The steve jobs way by jon katzenbach

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C h a p t e r o u t l i n e ➜ The nature of leadership ➜ Contemporary leadership

Level 5 leadership Servant leadership Authentic leadership Gender differences

➜ From management to leadership Leadership traits Behavioural approaches Task versus people The Leadership Grid

➜ Contingency approaches The situational model of

leadership Fiedler’s contingency theory

➜ Situational substitutes for leadership

➜ Charismatic and transformational leadership

Charismatic leadership Transformational versus

transactional leadership

➜ Followership ➜ Power and influence

Position power Personal power Other sources of power Interpersonal influence

tactics ➜ Contemporary leaders ➜ Leadership of sustainable

development

1 Define leadership and explain its importance for organisations.

2 Describe how leadership is changing in today’s organisations, including Level 5 leadership, servant leadership and authentic leadership.

3 Discuss how women’s style of leading is typically different from men’s.

4 Identify personal characteristics associated with effective leaders.

5 Define task-oriented behaviour and people-oriented behaviour and explain how these categories are used to evaluate and adapt leadership style.

6 Describe the situational model of leadership and its application to subordinate participation.

7 Discuss how leadership fits the organisational situation and how organisational characteristics can substitute for leadership behaviours.

8 Describe transformational leadership and when it should be used.

9 Explain how followership is related to effective leadership.

10 Identify sources of leader power and the tactics that

leaders use to influence others.

l e a r n i n g o b j e C t i v e s After studying this chApter, you should be Able to:

C h a p t e r 15

L E A D I N G I N O R G A N I S A T I O N S

Samson, Danny, and Richard L. Daft. Management : Asia Pacific, Cengage Learning Australia, 2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/latrobe/detail.action?docID=1991004. Created from latrobe on 2019-10-08 23:00:43.

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new Manager self-test

W h AT ’ S y O u R p E R S O N A L S T y L E ?

Ideas about effective leadership change over time. To understand your approach to leadership, think about your personal style towards others or towards a student group to which you belong, and then answer each item below as Mostly true or Mostly false for you.

Mostly true Mostly false

1 I am a modest, unassuming person.

2 When a part of a group, I am more concerned about how the group does than how I do.

3 I prefer to lead with quiet modesty rather than personal assertiveness.

4 I feel personally responsible if the team does poorly.

5 I act with quiet determination.

6 I resolve to do whatever needs doing to produce the best result for the group.

7 I am proactive to help the group succeed.

8 I facilitate high standards for my group’s performance.

scoring and interpretation: A recent view of leadership called Level 5 Leadership says that the most successful leaders have two prominent qualities: humility and will. Give yourself one point for each item marked Mostly true.

Humility: Items 1, 2, 3, 4

Will: Items 5, 6, 7, 8. Humility means a quiet, modest, self-effacing manner. A humble person puts

group or organisational success ahead of one’s personal success. Will means a quiet but fierce resolve to stay the course to achieve the group’s desired outcome and to help the group succeed. The traits of humility and will are opposite the traditional idea of leadership as loud and self-centred. If you scored 3 or 4 on either humility or will, you are on track to level 5 leadership, which says that ordinary people often make excellent leaders.

Samson, Danny, and Richard L. Daft. Management : Asia Pacific, Cengage Learning Australia, 2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/latrobe/detail.action?docID=1991004. Created from latrobe on 2019-10-08 23:00:43.

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In the prevIous chapter, we explored differences in attitudes and personality that affect behaviour. Some of the most important attitudes for the organisation’s success are those of its leaders, because leader attitudes and behaviours play a critical role in shaping employee attitudes, such as job satisfaction and organisational commitment.

Yet there are as many variations among leaders as there are among other individuals, and many different styles of leadership can be effective. Different leaders behave in different ways depending on their individual differences as well as their followers’ needs and the organisational situation. Consider the differing styles of Pat McGovern, founder and chair of IDG, a technology publishing and research firm that owns magazines such as CIO, PC World and Computerworld, and Tom Siebel, founder and former CEO of software company Siebel Systems. McGovern treats each employee to lunch at the Ritz on his or her tenth anniversary with IDG to tell them how important they are to the success of the company. He personally thanks almost every person in every business unit once a year, which takes about a month of his time. Managers provide him with a list of accomplishments for all their direct reports, which McGovern memorises the night before his visit so he can congratulate people on specific accomplishments. In addition to appreciating and caring about employees, McGovern also shows that he believes in them by decentralising decision making so that people have the autonomy to make their own decisions about how best to accomplish organisational goals.

Tom Siebel, in contrast, was known as a disciplined and dispassionate manager who remained somewhat aloof from his employees and maintained strict control over every aspect of the business. At Siebel he enforced a dress code, set tough goals and standards, and held people strictly

When Jess Moore took over the role of general site manager at the ICI Australia (now Orica) site at Botany in Sydney, he knew he was in for a major challenge. The site was infamous in Australia as an ‘industrial relations nightmare’. In essence, the interests of the company managers and the plant employees (the operators and the tradesmen) had totally diverged. Employee relations at the site had been poor for decades, with many employees doing little work during regular work hours, leading to the creation of lots of overtime. This was a prevalent approach in Australian industrial organisations during the twentieth century, especially in the oil and gas, brewing and many other manufacturing sectors. The Botany site had a poor safety record, with numerous severe injuries and deaths on the site. When Jess first came to the site, he wanted to do what had made him a successful leader elsewhere within ICI: spend a few weeks walking the site, simply talking to everybody about the problems the site faced and discussing the way forward. From a business perspective, the whole Botany site was threatened with closure due to lack of competitiveness. Things were so bad that when Jess wanted to go into a control room to talk to the plant operators, the shop stewards who represented the unionised workforce

barred him from entering and communicating with shop floor operators, saying that all communications had to be done with the union, who would then pass the messages on to operators and tradesmen. Jess knew that he could not lead the site away from the precipice it was about to topple over while the interests of management and workers seemed so far apart. Time was of the essence, so Jess had to move quickly to turn things around and revitalise the site. Customers were dissatisfied with service levels and costs were too high, while employees were taking home very large pay packets based on the overtime they generated for themselves. Further, the site had major safety and environmental problems, having previously had a poor record of ‘health safety and environment’ stemming from poor management–worker relationships. Jess’s many challenges included turning around the whole psychology of the workplace.

Question

How does a leader such as Jess Moore inspire employees to give their best to the organisation? What leadership style would you recommend Jess Moore use to turn complacent workers into a team of productive employees pulling together to serve the customer?

ManageMent challenge

Samson, Danny, and Richard L. Daft. Management : Asia Pacific, Cengage Learning Australia, 2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/latrobe/detail.action?docID=1991004. Created from latrobe on 2019-10-08 23:00:43.

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1 5 : L EAD ING IN ORGAN ISAT IONS 605

accountable. ‘We go to work to realise our professional ambitions, not to have a good time,’ Siebel has said.1 Both Siebel and McGovern have been successful as leaders, even though their styles are quite different.

This chapter explores one of the most widely discussed and researched topics in management: leadership. Here we define leadership and explore how managers develop leadership qualities. We look at some important leadership approaches for contemporary organisations; examine trait, behavioural and contingency theories of leadership effectiveness; discuss charismatic and transformational leadership; explore the role of followership; and consider how leaders use power and influence to get things done. The final section of the chapter discusses servant leadership and moral leadership, two enduring approaches that have received renewed emphasis in recent years. Chapters 16 to 18 will look in detail at many of the functions of leadership, including employee motivation, communication and encouraging teamwork.

The naTure of leadership In most situations, a team, military unit, department or volunteer group is only as good as its leader. So, what does it mean to be a leader? Among all the ideas and writings about leadership, three aspects stand out: people, influence and goals. Leadership occurs among people, involves the use of influence and is used to attain goals.2 Influence means that the relationship among people is not passive. Moreover, influence is designed to achieve some end or goal. Thus, leadership as defined here is the ability to influence people towards the attainment of goals. This definition captures the idea that leaders are involved with other people in the achievement of goals. Leadership is reciprocal, occurring among people.3 Leadership is a ‘people’ activity, distinct from administrative paperwork or problem-solving activities.

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Bob Geldof might seem like an unlikely multinational leader, but he was one of the first to mobilise global musical forces, and in doing so he created musical history. In 1984, as lead singer with the Boomtown Rats, Geldof joined Ultravox lead singer Midge Ure to write a song to raise money for famine relief, and persuaded colleagues to donate their services to record it. Geldof later organised Live Aid, a concert that raised some £40 million for famine relief and long-term development in underdeveloped countries. Geldof joined with Nelson Mandela to champion the cause of poverty alleviation in 2005. That series of events in July 2005 was known as Live 8, which sought to influence the wealthy countries of the world to work harder to ‘Make Poverty History’.

leadership The ability to influence people towards the attainment of organisational goals.

➜ The attitudes and behaviours of leaders shape the conditions that determine how well employees can do their jobs; thus, leaders play a

tremendous role in the organisation’s success.

➜ Many different styles of leadership can be effective.

➜ Leadership is the ability to influence people towards the attainment of organisational goals.

reMeMber this

ConTemporary leadership The concept of leadership evolves as the needs of organisations change. That is, the environmental context in which leadership is practised influences which approach might be most effective, as well as what kinds of leaders are most admired by society. The technology, economic conditions, labour conditions

Samson, Danny, and Richard L. Daft. Management : Asia Pacific, Cengage Learning Australia, 2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/latrobe/detail.action?docID=1991004. Created from latrobe on 2019-10-08 23:00:43.

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and social and cultural mores of the times all play a role. A significant influence on leadership styles in recent years is the turbulence and uncertainty of the environment. Ethical and economic difficulties, corporate governance concerns, globalisation, changes in technology, new ways of working, shifting employee expectations and significant social transitions have contributed to a shift in how we think about and practise leadership. Four approaches that are in tune with leadership for today’s turbulent times are Level 5 leadership, servant leadership, authentic leadership and interactive leadership, which has been associated with women’s style of leading.

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LeveL 5 LeadershIp A study conducted by Jim Collins and his research associates identified the critical importance of what Collins calls Level 5 leadership in transforming companies from merely good to truly great organisations.4 As described in his book Good to Great: Why Some Companies Make the Leap . . . and Others Don’t, Level 5 leadership refers to the highest level in a hierarchy of manager capabilities, as illustrated in Exhibit 15.1.

As reflected in the exhibit, a key characteristic of Level 5 leaders is an almost complete lack of ego (humility) coupled with a fierce resolve to do what is best for the organisation (will). humility means being unpretentious and modest rather than arrogant and prideful. In contrast to the view of great leaders as larger-than-life personalities with strong egos and big ambitions, Level 5 leaders often seem shy and self-effacing. Although they accept full responsibility for mistakes, poor results or failures, Level 5 leaders give credit for successes to other people. Level 5 leaders build organisations based on solid values that go far beyond just making money, with an unwavering resolve to do whatever is needed to make the company successful over the long term.5

One leader who demonstrates Level 5 leadership qualities is Qi Lu of Microsoft.

exhibit 15.1 Level 5 hierarchy

humility Being unpretentious and modest rather than arrogant and prideful.

Source: Based on Jim Collins, Good to Great: Why Some Companies Make the Leap . . . and Others Don’t (New York: HarperCollins, 2001), p. 20.

Samson, Danny, and Richard L. Daft. Management : Asia Pacific, Cengage Learning Australia, 2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/latrobe/detail.action?docID=1991004. Created from latrobe on 2019-10-08 23:00:43.

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1 5 : L EAD ING IN ORGAN ISAT IONS 607

Level 5 leaders like Qi Lu are extremely ambitious for their companies rather than for themselves. As another example, consider Darwin Smith, CEO of Kimberly-Clark from 1971 to 1991. Over those 20 years, Smith transformed Kimberly-Clark from a stodgy paper company with falling stock prices into the leading consumer paper products company in the world. The company generated cumulative shareholder returns that were 4.1 times greater than those of the general market. Yet few people have ever heard of Smith. He shunned the spotlight and was never featured in splashy articles in Fortune magazine or The Wall Street Journal. He was ambitious for the company, not for himself.6

This attitude becomes highly evident in the area of succession planning. Level 5 leaders develop a solid core of leaders throughout the organisation, so that when they leave, the company can continue to thrive and grow even stronger. Egocentric leaders, by contrast, often set their successors up for failure because it will be a testament to their own greatness if the company doesn’t perform well without them. Rather than building an organisation around ‘a genius with a thousand helpers’, Level 5 leaders want everyone to develop to their fullest potential.

servant LeadershIp When Jack Welch, longtime CEO of General Electric (GE), speaks to MBA students, he reminds them that ‘any time you are managing people, your job is not about you, it’s about them. It starts out about you as . . . an individual in a company’, Welch says. ‘But once you get a leadership job, it moves very quickly to being about them.’7 Some leaders operate from the assumption that work exists for the development of the worker as much as the worker exists to do the work.8 The concept of servant leadership, first described by Robert Greenleaf in 1970, has gained renewed interest in recent years as companies recover from ethical scandals and compete to attract and retain the best human talent.9

A servant leader transcends self-interest to serve others, the organisation and society.10 Marilyn Nelson, joint owner and former CEO of the Carlson Companies (Radisson Hotels, TGI Fridays), says being a true leader means you ‘have to subordinate your own emotions, your own desires, even make decisions on behalf of the whole that might conflict with what you would do on an individual basis’.11 A stunning example of this occurred in the spring of 2009 when a US-flagged cargo ship, the Maersk

LEvEL 5 LEADERShIp AT WORk InnovatIve

Way

Qi Lu grew up in a rural village in China with no electricity or running water. Today, he is Executive Vice President, Applications and Services Group at Microsoft, having previously been president of Microsoft’s Online Services division. How did he get there? Not from personal ambition, say former colleagues at Yahoo!. ‘He shunned the limelight,’ said Tim Cadogan, now CEO of OpenX, ‘but he was considered one of the stars.’

Lu rose through the ranks at Yahoo!, and he got the job at Microsoft based not on aggressiveness and pursuit of personal

advancement, but rather because of his sheer intellectual abilities and his commitment to go above and beyond the call of duty to accomplish organisational goals. Lu feels a strong sense of duty and loyalty, pouring his heart and soul into the mission rather than spending his energies promoting himself. On his last day of work at Yahoo!, a problem came up with a database. Rather than leaving the problem for others, Lu worked side by side with his former employees to try to fix it. He finally left at midnight, when his network access was automatically cut off.

Source: Miguel Helft. (31 August 2009). A Hired Gun for Microsoft, in Dogged Pursuit of Google. The New York Times, http://www.nytimes.com/2009/08/31/technology/internet/31search.html (accessed 31 August 2009).

servant leadership occurs when a leader transcends self-interest to serve others, the organisation and society.

Samson, Danny, and Richard L. Daft. Management : Asia Pacific, Cengage Learning Australia, 2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/latrobe/detail.action?docID=1991004. Created from latrobe on 2019-10-08 23:00:43.

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Alabama, was seized and raided by Somali pirates. Captain Richard Phillips ordered crew members of the unarmed ship not to fight and gave himself up as a hostage to free the ship and crew. (A big-budget Hollywood film about this incident, called Captain Phillips, was released in 2013.) Contrast his behaviour with that of Costa Concordia captain Francesco Schettino, who allegedly abandoned his ship while passengers were still aboard after the luxury cruise liner hit a rock and sank off the coast of Italy, killing at least 30 people. Schettino has been charged with manslaughter, shipwreck and abandoning ship.12

In organisations, servant leaders operate on two levels: for the fulfilment of their subordinates’ goals and needs and for the realisation of the larger purpose or mission of their organisation. Servant leaders give things away – power, ideas, information, recognition, credit for accomplishments, even money. Servant leaders often work in the non-profit world because it offers a natural way to apply their leadership drive and skills to serve others. But servant leaders also succeed in business. Fred Keller has built a US$250 million plastics manufacturing company, Cascade Engineering, by continuously asking one question: What good can we do? Keller started the business 40 years ago with six employees. Today, it has 1000 employees in 15 business divisions. Keller has made social responsibility a cornerstone of the business. The company offers jobs to welfare recipients. Keller has also donated large amounts to various philanthropic causes, both as an individual and through Cascade.13

authentIC LeadershIp Another popular concept in leadership today is the idea of authentic leadership, which refers to individuals who know and understand themselves, who espouse and act consistently with higher-order ethical values, and who empower and inspire others with their openness and authenticity. To be authentic means to be real, to stay true to one’s values and beliefs, and to act based on one’s true self rather than emulate what others do. Authentic leaders inspire trust and commitment because they respect diverse viewpoints, encourage collaboration and help others to learn, grow and develop as leaders. Exhibit 15.2 outlines the key characteristics of authentic leaders, and each is discussed below.14

●● Authentic leaders pursue their purpose with passion. Leaders who lead without a purpose can fall prey to greed and the desires of the ego. When leaders demonstrate a high level of passion and commitment to a purpose, they inspire commitment from followers.

●● Authentic leaders practise solid values. Authentic leaders have values that are shaped by their personal beliefs, and they stay true to them even under pressure. People come to know what the leader stands for, which inspires trust.

●● Authentic leaders lead with their hearts as well as their heads. All leaders sometimes have to make tough choices, but authentic leaders maintain a compassion for others as well as the courage to make difficult decisions.

●● Authentic leaders establish connected relationships. Authentic leaders build positive and enduring relationships, which makes followers want to do their best. In addition, authentic leaders surround themselves with good people and work to help others grow and develop.

●● Authentic leaders demonstrate self-discipline. A high degree of self-control and self-discipline keeps leaders from taking excessive or unethical risks that could harm others and the organisation.

authentic leadership Individuals who know and understand themselves, who espouse and act consistently with higher- order ethical values and who empower and inspire others with their openness and authenticity.

Samson, Danny, and Richard L. Daft. Management : Asia Pacific, Cengage Learning Australia, 2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/latrobe/detail.action?docID=1991004. Created from latrobe on 2019-10-08 23:00:43.

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Gender dIfferenCes Some of the general characteristics associated with Level 5 leaders and authentic leaders are also hallmarks of interactive leadership, which has been found to be associated with female leaders. interactive leadership means that the leader favours a consensual and collaborative process, and influence derives from relationships rather than position power and formal authority.15

Although both men and women can practise interactive leadership, research indicates that women’s style of leadership is typically different from that of most men, and is particularly suited to today’s organisations.16 Using data from actual performance evaluations, one study found that when rated by peers, subordinates and bosses, female managers scored significantly higher than men on abilities such as motivating others, fostering communication and listening.17 Another study of leaders and their followers in businesses, universities and government agencies found that women were rated higher on social and emotional skills, which are crucial for interactive leadership.18 Indeed, in a study already mentioned in Chapter 13 that reviewed more than 7000 360-degree performance evaluations, it was discovered that women outshone men in almost every leadership dimension measured, even some considered typically masculine qualities, such as driving for results. The exception was that women were typically rated lower on developing a strategic perspective, which some researchers believe hinders female managers’ career advancement despite their exceptional ratings on other leadership dimensions.19 Exhibit 15.3 shows results for five of the 16 dimensions measured by the study.

One good example of an interactive leader is Cindy Szadokierski, who started as a reservations agent for United Airlines and today is vice president in charge of operations for United’s largest hub at O’Hare International Airport. As she oversees 4000 employees and 600 flights a day, her favourite times are the weekly afternoon walkabouts on the O’Hare ramp and the weekly morning strolls through the terminal, where she can connect with employees and customers. Pete McDonald, chief operating officer of United’s parent, UAL Corporation, says there were serious operations problems at O’Hare, so they put ‘the most communicative person’ in the job. Szadokierski’s approach to leadership is more collaborative than autocratic or ‘command and control’.20

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Connects with

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The authentic

leader

exhibit 15.2 Components of authentic leadership

interactive leadership The focus on minimising personal ambition and developing others.

Source: Based on Bill George, Authentic Leadership: Rediscovering the Secrets to Lasting Value (San Francisco: Jossey-Bass, 2003).

Samson, Danny, and Richard L. Daft. Management : Asia Pacific, Cengage Learning Australia, 2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/latrobe/detail.action?docID=1991004. Created from latrobe on 2019-10-08 23:00:43.

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Men can be interactive leaders as well, as illustrated above by the example of Pat McGovern. McGovern believes that having personal contact with employees and letting them know they’re appreciated is a primary responsibility of leaders.21 The characteristics associated with interactive leadership are emerging as valuable qualities for both male and female leaders in today’s workplace. Values associated with interactive leadership include personal humility, inclusion, relationship building and caring.

exhibit 15.3 Gender differences in leadership behaviours

leadership ability Who does it best?

Develops others (Women rated higher)

Drives for results (Women rated higher)

Inspires and motivates others (Women rated higher)

Innovates (Women and men rated about equally)

Builds relationships (Women rated higher)

Technical or professional expertise (Women and men rated about equally)

Source: Data from Zenger Folkman, Inc., reported in Jack Zenger and Joseph Folkman. (15 March 2012). Are Women Better Leaders than Men? HBR Blog Network, Harvard Business Review, http://blogs.hbr.org/cs/2012/03/a_study_in_leadership_women_do.html (accessed 12 September 2012).

➜ A significant influence on leadership styles in recent years is the turbulence and uncertainty of the environment.

➜ One effective approach in today’s environment is Level 5 leadership, which is characterised by an almost complete lack of ego (humility), coupled with a fierce resolve to do what is best for the organisation (will).

➜ Humility means being unpretentious and modest rather than arrogant and prideful.

➜ A servant leader is a leader who serves others by working to fulfil followers’ needs and goals, as well as to achieve the organisation’s larger mission.

➜ Authentic leadership refers to leadership by individuals who know and understand themselves, who espouse and act consistently with higher-order ethical values, and who empower and inspire others with their openness and authenticity.

➜ Women leaders typically score significantly higher than men on abilities such as motivating others,

building relationships and developing others – skills that are based on humility and authenticity and are particularly suited to today’s organisations.

➜ Interactive leadership is a leadership style characterised by values such as inclusion, collaboration, relationship building and caring.

➜ Although interactive leadership is associated with women’s style of leading, both men and women can be effective interactive leaders.

reMeMber this

Samson, Danny, and Richard L. Daft. Management : Asia Pacific, Cengage Learning Australia, 2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/latrobe/detail.action?docID=1991004. Created from latrobe on 2019-10-08 23:00:43.

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