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g g

The Leadership Experience SEVENTH EDITION

RICHARD L. DAFT Owen Graduate School of Management Vanderbilt University

With the assistance of Patricia G. Lane

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The Leadership Experience Seventh Edition Richard L. Daft With the assistance of Patricia G. Lane

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To the spiritual leaders who shaped my growth and development as a leader and as a human being.

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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

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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

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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


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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


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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


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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


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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


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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


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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


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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.

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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:

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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.


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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.


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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:


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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.


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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


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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


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Part 1: Introduction to Leadership

Chapter 1: What Does It Mean to Be a Leader?

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Chapter 1: What Does It Mean to Be a Leader?

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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

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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.


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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


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


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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


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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.

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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


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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.


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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.


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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).

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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.


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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


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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


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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




Personal Qualities:


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).


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goals? The difference reflects a rational management versus a leadership approach.

1-3c Building Relationships In terms of relationships, management focuses on getting the most results out of people so that production goals are achieved and goods and services are provided to customers in a timely manner. Leadership, on the other hand, focuses on investing more in people so they are energized and inspired to accomplish goals.

Whereas the management relationship is based on position and formal author- ity, leadership is a relationship based on personal influence and trust. For example, in an authority relationship, both people accept that a manager can tell a subordi- nate to be at work at 7:30 A.M. or her pay will be docked. Leadership, on the other hand, relies on influence, which is less likely to use coercion. The role of leadership is to attract and energize people, motivating them through purpose and challenge rather than rewards or punishments.39 The differing source of power is one of the key distinctions between management and leadership. Take away a manager’s for- mal position, and will people choose to follow her? That is the mark of a leader.

1-3d Developing Personal Leadership Qualities Leadership is more than a set of skills; it relies on a number of subtle personal qual- ities that are hard to see but are very powerful. These include things like enthusiasm, integrity, courage, and humility. First of all, good leadership springs from a genuine caring for the work and a genuine concern for other people. The process of manage- ment generally encourages emotional distance, but leadership means being emotion- ally connected to others. Where there is leadership, people become part of a community and feel that they are contributing to something worthwhile. Whereas management means providing answers and solving problems, leadership requires the courage to admit mistakes and doubts, to listen, and to trust and learn from others.

Developing leadership qualities takes work. For leadership to happen, leaders may have to undergo a journey of self-discovery and personal understanding.40

Leadership experts agree that a top characteristic of effective leaders is that they know who they are and what they stand for. In addition, leaders have the courage to act on their beliefs.

True leaders tend to have open minds that welcome new ideas rather than closed minds that criticize new ideas. Leaders listen and discern what people want and need more than they talk to give advice and orders. Leaders are willing to be nonconform- ists, to disagree and say no when it serves the larger good, and to accept nonconform- ity from others rather than try to squeeze everyone into the same mindset.

1-3e Creating Outcomes The differences between management and leadership create two differing outcomes, as illustrated at the bottom of Exhibit 1.3. Management maintains a degree of stability, predictability, and order through a culture of efficiency. Leadership, on the other hand, creates change, often radical change, within a culture of agility and integrity that helps the organization thrive over the long haul by promoting openness and honesty, positive relationships, and long-term innovation. Leadership facilitates the courage needed to make difficult and unconventional decisions that may some- times hurt short-term results.

NEW LEADER ACTION MEMO As a leader, you can awaken your leadership qualities of enthusiasm, integrity, courage, and moral commitment. You can make emotional connections with followers to increase your leadership effectiveness.


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1-4 EVOLVING THEORIES OF LEADERSHIP To understand leadership as it is viewed and practiced today, it is important to rec- ognize that the concept of leadership has changed over time. Leadership typically reflects the larger society, and theories have evolved as norms, attitudes, and under- standings in the larger world have changed.41

LEADER’S SELF-INSIGHT 1.2 Your Leadership Potential

Instructions: Questions 1–6 below are about you right now. Questions 7–14 are about how you would like to be if you were the head of a major department at a corporation. Answer Mostly False or Mostly True to indicate whether the item describes you accurately or whether you would strive to perform each activity as a department head.

Now Mostly False

Mostly True

1. When I have a number of tasks or homework assignments to do, I set priorities and organize the work to meet the deadlines. ______ ______

2. When I am involved in a serious disagreement, I hang in there and talk it out until it is completely resolved. ______ ______

3. I would rather sit in front of my computer than spend a lot of time with people. ______ ______

4. I reach out to include other people in activities or when there are discussions. ______ ______

5. I know my long-term vision for career, family, and other activities. ______ ______

6. When solving problems, I prefer analyzing things myself to working through them with a group of people. ______ ______

Head of Major Department Mostly False

Mostly True

7. I would help subordinates clarify goals and how to reach them. ______ ______

8. I would give people a sense of long- term mission and higher purpose. ______ ______

9. I would make sure jobs get out on time. ______ ______

10. I would scout for new product or service opportunities. ______ ______

11. I would give credit to people who do their jobs well. ______ ______

12. I would promote unconventional beliefs and values. ______ ______

13. I would establish procedures to help the department operate smoothly. ______ ______

14. I would verbalize the higher values that I and the organization stand for. ______ ______

Scoring and Interpretation Count the number of Mostly True answers to even-numbered questions: ____. Count the number of Mostly True answers to odd-numbered questions: ____. Compare the two scores.

The even-numbered items represent behaviors and activities typical of leadership. Leaders are personally involved in shaping ideas, values, vision, and change. They often use an intuitive approach to develop fresh ideas and seek new directions for the department or organization. The odd-numbered items are considered more traditional man- agement activities. Managers respond to organizational problems in an impersonal way, make rational decisions, and work for stability and efficiency.

If you answered yes to more even-numbered than odd- numbered items, you may have potential leadership qual- ities. If you answered yes to more odd-numbered items, you may have management qualities. Management qualities are an important foundation for new leaders because the orga- nization first has to operate efficiently. Then leadership qual- ities can enhance performance. Both sets of qualities can be developed or improved with awareness and experience.

Sources: Based on John P. Kotter, Leading Change (Boston, MA: Harvard Business School Press, 1996), p. 26; Joseph C. Rost, Leadership for the Twenty-first Century (Westport, CT: Praeger, 1993), p. 149; and Brian Dumaine, ‘‘The New Non-Manager Managers,’’ Fortune (February 22, 1993), pp. 80–84.

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1-4a Historical Overview of Major Approaches The various leadership theories can be categorized into six basic approaches, each of which is briefly described in this section. Many of these ideas are still applicable to leadership studies today and are discussed in various chapters of this text.

Great Man Theories This is the granddaddy of leadership concepts. The earliest studies of leadership adopted the belief that leaders (who were always thought of as male) were born with certain heroic leadership traits and natural abilities of power and influence. In organizations, social movements, religions, governments, and the military, leadership was conceptualized as a single ‘‘Great Man’’ who put everything together and influenced others to follow along based on the strength of inherited traits, qualities, and abilities.

Trait Theories Studies of these larger-than-life leaders spurred research into the vari- ous traits that defined a leader. Beginning in the 1920s, researchers looked to see if leaders had particular traits or characteristics, such as intelligence or energy, that distinguished them from nonleaders and contributed to success. It was thought that if traits could be identified, leaders could be predicted, or perhaps even trained. Although research failed to produce a list of traits that would always guarantee leadership success, the interest in leadership characteristics has continued to the present day.

Behavior Theories The failure to identify a universal set of leadership traits led researchers in the early 1950s to begin looking at what a leader does rather than who he or she is. One line of research focused on what leaders actually do on the job, such as various management activities, roles, and responsibilities. These studies were soon expanded to try to determine how effective leaders differ in their behavior from ineffective ones. Researchers looked at how a leader behaved toward followers and how this correlated with leadership effectiveness or ineffectiveness. Chapter 2 discusses trait and behavior theories.

Contingency Theories Researchers next began to consider the contextual and situa- tional variables that influence what leadership behaviors will be effective. The idea behind contingency theories is that leaders can analyze their situations and tailor their behavior to improve leadership effectiveness. Major situational variables are the characteristics of followers, characteristics of the work environment and fol- lower tasks, and the external environment. Contingency theories, sometimes called situational theories, emphasize that leadership cannot be understood in a vacuum separate from various elements of the group or organizational situation. Chapter 3 covers contingency theories.

Influence Theories These theories examine influence processes between leaders and followers. One primary topic of study is charismatic leadership (Chapter 12), which refers to leadership influence based not on position or formal authority but, rather, on the qualities and charismatic personality of the leader. Related areas of study are leadership vision (Chapter 13) and organizational culture (Chapter 14). Leaders influence people to change by providing an inspiring vision of the future and shap- ing the culture and values needed to attain it. Several chapters of this text relate to the topic of influence because it is essential to understanding leadership.


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Relational Theories Since the late 1970s, many ideas of leadership have focused on the relational aspect, that is, how leaders and followers interact and influence one another. Rather than being seen as something a leader does to a follower, leadership is viewed as a relational process that meaningfully engages all participants and ena- bles each person to contribute to achieving the vision. Interpersonal relationships are seen as the most important facet of leadership effectiveness.42 Two significant relational theories are transformational leadership (Chapter 12) and servant leader- ship (Chapter 6).

Other important relational topics covered in various chapters of the text include the personal qualities that leaders need to build effective relationships, such as emo- tional intelligence, a leader’s mind, integrity and high moral standards, and personal courage. In addition, leaders build relationships through motivation and empower- ment, leadership communication, team leadership, and embracing diversity.

1-4b A Model of Leadership Evolution Exhibit 1.4 provides a framework for examining the evolution of leadership from the early Great Man theories to today’s relational theories. Each cell in the model summarizes an era of leadership thinking that was dominant in its time but may be less appropriate for today’s world.43

Leadership Era 1 This era may be conceptualized as pre-industrial and pre- bureaucratic. Most organizations were small and were run by a single individual who many times hired workers because they were friends or relatives, not necessarily

EXHIBIT 1.4 Leadership Evolution







Era 2 Rational Management

• Behavior theories • Contingency theories

Organization: • Vertical hierarchy, bureaucracy • Functional management

Era 4 Agile Leadership

• Relational theories • Level 5 leadership

Organization: • High-performance culture • Shared vision, alignment • Facilitate change and adaptation

Era 3 Team or Lateral Leadership

• Influence theories

Organization: • Horizontal organization • Cross-functional teams

Era 1 Great Person Leadership

• Great Man theories • Trait theories

Organization: • Pre-bureaucratic organization • Administrative principles


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because of their skills or qualifications. The size and simplicity of organizations and the stable nature of the environment made it easy for a single person to understand the big picture, coordinate and control all activities, and keep things on track. This is the era of Great Man leadership and the emphasis on personal traits of leaders. A leader was conceptualized as a single hero who saw the big picture and how every- thing fit into a whole.

Leadership Era 2 In Era 2, we see the emergence of hierarchy and bureaucracy. Although the world remains stable, organizations have begun to grow so large that they require rules and standard procedures to ensure that activities are performed efficiently and effectively. Hierarchies of authority provide a sensible mechanism for supervision and control of workers, and decisions once based on rules of thumb or tradition are replaced with precise procedures. This era sees the rise of the ‘‘rational manager’’ who directs and controls others using an impersonal approach. Employ- ees aren’t expected to think for themselves; they are expected to do as they’re told, follow rules and procedures, and accomplish specific tasks. The focus is on details rather than the big picture.

The rational manager was well-suited to a stable environment. The behavior and contingency theories worked here because leaders could analyze their situation, develop careful plans, and control what happened. But rational management is no longer sufficient for leadership in today’s world.

Leadership Era 3 This era represented a tremendous shock to managers in North America and Europe. Suddenly, the world was no longer stable, and the prized tech- niques of rational management were no longer successful. Beginning with the OPEC oil embargo of 1972 to 1973 and continuing with the severe global competition of the 1980s and early 1990s, many managers saw that environmental conditions had become chaotic. The Japanese began to dominate world commerce with their ideas of team leadership and superb quality. This became an era of great confusion for leaders. They tried team-based approaches, downsizing, reengineering, quality pro- grams, and empowerment as ways to improve performance and get more motiva- tion and commitment from employees.

This is the era of the team leader and the change leader. Influence was impor- tant because of the need to change organizational structures and cultures. This era sees the emergence of knowledge work, an emphasis on horizontal collaboration, and a shift to influence theories. Rather than conceiving of leadership as one person always being firmly ‘‘in charge,’’ leadership is often shared among team leaders and members, shifting to the person with the most knowledge or expertise in the matter at hand.44

Leadership Era 4 Enter the digital, mobile, social-media age. It seems that every- thing is changing, and changing fast. Era 4 represents agile leadership, which means giving up control in the traditional sense to ensure organizational flexibility and responsiveness to a changing world. Leaders influence others through relation- ships and networks and through shared vision and values rather than through hierarchical power and control. Agile leaders are constantly experimenting, learning, and changing, in both their personal and professional lives, and they encourage the development and growth of other people and the organization. Era 4 requires the full scope of leadership that goes far beyond rational management or even team leadership.

NEW LEADER ACTION MEMO As a leader, you can use the leadership skills that fit the correct era for your organization. You can use influence and relational aspects as appropriate for your organization.

Agile leadership giving up control in the traditional sense and encouraging the growth and development of others to ensure organizational flexibility and responsiveness


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Implications The flow from Great Man leadership to rational management to team leadership to agile leadership illustrates trends in the larger world. The implication is that leadership reflects the era or context of the organization and society. Most of today’s organizations and leaders are still struggling with the transition from a sta- ble to a chaotic environment and the new skills and qualities needed in this circum- stance. Thus, Era 3 issues of diversity, team leadership, empowerment, and horizontal relationships are increasingly relevant. In addition, many leaders are rap- idly shifting into Era 4 leadership by focusing on change management and facilitat- ing a vision and values to encourage high performance, agility, and continuous adaptation in a fast-shifting world. Agile leaders align themselves with new social technologies that can create networks of leaders throughout the organization. Era 3 and Era 4 leadership is what much of this book is about.

1-5 LEADERSHIP CAN BE LEARNED Many leaders are caught in the transition between the practices and principles that defined the industrial era and the new reality of the twenty-first century. Attempts to achieve collaboration, empowerment, and diversity in organizations may fail because the beliefs and thought processes of leaders as well as employees are stuck in an old paradigm that values control, stability, and homogeneity. It is difficult for many leaders to let go of methods and practices that have made them and their organizations successful in the past. Yet leaders can make the leap to a new para- digm by intentionally practicing and applying new paradigm principles.

1-5a Leader Fatal Flaws One of the most important aspects of shifting to the new paradigm of leadership is intentionally using soft, interpersonal skills to build a culture of performance, trust, and collaboration. A few clues about the importance of acquiring new leadership skills are brought to light by studies that look at what causes managers to ‘‘derail’’ in their careers. Derailment refers to a phenomenon in organizations in which a manager with an impressive track record reaches a certain level but goes off track and can’t advance because of a mismatch between job needs and the manager’s personal skills and qualities.45 Studies conducted in numerous organizations in different countries indicate that managers fail more frequently because they are deficient with soft, human skills rather than a lack of hard work or technical skills.46

Derailed managers are successful people who excelled in a functional area and were expected to go far, but they reached a plateau, were fired, or were forced to retire early.

Researchers at the Center for Creative Leadership in Greensboro, North Caro- lina, have been looking at what causes manager derailment for two decades.47 They conclude that there are five top flaws that cause managers to derail, as shown in Exhibit 1.5. Note that many of these flaws relate to the lack of human skills. Unsuc- cessful managers fail to meet business objectives because they spend too much time promoting themselves rather than working. They are overly ambitious and selfish and may not follow through on promises. They are often insensitive and critical, not trustworthy, do not learn from feedback and mistakes, can’t build and develop the right teams, and are unable to see the big picture when promoted into a general management position. Additional studies confirm that the biggest leader mistakes are people mistakes rather than technical ones.48

NEW LEADER ACTION MEMO Leader’s Self-Insight 1.3 gives you a chance to test your people skills and see if there are areas you need to work on.

Derailment a phenomenon in which a manager with an impressive track record reaches a certain level but goes off track and can’t advance because of a mismatch between job needs and personal skills and qualities


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LEADER’S SELF-INSIGHT 1.3 Are You on a Fast Track to Nowhere?

Instructions: Many people on the fast track toward positions of leadership find themselves suddenly derailed and don’t know why. Many times, a lack of people skills is to blame. To help you determine whether you need to work on your people skills, take the following quiz, answering each item as Mostly False or Mostly True. Think about a job or volunteer position you have now or have held in the past as you answer the following items.

People Skills Mostly False

Mostly True

1. Other people describe me as very good with people. ______ ______

2. I often smile and laugh with teammates or classmates. ______ ______

3. I often reach out to engage people, even strangers. ______ ______

4. I often express appreciation to other people. ______ ______

Dealing with Authority Mostly False

Mostly True

1. I quickly speak out in meetings when leaders ask for comments or ideas. ______ ______

2. If I see a leader making a decision that seems harmful, I speak up. ______ ______

3. I experience no tension when interacting with senior managers, either inside or outside the organization. ______ ______

4. I have an easy time asserting myself toward people in authority. ______ ______

Networking Mostly False

Mostly True

1. I spend part of each week networking with colleagues in other departments. ______ ______

2. I have joined multiple organizations for the purpose of making professional contacts. ______ ______

3. I often use lunches to meet and network with new people. ______ ______

4. I actively maintain contact with peers from previous organizations. ______ ______

Scoring and Interpretation Tally the number of ‘‘Mostly Trues’’ checked for each set of questions.

People Skills: ______ Dealing with Authority: ______ Networking: ______

If you scored 4 in an area, you’re right on track. Con- tinue to act in the same way.

If your score is 2 – 3, you can fine-tune your skills in that area. Review the questions where you said Mostly False and work to add those abilities to your leadership skill set.

A score of 0 – 1 indicates that you may end up danger- ously close to derailment. You should take the time to do an in-depth self-assessment and find ways to expand your inter- personal skills.

EXHIBIT 1.5 Five Fatal Flaws That Cause Derailment

5. Too Narrow Manage- ment Experience

Inability to work effectively or collaborate outside their current function; failing to see big picture when moved into general management position over several functions.

4. Difficulty Building and Leading a Team

Poor management of direct reports; inability to get work done through others; not identifying and hiring the right people.

3. Difficulty Changing

Not learning from feedback and mistakes to change old behaviors; defensive, unable to handle pressure, unable to change management style to meet new demands.

1. Performance Problems

Failing to meet business objectives because of too much time promoting themselves and playing politics, a failure to fulfill promises, or a lack of attention to priorities.

2. Problems with Relationships

Being insensitive, manipulative, critical, and not trustworthy in relationships with peers, direct reports, customers, and others.

Source: Based on Yi Zhang, Jean Brittain Leslie, and Kelly M. Hannum, ‘‘Trouble Ahead: Derailment Is Alive and Well,’’ Thunderbird International Business Review 55, no. 1 (January–February 2013), pp. 95–102.

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1-5b Leader Good Behaviors The best leaders, at all levels, are those who are genuinely interested in other people and find ways to bring out the best in them.49 Successful organizations, such as Google, pay attention to developing leaders in the soft skills needed to effectively lead technical people in a changing environment.

The skills on Google’s list of desirable behaviors can help leaders avoid the fatal flaws that derail careers. In addition, today’s successful leaders intentionally value change over stability, empowerment over control, collaboration over competition, diversity over uniformity, and integrity over self-interest, as discussed earlier. The industry of executive coaching emerged partly to help people through the transition to a new paradigm of leadership. Executive coaches encourage leaders to confront their own flaws and hang-ups that inhibit effective leadership, and then help them develop stronger emotional and interpersonal skills.

IN THE LEAD Google In 2015, Google was named the best company to work for by Fortune magazine for the sixth year in a row. Being a great place to work didn’t happen by accident. Google’s human resources department, called People Operations—or POPS for short—monitors employees’ happiness and well-being to an incredible degree, using data to track everything and learn where improvements are needed.

One thing it discovered is that good leaders make a tremendous difference. Google looked at what successful leaders—those who have lower attrition rates and get better performance from their teams—do that makes them different from less successful ones. Analyzing performance reviews and feedback surveys, Google executives used the findings to help make bad leaders better. Even in a company that depends on technical expertise, Google found that soft, human skills are essential. Technical expertise ranked dead last among eight desirable leader qualities, as shown in ‘‘Google’s Eight Rules for Good Leader Behavior.’’

Google discovered that employees want leaders who listen to them, build positive and productive relationships, and show an interest in their lives and careers. Google incorporates these eight desirable leader behaviors into leadership performance and evaluation systems as well as into feedback and training programs. When the company targeted unsuccessful leaders and coached them to develop soft skills and display these eight behaviors, the managerial ranks improved, with collective feedback scores going up every year since 2009.50

Google’s Eight Rules for Good Leader Behavior 1. Be a good coach. 2. Empower your team and don’t micromanage. 3. Express interest in team members’ success and personal well-being. 4. Don’t be a sissy. Be productive and results-oriented. 5. Be a good communicator and listen to your team. 6. Help your employees with career development. 7. Have a clear vision and strategy for the team. 8. Have key technical skills so you can help advise the team.51

NEW LEADER ACTION MEMO As a leader, you can cultivate your people skills to avoid executive derailment. You can treat others with kindness, interest, and respect and avoid overmanaging by selecting good followers and delegating effectively.


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1-6 MASTERING THE ART AND SCIENCE OF LEADERSHIP There’s an age-old question: Are leaders born or made? In one survey, 19 percent of top executives said leaders are born, 52 percent said they are made, and 29 percent said they are both born and made.52 It may be true that some inborn qualities and personality characteristics can provide a foundation for being a good leader, but most people can learn to be good leaders no matter their innate characteristics. Interestingly, in the above-mentioned survey, both those who thought leaders are born and those who thought they are made mention learning from experience as a key to becoming a good leader.

Leadership can be learned, but it is important to remember that leadership is both an art and a science. It is an art because many leadership skills and qualities cannot be learned from a textbook. Leadership takes practice and hands-on experience, as well as intense personal exploration and development. However, leadership is also a science because a growing body of knowledge and objective facts describes the leader- ship process and how to use leadership skills to attain organizational goals. This is where a textbook or a course on leadership can help you to be a better leader.

Knowing about leadership research helps people analyze situations from a vari- ety of perspectives and learn how to be more effective. By exploring leadership in both business and society, students gain an understanding of the importance of lead- ership to an organization’s success, as well as the difficulties and challenges involved in being a leader. Studying leadership can also lead to the discovery of abilities you never knew you had. When students in a leadership seminar at Wharton were asked to pick one leader to represent the class, one woman was surprised when she out- polled all other students. Her leadership was drawn out not in the practice of leader- ship in student government, volunteer activities, or athletics but in a classroom setting.53 Studying leadership gives you skills you can apply to the practice of lead- ership in your everyday life. Exhibit 1.6 gives some tips for how you can begin hon- ing your leadership skills.

Many people have never tried to be leaders because they have no understanding of what leaders actually do. The chapters in this book are designed to help you gain a firm knowledge of what leadership means and some of the skills and qualities that make a good leader. You can build competence in both the art and the science of leadership by completing the Self-Insight exercises throughout the book, by working on the activities and cases at the end of each chapter, and by applying the concepts you learn in class, in your relationships with others, in student groups, at work, and in voluntary organizations. Although this book and your instructors can guide you in your development, only you can apply the concepts and principles of leadership in your daily life. Learning to be a leader starts now, with you. Are you up to the challenge?

1-7 ORGANIZATION OF THIS BOOK The plan for this book reflects the shift to a new paradigm summarized in Exhibit 1.2 and the discussion of management versus leadership summarized in Exhibit 1.3. The framework in Exhibit 1.7 illustrates the organization of the book.

Part 1 introduces leadership, its importance, and the transition to a new leader- ship paradigm. Part 2 explores basic research perspectives that evolved during a more stable time when rational management approaches were effective. These basic


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perspectives, including the Great Man and trait theories, behavior theories, and con- tingency theories, are relevant to dealing with specific tasks and individuals and are based on a premise that leaders can predict and control various aspects of the envi- ronment to keep the organization running smoothly.

Parts 3, 4, and 5 focus on leadership perspectives that reflect the paradigm shift to the turbulent, unpredictable nature of the environment and the need for fresh leader approaches. Part 3 discusses the personal side of leadership and looks at some of the qualities and forces that are required to be effective in the new reality. These chapters emphasize the importance of self-awareness and self-understanding, the development of one’s own leadership mind and heart, moral leadership and courage, and appreciating the role of followership. Part 4 is about building effective relationships, including motivating and empowering others, communicating as a leader, leading teams, embracing the diversity of today’s world, and using power and influence.

Part 5 brings together all of these ideas to examine the leader as builder of a social architecture that can help an organization create a brighter future. These chapters deal with creating vision and strategic direction, aligning culture and values to achieve the vision, and leading change.

Taken together, the sections and chapters paint a complete portrait of the lead- ership experience as it has evolved to the present day and emphasize the new para- digm skills and qualities that are relevant from today and into the future. This book blends systematic research evidence with real-world experiences and impact.

EXHIBIT 1.6 Learning to Be a Leader

Emulate successful leaders

Find a mentor to provide feedback

Complete a leadership course to improve skills

Work to develop personal traits of

empathy and patience

Practice acts of leadership in your

everyday life

Source: Based on ‘‘Guidelines for the Apprentice Leader,’’ in Robert J. Allio, ‘‘Masterclass: Leaders and Leadership—Many Theories, But What Advice Is Reliable?’’ Strategy & Leadership 41, no. 1 (2013), pp. 4–14.


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LEADERSHIP ESSENTIALS This chapter introduced the concept of leadership and explained how individu- als can grow as leaders. Leadership is defined as an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes. Thus leadership involves people in a relationship, influ- ence, change, a shared purpose, and taking personal responsibility to make things happen. Most of us are aware of famous leaders, but most leadership that changes the world starts small and may begin with personal frustrations about events that prompt people to initiate change and inspire others to follow them. Your leadership may be expressed in the classroom, at work, or in your neighborhood, religious community, or volunteer organizations. Concepts of leadership have evolved over time. Major research approaches include Great Man theories, trait theories, behavior theories, contingency theo- ries, influence theories, and relational theories. Elements of all these approaches are still applicable to the study of leadership. The biggest challenge facing leaders today is the changing world that wants a new paradigm of leadership. The new reality involves the shift from stability to change, from control to empowerment, from competition to collaboration, and from uni- formity to diversity. In addition, the concept of leader as hero is giving way to that

EXHIBIT 1.7 Framework for the Book

Part 3: The Personal Side of Leadership

Part 1: Introduction to Leadership Chapter 1 What Does It Mean to Be a Leader?

Part 2: Research Perspectives on Leadership Chapter 2 Traits, Behaviors, and Relationships Chapter 3 Contingency Approaches to Leadership

Part 5: The Leader as Social Architect Chapter 13 Creating Vision and Strategic Direction Chapter 14 Shaping Culture and Values Chapter 15 Leading Change

Chapter 4 The Leader as an Individual Chapter 5 Leadership Mind and Emotion Chapter 6 Courage and Moral Leadership Chapter 7 Followership

Part 4: The Leader as Relationship Builder Chapter 8 Motivation and Empowerment Chapter 9 Leadership Communication Chapter 10 Leading Teams Chapter 11 Developing Leadership Diversity Chapter 12 Leadership Power and Influence


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of the humble leader who develops others and shares credit for accomplishments. These dramatic changes suggest that a philosophy based on control and personal ambition will probably fail in the new era. The challenge for leaders is to evolve to a new mindset that relies on human skills, integrity, and teamwork. The ‘‘soft’’ skills of leadership complement the ‘‘hard’’ skills of management, and both are needed to effectively guide organizations. Although leadership is often equated with good management, leadership and management are differ- ent processes. Management strives to maintain stability and improve effi- ciency. Leadership, on the other hand, is about creating a vision for the future, designing social architecture that shapes culture and values, inspiring and motivating followers, developing personal qualities, and creating change within a culture of integrity. Leadership can be integrated with management to achieve the greatest possible outcomes. Organizations need to be both man- aged and led, particularly in today’s turbulent environment. Many managers already have the qualities needed to be effective leaders, but they may not have gone through the process needed to bring these qualities to life. Leader- ship is an intentional act. It is important to remember that most people are not born with natural leadership skills and qualities, but leadership can be learned and developed.

DISCUSSION QUESTIONS 1. Look through recent magazines and newspapers and identify one leader who seems to illus-

trate the ‘‘leader-as-hero’’ mindset and one who seems more typical of the humble Level 5 leader described in the text. Describe their differing characteristics.Which was easier to find?

2. What do you consider your own strengths and weaknesses for leadership? Discuss your answer with another student.

3. Of the elements in the leadership definition as illustrated in Exhibit 1.1, which is the easi- est for you? Which is hardest? Explain.

4. How might the paradigm shift from competition to collaboration make the job of a leader more difficult? Could it also make the leader’s job easier? Discuss.

5. Describe the best leader you have known.Howdid this leader acquire his or her capability?

6. Why do you think there are so few people who succeed at both management and leader- ship? Is it reasonable to believe someone can be good at both? Discuss.

7. Discuss some recent events and societal changes that might have contributed to a shift ‘‘from hero to humble.’’ Do you agree or disagree that humility is important for good leadership?

8. ‘‘Leadership is more concerned with people than is management.’’ Do you agree? Discuss.

9. What personal capacities should a person develop to be a good leader versus those devel- oped to be a good manager?

10. Why is leadership considered both an art and a science?

LEADERSHIP AT WORK Leadership Right–Wrong Leader Wrong: Think of a specific situation in which you were working with someone who was in a leadership position over you and that person was doing something that was wrong


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for you. This person might have been a coach, teacher, team leader, employer, immediate boss, family member, or anyone who had a leadership position over you. ‘‘Wrong for you’’ means that person’s behavior reduced your effectiveness, made you or your coworkers less productive, and was demotivating to you or your colleagues. Write a few words below that describe what the leader was doing that was wrong for you.

Think of a second situation in which someone in a leadership position did something wrong for you. Write a few words below that describe what the leader was doing that was wrong for you.

Leader Right: Think of a specific situation in which you were working with someone who was in a leadership position over you and that person was doing something that was right for you. This person might have been a coach, teacher, team leader, employer, immedi- ate boss, family member, or anyone who had a leadership position over you. ‘‘Right for you’’ means that person’s behavior made you or your coworkers more productive, highly moti- vated you or others, and removed barriers to make you more successful. Write a few words below that describe what the leader was doing that was right for you.

Think of a second situation in which someone in a leadership position did something right for you. Write a few words below that describe what the leader was doing that was right for you.

The previous answers are data points that can help you understand the impact of leader behaviors. Analyze your four incidents—what are the underlying qualities of leadership that enable you to be an effective performer? Discuss your answers with another student. What leadership themes are present in the eight combined incidents? What do these responses tell you about the qualities you want and don’t want in your leaders?

In Class: An interesting way to use this exercise in class is to have students write (five words maximum) their leader ‘‘rights’’ on one board and their leader ‘‘wrongs’’ on another board. The instructor can ask small groups to identify underlying themes in the collective set of leader data points on the boards to specify what makes an effective leader. After students establish four or five key themes, they can be challenged to identify the one key theme that distinguishes leaders who are effective from those who are not.

Source: Based on Melvin R. McKnight, ‘‘Organizational Behavior as a Phenomenological, Free-Will Centered Science,’’ Working Paper, College of Business Administration, Northern Arizona University, 1997.


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LEADERSHIP DEVELOPMENT: CASES FOR ANALYSIS Sales Engineering Division When DGL International, a manufacturer of refinery equipment, brought in John Terrill to man- age its Sales Engineering division, company executives informed him of the urgent situation. Sales Engineering, with 20 engineers, was the highest-paid, best-educated, and least-productive division in the company. The instructions to Terrill: Turn it around. Terrill called a meeting of the engineers. He showed great concern for their personal welfare and asked point blank: ‘‘What’s the problem? Why can’t we produce? Why does this division have such turnover?’’

Without hesitation, employees launched a hail of complaints. ‘‘I was hired as an engi- neer, not a pencil pusher.’’ ‘‘We spend over half of our time writing asinine reports in tripli- cate for top management, and no one reads the reports.’’ ‘‘We have to account for every penny, which doesn’t give us time to work with customers or new developments.’’

After a two-hour discussion, Terrill began to envision a future in which engineers were free to work with customers and join self-directed teams for product improvement. Terrill concluded he had to get top management off the engineers’ backs. He promised the engineers, ‘‘My job is to stay out of your way so you can do your work, and I’ll try to keep top manage- ment off your backs, too.’’ He called for the day’s reports and issued an order effective imme- diately that the originals be turned in daily to his office rather than mailed to headquarters. For three weeks, technical reports piled up on his desk. By month’s end, the stack was nearly three feet high. During that time no one called for the reports. When other managers entered his office and saw the stack, they usually asked, ‘‘What’s all this?’’ Terrill answered, ‘‘Techni- cal reports.’’ No one asked to read them.

Finally, at month’s end, a secretary from finance called and asked for the monthly travel and expense report. Terrill responded, ‘‘Meet me in the president’s office tomorrow morning.’’

The next morning the engineers cheered as Terrill walked through the department push- ing a cart loaded with the enormous stack of reports. They knew the showdown had come.

Terrill entered the president’s office and placed the stack of reports on his desk. The pres- ident and the other senior executives looked bewildered.

‘‘This,’’ Terrill announced, ‘‘is the reason for the lack of productivity in the Sales Engi- neering division. These are the reports your people require every month. The fact that they sat on my desk all month shows that no one reads this material. I suggest that the engineers’ time could be used in a more productive manner, and that one brief monthly report from my office will satisfy the needs of the other departments.’’


1. Does John Terrill’s leadership style fit the definition of leadership in Exhibit 1.1? Is it part of a leader’s job to manage upward? Explain.

2. With respect to Exhibit 1.4, in what leadership era is Terrill? In what era is headquarters? Explain.

3. What approach would you have taken in this situation? What do you think the response of the senior executives will be to Terrill’s action?

The Marshall Plan Marshall Gordon was recognized by associates and competitors as a man on a mission. One of four members of the design team for a large chair manufacturing corporation, Marshall’s obses- sion with the creation of comfortable seating dated to a childhood back injury and a lifetime of pain. He recognized, more than most in the industry, the importance of designing chairs that offered some relief to those suffering from debilitating back, hip, and neck pain as well as help- ing people of all ages to avoid problems with proper posture. In his early days with the com- pany the staff jokingly called his approach the Marshall Plan, after America’s 1947 initiative


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(named for Secretary of State George Marshall) to rebuild European economies after the war. Like someone fighting to save the world, Marshall Gordon brought passion and a creative in- tensity to design meetings as if each drawing, each design tweak would change civilization as we knew it.

Single and with no apparent family or friendship ties, Marshall was married to his work. He seemed to thrive on 70-hour work weeks, although as a salaried manager, he received no overtime pay. Even his ‘‘down time’’ at meals or on weekends was spent sketching, studying the latest in ergonomics, or reconnoitering each design adjustment by competitors.

‘‘When you visit a furniture store, you fully expect to see Marshall, skulking about in trench coat and hat, checking to see what the competition is offering,’’ says fellow team mem- ber John Craddock. ‘‘We all laugh about it. The guy brings—actually brings—chairs to meet- ings and tears them apart to show us some miniscule discovery.’’

This obsession with chairs, pain and gravity, and one-upping the competition has made Marshall a valuable employee and earned him a reputation in the industry for creative design. Not since Peter Opsvik’s Gravity Balans ergonomic chair of the 1970s has anyone made such an impact on the industry. The effect of Marshall’s work on company profits is undeniable. The fact that competitors are chomping at the bit to lure him away is also undeniable.

But the Marshall Plan comes at a price. Over the 15 years he has worked with the com- pany, five as leader of the design group, there has been a constant turnover within the design group as frustrated workers leave the company to ‘‘get away from Marshall.’’

‘‘Anything you could learn from this brilliant and dedicated man is destroyed by his cold, calculating attitude,’’ Craddock complains. ‘‘I came to this company excited about the chance to work with him. But any knowledge he possesses is carefully guarded. His design ideas are perfect, while ours are picked apart. We all swear he has listening devices scattered around everywhere, because if the rest of the team huddles in some corner of the world to discuss a design idea, voila! He walks into the next meeting with our idea. Once when he was a few minutes late to a meeting, we thought we had beaten him and quickly presented our idea. Just then, he walks in, and announces, ‘Ideas must be in the air. I have something very similar,’ and throws his completed design on screen. Guess who won.’’

Marshall presents a continuing challenge to company management, having both incredible positive and negative influence on the culture. While his contributions to design and profits far exceed those of other employees, his negative effect on the culture and his team’s creativity and morale results in the loss of talented people and a climate of suspicion and discontent. His threat, ‘‘I can take my talents elsewhere,’’ hangs over top management like a sledge hammer.

Now, Craddock and Leslie Warren, other talented members of the design team, have approached management with their own ultimatum: Do something about Marshall or we resign.


1. If you were a top leader, how would you respond to the ultimatum? Be specific. Explain why.

2. What is Marshall missing with respect to his leadership abilities? How do you explain his poor leadership behavior?

3. If you were Marshall’s manager, how might you increase Marshall’s awareness of the negative impact he is having on his team? How would you guide him toward better team leadership, sharing his knowledge with others, and mentoring his team members?

REFERENCES 1. Nancy F. Koehn, ‘‘Lincoln’s School of Management,’’ The New York

Times (January 26, 2013); Catherine L. Moreton, ‘‘10 Qualities That Make Abraham Lincoln a Great Leader,’’ HR and Employment Law White Papers, Business and Legal Resources (June 25, 2008), https://hr.blr.com/whitepapers/Staffing-Training/Leadership/10-Qualities- that-Made-Abraham-Lincoln-a-Great-Lea (accessed March 4, 2013);

Hitendra Wadhwa, ‘‘Lessons in Leadership: How Lincoln Became America’s Greatest President,’’ Inc.com (February 12, 2012), http://www. inc.com/hitendra-wadhwa/lessons-in-leadership-how-abraham-lincoln- became-americas-greatest-president.html (accessedMarch 4, 2013); and Richard Brookhiser, ‘‘What Would Lincoln Do’’ Modern-Day Leaders Could Learn a Lot from Our 16th President (February 14, 2014),


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http://online.wsj.com/news/articles/SB10001424052702303 704304579382882084406374?mod=WSJ_hppMIDDLENexttoWhats- NewsSecond (accessed October 5, 2015). The Howard Schultz quote is fromKoehn.

2. David Rothkopf, ‘‘Somebody Take Control. (Anybody. Really. Please.): Where Are All the Leaders?’’ The Washington Post (March 29, 2009), p. B1.

3. Thanks to Doug Moran, ‘‘Great Leadership,’’ Leadership Excellence (September 2011), p. 18, for this analogy.

4. John F. Burns and Stephen Castle, ‘‘BBC’s Leaders Faulted as Lax in Handling Sex Abuse Crisis,’’ The New York Times (December 19, 2012), http://www.nytimes.com/2012/12/20/world/europe/pollard-report-bbc- jimmy-savile-sexual-abuse-inquiry.html?pagewanted=all&_r=0 (accessed March 4, 2013).

5. ‘‘Sen.Grassley Probes Televangelists’ Finances,’’USATODAY (November 7, 2007), http://usatoday30.usatoday.com/news/washington/2007-11-07- televangelist-probe_N.htm (accessedMarch 4, 2013).

6. See various surveys and studies reported in Paul Harris, ‘‘Leadership Role Models Earn Trust and Profits,’’ TþTþT D 64, no. 3 (2010), pp. 47–50.

7. Gary Cohen, ‘‘Defining Leadership,’’ Leadership Excellence (August 2009), pp. 16–17; Warren Bennis and Burt Nanus, Leaders: The Strat- egies for Taking Charge (New York: Harper & Row, 1985), p. 4; and James MacGregor Burns, Leadership (New York: Harper & Row, 1978), p. 2.

8. J. Meindl, S. Ehrlich, and J. Dukerich, ‘‘The Romance of Leadership,’’ Administrative Science Quarterly 30 (1985), pp. 78–102; and Mitchell C. Bligh, Jeffrey C. Kohles, and Rajnandini Pillai, ‘‘Romancing Leader- ship: Past, Present, Future,’’ The Leadership Quarterly 22 (2011), pp. 1058–1077.

9. Rakesh Khurana, ‘‘The Curse of the Superstar CEO,’’ Harvard Busi- ness Review (September 2002), pp. 60–66.

10. Khurana, ‘‘The Curse of the Superstar CEO’’; Mitch McCrimmon, ‘‘The Ideal Leader,’’ Ivey Business Journal (January–February 2011); Joseph A. Raelin, ‘‘The Myth of Charismatic Leaders,’’ Training and Development (March 2003), p. 46; and Betsy Morris, ‘‘The New Rules,’’ Fortune (July 24, 2006), pp. 70–87.

11. Joseph C. Rost, Leadership for the Twenty-First Century (Westport, CT: Praeger, 1993), p. 102; and Joseph C. Rost and Richard A. Barker, ‘‘Leadership Education in Colleges: Toward a 21st Century Para- digm,’’ The Journal of Leadership Studies 7, no. 1 (2000), pp. 3–12.

12. Peter B. Smith and Mark F. Peterson, Leadership, Organizations, and Culture: An Event Management Model (London: Sage Publications, 1988), p. 14.

13. Robert E. Kelley, ‘‘In Praise of Followers,’’ Harvard Business Review (November–December 1988), pp. 142–148.

14. Bill George, ‘‘Truly Authentic Leadership’’ (Special Report: America’s Best Leaders),U.S. News&World Report (October 30, 2006), pp. 52–53; Victoria Strauss, ‘‘It’s Time for Teach for America to Fold: Former TFAer,’’ (The Answer Sheet blog), The Washington Post (February 28, 2013), http://www.washingtonpost.com/blogs/answer-sheet/wp/2013/02/28/its- time-for-teach-for-america-to-fold-former-tfaer/ (accessed March 5, 2013); and ‘‘Is Teach for AmericaWorking?’’ (Room for Debate Opinion Page), The New York Times (August 30, 2012), http://www.nytimes. com/roomfordebate/2012/08/30/is-teach-for-america-working/ (accessed March 5, 2013).

15. ‘‘Barbara Van Dahlen’’ segment in ‘‘The World’s 100 Most Influential People 2012,’’ Time http://www.time.com/time/specials/packages/article/ 0,28804,2111975_2111976,00.html (accessed March 4, 2013); and Barbara Van Dahlen, ‘‘Recognizing Options for Healing This Veterans Day,’’Huffington Post (November 13, 2012), http://www.huffingtonpost. com/barbara-van-dahlen-phd/veterans-health-care_b_2092411.html (accessed March 4, 2013).

16. Scott R. Schmedel, ‘‘Making a Difference,’’ The Wall Street Journal (August 21, 2006), pp. R5, R12; and ‘‘More Than Wheels: About,’’ http://www.morethanwheels.org/about (accessed March 5, 2012).

17. These changes and challenges are based in part on Thomas W. Mal- night and Tracey S. Keys, ‘‘The Great Power Shift: 10 Trends Business Leaders Need to Watch in 2013,’’ as reported in ‘‘The World in 2013: Global Trends for 2013; A Top Ten for Business Leaders,’’ Cassandra blog, The Economist (November 26, 2012), http://www.economist. com/blogs/theworldin2013/2012/11/global-trends-2013 (accessedMarch 5, 2013). The complete Global Trends 2013 report is available for purchase at http://www.globaltrends.com/reports/gt-2013

18. Center for Creative Leadership survey reported in Andre Martin, ‘‘What Is Effective Leadership Today? A New Study Finds Collabora- tion Prized over Heroics,’’ Chief Executive (July–August 2006), p. 24.

19. This discussion is based on Dominic Barton, Andrew Grant, and Michelle Horn, ‘‘Leading in the 21st Century,’’ McKinsey Quarterly, no. 3 (2012), pp. 30–47; Olivia Parr Rud, ‘‘Book Highlight—Adaptability: A Key to Business Intelligence Success,’’ Global Business and Organiza- tional Excellence (January–February 2010), pp. 76–85; Ken Shelton, ‘‘Reinventing Leadership,’’ Leadership Excellence (July 2012), p. 9; Fahri Karakas, ‘‘The Twenty-First Century Leader: Social Artist, Spiritual Visionary, and Cultural Innovator,’’ Global Business and Organizational Excellence (March/April 2007), pp. 44–50; Daniel C. Kielson, ‘‘Leader- ship: Creating a New Reality,’’ The Journal of Leadership Studies 3, no. 4 (1996), pp. 104–116; and Mark A. Abramson, ‘‘Leadership for the Future: New Behaviors, New Roles, and New Attitudes,’’ The Public Manager (Spring 1997).

20. Norihiko Shirouzu, Phred Dvorak, Yuka Hayashi, and Andrew Morse, ‘‘Bid to ‘Protect Assets’ Slowed Reactor Fight,’’ The Wall Street Journal (March 19, 2011), http://online.wsj.com/article/SB1000142405274870 4608504576207912642629904.html (accessed August 6, 20120); and Peter Valdes-Dapena, ‘‘Japan Earthquake Impact Hits U.S. Auto Plants,’’ CNNMoney (March 30, 2011), http://money.cnn.com/2011/ 03/28/autos/japan_earthquake_autos_outlook/index.htm# (accessed June 13, 2012).

21. William Boston and Sarah Sloat, ‘‘Volkswagen Emissions Scandal Relates to 11 Million Cars,’’ The Wall Street Journal (September 22, 2015), http://www.wsj.com/articles/volkswagen-emissions-scandal-relates- to-11-million-cars-1442916906 (accessed October 5, 2015), and Jack Ewing, ‘‘Diesel Scandal at VW Spreads to Core Market,’’ The New York Times (September 23, 2015), p. A1.

22. Vanessa Fuhrmans, and Dana Cimilluca, ‘‘Business Braces for Europe’s Worst—Multinationals Scramble to Protect Cash, Revise Contracts, Tighten Payment Terms,’’ The Wall Street Journal (June 1, 2012), p. B1.

23. Quoted in Barton et al., ‘‘Leading in the 21st Century.’’ 24. Quoted in Barton et al., ‘‘Leading in the 21st Century.’’ 25. Charles Handy, The Age of Paradox (Boston: Harvard Business School

Press, 1994), pp. 146–147; and Geoff Colvin, ‘‘Leader Machines,’’ For- tune (October 1, 2007), pp. 98–106.

26. J. P. Donlon, ‘‘What, Put Your Customers Second? Are You Kidding?’’ (CEO Chronicles), Chief Executive (November–December 2010), pp. 14–16; ‘‘HCL Technologies CEO, Vineet Nayar, Gets ‘Leader in the Digital Age’ Award at CeBIT 2011,’’ Entertainment Close-Up (March 11, 2011); and Stephen Denning, ‘‘Masterclass: The Reinvention of Management,’’ Strategy & Leadership 39, no. 2 (2011), pp. 9–17.

27. Vineet Nayar, Employees First, Customers Second: Turning Conven- tional Management Upside Down (Boston: Harvard Business Review Press, 2010).

28. Herminia Ibarra and Morten T. Hansen, ‘‘Are You a Collaborative Leader?’’ Harvard Business Review (July–August 2011), pp. 69–74.

29. Ibarra and Hansen, ‘‘Are You a Collaborative Leader?’’; and Sally Hel- gesen, ‘‘Leading in 24/7: What Is Required?’’ Leader to Leader (Summer 2012), pp. 38–43.

30. Barton et al., ‘‘Leading in the 21st Century.’’ 31. See James Collins, Good to Great: Why Some Companies Make the

Leap . . . and Others Don’t (New York: HarperCollins, 2001); Charles A. O’Reilly III and Jeffrey Pfeffer, Hidden Value: How Great Compa- nies Achieve Extraordinary Results with Ordinary People (Boston:


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Harvard Business School Press, 2000); Rakesh Khurana, Searching for a Corporate Savior: The Irrational Quest for Charismatic CEOs (Princeton, NJ: Princeton University Press, 2002); Joseph Badaracco, Leading Quietly (Boston: Harvard Business School Press, 2002); Jason Jennings, Think Big, Act Small: How America’s Best Performing Com- panies Keep the Startup Spirit Alive (New York: Portfolio/Penguin, 2005); Ryan Underwood, ‘‘The CEO Next Door,’’ Fast Company (September 2005), pp. 64–66; and Linda Tischler, ‘‘The CEO’s New Clothes,’’ Fast Company (September 2005), pp. 27–28.

32. David Brooks, ‘‘The Humble Hound,’’ The New York Times (April 10, 2010), p. A27; Charalambos A. Vlachoutsicos, ‘‘How to Cultivate Engaged Employees,’’ Harvard Business Review (September 2011), pp. 123–126; and Rob Nielsen, Jennifer A. Marrone, and Holly S. Slay, ‘‘A New Look at Humility: Exploring the Humility Concept and Its Role in Socialized Charismatic Leadership,’’ Journal of Leadership and Organizational Science 17, no. 1 (2010), pp. 33–43.

33. Amy Y. Ou, Anne S. Tsui, Angelo J. Kinicki, David A. Waldman, Zhixing Xiao, and Lynda Jiwen Song, ‘‘Humble Chief Executive Offi- cers’ Connections to Top Management Team Integration and Middle Managers’ Responses,’’ Administrative Science Quarterly 59, no. 1 (March 2014): 34–72; and Laurie Merrill, ‘‘Study Finds Humble Bosses Are Best,’’ USA Today (July 30, 2014), http://www.usatoday. com/story/money/business/2014/07/30/asu-study-humble-bosses-b- est/13352105/ (accessed October 5, 2015).

34. Jim Collins, ‘‘Level 5 Leadership: The Triumph of Humility and Fierce Resolve,’’ Harvard Business Review (January 2001), pp. 67–76; Col- lins, ‘‘Good to Great,’’ Fast Company (October 2001), pp. 90–104; Edward Prewitt, ‘‘The Utility of Humility,’’ CIO (December 1, 2002), pp. 104–110; A. J. Vogl, ‘‘Onward and Upward’’ (an interview with Jim Collins), Across the Board (September–October 2001), pp. 29–34; and Stefan Stern, ‘‘A New Leadership Blueprint,’’ Management Today (October 1, 2010), http://www.managementtoday.co.uk/features/ 1032244/a-new-blueprint-leaders/ (accessed March 13, 2013).

35. As described in Stefan Stern, ‘‘A New Leadership Blueprint,’’ Manage- ment Today (October 1, 2010), p. 38.

36. Noah Rayman, ‘‘5 Leadership Lessons You Can Learn from Pope Francis,’’ Time (March 10, 2015), http://time.com/3737887/pope-francis-leadership- lessons/ (accessed October 6, 2015); William Vanderbloemen, ‘‘5 Leader- ship Lessons from Pope Francis,’’ Fast Company (September 25, 2015), http://www.fastcompany.com/3051514/know-it-all/5-lessons-every-leader- can-learn-from-pope-francis (accessed October 6, 2015); Minda Zetlin, ‘‘Why Pope Francis Is So Effective: 8 Lessons for Every Leader,’’ Inc. (August 1, 2014), http://www.inc.com/minda-zetlin/why-pope-francis-is- so-effective-8-lessons-for-every-leader.html (accessed October 6, 2015); Ben Brumfield, ‘‘Pope Francis Surprised by Warmth of Americans and Devoutness of the Faithful,’’ CNN (September 28, 2015), http://www.cnn. com/2015/09/28/us/pope-trip-wrap-vatican/ (accessed October 6, 2015); and Susan Cramm, ‘‘Leadership Gone Viral,’’ Strategyþ Business (January 17, 2014), http://www.strategy-business.com/blog/Leadership-Gone- Viral?gko=96623 (accessed October 6, 2015).

37. Gary Yukl and Richard Lepsinger, ‘‘Why Integrating the Leading and Managing Roles Is Essential for Organizational Effectiveness,’’ Organi- zational Dynamics 34, no. 4 (2005), pp. 361–375; Henry Mintzberg, Managing (San Francisco: Berrett-Koehler, 2009); Andrew Saunders, ‘‘Rebuilding Management’s Good Name,’’ Management Today (May 2011), pp. 44–46; John Kotter, ‘‘Change Leadership: How Can You Accelerate Results?’’ Leadership Excellence (January 2013), pp. 6–7; and Alan Murray, ‘‘What Is the Difference Between Management and Leadership?’’ The Wall Street Journal (2009), http://guides.wsj.com/ management/developing-a-leadership-style/what-is-the-difference-between- management-and-leadership/ (accessed June 28, 2009).

38. This section is based on John P. Kotter, A Force for Change: How Leadership Differs from Management (New York: The Free Press, 1990), pp. 3–18; John P. Kotter, ‘‘What Leaders Really Do,’’ Harvard Business Review (December 2001), pp. 85–96; and ideas in Kevin

Cashman, ‘‘Lead with Energy: Apply the Resilience Principle,’’ Leader- ship 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), http://www.forbes.com/sites/mikemaddock/2012/09/26/the-one- talent-that-makes-good-leaders-great/ (accessed March 7, 2013).

39. Warren Bennis, Why Leaders Can’t Lead (San Francisco: Jossey Bass, 1989).

40. Abraham Zaleznik, ‘‘Managers and Leaders: Are They Different?’’ Harvard Business Review (March–April 1992), pp. 126–135; David Rooke and William R. Torbert, ‘‘7 Transformations of Leadership,’’ Harvard Business Review (April 2005), pp. 67–76; and Rooke and Torbert, Action Inquiry: The Secret of Timely and Transforming Lead- ership (San Francisco: Berrett-Koehler, 2004).

41. Jim Boneau and Gregg Thompson, ‘‘Leadership 4.0: It’s a Brave New Approach,’’ Leadership Excellence (January 2013), p. 6.

42. Based on Susan R. Komives, Nance Lucas, and Timothy R. McMahon, Exploring Leadership: For College Students Who Want to Make a Dif- ference (San Francisco: Jossey-Bass Publishers, 1998); and Shann R. Ferch and Matthew M. Mitchell, ‘‘Intentional Forgiveness in Rela- tional Leadership: A Technique for Enhancing Effective Leadership,’’ The Journal of Leadership Studies 7, no. 4 (2001), pp. 70–83.

43. This discussion draws ideas from Boneau and Thompson, ‘‘Leadership 4.0: It’s a Brave New Approach.’’

44. Craig L. Pearce, ‘‘The Future of Leadership: Combining Vertical and Shared Leadership to Transform Knowledge Work,’’ Academy of Man- agement Executive 18, no. 1 (2004), pp. 47–57.

45. Yi Zhang, Jean Brittain Leslie, and Kelly M. Hannum, ‘‘Trouble Ahead: Derailment Is Alive and Well,’’ Thunderbird International Business Review 55, no. 1 (January–February 2013), pp. 95–102.

46. See studies reported in Joyce Hogan, Robert Hogan, and Robert B. Kaiser, ‘‘Management Derailment: Personality Assessment and Mitiga- tion,’’ Hogan Assessment Systems, http://www.hoganassessments.com/ _hoganweb/documents/Management_Derailment.pdf.

47. Yi Zhang et al., ‘‘Trouble Ahead: Derailment Is Alive and Well’’; and Morgan W. McCall Jr. and Michael M. Lombardo, ‘‘Off the Track: Why and How Successful Executives Get Derailed’’ (Technical Report No. 21), (Greensboro, NC: Center for Creative Leadership, January 1983).

48. Hogan et al., ‘‘Management Derailment: Personality Assessment and Mitigation’’; George Kohlrieser, ‘‘People Mistakes: These 10 Are Very Dangerous,’’ Leadership Excellence (October 2012), p. 16; Clinton O. Longenecker and Laurence S. Fink, ‘‘Fixing Management’s Fatal Flaws,’’ Industrial Management (July–August 2012), pp. 12–17; E. Van Velsor and J. B. Leslie, ‘‘Why Executives Derail: Perspectives Across Time and Cultures,’’ Academy of Management Executive 9, no. 4 (1995), pp. 62–72; and Morgan W. McCall Jr. and Michael M. Lombardo, ‘‘Off the Track: Why and How Successful Executives Get Derailed’’ (Technical Report No. 21), (Greensboro, NC: Center for Creative Leadership, January 1983).

49. Ram Charan and Geoffrey Colvin, ‘‘Why CEOs Fail,’’ Fortune (June 21, 1999), pp. 68–78.

50. This example is based on Farhad Manjoo, ‘‘The Happiness Machine: How Google Became Such a Great Place to Work,’’ Slate Magazine, http://www.slate.com/articles/technology/technology/2013/01/google_ people_operations_the_secrets_of_the_world_s_most_scientific_human. html (accessed March 8, 2013); and David A. Garvin, ‘‘How Google Sold Its Engineers on Management,’’ Harvard Business Review (December 2013), pp. 74–82.

51. List of Google’s Rules from Adam Bryant, ‘‘Google’s Quest to Build a Better Boss,’’ The New York Times (March 12, 2011).

52. Survey by the Center for Creative Leadership, reported in Phaedra Broth- erton, ‘‘Leadership: Nature or Nurture?’’ TþTþT D (February 2013), p. 25.

53. Russell Palmer, ‘‘Can Leadership Be Learned?’’ Business Today (Fall 1989), pp. 100–102.


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Part 2: Research Perspectives on Leadership

Chapter 2: Traits, Behaviors, and Relationships

Chapter 3: Contingency Approaches to Leadership

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Chapter 2: Traits, Behaviors, and Relationships

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YOUR LEADERSHIP CHALLENGE After reading this chapter, you should be able to:

• Outline some personal traits and characteristics that are associated with effective leaders. • Identify your own traits that you can transform into strengths and bring to a leadership role. • Distinguish among various roles leaders play in organizations, including operations roles, collaborative roles, and advisory roles, and where your strengths might best fit.

• Recognize autocratic versus democratic leadership behavior and the impact of each. • Know the distinction between people-oriented and task-oriented leadership behavior and when each should be used.

• Understand how the theory of individualized leadership has broadened the understanding of relationships between leaders and followers.

• Describe some key characteristics of entrepreneurial leaders.

CHAPTER OUTLINE 36 The Trait Approach

41 Know Your Strengths

43 Behavior Approaches

52 Individualized Leadership

55 Entrepreneurial Traits and Behaviors

In the Lead

40 Marissa Mayer, Yahoo

45 Warren Buffett, Berkshire Hathaway

47 Col. Joe D. Dowdy and Maj. Gen. James Mattis, U.S. Marine Corps

50 Denise Morrison, Campbell Soup Company, and Michael Arring- ton, TechCrunch

Leader’s Self-Insight

40 Rate Your Optimism

47 What’s Your Leadership Orientation?

55 Your ‘‘LMX’’ Relationship

Leader’s Bookshelf

38 Give and Take: A Revolutionary Approach to Success

Leadership at Work

58 Your Ideal Leader Traits

Leadership Development: Cases for Analysis

58 Consolidated Products

60 Transition to Leadership

Soon after her husband was elected the first African American president in theUnited States, Michelle Obama appeared on ‘‘The Tonight Show’’ wearing astylish outfit consisting of a pencil skirt, a yellow and brown tank top, and a mustard yellow cardigan. When then-host Jay Leno asked about her wardrobe, say- ing ‘‘I’m guessing about 60 grand? Sixty, 70 thousand for that outfit?’’ she replied, ‘‘Actually, this is a J. Crew ensemble.’’ The audience roared. Obama also incorpo- rated J. Crew items into her inauguration look. The man behind J. Crew, Millard S. (Mickey) Drexler, is a retail legend, known as both a visionary and something of a control freak. He turned Gap into a global fashion powerhouse in the 1990s, started Old Navy a decade or so later, and transformed J. Crew into a cult brand in the early years of the twenty-first century. When he took over as CEO, J. Crew was deeply in debt and struggling to survive. At the age of 70, Drexler is still going strong, but his leadership style and tendency to micromanage and focus on every detail, from vetting every new employee to deciding on the size of pockets or the look of a label, has recently come under scrutiny. By late 2015, even though J. Crew was still popular, sales were falling and the magic was fading. Yet owners continued to support Drexler and give him free rein as CEO. ‘‘Call it ‘the great man’ problem,’’

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one New York Times reporter phrased it, questioning whether any company should be so closely tied to the characteristics, style, and actions of one individual.1

We introduced the idea of ‘‘Great Man’’ leadership in Chapter 1, and the Mickey Drexler example shows that the concept hasn’t completely died. The earliest leadership studies proposed that certain people had natural traits and abilities of power and influence that enabled them to put everything together and influence others in a way that other people could not. Although few today would argue that leadership is based on inborn traits, interest in the characteristics that define a good leader continues. As this example illustrates, current thinking on leadership incorpo- rates a variety of ideas and concepts from the past.

Personal traits captured the imagination of the earliest leadership researchers, but if we look at any two successful and effective leaders they will likely share some traits but have others that are quite dissimilar. Each individual has a unique set of qualities, characteristics, and strengths to bring to a leadership role. In addition, leaders can learn to overcome some potentially limiting traits, such as a lack of self- confidence or a quick temper. Consequently, many researchers have examined the behavior of leaders to determine what behavioral features comprise leadership style and how particular behaviors relate to effective leadership.

This chapter first examines the evolution of the trait approach and the impor- tance of leaders understanding and applying their own unique leadership strengths. Then we provide an overview of the behavior approach and introduce the theory of individualized leadership, which looks at behavior between a leader and each indi- vidual follower, differentiating one-on-one behavior from leader-to-group behavior. The path illuminated by the research into leader traits and behaviors is a foundation for the field of leadership studies and still enjoys remarkable dynamism for explain- ing leader success or failure.

2-1 THE TRAIT APPROACH Traits are the distinguishing personal characteristics of a leader, such as intelligence, honesty, self-confidence, and appearance. Research early in the twentieth century examined leaders who had achieved a level of greatness and hence became known as the Great Man approach. Fundamental to this theory was the idea that some peo- ple are born with traits that make them natural leaders. The Great Man approach sought to identify the traits leaders possessed that distinguished them from people who were not leaders. Generally, research found only a weak relationship between personal traits and leader success.2 Indeed, the diversity of traits that effective lead- ers possess indicates that leadership ability is not a genetic endowment.

Nevertheless, with the advancement of the field of psychology during the 1940s and 1950s, trait approach researchers expanded their examination of personal attributes by using aptitude and psychological tests. These early studies looked at personality traits such as creativity and self-confidence, physical traits such as age and energy level, abilities such as knowledge and fluency of speech, social character- istics such as popularity and sociability, and work-related characteristics such as the desire to excel and persistence against obstacles.3

In a 1948 literature review,4 Stogdill examined more than 100 studies based on the trait approach. He uncovered several traits that appeared consistent with effec- tive leadership, including general intelligence, initiative, interpersonal skills, self- confidence, drive for responsibility, and personal integrity. Stogdill’s findings also

Traits the distinguishing personal characteristics of a leader, such as intelligence, hon- esty, self-confidence, and appearance

Great Man approach a leadership perspective that sought to identify the inher- ited traits leaders possessed that distinguished them from people who were not leaders


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indicated, however, that the importance of a particular trait was often relative to the situation. Initiative, for example, may contribute to the success of a leader in an en- trepreneurial situation, but it may be irrelevant to a leader in a stable bureaucracy. Thus, possessing certain personal characteristics is no guarantee of success.

Many researchers discontinued their efforts to identify leadership traits in light of Stogdill’s 1948 findings and turned their attention to examining leader behavior and leadership situations. However, others continued with expanded trait lists and research projects. Stogdill’s subsequent review of 163 trait studies conducted between 1948 and 1970 concluded that some personal traits do indeed seem to con- tribute to effective leadership.5 The study identified many of the same traits found in the 1948 survey, along with several additional characteristics, including aggressive- ness, independence, and tolerance for stress. However, Stogdill again cautioned that the value of a particular trait or set of traits varies with the organizational situation.

In recent years, there has been a resurgence of interest in examining leadership traits. A review by Kirkpatrick and Locke identified a number of personal traits that distinguish leaders from nonleaders, including some pinpointed by Stogdill.6 Other studies have focused on followers’ perceptions and indicate that certain traits are associated with peo- ple’s perceptions of who is a leader. For example, one study found that the traits of intelli- gence, masculinity, and dominance were strongly related to how individuals perceived leaders.7 Others have found that charismatic CEOs are perceived to be more effective than other leaders, even though there is no evidence showing they actually are.8

In summary, trait research has been an important part of leadership studies throughout the twentieth century and continues into the twenty-first, as illustrated by this chapter’s Leader’s Bookshelf, which suggests that a trait of selflessness is the secret to genuine and lasting leadership success. Several other traits, including opti- mism and a cheerful attitude, have recently gained attention as important for suc- cessful leaders. Britain’s Royal Navy takes cheerfulness so seriously that it tracks how leader cheerfulness affects morale and effectiveness.9 As discussed in Chapter 1, humility, including a willingness to admit mistakes and make oneself vulnerable, has emerged as an important trait in today’s collaborative world.10

Exhibit 2.1 presents some of the traits and their respective categories that have been identified through trait research over the years. Many researchers still contend that some traits are essential to effective leadership, but only in combination with other factors.11 A few traits typically considered highly important for leadership are optimism, self-confidence, honesty and integrity, and drive.

2-1a Optimism and Self-Confidence Recent research points to a positive outlook and a cheerful attitude as keys to effec- tive leadership.12 Optimism refers to a tendency to see the positive side of things and expect that things will turn out well. Numerous surveys indicate that optimism is the single characteristic most common to top executives. People rise to the top because they can see opportunities where others see problems and can instill in others a sense of hope for the future. Leaders at all levels need some degree of opti- mism to see possibilities even through the thickest fog and rally people around a vision for a better tomorrow. Although hundreds of experiments support the notion that people possess ingrained tendencies toward either optimism or pessimism, lead- ers can train themselves to deliberately focus on the positive rather than the negative and interpret situations in more positive, optimistic ways.13

A related characteristic is having a positive attitude about oneself. Leaders who know themselves develop self-confidence, which is general assurance in one’s own

Optimism a tendency to see the posi- tive side of things and expect that things will turn out well

What I’ve really learned over time is that optimism is a very, very important part of leadership. . . . People don’t like to follow pessimists. Robert Iger, Chairman and CEO of The Walt Disney Company

Self-confidence assurance in one’s own judgments, decision making, ideas, and capabilities

NEW LEADER ACTION MEMO People generally prefer to follow leaders who are optimistic rather than pessimistic about the future. Complete the questionnaire in Leader’s Self-Insight 2.1 to assess your level of optimism.


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judgments, decision making, ideas, and capabilities. Self-confidence doesn’t mean being arrogant and prideful but rather knowing and trusting in oneself. Self-confi- dence is related to self-efficacy, which refers to a person’s strong belief that he or she can successfully accomplish a specific task or outcome.14 A leader who has a posi- tive self-image and displays certainty about his or her own ability to achieve an out- come fosters confidence among followers, gains respect and admiration, and creates motivation and commitment among followers for the mission at hand.

Active leaders need self-confidence and optimism. How many of us willingly fol- low someone who is jaded and pessimistic, or someone who obviously doesn’t believe in himself or herself? Leaders initiate change, and they often must make decisions without adequate information. Without the confidence to move forward and believe things will be okay, even if an occasional decision is wrong, leaders could be para- lyzed into inaction. Setbacks have to be overcome. Risks have to be taken. Competing points of view have to be managed, with some people left unsatisfied. The characteris- tics of optimism and self-confidence enable a leader to face all these challenges.15

2-1b Honesty and Integrity Positive attitudes have to be tempered by strong ethics or leaders can get into trou- ble. Consider Bernard Madoff, who masterminded the largest financial fraud in his- tory and was sent to jail on 11 criminal charges, including securities fraud and perjury. As a leader, Madoff displayed strong self-confidence and optimism, which is

LEADER’S BOOKSHELF Give and Take: A Revolutionary Approach to Success

by Adam Grant

Contrary to popular belief, good guys don’t always finish last. In fact, in the book Give and Take: A Revolutionary Approach to Success, Adam Grant asserts that a trait of selflessness can help leaders be more effective and more successful. Grant, the youngest tenured professor ever at the Wharton School at the University of Pennsylva- nia, suggests that good leaders are those who give the most and view their success as ‘‘individual achievements that have a positive impact on others.’’

ARE YOU A GIVER, A TAKER, OR A MATCHER? Grant proposes that we all assume one of three basic approaches toward others— that of a giver, agiver, agiver taker, or ataker, or ataker matcher.matcher.matcher

• Givers focus on what others need and give selflessly. They give time and energy, or anything else that is asked of them, without expecting anything in return. Grant uses the example of billionaire Jon Huntsman Sr., founder of Huntsman Chemical,

who once left $200 million on the ta- ble when negotiating with a man whose wife had just died, simply because he thought it was the right thing to do. As leaders, givers more easily delegate and collaborate with others, listen to others, give credit to others, and share power and responsibility.

• Takers put their own interests first. Takers are selfish people who want to win, no matter who else loses. As leaders, they typically try to influence others by gaining dominance and control over them. They collaborate only when it benefits them person- ally and rarely share credit for suc- cesses. Takers often win in the short run but they are much less likely to build success over the long term.

• Matchers strive for a balance of giving and taking. Matchers try to achieve an equal balance between what they give and what they get in return. As leaders, they network and collaborate strategically, expecting

something in return that will be of benefit to them. They play a jug- gling act in an effort to serve their individual interests while still being fair to others.

DOES IT PAY TO BE NICE? Grant applies scientific research and weaves in numerous real-life stories to support his premise that givers end up being the most successful among the three groups. His advice is to ‘‘focus attention and energy on making a dif- ference in the lives of others, and suc- cess might follow as a by-product.’’ Leaders who are givers help a wide range of people in the organization, de- velop everyone’s skills to support the greater good, and strive to bring out the best in everyone. By investing in the success of their followers, leaders who are givers build their own success and a legacy of enduring greatness.

Source: Give and Take, by Adam Grant, is pub- lished by Viking.

NEW LEADER ACTION MEMO As a leader, you can develop the personal traits of self- confidence, integrity, and drive, which are important for successful leadership in every organization and situation. You can work to keep an optimistic attitude and be ethical in your decisions and actions.

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one reason he was able to attract so many investors. The problem was that he didn’t have a strong ethical grounding to match. Due to Madoff’s scam, thousands of people were swindled out of their life’s savings, charities and foundations were ruined, and pension funds were wiped out, while Madoff and his wife lived in luxury.16

Effective leaders are ethical leaders. One aspect of being an ethical leader is being honest with followers, customers, shareholders, and the public, and maintain- ing one’s integrity. Honesty refers to truthfulness and nondeception. It implies an openness that followers welcome. Integrity means that a leader’s character is whole, integrated, and grounded in solid ethical principles, and he or she acts in keeping with those principles. Leaders who model their ethical convictions through their daily actions command admiration, respect, and loyalty. Honesty and integrity are the foundation of trust between leaders and followers.

Sadly, trust is sorely lacking in many organizations following years of corporate scandals and rampant greed. Leaders need the traits of honesty and integrity to rebuild trusting and productive relationships. People today are wary of authority and the deceptive use of power, and they are hungry for leaders who hold high moral standards. Successful leaders have also been found to be highly consistent, doing exactly what they say they will do when they say they will do it. Successful leaders prove themselves trustworthy. They adhere to basic ethical principles and consistently apply them in their leadership. One survey of 1,500 managers asked the values most desired in leaders. Honesty and integrity topped the list. The authors concluded:

Honesty is absolutely essential to leadership. After all, if we are willing to follow someone, whether it be into battle or into the boardroom, we first want to assure ourselves that the person is worthy of our trust. We want to know that he or she is being truthful, ethical, and principled. We want to be fully confident in the in- tegrity of our leaders.17

EXHIBIT 2.1 Some Leader Characteristics

Personal Characteristics Social Characteristics Energy Sociability, interpersonal skills Passion Cooperativeness Humility Ability to enlist cooperation Physical stamina Tact, diplomacy Intelligence and Ability Work-Related Characteristics Intelligence, cognitive ability Drive, desire to excel Knowledge Dependability Judgment, decisiveness Fair-mindedness Personality Perseverance, tenacity Optimism Social Background Cheerfulness Education Self-confidence Mobility Honesty and integrity Charisma Desire to lead Independence

Sources: Bass and Stogdill’s Handbook of Leadership: Theory, Research, and Management Applications, 3rd ed. (New York : The Free Press, 1990), pp. 80–81; S. A. Kirkpatrick and E. A. Locke, ‘‘Leadership: Do Traits Matter?’’ Academy of Management Executive 5, no. 2 (1991), pp. 48–60; and James M. Kouzes and Barry Z. Posner, The Leadership Challenge: How to Get Extraordinary Things Done in Organizations (San Francisco: Jossey-Bass, 1990).

Honesty truthfulness and nondeception

Integrity the quality of being whole and integrated and acting in accordance with solid ethi- cal principles


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2-1c Drive Another characteristic considered essential for effective leadership is drive. Leaders of- ten are responsible for initiating new projects as well as guiding projects to successful completion. Drive refers to high motivation that creates a high effort level by a leader. Leaders with drive seek achievement, have energy and tenacity, and are often per- ceived as ambitious. If people don’t strive to achieve something, they rarely do. Ambi- tion can enable leaders to set challenging goals and take initiative to reach them.18

A strong drive is also associated with high energy. Leaders work long hours over many years. They have stamina and are vigorous and full of life in order to handle the pace, the demands, and the challenges of leadership. During her first two years at Google, Marissa Mayer says she worked 100 hours a week. That pace likely didn’t slow in her job at Yahoo.

LEADER’S SELF-INSIGHT 2.1 Rate Your Optimism

Instructions: This questionnaire is designed to assess your level of optimism as reflected in your hopefulness about the future. There are no right or wrong answers. Please indicate your personal feelings about whether each statement is Mostly False or Mostly True by checking the answer that best describes your attitude or feeling.

Mostly False

Mostly True

1. I nearly always expect a lot from life. ______ ______ 2. I try to anticipate when things will

go wrong. ______ ______ 3. I always see the positive side of

things. ______ ______ 4. I often start out expecting the

worst, although things usually work out okay. ______ ______

5. I expect more good things to happen to me than bad. ______ ______

6. I often feel concern about how things will turn out for me. ______ ______

7. If something can go wrong for me, it usually does. ______ ______

8. Even in difficult times, I usually expect the best. ______ ______

9. I am cheerful and positive most of the time. ______ ______

10. I consider myself an optimistic person. ______ ______

Scoring and Interpretation Give yourself one point for checking Mostly True for items 1, 3, 5, 8, 9, 10. Also give yourself one point for checking Mostly False for items 2, 4, 6, 7. Enter your score here: ______ If your score is 8 or higher, it may mean that you are high on opti- mism. If your score is 3 or less, your view about the future may be pessimistic. For the most part, people like to follow a leader who is optimistic rather than negative about the future. However, too much optimism may exaggerate positive expectations that are never fulfilled. If your score is low, what can you do to view the world through a more optimistic lens?

Source: These questions were created based on several sources.

IN THE LEAD Marissa Mayer, Yahoo Marissa Mayer set herself some tough goals as the new president and CEO of Yahoo, but being tough is part of Mayer’s DNA. Mayer is known for being incredibly energetic and ambitious. She loves hard work and challenge. ‘‘She doesn’t need any sleep,’’ said Craig Silverstein, who worked with her at Google and now develops software for Kahn Academy.

Drive high motivation that creates a high effort level by a leader

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Working 100-hour weeks certainly isn’t necessary for effective leadership, but all leaders have to display drive and energy to be successful. Clearly, various traits such as drive, self-confidence, optimism, and honesty have great value for leaders. One study of 600 executives by Hay Group, a global organizational and human resources consulting firm, found that 75 percent of the successful executives studied possessed the characteristics of self-confidence and drive.20

In Chapter 4, we will further consider individual characteristics and qualities that play a role in leadership effectiveness. However, good leaders know it isn’t about identifying specific individual traits but rather understanding one’s own unique set of strengths and capabilities and learning how to make the most of them.21

2-2 KNOW YOUR STRENGTHS Some people tend to think a leader should have a complete set of skills, characteris- tics, and abilities to handle any problem, challenge, or opportunity that comes along. This myth of the ‘‘complete leader’’ can cause stress and frustration for lead- ers and followers, as well as damage to the organization.22 Interdependence is the key to effective leadership. Sixty percent of leaders in one survey acknowledge that leaders face challenges that go beyond any individual’s capabilities.23 Therefore, the best leaders recognize and hone their strengths while trusting and collaborating with others to make up for their weak points.

Everyone has strengths, but many leaders fail to recognize and apply them, often because they are hampered by the idea that they should be good at everything. Benjamin Franklin referred to wasted strengths as ‘‘sundials in the shade.’’24 Only when leaders understand their strengths can they use these abilities effectively to make their best contribution.

2-2a What Are Strengths? A strength arises from a natural talent that has been supported and reinforced with knowledge and skills.25 Talents can be thought of as innate traits and naturally

That’s clearly an overstatement, but Mayer has demonstrated that she has almost superhuman stamina and a strong drive to succeed. In the early years at Google, she routinely worked 100-hour weeks and occasionally pulled all-nighters. Soon after joining Yahoo as CEO, Mayer had her first baby and returned to work two weeks after the delivery.

Even in high school, Mayer was known as an overachiever who refused to settle for less than the best from herself or others. As captain of the pom-pom squad, she scheduled practices that lasted for hours to make sure everyone was synchronized. It was during her first management job at Google that she incorporated the idea of pushing beyond her comfort zone into her career philosophy. She isn’t afraid to take risks in the interest of helping the team and organization succeed. Mayer created a firestorm of criticism when she issued a policy early in her tenure at Yahoo that employees can no longer work from home, but she stuck by her decision without regrets or apologies. She believes Yahoo is in a crisis situation and to succeed needs the creative energy that comes from people working face to face and side by side. Some people believe she will eventually relax the tough ‘‘all hands in the office’’ policy, since flexibility is another of her characteristics. However, she won’t relax her high standards or the requirement that employees be as dedicated to Yahoo’s success as she is.19

Strength a natural talent or ability that has been supported and reinforced with learned knowledge and skills


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recurring patterns of thought, feeling, and behavior. One person might be naturally outgoing and curious, for example; another might have a natural talent for being organized. Once recognized, talents can be turned into strengths by consciously developing and enhancing them with learning and practice. Unless they are honed and strengthened and put to use, talents are merely aspects of one’s potential.

One neat thing about understanding your strengths is the philosophy ‘‘concen- trate on your strengths, not your weaknesses.’’ You excel in life by maximizing your strengths, not by fixing your weaknesses. When you live and work from your strengths, you are more motivated, competent, and satisfied. Strengths are important because you can focus your life around them, and your energy, enthusiasm, and effectiveness can be the basis of your leadership. Why devote your energy to trying to fix your weaknesses or expend much thought and effort performing tasks that don’t match your strengths? When people use their talents and strengths, they feel good and enjoy their work without extra effort; hence they are effective and make a positive contribution.

How does a leader know which traits or behavior patterns can be turned into strengths? Warren Buffett recommends that people do what fits their natural interests and abilities, which is reflected in the work they like to do. Buffett says he finds inves- ting so much fun that he would do it for free. Buffett tried other work early in his career but found it so unsatisfying that he knew he wouldn’t want to do it for any amount of money. The legendary self-made billionaire and chairman of Berkshire Hathaway was the third richest person in the world in 2015. Yet it isn’t the money that drives him, but the love of the work. His career advice is to find work or a career that you really enjoy, and it will fit the natural strengths of your mental wiring.26

2-2b Matching Strengths with Roles Recent research suggests that different leader strengths might be better suited to dif- ferent types of leadership roles.27 Exhibit 2.2 illustrates three types of leadership roles identified in today’s organizations by a team of experts at Hay Group. The researchers found that, although there is a core set of competencies that all leaders need, there is significant variation in the personal characteristics, behaviors, and skills that correlate with success in the different roles.

The operational role is the closest to a traditional, vertically oriented manage- ment role, where an executive has direct control over people and resources to

EXHIBIT 2.2 Three Types of Leadership Roles

Operational Role Collaborative Role Advisory Role

Vertical management positions

Example: Division President Project Manager Human Resources Manager

Horizontal responsibilities

Providing guidance and support

Operational role a vertically oriented leader- ship role in which an execu- tive has direct control over people and resources and the position power to ac- complish results


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accomplish results. Operational leaders fill traditional line and general management positions in a business, for example. They set goals, establish plans, and get things done primarily through the vertical hierarchy and the use of position power. Opera- tional leaders are doggedly focused on delivering results. They need high self- confidence and tend to be assertive, always pushing forward and raising the bar. Successful operational leaders are typically analytical and knowledgeable, yet they also have the ability to translate their knowledge into a vision that others can become passionate about.

The collaborative role is a horizontal role and includes people such as project managers, matrix managers, and team leaders in today’s more horizontally organ- ized companies. This role, which has grown tremendously in importance in recent years, is quite challenging. Leaders in collaborative roles typically don’t have the strong position power of the operational role. They often work behind the scenes, using their personal power to influence others and get things done. Collaborative leaders need excellent people skills in order to network, build relationships, and obtain agreement through personal influence. They also are highly proactive and te- nacious, and they exhibit extreme flexibility to cope with the ambiguity and uncer- tainty associated with the collaborative role.

Leaders in an advisory role provide guidance and support to other people and departments in the organization. Advisory leadership roles are found, for example, in departments such as legal, finance, and human resources. These leaders are responsible for developing broad organizational capabilities rather than accomplish- ing specific business results. Advisory leaders need great people skills and the ability to influence others through communication, knowledge, and personal persuasion. In addition, leaders in advisory roles need exceptionally high levels of honesty and in- tegrity to build trust and keep the organization on solid ethical ground.

The Hay Group research findings shed new light on the types of roles leaders fill in today’s organizations and emphasize that an individual’s strengths can influence how effective a leader might be in a particular role. Leadership success partly depends on matching leaders with roles where their strengths can be most effective.

2-3 BEHAVIOR APPROACHES As suggested in the previous discussion, strengths are not just personal traits but also patterns of behavior. Rather than looking at an individual’s personal traits, diverse research programs on leadership behavior have sought to uncover the behav- iors that effective leaders engage in. Behaviors can be learned more readily than traits, enabling leadership to be accessible to all.

2-3a Autocratic versus Democratic Behaviors One study that served as a precursor to the behavior approach recognized autocratic and democratic leadership styles. An autocratic leader is one who tends to centralize authority and derive power from position, control of rewards, and coercion. A democratic leader delegates authority to others, encourages participation, relies on subordinates’ knowledge for completion of tasks, and depends on subordinate respect for influence.

The first studies on these leadership behaviors were conducted at the University of Iowa by Kurt Lewin and his associates.28 The research included groups of chil- dren, each with its own designated adult leader who was instructed to act in either

NEW LEADER ACTION MEMO As a leader, you can understand the type of leadership role in which your strengths would be most effective and satisfying. You can pursue an operational, collaborative, or advisory leadership role depending on your natural tendencies.

Collaborative role a horizontal leadership role (such as team leader) in which the leader often works behind the scenes and uses personal power to influence others and get things done.

Advisory role a leadership role that pro- vides advice, guidance, and support to other people and departments in the organi- zation

Autocratic a leader who tends to cen- tralize authority and derive power from position, control of rewards, and coercion

Democratic a leader who delegates authority to others, encour- ages participation, relies on subordinates’ knowledge for completion of tasks, and depends on subordinate respect for influence


Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

an autocratic or a democratic style. These experiments produced some interesting findings. The groups with autocratic leaders performed highly so long as the leader was present to supervise them. However, group members were displeased with the close, autocratic style of leadership, and feelings of hostility frequently arose. The performance of groups who were assigned democratic leaders was almost as good, and these groups were characterized by positive feelings rather than hostility. In addition, under the democratic style of leadership, group members performed well even when the leader was absent. The participative techniques and majority-rule de- cision making used by the democratic leader trained and involved the group mem- bers so that they performed well with or without the leader present. These characteristics of democratic leadership may partly explain why the empowerment of employees is a popular trend in companies today. This chapter’s Consider This box presents the notion that democratic leaders may get better results because they allow followers to feel their own power and worth.

This early work implied that leaders were either autocratic or democratic in their approach. However, further work by Tannenbaum and Schmidt indicated that leadership behavior could exist on a continuum reflecting different amounts of em- ployee participation.29 Thus, one leader might be autocratic (boss-centered), another democratic (subordinate-centered), and a third a mix of the two styles. Exhibit 2.3 illustrates the leadership continuum.

Tannenbaum and Schmidt also suggested that the extent to which leaders should be boss-centered or subordinate-centered depended on organizational circumstances and that leaders might adjust their behaviors to fit the circumstances. For example, if there is time pressure on a leader, or if it takes too long for subordinates to learn how to make decisions, the leader will tend to use an autocratic style. When subordinates are able to learn decision-making skills readily, a democratic style can be used. Also, the greater the skill difference, the more autocratic the leader approach because it is difficult to bring subordinates up to the leader’s expertise level.30

ConsiderThis! Minimal Leadership

When the Master governs, the people are hardly aware that he [she] exists. Next best is a leader who is loved. Next, one who is feared. The worst is one who is despised. If you don’t trust the people, you make them untrustworthy. The Master doesn’t talk, he [she] acts. When his [her] work is done, the people say, ‘‘Amazing: we did it all by ourselves.’’

Source: From Tao Te Ching, translated by S. Mitchell, (New York: Harper Perennial, 1988), p. 17.

NEW LEADER ACTION MEMO As a leader, you can use a democratic leadership style to help followers develop decision-making skills and perform well without close supervision. An autocratic style might be appropriate when there is time pressure or followers have low skill levels.


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Jack Hartnett, former president of D. L. Rogers Corporation and franchise owner of 54 Sonic drive-in restaurants, provides an example of the autocratic lead- ership style. He tells workers to ‘‘do it the way we tell you to do it,’’ rather than ask- ing for their input or suggestions.31 The style works well in the fast-food restaurant business where turnover is typically high and many employees are young and low skilled. In contrast, Warren Buffett, introduced earlier, is an excellent example of a democratic leader.

EXHIBIT 2.3 Leadership Continuum

Subordinate-Centered Leadership

Boss-Centered Leadership

Manager makes decision and announces it

Manager “sells” decision

Manager presents ideas and invites questions

Manager presents tentative decision subject to change

Manager presents problem, gets suggestions, makes decision

Manager defines limits, asks group to make decision

Manager permits subordinates to function within limits defined by superior

Use of authority by manager

Area of freedom for subordinates

Source: Harvard Business Review. An exhibit from Robert Tannenbaum and Warren Schmidt, ‘‘How to Choose a Leadership Pat- tern’’ (May–June 1973). Copyright 1973 by the president and Fellows of Harvard College.

IN THE LEAD Warren Buffett, Berkshire Hathaway He is one of the richest people in the world, but Warren Buffett is also considered one of the warmest, most humble, and most approachable. Each year, Buffett hosts in his hometown of Omaha, Nebraska, about 160 business students from universities around the world, answering questions and listening to their ideas.

Within the numerous companies under his leadership, Buffett also emphasizes communication, mutual trust, respect, and a nurturing work environment. He places a high value on interacting and collaborating with employees at all levels. He lets the managers of the various companies run their own show, believing they are the ones who best know how to do it. Buffett’s democratic leadership style is reflected in an excerpt from a memo he sent to top managers: ‘‘Talk to me about what is going on as little or as much as you wish. Each of you does a first-class job of running your operation with your own individual style and you don’t need me to help.’’32


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The findings about autocratic and democratic leadership in the original Uni- versity of Iowa studies indicated that leadership behavior had a definite effect on outcomes such as follower performance and satisfaction. Equally important was the recognition that effective leadership was reflected in behavior, not simply by what personality traits a leader possessed. For example, Stephen McDonnell, founder and CEO of Applegate Farms, believes the best way to get a company running smoothly is to give everyone access to relevant information, empower them with the freedom and responsibility to act on it, and then stay out of the way. McDonnell doesn’t even go into the office most days, although he is a self- confessed control-freak boss, full of anxiety and obsessed with meeting goals. He realized that working mostly from home was the best way to protect the com- pany from his tendency to micromanage.33 This suggests that leaders can adopt behaviors that are almost in direct opposition to their natural traits when it is necessary.

2-3b Ohio State Studies The idea that leadership is reflected in behavior and not just personal traits provided a focus for subsequent research. One early series of studies on leadership behavior was conducted at The Ohio State University. Researchers conducted surveys to iden- tify specific dimensions of leader behavior. Narrowing a list of nearly 2,000 leader behaviors into a questionnaire containing 150 examples of definitive leader behav- iors, they developed the Leader Behavior Description Questionnaire (LBDQ) and administered it to employees.34 Hundreds of employees responded to various exam- ples according to the degree to which their leaders engaged in the behaviors. The analysis of ratings resulted in two wide-ranging categories of leader behavior, later called consideration and initiating structure.

Consideration describes the extent to which a leader cares about subordi- nates, respects their ideas and feelings, and establishes mutual trust. Showing appreciation, listening carefully to problems, and seeking input from subordi- nates regarding important decisions are all examples of consideration behaviors.

Initiating structure describes the extent to which a leader is task oriented and directs subordinates’ work activities toward goal achievement. This type of leader behavior includes directing tasks, getting people to work hard, plan- ning, providing explicit schedules for work activities, and ruling with an iron hand.

Although many leaders fall along a continuum that includes both considera- tion and initiating structure behaviors, these behavior categories are independent of one another. In other words, a leader can display a high degree of both behav- ior types or a low degree of both behavior types. Additionally, a leader might demonstrate high consideration and low initiating structure, or low consideration and high initiating structure behavior. Research indicates that all four of these leader style combinations can be effective.35 The following examples describe two U.S. Marine leaders who display different types of leadership behavior that corre- late to the consideration and initiating structure styles. Sometimes these styles clash.

NEW LEADER ACTION MEMO Discover your leadership orientation related to consideration and initiating structure by completing the self-assessment exercise in Leader’s Self-Insight 2.2.

Consideration the extent to which a leader is sensitive to subordinates, respects their ideas and feel- ings, and establishes mutual trust

Initiating structure the extent to which a leader is task oriented and directs subordinates’ work activities toward goal achievement


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LEADER’S SELF-INSIGHT 2.2 What’s Your Leadership Orientation?

Instructions: The following questions ask about your per- sonal leadership orientation. Each item describes a specific kind of behavior but does not ask you to judge whether the behavior is desirable or undesirable.

Read each item carefully. Think about how often you engage in the behavior described by the item in a work or school group. Please indicate whether each statement is Mostly False or Mostly True by checking the answer that best describes your behavior.

Mostly False

Mostly True

1. I put into operation suggestions agreed to by the group. ______ ______

2. I treat everyone in the group with respect as my equal. ______ ______

3. I back up what other people in the group do. ______ ______

4. I help others with their personal problems. ______ ______

5. I bring up how much work should be accomplished. ______ ______

6. I help assign people to specific tasks. ______ ______

7. I frequently suggest ways to fix problems. ______ ______

8. I emphasize deadlines and how to meet them. ______ ______

Scoring and Interpretation Consideration behavior score—count the number of checks for Mostly True for items 1–4. Enter your consideration score here: ________.

A higher score (3 or 4) suggests a relatively strong ori- entation toward consideration behavior by you as a leader. A low score (2 or less) suggests a relatively weak consideration orientation.

Initiating structure behavior score—count the number of checks for Mostly True for items 5–8. Enter your initiating structure score here: ________.

A higher score (3 or 4) suggests a relatively strong ori- entation toward initiating structure behavior by you as a leader. A low score (2 or less) suggests a relatively weak ori- entation toward initiating structure behavior.

Source: Sample items adapted from: Edwin A Fleishman ’s Leadership Opinion Questionnaire. (Copyright 1960, Science Research Associates, Inc., Chicago, IL). This version is based on Jon L. Pierce and John W. Newstrom, Leaders and the Leadership Process: Readings, Self-Assessments & Applica- tions, 2nd ed. (Boston: Irwin McGraw-Hill, 2000).

IN THE LEAD Col. Joe D. Dowdy and Maj. Gen. James Mattis, U.S. Marine Corps Only a few weeks into the war in Iraq, Marine Col. Joe D. Dowdy had both accomplished a grueling military mission and been removed from his command by Maj. Gen. James Mattis. The complicated and conflicting tales of why Col. Dowdy was dismissed are beyond the scope of this text, but one issue that came under examination was the differing styles of Col. Dowdy and Gen. Mattis, as well as the difficult, age-old wartime tension of ‘‘men versus mission.’’

Gen. Mattis has been referred to as a ‘‘warrior monk,’’ consumed with the study of battle tactics and a leader whose own battle plans in Iraq were considered brilliant. Gen. Mattis saw speed as integral to success in the early days of the Iraqi war, pushing for regiments to move quickly to accomplish a mission despite significant risks. For Col. Dowdy, some risks seemed too high, and he made decisions that delayed his mission but better protected his marines. Col. Dowdy was beloved by his followers because he was deeply concerned about their welfare, paid attention to them as individuals, and treated them as equals, going so far as to decline certain privileges that were available only to officers.

Despite their different styles, both leaders were highly respected by followers. When asked about Gen. Mattis, Gunnery Sgt. Robert Kane, who has served under both leaders, says he would certainly ‘‘follow him again.’’ However, when he learned that Col. Dowdy had been dismissed, Sgt. Kane says he ‘‘wanted to go with him. If [he] had said ‘Get your gear, you’re coming with me,’ I would’ve gone, even if it meant the end of my career.’’36

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Gen. Mattis might be considered highly task oriented, reflecting an initiating structure approach, while Col. Dowdy seems more people oriented, reflecting a con- sideration behavioral style. Whereas Gen. Mattis typically put the mission first, combined with a concern for the marines under his command, Col. Dowdy typically put marines first, even though he also gave his all to accomplish the mission.

Additional studies that correlated these two leader behavior types and impact on subordinates initially demonstrated that ‘‘considerate’’ supervisors had a more positive impact on subordinate satisfaction than did ‘‘structuring’’ supervisors.37

For example, when leader effectiveness was defined by voluntary turnover or amount of grievances filed by subordinates, considerate leaders generated less turn- over and fewer grievances. But research that utilized performance criteria, such as group output and productivity, showed initiating structure behavior was rated more effective. Other studies involving aircraft commanders and university department heads revealed that leaders rated effective by subordinates exhibited a high level of both consideration and initiating structure behaviors, whereas leaders rated less effective displayed low levels of both behavior styles.38

2-3c University of Michigan Studies Studies at the University of Michigan took a different approach by directly compar- ing the behavior of effective and ineffective supervisors.39 The effectiveness of lead- ers was determined by productivity of the subordinate group. Initial field studies and interviews at various job sites gave way to a questionnaire not unlike the LBDQ, called the Survey of Organizations.40

Over time, the Michigan researchers established two types of leadership behav- ior, each type consisting of two dimensions.41 First, employee-centered leaders dis- play a focus on the human needs of their subordinates. Leader support and interaction facilitation are the two underlying dimensions of employee-centered behavior. This means that in addition to demonstrating support for their subordi- nates, employee-centered leaders facilitate positive interaction among followers and seek to minimize conflict. The employee-centered style of leadership roughly corre- sponds to the Ohio State concept of consideration.

In contrast to the employee-centered leader, the job-centered leader directs activ- ities toward scheduling, accomplishing tasks, and achieving efficiency. Goal empha- sis and work facilitation are dimensions of this leadership behavior. By focusing on reaching task goals and facilitating the structure of tasks, job-centered behavior approximates that of initiating structure.

However, unlike the consideration and initiating structure styles defined by the Ohio State studies, Michigan researchers considered employee-centered leadership and job-centered leadership to be distinct styles in opposition to one another. A leader is identifiable by behavior characteristic of one or the other style but not both. Another hallmark of later Michigan studies is the acknowledgment that often the behaviors of goal emphasis, work facilitation, support, and interaction facilita- tion can be meaningfully performed by a subordinate’s peers rather than only by the designated leader. Other people in the group could supply these behaviors, which enhanced performance.42

In addition, while leadership behavior was demonstrated to affect the perform- ance and satisfaction of subordinates, performance was also influenced by other fac- tors related to the situation within which leaders and subordinates worked. The importance of situation will be explored in the next chapter.

Employee-centered a leadership behavior that displays a focus on the human needs of subordinates

Job-centered leadership behavior in which leaders direct activities to- ward efficiency, cost-cutting, and scheduling, with an em- phasis on goals and work facilitation


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2-3d The Leadership Grid Blake and Mouton of the University of Texas proposed a two-dimensional leader- ship theory called the Leadership Grid that builds on the work of the Ohio State and Michigan studies.43 Based on a week-long seminar, researchers rated leaders on a scale of one to nine according to two criteria: the concern for people and the con- cern for production. The scores for these criteria are plotted on a grid with an axis corresponding to each concern. Exhibit 2.4 depicts the two-dimensional model and five of the seven major leadership styles.

Team management (9,9) is often considered the most effective style and is rec- ommended because organization members work together to accomplish tasks. Country club management (1,9) occurs when primary emphasis is given to people rather than to work outputs. Authority-compliance management (9,1) occurs when efficiency in operations is the dominant orientation. Middle-of-the-road manage- ment (5,5) reflects a moderate amount of concern for both people and production. Impoverished management (1,1) means the absence of a leadership philosophy; leaders exert little effort toward interpersonal relationships or work accomplish- ment. Consider these examples:

EXHIBIT 2.4 The Leadership Grid¤ Figure





















Low HighConcern for Results

C on

ce rn

fo r

Pe op


1,9 9,9

5,5 Middle-of-the-Road Management Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level.


Authority-Compliance Management Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree.


Impoverished Management Exertion of minimum effort to get required work done is appropriate to sustain organization membership.

Country Club Management Thoughtful attention to the needs of people for satisfying relationships leads to a com- fortable, friendly organization atmosphere and work tempo.

Team Management Work accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust and respect.

1 2 3 4 5 6 7 8 9

Source: The Leadership Grid figure from Leadership Dilemma—Grid Solutions by Robert R. Blake and Anne Adams McCanse (for- merly the Managerial Grid by Robert R. Blake and Jane S. Mouton). Houston: Gulf Publishing Company, p. 29. Copyright 1991 by Scientific Methods, Inc. Reproduced by permission of the owners.

The Leadership Grid a two-dimensional leader- ship model that describes major leadership styles based on measuring both concern for people and con- cern for production


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The leadership of Denise Morrison is characterized by high concern for people and moderate concern for tasks and production. Michael Arrington, in contrast, is very high on concern for production and relatively low on concern for people. In each case, both concerns shown in The Leadership Grid are present, but they are integrated in different amounts.

2-3e Theories of a ‘‘High-High’’ Leader The leadership styles described by the researchers at Ohio State, University of Michi- gan, and University of Texas pertain to variables that roughly correspond to one another: consideration and initiating structure; employee-centered and job-centered; concern for people and concern for production. The research into the behavior approach culminated in two predominate types of leadership behaviors—people- oriented and task-oriented. Exhibit 2.5 illustrates how the various studies fall within these two behavior categories and lists some behaviors that are representative of each type of leadership.

The findings about two underlying dimensions and the possibility of leaders rated high on both dimensions raise three questions to think about. The first ques- tion is whether these two dimensions are the most important behaviors of leader- ship. Certainly, these two behaviors are important. They capture fundamental, underlying aspects of human behavior that must be considered for organizations to succeed. One reason why these two dimensions are compelling is that the findings are based on empirical research, which means that researchers went into the field to study real leaders across a variety of settings. When independent streams of field research reach similar conclusions, they probably represent a fundamental theme in leadership behavior. A review of 50 years of leadership research, for example, iden- tified task-oriented behavior and people-oriented behavior as primary categories

IN THE LEAD Denise Morrison, Campbell Soup Company, and Michael Arrington, TechCrunch Douglas Conant, former CEO of Campbell Soup Company, met Denise Morrison in 1995 when he was CEO of Nabisco and she cold-called him looking for a job. He found in Morrison a kindred spirit in terms of leadership style and hired her; she later followed him to Campbell in 2003—and into the company’s top executive seat eight years later. Like Conant, Morrison is a strong proponent of empowerment and employee engagement. She has been referred to as ‘‘tough on the issues but tender on people.’’ Morrison is known to be patient and supportive, even though she can make difficult operational decisions without letting her emotions cloud her judgment.

Compare Morrison’s approach to that of Michael Arrington, founder of TechCrunch, the company that publishes the influential blog of the same name. Arrington started the blog because he enjoys the research and writing, and he admits he isn’t very good at the ‘‘people management’’ part of his job. ‘‘It’s hard to be a coach and a player at the same time,’’ Arrington says. ‘‘Plus, I’m moody.’’ Arrington says his style is to bust down doors and clean up the mess later. Recognizing his weak point in being a manager of people, Arrington hired Heather Harde as CEO of the company, which enabled TechCrunch to grow and allowed Arrington to focus on what he was best at doing. Both Arrington and Harde have since left the company after public clashes with Arianna Huffington of The Huffington Post.44


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related to effective leadership in numerous studies.45 Concern for tasks and concern for people must be shown toward followers at some reasonable level, either by the leader or by other people in the system. Although these are not the only important behaviors, as we will see throughout this book, they certainly require attention.

The second question is whether people orientation and task orientation exist to- gether in the same leader, and how. The grid theory argues that yes, both are present when people work with or through others to accomplish an activity. Although lead- ers may be high on either style, there is considerable belief that the best leaders are high on both behaviors. Eddy Cue, senior vice president of Internet Software and Services at Apple and one of CEO Tim Cook’s trusted advisers, provides an example of a leader who succeeds on both dimensions. Cue is known as a master strategist and tactician who focuses people on key goals for new product launches, establishes plans to reach targets, and may even step in to handle tasks himself to get things done on time. Yet employees also appreciate his softer, people-oriented side. When the development of the iCloud service wasn’t going well, Cue stayed calm and told employees he had confidence in them. He’s respected for being easygoing and friendly and for being willing to make himself vulnerable with employees by openly admitting mistakes.46

The third question concerns whether people can actually change themselves into leaders high on people or task orientation. In the 1950s and 1960s, when the Ohio State and Michigan studies were underway, the assumption of researchers was that the behaviors of effective leaders could be emulated by anyone wishing to become an effective leader. In general it seems that people can indeed learn new leader

EXHIBIT 2.5 Themes of Leader Behavior Research

Examples of Leader Behaviors

Task-Oriented Behaviors

People-Oriented Behaviors

Acknowledge accomplishments Respect people Be positive Give time and encouragement Show acceptance and compassion Display trust

Clarify task objectives and job responsibilities Set performance expectations Plan use of resources Coordinate activities Check progress and quality of work Evaluate performance

Research Studies

Ohio State University University of Michigan University of Texas

Leadership Style

Consideration Employee-Centered Concern for People

Initiating Structure Job-Centered Concern for Production

Sources: Based on Marilyn R. Zuckerman and Lewis J. Hatala, Incredibly American: Releasing the Heart of Quality (Milwaukee, WI: American Society for Quality, 1992), pp. 141–142; and Mark O’Connell, Gary Yukl, and Thomas Taber, ‘‘Leader Behavior and LMX: A Constructive Replication,’’ Journal of Managerial Psychology 27, no. 2 (2012), pp. 143–154.

NEW LEADER ACTION MEMO As a leader, you can succeed in a variety of situations by showing concern for both tasks and people. People-oriented behavior is related to higher follower satisfaction, and task- oriented behavior is typically associated with higher productivity.


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behaviors. Although ‘‘high-high’’ leadership is not the only effective style, research- ers have looked to this kind of leader as a candidate for success in a wide variety of situations. However, as we will see in Chapter 3, the next generation of leadership studies refined the understanding of situations to pinpoint more precisely when each type of leadership behavior is most effective.

2-4 INDIVIDUALIZED LEADERSHIP Traditional trait and behavior theories assume that a leader adopts a general leader- ship style that is used with all group members. A more recent approach to leadership behavior research, individualized leadership, looks instead at the specific relation- ship between a leader and each individual follower.47 Individualized leadership is based on the notion that a leader develops a unique relationship with each subordi- nate or group member, which determines how the leader behaves toward the mem- ber and how the member responds to the leader. In this view, leadership is a series of dyads, or a series of two-person interactions. The dyadic view focuses on the con- cept of exchange, what each party gives to and receives from the other.48

The first individualized leadership theory was introduced nearly 40 years ago and has been steadily revised ever since. Exhibit 2.6 illustrates the development of research in this area. The first stage was the awareness of a relationship between a leader and each individual rather than between a leader and a group of followers. The second stage examined specific attributes of the exchange relationship. The

EXHIBIT 2.6 Stages of Development of Individualized Leadership

1. Vertical Dyad Linkage Leaders’ behaviors and traits have different effects across followers, creating in-groups and out-groups.

2. Leader–Member Exchange Leadership is individualized for each subordinate. Each dyad involves a unique exchange independent of other dyads.

3. Partnership Building Leaders can reach out to create a positive exchange with every subordinate. Doing so increases performance.

Sources: Based on Fred Danereau, ‘‘A Dyadic Approach to Leadership: Creating and Nurturing This Approach Under Fire,’’ Leader- ship Quarterly 6, no. 4 (1995), pp. 479–490, and George B. Graen and Mary Uhl-Bien, ‘‘Relationship-Based Approach to Leadership: Development of Leader–Member Exchange (LMX) Theory of Leadership over 25 Years: Applying a Multi-Level, Multi-Domain Approach,’’ Leadership Quarterly 6, no. 2 (1995), pp. 219–247.

Individualized leadership a theory based on the notion that a leader devel- ops a unique relationship with each subordinate or group member, which determines how the leader behaves toward the mem- ber and how the member responds to the leader


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third stage explored whether leaders could intentionally develop partnerships with each group member.

2-4a Vertical Dyad Linkage Model The vertical dyad linkage (VDL) model argues for the importance of the dyad formed by a leader with each member of the group. Initial findings indicated that followers provided very different descriptions of the same leader. For example, some reported a leader, and their relationship with the leader, as having a high degree of mutual trust, respect, and obligation. These high-quality relationships might be character- ized as high on both people and task orientation. Other followers reported a low- quality relationship with the same leader, such as having a low degree of trust, respect, and obligation. These followers perceived the leader as being low on impor- tant leadership behaviors.

Based on these two extreme behavior patterns, subordinates were found to exist in either an in-group or an out-group in relation to the leader. Exhibit 2.7 delineates the differences in leader behavior toward in-group versus out-group members. A recent survey of 17,000 federal employees found that 28 percent believed their own supervisor had granted advantages to someone based on personal feelings or rela- tionships, and 53 percent believed such favoritism had influenced the decisions or actions of other supervisors in their organization.49 Most of us who have had expe- rience with any kind of group, whether it be a college class, an athletic team, or a work group, recognize that some leaders may spend a disproportionate amount of time with certain people and that these ‘‘insiders’’ are often highly trusted and may obtain special privileges. In the terminology of the VDL model, these people would be considered to participate in an in-group relationship with the leader, whereas other members of the group who did not experience a sense of trust and extra con- sideration would participate in an out-group relationship. In-group members, those who rated the leader highly, had developed close relationships with the leader and often became assistants who played key roles in the functioning of the work unit. Out-group members were not key players in the work unit.

EXHIBIT 2.7 Leader Behavior toward In-Group versus Out-Group Members

In-Group Subordinates Out-Group Subordinates

• Provides support and encouragement when employee faces a difficult, stressful task

• Discusses objectives; trusts employee to use his or her own approach in solving problems and reaching goals

• Listens to employee’s suggestions and ideas about how work is done

• Treats mistakes as opportunities for coaching and developing employee

• Gives employee interesting assignments; may allow employee to choose assignment

• Sometimes defers to subordinate’s opinion • Praises accomplishments and performance improvements

• Shows little consideration if employee is having difficulty with a task

• Gives the employee specific directives for how to accomplish tasks and attain goals

• Shows little interest in employee’s comments and suggestions

• Criticizes or punishes mistakes • Assigns primarily routine jobs and monitors employee closely

• Usually imposes own views • Focuses on areas of poor performance

Sources: Based on Jean François Manzoni and Jean-Louis Barsoux, ‘‘The Set-Up-to-Fail Syndrome,’’ Harvard Business Review (March–April 1988), pp. 110–113; and Mark O’Donnell, Gary Yukl, and Thomas Taber, ‘‘Leader Behavior and LMX: A Constructive Replication,’’ Journal of Management Psychology 27, no. 2 (2012), pp. 143–154.

Vertical dyad linkage (VDL) model a model of individualized leadership that argues for the importance of the dyad formed by a leader with each member of the group


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Thus, by focusing on the relationship between a leader and each individual, the VDL research found great variance of leader style and impact within a group of followers.

2-4b Leader–Member Exchange Stage two in the development of the individualized leadership theory explored the leader–member exchange (LMX) in more detail, discovering that the impact on out- comes depends on how the LMX process develops over time. Studies evaluating char- acteristics of the LMX relationship explored such things as communication frequency, value agreement, characteristics of followers, job satisfaction, performance, job climate, and commitment. Leaders typically tend to establish in-group exchange relationships with individuals who have characteristics similar to those of the leader, such as similarity in background, interests, and values, and with those who demon- strate a high level of competence and interest in the job. Overall, studies have found that the quality of the LMX relationship is substantially higher for in-group members. LMX theory proposes that this higher-quality relationship will lead to higher per- formance and greater job satisfaction for in-group members, and research in general supports this idea.50 High-quality LMX relationships have been found to lead to very positive outcomes for leaders, followers, work units, and the organization. For fol- lowers, a high-quality exchange relationship may mean more interesting assignments, greater responsibility and authority, and tangible rewards such as pay increases and promotions. Leaders and organizations clearly benefit from the increased effort and initiative of in-group participants to carry out assignments and tasks successfully.

2-4c Partnership Building In this third phase of research, the focus was on whether leaders could develop posi- tive relationships with a large number of subordinates. Critics of early LMX theory pointed out the dangers of leaders establishing sharply differentiated in-group and out-group relationships, in that this may lead to feelings of resentment or even hos- tility among out-group participants.51 If leaders are perceived to be granting exces- sive benefits and advantages to in-group members, members of the out-group may rebel, which can damage the entire organization. Moreover, some studies have found that leaders tend to categorize employees into in-groups and out-groups as early as five days into their relationship.52

Thus, the third phase of research in this area focused on whether leaders could develop positive relationships with all followers. In this approach, the leader views each person independently and may treat each one in a different but positive way. That is, leaders strive to develop a positive relationship with each subordinate, but the positive relationship will have a different form for each person. For example, one person might be treated with ‘‘consideration’’ and another with ‘‘initiating structure,’’ depending on what followers need to feel involved and to succeed.

In the LMX research study, leaders were trained to offer the opportunity for a high-quality relationship to all group members, and the followers who responded to the offer dramatically improved their performance. As these relationships matured, the entire work group became more productive, and the payoffs were tremendous. Leaders could count on followers to provide the assistance needed for high perform- ance, and followers participated in and influenced decisions. The implications of this finding are that true performance and productivity gains can be achieved by having the leader develop positive relationships one on one with each subordinate.

NEW LEADER ACTION MEMO Answer the questions in Leader’s Self-Insight 2.3 to understand how LMX theory applies to your own work experience.

Leader–member exchange (LMX) individualized leadership model that explores how leader–member relation- ships develop over time and how the quality of exchange relationships affects outcomes

NEW LEADER ACTION MEMO As a leader, you can build a positive, individualized relationship with each follower to create an equitable work environment and provide greater benefits to yourself, followers, and the organization.


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2-5 ENTREPRENEURIAL TRAITS AND BEHAVIORS Another topic of special concern in today’s fast-changing world is what traits en- courage entrepreneurship. Entrepreneurship refers to initiating a business venture, organizing the necessary resources, and assuming the associated risks and rewards.53 An entrepreneur recognizes a viable idea for a business product or service and carries it out by finding and assembling the necessary resources—money, peo- ple, machinery, location—to undertake the business venture.

Entrepreneurial leaders display many of the same characteristics as other lead- ers, but some traits are particularly important for entrepreneurs. Four characteristics considered highly important to entrepreneurial leaders are the following:54

• Vision and dissatisfaction with the present. To start something new requires that the entrepreneur be dissatisfied with the way things are now and have a clear vision for how things should be. For example, in the 1970s Bill Gates had what at the time was a radical vision that software itself was a business, and he clearly stated his dissatisfaction that it wasn’t. Gates pursued his vision, encap- sulated in the idea of a computer in every home and on every desk running Microsoftware. Entrepreneurs are more concerned with innovation, creativity, and creating new processes than with maintaining the status quo.

• Ability to get people on board. Entrepreneurial leaders have to continually recruit others to join in, support, and add to the vision. Gates made his vision

LEADER’S SELF-INSIGHT 2.3 Your ‘‘LMX’’ Relationship

Instructions: What was the quality of your leader’s relation- ship with you? Think back to a job you held and recall your feelings toward your leader, or if currently employed use your supervisor. Please answer whether each of the follow- ing items was Mostly False or Mostly True for you.

Mostly False

Mostly True

1. I very much liked my supervisor as a person. ______ ______

2. My supervisor defended my work to people above him if I made a mistake.

______ ______

3. The work I did for my supervisor went well beyond what was required.

______ ______

4. I admired my supervisor’s professional knowledge and ability. ______ ______

5. My supervisor was enjoyable to work with. ______ ______

6. I applied extra effort to further the interests of my work group. ______ ______

7. My supervisor championed my case to others in the organization. ______ ______

8. I respected my supervisor’s management competence. ______ ______

Scoring and Interpretation LMX theory is about the quality of a leader’s relationship with subordinates. If you scored 6 or more Mostly True, your super- visor clearly had an excellent relationship with you, which is stage two in Exhibit 2.6. You had a successful dyad. If your supervisor had an equally good relationship with every subor- dinate, that is a stage-three level of development (partnership building). If you scored 3 or fewer Mostly True, then your supervisor was probably at level one, perhaps with different relationships with subordinates, some or all of which were unsuccessful. What do you think accounted for the quality of your and other subordinates’ relationships (positive or nega- tive) with your supervisor? Discuss with other students to learn why some supervisors have good LMX relationships.

Source: Based on Robert C. Liden and John M. Maslyn, ‘‘Multidimensionality of Leader–Member Exchange: An Empirical Assessment through Scale Development,’’ Journal of Management 24 (1998), pp. 43–72.

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for a software business widely known and actively engaged with hardware mak- ers like IBM to put the vision into action.

• Flexibility, openness to feedback, and ability to learn and adapt. No one has all the answers, and entrepreneurial leaders must be willing to listen, learn, and adapt. Clara Shih, who started Hearsay Social, a platform that helps large com- panies manage their employees’ presence on social media sites, worked hard not only to raise millions in financing but to gain the support of Facebook COO Sheryl Sandberg as a mentor to help her learn and adapt to changes in the industry.55

• Persistence and execution. Entrepreneurial leaders are tenacious in pursuit of the vision and take active steps in the here and now to bring the future to life. If one thing doesn’t work out, they try another. They are typically highly self- motivated and are willing to stretch themselves and take risks to achieve the vision.

For some leaders, entrepreneurial traits come naturally, but many people can develop these characteristics, as with other leadership qualities. Entrepreneurial leaders start new companies, as Bill Gates did with Microsoft and Clara Shih did with Hearsay Social, but they also exist within established organizations. These leaders take risks to create novel solutions to competitive challenges confronting a business, especially the development or enhancement of products and services. Entrepreneurial leadership is a source of innovation and change for established companies.

LEADERSHIP ESSENTIALS • The point of this chapter is to understand the importance of traits and behaviors

in the development of leadership theory and research. Some traits associated with effective leadership include optimism, self-confidence, honesty, and drive. A large number of personal traits and abilities have been associated with suc- cessful leaders, but traits themselves are not sufficient to guarantee effective leadership.

• Natural traits and behavior patterns can be developed into strengths. It is im- portant for leaders to recognize their strengths and acknowledge the interde- pendence that is a key to effective leadership.

• Research suggests that different leader strengths might be better suited to differ- ent types of leadership roles. The chapter describes three types of roles: opera- tional roles, collaborative roles, and advisory roles. Leaders can be more effective when they are in positions that best match their natural tendencies.

• The behavior approach explored autocratic versus democratic leadership, con- sideration versus initiating structure, employee-centered versus job-centered leadership, and concern for people versus concern for production. The theme of people versus tasks runs through this research, suggesting these are fundamental behaviors through which leaders meet followers’ needs. There has been some disagreement in the research about whether a specific leader is either people- or task oriented or whether one can be both. Today, the consensus is that leaders can achieve a ‘‘high-high’’ leadership style.

• Another approach is the dyad between a leader and each follower. Followers have different relationships with the leader, and the ability of the leader to


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develop a positive relationship with each follower contributes to team perform- ance. The LMX theory says that high-quality relationships have a positive out- come for leaders, followers, work units, and the organization. Leaders can attempt to build individualized relationships with each person as a way to meet needs for both consideration and structure.

• The historical development of leadership theory presented in this chapter introduces some important ideas about leadership. Although certain personal traits and abilities indicate a greater likelihood for success in a leadership role, they are not in themselves sufficient to guarantee effective leadership. Behaviors are equally significant. Therefore, the style of leadership demon- strated by an individual greatly determines the outcome of the leadership endeavor. Often, a combination of behavioral styles is most effective. To understand the effects of leadership on outcomes, the specific relationship behavior between a leader and each follower is also an important consideration.

• Entrepreneurial leadership is of great concern in today’s turbulent environment because entrepreneurial leadership is an important source of innovation and change. Entrepreneurial leaders take risks to bring new organizations into being or create novel solutions to competitive challenges confronting existing organi- zations.

DISCUSSION QUESTIONS 1. Why is it important for leaders to know their strengths? Do you think leaders should

spend equal time learning about their weak points?

2. Suggest some personal traits of leaders you have known. What traits do you believe are most valuable? Why?

3. The chapter suggests that optimism is an important trait for a leader, yet some employees complain that optimistic leaders create significant stress because they don’t anticipate problems and expect their subordinates to meet unreasonable goals. Do you agree? Why?

4. What is the difference between trait theories and behavioral theories of leadership?

5. Would you feel most comfortable using a ‘‘consideration’’ or an ‘‘initiating-structure’’ leadership style? Discuss the reasons for your answer.

6. The vertical dyad linkage model suggests that followers respond individually to the leader. If this is so, what advice would you give leaders about displaying people-oriented versus task-oriented behavior?

7. Does it make sense to you that a leader should develop an individualized relationship with each follower? Explain advantages and disadvantages to this approach.

8. Why would subordinates under a democratic leader perform better in the leader’s absence than would subordinates under an autocratic leader?

9. Why is an entrepreneurial leader important to an organization? How is this role different from other leader roles?

10. Pick three traits from the list in Exhibit 2.1 that you think would be most valuable for a leader in an operational role. Pick three that you think would be most valuable for a leader in a collaborative role. Explain your choices.


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LEADERSHIP AT WORK Your Ideal Leader Traits Spend some time thinking about someone you believe is an ideal leader. For the first part of the exercise, select an ideal leader you have heard about whom you don’t personally know. It could be someone like Mother Teresa, Martin Luther King, Abraham Lincoln, or any national or international figure that you admire. Write the person’s name here: ____________. Now, in the space below, write down three things you admire about the per- son, such as what he or she did or the qualities that person possesses.

For the second part of the exercise, select an ideal leader whom you know personally. This can be anyone from your life experiences. Write the person’s name here: ____________. Now, in the space below, write down three things you admire about the person, such as what he or she did or the qualities that person possesses.

The first leader you chose represents something of a projective test based on what you’ve heard or read. You imagine the leader has the qualities you listed. The deeds and qualities you listed say more about what you admire than about the actual traits of the leader you chose. This is something like an inkblot test, and it is important because the traits you assign to the leader are traits you are aware of, have the potential to develop, and indeed can de- velop as a leader. The qualities or achievements you listed are an indicator of the traits you likely will express as you develop into the leader you want to become.

The second leader you chose is someone you know, so it is less of a projective test and represents traits you have had direct experience with. You know these traits work for you and likely will become the traits you develop and express as a leader.

What is similar about the traits you listed for the two leaders? Different? Interview another student in class about traits he or she admires. What do the traits tell you about the person you are interviewing? What are the common themes in your list and the other stu- dent’s list of traits? To what extent do you display the same traits as the ones on your list? Will you develop those traits even more in the future?

LEADERSHIP DEVELOPMENT: CASES FOR ANALYSIS Consolidated Products Consolidated Products is a medium-sized manufacturer of consumer products with nonunion- ized production workers. Ben Samuels was a plant manager for Consolidated Products for


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10 years, and he was very well liked by the employees there. They were grateful for the fitness center he built for employees, and they enjoyed the social activities sponsored by the plant several times a year, including company picnics and holiday parties. He knew most of the workers by name, and he spent part of each day walking around the plant to visit with them and ask about their families or hobbies.

Ben believed that it was important to treat employees properly so they would have a sense of loyalty to the company. He tried to avoid any layoffs when production demand was slack, figuring that the company could not afford to lose skilled workers that are so difficult to replace. The workers knew that if they had a special problem, Ben would try to help them. For example, when someone was injured but wanted to continue working, Ben found another job in the plant that the person could do despite having a disability. Ben believed that if you treat people right, they would do a good job for you without close supervision or prodding. Ben applied the same principle to his supervisors, and he mostly left them alone to run their departments as they saw fit. He did not set objectives and standards for the plant, and he never asked the supervisors to develop plans for improving productivity and product quality.

Under Ben, the plant had the lowest turnover among the company’s five plants, but the sec- ond worst record for costs and production levels. When the company was acquired by another firm, Ben was asked to take early retirement, and Phil Jones was brought in to replace him.

Phil had a growing reputation as a manager who could get things done, and he quickly began making changes. Costs were cut by trimming a number of activities such as the fitness center at the plant, company picnics and parties, and the human relations training programs for supervisors. Phil believed that human relations training was a waste of time; if employees don’t want to do the work, get rid of them and find somebody else who does.

Supervisors were instructed to establish high performance standards for their depart- ments and insist that people achieve them. A computer monitoring system was introduced so that the output of each worker could be checked closely against the standards. Phil told his supervisors to give any worker who had substandard performance one warning, and then if performance did not improve within two weeks to fire the person. Phil believed that workers don’t respect a supervisor who is weak and passive. When Phil observed a worker wasting time or making a mistake, he would reprimand the person right on the spot to set an example. Phil also checked closely on the performance of his supervisors. Demanding objectives were set for each department, and weekly meetings were held with each supervisor to review department performance. Finally, Phil insisted that supervisors check with him first before taking any significant actions that deviated from established plans and policies.

As another cost-cutting move, Phil reduced the frequency of equipment maintenance, which required machines to be idled when they could be productive. Since the machines had a good record of reliable operation, Phil believed that the current maintenance schedule was ex- cessive and was cutting into production. Finally, when business was slow for one of the prod- uct lines, Phil laid off workers rather than finding something else for them to do.

By the end of Phil’s first year as plant manager, production costs were reduced by 20 per- cent and production output was up by 10 percent. However, three of his seven supervisors left to take other jobs, and turnover was also high among the machine operators. Some of the turnover was due to workers who were fired, but competent machine operators were also quitting, and it was becoming increasingly difficult to find any replacements for them. Finally, there was increasing talk of unionizing among the workers.56


1. Compare the leadership traits and behaviors of Ben Samuels and Phil Jones.

2. Which leader do you think is more effective? Why? Which leader would you prefer to work for?

3. If you were Phil Jones’s boss, what would you do now?


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Transition to Leadership My name is Michael Collins. When I was named Southwest Regional Manager of Creighton Auto Parts, a major parts sales and service corporation, I saw the transition period before and immediately following my appointment as an exciting new opportunity. With a degree in automotive engineering and several years’ experience in parts manufacturing (design and plant management), I came to the new position with strong industry connections and a keen eye for trends and product innovation.

During the initial stages of the transition, I met with the outgoing regional manager, receiving his input about ongoing business issues, how current services tallied with the corpo- ration’s short- and long-term goals, and what he saw as the strengths and weaknesses of the various stores and personnel within the region. While some of these meetings took place at his office, I wanted to avoid the appearance of depending on ‘‘the old man’’ for guidance, so I scheduled most of our meetings off-site to provide more opportunities for frank discussion covering procedures, products and services, and individual stakeholders from employees and board members to suppliers and customers.

In addition, I spent a great deal of time making my own assessments. I knew my com- pany honeymoon period would be limited. My vision and my implementation program had to be clear with well-defined strategies. As a first step, I sent a lengthy e-mail message to all key players on my new leadership team both as introduction and as a prelude to establishing my vision and transition program.

I traveled around the region meeting with the store managers on my regional team, as well as holding informal meetings with front-line employees. In so doing, I was surprised to tap into the rumor mill and find individuals who were eager to talk openly about their goals, ideas, opinions, and complaints. My questions to front-line workers, in particular, had both positive and negative aspects. I questioned them about their length of service, what they liked most about the company, what areas they thought could be improved, how they rated the cul- ture—things like that. I discovered that for most of them, this was more than just a job. Many had worked for the company for a number of years and had a great deal of pride in the com- pany, as well as a deep sense of responsibility toward their customers.

However, I found this portion of my on-site visits the most intrusive on my time, and in many cases I regretted the amount of time I spent listening to workers. I wondered if the advance warning of my visit allowed too much time for people to prepare their answers. I wondered how many were genuine in their responses and how many were just trying to hold on to their jobs. Worse, I found myself hostage to those who wanted to rant on and on about workplace issues, their training, their bosses, even their customers. I talked to a few customers and didn’t get much from that either. As I proceeded through the on-site visits, I found myself growing impatient, increasingly checking my watch to see how soon I should leave for the next appointment on a packed schedule. I admit I expected more from this portion of the transition than I received. However, once I committed to this, I felt obligated to see it through.

More rewarding was the time spent with the marketing staff exploring customer satisfac- tion levels. In focusing on customers, I zeroed in on three research areas: customer com- plaints, area demographics, and the compounding customer—those return customers who generate additional sales among their friends and family. Why do customers come? What makes them return? What are their personal ‘‘hot buttons’’—needs or breaking points in deal- ing with service industries? Our market research showed large segments of our population in four areas: under 30, over 60, Hispanics, and women. We also saw an increasing number of unemployed and under-employed do-it-yourself customers trying to keep the family vehicle going just a little longer. I personally love analyzing market data.

My question for regional service, sales, and marketing was ‘‘how are we reaching and retaining these segments of the population?’’ Do advertising, Web sites, direct mailing, cou- pon campaigns, and other marketing strategies match these demographics? For example, are we providing and training Spanish-language sales and service experts and consumer


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information? With large segments of young people, senior citizens, the unemployed, and sin- gle moms, wouldn’t these large segments of the population offer fabulous compounding opportunities with focused marketing and price breaks?

As I take the reins, I am excited about the marketing challenges and opportunities ahead. I am an idea guy, a hands-on manager whose ideal is the Renaissance man capable of doing many things very well. I like to surround myself with similar kinds of people. I generate ideas and expect follow-up and accountability. The leadership model I embrace sets the bar high for me and for everyone who works for me. I look forward to injecting a new vision and new standards of service throughout the region.


1. What do you see as Michael Collins’s leadership traits? Which of these traits do you con- sider a strength? A weakness? Explain.

2. What do you think of Michael Collins’s approach to leading the region? How would you characterize his people-oriented versus task-oriented style? Why?

3. How might an understanding of individualized leadership be useful to Collins with respect to his relationship with marketing versus store personnel?

REFERENCES 1. Steven Davidoff Solomon, ‘‘J. Crew Struggles with Its ‘Great Man’

Dilemma,’’ The New York Times (June 10, 2015), p. B4; Stephanie Clifford, ‘‘J. Crew Benefits As Mrs. Obama Wears the Brand,’’ The New York Times (November 17, 2008), http://www.nytimes.com/ 2008/11/17/business/media/17crew.html?_r=0 (accessed October 8, 2015); and Keith Bedford, ‘‘Mickey Drexler Leads J. Crew by Doing the Things Managers Aren’t Supposed To,’’ Quartz http://qz.com/ 181569/j-crew-mickey-drexler-leads-by-doing-everything-managers-arent- supposed-to/ (accessed October 8, 2015).

2. G. A. Yukl, Leadership in Organizations (Upper Saddle River, NJ: Prentice Hall, 1981); and S. C. Kohs and K. W. Irle, ‘‘Prophesying Army Promotion,’’ Journal of Applied Psychology 4 (1920), pp. 73–87.

3. Yukl, Leadership in Organizations, p. 254. 4. R. M. Stogdill, ‘‘Personal Factors Associated with Leadership: A Sur-

vey of the Literature,’’ Journal of Psychology 25 (1948), pp. 35–71. 5. R. M. Stogdill, Handbook of Leadership: A Survey of the Literature

(New York: The Free Press, 1974) ; and Bernard M. Bass, Bass & Stog- dill’s Handbook of Leadership: Theory, Research, and Managerial Applications, 3rd ed. (New York: The Free Press, 1990).

6. S. A. Kirkpatrick and E. A. Locke, ‘‘Leadership: Do Traits Matter?’’ The Academy of Management Executive 5, no. 2 (1991), pp. 48–60.

7. R. G. Lord, C. L. DeVader, and G. M. Alliger, ‘‘A Meta-Analysis of the Relation between Personality Traits and Leadership Perceptions: An Application of Validity Generalization Procedures,’’ Journal of Applied Psychology 71 (1986), pp. 402–410.

8. Study reported in ‘‘From the Front Lines: How Does Leadership Personality Affect Performance?’’ Leader to Leader (Winter 2007), pp. 56–57; and Bradley R. Agle, Nandu J. Nagarajan, Jeffrey A. Sonnenfeld, and Dhinu Srinivasan, ‘‘Does CEO Charisma Matter? An Empirical Analysis of the Relationships among Organizational Per- formance, Environmental Uncertainty, and Top Management Team Perceptions of CEO Charisma,’’ Academy of Management Journal 49, no. 1 (2006), pp. 161–174.

9. Andrew St. George, ‘‘Leadership Lessons from the Royal Navy,’’ McKinsey Quarterly (January 2013), http://www.mckinseyquarterly. com/Leadership_lessons_from_the_Royal_Navy_3053 (accessed February 7, 2013).

10. Patrick Lencioni, ‘‘The Most Important Leadership Trait You Shun,’’ The Wall Street Journal (June 21, 2010), http://online.wsj.com/article/

SB10001424052748704895204575321380627619388.html (accessed March 11, 2013).

11. Edwin Locke and Associates, The Essence of Leadership (New York: Lexington Books, 1991).

12. A summary of various studies and surveys is reported in Del Jones, ‘‘Optimism Puts Rose-Colored Tint in Glasses of Top Execs,’’ USA Today (December 15, 2005).

13. See Elaine Fox, ‘‘The Essence of Optimism,’’ Scientific American Mind (January–February 2013), pp. 22–27.

14. Arthur Bandura, ‘‘Self-efficacy,’’ in V. S. Ramachaudran, ed., Encyclo- pedia of Human Behavior, vol. 4 (New York: Academic Press, 1994), pp. 71–81; and Elizabeth A. McDaniel and Holly DiBella-McCarthy, ‘‘Reflective Leaders Become Causal Agents of Change,’’ Journal of Management Development 31, no. 7 (2012), pp. 663–671.

15. Shelley A. Kirkpatrick and Edwin A. Locke, ‘‘Leadership: Do Traits Matter?’’ Academy of Management Executive 5, no. 2 (1991), pp. 48–60.

16. Larry Neumeister and Tom Hays, ‘‘Madoff Sent to Jail as Furious Vic- tims Applaud,’’ The Huffington Post (March 12, 2009), http:// www.huffingtonpost.com/2009/03/12/madoff-arrives-in-court- f_n_174194.html (accessed May 30, 2013); and Julie Creswell and Landon Thomas Jr., ‘‘The Talented Mr. Madoff,’’ The New York Times (January 25, 2009), p. BU1.

17. James M. Kouzes and Barry Z. Posner, Credibility: How Leaders Gain and Lose It, Why People Demand It (San Francisco: Jossey-Bass, 1993), p. 14.

18. Kirkpatrick and Locke, ‘‘Leadership: Do Traits Matter? ’’ 19. Patricia Sellers, ‘‘Marissa Mayer: Ready to Rumble at Yahoo,’’

Fortune (October 29, 2012), pp. 118–128; and Julianne Pepitone, ‘‘Marissa Mayer: Yahoos Can No Longer Work from Home,’’ CNN Money (February 25, 2013), http://money.cnn.com/2013/02/25/tech- nology/yahoo-work-from-home/index.html (accessed March 11, 2013).

20. ‘‘Towards a More Perfect Match: Building Successful Leaders by Effec- tively Aligning People and Roles,’’ Hay Group Working Paper (2004); and ‘‘Making Sure the Suit Fits,’’ Hay Group Research Brief (2004). Both available from 116 Huntington Avenue, Boston, MA 02116: Hay Group, The McClelland Center,, or at http://www.haygroup.com.

21. The following is based on Marcus Buckingham and Donald O. Clifton, Now, Discover Your Strengths (New York: The Free Press, 2001); and


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Chuck Martin with Peg Dawson and Richard Guare, Smarts: Are We Hardwired for Success? (New York: AMACOM, 2007).

22. Deborah Ancona, Thomas W. Malone, Wanda J. Orlikowski, and Peter M. Senge, ‘‘In Praise of the Incomplete Leader,’’ Harvard Busi- ness Review (February 2007), pp. 92–100.

23. Center for Creative Leadership survey results, reported in ‘‘The Demise of the Heroic Leader,’’ Leader to Leader (Fall 2006), pp. 55–56.

24. Buckingham and Clifton, Now, Discover Your Strengths, p. 12. 25. Ibid. 26. Bill George, ‘‘The Master Gives It Back,’’ segment in ‘‘Special Report:

America’s Best Leaders,’’ U.S. News and World Report (October 30, 2006), pp. 50–87; and Richard L. Daft, The Executive and the Ele- phant: A Leader’s Guide to Building Inner Excellence (San Francisco: Jossey-Bass, 2010), p. 149.

27. This discussion is based on Ron Garonzik, Geoff Nethersell, and Scott Spreier, ‘‘Navigating through the New Leadership Landscape,’’ Leader to Leader (Winter 2006), pp. 30–39; ‘‘Towards a More Perfect Match: Building Successful Leaders by Effectively Aligning People and Roles,’’ Hay Group Working Paper (2004); and ‘‘Making Sure the ‘Suit’ Fits,’’ Hay Group Research Brief (2004). Available from 116 Huntington Avenue, Boston, MA, 02116: Hay Group, The McClelland Center, or at http://www.haygroup.com.

28. K. Lewin, ‘‘Field Theory and Experiment in Social Psychology: Con- cepts and Methods,’’ American Journal of Sociology 44 (1939), pp. 868–896; K. Lewin and R. Lippett, ‘‘An Experimental Approach to the Study of Autocracy and Democracy: A Preliminary Note,’’ Sociometry 1 (1938), pp. 292–300; and K. Lewin, R. Lippett, and R. K. White, ‘‘Patterns of Aggressive Behavior in Experimentally Created Social Climates,’’ Journal of Social Psychology 10 (1939), pp. 271–301.

29. R. Tannenbaum and W. H. Schmidt, ‘‘How to Choose a Leadership Pattern,’’ Harvard Business Review 36 (1958), pp. 95–101.

30. F. A. Heller and G. A. Yukl, ‘‘Participation, Managerial Decision- Making and Situational Variables,’’ Organizational Behavior and Human Performance 4 (1969), pp. 227–241.

31. ‘‘Jack’s Recipe (Management Principles Used by Jack Hartnett, Presi- dent of D. L. Rogers Corp.),’’ sidebar in Marc Ballon, ‘‘Extreme Managing: Equal Parts Old-Fashioned Dictator and New Age Father Figure, Jack Hartnett Breaks Nearly Every Rule of the Enlightened Manager’s Code,’’ Inc. (July 1998), p. 60.

32. Eileen Newman Rubin, ‘‘Assessing Your Leadership Style to Achieve Organizational Objectives,’’ Global Business and Organizational Excellence (September–October 2013), pp. 55–66; Bill George, ‘‘The Master Gives It Back,’’ segment in ‘‘Special Report: America’s Best Leaders,’’ U.S. News and World Report (October 30, 2006), pp. 50–87; and Richard L. Daft, The Executive and the Elephant: A Leader’s Guide to Building Inner Excellence (San Francisco: Jossey-Bass, 2010), p. 149.

33. Donna Fenn, ‘‘The Remote Control CEO,’’ Inc. (October 2005), pp. 96–101, 144–146.

34. J. K. Hemphill and A. E. Coons, ‘‘Development of the Leader Behavior Description Questionnaire,’’ in R. M. Stogdill and A. E. Coons, eds., Leader Behavior: Its Description and Measurement (Columbus: Ohio State University, Bureau of Business Research, 1957).

35. P. C. Nystrom, ‘‘Managers and the High-High Leader Myth,’’ Acad- emy of Management Journal 21 (1978), pp. 325–331; and L. L. Lar- son, J. G. Hunt, and Richard N. Osborn, ‘‘The Great High-High Leader Behavior Myth: A Lesson from Occam’s Razor,’’ Academy of Management Journal 19 (1976), pp. 628–641.

36. Christopher Cooper, ‘‘Speed Trap: How a Marine Lost His Command in Race to Baghdad,’’ The Wall Street Journal (April 5, 2004), pp. A1, A15.

37. E. W. Skinner, ‘‘Relationships between Leadership Behavior Patterns and Organizational-Situational Variables,’’ Personnel Psychology 22 (1969), pp. 489–494; E. A. Fleishman and E. F. Harris, ‘‘Patterns of Leadership Behavior Related to Employee Grievances and Turnover,’’ Personnel Psychology 15 (1962), pp. 43–56; and Ronald F. Piccolo, Joyce E. Bono, Kathrin Heinitz, Jens Rowold, Emily Duehr, and Timothy A. Judge, ‘‘The Relative Impact of Complementary Leader

Behaviors: Which Matter Most?’’ The Leadership Quaterly 23 (2012), pp. 567–581.

38. A. W. Halpin and B. J. Winer, ‘‘A Factorial Study of the Leader Behav- ior Descriptions,’’ in R. M. Stogdill and A. E. Coons, eds., Leader Behavior: Its Descriptions and Measurement (Columbus: Ohio State University, Bureau of Business Research, 1957); and J. K. Hemphill, ‘‘Leadership Behavior Associated with the Administrative Reputations of College Departments,’’ Journal of Educational Psychology 46 (1955), pp. 385–401.

39. R. Likert, ‘‘From Production- and Employee-Centeredness to Systems 1–4,’’ Journal of Management 5 (1979), pp. 147–156.

40. J. Taylor and D. Bowers, The Survey of Organizations: A Machine Scored Standardized Questionnaire Instrument (Ann Arbor: Institute for Social Research, University of Michigan, 1972).

41. D. G. Bowers and S. E. Seashore, ‘‘Predicting Organizational Effective- ness with a Four-Factor Theory of Leadership,’’ Administrative Science Quarterly 11 (1966), pp. 238–263.

42. Ibid. 43. Robert Blake and Jane S. Mouton, The Managerial Grid III (Houston:

Gulf Publishing Company, 1985). 44. Diane Brady and Matthew Boyle, ‘‘Campbell’s Recipe for a CEO

Yields Denise Morrison,’’ Business Week (June 23, 2011), http:// www.businessweek.com/magazine/content/11_27/b4235060614059.htm (accessed March 12, 2013); Michael Arrington, ‘‘The Way I Work: My Style Is to Bust the Door Down and Clean the Mess Up Later,’’ Inc. (October 2010), pp. 124–128; and Jeff Bercovici, ‘‘TechCrunch CEO Reported Out after Clashing with HuffPost-ers,’’ Forbes (November 17, 2011), http://www.forbes.com/sites/jeffbercovici/2011/11/17/techcrunch- ceo-reported-out-after-clashing-with-huffpost-ers/ (accessed March 13, 2013).

45. Gary Yukl, ‘‘Effective Leadership Behavior: What We Know and What Questions Need More Attention,’’ Academy of Management Perspec- tives 26 (November 2012), pp. 66–80; and Gary Yukl, Angela Gordon, and Tom Taber, ‘‘A Hierarchical Taxonomy of Leadership Behavior: Integrating a Half Century of Behavior Research,’’ Journal of Leader- ship and Organizational Studies 9, no. 1 (2002), pp. 15–32.

46. Jessica E. Lessin, ‘‘Eddy Cue: Apple’s Rising Mr. Fix-It,’’ The Wall Street Journal (November 28, 2012), p. B1.

47. Francis J. Yammarino and Fred Dansereau, ‘‘Individualized Leader- ship,’’ Journal of Leadership and Organizational Studies 9, no. 1 (2002), pp. 90–99; Gary Yukl, Mark O’Donnell, and Thomas Taber, ‘‘Influence of Leader Behaviors on the Leader-Member Exchange Relationship,’’ Journal of Managerial Psychology 24, no. 4 (2009), pp. 289–299; and M. O’Donnell, G. Yukl, and T. Taber, ‘‘Leader Behavior and LMX: A Constructive Replication,’’ Journal of Manage- ment Psychology 27, no. 2 (2012), pp. 143–154.

48. This discussion is based on Fred Dansereau, ‘‘A Dyadic Approach to Leadership: Creating and Nurturing This Approach under Fire,’’ Lead- ership Quarterly 6, no. 4 (1995), pp. 479–490; and George B. Graen and Mary Uhl-Bien, ‘‘Relationship-Based Approach to Leadership: Development of Leader–Member Exchange (LMX) Theory of Leader- ship over 25 Years: Applying a Multi-Level Multi-Domain Approach,’’ Leadership Quarterly 6, no. 2 (1995), pp. 219–247.

49. Tom Fox, ‘‘Do Your Employees Think You Play Favorites? Three Ways to Tell,’’ The Washington Post (January 30, 2014), https:// www.washingtonpost.com/news/on-leadership/wp/2014/01/30/do-your- employees-think-you-play-favorites-three-ways-to-tell/ (accessed October 9, 2015).

50. See A. J. Kinicki and R. P. Vecchio, ‘‘Influences on the Quality of Supervisor-Subordinate Relations: The Role of Time Pressure, Organi- zational Commitment, and Locus of Control,’’ Journal of Organiza- tional Behavior (January 1994), pp. 75–82; R. C. Liden, S. J. Wayne, and D. Stilwell, ‘‘A Longitudinal Study on the Early Development of Leader–Member Exchanges,’’ Journal of Applied Psychology (August 1993), pp. 662–674; Yammarino and Dansereau, ‘‘Individualized Leadership’’; Jean-François Manzoni and Jean-Louis Barsoux, ‘‘The


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Set-Up-to-Fail Syndrome,’’ Harvard Business Review 76 (March–April 1998), pp. 101–113; Yukl et al., ‘‘Influence of Leader Behaviors on the Leader-Member Exchange Relationship’’; and O’Donnell et al., ‘‘Leader Behavior and LMX: A Constructive Replication.’’

51. W. E. McClane, ‘‘Implications of Member Role Differentiation: Analy- sis of a Key Concept in the LMX Model of Leadership,’’ Group and Organization Studies 16 (1991), pp. 102–113; and Gary Yukl, Leader- ship in Organizations, 2nd ed. (Upper Saddle River, NJ: Prentice Hall, 1989).

52. Manzoni and Barsoux, ‘‘The Set-Up-to-Fail Syndrome.’’ 53. Donald F. Kuratko and Richard M. Hodgetts, Entrepreneurship: A

Contemporary Approach, 4th ed. (Fort Worth, TX: Dryden Press, 1998), p. 30.

54. These are based on Todd Warner, ‘‘5 Essential Qualities for Entrepre- neurial Leadership,’’ Forbes (June 8, 2012), http://www.forbes.com/ sites/startupviews/2012/06/08/5-essential-qualities-for-entrepreneurial- leadership/ (accessed October 9, 2015); Kristina L. Guo, ‘‘Core Com- petencies of the Entrepreneurial Leader in Health Care Organizations,’’ Health Care Manager 28 (January–March 2009), pp. 19–29; and Gary A. Knight, ‘‘Cross-Cultural Reliability and Validity of a Scale to Meas- ure Firm Entrepreneurial Orientation,’’ Journal of Business Venturing 12 (1997), pp. 213–225.

55. Colleen Leahey, ‘‘Doing It for Themselves,’’ Fortune (October 17, 2011), pp. 144–148.

56. Reprinted with permission from Gary Yukl, Leadership in Organiza- tions, 4th ed. (Upper Saddle River, NJ: Prentice Hall, 1998), p. 66.


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Chapter 3: Contingency Approaches to Leadership

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YOUR LEADERSHIP CHALLENGE After reading this chapter, you should be able to:

• Understand how leadership is often contingent on people and situations. • Apply Hersey and Blanchard’s situational theory of leader style to the level of follower readiness. • Apply Fiedler’s contingency model to key relationships among leader style, situational favorability, and group task performance.

• Explain the path–goal theory of leadership. • Use the Vroom–Jago model to identify the correct amount of follower participation in specific decision situations.

• Know how to use the power of situational variables to substitute for or neutralize the need for leadership.

CHAPTER OUTLINE 66 The Contingency Approach

69 Hersey and Blanchard’s Situational Theory

73 Fiedler’s Contingency Model

77 Path–Goal Theory

81 The Vroom–Jago Contingency Model

88 Substitutes for Leadership

In The Lead

72 Laura Smith, Yola

75 Sergio Marchionne, Fiat Chrysler Automobiles

79 Alan Robbins, Plastic Lumber Company

87 Art Weinstein, Whitlock Manufacturing

88 Daniel Snyder, Washington Redskins

Leader’s Self-Insight

69 T–P Leadership Questionnaire: An Assessment of Style

73 Are You Ready?

90 Measuring Substitutes for Leadership

Leader’s Bookshelf

67 Shackleton’s Way: Leadership Lessons from the Great Antarctic Explorer

Leadership at Work

92 Task versus Relationship Role Play

Leadership Development: Cases for Analysis

93 Alvis Corporation

94 An Impossible Dream?

A few hours after being named only the third CEO in Microsoft’s history,Satya Nadella held a short impromptu town hall Webcast, near the end ofwhich he said, ‘‘If you have to get back to [something] because it’s more interesting or important, please . . .’’ The gesture reflects the style of Nadella, who previously led the company’s cloud and enterprise businesses, as a quiet, humble leader who emphasizes listening, helpfulness, and collaboration. Previous CEO Steve Ballmer, in contrast, had a forceful, driven approach to leadership and was known for his competitiveness and exuberant displays of emotion.1 Yet both leaders have been successful within the same organization.

This example points to what researchers of leader traits and behaviors eventually discovered: Many different leadership styles can be effective. What, then, determines the success of a leadership style?

One factor that affects what leadership approach will be most effective is the situation in which leadership activities occur. Over the years, researchers have

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observed that leaders frequently behave situationally—that is, they adjust their leadership style depending on a variety of factors in the situations they face. In this chapter, we discuss the elements of leader, followers, and the situation, and the impact each has upon the others. We examine several theories that define how leadership styles, follower attributes, and organizational characteristics fit together to enable successful leadership. The important point of this chapter is that the most effective leadership approach depends on many factors. Understanding the contin- gency approaches can help a leader adapt his or her approach, although it is impor- tant to recognize that leaders also develop their ability to adapt through experience and practice.

3-1 THE CONTINGENCY APPROACH The failure to find universal leader traits or behaviors that would always determine effective leadership led researchers in a new direction. Although leader behavior was still examined, the central focus of the new research was the situation in which leadership occurred. The basic tenet of this focus was that behavior effective in some circumstances might be ineffective under different conditions. Thus, the effectiveness of leader behavior is contingent upon organizational situations. Aptly called contin- gency approaches, these theories explain the relationship between leadership styles and effectiveness in specific situations.

In Exhibit 3.1, the universalistic approach as described in Chapter 2 is compared to the contingency approach described in this chapter. In Chapter 2, researchers were investigating traits or behaviors that could improve performance and satisfaction in any or all situations. They sought universal leadership traits and behaviors. Contingency means that one thing depends on other things, and for a leader to be effective there must be an appropriate fit between the leader’s behavior

EXHIBIT 3.1 Comparing the Universalistic and Contingency Approaches to Leadership

Universalistic Approach

Contingency Approach

Followers Situation


Outcomes (Performance, satisfaction, etc.)

Leadership Traits/Behaviors

Style Traits

Behavior Position

Outcomes (Performance, satisfaction, etc.)

Needs Maturity Training


Task Structure Systems


Contingency a theory meaning one thing depends on other things


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and style and the conditions in the situation. A leadership style that works in one sit- uation might not work in another situation. There is no one best way of leadership. Contingency means ‘‘it depends.’’ Many leaders today look to an early twentieth- century explorer for inspiration on how to lead through an extreme situation, as described in this chapter’s Leader’s Bookshelf.

The contingencies most important to leadership as shown in Exhibit 3.1 are the sit- uation and followers. Research implies that situational variables such as task, structure, context, and environment are important to leadership style. The nature of followers

LEADER’S BOOKSHELF Shackleton’s Way: Leadership Lessons from the Great Antarctic Explorer

by Margot Morrell and Stephanie Capparell

‘‘Men wanted for hazardous journey. Small wages. Bitter cold. Long months of complete darkness. Constant danger. Safe return doubtful. Honour and rec- ognition in case of success.’’

Would you sign up for this job? When Sir Ernest Shackleton set out with a crew of 27 in 1914 with the goal of crossing the continent of Antarctica on foot, he probably didn’t understand how utterly true the wording of his ad would turn out to be. His boat, the Endurance, never even touched land but became stuck in ice in the Weddell Sea for months and eventually sank. The men were left drifting on ice floes 1,200 miles from civilization, in danger- ous cold, with only three lifeboats and limited provisions. They must have been terrified, and things didn’t get much better for almost two long, brutal years. But, amazingly, every member of Shackleton’s crew survived.

Margot Morrell and Stephanie Cap- parell analyzed the diaries of Shackleton and crew members to understand what brand of leadership enabled their survival through severe cold, isolation, near starvation, life-threatening storms, and all manner of other hardships. Their book tells a fascinating and inspiring adventure story but also offers lessons for today’s leaders about how to lead in a situation of great stress and hardship.

LESSONS FOR LEADING IN TOUGH TIMES Shackleton’s team eventually made it to a small island and waited while

Shackleton and a few members took a small boat 800 miles over treacherous seas to a whaling station, and then Shackleton took a ship back to rescue the others. Here are some tips from Shackleton’s handling of the crew that apply to leading through any tough situation.

• Step up immediately. After they abandoned the sinking ship, Shackle- ton encouraged people with a sim- ple speech that acknowledged the dangers but expressed optimism and made clear that he was in charge and he would lead them through this. ‘‘Optimism is true moral courage,’’ Shackleton is quoted as saying. By expressing optimism, Shackleton reminded crew members of the faith he had in each of them.

• Keep fairness in mind always. Shackleton placed great value on every member of the crew, and he gained their admiration and respect by his fair, consistent, and egalitarian treatment of them. Each member was expected to do any job on the ship. One high-ranking crew mem- ber wrote: ‘‘[S]crubbing the floors . . . humbles one and knocks out of one any last remnants of false pride that one may have left in one and for this reason I do it voluntarily.’’

• Let everyone contribute to success. When disaster struck, Shackleton knew the various tasks that had to be performed if the group were to survive, and he made sure everyone

had assignments that let them contribute to the solution to their dire predicament. To keep spirits high, he used humor and other diversions (one of the few items he rescued from the sinking ship was a banjo). He took the most difficult people into his own tent to win their support and prevent them from infecting the rest of the crew with discouragement.

ADAPTABILITY MAKES IT POSSIBLE Shackleton always looked ahead and kept his eye on the big picture, which enabled him to quickly change course in the face of the unexpected. Commu- nication, especially by listening, helped him see when a new course of action might be needed. Just before the Endur- ance sailed, he fired the cook and three crew members because he learned through listening and observation that they could damage the morale and effectiveness of the crew. ‘‘Shackleton’s optimism was never foolhardy,’’ the book points out. He had confidence in his own abilities and in the abilities of his crew, and he was able to stay flexible enough to abandon what wasn’t work- ing and try something new. It’s a big part of the reason the group survived— and why eight of the crew members came forward to join Shackleton on his final expedition some years later.

Source: Shackleton’s Way, by Margot MorrellShackleton’s Way, by Margot MorrellShackleton’s Way and Stephanie Capparell, is published by Viking Penguin.

67 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

has also been identified as a key contingency. Thus, the needs, maturity, and cohesive- ness of followers make a significant difference to the best style of leadership.

Several models of situational leadership have been developed. The situational theory of Hersey and Blanchard, the contingency model developed by Fiedler and his associates, path–goal theory, the Vroom–Jago model of decision participation, and the substitutes-for-leadership concept will all be described in this chapter. These contingency approaches seek to delineate the characteristics of situations and fol- lowers and examine the leadership styles that can be used effectively. Assuming that a leader can properly diagnose a situation and muster the flexibility to behave according to the appropriate style, successful outcomes are highly likely.

Two basic leadership behaviors that can be adjusted to address various contin- gencies are task behavior and relationship behavior, introduced in Chapter 2. Research has identified these two meta-categories, or broadly defined behavior categories, as applicable to leadership in a variety of situations and time periods.2

A leader can adapt his or her style to be high or low on both task and relationship behavior. Exhibit 3.2 illustrates the four possible behavior approaches—low task– high relationship, high task–high relationship, high task–low relationship, and low task–low relationship. The exhibit describes typical task and relationship behaviors. High task behaviors include planning short-term activities, clarifying tasks, objec- tives, and role expectations, and monitoring operations and performance. High rela- tionship behaviors include providing support and recognition, developing followers’ skills and confidence, and consulting and empowering followers when making decisions and solving problems. Most leaders typically lean toward being stronger in either task-oriented or relationship-oriented behavior, but most experts suggest that a balance of concern for tasks and concern for people is crucial for leadership success over the long term.3

EXHIBIT 3.2 Meta-Categories of Leader Behavior and Four Leader Styles









Low Low High

Coaching toward achievement style Combine task and relationship


High Task–High RelationshipLow Task–High Relationship Participative or supportive style Provide support and encouragement Develop followers’ skill and confidence Consult followers when making

decisions and solving problems

Low Task–Low Relationship Delegating style Low concern for both tasks and


High Task–Low Relationship Authoritative style Plan short-term activities Clarify tasks, objectives, and

expectations Monitor operations and performance

Sources: Based on Gary Yukl, Angela Gordon, and Tom Taber, ‘‘A Hierarchical Taxonomy of Leadership Behavior: Integrating a Half Century of Behavior Research,’’ Journal of Leadership and Organization Studies 9, no. 1 (2002), pp. 15–32 and Gary Yukl, ‘‘Effective Leadership Behavior: What We Know and What Questions Need More Attention,’’ Academy of Management Perspectives (November 2012), pp. 66–81.

NEW LEADER ACTION MEMO Complete the questionnaire in Leader’s Self-Insight 3.1 to assess your relative emphasis on two important categories of leadership behavior.

Contingency approaches approaches that seek to delineate the characteristics of situations and followers and examine the leadership styles that can be used effectively


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Both Hersey and Blanchard’s situational theory and Fiedler’s contingency model, discussed in the following sections, use these meta-categories of leadership behavior but apply them based on different sets of contingencies.

3-2 HERSEY AND BLANCHARD’S SITUATIONAL THEORY The situational theory developed by Hersey and Blanchard is an interesting extension of the Leadership Grid outlined in Chapter 2. This approach focuses on the charac- teristics of followers as the most important element of the situation and conse- quently of determining effective leader behavior. The point of Hersey and Blanchard’s theory is that subordinates vary in readiness level. People low in task readiness, because of little ability or training, or insecurity, need a different leader- ship style than those who are high in readiness and have good ability, skills, confi- dence, and willingness to work.4

LEADER’S SELF-INSIGHT 3.1 T–P Leadership Questionnaire: An Assessment of Style

Instructions: The following items describe aspects of leadership behavior. Assume you are the appointed leader of a student group and feel the pressure for performance improvements to succeed. Respond to each item according to the way you would most likely act in this pressure situation. Indicate whether each item below isMostly False orMostly True for you as awork-group leader.

Mostly False

Mostly True

1. I would hold members personally accountable for their performance. ______ ______

2. I would assign members to specific roles and tasks. ______ ______

3. I would ask the members to work harder. ______ ______

4. I would check on people to know how they are doing. ______ ______

5. I would focus more on execution than on being pleasant with members. ______ ______

6. I would try to make members’ work more pleasant. ______ ______

7. I would focus on maintaining a pleasant atmosphere on the team. ______ ______

8. I would let members do their work the way they think best. ______ ______

9. I would be concerned with people’s personal feelings and welfare. ______ ______

10. I would go out of my way to be helpful to members. ______ ______

Scoring and Interpretation The T–P Leadership Questionnaire is scored as follows: Your T score represents task orientation and is the number of Mostly True answers for questions 1–5. Your P score represents your people or relationship orientation and is the number of Mostly True answers for questions 6–10. A score of 4 or 5 would be considered high for either T or P. A score of 0 or 1 would be considered low. T ¼ _ _ _. P ¼ _ _ _.

Some leaders focus on people needs, leaving task concerns to followers. Other leaders focus on task details with the expectation that followers will carry out instruc- tions. Depending on the situation, both approaches may be effective. The important issue is the ability to identify relevant dimensions of the situation and behave accord- ingly. Through this questionnaire, you can identify your relative emphasis on the two dimensions of task orienta- tion (T) and people orientation (P). These are not opposite approaches, and an individual can rate high or low on either or both.

What is your leadership orientation? Compare your results from this assignment to your result from the quiz in Leader’s Self-Insight 2.2 in Chapter 2. What would you con- sider an ideal leader situation for your style?

Source: Based on the T–P Leadership Questionnaire as published in ‘‘Toward a Particularistic Approach to Leadership Style: Some Find- ings,’’ by T. J. Sergiovanni, R. Metzcus, and L. Burden, American Educa- tional Research Journal 6, no. 1 (1969), pp. 62–79.

Situational theory Hersey and Blanchard’s extension of the Leadership Grid focusing on the charac- teristics of followers as the important element of the situation, and consequently, of determining effective leader behavior

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3-2a Leader Style According to the situational theory, a leader can adopt one of four leadership styles, based on a combination of relationship (concern for people) and task (concern for pro- duction) behavior. The appropriate style depends on the readiness level of followers.

Exhibit 3.3 summarizes the relationship between leader style and follower readi- ness. The upper part of the exhibit indicates the style of the leader, which is based on a combination of concern for people and concern for production tasks. The bell- shaped curve is called a prescriptive curve because it indicates when each style should be used. The four styles are telling, selling, participating, and delegating. The telling style (S1) is a very directive approach that reflects a high concern for tasks and a low concern for people and relationships, as shown in the exhibit. The leader provides detailed objectives and explicit instructions about how tasks should be accomplished. The selling style (S2) is based on a high concern for both relationships and tasks. With this approach, the leader provides task instruction and personal support, explains

EXHIBIT 3.3 The Situational Model of Leadership

(S up

po rt

iv e

B eh

av io

r) R







Share ideas and facilitate in decision making

Explain decisions and provide opportunity for clarification

Turn over responsibility for decisions and implementation

Able and Willing

or Confident

Able but Unwilling

or Insecure

Unable but Willing

or Confident

Unable and Unwilling

or Insecure

Provide specific instructions and closely supervise performance


H )











S3 S2


R3 R2 R1










Source: Adapted from The Hersey and Blanchard Situational Leadership Model / The Center for Leadership Studies, Inc.


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decisions, and gives followers a chance to ask questions and gain clarity about work tasks. The participating style (S3) is characterized by high relationship and low task behavior. The leader encourages participation, consults with followers, and facilitates decision making. The fourth style, the delegating style (S4), reflects a low concern for both tasks and relationships. This leader provides little direction or support because com- plete responsibility for decisions and their implementation is turned over to followers.

3-2b Follower Readiness The appropriate style depends on the readiness level of followers, indicated in the lower part of Exhibit 3.3. R1 represents low readiness and R4 represents high follower readiness. The essence of Hersey and Blanchard’s situational theory is for the leader to diagnose a follower’s readiness and select a style that is appropriate for the readiness level, such as the follower’s degree of education and skills, experience, self-confidence, and work attitudes.

R1 Low Readiness When one or more followers exhibit very low levels of readiness, the leader has to use a telling style, telling followers exactly what to do, directing them in how to do it, and specifying timelines. For example, Phil Hagans owns two McDonald’s franchises in northeast Houston and gives many young workers their first job. He uses a telling style regarding everything from how to dress to the correct way to clean the grill, giving young workers the strong direction they need to de- velop to higher levels of skill and self-confidence.5

R2 Moderate Readiness A selling leadership style works well when followers lack some skills or experience for the job but demonstrate confidence, ability, and willing- ness to learn. With a selling style, the leader gives some direction but also explains deci- sions and clarifies tasks for followers rather than merely instructing how tasks should be performed. Sheryl Sandberg uses a selling style as chief operating officer at Face- book. Many Facebook employees are fresh out of college with little experience, but they are energetic, enthusiastic, and committed. Sandberg’s style combines decisive leadership with persuasion and consensus building. She uses logic and data to explain her decisions, but she also seeks input and feedback from employees. She describes her- self as a leader who tends to ‘‘mentor and demand at the same time.’’6

R3 High Readiness A participating style can be effective when followers have the necessary education, skills, and experience but might be insecure in their abilities and need some encouragement from the leader. The leader can guide followers’ development and act as a resource for advice and assistance. An example of the participating style is Eric Brevig, a visual-effects supervisor with Industrial Light and Magic, who maximizes the creativity of artists and animators by encouraging partic- ipation. Rather than telling people how to do their jobs, Brevig presents them with a challenge and works with them to figure out the best way to meet it.7

R4 Very High Readiness The delegating style of leadership can be effectively used when followers have very high levels of ability, experience, confidence, and willing- ness to accept responsibility for their own task behavior. The leader provides a general goal and sufficient authority to do the tasks as followers see fit. Highly edu- cated professionals such as lawyers, college professors, and social workers would typically fall into this category. There are followers in almost every organization who demonstrate very high readiness.

NEW LEADER ACTION MEMO As a leader, you can tell followers how to perform their tasks if they have few skills, little experience, or low self- confidence. If followers have a moderate degree of skill and show enthusiasm and willingness to learn, provide direction but seek followers’ input and explain your decisions.


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In summary, the telling style (S1) works best for followers who demonstrate very low levels of readiness to take responsibility for their own task behavior, the selling style (S2) is effective for followers with moderate readiness, the participating style (S3) works well for followers with high readiness, and the delegating style (S4) is appropriate for followers with very high readiness. In today’s multigenerational workplace, with people of widely different ages and readiness levels working side by side, many leaders find that they have to use multiple styles. Aaron Brown super- vises a team at IBM that includes employees who span four decades in age, have work experience of between 3 and 30 years, and have varied attitudes, expectations, and ways of working.8 For Brown, getting the best performance out of employees who differ so widely is as challenging—and as energizing—as coping with today’s faster, more competitive business landscape.

Hersey and Blanchard’s contingency model focuses only on the characteristics of followers, not those of the larger situation. The leader should evaluate subordi- nates and adopt whichever style is needed. Using an inappropriate style can hurt morale and performance, as illustrated by the following example.

Laura Smith tried to use a selling or participating style because these approaches fit with her idea of what a ‘‘good’’ leader should be. She failed to realize that many of her employees were at a low readiness level and needed a telling style, with the leader providing clear instructions and specific rules regarding activities and work behavior.

In the Hersey–Blanchard model, leaders can tailor their approach to individual subordinates, similar to the leader–member exchange theory described in Chapter 2.

IN THE LEAD Laura Smith, Yola When 26-year-old Laura Smith opened a yogurt and coffee shop in Washington, D.C. in 2010, she thought she had a winning formula with D.C.’s only fresh yogurt bar. Less than two years later, Yola closed its doors and Smith was looking for a new career. There were several reasons Yola didn’t make it, not least of all the very high rent cost. Yet Smith also acknowledges that an incorrect leadership style hurt the business.

Smith says that if she could have a ‘‘do-over,’’ she would provide more structure, more rules, and more boundaries for her employees, something that is needed in a business where most employees are young and have little work experience. Smith wanted to run her business by allowing employees to have the freedom to express their personal creativity, and she hated the idea of ‘‘telling grown adults when they can take breaks, exactly how to slice a scone out of a baking sheet, and exactly how many minutes late they can be.’’ However, she soon found that her business became characterized by an attitude of permissiveness, where many employees showed up late, performed sloppy work, or did as little as possible while they were on the clock. No one was happy with the work environment.

Smith realized that her employees needed and even wanted to be told what and how to do things. ‘‘It’s the thing I wish I could go back and do over—not because it would have saved my business but because everyone, myself included, would have been so much happier,’’ she says.9

NEW LEADER ACTION MEMO As a leader, you can act as a resource to provide advice and guidance when followers have a high level of skill, experience, and responsibility. Delegate responsibility for decisions and their implementation to followers who have very high levels of skill and positive attitudes.


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If one follower is at a low readiness level, the leader must be very specific, telling the employee exactly what to do, how to do it, and when. For a follower high in readi- ness, the leader provides a general goal and sufficient authority to do the task as the follower sees fit. Leaders can carefully diagnose the readiness level of followers and then apply the appropriate style.

3-3 FIEDLER’S CONTINGENCY MODEL Fiedler and his associates developed a model that takes not only followers but other elements of the situation into consideration.10 Although the model is some- what complicated, the basic idea is simple: Match the leader’s style with the situation most favorable for his or her success. Fiedler’s contingency model was designed to enable leaders to diagnose both leadership style and organizational situation.

3-3a Leadership Style The cornerstone of Fiedler’s theory is the extent to which the leader’s style is relationship-oriented or task-oriented. A relationship-oriented leader is concerned with people. As with the consideration style described in Chapter 2, a relationship- oriented leader establishes mutual trust and respect and listens to employees’ needs.


Instructions: A leader’s style can be contingent upon the readiness level of followers. Think of yourself working in your current or former job. Answer the following questions based on how you are on that job. Please answer whether each item is Mostly False or Mostly True for you in that job.

Mostly False

Mostly True

1. I typically do the exact work required of me, nothing more or less. ______ ______

2. I am often bored and uninterested in the tasks I have to perform. ______ ______

3. I take extended breaks whenever I can. ______ ______

4. I have great interest and enthusiasm for the job. ______ ______

5. I am recognized as an expert by colleagues and coworkers. ______ ______

6. I have a need to perform to the best of my ability. ______ ______

7. I have a great deal of relevant education and experience for this type of work. ______ ______

8. I am involved in ‘‘extra-work’’ activities such as committees. ______ ______

9. I prioritize my work and manage my time well. ______ ______

Scoring and Interpretation In the situational theory of leadership, the higher the follower’s readiness, the more participative and delegat- ing the leader can be. Give yourself one point for each Mostly False answer to items 1–3 and one point for each Mostly True answer to items 4–9. A score of 8–9 points would suggest a ‘‘very high’’ readiness level. A score of 7–8 points would indicate a ‘‘high’’ readiness level. A score of 4–6 points would suggest ‘‘moderate’’ readiness, and 0–3 points would indicate ‘‘low’’ readiness. What is the appropriate leadership style for your readiness level? What leadership style did your supervisor use with you? What do you think accounted for your supervisor’s style? Discuss your results with other students to explore which leader- ship styles are actually used with subordinates who are at different readiness levels.

NEW LEADER ACTION MEMO Answer the questions in Leader’s Self-Insight 3.2 to determine your own readiness level and the style of leadership that would be most appropriate for you as a follower.

Fiedler’s contingency model a model designed to diag- nose whether a leader is task-oriented or relation- ship-oriented and match leader style to the situation

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A task-oriented leader is primarily motivated by task accomplishment. Similar to the initiating structure style described in Chapter 2, a task-oriented leader provides clear directions and sets performance standards.

Leadership style was measured with a questionnaire known as the least preferred coworker (LPC) scale. The LPC scale has a set of 16 bipolar adjectives along an eight-point scale. Examples of the bipolar adjectives used by Fiedler on the LPC scale follow:

open quarrelsome efficient self-assured gloomy

guarded harmonious inefficient hesitant cheerful

If the leader describes the least preferred coworker using positive concepts, he or she is considered relationship-oriented, that is, a leader who cares about and is sensitive to other people’s feelings. Conversely, if a leader uses negative concepts to describe the least preferred coworker, he or she is considered task-oriented, that is, a leader who sees other people in negative terms and places greater value on task activities than on people.

3-3b Situation Fiedler’s model presents the leadership situation in terms of three key elements that can be either favorable or unfavorable to a leader: the quality of leader–member relations, task structure, and position power.

Leader–member relations refers to group atmosphere and members’ attitudes toward and acceptance of the leader. When subordinates trust, respect, and have confidence in the leader, leader–member relations are considered good. When sub- ordinates distrust, do not respect, and have little confidence in the leader, leader– member relations are poor.

Task structure refers to the extent to which tasks performed by the group are defined, involve specific procedures, and have clear, explicit goals. Routine, well- defined tasks, such as those of assembly-line workers, have a high degree of struc- ture. Creative, ill-defined tasks, such as research and development or strategic planning, have a low degree of task structure. When task structure is high, the situation is considered favorable to the leader; when low, the situation is less favorable.

Position power is the extent to which the leader has formal authority over sub- ordinates. Position power is high when the leader has the power to plan and direct the work of subordinates, evaluate it, and reward or punish them. Position power is low when the leader has little authority over subordinates and cannot evaluate their work or reward them. When position power is high, the situation is considered favorable for the leader; when low, the situation is unfavorable.

When leader–member relations are good, task structure is high, and position power is strong, the situation is considered highly favorable to the leader. When leader–member relations are poor, task structure is low, and leader position power is weak, the situation is considered highly unfavorable to the leader. The situation


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would be considered moderately favorable when some of the three elements are high and others low. That is, a leader might have strong position power but tasks are unstructured and leader–member relations are poor. Or, leader–member relations might be good, but position power is weak and tasks are unstructured. There can be various levels of moderate favorability based on various combinations of the three key elements.

3-3c Contingency Theory When Fiedler examined the relationships among leadership style, situational favor- ability, and group task performance, he found the pattern shown in Exhibit 3.4. Task-oriented leaders are more effective when the situation is either highly favorable or highly unfavorable. Relationship-oriented leaders are more effective in situations of moderate favorability.

The task-oriented leader excels in the highly favorable situation because everyone gets along, the task is clear, and the leader has power; all that is needed is for someone to take charge and provide direction. Similarly, if the situation is highly unfavorable to the leader, a great deal of structure and task direction are needed. A strong leader defines task structure and can establish authority over subordinates. Because leader–member relations are poor anyway, a strong task orientation will make no difference to the leader’s popularity. Consider how Sergio Marchionne’s task-oriented leadership style fit the situation he found at Chrysler.

EXHIBIT 3.4 Fiedler’s Classification: How Leader Style Fits the Situation

Highly Unfavorable Situation

Task-Oriented Leader is More Effective

Moderately Favorable Situation

Relationship-Oriented Leader is More Effective

Highly Favorable Situation

Task-Oriented Leader is More Effective

Source: Based on Fred E. Fiedler, ‘‘The Effects of Leadership Training and Experience: A Contingency Model Interpretation,’’ Administrative Science Quarterly 17 (1972), p. 455.

IN THE LEAD Sergio Marchionne, Fiat Chrysler Automobiles The fate of the smallest of the Big Three U.S. automakers rests in the hands of Italian-born Sergio Marchionne, who rescued Fiat from the brink of collapse a few years ago with his close attention to detail. Marchionne is a strong task-oriented leader. Rather than settling into the top-floor executive suite at Chrysler’s Auburn Hills, Michigan, headquarters, Marchionne chose an office in the fourth-floor engineering center. He carries six smartphones and keeps tabs on the smallest details, down to a faulty door handle on the


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Sergio Marchionne’s task-oriented style is appropriate for the difficult situation he found at Chrysler. Researchers at the University of Chicago looked at CEOs of companies in turnaround situations—where companies typically have high debt loads and a need to improve results in a hurry—and found that tough-minded, task- focused characteristics such as analytical skills, a focus on efficiency, and setting high standards were more valuable leader qualities than were relationship skills such as good communication, listening, and teamwork.12

The relationship-oriented leader performs better in situations of moderate favorability because human relations skills are important in achieving high group performance. In these situations, the leader may be moderately well liked, have some power, and supervise jobs that contain some ambiguity. A leader with good interpersonal skills can create a positive group atmosphere that will improve rela- tionships, clarify task structure, and establish position power.

A leader, then, needs to know two things in order to use Fiedler’s contingency theory. First, the leader should know whether he or she has a relationship- or task- oriented style. Second, the leader should diagnose the situation and determine whether leader–member relations, task structure, and position power are favorable or unfavorable.

An important contribution of Fiedler’s research is that it goes beyond the notion of leadership styles to try to show how styles fit the situation. Many studies have been conducted to test Fiedler’s model, and the research in general provides some support for the model.13 However, Fiedler’s model has also been criticized.14 Using the LPC score as a measure of relationship- or task-oriented behavior seems simplis- tic to some researchers, and the weights used to determine situation favorability seem to have been determined in an arbitrary manner. In addition, some observers argue that the empirical support for the model is weak because it is based on correlational results that fail to achieve statistical significance in the majority of cases. The model also isn’t clear about how the model works over time. For instance, if a task-oriented leader such as Sergio Marchionne is matched with an unfavorable situation and is successful, the organizational situation is likely to improve, thus becoming a situation more appropriate for a relationship-oriented leader.

new Dodge Charger. ‘‘If you really want to run the business,’’ he says, ‘‘you need to get involved at this level.’’

Marchionne came into a highly unfavorable situation at Chrysler. Like General Motors, Chrysler had to be rescued by a federal bailout several years ago, and Marchionne took charge just after the company emerged from bankruptcy and Fiat assumed part ownership. Sales were slumping, Chrysler’s image was tarnished, morale and motivation were low, costs were high, and operational problems plagued the company. Marchionne became known at Fiat for working long hours, seven days a week, and he told his top executives at Chrysler to plan on doing the same for the foreseeable future. He meets with managers regularly and gives them specific orders for what he wants to see accomplished. Managers who were committed to staying stuck in the old way of doing things were fired.

Chrysler has been slower to bounce back than GM, but Marchionne’s task-oriented leadership is having a positive effect. Sales are improving, and operational problems have been brought under control. In addition, Marchionne’s hard-hitting approach has brought a refreshing energy into the organization, giving employees a greater sense of hope and motivation.11

NEW LEADER ACTION MEMO As a leader, you can effectively use a task-oriented style when the organizational situation is either highly unfavorable or highly favorable to you as a leader. Use a relationship- oriented style in situations of moderate favorability because human relations skills can create a positive atmosphere.


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Will Marchionne’s task-oriented style continue to be effective under more favorable circumstances at Chrysler? Can or should he try to shift to a more relationship-oriented leader style? Fiedler’s model doesn’t address this issue.

Finally, Fiedler’s model and much of the subsequent research fail to consider medium LPC leaders, who some studies indicate are more effective than either high or low LPC leaders in a majority of situations.15 Leaders who score in the mid-range on the LPC scale presumably balance the concern for relationships with a concern for task achievement more effectively than high or low LPC leaders, making them more adaptable to a variety of situations.

New research has continued to improve Fiedler’s model,16 and it is still consid- ered an important contribution to leadership studies. However, its major impact may have been to stir other researchers to consider situational factors more seri- ously. A number of other situational theories have been developed in the years since Fiedler’s original research.

3-4 PATH–GOAL THEORY According to the path–goal theory, the leader’s responsibility is to increase subor- dinates’ motivation to attain personal and organizational goals.17 As illustrated in Exhibit 3.5, the leader increases follower motivation by either (1) clarifying the follower’s path to the rewards that are available or (2) increasing the rewards that the follower values and desires. Path clarification means that the leader works with subordinates to help them identify and learn the behaviors that will lead to successful task accomplishment and organizational rewards. Increasing rewards means that the leader talks with subordinates to learn which rewards are impor- tant to them—that is, whether they desire intrinsic rewards from the work itself or extrinsic rewards such as raises or promotions. The leader’s job is to increase personal payoffs to subordinates for goal attainment and to make the paths to these payoffs clear and easy to travel.18

This model is called a contingency theory because it consists of three sets of contingencies—leader style, followers and situation, and the rewards to meet fol- lowers’ needs.19 Whereas the Fiedler theory made the assumption that new leaders could take over as situations change, in the path–goal theory, leaders change their behaviors to match the situation.

3-4a Leader Behavior The path–goal theory suggests a fourfold classification of leader behaviors.20 These classifications are the types of behavior the leader can adopt and include supportive, directive, achievement-oriented, and participative styles.

Supportive leadership shows concern for subordinates’ well-being and personal needs. Leadership behavior is open, friendly, and approachable, and the leader creates a team climate and treats subordinates as equals. Supportive leadership is similar to the consideration or people-oriented leadership described earlier. An example is Jay Goltz, an entrepreneur who owns five small businesses in Chicago, who has always used supportive leadership. He has loaned money to employees, guaranteed car loans, helped several employees buy houses, and even bailed a couple of employees out of jail.21

Path–goal theory a contingency approach to leadership in which the leader’s responsibility is to increase subordinates’ moti- vation by clarifying the behaviors necessary for task accomplishment and rewards

NEW LEADER ACTION MEMO As a leader, you can increase follower motivation, satisfaction, and performance by adopting a leadership behavior that will clarify the follower’s path to receiving available rewards or increase the availability of rewards the follower desires.


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Directive leadership tells subordinates exactly what they are supposed to do. Leader behavior includes planning, making schedules, setting performance goals and behavior standards, and stressing adherence to rules and regulations. Directive leadership behavior is similar to the initiating structure or task-oriented leadership style described earlier.

Participative leadership consults with subordinates about decisions. Leader behavior includes asking for opinions and suggestions, encouraging participation in decision making, and meeting with subordinates in their workplaces. The participa- tive leader encourages group discussion and suggestions, similar to the coaching or supporting style in the Hersey and Blanchard model.

Achievement-oriented leadership sets clear and challenging goals for subordi- nates. Leader behavior stresses high-quality performance and improvement over current performance. Achievement-oriented leaders also show confidence in subor- dinates and assist them in learning how to achieve high goals.

The four types of leader behavior are not considered ingrained personality traits as in the earlier trait theories; rather, they reflect types of behavior that every leader is able to adopt, depending on the situation. Here’s how Alan Robbins, founder of

EXHIBIT 3.5 Leader Roles in the Path–Goal Model

Clarify Path Increase Rewards

Leader defines what follower must do to attain work outcomes

Leader clarifies follower’s work role

Follower has increased knowledge and confidence to accomplish outcomes

Follower displays increased effort and motivation

Organizational work out- comes are accomplished

Leader learns follower’s needs

Leader matches follower’s needs to rewards if work outcomes are accomplished

Leader increases value of work outcomes for follower

Source: Reprinted from Organizational Dynamics, 13 (Winter 1985), Bernard M. Bass, ‘‘Leadership: Good, Better, Best,’’ pp. 26–40, Copyright 1985, with permission from Elsevier.The boss drives

people; the leader coaches them. The boss depends on

authority; the leader on good will. The boss

inspires fear; the leader inspires enthusiasm.

H. Gordon Selfridge (1864–1947), founder

of British retailer Selfridges.


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Plastic Lumber Company, shifted from a participative to a directive style and got better results from his employees.

Alan Robbins had believed his participative style would be appreciated by employees. However, employee satisfaction increased when he began using a directive style and specifying what was expected and what behaviors would not be tolerated. The directive style enabled people to focus on meeting performance standards by following clear procedures and guidelines. Thus, although Robbins would prefer to be participative, he realized it was not the best approach for the situation. The Con- sider This box provides an interesting perspective on the disadvantages of persisting in a behavior style despite the processes of change.

3-4b Situational Contingencies The two important situational contingencies in the path–goal theory are (1) the per- sonal characteristics of group members and (2) the work environment. Personal characteristics of followers are similar to Hersey and Blanchard’s readiness level and include such factors as ability, skills, needs, and motivations. For example, if an employee has a low level of ability or skill, the leader may need to provide addi- tional training or coaching in order for the worker to improve performance. If a subordinate is self-centered, the leader may use monetary rewards to motivate him or her. Subordinates who want or need clear direction and authority require a direc- tive leader to tell them exactly what to do. Craft workers and professionals, how- ever, may want more freedom and autonomy and work best under a participative leadership style.

IN THE LEAD Alan Robbins, Plastic Lumber Company Alan Robbins started Plastic Lumber Company because he saw a way to both help the planet and make money by converting plastic milk and soda bottles into fake lumber. He also had definite ideas about how to run a company. Robbins wanted to be both a boss and a friend to his employees. His leadership style stressed teamwork and participation, and Robbins spent a lot of time running ideas by workers on the factory floor. However, he soon learned that most of his low-skilled workers didn’t really want a chance to participate; they just wanted clear direction and consistent standards so that people knew what was expected of them.

The degree of freedom Robbins allowed with his participative style actually led to some serious problems. Some workers were frequently absent or late without calling, showed up under the influence of alcohol or drugs, and started fights on the factory floor. Letting employees participate in decision making weakened Robbins’s authority in many employees’ eyes. Those who genuinely wanted to do a good job were frustrated by the lack of order and the fact that some employees seemed to get away with anything.

Even though Robbins had a natural tendency to be a participative leader, he shifted to a directive leadership style to try to restore some order. With a comprehensive rules and policy manual, drug testing for all workers, and clear standards of behavior, the work environment and employee performance at Plastic Lumber improved significantly.22


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The work environment contingencies include the degree of task structure, the nature of the formal authority system, and the work group itself. The task structure is similar to the same concept described in Fiedler’s contingency theory; it includes the extent to which tasks are defined and have explicit job descriptions and work procedures. The formal authority system includes the amount of legitimate power used by leaders and the extent to which policies and rules constrain employees’ behavior. Work-group characteristics consist of the educational level of subordi- nates and the quality of relationships among them.

3-4c Use of Rewards Recall that the leader’s responsibility is to clarify the path to rewards for followers or to increase the amount or type of rewards to enhance satisfaction and job per- formance. In some situations, the leader works with subordinates to help them acquire the skills and confidence needed to perform tasks and achieve rewards already available. In others, the leader may develop new rewards to meet the specific needs of subordinates.

Exhibit 3.6 illustrates four examples of how leadership behavior is tailored to the situation. In the first situation, the subordinate lacks confidence; thus, the sup- portive leadership style provides the social support with which to encourage the sub- ordinate to undertake the behavior needed to do the work and receive the rewards.


The phrase ‘‘too much of a good thing’’ is relevant in leadership. Behavior that becomes over- bearing can be a disadvantage by ultimately resulting in the opposite of what the individual is hoping to achieve.

Polarities All behavior consists of opposites or polarities. If I do anything more and more, over and over, its polarity will appear. For example, striving to be beautiful makes a person ugly, and trying too hard to be kind is a form of selfishness.

Any overdetermined behavior produces its opposite:

• An obsession with living suggests worry about dying. • True simplicity is not easy. • Is it a long time or a short time since we last met? • The braggart probably feels small and insecure. • Who would be first ends up last.

Knowing how polarities work, the wise leader does not push to make things happen but allows a process to unfold on its own.

Source: John Heider, The Tao of Leadership: Leadership Strategies for a New Age (New York: Bantam Books, 1986), p. 3. Copyright 1985 Humanic Ltd., Atlanta, GA. Used with permission.


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In the second situation, the job is ambiguous, and the employee is not performing effectively. Directive leadership behavior is used to give instructions and clarify the task so that the follower will know how to accomplish it and receive rewards. In the third situation, the subordinate is unchallenged by the task; thus, an achievement- oriented behavior is used to set higher goals. This clarifies the path to rewards for the employee. In the fourth situation, an incorrect reward is given to a subordinate, and the participative leadership style is used to change this. By discussing the sub- ordinate’s needs, the leader is able to identify the correct reward for task accom- plishment. In all four cases, the outcome of fitting the leadership behavior to the situation produces greater employee effort by either clarifying how subordinates can receive rewards or changing the rewards to fit their needs.

Path–goal theorizing can be complex, but much of the research on it has been encouraging.23 Using the model to specify precise relationships and make exact predictions about employee outcomes may be difficult, but the four types of leader behavior and the ideas for fitting them to situational contingencies provide a useful way for leaders to think about motivating subordinates.

3-5 THE VROOM–JAGO CONTINGENCY MODEL The Vroom–Jago contingency model shares some basic principles with the previous models, yet it differs in significant ways as well. This model focuses specifically on varying degrees of participative leadership and how each level of participation influ- ences the quality and accountability of decisions. A number of situational factors

EXHIBIT 3.6 Path–Goal Situations and Preferred Leader Behaviors

OutcomeLeader Behavior Impact on FollowerSituation

Follower lacks self-confidence

Ambiguous job

Lack of job challenge

Incorrect reward

Increases confidence to achieve work outcome

Clarifies path to reward

Sets and strives for high goals

Clarifies followers’ needs to change rewards

Increased effort; improved satisfaction and performance

Supportive Leadership

Directive Leadership

Achievement- Oriented Leadership

Participative Leadership

Vroom–Jago contingency model a contingency model that focuses on varying degrees of participative leadership and how each level of participation influences the quality and accountability of decisions


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shape the likelihood that either a participative or autocratic approach will produce the best outcome.

This model starts with the idea that a leader faces a problem that requires a solution. Decisions to solve the problem might be made by a leader alone or by the inclusion of a number of followers.

The Vroom–Jago model is very applied, which means that it tells the leader precisely the correct amount of participation by subordinates to use in making a particular decision.24 The model has three major components: leader participation styles, a set of diagnostic questions with which to analyze a decision situation, and a series of decision rules.

3-5a Leader Participation Styles The model employs five levels of subordinate participation in decision making, rang- ing from highly autocratic (leader decides alone) to highly democratic (leader dele- gates to group), as illustrated in Exhibit 3.7.25 The exhibit shows five decision styles, starting with the leader making the decision alone (Decide); presenting the problem to subordinates individually for their suggestions and then making the deci- sion (Consult Individually); presenting the problem to subordinates as a group,

EXHIBIT 3.7 Five Leader Decision Styles

Decide Consult Individually

Consult Group Facilitate Delegate

Area of Influence by Leader Area of Freedom for Group

You present the problem to the group in a meeting. You act as facilitator, defining the problem to be solved and the boundaries within which the decision must be made. Your objective is to get concurrence on a decision. Above all, you take care to show that your ideas are not given any greater weight than those of others simply because of your position.

You present the problem to the group members in a meeting, get their suggestions, and then make the decision.

You present the problem to the group members individually, get their suggestions, and make the decision.

You make the decision alone and either announce or “sell” it to the group. You may use your expertise in collecting information that you deem relevant to the problem from the group or others.

You permit the group to make the decision within prescribed limits. The group undertakes the identification and diagnosis of the problem, develops alternative procedures for solving it, and decides on one or more alternative solutions. While you play no direct role in the group’s deliberations unless explicitly asked, your role is an important one behind the scenes, providing needed resources and encouragement.

Source: Reprinted from Organizational Dynamics, 28, no. 4, Victor H. Vroom, ‘‘Leadership and the Decision-Making Process,’’ pp. 82–94, Copyright 2000, with permission from Elsevier.


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collectively obtaining their ideas and suggestions, then making the decision (Consult Group); sharing the problem with subordinates as a group and acting as a facilitator to help the group arrive at a decision (Facilitate); or delegating the problem and permitting the group to make the decision within prescribed limits (Delegate). The five styles fall along a continuum, and the leader should select one depending on the situation.

3-5b Diagnostic Questions How does a leader decide which of the five decision styles to use? The appropriate degree of decision participation depends on a number of situational factors, such as the required level of decision quality, the level of leader or subordinate expertise, and the importance of having subordinates commit to the decision. Leaders can ana- lyze the appropriate degree of participation by answering seven diagnostic questions.

1. Decision significance: How significant is this decision for the project or organization? If the decision is highly important and a high-quality decision is needed for the success of the project or organization, the leader has to be actively involved.

2. Importance of commitment: How important is subordinate commitment to carrying out the decision? If implementation requires a high level of commitment to the decision, leaders should involve subordinates in the decision process.

3. Leader expertise: What is the level of the leader’s expertise in relation to the problem? If the leader does not have a high amount of information, knowledge, or expertise, the leader should involve subordinates to obtain it.

4. Likelihood of commitment: If the leader were to make the decision alone, would subordinates have high or low commitment to the decision? If subordinates typically go along with whatever the leader decides, their involvement in the decision-making process will be less important.

5. Group support for goals: What is the degree of subordinate support for the team’s or organization’s objectives at stake in this decision? If subordinates have low support for the goals of the organization, the leader should not allow the group to make the decision alone.

6. Goal expertise: What is the level of group members’ knowledge and expertise in relation to the problem? If subordinates have a high level of expertise in relation to the problem, more responsibility for the decision can be delegated to them.

7. Team competence: How skilled and committed are group members to working together as a team to solve problems? When subordinates have high skills and high desire to work together cooperatively to solve problems, more responsibility for the decision making can be delegated to them.

These questions seem detailed, but considering these seven situational factors can quickly narrow the options and point to the appropriate level of group participation in decision making.

3-5c Selecting a Decision Style Further development of the Vroom–Jago model added concern for time constraints and concern for follower development as explicit criteria for determining the level of participation. That is, a leader considers the relative importance of time versus fol- lower development in selecting a decision style. This led to the development of two


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decision matrixes, a time-based model to be used if time is critical, for example if the organization is facing a crisis and a decision must be made immediately, and a development-based model to be used if time and efficiency are less important criteria than the opportunity to develop the thinking and decision-making skills of followers.

Consider the example of a small auto parts manufacturer, which owns only one machine for performing welds on mufflers. If the machine has broken down and production has come to a standstill, a decision concerning the purchase of a new machine is critical and has to be made immediately to get the production line mov- ing again. In this case, a leader would follow the time-based model for selecting the decision style. However, if the machine is scheduled for routine replacement in three months, time is not a critical factor. The leader is then free to consider the importance of involving production workers in the decision making to develop their skills. Thus, the leader may follow the development-based model because time is not a critical concern.

Exhibit 3.8 and 3.9 illustrate the two decision matrixes—a timesaving-based model and an employee development–based model—that enable leaders to adopt a participation style by answering the diagnostic questions in sequence. Returning to the example of the welding machine, if the machine has broken down and must be replaced immediately, the leader would follow the timesaving-based model in Exhibit 3.8. The leader enters the matrix at the left side, at Problem Statement. The matrix acts as a funnel as you move left to right, responding to the situational questions across the top, answering high (H) or low (L) to each one, and avoiding crossing any horizontal lines.

The first question (decision significance) would be: How significant is this decision for the project or organization? If the answer is High, the leader proceeds to importance of commitment: How important is subordinate commitment to carry- ing out the decision? If the answer is High, the next question pertains to leader expertise: What is the level of the leader’s expertise in relation to the problem? If the leader’s knowledge and expertise are High, the leader next considers likelihood of commitment: If the leader were to make the decision alone, how likely is it that subordinates would be committed to the decision? If there is a high likelihood that subordinates would be committed, the decision matrix leads directly to the Decide style of decision making, in which the leader makes the decision alone and presents it to the group.

As noted earlier, this matrix assumes that time and efficiency are the most im- portant criteria. However, consider how the selection of a decision style would differ if the leader had several months to replace the welding machine and considered follower development of high importance and time of little concern. In this case, the leader would follow the employee development–driven decision matrix in Exhibit 3.9. Beginning again at the left side of the matrix: How significant is this decision for the project or organization? If the answer is High, proceed to importance of com- mitment: How important is subordinate commitment? If high, the next question concerns likelihood of commitment (leader expertise is not considered because the development model is focused on involving subordinates, even if the leader has knowledge and expertise): If the leader were to make the decision alone, how likely is it that subordinates would be committed to the decision? If there is a high likelihood, the leader next considers group support: What is the degree of subordi- nate support for the team’s or organization’s objectives at stake in this decision? If the degree of support for goals is low, the leader proceeds directly to the Group

NEW LEADER ACTION MEMO As a leader, you can use the Vroom–Jago model to determine the appropriate amount of follower participation to use in making a decision. You can follow the time-based guidelines when time is of the essence but use development-based guidelines when cultivating followers’ decision-making skills is also important.


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Consult decision style. However, if the degree of support for goals is high, the leader then asks: What is the level of group members’ knowledge and expertise in relation to the problem? An answer of High would take the leader to the question: How skilled and committed are group members to working together as a team to solve problems?

EXHIBIT 3.8 Timesaving-Based Model for Determining an Appropriate Decision-Making Style—Group Problems

4. L

ik el

ih oo

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t? Decide


Consult (Group)


Consult (Individually)


Consult (Group)



Consult (Individually)





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2. Im

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7. Te



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3. L

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Source: Reprinted from Organizational Dynamics, 28, no. 4, Victor H. Vroom, ‘‘Leadership and the Decision-Making Process,’’ pp. 82–94, Copyright 2000, with permission from Elsevier.


Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

An answer of High would lead to the Delegate style, in which the leader allows the group to make the decision within certain limits.

Note that the timesaving-driven model takes the leader to the first decision style that preserves decision quality and follower acceptance, whereas the employee development–driven model takes other considerations into account. It takes less time to make an autocratic decision (Decide) than to involve subordinates by using a Facilitate or Delegate style. However, in many cases, time and efficiency are less important than the opportunity to foster subordinate development. In many of today’s organizations, where knowledge sharing and widespread participation are considered critical to organizational success, leaders are placing greater emphasis on follower development when time is not a critical issue.

EXHIBIT 3.9 Employee Development–Based Model for Determining an Appropriate Decision-Making Style—Group Problems



Consult (Group)



Consult (Group)



Consult (Group)































4. L

ik el

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d of


om m

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1. D

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2. Im

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Source: Victor H. Vroom, ‘‘Leadership and the Decision-Making Process,’’ Organizational Dynamics 28, no. 4 (Spring 2000), pp. 82–94. This is Vroom’s adaptation of Tannenbaum and Schmidt’s Taxonomy.


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Leaders can quickly learn to use the model to adapt their styles to fit the situa- tion. However, researchers have also developed a computer-based program that allows for greater complexity and precision in the Vroom–Jago model and incorpo- rates the value of time and value of follower development as situational factors rather than portraying them in separate decision matrixes.

The Vroom–Jago model has been criticized as being less than perfect,26 but it is useful to decision makers, and the model is supported by research.27 Leaders can learn to use the model to make timely, high-quality decisions. Let’s try applying the model to the following problem.

In the Whitlock Manufacturing case, either a timesaving-based or an employee development–based model can be used to select a decision style. Although timeliness is important, the leader’s desire to involve subordinates can be considered equally important. Do you think Weinstein used the correct leader decision style? Let’s examine the problem using the employee development–based decision tree since Weinstein is concerned about involving other team members. Moving from left to

IN THE LEAD Art Weinstein, Whitlock Manufacturing When Whitlock Manufacturing won a contract from a large auto manufacturer to produce an engine to power its flagship sports car, Art Weinstein was thrilled to be selected as project manager. The engine, of Japanese design and extremely complex, has gotten rave reviews in the automotive press. This project has dramatically enhanced the reputation of Whitlock Manufacturing, which was previously known primarily as a producer of outboard engines for marine use.

Weinstein and his team of engineers have taken great pride in their work on the project, but their excitement was dashed by a recent report of serious engine problems in cars delivered to customers. Fourteen owners of cars produced during the first month had experienced engine seizures. Taking quick action, the auto manufacturer suspended sales of the sports car, halted current production, and notified owners of the current model not to drive the car. Everyone involved knows this is a disaster. Unless the engine problem is solved quickly, Whitlock Manufacturing could be exposed to extended litigation. In addition, Whitlock’s valued relationship with one of the world’s largest auto manufacturers would probably be lost forever.

As the person most knowledgeable about the engine, Weinstein has spent two weeks in the field inspecting the seized engines and the auto plant where they were installed. In addition, he has carefully examined the operations and practices in Whitlock’s plant where the engine is manufactured. Based on this extensive research, Weinstein is convinced that he knows what the problem is and the best way to solve it. However, his natural inclination is to involve other team members as much as possible in making decisions and solving problems. He not only values their input, but he also thinks that by encouraging greater participation he strengthens the thinking skills of team members, helping them grow and contribute more to the team and the organization. Therefore, Weinstein chooses to consult with his team before making his final decision.

The group meets for several hours that afternoon, discussing the problem in detail and sharing their varied perspectives, including the information Weinstein has gathered during his research. Following the group session, Weinstein makes his decision. He will present the decision at the team meeting the following morning, after which testing and correction of the engine problem will begin.28


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right in Exhibit 3.9, the questions and answers are as follows: How significant is this decision for the organization? Definitely High. Quality of the decision is of critical importance. The company’s future may be at stake. How important is sub- ordinate commitment to carrying out the decision? Also High. The team members must support and implement Weinstein’s solution. Question 3 (leader expertise) is not considered in the employee development–driven model, as shown in Exhibit 3.9. The next question would be If Weinstein makes the decision on his own, will team members have high or low commitment to it? The answer to this question is prob- ably also High. Team members respect Weinstein, and they are likely to accept his analysis of the problem. This leads to the question What is the degree of subordinate support for the team’s or organization’s objectives at stake in this decision? The answer, definitely High, leads to the question What is the level of group members’ knowledge and expertise in relation to the problem? The answer to this question is probably Low, which leads to the Consult Group decision style. Thus, Weinstein used the style that would be recommended by the Vroom–Jago model.

Now, assume that Weinstein chose to place more emphasis on efficient use of time than on employee involvement and development. Using the timesaving-based decision matrix in Exhibit 3.8, answer the questions across the top of the matrix based on the information just provided (rate Weinstein’s level of expertise in ques- tion 3 as high). Remember to avoid crossing any horizontal lines. What decision style is recommended? Is it the same as or different from that recommended by the employee development–based tree?

3-6 SUBSTITUTES FOR LEADERSHIP The contingency leadership approaches considered so far have focused on the lead- er’s style, the followers’ nature, and the situation’s characteristics. The final contin- gency approach suggests that situational variables can be so powerful that they actually substitute for or neutralize the need for leadership.29 This approach outlines those organizational settings in which task-oriented and people-oriented leadership styles are unimportant or unnecessary.

Exhibit 3.10 shows the situational variables that tend to substitute for or neu- tralize leadership characteristics. A substitute for leadership makes the leadership

EXHIBIT 3.10 Substitutes and Neutralizers for Leadership

Variable Task-Oriented Leadership

People-Oriented Leadership

Organizational variables Group cohesiveness Substitutes for Substitutes for Formalization Substitutes for No effect on Inflexibility Neutralizes No effect on Low position power Neutralizes Neutralizes

Task characteristics Highly structured task Substitutes for No effect on Automatic feedback Substitutes for No effect on Intrinsic satisfaction No effect on Substitutes for

Follower characteristics Professionalism Substitutes for Substitutes for Training/experience Substitutes for No effect on Low value of rewards Neutralizes Neutralizes

Substitute a situational variable that makes leadership unneces- sary or redundant


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style unnecessary or redundant. For example, highly educated, professional subordi- nates who know how to do their tasks do not need a leader who initiates structure for them and tells them what to do. In addition, long-term education often develops autonomous, self-motivated individuals. Thus, task-oriented and people-oriented leadership is substituted by professional education and socialization.30

Daniel Snyder, owner of the Washington Redskins football team, discovered that his strong task-oriented approach with his professional, talented coaches was counterproductive.

At the Washington Redskins, the skills, training, experience, and professional- ism of coaches substituted for a task-oriented leadership style of the owner and also made a people-oriented style less important. Daniel Snyder decided to stay on the sidelines and let his coaches and players make the decisions on the field.

Unlike a substitute, a neutralizer counteracts the leadership style and prevents the leader from displaying certain behaviors. For example, if a leader is physically removed from subordinates, the leader’s ability to give directions to subordinates is greatly reduced. FedEx Office (formerly Kinko’s) provides an example. With numer- ous locations widely scattered across regions, regional managers have very limited personal interaction with store managers and employees. Thus, their ability to both support and direct is neutralized.

Situational variables in Exhibit 3.10 include characteristics of the followers, the task, and the organization itself. For example, when subordinates are highly profes- sional, such as research scientists in companies like Merck or Monsanto, both lead- ership styles are less important. The employees do not need either direction or support. With respect to task characteristics, highly structured tasks substitute for a task-oriented style, and a satisfying task substitutes for a people-oriented style.

When a task is highly structured and routine, like auditing cash, the leader should provide personal consideration and support that is not provided by the task. Satisfied people don’t need as much consideration. Likewise, with respect to the or- ganization itself, group cohesiveness substitutes for both leader styles. For example,

IN THE LEAD Daniel Snyder, Washington Redskins For many of Daniel Snyder’s 15 or so years as owner of the Washington Redskins, he had a reputation as a meddlesome, overbearing boss who got in the way of people doing their jobs. He got involved in every detail of the team, even making big decisions on player acquisition himself.

But Snyder has proven that leaders can change. ‘‘He’s stepped back from it,’’ one insider says. ‘‘And he’s having more fun because of it.’’ Some associates say Snyder finally was able to step back because he got tired of all the losses the team racked up—and the criticism he got from fans and the media because of them.

When Snyder started staying in the background, the team seemed to get better. In 2012, the Redskins won their first NFC East division title since 1999, Snyder’s first season as owner. ‘‘I think he deserves a lot of credit,’’ said former general manager Charley Casserly, whom Snyder fired in 1999. ‘‘He’s allowed them to do their jobs. They’ve turned the franchise around and made it a winner again.’’31

Neutralizer a situational characteristic that counteracts the leader- ship style and prevents the leader from displaying cer- tain behaviors

NEW LEADER ACTION MEMO As a leader, you can avoid leadership overkill. Adopt a style that is complementary to the organizational situation to ensure that both task needs and people needs are met.


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the relationship that develops among air traffic controllers and jet fighter pilots is characterized by high-stress interactions and continuous peer training. This cohesiveness provides support and direction that substitute for formal leadership.32

Formalized rules and procedures substitute for leader task orientation because the rules tell people what to do. Physical separation of leader and subordinate neutral- izes both leadership styles.

The value of the situations described in Exhibit 3.10 is that they help leaders avoid leadership overkill. Leaders should adopt a style with which to complement the organizational situation. For example, the work situation for bank tellers pro- vides a high level of formalization, little flexibility, and a highly structured task. The head teller should not adopt a task-oriented style because the organization already provides structure and direction. The head teller should concentrate on a people- oriented style. In other organizations, if group cohesiveness or previous training

LEADER’S SELF-INSIGHT 3.3 Measuring Substitutes for Leadership

Instructions: Think about your current job or a job you have held in the past. Please answer whether each of the following items is Mostly False or Mostly True for you in that job.

Mostly False

Mostly True

1. Because of the nature of the tasks I perform, there is little doubt about the best way to do them. ______ ______

2. My job duties are so simple that almost anyone could perform them well after a little instruction. ______ ______

3. It is difficult to figure out the best way to do many of my tasks and activities. ______ ______

4. There is really only one correct way to perform most of the tasks I do. ______ ______

5. After I’ve completed a task, I can tell right away from the results I get whether I have performed it correctly. ______ ______

6. My job is the kind where you can finish a task and not know if you’ve made a mistake or error. ______ ______

7. Because of the nature of the tasks I do, it is easy for me to see when I have done something exceptionally well. ______ ______

8. I get lots of satisfaction from the work I do. ______ ______

9. It is hard to imagine that anyone could enjoy performing the tasks I have performed on my job. ______ ______

10. My job satisfaction depends primarily on the nature of the tasks and activities I perform. ______ ______

Scoring and Interpretation For your task structure score, give yourself one point for Mostly True answers to items 1, 2, and 4, and for a Mostly False answer to item 3. This is your score for Task Structure: ______

For your task feedback score, give yourself one point for Mostly True answers to items 5 and 7, and for a Mostly False answer to item 6. This is your score for Task Feedback: ______

For your intrinsic satisfaction score, score one point for Mostly True answers to items 8 and 10, and for a Mostly False answer to item 9. This is your score for Intrinsic Satis- faction: ______

A high score (3 or 4) for Task Structure or Task Feed- back indicates a high potential for those elements to act as a substitute for task-oriented leadership. A high score (3) for Intrinsic Satisfaction indicates the potential to be a substitute for people-oriented leadership. Does your leader adopt a style that is complementary to the task situation, or is the leader guilty of leadership overkill? How can you apply this under- standing to your own actions as a leader?

Source: Based on ‘‘Questionnaire Items for the Measurement of Substi- tutes for Leadership,’’ Table 2 in Steven Kerr and John M. Jermier, ‘‘Substi- tutes for Leadership: Their Meaning and Measurement,’’ Organizational Behavior and Human Performance 22 (1978), pp. 375–403.

NEW LEADER ACTION MEMO Measure how the task characteristics of your job or a job you’ve held in the past might act as substitutes for leadership by answering the questions in Leader’s Self- Insight 3.3.

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meets employee social needs, the leader is free to concentrate on task-oriented behaviors. The leader can adopt a style complementary to the organizational situa- tion to ensure that both task needs and people needs of followers are met.

Studies have examined how substitutes (the situation) can be designed to have more impact than leader behaviors on outcomes such as subordinate satisfac- tion.33 The impetus behind this research is the idea that substitutes for leadership can be designed into organizations in ways to complement existing leadership, act in the absence of leadership, and otherwise provide more comprehensive leader- ship alternatives. For example, Paul Reeves, a foreman at Harmon Auto Parts, shared half-days with his subordinates during which they helped him perform his leader tasks. After Reeves’s promotion to middle management, his group no longer required a foreman. Followers were trained to act on their own.34 Thus, a situa- tion in which follower ability and training were highly developed created a substi- tute for leadership.

The ability to use substitutes to fill leadership ‘‘gaps’’ is often advantageous to organizations. Indeed, the fundamental assumption of substitutes-for-leadership researchers is that effective leadership is the ability to recognize and provide the support and direction not already provided by task, group, and organization.

LEADERSHIP ESSENTIALS The most important point in this chapter is that situational variables affect leadership outcomes. The contingency approaches were developed to system- atically address the relationship between a leader and the organization. The contingency approaches focus on how the components of leadership style, sub- ordinate characteristics, and situational elements affect one another. Hersey and Blanchard’s situational theory, Fiedler’s contingency model, the path–goal theory, the Vroom–Jago model, and the substitutes-for-leadership concept each examine how different situations call for different styles of leadership behavior. Hersey and Blanchard contend that leaders can adjust their task or relation- ship style to accommodate the readiness level of their subordinates. According to Fiedler, leaders can determine whether their leadership style is suitable for the situation. Task-oriented leaders tend to do better in very favorable or very unfavorable situations, whereas relationship-oriented leaders do best in situa- tions of intermediate favorability. The path–goal theory states that leaders can use a style that appropriately clarifies the path to desired rewards. The Vroom–Jago model indicates that leaders can choose a participative decision style based on contingencies such as quality requirement, commitment require- ment, or the leader’s knowledge and expertise. In addition, concern for time (the need for a fast decision) versus concern for follower development is taken into account. Finally, the substitutes-for-leadership concept recommends that leaders adjust their style to provide resources not otherwise provided in the organizational situation. By discerning the characteristics of tasks, subordinates, and organizations, lead- ers can determine the style that increases the likelihood of successful leadership outcomes. Therefore, effective leadership depends partly on developing diagnos- tic skills and being flexible in your leadership behavior.

NEW LEADER ACTION MEMO As a leader, you can use a people-oriented style when tasks are highly structured and followers are bound by formal rules and procedures. You can adopt a task-oriented style if group cohesiveness and followers’ intrinsic job satisfaction meet their social and emotional needs.

NEW LEADER ACTION MEMO As a leader, you can provide minimal task direction and personal support to highly trained employees; followers’ professionalism and intrinsic satisfaction substitute for both task- and people-oriented leadership.


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DISCUSSION QUESTIONS 1. Consider Fiedler’s theory as illustrated in Exhibit 3.4. How often do you think very favor-

able, intermediate, or very unfavorable situations occur to leaders in real life? Discuss.

2. Do you think leadership style is fixed and unchangeable, or can leaders be flexible and adaptable with respect to style? Why?

3. Consider the leadership position of the managing partner in a law firm. What task, subordi- nate, and organizational factors might serve as substitutes for leadership in this situation?

4. Compare Fiedler’s contingency model with the path–goal theory. What are the similar- ities and differences? Which do you prefer?

5. If you were a first-level supervisor of a team of telemarketers, how would you go about assessing the readiness level of your subordinates? Do you think most leaders can easily shift their leadership style to suit the readiness level of followers?

6. Think back to teachers you have had, and identify one each who fits a supportive style, directive style, participative style, and achievement-oriented style according to the path– goal theory. Which style did you find most effective? Why?

7. Do you think leaders should decide on a participative style based on the most efficient way to reach the decision? Should leaders sometimes let people participate for other reasons?

8. Consider the situational characteristics of group cohesiveness, organizational formaliza- tion, and physical separation. How might each of these substitute for or neutralize task- oriented or people-oriented leadership? Explain.

LEADERSHIP AT WORK Task versus Relationship Role Play You are the new distribution manager for French Grains Bakery. Five drivers who deliver French Grains baked goods to grocery stores in the metropolitan area report to you. The drivers are expected to complete the delivery report to keep track of actual deliveries and any changes that occur. The delivery report is a key element in inventory control and provides the data for French Grains invoicing of grocery stores. Errors become excessive when drivers fail to com- plete the report each day, especially when store managers request different inventory when the driver arrives. As a result, French Grains may not be paid for several loaves of bread a day for each mistake in the delivery report. The result is lost revenue and poor inventory control.

One of the drivers accounts for about 60 percent of the errors in the delivery reports. This driver is a nice person and generally reliable, although he is occasionally late for work. His major problem is that he falls behind in his paperwork. A second driver accounts for about 30 percent of the errors, and a third driver for about 10 percent of the errors. The other two drivers turn in virtually error-free delivery reports.

You are a high task-oriented (and low relationship-oriented) leader and have decided to talk to the drivers about doing a more complete and accurate job with the delivery reports. Write below exactly how you will go about correcting this problem as a task-oriented leader. Will you meet with drivers individually or in a group? When and where will you meet with them? Exactly what will you say, and how will you get them to listen?


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Now adopt the role of a high relationship-oriented (and low task-oriented) leader. Write below exactly what you will do and say as a relationship-oriented distribution manager. Will you meet with the drivers individually or in a group? What will you say, and how will you get them to listen?

In Class: The instructor can ask students to volunteer to play the roles of the distribution manager and the drivers. A few students can take turns role-playing the distribution manager in front of the class to show how they would handle the drivers as task- and relationship- oriented leaders. The instructor can ask other students for feedback on the leader’s effective- ness and on which approach seems more effective for this situation and why.

Source: Based on K. J. Keleman, J. E. Garcia, and K. J. Lovelace, Management Incidents: Role Plays for Management Development (Dubuque, IA: Kendall Hunt Publishing Company, 1990), pp. 69–72.

LEADERSHIP DEVELOPMENT: CASES FOR ANALYSIS Alvis Corporation Kevin McCarthy is the manager of a production department in Alvis Corporation, a firm that manufactures office equipment. After reading an article that stressed the benefits of participative management, Kevin believes that these benefits could be realized in his department if the work- ers are allowed to participate in making some decisions that affect them. The workers are not unionized. Kevin selected two decisions for his experiment in participative management.

The first decision involved vacation schedules. Each summer the workers are given two weeks’ vacation, but no more than two workers can go on vacation at the same time. In prior years, Kevin made this decision himself. He would first ask the workers to indicate their pre- ferred dates, and he considered how the work would be affected if different people were out at the same time. It was important to plan a vacation schedule that would ensure adequate staffing for all of the essential operations performed by the department. When more than two workers wanted the same time period and they had similar skills, he usually gave preference to the workers with the highest productivity.

The second decision involved production standards. Sales had been increasing steadily over the past few years, and the company recently installed some new equipment to increase productivity. The new equipment would allow Kevin’s department to produce more with the same number of workers. The company had a pay incentive system in which workers received a piece rate for each unit produced above a standard amount. Separate standards existed for each type of product, based on an industrial engineering study conducted a few years earlier. Top management wanted to readjust the production standards to reflect the fact that the new equipment made it possible for the workers to earn more without working any harder. The savings from higher productivity were needed to help pay for the new equipment.

Kevin called a meeting of his 15 workers an hour before the end of the workday. He explained that he wanted them to discuss the two issues and make recommendations. Kevin figured that the workers might be inhibited about participating in the discussion if he were present, so he left them alone to discuss the issues. Besides, Kevin had an appointment to meet with the quality control manager. Quality problems had increased after the new equipment was installed, and the industrial engineers were studying the problem in an attempt to deter- mine why quality had gotten worse rather than better.

When Kevin returned to his department just at quitting time, he was surprised to learn that the workers recommended keeping the standards the same. He had assumed they knew


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the pay incentives were no longer fair and would set a higher standard. The spokesman for the group explained that their base pay had not kept up with inflation and the higher incentive pay restored their real income to its prior level.

On the vacation issue, the group was deadlocked. Several of the workers wanted to take their vacations during the same two-week period and could not agree on who should go. Some workers argued that they should have priority because they had more seniority, whereas others argued that priority should be based on productivity, as in the past. Since it was quit- ting time, the group concluded that Kevin would have to resolve the dispute himself. After all, wasn’t that what he was being paid for?35


1. Analyze this situation using the Hersey–Blanchard model and the Vroom–Jago model. What do these models suggest as the appropriate leadership or decision style? Explain.

2. Evaluate Kevin McCarthy’s leadership style before and during his experiment in partici- pative management.

3. If you were Kevin McCarthy, what would you do now? Why?

An Impossible Dream? What’s wrong with the team? What’s wrong with the team? Zequine Mansell’s words repeated over and over in Allen Block’s head as he boarded the plane from Los Angeles to Chicago.

Block was responsible for the technical implementation of the new customer relationship management (CRM) software being installed for western and eastern sales offices in both cities. The software was badly needed to improve follow-up sales for his company, Exert Systems. Exert sold exercise equipment to high schools and colleges, as well as to small and midsized businesses for recreation centers, through a national force of 310 salespeople. The company’s low prices won a lot of sales; however, follow-up service was uneven, and the new CRM system promised to resolve those problems with historical data, inquiries, reminders, and updates going to sales reps daily. The CEO of Exert ordered the CRM system installed with all possible haste.

Block pulled a yellow pad and pen from the side pocket of his carry-on bag and tossed it in the seat beside the window, stashed the bag in the overhead compartment, and sat down as other passengers filed past. In an effort to shut out his thoughts, he closed his eyes and con- centrated on the muffled voices and low whooshing sound of the air vents. An image appeared in his mind of his promotion to Mansell’s job when she retired in two years. He blocked that thought and started doodling on the pad as a way of focusing his thoughts.

He wrote what’s wrong with the team three times and began drawing arrows to circles bearing the names of his team members: Barry Livingston and Max Wojohowski in Los Angeles and Bob Finley, Lynne Johnston, and Sally Phillips in Chicago. He marked through Sally’s name. She had jumped ship recently, taking her less-than-stellar but much-needed talents with her to another company. It was on a previous LA–Chicago flight that Sally had pumped him for feedback on her future with Exert. She had informed him that she had another job offer. She admitted it was less money, but she was feeling under pressure as a member of the team and she wanted more ‘‘quality of life.’’ Block told Sally bluntly that her technical expertise, on which he placed top importance, was slightly below that of her peers, so future promotion was less likely despite her impressive people and team skills.

He wrote ‘‘quality of life,’’ circled it, and then crossed it out and wrote ‘‘what the hell?’’ Why should she get quality of life? he mused. I’ve barely seen my wife and kids since this project started. Block’s team was under a great deal of pressure, and he had needed Sally to stick it out. He told her so, but the plane had barely touched down when she went directly to the office and quit, leaving the team short-handed and too close to deadline to add another body.


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What’s wrong with the team? Block furiously scribbled as his thoughts raced: (1) The deadline is ridiculously short. Mansell had scheduled a 10-week completion deadline for the new CRM software, including installation and training for both cities.

He was interrupted by the stewardess. ‘‘Would you care for a drink, sir?’’ ‘‘Yes. Just water.’’ Block took a sip and continued to write. (2) Thank God for LA. From the outset, Barry

and Max had worked feverishly while avoiding the whining and complaining that seemed to overwhelm members of the Chicago team. The atmosphere was different. Although the pro- ject moved forward, meeting deadlines, there appeared to be less stress. The LA guys focused tirelessly on work, with no families to consider, alternating intense work with joking around. ‘‘Those are my kind of people,’’ he thought. (3) But there is Chicago, he wrote. Earlier in the day Sam Matheny from sales had e-mailed, then called Block to tell him the two remaining members of the Chicago team appeared to be alternating between bickering and avoiding one another. Apparently this had been going on for some time. What’s with that? Block won- dered. And why did Sam know and I didn’t? So that morning, before his flight, Block had to make time to call and text both Finley and Johnston. Finley admitted he had overreacted to Johnston.

‘‘Look, man. I’m tired and stressed out. We’ve been working non-stop. My wife is not happy.’’

‘‘Just get along until this project is completed,’’ Block ordered. ‘‘When will that be?’’ Finley asked before hanging up. Block thought about Mansell’s persistent complaints to him that the team appeared

to have a lack of passion, and she admonished him to ‘‘get your people to understand the urgency of this project.’’ Her complaints only added to his own stress level. He had long con- sidered himself the frontrunner for Mansell’s job when she retired in two years. But had his team ruined that dream? The sense of urgency could be measured now in the level of stress and the long hours they had all endured. He admitted his team members were unenthusiastic, but they seemed committed.

Is it too late to turn around and restore the level of teamwork? He tore off the sheet from the pad, crumpled it in his hand, and stared out the window.


1. How would you characterize Block’s leadership approach (task versus people)? What approach do you think is correct for this situation? Why?

2. What would you do now if you were Block? How might you awaken more enthusiasm in your team for completing this project on time? Specify the steps you would take.

3. How would you suggest that Block modify his leadership style if he wants to succeed Mansell in two years? Be specific.

REFERENCES 1. Ryan Nakashima, ‘‘New Microsoft CEO’s Collegial Style Sparks

Hope,’’ USA Today (February 9, 2014) http://www.usatoday.com/ story/tech/2014/02/09/new-microsoft-ceo-hope/5340519/ (accessed October 12, 2015).

2. Gary Yukl, Angela Gordon, and Tom Taber, ‘‘A Hierarchical Taxon- omy of Leadership Behavior: Integrating a Half Century of Behavior Research,’’ Journal of Leadership and Organization Studies 9, no. 1 (2002), pp. 15–32; and Gary Yukl, ‘‘Effective Leadership Behavior: What We Know and What Questions Need More Attention,’’ Acad- emy of Management Perspectives (November 2012), pp. 66–81.

3. See Yukl, ‘‘Effective Leadership Behavior’’; Lee Ellis, ‘‘Results/ Relationships: Finding the Right Balance,’’ Leadership Excellence (October 2012), p. 10; and Kate Ward, ‘‘Personality Style: Key to Effective Leadership,’’ Leadership Excellence (August 2012), p. 14.

4. Paul Hersey and Kenneth H. Blanchard, Management of Organiza- tional Behavior: Utilizing Human Resources, 4th ed. (Upper Saddle River, NJ: Prentice Hall, 1982).

5. Jonathan Kaufman, ‘‘A McDonald’s Owner Becomes a Role Model for Black Teenagers,’’ The Wall Street Journal (August 23, 1995), pp. A1, A6.

6. Carol Hymowitz, ‘‘New Face at Facebook Hopes to Map Out a Road to Growth,’’ The Wall Street Journal (April 14, 2008), p. B1.

7. Cheryl Dahle, ‘‘Xtreme Teams,’’ Fast Company (November 1999), pp. 310–326.

8. Carol Hymowitz, ‘‘Managers Find Ways to Get Generations to Close Culture Gap,’’ (In the Lead column), The Wall Street Journal (July 9, 2007), p. B1.


Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

9. Laura Smith, ‘‘Why I Regret Being a Nice Boss,’’ Slate.com (October 2, 2014), http://www.slate.com/articles/business/building_a_better_workplace/ 2014/10/why_i_regret_being_a_nice_boss_setting_boundaries_with_ employees.html (accessed October 12, 2015); and Jessica Sigman, ‘‘Closing Time: On Its Last Day, Yola Opens Up About Shutting Down,’’ Washington City Paper (October 3, 2012), http://www. washingtoncitypaper.com/blogs/youngandhungry/2012/10/03/closing-time- on-its-last-day-yola-opens-up-about-shutting-down/ (accessed October 12, 2015).

10. Fred E. Fiedler, ‘‘Assumed Similarity Measures as Predictors of Team Effectiveness,’’ Journal of Abnormal and Social Psychology 49 (1954), pp. 381–388; F. E. Fiedler, Leader Attitudes and Group Effectiveness (Urbana, IL: University of Illinois Press, 1958); and F. E. Fiedler, A Theory of Leadership Effectiveness (New York: McGraw-Hill, 1967).

11. Neal E. Boudette, ‘‘Fiat CEO Sets New Tone at Chrysler,’’ The Wall Street Journal (June 21, 2009), http://online.wsj.com/article/ SB124537403628329989.html (accessed September 14, 2012); and Jeff Bennett and Neal E. Boudette, ‘‘Boss Sweats Details of Chrysler Revival,’’ The Wall Street Journal (January 31, 2011), p. A1; and Kate Linebaugh and Jeff Bennett, ‘‘Marchionne Upends Chrysler’s Ways,’’ The Wall Street Journal (January 12, 2010), http://online.wsj.com/ article/SB10001424052748703652104574652364158366106.html (accessed September 14, 2012).

12. Reported in George Anders, ‘‘Theory & Practice: Tough CEOs Often Most Successful, a Study Finds,’’ The Wall Street Journal (November 19, 2007), p. B3.

13. M. J. Strube and J. E. Garcia, ‘‘A Meta-Analytic Investigation of Fie- dler’s Contingency Model of Leadership Effectiveness,’’ Psychological Bulletin 90 (1981), pp. 307–321; and L. H. Peters, D. D. Hartke, and J. T. Pohlmann, ‘‘Fiedler’s Contingency Theory of Leadership: An Application of the Meta-Analysis Procedures of Schmidt and Hunter,’’ Psychological Bulletin 97 (1985), pp. 274–285.

14. R. Singh, ‘‘Leadership Style and Reward Allocation: Does Least Preferred Coworker Scale Measure Tasks and Relation Orientation?’’ Organiza- tional Behavior and Human Performance 27 (1983), pp. 178–197; D. Hosking, ‘‘A Critical Evaluation of Fiedler’s Contingency Hypothe- ses,’’ Progress in Applied Psychology 1 (1981), pp. 103–154; Gary Yukl, ‘‘Leader LPC Scores: Attitude Dimensions and Behavioral Correlates,’’ Journal of Social Psychology 80 (1970), pp. 207–212; G. Graen, K. M. Alvares, J. B. Orris, and J. A. Martella, ‘‘Contingency Model of Leader- ship Effectiveness: Antecedent and Evidential Results,’’ Psychological Bulletin 74 (1970), pp. 285–296; and R. P. Vecchio, ‘‘Assessing the Validity of Fiedler’s Contingency Model of Leadership Effectiveness: A Closer Look at Strube and Garcia,’’ Psychological Bulletin 93 (1983), pp. 404–408.

15. J. K. Kennedy, Jr., ‘‘Middle LPC Leaders and the Contingency Model of Leadership Effectiveness,’’ Organizational Behavior and Human Performance 30 (1982), pp. 1–14; and S. C. Shiflett, ‘‘The Contingency Model of Leadership Effectiveness: Some Implications of Its Statistical and Methodological Properties,’’ Behavioral Science 18, no. 6 (1973), pp. 429–440.

16. Roya Ayman, M. M. Chemers, and F. Fiedler, ‘‘The Contingency Model of Leadership Effectiveness: Its Levels of Analysis,’’ Leadership Quarterly 6, no. 2 (1995), pp. 147–167.

17. Robert J. House, ‘‘A Path–Goal Theory of Leadership Effectiveness,’’ Administrative Science Quarterly 16 (1971), pp. 321–338.

18. Ibid. 19. M. G. Evans, ‘‘Leadership,’’ in S. Kerr, ed., Organizational Behavior

(Columbus, OH: Grid, 1974), pp. 230–233. 20. Robert J. House and Terrence R. Mitchell, ‘‘Path–Goal Theory of Lead-

ership,’’ Journal of Contemporary Business (Autumn 1974), pp. 81–97. 21. Jay Goltz, ‘‘Are You a Kind Boss? Or Kind of a Boss?’’ (You’re the

Boss column), The New York Times (June 13, 2011), http://boss.

blogs.nytimes.com/2011/06/13/are-you-a-kind-boss-or-kind-of-a-boss/ (accessed March 15, 2013); and Jay Goltz, ‘‘Rethinking the Relation- ship Between Bosses and Employees,’’ The New York Times (December 22, 2014), http://boss.blogs.nytimes.com/2014/12/22/rethinking-the- relationship-between-bosses-and-employees/?_r=0 (accessed October 12, 2015).

22. Timothy Aeppel, ‘‘Personnel Disorders Sap a Factory Owner of His Early Idealism,’’ The Wall Street Journal (January 14, 1998), pp. A1–A14.

23. Charles Greene, ‘‘Questions of Causation in the Path–Goal Theory of Leadership,’’ Academy of Management Journal 22 (March 1979), pp. 22–41; and C. A. Schriesheim and Mary Ann von Glinow, ‘‘The Path–Goal Theory of Leadership: A Theoretical and Empirical Analy- sis,’’ Academy of Management Journal 20 (1977), pp. 398–405.

24. V. H. Vroom and Arthur G. Jago, The New Leadership: Managing Participation in Organizations (Upper Saddle River, NJ: Prentice Hall, 1988).

25. The following discussion is based heavily on Victor H. Vroom, ‘‘Lead- ership and the Decision-Making Process,’’ Organizational Dynamics 28, no. 4 (Spring 2000), pp. 82–94.

26. R. H. G. Field, ‘‘A Test of the Vroom–Yetton Normative Model of Lead- ership,’’ Journal of Applied Psychology (October 1982), pp. 523–532; and R. H. G. Field, ‘‘A Critique of the Vroom–Yetton Contingency Model of Leadership Behavior,’’ Academy of Management Review 4 (1979), pp. 249–251.

27. Vroom, ‘‘Leadership and the Decision-Making Process’’; Jennifer T. Ettling and Arthur G. Jago, ‘‘Participation Under Conditions of Con- flict: More on the Validity of the Vroom–Yetton Model,’’ Journal of Management Studies 25 (1988), pp. 73–83; Madeline E. Heilman, Harvey A. Hornstein, Jack H. Cage, and Judith K. Herschlag, ‘‘Reac- tions to Prescribed Leader Behavior as a Function of Role Perspective: The Case of the Vroom–Yetton Model,’’ Journal of Applied Psychology (February 1984), pp. 50–60; and Arthur G. Jago and Victor H. Vroom, ‘‘Some Differences in the Incidence and Evaluation of Participative Leader Behavior,’’ Journal of Applied Psychology (December 1982), pp. 776–783.

28. Based on a decision problem presented in Victor H. Vroom, ‘‘Leader- ship and the Decision-Making Process,’’ Organizational Dynamics 28, no. 4 (Spring, 2000), pp. 82–94.

29. S. Kerr and J. M. Jermier, ‘‘Substitutes for Leadership: Their Meaning and Measurement,’’ Organizational Behavior and Human Perform- ance 22 (1978), pp. 375–403; and Jon P. Howell and Peter W. Dorf- man, ‘‘Leadership and Substitutes for Leadership among Professional and Nonprofessional Workers,’’ Journal of Applied Behavioral Science 22 (1986), pp. 29–46.

30. J. P. Howell, D. E. Bowen, P. W. Doreman, S. Kerr, and P. M. Podsak- off, ‘‘Substitutes for Leadership: Effective Alternatives to Ineffective Leadership,’’ Organizational Dynamics (Summer 1990), pp. 21–38.

31. Mark Maske, ‘‘Daniel Snyder, Washington Redskins Owner, Adopts Hands-Off Role—and Team Wins,’’ The Washington Post (January 4, 2013), http://articles.washingtonpost.com/2013-01-04/ sports/36209112_1_daniel-snyder-washington-redskins-redskins-park (accessed March 15, 2013).

32. Howell et al., ‘‘Substitutes for Leadership: Effective Alternatives.’’ 33. P. M. Podsakoff, S. B. MacKenzie, and W. H. Bommer, ‘‘Transforma-

tional Leader Behaviors and Substitutes for Leadership as Determinants of Employee Satisfaction, Commitment, Trust, and Organizational Behaviors,’’ Journal of Management 22, no. 2 (1996), pp. 259–298.

34. Howell et al., ‘‘Substitutes for Leadership.’’ 35. Reprinted with permission from Gary Yukl, Leadership in Organizations,

7th ed. (Upper Saddle River, NJ: Prentice Hall, 2010), pp. 119–120.


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Part 3: The Personal Side of Leadership

Chapter 4: The Leader as an Individual

Chapter 5: Leadership Mind and Emotion

Chapter 6: Courage and Moral Leadership

Chapter 7: Followership

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Chapter 4: The Leader as an Individual

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YOUR LEADERSHIP CHALLENGE After reading this chapter, you should be able to:

• Understand the importance of self-awareness and how to recognize your blind spots. • Identify major personality dimensions and understand how personality influences leadership and relationships within organizations.

• Clarify your instrumental and end values and recognize how values guide thoughts and behavior. • Define attitudes and explain their relationship to leader behavior. • Explain attributions and recognize how perception affects the leader–follower relationship. • Recognize individual differences in cognitive style and broaden your own thinking style to expand leadership potential.

• Understand how to lead and work with people with varied personality traits.

CHAPTER OUTLINE 100 The Secret Ingredient for

Leadership Success

102 Personality and Leadership

109 Values and Attitudes

114 Social Perception and Attributions

116 Cognitive Differences

122 Working with Different Personality Types

In the Lead

102 Lois Braverman, Ackerman Institute for the Family

107 Chris Hughes, Facebook and MyBarackObama.com

112 Admiral Vernon E. Clark, U.S. Chief of Naval Operations, 2000–2005

116 Kevin Kelly, Emerald Packaging

120 Angela Ahrendts, Apple

Leader’s Self-Insight

103 The Big Five Personality Dimensions

108 Measuring Locus of Control

110 Instrumental and End Values

118 What’s Your Thinking Style?

123 Personality Assessment: Jung’s Typology

Leader’s Bookshelf

106 Quiet: The Power of Introverts in a World That Can’t Stop Talking

Leadership at Work

127 Past and Future

Leadership Development: Cases for Analysis

128 A Nice Manager

130 Environmental Designs International

Nancy Dubec’s first formal leadership job was as head of development atcable network A&E. Now that she’s CEO of A&E Networks, whichencompasses A&E, Lifetime, HISTORY, FYI and H2, as well as a number of other divisions, she still applies some of the lessons she learned in that job. ‘‘I sud- denly had eight people reporting to me, and I had to let some of them go,’’ Dubec says. Dubec realized she had a natural competitive streak and an instinctive drive to win and create. She also realized that some people thrive in that type of environment and some don’t. The ability to look at each person as an individual with different needs, interests, personalities, skills, and styles helped Dubec rise to the top and have a big impact at A&E. She thinks building the best team requires a mix of styles and skills. ‘‘I’m a big believer in the idea that people tend to fall into one of three groups—you’re either a thinker, a doer, or a feeler,’’ she says, pointing out that the right balance of the three is essential for high team performance. Dubec says she is

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more of a doer so she is careful to make sure she has thinkers and feelers on her team and respects their approaches. ‘‘When you put the different kinds of people together in the right way, that can be very powerful,’’ she says. ‘‘You never want that out of balance.’’1

Leaders’ ability to understand their own personalities and attitudes, as well as their ability to understand individual differences among employees, can pro- foundly affect leadership effectiveness. Many of today’s organizations use per- sonality and other psychometric tests as a way to help people better understand themselves and relate to one another. In Chapter 2, we examined some traits, individual qualities, and behaviors that are thought to be consistent with effec- tive leadership. Chapter 3 examined contingency theories of leadership, which consider the relationship between leader activities and the situations in which they occur, including followers and the environment. Clearly, organizational leadership is both an individual and an organizational phenomenon. In this chapter, we explore individual differences in more depth and examine how varia- tions in personality, attitudes, values, and so forth influence the leader–follower relationship.

We begin by considering the importance of leaders knowing themselves, and we look at some potential blind spots leaders may have that limit their under- standing and effectiveness. Next, we examine personality and some leader-related personality dimensions. Then the chapter considers how values affect leadership and the ways in which a leader’s attitudes influence behavior. We also explore the role of perception, discuss attributions, and look at cognitive differences, includ- ing a discussion of thinking and decision-making styles and the concept of brain dominance. Finally, the chapter considers a few techniques for working with different personality types.

4-1 THE SECRET INGREDIENT FOR LEADERSHIP SUCCESS A survey of 75 members of the Stanford Graduate School of Business’s Advisory Council revealed the nearly unanimous answer to a question about the most impor- tant capability for leaders to develop: self-awareness.2 Self-awareness means being aware of the internal aspects of one’s nature, such as personality traits, emotions, values, attitudes, and perceptions, and appreciating how your patterns affect other people.

4-1a The Importance of Self-Awareness Most leadership experts agree that a primary characteristic of effective leaders is that they know who they are and what they stand for.3 When leaders deeply under- stand themselves, they remain grounded and constant, so that people know what to expect from them.

Yet being self-aware is easier said than done. When Charlotte Beers, former chairwoman and CEO of Ogilvy & Mather Worldwide, first became a management supervisor, she considered herself to be a friendly, approachable, easy-going leader. She was shocked when a friend told her that one of her colleagues described her management style as ‘‘menacing.’’ That comment was devastating to Beers because it was the exact opposite of the way she thought of herself.4 Many of us, like Char- lotte Beers, have blind spots that hinder us from seeing who we really are and the

Self-awareness being conscious of the inter- nal aspects of one’s nature, such as personality traits, emotions, values, attitudes, and perceptions, and appre- ciating how your patterns affect other people


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effect our patterns of thought and behavior have on others. Beers now conducts seminars for women leaders, and one thing she tells them is the importance of clearly understanding themselves. The authors of a recent book profiling high achievers found that they all shared a similar characteristic: When faced with obstacles and failures, they underwent a ruthless self-examination to challenge their beliefs, biases, and assumptions.5 A careful self-reflection is essential for most people to recognize their blind spots.

4-1b Leader Blind Spots Doug Rauch, retired president of Trader Joe’s, almost strangled the life out of his company as it grew because of his tendency to, as he puts it, ‘‘happily microman- age.’’ Rauch recognized his zeal to control everything was hurting the company only when a brave senior buyer pulled him aside and said, ‘‘You’re driving us crazy. You’ve got to back off.’’ Rauch was surprised, but the comment helped him see his blind spot. He went to the team and admitted his problem, told them he was a ‘‘recovering controlaholic,’’ and asked people to give him regular feedback so he didn’t fall off the wagon.6

Many leaders have blind spots—things they are not aware of or don’t recognize as problems—that limit their effectiveness and hinder their career success.7 One particularly damaging blind spot is displaying an aggressive, confrontational style, otherwise known as being a jerk. Lars Dalgaard, founder and former CEO of soft- ware company SuccessFactors (now part of SAP), says he never realized he acted like a jerk until a leadership coach helped him see that he ran roughshod over people’s feelings. The coach helped Dalgaard make a conscious effort to build good relationships with employees and help others be more emotionally aware as well. SuccessFactors, which has an official ‘‘no jerks rule,’’ has twice been voted one of the best places to work in the San Francisco Bay area.8

Stanford professor Robert Sutton argues that jerks not only hurt the people they work with but also damage organizational performance. Sutton distinguishes between people who are perpetual jerks and those who only occasionally act that way. Perpetual jerks are those leaders who bully, humiliate, and emotionally abuse others, particularly people in less powerful positions.9 Even people who aren’t perpetual jerks can suffer this blind spot. As leaders move up the hierarchy, people skills become more and more important, and leaders who have succeeded at lower levels often don’t see that their approach is less effective as they advance in their careers. Jack Welch, the long-time former CEO of General Electric (GE), had to learn this lesson. When he was vying for the CEO position, his brashness and blunt approach almost cost him the job. GE’s board knew Welch could generate profits, but they needed him to show them that he could act like a CEO, which meant recog- nizing and toning down his jerk qualities.10

Another blind spot some leaders have is being too nice. Leaders who are con- stantly trying to please everyone can’t lead. They often make poor decisions because they can’t tolerate even a mild degree of conflict.11 When asked about her greatest weakness, Sue Murray, former executive director of the George Founda- tion, said, ‘‘I can be too nice when tough decisions need to be made, which is not helpful to anyone. It just prolongs the inevitable.’’12 Unlike Murray, many ‘‘people pleasers’’ have a blind spot that prevents them from seeing that they are damaging their relationships and careers by being overly concerned with what others think of them.

NEW LEADER ACTION MEMO As a leader, strive for self- awareness so that you know who you are and what you stand for. Undergo ruthless self-examination and seek feedback from others to avoid being derailed by blind spots.

Blind spots characteristics or habits that people are not aware of or don’t recognize as problems but which limit their effec- tiveness and hinder their career success

The challenge for leadership is to be strong, but not rude; be kind, but not weak; be bold, but not bully; be thoughtful, but not lazy; be humble, but not timid; be proud, but not arrogant; have humor, but without folly. Jim Rohn (1930–2009), entrepreneur, author, and motivational speaker


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4-2 PERSONALITY AND LEADERSHIP When a leader understands himself or herself and overcomes blind spots, it becomes easier to understand and interact effectively with others. Understanding personality differences is one aspect of knowing how to maximize your own effectiveness and that of the people you lead. Personality is the set of unseen characteristics and processes that underlie a relatively stable pattern of behavior in response to ideas, objects, or people in the environment. Lois Braverman, CEO of the Ackerman Insti- tute for the Family, believes understanding and accepting individual personalities is essential for effective leadership.

The following sections discuss personality in more detail. Later in the chapter, we take a closer look at the topic of perception in connection with leadership.

4-2a A Model of Personality Most people think of personality in terms of traits. As we discussed in Chapter 2, researchers have investigated whether any traits stand up to scientific scrutiny, and we looked at some traits associated with effective leadership. Although investigators have examined thousands of traits over the years, their findings have been distilled into five general dimensions that describe personality. These often are called the Big Five personality dimensions, which describe an individual’s extro- version, agreeableness, conscientiousness, emotional stability, and openness to experience.14 Each dimension contains a wide range of specific traits—for exam- ple, all of the personality traits that you would use to describe a teacher, friend, or boss could be categorized into one of the Big Five dimensions. These factors represent a continuum, in that a person may have a low, moderate, or high degree of each of the dimensions.

IN THE LEAD Lois Braverman, Ackerman Institute for the Family If Lois Braverman could ask only a couple of questions to decide whether to hire a job candidate, one of them would be, ‘‘In terms of your personality and temperament, what will you bring that will be helpful to [this organization]?’’ Braverman’s background as a psychotherapist makes her aware of how people’s personality characteristics, as well as other individual differences, influence the workplace. She says she learned early on as a leader that her judgment in hiring could be skewed by ‘‘a great conversation.’’ Someone who is likable and charming might be fun to interview, but it doesn’t necessarily mean they are responsible and trustworthy, or that they have the personality traits and qualities needed for the job, she points out.

Another leadership benefit Braverman credits to her therapy background is an understanding that ‘‘reality is all about perception.’’ Conflicts can arise in any organization, she says, because people genuinely perceive some aspect of the world differently. As a leader, Braverman helps people ‘‘make room for the differences’’ so that conflicts don’t escalate and damage morale and performance. She also applies the rule to herself. ‘‘There’s an administrative reality and there’s a front line reality,’’ she says, ‘‘and those realities are rarely the same.’’ Making sure everyone feels that ‘‘their perception of reality at least has a chance to be heard’’ is one of the primary jobs of a leader.13

Personality the set of unseen characteris- tics and processes that under- lie a relatively stable pattern of behavior in response to ideas, objects, and people in the environment

Big Five personality dimensions five general dimensions that describe personality: extro- version, agreeableness, con- scientiousness, emotional stability, and openness to experience


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Extroversion is made up of traits and characteristics that influence behavior in group settings. Extroversion refers to the degree to which a person is outgoing, sociable, talkative, and comfortable meeting and talking to new people. Someone low on extroversion may come across as quiet, withdrawn, and socially unassertive. This dimension also includes the characteristic of dominance. A person with a high degree of dominance likes to be in control and have influence over others. These people often are quite self-confident, seek out positions of authority, and are competitive and asser- tive. They like to be in charge of others or have responsibility for others. It is obvious that both dominance and extroversion could be valuable for a leader. However, not all effective leaders necessarily have a high degree of these characteristics.

For example, many successful top leaders, including Larry Page of Google; Warren Buffett of Berkshire Hathaway; Brenda Barnes, former CEO of Sara Lee; and Tim Cook, CEO of Apple, are introverts, people who become drained by social encounters and need time alone to reflect and recharge their batteries. One study found that 4 in 10 top executives test out to be introverts.15 Thus, the quality of extroversion is not as significant as is often presumed. In addition, a high degree of

LEADER’S SELF-INSIGHT 4.1 The Big Five Personality Dimensions

Instructions: Each individual’s collection of personality traits is different; it is what makes us unique. But, although each collection of traits varies, we all share many common traits. The following phrases describe various traits and behaviors. Rate how accurately each statement describes you, based on a scale of 1 to 5, with 1 being very inaccurate and 5 very accurate. Describe yourself as you are now, not as you wish to be. There are no right or wrong answers.

1 2 3 4 5 Very Inaccurate Very Accurate


I love large parties. 1 2 3 4 5 I feel comfortable around people. 1 2 3 4 5 I talk to a lot of different people at social gatherings. 1 2 3 4 5 I like being the center of attention. 1 2 3 4 5

Neuroticism (Low Emotional Stability)

I often feel critical of myself. 1 2 3 4 5 I often envy others. 1 2 3 4 5 I am temperamental. 1 2 3 4 5 I am easily bothered by things. 1 2 3 4 5


I am kind and sympathetic. 1 2 3 4 5 I have a good word for everyone. 1 2 3 4 5 I never insult people. 1 2 3 4 5 I put others first. 1 2 3 4 5

Openness to New Experiences

I am imaginative. 1 2 3 4 5 I see beauty in many things. 1 2 3 4 5 I really like art. 1 2 3 4 5 I love to learn new things. 1 2 3 4 5


I am systematic and efficient. 1 2 3 4 5 I pay attention to details. 1 2 3 4 5 I am always prepared for class. 1 2 3 4 5 I put things back where they belong. 1 2 3 4 5

Which are your most prominent traits? For fun and discussion, compare your responses with those of classmates.

Source: These questions were adapted from a variety of sources.

NEW LEADER ACTION MEMO See where you fall on the Big Five scale for extroversion, agreeableness, conscientious- ness, emotional stability, and openness to experience by answering the questions in Leader’s Self-Insight 4.1.

Extroversion the degree to which a per- son is outgoing, sociable, talkative, and comfortable meeting and talking to new people

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dominance could even be detrimental to effective leadership if not tempered by other qualities, such as agreeableness or emotional stability.

Agreeableness refers to the degree to which a person is able to get along with others by being good-natured, cooperative, forgiving, compassionate, under- standing, and trusting. A leader who scores high on agreeableness seems warm and approachable, whereas one who is low on this dimension may seem cold, distant, and insensitive. Studies show that people who score high on agreeable- ness are more likely to get jobs and keep them than are less agreeable people.16

Although there is also some evidence that people who are overly agreeable tend to be promoted less often and earn less money, the days are over when leaders can expect to succeed by running roughshod over others and looking out only for themselves.

Today’s successful leaders are not the tough guys of the past but those men and women who know how to get people to like and trust them.17 Leaders are mak- ing a concerted effort to present a friendlier face to employees, the public, and share- holders after years of headlines exposing white-collar crime, CEO arrogance, and complaints over exorbitant pay. Lee Raymond, the former CEO of ExxonMobil, made plenty of money for investors but was described by some shareholders as ‘‘stubborn, self-important, [and] rude.’’ In contrast, Raymond’s successor, Rex Tillerson, was publicly thanked at one annual meeting for his ‘‘friendliness, humor, and candor.’’18

The next personality dimension, conscientiousness, refers to the degree to which a person is responsible, dependable, persistent, and achievement oriented. A consci- entious person is focused on a few goals, which he or she pursues in a purposeful way, whereas a less conscientious person tends to be easily distracted and impul- sive. Recent research suggests that traits of conscientiousness are also more impor- tant than those of extroversion for effective leadership. A study at the Stanford Graduate School of Business found a link between how guilty people feel when they make serious mistakes and how well they perform as leaders.19 Guilt can be a positive emotion for a leader because it is associated with a heightened sense of responsibility to others.

Consider former International Monetary Fund leader Dominique Strauss-Kahn, who was likely on his way to the French presidency before he was arrested in New York and charged with the sexual assault of a hotel housekeeper, with further allegations from other women later coming to light.20 Strauss-Kahn displays a low level of conscientiousness, whereas a leader like Anne Mulcahy, former CEO of Xerox, reflects a high degree of this characteristic. Mulcahy felt a strong sense of responsibility to employees and shareholders when she was named CEO of Xerox in 2001.The company was in a free fall, with the stock price plummeting and its credit rating downgraded. Advisers urged Mulcahy to declare bankruptcy, but she chose instead to focus on a vision of restoring Xerox to greatness. Although she had tough decisions to make, she always kept the best interests of employees and shareholders in mind.21

The dimension of emotional stability refers to the degree to which a person is well adjusted, calm, and secure. A leader who is emotionally stable handles stress well, is able to handle criticism, and generally doesn’t take mistakes or fail- ures personally. Leaders with emotional stability typically develop positive rela- tionships and can also improve relationships among others. Marillyn A. Hewson’s high degree of emotional stability is part of the reason she was promoted to be the first female CEO of defense contractor Lockheed Martin, after the man originally

Agreeableness the degree to which a per- son is able to get along with others by being good- natured, cooperative, forgiv- ing, compassionate, under- standing, and trusting

Conscientiousness the degree to which a per- son is responsible, dependa- ble, persistent, and achievement oriented

Emotional stability the degree to which a per- son is well adjusted, calm, and secure


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picked for the top job was fired following discovery of an ethical violation. It’s a challenging time for Lockheed, but Hewson has shown that she can handle crises without becoming unhinged. Over her 30-year career at the company, her calm, steady hand has earned her a reputation for being able to combine toughness with graciousness. ‘‘Marillyn will be exactly what Lockheed Martin needs in terms of patching up its relationships . . .’’ said defense industry consultant Loren Thompson.22

Leaders who have a low degree of emotional stability are likely to become tense, anxious, or depressed. They generally have lower self-confidence and may explode in emotional outbursts when stressed or criticized. The related topic of emotional intelligence will be discussed in detail in the next chapter.

The final Big Five dimension, openness to experience, is the degree to which a person has a broad range of interests and is imaginative, creative, and willing to consider new ideas. These people are intellectually curious and often seek out new experiences through travel, the arts, movies, reading widely, or other activities. People lower in this dimension tend to have narrower interests and stick to the tried-and-true ways of doing things. Open-mindedness is important to leaders because, as we learned in Chapter 1, leadership is about change rather than stability. In an interesting study of three nineteenth-century leaders—John Quincy Adams, Frederick Douglass, and Jane Addams—one researcher found that early travel experiences and exposure to different ideas and cultures were critical elements in developing open-minded qualities in these leaders.23 Travel during the formative years helped these leaders to develop a greater degree of openness to experience because it put them in situations that required adaptability.

Few studies have carefully examined the connection between the Big Five and leadership success. One summary of more than 70 years of personality and leader- ship research did find evidence that four of the five dimensions were consistently related to successful leadership.24 The researchers found considerable evidence that people who score high on the dimensions of extroversion, agreeableness, conscien- tiousness, and emotional stability are more successful leaders. Results for openness to experience were less consistent; that is, in some cases, higher scores on this dimen- sion related to better performance, but they did not seem to make a difference in other cases. Yet, in a study by a team of psychologists of the personality traits of the greatest U.S. presidents (as determined by historians), openness to experience produced the highest correlation with historians’ ratings of greatness. The study noted that presidents such as Abraham Lincoln and Thomas Jefferson were high on this personality dimension. Other personality dimensions the team found to be asso- ciated with great presidents were extroversion and conscientiousness, including traits such as assertiveness, setting ambitious goals, and striving for achievement. Although agreeableness did not correlate with greatness, the ability to empathize with others and being concerned for others, which could be considered elements of emotional stability, did.25

The value of the Big Five for leaders is primarily to help them understand their own basic personality dimensions and then learn to emphasize the positive and mitigate the negative aspects of their own natural styles. For example, people who are introverts often stagnate, especially in large organizations, because they have a difficult time getting noticed and are therefore less likely to be rewarded for their hard work.26 Four out of five introverts surveyed said they believe extroverts are more likely to get ahead at their place of employment.27 One experiment found that people who spoke up more often were rated as better leaders, even if they were less

Openness to experience the degree to which a per- son has a broad range of interests and is imaginative, creative, and willing to con- sider new ideas

NEW LEADER ACTION MEMO As a leader, you can learn about your own basic personality dimensions and how to emphasize the positive aspects of your personality in dealing with followers.


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competent than their quieter colleagues.28 Introverts can learn to behave in more extroverted ways when they need to in order to be more successful. For example, Richard Branson dresses up in silly costumes to publicize the Virgin Group, but he says that flamboyant public persona bears little resemblance to his innate personal- ity. ‘‘I was a shy and retiring individual who couldn’t make speeches and get out there,’’ Branson says of himself prior to founding Virgin. ‘‘I had to train myself into becoming more of an extrovert’’ in order to promote the new company.29

In recent years, there has been a growing awareness that introverted people have some qualities that might actually make them better leaders, as described further in the Leader’s Bookshelf.30 Introversion or extroversion is simply one aspect of an individual’s personality, and each style has both strengths and weak- nesses. Exhibit 4.1 gives some tips for both introverts and extroverts to help them be more effective and successful.

4-2b Personality Traits and Leader Behavior Two specific personality attributes that have a significant impact on behavior and are thus of particular interest for leadership studies are locus of control and authoritarianism.

LEADER’S BOOKSHELF Quiet: The Power of Introverts in a World That Can’t Stop Talking

by Susan Cain

From kindergarten on in the United States, students are pressured to be more outgoing and speak up more in class. In college, grades are sometimes based on class participation, and students who don’t forcefully push their ideas get side- lined. No wonder by the time we get to the workplace, we know that talk and social interaction are prized above quiet- ness and thoughtfulness. In her book Quiet, Susan Cain argues that by succumb-Quiet, Susan Cain argues that by succumb-Quiet ing to the charms of the extrovert, organi- zations are missing out on the creativity, insights, and ideas of the one-third to one-half of Americans who are introverts.

MISCONCEPTIONS ABOUT INTROVERTS Cain’s thoughtful examination, using research studies, historical examples, and individual stories, explodes some of the myths about introversion.

• Introverts are shy and antisocial. Some introverts are shy, but many are not. They simply interact in a different way. Whereas the extrovert will ‘‘work the room’’ at a party, the introvert prefers to carry on deeper conversations with one or a few people. Introverts need time alone

to reflect and recharge, but that doesn’t mean they don’t also enjoy the company of other people.

• Introverts have a personality flaw. In a culture that prizes extroversion, the tendency of introverts toward solitary activity and quiet reflection marks them as having ‘‘a second- class personality trait, somewhere between a disappointment and a pathology.’’ Cain points out many advantages to the introverted per- sonality: introverts tend to think more deeply, make decisions more carefully, and stay on task longer. Introversion is uniquely conducive to creativity and innovation. Extro- vert Steve Jobs was the pizzazz of Apple, but the company would never have existed if introverted cofounder Steven Wozniak had not spent long hours alone creating the first personal computer.

• Introverts don’t make good leaders. This is perhaps the biggest misconception of all. Introverts such as Bill Gates and Warren Buffett suc- ceed at the top of big corporations, but introverts also make excellent

lower-level supervisors and manag- ers because of their greater ability to listen. Cain cites research show- ing that introverts do very well lead- ing teams, even those made up primarily of extroverts, because they can stand aside and let the good ideas flow rather than pushing their own thoughts and opinions.

CAN’T WE ALL JUST GET ALONG? No one is totally an introvert or an extrovert. Each of us falls somewhere along a continuum on the scale of introversion–extroversion. The problem, Cain says, is the tendency in the United States and other Western cultures to revere extroverts and try to push every- one to that end of the scale. Cain challenges leaders to show respect and truly listen to their introverted col- leagues and subordinates, not just be swayed by the loudest voices. ‘‘You need to do this as a manager,’’ she says, ‘‘because you . . . want the best out of people’s brains.’’

Source: Quiet: The Power of Introverts in a World That Can’t Stop Talking, by Susan Cain, is published by Crown Publishers.

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Locus of Control Some people believe that their actions can strongly affect what happens to them. In other words, they believe they are ‘‘masters of their own fate.’’ Others feel that whatever happens to them in life is a result of luck, chance, or out- side people and events; they believe they have little control over their fate. A per- son’s locus of control defines whether he or she places the primary responsibility within the self or on outside forces.31 People who believe their actions determine what happens to them have a high internal locus of control (internals), whereas those who believe outside forces determine what happens to them have a high exter- nal locus of control (externals). One leader who reflects a strong internal locus of control is Chris Hughes, cofounder of Facebook.

EXHIBIT 4.1 Maximizing Leadership Effectiveness

Tips for Extroverts Tips for Introverts

Don’t bask in the glow of your own personality. Learn to hold back and let others sometimes have the limelight. Try to underwhelm. Your natural exuberance can cause you to miss important facts and ideas. Talk less; listen more. Develop the discipline to let others speak first on an issue to avoid the appearance of arrogance. Don’t be Mr. or Ms. Personality. Extroverts sometimes fail to recognize others’ needs and can easily wear people out rather than invigorate them.

Mix with people, speak up, and get out there. Push yourself to get out there and connect with people both within and outside the organization. Practice being friendly and outgoing in settings outside of work. Take your new skills to the office. Have a game plan. Prepare well for meetings and presentations. Anticipate questions and rehearse a few talking points. Smile. A frown or a soberly introspective expression can be misinterpreted. A bright countenance reflects confidence that you know where you’re going and want others to follow.

Sources: Based on Patricia Wallington, ‘‘The Ins and Outs of Personality,’’ CIO (January 15, 2003), pp. 42, 44; ‘‘From the Front Lines: Leadership Strategies for Introverts,’’ Leader to Leader (Fall 2009), pp. 59–60; Joann S. Lublin, ‘‘Introverted Execs Find Ways to Shine,’’ The Wall Street Journal Asia (April 18, 2011), p. 31; and Ginka Toegel and Jean-Louis Barsoux, ‘‘How to Become a Better Leader,’’ MIT Sloan Management Review (Spring 2012), pp. 51–60.

IN THE LEAD Chris Hughes, Facebook and MyBarackObama.com Chris Hughes grew up in Hickory, North Carolina, as the only child of older parents. His father was a paper salesman and his mother a former public school teacher. When Hughes entered high school, he decided he wanted something different than graduating from the local school and getting a job in town. In fact, what he wanted was to attend a prestigious prep school and go on to an Ivy League university.

With his family’s background and modest means, it was definitely an ambitious goal, but Hughes believed his fate was in his own hands. Without telling his parents, he began researching and applying to various boarding schools. Eventually he was offered a generous financial aid package from Phillips Academy in Andover, Massachusetts. A few years later, he left there with a scholarship to Harvard.

Hughes met Mark Zuckerberg and Dustin Moskovitz during his freshman year at Harvard and the three founded Facebook. Then, during the 2008 presidential campaign, Hughes became attracted to the idea of using new media to get Barack Obama elected. Volunteers flooded the site he built, MyBarackObama.com, from the day it launched. Hughes was later featured on the cover of Fast Company magazine as ‘‘The Kid Who Made Obama President.’’32

Locus of control defines whether a person places the primary responsi- bility for what happens to him or her within himself/ herself or on outside forces

NEW LEADER ACTION MEMO Do you believe luck, chance, or the actions of other people play a major role in your life, or do you feel in control of your own fate? Learn more about your locus of control by completing the questionnaire in Leader’s Self-Insight 4.2.


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Chris Hughes exhibits many characteristics associated with internal locus of control. Research has shown real differences in behavior between internals and externals across a wide range of settings.33 Internals in general are more self- motivated, are in better control of their own behavior, participate more in social and political activities, and more actively seek information. There is also evidence that internals are better able to handle complex information and problem solving, and that they are more achievement oriented than externals. In addition, people with a high internal locus of control are more likely than externals to try to influence others and thus more likely to assume or seek leadership opportunities. Moreover, people with a high internal locus of control will take responsibility for outcomes and changes, which is essential for leadership.34

People with a high external locus of control typically prefer to have structured, directed work situations. They are better able than internals to handle work that

LEADER’S SELF-INSIGHT 4.2 Measuring Locus of Control

Instructions: For each of these 10 questions, indicate the extent to which you agree or disagree using the following scale:

1 ¼ Strongly disagree 5 ¼ Slightly agree 2 ¼ Disagree 6 ¼ Agree 3 ¼ Slightly disagree 7 ¼ Strongly agree 4 ¼ Neither agree nor disagree

Strongly Disagree

Strongly Agree

1. When I get what I want, it’s usually because I worked hard for it. 1 2 3 4 5 6 7

2. When I make plans, I am almost certain to make them work. 1 2 3 4 5 6 7

3. I prefer games involving some luck over games requiring pure skill. 1 2 3 4 5 6 7

4. I can learn almost anything if I set my mind to it. 1 2 3 4 5 6 7

5. My major accomplishments are entirely due to my hard work and ability. 1 2 3 4 5 6 7

6. I usually don’t set goals, because I have a hard time following through on them. 1 2 3 4 5 6 7

7. Competition discourages excellence. 1 2 3 4 5 6 7

8. Often people get ahead just by being lucky. 1 2 3 4 5 6 7

9. On any sort of exam or competition, I like to know how well I do relative to everyone else. 1 2 3 4 5 6 7

10. It’s pointless to keep working on something that’s too difficult for me. 1 2 3 4 5 6 7

Scoring and Interpretation To determine your score, reverse the values you selected for questions 3, 6, 7, 8, and 10 (1 ¼ 7, 2 ¼ 6, 3 ¼ 5, 4 ¼ 4, 5 ¼ 3, 6 ¼ 2, 7 ¼ 1). For example, if you strongly disagreed with the statement in question 3, you would have given it a value of 1. Change this value to a 7. Reverse the scores in a similar manner for questions 6, 7, 8, and 10. Now add the point values from all 10 questions together.

Your score:_________ This questionnaire is designed to measure locus of con-

trol beliefs. Researchers using this questionnaire in a study of college students found a mean of 51.8 for men and 52.2 for women, with a standard deviation of 6 for each. The higher your score on this questionnaire, the more you tend to believe that you are generally responsible for what happens to you; in other words, high scores are associated with inter- nal locus of control. Low scores are associated with external locus of control. Scoring low indicates that you tend to believe that forces beyond your control, such as powerful other peo- ple, fate, or chance, are responsible for what happens to you.

Source: Adapted from J. M. Burger, Personality: Theory and Research (Belmont, CA: Wadsworth, 1986), pp. 400–401. Original source for Burger’s questionnaire is D. L. Paulhus, ‘‘Sphere-Specific Measures of Perceived Control,’’ Journal of Personality and Social Psychology 44 (1983), pp. 1253–1265.

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requires compliance and conformity, but they are generally not as effective in sit- uations that require initiative, creativity, and independent action. Therefore, since externals do best in situations where success depends on complying with the direc- tion or guidance of others, they are less likely to enjoy or succeed in leadership positions.

Authoritarianism The belief that power and status differences should exist in an organization is called authoritarianism.35 Individuals who have a high degree of this personality trait tend to adhere to conventional rules and values, obey established authority, respect power and toughness, judge others critically, and disapprove of the expression of personal feelings. A leader’s degree of authoritarianism will affect how the leader wields and shares power. A highly authoritarian leader is likely to rely heavily on formal authority and unlikely to want to share power with subordi- nates. High authoritarianism is associated with the traditional, rational approach to management described in Chapter 1 and the autocratic style of leadership described in Chapter 2. The new leadership paradigm requires that leaders be less authoritar- ian, although people who rate high on this personality trait can be effective leaders as well. Leaders should also understand that the degree to which followers possess authoritarianism influences how they react to the leader’s use of power and author- ity. When leaders and followers differ in their degree of authoritarianism, effective leadership may be more difficult to achieve.

Understanding how personality traits and dimensions affect behavior can be an advantage for leaders, giving them valuable insights into their own behavior as well as that of followers. Another important area for understanding individual differen- ces is values and attitudes.

4-3 VALUES AND ATTITUDES Individuals may differ significantly in the values and attitudes they hold. These differences affect the behavior of leaders and followers.

4-3a Instrumental and End Values Values are fundamental beliefs that an individual considers to be important, that are relatively stable over time, and that have an impact on attitudes, perception, and behavior.36 Values are what cause a person to prefer that things be done one way rather than another way. Whether we recognize it or not, we are constantly valuing things, people, or ideas as good or bad, pleasant or unpleasant, ethical or unethical, and so forth.37

One way to think about values is in terms of instrumental and end values.38

Social scientist Milton Rokeach developed a list of 18 instrumental values and 18 end values that have been found to be more or less universal across cultures. The full list of Rokeach’s values is shown in Leader’s Self-Insight 4.3. End values, sometimes called terminal values, are beliefs about the kinds of goals or outcomes that are worth trying to pursue. For example, some people value security, a comfortable life, and good health above everything else as the important goals to strive for in life. Others may place greater value on social recognition, pleasure, and an exciting life. Instrumental values are beliefs about the types of behavior that are appropriate for reaching goals. Instrumental values include such things as being helpful to others, being honest, or exhibiting courage.

Authoritarianism the belief that power and status differences should exist in an organization

NEW LEADER ACTION MEMO As a leader, you can improve your effectiveness by recognizing how traits such as authoritarianism and locus of control affect your relationships with followers. You can tone down a strong authoritarian personality to motivate others.

Values fundamental beliefs that an individual considers to be important, that are relatively stable over time, and that have an impact on attitudes and behavior

End values sometimes called terminal values, these are beliefs about the kinds of goals or outcomes that are worth trying to pursue

Instrumental values beliefs about the types of behavior that are appropri- ate for reaching goals


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Although everyone has both instrumental and end values, individuals differ in how they order the values into priorities, which accounts for tremendous variation among people. Understanding one’s own values clarifies what is important, which is essential for effective leadership. Exhibit 4.2 shows some interesting differences in how groups of managers and non-managers prioritized values in one study. The exhibit lists end values and instrumental values that were ranked significantly higher by each group, showing only those rankings that were statistically significant.39 Leaders can identify and understand value differences to improve communication and effectiveness.

National culture, generational differences, and family background can influence how people rank values. For example, in the United States, independence is highly val- ued and is reinforced by many institutions, including schools, religious organizations, and businesses. Other cultures place less value on independence and more value on being part of a tightly knit community. Younger people typically rank family security lower than do older people.40 Some leaders cite their parents as a primary source of

LEADER’S SELF-INSIGHT 4.3 Instrumental and End Values

Instructions: In each column below, place a check mark by the five values that are most important to you. After you have checked five values in each column, rank-order the checked values in each column from 1 to 5, with 1 ¼ most important and 5 ¼ least important.

Rokeach’s Instrumental and End Values

End Values Instrumental Values

A comfortable life ______ Ambition ______ Equality ______ Broad-mindedness ______ An exciting life ______ Capability ______ Family security ______ Cheerfulness ______ Freedom ______ Cleanliness ______ Health ______ Courage ______ Inner harmony ______ Forgiveness ______ Mature love ______ Helpfulness ______ National security ______ Honesty ______ Pleasure ______ Imagination ______ Salvation ______ Intellectualism ______ Self-respect ______ Logic ______ A sense of accomplishment ______

Ability to love ______

Social recognition ______ Loyalty ______

True friendship ______ Obedience ______

Wisdom ______ Politeness ______

A world at peace ______ Responsibility ______

A world of beauty ______ Self-control ______

NOTE: The values are listed in alphabetical order, and there is no one-to-one relationship between the end and instru- mental values.

Scoring and Interpretation End values, according to Rokeach, tend to fall into two cate- gories—personal and social. For example, mature love is a personal end value and equality is a social end value. Ana- lyze the five end values you selected and their rank order, and determine whether your primary end values tend to be personal or social. What do your five selections together mean to you? What do they mean for how you make life decisions? Compare your end value selections with those of another person, with each of you explaining what you learned about your end values from this exercise.

Instrumental values also tend to fall into two categories— morality and competence. The means people use to achieve their goals might violate moral values (e.g., be dishonest) or violate one’s personal sense of competence and capability (e.g., be illogical). Analyze the five instrumental values you selected and their rank order, and determine whether your primary instrumental values tend to focus on morality or com- petence. What do the five selected values together mean to you? What do they mean for how you will pursue your life goals? Compare your instrumental value selections with those of another person and describe what you learned from this exercise.

Warning: The two columns shown to the left do not rep- resent the full range of instrumental and end values. Your findings would change if a different list of values were pro- vided. This exercise is for discussion and learning purposes only and is not intended to be an accurate assessment of your actual end and instrumental values.

Sources: Robert C. Benfari, Understanding and Changing Your Management Style (San Francisco: Jossey-Bass, 1999), pp. 178–183; and M. Rokeach, Understanding Human Values (New York: The Free Press, 1979).

NEW LEADER ACTION MEMO Complete the exercise in Leader’s Self-Insight 4.3 to see what you can learn about your own values and how they affect your decisions and actions. Were you surprised by any of your instrumental or end values?

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their deeply held values. Bill Farmer, who retired from Time Warner Cable and is now president and CEO of United Way of the Bluegrass in Lexington, Kentucky, says his mother instilled in him the importance of giving back to the community. Farmer moved eight times in 28 years while with Time Warner and in each new city he volunteered with numerous nonprofit organizations and became actively involved in local initiatives designed to create a positive community environment.41

Our values are generally fairly well established by early adulthood, but a person’s values can also change throughout life. This chapter’s Consider This reflects on how the values that shape a leader’s actions in a moment of crisis have been developed over time. Values may affect leaders and leadership in a number of ways.42 For one thing, values influence how leaders relate to others. A leader who values obedience, conformity, and politeness may have a difficult time understand- ing and appreciating a follower who is self-reliant, independent, creative, and a bit rebellious. Personal values influence how leaders perceive opportunities, situations, and problems, as well as the decisions they make in response to them. Consider the decisions Vern Clark made as U.S. Chief of Naval Operations (CNO) from 2000 until his retirement in 2005.

EXHIBIT 4.2 Differences in Leaders’ and Nonleaders’ Value Rankings

Freedom Mature Love National Security Salvation

Terminal Values Ranked Higher by Leaders

A world at peace Pleasure Wisdom

Terminal Values Ranked Higher by Non-Leaders

Ambitious Broadminded Courageous Forgiving Loyal

Clean Helpful Independent Intellectual Logical Self-controlled

Instrumental Values Ranked Higher by Leaders

Instrumental Values Ranked Higher by Non-Leaders

Source: Based on Table 2, Differences in Managers’ versus Non-Managers’ Terminal and Instrumental Value Ranking, in Edward F. Murphy Jr., Jane Whitney Gibson, and Regina A. Greenwood, ‘‘Analyzing Generational Values among Managers and Non-Managers for Sustainable Organizational Effectiveness,’’ SAM Advanced Management Journal (Winter 2010), pp. 33–55.

IN THE LEAD Admiral Vernon E. Clark, U.S. Chief of Naval Operations, 2000–2005 Admiral Vernon E. Clark, who retired in July 2005 after a 37-year career in the U.S. Navy, was the second-longest serving U.S. CNO. The job of the CNO is to advise the president on the conduct of war.


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A leader like Admiral Vernon Clark who places high value on supporting followers, being courageous, and standing up for what one believes in is much more likely to make decisions that may not always be popular but that he believes are right. Leaders can be more effective when they clarify their own values and understand how values guide their actions and affect their organizations. In addition, for many organizations today, clarifying and stating their corporate values, including ethical values, has become an important part of defining how the organization operates.

4-3b How Attitudes Affect Leadership Values help determine the attitudes leaders have about themselves and about their followers. An attitude is an evaluation—either positive or negative—about people, events, or things. As we discussed in Chapter 2, an optimistic attitude or positive outlook on life is often considered a key to successful and effective leadership.

ConsiderThis! Developing Character

‘‘The character that takes command in moments of critical choices has already been deter- mined. It has been determined by a thousand other choices made earlier in seemingly unim- portant moments. It has been determined by all those ‘little’ choices of years past—by all those times when the voice of conscience was at war with the voice of temptation—whispering a lie that ‘it doesn’t really matter.’ It has been determined by all the day-to-day decisions made when life seemed easy and crises seemed far away, the decisions that piece by piece, bit by bit, developed habits of discipline or of laziness; habits of self-sacrifice or self- indulgence; habits of duty and honor and integrity—or dishonor and shame.’’

Source: President Ronald Reagan, quoted in Norman R. Augustine, ‘‘Seven Fundamentals of Effective Leadership,’’ an original essay written for the Center for the Study of American Business, Washington University in St. Louis, CEO Series, no. 27 (October 1998).

When Clark was named CNO in July 2000, the Navy was losing too many good sailors who didn’t want to re-enlist. For Clark, getting and keeping good sailors who could protect the national security was a top priority, and all his decisions were based on valuing the people on the front lines. When Navy officials proposed budget cuts in training and development, Clark rebelled. Instead he increased the training budget, strongly supported an increase in pay for sailors, and established the Naval Education and Training Command, with 12 Centers of Excellence. Clark also revised the performance appraisal system to provide constructive feedback for people at all levels. Clark made it a priority to blur the lines between enlisted sailors and officers and revised the job assignment process so people didn’t get forced into jobs and locations they didn’t want. Always more concerned about doing things right than being right, Clark encouraged everyone to challenge assumptions, ask questions, and express conflicting views.

Thanks to Admiral Clark’s emphasis on treating sailors right, first term re-enlistment soared from 38 percent to 56.7 percent within his first 18 months as CNO. Moreover, as the Navy retained more sailors, its ability to respond more quickly to protect the nation increased.43

Attitude an evaluation (either positive or negative) about people, events, or things


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A leader’s attitudes toward followers influence how he or she relates to peo- ple.44 Every leader’s style is based to some extent on attitudes about human nature in general—ideas and feelings about what motivates people, whether people are basically honest and trustworthy, and the extent to which people can grow and change. One theory to explain differences in style was developed by Douglas McGregor, based on his experiences as a manager and consultant and his training as a psychologist.45 McGregor identified two sets of assumptions about human nature, called Theory X and Theory Y, which represent two very different sets of atti- tudes about how to interact with and influence subordinates. Exhibit 4.3 explains the fundamental assumptions of Theory X and Theory Y.

In general, Theory X reflects the assumption that people are basically lazy and not motivated to work and that they have a natural tendency to avoid responsibility. Thus, a supervisor who subscribes to the assumptions of Theory X has the attitude that people must be coerced, controlled, directed, or threatened to get them to put forth their best effort. Referring back to Chapter 2, the Theory X leader would likely be task oriented and highly concerned with production rather than people. Theory Y, on the other hand, is based on assumptions that people do not inherently dislike work and will commit themselves willingly to work that they care about. Theory Y also assumes that, under the right conditions, people will seek out greater responsibility and will exercise imagination and creativity in the pursuit of solutions to organizational problems. A leader who subscribes to the assumptions of Theory Y does not believe people have to be coerced and controlled in order to perform effec- tively. These leaders are more often people oriented and concerned with relationships, although some Theory Y leaders can also be task- or production oriented. McGregor believed Theory Y to be a more realistic and productive approach for viewing subor- dinates and shaping leaders’ attitudes. Studies exploring the relationship between leader attitudes and leadership success in general support his idea, although this rela- tionship has not been carefully explored.46

EXHIBIT 4.3 Attitudes and Assumptions of Theory X and Theory Y

Assumptions of Theory X Assumptions of Theory Y

The average human being has an inherent dislike of work and will avoid it if possible. Because of the human characteristic of dislike for work, most people must be coerced, controlled, directed, or threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all.

The expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work. External control and the threat of punishment are not the only means for bringing about effort toward organizational objectives. A person will exercise self-direction and self-control in the service of objectives to which he or she is committed. The average human being learns, under proper conditions, not only to accept but also to seek responsibility. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population. Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.

Source: Based on Douglas McGregor, The Human Side of Enterprise (New York: McGraw-Hill, 1960), pp. 33–48.

Theory X the assumption that people are basically lazy and not motivated to work and that they have a natural tend- ency to avoid responsibility

Theory Y the assumption that people do not inherently dislike work and will commit them- selves willingly to work that they care about


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4-4 SOCIAL PERCEPTION AND ATTRIBUTIONS By perception, we mean the process people use to make sense out of their surround- ings by selecting, organizing, and interpreting information. Values and attitudes affect perceptions, and vice versa. For example, a person might have developed the attitude that leaders are insensitive and arrogant, based on a pattern of perceiving arrogant and insensitive behavior from supervisors over a period of time. If the person moves to a new job, this attitude will continue to affect the way he or she perceives superiors in the new environment, even though his superiors in the new workplace might take great pains to understand and respond to employees’ needs. As another example, a leader who greatly values ambition and career success may perceive a problem or a subordinate’s mistake as an impediment to her own success, whereas a leader who values helpfulness and obedience might see it as a chance to help a subordinate improve or grow.

Because of individual differences in attitudes, personality, values, interests, and experiences, people often ‘‘see’’ the same thing in different ways. Consider that one survey of nearly 2,000 workers in the United States found that 92 percent of manag- ers think they are doing an ‘‘excellent’’ or ‘‘good’’ job managing employees, but only 67 percent of workers agree. As another example, in a survey of finance profes- sionals, 40 percent of women said they perceive that women face a ‘‘glass ceiling’’ that keeps them from reaching top management levels, whereas only 10 percent of men share that perception.47

4-4a Perceptual Distortions Of particular concern for leaders are perceptual distortions, errors in perceptual judgment that arise from inaccuracies in perception. Some types of errors are so common that leaders should become familiar with them. These include stereotyping, the halo effect, projection, and perceptual defense. Leaders who recognize these perceptual distortions can better adjust their perceptions to more closely match objective reality.

Stereotyping is the tendency to assign an individual to a group or broad cate- gory (e.g., female, black, elderly or male, white, disabled) and then to attribute widely held generalizations about the group to the individual. Thus, someone meets a new colleague, sees he is in a wheelchair, assigns him to the category ‘‘physically disabled,’’ and attributes to this colleague generalizations she believes about people with disabilities, which may include a belief that he is less able than other cow- orkers. However, the person’s inability to walk should not be seen as indicative of lesser abilities in other areas. Indeed, the assumption of limitations may not only offend him, but it also prevents the person making the stereotypical judgment from benefiting from the many ways in which this person can contribute. Stereotyping prevents people from truly knowing those they classify in this way. In addition, neg- ative stereotypes prevent talented people from advancing in an organization and fully contributing their talents to the organization’s success.

The halo effect occurs when the perceiver develops an overall impression of a person or situation based on one characteristic, either favorable or unfavorable. In other words, a halo blinds the perceiver to other characteristics that should be used in generating a more complete assessment. The halo effect can play a significant role in performance appraisal. For example, a person with an outstanding attendance record may be assessed as responsible, industrious, and highly productive; another person with less-than-average attendance may be assessed as a poor performer.

Perception the process people use to make sense out of the environment by selecting, organizing, and interpreting information

Perceptual distortions errors in judgment that arise from inaccuracies in the perceptual process

Stereotyping the tendency to assign an individual to a broad cate- gory and then attribute gen- eralizations about the group to the individual

Halo effect an overall impression of a person or situation based on one characteristic, either favorable or unfavorable


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Either assessment may be true, but it is the leader’s job to be sure the assessment is based on complete information about all job-related characteristics and not just his or her preferences for good attendance.

Projection is the tendency of perceivers to see their own personal traits in other people; that is, they project their own needs, feelings, values, and attitudes into their judgment of others. A leader who is achievement oriented might assume that sub- ordinates are as well. This might cause the manager to restructure jobs to be less routine and more challenging without regard for employees’ actual satisfaction. The best safeguards against errors based on projection are self-awareness and empathy.

Perceptual defense is the tendency of perceivers to protect themselves against ideas, objects, or people that are threatening. People perceive things that are satisfy- ing and pleasant but tend to disregard things that are disturbing and unpleasant. In essence, people develop blind spots in the perceptual process so that negative sensory data do not hurt them. For example, the director of a nonprofit educational organization in Tennessee hated dealing with conflict because he had grown up with parents who constantly argued and often put him in the middle of their arguments. The director consistently overlooked discord among staff members until things would reach a boiling point. When the blow-up occurred, the director would be shocked and dismayed because he had truly perceived that everything was going smoothly among the staff. Recognizing perceptual blind spots can help people develop a clearer picture of reality.

4-4b Attributions As people organize what they perceive, they often draw conclusions based on their perception.48 Attributions are judgments about what caused an event or behavior— (a) something about the person or (b) something about the situation. For example, many people attribute the success or failure of an organization to the top leader, when in reality there may be many factors that contribute to organizational per- formance. People also make attributions or judgments as a way to understand what caused their own or another person’s behavior:

An internal attribution says characteristics of the person led to the behavior (‘‘My subordinate missed the deadline because he’s lazy and incompetent’’). An external attribution says something about the situation caused the person’s behavior (‘‘My subordinate missed the deadline because he didn’t have the team support and resources he needed’’).

Attributions are important because they help people decide how to handle a situation. In the case of a subordinate missing a deadline, a leader who blames the mistake on the employee’s personal characteristics might reprimand the person or, more effectively, provide additional training and direction. A leader who blames the mistake on external factors will try to help prevent such situations in the future, such as making sure team members have the resources they need, providing support to remove obstacles, and insuring that deadlines are realistic.

The Fundamental Attribution Error People tend to have biases that they apply when making attributions. When evaluating others, many people underestimate the influence of external factors and overestimate the influence of internal factors. This tendency is called the fundamental attribution error. Consider the case of someone being promoted to CEO. Employees, outsiders, and the media generally focus on the characteristics of the person that allowed him or her to achieve the promotion.

Projection the tendency to see one’s own personal traits in other people

Perceptual defense the tendency to protect oneself by disregarding ideas, situations, or people that are unpleasant

Attributions judgments about what caused a person’s behavior— either characteristics of the person or of the situation

Fundamental attribution error the tendency to underesti- mate the influence of external factors on another’s behavior and overestimate the influ- ence of internal factors


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In reality, however, the selection of that person might have been heavily influenced by external factors, such as business conditions creating a need for someone with a strong financial or marketing background at that particular time.

The Self-Serving Bias Another bias that distorts attributions involves attributions we make about our own behavior. People tend to overestimate the contribution of internal factors to their successes and overestimate the contribution of external factors to their failures. This tendency, called the self-serving bias, means people give themselves too much credit for what they do well and give external forces too much blame when they fail. Thus, if a leader’s subordinates say she doesn’t listen well enough, and the leader thinks subordinates don’t communicate well enough, the truth may actually lie somewhere in between. At Emerald Packaging, Kevin Kelly examined his attributions and improved his leadership effectiveness by overcoming the self-serving bias, as described in the following example.

4-5 COGNITIVE DIFFERENCES The final area of individual differences we will explore is cognitive style. Cognitive style refers to how a person perceives, processes, interprets, and uses information. Thus, when we talk about cognitive differences, we are referring to varying approaches to perceiving and assimilating data, making decisions, solving problems,

IN THE LEAD Kevin Kelly, Emerald Packaging As the top leader of his family’s California company, Emerald Packaging—a maker of plastic bags for the food industry—Kevin Kelly thought of himself as indispensable. He considered himself to be chief architect of the company’s growing sales and profits. When Emerald began to falter, Kelly blamed it on his managers’ resistance to new ideas that could keep the business thriving. He thought everyone needed to change except him.

For some time, Kelly’s leadership approach was to reprimand and complain. Then, he decided to look at things in a different way. Was it really all his managers’ fault? Realizing that everyone was under stress from several years of rapid growth, Kelly hired a pack of new managers to reinforce his exhausted troops. Surprisingly, though, things just seemed to get worse. Kelly had to face a hard truth: Rather than being the one person in the organization who didn’t need to change, as Kelly had previously thought, he realized he was a big part of the problem.

Kelly sought consultants and classes to help boost his people skills. He began meeting regularly with veteran managers and new hires and implemented changes that successfully united the two groups into a cohesive team. Then, Kelly did something radical (at least for him). He took a real 10-day vacation, the first time he hadn’t been in routine contact with Emerald since he took over the company. Visions of disaster filled his head as he wondered how they could get along without him. As it turned out, people got along just fine. Crises got solved, production continued, and customers didn’t even seem to notice he was gone.

By examining his attributions and shifting his perception of himself, the organizational situation, and his managers’ abilities, Kelly made changes that allowed his managers to flourish and his company to grow even more successful.49

Self-serving bias the tendency to overesti- mate the influence of inter- nal factors on one’s successes and the influence of external factors on one’s failures

Cognitive style how a person perceives, processes, interprets, and uses information


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and relating to others.50 Cognitive approaches are preferences that are not necessar- ily rigid, but most people tend to have only a few preferred habits of thought. One of the most widely recognized cognitive differences is between what we call left- brained and right-brained thinking patterns.

4-5a Patterns of Thinking and Brain Dominance Neurologists and psychologists have long known that the brain has two distinct hemispheres. Furthermore, science has shown that the left hemisphere controls movement on the body’s right side and the right hemisphere controls movement on the left. In the 1960s and 1970s, scientists also discovered that the distinct hemispheres influence thinking, which led to an interest in what has been called left-brained versus right-brained thinking patterns. The left hemisphere is associ- ated with logical, analytical thinking and a linear approach to problem solving, whereas the right hemisphere is associated with creative, intuitive, values-based thought processes.51 A program sponsored by the New York City Economic Development Corporation illustrates the difference. Artists and other creative peo- ple are crucial to the vibrancy of the city, but most artists (right-brain thinking) don’t know how to plan and run a business (left-brain skills) so they have a hard time supporting themselves. The city has invested $ 50,000 in a program to teach right-brain creative people the left-brain skills they need to turn their creative works into money.52 As another simplified example, people who are very good at verbal and written language (which involves a linear thinking process) are using the left brain, whereas those who prefer to interpret information through visual images are more right-brained.

Although the concept of left-brained versus right-brained thinking is not entirely accurate physiologically (not all processes associated with left-brained thinking are located in the left hemisphere and vice versa), this concept provides a powerful metaphor for two very different ways of thinking and decision making. It is also im- portant to remember that everyone uses both left-brained and right-brained think- ing, but to varying degrees.

More recently, these ideas have been broadened to what is called the whole brain concept.53 Ned Herrmann began developing his concept of whole brain thinking while he was a manager at GE in the late 1970s and has expanded it through many years of research with thousands of individuals and organizations. The whole brain approach considers not only a person’s preference for right- brained versus left-brained thinking but also for conceptual versus experiential thinking. Herrmann’s whole brain model thus identifies four quadrants of the brain that are related to different thinking styles. Again, while not entirely accu- rate physiologically, the whole brain model is an excellent metaphor for under- standing differences in thinking patterns. Some people strongly lean toward using one quadrant in most situations, whereas others rely on two, three, or even all four styles of thinking. An individual’s preference for each of the four styles is deter- mined through a survey called the Herrmann Brain Dominance Instrument (HBDI), which has been administered to hundreds of thousands of individuals.

The whole brain model provides a useful overview of an individual’s mental preferences, which in turn affect patterns of communication, behavior, and leadership.

Quadrant A is associated with logical thinking, analysis of facts, and processing numbers. A person who has a quadrant-A dominance is rational and realistic, thinks

Whole brain concept an approach that considers not only a person’s prefer- ence for right-brained versus left-brained thinking, but also conceptual versus expe- riential thinking; identifies four quadrants of the brain related to different thinking styles

NEW LEADER ACTION MEMO A simplified exercise to help you think about your own preferences appears in Leader’s Self-Insight 4.4. Before reading further, follow the instructions and complete the exercise to get an idea about your dominant thinking style according to Herrmann’s whole brain model. Then read the following descriptions of each quadrant.

Quadrant A the part of the brain associ- ated in the whole brain model with logical thinking, analysis of facts, and proc- essing numbers


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critically, and likes to deal with numbers and technical matters. Quadrant-A think- ing might be thought of as the ‘‘scientist’’ part of the brain.54 These people like to know how things work and to follow logical procedures. When a leader has a pre- dominantly A-quadrant thinking style, he or she tends to be directive and authorita- tive. This leader focuses on tasks and activities and likes to deal with concrete information and facts. Opinions and feelings are generally not considered as impor- tant as facts.

Quadrant B deals with planning, organization of facts, and careful detailed review. A person who relies heavily on quadrant-B thinking is well-organized, reliable, and neat. This is the ‘‘manager’’ part of the brain.55 These people like to establish plans and procedures and get things done on time. Leaders with a predom- inantly quadrant-B thinking style are typically conservative and highly traditional. They tend to avoid risks and strive for stability. Thus, they may insist on following rules and procedures, no matter what the circumstances are.

Quadrant C is associated with interpersonal relationships and affects intuitive and emotional thought processes. C-quadrant individuals are sensitive to others and enjoy interacting with and teaching others; hence this might be considered the ‘‘teacher’’ part of the brain.56 These people are typically emotional and expressive, outgoing, and supportive of others. Leaders with a predominantly quadrant-C style are friendly, trusting, and empathetic. They are concerned with people’s feelings more than with tasks and procedures and may put emphasis on employee develop- ment and training.

LEADER’S SELF-INSIGHT 4.4 What’s Your Thinking Style?

Instructions: The following characteristics are associated with the four quadrants identified by Herrmann’s whole brain model. Think for a moment about how you approach problems and make decisions. In addition, consider how you typically approach your work or class assignments and how you interact with others. Circle 10 of the terms below that you believe best describe your own cognitive style. Try to be honest and select terms that apply to you as you are, not how you might like to be. There are no right or wrong answers.


Analytical Organized Friendly Holistic Factual Planned Receptive Imaginative Directive Controlled Enthusiastic Intuitive Rigorous Detailed Understanding Synthesizing Realistic Conservative Expressive Curious Intellectual Disciplined Empathetic Spontaneous Objective Practical Trusting Flexible Knowledgeable Industrious Sensitive Open-Minded Bright Persistent Passionate Conceptual Clear Implementer Humanistic Adventurous

The terms in column A are associated with logical, analytical thinking (quadrant A); those in column B with organized, detail-oriented thinking (quadrant B); those in column C with empathetic and emotionally based thinking (quadrant C); and those in column D with integrative and imaginative thinking (quadrant D). Do your preferences fall primarily in one of the four columns, or do you have a more balanced set of preferences across all four? If you have a strong preference in one particular quadrant, were you surprised by which one?

Quadrant B the part of the brain associ- ated in the whole brain model with planning, organ- izing facts, and careful, detailed review

Quadrant C the part of the brain associ- ated in the whole brain model with interpersonal relationships and intuitive and emotional thought processes

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Quadrant D is associated with conceptualizing, synthesizing, and integrating facts and patterns, with seeing the big picture rather than the details. This is the ‘‘artist’’ part of the brain.57 A person with a quadrant-D preference is visionary and imaginative, likes to speculate and break the rules, takes risks, and may be impulsive. These people are curious and enjoy experimentation and playfulness. The D-quadrant leader is holistic, imaginative, and entrepreneurial. This leader enjoys change, experimentation, and risk-taking and generally allows followers a great deal of freedom and flexibility.

Exhibit 4.4 illustrates the model with its four quadrants and some of the mental processes associated with each. There is no style that is necessarily better or worse, though any of the styles carried to an extreme can be detrimental. Each style can have both positive and negative results for leaders and followers. It is important to remember that every individual, even those with a strong preference in one quad- rant, actually has a coalition of preferences from each of the four quadrants.58 Each of us has at least a few qualities of the scientist, manager, teacher, and artist.

In addition, Herrmann believes people can learn to use their ‘‘whole brain’’ rather than relying only on one or two quadrants. His research indicates that very few, if any, individuals can be wholly balanced among the four quadrants, but people can be aware of their preferences and engage in activities and experiences that help develop the other quadrants. Leaders who reach the top of organizations often have well- balanced brains, according to Herrmann’s research. For example, Angela Ahrendts, who joined Apple as senior vice president for retail and online operations in 2014 after serving eight years as CEO of Burberry, uses a variety of thinking styles.

EXHIBIT 4.4 Herrmann’s Whole Brain Model

Logical Analytical

Fact-based Quantitative

A Upper left

B Lower left

D Upper right

C Lower right

Holistic Intuitive Integrating Synthesizing

Interpersonal Feeling-based Kinesthetic Emotional

Organized Sequential

Planned Detailed

Source: Ned Herrmann, The Whole Brain Business Book (New York: McGraw-Hill, 1996) p. 15.

IN THE LEAD Angela Ahrendts, Apple It wasn’t easy for Apple CEO Tim Cook to convince Angela Ahrendts to leave London and her top job at Burberry to come to work at Apple. But Cook knew her leadership was exactly

Quadrant D the part of the brain associ- ated in the whole brain model with conceptualizing, synthesizing, and integrating facts and patterns


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Ahrendts, who was listed as No. 16 on Fortune magazine’s 2015 list of ‘‘Most Powerful Women,’’ reflects the broad, balanced thinking style of a top leader. The typical CEO is a balanced thinker with at least two, usually three, and often four strong preferences and thus has a wide range of thinking options available to choose from. A broad range of thinking styles is particularly important at higher levels of organizations because leaders deal with a greater variety and complexity of people and issues.60

Understanding that individuals have different thinking styles can also help lead- ers be more effective in interacting with followers. Some leaders act as if everyone responds to the same material and behavior in the same way, but this isn’t true. Some people prefer facts and figures, whereas others want to know about relation- ships and patterns. Some followers prefer freedom and flexibility, whereas others crave structure and order. Leaders can shift their styles and behaviors to more effec- tively communicate with followers and help them perform up to their full potential. Leaders can also recruit people with varied cognitive styles to help achieve impor- tant goals.

4-5b Problem-Solving Styles: Jungian Types Another approach to cognitive differences grew out of the work of psychologist Carl Jung. Jung believed that differences in individual behavior resulted from pref- erences in how we go about gathering and evaluating information for solving problems and making decisions.61 One of the most widely used tests in the United States, the Myers–Briggs Type Indicator (MBTI)! assessment, is one way of measuring how individuals differ in these areas.62 The MBTI! assessment has been taken by

what he needed to revitalize the retail division, integrate the retail and online operations, and expand the role of Apple stores to play a key social role in the communities they serve. ‘‘I visited Burberry stores and spent some time online. And you could tell that she got it at a deep level,’’ Cook says. He convinced Ahrendts to bring that ability to think broadly and deeply to Apple, where 60 percent of employees now work in the retail division.

As CEO of British company Burberry, Ahrendts led a stunning turnaround by using creative, holistic thinking (Quadrant D) to transform it from an outdated brand into a ‘‘technologically savvy international fashion powerhouse.’’ Another right-brain characteristic was her emphasis on building positive interpersonal relationships (Quadrant C). Yet Ahrendts also demonstrated left-brain thinking in her careful control of the company’s finances (Quadrant B) and her ability to be realistic, analytical, and rational when it came to making difficult decisions (Quadrant A). When the recession hit in 2008, Ahrendts quickly took charge, putting on hold plans for new stores, cutting $78 million in expenses, freezing salaries, and changing company procedures to be more cost-effective.

At Apple, Ahrendts started her new job by focusing on rebuilding morale and trust in a division that hadn’t had a leader for more than a year after the previous manager had left after only five months. Morale and trust had suffered from both the turnover and some of the decisions that manager had made, such as cutting work hours and benefits. Ahrendts put her right-brain skills to work on a listening tour, visiting the stores, call, centers, and back offices to answer questions, hear complaints, and reignite motivation and energy. As she did at Burberry, she is also using left-brain thinking to come up with ways to control finances that don’t damage trust and morale.59

NEW LEADER ACTION MEMO As a leader, you can strive for ‘‘whole brain’’ thinking to deal effectively with a wide variety of people and complex issues. You can be aware of your natural thinking patterns and include other perspectives that help you develop a broader understanding.

Myers–Briggs Type Indicator (MBTI)! test that measures how indi- viduals differ in gathering and evaluating information for solving problems and making decisions


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millions of people around the world and can help individuals better understand themselves and others.

The MBTI! instrument uses four different pairs of attributes to classify people in one of 16 different personality types:

1. Introversion versus extroversion: This dimension focuses on where people gain interpersonal strength and mental energy. Extroverts (E) gain energy from being around others and interacting with others, whereas introverts (I) gain energy by focusing on personal thoughts and feelings.

2. Sensing versus intuition: This identifies how a person absorbs information. Those with a sensing preference (S) gather and absorb information through the five senses, whereas intuitive people (N) rely on less direct perceptions. Intuitives, for example, focus more on patterns, relationships, and hunches than on direct perception of facts and details.

3. Thinking versus feeling: This dimension relates to how much consideration a person gives to emotions in making a decision. Feeling types (F) tend to rely more on their values and sense of what is right and wrong, and they consider how a decision will affect other people’s feelings. Thinking types (T) tend to rely more on logic and be very objective in decision making.

4. Judging versus perceiving: The judging versus perceiving dimension concerns an individual’s attitudes toward ambiguity and how quickly a person makes a decision. People with a judging preference like certainty and closure. They enjoy having goals and deadlines and tend to make decisions quickly based on available data. Perceiving people, on the other hand, enjoy ambiguity, dislike deadlines, and may change their minds several times before making a final decision. Perceiving types like to gather a large amount of data and information before making a decision.

The various combinations of these preferences result in 16 unique types. There are a number of exercises available in print and on the Internet that can help people determine their preferences according to the MBTI! assessment. Individuals develop unique strengths and weaknesses as a result of their preferences for introversion versus extroversion, sensing versus intuition, thinking versus feeling, and judging versus perceiving. As with the whole brain approach, MBTI! types should not be considered ingrained or unalterable. People’s awareness of their preferences, train- ing, and life experiences can cause them to change their preferences over time.

Nearly 200 agencies of the U.S. government, including the Environmental Pro- tection Agency (EPA), the Central Intelligence Agency (CIA), and the Department of Veterans Affairs, have been reported to use the MBTI! instrument as part of their training programs. Brian Twillman of the EPA says at least a quarter of the agency’s 17,000 federal employees have taken the test, and that without it ‘‘there would be a lot of blind spots within the agency.’’63 A primary value of the MBTI! assessment is that it starts an important dialogue about how people interact with others.

At Hallmark Cards, top executives wanted to develop leaders who could see things from different perspectives, work together for everyone’s success, and fully engage and inspire both employees and customers. One approach to creating that new culture was using the MBTI! to give managers greater self-awareness and insight into how their patterns of thought and behavior affected others. ‘‘We tend to place people into ‘files’ according to our perceptions of them, which are often skewed,’’ said Mary Beth Ebmeyer, HR manager for corporate development.64

By understanding different MBTI! types, Hallmark leaders can flex their


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communication style as needed and connect more meaningfully with employees. In addition, being aware of their own MBTI! type enables leaders to maximize their strengths and minimize their weaknesses. Leaders should remember that each type can have positive and negative consequences for behavior.

There has been an increasing application of the MBTI! assessment in leadership studies.65 These studies confirm that there is no ‘‘leader type,’’ and all 16 of the MBTI! types can function effectively as leaders. As with the four quadrants of the whole brain model, leaders can learn to use their preferences and balance their approaches to best suit followers and the situation. However, research reveals some interesting, although tentative, findings. For example, although extroversion is often considered an important trait for a leader, leaders in the real world are about equally divided between extroverts and introverts. In regard to the sensing versus intuition dimension, data reveal that sensing types are in the majority in fields where the focus is on the immediate and tangible (e.g., construction, banking, manufacturing). How- ever, in areas that involve breaking new ground or long-range planning, intuitive lead- ers are in the majority. Thinking (as opposed to feeling) types are more common among leaders in business and industry as well as in the realm of science. In addition, thinking types appear to be chosen more often as managers even in organizations that value ‘‘feeling,’’ such as counseling centers. Finally, one of the most consistent findings is that judging types are in the majority among the leaders studied.

Thus, based on the limited research, the two preferences that seem to be most strongly associated with successful leadership are thinking and judging. However, this doesn’t mean that people with other preferences cannot be effective leaders. Much more research needs to be done before any conclusions can be reached about the relationship between MBTI! types and leadership.

4-6 WORKING WITH DIFFERENT PERSONALITY TYPES As this chapter has shown, leaders have to work with individuals who differ in many ways. Personality differences, in particular, can make the life of a leader inter- esting and sometimes exasperating. These differences can create an innovative envi- ronment but also lead to stress, conflict, and negative feelings.

Leaders can learn to work more effectively with different personality types by following some simple guidelines.66

Understand your own personality and how you react to others. Avoid judging people based on limited knowledge, and realize that everyone has different facets to their personality. Learn to control your frustration to help you keep different personality types focused on the goal and the tasks needed to reach it. Treat everyone with respect. People like to be accepted and appreciated for who they are. Even if you find someone’s personality grating, remain professional and keep your irritation to yourself. Don’t gossip or joke about others. Acknowledge each person’s strengths. Everyone wants to be recognized for their unique talents, so be sure to acknowledge and make use of people’s useful per- sonality characteristics. For instance, a pessimistic person can be difficult to be around, but these gloomy folks can sometimes be helpful by calling attention to legitimate problems with an idea or plan. Strive for understanding. A good approach to take with a personality type widely different from yours is to clarify questions every time there’s a potential for mis- communication. Follow up each question or request with a statement explaining why you asked and how it will benefit the organization as well as the individual.

NEW LEADER ACTION MEMO Go to Leader’s Self-Insight 4.5 to complete an exercise that will identify your preferences for the four pairs of attributes identified by the MBTI! assessment.


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LEADER’S SELF-INSIGHT 4.5 Personality Assessment: Jung’s Typology

Instructions: For each item below, circle either ‘‘a’’ or ‘‘b.’’ In some cases, both ‘‘a’’ and ‘‘b’’ may apply to you. You should decide which ismore like you, even if it is only slightly more true.

1. I would rather

a. Solve a new and complicated problem b. Work on something that I have done before

2. I like to

a. Work alone in a quiet place b. Be where ‘‘the action’’ is

3. I want a boss who

a. Establishes and applies criteria in decisions b. Considers individual needs and makes exceptions

4. When I work on a project, I

a. Like to finish it and get some closure b. Often leave it open for possible change

5. When making a decision, the most important considerations are

a. Rational thoughts, ideas, and data b. People’s feelings and values

6. On a project, I tend to

a. Think it over and over before deciding how to proceed b. Start working on it right away, thinking about it as I

go along

7. When working on a project, I prefer to

a. Maintain as much control as possible b. Explore various options

8. In my work, I prefer to

a. Work on several projects at a time, and learn as much as possible about each one

b. Have one project that is challenging and keeps me busy

9. I often

a. Make lists and plans whenever I start something and may hate to seriously alter my plans

b. Avoid plans and just let things progress as I work on them

10. When discussing a problem with colleagues, it is easy for me

a. To see ‘‘the big picture’’ b. To grasp the specifics of the situation

11. When the phone rings in my office or at home, I usually

a. Consider it an interruption b. Don’t mind answering it

12. The word that describes me better is

a. Analytical b. Empathetic

13. When I am working on an assignment, I tend to

a. Work steadily and consistently b. Work in bursts of energy with ‘‘down time’’ in


14. When I listen to someone talk on a subject, I usually try to

a. Relate it to my own experience and see if it fits b. Assess and analyze the message

15. When I come up with new ideas, I generally

a. ‘‘Go for it’’ b. Like to contemplate the ideas some more

16. When working on a project, I prefer to

a. Narrow the scope so it is clearly defined b. Broaden the scope to include related aspects

17. When I read something, I usually

a. Confine my thoughts to what is written there b. Read between the lines and relate the words to

other ideas

18. When I have to make a decision in a hurry, I often

a. Feel uncomfortable and wish I had more information b. Am able to do so with available data

19. In a meeting, I tend to

a. Continue formulating my ideas as I talk about them b. Only speak out after I have carefully thought the

issue through

20. In work, I prefer spending a great deal of time on issues of

a. Ideas b. People

21. In meetings, I am most often annoyed with people who

a. Come up with many sketchy ideas b. Lengthen the meeting with many practical details

22. I tend to be

a. A morning person b. A night owl

23. My style in preparing for a meeting is

a. To be willing to go in and be responsive b. To be fully prepared and sketch out an outline of

the meeting

24. In meetings, I would prefer for people to

a. Display a fuller range of emotions b. Be more task oriented

25. I would rather work for an organization where

a. My job was intellectually stimulating b. I was committed to its goals and mission


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26. On weekends, I tend to

a. Plan what I will do b. Just see what happens and decide as I go along

27. I am more

a. Outgoing b. Contemplative

28. I would rather work for a boss who is

a. Full of new ideas b. Practical

In the following, choose the word in each pair that appeals to you more:

29. a. Social b. Theoretical

30. a. Ingenuity b. Practicality

31. a. Organized b. Adaptable

32. a. Activity b. Concentration

Scoring Count one point for each item listed below that you circled in the inventory.

Score for I (Introversion)

Score for E (Extroversion)

Score for S (Sensing)

Score for N (Intuition)

2a 2b 1b 1a 6a 6b 10b 10a 11a 11b 13a 13b 15b 15a 16a 16b 19b 19a 17a 17b 22a 22b 21a 21b 27b 27a 28b 28a 32b 32a 30b 30a

Totals ____________ ____________ ____________ ____________ Circle the one with more points:

I or E (If tied on I/E, don’t count #11)

Circle the one with more points: S or N

(If tied on S/N, don’t count #16)

Score for T (Thinking)

Score for F (Feeling)

Score for J (Judging)

Score for P (Perceiving)

3a 3b 4a 4b 5a 5b 7a 7b 12a 12b 8b 8a 14b 14a 9a 9b 20a 20b 18b 18a 24b 24a 23b 23a 25a 25b 26a 26b 29b 29a 31a 31b

Totals ____________ ____________ ____________ ____________ Circle the one with more points:

T or F (If tied on T/F, don’t count #24)

Circle the one with more points: J or P

(If tied on J/P, don’t count #23)

Your Score Is: I or E ________ S or N ________ T or F ________ J or P ________

Your type is: ________ (example: INTJ, ESFP, etc.)

Personality Assessment: Jung’s Typology (Continued)


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Scoring and Interpretation The scores above measure variables similar to the MBTI! assessment based on the work of psychologist Carl Jung. The MBTI! assessment, which was described in this chapter, identifies four dimensions and 16 different ‘‘types.’’ The dominant characteristics associated with each dimension and each type are shown below. Remember that no one is a pure type; however, each person has preferences for introversion versus extroversion, sensing versus intuition, thinking versus feeling, and judging versus perceiving. Based on your scores on the survey, read the description of your dimension and type in the chart. Do you believe the description fits your personality?

Characteristics Associated with Each Dimension

Extroversion: Energized by outer world of people and objects, broad interests, thinks while speaking.

Introversion: Energized by inner world of thoughts and ideas, deep interests, thinks before speaking.

Sensing: Likes facts, details, and practical solutions. Intuition: Likes meanings, theory, associations among data, and possibilities.

Thinking: Makes decisions by analysis, logic, and impersonal criteria.

Feeling: Makes decisions based on values, beliefs, and concern for others.

Judging: Lives life organized, stable, systematic, and under control.

Perceiving: Lets life happen, spontaneous, open-ended, last minute.

Characteristics Associated with Each Type

ISTJ: Organizer, trustworthy, responsible, good trustee or inspector.

ISFJ: Quiet, conscientious, devoted, handles detail, good conservator.

INFJ: Perseveres, inspirational, quiet caring for others, good counselor.

INTJ: Independent thinker, skeptical, theory, competence, good scientist.

ISTP: Cool, observant, easy-going, good craftsperson.

ISFP: Warm, sensitive, team player, avoids conflict, good artist.

INFP: Idealistic, strong values, likes learning, good at noble service.

INTP: Designer, logical, conceptual, likes challenges, good architect.

ESTP: Spontaneous, gregarious, good at problem solving and promoting.

ESFP: Sociable, generous, makes things fun, good as entertainer.

ENFP: Imaginative, enthusiastic, starts projects, good champion.

ENTP: Resourceful, stimulating, dislikes routine, tests limits, good inventor.

ESTJ: Order, structure, practical, good administrator or supervisor.

ESFJ: People skills, harmonizer, popular, does things for people, good host.

ENFJ: Charismatic, persuasive, fluent presenter, sociable, active, good teacher.

ENTJ: Visionary planner, takes charge, hearty speaker, natural leader.

Source: From Organizational Behavior: Experience and Cases, 4th ed., by Dorothy Marcic. ª 1995. Reprinted with permission of South-Western, a division of Thomson Learning: http://www.thomsonrights.com. Fax: 800-730-2215.

Personality Assessment: Jung’s Typology (Continued)

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Remember that everyone wants to fit in. No matter their personalities, people typically take on behavior patterns that are the norm for their environment. Leaders can create norms that keep everyone focused on positive interactions and high performance.

Occasional personality conflicts are probably inevitable in any group or organi- zation, but by using these techniques, leaders can generally keep the work environ- ment positive and productive.

LEADERSHIP ESSENTIALS This chapter explored the importance of self-awareness and some of the individ- ual differences that affect leaders and the leadership process. Individuals differ in many ways, including personality, values and attitudes, and styles of thinking and decision making. One model of personality, the Big Five personality dimensions, examines whether individuals score high or low on the dimensions of extroversion, agree- ableness, conscientiousness, emotional stability, and openness to experience. Although there is some indication that a high degree of each of the personality dimensions is associated with successful leadership, individuals who score low on various dimensions may also be effective leaders. Two specific personality traits that have a significant impact on leader behavior are locus of control and authoritarianism. Values are fundamental beliefs that cause a person to prefer that things be done one way rather than another. One way to think about values is in terms of instrumental and end values. End values are beliefs about the kinds of goals that are worth pursuing, whereas instrumental values are beliefs about the types of behavior that are appropriate for reaching goals. Values also affect an individu- al’s attitudes. A leader’s attitudes about self and others influence how the leader behaves toward and interacts with followers. Two sets of assumptions called Theory X and Theory Y represent two very different sets of attitudes leaders may hold about people in general. Differences in personality, values, and attitudes influence perception, which is the process people use to select, organize, and interpret information. Perceptual distortions include stereotyping, the halo effect, projection, and perceptual defense. Attributions refer to how people explain the causes of events or behav- iors. Based on their perception, people may make either internal or external attributions. Another area of individual differences is cognitive style. The whole brain con- cept explores a person’s preferences for right-brained versus left-brained think- ing and for conceptual versus experiential thinking. The model provides a powerful metaphor for understanding differences in thinking styles. Individuals can learn to use their ‘‘whole brain’’ rather than relying on one thinking style. Another way of looking at cognitive differences is the MBTI!, which measures an individual’s preferences for introversion versus extroversion, sensing versus intuition, thinking versus feeling, and judging versus perceiving. Finally, the chapter offered some tips for how leaders can work more effectively with varied personality types. By understanding their own personalities, treating everyone with respect, recognizing people’s unique abilities, circumventing


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communication breakdowns, and creating a positive environment, leaders can bet- ter keep diverse people productive and focused on goals instead of personality dif- ferences.

DISCUSSION QUESTIONS 1. Do you agree that self-awareness is essential for being a good leader? Can you think of some

specific negative consequences that might result from a leader not having self-awareness?

2. Extroversion is often considered a ‘‘good’’ quality for a leader to have. Why might intro- version be considered an equally positive quality?

3. A survey found that 79 percent of CEOs surveyed fall into the category of being ‘‘highly optimistic,’’ whereas a much lower percentage of chief financial officers were rated as highly optimistic. Do you think these differences reflect personality characteristics or the different requirements of the two jobs? Discuss.

4. The chapter suggests that one way to work effectively with different personalities is to treat everyone with respect. How might a leader deal with a subordinate who is perpetu- ally rude, insensitive, and disrespectful to others?

5. What might be some reasons the dimension of ‘‘openness to experience’’ correlates so strongly with historians’ ratings of the greatest U.S. presidents but has been less strongly associated with business leader success? Do you think this personality dimension might be more important for business leaders of today than it was in the past? Discuss.

6. Leaders in many of today’s organizations use the results of personality testing to make hiring and promotion decisions. Discuss some of the pros and cons of this approach.

7. From Leader’s Self-Insight 4.3, identify four or five values (instrumental or end values) that could be a source of conflict between leaders and followers. Explain.

8. Do you believe understanding your preferences according to the whole brain model can help you be a better leader? Discuss.

9. How can a leader use an understanding of brain dominance to improve the functioning of the organization?

10. Hallmark Cards discovered that its mid- and upper-level managers were primarily think- ing types, but top executives displayed primarily feeling preferences. Why do you think this might be?

LEADERSHIP AT WORK Past and Future Draw a life line below that marks high and low experiences during your life. Think of key decisions, defining moments, peak experiences, and major disappointments that shaped who you are today. Draw the line from left to right, and identify each high and low point with a word or two.

Birth Year: Today’s Date:

What made these valued experiences? How did they shape who you are today?


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Now take the long view of your life. In 10-year increments, write below the leader experiences you want to have. Provide a brief past-tense description of each decade (e.g., next 10 years—big starting salary, bored in first job, promoted to middle management). Next 10 years: ___________________________________________________________________

Following 10 years: _______________________________________________________________

Following 10 years: _______________________________________________________________

Following 10 years: _______________________________________________________________

What personal skills and strengths will you use to achieve the future?

What is your core life purpose or theme as expressed in the life line and answers above?

What would your desired future self say to your present self?

How do your answers above relate to your scores on the Leader Self-Insight questionnaires you completed in this chapter?

LEADERSHIP DEVELOPMENT: CASES FOR ANALYSIS A Nice Manager Chisum Industries’ management promotion process was a benchmark for providing lateral moves as well as promotion to the next level within the company. With offices, plants, and warehouses located in seven Texas cities, opportunities for the best and brightest were extensive for middle management employees. The process invited candidates to explore goals, strengths, and weaknesses and to recount real-life scenarios and accomplishments. The selection team also visited the worksites of candidates for on-the-job observations and talks with fellow workers before bringing the final candidates to Dallas for interviews. The process offered personal insight and growth opportunities to all candidates for promotion.


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In March 2015, top management, including Marcus Chisum, Karl Jacobson, Mitch Ivey, Wayne Hughes, and Barbara Kennedy, were midway through a meeting to consider which of four middle management candidates to promote to the top position in the San Antonio office.

Marcus: ‘‘Who do we have next?’’

Barbara: ‘‘Harry Creighton.’’ Scanning the group, Marcus sees a few nods and a shrug.

Marcus: ‘‘Feedback?’’

Karl and Wayne, simultaneously: ‘‘Great guy.’’

Karl: ‘‘We all know that Harry came into a situation in which that particular location was suf- fering a drop in performance. Morale was low and there were rumors of layoffs. He came in and calmed employee fears and has done a good job of raising performance levels.’’

Wayne: ‘‘He has a great relationship with employees. As we went around and talked to peo- ple, it was obvious that he has developed a level of trust and a vision that workers buy into.’’

Barbara: ‘‘The word that kept coming up among the workers was ‘nice.’’’ As was his habit during meetings, Mitch leaned back in his chair, tapping his pencil on the table. Initially annoyed by the habit, over time the team had gotten used to the sound.

Marcus: ‘‘Mitch, your initial reaction to his name was a shrug. What are you thinking?’’

Mitch: ‘‘Just wondering if nice is what we’re looking for here?’’ The remark was met with laughter. ‘‘Tell me, how does a manager achieve an across-the-board reputation as a nice guy? I’ve worked for and with a number of managers during my life. I respected them, thought many of them were fair and up-front in their treatment of us; thought some were jerks who should be canned . . .’’

Marcus: ‘‘I hope I don’t fall into that last category.’’ (Laughter)

Mitch: ‘‘I don’t recall any consensus about a manager being nice.’’

Karl: ‘‘Several people mentioned that Harry always has their back.’’

Barbara: ‘‘I got the impression that Harry covers for them.’’

Marcus: ‘‘Meaning what?’’

Wayne: ‘‘Meaning, giving them some slack when it comes to things like overlooking their weaknesses, a little sloppiness with deadlines or taking time off.’’

Barbara: ‘‘Several mentioned that he’s always willing to . . . let me look at my notes . . . ‘Always willing to step in and help out.’ The phrase came up more than a few times and when I pressed them, they didn’t elaborate. But I wondered . . .’’

Karl: ‘‘ . . . Is he managing or taking on some of their responsibilities?’’

Barbara: ‘‘Exactly.’’

Mitch: ‘‘It’s bothering me that he comes across as the parent who does his kid’s project for the science fair.’’

Wayne: ‘‘I don’t think it’s that bad, but when you look at him in comparison with the other candidates, it makes me question whether he can take on the tough part of top manage- ment. There is nothing distinctive about him or his style.’’

Karl: ‘‘There’s no edge here. No sense of boundaries. Does he want to manage employees or be popular with them? Can he say ‘No’ and mean it?’’

Barbara: ‘‘Does Harry have the capability to walk that fine line that separates leaders; that distinguishes respect versus popularity or encouragement and support over stepping in and helping out?’’


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Marcus: ‘‘So, we see some good things about Harry. He has a lot of potential. But we also see that he has not yet reached a level where we can entrust him with this top management position. Our task here, then, is to move on with the selection process, but over the next weeks I would like for us to consider ways to help Harry reach that potential for future opportunities.’’


1. What does nice mean to you? Do you think nice is a good trait for leaders or the kiss of death?

2. Is nice related to any concepts in the chapter, such as one of the big five personality dimensions, Myers–Briggs components, or left–right brain dominance? Discuss.

3. If Harry is passed over for promotion, what feedback and advice would you give him about how to improve his leadership skills for possible future promotion?

Environmental Designs International When Lee Keiko returned from a quick lunch, she scanned her e-mail inbox for the message she had been dreading. She found it, labeled ‘‘high priority,’’ among a dozen other e-mails and sank back in her chair as she mentally prepared to open it. Keiko felt a tightening in her stomach as she clicked on the message and braced herself for the assault she had grown to expect from Barry Carver, her boss at Environmental Designs International (EDI), a rapidly growing ‘‘green’’ company that specializes in retrofitting commercial buildings to improve their energy efficiency.

The primary clients of EDI are owners of skyscrapers who renovate their buildings to reduce energy use and cut down on greenhouse gas emissions, a contributor to global warm- ing. Within these towering skyscrapers, the largest energy guzzlers are lighting, cooling, and heating. Owners of New York City’s Empire State Building expect to reduce the skyscraper’s energy use by 38 percent within five years at an annual savings of $ 4.4 million after this 78-year-old building is retrofitted.

Keiko had expected Carver’s scathing e-mail and knew he would lambaste her and her team for missing last Friday’s deadline for submitting a proposal to retrofit a 60-story Chicago skyscraper to meet new federal green standards. Keiko had warned Carver of the possible delay in completing the proposal due to changing federal regulations for energy effi- ciency. It was truly out of her hands. She had even consulted with the client to alert them of the delay, and they had agreed to an extended deadline.

Nevertheless, Carver was angry about the delay and fired off an e-mail that was brusque and insensitive. ‘‘I depend on you to meet deadlines and work effectively with regulatory agencies. Your ineptness may cost us this important project,’’ he exclaimed in his e-mail to Keiko. ‘‘Why aren’t you as committed to this project as I am? I can’t do this alone,’’ he stated. This was one more example of how Carver often made life miserable for his subordinates, verbally attacking them to get results. Carver had also started alienating his peers. During a recent meeting to discuss the replacement of thousands of windows in the Chicago skyscraper, Carver embarrassed a colleague by accusing him of selecting a vendor without doing a price comparison among vendors. ‘‘How can I value your recommendation, Troy, if you fail to do your homework? I need new prices by Friday!’’ shouted Carver.

Carver was a highly skilled architect and responsible for managing a team of designers in EDI’s Chicago office. Although his abrupt personality had helped him climb the corporate ladder, his intimidating communication style was beginning to create problems and hamper his ability to get results. Carver learned in his performance review that his work relationships were suffering and the complaints about him were increasing. Even his long-time peers were avoiding him as much as possible and finding ways to work around him.

Sensitive to the growing animosity toward him, Carver began to reconsider how he inter- acted with his staff and peers. He felt motivated to begin using some of the tools he had


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recently learned in the executive education course he had just completed. During one of the skills-assessment activities, Carver learned that he could get better results by communicating more gently, building consensus, and working in a more team-oriented manner. Further, he realized he had to find ways to handle his anger and frustration when dealing with federal regulatory agencies and the inevitable delays that hampered progress on big construction projects. As he thought about the skills assessment, Carver wondered if he could soften his image and perhaps even be considered for a senior management position he was eyeing in EDI’s Los Angeles office.

Sources: Based on information in Gerry Yemen, Erika H. James, and James G. Clawson, ‘‘Nicholas Gray: The More Things Change . . .,’’ (Darden Business Publishing, University of Virginia, Copyright 2003; and Mireya Navarro, ‘‘The Empire State Building Plans a Growth Spurt, Environmentally,’’ The New York Times (April 7, 2009), p. A25.


1. ‘‘At the senior management level, you get hired for competence. You get fired for person- ality.’’ In your opinion, is this statement true or false? How does it relate to Barry Carver and his current leadership style?

2. Identify the behaviors described in this case that were damaging to Barry Carver’s work relationships. Why would a manager behave this way? What negative consequences did these behaviors have on his peers and subordinates?

3. How realistic is it that Carver (or anyone) can change his own leadership skills? What kind of help might he need?

REFERENCES 1. Adam Bryant, ‘‘Nancy Dubec of A&E: Mixing Doers, Thinkers and

Feelers’’ (Corner Office column), The New York Times (March 19, 2015), http://www.nytimes.com/2015/03/22/business/nancy-dubuc-of- ae-mixing-doers-thinkers-and-feelers.html?_r=0 (accessed October 13, 2015).

2. Reported in William W. George, Peter Sims, Andrew N. MacLean, David Mayer, and Diana Mayer, ‘‘Discovering Your Authentic Leader- ship,’’ Harvard Business Review (February 2007), pp. 129–138.

3. Bill George, ‘‘Leadership Skills: It Starts with Self-Awareness,’’ Leadership Excellence (June 2011), p. 13; Tricia Bisoux, ‘‘What Makes Leaders Great’’ (interviews with leadership experts), BizEd (September–October 2005), pp. 40–45; Warren Bennis, Why Leaders Can’t Lead (San Francisco: Jossey-Bass, 1989); Daniel Goleman, ‘‘What Makes a Leader?’’ Harvard Business Review (November– December 1998), p. 93ff; and Richard E. Boyatzis, The Competent Manager: A Model for Effective Performance (New York: Wiley, 1982).

4. Charlotte Beers, interviewed by Adam Bryant, ‘‘The Best Scorecard Is the One You Keep for Yourself,’’ The New York Times (March 31, 2012), http://www.nytimes.com/2012/04/01/business/charlotte-beers- on-the-importance-of-self-assessment.html?pagewanted=all (accessed April 1, 2012).

5. Camille Sweeney and Josh Gosfield, The Art of Doing: How Superachi- evers Do What They Do and How They Do It So Well (New York: Plume/Penguin, 2013), as reported in Sweeney and Gosfield, ‘‘Secret Ingredient for Success,’’ The New York Times (January 20, 2013), p. SR4.

6. Doug Rauch, ‘‘Failure Chronicles: ‘You’re Driving Us Crazy. You’ve Got to Back Off,’’’ Harvard Business Review (April 2011), p. 56.

7. Steven Snyder, ‘‘Leadership Struggle: It’s an Art to Be Mastered,’’ Leadership Excellence (January 2013), p. 11; and Ira Chaleff, ‘‘Avoid Fatal Crashes: Leaders and Their Blind Spots,’’ Leadership Excellence (May 2012), p. 13.

8. Sue Shellenbarger, ‘‘To Combat an Office Tyrant, Look at the Roots,’’ The Wall Street Journal (April 28, 2010); and Ed Frauenheim, ‘‘Pulling No Punches,’’ Workforce Management (October 6, 2008), p. 1.

9. Robert I. Sutton, The No Asshole Rule: Building a Civilized Workplace and Surviving One That Isn’t (New York: Warner Business Books, 2007).

10. Marshall Goldsmith, ‘‘People Skills: These Matter Most at the Top Level,’’ Leadership Excellences (June 2007), p. 9.

11. Alex Lickerman, ‘‘The Good Guy Contract,’’ Psychology Today (March–April 2010), pp. 42–43.

12. Quoted in L. Mitchell, ‘‘Ten Things I Don’t Put on My C.V.: Sue Mur- ray,’’ Age (October 25, 2008), p. 3.

13. Adam Bryant, ‘‘Making Room for Differences,’’ (Corner Office col- umn), The New York Times (February 7, 2015), http://www.nytimes. com/2015/02/08/business/corner-office-making-room-for-differences.html?_ r=0 (accessed October 13, 2015).

14. J. M. Digman, ‘‘Personality Structure: Emergence of the Five-Factor Model,’’ Annual Review of Psychology 41 (1990), pp. 417–440; M. R. Barrick and M. K. Mount, ‘‘Autonomy as a Moderator of the Relationships between the Big Five Personality Dimensions and Job Performance,’’ Journal of Applied Psychology (February 1993), pp. 111–118; J. S. Wiggins and A. L. Pincus, ‘‘Personality: Structure and Assessment,’’ Annual Review of Psychology 43 (1992), pp. 473–504; and Carl Zimmer, ‘‘Looking for Personality in Animals, of All People,’’ The New York Times (March 1, 2005), p. F1.

15. Del Jones, ‘‘Not All Successful CEOs Are Extroverts,’’ USA Today (June 6, 2006), p. B1; and Bryan Walsh, ‘‘The Upside of Being an Introvert (and Why Extroverts Are Overrated),’’ Time (February 6, 2012), pp. 40–45.

16. Reported in Daisy Grewal, ‘‘When Nice Guys Finish First,’’ Scientific American Mind (July–August 2012), pp. 62–65.

17. Anthony J. Mayo and Nitin Nohria, ‘‘Double-Edged Sword,’’ People Management (October 27, 2005), pp. 36–38; Carol Hymowitz,


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‘‘Rewarding Competitors over Collaborators No Longer Makes Sense’’ (In the Lead column), The Wall Street Journal (February 13, 2006), p. B1; and Joseph Nocera, ‘‘In Business, Tough Guys Finish Last,’’ The New York Times (June 18, 2005), p. C1.

18. Diane Brady, ‘‘Charm Offensive,’’ BusinessWeek (June 26, 2006), pp. 76–80.

19. Research reported in J. J. McCorvey, ‘‘Research Corner: Feeling Guilty? Good. Why Guilt Makes You a Better Leader,’’ Inc. (July– August 2012), p. 26; and Rachel Emma Silverman, ‘‘Plagued by Guilt? You May Be Management Material,’’ The Wall Street Journal (May 29, 2012), http://blogs.wsj.com/atwork/2012/05/29/plagued-by-guilt- you-may-be-management-material/ (accessed June 3, 2012).

20. Anne-Elisabeth Moutet, ‘‘Dominique Strauss-Kahn: A Frenchman Sunk by a Sex Scandal?’’ The Telegraph (May 16, 2011), http://www. telegraph.co.uk/news/worldnews/europe/france/8515714/Dominique- Strauss-Kahn-A-Frenchman-sunk-by-a-sex-scandal.html (accessed August 26, 2012).

21. Bill George, ‘‘The Courage to Say ‘No’ to Wall Street’’ (segment in ‘‘America’s Best Leaders’’), U.S. News & World Report (December 1–December 8, 2008), pp. 34–51; Andrew Davidson, ‘‘Xerox Saviour in the Spotlight,’’ Sunday Times (June 1, 2008), p. 6; and David K. Williams, ‘‘Top 10 List: The Greatest Living Business Leaders Today,’’ Forbes (July 24, 2012), www.forbes.com/sites/davidkwilliams/2012/ 07/24/top-10-list-the-greatest-living-business-leaders-today/ (accessed March 4, 2013).

22. Marjorie Censer, ‘‘After Nearly 30 Years with Lockheed, Hewson Is Named Chief Executive,’’ The Washington Post (November 13, 2012), http://www.washingtonpost.com/business/capitalbusiness/after-nearly- 30-years-with-lockheed-hewson-is-named-chief-executive/2012/11/13/ 173cc04a-2cdc-11e2-a99d-5c4203af7b7a_story.html?wprss=rss_business (accessed November 14, 2012); and Doug Cameron and Joann S. Lublin, ‘‘Vaulted to Top at Lockheed, and Ready to Navigate Cliff,’’ The Wall Street Journal Online (November 11, 2012), http://online.wsj.com/article/ SB10001424127887324439804578113250113672078.html (accessed March 19, 2013).

23. James B. Hunt, ‘‘Travel Experience in the Formation of Leadership: John Quincy Adams, Frederick Douglass, and Jane Addams,’’ The Journal of Leadership Studies 7, no. 1 (2000), pp. 92–106.

24. R. T. Hogan, G. J. Curphy, and J. Hogan, ‘‘What We Know about Leadership: Effectiveness and Personality,’’ American Psychologist 49, no. 6 (1994), pp. 493–504.

25. Randolph E. Schmid, ‘‘Psychologists Rate What Helps Make a Presi- dent Great,’’ Johnson City Press (August 6, 2000), p. 10; and ‘‘Person- ality and the Presidency’’ segment on NBC News with John Siegenthaler Jr. (August 5, 2000).

26. Jack and Suzy Welch, ‘‘Release Your Inner Extrovert,’’ BusinessWeek (December 8, 2008), p. 92; and Nancy Ancowitz, ‘‘Success Isn’t Only for the Extroverts,’’ The New York Times (November 1, 2009), p. BU8.

27. Reported in ‘‘From the Front Lines: Leadership Strategies for Intro- verts,’’ Leader to Leader (Fall 2009), pp. 59–60.

28. Reported in Jeffrey Kluger, ‘‘Why Bosses Tend to Be Blowhards,’’ Time (March 2, 2009), p. 48.

29. Ginka Toegel and Jean-Louis Barsoux, ‘‘How to Become a Better Leader,’’ MIT Sloan Management Review (Spring 2012), pp. 51–60.

30. Susan Cain, ‘‘Hire Introverts,’’ The Atlantic (July–August 2012), p. 68; Adam M. Grant, Francesca Gino, and David A. Hofmann, ‘‘The Hidden Advantages of Quiet Bosses,’’ Harvard Business Review (December 2010), p. 28; Susan Cain, ‘‘Must Great Leaders Be Gregari- ous?’’ The New York Times (September 16, 2012), p. SR–8; and Walsh, ‘‘The Upside of Being an Introvert.’’

31. ‘‘Theories of Emeritus Professor Julian Rotter Still Relevant to Field of Clinical Psychology’’ U.S. Fed News Service, Including US State News (August 12, 2012) (retrieved from http://search.proquest.com.proxy. library.vanderbilt.edu/docview/1032581459?accountid=14816); P. E. Spector, ‘‘Behavior in Organizations as a Function of Employee’s

Locus of Control,’’ Psychological Bulletin (May 1982), pp. 482–497; and H. M. Lefcourt, ‘‘Durability and Impact of the Locus of Control Construct,’’ Psychological Bulletin 112 (1992), pp. 411–414.

32. Ellen McGirt, ‘‘Boy Wonder,’’ Fast Company (April 2009), pp. 58–65, 96–97.

33. Spector, ‘‘Behavior in Organizations as a Function of Employee’s Locus of Control’’; Lefcourt, ‘‘Durability and Impact of the Locus of Control Construct’’; and J. B. Miner, Industrial-Organizational Psy- chology (New York: McGraw-Hill, 1992), p. 151.

34. Elizabeth A. McDaniel and Holly DiBella-McCarthy, ‘‘Reflective Lead- ers Become Causal Agents of Change,’’ Journal of Management Devel- opment 31, no. 7 (2012), pp. 663–671.

35. T. W. Adorno, E. Frenkel-Brunswick, D. J. Levinson, and R. N. San- ford, The Authoritarian Personality (New York: Harper & Row, 1950).

36. E. C. Ravlin and B. M. Meglino, ‘‘Effects of Values on Perception and Decision Making: A Study of Alternative Work Value Measures,’’ Journal of Applied Psychology 72 (1987), pp. 666–673.

37. Robert C. Benfari, Understanding and Changing Your Management Style (San Francisco: Jossey-Bass, 1999), p. 172.

38. Milton Rokeach, The Nature of Human Values (New York: The Free Press, 1973); and M. Rokeach, Understanding Human Values (New York: The Free Press, 1979).

39. Edward F. Murphy Jr., Jane Whitney Gibson, and Regina A. Green- wood, ‘‘Analyzing Generational Values among Managers and Non- Managers for Sustainable Organizational Effectiveness,’’ SAM Advanced Management Journal (Winter 2010), pp. 33–55.

40. Murphy et al., ‘‘Analyzing Generational Values among Managers and Non-Managers.’’

41. Lynne Jeter, ‘‘Early Lessons Helped Form Leadership Skills,’’ The Mis- sissippi Business Journal (March 13, 2006), p. 23; and ‘‘2011 Harvey E. Beech Outstanding Alumni Award; BAR Awards Profile—William W. Farmer,’’ University of North Carolina General Alumni Associa- tion, https://alumni.unc.edu/awards-profile-william-w-farmer/ (accessed October 14, 2015).

42. Based on G. W. England and R. Lee, ‘‘The Relationship between Man- agerial Values and Managerial Success in the United States, Japan, India, and Australia,’’ Journal of Applied Psychology 59 (1974), pp. 411–419.

43. Example from Michael Lee Stallard, ‘‘Great Leaders Connect: Using Their Vision, Values, and Voice,’’ Leadership Excellence (August 2012), p. 19.

44. Based on Richard L. Hughes, Robert C. Ginnett, and Gordon J. Cur- phy, Leadership: Enhancing the Lessons of Experience (Boston: Irwin McGraw-Hill, 1999), pp. 182–184.

45. Douglas McGregor, The Human Side of Enterprise (New York: McGraw-Hill, 1960).

46. J. Hall and S. M. Donnell, ‘‘Managerial Achievement: The Personal Side of Behavioral Theory,’’ Human Relations 32 (1979), pp. 77–101.

47. Andrea Coombes, ‘‘Managers Rate Themselves High but Workers Prove Tough Critics,’’ The Wall Street Journal (September 26, 2006), p. B8; and Jaclyne Badal, ‘‘Surveying the Field: Cracking the Glass Ceiling’’ (sidebar in Theory & Practice column), The Wall Street Jour- nal (June 19, 2006), p. B3.

48. This is a very brief introduction to the subject of attributions and their role in organizations. For a recent overview of the research on attribu- tional theory and a special issue devoted to the topic, see Marie Das- borough, Paul Harvey, and Mark J. Martinko, ‘‘An Introduction to Attributional Influences in Organizations,’’ Group & Organization Management 36, no. 4 (2011), pp. 419–426.

49. Kevin Kelly, ‘‘Branching Out,’’ Fortune Small Business (December 2005–January 2006), p. 39; and Kevin Kelly, ‘‘Take a Real Vacation,’’ Fortune Small Business (July–August 2006), p. 28.

50. Dorothy Leonard and Susaan Straus, ‘‘Putting Your Company’s Whole Brain to Work,’’ Harvard Business Review (July–August 1997), pp. 111–121.


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51. Henry Mintzberg, ‘‘Planning on the Left Side and Managing on the Right,’’ Harvard Business Review (July–August 1976), pp. 49–57; Richard Restak, ‘‘The Hemispheres of the Brain Have Minds of Their Own,’’ The New York Times (January 25, 1976); and Robert Ornstein, The Psychology of Consciousness (San Francisco: W. H. Freeman, 1975).

52. Kate Taylor, ‘‘Creative Types, Learning to Be Business-Minded,’’ The New York Times (June 19, 2010), p. C1.

53. This discussion is based on Ned Herrmann, The Whole Brain Business Book (New York: McGraw-Hill, 1996).

54. This analogy is based on Peter Gloor, ‘‘To Become a Better Manager Stop Being a Manager,’’ Ivey Business Journal (March–April 2011), http://www.iveybusinessjournal.com/topics/the-organization/to-become- a-better-manager-stop-being-a-manager (accessed March 20, 2013).

55. Ibid. 56. Ibid. 57. Ibid. 58. Herrmann, The Whole Brain Business Book, p. 103. 59. Based on Nancy Hass, ‘‘Earning Her Stripes,’’ The Wall Street Journal

Magazine (September 9, 2010), http://magazine.wsj.com/features/the- big-interview/earning-her-strips/ (accessed March 20, 2013); and Jenni- fer Reingold, ‘‘What the Heck Is Angela Ahrendts Doing at Apple?’’ Fortune (September 15, 2015), pp. 100–108.

60. Herrmann, The Whole Brain Business Book, p. 179. 61. Carl Jung, Psychological Types (London: Routledge and Kegan Paul,


62. Otto Kroeger and Janet M. Thuesen, Type Talk (New York: Delacorte Press, 1988); Kroeger and Thuesen, Type Talk at Work (New York: Dell, 1992); ‘‘Conference Proceedings,’’ The Myers–Briggs Type Indi- cator and Leadership: An International Research Conference (January 12–14, 1994); and S. K. Hirsch, MBTI!MBTI!MBTI Team Member’s Guide (Palo Alto, CA: Consulting Psychologists Press, 1992).

63. Reported in Lillian Cunningham, ‘‘Does It Pay to Know Your Type?’’ The Washington Post (December 14, 2012), http://articles.washington- post.com/2012-12-14/national/35847528_1_personality-types-myers- briggs-type-indicator-financial-success (accessed March 20, 2013).

64. Example in Jennifer Overbo, ‘‘Using Myers–Briggs Personality Type to Create a Culture Adapted to the New Century,’’ T þ D (February 2010), pp. 70–72.

65. Based on Mary H. McCaulley, ‘‘Research on the MBTI! and Leadership: Taking the Critical First Step,’’ Keynote Address, The Myers–Briggs Type Indicator and Leadership: An International Research Conference (January 12–14, 1994).

66. These techniques are based on Jamie Walters and Sarah Fenson, ‘‘Building Rapport with Different Personalities,’’ Inc.com (March 2000), http://www.inc.com/articles/2000/03/17713.html; Tim Millett, ‘‘Learning to Work with Different Personality Types,’’ http:// ezinearticles.com/?Learning-To-Work-With-Different-Personality- Types&id=725606; and Carol Ritberter, ‘‘Understanding Person- ality: The Secret to Managing People,’’ http://www.dreammanifesto. com/understanding-personality-the-secret-of-managing-people.html (accessed April 17, 2008).


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Chapter 5: Leadership Mind and Emotion

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YOUR LEADERSHIP CHALLENGE After reading this chapter, you should be able to:

• Recognize how mental models guide your behavior and relationships. • Engage in independent thinking by staying mentally alert, thinking critically, and being mindful rather than mindless.

• Break out of categorized thinking patterns and open your mind to new ideas and multiple perspectives.

• Begin to apply systems thinking and personal mastery to your activities at school or work. • Exercise emotional intelligence, including being self-aware, managing your emotions, motivating yourself, displaying empathy, and managing relationships.

• Apply the difference between motivating others based on fear and motivating others based on love.

CHAPTER OUTLINE 136 Leading with Head and Heart

136 Mental Models

140 Developing a Leader’s Mind

146 Emotional Intelligence

153 Leading with Love versus Leading with Fear

In the Lead

139 Ron Rivera, Carolina Panthers

152 Chade-Meng Tan, Google

155 Akshay Kothari and Ankit Gupta, Pulse News

Leader’s Self-Insight

143 Mindfulness

153 Emotional Intelligence

154 Love or Fear?

Leader’s Bookshelf

141 What Got You Here Won’t Get You There

Leadership at Work

160 Mentors

Leadership Development: Cases for Analysis

160 The New Boss

162 The USS Florida

As Lieutenant Colonel Howard Olson surveys the crowd before him, he knowsthat most of the people in the room outrank him. Still, Olson opens his talkwith the following statement: ‘‘Each and every one of you has something that makes you a jerk. . . . Some of you have more than one. I know. I’ve talked to you.’’

The lecture is part of what the U.S. Army informally calls ‘‘charm school,’’ a week-long course held annually for the select few who are promoted to brigadier general. Everyone knows about the Army’s skill at getting new recruits in boot camp to think and act in a new way, but few people have seen firsthand the training it uses to get high-ranking officers to make a mental and emotional leap. At charm school, new generals are advised to get in touch with their inner jerk and work on overcom- ing that aspect of their personality. Charm school is designed as a reminder that the great officers are those who genuinely care about their soldiers. Other recurring themes during the training include avoiding even the appearance of ethical viola- tions, leading with moral courage, and overcoming arrogance, the ‘‘first deadly sin of the general officer.’’1

There’s no equivalent training in corporate America, but the lessons taught at the Army’s charm school are also being taken to heart at many of today’s business organizations, where leaders are learning to build work relationships based on trust, humility, caring, and respect.

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This chapter and the next examine current thinking about the importance of leaders becoming fully integrated people by exploring the full capacities of their minds, emotions, and spirits. Noted leadership author and scholar Warren Bennis has said that ‘‘there’s no difference between being a really effective leader and becoming a fully integrated person.’’2 This chapter first examines the importance of leading with both head and heart (mind and emotion). Then we expand on some of the ideas introduced in the previous chapter to consider how the ability to shift our thinking and feeling can help leaders alter their behavior, influence others, and be more effective. We discuss the concept of mental models and look at how qualities such as independent thinking, an open mind, and systems thinking are important for leaders. Then we take a closer look at human emotions, the concept of emo- tional intelligence, and the emotions of love versus fear in leader–follower relation- ships. The next chapter will turn to spirit as reflected in moral leadership and courage.

5-1 LEADING WITH HEAD AND HEART As most of us know from personal experience, working effectively with other people requires that we draw on subtle aspects of ourselves—our thoughts, beliefs, and feelings—and appeal to those aspects in others. Anyone who has participated on an athletic team knows how powerfully thoughts and emotions can affect performance. Interestingly, though, many people in leadership roles tend to forget the emotional aspect of leading.

To succeed in today’s environment requires whole leaders who use both head and heart.3 Leaders have to use their heads to tend to organizational issues such as goals and strategies, production schedules, structure, finances, operational issues, and so forth. They also have to use their hearts to tend to human issues, such as understanding, supporting, and developing others. Using heart in leadership is par- ticularly important in times of uncertainty and rapid change. Current issues that require leaders to use both head and heart include how to give people a sense of meaning and purpose when major changes occur almost daily; how to make employees feel valued and respected in an age of massive layoffs and job uncer- tainty; and how to keep morale and motivation high in the face of corporate bank- ruptcies and dissolutions, ethical scandals, and economic crises.

A broad literature has emphasized that being a whole person means operating from mind, heart, spirit, and body.4 In Chapter 4, we introduced some ideas about how individuals think, make decisions, and solve problems based on values, atti- tudes, and patterns of thinking. This chapter builds on some of those ideas to pro- vide a broader view of leadership mind and emotions.

5-2 MENTAL MODELS A mental model can be thought of as an internal picture that affects a leader’s thoughts, actions, and relationships with others. Mental models are theories people hold about specific systems in the world and their expected behavior.5 A system means any set of elements that interact to form a whole and produce a specified outcome. To understand what is meant by a mental model, consider an electrical circuit as a system. Exhibit 5.1 shows the elements of an electrical circuit system.

NEW LEADER ACTION MEMO As a leader, you can lead with both head and heart. You can expand the capacity of your mind, emotions, and spirit by consciously engaging in activities that use aspects of the whole self.

Mental models theories people hold about specific systems in the world and their expected behavior


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A mental model would give you a picture in your mind of how these four elements fit together to produce the outcome of light. Just as an electric circuit is a system, an organization is a system, as is a football team, a sorority pledge drive, or the regis- tration system at a university. An accurate mental model helps a leader understand how to arrange the key elements in these systems to get the desired outcome.

Leaders have many mental models that tend to govern how they interpret expe- riences and how they act in response to people and situations. Consider the two dif- ferent mental models in the following quote from Robert Townsend, former CEO of Avis Rent-a-Car. To have a successful organization, he advised leaders, ‘‘you’ll have to give up being an administrator who loves to run others and become a manager who carries water for his people so they can get on with the job.’’6 The first part of the phrase reflects a mental model that it is the leader’s job to control people, whereas the second part reflects a mental model that the leader is a servant who helps people do their best. Exhibit 5.2 shows the mental model that Google’s top leaders use to keep the company on the cutting edge as its core business of search matures. At Google, leaders believe that risk-taking, a little craziness, and making mistakes are important for the sake of innovation. Too much structure and control is considered death to the company.7

EXHIBIT 5.1 Elements of a System

Do you have a mental model that would

enable you to connect these four elements

to produce light?

EXHIBIT 5.2 Google Leaders’ Mental Model

Stay uncomfortable Let failure coexist with triumph Use a little less ‘‘management’’ than you need Defy convention Move fast and figure things out as you go

Source: Based on Adam Lashinsky, ‘‘Chaos by Design,’’ Fortune (October 2, 2006), pp. 86–98.

NEW LEADER ACTION MEMO As a leader, you can become aware of your mental models and how they affect your thinking and behavior. You can learn to regard your assumptions as temporary ideas and strive to expand your mindset.


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Leaders at Google, as well as other organizations, strive to create mental models that are aligned with organizational needs, goals, and values. However, personal values, attitudes, beliefs, biases, and prejudices can all affect one’s mental model. A leader’s assumptions play an important role in shaping his or her mental models, but leaders can examine their assumptions and shift or expand mental models when needed to keep their organizations healthy.8

5-2a Assumptions In Chapter 4, we discussed two very different sets of attitudes and assumptions that leaders may have about subordinates, called Theory X and Theory Y, and how these assumptions affect leader behavior. A leader’s assumptions naturally are part of his or her mental model. Someone who assumes that people can’t be trusted will act very differently in a situation than someone who has the assumption that people are basically trustworthy. Leaders have assumptions about events, situations, and circumstances as well as about people. Assumptions can be dangerous because peo- ple tend to accept them as ‘‘truth.’’

J.C. Penney provides a good example. Ron Johnson, who helped create the popular and successful Apple retail stores, was hired to save J.C. Penney from a slow death, but he was fired just 17 months into the job. Johnson’s assumptions about the transformation, which included making stores and merchandise more upscale, were based on his experience with what worked at Apple. He created in- store ‘‘boutiques’’ with expensive shelving and signage and pushed stores to stock youthful, slim-fitting clothing and European designs, reflecting a shift away from the retailer’s core customers. The problem is that J.C. Penney isn’t Apple. Customers flock to Apple stores for cutting-edge, status-symbol products, but J.C. Penney’s customers want basic clothing and home goods at low prices. Johnson’s remake assumed the only department store customer that mattered was the one ‘‘who shops at Target or Macy’s or Nordstrom’s,’’ said Margaret Bogenrief of ACM Partners.9 In 2015, Marvin Ellison took over as the third CEO at Penney in four years. One of Ellison’s biggest jobs will be working with other top Penney’s leaders to bring more realistic assumptions to the challenge of rein- venting an iconic brand for a new era.

As this example illustrates, it is important for leaders to regard their assump- tions as temporary ideas rather than fixed truths. The more aware a leader is of his or her assumptions, the more the leader understands how assumptions guide behav- ior and decisions. In addition, the leader can question whether long-held assump- tions fit the reality of the current situation. Questioning assumptions can help leaders understand and shift their mental models.

5-2b Changing or Expanding Mental Models The mindset of top leaders has always played a key role in organizational success. A Harvard University study ranking the top 100 business leaders of the twentieth century found that they all shared what the researchers refer to as ‘‘contextual intel- ligence,’’ the ability to sense the social, political, technological, and economic con- text of the times and adopt a mental model that helped their organizations best respond.10 In a world of rapid and discontinuous change, the greatest factor deter- mining the success of leaders and organizations may be the ability to change or expand one’s mental model.11 Consider how Ron Rivera, head coach of the Carolina Panthers, expanded his mental model of how to lead a football team.


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Having closer personal relationships with his players helps Rivera monitor mo- rale and smooth problems that might interfere with high performance. Leaders have to keep open minds and be willing to question assumptions and shift their mental models when new approaches are needed.

Organizations are vulnerable when leaders stick with obsolete mental models in the face of new realities. For example, market share for the BlackBerry smartphone has plummeted in recent years because leaders at Research in Motion stayed with what worked in the past and had a hard time shifting their mental model to keep the company competitive in an environment that changed quickly with the introduc- tion of Apple and Samsung smartphones. On the other hand, leaders at Apple, par- ticularly the late Steve Jobs, have been masters at shifting or expanding their mental models over the years. One researcher who interviewed Steve Jobs said he could ‘‘sometimes throw you off balance by suddenly adopting your position as his own, without ever acknowledging that he ever thought differently.’’ One reason Apple is so successful today, this researcher asserts, is that Steve Jobs was a genius at refram- ing issues and shifting mental models—his own, his employees’, his partners’, and his customers’. Before the iPhone, no one had ever thought of something like the App Store or the possibility of demanding a share of the revenue from wireless car- riers, for instance.13

Unfortunately, many leaders become prisoners of their own assumptions and mindsets because these led to success in the past. They find themselves simply going along with the traditional way of doing things—whether it be running a business such as Research in Motion, managing a foundation, handling insurance claims, selling cosmetics, or coaching a basketball team—without even realizing they are making decisions and acting within the limited frame of their own mental model.14

One specific challenge for the mental models of leaders is to navigate through ambiguities and complexities on a global scale that far exceed anything they

IN THE LEAD Ron Rivera, Carolina Panthers Most NFL coaches keep the time they spend in the locker room to a minimum. Ron Rivera, head coach of the Carolina Panthers, used to do that too, but after asking for advice from fighter pilots about how to promote honesty and trust, Rivera shifted his mental model from one of maintaining distance from players to one of getting to know and understand players at a deep personal level. Now he’s in the locker room interacting with players all the time. ‘‘Unless you are exposed to them [in the locker room], when they let their hair down, you won’t get to know them,’’ he says.

After being advised to ‘‘remove rank’’ when talking to subordinates, Rivera took a bunch of players to dinner and asked them to give honest feedback. He was amazed at some of the things he heard. ‘‘I’m blown away,’’ he said. ‘‘You guys should have told me!’’ That’s when he embarked on a crusade to create a culture of total honesty, where players felt they could ask him or tell him anything. Rivera set up a second office closer to the locker room and he regularly visits the training room and cafeteria, as well as the locker room, to interact informally with players. ‘‘I have answered questions in the locker room about whether a player should get puppies,’’ Rivera said. ‘‘I told them having a puppy is just like having a baby, there’s a lot of responsibility.’’12


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encounter within their traditional management responsibilities.15 A global mindset can be defined as the ability of managers to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics.16 A manager with a global mindset can perceive and respond to many different perspectives at the same time rather than being stuck in a domestic mental model that sees everything from one’s own limited personal or cultural perspective. One of the best ways managers develop a global mindset is by engaging with people from different cultures. Ken Powell, CEO of General Mills, says being given international positions early in his career convinced him that getting people out of their comfort zone was the best way to develop leaders.17

Despite the mental discomfort and sense of disorientation it might cause, leaders must allow their mental models to be challenged and even demolished.18 Becoming aware of assumptions and understanding how they influence emotions and actions is the first step toward being able to shift mental models and see the world in a new way. Effective leaders learn to continually question their own beliefs, assumptions, and perceptions in order to see things in unconventional ways and meet the chal- lenge of the future head on.19 Leaders who are unable to see and change their own ineffective mental models often need outside help, as described in this chapter’s Leader’s Bookshelf.

5-3 DEVELOPING A LEADER’S MIND How do leaders expand their mental models? The leader’s mind can be developed beyond the nonleader’s in four critical areas: independent thinking, open- mindedness, systems thinking, and personal mastery. Taken together, these four dis- ciplines provide a foundation that can help leaders examine their mental models and overcome blind spots that may limit their leadership effectiveness and the success of their organizations.

5-3a Independent Thinking Independent thinking means questioning assumptions and interpreting data and events according to one’s own beliefs, ideas, and thinking, not according to prees- tablished rules, routines, or categories defined by others. People who think inde- pendently are willing to stand apart, to have opinions, to say what they think, and to determine a course of action based on what they personally believe rather than on what other people think or say. Consider the female manager who left Ralston Purina for a marketing job at Eveready in the mid-1980s. Eveready had become a household name because of its sales of inexpensive red plastic and metal flashlights, but the flashlight business was in decline. This manager questioned why flashlights couldn’t be made in colors like pink, baby blue, and lime green that would appeal to women—and why weren’t they sold in grocery stores? It wasn’t a popular deci- sion, but once top executives agreed to go along with the new ideas, the flashlight business rebounded.20 Good leadership isn’t about following the rules of others but standing up for what you believe is best for the organization.

To think independently means staying mentally alert and thinking critically. Independent thinking is one part of what is called leader mindful- ness.21 Mindfulness can be defined as a state of focused attention on the present moment and a readiness to create new mental categories in the face of evolving

Global mindset the ability of managers to appreciate and influence individuals, groups, organi- zations, and systems that represent different social, cultural, political, institu- tional, intellectual, or psy- chological characteristics

Independent thinking questioning assumptions and interpreting data and events according to one’s own beliefs, ideas, and thinking, rather than prees- tablished rules or categories defined by others

Mindfulness a state of focused attention on the present moment and a readiness to create new mental categories in the face of evolving information and shifting circumstances


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information and shifting circumstances.22 Mindfulness involves independent thinking, and it requires leader curiosity and learning. Mindful leaders are open- minded and stimulate the thinking of others through their curiosity and ques- tions. Mindfulness is the opposite of mindlessness, which means blindly accepting rules and labels created by others. Mindless people let others do the thinking for them, but mindful leaders are always open to new ideas and approaches.

Being mindful and thinking independently is important for leaders because they can easily become overwhelmed with the amount and variety of tasks that confront them. The deluge of e-mail, text messages, Web conferences, blogs, and so forth has intensified the problem. It is easy to begin doing things on autopilot.23 But in the world of organizations, circumstances are constantly changing. What worked in one situation may not work the next time. In these conditions, mental laziness, operating on autopilot, and accepting others’ answers can hurt the organization and all its members. Consider what happened to entrepreneur Kord Campbell, who failed for 12 days to notice an e-mail from a large company interested in buying his small Internet startup. Why? With the hectic pace of his life, Campbell had been operating on autopilot. ‘‘It seems he can no longer be fully in the moment,’’ says his wife.24

LEADER’S BOOKSHELF What Got You Here Won’t Get You There

by Marshall Goldsmith and Mark Reiter

Success, says executive coach Marshall Goldsmith, makes many people believe they must be doing everything right. Therefore, as leaders move up the hier- archy they often continue to rely on mental models about interpersonal relationships that seemed to work when they were in lower-level posi- tions. Consequently, they may sabotage their effectiveness and career advance- ment. ‘‘All other things being equal, your people skills (or lack of them) become more pronounced the higher up you go,’’ Goldsmith writes in What Got You Here Won’t Get You There. Gold- smith and his collaborator, Mark Reiter, identify 20 mental habits that damage leader relationships at higher levels.

NOBODY’S PERFECT Every leader has some habits or nega- tive behaviors that can limit his or her effectiveness. Following are a few of the behavioral flaws Goldsmith and Reiter describe. Do you recognize any of these in your own behaviors?

• The Need to Win at All Costs and in All Situations. We all know them—those people who feel like they have to win every argument

and always be right. They want to win the big points, the small points, and everything in between. If they go along with another’s idea that doesn’t work out, they adopt an ‘‘I told you so’’ attitude. In the work- place, a top leader’s need to be right and to point out that he or she is right damages relationships and destroys teamwork.

• Clinging to the Past. There’s noth- ing wrong with looking at and understanding the past as a way to come to terms with it or learn from it. Too often, though, people cling to the past as a way to blame others for things that have gone wrong in their lives, using the past as a weapon to control others or punish them for not doing exactly what the leader wants.

• Never Being Able to Say You’re Sorry. It’s not true that ‘‘love means never having to say you’re sorry.’’ Apologizing is love in action. Refus- ing to apologize probably causes more ill will—whether in a romance, a family, or a work relationship— than any other interpersonal flaw. ‘‘People who can’t apologize at

work may as well be wearing a T-shirt that says: ‘I don’t care about you,’’’ Goldsmith writes.

CHANGE IS POSSIBLE As an executive coach, Goldsmith has spent his career helping leaders find and fix the mental models that hold them back. His prescription for success can benefit any leader who genuinely wants to improve his or her interperso- nal relationships. The first step is to gather feedback that helps you identify the specific behaviors you need to change. Next, focus your mind on fixing the problem by apologizing for your behavioral flaws, advertising your efforts to change, listening to ideas from others, showing gratitude for others’ contributions to your change process, and following up on your pro- gress. When you are mindful of your dependence on others, Goldsmith points out, other people typically not only agree to help you be a better per- son, they also try to become better people themselves.

Source: What Got You Here Won’t Get You There by Marshall Goldsmith and Mark Reiter, is pub- lished by Hyperion Books.

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Good leaders apply critical thinking to explore a situation, problem, or ques- tion from multiple perspectives and integrate all the available information into a possible solution. When leaders think critically, they question all assumptions, vigorously seek divergent opinions, and try to give balanced consideration to all alternatives.25

Thinking independently and critically is hard work, and most of us can easily relax into temporary mindlessness, accepting black-and-white answers and relying on standard ways of doing things. Leaders at BP have been faulted for deciding to finish work sealing the well at the Deepwater Horizon oil rig in the Gulf of Mexico despite some key pressure test discrepancies. They followed procedures that had worked fine in the past, but this proved to be a fatal decision at Deepwater Horizon. The rig exploded within hours, killing 11 workers and leaving oil on beaches from Louisiana to Florida.26

Good leaders also encourage followers to be mindful rather than mindless.27

Bernard Bass, who has studied charismatic and transformational leadership, talks about the value of intellectual stimulation—arousing followers’ thoughts and imagi- nations as well as stimulating their ability to identify and solve problems crea- tively.28 People admire leaders who awaken their curiosity, challenge them to think and learn, and encourage openness to new, inspiring ideas and alternatives.

5-3b Open-Mindedness The power of the conditioning that limits our thinking and behavior is illustrated by what has been called the Pike Syndrome. In an experiment, a northern pike is placed in one half of a large glass-divided aquarium, with numerous minnows placed in the other half. The hungry pike makes repeated attempts to get the minnows but suc- ceeds only in battering itself against the glass, finally learning that trying to reach the minnows is futile. The glass divider is then removed, but the pike makes no attempt to attack the minnows because it has been conditioned to believe that reach- ing them is impossible. When people assume they have complete knowledge of a sit- uation because of past experiences, they exhibit the Pike Syndrome, a trained incapacity that comes from rigid commitment to what was true in the past and an inability to consider alternatives and different perspectives.29

Leaders have to forget many of their conditioned ideas to be open to new ones. This openness—putting aside preconceptions and suspending beliefs and opinions— can be referred to as ‘‘beginner’s mind.’’ When someone becomes an expert in a par- ticular subject, their mind often becomes closed to the perspectives of other people. Psychologist Elizabeth Newton conducted an experiment in which she gave one set of people, called ‘‘tappers,’’ a list of well-known songs and asked them to rap their knuckles on a tabletop to the rhythm of the tunes. Another set of people, called ‘‘lis- teners,’’ were asked to name the songs. The tappers said they thought listeners would get the songs right about half the time. In reality, the listeners guessed only 3 out of 120 songs that were tapped. The tappers might be considered to have ‘‘expert minds’’ in this situation. The song was so clear in their minds that they couldn’t understand how the listeners could not hear it.30

The expert mind becomes a danger in organizations because it rejects new ideas based on past experience and knowledge. This danger of the expert mind’s conclu- sions becomes frighteningly clear when it comes to the field of medicine. Doctors get their diagnoses wrong 15 to 20 percent of the time because they rely on standard ways of thinking and past experience. Many of these errors in judgment result in

NEW LEADER ACTION MEMO Evaluate your skill in three dimensions of mindfulness, including intellectual stimula- tion, by completing the exercise in Leader’s Self-Insight 5.1.


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serious harm or death. Dr. Jerome Groopman, author of How Doctors Think, now teaches students at Harvard Medical School to avoid common traps such as the one he fell into early in his career. As a young doctor, he listened to the complaints of an elderly patient and quickly concluded that she had indigestion. The medication he gave her provided little relief, but his mind was fixed on his initial diagnosis. As it turned out, the patient had a tear in her aorta and died in the emergency room sev- eral weeks later. It’s a lesson Groopman never forgot.31

In contrast to the expert mind, the beginner’s mind reflects the openness and innocence of a young child just learning about the world. Effective leaders strive to


Instructions: Think back to how you behaved toward others at work or in a group when you were in a formal or informal leadership position. Please respond to the following items based on how often you exhibited each behavior. Indicate whether each item is Mostly False or Mostly True for you.

Mostly False

Mostly True

1. Enjoyed hearing new ideas. ________ ________ 2. Challenged someone to think

about an old problem in a new way. ________ ________

3. Tried to integrate conversation points at a higher level. ________ ________

4. Felt appreciation for the viewpoints of others. ________ ________

5. Would ask someone about the assumptions underlying his or her suggestions. ________ ________

6. Came to my own conclusion despite what others thought. ________ ________

7. Was open about myself to others. ________ ________ 8. Encouraged others to express

opposing ideas and arguments. ________ ________ 9. Fought for my own ideas. ________ ________

10. Asked ‘‘dumb’’ questions. ________ ________ 11. Offered insightful comments on

the meaning of data or issues. ________ ________ 12. Asked questions to prompt

others to think more about an issue. ________ ________

13. Expressed a controversial opinion. ________ ________

14. Encouraged opposite points of view. ________ ________

15. Suggested ways of improving my and others’ ways of doing things. ________ ________

Scoring and Interpretation Give yourself one point for each Mostly True checked for items 1–8 and 10–15. Give yourself one point for checking Mostly False for item 9. A total score of 12 or higher would be considered a high level of overall mindfulness. There are three subscale scores that represent three dimensions of leader mindfulness. For the dimension of open or beginner’s mind, sum your responses to questions 1, 4, 7, 9, and 14. For the dimension of independent thinking, sum your scores for questions 3, 6, 11, 13, and 15. For the dimension of intellec- tual stimulation, sum your scores for questions 2, 5, 8, 10, and 12.

My scores are: Open or Beginner’s Mind: ________ Independent Thinking: __________ Intellectual Stimulation: _________

These scores represent three aspects of leader mindfulness—what is called open mind or beginner’s mind, independent thinking, and intellectual stimulation.

A score of 4 or higher on any of these dimensions is considered high because many people do not practice mind- fulness in their leadership or group work. A score of 3 is about average, and 2 or less would be below average. Compare your three subscale scores to understand the way you use mindfulness. Analyze the specific questions for which you did not get credit to see more deeply into your pattern of mindfulness strengths or weaknesses. An open mind, independent thinking, and intellectual stimulation are valuable qualities to develop for effective leadership.

Sources: The questions above are based on ideas from R. L. Daft and R. M. Lengel, Fusion Leadership, Chapter 4 (Oakland, CA: Berrett-Koehler, 2000); B. Bass and B. Avolio, Multifactor Leadership Questionnaire, 2nd ed. (Menlo Park, CA: Mind Garden, Inc.); and P. M. Podaskoff, S. B. MacKenzie, R. H. Moorman, and R. Fetter, ‘‘Transformational Leader Behaviors and Their Effects on Followers’ Trust in Leader, Satisfaction, and Organizational Citizenship Behaviors,’’ Leadership Quarterly 1, no. 2 (1990), pp. 107–142.

NEW LEADER ACTION MEMO As a leader, you can train yourself to think independently. You can be curious, keep an open mind, and look at a problem or situation from multiple perspectives before reaching your conclusions.

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keep open minds and cultivate an organizational environment that encourages curi- osity and learning. They understand the limitations of past experience and reach out for diverse perspectives. Rather than seeing any questioning of their ideas as a threat, these leaders encourage everyone to openly debate assumptions, confront paradoxes, question perceptions, and express feelings.32

5-3c Systems Thinking Systems thinking is the ability to see the synergy of the whole rather than just the separate elements of a system and to learn to reinforce or change whole system patterns.33 With systems thinking, a leader sees the big picture and connects the dots rather than just looking at the dots in isolation. Many people have been trained to solve problems by breaking a complex system, such as an organization, into discrete parts and working to make each part perform as well as possible. However, the success of each piece does not add up to the success of the whole. In fact, sometimes changing one part to make it better actually makes the whole system function less effectively. For example, a small city embarked on a road- building program to solve traffic congestion without whole-systems thinking. With new roads available, more people began moving to the suburbs. The solu- tion actually increased traffic congestion, delays, and pollution by enabling subur- ban sprawl.34

It is the relationship among the parts that form a whole system—whether it be a community, an automobile, a nonprofit agency, a human being, or a business organization—that matters. Systems thinking enables leaders to look for patterns of movement over time and focus on the qualities of rhythm, flow, direction, shape, and networks of relationships that accomplish the performance of the whole. Systems thinking is a mental discipline and framework for seeing patterns and inter- relationships.

It is important to see an organizational system as a whole because of its com- plexity. Complexity can overwhelm leaders, undermining confidence. When leaders can see the structures that underlie complex situations, they can facilitate improve- ment. But it requires a focus on the big picture. Leaders can develop what David McCamus, former chairman and CEO of Xerox Canada, calls ‘‘peripheral vision’’—the ability to view the organization through a wide-angle lens rather than a telephoto lens—so that they perceive how their decisions and actions affect the whole.35

An important element of systems thinking is to discern circles of causality. Peter Senge, author of The Fifth Discipline, argues that reality is made up of circles rather than straight lines. For example, Exhibit 5.3 shows circles of influence for increasing a retailer’s profits. The events in the circle on the left are caused by the decision to increase the advertising budget to aggressively promote products. The advertising promotions increase sales, which increases profits, which provides money to further increase the advertising budget.

But another circle of causality is being influenced as well. The decision by lead- ers in marketing has consequences for the operations department. As sales and profits increase, the operations department is forced to stock up with greater in- ventory. Additional inventory creates a need for more warehouse space. Building a new warehouse causes a delay in stocking up. After the warehouse is built, new people have to be hired. All of this increases company costs, which has a negative impact on profits. Thus, understanding the consequences of their decisions via

Systems thinking the ability to see the syn- ergy of the whole rather than just the separate ele- ments of a system and to learn to reinforce or change whole system patterns

NEW LEADER ACTION MEMO As a leader, you can cultivate an ability to analyze and understand the relationships among parts of a team, organization, or other system to avoid making changes that have unintended negative consequences.


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circles of causality enables leaders to plan and allocate resources to warehousing as well as to advertising to ensure stable increases in sales and profits. Without understanding the system, top leaders would fail to understand why increasing the advertising budget could actually create inventory delays and temporarily reduce profits.

5-3d Personal Mastery Another concept introduced by Senge is personal mastery. Personal mastery means mastering yourself in a way that facilitates your leadership and achieves desired results.36 Mastering yourself embodies three qualities—clarity of mind, clarity of objectives, and organizing to achieve objectives.

First, clarity of mind means a commitment to the truth of current reality. Lead- ers are relentless in uncovering the mental models that limit and deceive them and are willing to challenge assumptions and standard ways of doing things. These lead- ers will break through denial of reality in themselves and others. Their quest for truth leads to a deeper awareness of themselves and of the larger systems and events within which they operate. Clarity of mind enables them to deal with reality, which increases the opportunity to achieve desired results.

Second, leaders engaged in personal mastery know what is important to them so that their objectives are clear. Clarity of objectives helps leaders focus on the end result, the vision or dream that motivates them and their team or organization. They have a clear vision of a desired future, and their purpose is to achieve that future. One element of personal mastery, then, is the discipline of continually focusing and defining what one wants as the desired future.

Third, often there is a large gap between one’s vision and the current situation. The gap between the desired future and today’s reality, say between the dream of starting a business and the reality of having no capital, can be discouraging. But the

EXHIBIT 5.3 Systems Thinking and Circles of Causality

Build Warehouse


Hire PeopleAdded Cost


Stocking UpSalesDecision toAdvertise

Advertising Budget

Source: Based on concepts presented in Peter M. Senge, The Fifth Discipline: The Art and Practice of the Learning Organization (New York: Doubleday/Currency, 1990).

Personal mastery the discipline of mastering yourself; it embodies clarity of mind, clarity of objectives, and organizing to achieve objectives

Self-discipline is a form of freedom. Freedom from laziness and lethargy, freedom from the expectations and demands of others, freedom from weakness and fear—and doubt. Self- discipline allows a [person] to feel his individuality, his inner strength, his talent. He is master of, rather than a slave to, his thoughts and emotions. H. A. Dorfman, author of The Mental Game of Baseball


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gap is the source of creative energy. Organizing to achieve objectives is a way to bridge the disparity between current reality and the vision of a better future. The effective leader lets the vision pull reality toward it by reorganizing current activities to work toward the vision. The less effective way is to let reality pull the vision downward toward it. This means lowering the vision, such as walking away from a problem or settling for less than desired. Leaders with personal mastery learn to accept both the dream and the reality simultaneously and to close the gap by mov- ing toward the dream.

All five elements of mind are interrelated. Independent thinking and open- mindedness improve systems thinking and enable personal mastery, helping leaders shift and expand their mental models. Since they are all interdependent, leaders working to improve even one element of their mental approach can move forward in a significant way toward mastering their minds and becoming more effective.

5-4 EMOTIONAL INTELLIGENCE Psychologists and other researchers, as well as people in all walks of life, have long recognized the importance of cognitive intelligence, or IQ, in determining a person’s success and effectiveness. In general, research shows that leaders score higher than most people on tests of cognitive ability, such as IQ tests, and that cognitive ability is positively associated with effective leadership.37 Increasingly, leaders and researchers are recognizing the critical importance of emotional intelligence, or EQ, as well. Some have suggested that emotion, more than cognitive ability, drives our thinking and decision making, as well as our interpersonal relationships.38 In a study of leaders, two-thirds of the difference between average and top-performing leaders was found to be due to emotional competence, with only one-third due to technical skills.39

Emotional intelligence refers to a person’s abilities to perceive, identify, under- stand, and successfully manage emotions in self and others. Being emotionally intelligent means being able to effectively manage ourselves and our relation- ships.40 The U.S. Air Force started using EQ to select recruiters after learning that the best recruiters scored higher in EQ competencies. Leaders who score high in EQ are typically more effective and rated as more effective by peers and subordi- nates.41

5-4a What Are Emotions? There are hundreds of emotions and more subtleties of emotion than there are words to explain them. An important ability for leaders is to understand the range of emotions people have and how these emotions may manifest themselves. One model that is useful for leaders distinguishes the major positive and negative emotions, as illustrated in Exhibit 5.4.42 These primary emotions and some of their variations are as follows:

Anger: fury, outrage, frustration, exasperation, indignation, animosity, annoy- ance, irritability, hostility Sadness: grief, sorrow, gloom, melancholy, self-pity, loneliness, dejection, despair, discouragement Relief: release, reassurance, ease, contentmentRelief: release, reassurance, ease, contentmentRelief

Emotional intelligence a person’s abilities to per- ceive, identify, understand, and successfully manage emotions in self and others


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Fear: anxiety, apprehension, nervousness, concern, consternation, wariness, edginess, dread, fright, terror, panic Enjoyment: happiness, joy, delight, amusement, sensual pleasure, thrill, rapture, euphoria Love: affection, acceptance, respect, friendliness, trust, kindness, affinity, devotion, adoration, infatuation Envy: jealousy, resentment, suspicion, spite Disgust: contempt, disdain, scorn, abhorrence, aversion, distaste, revulsion Pride: satisfaction, dignity, self-esteem, fulfillment Guilt: shame, embarrassment, chagrin, remorse, humiliation, regret, mortifica- tion, contrition

Some leaders act as if people leave their emotions at home when they come to work, but we all know this isn’t true. Indeed, a key component of leadership is being emotionally connected to others and understanding how emotions affect working relationships and performance.

5-4b Why Are Emotions Important? In a study of entrepreneurs, researchers at Rensselaer Polytechnic Institute found that those who are more expressive of their own emotions and more in tune with the emotions of others make more money, as illustrated in Exhibit 5.5.43 One reason for this is that leaders who harness and direct the power of emotions to improve

EXHIBIT 5.4 Positive and Negative Emotions


Positive EmotionsNegative Emotions










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followers’ satisfaction, morale, and motivation get better results and enhance overall organizational effectiveness.

Emotions Are Contagious The emotional state of the leader influences the entire team, department, or organization.44 Most of us recognize that we can ‘‘catch’’ emotions from others. If we’re around someone who is smiling and enthusiastic, the positive emotions rub off on us. Conversely, someone in a bad mood can bring us down. At Mesa Airlines, CEO Jonathan Ornstein’s former administrative assistant says she was in charge of tracking the unpredictable and frequently short-tempered leader’s moods and warning other executives when they needed to stay away. ‘‘Sometimes he would come into the office in a bad mood . . . and it would set the tone for the whole office,’’ she says.45 This emotional contagion means that leaders who are able to maintain balance and keep themselves motivated can serve as posi- tive role models to help motivate and inspire those around them. The energy level of the entire organization increases when leaders are optimistic and hopeful rather than angry or depressed. Interesting new research by organization behavior scientists sug- gests that negative emotions might spread more easily than positive ones because people’s positive emotions are generally less influenced by other people. Psycholo- gists have also found that negative people and events have a disproportionately large effect on our emotions and moods.46

Therefore, leaders recognize the importance not only of keeping their own emo- tions in balance but also of helping others manage negative emotions so they don’t infect the entire team or organization. Leaders ‘‘tune in’’ to the emotional state of others, bring unhealthy or negative emotions to the surface, and encourage people to explore and use positive emotion in their everyday work.47 One study found that untrained teams made up of members with high emotional intelligence performed as well as trained teams made up of members who rated low on emotional intelligence.48

Emotions Influence Performance As suggested by the team study just mentioned, emotions have a strong influence on performance. Much evidence points to a clear connection between people’s moods and various aspects of their performance, such

EXHIBIT 5.5 Emotional Intelligence and Earning Power

0 50 100 150 200 250 Thousands of Dollars

Worst at Reading Emotions

Most Expressive Least Expressive

Best at Reading Emotions

Source: Rensselaer Polytechnic Institute, Lally School of Management and Technology, as reported in BusinessWeek Frontier (February 5, 2001), p. F4.


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as teamwork, creativity, decision making, and task performance.49 Negative moods drain energy and prevent people from doing their best.

An entire organization in a bad mood can’t succeed because people have no energy and feel anxious, disillusioned, or hopeless. In this kind of toxic work envi- ronment, most of an individual’s effort is used for emotional survival, as illustrated in Exhibit 5.6. In a positive environment, on the other hand, most of a person’s effort is available for work. When a leader is able to unlock positive emotions of joyfulness, appreciation, or love, people’s energy, creativity, and intellectual com- mitment expand. Employees are able to grasp more data, be more creative and resourceful in their solutions, and produce superior results. Positive emotions mean the decline of negative emotions such as sadness, anger, anxiety, and fear. Positive instead of negative emotions enable individuals to perform to the best of their abilities.50

A Gallup Management Journal survey emphasizes that leaders, especially frontline supervisors, have a lot to do with whether employees have positive or negative feelings about their work lives.51 Research into the factors affecting mood in the workplace is growing. One thing seems clear: almost everything that influences people’s moods in the workplace is under the control of leaders.52 That is why leaders need a high degree of emotional intelligence. They have to regulate their own emotions to remain positive and hopeful and then pull others up with them.

5-4c The Components of Emotional Intelligence In discussing Abraham Lincoln’s leadership, noted historian Doris Kearns Good- win attributes the sixteenth U.S. president’s almost magical touch not to charisma or political astuteness but to emotional intelligence.53 The competencies and abil- ities of emotional intelligence are grouped into four fundamental categories, as illustrated in Exhibit 5.7.54 It is important to remember that emotional intelligence can be learned and developed. Anyone can strengthen his or her abilities in these four categories.

EXHIBIT 5.6 Positive Leadership and Performance

Effort that goes toward emotional survival

Effort that goes toward work

Antagonistic Leader Climate

FearfulToxic Impersonal Collaborative Caring

Em pl

oy ee

E ffo


Source: Based on ‘‘Success & the Team Climate,’’ Team Leadership Toolkit, Lindsay-Sherwin Company Web site, http://www.lindsay- sherwin.co.uk/guide_team_leadership/html_team_development/1_success_and_team_climate.htm (accessed May 13, 2011).


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Self-Awareness Self-awareness includes the ability to recognize and understand your own emotions and how they affect your life and work. It is the basis of all the other competencies. People who are in touch with their emotions are better able to guide their own lives. Leaders with a high level of self-awareness learn to trust their ‘‘gut feelings’’ and realize that these feelings can provide useful information about diffi- cult decisions. Answers are not always clear as to whether to propose a major deal, let an employee go, reorganize a business, or revise job responsibilities. When the answers are not available from external sources, leaders have to rely on their own feelings. This component also includes the ability to accurately assess your own strengths and limitations, along with a healthy sense of self-confidence.

Self-Management The second key component, self-management, includes the ability to control disruptive, unproductive, or harmful emotions and desires. An interesting experiment from the 1960s sheds some light on the power of self-management. A group of four-year-olds and five-year-olds were offered a marshmallow, which the researcher placed in front of each child on the desk. Then, the children were told that if they could wait a few minutes while the researcher ran an errand, they would be given two marshmallows. Some children were unable to resist the temptation of a marshmallow ‘‘right now’’ and ate theirs immediately. Others employed all sorts of techniques, from singing or talking to themselves to hiding under the desk, to resist their impulses and earn the reward of two marshmallows instead of one. Researchers then followed the children over a period of 20 years and found some interesting results. As young men and women, the ones who had resisted the desire to eat the marshmallow revealed a much higher ability to handle stress and embrace difficult challenges. They also were more self-confident, trustworthy, de- pendable, and tenacious in pursuing goals.55 The children who developed techni- ques for self-management early in life carried these with them into adulthood.

EXHIBIT 5.7 The Components of Emotional Intelligence








Self-Awareness Emotional self-awareness Accurate self-assessment Self-confidence

Social Awareness Empathy Organizational awareness Service orientation

Relationship Management Development of others Inspirational leadership Influence Communication Change catalyst Conflict management Bond building Teamwork and collaboration

Self-Management Emotional self-control Trustworthiness Conscientiousness Adaptability Optimism Achievement-orientation Initiative

Source: Adapted from Richard E. Boyatzis and Daniel Goleman, The Emotional Competence Inventory—University Edition (Boston, MA: The Hay Group, 2001).


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It is never too late for people to learn how to manage their emotions and impulses. Some leaders look to expert customer service representatives (CSRs) as role models. Research shows that 70 percent of customers who have a problem with a product or service are in a rage by the time they talk with a CSR. The best CSRs, such as Beverly Smith, who takes outpatient calls at a San Francisco medical center, and Zane Bond, who is the ‘‘go-to guy for angry callers’’ at a software company, have learned to control their own emotions, remain calm, and listen with warmth and empathy. When the customer calms down, the problem can usually be fixed.56

Other characteristics in this category include trustworthiness, which means con- sistently displaying honesty and integrity; conscientiousness, which means managing and honoring your responsibilities; and adaptability, which refers to the ability to adjust to changing situations and overcome obstacles. Showing initiative to seize opportunities and achieve high internal standards is also a part of self-management. Leaders skilled at self-management remain hopeful and optimistic despite obstacles, setbacks, or even outright failures. Martin Seligman, a professor of psychology at the University of Pennsylvania, once advised the MetLife insurance company to hire a special group of job applicants who tested high on optimism but failed the normal sales aptitude test. Compared to salespeople who passed the regular aptitude test but scored high on pessimism, the ‘‘optimistic’’ group made 21 percent more sales in their first year and 57 percent more in the second.57

Social Awareness The component of social awareness relates to one’s ability to understand others. Socially aware leaders practice empathy, which means being able to put yourself in other people’s shoes, sense their emotions, and understand their perspective. These leaders understand that effective leadership sometimes means pushing people beyond their comfort zone, and they are sensitive to the fear or frus- tration this can engender in followers. They learn to engage in ‘‘professional inti- macy,’’ which means they can display compassion and concern for others without becoming so wrapped up in others’ emotions that it clouds their judgment.58

Socially aware leaders are also capable of understanding divergent points of view and interacting effectively with many different types of people and emotions. The related characteristic of organizational awareness refers to the ability to navigate the currents of organizational life, build networks, and effectively use political behavior to accomplish positive results. This component also includes a service orientation, which refers to the ability to recognize and serve the needs of employees, customers, or clients.

Relationship Management Relationship management refers to the ability to connect with others and build positive relationships. Leaders with high emotional intelli- gence are aware of the impact their behaviors have on others, and they treat people with compassion, sensitivity, and kindness.59 This aspect of EQ encompasses devel- oping others, inspiring others with a powerful vision, learning to listen and commu- nicate clearly and convincingly, and using emotional understanding to influence others in positive ways. Leaders use their understanding of emotions to inspire change and lead people toward something better, to build teamwork and collabora- tion, and to resolve conflicts that inevitably arise. These leaders cultivate and main- tain a web of relationships both within and outside the organization.

Poor relationship management is one reason Jack Griffin was forced out as CEO of Time Inc. after less than six months on the job. His brusque style and inabil- ity to connect with managers doomed his job with Time. Senior executives said they

NEW LEADER ACTION MEMO As a leader, you can recognize and manage your own emotions so that negative feelings don’t cloud your mind, distort your judgment, or cripple your ability to lead.

Empathy being able to put yourself in someone else’s shoes


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feared that top managers who had to work directly with him would begin leaving the company if Griffin stayed on much longer.60

Taken together, the four components shown in Exhibit 5.7 build a strong base of emotional intelligence that leaders can use to more effectively guide teams and organizations. When Google engineer Chade-Meng Tan started feeling like he was becoming a ‘‘cog in the great machine,’’ he decided to develop a program that would help him as well as other Googlers strengthen their emotional intelligence.

The first Search Inside Yourself course was offered in 2007, and five years later Tan and his team made the course available to organizations outside of Google. Today, Lesser serves as CEO of the nonprofit Search Inside Yourself Leadership Institute (SIYLI) and Tan’s book, also called Search Inside Yourself, has beenSearch Inside Yourself, has beenSearch Inside Yourself endorsed by the Dalai Lama and former U.S. President Jimmy Carter. One research project suggests that all effective leadership styles arise from different components of emotional intelligence.62

Emotional intelligence is crucial for building a work environment that many of today’s organizations want—one in which leaders are more interactive than ‘‘com- mand-and-control,’’ where leadership is spread across all levels, and where individual goals are met through teamwork, connection, and collaboration. In an environment where relationships with employees and customers are becoming more important than technology and material resources, interest in developing leaders’ emotional intelligence continues to grow. Moreover, there is growing evidence that emotional intelligence has a positive influence on many aspects of leader performance.63

A high level of self-awareness and an ability to manage one’s own emotions enable a leader to display self-confidence, earn respect and trust, and consider the needs of others. Emotionally competent leaders are more resilient, more adaptable to ever-changing circumstances, more willing to step outside their comfort zone, and more open to the opinions and ideas of others.64

IN THE LEAD Chade-Meng Tan, Google Chade-Meng Tan’s title at Google is Jolly Good Fellow, and the position requires him to ‘‘enlighten minds, open hearts, create world peace.’’ Tan got the appointment to Jolly Good Fellow because of an influential course he developed called ‘‘Search Inside Yourself.’’ Tan worked with a team that included outside consultants, a Stanford scientist, and Marc Lesser, a Zen teacher with an MBA and experience as an entrepreneur. Lesser explains that the course is based on the components of emotional intelligence, ‘‘or, as we call them, leadership skills.’’

Everyone at Google has to be a leader, and at Google leadership is equated with mindfulness and emotional intelligence. In 2015, approximately 1,500 Googlers went through the training and thousands were on a waiting list for future open seats. The goal of the program is to help people become more aware of their emotions, develop greater empathy and compassion toward others, and be more able to build enduring relationships. Greater emotional intelligence, Lesser says, also improves communication and collaboration by enabling people to think calmly and clearly, listen more closely to others, and be more mindful.61

NEW LEADER ACTION MEMO As a leader, you can empathize with others, treat people with compassion and sensitivity, build teamwork, and learn to listen, interpret emotions, and resolve interpersonal conflicts.

NEW LEADER ACTION MEMO Evaluate your level of emotional intelligence by completing the questionnaire in Leader’s Self-Insight 5.2.


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Perhaps most importantly, emotional intelligence enables leaders to recognize and respect followers as whole human beings with feelings, opinions, and ideas of their own. They can use their emotional intelligence to help followers grow and de- velop, see and enhance their self-image and feelings of self-worth, and help meet their needs and achieve personal and organizational goals.

5-5 LEADING WITH LOVE VERSUS LEADING WITH FEAR Traditionally, leadership has been based on inspiring fear in employees. An unspo- ken notion among many senior-level executives is that fear is a good thing and bene- fits the organization.65 Indeed, fear can be a powerful motivator, but many of today’s leaders are learning that an environment that reflects care and respect for

LEADER’S SELF-INSIGHT 5.2 Emotional Intelligence

Instructions: For each of the following items, rate how well you display the behavior described. Before responding, try to think of actual situations in which you have had the opportunity to use the behavior. Indicate whether each item is Mostly False or Mostly True for you.

Mostly False

Mostly True

1. Associate different internal physiological cues with different emotions. ________ ________

2. Relax when under pressure in situations. ________ ________

3. Know the impact that your behavior has on others. ________ ________

4. Initiate successful resolution of conflict with others. ________ ________

5. Know when you are becoming angry. ________ ________

6. Recognize when others are distressed. ________ ________

7. Build consensus with others. ________ ________ 8. Produce motivation when doing

uninteresting work. ________ ________ 9. Help others manage their

emotions. ________ ________ 10. Make others feel good. ________ ________ 11. Identify when you experience

mood shifts. ________ ________ 12. Stay calm when you are the

target of anger from others. ________ ________ 13. Know when you become

defensive. ________ ________ 14. Follow your words with actions. ________ ________

15. Engage in intimate conversations with others. ________ ________

16. Accurately reflect people’s feelings back to them. ________ ________

Scoring and Interpretation Sum your Mostly True responses to the 16 questions to obtain your overall emotional intelligence score. Your score for self-awareness is the total of questions 1, 5, 11, and 13. Your score for self-management is the total of questions 2, 8, 12, and 14. Your score for social awareness is the sum of questions 3, 6, 9, and 15. Your score for relationship man- agement is the sum of questions 4, 7, 10, and 16. This ques- tionnaire provides some indication of your emotional intelligence. If you received a total score of 14 or more, you are certainly considered a person with high emotional intelli- gence. A score from 10 to 13 means you have a good plat- form of emotional intelligence from which to develop your leadership capability. A score of 7 to 9 would be moderate emotional intelligence. A score below 7 indicates that you realize that you are probably below average in emotional intelligence.

For each of the four components of emotional intelli- gence—self-awareness, self-management, social awareness, and relationship management—a score of 4 is considered high, whereas a score of 2 or fewer would be considered low. Review the discussion in this chapter about the four components of emotional intelligence and think about what you might do to develop those areas where you scored low. Compare your scores to those of other students. What can you do to improve your scores?

Source: Adapted from Hendrie Weisinger, Emotional Intelligence at Work (San Francisco: Jossey-Bass, 1998), pp. 214–215.

NEW LEADER ACTION MEMO As a leader, you can develop emotional intelligence and act as a positive role model by being optimistic and enthusiastic.

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people is much more effective than one in which people are fearful. When organiza- tional success depended primarily on people mindlessly following orders, leading with fear often met the organization’s needs. Today, though, success in most organi- zations depends on the knowledge, mindpower, commitment, creativity, and enthu- siasm of everyone in the organization. A fear-based organization loses its best people, and the knowledge they take with them, to other firms. In addition, even if people stay with the organization, they typically don’t perform up to their real capa- bilities. As discussed earlier, there is evidence that people who experience positive emotions at work perform better.66

Showing respect and trust also allows people to feel emotionally connected with their work so that their lives are richer and more balanced. Leaders can rely on neg- ative emotions such as fear to fuel productive work, but by doing so they may slowly destroy people’s spirits, which ultimately is bad for employees and the orga- nization.67 Consider, for example, that two-thirds of employees surveyed said their performance declined after being the victim of rudeness or hostility at work. Four out of five said they lost work time fretting about the unpleasant incident, three- quarters said their commitment to their employer declined, and 12 percent even quit their jobs.68


Instructions: The following items describe reasons why you work. Answer the questions twice, the first time for doing work (or homework) that is not your favorite and the second time for doing a hobby or sports activity that you enjoy. Con- sider each item thoughtfully and respond according to your inner motivation and experience. Indicate whether each item is Mostly False or Mostly True for you.

Mostly False

Mostly True

1. I feel it is important to perform well so I don’t look bad. ________ ________

2. I have to force myself to complete the task. ________ ________

3. I don’t want to have a poor outcome or get a poor grade. ________ ________

4. I don’t want to embarrass myself or do less well than others. ________ ________

5. The experience leaves me feeling relieved that it is over. ________ ________

6. My attention is absorbed entirely in what I am doing. ________ ________

7. I really enjoy the experience. ________ ________ 8. Time seems to pass more quickly

than normal. ________ ________ 9. I am completely focused on the

task at hand. ________ ________

10. The experience leaves me feeling great. ________ ________

Scoring and Interpretation These items reflect motivation shaped by either love or fear. Your ‘‘fear of failure’’ score is the number of Mostly True answers for questions 1–5. Your ‘‘love of task’’ score is the number of Mostly True answers for questions 6–10. A score of 4 or 5 would be considered high for either love or fear, and a score of 0–2 would be considered low. You would probably score more points for ‘‘love of task’’ for your hobby or sports activity than for homework.

Some people are motivated by high internal standards and fear of not meeting those standards. This may be called fear of failure, which often spurs people to great accomplish- ment. Love of task provides a great intrinsic pleasure but won’t always lead to high achievement. Love of task is related to the idea of ‘‘flow’’ wherein people become fully engaged and derive great satisfaction from their activity. Would love or fear influence your choice to become a leader or how you try to motivate others? Discuss with other stu- dents the relative importance of love or fear motivation in your lives.

Love in the workplace means genuinely caring for others and sharing one’s knowledge, understanding, and compassion to enable others to grow and succeed.

NEW LEADER ACTION MEMO To learn about your own moti- vations concerning love versus fear, complete the exercise in Leader’s Self-Insight 5.3.

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5-5a Fear in Organizations The workplace can hold many kinds of fear, including fear of failure, fear of change, fear of personal loss, fear of being judged, and fear of the boss. All of these fears can pre- vent people from doing their best, from taking risks, and from challenging and changing the status quo. Consider how Akshay Kothari and Ankit Gupta had to overcome their fears to create one of the 50 original apps in Apple’s App Store Hall of Fame.

Overcoming their fears not only enabled Akshay Kothari and Ankit Gupta to com- plete a successful class project, it gave them the confidence to found a company that revolutionized the mobile news reading experience. Pulse is expanding into social media with the addition of Pulse Highlights, which allows users to see when their friends have shared the story they are reading. That means people can go to Pulse not only to read content from sites they trust but also to discover new sources and stories.70

Consequences of Fear Fear gets in the way of people feeling good about their work, themselves, and the organization. It creates an atmosphere in which people feel powerless, so that their confidence, commitment, enthusiasm, imagination, and motivation are diminished.71 One major drawback of leading with fear is that it cre- ates avoidance behavior because no one wants to make a mistake. Fear in the work- place weakens trust and communication. Employees feel threatened by repercussions if they speak up about work-related concerns. A survey of employees in 22 organizations found that 70 percent of them ‘‘bit their tongues’’ at work because they feared repercussions. Twenty-seven percent reported that they feared losing their credibility or reputation if they spoke up. Other fears reported were lack of career advancement, possible damage to the relationship with their supervisor, demotion or losing their job, and being embarrassed or humiliated in front of others.72 When people are afraid to speak up, important issues are suppressed and problems hidden. Employees are afraid to talk about a wide range of issues, but by far the largest category of ‘‘undiscussables’’ is the behavior of executives,

IN THE LEAD Akshay Kothari and Ankit Gupta, Pulse News Akshay Kothari and Ankit Gupta were graduate students at Stanford University’s acclaimed d.school (formally known as the Hasso Plattner Institute of Design) when they took a class designed to get people out of their comfort zones so they could confront and overcome the fears that stand in the way of creativity and goal achievement.

Both were self-described ‘‘geeks.’’ Although they were technically brilliant, shyness often prevented them from pursuing goals that involved too much interaction with people. To fight the fear, they decided to work on their class project—a news reader for the then newly released iPad—at a cafenewly released iPad—at a cafénewly released iPad—at a cafe off campus. Approaching strangers and asking for feedback on their ideas and prototype was definitely a stretch for the two, and the negative feedback often hurt.

But, over time, Akshay says, they went ‘‘from people saying ‘This is crap,’ to ‘Is this app preloaded on every iPad?’’’ The result of their project, Pulse News, was praised by Steve Jobs at a worldwide developer’s conference, won the prestigious Apple Design award, and has been downloaded by more than 20 million people.69

NEW LEADER ACTION MEMO As a leader, you can choose to lead with love, not with fear. You can show respect and trust toward followers and help people to learn, grow, and contribute their best to achieve the organization’s vision.


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particularly their interpersonal and relationship skills. When leaders inspire fear, they destroy the opportunity for feedback, blinding them to reality and denying them the chance to correct damaging decisions and behaviors.

Relationship with Leaders Leaders control the fear level in the organization. Exhibit 5.8 outlines some indicators of love-based versus fear-based leadership in organizations.73 Organizations driven by love are marked by openness and au- thenticity, a respect for diverse viewpoints, and emphasis on positive interpersonal relationships. Organizations driven by fear, on the other hand, are characterized by cautiousness and secrecy, blaming others, excessive control, and emotional dis- tance among people. The relationship between an employee and his or her direct supervisor is the primary factor determining the level of fear experienced at work. Unfortunately, the legacy of fear and mistrust associated with traditional hierar- chies in which bosses gave orders and employees jumped to obey ‘‘or else’’ still col- ors life in many organizations. Leaders can create a new environment that enables people to feel safe speaking their minds. Leaders can act from love rather than fear to free employees and the organization from the chains of the past.

5-5b Bringing Love to Work Leaders can learn to bind people together for a shared purpose through positive forces such as caring and compassion, listening, and connecting to others on a personal level. The emotion that attracts people to take risks, learn, grow, and move the orga- nization forward comes from love, not fear. Leaders should also remember that love is more than a feeling; to be a real force, it is translated into behavior. Stephen Covey points out that in all the great literature, love is a verb rather than a noun.74 Love is something you do, the sacrifices you make, and the giving of yourself to others, as illustrated by the poignant story in this chapter’s Consider This.

Organizations have traditionally rewarded people for strong qualities such as rational thinking, ambition, and competitiveness. These qualities are important, but their overemphasis has left many organizational leaders out of touch with their softer, caring, creative capabilities, unable to make emotional connections with others and afraid to risk showing any sign of weakness or emotion. What does it mean to lead with love? In all groups and organizations feelings of compassion, respect, and loyalty are translated into action, such as acts of friendliness, team- work, cooperation, listening, understanding, and serving others above oneself. Senti- ments emerge as action. Exhibit 5.9 shows results of an exercise in which people

EXHIBIT 5.8 Indicators of Love versus Fear in Organizations

Fear-Driven Indicators Love-Driven Indicators

Caution and secrecy Openness and authenticity, even when it’s difficult Blaming and attacking Understanding diverse viewpoints Excessive control Expecting others to do great things Sideline criticalness Involvement and discernment Coming unglued Keeping perspective Aloofness and distance Interpersonal connection Resistance hidden Resistance out in open, explored

Source: Daniel Holden, ‘‘Team Development: A Search for Elegance,’’ Industrial Management (September–October 2007), pp. 20–25. Copyright ª by Institute of Industrial Engineers.


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ConsiderThis! The Greatest Is Love

Army Staff Sgt. Ian Newland saw the enemy grenade land in his Humvee. In the next instant, his friend Ross McGinnis threw himself onto that grenade. ‘‘I try not to live my life in vain for what he’s done,’’ said Newland. When asked why McGinnis did it, Newland simply said, ‘‘He loved us.’’

During the Iraq war, at least five U.S. soldiers died because they used their own bodies to shield their comrades from grenades. ‘‘What a decision that is,’’ said Temple University psy- chologist Frank Farley. ‘‘I can’t think of anything more profound in human nature.’’ A Navy lieutenant said of a comrade who sacrificed his life by blocking a grenade thrown onto a roof- top near his team, ‘‘You think about him every day. And everything pretty much revolves around what he did.’’

Source: Based on Gregg Zoroya, ‘‘Coping After a Hero Dies Saving You in Iraq,’’ USA Today (September 20, 2007).

EXHIBIT 5.9 The Practical Aspects and Outcomes of Caring About Others

What do you do when you care for someone?* What does it feel like to be cared about?*

1. reach out 2. embrace, hug 3. be there with them 4. compassion 5. acceptance 6. share dreams 7. acknowledge accomplishments 8. trust 9. encourage 10. be a cheerleader 11. tell you care 12. relate feelings 13. respect them 14. be positive 15. give them a smile 16. give them time 17. give them recognition 18. protect 19. reassure 20. celebrate with

1. valuable 2. alive 3. responsive 4. positive outlook 5. exhilarated 6. respect 7. free 8. important 9. good 10. safe 11. more open to express yourself 12. elevates self-esteem 13. boosts morale 14. proud 15. loved 16. worthy 17. blessed 18. you make a difference 19. fulfilled 20. happy

*These are the actual, unedited words called out by participants and written on a whiteboard during a seminar at which people were asked these two questions. Source: Marilyn R. Zuckerman and Lewis J. Hatala, Incredibly American: Releasing the Heart of Quality. ª 1992. American Society for Quality. Reprinted with permission from the authors.


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reported what they do to show others they care and what it feels like to be cared about. Leaders who fail often do so because they are blind to the importance of the attributes in Exhibit 5.9. Sometimes leaders act from their own fear, which creates fear in others. A leader’s fear can manifest itself in arrogance, selfishness, deception, unfairness, and disrespect for others.75

5-5c Why Followers Respond to Love Most people yearn for more than a paycheck from their jobs. Leaders who lead with love have extraordinary influence because they meet five unspoken employee needs:

Hear and understand me. Even if you disagree with me, please don’t make me wrong. Acknowledge the greatness within me. Remember to look for my loving intentions. Tell me the truth with compassion.76

When leaders address these subtle emotional needs directly, people typically respond by loving their work and becoming emotionally engaged in solving prob- lems and serving customers. Enthusiasm for work and the organization increases. People want to believe that their leaders genuinely care. From the followers’ point of view, love versus fear has different motivational potential.

Fear-based motivation: I need a job to pay for my basic needs (fulfilling lower needs of the body). You give me a job and I will give you just enough to keep my job. Love-based motivation: If the job and the leader make me feel valued as a person and provide a sense of meaning and contribution to the community at large (ful- filling higher needs of heart, mind, and body), then I will give you all I have to offer.77

Many examples throughout this book illustrate what happens when positive emotion is used. One management consultant went so far as to advise that finding creative ways to love could solve every imaginable leadership problem.78 Rational thinking and technical skills are important, but leading with love builds trust, stimu- lates creativity, inspires commitment, and unleashes boundless energy.

Leaders can develop their capacity for the positive emotions of love and caring. When Walt Bettinger, president and CEO of Charles Schwab, was in college, he learned a lesson he tries to apply every day. The professor handed each student a blank sheet of paper and gave them one final exam question: What’s the name of the lady who cleans this building? The students had spent four hours a night twice a week in the building for 10 weeks, encountering the cleaning lady several times a night as they went to get a soft drink or use the restroom. Bettinger says, ‘‘I didn’t know Dottie’s name—her name was Dottie—but I’ve tried to know every Dottie since.’’79

LEADERSHIP ESSENTIALS Leaders use emotional as well as intellectual capabilities and understandings to guide organizations through a turbulent environment and help people feel energized, motivated, and cared for in the face of rapid change, uncertainty,

Fear-based motivation motivation based on fear of losing a job

Love-based motivation motivation based on feeling valued in the job


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and job insecurity. People can learn to be whole leaders who lead with both the head and the heart. Leaders should be aware of how their mental models affect their thinking and may cause ‘‘blind spots’’ that limit understanding. Becoming aware of assump- tions is a first step toward shifting or expanding one’s mental model and being able to see the world in new and different ways. One challenge for today’s lead- ers is developing a global mindset. Four key issues important to expanding and developing a leader’s mind are in- dependent thinking, open-mindedness, systems thinking, and personal mastery. Personal mastery involves clarity of mind, clarity of objectives, and an organ- ized system for achieving objectives. Leaders should also understand the importance of emotions and emotional intelligence. Understanding emotions is imperative because emotions are conta- gious and emotions influence individuals’ performance. Four basic components of emotional intelligence are self-awareness, self- management, social awareness, and relationship management. Emotionally intelligent leaders can have a positive impact on organizations by helping employees grow, learn, and develop; creating a sense of purpose and meaning; instilling unity and team spirit; and basing relationships on trust and respect, which allows employees to take risks and fully contribute to the organization. Traditional organizations have relied on fear as a motivator. Although fear does motivate people, it prevents people from feeling good about their work and often causes avoidance behavior. Fear can reduce trust and communication so that im- portant problems and issues are hidden or suppressed. Leaders can choose to lead with love instead of fear. Love can be thought of as a motivational force that ena- bles people to feel alive, connected, and energized. People respond to love because it meets unspoken needs for respect and affirmation. Rational thinking is impor- tant to leadership, but it takes love to build trust, creativity, and enthusiasm.

DISCUSSION QUESTIONS 1. How do you feel about developing the emotional qualities of yourself and other people

in the organization as a way to be an effective leader? Discuss.

2. What does it mean to be a whole leader as described in the chapter? Can you give an example from your experience? Discuss.

3. Why is it so hard for people to change their assumptions? What are some specific reasons why leaders need to be aware of their mental models?

4. Discuss the similarities and differences between mental models and open-mindedness.

5. What is the concept of personal mastery? How important is it to a leader?

6. Which of the four elements of emotional intelligence do you consider most essential to an effective leader? Why?

7. Consider fear and love as potential motivators. Which is the best source of motivation for college students? For members of a new product development team? For top execu- tives at a media conglomerate? Why?

8. Have you ever experienced love and/or fear from leaders at work? How did you respond? Is it possible that leaders might carry love too far and create negative rather than positive results? Discuss.


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9. Do you think it is appropriate for a leader to spend time developing people’s emotional intelligence? Why or why not?

10. Think about the class for which you are reading this text as a system. How might making changes without whole-systems thinking cause problems for students?

LEADERSHIP AT WORK Mentors Think of a time when someone reached out to you as a mentor or coach. This might have been a time when you were having some difficulty and the person who reached out would have done so out of concern for you rather than for their own self-interest.

Below, briefly describe the situation, who the mentor was, and what the mentor did for you.

Mentoring comes from the heart, is a generous act, and is usually deeply appreciated by the recipient. How does it feel to recall the situation in which a mentor assisted you?

Share your experience with one or more students. What are the common characteristics that mentors possess based on your combined experiences?

In Class: A discussion of experiences with mentors is excellent for small groups. The in- structor can ask each group to identify the common characteristics that their mentors dis- played and each group’s conclusions can be written on the board. From these lists of mentor characteristics, common themes associated with mentors can be defined. The instructor can ask the class the following questions: What are the key characteristics of mentors? Based on the key mentor characteristics, is effective mentoring based more on a person’s heart or mind? Will you (the student) reach out as a mentor to others in life, and how will you do it? What factors might prevent you from doing so?

LEADERSHIP DEVELOPMENT: CASES FOR ANALYSIS The New Boss Sam Nolan clicked the mouse for one more round of solitaire on the computer in his den. He’d been at it for more than an hour, and his wife had long ago given up trying to persuade him to join her for a movie or a rare Saturday night on the town. The mind-numbing game seemed to be all that calmed Sam down enough to stop agonizing about work and how his job seemed to get worse every day.


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Nolan was chief information officer at Century Medical, a large medical products com- pany based in Connecticut. He had joined the company four years ago, and since that time Century had made great progress integrating technology into its systems and processes. Nolan had already led projects to design and build two highly successful systems for Century. One was a benefits-administration system for the company’s human resources department. The other was a complex Web-based purchasing system that streamlined the process of purchas- ing supplies and capital goods. Although the system had been up and running for only a few months, modest projections were that it would save Century nearly $2 million annually. The new Web-based system dramatically cut the time needed for processing requests and placing orders. Purchasing managers now had more time to work collaboratively with key stakehold- ers to identify and select the best suppliers and negotiate better deals.

Nolan thought wearily of all the hours he had put in developing trust with people throughout the company and showing them how technology could not only save time and money but also support team-based work, encourage open information sharing, and give peo- ple more control over their own jobs. He smiled briefly as he recalled one long-term HR em- ployee, 61-year-old Ethel Moore. She had been terrified when Nolan first began showing her the company’s intranet, but she was now one of his biggest supporters. In fact, it had been Ethel who had first approached him with an idea about a Web-based job posting system. The two had pulled together a team and developed an idea for linking Century managers, internal recruiters, and job applicants using artificial intelligence software on top of an integrated Web-based system. When Nolan had presented the idea to his boss, executive vice president Sandra Ivey, she had enthusiastically endorsed it. Within a few weeks the team had authoriza- tion to proceed with the project.

But everything began to change when Ivey resigned her position six months later to take a plum job in New York. Ivey’s successor, Tom Carr, seemed to have little interest in the pro- ject. During their first meeting, Carr had openly referred to the project as a waste of time and money. He immediately disapproved several new features suggested by the company’s internal recruiters, even though the project team argued that the features could double internal hiring and save millions in training costs. ‘‘Just stick to the original plan and get it done. All this stuff needs to be handled on a personal basis anyway,’’ Carr countered. ‘‘You can’t learn more from a computer than you can talking to real people—and as for internal recruiting, it shouldn’t be so hard to talk to people if they’re already working right here in the company.’’ Carr seemed to have no understanding of how and why technology was being used. He became irritated when Ethel Moore referred to the system as ‘‘Web-based.’’ He boasted that he had never visited Century’s intranet site and suggested that ‘‘this Internet obsession’’ would blow over in a few years anyway. Even Ethel’s enthusiasm couldn’t get through to him. ‘‘Tech- nology is for those people in the IS department. My job is people, and yours should be, too,’’ Carr shouted. Near the end of the meeting, Carr even jokingly suggested that the project team should just buy a couple of good filing cabinets and save everyone some time and money.

Nolan sighed and leaned back in his chair. The whole project had begun to feel like a joke. The vibrant and innovative human resources department his team had imagined now seemed like nothing more than a pipe dream. But despite his frustration, a new thought entered Nolan’s mind: ‘‘Is Carr just stubborn and narrow-minded or does he have a point that HR is a people business that doesn’t need a high-tech job posting system?’’


1. Describe the two different mental models represented in this story.

2. What are some of the assumptions that shape the mindset of Sam Nolan? Of Tom Carr?

3. Do you think it is possible for Carr to shift to a new mental model? If you were Sam Nolan, what would you do?

Sources: Based on Carol Hildebrand, ‘‘New Boss Blues,’’ CIO Enterprise, Section 2 (November 15, 1998), pp. 53–58; and Megan Santosus, ‘‘Advanced Micro Devices’ Web-Based Purchasing System,’’ CIO, Section 1 (May 15, 1998), p. 84. A version of this case originally appeared in Richard L. Daft, Organization Theory and Design, 7th ed. (Cincinnati, OH: South-Western, 2001), pp. 270–271.


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The USS Florida The atmosphere in a Trident nuclear submarine is generally calm and quiet. Even pipe joints are cushioned to prevent noise that might tip off a pursuer. The Trident ranks among the world’s most dangerous weapons—swift, silent, and armed with 24 long-range missiles carry- ing 192 nuclear warheads. Trident crews are the cream of the Navy crop, and even the sailors who fix the plumbing exhibit a white-collar decorum. The culture aboard ship is a low-key, collegial one in which sailors learn to speak softly and share close quarters with an ever- changing roster of shipmates. Being subject to strict security restrictions enhances a sense of elitism and pride. To move up and take charge of a Trident submarine is an extraordinary feat in the Navy—fewer than half the officers qualified for such commands ever get them. When Michael Alfonso took charge of the USS Florida, the crew welcomed his arrival. They knew he was one of them—a career Navy man who joined up as a teenager and moved up through the ranks. Past shipmates remembered him as basically a loner, who could be brus- que but generally pleasant enough. Neighbors on shore found Alfonso to be an unfailingly polite man who kept mostly to himself.

The crew’s delight in their new captain was short-lived. Commander Alfonso moved swiftly to assume command, admonishing his sailors that he would push them hard. He wasn’t joking—soon after the Florida slipped into deep waters to begin a postoverhaul shake- down cruise, the new captain loudly and publicly reprimanded those whose performance he considered lacking. Chief Petty Officer Donald MacArthur, chief of the navigation division, was only one of those who suffered Alfonso’s anger personally. During training exercises, MacArthur was having trouble keeping the boat at periscope depth because of rough seas. Alfonso announced loudly, ‘‘You’re disqualified.’’ He then precipitously relieved him of his diving duty until he could be recertified by extra practice. Word of the incident spread quickly. Crew members, accustomed to the Navy’s adage of ‘‘praise in public, penalize in pri- vate,’’ were shocked. It didn’t take long for this type of behavior to have an impact on the crew, according to Petty Officer Aaron Carmody: ‘‘People didn’t tell him when something was wrong. You’re not supposed to be afraid of your captain, to tell him stuff. But nobody wanted to.’’

The captain’s outbursts weren’t always connected with job performance. He bawled out the supply officer, the executive officer, and the chief of the boat because the soda dispenser he used to pour himself a glass of Coke one day contained Mr. Pibb instead. He exploded when he arrived unexpectedly at a late-night meal and found the fork at his place setting miss- ing. Soon, a newsletter titled The Underground was being circulated by the boat’s plumbers, who used sophomoric humor to spread the word about the captain’s outbursts over such petty matters. By the time the sub reached Hawaii for its ‘‘Tactical Readiness Evaluation,’’ an intense week-long series of inspections by staff officers, the crew was almost completely alien- ated. Although the ship tested well, inspectors sent word to Rear Admiral Paul Sullivan that something seemed to be wrong on board, with severely strained relations between captain and crew. On the Trident’s last evening of patrol, much of the crew celebrated with a film night—they chose The Caine Mutiny and Crimson Tide, both movies about Navy skippers who face mutinies and are relieved of command at sea. When Humphrey Bogart, playing the captain of the fictional USS Caine, exploded over a missing quart of strawberries, someone shouted, ‘‘Hey, sound familiar?’’

When they reached home port, the sailors slumped ashore. ‘‘Physically and mentally, we were just beat into the ground,’’ recalls one. Concerned about reports that the crew seemed ‘‘despondent,’’ Admiral Sullivan launched an informal inquiry that eventually led him to relieve Alfonso of his command. It was the first-ever firing of a Trident submarine com- mander. ‘‘He had the chance of a lifetime to experience the magic of command, and he squan- dered it,’’ Sullivan said. ‘‘Fear and intimidation lead to certain ruin.’’ Alfonso himself seemed dumbfounded by Admiral Sullivan’s actions, pointing out that the USS Florida under his com- mand posted ‘‘the best-ever grades assigned for certifications and inspections for a postover- haul Trident submarine.’’


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1. Analyze Alfonso’s impact on the crew in terms of love versus fear. What might account for the fact that he behaved so strongly as captain of the USS Florida?

2. Which do you think a leader should be more concerned about aboard a nuclear submar- ine—high certification grades or high-quality interpersonal relationships? Do you agree with Admiral Sullivan’s decision to fire Alfonso? Discuss.

3. Discuss Commander Alfonso’s level of emotional intelligence in terms of the four compo- nents listed in the chapter. What advice would you give him?

Source: Based on Thomas E. Ricks, ‘‘A Skipper’s Chance to Run a Trident Sub Hits Stormy Waters,’’ The Wall Street Journal (November 20, 1997), pp. A1, A6.

REFERENCES 1. Thomas E. Ricks, ‘‘Charmed Forces: Army’s ‘Baby Generals’ Take a

Crash Course in Sensitivity Training,’’ The Wall Street Journal (January 19, 1998), p. A1.

2. Warren Bennis, quoted in Tricia Bisoux, ‘‘What Makes Great Lead- ers,’’ BizEd (September–October 2005), pp. 40–45.

3. Stacey Philpot, ‘‘Whole Leadership,’’ Leadership Excellence (July 2010), p. 6.

4. This basic idea is found in a number of sources, among them Jack Hawley, Reawakening the Spirit in Work (San Francisco: Berrett- Koehler, 1993); Aristotle, The Nicomachean Ethics, trans. by the Brothers of the English Dominican Province, rev. by Daniel J. Sullivan (Chicago: Encyclopedia Britannica, 1952); Alasdair MacIntyre, After Virtue: A Study in Moral Theory (Notre Dame, IN: University of Notre Dame Press, 1984); and Stephen Covey, The Seven Habits of Highly Effective People: Powerful Lessons in Personal Change (New York: Fireside Books/Simon & Schuster, 1990).

5. W. B. Rouse and N. M. Morris, ‘‘On Looking Into the Black Box: Prospects and Limits in the Search for Mental Models,’’ Psychological Bulletin 100 (1986), pp. 349–363; Beng-Chong Lim and Katherine J. Klein, ‘‘Team Mental Models and Team Performance: A Field Study of the Effects of Team Mental Model Similarity and Accuracy,’’ Jour- nal of Organizational Behavior 27 (2006), pp. 403–418; Vanessa Urch Druskat and Anthony T. Pescosolido, ‘‘The Content of Effective Team- work Mental Models in Self-Managing Teams: Ownership, Learning, and Heedful Interrelating,’’ Human Relations 55, no. 3 (2002), pp. 283–314; and Peter M. Senge, The Fifth Discipline: The Art and Practice of the Learning Organization (New York: Doubleday, 1990).

6. From Robert Townsend, Up the Organization, quoted in ‘‘Everything You Wanted to Know about Leadership, from the Man Who Broke All the Rules,’’ The Conference Board Review (September–October 2007), pp. 37–41.

7. Adam Lashinsky, ‘‘Chaos by Design,’’ Fortune (October 2, 2006), pp. 86–98.

8. The following discussion is based partly on Robert C. Benfari, Under- standing and Changing Your Management Style (San Francisco: Jossey-Bass, 1999), pp. 66–93.

9. Stephanie Clifford, ‘‘Chief’s Silicon Valley Stardom Quickly Clashed at J.C. Penney,’’ The New York Times (April 9, 2013), http://www.nyti mes.com/2013/04/10/business/how-an-apple-star-lost-his-luster-at-penneys. html?emc=eta1&_r=0 (accessed April 24, 2013); Stephanie Clifford, ‘‘J.C. Penney Ousts Chief of 17 Months,’’ The New York Times, April 8, 2013, http://www.nytimes.com/2013/04/09/business/ron- johnson-out-as-jc-penney-chief.html?pagewanted=all&_r=0 (accessed April 24, 2013); and Andrew Ross Sorkin, ‘‘A Dose of Realism for the Chief of J.C. Penney,’’ The New York Times, November 12, 2011, http://dealbook.nytimes.com/2012/11/12/a-dose-of-realism-for-the-chief- of-j-c-penney/ (accessed March 26, 2013).

10. Anthony J. Mayo and Nitin Nohria, In Their Time: The Greatest Busi- ness Leaders of the 20th Century (Boston: Harvard Business School Press, 2005).

11. Prasad Kajpa, ‘‘Steve Jobs and the Art of Mental Model Innovation,’’ Ivey Business Journal (May–June 2012), http://www.iveybusiness journal.com/topics/leadership/steve-jobs-and-the-art-of-mental-model- innovation (accessed March 26, 2013); David J. Glew, Stephen C. Harper, and Jonathan D. Rowe, ‘‘Is Your Organization a Target?’’ Industrial Management (November–December 2010), pp. 15–20; Geoffrey Colvin, ‘‘The Most Valuable Quality in a Manager,’’ For- tune (December 29, 1997), pp. 279–280; and Marlene Piturro, ‘‘Mindshift,’’ Management Review (May 1999), pp. 46–51.

12. Based on Kevin Clark, ‘‘The Coach Who Won’t Leave the Locker Room,’’ The Wall Street Journal (October 13, 2015), http://www.wsj. com/articles/the-coach-who-wont-leave-the-locker-room-1444755991 (accessed October 15, 2015).

13. Kajpa, ‘‘Steve Jobs and the Art of Mental Model Innovation.’’ 14. Glew et al., ‘‘Is Your Organization a Target?’’; Gary Hamel, ‘‘Why . . .

It’s Better to Question Answers Than to Answer Questions,’’ Across the Board (November–December 2000), pp. 42–46; and Jane C. Linder and Susan Cantrell, ‘‘It’s All in the Mind (set),’’ Across the Board (May–June 2002), pp. 39–42.

15. This section is based on Schon Beechler and Dennis Baltzley, ‘‘Creating a Global Mindset,’’ Chief Learning Officer (May 29, 2008), http://clo media.com/articles/view/creating_a_global_mindset/1 (accessed June 26, 2012); Mansour Javidan and Jennie L. Walker, ‘‘A Whole New Global Mindset for Leadership,’’ People & Strategy 35, no. 2 (2012), pp. 36–41; and Stephen L. Cohen, ‘‘Effective Global Leadership Requires a Global Mindset,’’ Industrial and Commercial Training 42, no. 1 (2010), pp. 3–10.

16. Definition based on Mansour Javidan and Mary B. Teagarden, ‘‘Con- ceptualizing and Measuring Global Mindset,’’ Advanced in Global Leadership 6 (2011), pp. 13–39; and Beechler and Baltzley, ‘‘Creating a Global Mindset.’’

17. Ken Powell, interviewed by Beth Kowitt, ‘‘Move Beyond Your Com- fort Zone,’’ Fortune (May 4, 2009), p. 48.

18. Anil K. Gupta and Vijay Govindarajan, ‘‘Cultivating a Global Mindset,’’ Academy of Management Executive 16, no. 1 (2002), pp. 116–126.

19. Hamel, ‘‘Why . . . It’s Better to Question Answers Than to Answer Questions’’; Geoffrey Colvin, ‘‘Managing in Chaos,’’ Fortune (October 2, 2006), pp. 76–82.

20. Example cited in Janet Rae-Dupree, ‘‘Innovative Minds Don’t Think Alike,’’ The New York Times (December 30, 2007), http://www. nytimes.com/2007/12/30/business/30know.html?pagewanted=all&_r=0 (accessed December 30, 2007).


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21. Daniel Levinthal and Claus Rerup, ‘‘Crossing an Apparent Chasm: Bridging Mindful and Less-Mindful Perspectives on Organizational Learning,’’ Organization Science 17, no. 4 (August 2006), pp. 502– 513; and Ellen Langer and John Sviokla, ‘‘An Evaluation of Charisma from the Mindfulness Perspective,’’ unpublished manuscript, Harvard University. Part of this discussion is also drawn from Richard L. Daft and Robert H. Lengel, Fusion Leadership: Unlocking the Subtle Forces That Change People and Organizations (San Francisco: Berrett- Koehler, 1998).

22. Based on Michael Chaskalson, The Mindful Workplace (Chichester, West Sussex: Wiley-Blackwell, 2011); Ellen J. Langer, ‘‘Minding Mat- ters: The Consequences of Mindlessness-Mindfulness,’’ in Advances in Experimental Social Psychology, vol. 22, L. Berkowitz, ed. (San Diego: Academic Press, 1989), pp. 137–173; and Levinthal and Rerup, ‘‘Crossing an Apparent Chasm.’’

23. Bauback Yeganeh, ‘‘Mindful Leader,’’ Leadership Excellence (March 2012), p. 7.

24. Matt Richtel, ‘‘Hooked on Gadgets, and Paying a Mental Price,’’ The New York Times (June 6, 2010), http://www.nytimes.com/2010/06/07/ technology/07brain.html?pagewanted=all&_r=0 (accessed June 7, 2010).

25. T. K. Das, ‘‘Educating Tomorrow’s Managers: The Role of Critical Thinking,’’ The International Journal of Organizational Analysis 2, no. 4 (October 1994), pp. 333–360.

26. Russell Gold and Neil King Jr. ‘‘The Gulf Oil Spill: Red Flags Were Ignored Aboard Doomed Rig,’’ The Wall Street Journal (May 13, 2010), p. A6.

27. See Theresa M. Glomb, Michelle K. Duffy, Joyce E. Bono, and Tao Yang, ‘‘Mindfulness at Work,’’ Research in Personnel and Human Resources Management 30 (2011), pp. 115–157, for a discussion of the value of mindfulness at work.

28. Bernard M. Bass, Leadership and Performance Beyond Expectations (New York: The Free Press, 1985); and B. M. Bass, New Paradigm Leadership: An Inquiry into Transformational Leadership (Alexandria, VA: U.S. Army Research Institute for the Behavioral and Social Scien- ces, 1996).

29. The Pike Syndrome has been discussed in multiple sources. 30. Janet Rae-Dupree, ‘‘Innovative Minds Don’t Think Alike’’ (December 30,

2007), p. 3.3. 31. Jerome Groopman, ‘‘Mental Malpractice’’ (Op-Ed column), The New

York Times (July 7, 2007), p. A13. 32. Chris Argyris, Flawed Advice and the Management Trap (New York:

Oxford University Press, 2000); and Eileen C. Shapiro, ‘‘Managing in the Cappuccino Economy’’ (review of Flawed Advice), Harvard Busi- ness Review (March–April 2000), pp. 177–183.

33. This section is based on Peter M. Senge, The Fifth Discipline: The Art and Practice of the Learning Organization (New York: Doubleday, 1990); John D. Sterman, ‘‘Systems Dynamics Modeling: Tools for Learning in a Complex World,’’ California Management Review 43, no. 4 (Summer, 2001), pp. 8–25; Andrea Gabor, ‘‘Seeing Your Com- pany as a System,’’ Strategy Business (Summer 2010), http:// www.strategy-business.com/article/10210?gko=20cca (accessed June 20, 2012); and Ron Zemke, ‘‘Systems Thinking,’’ Training (February 2001), pp. 40–46.

34. This example is cited in Sterman, ‘‘Systems Dynamics Modeling.’’ 35. Peter M. Senge, Charlotte Roberts, Richard B. Ross, Bryan J. Smith,

and Art Kleiner, The Fifth Discipline Fieldbook (New York: Currency/ Doubleday, 1994), p. 87.

36. Peter Senge, The Fifth Discipline; and David Allen, Getting Things Done: The Art of Stress-Free Productivity (New York: Viking Penguin, 2001).

37. Timothy A. Judge, Amy E. Colbert, and Remus Ilies, ‘‘Intelligence and Leadership: A Quantitative Review and Test of Theoretical Proposi- tions,’’ Journal of Applied Psychology (June 2004), pp. 542–552.

38. Sigal G. Barsade and Donald E. Gibson, ‘‘Why Does Affect Matter in Organizations?’’ Academy of Management Perspectives 21, no. 1 (February 2007), pp. 36–59; Daniel Goleman, Emotional Intelligence:

Why It Can Matter More Than IQ (New York: Bantam Books, 1995); John D. Mayer and David Caruso, ‘‘The Effective Leader: Understand- ing and Applying Emotional Intelligence,’’ Ivey Business Journal (November–December 2002); Pamela Kruger, ‘‘A Leader’s Journey,’’ Fast Company (June 1999), pp. 116–129; and Hendrie Weisinger, Emotional Intelligence at Work (San Francisco: Jossey-Bass, 1998).

39. Study by Daniel Goleman, co-chairman of the Consortium for Research on Emotional Intelligence in Organizations, reported in Diann Daniel, ‘‘Soft Skills for CIOs and Aspiring CIOs: Four Ways to Boost Your Emotional Intelligence,’’ CIO (June 25, 2007), http:// www.cio.com (accessed October 18, 2007).

40. Based on Goleman, Emotional Intelligence; Goleman, ‘‘Leadership That Gets Results,’’ Harvard Business Review (March–April 2000), pp. 79–90; J. D. Mayer, D. R. Caruso, and P. Salovey, ‘‘Emotional Intelligence Meets Traditional Standards for an Intelligence,’’ Intelli- gence 27, no. 4 (1999), pp. 266–298; Neal M. Ashkanasy and Cather- ine S. Daus, ‘‘Emotion in the Workplace: The New Challenge for Managers,’’ Academy of Management Executive 16, no. 1 (2002), pp. 76–86; and Weisinger, Emotional Intelligence at Work.

41. Studies reported in Stephen Xavier, ‘‘Are You at the Top of Your Game? Checklist for Effective Leaders,’’ Journal of Business Strategy 26, no. 3 (2005), pp. 35–42; and Joyce E. Bono and Remus Ilies, ‘‘Charisma, Positive Emotions, and Mood Contagion,’’ The Leadership Quarterly 17 (2006), pp. 317–334.

42. This section is based largely on Goleman, Emotional Intelligence: Why It Can Matter More Than IQ, pp. 289–290.

43. Rensselaer Polytechnic Institute, Lally School of Management and Technology, as reported in BusinessWeek Frontier (February 5, 2001), p. F4.

44. This discussion is based on V. Vijayalakshmi and Sanghamitra Bhatta- charyya, ‘‘Emotional Contagion and Its Relevance to Individual Behavior and Organizational Processes: A Position Paper,’’ Journal of Business Psychology 27 (2012), pp. 363–374; E. Hatfield, J. T. Cacioppo, and R. L. Rapson, Emotional Contagion (New York: Cambridge University Press, 1994); Barsade and Gibson, ‘‘Why Does Affect Matter in Organizations?’’; and Bono and Ilies, ‘‘Charisma, Pos- itive Emotions, and Mood Contagion.’’

45. Jeff Bailey, ‘‘Outsize Personality Tries to Create a Regional Airline to Match,’’ The New York Times (January 19, 2007), p. C1.

46. Research by Noah Eisenkraft and Hillary Anger Elfenbein reported in Nicole Branan, ‘‘The ‘Me’ Effect,’’ Scientific American Mind (Novem- ber–December 2010), pp. 14–15; Noah Eisenkraft and Hillary Anger Elfenbein, ‘‘The Way You Make Me Feel,’’ Psychological Science 21 (April 2010), pp. 505–510; Robert I. Sutton, ‘‘How Bad Apples Infect the Tree,’’ The New York Times (November 28, 2010), p. BU.8; and Roy Baumeister et al., ‘‘Bad Is Stronger Than Good,’’ Review of Gen- eral Psychology 5, no. 4 (2001), pp. 323–370.

47. Daniel Goleman, Richard Boyatzis, and Annie McKee, ‘‘The Emotional Reality of Teams,’’ Journal of Organizational Excellence (Spring 2002), pp. 55–65.

48. P. J. Jordan, N. M. Ashkanasy, C. E. J. Ha48. P. J. Jordan, N. M. Ashkanasy, C. E. J. Hä48. P. J. Jordan, N. M. Ashkanasy, C. E. J. Hartel, and G. S. Hooper, ‘‘Workgroup Emotional Intelligence: Scale Development and Relation- ship to Team Process Effectiveness and Goal Focus,’’ Human Resource Management Review 12, no. 2 (Summer 2002), pp. 195–214.

49. See studies reported in Barsade and Gibson, ‘‘Why Does Affect Matter in Organizations?’’; Bono and Ilies, ‘‘Charisma, Positive Emotions, and Mood Contagion; and David Bolchover, ‘‘Why Mood Matters,’’ Man- agement Today (November 1, 2008), p. 46.

50. Barbara L. Fredrickson, ‘‘What Good Are Positive Emotions?’’ Review of General Psychology 2, no. 3 (1998), pp. 300–319; Barsade and Gibson, ‘‘Why Does Affect Matter’’; and Bolchover, ‘‘Why Mood Matters.’’

51. Jerry Krueger and Emily Killham, ‘‘At Work, Feeling Good Matters,’’ Gallup Management Journal (December 8, 2005).

52. Bolchover, ‘‘Why Mood Matters.’’


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53. Diane Coutu, ‘‘Leadership Lessons from Abraham Lincoln,’’ Harvard Business Review (April 2009), pp. 43–47.

54. Daniel Goleman, ‘‘Emotional Mastery: Seek to Excel in Four Dimen- sions,’’ Leadership Excellence (June 2011), pp. 12–13; Goleman, ‘‘Leadership That Gets Results’’; and Daniel Goleman, ‘‘How to Be Emotionally Intelligent,’’ The New York Times (April 7, 2015), http:// www.nytimes.com/2015/04/12/education/edlife/how-to-be-emotionally- intelligent.html?_r=0 (accessed October 28, 2015).

55. Dave Marcum, Steve Smith, and Mahan Khalsa, ‘‘The Marshmallow Conundrum,’’ Across the Board (March–April 2004), pp. 26–30.

56. Sue Shellenbarger, ‘‘Health & Fitness: How to Keep Your Cool in Angry Times,’’ The Wall Street Journal Asia (September 27, 2010), p. 11.

57. Alan Farnham, ‘‘Are You Smart Enough to Keep Your Job?’’ Fortune (January 15, 1996), pp. 34–47.

58. Peter J. Frost, ‘‘Handling the Hurt: A Critical Skill for Leaders,’’ Ivey Management Journal (January–February 2004).

59. Rolf W. Habbel, ‘‘The Human[e] Factor: Nurturing a Leadership Cul- ture,’’ Strategy & Business 26 (First Quarter 2002), pp. 83–89; and Melvin Smith and Diana Bilimoria, ‘‘Heart of Leadership: Engage with Emotional Intelligence,’’ Leadership Excellence (March 2012), p. 5.

60. Jeremy W. Peters, ‘‘Time Inc. Chief Executive Jack Griffin Out,’’ The New York Times (February 17, 2011), http://mediadecoder.blogs. nytimes.com/2011/02/17/time-inc-chief-executive-jack-griffin-out/ (accessed April 1, 2013).

61. Based on Vivian Giang, ‘‘Inside Google’s Insanely Popular Emotional- Intelligence Course,’’ Fast Company (March 25, 2015), http:// www.fastcompany.com/3044157/the-future-of-work/inside-googles- insanely-popular-emotional-intelligence-course (accessed October 19, 2015).

62. Research study results reported in Goleman, ‘‘Leadership That Gets Results.’’

63. Barsade and Gibson, ‘‘Why Does Affect Matter in Organizations?’’; Frank Walter, Michael S. Cole, and Ronald H. Humphrey, ‘‘Emotional Intelligence: Sine Qua Non of Leadership or Folderol?’’ Academy of Management Perspectives (February 2011), pp. 45–58; and Kenneth M. Nowack, ‘‘Emotional Intelligence: Defining and Understanding the Fad,’’ T D (August 2012), pp. 60–63.

64. Xavier, ‘‘Are You at the Top of Your Game?’’ 65. This discussion is based in part on Kathleen D. Ryan and Daniel K. Oes-

treich, Driving Fear Out of the Workplace: How to Overcome the Invis- ible Barriers to Quality, Productivity, and Innovation (San Francisco:

Jossey-Bass, 1991); and Scott A. Snook, ‘‘Love and Fear and the Modern Boss,’’ Harvard Business Review (January 2008), pp. 16–17.

66. S. Lyubomirsky, L. King, and E. Diener, ‘‘The Benefits of Frequent Pos- itive Affect: Does Happiness Lead to Success?’’ Psychological Bulletin 131, no. 6 (2005), pp. 803–855; R. Cropanzano and T. A. Wright, ‘‘When a ‘Happy’ Worker Is Really a ‘Productive’ Worker: A Review and Further Refinement of the Happy-Productive Worker Theory,’’ Consulting Psychology Journal: Practice and Research 53, no. 3 (2001), pp. 182–199; and Barsade and Gibson, ‘‘Why Does Affect Matter in Organizations?’’

67. David E. Dorsey, ‘‘Escape from the Red Zone,’’ Fast Company (April/ May 1997), pp. 116–127.

68. Susan G. Hauser, ‘‘The Degeneration of Decorum,’’ Workforce Man- agement (January 11, 2011), pp. 16–18, 20–21.

69. Tom Kelley and David Kelley, ‘‘Reclaim Your Creative Confidence,’’ Harvard Business Review (December 2012), pp. 115–117; and Fred- eric Lardinois, ‘‘Pulse News Reader Dips Its Toes into Social with New ‘Highlights’ Feature,’’ TechCrunch (February 12, 2013), http://tech crunch.com/2013/02/12/pulse-news-reader-dips-its-toes-into-social/ (accessed April 1, 2013).

70. Ibid. Frederic Lardinois, ‘‘Pulse News Reader Dips Its Toes into Social with New ‘Highlights’ Feature,’’ TechCrunch (February 12, 2013), http://techcrunch.com/2013/02/12/pulse-news-reader-dips-its-toes-into- social/ (accessed April 1, 2013).

71. This section is based on Ryan and Oestreich, Driving Fear Out of the Workplace; and Therese R. Welter, ‘‘Reducing Employee Fear: Get Workers and Managers to Speak Their Minds,’’ Small Business Report (April 1991), pp. 15–18.

72. Ryan and Oestreich, Driving Fear Out of the Workplace, p. 43. 73. Daniel Holden, ‘‘Team Development: A Search for Elegance,’’ Indus-

trial Management (September–October 2007), pp. 20–25. 74. Covey, The Seven Habits of Highly Effective People, p. 80. 75. Donald G. Zauderer, ‘‘Integrity: An Essential Executive Quality,’’ Busi-

ness Forum (Fall 1992), pp. 12–16. 76. Hyler Bracey, Jack Rosenblum, Aubrey Sanford, and Roy Trueblood,

Managing from the Heart (New York: Dell Publishing, 1993), p. 192. 77. Madan Birla with Cecilia Miller Marshall, Balanced Life and Leader-

ship Excellence (Memphis, TN: The Balance Group, 1997), pp. 76–77. 78. Rodney Ferris, ‘‘How Organizational Love Can Improve Leadership,’’

Organizational Dynamics 16, no. 4 (Spring 1988), pp. 40–52. 79. Kristy J. O’Hara, ‘‘Role Player,’’ Smart Business Akron/Canton

(March 2009), p. 14.


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Chapter 6: Courage and Moral Leadership

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YOUR LEADERSHIP CHALLENGE After reading this chapter, you should be able to:

• Combine a rational approach to leadership with a concern for people and ethics. • Understand how leaders set the ethical tone in organizations and recognize the distinction between ethical and unethical leadership.

• Recognize your own stage of moral development and ways to accelerate your moral maturation. • Know and use mechanisms that enhance an ethical organizational culture. • Apply the principles of stewardship and servant leadership. • Recognize courage in others and unlock your own potential to live and act courageously.

CHAPTER OUTLINE 168 Moral Leadership Today

173 Acting Like a Moral Leader

174 Becoming a Moral Leader

176 Servant Leadership

180 Leading with Courage

In the Lead

170 Kip Tindell, Container Store

179 Adam Grant, Wharton School of the University of Pennsylvania

182 Paula Reid, U.S. Secret Service

186 General Stanley A. McChrystal, United States Army

Leader’s Self-Insight

172 Ethical Maturity

180 Your Servant Leadership Orientation

184 Assess Your Moral Courage

Leader’s Bookshelf

169 Discover Your True North

Leadership at Work

189 Scary Person

Leadership Development: Cases for Analysis

189 What Should I Say?

191 The Boy, the Girl, the Ferryboat Captain, and the Hermits

By the time she was shot in the head in an assassination attempt by Talibangunmen in October 2012, 14-year-old Malala Yousafzai had been a leader inthe fight for girls’ education in Pakistan for more than three years. Yousaf- zai began writing a blog under a pseudonym for the BBC at the age of 11, detailing her life under Taliban rule, their control of the Swat Valley, and her advocacy of education for girls. After the Pakistan military ousted the militants from her region, Yousafzai began speaking publicly. A New York Times documentary and interviews by both print and television media raised her profile further and put her in the direct aim of the Taliban. After life-saving surgeries in Pakistan following the shooting, Yousafzai was flown to Birmingham, England, where she underwent many more surgeries—and where, within six months, she returned to school. In 2014, Yousafzai was honored as one of the recipients of the Nobel Peace Prize, and she continues to speak passionately for her cause despite continuing death threats.1

Malala Yousafzai knew very early in life that being an influential leader means learning who you are and what you stand for, and then having the courage to act. Leaders demonstrate confidence and commitment in what they believe and what they do. A deep devotion to a cause or a purpose larger than oneself sparks the courage to act, as it does for Malala Yousafzai, who said upon her return to school, ‘‘I want all girls in the world to have this basic opportunity.’’2

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In addition, Malala Yousafzai’s story illustrates that real leadership has less to do with making use of other people than with serving other people. Placing others ahead of oneself is a key to successful leadership, whether in social activism, politics, war, education, sports, social services, or business.

This chapter explores ideas related to courage and moral leadership. In the previ- ous chapter, we discussed mind and emotion, two of the three elements that come to- gether for successful leadership. This chapter focuses on the third element, spirit—on the ability to look within, to contemplate the human condition, to think about what is right and wrong, to see what really matters in the world, and to have the courage to stand up for what is worthy and right. We begin by looking at the situation in which most organizations currently operate, the dilemma leaders face in the modern world, and the importance of leaders setting an ethical tone within the organization. Next we explore how leaders can act in a moral way, examine a model of personal moral development, and look at the importance of stewardship and servant leader- ship. The final sections of the chapter explore what courage means and how leaders develop the courage for moral leadership to flourish.

6-1 MORAL LEADERSHIP TODAY The names of once-revered corporations such as AIG, Lehman Brothers, Bear Stearns, and Countrywide have become synonymous with greed, deceit, arrogance, or lack of moral conscience. Although the high-profile stories of ethical miscon- duct in organizations have slowed a bit, there are plenty of leaders still on the hot seat because of immoral or unethical behavior: Brian Dunn of Best Buy and Mark Hurd of Hewlett-Packard both resigned under pressure due to inappropriate relationships with female employees. Scott Thompson resigned as CEO of Yahoo after only four months on the job because reports revealed he had inaccurately claimed on his resume that he had a degree in computer science.3 And at the non- profit Wyckoff Heights Medical Center in one of the poorest neighborhoods in Brooklyn, an investigation revealed a pattern of insider dealing that lavishly bene- fited top managers, board members, and local politicians while damaging the orga- nization to the point that it might be closed, further limiting health-care options for the poor.4

6-1a The Ethical Climate in Business Leaders face many pressures that challenge their ability to do the right thing. The most dangerous obstacles for leaders are personal weakness and self-interest rather than full-scale corruption.5 Pressures to cut costs, increase profits, meet the demands of vendors or business partners, and look successful can all contribute to ethical lapses. For example, leading up to and during the 2008 housing and financial crisis, leaders at Standard & Poor’s, the ratings agency, were reported to have ignored ethical danger signals and chosen to put short-term interests ahead of truthful ratings in order to produce ratings that were desired by banks putting together mortgage deals. A civil suit filed by the U.S. Justice Department alleged that S&P leaders knowingly issued unwarranted high ratings to maintain business.6

Their actions and those of leaders in many other companies contributed to the col- lapse of the housing market and a worldwide financial crisis.

Another challenge in today’s business environment is an overemphasis on pleas- ing shareholders, which may cause some managers to behave unethically toward

NEW LEADER ACTION MEMO As a leader, you can put ethical values into action and set the example you want followers to live by. You can resist pressures to act unethically just to avoid criticism or achieve short-term gains.


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customers, employees, and the broader society.7 Managers are under enormous pressure to meet short-term earnings goals, and some even use accounting gimmicks or other techniques to show returns that meet market expectations rather than ones that reflect true performance.8 All leaders want their organizations to appear successful, and they can sometimes do the wrong thing just so they will look good to others. The question for leaders is whether they can summon the fortitude to do the right thing despite outside pressures. ‘‘Life is lived on a slippery slope,’’ says Harvard Business School’s Richard Tedlow. ‘‘It takes a person of character to know what lines you don’t cross.’’9

Sticking to one’s core values in the face of pressure is one key part of leading authentically and ethically. Jon Huntsman, who served in the administration of President Richard Nixon and experienced the Watergate scandal of the 1970s, says ‘‘an amoral atmosphere permeated the White House’’ at that time. Huntsman left his position after being pressured to entrap a rival politician. Huntsman is one of the leaders represented in the book Discover Your True North, which is described further in the Leader’s Bookshelf.

6-1b Leaders Set the Ethical Tone Top leaders in particular are facing closer scrutiny because what goes on at the top sets the standard for the rest of the organization. In a study of Fortune

LEADER’S BOOKSHELF Discover Your True North

by Bill George with Peter Sims

Authentic, ethical leadership has become a popular topic in today’s world of organizational scandals. According to Bill George, former CEO of Medtronic and a Harvard Business School profes- sor, authentic leaders are people who are guided by their ‘‘true north,’’ which refers to their most sacred, deeply held values. Discover Your True North, written by George with Peter Sims, describes the journey people take to become authentic leaders who know and under- stand themselves, act consistent with their ethical values despite the pres- sures of the real world, and empower and inspire others with a higher purpose.

HOW TO BE AN AUTHENTIC, ETHICAL LEADER ‘‘You cannot fake it to make it, because people sense intuitively whether you are genuine,’’ George and Sims say. They describe what it means to be an authentic leader and use numerous stories and anecdotes to illustrate their points. Here are three facets of their

leadership plan for becoming an authentic ethical leader: • Know Yourself. Self-awareness is

crucial because leadership is an out- ward manifestation of who you are as a person. Leaders first have to know who they are, understand how their life experiences have shaped them, and recognize their strengths and weaknesses. To be come more self-aware, David Pottruck, former CEO of Charles Schwab, forced him- self to ask for regular feedback from everyone around him after he learned that colleagues viewed his aggressive style as self-serving.

• Honor Your Values. Authentic lead- ers know what matters to them, the ethical values that they hold most dear, and the principles that guide their lives and leadership. Moreover, they stand by these deeply held val- ues despite outside pressures and seductions. The authors tell the dis- heartening story of Lance Armstrong, who allowed a ‘‘ruthless quest for glory’’ to override his personal values.

• Find Your Career Sweet Spot. Lead- ers also must know what drives them and how they can make their best contribution. They do so by balancing external motivations such as power or money with internal motivations such as helping others or making a difference in the world. Warren Buffett found his sweet spot with his realization that ‘‘I don’t want to live like a king. I just want to invest.’’

FIND YOUR OWN TRUE NORTH ‘‘Discovering your True North is hard work,’’ George notes at the beginning of this book. ‘‘It may take you many years to find it, as was the case for me.’’ How- ever, as the interviews with hundreds of leaders reveal, leadership is an exciting journey. The leadership insights and les- sons in this book can serve as a com- pass to keep you on the right path to being an authentic leader who can make a positive, lasting difference.

Source: Discover Your True North, by Bill George with Peter Sims, is published by Jossey-Bass.

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100 companies, fully 40 percent were found to have been engaged in activities that could be considered unethical.10 Moreover, researchers concluded that the misdeeds in many cases could be traced to the failure of top executives to enforce and live up to high ethical standards.

Leaders carry a tremendous responsibility for setting the ethical climate and acting as positive role models for others.11 Leaders signal what matters through their behavior, and when leaders operate from principles of selfishness and greed, many employees come to see that type of behavior as okay. At the now-defunct Bear Stearns, for example, senior executives were openly arrogant and ambitious for personal successes, and they built a ‘‘sharp-elbowed, oppor- tunistic culture’’ in which rules and basic standards of fairness, honesty, and honor could be bent for the sake of achieving personal gain.12 Contrast the Bear Stearns approach to the culture Kip Tindell has built at the Container Store.

Kip Tindell has built a culture of integrity and ethical leadership at the Container Store by putting people and relationships above just making money. Exhibit 6.1 compares ethical and unethical leadership. The behaviors listed in column 1 contribute to an organizational climate of trust, fairness, and doing the right thing, such as the one at Container Store. Column 2 lists the opposite

IN THE LEAD Kip Tindell, Container Store At the Container Store, CEO Kip Tindell renamed Valentine’s Day ‘‘We Love Our Employees Day.’’ Managers bring gifts and chocolates and make a point of telling employees they love them. It’s just one symbol of the importance Container Store puts on treating people and relationships with love and respect.

When Tindell cofounded the Container Store in 1978, he knew he wanted to build a different kind of company, one where employees were treated well and paid well and business was conducted with ethical values in mind. Tindell’s approach, which he calls the Foundation Principles, is a key part of the corporate culture at Container Store and aligns with a philosophy that has been called conscious capitalism. It means having a higher purpose besides just making money by focusing on employees, customers, suppliers, and the community as well as on shareholders; seeking to bring out the best in people; and fostering trust and respect. It’s a model ‘‘for conducting business without any trade-offs.’’ Managers make clear what the company stands for and everyone is expected to honor the values 100 percent of the time.

In addition to the We Love Our Employees Day, Container Store has an annual chili cook-off and other special events. Whenever there’s news to celebrate, people are gathered together for games and snacks and lots of confetti. Tindell believes it is important to recognize employees’ efforts not only because it makes them happier and more fulfilled but also because that trickles down and makes better, stronger families and communities. ‘‘I enjoy making money for myself and the people around me,’’ Tindell says. ‘‘I’m not saying this is the only way to make money. I’m saying this is the best way.’’13


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behaviors, which contribute to a climate ripe for ethical and legal abuses, such as at Bear Stearns.14

Ethical leaders aren’t preoccupied with their own importance. They keep the focus on employees, customers, and the greater good rather than taking every opportunity to satisfy their self-interest, feed their greed, or nourish their egos. Unethical leaders typically pay more attention to gaining benefits for themselves than to the company or the larger society. For example, an investigation of New York State’s pension fund for public workers found that former New York Comp- troller Alan Hevesi and other political leaders and advisors accepted millions in sham consulting fees, travel expenses, campaign contributions, and other favors in exchange for giving specified investment firms parts of the fund to manage, enabling the firms to earn hefty management fees. Hevesi and advisor Hank Morris both pleaded guilty to felony corruption charges. Hevesi was paroled in February 2013 after serving 20 months in prison.15

Also shown in Exhibit 6.1, ethical leaders are honest with employees, partners, customers, vendors, and shareholders. They strive for fairness and take care to honor their agreements or commitments to others. Unethical leaders, on the other hand, often practice deception. In a USA Today survey some years ago, 82 percent of CEOs said they lied about their golf scores. Sure, it’s a small thing, but little by little, dishonesty can become a way of life and business.16

Ethical leaders tend to share the credit for successes and accept the blame when things go wrong, whereas unethical leaders often take credit for followers’ accomplishments and diminish the dignity of others by treating people with dis- courtesy and disrespect. Ethical leaders help followers develop their potential and have a role in decision making, whereas unethical leaders often see followers as a means to an end.

Finally, one of the primary ways leaders contribute to an ethical organization is by speaking up against acts they believe are wrong. If a leader knows someone is being treated unfairly by a colleague and does nothing, the leader is setting a precedent for others to behave unfairly as well. Peers and subordinates with lax ethical standards feel free to act as they choose. Consider what happened at Penn- sylvania State University. In 2001, Mike McQueary, at the time a graduate assist- ant in the football program, reported to the head football coach Joe Paterno that he saw defensive coordinator Jerry Sandusky possibly sexually abusing a young

EXHIBIT 6.1 Comparing Ethical versus Unethical Leadership

The Ethical Leader The Unethical Leader

Possesses humility Is arrogant and self-serving Maintains concern for the greater good Excessively promotes self-interest Is honest and straightforward Practices deception Fulfills commitments Breaches agreements Strives for fairness Deals unfairly Takes responsibility Shifts blame to others Shows respect for each individual Diminishes others’ dignity Encourages and develops others Neglects follower development Serves others Withholds help and support Shows courage to stand up for what is right Lacks courage to confront unjust actsShows courage to stand up for what is right Lacks courage to confront unjust acts

Source: Based on Donald G. Zauderer, ‘‘Integrity: An Essential Executive Quality,’’ Business Forum (Fall 1992), pp. 12–16.

NEW LEADER ACTION MEMO Go to Leader’s Self-Insight 6.1 and complete the questions to learn whether your behavior and decisions suggest that you will be an ethical leader.


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boy in the locker room. Athletic director Tim Curley and at least two top adminis- trators also soon learned of the incident. But no one took the steps necessary to stop the behavior, and Sandusky went on to molest more boys before one of his victims brought the abuse to light. More than 10 years after McQueary’s initial report, Sandusky was convicted on 45 counts of child sexual abuse. The courts and the public were astonished to learn how many people apparently knew about Sandusky’s behavior and did nothing beyond talking with Sandusky and urging him to get professional help.17

How can leaders turn a blind eye to such behavior? The fact is that most managers have a natural inclination to protect their organizations. In addition, lead- ers have to fight against a tendency for people ‘‘to see what we want to see, not see what we don’t want to see, and to hope a problem will go away on its own,’’ a tend- ency that causes leaders such as those at Penn State to make decisions ‘‘that later come to be seen by others as ethically indefensible.’’18 Penn State leaders aren’t alone in this tendency to protect the organization even at the risk of allowing un- ethical or illegal behavior to continue. For many reasons, it is often hard to stand up for what is right, but this is a primary way in which leaders create an environment of integrity.

LEADER’S SELF-INSIGHT 6.1 Ethical Maturity

Instructions: Think about how you typically behave and make decisions and respond honestly to the following statements. Answer as you actually behave, not as you would want to behave.

Mostly False

Mostly True

1. I can clearly state the principles and values that guide my actions. ______ ______

2. I promptly own up to my own mistakes and failures. ______ ______

3. I am able to quickly ‘‘forgive and forget’’ when someone has made a serious mistake that affects me. ______ ______

4. When making a difficult decision, I take the time to assess my principles and values. ______ ______

5. I have a reputation among my friends and coworkers for keeping my word. ______ ______

6. I intentionally reflect on my mistakes to improve my performance. ______ ______

7. When someone asks me to keep a confidence, I always do so completely. ______ ______

8. When things go wrong, I seldom blame others or circumstances. ______ ______

9. I am able to forgive myself soon after a serious mistake. ______ ______

10. My coworkers would say that my behavior is very consistent with my values. ______ ______

Scoring and Interpretation Give yourself 1 point for each Mostly True answer you checked above. Total Score ______. Your score for the ethi- cal maturity scale suggests whether you are on track to become an ethical leader as described in Exhibit 6.1. A high score of 8–10 is suggestive of someone who is more concerned with values and other people than with self- interest. A score of 0–3 would be considered low, and a score of 4–7 is the middle ground. Your score also provides a clue about your level of moral development shown in Exhibit 6.4. The postconventional level of development means that you consider principles and values, take personal responsibility, and do not blame others. A high score suggests that you have a highly developed moral sense. A lower score suggests you may be at the conven- tional or even preconventional level. Reflect on what your score means to you.

Source: Based on and adapted from Doug Lennick and Fred Kiel, Moral Intelligence: Enhancing Business Performance and Leadership Success (Upper Saddle River, NJ: Cordon School Publications, 2005), pp. 251–263.

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6-2 ACTING LIKE A MORAL LEADER At Penn State, numerous leaders were accused of putting winning football games and protecting the school’s reputation ahead of morality. At other organizations, leaders may put meeting economic goals ahead of doing the right thing. Companies that get into ethical trouble typically have top leaders who make quarterly earnings and the share price their primary purpose of business and the most important measure of individual and organizational success.19 When leaders forget that business is about values and not just economic performance, organizations and the broader society are hurt in the process.

Moral leadership doesn’t mean ignoring profit and loss, share price, production costs, and other hard, measurable facts, but it does require recognizing and adhering to ethical values and acknowledging the importance of human meaning, quality, and higher purpose.20 Henry Ford’s century-old comment seems tailor-made for today’s poor ethical climate: ‘‘For a long time people believed that the only purpose of industry was to make a profit. They are wrong. Its purpose is to serve the general welfare.’’ 21

Despite the corporate realities of greed, competition, and the drive to achieve goals and profits, leaders can act based on moral values and encourage others to develop and use moral values and adhere to ethical standards of conduct in the workplace. The single most important factor in ethical decision making in organiza- tions is whether leaders show a commitment to ethics in their talk and especially their behavior.22 Employees learn about the values that are important in the organi- zation by watching leaders.

Exhibit 6.2 lists some specific ways leaders act to build an environment that allows and encourages people to behave ethically. Leaders create organizational sys- tems and policies that support ethical behavior, such as creating open-door policies that encourage people to talk about anything without fear, establishing clear ethics codes, rewarding ethical conduct, and showing zero tolerance for violations. Many companies have hired high-level chief compliance officers to police managers and employees.23 Most companies have established codes of ethics to guide employee behavior or lists of core values that employees are expected to honor. Exhibit 6.3 lists the core values for More Than Wheels, which has a mission ‘‘To help struggling individuals & families break the cycle of poor financial decision making by using

EXHIBIT 6.2 How to Act Like a Moral Leader

1. Articulate and uphold high moral principles. 2. Focus on what is right for the organization as well as all the people involved. 3. Set the example you want others to live by. 4. Be honest with yourself and others. 5. Drive out fear and eliminate undiscussables. 6. Establish and communicate ethics policies. 7. Develop a backbone—show zero tolerance for ethical violations. 8. Reward ethical conduct. 9. Treat everyone with fairness, dignity, and respect, from the lowest to the highest level of the organization. 10. Do the right thing in both your private and professional life—even if no one is looking.

Source: Based on Linda Klebe TrevinSource: Based on Linda Klebe TreviñSource: Based on Linda Klebe Trevino, Laura Pincus Hartman, and Michael Brown, ‘‘Moral Person and Moral Manager: How Executives Develop a Reputation for Ethical Leadership,’’ California Management Review 42, no. 4 (Summer 2000), pp. 128–142; Christopher Hoenig, ‘‘Brave Hearts,’’ CIO (November 1, 2000), pp. 72–74; and Patricia Wallington, ‘‘Honestly?!’’ CIO (March 15, 2003), pp. 41–42.

NEW LEADER ACTION MEMO As a leader, you can drive fear out of the organization so that followers feel comfortable reporting problems or ethical abuses. You can establish clear ethics policies, reward ethical conduct, and show zero tolerance for violations.


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the car buying process to catalyze lasting change, financial stability and control.’’24

Most importantly, leaders articulate and uphold high ethical standards, and they behave morally even if they think no one is looking. If leaders cut corners or bend the rules when they think they won’t get caught, they and their organizations will ultimately suffer the consequences.

There is some evidence that doing right by employees, customers, and the com- munity, as well as by shareholders, is good business. For example, a recent study of the top 100 global companies that have made a commitment to environmental sus- tainability found they had significantly higher sales growth, return on assets, profits, and cash flow from operations in at least some areas of business.25 Another review of the financial performance of large U.S. corporations considered ‘‘best corporate citizens’’ found that they enjoy both superior reputations and superior financial per- formance.26 Similarly, Governance Metrics International, an independent corporate governance ratings agency in New York, reports that the stocks of companies run on more selfless principles perform better than those run in a self-serving manner.27

6-3 BECOMING A MORAL LEADER Leadership is not merely a set of practices with no association with right or wrong. All leadership practices can be used for good or evil and thus have a moral dimen- sion. Leaders choose whether to act from selfishness and greed to diminish others or to behave in ways that serve others and motivate people to expand their poten- tial as employees and as human beings.28 Moral leadership is about distinguishing right from wrong and doing right, seeking the just, the honest, the good, and the right conduct in achieving goals and fulfilling purpose. Leaders have great

EXHIBIT 6.3 More Than Wheels Core Values

At More Than Wheels our Core Values guide us in achieving our mission by working with clients and partners towards the goal of building lasting financial outcomes for our clients.

Trust We respect and believe in one another and in our customers. We speak the truth to each other, even when it’s hard. We value one another’s opinions.

Nonjudgmental We deal with current reality, without judgment. We are pragmatic and forward-looking.

Accountability We live up to our agreements. We are relentless about reaching our goals and creatively solving problems. We do the very best we can for our clients.

Teamwork We value collaboration. Our success relies on teamwork.

Learning We learn from one another and from our successes and failures. We strive for continual and meaningful improvement in our work.

Source: More Than Wheels Mission and Core Values, http://www.morethanwheels.org/mission (Retrieved May 18, 2013).

Moral leadership distinguishing right from wrong and doing right; seek- ing the just, honest, and good in the practice of leadership


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influence over others, and moral leadership uplifts people and enhances the lives of others. Immoral leadership takes away from others in order to enhance oneself.29

Leaders most often know what is right; the question becomes how they choose to act on it and what internal strengths and external policies and processes are in place to enable them to follow through on doing the right thing.30 One internal characteristic that influences a leader’s capacity to make moral choices is the individ- ual’s level of moral development.31 Exhibit 6.4 shows a simplified illustration of one model of personal moral development.

At the preconventional level, individuals are egocentric and concerned with receiving external rewards and avoiding punishments. They obey authority and follow rules to avoid detrimental personal consequences or satisfy immediate self- interests. The basic orientation toward the world is one of taking what one can get. Someone with this orientation in a leadership position would tend to be autocratic toward others and to use the position for personal advancement.

At level two, the conventional level, people learn to conform to the expectations of good behavior as defined by colleagues, family, friends, and society. People at this level follow the rules, norms, and values in the corporate culture. If the rules are to not steal, cheat, make false promises, or violate regulatory laws, a person at this level will attempt to obey. People at the conventional level adhere to the norms of the larger social system. If the social system says it is okay to inflate bills to the government or make achieving the bottom line more important than honesty and integrity, they will usually go along with that norm also. Consider the cheating scan- dals that have rocked several respected schools, including the Air Force Academy, Stuyvesant High School in Manhattan, and Harvard University. Interviews with students and former students at Stuyvesant indicate that many of them were simply going along with the system, a culture in which students band together and cheat in a common understanding that it is a ‘‘necessary evil’’ to reach their goals. Many classes have private Facebook groups, for instance, where students can post full sets of answers to tests—one student said it is expected that people will help each other out.32 Howard Gardner, a professor at the Graduate School of Education, says

EXHIBIT 6.4 Three Levels of Personal Moral Development

Level 1: Preconventional Follows rules to avoid punishment. Acts in own interest. Blind obedience to authority for its own sake.

Level 3: Postconventional Follows internalized universal principles of justice and right. Balances concern for self with concern for others and the common good. Acts in an independent and ethical manner regardless of ex- pectations of others.

Level 2: Conventional Lives up to expectations of others. Fulfills duties and obligations of social system. Upholds laws.

Sources: Based on Lawrence Kohlberg, ‘‘Moral Stages and Moralization: The Cognitive-Developmental Approach,’’ in Moral Development and Behavior: Theory, Research, and Social Issues, ed. Thomas Likona (Austin, TX: Holt, Rinehart and Winston, 1976), pp. 31–53; and Jill W. Graham, ‘‘Leadership, Moral Development, and Citizenship Behavior,’’ Business Ethics Quarterly 5, no. 1 (January 1995), pp. 43–54.

Preconventional level the level of personal moral development in which indi- viduals are egocentric and concerned with receiving external rewards and avoid- ing punishments

Conventional level the level of personal moral development in which peo- ple learn to conform to the expectations of good behav- ior as defined by colleagues, family, friends, and society


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‘‘the ethical muscles [of students] have atrophied’’ because of a broader societal culture that exalts success at any cost—going along with the system.33

At the postconventional level, sometimes called the principled level, leaders are guided by an internalized set of principles universally recognized as just and right. People at this level may even disobey rules or laws that violate these principles. These internalized values become more important than the expectations of other people in the organization or community. Would students at a postconventional level of moral development cheat on tests as those mentioned above did, since others were cheating to get ahead? A recent study suggests they would not. In a stock trading simulation, researchers gave randomly selected business school students ‘‘insider information’’ on actual stock earnings, allowing them to accept or reject the information. Those students who rejected the insider information scored higher on moral development, in the postconventional range, whereas those who accepted the information scored at lower levels.34

Most adults operate at level two of moral development, and some have not advanced beyond level one. Only about 20 percent of American adults reach the third, postconventional level of moral development, although most of us have the capacity to do so.35 A leader at this level is visionary, empowering, and committed to serving others and a higher cause. These leaders can impartially apply universal standards to resolve moral conflicts and balance self-interest with a concern for others and for the common good. Research has consistently found a direct relation- ship between higher levels of moral development and more ethical behavior on the job, including less cheating, a tendency toward helpfulness to others, and the report- ing of unethical or illegal acts, known as whistleblowing.36

6-4 SERVANT LEADERSHIP What is a leader’s moral responsibility toward followers? Is it to limit and control them to meet the needs of the organization? Is it to pay them a fair wage? Or is it to enable them to grow and create and expand themselves as human beings?

Much of the thinking about leadership today implies that moral leadership involves turning followers into leaders, thereby developing their potential rather than using a leadership position to control or limit people. The ultimate expres- sion of this leadership approach is called servant leadership, which can best be understood by comparing it to other approaches. Exhibit 6.5 illustrates a contin- uum of leadership thinking and practice. Traditional organizations were based on the idea that the leader is in charge of subordinates and the success of the organi- zation depends on leader control over followers. In the first stage, subordinates are passive—not expected to think for themselves but simply to do as they are told. Stage two in the continuum involves subordinates more actively in their own work. Stage three is stewardship, which represents a significant shift in mindset by moving responsibility and authority from leaders to followers.

Servant leadership represents a stage beyond stewardship, where leaders give up control and make a choice to serve employees. Along the continuum, the focus of leadership shifts from leader to followers. In the following sections, we discuss each stage of this leadership continuum in more detail.

6-4a Authoritarian Management The traditional understanding of leadership is that leaders are good managers who direct and control their people. Followers are obedient subordinates who follow orders.

Postconventional level the level of personal moral development in which lead- ers are guided by an inter- nalized set of principles universally recognized as right


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In Chapter 2, we discussed the autocratic leader, who makes the decisions and announ- ces them to subordinates. Power, purpose, and privilege reside with those at the top of the organization. At this stage, leaders set the strategy and goals, as well as the methods and rewards for attaining them. Organizational stability and efficiency are paramount, and followers are routinized and controlled along with machines and raw materials. Subordinates are given no voice in creating meaning and purpose for their work and no discretion as to how they perform their jobs. This leadership mindset emphasizes tight top-down control, employee standardization and specialization, and management by impersonal measurement and analysis.

6-4b Participative Management Since the 1980s, many organizations have made efforts to actively involve employees. Leaders have increased employee participation through employee suggestion programs, participation groups, and quality circles. Teamwork has become an important part of how work is done in most organizations. Studies indicate that around 70 percent of the largest U.S. corporations have adopted some kind of employee participation program or shifted to a team design. However, many of these programs do not redis- tribute power and authority to lower-level workers.37 The mindset is still paternalistic in that leaders determine purpose and goals, make final decisions, and decide rewards. Employees are expected to make suggestions for quality improvements, act as team players, and take greater responsibility for their own jobs, but they are not allowed to be true partners in the enterprise.38

6-4c Stewardship Stewardship is a pivotal shift in leadership thinking. Stewardship means that leaders are guardians and curators of organizational resources and values and they place the long-term interests of the organization first.39 As stewards, leaders empower

EXHIBIT 6.5 Changing Leader Focus from Self to Others

Stage 1


Stage 2


Stage 3


Stage 4


Control Centered in the Leader

Control Centered in the Follower

Obedient subor- dinates

Participative leader

Authoritarian leader

Self-responsible employees

Whole employees

Servant leader

Stewardship leader

Team players

Stewardship a belief that leaders are deeply accountable to others as well as to the organization, without trying to control others, define meaning and purpose for others, or take care of others


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followers to make decisions and have control over how they do their own jobs. Four principles provide the framework for stewardship.

1. Adopt a partnership mindset. Partnership can happen only when power and control shift away from formal leaders to core employees. As partners, leaders and followers are totally honest with one another, jointly responsible for defining vision and purpose, and mutually accountable for outcomes that benefit the whole.

2. Give decision-making power and the authority to act to those closest to the work and the customer. This means reintegrating the ‘‘managing’’ and the ‘‘doing’’ of work, so that everyone becomes a leader and is also doing some of the core work of the organization. Nobody gets paid simply to plan and manage the work of others.

3. Tie rewards to contributions rather than formal positions. With stewardship, everyone’s fortunes are connected to the success of the enterprise. Stewardship involves redistributing wealth by designing compensation so that people can make significant gains when they make exceptional contributions.

4. Expect core work teams to build the organization. Teams of employees define goals, maintain controls, create a nurturing environment, and organize and reorganize themselves to respond to a changing environment and marketplace.

Stewardship leaders guide the organization without dominating it and facilitate followers without controlling them. At Julia’s House, a children’s hospice in Dorset (United Kingdom) that has won numerous awards including The Sunday Times Best Companies award, the CEO and all department heads sit in an open-plan office with other staff to signal a partnership approach. The organization chart was redesigned to read left to right rather than the usual vertical hierarchy.40 Stewardship allows for a relationship between leaders and followers in which each makes significant, self- responsible contributions to organizational success. In addition, it gives followers a chance to use their minds, bodies, and spirits on the job, thereby allowing them to be whole human beings.

6-4d The Servant Leader Servant leadership takes stewardship assumptions about leaders and followers one step further. Robert Wood Johnson, who built Johnson & Johnson from a small private company into one of the world’s greatest corporations, summarized his ideas about management in the expression ‘‘to serve.’’ In a statement called ‘‘Our Management Philosophy,’’ Johnson went on to say, ‘‘It is the duty of the leader to be a servant to those responsible to him.’’ 41 Johnson died decades ago, but his beliefs about the moral responsibility of a leader are as fresh and compelling (and perhaps as controversial) today as they were when he wrote them.

Servant leadership is leadership upside down. Servant leaders transcend self- interest to serve the needs of others, help others grow and develop, and provide opportunity for others to gain materially and emotionally. Fred Keller has built a $250 million plastics manufacturing company, Cascade Engineering, by continu- ously asking one question: What good can we do? Keller started the business 40 years ago with six employees. Today, it has 1,000 employees in 15 business divi- sions. Keller has made serving others a cornerstone of the business. The company offers jobs to welfare recipients, and Keller donates large amounts to various philan- thropic causes, both as an individual and through Cascade.42

NEW LEADER ACTION MEMO As a leader, you can apply the principles of stewardship and treat followers as true partners by sharing power and authority for setting goals, making decisions, and maintaining control over their own work and performance.

Servant leadership leadership in which the leader transcends self-inter- est to serve the needs of others, help others grow, and provide opportunities for others to gain materially and emotionally


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There has been an explosion of interest in the concept of leader as servant in recent years.43 Servant leadership was first described by Robert Greenleaf in his book, Servant Leadership. 44 There are four basic precepts in Greenleaf’s model:45

1. Put service before self-interest. In this view, the organization exists as much to provide meaningful work to the person as the person exists to perform work for the organization.

2. Listen first to affirm others. One of the servant leader’s greatest gifts to others is listening authentically.

3. Inspire trust by being trustworthy. Servant leaders build trust by doing what they say they will do, being honest with others, and focusing on the well-being of others.

4. Nourish others and help them become whole. Servant leaders care about followers and believe in the unique potential of each person to have a positive impact on the world.

The servant leader’s top priority is service to employees, customers, share- holders, and the general public. Leadership flows out of the act of service because it enables other people to grow and become all they are capable of being.46 For organizational psychologist Adam Grant, serving others provides powerful motiva- tion and creative energy, as described in the following example.

IN THE LEAD Adam Grant, Wharton School of the University of Pennsylvania Adam Grant has been studying the power of service to others since he was an undergraduate student at Harvard. He took a job selling advertisements for a travel guide series but didn’t do so well. Only when he met another student and learned that her job at the same company was essential for paying her way through college did he find purpose and meaning in his work. He eventually sold the largest advertising package in company history. ‘‘When I was representing the interests of students, I was willing to fight to protect them,’’ he says.

Grant went on to earn a graduate degree in organizational psychology and now teaches at the Wharton School, where he is the youngest-tenured and highest-rated professor. Grant goes far beyond the typical professor in helping students. He writes lengthy letters of recommendation for students or former students approximately 100 times a year. He provides introductions for students to influential people he knows. He answers hundreds of e-mail messages a day from students, colleagues, and even people he doesn’t know, providing information or assistance. Helpfulness is the watchword Grant lives by. Moreover, he argues that the greatest untapped source of motivation and productivity in organizations is service to others.

Grant has hard data from several experiments to back up his claim that focusing on the contributions we make to improve other people’s lives makes us more motivated and productive. For example, call center workers seeking donations to fund college scholarships increased their effort and brought in 171 percent more revenue after hearing a student talk about how his life had been changed by a scholarship—even though the workers themselves didn’t think they had been influenced by the student’s brief talk.47


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Grant’s recent book about the power of giving versus taking was described in the Leader’s Bookshelf in Chapter 2. Grant’s insights suggest that servant leadership can mean something as simple as encouraging others in their personal development and helping them understand the larger purpose in their work. ServiceMaster, which cleans and maintains hospitals, schools, and other buildings, provides a good exam- ple. Leaders care how employees feel about themselves, about their work, and about the people they interact with. They instill a sense of dignity, responsibility, and mean- ingfulness in menial tasks like scrubbing floors and cleaning toilets. One employee who works in a hospital, for example, says she sees herself as part of a team that helps sick people get well.48

6-5 LEADING WITH COURAGE Leaders sometimes have to reach deep within themselves to find the courage and strength of character to serve others, resist temptation, behave morally, or stand up

LEADER’S SELF-INSIGHT 6.2 Your Servant Leadership Orientation

Instructions: Think about situations in which you were in a formal or informal leadership role in a group or organization. Imagine using your personal approach as a leader. To what extent does each of the following statements characterize your leadership? Please answer whether each item is Mostly False or Mostly True for you.

Mostly False

Mostly True

1. My actions meet the needs of others before my own. ______ ______

2. I explicitly enable others to feel ownership for their work. ______ ______

3. I like to consult with people when making a decision. ______ ______

4. I’m a perfectionist. ______ ______ 5. I like to be of service to others. ______ ______ 6. I try to learn the needs and

perspectives of others. ______ ______ 7. I consciously utilize the skills and

talents of others. ______ ______ 8. I am assertive about the right way

to do things. ______ ______ 9. I give away credit and recognition

to others. ______ ______ 10. I believe that others have good

intentions. ______ ______ 11. I quickly inform others of

developments that affect their work. ______ ______ 12. I tend to automatically take charge. ______ ______ 13. I encourage the growth of others,

expecting nothing in return. ______ ______

14. I value cooperation over competition as a way to energize people. ______ ______

15. I involve others in planning and goal setting. ______ ______

16. I put people under pressure when needed. ______ ______

Scoring and Interpretation There are four subscale scores that represent four dimen- sions of leadership—authoritarian, participative, stewardship, and servant. For each dimension below, give yourself one point for each Mostly True response to the items indicated.

My leadership scores are:

Authoritarian, items 4, 8, 12, 16: ______ Participative, items 2, 6, 10, 14: ______ Stewardship, items 3, 7, 11, 15: ______ Servant, items 1, 5, 9, 13: ______

These scores represent the four aspects of leadership called authoritarian, participative, stewardship, and servant as described in the text and illustrated in Exhibit 6.5. A score of 3!4 on any of these dimensions would be considered above average, and a score of 0–1 is below average.

Compare your four scores to each other to understand your approach to stewardship and servant leadership. On which of the four dimensions would you like to have the highest score? The lowest? Study the specific questions on which you scored Mostly True or Mostly False to analyze your pattern of strengths and weaknesses. It is not possible to display all four dimensions of leadership simultaneously, so you should think about the dimension you want to emphasize to reflect your leader ideal.

NEW LEADER ACTION MEMO As a leader, you can put the needs, interests, and goals of others above your own and use your personal gifts to help others achieve their potential. Complete the questionnaire in Leader’s Self-Insight 6.2 to evaluate your leadership approach along the dimensions of authoritarian leadership, participative leadership, stewardship, and servant leadership.

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for ethical principles when others may ridicule them or when they may suffer finan- cially or emotionally for their actions.

Some would say that without courage, leadership cannot exist.49 However, for many leaders, particularly those working in large organizations, the importance of courage is easily obscured—the main thing is to get along, fit in, and do whatever brings promotions and pay raises. In a world of stability and abundance, leaders can often forget even the meaning of courage, so how can they know where to find it when they need it? In the following sections, we examine the nature of leadership courage and discuss some ways courage is expressed in organizations. The final sec- tion of the chapter explores the sources of leadership courage.

6-5a What Is Courage? Many people know intuitively that courage can carry you through deprivation, ridi- cule, and rejection and enable you to achieve something about which you care deeply. Courage is both a moral and a practical matter for leaders. A lack of courage is what allows greed and self-interest to overcome concern for the common good.50 Courage is the mental and moral strength to engage in, persevere through, and withstand danger, difficulty, or fear. Courage doesn’t mean the absence of doubt, confusion, or fear, but the ability to act in spite of them when it is necessary for the greater good. In fact, if there were no fear or doubt, courage would not be needed.

The courage to take risks has always been important for living a full, rewarding life, as discussed in the Consider This box. Yet the courage to resist jumping on the bandwagon and taking unnecessary or unethical risks is equally important. For today’s organizations, things are constantly changing, and leaders thrive by solving problems through trial and error. They create the future by moving forward in the face of uncertainty, by taking chances, by acting with courage.51

ConsiderThis! Is It Worth the Risk?

To laugh . . . is to risk appearing the fool. To weep . . . is to risk appearing sentimental. To reach out . . . is to risk involvement. To expose feelings . . . is to risk exposing your true self. To place your ideas and dreams before a crowd . . . is to risk rejection. To love . . . is to risk not being loved in return. To live . . . is to risk dying. To hope . . . is to risk despair. To try . . . is to risk failure. But risks must be taken, because the greatest hazard in life is to risk nothing. Those who risk

nothing do nothing and have nothing. They may avoid suffering and sorrow, but they cannot learn, feel, change, grow, or love. Chained by their certitude, they are slaves; they have forfeited their freedom. Only one who risks is free.

Leadership must start from within— from within the leader’s heart— where real courage resides. Peter Voyer, senior artillery officer in the Canadian Army

Courage the mental and moral strength to engage in, per- severe through, and with- stand danger, difficulty, or fear


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People experience all kinds of fears, including fear of death, mistakes, failure, embarrassment, change, loss of control, loneliness, pain, uncertainty, abuse, rejec- tion, success, and public speaking. It is natural and right for people to feel fear when real risk is involved, whether the risk is losing your life, losing your job, losing a loved one, or losing your reputation.

However, many times it isn’t fear as an actual threat that holds people back, but rather F.E.A.R., which stands for False Evidence Appearing Real. This kind of ‘‘fear’’ arises not from a true threat but from our own thoughts. This type of fear might be better termed anxiety, and this is what writer Seth Godin had to say about it: ‘‘Anxiety is nothing but repeatedly re-experiencing failure in advance. What a waste.’’52 This reflects that many fears are learned and prevent people from doing what they want. Adam Grant, the Wharton professor profiled earlier in this chapter, for example, had a phobia about speaking in public, so he forced himself as a gradu- ate student to lecture as much as possible and take advantage of every opportunity to speak publicly so he could learn to step through the fear (really F.E.A.R.) that was holding him back from achieving his goals.53 True leaders step through these learned fears to accept responsibility, take risks, make changes, speak their minds, and fight for what they believe.

Courage Means Accepting Responsibility Leaders make a real difference in the world when they are willing to step up and take personal responsibility. Some people just let life happen to them; leaders make things happen. Courageous leaders create opportu- nities to make a difference in their organizations and communities. One example is Malala Yousafzai, the young girl shot by the Taliban who was described in the chapter-opening example. A business example is John W. Rowe, former chairman and CEO of Aetna. When Rowe, a gerontologist and professor of medicine, was hired in 2000, Aetna was in shambles. The investment community viewed Rowe’s appoint- ment with skepticism. One analyst even told Rowe he expected the company’s performance to decline with him in charge. Rowe didn’t let that bother him; he simply accepted responsibility for fixing what was wrong and redefined the mission and core values to focus on quality care, which he made the guiding principle for all company decisions. By the time Rowe retired in 2006, Aetna had gone from last place to first in trustworthiness and went from losing $1 million to making $5 million a day.54

Courage Often Means Nonconformity Leadership courage means going against the grain, breaking traditions, reducing boundaries, and initiating change. Leaders are willing to take risks for a larger, ethical purpose, and they encourage others to do so.

Going against the status quo can be difficult. Consider the case of Paula Reid, who went against the ‘‘boys will be boys’’ status quo at the U.S. Secret Service in breaking open the Cartagena prostitution scandal.

IN THE LEAD Paula Reid, U.S. Secret Service Prostitution is legal in Cartagena, Colombia, but when a U.S. Secret Service agent allegedly refused to pay, it set off a scandal that got several agents fired and tarnished the agency’s reputation. Paula Reid, the new supervising manager for the Miami office of the U.S. Secret Service, a prestigious division that oversees the South American region, acted swiftly when

NEW LEADER ACTION MEMO As a leader, you can develop the backbone to accept personal responsibility for achieving desired outcomes, going against the status quo, and standing up for what you believe. You can learn to push beyond your comfort zone and break through the fear that limits you.


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The U.S. Secret Service has apparently tolerated moral lapses in the behavior of agents over the years, but Paula Reid believed that had to change. She acted in spite of a potential internal backlash because she believed the actions of the agents both hurt the agency’s reputation and damaged its ability to fulfill its protective and investigative missions.

Most leaders initiating change find some cooperation and support, but they also encounter resistance, rejection, loneliness, and even ridicule. It’s often easier to stay with what is familiar, even if it will lead to certain failure, than to initiate bold change.

Courage Means Pushing beyond the Comfort Zone To take a chance and improve things means leaders have to push beyond their comfort zones. When people go beyond the comfort zone, they encounter an internal ‘‘wall of fear.’’ A social experi- ment from 30 years ago illustrates the wall of fear that rises when people push beyond their comfort zones. To explore the web of unwritten rules that govern people’s behavior on New York City subways, Dr. Stanley Milgram asked his first- year graduate students to board a crowded train and ask someone for a seat. Milgram’s focus of interest soon shifted to the students themselves, as the seemingly simple assignment proved to be extremely difficult, even traumatic. Most students found it decidedly uncomfortable to bluntly ask someone for a seat. One now says of the experiment: ‘‘I was afraid I was going to throw up.’’56 People may encounter the internal wall of fear when about to ask someone for a date, confront the boss, break off a relationship, launch an expensive project, or change careers. Facing the internal wall of fear is when courage is needed most.

Courage Means Asking for What You Want and Saying What You Think Leaders have to speak out to influence others. However, the desire to please others—especially the boss—can sometimes block the truth. Everyone wants approval, so it is difficult to say things when you think others will disagree or disapprove. Author and scholar Jerry Harvey tells a story of how members of his extended family in Texas decided to drive 40 miles to Abilene for dinner on a hot day when the car air conditioning did not work. They were all miserable. Talking about it afterward, each person admitted they had not wanted to go but went along to please the others. The Abilene Paradox is the name Harvey uses to describe the tendency of people to not voice

she received a report of a disturbance at the hotel where agents preparing for President Barack Obama’s visit to Cartagena were staying. Reid didn’t particularly care whether prostitution was legal or illegal. The bottom line for her was that visits to strip clubs, heavy drinking, and hiring prostitutes are not acceptable ethical behaviors for Secret Service agents charged with protecting the president of the United States.

Based on information from the hotel manager, Reid swiftly rounded up a dozen agents, ordered them out of the country, and notified her superiors that she had found evidence of ‘‘egregious misconduct.’’ The resulting scandal threw the Secret Service into turmoil and put Director Mark Sullivan and other top leaders on the hot seat. Yet, for Reid, the ‘‘boys will be boys’’ mentality is not acceptable in today’s world. ‘‘If every boss was Paula Reid,’’ said a former agent, ‘‘the Secret Service would never have a problem. It would be a lot more boring, but never a problem.’’ 55

Abilene Paradox the tendency of people to resist voicing their true thoughts or feelings in order to please others and avoid conflict


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their true thoughts because they want to please others.57 Courage means speaking your mind even when you know others may disagree with you and may even deride you. Courage also means asking for what you want and setting boundaries. It is the ability to say no to unreasonable demands from others, as well as the ability to ask for what you want to help achieve the vision.

Courage Means Fighting for What You Believe Courage means fighting for valued outcomes that benefit the whole. Leaders take risks, but they do so for a higher purpose. For example, Ashok Khemka has been a government worker in India for 21 years, and during that time period he has been demoted or transferred to another department 43 times. Why? Because Khemka is a tireless fighter against cor- ruption, and sometimes he ruffles the wrong feathers. Some people—especially bosses who are bending the rules—see him as a troublemaker, but India’s anti- corruption activists and many people in the community fully support him. ‘‘There are two kinds of government officers—officers who work only to please their politi- cal masters, and other officers [like Khemka] who work to uphold the law, who work for justice and the poor,’’ said advocate Kuldip Tiwari.58

6-5b How Does Courage Apply to Moral Leadership? There are many people working in organizations who have the courage to be uncon- ventional, to step up and take responsibility, and to do what they believe is right. Balancing profit with people, self-interest with service, and control with stewardship requires individual moral courage.

LEADER’S SELF-INSIGHT 6.3 Assess Your Moral Courage

Instructions: Think about situations in which you either assumed or were given a leadership role in a group or orga- nization. Imagine using your own courage as a leader. To what extent does each of the following statements charac- terize your leadership? Please answer whether each item is Mostly False or Mostly True for you.

Mostly False

Mostly True

1. I risk substantial personal loss to achieve the vision. ______ ______

2. I take personal risks to defend my beliefs. ______ ______

3. I say no even if I have a lot to lose. ______ ______ 4. I consciously link my actions to

higher values. ______ ______ 5. I don’t hesitate to act against

the opinions and approval of others. ______ ______

6. I quickly tell people the truth, even when it is negative. ______ ______

7. I feel relaxed most of the time. ______ ______

8. I speak out against organizational injustice. ______ ______

9. I stand up to people if they make offensive remarks. ______ ______

10. I act according to my conscience even if it means I lose status and approval. ______ ______

Scoring and Interpretation

Each of the preceding questions pertains to some aspect of displaying courage in a leadership situation. Add up your points for Mostly True answers: ______. If you received a score of 7 or higher, you have real potential to act as a cou- rageous leader. A score below 3 indicates that you avoid dif- ficult issues or have not been in situations that challenge your moral leadership. Is your score consistent with your understanding of your own courage? Look at the individual questions for which you scored Mostly False or Mostly True and think about your specific strengths and weaknesses. Compare your score to that of other students. How might you increase your courage as a leader? Do you want to?

NEW LEADER ACTION MEMO Assess your level of leadership courage by completing the exercise in Leader’s Self-Insight 6.3.

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Acting Like a Moral Leader Requires Personal Courage To practice moral leadership, leaders have to know themselves, understand their strengths and weaknesses, know what they stand for, and often be nonconformists. Honest self-analysis can be pain- ful, and acknowledging one’s limitations in order to recognize the superior abilities of others takes personal strength of character. In addition, moral leadership means building relationships, which requires listening, having significant personal experien- ces with others, and making yourself vulnerable—qualities that frighten many people. Yet, by getting close and doing what is best for others—sharing the good and the bad, the pain and anger as well as the success and the joy—leaders bring out the best qualities in others.59

An example of this in practice is when William Peace had to initiate a layoff as general manager of the Synthetic Fuels Division of Westinghouse. Peace had the courage to deliver the news about layoffs personally. He took some painful blows in the face-to-face meetings he held with the workers to be laid off, but he believed allowing people to vent their grief and anger at him and the situation was the moral thing to do. His action sent a message that leaders valued employees as human beings with feelings. Thus, employees rededicated themselves to helping save the division.60 For Peace, the courage to practice moral leadership by personally facing employees gained respect, renewed commitment, and higher performance, even though he suffered personally in the short run.

Opposing Unethical Conduct Requires Courage Whistleblowing means employee dis- closure of illegal, immoral, or unethical practices in the organization.61 One recent example is Charles M. Smith, who was the senior civilian overseeing the U.S. Army’s multibillion-dollar contract with KBR when he faced a test of courage. Smith couldn’t find evidence justifying more than $1 billion in costs for food, hous- ing, and other services from the contractor, but he was being asked to approve the payments anyway. He refused to sign off, despite pressures from both Army and civilian officials. Smith was removed from his job and transferred to another posi- tion. He retired soon afterward and went to the media with the story.62

As this example shows, it is highly risky for employees to blow the whistle because they may lose their jobs, be ostracized by coworkers, or be transferred to undesirable positions. Michael Woodford, former president and CEO of Olympus, described what it was like to be at the center of a major whistleblowing scandal. Woodford had been with Olympus for 30 years when he was named president and CEO in early 2011. He soon discovered that unauthorized payments had been made to third parties in an effort to hide significant losses. He went to the board, but they ignored his findings. After he went public, Woodford was voted out of a job. He describes what happened next: ‘‘I was petrified. You feel your career is slipping away.’’ Woodford says as painful as the experience was, it was a huge education, and he has no regrets for doing the right thing. The entire board at Olympus eventu- ally resigned, and three senior executives pleaded guilty to fraud.63

Most whistleblowers, like Charles Smith and Michael Woodford, realize they may suffer financially and emotionally, but they act courageously to do what they think is right. As Woodford says, ‘‘If you know something is wrong and you don’t deal with it, you are complicit.’’64

6-5c Finding Personal Courage How does a leader find the courage to step through fear and confusion, to act despite the risks involved? All of us have the potential to live and act courageously.

Whistleblowing employee disclosure of ille- gal, immoral, or unethical practices in the organization


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There are a number of ways leaders can unlock the courage within themselves, including committing to causes they believe in, connecting with others, harnessing anger, and developing their skills.

Believe in a Higher Purpose Courage comes easily when we fight for something we really believe in. Leaders who have a strong emotional commitment to a larger vision or purpose find the courage to step through fear. When Charles Smith, the leader who refused to pay KBR, was asked about his decision, he said, ‘‘Ultimately, the money that was going to KBR was money being taken away from the troops, and I wasn’t going to do that.’’65 For Smith, caring about the well-being of soldiers gave him the courage to refuse payments to a contractor that he believed were fraudulent. Noorjahan Akbar, the 21-year-old founder of Young Women for Change, says numerous activists fighting for women’s rights in Afghanistan have been injured or killed, but it only strengthened their resolve to push for change. Akbar and others don’t risk their lives just for the thrill of it. They do it for a cause they deeply believe in.66 General Stanley McChrystal (U.S. Army Retired) explains how a higher purpose of serving followers can be a source of courage.

Draw Strength from Others Caring about others and having support from others is a potent source of courage in a topsy-turvy world. Support for this proposition comes from studies of the civil rights movement in the southern United States in the 1960s. In the Mississippi Freedom Summer Project, young volunteers were recruited to register black voters, run Freedom Schools, and raise civil rights awareness. Within days of the volunteers arriving in Mississippi, three were kidnapped and killed. Throughout the summer, dozens of churches were set on fire, safe houses were bombed, and volunteers were shot at, beaten, and arrested. A quarter of the

IN THE LEAD General Stanley A. McChrystal, United States Army General Stanley McChrystal, who retired from the U.S. Army as a four-star general after more than 34 years of service, is best known for leading the covert Joint Special Operations Command during the Persian Gulf Wars and commanding all American and coalition forces in Afghanistan.

McChrystal says his greatest fear has always been failing the organization and his followers. ‘‘It’s not fear of getting shot at, or worrying that you’re going to crash the airplane, or something like that . . .,’’ he says. Leading people, particularly in warfare situations, means that you have a huge commitment to a lot of people. To overcome the fear, McChrystal focuses on the problem at hand and how to achieve the best possible outcome for his followers and the organization.

McChrystal bases much of his leadership philosophy on advice that came from his mentor, Lieutenant General John Vines, whom McChrystal describes as the perfect model of a servant leader. Courage comes from committing to and investing in followers, who are the ones doing the hard work on the front lines. ‘‘I think of the young private on a checkpoint in Baghdad . . . who has almost no control [over what happens] and lots of time on his hands to think,’’ McChrystal says. ‘‘When I look at courage, I look at the 18-year-old kid . . . standing out there doing that. . . . That’s pretty humbling.’’67

NEW LEADER ACTION MEMO As a leader, you can find your personal courage by committing to something you deeply believe in. You can welcome potential failure as a means of growth and development and build bonds of caring and mutual support with family, friends, and colleagues to reduce fear.


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volunteers in the program dropped out. Researchers have looked at what distin- guished those who stayed from those who left. The volunteers who stayed were far more likely to have what is referred to as strong ties, close friends who were also in the program and people they were close to back home who were deeply interested in their lives and activities. Those who left the program were just as committed to the goals and purpose, but they typically didn’t have the same social support.68

People who feel alone in the world take fewer risks because they have more to lose.69 Interestingly, although social media such as Twitter and Facebook have made it easier for people to join with others to support social causes or push for change within organizations, there is some evidence that social media actually reduce strong ties (deep personal connections), making it harder for people to express courage when they need it.70

Harness Frustration and Anger If you have ever been really angry about something, you know that it can cause you to forget about fear of failure, fear of embarrassment, or fear that others won’t like you. Peggy Payne, now in her mid-60s, has had a highly successful career as a journalist and author but says she still gets angry when she thinks about not being chosen to attend the prestigious Governor’s School of North Carolina when she was 16 years old. The anger, she says, helped fuel a commitment to show everyone she could be successful.71 Frustration and anger spurred Glenn McIntyre to found a company. After he was paralyzed in a motorcycle accident, McIntyre got angry every time he stayed at a hotel. His anger and frustration over how poorly hotels served disabled guests gave him the courage to stop feeling sorry for himself and start a new business, Access Designs. The firm helps hotels such as Quality Suites and Renaissance Ramada redesign their spaces to be more usable for disabled travelers.72 Anger, in moderate amounts, is a healthy emotion that provides energy to move forward. The challenge is to harness anger and use it appropriately.73

Take Small Steps In most cases within organizations, finding courage is a deliberate act rather than an instantaneous response.74 Courage can be thought of as a decision- making skill that is developed through conscious thought and practice. Courageous leaders are not reckless and foolhardy; they typically are people who have developed the skills and resources they need to take a difficult stand or pursue a tough course of action. In addition, courageous leaders can develop courageous followers by modeling courage in their own behavior and by helping people practice courage.

One leader who was promoted to CFO was being pressured to restate restructur- ing charges so it would look more favorable and help the stock price. Rather than sim- ply refusing to do so, this leader developed an integrity campaign, reminding people of the firm’s strong tradition of values-driven leadership. This provided support to other leaders who didn’t want to go along with the unethical behavior but didn’t have the courage to resist pressures from more senior executives.75 Good leaders remind themselves that dealing with difficult ethical issues is a crucial part of their jobs.

LEADERSHIP ESSENTIALS • This chapter explored a number of ideas concerning moral leadership and lead-

ership courage. People want honest and trustworthy leaders. However, leaders face many pressures that challenge their ability to do the right thing—pressures to cut costs, increase profits, meet the demands of various stakeholders, and


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look successful. Creating an ethical organization requires that leaders act based on moral principles.

• Leaders are the symbols for the organization’s ethical climate. When they exces- sively promote self-interest, practice deception and breach agreements, and lack the courage to confront unjust acts, they hurt the organization and everyone associated with it. Ethical leaders are humble, honest, and straightforward. They maintain a concern for the greater good, strive for fairness, and demon- strate the courage to stand up for what is right. Acting as a moral leader means demonstrating the importance of serving people and society as well as increas- ing profits or personal gain.

• One personal consideration for leaders is the level of moral development. Leaders use an understanding of the stages of moral development to enhance their own as well as followers’ moral growth. Leaders who operate at higher stages of moral development focus on the needs of followers and universal moral principles.

• Ideas about control versus service between leaders and followers are changing and expanding, reflected in a continuum of leader–follower relationships. The continuum varies from authoritarian managers to participative managers to stewardship to servant leadership. Leaders who operate from the principles of stewardship and servant leadership can help build ethical organizations.

• The final sections of the chapter discussed leadership courage and how leaders can find their own courage. Courage means having the mental and moral strength to confront, persevere through, and withstand danger, difficulty, or fear. Coura- geous leaders accept responsibility, take risks and make changes, speak their minds, and fight for what they believe. Two expressions of courage in organiza- tions are moral leadership and ethical whistleblowing. Sources of courage include belief in a higher purpose, connection with others, harnessing anger, and develop- ing courage step by step.

DISCUSSION QUESTIONS 1. What are some pressures you face as a student that challenge your ability to do the right

thing? Do you expect to face more or fewer pressures as a leader? Discuss what some of these pressures might be.

2. If most adults are at a conventional level of moral development, what does this mean for their potential for moral leadership?

3. How might understanding the difference between ‘‘fear’’ and ‘‘F.E.A.R.,’’ as described in the chapter, make you a better leader? Can you name an example from your own life of ‘‘false evidence appearing real’’?

4. One finding is that when leaders are under stress so that fear and risk increase, they tend to revert to an authoritarian, command-and-control style. As a leader, how might you find the courage to resist this tendency?

5. If you were in a position as a student similar to Mike McQueary at Pennsylvania State University, what do you think you would do? Why?

6. Should serving others be placed at a higher moral level than serving oneself? Discuss.

7. If it is immoral to prevent those around you from growing to their fullest potential, are you being moral?

8. Leaders at several organizations, including Hostess Brands (Twinkies), Sbarro, and Blockbuster, have gotten significant raises or bonuses shortly before the firms filed for


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bankruptcy. The companies have argued that it was a necessary step to keep managers during a difficult time. Do you think this is a legitimate argument from an ethical stand- point? Discuss.

9. Do you agree that it is important for leaders to do the right thing even if no one will ever know about it? Why or why not?

10. A consultant recently argued that the emphasis on corporate governance and social responsibility has distracted leaders from key business issues such as serving customers and beating competitors. Do you agree? Should leaders put business issues first or ethical issues first?

LEADERSHIP AT WORK Scary Person Think of a person in your life right now who is something of a scary person for you. Scary people are those you don’t really know but who are scary to you because you anticipate that you won’t like them, perhaps because you don’t like the way they act or look from a distance, and hence you avoid building relationships with them. A scary person might be a student at school, someone at work, a neighbor, or someone you are aware of in your social circle.

Scary people trigger a small amount of fear in us—that is why we avoid them and don’t really get to know them. A test of courage is whether you can step through your fear. You will experience fear many times as a leader.

For this exercise, your assignment is to reach out to one or more scary persons in your life. Invite the person for lunch or just walk up and introduce yourself and start a conversation. Perhaps you can volunteer to work with the person on an assignment. The key thing is to step through your fear and get to know this person well enough to know what he or she is really like.

After you have completed your assignment, share what happened with another person. Were you able to reach out to the scary person? What did you discover about the scary person? What did you discover about yourself by doing this activity? If you found the exercise silly and refused to do it, you may have let F.E.A.R. get the better of you by rationalizing that the assignment has little value.

In Class: The instructor can give this assignment to be done prior to a specific class session. During class it is a good exercise for students to discuss their scary person experiences among themselves in small groups. The instructor can ask students to report to their groups about the scary person, revealing as many details as they are comfortable with, explaining how they sum- moned the courage to reach out, and the result. After the groups have finished their exchange, the instructor can ask a couple of student volunteers to report their experiences to the entire class. Then students can be asked questions such as: Looking back on this experience, what is courage? How was it expressed (or not) in this exercise? How will fear and courage be part of your organizational leadership?

LEADERSHIP DEVELOPMENT: CASES FOR ANALYSIS ‘‘What Should I Say?’’ The sudden heart attack of his predecessor, Bill Andrews, propelled Russell Hart into a tem- porary top management assignment for Kresk International in the company’s new Middle East Division in Riyadh, Saudi Arabia. Kresk management had targeted Saudi as a must-have division and was enthusiastic about the expansion.

After six months of a one-year assignment in Riyadh with travel throughout the Middle East, Russell was making a brief trip to Dallas to report at the semiannual board meeting before returning to Saudi. He understood that in addition to his assessment of the company’s


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situation in the region, a portion of the board meeting would focus on the improved health of Andrews and, based on that, a determination would be made as to whether he or Bill Andrews would have the permanent assignment at the end of the year. The two were close friends and had corresponded regularly over the past months, and Russell looked forward to Bill’s full recovery and return to work. However, single and adventurous by nature, Russell enjoyed the company’s top assignment and hoped to impress management at the meeting so that he would be named director of the Middle East Division.

‘‘Here’s where my personal ambitions and my personal ethics collide,’’ Russell admitted to his assistant Christopher Dunn as the Kresk corporate jet left Riyadh. ‘‘I mean, look at all of this. It’s a dream job. It’s my dream job and I can do this. If anyone had told me back in high school in Nebraska that I would be on a corporate jet flying from Saudi Arabia, I’d have laughed them out of Sydney.’’

‘‘Excuse me, Russell, would you and Christopher care for anything to drink?’’ the cabin attendant asked.

‘‘Yes, a Jameson,’’ Russell said. ‘‘Same here,’’ Christopher added. As the attendant walked away, Russell leaned over, speaking quietly. ‘‘Corporate is so

enthusiastic about this region. They are expecting nothing short of a glowing report that basically says, ‘Wow, we really hit the jackpot with this move.’ And that’s what we’ve put to- gether here over the past few weeks. It looks fantastic! But my little man in here,’’ he said, pointing to his stomach, ‘‘keeps nagging me—do I give them, ‘Wow, we hit the jackpot’ and become the darling of the company, or do I give them the truth, that we have some potential serious problems with this division...’’

‘‘. . . And hand the job to Bill,’’ Christopher said as the drinks arrived. ‘‘Exactly. By the end of the year, their numbers may look great and they may meet our

performance standards, but I have serious problems with the management here. I realize that we’re working with a different culture and I can make allowances. I have no problem pacing my day around their prayer obligations. I know to avoid any business during Ramadan or around the two Eids. I’ve become comfortable meeting a sheikh or sayyid* and I’ve even lost my sense of self-consciousness when a businessman holds my hand to lead me into a room. I can deal with all of these things. But there is a level here within the organization that bothers me and that I think would bother most managers at headquarters and that’s what I struggle with in this report. Should I be honest?’’

‘‘Well, you know—honesty is the best. . .’’ ‘‘Don’t say it. This is my career we’re talking about.’’ ‘‘OK, what do you want to add—or not add?’’ ‘‘The major problem here is Youssef Said,’’ Russell said. ‘‘I know. But I think I would stay away from mentioning that. The company loves the

guy. Bill Andrews has been his champion because of excellent results, at least in the short run.’’ ‘‘I don’t agree. And I think they won’t when they see him in action. I don’t understand

why Bill supports him.’’ ‘‘They’ve seen him in action,’’ Christopher said. ‘‘Oh, they’ve seen what he wants them to see. You and I have seen his interaction with

staff and employees on a daily basis. His mistreatment of people is appalling. I see a total dis- regard for the opinions of others, and he seems to take considerable pleasure in humiliating people. He screams at them! A few have quit. I’ve questioned him about it a couple of times and all he says is, ‘I know. Please understand . . .’ ’’

‘‘It is the way it is done here,’’ Christopher said, completing the phrase the two heard on a regular basis.

‘‘I don’t believe it is the way it’s done here. It’s not our culture, at least not in the U.S. and Europe. I think this has always been his way. I wonder about the effects on morale, and I think the people who work here will believe the company is in agreement with him and that this is our policy,’’ Russell said. ‘‘Youssef has that little inner circle of family and friends that he trusts and really nothing beyond that. To me, it seems he’s always working a deal, bending


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a rule. I know that Arabs love to trade and love to negotiate, but there are too many favors, too many unwritten agreements and payments, and I wonder if we should intervene. I wonder if international laws or the company’s own ethics are being set aside. I have serious doubts that this guy is going to work with the Kresk culture and our company ethics. But do I need to include my concerns in this initial report . . .’’

‘‘Or will you just be busting the board’s bubble, and raise doubts about Bill, or perhaps they will doubt you and risk your shot at the job you want?’’

‘‘On the other hand, if I am seeing what I consider severe long-term problems and say nothing now, in this report, and the problems show up later, will I be guilty of breaking a code of ethics?’’ Russell paused. ‘‘So, Christopher, what do I say tomorrow at the board meeting?’’


1. What do you think Russell Hart should include in his report about Youssef Said? Why? What would you do in his position?

2. What amount or kind of courage will be required for Hart to disclose everything honestly? How would you advise Hart to acquire that courage?

3. At which stage of Kohlberg’s moral development scale would you place Youssef Said, Russell Hart, and Bill Andrews? Why?

Notes: *Descendant of the Prophet Muhammad

The Boy, the Girl, the Ferryboat Captain, and the Hermits There was an island, and on this island there lived a girl. A short distance away there was another island, and on this island there lived a boy. The boy and the girl were very much in love with each other.

The boy had to leave his island and go on a long journey, and he would be gone for a very long time. The girl felt that she must see the boy one more time before he went away. There was only one way to get from the island where the girl lived to the boy’s island, and that was on a ferryboat that was run by a ferryboat captain. And so the girl went down to the dock and asked the ferryboat captain to take her to the island where the boy lived. The ferry- boat captain agreed and asked her for the fare. The girl told the ferryboat captain that she did not have any money. The ferryboat captain told her that money was not necessary: ‘‘I will take you to the other island if you will stay with me tonight.’’

The girl did not know what to do, so she went up into the hills on her island until she came to a hut where a hermit lived. We will call him the first hermit. She related the whole story to the hermit and asked for his advice. The hermit listened carefully to her story, and then told her, ‘‘I cannot tell you what to do. You must weigh the alternatives and the sacrifi- ces that are involved and come to a decision within your own heart.’’

And so the girl went back down to the dock and accepted the ferryboat captain’s offer. The next day, when the girl arrived on the other island, the boy was waiting at the dock to greet her. They embraced, and then the boy asked her how she got over to his island, for he knew she did not have any money. The girl explained the ferryboat captain’s offer and what she did. The boy pushed her away from him and said, ‘‘We’re through. That’s the end. Go away from me. I never want to see you again,’’ and he left her.

The girl was desolate and confused. She went up into the hills of the boy’s island to a hut where a second hermit lived. She told the whole story to the second hermit and asked him what she should do. The hermit told her that there was nothing she could do, that she was welcome to stay in his hut, to partake of his food, and to rest on his bed while he went down into the town and begged for enough money to pay the girl’s fare back to her own island.

When the second hermit returned with the money for her, the girl asked him how she could repay him. The hermit answered, ‘‘You owe me nothing. We owe this to each other. I am only too happy to be of help.’’ And so the girl went back down to the dock and returned to her own island.


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1. List in order the characters in this story that you like, from most to least. What values governed your choices?

2. Rate the characters on their level of moral development. Explain.

3. Evaluate each character’s level of courage. Discuss.

REFERENCES 1. Christine Roberts, ‘‘Malala Yousafzai Returns to School for First Time

since She Was Shot by the Taliban,’’ Daily News (March 19, 2013), http://www.thedailybeast.com/articles/2012/10/18/sisters-in-arms-young- afghan-activist-continues-malala-s-fight.html#body_text2 (accessed April 2, 2013); Alia E. Dastagir, ‘‘Pakistan Girl Shot by Taliban Seals Book Deal,’’ USA Today (March 28, 2013), http://www. usatoday.com/story/news/world/2013/03/27/malala-pakistan-book-deal/ 2026697/ (accessed April 2, 2013); and ‘‘Young Journalist Inspires Fellow Students,’’ Institute for War and Peace Reporting (December 5, 2009), http://iwpr.net/report-news/young-journalist-inspires-fellow-students-0 (accessed April 2, 2013).

2. Roberts, ‘‘Malala Yousafzai Returns to School.’’ 3. Ben Worthen and Joann S. Lublin, ‘‘Mark Hurd Neglected to Follow

H-P Code,’’ The Wall Street Journal (August 9, 2010), p. B1; Miguel Bustillo, ‘‘Best Buy Chairman to Resign After Probe,’’ The Wall Street Journal (May 15, 2012), http://online.wsj.com/article/SB10001424052 702304192704577403922338506912.html (accessed April 3, 2013); and Amir Efrati and Joann S. Lublin, ‘‘Yahoo CEO’s Downfall,’’ The Wall Street Journal Online (May 15, 2012), http://online.wsj.com/ article/SB10001424052702304192704577404530999458956.html (accessed July 2, 2012).

4. Anemona Hartocollis, ‘‘At Ailing Brooklyn Hospital, Insider Deals and Lavish Perks,’’ The New York Times (March 26, 2012), p. A1.

5. Chuck Salter, paraphrasing Bill George, former CEO of Medtronic, in ‘‘Mr. Inside Speaks Out,’’ Fast Company (September 2004), pp. 92–93.

6. Floyd Norris, ‘‘In Actions, S. & P. Risked Andersen’s Fate,’’ The New York Times (February 7, 2013), http://www.nytimes.com/2013/02/08/ business/sp-may-have-tempted-arthur-andersens-fate.html?pagewanted= all&_r=0 (accessed February 8, 2013).

7. Margaret Wheatley, ‘‘Fearless Leaders: We Need Them Here and Now,’’ Leadership Excellence (June 2010), pp. 5–6.

8. Roger Martin, ‘‘The CEO’s Ethical Dilemma in the Era of Earnings Management,’’ Strategy & Leadership 39, no. 6 (2011), pp. 43–47.

9. Quoted in David Wessel, ‘‘Venal Sins: Why the Bad Guys of the Board- room Emerged en Masse,’’ The Wall Street Journal (June 20, 2002), pp. A1, A6.

10. Ronald W. Clement, ‘‘Just How Unethical Is American Business?’’ Business Horizons 49 (2006), pp. 313–327.

11. Gary R. Weaver, Linda Klebe Trevin11. Gary R. Weaver, Linda Klebe Treviñ11. Gary R. Weaver, Linda Klebe Trevino, and Bradley Agle, ‘‘‘Somebody I Look Up To’: Ethical Role Models in Organizations,’’ Organizational Dynamics 34, no. 4 (2005), pp. 313–330; Joseph L. Badaracco Jr., and Allen P. Webb, ‘‘Business Ethics: A View from the Trenches,’’ Califor- nia Management Review 37, no. 2 (Winter 1995), pp. 8–28; and Arlen W. Langvardt, ‘‘Ethical Leadership and the Dual Roles of Examples,’’ Business Horizons 55 (2012), pp. 373–384.

12. Michiko Kakutani, ‘‘The Tsunami That Buried a Wall Street Giant,’’ The New York Times (March 10, 2009), p. C4.

13. Based on Susan Berfield, ‘‘Will Investors Put the Lid on the Container Store’s Generous Wages?’’ Bloomberg Business Week (February 19, 2015), http://www.bloomberg.com/news/articles/2015-02-19/container- store-conscious-capitalism-and-the-perils-of-going-public (accessed October 20, 2015).

14. This section is based on Donald G. Zauderer, ‘‘Integrity: An Essential Executive Quality,’’ Business Forum (Fall, 1992), pp. 12–16.

15. ‘‘New York’s Pension Scandal,’’ The New York Times (October 7, 2010), http://www.nytimes.com/2010/10/08/opinion/08fri2.html?_r=0 (accessed April 3, 2013); and ‘‘Review Shows NY Pension Fund Fixed Ethics,’’ The Wall Street Journal (February 19, 2013), http://online. wsj.com/article/APa0f276305f884319a004f97a2de34b8a.html (accessed April 3, 2013).

16. Patricia Wallington, ‘‘Honestly?!’’ CIO (March 15, 2003), pp. 41–42. 17. Langvardt, ‘‘Ethical Leadership and the Dual Roles of Examples’’;

Jeremy Roebuck and Amy Worden, ‘‘McQueary Affirms Report to Officials: Says He Told of Seeing ‘Severe Sexual Acts’ in the Showers,’’ Philadelphia Inquirer (December 17, 2011), p. A1; Jo Becker, ‘‘E-Mails Suggest Paterno Role in Silence on Sandusky,’’ The New York Times (July 1, 2012), http://www.nytimes.com/2012/07/01/sports/ ncaafootball/paterno-may-have-influenced-decision-not-to-report- sandusky-e-mails-indicate.html?_r=1&emc=eta1 (accessed July 9, 2012); Drew Sharp, ‘‘At Penn State, Football Bigger Than Princi- ple,’’ Pittsburgh Post-Gazette (June 25, 2012), p. A8; and Alina Tugend, ‘‘Doing the Ethical Thing May Be Right, But It Isn’t Automatic,’’ The New York Times (November 18, 2011).

18. Langvardt, ‘‘Ethical Leadership and the Dual Roles of Examples.’’ 19. Carly Fiorina, ‘‘Corporate Leadership and the Crisis,’’ The Wall Street

Journal (December 12, 2008), p. A19. 20. Al Gini, ‘‘Moral Leadership and Business Ethics,’’ The Journal of

Leadership Studies 4, no. 4 (Fall 1997), pp. 64–81. 21. Henry Ford Sr., quoted by Thomas Donaldson, Corporations and

Morality (Upper Saddle River, NJ: Prentice Hall, 1982), p. 57. 22. Michael E. Brown and Linda K. Trevin22. Michael E. Brown and Linda K. Treviñ22. Michael E. Brown and Linda K. Trevino, ‘‘Ethical Leadership: A

Review and Future Directions,’’ The Leadership Quarterly 17 (2006), pp. 595–616; Darin W. White and Emily Lean, ‘‘The Impact of Perceived Leader Integrity on Subordinates in a Work Team Environ- ment,’’ Journal of Business Ethics 81 (2008), pp. 767–778; Weaver, TrevinTreviñTrevino, and Agle, ‘‘‘Somebody I Look Up To’’’; and Badaracco and Webb, ‘‘Business Ethics: A View from the Trenches.’’

23. Joseph Weber, ‘‘The New Ethics Enforcers,’’ BusinessWeek (February 13, 2006), pp. 76–77.

24. More Than Wheels Mission and Core Values, http://www. morethanwheels.org/mission (accessed May 18, 2013).

25. Rashid Ameer and Radiah Othman, ‘‘Sustainability Practices and Corporate Financial Performance: A Study Based on the Top Global Corporations,’’ Journal of Business Ethics 108, no. 1 (June 2012), pp. 61–79.

26. Curtis C. Verschoor and Elizabeth A. Murphy, ‘‘The Financial Per- formance of Large U.S. Firms and Those with Global Prominence: How Do the Best Corporate Citizens Rate?’’ Business and Society Review 107, no. 3 (Fall 2002), pp. 371–381.

27. Phred Dvorak, ‘‘Finding the Best Measure of ‘Corporate Citizenship,’’’ The Wall Street Journal (July 2, 2007), p. B3.

28. Zauderer, ‘‘Integrity: An Essential Executive Quality.’’ 29. James M. Kouzes and Barry Z. Posner, Credibility: How Leaders Gain

and Lose It, Why People Demand It (San Francisco: Jossey-Bass, 1993), p. 255.

30. Mary C. Gentile, ‘‘Combating Ethical Cynicism and Voicing Values in the Workplace,’’ Ivey Business Journal (May–June 2011), http://


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www.iveybusinessjournal.com/topics/leadership/combating-ethical- cynicism-and-voicing-values-in-the-workplace (accessed April 3, 2013).

31. Lawrence Kohlberg, ‘‘Moral Stages and Moralization: The Cognitive Developmental Approach,’’ in Thomas Likona, ed., Moral Develop- ment and Behavior: Theory, Research, and Social Issues (Austin, TX: Holt, Rinehart and Winston, 1976), pp. 31–53; Linda K. TrevinHolt, Rinehart and Winston, 1976), pp. 31–53; Linda K. TreviñHolt, Rinehart and Winston, 1976), pp. 31–53; Linda K. Trevino, Gary R. Weaver, and Scott J. Reynolds, ‘‘Behavioral Ethics in Organi- zations: A Review,’’ Journal of Management 32, no. 6 (December 2006), pp. 951–990; Jill W. Graham, ‘‘Leadership, Moral Develop- ment, and Citizenship Behavior,’’ Business Ethics Quarterly 5, no. 1 (January 1995), pp. 43–54; James Weber, ‘‘Exploring the Relationship between Personal Values and Moral Reasoning,’’ Human Relations 46, no. 4 (April 1993), pp. 435–463; and Duane M. Covrig, ‘‘The Organizational Context of Moral Dilemmas: The Role of Moral Lead- ership in Administration in Making and Breaking Dilemmas,’’ The Journal of Leadership Studies 7, no. 1 (2000), pp. 40–59.

32. Vivian Yee, ‘‘Stuyvesant Students Describe the How and the Why of Cheating,’’ The New York Times (September 25, 2012), http://www. nytimes.com/2012/09/26/education/stuyvesant-high-school-students- describe-rationale-for-cheating.html?pagewanted=all (accessed April 3, 2013).

33. Quoted in Richard Pe33. Quoted in Richard Pé33. Quoted in Richard Perez-Penrez-Peñrez-Pena, ‘‘Studies Find More Students Cheating, with High Achievers No Exception,’’ The New York Times (September 7, 2010), http://www.nytimes.com/2012/09/08/education/studies-show-more- students-cheat-even-high-achievers.html (accessed April 3, 2013).

34. Anthony F. Buono et al., ‘‘Acting Ethically: Moral Reasoning and Busi- ness School Student Behavior,’’ SAM Advanced Management Journal (Summer 2012), pp. 18–26.

35. J. R. Rest, D. Narvaez, M. J. Bebeau, and S. J. Thoma, Postconven- tional Moral Thinking: A Neo-Kohlbergian Approach (Mahwah, NJ: Lawrence Erlbaum, 1999).

36. James Weber, ‘‘Exploring the Relationship between Personal Values and Moral Reasoning,’’ Human Relations 46, no. 4 (April 1993), pp. 435–463.

37. White and Lean, ‘‘The Impact of Perceived Leader Integrity on Subor- dinates in a Work Team Environment’’; Peter Block, ‘‘Reassigning Responsibility,’’ Sky (February 1994), pp. 26–31; and David P. McCaffrey, Sue R. Faerman, and David W. Hart, ‘‘The Appeal and Difficulty of Participative Systems,’’ Organization Science 6, no. 6 (November–December 1995), pp. 603–627.

38. Block, ‘‘Reassigning Responsibility.’’ 39. This discussion of stewardship is based on Peter Block, Stewardship:

Choosing Service over Self-Interest (San Francisco: Berrett-Koehler, 1993), pp. 29–31; Block, ‘‘Reassigning Responsibility’’; Morela Hernandez, ‘‘Promoting Stewardship Behavior in Organizations: A Leadership Model,’’ Journal of Business Ethics 80, no. 1 (June 2008), pp. 121–128; Morela Hernandez, ‘‘Toward an Understanding of the Psychology of Stewardship,’’ Academy of Management Review 37, no. 2 (2012), pp. 172–193; and Gary Hamel, ‘‘Leaders as Stewards: What Matters Are Bedrock Values,’’ Leadership Excellence (August 2012), p. 5.

40. Martin Edwards, ‘‘Workforce Engagement: Case Study of an Award- Winning Leadership Model,’’ Industrial and Commercial Training 44, no. 3 (2012), pp. 132–138.

41. Lawrence G. Foster, Robert Wood Johnson—The Gentleman Rebel (Lemont, PA: Lillian Press, 1999); and John Cunniff, ‘‘Businessman’s Honesty, Integrity Lesson for Today,’’ Johnson City Press (May 28, 2000).

42. Adam Bluestein, ‘‘Start a Company. Change the World.’’ Inc. (May 2011), pp. 71–80.

43. Sen Sendjaya and James C. Sarros, ‘‘Servant Leadership: Its Origin, Development, and Application in Organizations,’’ Journal of Leader- ship and Organizational Studies 9, no. 2 (2002), pp. 57–64. Examples include B. M. Bass, ‘‘The Future of Leadership in Learning Organiza- tions,’’ The Journal of Leadership Studies 7, no. 3 (2000), pp. 18–40; I. H. Buchen, ‘‘Servant Leadership: A Model for Future Faculty and

Future Institutions,’’ The Journal of Leadership Studies 5, no. 1 (1998), pp. 125–134; Y. Choi and R. R. Mai-Dalton, ‘‘On the Leader- ship Function of Self-Sacrifice,’’ Leadership Quarterly 9, no. 4 (1998), pp. 475–501; and R. F. Russell, ‘‘The Role of Values in Servant Lead- ership,’’ Leadership and Organizational Development Journal 22, no. 2 (2001), pp. 76–83.

44. Robert K. Greenleaf, Servant Leadership: A Journey into the Nature of Legitimate Power and Greatness (Mahwah, NJ: Paulist Press, 1977).

45. The following is based on Greenleaf, Servant Leadership; Walter Kiechel III, ‘‘The Leader as Servant,’’ Fortune (May 4, 1992), pp. 121– 122; and Mary Sue Polleys, ‘‘One University’s Response to the Anti- Leadership Vaccine: Developing Servant Leaders,’’ The Journal of Leadership Studies 8, no. 3 (2002), pp. 117–130.

46. Sendjaya and Sarros, ‘‘Servant Leadership: Its Origin, Development, and Application in Organizations.’’

47. Susan Dominus, ‘‘Is Giving the Secret to Getting Ahead?’’ The New York Times Magazine (March 27, 2013). http://www.nytimes.com/ 2013/03/31/magazine/is-giving-the-secret-to-getting-ahead.html?page- wanted=all&_r=0 (accessed April 4, 2013).

48. C. William Pollard, ‘‘The Leader Who Serves,’’ in Frances Hesselbein, Marshall Goldsmith, and Richard Beckhard, eds., The Leader of the Future (San Francisco: Jossey-Bass, 1996), pp. 241–248; and C. W. Pollard, ‘‘The Leader Who Serves,’’ Strategy and Leadership (September– October 1997), pp. 49–51.

49. Peter Voyer, ‘‘Courage in Leadership: From the Battlefield to the Boardroom,’’ Ivey Business Journal (November–December 2011), http://www.iveybusinessjournal.com/topics/leadership/courage-in- leadership-from-the-battlefield-to-the-boardroom (accessed November 24, 2011).

50. John McCain, ‘‘In Search of Courage,’’ Fast Company (September 2004), pp. 53–56.

51. Richard L. Daft and Robert H. Lengel, Fusion Leadership: Unlocking the Subtle Forces That Change People and Organizations (San Fran- cisco: Berrett-Koehler, 1998).

52. The F.E.A.R. acronym and the quote are from Brian Clark, ‘‘Is F.E.A. R. Holding You Back?’’ Copyblogger.com (May 28, 2010), http://www. copyblogger.com/f-e-a-r/ (accessed May 19, 2011).

53. Dominus, ‘‘Is Giving the Secret to Getting Ahead?’’ 54. Brian Moriarty and R. Edward Freeman, ‘‘Case in Point: To Go from

Worst to First, Alter the Business Model,’’ The Washington Post (December 10, 2011), http://articles.washingtonpost.com/2011-12-10/ business/35286296_1_aetna-employees-john-w-rowe-business-model (accessed December 11, 2011).

55. Carol D. Leonnig and David Nakamura, ‘‘Official Quickly Corralled Agents,’’ The Washington Post (April 22, 2012), p. A1; David Naka- mura, ‘‘Out of Public Eye, a Disgusted Secret Service Director,’’ The Washington Post (April 26, 2012), p. A1; Carol D. Leonnig and David Nakamura, ‘‘Four in Secret Service Fight Back,’’ The Washington Post (May 23, 2012), p. A1; and William Neuman, ‘‘Prostitutes Perplexed as Glare Falls on City’s Brothels,’’ The New York Times (April 25, 2012), http://www.nytimes.com/2012/04/26/world/americas/cartagenas- prostitutes-perplexed-by-global-glare.html?_r=0 (accessed April 6, 2013).

56. Michael Luo, ‘‘Revisiting a Social Experiment, and the Fear That Goes with It,’’ The New York Times (September 14, 2004), Section B, p. 1.

57. Jerry B. Harvey, The Abilene Paradox and Other Meditations on Man- agement (Lexington, MA: Lexington Books, 1988), pp. 13–15.

58. Simon Denyer, ‘‘Incorruptible Indian Bureaucrat Hounded Out of Office for Fighting Graft—43 Times,’’ The Washington Post (October 22, 2012), http://articles.washingtonpost.com/2012-10-22/world/35500968_1_ashok- khemka-vadra-case-robert-vadra (accessed October 23, 2012).

59. A. J. Vogl, ‘‘Risky Work’’ (an interview with Max DuPree), Across the Board (July/August 1993), pp. 27–31.

60. William H. Peace, ‘‘The Hard Work of Being a Soft Manager,’’ Harvard Business Review (November–December 1991), pp. 40–47.

61. Janet P. Near and Marcia P. Miceli, ‘‘Effective Whistle-Blowing,’’ Academy of Management Review 20, no. 3 (1995), pp. 679–708.


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62. James Risen, ‘‘Army Overseer Tells of Ouster over KBR Stir,’’ The New York Times (June 17, 2008), http://www.nytimes.com/2008/06/ 17/washington/17contractor.html?pagewanted=all&_r=0 (accessed April 8, 2013); and John Baldoni, ‘‘Putting Courage into Action for Others and Yourself,’’ Leader to Leader (Winter 2011), pp. 24–26.

63. Robert Jeffery, ‘‘Whistleblowers: ‘Suddenly I Was the Lead in a John Grisham Novel’: How Michael Woodford, The CEO Who Exposed the Olympus Fraud, Gambled His Career on Doing the Right Thing,’’ People Management (November 2012), pp. 28–29.

64. Ibid. 65. Risen, ‘‘Army Overseer Tells of Ouster.’’ 66. Alyse Walsh, ‘‘Sisters in Arms: Young Afghan Activist Continues

Malala’s Fight,’’ The Daily Beast (October 18, 2012), http://www. thedailybeast.com/articles/2012/10/18/sisters-in-arms-young-afghan- activist-continues-malala-s-fight.html (accessed April 8, 2013).

67. General Stanley McChrystal, as told to Kris Frieswick, ‘‘How I Deal With My Biggest Fear,’’ Inc. (July-August 2015), pp. 90–91; and Dan Schawbel, ‘‘Stanley McChrystal: What the Army Can Teach You About Leadership,’’ Forbes (July 13, 2015), http://www.forbes.com/ sites/danschawbel/2015/07/13/stanley-mcchrystal-what-the-army-can-teach- you-about-leadership/ (accessed October 20, 2015).

68. Discussed in Malcolm Gladwell, ‘‘Small Change: Why the Revolution Will Not Be Tweeted,’’ The New Yorker (October 4, 2010), http://

www.newyorker.com/reporting/2010/10/04/101004fa_fact_gladwell (accessed April 8, 2013).

69. James M. Kouzes and Barry Z. Posner, The Leadership Challenge: How to Get Extraordinary Things Done in Organizations (San Fran- cisco: Jossey-Bass, 1988).

70. Gladwell, ‘‘Small Change: Why the Revolution Will Not Be Tweeted’’; and Wheatley, ‘‘Fearless Leaders.’’

71. Peggy Payne, ‘‘How Insults Spur Success,’’ The New York Times (October 15, 2011), http://www.nytimes.com/2011/10/16/jobs/16pre. html?_r=0 (accessed April 8, 2013).

72. Michael Warshaw, ed., ‘‘Great Comebacks,’’ Success (July/August 1995), pp. 33–46.

73. Ira Chaleff, The Courageous Follower: Standing Up to and for Our Leaders (San Francisco: Berrett-Koehler, 1995).

74. This section is based on Kathleen K. Reardon, ‘‘Courage as a Skill,’’ Harvard Business Review (January 2007), pp. 58–64; Mary C. Gentile, ‘‘Managing Yourself: Keeping Your Colleagues Honest,’’ Harvard Business Review (March 2010), pp. 114–117; and Wheatley, ‘‘Fearless Leaders.’’

75. Based on Wheatley, ‘‘Fearless Leaders’’; and Gentile, ‘‘Managing Your- self: Keeping Your Colleagues Honest’’ (example reported in Gentile).


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Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

Chapter 7: Followership

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YOUR LEADERSHIP CHALLENGE After reading this chapter, you should be able to:

• Effectively manage both up and down the hierarchy. • Recognize your followership style and take steps to become a more effective follower. • Understand the leader’s role in developing effective followers. • Apply the principles of effective followership, including responsibility, service, challenging authority, participating in change, and knowing when to leave.

• Implement the strategies for effective followership at school or work. • Know what followers want from leaders and what leaders expect from followers. • Use feedback and leadership coaching to help followers grow and achieve their potential.

CHAPTER OUTLINE 198 The Art of Followership

200 What Your Leader Wants from You

201 Styles of Followership

205 Strategies for Managing Up

210 The Power and Courage to Manage Up

213 What Followers Want from Leaders

In the Lead

199 Irvin D. Yalom and Marcia Reynolds

204 Dawn Marshall, Pathmark

209 John Stroup, Belden Inc.

213 Laura Stein, Clorox Company

Leader’s Self-Insight

203 The Power of Followership

207 Are You an Annoying Follower?

217 Ready for Coaching

Leader’s Bookshelf

209 Leadership Is Half the Story: Rethinking Followership, Leadership, and Collaboration

Leadership at Work

219 Follower Role Play

Leadership Development: Cases for Analysis

220 Waiting for Clearance

221 Jake’s Pet Land

Rich Gee founded his own executive coaching firm more than 10 years agoand the Rich Gee Group motto, ‘‘No Excuses. Make It Happen,’’ encapsu-lates his belief that people can shape the life and career they want.1 He knows what he’s talking about. Working for 20 years in the corporate world, Gee once had a boss who called him into the office and criticized him for leaving work at 5:00 p.m. When questioned, the boss acknowledged that Gee was doing good work and meeting deadlines. Gee reminded him that he arrived at the office at 6:30 a.m., two hours earlier than his colleagues. He also told the boss that he could be reached by cell phone at any time and pointed out that he always responded quickly to emergency requests. Gee began keeping his boss up-to-date on his proj- ects and checking in with him every day before he left. Gee says the boss soon ‘‘saw that it wasn’t hours that mattered—it was how hard I worked.’’ By opening better communication lines with his boss, Gee improved their relationship and continued to be able to work hours that took advantage of his best work time and enabled him to meet personal commitments as well as goals for the organization.2

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Rich Gee was doing what good followers do. He made sure he understood his leader’s concerns and worked to build a positive relationship that enabled him to do his best job as a follower and also let the leader feel comfortable that Gee would help the leader meet his goals for the organization.

In this chapter, we examine the important role of followership, including the na- ture of the follower’s role, what leaders want from followers, and the different styles of followership that individuals express. The chapter explores how effective fol- lowers behave, discusses strategies for managing up, and looks at the sources of power and courage for managing up. Finally, we look at what followers want from leaders and examine the leader’s role in developing and supporting followers.

7-1 THE ART OF FOLLOWERSHIP Leadership and followership are closely intertwined. Considering leadership the sole basis for the success of the organization is a flawed assumption, and it limits the op- portunity for people throughout the organization to accept responsibility and make active, valuable contributions.3 For any group or organization to succeed, there must be people who willingly and effectively follow just as there must be those who will- ingly and effectively lead. Followership is the testing ground, a place to learn skills val- uable for leadership. Moreover, leadership and followership are fundamental roles that individuals shift into and out of under various conditions. Everyone—leaders included—is a follower at one time or another. Indeed, despite the focus on leadership, most of us are more often followers than leaders.4 Therefore, it is important for people to learn to manage both up and down the hierarchy, as illustrated in Exhibit 7.1

EXHIBIT 7.1 Good Leaders Manage Both Up and Down the Hierarchy

Managing Up

Managing Down

Source: Based on Mark Hurwitz and Samantha Hurwitz, ‘‘The Romance of the Follower: Part 2,’’ Industrial and Commercial Training 41, no. 4 (2009), pp. 199–206.


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7-1a Learn to Manage Up as Well as Down Managing up means consciously and deliberately developing a meaningful, task- related, mutually respectful relationship with your direct superiors; offering insight, information, guidance, and initiative; and challenging your superiors when neces- sary in order to enable all members to do their best work for the organization.5

People who effectively manage both up and down the hierarchy are more successful. Leaders at higher organizational levels depend on their subordinates for informa- tion, support, and assistance in accomplishing the organization’s goals, so your boss needs you to manage up. In addition, your subordinates depend on you to help them get the information, resources, support, and recognition they need and deserve from higher levels. People like working for leaders who have influence with their superi- ors because it enhances their own status in the organization and helps them get what they need to do their jobs well.6 You can’t be a really good leader unless you man- age the boss as skillfully as you manage employees.

7-1b Managing Up Presents Unique Challenges Many new leaders are uncomfortable with the idea of managing their boss. Their overriding concern is pleasing the boss and keeping him or her happy. Therefore, they hesitate to pass along any information that might not be welcome, and they avoid questioning any of their superior’s assumptions, ideas, or decisions.7 In the long run, these self-protective strategies hurt the employee, the boss, and the organization.

One reason we may have difficulty managing upward is that we’re not ‘‘in con- trol’’ in this relationship as we are in our relationships with subordinates. It is natu- ral that we try to protect ourselves in a relationship where we feel we have little control and little power.8 Yet in reality we have more power than we know. Bosses need our support—our talent, information, ideas, and honesty—in order to do their jobs well, just as we need their support to do our best work. Everyone benefits when leaders learn to effectively manage relationships with superiors as well as subordi- nates. Consider the following examples.

IN THE LEAD Irvin D. Yalom and Marcia Reynolds Irvin D. Yalom, emeritus professor of psychiatry at Stanford University, has some interesting stories from his counseling experience with clients in individual and group therapy. One woman ranted at length in a group therapy session about her boss, who never listened and refused to pay her any respect. There’s nothing funny about a bad boss, but the interesting thing about this client was that as her work with Yalom continued, her complaints about her terrible boss persisted through three different jobs with three different supervisors. It is likely that not only she but also her supervisors, colleagues, and the companies where she worked suffered due to her unproductive relationships with her superiors.

Contrast this woman’s attitude and approach to that of Marcia Reynolds, who once worked for a micromanaging boss who was always criticizing and correcting her work. Reynolds decided to stop resenting his micromanaging and instead ‘‘act as though he were the world’s best boss with the world’s best employee.’’ Instead of complaining and pushing back when her boss micromanaged, Reynolds was cheerful and helpful. She says an

Managing up consciously and deliberately developing a meaningful, task-related, mutually respectful relationship with your direct superiors


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Marcia Reynolds improved her relationship with her boss by understanding that being supportive and helpful was more productive than being resentful. To effectively manage up requires understanding what leaders want and need.

7-2 WHAT YOUR LEADER WANTS FROM YOU Leaders and organizational situations vary, but there are some qualities and behav- iors that every good leader wants from his or her followers. The following are ones that have been shown to contribute to productive and rewarding leader–follower relationships.10

1. A Make-It-Happen Attitude. Leaders don’t want excuses. They want results. A leader’s job becomes smoother when he or she has followers who are positive and self-motivated, who can get things done, who accept responsibility, and who excel at required tasks. Leaders value those people who propose ideas, show initiative, and take responsibility when they see something that needs to be done or a problem that needs to be solved. For example, when the night janitor at FAVI, a French copper-alloy foundry, was cleaning one night, the phone rang and she answered it to discover that an important visitor to the company had been delayed and was now waiting at the airport without the promised ride to his hotel. (FAVI’s CEO had left the airport when the visitor didn’t arrive as expected.) The janitor took the keys to one of the company cars, drove 90 minutes to pick up the visitor and deliver him to his hotel, then went back to finish the cleaning she had interrupted three hours earlier. Although this was nowhere close to being within her official job duties, the employee knew that leaders in the company valued and rewarded people who had the gumption to take responsibility for getting things done.11

2. A Willingness to Collaborate. Leaders are responsible for much more in the organization than any individual follower’s concerns, feelings, and performance. Each follower is a part of the leader’s larger system and should realize that his or her actions affect the whole. Larry Bossidy, former chairman and CEO of AlliedSignal and of Honeywell, tells about a conflict between the heads of manufacturing and marketing at one organization. The two managers didn’t communicate with one another, so inventories were always out of whack. The CEO finally had to fire them both because their refusal to cooperate was hurting the organization. They got their jobs back when they jointly called and said they got the point and would change their behavior.12

3. The Motivation to Stay Up-to-Date. Bosses want followers to know what is happening in the organization’s industry or field of endeavor. In addition, they want people to understand their customers, their competition, and how changes in technology or world events might affect the organization. Most people try to

interesting thing happened: ‘‘When I stopped resisting, he started trusting me. When there was no longer any resistance, he quit fighting. Doing that really empowered me.’’ As her boss increasingly trusted Reynolds, his micromanaging continued to abate, their relationship continued to improve, and both were happier and more productive. Reynolds was able to do her job better and get her subordinates what they needed by learning to manage up.9


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learn all they can in order to get a job, but they sometimes grow complacent and fail to stay current with what’s going on outside the narrow confines of their day- to-day work.

4. The Passion to Drive Your Own Growth. Similarly, leaders want followers who seek to enhance their own growth and development rather than depending solely on the leader to do it. Anything that exposes an individual to new people and ideas can enhance personal and professional development. One example is when followers actively network with others inside and outside the organization. Another is when followers take on difficult assignments, which demonstrates a willingness to face challenges, stretch their limits, and learn.

7-3 STYLES OF FOLLOWERSHIP Despite the importance of followership and the crucial role that followers play in the success of any endeavor, research on the topic is limited. One theory of follower- ship was proposed by Robert E. Kelley, who conducted extensive interviews with leaders and followers and came up with five styles of followership.13 These follower- ship styles are categorized according to two dimensions. The first dimension is the quality of independent, critical thinking versus dependent, uncritical thinking. Critical thinking means approaching subjects, situations, and problems with thoughtful questions and in an unbiased way, gathering and assessing ideas and information objectively, and mentally penetrating into underlying implications of various alter- natives. This recalls our discussion of mindfulness in Chapter 5; independent critical thinkers are mindful of the effects of their and other people’s behavior on achieving organizational goals. They are aware of the significance of their own actions and the actions of others. They can weigh the impact of decisions on the vision set forth by a leader and offer constructive criticism, creativity, and innovation. Conversely, a dependent, uncritical thinker does not consider possibilities beyond what he or she is told, does not contribute to the cultivation of the organization, and accepts the leader’s ideas without assessing or evaluating them.

According to Kelley, the second dimension of followership style is active versus passive behavior. An active individual participates fully in the organization, engages in behavior that is beyond the limits of the job, demonstrates a sense of ownership, and initiates problem solving and decision making. A passive individual is character- ized by a need for constant supervision and prodding by superiors. Passivity is often regarded as laziness; a passive person does nothing that is not required and avoids added responsibility.

The extent to which one is active or passive and is a critical, independent thinker or a dependent, uncritical thinker determines whether he or she is an alien- ated follower, a passive follower, a conformist, a pragmatic survivor, or an effective follower, as shown in Exhibit 7.2.

The alienated follower is an independent, critical thinker but is passive in the or- ganization. Alienated followers are often effective followers who have experienced setbacks and obstacles, perhaps promises broken by superiors. Thus, they are capa- ble, but they focus exclusively on the shortcomings of the organization and other people. Often cynical, alienated followers are able to think independently, but they do not participate in developing solutions to the problems or deficiencies they see. For example, Barry Paris spent more than 10 years writing on and off for the Pittsburgh Post-Gazette, where he was known for his bad attitude and lack of

Critical thinking thinking independently and being mindful of the effects of one’s own and other peo- ple’s behavior on achieving the organization’s vision

Uncritical thinking failing to consider possibil- ities beyond what one is told; accepting the leader’s ideas without thinking

Alienated follower a person who is an inde- pendent, critical thinker but is passive in the organization


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enthusiasm and teamwork. Eventually Paris realized that he wasted that time rumi- nating over what he perceived as the hypocrisy of journalistic objectivity. ‘‘I could never resign myself to it,’’ says Paris. Thus, rather than doing his best and trying to help others maintain standards of integrity and objectivity, he allowed hostility and cynicism to permeate his work.14

The conformist participates actively in the organization but does not use critical thinking skills in his or her task behavior. In other words, a conformist typically car- ries out any and all orders regardless of the nature of those tasks. The conformist participates willingly but without considering the consequences of what he or she is being asked to do—even at the risk of contributing to a harmful endeavor. For example, the thousands of people who have lost their homes to foreclosure can blame not only top executives in firms like Countrywide, Fannie Mae, and IndyMac Bank who embraced the rampant sale of subprime mortgages (sometimes called liars’ loans) but also many conformist managers and employees who blindly went along with the strategy. In his book The Foreclosure of America, former Country- wide executive Adam Michaelson writes of the groupthink and blind conformity that squelched resistance and led people to go along with company actions even if they thought they were wrong.15 A conformist is concerned only with avoiding con- flict. This style often results from rigid rules and authoritarian environments in which leaders perceive subordinate recommendations as a challenge or threat.16

The pragmatic survivor has qualities of all four extremes—depending on which style fits with the prevalent situation. This type of follower uses whatever style best benefits his or her own position and minimizes risk. Within any given company, some 25 to 35 percent of followers tend to be pragmatic survivors, avoiding risks and fostering the status quo, often for political reasons. Government appointees of- ten demonstrate this followership style because they have their own agendas and a short period of time in which to implement them. They may appeal to the necessary individuals, who themselves have a limited time to accomplish goals and are there- fore willing to do whatever is necessary to survive in the short run. Pragmatic survi- vors also may emerge when an organization is going through desperate times, and followers find themselves doing whatever is needed to get themselves through the difficulty.17

The passive follower exhibits neither critical, independent thinking nor active participation. Being passive and uncritical, these followers display neither initiative nor a sense of responsibility. Their activity is limited to what they are told to do, and they accomplish things only with a great deal of supervision. The assistant man- ager at one large hotel found herself having to supervise her boss’s daughter, who failed to follow procedures, had to be told over and over when and how to perform

EXHIBIT 7.2 Followership Styles

Follower Type Thinking Style Level of Engagement

Alienated Follower Independent, critical thinker Passive in the organizationIndependent, critical thinker Passive in the organization Conformist Dependent, uncritical thinker Active in the organizationDependent, uncritical thinker Active in the organization Pragmatic Survivor Both as needed Both as needed Passive Follower Dependent, uncritical thinker Passive in the organizationDependent, uncritical thinker Passive in the organization Effective Follower Independent, critical thinker Active in the organizationIndependent, critical thinker Active in the organization

Source: Based on information in Robert E. Kelley, The Power of Followership (New York: Doubleday, 1992)

NEW LEADER ACTION MEMO Complete the questionnaire in Leader’s Self-Insight 7.1 to evaluate how well you carry out a followership role.

Conformist a follower who participates actively in the organization but does not use critical thinking skills in his or her task behavior

Pragmatic survivor a follower who has qualities of all four extremes (alien- ated, effective, passive, con- formist), depending on which style fits with the prevalent situation

Passive follower a person in an organization who exhibits neither critical, independent thinking nor active participation


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tasks, and showed little interest in the job, reflecting the characteristics of a passive follower.18 Passive followers leave the thinking to their leaders. Sometimes, how- ever, this style is the result of a leader who expects and encourages passive behavior. Followers learn that to show initiative, accept responsibility, or think creatively is not rewarded and may even be punished by the leader, so they grow increasingly passive.

LEADER’S SELF-INSIGHT 7.1 The Power of Followership

Instructions: For each of the following statements, think of a specific situation in which you worked for a boss in an orga- nization. Then answer whether each item is Mostly False or Mostly True for you in that follower situation.

Mostly False

Mostly True

1. I often commented to my manager on the broader importance of data or events. ________ ________

2. I thought carefully and then expressed my opinion about critical issues. ________ ________

3. I frequently suggested ways of improving my and others’ ways of doing things. ________ ________

4. I challenged my manager to think about an old problem in a new way. ________ ________

5. Rather than wait to be told, I would figure out the critical activities for achieving my unit’s goals. ________ ________

6. I independently thought up and championed new ideas to my boss. ________ ________

7. I tried to solve the tough problems rather than expect my leader to do it. ________ ________

8. I played devil’s advocate if needed to demonstrate the upside and downside of initiatives. ________ ________

9. My work fulfilled a higher personal goal for me. ________ ________

10. I was enthusiastic about my job. ________ ________ 11. I understood my leader’s goals

and worked hard to meet them. ________ ________ 12. The work I did was significant

to me. ________ ________ 13. I felt emotionally engaged

throughout a typical day. ________ ________

14. I had the opportunity to do what I do best each day. ________ ________

15. I understood how my role contributed to the company’s success. ________ ________

16. I was willing to put in a great deal of effort beyond what was normally expected. ________ ________

Scoring and Interpretation Questions 1–8 measure independent thinking. Sum the number of Mostly True answers checked and write your score below.

Questions 9–16 measure active engagement. Sum the number of Mostly True answers checked and write your score below.

Independent Thinking Total Score ________ Active Engagement Total Score ________ These two scores indicate how you carried out your fol-

lowership role. A score of 2 or below is considered low. A score of 6 or higher is considered high. A score of 3–5 is in the middle. Based on whether your score is high, middle, or low, assess your followership style below.

Followership Style

Independent Thinking Score

Active Engagement Score

Effective High High Alienated High Low Conformist Low High Pragmatist Middle Middle Passive Low Low

How do you feel about your followership style? Compare your style with that of others in your class. What might you do to be more effective as a follower?

Sources: Based on Douglas R. May, Richard L. Gilson, and Lynn M. Harter, ‘‘The Psychological Conditions of Meaningfulness, Safety, and Availability and the Engagement of the Human Spirit at Work,’’ Journal of Occupa- tional and Organizational Psychology 77 (March 2004), pp. 11–38; Robert E. Kelley, The Power of Followership: How to Create Leaders People Want to Follow and Followers Who Lead Themselves (New York: Doubleday, 1992); and Towers Perrin HR Services, ‘‘Working Today: Understanding What Drives Employee Engagement,’’ (2003), www.towersperrin.com

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Passive followers are often the result of leaders who are overcontrolling of others and who punish mistakes.19

The effective follower is both a critical, independent thinker and active in the organization. Effective followers behave the same toward everyone regardless of their position in the organization. They do not try to avoid risk or conflict. Rather, effective followers have the courage to initiate change and put themselves at risk or in conflict with others, even their leaders, to serve the best interests of the organization.

Characterized by both mindfulness and a willingness to act, effective followers are essential for an organization to be effective. They are capable of self-management, discern strengths and weaknesses in themselves and in the organization, are commit- ted to something bigger than themselves, and work toward competency, solutions, and a positive impact. Dawn Marshall, a cashier at Pathmark, illustrates the charac- teristics of the effective follower.

Dawn Marshall has taken what some would consider a boring, low-paying job and imbued it with meaning and value. She accepts responsibility for her own per- sonal fulfillment and finds ways to expand her potential and use her capacities to serve the needs of others and the organization. Effective followers like Dawn Mar- shall also act as leaders by setting an example and using a positive attitude to inspire and uplift other people.

IN THE LEAD Dawn Marshall, Pathmark Five hours into her shift, four harried customers line up at Dawn Marshall’s cash register at the Pathmark supermarket in Upper Derby, Pennsylvania. Eight minutes and 27 bags later, they’re all out the door with smiles on their faces. Few people would think Marshall has a glamorous or influential job—but she treats it like the most significant job in the world.

Marshall specializes in giving people a little bit of luxury in the mundane chore of grocery shopping. She’s a good cashier, but her forte is bagging. Marshall knows how to pack the flimsy plastic bags so that eggs don’t get broken, bread doesn’t get squashed, and ground beef doesn’t leak all over the cereal boxes. She even won a National Grocers Association contest as the best bagger in America, based on speed, bag-building technique, style, and attitude. ‘‘I believe it’s an art that should be taken seriously,’’ Marshall says of her work. Many Pathmark customers agree. They’re tired of cashiers and baggers who simply throw the stuff in bags without giving a care for the customer’s convenience or needs. One customer admits that she shops at Pathmark rather than a store closer to her home because of Marshall. ‘‘I like her attitude,’’ says the customer. ‘‘Clone her.’’

Even though Marshall works on her feet all day and often has to put up with rude or insensitive customers, she handles whatever comes her way with a positive attitude. For Marshall, her job is not bagging groceries but making people’s lives easier. Thus, she approaches her work with energy and enthusiasm, striving to do her best in every encounter. She doesn’t need close supervision or someone pushing her to work harder. The busier it is, the better she likes it.20

Effective follower a critical, independent thinker who actively partici- pates in the organization

NEW LEADER ACTION MEMO As a leader, you can also be an effective follower. You can think independently and critically instead of blindly accepting what your superiors tell you. Rather than dwelling on the shortcomings of others, you can look for solutions.


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Effective followers are far from powerless—and they know it. Therefore, they do not despair in their positions, nor do they resent or manipulate others. This chap- ter’s Consider This describes one writer’s meaning of effective followership.

7-4 STRATEGIES FOR MANAGING UP There is growing recognition that how followers manage their leaders is just as im- portant as how their leaders manage them.21 Two aspects of managing up are understanding the leader and using specific tactics to improve the leader–follower relationship.

7-4a Understand the Leader We all spend time and energy trying to understand people who are important to us, so it only makes sense that you do the same with your boss if you want to have a pro- ductive working relationship. It is up to you to take the initiative to learn about your leader’s goals, needs, strengths and weaknesses, and organizational constraints.

In addition, effective followers study their leader’s preferred work style. No two individuals work alike or behave alike under the same circumstances. Effective fol- lowers learn their leader’s preferences and adapt to them. Interviews with senior executives confirm that this strategy is both effective and appropriate for influencing the leader–follower relationship.22 You can pay close attention to the leader’s behavior in the following areas to know how to be a more effective follower:23

• Does the leader like to know all the details of your plans, projects, and prob- lems, or does she just want the big picture?

ConsiderThis! Our Deepest Fear

Our deepest fear is not that we are inadequate, Our deepest fear is that we are powerful beyond measure.

It is our light, not our darkness, that most frightens us. We ask ourselves, who am I to be brilliant, gorgeous, talented and fabulous? Actually, who are you NOT to be? You are a child of God. Your playing small doesn’t serve the world. There’s nothing enlightened about shrinking so that other people won’t feel insecure

around you. We were born to make manifest the glory . . . that is within us. It’s not just in some of us; it’s in everyone. And as we let our own light shine, we unconsciously give other people permission to do

the same. As we are liberated from our own fear, our presence automatically liberates others.

Source: From A Return to Love: Reflections on the Principles of a Course in Miracles, by Marianne Williamson, published by HarperCollins.


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• Is the leader controlling or empowering? Does he want to closely supervise and be in control of people’s behavior or delegate freely and look for opportunities to help individuals grow and develop to their highest potential?

• Does the leader like to carefully analyze information and alternatives before making a decision, or is she more inclined to make quick decisions and take action?

• Is the leader a reader or a listener? Does he like to have materials presented in written form so he has time to study and analyze them by himself first, or does he prefer an oral presentation where he can ask questions on the spot?

• Is she a numbers person or a word person? Does she want statistics and figures to back up your report or request?

• Is the leader an extrovert or an introvert? Do interactions with large groups of people energize or tire him? Does he like to be involved with people all day or need time alone to think and recharge?

Effective followers seek out all the information they can about their leader from talking to the boss, talking to others, and paying attention to clues in the leader’s behavior, so that they are sensitive to the leader’s work style and needs. For exam- ple, people working with U.S. President Barack Obama learned that he is an intro- vert who likes to have time to reflect. He preferred to have decision memos, briefing materials, and other items in writing so he could carefully study them and think of questions he wanted to ask. Obama liked to consider a lot of information and a va- riety of opinions before acting. President George W. Bush, on the other hand, was an extrovert who preferred oral briefings and relatively quick decisions.24

7-4b Tactics for Managing Up Most followers at some point complain about the leader’s deficiencies, such as a fail- ure to listen, to encourage, or to recognize followers’ efforts.25 Sometimes, though, we need to look in the mirror before blaming our leaders for an unsatisfying or unproductive relationship. The authors of a new book on leadership and follower- ship report that poor followership is cited as one of the top three reasons people get fired, and often the primary one. This provides solid evidence that it is just as impor- tant to build up one’s followership skills as to develop leadership abilities, as further described in the Leader’s Bookshelf. To be effective, followers develop a meaningful, task-related relationship with their bosses that enables them to add value to the or- ganization even when their ideas differ from those of the leader.26

Followers should also be aware of behaviors that can annoy leaders and inter- fere with building a quality relationship. One business magazine interviewed power- ful people about their pet peeves and identified more than two dozen misdemeanors that followers often commit without being aware of it.27

Most relationships between leaders and followers are characterized by some emotion and behavior based on authority and submission. Leaders are authority fig- ures and may play a disproportionately large role in the mind of a follower.28

Exhibit 7.3 illustrates four tactics that enable followers to overcome the authority- based relationship and develop an effective, respectful relationship with their leaders.

Be a Resource for the Leader Effective followers align themselves with the purpose and the vision of the organization. By understanding the vision and goals, followers can be a resource of strength and support for the leader. An effective follower can

NEW LEADER ACTION MEMO Leader’s Self-Insight 7.2 gives you a chance to see if you’re guilty of being an annoying follower.


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complement the leader’s weaknesses with the follower’s own strengths.29 Similarly, effective followers indicate their personal goals and the resources they bring to the organization. Effective followers inform their leaders about their own ideas, beliefs, needs, and constraints. The more leaders and followers can know the day-to-day activities and problems of one another, the better resources they can be for each other. At one organization, a group of disabled employees took advantage of a board meeting to issue rented wheelchairs to the members, who then tried to move around the factory in them. Realizing what the workers faced, the board got the factory’s ramps improved, and the employees became a better resource for the organization.30

LEADER’S SELF-INSIGHT 7.2 Are You an Annoying Follower?

1. If you think there might be a mistake in something you’ve done, what do you do? A. Fess up. It’s better to share your concerns up front so

your boss can see if there is a problem and get it cor- rected before it makes him look bad.

B. Try to hide it for now. Maybe there isn’t really a problem, so there’s no use in making yourself look incompetent.

2. How do you handle a criticism from your boss? A. Poke your head in her door or corner her in the cafe-

teria multiple times to make sure everything is okay between the two of you.

B. Take the constructive criticism, make sure you under- stand what the boss wants from you, and get on with your job.

3. You’re in a crowded elevator with your boss after an important meeting where you’ve just landed a million- dollar deal. You: A. Celebrate the victory by talking to your boss about

the accomplishment and the details of the meeting. B. Keep your mouth shut or talk about non-business-

related matters. 4. Your boss has an open-door policy and wants people to

feel free to drop by her office any time to talk about anything. You pop in just after lunch and find her on the phone. What do you do? A. Leave and come back later. B. Wait. You know most of her phone calls are quick, so

she’ll be free in a few minutes. 5. You’ve been called to the boss’s office and have no idea

what he wants to talk about. A. You show up on time, empty-handed, to concentrate

on what the boss has to say. B. You show up on time with a pen, paper, and your cal-

endar or mobile device.

6. You’ve been trying to get some face time with your boss for weeks and luckily catch him or her in the bathroom. You: A. Take care of personal business and get out of there. B. Grab your chance to schmooze with the boss. Ask a

question or tell a joke. You might not get another chance any time soon.

Here are the appropriate follower behaviors.

1. A. Honest self-assessment and fessing up to the boss builds mutual confidence and respect. Nothing destroys trust faster than incompetence exposed after the fact.

2. B. David Snow, former president and COO of Empire Blue Cross and Blue Shield, refers to insecure, thin-skinned people who have to check in frequently after a criticism as door swingers. Door swingers are annoying in both our personal and work lives. Just get on with things.

3. B. You have no idea who else is in the elevator. Keep your mouth shut. You can crow about the new deal later in private.

4. A. There’s nothing worse than having someone hovering while you’re trying to carry on a phone conversation. Leave a note with your boss’s assistant or come back later.

5. B. You can usually be safe in assuming your boss hasn’t called you in for idle chitchat. Never show up without a pen and paper or tablet to make notes.

6. A. At best, to use the bathroom as a place to try to impress the boss makes you look desperate. It also shows a lack of tact and judgment.

Most of these seem obvious, but based on interviews with leaders, subordinates commit these mistakes over and over in the workplace. Keep these missteps in mind so you don’t become an annoying follower.

Source: Based on William Speed Weed, Alex Lash, and Constance Loizos, ‘‘30 Ways to Annoy Your Boss,’’ MBA Jungle (March–April 2003), pp. 51–55.

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Help the Leader Be a Good Leader Followers’ influence upon a leader can enhance the leader or accentuate the leader’s shortcomings.31 Good followers seek the lead- er’s counsel and look for ways the leader can help improve their skills, abilities, and value to the organization. They help their leaders to be good leaders by simply say- ing what they need in order to be good followers. If a leader believes a follower val- ues his or her advice, the leader is more likely to give constructive guidance rather than unsympathetic criticism.

A leader can also become a better leader when followers compliment the leader for behavior that followers appreciate, such as listening, rewarding followers’ con- tributions, and sharing credit for accomplishments.32 In addition, a follower can provide enthusiastic support for a leader, but not to the extent that the follower fails to be candid with a leader who is unethical or threatens the values or objectives of the organization. It is in leaders’ best interests when followers help them make needed changes or avoid ethical problems.33

Build a Relationship with the Leader Effective followers work toward an authentic relationship with their leaders, which includes developing trust and speaking honestly on the basis of that trust.34 By building a relationship with the leader, a follower makes every interaction more meaningful to the organization. Furthermore, the relationship is imbued with mutual respect rather than authority and submission. John Stroup, CEO of Belden Inc., says he learned this in a previous job at Danaher Corporation.

EXHIBIT 7.3 Ways to Influence Your Leader

View the Leader Realistically

Give up idealized expectations.

Don’t hide anything.

Don’t criticize leader to others.

Disagree occasionally.

Build a Relationship

Ask about leader at your level/position.

Welcome feedback and criticism, such as “What experience led you to that opinion?”

Ask leader to tell you company stories.

Help the Leader Be a Good Leader Ask for advice. Tell leader what you think. Find things to thank leader for.

Be a Resource for the Leader Determine the leader’s needs. Zig where leader zags. Tell leader about you. Align self to team purpose/vision.

NEW LEADER ACTION MEMO As a leader, you can use strategies for managing up to create an equitable and respectful relationship with your superiors. You can help your supervisor be the best he or she can be by getting beyond submissive feelings and behaviors, recognizing that leaders are fallible, and being a resource for the leader.


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LEADER’S BOOKSHELF Leadership Is Half the Story: Rethinking Followership, Leadership, and Collaboration

by Marc and Samantha Hurwitz

You just got promoted to a high-level executive job. Thank goodness, no more worrying about all that ‘‘managing up’’ stuff, right? Wrong. ‘‘Followership . . . becomes more, not less, important as we move up the organizational ladder,’’ Marc and Samantha Hurwitz say in their book Leadership Is Half the Story. The two have been studying follower- ship for more than a decade and have found that ‘‘in any performance eval- uation, about half is likely based on followership.’’

WHAT POOR FOLLOWERS DON’T DO Unfortunately, most people know what it feels like to work for a bad boss. But, unless we’ve been in a leadership posi- tion, most of us don’t realize how it feels to have a poor follower. Based on the Hurwitzes’ research, here are a few of the mistakes poor followers make that can get them fired, along with some tips for how to avoid them:

• They Don’t Practice ‘‘Offensive Com- munication.’’ Poor followers wait for the supervisor to ask, but great fol- lowers take the offensive and provide a ‘‘dashboard’’ of key information to

keep their leaders up to date on what they are doing. Remember that your leader is at least as busy as you are. Providing regular summaries of your projects and results makes the leader’s job easier, as well as increas- ing your visibility in the organization. Good followers also make sure the communication style suits the leader. They don’t provide a lengthy written report when the leader wants a two- minute verbal update.

• They Don’t Tailor Their Innovative Thinking to the Leader’s Needs. The Hurwitzes call this mistake ‘‘thinking outside the boss.’’ Leaders want followers who take initiative and think innovatively, but many people fail to clarify what the leader wants and needs. Good followers let their creative juices flow, but they first seek to understand what kind of creativity the leader needs, what resources and constraints exist for doing new things, and how much risk the leader is comfortable with.

• They Don’t Try to Understand a New Boss. Poor followers act like boss-stritches, putting their heads in

the sand and going on as if nothing has changed except that they have to call a new person boss. Great fol- lowers, on the other hand, realize how important it is to learn about the new leader’s priorities, preferen- ces, strengths and weaknesses, and pet peeves. They adapt to the leader to make sure they are the best partners possible in the rela- tionship with their new leader.

MAKE A FLIP The Hurwitzes use the acronym FliP (Followership, leadership, innovation, and Partnership) as the foundation for talking about the important compo- nents of a strong organization, and they incorporate numerous FliPtips and FliPskills for both leaders and followers into the book. ‘‘Followership is the other side of the leadership equation,’’ they write. ‘‘Everybody can’t be leading all the time. And, when you aren’t lead- ing, you need to take on an active, engaged, thoughtful followership role.’’

Source: Leadership Is Half the Story, by Marc andLeadership Is Half the Story, by Marc andLeadership Is Half the Story Samantha Hurwitz, is published by the Univer- sity of Toronto Press.

IN THE LEAD John Stroup, Belden Inc. John Stroup, CEO of Belden Inc., a maker of electrical cables, says he is much more likely to promote followers who disagree with and challenge him occasionally. However, the key is whether they have the savvy to do it the right way. In his previous job at Danaher Corporation, Stroup saw some newly recruited senior managers get fired or transferred because they pushed for changes or urged their bosses to adopt ideas before they had built credibility with their superiors.

Stroup took the lesson to heart and began building positive and respectful relationships with his immediate supervisor and other top executives. Eventually, he told them he wanted to make a change in his division by offering certain customers complete solutions for their specific needs. It was a departure from standard procedures, and it represented a risky strategic shift for the company. His supervisor disagreed with the decision, but after hearing Stroup’s arguments, he eventually went along with it because ‘‘he recognized my strengths,’’

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Other leaders have also learned that building a positive, respectful relationship with the boss is the best way to get important changes implemented. Followers can generate respect by asking questions about the leader’s experiences in the follower’s position, actively seeking feedback, and clarifying the basis for specific feedback and criticism from the leader. By doing so, followers are getting beyond submissive behavior by asking leaders to be accountable for their criticism, to have empathy for the followers’ position, and to share history about something both parties have in common—the organization.

View the Leader Realistically Unrealistic follower expectations present one of the biggest barriers to effective leader–follower relationships.36 Whereas it is reasonable to expect your superiors to be competent, it is naı̈to expect your superiors to be competent, it is naı̈to expect your superiors to be competent, it is naıve and unrealistic to expect them to be perfect. When we accept that leaders are fallible and will make many mistakes, we open the path to an equitable relationship. Followers should view leaders as they really are, not as followers think they should be.

Similarly, effective followers present realistic images of themselves. Followers do not try to hide their weaknesses or cover their mistakes, nor do they criticize their leaders to others. Hiding mistakes is symptomatic of conforming or passive fol- lowers, and followers who waste their time trashing their superiors or the company intensify estrangement and reinforce the mindset of an alienated follower. These kinds of alienated and passive behaviors can have negative—and sometimes disastrous—consequences for leaders, followers, and the organization. Instead of criticizing a leader to others, it is far more constructive to directly disagree with a leader on matters relevant to the department’s or organization’s work.

7-5 THE POWER AND COURAGE TO MANAGE UP There are followers in almost every organization who remind us ‘‘how hollow the label of leadership sometimes is—and how heroic followership can be.’’37 But stand- ing up to the boss isn’t easy. Finding the courage to effectively manage up comes easier when you realize how much leaders depend on followers.38 It’s a fact that our bosses typically have more power than we do. Yet subordinates have more power than many people realize.

7-5a Sources of Power for Managing Up Exhibit 7.4 outlines several sources of power that can be used by followers to manage up.

Personal Sources One personal source of upward influence is the follower’s knowl- edge and skills that are valuable to the organization. A subordinate with useful knowledge is of real benefit to the leader, and his or her departure would be a loss.

Stroup says. ‘‘I felt comfortable enough to push my point of view,’’ he adds, because the relationship was one based on trust and mutual respect.

The idea was a huge success, and Stroup was soon promoted to a group executive position.35

In many ways, great followership

is harder than leadership. It has

more dangers and fewer rewards.

Warren Bennis, leadership expert;

author of Still Surprised: A Memoir of a Life in Leadership


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In addition, someone who has a demonstrated record of performance often develops expertise and in this way can influence the boss’s decisions. A record of successes and a history of contributions can gain a follower expert status. When someone is recognized as an expert, that person often can influence activities because he or she becomes an indispensable resource to the leader. The power to influence is also associated with the effort followers put forth. By demonstrating a willingness to learn, to accept difficult or undesirable projects, and to initiate activities beyond the scope of expected effort, people can increase their power.39

Another way to influence up is with persuasion, which refers to the direct appeal to leaders for desired outcomes.40 Rational persuasion—using facts and reason—is typically the most effective approach when trying to manage upward. By treating the issue in a businesslike manner, formulating a carefully crafted argument and supporting it with details, followers gain attention and respect.41 However, fol- lowers can use a variety of influence tactics, depending on their own personalities and styles and the preferences and style of the leader.42 Chapter 12 will discuss influence tactics in detail.

Position Sources A follower’s formal position also provides sources of power. For example, certain jobs or physical locations can render the follower visible to numer- ous individuals. A position that is key to the flow of information can establish that position and the person in it as critical—thus, influential—to those who need the information. A central location provides influence because the follower becomes known to many people and contributes to the work of many. Access to people and information in an organization provides a means to establish relationships with a broad range of people both inside and outside the organization. With a network of relationships, followers have more clout with the leader and more opportunity to persuade and make significant contributions.

7-5b Necessary Courage to Manage Up Some people tend to think, ‘‘Who am I to challenge the CEO (or director, or team leader)?’’ Yet leaders depend on followers who are willing to step up and challenge them when it is in the interest of the organization. Good followers are not yes men (or women). They are people who think for themselves and conduct their work lives with courage and integrity.43 The discussion of courage and integrity in Chapter 6 applies to followers as well as leaders. To be effective, followers have to know what they stand for and be willing to express their own ideas and opinions to their lead- ers, even though this might mean risking their jobs, being demeaned, or feeling inad- equate.44 Effective followers have the courage to accept responsibility, challenge

EXHIBIT 7.4 Sources of Power for Managing Up

Personal Sources Knowledge, skills Expertise Effort Persuasion

Position Sources Visible position Flow of information Central location Network of relationships


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authority, participate in change, serve the needs of the organization, and leave the organization when necessary.45

The Courage to Assume Responsibility The effective follower feels a sense of per- sonal responsibility and ownership in the organization and its mission. Thus, the follower assumes responsibility for his or her own behavior and its impact on the or- ganization. Effective followers do not presume that a leader or an organization will provide them with security, permission to act, or personal growth. Instead, they initiate the opportunities through which they can achieve personal fulfillment, exer- cise their potential, and provide the organization with the fullest extent of their capabilities.

The Courage to Challenge Effective followers do not sacrifice their personal integ- rity or the good of the organization in order to maintain harmony. If a leader’s actions and decisions contradict the best interests of the organization, effective followers take a stand. Obedience is considered a high virtue in military organi- zations, for example, but the U.S. Army teaches soldiers that they have a duty to disobey illegal or immoral orders.46 Good leaders want followers who are will- ing to challenge them for the good of the organization. At Tyco International, which was one of the few large corporations that got caught up in the account- ing scandals of the early 2000s and managed to restore its reputation, ‘‘the only career-ending move [today] is to not bring bad news forward,’’ says Laurie Sie- gel, senior vice president of human resources. It is a guiding principle at Tyco for leaders to surround themselves with people who will speak up and hold them accountable. Managers’ leadership behaviors are assessed annually and include an evaluation of whether they are willing to challenge their superiors when necessary.47

The Courage to Participate in Transformation Effective followers view the struggle of corporate change and transformation as a mutual experience shared by all mem- bers of the organization. When an organization undergoes a difficult transforma- tion, effective followers support the leader and the organization. They are not afraid to confront the changes and to work toward reshaping the organization. David Chislett of Imperial Oil’s Dartmouth, Nova Scotia, refinery, was faced with this test of courage. The refinery was the least efficient in the industry and the board of direc- tors gave management nine months to turn things around. Chislett’s bosses asked him to give up his management position and return to the duties of a wage earner as part of an overall transformation strategy. He agreed to the request, thereby con- tributing to the success of the refinery’s transformation.48

The Courage to Serve An effective follower discerns the needs of the organization and actively seeks to serve those needs. Just as leaders can serve others, as discussed in the previous chapter, so can followers. A follower can provide strength to the leader by supporting the leader and by contributing to the organization in areas that complement the leader’s position. By displaying the will to serve others over themselves, followers act for the common mission of the organization with a passion that equals that of a leader. Laura Stein, general counsel of The Clorox Company, proved herself to be an exceptional follower after the company hired an outside CEO.

NEW LEADER ACTION MEMO As a follower, you can assume responsibility for your own personal development, behavior, and work performance. You can look for opportunities to make a difference, seek to meet organizational needs, serve others, and work toward the common good.

NEW LEADER ACTION MEMO As a follower, you can support your leaders through difficult times, but have the courage to challenge your superiors when their behavior or decisions contradict the best interests of the organization.


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The Courage to Leave Sometimes organizational or personal changes create a situa- tion in which a follower must withdraw from a particular leader–follower relation- ship. People might know they need new challenges, for example, even though it is hard to leave a job where they have many friends and valued colleagues. If followers are faced with a leader or an organization unwilling to make necessary changes, it is time to take their support elsewhere. In addition, a follower and leader may have such strong differences of opinion that the follower can no longer support the lead- er’s decisions and feels a moral obligation to leave. U.S. major general John Batiste turned down a promotion to three-star general and resigned because he felt he could no longer support civilian leaders’ decisions regarding the war in Iraq. The role of military officers is to advise civilian leaders and then carry out orders even when they disagree. General Batiste spent weeks torn between his sense of duty and respect for the chain of command and a feeling that he owed it to his soldiers to speak out against leaders’ decisions. Ultimately, believing he could no longer serve his leaders as he should, the general had the courage to leave the job, even though it meant the end of a lifelong career he highly valued.50

7-6 WHAT FOLLOWERS WANT FROM LEADERS Throughout much of this chapter, we’ve talked about demands on followers and how followers can become more effective and powerful in the organization. However, the full responsibility doesn’t fall on the follower. Good followers are created partly by leaders who understand their requirements and obligations for developing people.51

Research indicates that followers have expectations about what constitutes a de- sirable leader.52 Exhibit 7.5 shows the top four choices in rank order based on sur- veys of followers about what they desire in leaders and colleagues.

IN THE LEAD Laura Stein, The Clorox Company One expert estimates that managers have a 30 percent to 40 percent chance of being fired after a company hires an outside CEO. The best strategy? Make it your job to serve the new leader and help him or her succeed.

That’s what Laura Stein, general counsel of Clorox, did. Before Donald Knauss (now retired) even took the CEO job, Stein did extensive research on him to help her know how to work with him most effectively. She learned, for example, that Knauss prefers one-page memos rather than reams of data and informal interactions rather than formal meetings. In addition, she began looking for how she could best serve Knauss and the organization as it embarked on a new path. Even if she disagreed with any strategic changes he wanted to make, Stein believed it was her job to support them.

Since Stein had previously worked in China, she volunteered to informally advise colleagues about revamping the company’s strategy in that country. Knauss appreciated Stein’s proactive, service-oriented approach. ‘‘She will help anyone who asks for help,’’ he says. Within months of taking the CEO job, Knauss had broadened Stein’s duties and power and she was eventually promoted to executive vice president–general counsel. Stein continues serving the company’s current leader, Benno Dorrer, who was promoted to CEO in late 2014.49


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Followers want their leaders to be honest, forward-thinking, inspiring, and competent. A leader must be worthy of trust, envision the future of the organization, inspire others to contribute, and be capable and effective in matters that will affect the organization.

Followers want their fellow followers to be honest and competent but also de- pendable and cooperative. Thus, desired qualities of colleagues share two qualities with leaders—honesty and competence. However, followers themselves want other followers to be dependable and cooperative rather than forward-thinking and inspiring. The hallmark that distinguishes the role of leadership from the role of fol- lowership, then, is not authority, knowledge, power, or other conventional notions of what a follower is not. Rather, the distinction lies in the clearly defined leadership activities of fostering a vision and inspiring others to achieve that vision. Chapter 13 discusses vision in detail, and Chapter 14 describes how leaders shape cultural val- ues that support achievement of the vision.

The results in Exhibit 7.5 also underscore the idea that behaviors of effective leaders and followers often overlap. Followers do not want to be subjected to leader behavior that denies them the opportunity to make valued contributions. Leaders have a responsibility to enable followers to fully contribute their ideas and abilities. Four specific ways leaders enhance the abilities and contributions of followers are by offering clarity of direction; providing opportunities for growth; giving honest, constructive feedback; and protecting followers from organizational roadblocks.

7-6a Clarity of Direction It is the leader’s job to clearly communicate where the group or organization is going and why.53 Creating an inspiring vision is only one aspect of setting direction. Followers also need specific, unambiguous goals and objectives on both an individual and team level. Numerous studies have shown that clear, specific, challenging goals enhance people’s motivation and performance.54 Having clear goals helps people know where to focus their attention and energy, enables them to track their own pro- gress, and lets them feel a sense of pride and accomplishment when goals are achieved.

Another aspect of clarifying direction is helping followers see how their own individual jobs fit in the larger context of the team, department, and total enterprise. This is one reason many leaders use open-book management. When people can see the bigger financial picture, they have a perspective on where the organization stands and how they can contribute.

7-6b Opportunities for Growth Leaders can act as coaches to help followers upgrade their skills and enhance their career development. Leadership coaching is a method of directing or facilitating a

EXHIBIT 7.5 Rank Order of Desirable Characteristics

Desirable Leaders Are Desirable Colleagues (Followers) Are

Honest Honest Forward-thinking Cooperative Inspiring Dependable Competent Competent

Source: Adapted from James M. Kouzes and Barry Z. Posner, Credibility: How Leaders Gain and Lose It, Why People Demand It (San Francisco, CA: Jossey-Bass Publishers, 1993), p. 255.

Leadership coaching a method of directing or facilitating a follower with the aim of improving spe- cific skills or achieving a spe- cific development goal


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follower with the aim of improving specific skills or achieving a specific development goal, such as developing time management skills, enhancing personal productivity, or preparing for new responsibilities. Coaching doesn’t mean trying to change peo- ple and make them something other than what they are. Instead, it means helping followers realize their potential.55

To understand what it means to be a leadership coach, consider the difference in mindset and behavior required for managing versus coaching:

Managing Coaching56

Telling Empowering Judging Facilitating, removing obstacles Controlling Developing

Rather than telling followers what to do, directing and controlling their behav- ior, and judging their performance, which is a traditional management role, leader- ship coaching involves empowering followers to explore, helping them understand and learn, providing support, and removing obstacles that stand in the way of their ability to grow and excel.

Exhibit 7.6 shows benefits that followers get from leadership coaching, includ- ing gaining a new perspective, getting advice on handling specific organizational sit- uations, dealing with organizational politics, and receiving encouragement and support. The biggest benefit that followers report, however, is getting clear, direct feedback on performance.57

EXHIBIT 7.6 Follower Benefits from Leadership Coaching

Clear, direct feedback—36%

Handling organizational politics—7%

General encouragement—7%

Understanding organizational


Advice on handling situations—20%

A new perspective—23%

Source: ‘‘The Business Leader as Development Coach,’’ PDI Portfolio (Winter 1996), p. 6; and Personnel Decisions International, http://www.personneldecisions.com.


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7-6c Frequent, Specific, and Immediate Feedback Candid feedback is one of the most important elements contributing to the growth and development of followers, but many leaders don’t know how to give good feed- back.58 Effective leaders see feedback as a route to improvement and development, not as something to dread or fear. When a leader provides feedback, it signals that the leader cares about the follower’s growth and career development and wants to help the person achieve his or her potential.59

Feedback occurs when a leader uses evaluation and communication to help indi- viduals learn about themselves and improve.60 Effective leaders provide both posi- tive and negative constructive feedback on an ongoing basis. If someone handles a difficult task, for instance, the leader offers feedback on the spot rather than letting the person wonder how effective he or she was, perhaps imagining the worst. As for- mer advertising account executive Ryan Broderick said, ‘‘hearing something is better than hearing nothing.’’61

Followers appreciate positive feedback, but they also want to know when they aren’t doing what is expected of them, and they want the feedback to be specific enough to enable them to do better. Leaders who avoid giving any critical feedback ‘‘achieve kindness in the short term but heartlessness in the long run, dooming the problem em- ployee to non-improvement.’’62 Here are some ways leaders can provide feedback that benefits followers and takes less of an emotional toll on both leader and follower:63

1. Make it timely. People shouldn’t have to wait for an annual review to know how they’re doing or how they can improve. Leaders should give feedback as soon as possible after they observe a behavior or action they want to correct or reinforce. Often, this means immediately, such as when a leader says, ‘‘Great job on the presentation, Sal, and you used graphics very effectively. The only place I see it could have been better would be including some specifics like past sales figures. Do you know where to find that information, or would you like me to set up a meeting with our sales manager?’’ If leaders wait to offer feedback, it should be only long enough to gather necessary information or to marshal their thoughts and ideas.

2. Focus on the performance, not the person. Feedback should not be used simply to criticize a person or to point out faults. A person who feels like he or she is being attacked personally will not learn anything from the feedback. The focus should always be on how the follower can improve. Leaders have to point out work that is poorly done, but it is equally important to reinforce work that is done well. This helps people learn from what they do right and softens the impact of negative feedback.

3. Make it specific. Effective feedback describes the precise behavior and its consequences and explains why the leader either approves of the behavior or thinks there is a need for improvement. The leader might provide illustrations and examples to clarify what behavior is considered effective, and he or she always checks for understanding rather than assuming the follower knows what actions the leader wants.

4. Focus on the desired future, not the past. Good leaders don’t drag up the failures and mistakes of the past. In addition, if it is clear that a follower’s mistake was a one-time occurrence and not likely to be repeated, the leader will let it go rather than offering negative feedback. Effective feedback looks toward the future, minimizes fault-finding, and describes the desired behaviors and outcomes.

NEW LEADER ACTION MEMO Answer the questions in Leader’s Self-Insight 7.3 to learn if you have the correct mindset to benefit from leadership coaching.

Feedback using evaluation and com- munication to help individu- als and the organization learn and improve

NEW LEADER ACTION MEMO As a leader, you can make feedback a regular habit and remember to include positive comments and praise as well as critical feedback. As a follower, you can view feedback as a chance to improve yourself. Reframe negative feedback in a way that helps you take positive action toward what you want out of your work and life.


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7-6d Protection from Organizational Intrusions Good followers want to do their jobs to the best of their abilities. They don’t want to be continually interrupted by managers offering questions or suggestions, and they don’t want to have to fight against organizational politics, leader uncertainties, or useless procedures. The best leaders ‘‘take pride in being human shields.’’64 They stay out of the way so people can do their jobs, and they protect their followers from time wasters such as burdensome organizational practices (think routine reports that no one reads), pushy or critical higher executives, abusive or overly demanding customers or clients, and unnecessary meetings.

Good leaders take the heat so employees don’t have to. One leader at Southwest Airlines interrupted a customer who was mistreating a gate agent, told him he wouldn’t allow his employees to be treated that way, and accompanied the customer to another airline’s counter to buy him a ticket. Will Wright, who was responsible for developing the computer games The Sims and Spore, charged his designers a dol- lar every time they called an unnecessary meeting that wasted artists’ time.65 Leaders invest time and effort into helping their subordinates be good followers. And when people can’t or won’t learn and change, good leaders get rid of the ‘‘bad apples’’ rather than letting them infect the entire team.

LEADER’S SELF-INSIGHT 7.3 Ready for Coaching

Instructions: Think about your attitude toward personal growth and answer the following questions Mostly False or Mostly True.

Mostly False

Mostly True

1. I have a strong desire to improve myself. ________ ________

2. I welcome suggestions for better ways of behaving. ________ ________

3. I am really honest with myself about my strengths and weaknesses. ________ ________

4. I welcome negative feedback. ________ ________ 5. I follow through on

commitments to change myself. ________ ________ 6. I am very open with my peers

about any mistakes I make. ________ ________ 7. I draw my boss’s attention to my

successes. ________ ________ 8. After making a mistake,

I immediately let the affected people know about it and propose a solution. ________ ________

Scoring and Interpretation Give yourself 1 point for each Mostly True answer. Total Score ________. Leadership coaching is one way leaders provide valuable feedback that helps people achieve their potential. The attitude of the follower is equally important to that of the leader for a successful coaching relationship. Your score for this questionnaire pertains to your readiness to receive coaching and feedback from another person. If your score is 6 or above, you probably have the correct mindset to benefit from leadership coaching. If your score is 3 or below you may not be receptive to coaching. If you are not open to receiving coaching for yourself, do you think you would be a good coach to others? Would you like to change your coaching mindset? What is the first step you might take?

Source: Based on Susan Battley, Coached to Lead: How to Achieve Extraor- dinary Results with an Executive Coach (San Francisco: Jossey-Bass, 2006), pp. 20–40.

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LEADERSHIP ESSENTIALS • The important role of followership in organizations is increasingly recognized.

Leaders and followers are interdependent, and people are followers more often than leaders.

• People who effectively manage both up and down the hierarchy are more suc- cessful, but managing up can be difficult for new leaders. Strategies for manag- ing up include being a resource, helping the leader be a good leader, building a relationship with the leader, and viewing the leader realistically.

• Leaders want followers who are positive and self-motivated, who take action to get things done, who accept responsibility, and who excel at required tasks. An effective follower is both independent and active in the organization. Being an effective follower depends on not becoming alienated, conforming, passive, or a pragmatic survivor.

• Effective followership is not always easy. Effective followers display the courage to assume responsibility, to challenge their leaders, to participate in transforma- tion, to serve others, and to leave the organization when necessary. Followers can recognize and rely on several personal and positional sources of power to gain the courage to manage up.

• Followers want both their leaders and their colleagues to be honest and compe- tent. However, they want their leaders also to be forward-thinking and inspira- tional. The two latter traits distinguish the role of leader from follower. Followers want to be led, not controlled. They also want leaders to create an environment that enables people to contribute their best.

• Four specific ways leaders enhance the abilities and contributions of followers are by offering clarity of direction, providing opportunities for growth, giving honest, constructive feedback, and protecting followers from organizational intrusions.

• Followers want feedback that is timely and specific, focuses on performance rather than the person, and focuses on the future rather than dragging up mis- takes of the past.

DISCUSSION QUESTIONS 1. Discuss the role of a follower. Why do you think so little emphasis is given to follower-

ship compared to leadership in organizations?

2. As a leader, what would you want most from followers? As a follower, what would you want most from your leader? How do these differ? Why?

3. Compare the alienated follower with the passive follower. Can you give an example of each? Have you ever been either one? How would you respond to each if you were a leader?

4. Why is managing up important in organizations? Describe the strategy for managing up that you most prefer. Explain.

5. The chapter describes five ways in which followers need to use courage. Which do you feel is most important? Least important? How might a follower derive the courage to behave in new ways to be more effective? Discuss.


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6. Do you think you would respond better to feedback that is presented using a traditional scheduled performance review format or feedback that is presented as a routine part of everyday work activities? Discuss. How do you think leaders should frame negative feed- back to achieve the best results?

7. Which type of follower courage is easiest for you to use? Hardest for you to use? Can you think of ways to expand your power for influencing up?

8. One organizational observer suggested that bosses who won’t give negative feedback to followers who need it cause even more damage in the long run than those who fly off the handle when a follower makes a mistake. Do you agree? Discuss.

9. What does leadership coaching mean to you? How should leaders decide which followers they will provide with coaching?

10. What does it mean for a leader to act as a human shield? Do you believe this should be part of a leader’s responsibility to followers?

LEADERSHIP AT WORK Follower Role Play You are a production supervisor at Hyperlink Systems. Your plant produces circuit boards that are used in Nokia cell phones and IBM computers. Hyperlink is caught in a competitive pricing squeeze, so senior management hired a consultant to study the production depart- ment. The plant manager, Sue Harris, asked that the consultant’s recommendations be imple- mented immediately. She thought that total production would increase right away. Weekly production goals were set higher than ever. You don’t think she took into account the time required to learn new procedures, and plant workers are under great pressure. A handful of workers have resisted the new work methods because they can produce more circuit boards using the old methods. Most workers have changed to the new methods, but their productiv- ity has not increased. Even after a month, many workers think the old ways are more effi- cient, faster, and more productive.

You have a couple of other concerns with Harris. She asked you to attend an operations conference, and at the last minute sent another supervisor instead without any explanation. She has made other promises of supplies and equipment to your section and then has not followed through. You think she acts too quickly without adequate implementation and follow-up.

You report directly to Harris and are thinking about your responsibility as a follower. Write below specifically how you would handle this situation. Will you confront her with the knowledge you have? When and where will you meet with her? What will you say? How will you get her to hear you?

What style—effective, conformist, passive, alienated—best describes your response to this situation? Referring to Exhibit 7.3, which tactic would you like to use to assist Harris?


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In Class: The instructor can ask students to volunteer to play the role of the plant manager and the production supervisor. A few students can take turns role-playing the production supervisor in front of the class to show different approaches to being a follower. Other stu- dents can be asked to provide feedback on each production supervisor’s effectiveness and on which approach seems more effective for this situation.

Source: Based on K. J. Keleman, J. E. Garcia, and K. J. Lovelace, Management Incidents: Role Plays for Management Development (Dubuque, IA: Kendall Hunt Publishing Company, 1990), pp. 73–75, 83.

LEADERSHIP DEVELOPMENT: CASES FOR ANALYSIS Waiting for Clearance He wanted the help, but CEO Tony Bussard apparently wanted to relinquish none of the power when he agreed with board members of Alvon Biometrics to maintain control over the financial and administrative side of the company while naming a COO to oversee day-to-day operations.

Everyone agreed that the job was too big for one guy. After months of assessments, inter- views, and discussion, Juan Carlos De la Vega was hired as COO for the company.

De la Vega came to Alvon from a smaller rival company and was initially excited about his new position and the future of Alvon. De la Vega trained in military security investigations and became interested in the measuring and statistical analysis of biological data that included fingerprints, eye retinas and irises, voice patterns, and facial patterns that could be used in se- curity systems. He had worked his way up through rival Bi-Tech to a position in middle man- agement and jumped at the opportunity to guide a major company in the field about which he was so passionate. ‘‘That is so cool,’’ was a De la Vega trademark comment as he delighted in the giant leaps of each system’s gadgetry.

But De la Vega’s exciting new position came with its own set of frustrations as he tried to plunge into the rapidly changing technology while simultaneously fitting into the organiza- tion and tip-toeing around Tony Bussard’s ego.

Bussard welcomed De la Vega with the gusto of an under-fire field officer who looks up to see reinforcements riding into the fray. He enthusiastically introduced the new COO to everyone and raved, almost to the point of embarrassment, about De la Vega’s experience and level of expertise in the field of biometrics.

‘‘You’ve made my job a whole lot easier,’’ Bussard gushed. ‘‘We’re all thrilled to have you.’’

Now, one year into the job, De la Vega was still wondering what was expected of him and where Bussard’s duties ended and his duties began. Those things were never actually spelled out in an agreement, and the boundaries remained vague and confusing. Even during the initial job interviews, Bussard and board members showed great interest in De la Vega’s background and talked endlessly about Bussard’s vision for the future. But now, in retrospect, the COO realized that there was little or no discussion of his vision or any mention about how he would fit into the future being laid out for him.

With no clear agreement, De la Vega’s earnest efforts to get guidance about his responsi- bilities seemed to be brushed aside by the CEO, who remained elusive and vague.

‘‘If he tells me one more time, ‘Yeah, yeah, we’ll talk,’ I think I will scream,’’ De la Vega complained. ‘‘I want to feel like a COO, not a sidekick to the CEO. At the same time, I don’t want to push so hard that Bussard and the board members become concerned that they made a mistake in selecting me.’’

The confusion about De la Vega’s role also filtered down the ranks. Employees, expect- ing initiative from De la Vega, remained uncertain about his range of responsibilities. People looked almost exclusively to Bussard for direction, bypassing the new COO. Workers liked De la Vega and admired his industry experience. However, old habits die hard, and the habit


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of yielding to Bussard’s leadership remained intact. Even one year later, employees were reluc- tant to take a chance on angering Bussard by shifting even a portion of their attention and allegiance to De la Vega.

For his part, De la Vega knew the time for clarity was now, but he hesitated, not know- ing exactly how or when to approach the CEO from a position of strength.


1. If you were De la Vega, what would you do at this point? Do you think De la Vega has waited too long to make a substantial change in his relationship with Bussard? Why?

2. How would you characterize De la Vega’s style as a follower? What tactics might help improve his relationship with Bussard? Explain.

3. If you were in De la Vega’s position, what would you have done from the beginning? Be specific about your actions and timing.

Jake’s Pet Land Adam Gerrit glanced up from the cash register as his first customers of the day walked into Jake’s Pet Land, a neighborhood pet store that is part of a small, regional chain. A young boy, obviously distraught, reluctantly placed a shoebox on the counter. ‘‘We have a prob- lem,’’ whispered the boy’s dad, ‘‘and I would like to get a refund.’’ Cautiously, Adam lifted the lid of the shoebox and found an ebony-colored chinchilla hunched in the corner of the box, huddled in wood chips and barely breathing. Normally inquisitive and active, the chin- chilla was obviously sick. The boy’s father, a loyal customer for several years, handed Adam a receipt. Adam knew the refund policy by heart: ‘‘The health of exotic animals is guaranteed for seven days after purchase. No refunds are granted after seven days.’’ The chinchilla had been purchased 10 days ago, but Adam, as a long-time employee, knew his manager would agree to bend the rules in this case and grant this customer a full refund. Putting the policy manual out of his mind, Adam handed the customer a full refund of $125, saying to the distraught boy, ‘‘I’m sorry your little buddy didn’t make it. Would you like to look for another pet?’’ Although he had clearly stretched the return policy rules, Adam felt confident that his store manager, Phillip Jordan, would support his decision.

Jordan did support Adam’s decision to bend company rules if it meant retaining a loyal customer. Although the store’s thick policy manual called for strict adherence to established procedures, Jordan encouraged employees to think independently when meeting the needs of customers. Jordan also felt strongly about building camaraderie among his small staff, even if it meant straying outside the edicts in the policy manual. For example, Jordan bought the entire staff pizza and soft drinks as a reward for their cheerful attitude when asked to stay late to clean out the stockroom after the store closed. While they restocked shelves and mopped the stockroom floor, his employees told stories, traded jokes, and enjoyed helping each other complete the job quickly. Jordan was proud of the productive yet friendly culture he had cre- ated, even if his district manager would frown on some of his decisions.

Without surprise, Jordan’s store steadily increased revenue, up 5.4 percent from the pre- vious year. Employees were motivated and enthusiastic. One factor contributing to the store’s success was low employee turnover. Again setting company policy aside, Jordan retained his employees by offering slightly higher wages, granting small promotions with increased responsibilities, and rewarding ‘‘VIP’’ employees with free passes to a local theme park. Since all of the employees were pet owners, he also allowed employees to take home overstocked pet supplies and free samples of new pet foods. This loyalty to employees resulted in a suc- cessful store. But Jordan knew his district manager would abruptly end all of these practices if he knew about them, so Jordan learned to keep guarded secrets.

Trouble began when Jordan was transferred to another store, closer to his home, and a new manager with a completely different managerial style was brought in. Wedded to rules and procedures, Jan Whitall was driven by order and discipline. On Whitall’s first day on the


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job, she set the tone for her tenure with this announcement: ‘‘The company’s new compensa- tion policy will be strictly followed in this store, and some of you will have your pay reduced to adhere to the new pay scales. This is uncomfortable for me, but it’s the result of some ques- tionable decisions by your previous manager.’’ The morale of top performers, including Adam, plummeted. By the end of Whitall’s first month, she had fired an employee for violat- ing the store’s return policy. The employee had granted a full refund for a ball python after the seven-day return period. Another employee was publicly reprimanded for giving a cus- tomer a sample of a new organic pet food to try before purchasing it. Stunned by these actions, employees became indignant and bristled under her tight authority. The friendly, warm culture had vanished. Adam Gerrit confided to his coworker, ‘‘I’ve applied for a posi- tion at the pet superstore down the road. Before I resign, I’m going to talk to Jan and see if she can lighten up on the rules.’’

Mustering his courage, Adam tapped on Whitall’s office door and asked if he could talk with her. Putting down her reading glasses and pushing away the financial reports in front of her, Whitall motioned for him to sit down. ‘‘I’m worried about morale around here,’’ Adam began. ‘‘Some of our best workers are leaving and I’m considering it, too. Under our previous manager, I loved coming to work and enjoyed the friendship of coworkers and customers. Now, everyone is in a sour mood and we’ve lost some customers.’’ Taking a deep breath, he continued. ‘‘If you are willing to be more flexible with the company policies, I would be will- ing to stay.’’ Unflustered, Whitall kept her firm stance. ‘‘Adam,’’ she explained, ‘‘I’m responsi- ble to the district manager, who long suspected that the previous manager wasn’t adhering to company policies. It’s my intention to do my job the way I’ve been instructed, and I’m sorry to hear you will be leaving.’’

As Adam left her office with his head down, Whitall mused to herself that the district manager would be proud of her ability to stand firm. In fact, he had recently complimented her on her approach. Neither realized that sales would take a surprising dip in the next quarter.


1. Which store manager—Phillip Jordan or Jan Whitall—would you prefer working for? How did each leader’s style affect the culture of the pet store? Explain.

2. What kind of follower was Adam Gerrit? In general, what characteristics of followers do you admire? What characteristics would you want them to display when working for you?

3. If you were the district manager, which store manager would you prefer to have working for you? Why? In your opinion, which manager did a better job of managing up? Which manager did a better job of managing down?

REFERENCES 1. Rich Gee Group Website, http://richgee.com/about/ (accessed October

22, 2015). 2. Sue Shellenbarger, ‘‘When the Boss Works Long Hours, Must We All?

How to Convey That You Are Working Hard Without Pulling All- Nighters,’’ The Wall Street Journal (February 18, 2014), http:// www.wsj.com/articles/SB10001424052702303491404579391103854 539542 (accessed October 22, 2015); Ibid.

3. Robin Sronce and Lucy A. Arendt, ‘‘Demonstrating the Interplay of Leaders and Followers,’’ Journal of Management Education 33, no. 6 (December 2009), pp. 699–724; Marc Hurwitz and Samantha Hur- witz, ‘‘The Romance of the Follower: Part 1,’’ Industrial and Commer- cial Training 41, no. 2 (2009), pp. 80–86; and Marc Hurwitz and Samantha Hurwitz, ‘‘The Romance of the Follower: Part 2,’’ Industrial and Commercial Training 41, no. 4 (2009), pp. 199–206.

4. Warren Bennis, ‘‘Art of Followership: Followers Engage in an Interde- pendent Dance,’’ Leadership Excellence (January 2010), pp. 3–4; and Robert E. Kelley, ‘‘In Praise of Followers,’’ Harvard Business Review (November/December 1988), pp. 142–148.

5. John G. Gabarro and John P. Kotter, ‘‘Managing Your Boss,’’ Best of HBR 1980, Harvard Business Review (January 2005), http://hbr.org/ 2005/01/managing-your-boss/ar/1 (accessed April 18, 2011).

6. Rosabeth Moss Kanter, ‘‘Power Failure in Management Circuits,’’ Harvard Business Review 57 (July–August, 1979), pp. 65–75.

7. Ronald J. DeLuga, ‘‘Kissing Up to the Boss: What It Is and What to Do about It,’’ Business Forum 26 (2003), pp. 14–18; and Bennett Tepper, ‘‘Upward Maintenance Tactics in Supervisory Mentoring and Nonmentoring Relationships,’’ Academy of Management Journal 38, no. 4 (1995), pp. 1191–1205.


Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

8. Liz Simpson, ‘‘Why Managing Up Matters,’’ Harvard Management Update (August 2002), pp. 3–5; and Stanley Bing, Throwing the Ele- phant (New York: HarperCollins, 2002).

9. Irvin D. Yalom, with Ben Yalom, ‘‘Mad about Me,’’ Inc. (December 1998), pp. 37–38; and story told in Robert McGarvey, ‘‘And You Thought Your Boss Was Bad,’’ American Way (May 1, 2006), pp. 69–74.

10. These are based on Larry Bossidy, ‘‘What Your Leader Expects of You and What You Should Expect,’’ Leadership Excellence (February 2008), p. 6; Larry Bossidy, ‘‘What Your Leader Expects of You,’’ Harvard Business Review (April 2007), pp. 58–65; and Peter F. Drucker, ‘‘Drucker on Management: Managing the Boss,’’ The Wall Street Journal (August 1, 1986).

11. Vignette recounted in Isaac Getz, ‘‘Liberating Leadership: How the Initiative-Freeing Radical Organizational Form Has Been Success- fully Adopted,’’ California Management Review (Summer 2009), pp. 32–58.

12. Bossidy, ‘‘What Your Leader Expects of You.’’ 13. Robert E. Kelley, The Power of Followership (New York: Doubleday,

1992). 14. Ibid. 15. Discussed in Michael G. Winston, ‘‘Say No to Yes Men,’’ Leadership

Excellence (November 2010), p. 15. 16. Kelley, The Power of Followership, pp. 111–112. 17. Ibid., pp. 111–112, pp. 117–118. 18. Based on an incident reported in ‘‘Ask Inc.,’’ Inc. (March 2007),

pp. 81–82. 19. Kelley, The Power of Followership, p. 123. 20. Melanie Trottman, ‘‘Baggers Get the Sack, but Dawn Marshall Still

Excels as One,’’ The Wall Street Journal (May 2, 2003), pp. A1, A6. 21. Bennis, ‘‘Art of Followership’’; Sronce and Arendt, ‘‘Demonstrating the

Interplay of Leaders and Followers’’; Marshall Goldsmith, ‘‘Influencing Up: You Make a Difference,’’ Leadership Excellence (January 2008), pp. 5–6; David K. Hurst, ‘‘How to Manage Your Boss,’’ Strategy þ Business no. 28 (Third Quarter 2002), pp. 99–103; Joseph L. Badar- acco Jr., Leading Quietly: An Unorthodox Guide to Doing the Right Thing (Boston: Harvard Business School Press, 2002); and Michael Useem, Leading Up: How to Lead Your Boss So You Both Win (New York: Crown Business, 2001).

22. Hurwitz and Hurwitz, ‘‘The Romance of the Follower: Part 1.’’ 23. Based on Jo Owen, ‘‘Manage Your Boss,’’ Industrial and Commercial

Training 39, no. 2 (2007), pp. 79–84. 24. Ryan Lizza, ‘‘The Political Scene: The Obama Memos,’’ The New

Yorker (January 30, 2012), pp. 36–49; Peter Baker, ‘‘How Obama’s Afghanistan War Plan Came to Be,’’ International Herald Tribune (December 7, 2009); and Ron Walters, ‘‘Afghanistan: The Big Deci- sion,’’ The Washington Informer (December 10–16, 2009).

25. Len Schlesinger, ‘‘It Doesn’t Take a Wizard to Build a Better Boss,’’ Fast Company (June/July 1996), pp. 102–107.

26. Ira Chaleff, ‘‘Courageous Followers: Should We Stand Up To or For Leaders?’’ Leadership Excellence (April 2011), p. 19; and Hurst, ‘‘How to Manage Your Boss.’’

27. William Speed Weed, Alex Lash, and Constance Loizos, ‘‘30 Ways to Annoy Your Boss,’’ MBA Jungle (March–April 2003), pp. 51–55.

28. Judith Sills, ‘‘When You’re Smarter Than Your Boss,’’ Psychology Today (May–June 2006), pp. 58–59; Sarah Kershaw, ‘‘My Other Fam- ily Is the Office,’’ The New York Times (December 4, 2008), p. E1; and Frank Pittman, ‘‘How to Manage Mom and Dad,’’ Psychology Today (November/December 1994), pp. 44–74.

29. Ira Chaleff, The Courageous Follower: Standing Up To and For Our Leaders (San Francisco: Berrett-Koehler, 1995); and John J. Gabarro and John P. Kotter, ‘‘Managing Your Boss,’’ Harvard Business Review, ‘‘Best of HBR’’ (January 2005), pp. 92–99.

30. Example from Christopher Hegarty, How to Manage Your Boss (New York: Ballantine, 1985), p. 147.

31. Chaleff, ‘‘Courageous Followers.’’

32. Ibid. 33. Ibid. 34. Chaleff, The Courageous Follower: Standing Up To and For Our

Leaders. 35. Joann S. Lublin, ‘‘Arguing with the Boss: A Winning Career Strategy,’’

The Wall Street Journal (August 9, 2012), http://online.wsj.com/article/ SB10000872396390443991704577579201122821724.html (accessed April 9, 2013).

36. This is based on Goldsmith, ‘‘Influencing Up: You Make a Difference’’ and Hegarty, How to Manage Your Boss.

37. Warren Bennis, ‘‘Art of Followership: Followers Engage in an Interde- pendent Dance,’’ Leadership Excellence (January 2010), pp. 3–4.

38. Gabarro and Kotter, ‘‘Managing Your Boss.’’ 39. Peter Moroz and Brian H. Kleiner, ‘‘Playing Hardball in Business

Organizations,’’ Industrial Management (January/February 1994), pp. 9–11.

40. Warren Keith Schilit and Edwin A. Locke, ‘‘A Study of Upward Influ- ence in Organizations,’’ Administrative Science Quarterly 27 (1982), pp. 304–316.

41. Mary C. Gentile, ‘‘Keeping Your Colleagues Honest,’’ Harvard Busi- ness Review (March 2010), pp. 114–117; and Goldsmith, ‘‘Influencing Up: You Make a Difference.’’

42. Deepti Bhatnagar, ‘‘Evaluation of Managerial Influence Tactics,’’ Jour- nal of Managerial Psychology 8, no. 1 (1993), pp. 3–9; and Daniel M. Cable and Timothy A. Judge, ‘‘Managers’ Upward Influence Tactic Strategies: The Role of Manager Personality and Supervisor Leadership Style,’’ Journal of Organizational Behavior 24 (2003), pp. 197–214.

43. Winston, ‘‘Say No to Yes Men.’’ 44. David N. Berg, ‘‘Resurrecting the Muse: Followership in Organiza-

tions,’’ presented at the 1996 International Society for the Psychoana- lytic Study of Organizations (ISPSO) Symposium, New York, NY, June 14–16, 1996.

45. Chaleff, The Courageous Follower: Standing Up To and For Our Leaders.

46. Major (General Staff) Dr. Ulrich F. Zwygart, ‘‘How Much Obedience Does an Officer Need? Beck, Tresckow, and Stauffenberg—Examples of Integrity and Moral Courage for Today’s Officer,’’ Combat Studies Institute; U.S. Army Command and General Staff College, Fort Leaven- worth, Kansas, http://www.cgsc.edu/CARL/download/csipubs/Obedie nceOfficerNeed_Zwygart.pdf (accessed June 11, 2013).

47. ‘‘Ethics Lessons from Tyco for Today’s Financial Crisis,’’ a talk given by Eric Pillmore at Thunderbird School of Global Management, October 28, 2008, http://knowledgenetwork.thunderbird.edu/research/ 2008/10/30/takeaways-from-tyco-for-today%E2%80%99s-financial- crisis/ (accessed April 10, 2013); and Lublin, ‘‘Arguing with the Boss: A Winning Career Strategy.’’

48. Merle MacIsaac, ‘‘Born Again Basket Case,’’ Canadian Business (May 1993), pp. 38–44.

49. Joann S. Lublin, ‘‘How to Prove You’re Keeper to a New CEO,’’ The Wall Street Journal (March 8, 2013), p. B8.

50. Greg Jaffe, ‘‘The Two-Star Rebel: For Gen. Batiste, a Tour in Iraq Turned a Loyal Soldier into Rumsfeld’s Most Unexpected Critic,’’ The Wall Street Journal (May 13, 2006), p. A1.

51. Berg, ‘‘Resurrecting the Muse.’’ 52. James M. Kouzes and Barry Z. Posner, Credibility: How Leaders Gain

and Lose It, Why People Demand It (San Francisco: Jossey-Bass, 1993).

53. This section is based largely on Bossidy, ‘‘What Your Leader Expects of You.’’

54. See Gary P. Latham and Edwin A. Locke, ‘‘Enhancing the Benefits and Overcoming the Pitfalls of Goal Setting,’’ Organizational Dynamics 35, no. 4 (2006), pp. 332–338; Edwin A. Locke and Gary P. Latham, ‘‘Building a Practically Useful Theory of Goal Setting and Task Moti- vation: A 35-Year Odyssey,’’ The American Psychologist 57, no. 9 (September 2002), p. 705ff.; Gary P. Latham and Edwin A. Locke, ‘‘Self-Regulation through Goal Setting,’’ Organizational Behavior and


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Human Decision Processes 50, no. 2 (1991), pp. 212–247; G. P. Latham and G. H. Seijts, ‘‘The Effects of Proximal and Distal Goals on Performance of a Moderately Complex Task,’’ Journal of Organiza- tional Behavior 20, no. 4 (1999), pp. 421–428; P. C. Early, T. Con- nolly, and G. Ekegren, ‘‘Goals, Strategy Development, and Task Performance: Some Limits on the Efficacy of Goal Setting,’’ Journal of Applied Psychology 74 (1989), pp. 24–33; and E. A. Locke, ‘‘Toward a Theory of Task Motivation and Incentives,’’ Organizational Behav- ior and Human Performance 3 (1968), pp. 157–189.

55. Patrick Sweeney, ‘‘Developing Leadership Potential through Coach- ing,’’ Chief Learning Officer (March 2009), p. 22ff.

56. This table and the discussion are based on Andrea D. Ellinger and Robert P. Bostrom, ‘‘An Examination of Managers’ Beliefs about Their Roles as Facilitators of Learning,’’ Management Learning 33, no. 2 (2002), pp. 147–179.

57. ‘‘The Business Leader as Development Coach,’’ PDI Portfolio (Winter 1996), p. 6; and Personnel Decisions International, http://www.personnel decisions.com (accessed May 3, 2009).

58. McKinsey & Company’s War for Talent 2000 Survey, reported in E. Michaels, H. Handfield-Jones, and B. Axelrod, The War for Talent (Boston: Harvard Business School Press, 2001), p. 100; and Mark

D. Cannon and Robert Witherspoon, ‘‘Actionable Feedback: Unlock- ing the Power of Learning and Performance Improvement,’’ Academy of Management Executive 19, no. 2 (2005), pp. 120–134.

59. Jay M. Jackman and Myra H. Strober, ‘‘Fear of Feedback,’’ Harvard Business Review (April 2003), pp. 101–108; and Bossidy, ‘‘What Your Leader Expects of You.’’

60. John C. Kunich and Richard I. Lester, ‘‘Leadership and the Art of Feedback: Feeding the Hands That Back Us,’’ The Journal of Leader- ship Studies 3, no. 4 (1996), pp. 3–22.

61. Broderick quote is from Jared Sandberg, ‘‘Avoiding Conflicts, the Too- Nice Boss Makes Matters Worse,’’ The Wall Street Journal (February 26, 2008), p. B1.

62. Sandberg, ‘‘Avoiding Conflicts.’’ 63. Based on ‘‘Closing Gaps and Improving Performance: The Basics of

Coaching,’’ excerpt, originally published as Chapter 4 of Performance Management: Measure and Improve the Effectiveness of Your Employ- ees (Boston, MA: Harvard Business School Press, 2006).

64. This section is based on Robert I. Sutton, ‘‘The Boss as a Human Shield,’’ Harvard Business Review (September 2010), pp. 106–109.

65. These examples are from Sutton, ‘‘The Boss as Human Shield.’’


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Part 4: The Leader as a Relationship Builder

Chapter 8: Motivation and Empowerment

Chapter 9: Leadership Communication

Chapter 10: Leading Teams

Chapter 11: Developing Leadership Diversity

Chapter 12: Leadership Power and Influence

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Chapter 8: Motivation and Empowerment

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YOUR LEADERSHIP CHALLENGE After reading this chapter, you should be able to:

• Recognize and apply the difference between intrinsic and extrinsic rewards. • Appropriately tap into the motives that induce people to take action to accomplish important goals. • Motivate others by meeting their higher-level needs. • Apply needs-based theories of motivation and understand how the concept of equity applies to motivation.

• Describe the psychological and structural elements of empowerment and how empowerment contributes to motivation.

• Apply the job characteristics model to enrich jobs. • Identify factors that play a role in employee engagement and use engagement to meet higher-level needs. • Build a thriving workforce by giving people a sense of making progress toward meaningful goals.

CHAPTER OUTLINE 228 Leadership and Motivation

232 Needs-Based Theories of Motivation

237 Other Motivation Theories

243 Empowering People to Meet Higher Needs

248 Giving Meaning to Work through Engagement

250 New Ideas for Motivation

In the Lead

235 Grant Reid, Mars Incorporated

246 Zingerman’s Community of Businesses

249 Facebook

Leader’s Self-Insight

237 Are Your Needs Met?

242 Your Approach to Motivating Others

248 Are You Engaged?

Leader’s Bookshelf

232 Joy, Inc.: How We Built a Workplace People Love

Leadership at Work

252 Should, Need, Like, Love

Leadership Development: Cases for Analysis

254 Commissions for Charlotte

255 Sun Spots

When Dan Price increased his company’s minimum wage to $70,000 ayear, he thought people would be happier and more motivated. At first,employees at Seattle-based Gravity Payments, a credit card processing company, celebrated. Then the problems started. The toughest one for Price was that he started losing some of his best people. A web developer quit, even though he had gotten a $9,000 raise. Why? He felt like he put 110 percent into his job and didn’t like the fact that ‘‘people who were just clocking in and out were making the same as me.’’ The financial manager also resigned, believing that the biggest raises were going to ‘‘the people with the least skills,’’ rather than rewarding those who were making the greatest contribution. Even a couple of newly hired employees were unhappy, despite the fact that they were making a lot of money for an entry-level job. ‘‘Am I doing my job well enough to deserve this?’’ one asked. ‘‘I didn’t earn it.’’1

Dan Price learned something that many good leaders know: Creating an organi- zation with satisfied, motivated employees takes more than money. In fact, many people consider factors other than money to be more important to their motivation. In addition, motivation falters when people feel they aren’t being treated fairly.

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Some long-term experienced employees at Gravity Payments lost their motivation when they saw that newly hired people were earning the same as they were. Others believed they put in more effort and should be rewarded for it, rather than earning the same as people who simply ‘‘clocked in and out,’’ as the unhappy web developer phrased it.

Paying people well is important, and Price has been praised for the goal of giving people more. However, motivation is a complex challenge that can’t be handled simply by giving employees more money. For example, many leaders have found that creating an environment where people feel valued and respected is more important to high motivation than is boosting wages.

This chapter explores motivation in organizations and examines how leaders can bring out the best in followers. We look at the difference between intrinsic and extrinsic rewards, examine the needs that people bring to the workplace, and discuss how leaders tap into positive or negative motives that spur people to action. Individ- uals have both lower and higher needs, and there are different methods of motiva- tion to meet those needs. The chapter presents several theories of motivation, with particular attention to the differences between leadership and conventional manage- ment methods for creating a motivated workforce. The final sections of the chapter explore empowerment, employee engagement, and how leaders create a thriving workforce by enabling people to feel a sense of progress in their work.

8-1 LEADERSHIP AND MOTIVATION Most of us get up in the morning, go to school or work, and behave in ways that are predictably our own. We usually respond to our environment and the people in it with little thought as to why we work hard, invest extra time and energy in certain classes, or spend our leisure time pursuing specific recreational or volunteer activities. Yet all these behaviors are motivated by something. Motivation refers to the forces either internal or external to a person that arouse enthusiasm and persistence to pur- sue a certain course of action. Employee motivation affects productivity, so part of a leader’s job is to channel followers’ motivation toward the accomplishment of the organization’s vision and goals.2 The study of motivation helps leaders understand what prompts people to initiate action, what influences their choice of action, and why they persist in that action over time.

Exhibit 8.1 illustrates a simple model of human motivation. People have basic needs, such as for friendship, recognition, or monetary gain, which translate into an

EXHIBIT 8.1 A Simple Model of Motivation

FEEDBACK Reward informs person whether behavior was appropriate and should be used again.


Creates desire to fulfill needs (money, friendship, recognition, achievement)

Results in actions to fulfill needs

Satisfy needs; intrinsic or extrinsic rewards

Motivation the forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action


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internal tension that motivates specific behaviors with which to fulfill the need. To the extent that the behavior is successful, the person is rewarded when the need is satisfied. The reward also informs the person that the behavior was appropriate and can be used again in the future.

The importance of motivation, as illustrated in Exhibit 8.1, is that it can lead to behaviors that reflect high performance within organizations. Studies have found that high employee motivation and high organizational performance and profits go hand in hand.3 An extensive survey by the Gallup Organization, for example, found that when all of an organization’s employees are highly motivated and performing at their peak, customers are 70 percent more loyal, turnover drops by 70 percent, and profits jump 40 percent.4 Leaders can use motivation theory to help satisfy followers’ needs and simultaneously encourage high work performance. When workers are not moti- vated to achieve organizational goals, the fault is often with the leader.

8-1a Intrinsic and Extrinsic Rewards Rewards can be either intrinsic or extrinsic and meet both lower- and higher-level needs.5 Intrinsic rewards come from the internal satisfaction and enjoyment a person receives in the process of performing a particular action. Solving a problem to bene- fit others may fulfill a personal mission, or the completion of a complex task may bestow a pleasant feeling of accomplishment. An intrinsic reward is internal and under the control of the individual, such as to engage in task behavior to satisfy a need for competency and self-determination.

Conversely, extrinsic rewards are given by another person, typically a supervisor, and include promotions and pay increases. Because they originate externally as a result of pleasing others, extrinsic rewards compel individuals to engage in a task behavior for an outside source that provides what they need, such as money to survive in modern society. Think about the difference in motivation for polishing a car if it belongs to you versus if you work at a car wash. Your good feelings from making your own car shine would be intrinsic. However, buffing a car that is but one of many in a day’s work requires the extrinsic reward of a paycheck.6

Although extrinsic rewards are important, leaders work especially hard to help followers achieve intrinsic rewards. Intrinsic rewards appeal to the ‘‘higher’’ needs of individuals, such as for accomplishment, competence, fulfillment, and self- determination. Extrinsic rewards appeal to the ‘‘lower’’ needs of individuals, such as for material comfort and basic safety and security. Exhibit 8.2 outlines the distinc- tion between conventional management and leadership approaches to motivation based on people’s needs. Conventional management approaches often appeal to an individual’s lower, basic needs and rely on extrinsic rewards and punishments to motivate people to behave in desired ways. These approaches are effective, but they are based on controlling the behavior of employees by manipulating their decisions about how to act. The higher needs of people may be unmet in favor of utilizing their labor in exchange for external rewards. Under conventional management, people perform adequately to receive rewards or avoid punishments because they will not necessarily derive intrinsic satisfaction from their work.

The leadership approach strives to motivate people by providing them with the opportunity to satisfy higher needs and become intrinsically rewarded. Employees in companies that are infused with a social mission, and that find ways to enrich the lives of others, are typically more highly motivated because of the intrinsic rewards they get from helping other people.7 Leaders at any company can enable people to find meaning in their work. At Morrison Management Specialists, for example,

Intrinsic rewards internal satisfactions a per- son receives in the process of performing a particular action

Extrinsic rewards rewards given by another person, typically a supervi- sor, such as pay increases and promotions

NEW LEADER ACTION MEMO As a leader, you can provide extrinsic rewards, such as promotions, pay raises, and praise, but also help followers achieve intrinsic rewards and meet their higher-level needs for accomplishment, growth, and fulfillment.


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which provides food, nutrition, and dining services to the health-care and senior living industries, leaders provide training sessions under the title of ‘‘Our Great Part- nership’’ and strive to help people see how their jobs make a difference in the lives of elderly or ill people. A ‘‘People First’’ recognition program gives employees a chance to recognize one another for exceptional service.8 Remember, however, that the source of an intrinsic reward is internal to the follower. Thus, what is intrinsi- cally rewarding to one person may not be so to another. One way in which leaders try to enable all followers to achieve intrinsic rewards is by giving them more con- trol over their own work and the power to affect outcomes. When leaders empower others, allowing them the freedom to determine their own actions, subordinates reward themselves intrinsically for good performance. They may become creative, innovative, and develop a greater commitment to their objectives. Thus motivated, they often achieve their best possible performance.

Ideally, work behaviors should satisfy both lower and higher needs while also serving the mission of the organization. Unfortunately, this is often not the case. The leader’s motivational role, then, is to create a situation that integrates the needs of people—especially higher needs—and the fundamental objectives of the organization.

8-1b Positive and Negative Motives People have both positive and negative motives that cause them to engage in specific behaviors or activities. For example, some people and corporations pay taxes to avoid the negative consequence of penalties or jail time. Others might pay taxes based on a positive motive of helping their communities and the larger society.

EXHIBIT 8.2 Needs of People and Motivation Methods

Carrot & stick (Extrinsic)

Conventional management

Control people

Adequate effort

Needs of people

Lower needs

Empowerment (Intrinsic)


Higher needs

Employee engagement

Best effort

Source: Adapted from William D. Hitt, The Leader-Manager: Guidelines for Action (Columbus, OH: Battelle Press, 1988), p. 153.


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Exhibit 8.3 illustrates four categories of motives based on two criteria.9 The horizon- tal dimension contrasts motives that are driven by fear or pain with those driven by growth or pleasure. The vertical dimension contrasts motives that come from within a person (intrinsic) against those triggered from without (extrinsic), such as by a leader’s actions. The four quadrants represent four differing approaches leaders can use for motivating people. Quadrants I and II are both positive approaches to motivating. Quadrant I motivational methods attempt to influence behavior by using extrinsic rewards that create pleasure, such as giving an employee a pay raise, a bonus, or a gift. At Gogobot, a travel recommendation Web site, leaders offer employees $400 of credit that they can use for travel, food, or hotels as long as they write reviews for the site.10 Many leaders are finding that small, unexpected rewards, such as gift cards, water bottles, or pizza vouchers, are highly effective extrinsic motivators. When people aren’t expecting a reward, it can have a disproportionate psychological impact.11 Extrinsic rewards are important, but good leaders don’t rely on them as their primary motivational tool. Instead, they also strive to help people find meaning and joy in their work, using a Quadrant II motivational approach. Quadrant II tech- niques tap into deep-seated employee energy and commitment by helping people get deep personal satisfaction from their work. This chapter’s Leader’s Bookshelf describes how leaders at Menlo Innovations created a successful technology company with an explicit goal of helping people find joy in the workplace.

Good leaders rely on positive motives as much as they can. However, negative approaches also have value. In the real world, almost every leader sometimes has to impose some form of punishment or tap into negative motives to get desired actions and results. Quadrant III uses negative, extrinsic methods, such as threats or punish- ments, to get people to perform as desired. For example, some companies have found that penalizing employees for smoking or being overweight by charging extra for health insurance is an effective way to change behaviors and lower company health- care costs. The practice is growing, with leaders citing behavioral science research showing that people typically respond more strongly to a potential loss (a penalty for not losing weight), referred to as loss aversion, than to an expected gain (a reward for losing weight). At Mohawk Industries, participation in the company’s health-risk assessment program increased 97 percent after leaders began penalizing employees

EXHIBIT 8.3 Four Categories of Motives

I. Extrinsic Positive Approach

Rewards such as pay raises, bonuses, praise

III. Extrinsic Negative Approach

Threats and punishments

II. Intrinsic Positive Approach

Help people enjoy their work and get a sense of accomplishment

IV. Intrinsic Negative Approach

Tap into self-doubts, anxieties

Pleasure/Growth Pain/Fear



Source: Based on Bruce H. Jackson, ‘‘Influence Behavior: Become a Master Motivator,’’ Leadership Excellence (April 2010), p. 14.


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$100 if they didn’t participate. Previously, the company offered rewards for participa- tion, but enrollment rates remained low, which sparked the shift to penalties.12

The final category in Exhibit 8.3, Quadrant IV, reflects methods that attempt to motivate people by tapping into their self-doubts or anxieties, such as motivating people to work hard by emphasizing the weak economy and high unemployment rate. Fear can be a powerful motivator, but using fear to motivate people almost always has negative consequences for employee development and long-term performance. Effective leaders avoid the use of fear tactics.

8-2 NEEDS-BASED THEORIES OF MOTIVATION Needs-based theories emphasize the needs that motivate people. As illustrated ear- lier in Exhibit 8.1, needs are the source of an internal drive that motivates behavior

LEADER’S BOOKSHELF Joy, Inc.: How We Built a Workplace People Love

by Rich Sheridan

Rich Sheridan knows what it’s like to work in a job where you’re miserable. He was there in 1999, when he began exploring various business concepts and searching for ways to organize a workplace where people could be happy as well as productive. Two years later, Sheridan and two colleagues founded Menlo Innovations, a technology- services company, with the goal of creating an organization ‘‘with joyful people achieving joyful outcomes.’’ At Menlo, employees willingly give their all because of the intrinsic satis- faction they get from their work.

THE BUSINESS VALUE OF JOY Sheridan starts his book with a ques- tion: Why joy? He admits that talking about the business value of joy ‘‘sounds worse than squishy—it sounds ridicu- lous’’ to some people. Yet thousands of business people tour Menlo each year to learn what makes Menlo’s work environment so effective. Joy is about more than having fun, Sheridan points out. Menlo is guided by the idea that ‘‘humans are wired to work on things bigger than themselves’’ and ‘‘to be in community with one another.’’ Here are some of the ways Menlo leaders create joy:

• They keep people learning and collaborating. All programmers

work together in a big, noisy space where they can communicate across the room rather than by e-mail or phone. A radical idea at Menlo is that people work in pairs, with pro- grammers sharing a single computer and passing the mouse and key- board back and forth. Pairs are rotated on a weekly basis so people don’t get stuck in one way of think- ing. People also go out and spend time with clients, and clients fre- quently come into the office to work with Menlo teams.

• They pump fear out and safety in. Working in pairs not only promotes learning but also ‘‘provides an emo- tional safety net.’’ Leaders encour- age continual experimentation and accept failure as a way to learn. Sheridan distinguishes between a culture where people ‘‘feel safe,’’ meaning they will experiment, learn from mistakes, and don’t need to ask permission, versus one where people are focused on ‘‘being safe,’’ which means innovation and learn- ing are stifled by fear of failure. Daily stand-up meetings at Menlo let people quickly describe what they’re working on and where they might need help.

• They let employees make impor- tant decisions. Employees have an

exceptional degree of autonomy in how they manage their work. In addition, they’re involved in all important decisions. Consider hir- ing. Applicants first participate in a group interview of about 30 people where they do simulated work in pairs, with each pair observed by a current staff member. The staff members, not the bosses, decide who gets to the next stage, which is working at the company for one day (paid). Then, a person gets hired on a three-week contract. Employees get a chance to really see if someone is a good fit with the Menlo culture before making a final decision.

CAN WE ALL BE JOYFUL AT WORK? This is a fun-to-read story about a unique kind of workplace that might not be right for every company— financial information, including salaries, is transparent; internal e-mail is banned; and people can bring their dogs or babies to work. Yet it is also filled with ideas and suggestions for how leaders can bring a culture of joy, along with the energy and motivation it yields, to any organization.

Source: Joy: How We Built a Workplace People Love, by Rich Sheridan, is published by Portfolio/Penguin.

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to fulfill the needs. An individual’s needs are like a hidden catalog of the things he or she wants and will work to get. To the extent that leaders understand follower needs, they can design the reward system to direct energies and priorities toward attainment of shared goals.

8-2a Hierarchy of Needs Theory Probably the most famous needs-based theory is the one developed by Abraham Maslow.13 Maslow’s hierarchy of needs theory proposes that humans are motivated by multiple needs and those needs exist in a hierarchical order, as illustrated in Exhibit 8.4, wherein the higher needs cannot be satisfied until the lower needs are met. Maslow identified five general levels of motivating needs.

Physiological: The most basic human physiological needs include food, water, and oxygen. In the organizational setting, these are reflected in the needs for adequate heat, air, and base salary to ensure survival. Safety: Next is the need for a safe and secure physical and emotional environ- ment and freedom from threats—that is, for freedom from violence and for an orderly society. In an organizational setting, safety needs reflect the needs for safe jobs, fringe benefits, and job security. Belongingness: People have a desire to be accepted by their peers, have friend- ships, be part of a group, and be loved. In the organization, these needs influ- ence the desire for good relationships with coworkers, participation in a work team, and a positive relationship with supervisors. Esteem: The need for esteem relates to the desires for a positive self-image and for attention, recognition, and appreciation from others. Within organizations, esteem needs reflect a motivation for recognition, an increase in responsibility, high status, and credit for contributions to the organization.

EXHIBIT 8.4 Maslow’s Hierarchy of Needs

Higher Needs Need Hierarchy Fulfillment on the Job

Lower Needs

Self-actualization Needs

Esteem Needs

Belongingness Needs

Safety Needs

Physiological Needs

Opportunities for advancement, autonomy, growth, creativity

Recognition, approval, high status, increased responsibilities

Work groups, clients, coworkers, supervisors

Safe work, fringe benefits, job security

Heat, air, base salary

Hierarchy of needs theory Maslow’s theory proposes that humans are motivated by multiple needs and those needs exist in a hierarchical order


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Self-actualization: The highest need category, self-actualization, represents the need for self-fulfillment: developing one’s full potential, increasing one’s compe- tence, and becoming a better person. Self-actualization needs can be met in the organization by providing people with opportunities to grow, be empowered and creative, and acquire training for challenging assignments and advancement.

According to Maslow’s theory, physiology, safety, and belonging are deficiency needs. These lower-order needs take priority—they must be satisfied before higher- order, or growth, needs are activated. The needs are satisfied in sequence: Physiologi- cal needs are satisfied before safety needs, safety needs are satisfied before social needs, and so on. A person desiring physical safety will devote his or her efforts to securing a safer environment and will not be concerned with esteem or self-actualization. Once a need is satisfied, it declines in importance and the next higher need is activated. When a union wins good pay and working conditions for its members, for example, basic needs will be met and union members may then want to have social and esteem needs met in the workplace. In some Chinese factories, leaders have gone beyond financial incentives to try to meet belongingness and esteem needs of employees with work contests, American Idol–type singing contests, karaoke rooms, speed dating, dinners with managers, and more communications about the greater purpose of employees’ contributions.14

8-2b Two-Factor Theory Frederick Herzberg developed another popular needs-based theory of motivation called the two-factor theory.15 Herzberg interviewed hundreds of workers about times when they were highly motivated to work and other times when they were dissatisfied and unmotivated to work. His findings suggested that the work char- acteristics associated with dissatisfaction were quite different from those pertain- ing to satisfaction, which prompted the notion that two factors influence work motivation.

Exhibit 8.5 illustrates the two-factor theory. The center of the scale is neutral, meaning that workers are neither satisfied nor dissatisfied. Herzberg believed that two entirely separate dimensions contribute to an employee’s behavior at work. The first dimension, called hygiene factors, involves the presence or absence of job dissat- isfiers, such as working conditions, pay, company policies, and interpersonal rela- tionships. When hygiene factors are poor, work is dissatisfying. This is similar to the concept of deficiency needs described by Maslow. Good hygiene factors remove the dissatisfaction, but they do not in themselves cause people to become highly satisfied and motivated in their work.

The second set of factors does influence job satisfaction. Motivators fulfill high- level needs such as needs for achievement, recognition, responsibility, and opportu- nity for growth. Herzberg believed that when motivators are present, workers are highly motivated and satisfied. Thus, hygiene factors and motivators represent two distinct factors that influence motivation. Hygiene factors work in the area of lower- level needs, and their absence causes dissatisfaction. Inadequate pay, unsafe working conditions, or a noisy work environment will cause people to be dissatisfied, but their correction will not cause a high level of work enthusiasm and satisfaction. Higher-level motivators such as challenge, responsibility, and recognition must be in place before employees will be highly motivated. Leaders at Mars Incorporated successfully apply the two-factor theory to provide both hygiene factors and motiva- tors, thus meeting employees’ higher as well as lower needs.

Hygiene factors the first dimension of Herzberg’s two-factor theory; involves working conditions, pay, company policies, and interpersonal relationships

Motivators the second dimension of Herzberg’s two-factor theory; involves job satisfaction and meeting higher-level needs such as achievement, recog- nition, and opportunity for growth

NEW LEADER ACTION MEMO You can evaluate your current or a previous job according to Maslow’s needs theory and Herzberg’s two-factor theory by answering the questions in Leader’s Self-Insight 8.1.


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IN THE LEAD Grant Reid, Mars Incorporated President Grant Reid and other leaders at Mars, maker of candy such as M&Ms and Snickers and pet food such as Pedigree and Whiskas, seem to meet all the need categories in terms of both hygiene factors and motivators. Mars Incorporated, the third-largest private company in the United States, is intensely secretive, but an interview by Fortune after the company was named to its ‘‘The 100 Best Companies to Work For’’ list for the first time in 2013 revealed some interesting tidbits.

Once people get a job there, they rarely leave, reflecting that hygiene factors such as pay and benefits are good and working relationships are solid. Compensation is very good compared to similar companies. Many employees get bonuses from 10 percent to 100 percent of their salaries if their team performs well. Vending machines dispense free candy all day long, and employees in the pet food division can take their dogs to work. Employees have to punch a time clock, and their pay gets docked if they are late—but the policy applies to top executives just as it does to the lowest-level worker.

In addition to the egalitarian workplace, motivators include giving people the autonomy to experiment and propose new ideas and recognizing them for showing initiative. Employees have great opportunities for advancement, both within their division and in the larger corporation. When Reid took over as president in 2015, he had been with Mars for 26 years and served in several different business divisions and multiple functions during that time.

EXHIBIT 8.5 Herzberg’s Two-Factor Theory

Highly Satisfied

Neither Satisfied nor Dissatisfied

Highly Dissatisfied

Achievement Recognition Responsibility Work itself Personal growth

Motivators influence level of satisfaction.

Area of Satisfaction

Hygiene factors influence level of dissatisfaction.

Area of Dissatisfaction


Working conditions Pay and security Company policies Supervisors Interpersonal relationships

Hygiene Factors


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The implication of the two-factor theory for leaders is clear. People have multi- ple needs, and the leader’s role is to go beyond the removal of dissatisfiers to the use of motivators to meet higher-level needs and propel employees toward greater enthusiasm and satisfaction.

8-2c Acquired Needs Theory Another needs-based theory was developed by David McClelland. The acquired needs theory proposes that certain types of needs are acquired during an individual’s lifetime. In other words, people are not born with these needs but may learn them through their life experiences.17 For example, the parents of Bill Strickland, who founded and runs Manchester Bidwell, a highly successful nonprofit organization that provides after-school and summer programs for at-risk young people, always encouraged him to follow his dreams. When he wanted to go south to work with the Freedom Riders in the 1960s, they supported him. His plans for tearing up the family basement and making a photography studio were met with equal enthusiasm. Strickland thus developed a need for achievement that enabled him to accomplish amazing results later in life.18 Three needs most frequently studied are the need for achievement, need for affiliation, and need for power.

Need for achievement: the desire to accomplish something difficult, attain a high standard of success, master complex tasks, and surpass others Need for affiliation: the desire to form close personal relationships, avoid conflict, and establish warm friendships Need for power: the desire to influence or control others, be responsible for others, and have authority over others

For more than 20 years, McClelland studied human needs and their implications for management. People with a high need for achievement tend to enjoy work that is entrepreneurial and innovative. People who have a high need for affiliation are successful ‘‘integrators,’’ whose job is to coordinate the work of people and depart- ments.19 Integrators include brand managers and project managers, positions that require excellent people skills. A high need for power is often associated with success- ful attainment of top levels in the organizational hierarchy. For example, McClelland studied managers at AT&T for 16 years and found that those with a high need for power were more likely to pursue a path of continued promotion over time.

In summary, needs-based theories focus on underlying needs that motivate how people behave. The hierarchy of needs theory, the two-factor theory, and the

Leaders encourage employee growth and development. Jim Price began his career as a janitor at a Mars facility and is now quality and food-safety manager for Mars Chocolate North America. When Price started with the company, his supervisor urged him to attend community college at night, and Mars paid for his tuition and books. Many people at Mars get a mentor to learn a new skill. Executives often get paired with younger employees who introduce them to using social media. Development doesn’t stop at the factory gates, either. People can take paid time off to volunteer for community activities such as cleaning parks, planting gardens, or assisting at medical clinics. A highly competitive program selects 80 or so people each year to spend up to six weeks working with Mars-related partners (such as growers of cocoa beans) in remote areas of other countries.16

Acquired needs theory McClelland’s theory that proposes that certain types of needs (achievement, affiliation, power) are acquired during an individual’s lifetime

NEW LEADER ACTION MEMO As a leader, you can use good working conditions, satisfactory pay, and comfortable relationships to reduce job dissatisfaction. To spur greater follower satisfaction and enthusiasm, you can employ motivators—challenge, responsibility, and recognition.


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acquired needs theory all identify the specific needs that motivate people. Leaders can work to meet followers’ needs and hence elicit appropriate and successful work behaviors.

8-3 OTHER MOTIVATION THEORIES Three additional motivation theories—the reinforcement perspective, expectancy theory, and equity theory—focus primarily on extrinsic rewards and punishments Relying on extrinsic rewards and punishments is sometimes referred to as the carrot-and-stick approach.20 Behavior that produces a desired outcome is rewarded with a ‘‘carrot,’’ such as a pay raise or promotion. Conversely, undesirable or

LEADER’S SELF-INSIGHT 8.1 Are Your Needs Met?

Instructions: Think of a specific job (current or previous) you have held. If you are a full-time student, think of your classes and study activities as your job. Please answer the following questions about those work activities. Indicate whether each item is Mostly False or Mostly True for you.

Mostly False

Mostly True

1. I feel physically safe at work. ______ ______ 2. I have good health benefits. ______ ______ 3. I am satisfied with what I’m getting

paid for my work. ______ ______ 4. I feel that my job is secure as long

as I want it. ______ ______ 5. I have good friends at work. ______ ______ 6. I have enough time away from my

work to enjoy other things in life. ______ ______ 7. I feel appreciated at work. ______ ______ 8. People at my workplace respect

me as a professional and expert in my field. ______ ______

9. I feel that my job allows me to realize my full potential. ______ ______

10. I feel that I am realizing my potential as an expert in my line of work. ______ ______

11. I feel I’m always learning new things that help me to do my work better. ______ ______

12. There is a lot of creativity involved in my work. ______ ______

Scoring and Interpretation Compute the number of Mostly True responses for the ques- tions that represent each level of Maslow’s hierarchy, as indi- cated in the next column, and write your score where indicated:

Questions 1–2: Physiological and health needs. Score ¼ ______. Questions 3–4: Economic and safety needs. Score ¼ ______. Questions 5–6: Belonging and social needs. Score ¼ ______. Questions 7–8: Esteem needs. Score ¼ ______. Questions 9–12: Self-actualization needs. Score ¼ ______.

These five scores represent how you see your needs being met in the work situation. An average score for overall need satisfaction (all 12 questions) is typically 6, and the average for lower-level needs tends to be higher than for higher-level needs. Is that true for you? What do your five scores say about the need satisfaction in your job? Which needs are less filled for you? How would that affect your choice of a new job? In developed countries, lower needs are often taken for granted, and work motivation is based on the opportunity to meet higher needs. Compare your scores to those of another student. How does that person’s array of five scores differ from yours? Ask questions about the student’s job to help explain the difference in scores.

Reread the 12 questions. Which questions would you say are about the motivators in Herzberg’s two-factor theory? Which questions are about hygiene factors? Calculate the average points for the motivator questions and the average points for the hygiene factor questions. What do you inter- pret from your scores on these two factors compared to the five levels of needs in Maslow’s hierarchy?

Source: These questions are taken from Social Indicators Research 55 (2001), pp. 241–302, ‘‘A New Measure of Quality of Work Life (QWL) based on Need Satisfaction and Spillover Theories,’’ M. Joseph Sirgy, David Efraty, Phillip Siegel and Dong-Jin Lee. Copyright ª and reprinted with kind permission of Kluwer Academic Publishers.

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unproductive behavior brings the ‘‘stick,’’ such as a demotion or withholding a pay raise. Carrot-and-stick approaches tend to focus on lower needs, although higher needs can sometimes also be met. Read the story in this chapter’s Consider This to gain some perspective on the use of carrots as motivators.

8-3a Reinforcement Perspective on Motivation The reinforcement approach to employee motivation sidesteps the deeper issue of employee needs described in the needs-based theories. Reinforcement theory simply looks at the relationship between behavior and its consequences by changing or modifying followers’ on-the-job behavior through the appropriate use of immediate rewards or punishments.

Behavior modification is the name given to the set of techniques by which rein- forcement theory is used to modify behavior.21 The basic assumption underlying behavior modification is the law of effect, which states that positively reinforced behav- ior tends to be repeated, and behavior that is not reinforced tends not to be repeated. Reinforcement is defined as anything that causes a certain behavior to be repeated or inhibited. Four ways in which leaders use reinforcement to modify or shape employee behavior are positive reinforcement, negative reinforcement, punishment, and extinc- tion, as illustrated in Exhibit 8.6.

Positive reinforcement is the administration of a pleasant and rewarding con- sequence immediately following a desired behavior. A good example of positive

ConsiderThis! Does the Carrot Kill Satisfaction?

A shopkeeper got tired of the noise of a group of children who played outside his store every afternoon. One day, he asked them to leave and promised he’d give each of them $1 to come back and play there the next day. Of course, they showed up. Then the shopkeeper said he would give each one 50 cents to come back the following day. The next day he offered 25 cents for them to return. At that point, the children said they wouldn’t be back the following day because it wasn’t worth it for a quarter. The shopkeeper got what he wanted by shifting the children’s motivation for playing there toward earning an extrinsic reward rather than for the intrinsic pleasure they originally received.

The moral of the story is that the motivation to seek an extrinsic reward, whether it’s a bonus or professional approval, leads people to focus on the reward rather than on the intrin- sic satisfaction they get from their activities. Extrinsic rewards are temporary. They typically address lower-level needs and focus people on immediate goals and deadlines rather than long-term success and happiness.

Sources: Several variations of this familiar story have been told in different sources, including Vincent F. Filak and Robert S. Pritchard, ‘‘Fulfilling Psychological vs. Financial Needs: The Effect of Extrinsic Rewards on Motivation and Attachment to Internships,’’ presented in the Public Relations Division in the Association for Education in Journal- ism and Mass Communication Conference, August 2008, Chicago, http://citation.allacademic.com/meta/p_mla_ apa_research_citation/2/7/2/3/1/pages272318/p272318-9.php (accessed April 20, 2013); Samuel S. Franklin, The Psychology of Happiness: A Good Human Life (New York: Cambridge University Press, 2010), pp. 61–62; and Alfie Kohn, Punished by Rewards: The Trouble with Gold Stars, Incentive Plans, A’s, Praise, and Other Bribes (Boston: Houghton Mifflin, 1999).

Reinforcement theory a motivational theory that looks at the relationship between behavior and its consequences by changing or modifying followers’ on-the-job behavior through the appropriate use of immediate rewards or punishments

Behavior modification the set of techniques by which reinforcement theory is used to modify behavior

Law of effect states that positively reinforced behavior tends to be repeated and behavior that is not reinforced tends not to be repeated

Reinforcement anything that causes a certain behavior to be repeated or inhibited

Positive reinforcement the administration of a pleasant and rewarding consequence following a behavior


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reinforcement is immediate praise for an employee who does a little extra in his or her work. Studies have shown that positive reinforcement does help to improve performance. In addition, nonfinancial reinforcements such as positive feedback, social recognition, and attention are just as effective as financial rewards.22 A recent study of employees at a fine dining restaurant, for example, found that when leaders provided clear tasks and clear feedback on how well people were performing the tasks, motivation and performance improved. Cleaning and sanitizing of tables, chairs, floors, and restrooms increased by 63 percent and restocking of side stations increased by 48 percent.23 Supervisor attention and feedback provide a psychologi- cal boost to motivation that has nothing to do with financial rewards.

In fact, many people consider factors other than money to be more important. In a McKinsey global survey on the motivational value of money, respondents rated ‘‘praise and commendation from their immediate supervisor’’ as being a more effective motiva- tor than cash.24 Unexpected praise or expressions of appreciation can give a tremendous motivational boost. Indra Nooyi, CEO of PepsiCo, sends thank-you notes not only to members of her team who do well but also to their spouses and parents.25 In a recent Globoforce MoodTracker Survey, 82 percent of employees said being recognized for their efforts increased their motivation. ‘‘It made me work harder, want to come to work every day, and I was proud to work for my boss,’’ said one respondent. However, only 65 percent of companies surveyed have employee recognition programs, and 41 percent of employees said they hadn’t been recognized for a period of at least six months.26

Negative reinforcement, sometimes referred to as avoidance learning, is the process of withdrawing an unpleasant consequence once a behavior is improved,

EXHIBIT 8.6 Shaping Behavior with Reinforcement

Reprimand employee Make negative statements

Employee continues slow work

Punishment Reduces likelihood that behavior will be repeated

Extinction Reduces likelihood that behavior will be repeated

Withhold raises, merit pay, praise

Praise employee Recommend pay raise

Employee increases work rate

Slow work rate Supervisor requests faster work

Positive Reinforcement Increases likelihood that behavior will be repeated

Avoidance Learning Increases likehood that behavior will be repeated

Avoid reprimands, negative statements

Source: Based on Richard L. Daft and Richard M. Steers, Organizations: A Micro/Macro Approach (Glenview, IL: Scott, Foresman, 1986) p. 109.

Negative reinforcement the withdrawal of an unpleasant consequence once a behavior is improved

Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise. They’re absolutely free—and worth a fortune. Sam Walton, founder of Walmart


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thereby encouraging and strengthening the desired behavior. The idea is that people will change a specific behavior to avoid the undesired result that behavior provokes. As a simple example, a supervisor who constantly reminds or nags an employee who is goofing off on the factory floor and stops the nagging when the employee stops goofing off is using negative reinforcement.

Punishment is the imposition of unpleasant outcomes on an employee in order to discourage and weaken an undesirable behavior. An example of punishment is when the board of JPMorgan Chase cut CEO Jamie Dimon’s 2012 bonus by 50 percent because of oversight failures that led to a multibillion-dollar trading loss related to the so-called ‘‘London Whale’’ fiasco. The punishment is intended to prevent the CEO from relying too heavily on what he is told by senior managers, and instead to seek evidence and corroboration of prudent trading behaviors.27 The use of punishment in organizations is controversial and sometimes criticized for failing to indicate the correct behavior.

Extinction is the withholding of something positive, such as leader attention, praise, or pay raises. With extinction, undesirable behavior is essentially ignored. The idea is that behavior that is not reinforced with positive attention and rewards will gradually disappear. A New York Times reporter wrote a humorous article about how she learned to stop nagging and instead use reinforcement theory to shape her husband’s behavior after studying how professionals train animals.28

When her husband did something she liked, such as throw a dirty shirt in the ham- per, she would use positive reinforcement, thanking him or giving him a hug and a kiss. Undesirable behaviors, such as throwing dirty clothes on the floor, on the other hand, were simply ignored, applying the principle of extinction.

Leaders can apply reinforcement theory to influence the behavior of followers. They can reinforce behavior after each and every occurrence, which is referred to as continuous reinforcement, or they can choose to reinforce behavior intermittently, which is referred to as partial reinforcement. With partial reinforcement, the desired behavior is reinforced often enough to make the employee believe the behavior is worth repeating, even though it is not rewarded every time it is demonstrated. Continuous reinforcement can be very effective for establishing new behaviors, but research has found that partial reinforcement is more effective for maintaining behavior over extended time periods.29

8-3b Expectancy Theory Expectancy theory suggests that motivation depends on individuals’ mental expectations about their ability to perform tasks and receive desired rewards. Expectancy theory is associated with the work of Victor Vroom, although a number of scholars have made contributions in this area.30 Expectancy theory is concerned not with understanding types of needs but with the thinking process that people use to achieve rewards.

Expectancy theory is based on the relationship among the person’s effort, the possibility of high performance, and the desirability of outcomes following high performance. Exhibit 8.7 illustrates these elements and the relationships among them. The E > P expectancy is the probability that putting effort into a task will lead to high performance. For this expectancy to be high, the individual must have the ability, previous experience, and necessary tools, information, and opportunity to perform. One interesting study of expectancy theory looked at patrol officer drug arrests in the midwestern United States. The research found that officers who made the most arrests were those who received specialized training to hone their skills

Punishment the imposition of unpleasant outcomes on an employee following undesirable behavior

Extinction the withdrawal of a positive reward, meaning that behavior is no longer reinforced and hence is less likely to occur in the future

NEW LEADER ACTION MEMO As a leader, you can change follower behavior through the appropriate use of rewards and punishments. To establish new behaviors quickly, you can reinforce the desired behavior after each and every occurrence. To sustain the behaviors over a long time period, try reinforcing the behaviors intermittently.

Expectancy theory a theory that suggests that motivation depends on individuals’ mental expecta- tions about their ability to perform tasks and receive desired rewards


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and who perceived that they had sufficient time and resources to properly investi- gate suspected drug activity.31

The P > O expectancy involves whether successful performance will lead to the desired outcome. If this expectancy is high, the individual will be more highly moti- vated. Valence refers to the value of outcomes to the individual. If the outcomes that are available from high effort and good performance are not valued by an employee,are available from high effort and good performance are not valued by an employee,are available from high effort and good perf motivation will be low. Likewise, if outcomes have a high value, motivation will be higher. A simple example to illustrate the relationships in Exhibit 8.7 is Alfredo Torres, a salesperson at Diamond Gift Shop. If Alfredo believes that increased selling effort will lead to higher personal sales, his E > P expectancy is considered high. Moreover, if he also believes that higher personal sales will lead to a promotion or pay raise, the P > O expectancy is also high. Finally, if Alfredo places a high value on the promotion or pay raise, valence is high and he will be highly motivated. For an employee to be highly motivated, all three factors in the expectancy model must be high.32

Like the path–goal theory of leadership described in Chapter 3, expectancy theory is personalized to subordinates’ needs and goals. Every person is different, so leaders have to use a mix of incentives and rewards to motivate. A leader’s responsi- bility is to understand each follower’s ‘‘unique motivational profile’’ and then help followers meet their needs while attaining organizational goals.33

According to expectancy theory, leaders enhance motivation by increasing followers’ expectancy—clarifying individual needs, providing the desired outcomes, and ensuring that people have the ability and support needed to perform well and attain their desired outcomes.

8-3c Equity Theory Sometimes employees’ motivation is affected not only by their expectancies and the rewards they receive but also by their perceptions of how fairly they are treated in

EXHIBIT 8.7 Key Elements of Expectancy Theory

E > P expectancy Effort Performance

Will putting effort into the task lead to the desired performance?

P > O expectancy Performance Outcomes

Valence—value of outcomes (pay, recognition, other rewards)


Will high performance lead to the desired outcome?

Are the available outcomes highly valued?

NEW LEADER ACTION MEMO Expectancy theory and reinforcement theory are widely used in all types of organizations and leadership situations. The questionnaire in Leader’s Self-Insight 8.2 gives you the opportunity to see how effectively you apply these motivational ideas in your own leadership.


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relation to others. Equity theory proposes that people are motivated to seek social equity in the rewards they receive for performance.34 According to the theory, if people perceive their rewards as equal to what others receive for similar contribu- tions, they will believe they are treated fairly and will be more highly motivated. When they believe they are not being treated fairly and equitably, motivation will decline. Recall the chapter-opening example of the web developer who left his job at Gravity Payments because of perceived inequity. Another example is Samantha Eckerd. Eckerd was told that she would have to move to a new job position to make more money at her financial services company, but after she changed jobs the company hired someone for her previous job at a much higher salary than Eckerd

LEADER’S SELF-INSIGHT 8.2 Your Approach to Motivating Others

Instructions: Think about situations in which you were in a formal or informal leadership role in a group or organization. Imagine using your personal approach as a leader, and answer the following questions. Indicate whether each item is Mostly False or Mostly True for you.

Mostly False

Mostly True

1. I ask the other person what rewards they value for high performance. ______ ______

2. I find out if the person has the ability to do what needs to be done. ______ ______

3. I explain exactly what needs to be done for the person I’m trying to motivate. ______ ______

4. Before giving somebody a reward, I find out what would appeal to that person. ______ ______

5. I negotiate what people will receive if they accomplish the goal. ______ ______

6. I make sure people have the ability to achieve performance targets. ______ ______

7. I give special recognition when others’ work is very good. ______ ______

8. I only reward people if their performance is up to standard. ______ ______

9. I use a variety of rewards to reinforce exceptional performance. ______ ______

10. I generously praise people who perform well. ______ ______

11. I promptly commend others when they do a better-than- average job. ______ ______

12. I publicly compliment others when they do outstanding work. ______ ______

Scoring and Interpretation These questions represent two related aspects of motivation theory. For the aspect of expectancy theory, sum the points for Mostly True to questions 1–6. For the aspect of reinforcement theory, sum the points for Mostly True for questions 7–12.

The scores for my approach to motivation are:

My use of expectancy theory: ______ My use of reinforcement theory: ______

These two scores represent how you see yourself applying the motivational concepts of expectancy and reinforcement in your own leadership style. Four or more points on expectancy theory means you motivate people by managing expectations. You understand how a person’s effort leads to performance and make sure that high performance leads to valued rewards. Four or more points for reinforcement theorymeans that you try to modify people’s behavior in a positive direction with fre- quent and prompt positive reinforcement. New managers often learn to use reinforcements first, and as they gain more experi- ence they are able to apply expectancy theory.

Exchange information about your scores with other students to understand how your application of these two motivation theories compares to others’. Remember, leaders are expected to master the use of these two motivation theories. If you didn’t receive an average score or higher, you can consciously do more with expectations and rein- forcement when you are in a leadership position.

Sources: These questions are based on D. Whetten and K. Cameron, Devel- oping Management Skills, 5th ed. (Upper Saddle River, NJ: Prentice Hall, 2002), pp. 302–303; and P. M. Podsakoff, S. B. Mackenzie, R. H. Moorman, and R. Fetter, ‘‘Transformational Leader Behaviors and Their Effects on Followers’ Trust in Leader, Satisfaction, and Organizational Citizenship Behaviors,’’ Leadership Quarterly 1, no. 2 (1990), pp. 107–142.

Equity theory a theory that proposes that people are motivated to seek social equity in the rewards they receive for performance

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had made in that position. The sense of unfairness created so much anger and stress that Eckerd’s performance and willingness to collaborate with others suffered, and she considered looking for a new job.35

People evaluate equity by a ratio of inputs to outcomes. That is, employees make comparisons of what they put into a job and the rewards they receive relative to those of other people in the organization. Inputs include such things as education, experience, effort, and ability. Outcomes include pay, recognition, promotions, and other rewards. A state of equity exists whenever the ratio of one person’s outcomes to inputs equals the ratio of others’ in the work group. Inequity occurs when the input/outcome ratios are out of balance, such as when an employee with a high level of experience and ability receives the same salary as a new, less-educated employee.

Some companies are sharing hiring and promotion decisions, performance appraisal data, and individual employees’ pay rates with everyone in the company, saying it creates trust and keeps people from worrying about inequity. Others, though, say too much openness creates more problems. Slava Akhmechet, CEO and cofounder of database firm RethinkDB, experimented with open pay but ran into problems when he needed to hire new technical employees in a tight labor market. Akhmechet found that he needed to offer the newcomers higher salaries than current employees