Your SlideShare is downloading. ×
Paul hershey's two dimensional model of leadership per aspera ad astra -case studies
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Paul hershey's two dimensional model of leadership per aspera ad astra -case studies


Published on

Various factors external and internal environment affect the two-dimensional leadership styles. The factors are: organizational culture of the company, the nature of top management, time constraints, …

Various factors external and internal environment affect the two-dimensional leadership styles. The factors are: organizational culture of the company, the nature of top management, time constraints, knowledge and experience of workers and finally, the need to control nature and the leaders also influence the choice of leadership styles. We conclude that, in order to more precisely define the leadership styles that are located between autocratic and democratic leadership style, leadership theory researchers used two-dimensional matrices, which define leadership styles depending on different parameters.

Published in: Business, Education

1 Like
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. Plenary and Invitation Paper PAUL HERSHEYS TWO-DIMENSIONAL MODEL OF LEADERSHIP: PER ASPERA AD ASTRA -CASE STUDIES1 Srđan Nikezić2, Sveto Purić3, Jelena Purić4 2 University of Kragujevac, Faculty of Science, 3 Univerity of Kragujevac, Faculty of Law, 4 Univerity of Kragujevac, Faculty of Economics, jecapuric@yahoo.comSummary: Various factors external and internal environment affect the two-dimensional leadership styles. Thefactors are: organizational culture of the company, the nature of top management, time constraints, knowledge andexperience of workers and finally, the need to control nature and the leaders also influence the choice of leadershipstyles. We conclude that, in order to more precisely define the leadership styles that are located between autocraticand democratic leadership style, leadership theory researchers used two-dimensional matrices, which defineleadership styles depending on different parameters.Keywords: two-dimensional approach, leadership styles, methods of operation, external factors and internalenvironment, the association leadership styles.1. INRODUCTIONAlthough in practice there are many two-dimensional matrix, one of the most used, and the most popularin practice developed during the seventies, is the Center for Leadership Studies by Paul Herseys. TheHersey defined leadership styles in relation to the following parameters: • direction (task behavior) which is used by leader in dealing with their workers, • social - emotional support that the leader provides to their employees, • "readiness", or levels of follower status that indicates the specific task, function, activity or purpose [1, 2, 3, 4, 5, 6, 7].Thus, leaders can provide various kinds of support to their workers, on the other hand, leaders canprovide the necessary directives and guidance in communication with his subordinate. This theoreticalapproach is called situational leadership, even though its creator Paul Hersey in all the papers anddiscussions insisted that instead of a theoretical approach using modeled approach, which is moreconsequential, relied on the practice and the set goals. [1]. Using these parameters it is possible to identifyseveral different styles of leadership, of which four were imposed as a primary: directive, coaching,delegating and participative. (Figure 1)Autocratic style Directive Coaching Participatory The delegating Style Style Style Style Democratic style Figure 1: Fundamentals of leadership model Paul Hersey1234 1
  • 2. Directive leadership style relies on the directives of leaders, but not on their support. The style isapplicable when workers know little about the area in which they work and when they do not want to takeresponsibility. Coaching leadership style is based on the directives of leaders, but also on support ofworkers. Workers know the area in which they work and their opinion is important for the work process.Participative leadership style is less reliant on directives of leaders, and much of the workers support.Implies the idea of participation and participatory style of decision and a high interaction with employees,their maturity (from moderate to high), and unwillingness to take full responsibility, which requiresadequate support of leaders in the organization. The delegating leadership style relies heavily on supportstaff, with minimal involvement of the directive leader. This style involves taking responsibility formaking decisions that are made in situations where the followers have a high degree of maturity. [8, 34]2. DIRECTIVE LEADERSHIP STYLEDirective leadership style is characterized by establishing clear directions and instructions. However,before you perform a complete dissection of this and other leadership styles need to show the connectionbetween natural resources directives of the operation and leadership in listed leaders types. (Table 1) Styles Metod of action Directive resource 1 Directive Directive with direct control Leader 2 Choaching Training with explanations of why, how and in Leader what time frame, with demonstration exercises 3 Participatory Ideas, goals and decisions are jointly Workers discussed and jointly make 4 Delegating The entire process including the decision Workers of followers Tab1e 1: Styles, methods of operation and sources of the directive; Source:Richard Johnson TQM :leardership for the quality transformation, Business Informations, Kuala Lumpur, Malaysia, 1997 [9, 92]Leaders who use this style command, indoctrinate, monitor and control their workers. Also, provide thenecessary information and training. In the early stages of company development, or a particular project, aswell as in situations requiring rapid response, directive style is irreplaceable. While this style is based onestablished clear rules of conduct and the bodies must be implemented, may have, besides positive impacton the business climate in the company, also negative. Johnson believes [9, 107] that leaders who usedirective style should be: managers, coaches, tutors, guides, supervisors, counselors, konfronteri andvisionaries. (Table 2) 2
  • 3. Role Workers Leader Steering They do not know what to do, how to Transposition of the continuous wheel do and when to work monitoring of followers Coach They do not know how to work (lack Establishment of training method of knowledge and experience) Tutor They can not use their knowledge and Training, encouraging followers and experience and thus to overcome workers and correcting the identified specific problems errors Guide They do not have a clear directive, and Explaining the objectives and deriktiva, not sure what their objectives helping workers and supporters to develop the structure of goalsController They do not know the limitations, Learning procedures, standards, procedures, standards and regulations regulations and continuous control of of the company Adviser Exhibit poor performance and face Performance analysis and work, different problems, which can be assessment of eligibility workers and overcome only by obtaining timely and followers of the project tasks consistent adviceKonfronter Exhibit poor work performance after Improving the performance and training and counseling possible termination of tasksVisionary They do not know the companys Explaining the vision and the vision of organizational vision convergence of the personal goals of employees while achieving customer satisfaction and company profits Table 2: Roles in a directive leadership style [9, 107]As managers, leaders explain to their employees what procedures should be used in the work, and then,later, supervise their work. In this way, explaining what their workers, how and when to be done, theydefine the entire process of the company. Leaders act as coaches in situati ons where employees need helpfor professional development. As coaches, leaders need to be careful listeners and speakers to "catch" thebasic thread of communication and thus enable workers to find their strengths and weaknesses. Tutoringrole of the leader is reduced to the task of providing their workers with the necessary knowledge andencouragement to the appropriate application of knowledge in the processes and tasks in the company. Inthis way it fulfills its role and "specific" guide that links workers to the wishes of the organizations goals.In particular, the present conditions, role and application of knowledge has immense positiveconsequences for the company, if the cognitive approach is properly directed, or if the leaders, as tutors,monitor the work of its employees and help them to overcome problems that may arise from their lack ofexperience and knowledge. An ongoing process of education is imperative to present. In this wayprovided the synergy between company goals and workers and leader as a guide, assuming that workershave the necessary knowledge and know how to use the procedure should only give oral or writtendirectives to activate the knowledge, which is accumulated in the left brain. As controllers, leaders imposecertain rules that should be respected. They also control the work of their associates and take measures tocomply with all anticipated rules, which in the case of non-compliance is followed by sanction. Advisoryrole of the leader includes the necessary assistance when they meet with a staff that problem alone can not 3
  • 4. overcome. Then the leader analysis problem and advice workers how to overcome the problem. Veryoften, in practice companies, as saw the creator of the situational leadership model Paul Hersey, workingin large companies at the beginning of leaders career has to be confronted with the workers and supporterswhose performance is unsatisfactory. The value of situational leadership model is that can be concretelyimplemented. Therefore Heseys view that the situational model is a theory, but has particular applicationaimed at companies in different situations in which the leader is fully justified. The leader finally has to bea visionary, while capable, if necessary, close followers of the vision and the workers, or to explain, wherenecessary, require the need for a new vision. His task is to initiate workers and followers in the directionoutlined the vision and explain how the current efforts to bring the fruits of the later period realized thevision of the company.3. COACHING LEADERSHIP STYLEIn his early works, in the sixties, Hersey was fresh out of the production process, formed the theory of leadership and management. Soon after working with his colleagues at the Universityof Ohio, he has found that the theoretical approach must be replaced with a concrete model that isapplicable, and starting from the premise that coaching activities situational leaders can adapt to differentsituations. Of course, these assumptions are not met his understanding of the university circles, especiallyin R. Blake and J. Mouton who have formed a management network as a key decision for achievingproduction through people. [10] Hersey starts from the assumption that the recipes can not be rewrittenwithout the diagnosis and that there are countless situations for the leader, but a leader of the training canbe adapted to the situation in the company.Coaching leadership style is characterized by a clear directive leaders and their unreserved support of theworkers. The leader clearly, decisively and consistently transmit information and advice to workers,while, on the other hand, workers make recommendations to the leader. The necessary support for theleaders vision of the subordinate is provided in the form of training and public praise for good work.During training, leaders need to show his followers how to perform certain tasks and to check whether thefollowers are able to perform these tasks. Leaders who use coaching style has to be: a coach, teacher,counselor, konfronter, sponsor, mentor and visionary. (Table 3) Role Workers Leader Coach Uncertain, with some confidence and Encourage and praise employees while show the presence of nervous when troubleshooting performing assigned tasks Teacher Poor knowledge and lack of Training skills and behavior that experience caused by poor knowledge allows increasing the overall capacity of the given substance and confidence Adviser Exhibit poor performance and in doing Encourage, increase commitment to so they face different problems that the task and improve overall company can be difficult to solve performance Konfronter Exhibit poor work performance after Improving performance through training and counseling discussion and testing, or possible termination of tasks Sponsor Exhibit excellent performance and Opening opportunities for good potential for business improvement in all segments of the development public praise of individuals 4
  • 5. Mentor By focusing on personal development Training, support and guidance to and progress development and prosperity of workers and followers Visionary Occasionally, they lack the Getting closer to the vision of the organizational commitment to the company employees personal goals vision of the company while helping customer satisfaction and increase profits of the company Table 3: Roles in coaching leadership style [9, 112]As coaches, leaders must be willing to train their followers to do their tasks. It is also necessary toencourage and praise them if you successfully complete the job. Their role is to detect during training andcorrect any errors in the work, to put the company back on the effectiveness and efficiency. Leaders mustalso be teachers, providing constant access to their cognitive knowledge, and then in the process ofconstantly training to teach their followers to new methods and forms of behavior. It is vital for thepresence of the communication mix between all stakeholders. Councils are required in order to improvebusiness results, encouraged followers to acquire the necessary skills and overcome, potential, challengesand problems. The leaders and the kind of sponsors as they support their followers in their efforts andreward them for their achievements. As mentors leaders help followers to achieve faster professionalcareer with training that helps the conquest of new knowledge. In the end, explaining the organizationalvision of leaders realize synergy effects with their followers.4. PARTICIPATORY LEADERSHIPThe characteristic of a participative leadership style is employee participation in decision-making processof followers, and their responsibility for decisions. Although they participate in decision-making process,making the major decisions is still on leaders. For the success of this leadership style needs to followers(workers and teams) possess the knowledge and experience to be able to participate in decision-makingprocess. Leaders who use the participative style are: the participants, coaches, coordinators, team builder,consultants, advisors, mentors and visionaries.As participants are members of the team leaders who accept the information and advice from theirfollowers and help them to achieve goals. At the same time they are coaches, dedicated to theadvancement of knowledge and training of its followers in various fields, including management andleadership. As coordinators, leaders actively establishing communication links to all parts of theorganization to get the necessary materials and knowledge to achieve the set goals. It is important that thecommunicative, ready for mutual cooperation and to know the process of negotiating. Leaders also needto be the builder of teams. The organization is a complex organism that seeks to establish harmony inteams to accomplish goals. The leader has to build such a team that will work as a whole, the potential,crisis situations. The leader is kind of a consultant, it is always available to his followers for any type ofinformation, additional knowledge and new technologies to overcome any problems. In such cases theleader is essential to the success of a particular task. The leaders and advisors who constantly encouragetheir workers to achieve maximum results. They may use different methods to support the efforts of itsemployees, including the prizes. Providing continual education leaders and mentors. Mentoring role, witha commitment to a common vision of promoting the idea of personal and collective interests pursued withthe effort of each follower.Participative leadership style brings a myriad of options, features and benefits for the organization, butalso serious disadvantages and pressures, since the imposition of certain rules that simply do not includeas an option. If the leader does not find an equilibrium between the followers of participation in decision 5
  • 6. making and its own paragraph for each decision may lead to haemodynamically unstable in the company,which can be a source of constant latent crisis. Better still does not mean better, and in the process ofattitude towards customer service and product companies can appear on many issues that the organizationcan not respond adequately.Things have to work one by one, following the established procedure, and for resolving any problemstrying to simplify as much as possible on the matter. The participative style of leadership always has moreproblems, because in the process of making more people involved, a final decision still has the characterof leadership. Therefore, the need to set clear priorities, to get rid of all unnecessary and unimportant tothe leader of the other teams and more time for what really matters. Should be directed to the mostimportant challenges is to avoid what is not, or what appears to be the wrong motives. Vision as a cleargoal is to coordinate, which is drawn in the default setting of the total activity. Along the way some thingscan be more or less controlled, and some do not (the global economic crisis, political instability, thevicious circle of poverty, monopolies and oligopolies, socially irresponsible behavior and natural andenvironmental disasters). (Table 4) Role Workers Leader Paricipant Sure and confident in their knowledge, The transfer of responsibilities and experience and position. Able to requirements for achieving the goals accept new responsibilities Coach They have the knowledge and ability Skills training, leadership, to accomplish basic tasks, but they management, entrepreneurship with lack the complex knowledge an interdisciplinary approach Coordinator I can not achieve the necessary The exercise of contact and cooperation with other parts of the coordination with other groups and organization parts of the companys organizational structure Builder of Not functioning well as a team Explanation of teamwork and teams participation with the encouragement and reward for the best individuals Consultant They are not able to solve these Help with finding solutions to problems as appropriate emerging problems that could operate teamwork Adviser They do not have the results of work Support the team through the process in accordance with their knowledge, of encouraging and confirm the skills and experience efforts through various prizes Mentor By focusing on personal development Continual support and guidance and progress through the cognitive through the process of continuous process of acquiring new knowledge training Visionary Occasionally, they lack the Getting closer to the vision of the commitment to organizational vision company employees personal goals while helping customer satisfaction and increase profits of the company Table 4: Roles in participatory leadership style [9, 138] 6
  • 7. In front of every worker should be reduced to a maximum list of obligations, and all that seems irrelevant,should be eliminated immediately. They should be trained to distinguish between the priorities of the lessimportant things, since it implies a delay of obligations that are significant for the entire project. On theboards, and in visible places, to write the most important tasks for a particular organizational unit, and theorder of the day activities are strictly kept. At some initial priorities is building the future, providingtangible benefits for all members in the company, and the increase of capital as the main motive offollowers and associates. Leaders should be in a participatory style of leadership to find a balancebetween work and private, for themselves and for all employees. Since the ultimate responsibility,however, the leader has to set its limits. Also, they do not have to explain, apologize or justify themselvesfor every action. Even if it comes from the closest associates. The leader should accept the fact that theparticipative style of leadership means that he can not and should not have control of everything.Possibility of his followers then they will come to the fore. The leader has to accept the crisis andproblems as a life process when going through a difficult period, knowingly to simplify its obligations, orto allow yourself to his emotions such as sadness, anger, resentment and fear affects on employee morale.5. THE DELEGATING STYLE OF LEADERSHIPThe delegating leadership style is characterized by the transfer of authority and responsibility tosuccessors, employees and teams. Leaders who use this style allow his associates to independentlycomplete set projects and assignments. To make this style was successful leader must be beside itself hasworkers and associates who are educated, with necessary knowledge in the field, great ability, goals, and apart of leadership potential. In this way, leaders are able to delegate tasks such followers, associates andemployees with all necessary powers, procedures and standards, focusing on the future monitoring andevaluation work. Leaders who use the delegating style, must be: delegates, trainers, transporters,coordinators, consultants, advisors, mentors and visionaries. [8, 38] In Table 5 shows the role ofdelegating leadership style. [9, 167] Role Workers Leader Delegator Well-trained with the desire and The transfer of responsibility, ability to accept new challenges authority and decision-making process to the workers and followers Coach They have the knowledge, experience Skills training, leadership, and ability to learn new and management and entrepreneurship complicated concepts and knowledge with the participation of coaches and themselves Transferor They have the ability to work on The transfer of responsibility and complex projects without special empowerment of workers and supervision and control followers Coordinator Working on various projects and tasks Coordinating the various projects and within the same organizational tasks within the same organizational structure structure Consultant Faced with difficult situations and We need additional training to problems provide assistance in overcoming the given situation and problems Adviser They have remarkable results of Find more business challenges for which are continuously improving workers and followers as a method of increasing motivation levels 7
  • 8. Mentor By focusing on personal development Continual support and guidance and progress through the process of continuous training and reward the best individuals Visionary Dedicated to the organizational vision Involvement in decision-making vision of the possibility of approaching the objectives of workers Table 5: Roles in delegating leadership style [9, 167]As delegates, leaders must know when their followers are willing to accept responsibility for the relevantprojects, in addition, they have to delegate projects to trained associates on the right way. Therefore,leaders must have good communication with their employees and teams. Leaders must be the coaches, thatis continually involved in education of their followers in terms of concepts essential to the success of theorganization. Also, leaders in the delegating style, must be efficient transmitters of the duties andresponsibilities to his followers and associates. Followers must be able to independently or in teamssuccessfully complete set tasks. As coordinators, leaders need to be able to coordinate multiple tasks andmultiple teams, so that balance is in equilibrium. In addition, they should coordinate training andeducational seminars that help to improve co-workers in their profession. As advisors, leaders shouldprovide all necessary assistance teams to overcome any issues that go beyond their knowledge andexperience. Mentor leadership role includes providing direction and full support for the education of itsemployees. The leader is a visionary and as such needs to close followers of his vision. [8, 39]6. DISSECTION OF MODELS PAUL HERSEY SITUATIONAL LEADERSHIPDr Paul Hesey, seventies in its Center for Leadership Studies developed the situational leadership modelthat is simple and easily applicable in practice, which was his goal. In its essence the model did not havethe features of the theory, because by Hersey, a theory is something you construct, analyze and understandthe given event, while the model can be removed from the unit, multiplied and used in different situationsin practice. An example is the mass production model developed by Ford in the auto industry.The model is something practical and applicable and can be used around the world to improve leadership.According Shamerhorn in [11] [1], which is one of the most active promoters of Herseys situationalleadership model in the world of universities across the United States, agreed with him that the theory isoriented toward understanding, according to a model, respectively for use or application.We can say, based on their explanations, the model application-oriented, and that is exactly what thesituational leadership. Leadership, in Herseys directive includes a combination of behavior and behaviorsupport as an appropriate willingness of others to perform specific tasks or functions.Model, in practice, faced with large-scale dispersion of the world so that the question was, whether fiftycoaches and educators around the world talking to the audience in such manner as is the base model. Toavoid this situation coaches must be trained and experts in the model explaining.The work of Douglas McGregors, and especially the book "The Human Side of Enterprise" (1960), had aprofound impact on educational practice and the work of Hersey and Shamerhorn a. The book wasidentified in the approach to creating an environment in which employees are motivated by the authority,direction, control, integration and self-control to achieve established goals. McGregor is defined by this 8
  • 9. motivation theory X and theory Y. Theory Y is the practical application of the humanistic school Dr.Abraham Maslows. [13]For Paul Hersey and Johan Shamerhorns very important that students and professors, as well as managersand leaders of the companies are familiar with the work of Douglas McGregor and other authorities in thehistory of leadership and management, because they remain as a permanent value. It is not an importantdate when they announced their works because they have universal value. Hersey and is allegoricallyexpressed by saying: "You can see much further if you are on the shoulders of giants."For Paul Herseys is important the works of Carl Rogerss theory of personality in which he offered a widerange of explanations for the behavior and what constitutes a person. Basically, this theory has evolvedand humanistic character of his work as a clinical psychologist and later developed his theory as atreatment-oriented client, later called the theory directed to person. [14, 184-256] People watched assubjects rather than objects. His view of human behavior is that it is "very reasonable". [15, 194]Moreover, in his opinion "the core of human nature is essentially positive," [15, 73] and on the "reliablebody." [16, 7] This view of mans personality is completely different from the theoretical assumptions ofSigmund Freud, and partly from the work of Carl Gustav Jung, who at one time was a friend and associateof Sigmund Freud.The study of the theory of personality Paul Hersey served in that position to accept Carl Rogersshumanistic conception of personality that has strengths and weaknesses and that is a valuable contributionto the study of persons, free will and his own importance.Paul Hersey in his business education adopted an interdisciplinary concept and recognize the value of"giants" of the past, which have significantly influenced the formation of his situational model ofleadership. He thought that there must be a balance between high tech and high touch. Unfortunately, it isbelieved that today the balance is lost. The technological revolution is important, but the "developmentcan not be achieved in a chair with one or two feet."At a time of economic expansion in the world, especially in the U.S., the sixties, the management ofmultinational companies are concentrating their thoughts so that they felt the need to find some magicsolution for the problem of creating an effective leader. In this context, as opposed to networkmanagement Blake and Mouton [17] which identifies concerns for production and concern for people, ev-Hersey Situational Leadership model extends this approach to behavior dimensions. The leader askshimself the question: "How shall I behave?" The diagnosis of situational leadership is an essential part ofthe skills that are trying to present to the audience. It allows the leader or manager is a professional andefficient, and if you are dealing with medicine, law, or selling products. So, regardless of the activity inwhich he is exercising its leadership role. There can be a pro if you just signed prescriptions. According toHersey in a prescription without a diagnosis of abuse. It is necessary to first do a situational diagnosis thatprovides the necessary funds for substantial positive change.In contrast to Fiedler, the Chemers and Mahars, [18] and Robert House [19, 321-338], Paul Herseybelieves it can help leaders learn to change their behavior so that they not be replaced as leaders. Herseybelieves that leaders can learn to positively influence the different types of situations, that is, throughtraining, people can become more effective leaders in various situations.In its situational model of leadership Hersey, unlike network management opted for four styles ofleadership. It is to be five, eight or eighty-one style, but the question is whether you have the rightusability, and whether it would be so easy. He wants a model that is uncomplicated, memorable anduseful.Many of the theorys and models in management and organizations are too complex. They often look like 9
  • 10. they were designed to communicate with scientists, not for leaders and managers in companies. Modelsmust be designed for managers and leaders as end-users from the very beginning, that are applicable in thereal world. Do something worth if you will help implement and more efficient in managing the company?[1]Paul Hersey believes that it is important for teachers of business experience, particularly in largecompanies working with engineers from the fields of engineering, physics and mathematics. That waythey get enormous technical knowledge. Many companies, unfortunately, lost super, and researchersreceive mediocre leaders and managers. It is therefore necessary to carry out training and developmentbefore srtučnjak the techniques being promoted as a manager or leader. One idea is that the recipient of anew job working part-time before getting the promotion and full-time. Its common in large companiesthat are expert in the technique, which he proved himself again as a manager schedules the tasks in thefield of technology. Then he loses confidence in himself and carries no more a winning spirit.These challenges are unsuccessful and management experience, then, we have people who were no longertechnically productive in jobs that have been previously well demonstrated.One must make a program that will help people to carry out a successful transition from technical tomanagerial work. The initial basis are given in the works of Carl Rogers.Paul Hersey in their practical work is used, together with his associates, the different skills that areessential to managing people. Skills are: analysis, active listening, response, mapping, and thusencouraging the audience to accept everything that is important to set goals, and evaluation of problemsolving. Coaches, with Herseys tasked to set goals, solve problems, evaluate and assess the behavior ofthe listener.7. CASE STUDYWhen you talk about leaders who are remembered for their works, in different socio-historical conditions,in a negative or a positive context, creating a family financial empire and wealth, using his personalcharisma and good interpersonal relationships that encourage the positive identification, it is important todetermine sources of their power, influence and authority and how to motivate followers and to leadmanagement organizations, companies or political parties.Although some historical figures, like Hitler, who had in his mind constantly black-white picture of theworld, classified as typical authoritarian leaders. For that kind of leaders is characteristic that they withhelp of emotional intelligence connect with their followers, who followed them and perform their orders,although in all its content that orders was deeply wrong. This connection is characteristic of the situationalleadership model. Hitler is a classic example of toxic leaders who appealed to the deepest needs offollowers, manipulating with their fears, fears for their personal and family security. Toxic leaders can becharming, but very often can on the perfidious way harassing followers, destroy their will and eventuallythem. This was the case with Hitler.In contrast, an example of a large stock magnate, who always knew when to sell, and when to buy in themarket, John Davison Rockefeller, characterized by a specific character, with significant dose of empathy.In fact, looking at the whole capitalist world, he noted the connection between capital and work givessuccessful business operations, but with respect to interpersonal relationships and ability to enhancemotivation of his followers in performing the tasks. In order for this effort came to the fore, he created theproper working conditions that are acceptable, inspiring and satisfying personal needs of individuals whoworked with him. He knew that a highly motivated individual achieves high performance and highefficiency of his company, which enhances its competitive role in the market. At the beginning, as a very 10
  • 11. pragmatic, respecting the principle of contingency, and realizing his current role, adapted to the demandsof his associates John Maurice Clark, in order to gather enough capital to be able to respond tocompetitive market on challenges opponents. Results of current concession was the foundation forcreating a global-scale company and his financial empire. Further maintenance of the company requiredthe creation of new social points in which came of range of shared leadership in which were involved hisfollowers and on that way created capital for themselves. With emotional intelligence and financialresources, John Rockefeller was able to motivate their followers and keep them firmly in difficult times.Created financial empires surpassed the boldest Rockefellers expectations and he stopped to observe thelimits of his wealth. After the sale of corporate assets went out on barriers to the functioning of thecompany and further development was determined by applying the concept of decentralization in manycompanies, but with full ownership of the Rockefeller family. Inheritors of John Rockefeller created newrelationships and interpretations of the functioning of the company: reorganization of the company,modification of relationship and application of new technologies.The situational leadership model enabled the creation of the position to successfully achieve the objectivesof the company and to align the behavior of individuals and directed towards the desired goal. His son,John Davison Rockefeller, Jr., and grandson, Nelson Aldrich Rockefeller, used the power of position tocontinue the successful development of the company. They are entering new markets, create conditionsfor increasing the financial capital, profits and lower labor costs. Globalization of operations often came towider opportunities for new investment and providing financial resources and manpower at a lower pricein the least developed countries and developing countries.Rockefeller fortune estimated amount of approximately $ 100 billion, which shows that with goodfundamental structure of the companies and adjustment situations in a turbulent environment, survival inthe market is guaranteed. John Junior was performed tasks realizing the importance of diversification ofthe economic environment, which represents the economic conditions in which multinational companiesoperate. It includes economic development, resources, product markets and inflation, interest rates andeconomic growth. Rockefellers make decisions in right time about redesigning the organizationalstructure of their multinationals taking into account the capacity and quality of these changes.Working with real estate enlarge the existing wealth. Realizing the importance of social responsibilitypyramid consisting of philanthropic, ethical, legal and economic responsibility, Rockefellers have becomeone of the largest private donor in the various spheres of social and cultural life, participating in charitableand humanitarian activities for many years. Leadership skills are also presented with Nelson Rockefellerinclusion in the political life of the United States.In addition to Rockefellers, Richard Branson is also a classic representative of Paul Herseys situationalleadership model. Richard Branson, founder of Virgin Group, has created a wealth with based on pre-designed vision and achievable goals. Branson is realizing that the weight of keeping a successfulcompany is based on that that in its essence are norms, values and virtues of the socio-economicenvironment, he created a special and specific organizational culture and climate, respecting the traditions,customs, habits, value systems, beliefs, attitudes, standards and norms of behavior. On that way hemanaged to occupy the first position in the new 21st century.Power of ideas, as well as connective tissue that runs through the time and conditions of business,creativity as a continuous series of the same idea, is fascinating to Richard Branson. When we look backat the 80-and reconstruct the business environment and conditions under which the business worldworked, Branson is something special. Bad schoolboy and disobedient grandson moved a long way fromthe issuance of student newspapers across the mobile to the last time a commercial project in the universe.Billions of pounds of capital poured into Virgin Group business empire of over 400 companies that cameup. Bransons lack of education not bother to him to successfully run his business empire to the top, andalways toward the top. 11
  • 12. Leadership competence of Rockefeller family and Richard Branson, hiding special strength and powerseveral times stronger than them. Determined individualists, always ready for the future, only the truepromoters of innovation, ingenuity, and eccentricity, which enables them to some socio-economiccircumstances are the new leaders and pioneers, to see what others see and believe in what others do notbelieve that can be achieved.Functionally solving problems, sometimes even radically. They devise a new world and winning newtechnology, information, and a new way of living. Productive and useful for humanity, as well as theirdeepest desires. They do not have the partially, but a comprehensive knowledge. Sometimes they haveperiods when they need solitude and contemplation, as was the case with John Rockefeller Junior, that hehad a special room in New York where he spent seven days looking at the causal medieval tapestriesknown as "The Unicorn in Captivity (from the Unicorn Tapestries)". This tapestries, with a white unicornin the fence with chain around neck, beset his mind. The unicorn could escape, but he did not want. Peoplehave killed him, but he eventually resurrects.John Rockefeller Junior was a lonely man, a philanthropist and a charismatic leader, aware of theinjustices of the world. In order to resolve its internal conflicts and has given its unusual nature of the rightexpression must have had a great mission. Something that would be dedicated to his life and which wouldgive his whole self. All its power is directed toward the great goal, so great, that applies to all mankind.Although they marked the modern era and symbolize technical achievements, the leaders of this type,charismatic leaders often fail to find any happiness in touch with modern technology, particularly when itcomes to modern means of communication. This was the case with John Rockefeller Junior. He had avision and it had to be greater than his own interests. His solution is the creation and realization of thatcreativity.7. CONCLUSIONPaul Hersey in a situational model of leadership laid the basis of several important assumptions. He usedthe works of Carl Rogers as a basis for his humanistic approach to leadership model, opposing it withtheories that are watched by a man urges, as Sigmund Freud, who was his theory of the death instinct as adisplay of pure instinct and aggression whose ideas can lead to doubts question the goodness of humannature. However, it should be noted that Freuds instinct is basically and originally facing personal self-destruction, where the self-destruction phenomenon known almost as well as aggression. [20] Carl GustavJung was Freuds psychoanalytic technique, which is based on investigations of the drives replacedanalytical psychology, proceeding to a limited number of "personality types". [21]Paul Hersey consequently accepts the basic humanist Carl Rogers and start creating the basis for theformation of his situational model of leadership which connects theory and practice and interdisciplinaryapproach to leadership.Hersey is a leader in a turbulent environment adapts to acquiring new knowledge, and in contrast to otherauthors in the field of leadership believes that a leader, he is willing to learn and accept the democraticprinciple of leadership is able to lead the company in any situation. It should be added that Hersey is in hisearly works emphasized the importance of social ethics as a paradigm for the successful operation of theorganization. Modern organizations are increasingly visiting social role of attention and responsibilitytowards environment and its stakeholder. There is an irreplaceable role of the leader. [22] Hersey ev-dimensional model and allows the establishment of interpersonal relations between leaders and followers,as opposed to a one-dimensional approach was used in early research and application of leadership, andwhere there are two basic styles autocratic and democratic. [23] Furthermore, modern theories and modelsof leadership are more geared towards academic considerations rather than practical application. 12
  • 13. Therefore, the Herseys insistence on the model, not the simplicity of the model theory and fully justified.Behavioral approach, the concept of shared leadership and virtual leadership are important to the overalltheory of leadership, but not so much for the application of the corporate purposes. [24] Finally, toconclude, Hersey-ev model is applicable to organizations, but it is necessary to quality as a basic conditionfor survival and competitive advantage to companies great importance, connecting with the quality ofproducts or services with customer satisfaction, it is imperative to the success of the company in the 21stcentury. [25]In the sixties of the twentieth century, academic professors and executives in multinational companiesthink they have a "golden fleece" as a solution to all problems of leadership and management in largesystems. The quest for the magic solution and as a holistic set of principles to be used in any operatingsituation was futile. The solution was found in the formation of relatively simple models of leadership thatlinked theory and practice. One of them, perhaps most applicable to their bases and the most leadership,with a prominent humanistic component is Herseys situational leadership model.The situational leadership model is now accepted in many countries in the world, consistently somewhere,and somewhere as a base concept that allows leaders to choose the specific situation in an appropriateform of behavior. It is much better than everyone thought leadership in the normative sense, what we havein the conclusion, already mentioned. ACKNOWLADGEMENT1 The work is part of the research project 41010, funded by the Ministry of Science and Technological Development of SerbiaREFERENCE[1] Schermerhorn J., Situational Leadership®: Conversations with Paul Hersey, Ohio University, USA,2001.[2] Blake, R.R. and Mouton J.S., The Managerial Grid, Gulf, Houston, TX, USA, 1979.[3] Fiedler, F.E., Chemers M. and Mahar L., Improving Leadership Effectiveness: The Leader MatchConcept, Wiley, New York, NY, USA, 1978.[4] Glasser, B. and Strauss A., The Discovery of Grounded Theory, Aldine Publishing CO, Chicago, IL,USA, 1967.[5] Hersey, P., The Situational Leader, Center for Leadership Studies, Escondido, CA, USA, 1984.[6] House, R.J., A Pathgoal Theory of Leader Effectiveness. Administrative Science Quarterly, 6:321338.,1971.[7] McGregor, D., The Human Side of Enterprise, McGraw-Hill, New York, NY, USA, 1960.[8] Stefanović N. i Stefanović Ž., Liderstvo i kvalitet, Mašinski fakultet u Kragujevcu, 2007.[9] Johnson R., TQM : leardership for the quality transformation, Business Informations, Kuala Lumpur,Malaysia, 1997.[10] Blake R. and Mouton J., The managerial grid: key orientations for achieving production throughpeople, The University of Michigan, Gulf Pub. Co., USA, 1964.[11] Schermerhorn J., Introduction to Management, Southern Illinois University, Wiley, USA, 2011.[12] McGregor D., The Human Side of Enterprise, McGraw-Hill, New York,USA, 1960.[13] Maslow A, Motivation and Personality, Harper, New York,USA, 1954.[14] Rogers C., A theory of therapy, personality and interpersonal relationships, as developed in theclient-centered framework. In S. Koch (ed.). Psychology: A study of science, McGraw Hill, New York,USA, 1959.[15] Rogers C., On becoming a person, Houghton Mifflin, Boston, USA, 1961.[16] Rogers C., Carl Rogers on personal power, Delacorte Press, New York, USA, 1977. 13
  • 14. [17] Blake R. and Mouton J., El modelo de cuadro organizacional Grid, Centro Regional de AyudaTécnica, 1973.[18] Fiedler F., Chemers M. and Mahar L., Improving leadership effectiveness: the leader match concept,Wiley, 1976.[19] House R., A Path-Goal Theory of Leader Effectiveness, Administrative Sciences Quarterly, vol. 16,1971.[20] Freud S., Beyond the Pleasure Principle, INTL. PSYCHO-ANALYTICAL, London, Vienna, 1922.,BARTLEBY.COM, New York, 2010.[21] Jung C. and Franz M. L., Man and his symbols, University of Michigan, Doubleday, USA, 1964.[22] Nikezić S. i Matić M., Leadership, management ethical and social responsibility, 4th InternationalConference ,, SCIENCE AND HIGHER EDUCATION IN FUNCTION OF SUSTAINABLEDEVELOPMENT’’, SED 2011, HIGH BUSINESS-TECHNICAL SCHOOL UZICE, Užice, Serbia, 2011.[23] Nikezić S., Primena klasičnih stilova liderstva: jednodimenzionalni pristup, I Simpozijuminovacionih istraživanja, SKAIN, Palata Srbija, Beograd, 2011.[24] Nikezić S., Savremene teorije i modeli liderstva – bihejvioristički prilaz, koncept podeljenog vođstvai virtuelno liderstvo, XIII naučno – stručni skup „SISTEM KVALITETA USLOV ZA USPEŠNOPOSLOVANJE I KONKURENTNOST“, Asocijacija za kvalitet i standardizaciju Srbije, Unijaposlodavaca Srbije i Fakultet za industrijski menadžment, Vrnjačka Banja, Srbija, 2011.[25] Nikezić S. i Jakupović S., Leadership and Quality, as a business paradigm success in theorganization - assumptions joining the EU, I International Scientific Conference on economicdevelopment and standard of living, „ECONOMIC DEVELOPMENT AND STANDARD OF LIVING“,EDASOL 2011, Panevropski Univerzitet Apeiron, Banja Luka, BiH, 2011. 14