Three emerging issues in leadership

1. Strategic Leaderships
Leader ability to understand the complexities of both the organization and its environment and to
lead change in the organization so as to enhance its competitiveness. Manager as a leader, need to
have thorough and complete understanding of the organization (history, culture, strength,
weakness). Also needs to know about the external organization environment (current business,
economic condition etc.)
Example:
Howard Schutz (CEO of Starbucks). He always lookout for the new opportunities and how Starbucks
can effectively exploit those opportunities.
2. Ethical Leadership
People think “leaders are ethical people” but some firms not like that. Nowadays, not only ethics but
leader need to maintain high ethical standards and hold others in their organization in the same
standards. Top leader’s behavior being scrutinized than ever.
3. Virtual Leadership
Leaderships in setting where leader and followers interact electronically by telephone or email rather
than face to face. Leader must work harder at creating and maintaining relationship with their
employees that go beyond words on a computer screen. Handshake and smiles may not possible,
managers can instead make a point of adding a few personal words in an email to convey
appreciation, reinforcement, or constrictive feedback.
Leaderships, Management, and Decision Making
1. The Nature of Decision Making
Decision making is choosing one alternative from among several options.
Decision making process is recognizing and defining the nature of a decision situation, identifying
alternatives, choosing the best alternative, and putting into a practice.
a. Types of decisions
i. Programmed decision
Decision that is relatively structured or recurs with some frequency (or both)
ii. Non-programmed decision
Decision that relatively unstructured and that occurs with low frequency.
b. Decision making condition (based on current condition)
i. State of certainly, when the decision maker knows with reasonable certainly what
the alternatives are and what the condition are associates with each alternative.
 ii. State of risk, when the ability of each alternative and its potential payoffs and costs
are all associated with probability estimates.
iii. State of uncertainly, when the decision maker does not know all the alternative, the
risk associated with each or the likely consequences of each alternative
2. Rational Decision Making

Recocnizing and
defining the Implementing
decision Evaluating the choosen
situation alternative alternative

Identyfying Selecting the Following up and

alternatives best alternative evaluating
results

3. Behavioral Aspect of Decision Making

a. Political Forces in Decision Making
One major element of politics is coalition. Coalition is an informal alliance of individuals of
groups formed to achieve a common goal
b. Intuition
Is an innate believe about something, often without conscious consideration.
c. Escalation of Commitment
Condition in which a decision maker becomes so committed to a course of action that she of
he stays with it even when it appears to have been wrong
d. Risk Propensity
Extent to which decision maker is willing to gamble when making a decision.