Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
g g
The Leadership Experience SEVENTH EDITION
RICHARD L. DAFT Owen Graduate School of Management Vanderbilt University
With the assistance of Patricia G. Lane
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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
Marketing Manager: Emily Horowitz
Marketing Coordinator: Casey Binder
Art and Cover Direction, Production Management, and Composition: Cenveo Publisher Services
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
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
Library of Congress Control Number: 2016940679
ISBN-13: 978-1-337-10227-8
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
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
To the spiritual leaders who shaped my growth and development as a leader and as a human being.
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 97 4. The Leader as an Individual 98 5. Leadership Mind and Emotion 134 6. Courage and Moral Leadership 166 7. Followership 196
PART 4: THE LEADER AS A RELATIONSHIP BUILDER 225 8. Motivation and Empowerment 226 9. Leadership Communication 260 10. Leading Teams 292 11. Developing Leadership Diversity 326 12. Leadership Power and Influence 360
PART 5: THE LEADER AS SOCIAL ARCHITECT 393 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 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
CONTENTS
PART 1: INTRODUCTION TO LEADERSHIP 1 Chapter 1: What Does It Mean to Be a Leader? 2 1.1 Why We Need Leadership 4
1.1a Defining Leadership 5 1.1b Everyday Leadership 6
Leader’s Bookshelf 7
1.2 The New Reality for Leaders 8 1.2a From Stabilizer to Change Manager 9 1.2b From Controller to Facilitator 9 1.2c From Competitor to Collaborator 10
Leader’s Self-Insight 1.1 11 1.2d From Diversity Avoider to Diversity Promoter 11
Consider This! 12 1.2e From Hero to Humble 12
In the Lead 13
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 16 1.3e Creating Outcomes 16
Leader’s Self-Insight 1.2 17
1.4 Evolving Theories of Leadership 17 1.4a Historical Overview of Major Approaches 18 1.4b A Model of Leadership Evolution 19
1.5 Leadership Can Be Learned 21 1.5a Leader Fatal Flaws 21
Leader’s Self-Insight 1.3 22 1.5b Leader Good Behaviors 23
In the Lead 23
1.6 Mastering the Art and Science of Leadership 24
1.7 Organization of This Book 24
Leadership Essentials 26
Discussion Questions 27
Leadership at Work 27
Leadership Right–Wrong 27
Leadership Development: Cases for analysis 29
Sales Engineering Division 29
The Marshall Plan 29
References 30
PART 2: RESEARCH PERSPECTIVES ON LEADERSHIP 33 Chapter 2: Traits, Behaviors, and Relationships 34 2.1 The Trait Approach 36
2.1a Optimism and Self-Confidence 37
Leader’s Bookshelf 38 2.1b Honesty and Integrity 38
Leader’s Self-Insight 2.1 40
2.1c Drive 40
In the Lead 40
2.2 Know Your Strengths 41 2.2a What Are Strengths? 41 2.2b Matching Strengths with Roles 42
2.3 Behavior Approaches 43
v Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
2.3a Autocratic versus Democratic Behaviors 43
Consider This! 44
In the Lead 45 2.3b Ohio State Studies 46
Leader’s Self-Insight 2.2 47
In the Lead 47 2.3c University of Michigan Studies 48 2.3d The Leadership Grid 49
In the Lead 50 2.3e Theories of a ‘‘High-High’’ Leader 50
2.4 Individualized Leadership 52 2.4a Vertical Dyad Linkage Model 53 2.4b Leader–Member Exchange 54 2.4c Partnership Building 54
Leader’s Self-Insight 2.3 55
2.5 Entrepreneurial Traits and Behaviors 55
Leadership Essentials 56
Discussion Questions 57
Leadership at Work 58
Your Ideal Leader Traits 58
Leadership Development: Cases for Analysis 58
Consolidated Products 58
Transition to Leadership 60
References 61
Chapter 3: Contingency Approaches to Leadership 64 3.1 The Contingency Approach 66
Leader’s Bookshelf 67
Leader’s Self-Insight 3.1 69
3.2 Hersey and Blanchard’s Situational Theory 69 3.2a Leader Style 70
3.2b Follower Readiness 71
In the Lead 72
Leader’s Self-Insight 3.2 73
3.3 Fiedler’s Contingency Model 73 3.3a Leadership Style 73 3.3b Situation 74 3.3c Contingency Theory 75
In the Lead 75
3.4 Path–Goal Theory 77 3.4a Leader Behavior 77
In the Lead 79 3.4b Situational Contingencies 79
Consider This! 80 3.4c Use of Rewards 80
3.5 The Vroom–Jago Contingency Model 81 3.5a Leader Participation Styles 82 3.5b Diagnostic Questions 83 3.5c Selecting a Decision Style 83
In the Lead 87
3.6 Substitutes for Leadership 88
In the Lead 89
Leader’s Self-Insight 3.3 90
Leadership Essentials 91
Discussion Questions 92
Leadership at Work 92
Task versus Relationship Role Play 92
Leadership Development: Cases for Analysis 93
Alvis Corporation 93
An Impossible Dream? 94
References 95
PART 3: THE PERSONAL SIDE OF LEADERSHIP 97 Chapter 4: The Leader as an Individual 98 4.1 The Secret Ingredient for Leadership Success 100
4.1a The Importance of Self-Awareness 100 4.1b Leader Blind Spots 101
4.2 Personality and Leadership 102
In the Lead 102 4.2a A Model of Personality 102
Leader’s Self-Insight 4.1 103
Leader’s Bookshelf 106
4.2b Personality Traits and Leader Behavior 106
In the Lead 107
Leader’s Self-Insight 4.2 108
4.3 Values and Attitudes 109 4.3a Instrumental and End Values 109
Leader’s Self-Insight 4.3 110
In the Lead 111 4.3b How Attitudes Affect Leadership 112
vi CONTENTS
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Consider This! 112
4.4 Social Perception and Attributions 114 4.4a Perceptual Distortions 114 4.4b Attributions 115
In the Lead 116
4.5 Cognitive Differences 116 4.5a Patterns of Thinking and Brain Dominance 117
Leader’s Self-Insight 4.4 118
In the Lead 119 4.5b Problem-Solving Styles: Jungian Types 120
4.6 Working with Different Personality Types 122
Leader’s Self-Insight 4.5 123
Leadership Essentials 126
Discussion Questions 127
Leadership at Work 127
Past and Future 127
Leadership Development: Cases for Analysis 128
A Nice Manager 128
Environmental Designs International 130
References 131
Chapter 5: Leadership Mind and Emotion 134 5.1 Leading with Head and Heart 136
5.2 Mental Models 136 5.2a Assumptions 138 5.2b Changing or Expanding Mental Models 138
In the Lead 139
5.3 Developing a Leader’s Mind 140 5.3a Independent Thinking 140
Leader’s Bookshelf 141 5.3b Open-Mindedness 142
Leader’s Self-Insight 5.1 143 5.3c Systems Thinking 144 5.3d Personal Mastery 145
5.4 Emotional Intelligence 146 5.4a What Are Emotions? 146 5.4b Why Are Emotions Important? 147 5.4c The Components of Emotional Intelligence 149
In the Lead 152
Leader’s Self-Insight 5.2 153
5.5 Leading with Love versus Leading with Fear 153
Leader’s Self-Insight 5.3 154 5.5a Fear in Organizations 155
In the Lead 155 5.5b Bringing Love to Work 156
Consider This! 157 5.5c Why Followers Respond to Love 158
Leadership Essentials 158
Discussion Questions 159
Leadership at Work 160
Mentors 160
Leadership Development: Cases for Analysis 160
The New Boss 160
The USS Florida 162
References 163
Chapter 6: Courage and Moral Leadership 166 6.1 Moral Leadership Today 168
6.1a The Ethical Climate in Business 168
Leader’s Bookshelf 169 6.1b Leaders Set the Ethical Tone 169
In the Lead 170
Leader’s Self-Insight 6.1 172
6.2 Acting Like a Moral Leader 173
6.3 Becoming a Moral Leader 174
6.4 Servant Leadership 176 6.4a Authoritarian Management 176 6.4b Participative Management 177 6.4c Stewardship 177 6.4d The Servant Leader 178
In the Lead 179
Leader’s Self-Insight 6.2 180
6.5 Leading with Courage 180 6.5a What Is Courage? 181
Consider This! 181
In the Lead 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
CONTENTS vii
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Discussion Questions 188
Leadership at Work 189
Scary Person 189
Leadership Development: Cases for Analysis 189
‘‘What Should I Say?’’ 189
The Boy, the Girl, the Ferryboat Captain, and the Hermits 191
References 192
Chapter 7: Followership 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 199
7.2 What Your Leader Wants from You 200
7.3 Styles of Followership 201
Leader’s Self-Insight 7.1 203
In the Lead 204
Consider This! 205
7.4 Strategies for Managing Up 205 7.4a Understand the Leader 205 7.4b Tactics for Managing Up 206
Leader’s Self-Insight 7.2 207
Leader’s Bookshelf 209
In the Lead 209
7.5 The Power and Courage to Manage Up 210 7.5a Sources of Power for Managing Up 210 7.5b Necessary Courage to Manage Up 211
In the Lead 213
7.6 What Followers Want from Leaders 213 7.6a Clarity of Direction 214 7.6b Opportunities for Growth 214 7.6c Frequent, Specific, and Immediate
Feedback 216
Leader’s Self-Insight 7.3 217 7.6d Protection from Organizational
Intrusions 217
Leadership Essentials 218
Discussion Questions 218
Leadership at Work 219
Follower Role Play 219
Leadership Development: Cases for Analysis 220
Waiting for Clearance 220
Jake’s Pet Land 221
References 222
PART 4: THE LEADER AS A RELATIONSHIP BUILDER 225 Chapter 8: Motivation and Empowerment 226 8.1 Leadership and Motivation 228
8.1a Intrinsic and Extrinsic Rewards 229 8.1b Positive and Negative Motives 230
Leader’s Bookshelf 232
8.2 Needs-Based Theories of Motivation 232 8.2a Hierarchy of Needs Theory 233 8.2b Two-Factor Theory 234
In the Lead 235 8.2c Acquired Needs Theory 236
Leader’s Self-Insight 8.1 237
8.3 Other Motivation Theories 237
Consider This! 238 8.3a Reinforcement Perspective on Motivation 238 8.3b Expectancy Theory 240 8.3c Equity Theory 241
Leader’s Self-Insight 8.2 242
8.4 Empowering People to Meet Higher Needs 243
8.4a The Psychological Model of Empowerment 244
8.4b Job Design for Empowerment 244 8.4c Empowerment Applications 246
In the Lead 246
Leader’s Self-Insight 8.3 248
8.5 Giving Meaning to Work through Engagement 248
In the Lead 249
8.6 New Ideas for Motivation 250 8.6a The Making Progress Principle 250 8.6b Building a Thriving Workforce 250
Leadership Essentials 251
Discussion Questions 252
Leadership at Work 252
Should, Need, Like, Love 252
Leadership Development: Cases for Analysis 254
Commissions for Charlotte 254
viii CONTENTS
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Sun Spots 255
References 256
Chapter 9: Leadership Communication 260 9.1 How Leaders Communicate 262
9.1a Management Communication 263
Leader’s Self-Insight 9.1 264 9.1b The Leader as Communication
Champion 264
Consider This! 265
9.2 Leading Strategic Conversations 266
In the Lead 266 9.2a Creating an Open Communication
Climate 267 9.2b Asking Questions 267 9.2c Listening 268
Leader’s Self-Insight 9.2 270 9.2d Dialogue 270 9.2e Communicating with Candor 272
Leader’s Self-Insight 9.3 273
In the Lead 273 9.2f The Power of Stories 274
Leader’s Bookshelf 275
9.3 Communicating to Persuade and Influence 275
9.4 Selecting the Correct Communication Channel 276 9.4a The Continuum of Channel Richness 277
In the Lead 278 9.4b Effectively Using Electronic Communication
Channels 279
9.5 Nonverbal Communication 281
9.6 Current Communication Challenges 281 9.6a Leadership via Social Media 281 9.6b Being Crisis-Ready 282
In the Lead 283
Leadership Essentials 283
Discussion Questions 284
Leadership at Work 285
Listen Like a Professional 285
Leadership Development: Cases for Analysis 286
The Superintendent’s Directive 286
Hunter-Worth 287
References 288
Chapter 10: Leading Teams 292 10.1 The Value of Teams 294
10.1a What Is a Team? 294
Consider This! 295 10.1b Types of Teams 295
In the Lead 297
10.2 The Dilemma for Team Members 298
Leader’s Self-Insight 10.1 299
10.3 Leading a Team to High Performance 300
Leader’s Bookshelf 301
10.4 Team Processes 301 10.4a How Teams Develop 302 10.4b Team Cohesiveness 303
In the Lead 304 10.4c Team Norms 305
10.5 What Team Members Must Contribute 306 10.5a Essential Team Competencies 306
Leader’s Self-Insight 10.2 307 10.5b Team Member Roles 307
10.6 Leading a Virtual Team 308
In the Lead 309 10.6a Uses of Virtual Teams 309 10.6b Challenges of Virtual Teams 310
10.7 Handling Team Conflict 311 10.7a Types of Conflict 312 10.7b Balancing Conflict and Cooperation 312 10.7c Causes of Conflict 313 10.7d Styles to Handle Conflict 313
Leader’s Self-Insight 10.3 315 10.7e Negotiation 316
Leadership Essentials 317
Discussion Questions 317
Leadership at Work 318
Team Feedback 318
Leadership Development: Cases for Analysis 319
Decision Time 319
Devereaux-Dering Group 320
References 322
Chapter 11: Developing Leadership Diversity 326 11.1 Leading People Who Aren’t Like You 328
Leader’s Self-Insight 11.1 329
CONTENTS ix
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
11.2 Diversity Today 329 11.2a Definition of Diversity 329 11.2b Changing Attitudes toward Diversity 330
In the Lead 331 11.2c The Value of Organizational Diversity 331
11.3 Challenges Minorities Face 332 11.3a Prejudice, Stereotypes, and
Discrimination 332
Leader’s Self-Insight 11.2 333 11.3b The Glass Ceiling 334
Leader’s Bookshelf 336
In the Lead 337
11.4 Ways Women Lead 337
Consider This! 338 11.4a Women as Leaders 339 11.4b Is Leader Style Gender-Driven? 340
In the Lead 340
11.5 Global Diversity 341 11.5a The Sociocultural Environment 341
Leader’s Self-Insight 11.3 342 11.5b Social Value Systems 343 11.5c Developing Cultural Intelligence 344 11.5d Leadership Implications 345
11.6 Becoming an Inclusive Leader 346
In the Lead 347
11.7 Ways to Encourage the Advancement of Women and Minorities 349 11.7a Employee Affinity Groups 349 11.7b Minority Sponsorship 350
Leadership Essentials 351
Discussion Questions 352
Leadership at Work 352
Personal Diversity 352
Leadership Development: Cases for Analysis 353
True to Myself 353
The Trouble with Bangles 355
References 356
Chapter 12: Leadership Power and Influence 360 12.1 Four Kinds of Influential Leadership 362
12.1a Transformational Leadership 362 12.1b Charismatic Leadership 363
Leader’s Self-Insight 12.1 364 12.1c Coalitional Leadership 365
In the Lead 366 12.1d Machiavellian-Style Leadership 368
Leader’s Bookshelf 369
Leader’s Self-Insight 12.2 370
In the Lead 371
12.2 Using Hard versus Soft Power 371 12.2a Specific Types of Power 372
In the Lead 374 12.2b Follower Responses to the Use of
Power 375
Consider This! 376
12.3 Increasing Power through Political Activity 376 12.3a Leader Frames of Reference 377 12.3b Political Tactics for Asserting Leader
Influence 378
Leader’s Self-Insight 12.3 379
In the Lead 382
12.4 Don’t Take Power Personally 382
Leadership Essentials 384
Discussion Questions 385
Leadership at Work 386
Circle of Influence 386
Leadership Development: Cases for Analysis 387
The Suarez Effect 387
Waite Pharmaceuticals 388
References 390
PART 5: THE LEADER AS SOCIAL ARCHITECT 393 Chapter 13: Creating Vision and Strategic Direction 394 13.1 The Leader’s Job: Looking Forward 396
13.1a Stimulating Vision and Action 396
Consider This! 397 13.1b Strategic Leadership 398
In the Lead 399
x CONTENTS
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
13.2 Leadership Vision 400
Leader’s Self-Insight 13.1 402 13.2a What Vision Does 402
Leader’s Self-Insight 13.2 404 13.2b Common Themes of Vision 404
In the Lead 406 13.2c Leader Steps to Creating a Vision 406
13.3 Mission 407 13.3a What Mission Does 407
Leader’s Bookshelf 408 13.3b A Framework for Noble Purpose 410
In the Lead 412
13.4 The Leader as Strategist-in-Chief 413 13.4a How to Achieve the Vision 413 13.4b How to Execute 415
In the Lead 415
Leader’s Self-Insight 13.3 416
Leadership Essentials 419
Discussion Questions 420
Leadership at Work 420
Future Thinking 420
Leadership Development: Cases for Analysis 422
The New Museum 422
The Visionary Leader 423
References 425
Chapter 14: Shaping Culture and Values 428 14.1 Organizational Culture 430
14.1a What Is Culture? 430
Leader’s Bookshelf 431 14.1b Importance of Culture 432
In the Lead 433
Consider This! 434
14.2 Culture Strength, Responsiveness, and Performance 435 14.2a Responsive Cultures 435
Leader’s Self-Insight 14.1 436 14.2b The High-Performance Culture 437
In the Lead 439
14.3 Cultural Leadership 440 14.3a Ceremonies 441 14.3b Stories 441 14.3c Symbols 441
14.3d Specialized Language 442 14.3e Selection and Socialization 442 14.3f Daily Actions 443
14.4 The Competing Values Approach to Shaping Culture 443
Leader’s Self-Insight 14.2 445 14.4a Adaptability Culture 446
In the Lead 446 14.4b Achievement Culture 446 14.4c Involvement Culture 447 14.4d Consistency Culture 447
14.5 Ethical Values in Organizations 448
In the Lead 448
14.6 Values-Based Leadership 449 14.6a Personal Values 449
In the Lead 449 14.6b Spiritual Values 450
Leader’s Self-Insight 14.3 451
Leadership Essentials 453
Discussion Questions 454
Leadership at Work 454
Walk the Talk 454
Leadership Development: Cases for Analysis 456
Culture Clash 456
5 Star and Amtech 457
References 458
Chapter 15: Leading Change 462 15.1 Leadership Means Leading Change 464
15.1a Resistance Is Real 464 15.1b The Leader as Change Agent 465
Leader’s Self-Insight 15.1 466
In the Lead 466
15.2 A Framework for Change 467
15.3 Using Appreciative Inquiry 469 15.3a Applying Appreciative Inquiry on a Large
Scale 469
Leader’s Self-Insight 15.2 470
In the Lead 472 15.3b Applying Appreciative Inquiry Every Day 472
Leader’s Bookshelf 473
15.4 Leading Creativity for Change 473
CONTENTS xi
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
15.4a Instilling Creative Values 474 15.4b Leading Creative People 475
Leader’s Self-Insight 15.3 477
15.5 Implementing Change 481
Consider This! 481 15.5a Helping People Change 482 15.5b The Keys That Help People Change 483
In the Lead 484
Leadership Essentials 486
Discussion Questions 486
Leadership at Work 487
Organizational Change Role Play 487
Leadership Development: Cases for Analysis 488
‘‘From This Point On. . .’’ 488
Riverside Pediatric Associates 489
References 491
Name Index 494
Index of Organizations 498
Subject Index 502
xii CONTENTS
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 Van- derbilt University. Professor Daft specializes in the study of leadership and organiza- tion 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 Organi- zation 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 Soci- ety, Management Science, MIS Quarterly, California Management Review, Leader- ship Excellence, Leader to Leader, and Organizational Behavior Teaching Review.
Dr. Daft also is an active teacher and consultant. He has taught leadership, lead- ing 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, Auto- Zone, Aegis Technology, Bell Canada, Aluminum Bahrain (Alba), Bridgestone, TVA, Cardinal Healthcare, Pratt & Whitney, Allstate Insurance, State Farm Insur- ance, 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 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
PREFACE
Many leaders have recently had their assumptions challenged about how organiza- tions 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 appli- cations with established scholarly research in a way that makes the topic of leader- ship 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, glob- alization, 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 lead- ership to students and managers, and working with leaders to change their organiza- tions, 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 impor- tance 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 environ- ment. 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 sev- enth edition include:
xiv Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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
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 edi- tion 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 cour- age, 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 self- assessments are available within MindTap.
PREFACE xv
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 lead- ership, 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 real- life 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 opportu- nity to experience leadership issues in a personal way. These exercises take the form of questionnaires, scenarios, and activities.
xvi PREFACE
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Student Development Each chapter ends with discussion questions and then two activ- ities for student development. The first, Leadership at Work, is a practical, skill- building 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 De- velopment: 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 instruc- tors 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 knowl- edge 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 per- sonalize, 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 stu- dents. Stay connected and informed in your course through real-time student track- ing 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 calcu- lated combinations of lower- and higher-order thinking skills exercises. Students can work together in the experiential exercises to create videos, write papers, deliver pre- sentations, and more. Interactive Self-Assessments engage students by helping them make personal connections to the content presented in each chapter. A flexible grad- ing 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:
PREFACE xvii
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 Leader- ship 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 learn- ing opportunities for students.
Videos Videos compiled specifically to accompany The Leadership Experience, seventh edi- tion, 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 tremen- dous 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.
xviii PREFACE
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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
Ron Franzen Saint Luke’s Hospital
Adrian Guardia Texas A&M University—San Antonio
Delia J. Haak John Brown University
Nell Hartley Robert Morris College
Ann Horn-Jeddy Medaille College
Ellen Jordan Mount Olive College
Alyson Livingston North Central Texas College
Gregory Manora Auburn University–Montgomery
Joseph Martelli The University of Findlay
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
Shane Spiller University of Montevallo
Shand H. Stringham Duquesne University
Ahmad Tootonchi Frostburg State University
Mary L. Tucker Ohio University
Joseph W. Weiss Bentley University
Donald D. White University of Arkansas
Xavier Whitaker Baylor University
Jean Wilson The College of William and Mary
George A. Wynn University of Tampa
The developers at Cengage Learning also deserve special mention. Senior Prod- uct Manager Mike Roche supported the concept for this book and obtained the
PREFACE xix
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 enthusi- asm 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 collabo- ration 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 grand- children. 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
xx PREFACE
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Part 1: Introduction to Leadership
Chapter 1: What Does It Mean to Be a Leader?
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Chapter 1: What Does It Mean to Be a Leader?
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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
8 The New Reality for Leaders
14 How Leadership Differs from Management
17 Evolving Theories of Leadership
21 Leadership Can Be Learned
24 Mastering the Art and Science of Leadership
24 Organization of This Book
In the Lead
13 Pope Francis, Roman Catholic Church
23 Google
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
Abraham Lincoln had less leadership experience than any previous president,but when historians rank the ‘‘greatest presidents,’’ Lincoln frequently topsthe list. Interest in Lincoln’s leadership swelled with the release of Steven Spielberg’s historical film Lincoln, which was a huge critical and commercial suc- cess, 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 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 lis- ten 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 eco- nomic 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 well- known 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 fam- ilies, 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 well- known, 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 strug- gling 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.
4 PART 1 INTRODUCTION TO LEADERSHIP
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 under- standing the essential nature of leadership as a real and powerful influence in organ- izations and societies.
1-1a Defining Leadership Leadership studies are an evolving discipline, and the concept of leadership will con- tinue 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 influ- ence relationship among leaders and followers who intend real changes and out- comes 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, superi- ors 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
Leader
Change Shared purpose
Followers Personal
responsibility and integrity
Influence Intention
Leadership an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes
CHAPTER 1 WHAT DOES IT MEAN TO BE A LEADER? 5
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Also, leadership is a people activity and is distinct from administrative paper- work or planning activities. Leadership occurs among people; it is not something done to people. Since leadership involves people, there must be followers. An indi- vidual performer who achieves excellence as a scientist, musician, athlete, or wood- carver 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 leader- ship 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 some- thing 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 any- one. When we stop equating leadership with greatness and public visibility, it becomes easier to see our own opportunities for leadership and recognize the leader- ship 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 Amer- ica, the organization Kopp started, became one of the most respected educa- tional 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 dis- gusted by how some dealers and finance institutions preyed on low-income cus- tomers. After he retired from a varied career, the 62-year-old electrical engineer
6 PART 1 INTRODUCTION TO LEADERSHIP
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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.
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 organiza- tions, 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, Penn- sylvania, when she was in her early twen- ties. 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 deter- mines performance.’’ For her, leader- ship 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 found- ing 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 Insti- tute). 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, Hes- selbein took a close look at the mis- sion of the organization and began asking leaders at all levels, as well as girls themselves, what they really val- ued, 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 aban- don 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 develop- ment 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.
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 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
1-2 THE NEW REALITY FOR LEADERS Social media. Globalization. Mobile commerce. Geopolitical wars. Renewable tech- nologies 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 transfor- mation 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 out- lined 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
Old Paradigm Leader
New Paradigm Leader
Stabilizer Change Manager
Diversity Avoider
Diversity Promoter
Hero Humble
Competitor Collaborator
Controller Facilitator
From To
Paradigm a shared mindset that repre- sents a fundamental way of thinking about, perceiving, and understanding the world
8 PART 1 INTRODUCTION TO LEADERSHIP
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 shut- down of numerous companies, creating supply chain disruptions for manufac- turers 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 repu- tations 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 faced similar debt prob- lems 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 pro- tect 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 organi- zation to function efficiently and effectively. Rigid organizational hierarchies, struc- tured 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.
CHAPTER 1 WHAT DOES IT MEAN TO BE A LEADER? 9
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 command- and-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 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 aggres- siveness, 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, govern- ments, universities, and other organizations. There is a growing trend within compa- nies 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 influ- ence rather than wielding their authority to quell harmful politicking, get buy-in on important matters, and move things forward.29
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.
10 PART 1 INTRODUCTION TO LEADERSHIP
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 disas- ter in a world becoming more multinational and diverse.
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 peo- ple 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.
Mostly False
Mostly 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. ______ ______
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. ______ ______
Scoring and Interpretation Count the number of items checked Mostly True that repre- sent each of the five intelligences as indicated below.
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 ________.
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, ‘‘Concep- tual 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).
11 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Bringing diversity into the organization is the way to attract the best human tal- ent and develop an organizational mindset broad enough to thrive in a multina- tional 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 differ- ent 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 situa- tions and handle a variety of organizational and personal needs. The advertising firm is growing again, and this time it is also making a profit.
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 com- pany by supporting and developing others rather than touting his or her own abil- ities 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 new- paradigm leaders even today.
ConsiderThis! Should Leaders Live by the Cowboy Code?
1. A cowboy never takes unfair advantage—even of an enemy. 2. A cowboy never goes back on his word or betrays a trust. 3. A cowboy always tells the truth. 4. A cowboy is kind and gentle with children, the elderly, and animals. 5. A cowboy is free from racial or religious prejudice. 6. A cowboy is always helpful and lends a hand when anyone is in trouble. 7. A cowboy is a good worker. 8. A cowboy stays clean in thought, speech, action, and personal habits. 9. A cowboy respects womanhood, parents, and the laws of his nation.
10. A cowboy is a patriot to his country.
Source: Gene Autry’s Cowboy Commandments are reported, with some variations in wording, in multiple sources.
12 PART 1 INTRODUCTION TO LEADERSHIP
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 com- plex 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 per- sonalities 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 responsibil- ity 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 illus- trate 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
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
CHAPTER 1 WHAT DOES IT MEAN TO BE A LEADER? 13
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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 Management can be defined as the attainment of organizational goals in an effective and efficient manner through planning, organizing, staffing, directing, and control- ling organizational resources. So, what is it that distinguishes the process of leader- ship 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 effec- tively to lead to high performance.37 That is, leadership cannot replace manage- ment; the two have to go hand-in-hand.
Exhibit 1.3 compares management to leadership in five areas crucial to organi- zational performance—providing direction, aligning followers, building relation- ships, developing personal qualities, and creating leader outcomes.38
1-3a Providing Direction 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 long- term 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
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
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.
Management the attainment of organiza- tional goals in an effective and efficient manner through planning, organiz- ing, staffing, directing, and controlling organizational resources
NEW LEADER ACTION MEMO You can evaluate your own leadership potential by completing the quiz in Leader’s Self-Insight 1.2.
Vision a picture of an ambitious, desirable future for the organization or team
14 PART 1 INTRODUCTION TO LEADERSHIP
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
world’’ or as down-to-earth as the Swedish company IKEA’s simple vision ‘‘to pro- vide 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 val- ues that can lead to the desired future state. Whereas the vision describes the desti- nation, 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
EXHIBIT 1.3 Comparing Management and Leadership
Direction:
Alignment:
Relationships:
Personal Qualities:
Outcomes:
Management Leadership
• Plan and budget • Minimize risk for sure results • Focus on bottom line
• Organize and staff • Direct and control • Create structure and order
• Invest in goods • Use position power • Focus people on specific goals
• Emotional distance • Expert mind • Talking • Conformity • Insight into organization
• Maintain stability; create a culture of efficiency
• Create vision and strategy • Maximize opportunity • Keep eye on horizon
• Create shared culture and values • Provide learning opportunities • Encourage networks and flexibility
• Invest in people • Use personal influence • Inspire with purpose and trust
• Emotional connections (Heart) • Open mind (Mindfulness) • Listening (Communication) • Nonconformity (Courage) • Insight into self (Character)
• Create change and a culture of 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).