A$8.26 billion (Bonanno, 2016). Thus, was ranked third in Australia for richness.
Frank was born in 1930 in the Czech Republic, but he has made a business impact across,
Australia, the United Kingdom, New Zealand and the United States based on the phenomenal
shopping centers. In 1959, Lowy opened his first mall in Blacktown which is located in
Sydney with John Saunders, a business partner. Saunders was a Hungarian immigrant who
met with Lowy in 1953 (Bonanno, 2016). Together, they established Westfield Group, and by
the year 1977, the two had expanded their business operations into the United States market.
They were listed on the Stock Exchange of Australian in 2004. Accordingly, the prosperity of
character that many credits to his Jewish background (Margo, Lowy & Westfield Holdings
2000).
that ensure the organizational accomplishes the set goals. Various leadership styles have been
proposed by various pundits. Luna (2015) argues that the leader`s intellectual ability assists in
conceptualizing solutions and acquiring knowledge to a given job. The leaders influence the
success of their organization. As mention above, there are several leadership styles including
charismatic leadership. The authoritarian leaders stress on the division of the followers and
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leaders. The autocratic leaders usually make a decision without seeking information or views
from the members even when their opinions or inputs can be very beneficial (Hughes, 2015).
This leadership is appropriate when decision ought to be made rapidly with no need for
agreement. Nonetheless, the style is known to be demoralizing. The democratic leaders may
make the final decisions, but they involve the people around them in the decision-making
process. Democrats encourage creativity and individuals are highly engaged in the decisions
and work (Voon et al., 2011). The Laissez-faire leaders offer significant freedom to the
followers. The members determine how the work will be done and the deadlines. For the
leaders, they offer resources and support where required. Otherwise, their involvement is
leaders are characterized by high emotional intelligence and integrity. The transformational
leaders motivate individual by building a shared vision of the organization`s future. They
communicate effectively and show empathy and humility with care for others.
Another form of leadership involves bureaucratic leader who follows robust and
rigorous rules to make sure individuals follow procedures (Limsila & Ogunlana, 2008). This
leadership is only effective when managing people working in areas that have safety risks
(like dangerous heights, machinery, and toxic substances). Bureaucracy is useful for
managing a workforce that undertakes routine tasks (Voon et al., 2011). Also, Charismatic
leadership is commonly applied today in many organization. Limsila and Ogunlana (2008)
inspire and motivate the members. Nonetheless, the variation lies in the intent of inspiration
and motivation. The transformational leaders desire to transform the organization and teams
but the charisma focus on their own ambitions. They do not want to change anything at the
end. Finally, we examine transactional leadership which is based on the assumption that
members will obey their leaders after accepting the job (Voon et al., 2011, p.24-32).
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Transaction entails the company paying the employees in return for the time, efforts, work
done and compliance. The leaders can push team members if they believe their work is not
(LMX) Theory. LMX model is based on leaders who focus on two-way relationship between
the followers and the leader (Hughes, 2015). The leaders usually develop an exchange with
their subordinate. The quality of the leader-follower exchange determines the subordinates
access to resources, responsibility, and decision. Frank Lowy seems to select the best
members and makes offers or rewards that they cannot resist. The leader`s action is not
similar to all members. Those who are highly talented and deliver superior results are more
respected and high ranking in the organisation. The relation to the followers is transactional
based and to some extent leader. As a transactional leader, he focuses on the results the
organization will obtain and conforms to the existing organizational as well as measures the
success of the organization (Pieterse et al., 2010, p.616). On the other hand, Lowy
demonstrates transformational leadership through his ability to grow his sons to take over the
leadership of the Westfield Group after he took a back seat as the chairman while they raise to
be the executives of the company. He shares with them the vision and nurtures them to be the
future leaders of the organization. Back to transactional leadership, Frank has had formal
authority and a big position in the organization since it was founded. He was the Executive
believes that things need to be done in a specific way and above other organizations.
supervision, and performance (Emery & Barker, 2007, p.77). Unlike the transformational
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leadership, transactional leaders do not want to change the future of the people they are
governing. They only want the best for the organization and themselves. He applied a model
that pays attention to the followers to establish whether they are deviating from the norms or
The transactional leaders set goals, focus on increasing efficiency and establish
standards that help the workers meet goals. Pieterse et al. (2010) note that Lowy has
articulated the goals of the Westfield Group even if he has left his sons in charge. Thus, he
has articulated what the organization expects from the workforce and how they will be
compensated or rewarded in case their meet their goals. The organization offers feedback
regarding the performance. In the football club where Frank is one of the owners, they focus
on increasing the efficiency and making more money. This is similar to transactional leaders
who establish procedures and routines with a focus on achieving efficiency. They are
concerned with employees following the existing regulations. As a rich entrepreneur, Lowy
does not want employees who will make him lose money. Workers who make him more
money and are highly creative are rewarded handsomely. As such, the organization
Emery and Barker (2007) indicate that transactional leadership in the context of
Maslow`s hierarchy of needs theory of motivation works at the basic levels of satisfaction
whereby the leaders concentrate on the lower level of needs. The leaders employ the
exchange model whereby the rewards are offered for a positive outcome or good works. This
leadership calls for punishment for poor work performance or negative results until they
correct the poor performance. One approach utilized by the transactional leader to
concentrate on the lower level of needs includes stressing particular task performance. The
managing every portion of the project individually. Spinelli (2006) asserts that transactional
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leadership is concerned with the organizational process but not forward thinking. Frank is
accomplish short-term objectives rapidly. The style rewards individuals who are motivated to
achieve set goals and follow instruction. Therefore, it reinforces positive behavior.
repetitive or routine work thus a reproducible workplace (Emery & Barker, 2007). The
organization clearly defines the rewards and penalties for the workforce in case a given
outcome is achieved. This is the case at Westfield Group where workers are offered yearly
bonuses for meeting specific objectives. Nonetheless, transactional leadership is not very
motivating since it considers the low level of needs. The style utilizes perks, bonuses, and
money in rewards the workers while neglecting other important issues of motivation
including work environment and non-monetary rewards (Spinelli, 2006). The leadership
limits creative since clear goals or objectives have been set. Furthermore, they do not reward
personal initiative. Transactional leadership is best suited for multinational organizations such
as Westfield Group where employees speak different languages (Emery & Barker, 2007).
Once the requirements are learned by the employees and the structure is put in place, it is
very easy for the workers to accomplish their responsibility effectively. The transactional
One of the outstanding leadership qualities of Lowy involves being a visionary. Since
he was young, he had a vision of establishing a big company and becoming an outstanding
entrepreneur. In establishing Westfield Group, Frank clearly sets the objectives and provides
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direction to the followers (Hughes, 2015). He sees what can be and works toward it to
achieve his dream. He turns his ideas into reality. Frank is a decisive leader who knows hard
decisions must be made to ensure the organization withstands trying times. He knows that he
cannot impress every person, but he is also aware that decision must be made (Nahavandi,
2016). While he seeks opinions from the workers, he understands that it is important to avoid
sideshows. Confidence runs through the blood of Lowy Frank. Since he was born, he does
not seem to fear people around him. He takes his family and hides them when his father does
not return home. He helps his mother and brother cross the borders and move away from the
war-stricken country where Nazis want to kill every person (Hughes, 2015). His confidence is
further seen in the way he develops his business. Thus, he instills confidence in his followers
that he can beat his competitors and become one of the best companies even in the world.
To some extent, Frank is an inspirational leader who motivates and nurture people
around him. He nurtures his sons on leadership and allows them to grow with role and
responsibility to take up the company`s leadership after he steps down (Germain, 2012).
Frank understands the importance of delegation. Since he is aging, he decided to take a back
keen eye on his businesses. Peter and Steven who are his sons have taken up the role of being
the Chief Executives and Lowy is just a Chairman. He assesses the people who can take up
after him and trains them then gives them the responsibility of being the executive. This
allows Lowy to focus his energy elsewhere while the young and energetic sons take
Frank has a strong passion. This is seen in the way he crosses boundaries to ensure he
finds the best place to do business (Northouse, 2012). He loves what he does and more
especially his business. No matter how much Westfield Group becomes successfully, Lowy
wants to make it even better by seeking for ways of expanding his business. He is never
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satisfied by small success but rather relentlessly pushes to achieve even bigger returns
(Nahavandi, 2016). It also takes patience to be in the position where Lowy has reached. The
path to his success was not easy. He is bold in taking steps against the order. He truly believes
that one day he will be a big person even if other people doubt his capability at first. His
Frank has excessively determined. Frank`s early years saw him undergo a tough life.
As a young man, he moved around often Gonski & Niesche, 2016). When war broke out in
Europe and his father wanted to rescue them, he was killed by the Nazis. Lowy and his
siblings remain in hiding and live in a ghetto where they fight for survival. Frank never gives
up. This becomes part of the reasons why Lowy is determined in live after arriving in
Australia with no possessions and did not understand the English language. He is also loving
and compassionate Gonski & Niesche, 2016). He gives back to the society through
philanthropy. Lowly was appointed as the Companion of the Australian Order in the year
2000 for his excellent services of retail expansion in the Australia and his involvement in
cultural and social programs. In 2002, Frank was named as the Australia`s number one
The majority of the leadership skills depicted by Frank are transactional based. He
expects the followers to be compliant through the use of rewards or punishments. Therefore,
the leader does not intend to change the followers or improve the future. Lowy aims at
eliciting the desired behavior by using through external motivation. The relationships
between the workers at Westfield Group and the management is transactional based. Since
transactional leadership does not intend to transform workers, they tend to be highly resistant.
The style discourages independent thinking and innovativeness of the workforces. This is
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because the independent thoughts or risky actions are avoided or frowned upon by the
leaders. Thus, there is constraint thinking making people be comfortable where they are. I
suggest the use of a different approach or style of leadership that will make Westfield Group
at a better place.
transformational involves the process whereby the leaders and the followers will raise one
another higher in motivation and morality (Bass & Riggio, 2006). It involves a model of clear
goals, encouraging workers, ensuring integrity, providing support and recognition, inspiring
the workers to reach the impracticable, and leaders looking beyond self-interest. Lowy should
be a transformer who creates an inspiring leader for the future of Westfield Group and
motivates the entire organization towards buying into the vision and delivering it. He vision
should not be narrow and based only on making profit. However, Frank should consider the
needs of other people in the organization. It is important to also build strong and trustworthy
relationships with the workforce (Gumusluoglu & Ilsev, 2009). As a leader, Frank should
identify what motivates people and whom to improve performance. Workers should have a
sense of identity but not be utilized as tools for achieving the strategic goals of the
organization (Hughes, 2015). The culture of the organization should stress on the importance
of collective identity but not just make money for the family of Lowy Frank.
Conclusion
the organization to maximize her efficiency and accomplish the set organizational objectives.
It determines the level of motivation of the workforce and their productivity. The growth of
Frank Lowy to be one of the richest entrepreneurs can be attributed to his experience,
leadership styles, traits, and attitude. He seems to know how to ensure that the workers
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achieve the set goals. He commonly utilizes transactional based leadership that rewards
significance of transformational leadership but does not apply the style effectively.
Transactional based leadership limits the workers and can be demotivating. I propose the use
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