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  • 1. 119118 1 CHAPTER ONE WHAT DOES IT MEAN TO BE A LEADER? CHAPTER OUTLINE The Nature of Leadership The New Reality for Today’s Organizations Comparing Management and Leadership Evolving Theories of Leadership Leadership Is Not Automatic Learning the Art and Science of Leadership Organization of the Rest of the Book In the Lead Darwin E. Smith, Kimberly-Clark Frances Hesselbein and the Girl Scout Way Leader’s Self-Insight Your Learning Style: Using Multiple Intelligences Your Leadership Potential Are You on a Fast Track to Nowhere? Leader’s Bookshelf Leadership Leadership at Work Leadership Right-Wrong Leadership Development: Cases for Analysis Sales Engineering Division Airstar, Inc. 2222TTTttt2211 1 Thomson Learning, Inc. 1
  • 2. 2 219218 SUMMARY AND INTERPRETATION This chapter introduced the concept of leadership and explained how individuals 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, influence, 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, your neighborhood, community, or volunteer organizations. Concepts of leadership have evolved over time. Major research approaches include Great Man theories, trait theories, behavior theories, contingency theories, influence theories, and relational theories. Elements of all these approaches are still applicable to the study of leadership. In addition, emerging theories of leadership focus primarily on how leaders create change by providing vision and direction as well as the culture and values that help attain it. 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 and crisis management, from control to empowerment, from competition to collaboration, from uniformity to diversity, and from a self-centered focus to a higher ethical purpose. In addition, the concept of leader as hero is giving way to that 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 different processes. Management strives to maintain stability and improve efficiency. 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 managed and led, particularly in today’s chaotic 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. It is important to remember that most people are not born with natural leadership skills and qualities, but leadership can be learned and developed. 2 2222TTTttt2222 Thomson Learning, Inc. 2
  • 3. 319318 3 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. • Realize how historical leadership approaches apply to the practice of leadership today. KEY TERMS AND CONCEPTS Leadership: an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes. Paradigm: a shared mind-set that represents a fundamental way of thinking about, perceiving, and understanding the world. Management: the attainment of organizational goals in an effective and efficient manner through planning, organizing, staffing, directing, and controlling organizational resources. Vision: a picture of an ambitious, desirable future for the organization or team. Position power: a written, spoken, or implied contract wherein people accept either a superior or subordinate role and see the use of coercive as well as noncoercive behavior as an acceptable way to achieve desired results. Learning leader: open to learning and change and encourages the growth and development of others. 2222TTTttt2233 3 Thomson Learning, Inc. 3
  • 4. 4 419418 INTRODUCTION As commander of the USS San Antonio, Brad Lee is responsible for up to 400 sailors, twice that many Marines, numerous aircraft, fighting vehicles, smaller vessels, and tactical support. Lee is confident in himself – and, more significantly, in his crew. “Every sailor is important,” Lee tells his crew members, stressing that success is never a one-man mission. So, it’s not about me. It’s about the ship and the success of our mission.” It was the desire to help other sailors, rather than personal ambition, that spurred Lee to seek increasing levels of leadership responsibility. By the time he took command of the USS San Antonio, he had served 18 years in the Navy and earned numerous awards and medals. What does it mean to be a leader? For Commander Brad Lee, it means striving to make a difference in the lives of others and the world. It means believing in yourself and those you work with, loving what you do and infusing others with energy and enthusiasm. ANNOTATED LECTURE/OUTLINE _____________________________________________________________________________ _ Leadership Challenge #1: Understand the full meaning of leadership and see the leadership potential in yourself and others. The Nature of Leadership Exhibit 1.1: What Leadership Involves  What does leadership mean? Leadership has been of interest to historians and philosophers since ancient times, but scientific studies began in the twentieth century. Defining leadership has been a complex problem because of the complex nature of leadership. • Some suggest that leadership is nothing more than a romantic myth. When times are tough, people may look to a grand, heroic type of leader to alleviate fear and uncertainty. • In recent years, this view has been challenged. Definition of Leadership Leadership: an influence relationship among leaders and followers who intend real changes that reflect their shared purposes. Leadership involves influence • it occurs among people • those people intentionally desire significant changes 4 • the changes reflect purposes shared by leaders and followers. 2222TTTttt2244 Thomson Learning, Inc. 4
  • 5. 519518 5 Influence means that the relationship among people is not passive; it is multidirectional and non- coercive. Leadership is reciprocal: • superiors influence subordinates • subordinates also influence superiors. Leadership involves creating changes which reflects purposes leaders and followers share. • Leaders influence others to unite around a common vision. Leadership is a people activity, distinct from administrative paperwork or planning. • It occurs among people; it is not something done to people • Since leadership involves people, there must be followers. Good leaders know how to follow and set an example for others. Leadership is shared among leaders and followers, with everyone fully engaged and accepting higher levels of responsibility.  Is a musician or athlete who is an expert considered a leader? Only if followers are involved. The qualities for effective leaders are the same as those needed for an effective follower. • Effective followers think for themselves and carry out assignments with energy and enthusiasm. Discussion Question #1: What do you consider your own strengths and weaknesses for leadership? Discuss your answer with another student. Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ __ Leadership and the Business of Living By not equating leadership with "greatness" and public visibility, it becomes easier to see opportunities for leadership every day. • Leadership that has big outcomes often starts small. • Leadership involves influence and change toward a desired goal or outcome. • Leadership is an everyday way of acting and thinking.  What opportunities for leadership do you recognize at hand? Action Memo: As a leader, you can recognize the opportunities for leadership all around you and act to influence others and bring about changes for a better future. 2222TTTttt2255 5 Thomson Learning, Inc. 5
  • 6. 6 619618 Discussion Question #3: Of the elements in the leadership definition in Exhibit 1.1, which is the easiest for you? Which is hardest? Explain. Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ __ __________________________________________________________________ Leadership Challenge #2: Recognize and facilitate the six fundamental transformations in today's organizations and leaders. The New Reality for Today's Organization Exhibit 1.2: The New Reality for Leadership The world of organizations is changing rapidly through---globalization, shifting geopolitical forces, outsourcing, advancing technologies, virtual teams, and e-business. • People feel the impact of these trends and must adapt to new ways of working Economic uncertainty, wide-spread ethical scandals, war, and terrorism make leaders face a tough job in keeping people grounded, focused, and motivated. • Rapid environmental changes are causing fundamental shifts from a traditional to a new paradigm. A paradigm is a shared mindset that represents a fundamental way of thinking about, perceiving, and understanding the world. • Although many leaders still operate from an old-paradigm mind-set, they are increasingly ineffective. Successful leaders will respond to the new reality. From Stability to Change and Crisis Management Today’s world is in constant motion and nothing seems certain anymore.  What events have shattered the illusion of stability? 9-11, Hurricane Katrina Most leaders realize that trying to maintain stability is a losing battle. The new paradigm acknowledges, as suggested by chaos theory, that we live in a world characterized by uncertainty and small events have far-reaching consequences. 6 2222TTTttt2266 Thomson Learning, Inc. 6
  • 7. 719718 7 • Today’s leaders accept change and crisis as sources of energy and self-renewal. • They develop crisis management skills. Discussion Question #2: How do you feel about changing yourself in order to become a leader who can change an organization? Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _ From Control to Empowerment Leaders once believed in strict control ---- telling workers what, how, when and with whom to do something. • Today’s leaders share power and find ways to get everyone involved and committed. The financial basis of today’s economy is information not land, buildings, and machines. The primary factor of production is human knowledge which increases the power of employees.  Do today’s highly-educated workers want only good salaries or do they insist upon interesting and challenging jobs? A challenge for a leader is to guide workers in using their power effectively and creating a climate of respect and development. Discussion Question #4: What does the paradigm shift from control to empowerment mean for you? Discuss. Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ __ From Competition to Collaboration Today’s organization stress teamwork and cooperation, not competition. • Self-directed teams break down boundaries between departments and spread knowledge and information. Knowledge management, which relies on sharing information, has taken hold. • trend toward reducing boundaries and increasing collaboration. • Companies see themselves as teams that value creativity. Global business networks of independent companies share financial risks, leadership and access to technologies and markets. • Empowerment makes intimidation and manipulation obsolete. 2222TTTttt2277 7 Thomson Learning, Inc. 7
  • 8. 8 819818 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 organizations. Use Discussion Question #5: Describe the best leader you have known. How did this leader acquire his or her capability? Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ From Uniformity to Diversity Many of today's organizations were built on assumptions of: • uniformity • separation • specialization. People who think alike and have similar jobs skills are grouped into a homogeneous department (e.g., accounting). • The uniform thinking that arises can be a disaster in a world becoming more multi-national and diverse. • The world is rapidly moving towards diversity. o Diversity attracts the best talent and develops an organizational mind-set to thrive in a multinational world. From Self-Centered to Higher Ethical Purpose The old-paradigm emphasis on individual ability and prosperity pushed leaders to cross the line, into (e.g., Enron). New-paradigm leaders emphasize: • accountability • integrity • responsibility to employees, customers, the firm, and all stakeholders. From Hero to Humble There is a shift from the celebrity “leader-as-hero” to the behind-the-scenes leader who builds a company by supporting and developing others. These leaders let others take the credit.  Ho do new-paradigm leaders produce great results? They let others take the credit. 8 2222TTTttt2288 Thomson Learning, Inc. 8
  • 9. 919918 9 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, ethical purpose. You can channel your ambition toward achieving larger organizational goals rather than feeding your own ego. Discussion Question #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? Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ In the Lead: Darwin E. Smith, Kimberly-Clark During his 20 years as CEO, Darwin Smith turned Kimbely-Clark into the world’s leading consumer paper products company, yet few people have ever heard of him. And that’s just the way he wanted it. Smith was somewhat shy and awkward in social situations. Yet, far from being meek, Smith demonstrated an aggressive determination to revive Kimberly-Clark, which at the time was a stodgy old paper company that had seen years of falling stock prices. Smith took the controversial step of selling the company’s paper mills and investing all its resources in consumer products like Kleenex and Huggies diapers. It proved to be a stroke of genius. Q: Describe Darwin E. Smith as a new-paradigm leader. A: Smith developed a solid corps of leaders throughout the organization and created a culture focused on high performance and integrity. He accepted responsibility for failures and gave credit for successes to others. Leadership Challenge #3: Recognize the traditional functions of management and the fundamental differences between leadership and management. ___________________________________________________________________________ Comparing Management and Leadership Exhibit 1.3: Comparing Management and Leadership Management is the attainment of organizational goals in an effective and efficient manner through planning organizing, staffing, directing, and controlling organizational resources. With current emphasis of leadership, managers have gotten a bad name. • Many managers possess abilities and qualities to be effective leaders. Leadership cannot replace management 2222TTTttt2299 9 Thomson Learning, Inc. 9
  • 10. 10 10191018 • it is in addition to management. Action Memo: You can evaluate your own leadership potential by completing the quiz in Leader’s Self-Insight 1.2. Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________________________________________________ Leadership Challenge #4: Appreciate the crucial importance of providing direction, alignment, relationships, personal qualities, and outcomes. Providing Direction Both leadership and management provide direction for the organization. • Management focuses on plans and schedules for achieving results and allocates resources. • Leadership creates a vision of the future and strategies for the changes needed to achieve that vision. A vision is a picture of an ambitious, desirable future for the organization or team. To be compelling for followers, the vision has to be one that they can relate to and share.  Ask students to cite examples of a vision. IKEA: to provide affordable furniture for people with limited budgets Aligning Followers Management entails organizing a structure; staffing the structure; and developing policies to direct employees and monitor implementation. Managers are thinkers and workers are doers. Leadership communicates the vision and develops a shared culture and core values for a desired future. The management communication process provides answers: • leadership entails asking questions, listening, and involving others. Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Building Relationships Management focuses on machines, reports, and the production of goods and services. • Leadership focuses on motivating and inspiring people. 10 2222TTTttt221010 Thomson Learning, Inc. 10
  • 11. 11191118 11 Management relationship is based on formal authority. Formal position power is a written, spoken, or implied, contract wherein people accept a superior or subordinate role and see the use of coercive and noncoercive behavior as acceptable to achieve results. Leadership relies on personal influence, which is less likely to use coercion • Followers are empowered to make decisions. Leadership power comes from the personal character of the leader. • The differing source of power is one of the key distinctions between management and leadership.  Cite examples showing that leadership depends on who you are rather than on your position or title. Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Developing Personal Leadership Qualities Leadership is more than a set of skills; it relies on personal qualities. • Leadership springs from passion and concern for other people • Management encourages emotional distance. Where there is leadership, people become part of a community and feel they contribute to something worthwhile. • True leaders tend to have an open mind, care about others, and build personal connections. • Leaders listen, are willing to say no, and step outside the comfort zone. • They set high moral standards by doing the right thing. 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. Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ 2222TTTttt221111 11 Thomson Learning, Inc. 11
  • 12. 12 12191218 In the Lead: Frances Hesselbein and the Girl Scout Way Frances Hesselbein began her career more than 40 years ago as a volunteer Scout leader and rose to CEO of the Girl Scouts, a troubled organization of 680,000 people of whom 1 percent were paid. When she retired in 1990, Hesselbein had turned around declining membership, increased participation by minorities, and replaced a brittle hierarchy with a vibrant organization. Hesselbein would listen carefully and link people in such a way that their personal needs were met at the same time they were serving the needs of the organization. Q: How was Frances Hesselbein a new-paradigm leader? A: Hesselbein realized that the only way to achieve high performance is through the work of others, and she consistently treats people with respect. She feels that taking people for granted is contrary to the definition of what makes a leader. Creating Outcomes The differences between management and leadership create two different outcomes. • Management maintains stability, predictability, and order through a culture of efficiency. This helps the organization achieve short-term results. • Leadership creates change within a culture of integrity that helps the organization thrive over the long haul by promoting openness and honesty, positive relationships, and a long- term focus. Leadership challenges the status quo so that outdated norms are replaced. • Leadership and management must be combined for the organization to succeed. Discussion Question #6: Why do you think there are so few people who succeed at both management and leadership? Is it reasonable to believe someone can be good at both? Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________ Leadership Challenge #5: Realize how historical leadership approaches apply to the practice of leadership today. Evolving Theories of Leadership 12 2222TTTttt221212 Thomson Learning, Inc. 12
  • 13. 13191318 13  To understand leadership as it viewed today, why is it important to recognize how leadership has evolved over time? Leadership reflects the larger society that has changed. Exhibit 1.4: Leadership Evolution Historical Overview of Major Approaches The various leadership theories can be categorized into six basic approaches, many of which are applicable to leadership studies today. Great Man Theories Early leadership studies adopted the belief that leaders were born with certain heroic leadership traits and natural abilities of power and influence. Leadership was conceptualized s a single “Great Man” who put everything together and influenced others to follow along based on inherited traits, qualities, and abilities. Trait Theories In the 1920s, researchers looked at traits or characteristics, such as intelligence height, or energy to distinguished leaders. • The interest in leadership characteristics continues today. Behavior Theories In the 1950s, researchers considered how a leader behaved toward followers • whether autocratic or democratic • how this behavior correlated with effectiveness. Contingency Theories Researchers considered the contextual and situational variables that influence effective leadership behaviors. • Situational theories emphasize that leadership cannot be separated from the group or organizational situation. Influence Theories These theories examine influence between leaders and followers. Theories of charismatic leadership identify: • how charismatic leaders behave 2222TTTttt221313 13 Thomson Learning, Inc. 13
  • 14. 14 14191418 • how they differ from others • the conditions that give rise to charismatic leadership. Relational Theories Since the late 1970s, leadership has focused on how leaders and followers interact and influence one another. • Leadership is a relational process that engages all participants and enables each person to contribute to achieving the vision. A Model of Leadership Evolution Exhibit 1.4 provides a framework for examining the evolution of leadership. Exhibit 1.4: Leadership Evolution Leadership Era 1: a pre-industrial and pre-bureaucratic era with small organizations run by a single individual who hired workers in a stable environment; the era of Great Man leadership and emphasis on personal traits. Leadership Era 2: hierarchy and bureaucracy with organizations so large they require rules and standard procedures; the “rational manager” directs and controls using an impersonal approach in a stable environment. Leadership Era 3: the era of the team leader and the change leader and the emergence of knowledge work, horizontal collaboration, and a shift to influence theories; leadership is shared to the person with the most knowledge in an unstable environment. 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. Leadership Era 4: the digital information age in which everything is changing fast; leaders emphasize relationships and networks and influence others through vision and values. A learning leader is open to learning and change and encourages the growth and development of others Implications The implication is that leadership reflects the era or context of the organization and society. Organizations and leaders are struggling with the transition from a stable to a chaotic environment and the new skills needed 14 2222TTTttt221414 Thomson Learning, Inc. 14
  • 15. 15191518 15 Era 3 and Era 4 leadership is the subject of this book. Discussion Question #8: “Leadership is more concerned with people than is management.” Do you agree? Discuss. Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ __ Leadership is Not Automatic Exhibit 1.5: Top Seven Reasons for Executive Derailment Many leaders are caught between the practices of the industrial era and the reality of the twenty- first century. • Collaboration, empowerment, and diversity fail if leaders value control, stability, and homogeneity. 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 over- managing by selecting good followers and delegating effectively. The new paradigm of leadership uses human skills to build a culture of performance, trust, and integrity. A study compared 21 derailed executives with 20 executives who reached the top of the company. • The derailed managers had reached a plateau, were fired, or were forced to retire early. • The striking difference between the two groups was the ability to use human skills. Executive coaching helps people through the transition to a new paradigm of leadership. Action Memo: Leader’s Self-Insight 1.3 gives you a chance to test your own people skills and see if there are areas you need to work on.  How do people become good leaders? Discussion Question #9: What personal capacities should a person develop to be a good leader versus those developed to be a good manager? Notes_________________________________________________________________________ _____________________________________________________________________________ 2222TTTttt221515 15 Thomson Learning, Inc. 15
  • 16. 16 16191618 _____________________________________________________________________________ __ Learning the Art and Science of Leadership  How can a book on leadership help you to become a better leader? Leadership is both an art and a science. • an art----many leadership skills and qualities cannot be learned from a textbook; it takes practice. • a science----a body of knowledge and facts describe the leadership process and how to use leadership skills to attain organizational goals. Studying leadership provides skills to practice leadership in everyday life. • Students gain knowledge about leadership and the skills and qualities of a good leader. Discussion Question #10: Why is leadership considered both an art and a science? Notes_________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ __ Organization of the Rest of the Book Exhibit 1.6: Framework for the Book This book reflects the shift to the new paradigm and the discussion of management versus leadership. Part 1: leadership, its importance, and the transition to the new leadership paradigm. Part 2: research perspectives to include: the Great Man and trait theories, behavior theories, and contingency theories. Parts 3, 4, and 5: leadership perspectives that reflect the paradigm shift to the chaotic environment and the need for fresh leader approaches: • personal side of leadership and the qualities and forces required. • effective relationships--- motivating and empowering others, communicating as a leader, leading teams, embracing diversity, and using power and influence. • leader as social architect for a brighter future. 16 2222TTTttt221616 Thomson Learning, Inc. 16
  • 17. 17191718 17 Notes________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _ DISCUSSION QUESTIONS 1. What do you consider your own strengths and weaknesses for leadership? Discuss your answer with another student. Leadership involves the following elements: influence, intention, personal, responsibility, change, shared purpose, and followers. Leadership is a people activity, which occurs among people so it is helpful to have strong people skills. Since leadership involves people, there must be followers. Good followers know how to follow and set an example for others. Intention means that people are actively involved in the pursuit of change. Each person takes personal responsibility to achieve the desired future. Leadership is shared among leaders and followers, with everyone fully engaged. 2. How do you feel about changing yourself first in order to become a leader who can change an organization? If we stop equating leadership with “greatness” and public visibility, it becomes easier to see our own opportunities for leadership and recognize the leadership of people with whom we interact every day. Leaders come in all shapes and sizes, and many true leaders are working behind the scenes. There are opportunities for leadership all around us that involve influence and change toward a desired future. 3. Of the elements in the leadership definition in Exhibit 1.1, which is the easiest for you? Which is hardest? Explain. The leaders of tomorrow’s organization will come from anywhere and everywhere. 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. 4. What does the paradigm shift from control to empowerment mean for you? Discuss. Today, one of the leader's most challenging jobs is to guide workers in using their own power effectively and responsibly by creating and developing a climate of respect and development. Power lies more in the strength and quality of relationships rather than in titles, policies, and procedures. Empowerment is an entirely new way of looking at organizational behavior. It takes much more skill to delegate and make employees participate in decision-making than to follow strict policies and procedures. 5. Describe the best leader you have known. How did this leader acquire his or her capability? Students will give examples such as the following: As president of the Midland-Odessa Symphony & Chorale, Ingrid Zeeck had a vision for the organization and the ability to inspire 2222TTTttt221717 17 Thomson Learning, Inc. 17
  • 18. 18 18191818 other volunteers to carry out the vision. She selected good volunteers who had the appropriate skills for each committee and worked with the volunteers using a team approach. She always listened to their ideas and incorporated them into the project. She made both volunteers and staff members feel important and always recognized their efforts. 6. Why do you think there are so few people who succeed at both management and leadership? Is it reasonable to believe someone can be good at both? Discuss. Management and leadership are both important, but it is often difficult for CEOs to focus on both dimensions of their job. Traditional management is needed to meet current obligations to customers, stockholders, employees, and others. The problem is that too many people are doing management, two few providing leadership, and fewer still who have integrated the skills and qualities needed for meeting both leadership and management challenges. Organizations need leaders to visualize the future, motivate and inspire employees, and adapt to changing needs. Jack Welsh of General Electric is one of the best-known examples of a business executive who combines good management and effective leadership. He understands and practices good management such as cost control but is a master leader, actively promoting change and communicating a vision. 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? The events of September 11th showed the world how the firefighters of New York were humble leaders, dedicated to the greater good rather than their own personal advancement. They ran into the twin towers to save others. Humility is important for good leadership because it places the focus is on getting the job done rather than self-aggrandizement. 8. “Leadership is more concerned with people than is management.” Do you agree? Discuss. Human skills are increasingly important for leaders in today’s economy. Leadership means being emotionally connected to others. Where there is leadership, people become part of a community and feel that they are contributing to something worthwhile. Unfortunately, attempts to achieve collaboration, empowerment, and diversity may fail because leaders and employees have beliefs and though processes stuck in the old paradigm that values control, stability, and homogeneity--- rather than people. 9. What personal capacities should a person develop to be a good leader versus those developed to be a good manager? One of the most important aspects of the new paradigm of leadership is the ability to use human skills to build a culture of performance, trust, and integrity. A study compared 21 derailed executives with 20 executives who successfully arrived at the top of the company. The successful executives had good people skills; the best leaders are deeply interested in others. 10. Why is leadership considered both an art and a science? 18 2222TTTttt221818 Thomson Learning, Inc. 18
  • 19. 19191918 19 It is an art because many leadership skills and qualities cannot be learned from a textbook. Leadership takes practice and hands-on experience. Learning about leadership research helps people analyze situations from a variety of perspectives and learn how to be effective as leaders. Leadership is a science because a growing body of knowledge and objective facts describe the 9 leadership process and how to use leadership skills to attain organizational goals. TEACHING TOOLS AND EXERCISES 1. Leadership at Work: Leadership Right-Wrong. 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 with subordinates from those who are not. 2. Consider This box presents ten commandments based on 1950s western film star Gene Autry’s Cowboy Code. How do they apply to new paradigm leaders? Discuss as a small group activity. 3. Leader’s Bookshelf : Leadership by Rudolph Giuliani. What are Rudy Giuliani’s leadership principles? Giuliani makes the point that leadership does not just happen. It can be learned and developed. Comment on this idea in a discussion or in writing. 4. Read and discuss: David Rooke and William R. Torbert, “Transformations of Leadership” Harvard Business Review (April 2005): 67-76 5. Debate the following: Management is an art and a science. Divide the class into two teams. • Team I: Management is an art. • Team II: Management is a science. Allow 25 minutes for this exercise. 6. Go to the website for The John Ben Shepperd Public Leadership Institute at The University of Texas Permian Basin www.utpb.edu/JBS/leadership.htm and click on the Leadership Resources and Links and then click on Leadership Quotes. Which quotations best describe your view of leadership? LEADERSHIP DEVELOPMENT: CASES FOR ANALYSIS I. Synopsis: Sales Engineering Division When DGL International, a manufacturer of refinery equipment, brought in John Terrill to manage its Sales Engineering division, company executives informed him of the urgent situation. 2222TTTttt221919 19 Thomson Learning, Inc. 19
  • 20. 20 20192018 Sales Engineered had the highest-paid, best-educated, and least-productive division in the company. Terrill was to turn it around! Terrill showed concern for the personal welfare of the engineers. Terrill envisioned a future in which engineers were free to work with customers and join self-directed teams for product improvement. Terrill collected the engineers reports and showed the stacks of paper to the president. He explained that the lack of productivity was a result of excessive paperwork and reporting. Case questions and answers: 1. Does John Terrill's leadership style fit the definition of leadership in Exhibit 1.1. Explain. Yes, Terrill is trying to influence top managers by showing them that the reports are a waste of time. By allying himself with the engineers and bringing about a change in reporting procedures, Terrill is building a better relationship with them and establishing trust. Together, Terrill, and the engineers can focus on the shared purpose of increasing the productivity of the sales engineering division. He is using empowerment to turn the division around. 2. With respect to Exhibit 1.4, in what paradigm is Terrill? In what paradigm is headquarters? Terrill is in the NEW Paradigm because he wishes to empower the employees and build relationships with them. He is open to change because he listens to the engineers and respects their desire to work with customers. Headquarters is in the OLD Paradigm because the triplicate reports for top management represent a control mechanism to assure stability and uniformity. 3. What approach would you have taken in this situation? A less confrontational approach with the president would have been more appropriate and helped Terrill build a good relationship with both the engineers and top management. Human skills are increasingly important for leaders in today’s economy. In the new paradigm, leaders put people first and build relationships with all members of the organization. II. Synopsis: Airstar, Inc. Airstar, Inc. manufactures, repairs, and overhauls pistons and jet engines for smaller, often privately owned aircraft. The company has a solid niche, and most managers have been with the founder for over 20 years. With the founder’s death five years ago, Roy Morgan became president. Mr. Morgan has called you in as a consultant. Your research indicates that this industry is changing rapidly. Airstar is feeling encroachment from large conglomerates and its backlog of orders is the lowest in several years. Senior managers are not sure what direction to take. Morgan confides that organizing should be as easy as dividing the work into simple, logical, routine tasks. Tasks are assigned superficially in an informal manner. Communications are atrocious. Responsibilities overlap. 1. What is your reaction to this conversation? What would you say to Morgan to help him lead the organization? Morgan has an outdated view. He is managing under the assumptions of a stable, predicable environment. Explaining that today's environment is changing and chaotic would help him rethink his position as leader of the organization. 20 2222TTTttt222020 Thomson Learning, Inc. 20
  • 21. 21192118 21 Morgan needs both leadership and management skills to provide direction for Airstar. 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 for Airstar and developing farsighted strategies for producing the changes needed to achieve that vision. A vision is a picture of an ambitious, desirable future for the organization or team. To be compelling for followers, the vision has to be one that Airstar employees can relate to and share. Morgan needs to develop his leadership skills. 2. To what extent do you rate both Morgan and Robinson as a good manager versus a good leader according to the dimensions in Exhibit 1.3? Overall Morgan and Robinson rank low in the dimensions of a good manager. • Direction: Morgan and Robinson rank low on direction which includes planning. The organization is under threat, and they are not sure which direction to take. They have considered potential acquisitions, imports and exports, more research, and additional repair lines. • Alignment: Robinson ranks far higher than Morgan on alignment which includes organizing and staffing. Robinson believes in the “principles of good organization” that written whereas Morgan assigned tasks informally. • Relationships: Morgan ranks low on relationships which includes acting as boss. The employees write their own job descriptions and there is a significant amount of conflict. • Personal qualities: Robinson ranks much higher on personal qualities than Morgan because he has management expertise and insight into the organization. He proposed that the group study the organizational chart and the various corporate business tasks. • Outcomes: They rank low on the management dimension of outcomes. They can’t maintain stability. The organization is being increasingly chaotic, and instead of creating a culture of efficiency, there is a duplication of work and poor communication. Neither Robinson nor Morgan rank high in the dimensions of leadership. • Direction: neither has created a vision and a strategy for the company. • Alignment, neither has created a shared culture that helps employees grow. • Relationships, Robinson includes others more than Morgan, but neither really motivates followers. • Personal qualities: There is no emotional connection between Robinson or Morgan and the employees of the company. • Change: Robinson is trying to bring about change but Morgan realizes that he is part of the problem. 2222TTTttt222121 21 Thomson Learning, Inc. 21
  • 22. 22 22192218 3. If you were to take over as president of Airstar, what would you do first? Second? Third? First, the president should make sure that Morgan gains some leadership skills. Leadership takes practice and hands-on experience. Knowing about leadership research would help Morgan analyze situations from a variety of perspectives and learn how to be a more effective leader. Morgan should study leadership training and develop a vision for the future of Airstar in a changing environment. Second, Morgan should align employees to carry out the vision for Airstar. Third, Morgan must develop personal relationships to motivate and energize others and to unlock the personal qualities of Airstar's employees so they can work toward the fulfillment of Airstar's vision. 22 2222TTTttt222222 Thomson Learning, Inc. 22