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Lm Assg New 1 Apr

  1. 1. BUSM3195 LEADERSHIP AND MANAGEMENT INTRODUCTION Procter and Gamble Co. (P&G) is an American multinational corporation (MNC) where its businesses focus on fast-moving consumer goods. Durk Jager, the former chief executive officer (CEO) of P&G, reorganised the company to meet the growing demand of globalisation. However, his drastic plans proved futile as thousands of followers were confused and demoralised by his move. As a result, P&G’s stock went into tailspin after reducing two earning projections (Tichy & Bennis 2007). Therefore, in 2000, Jager was eventually replaced by Alan George Lafley, who later transformed the company to its current state. In 2007, P&G was ranked as the 8th largest corporation in the world by market capitalisation, the 14th largest company by profit in the States and also the top ten in Fortune’s most admired companies list. Apple Inc. (Apple), a relatively younger organisation, is also an American MNC. However, it deals with consumer electronics and software product instead. Apple was in a dire state before Steven Paul Jobs, aka Steve Jobs, took the post of CEO. Under his charge, several popular products were created and some of them include the Macintosh computers, iPod, iPhone and Macbook etc. In 2008, Apple has achieved worldwide annual sales of US$32.48 billion in its fiscal year ending September 2008 and Fortune magazine had also named Apple as the most admired company in the States. The successful revival of these two companies can be attributed to the effective leadership of their CEOs, Alan George Lafley and Steve Jobs. They have received worldwide praises about their leaderships for amplifying their market price and leading their respective companies from a deteriorating empire to where it is now. Hence, the characteristics of each leader, their transformational leadership, and how they developed teamwork within their organisation and motivate their employees are significant to leadership effectiveness. APPROACH Firstly, characteristics of leaders can be classified into three categories namely, personality traits, leadership motives and cognitive factors (Dubrin, Dalglish & Miller
  2. 2. BUSM3195 LEADERSHIP AND MANAGEMENT 2006). As recent studies had also recognised that these characteristics will facilitate and determine the effectiveness of leaderships, and it is the integration of these personal characteristics that cultivate a consistent pattern of leadership behaviours (Zaccaro, Kemp & Bader 2004). Therefore, the characteristics that attributed to their successful realms are relevant to their leaderhip effectiveness. Secondly, transformational leaders employ a visionary and creative style, not only to inspire the employees to be creative and innovative, but also to broaden their interest in their work (Nielsen et al. 2008). They are also able to devote significant energy to lead and respect the gifts and abilities of their workers (Bryant 2003). Furthermore, they focus on what they accomplish rather than their personal characteristics and relationships with followers, and it is especially important as leaders may have to lead people from across the world (Dubrin, Dalglish & Miller 2006). Moreover, many organisations are facing turbulent and intense competition. Thus, their transformational leadership, to manage the chaos and restructure the organisation, are vital to the survival of the organisations in the long run. Lastly, motivation is a hidden force to induce someone to do something that is desired through various approaches (Arnold 1988). Hence, it is essential to motivate employees through the right approach in order to achieve organisational goals (McShane & Travaglione 2007). Developing teamwork is another important leadership role that is said to differentiate successful from unsuccessful leaders as it will influence the followers to work effectively in a cohesive manner (Locke et al. 1999). Hence, their methods of motivation and fostering teamwork would be relevant in determining their leadership effectiveness too. ALAN GEORGE LAFLEY Traits Lafley has shown lots of passion for his work and the people in the organisation. For instance, even when it is Mother’s Day, he would meet the company’s head of human resource, Richard Antoine, to go through reports on the performance of the company’s senior executives every Sunday evening (Sosik et al. 2004). The fact that he could even
  3. 3. BUSM3195 LEADERSHIP AND MANAGEMENT sacrifice the time with his mother on Mother’s Day has shown his determination and passion to preserve the company’s culture of valuing talents. Additionally, Lafley has demonstrated his farsightedness by acquiring SpinBrush and Clairol in 2001, shortly after taking over the post of CEO (Berner 2002). From the acquisitions of these two companies, he actually strengthened the company core strengths in hair and oral care, and also increased its market share and maintaining a balance between sales and profit growth where analysts had also expected P&G’s operating earnings to increase by 9% (Berner 2002). Furthermore, Lafley is also soft-spoken, friendly and warm in nature. He displayed a high level of emotional intelligence, especially his self regulation, by not screaming and yelling at his subordinates because he believes that the messenger is just as critical as the message (Berner 2003). Besides that, he also has the ability to build enduring relationships as he relied a great deal on relationships he had built over the years to transform P&G’s culture (George 2006). For example, when a student asked him a dull- witted question, he showed patience and willingness to listen in order to understand the question by returning to the student repeatedly, resulting in better relationships between him and his followers (Krauss 2008). Lastly, Lafley also has insight into people and situations when he by-passed dozens of potential general manager and appoint Henretta to head the North America baby-care unit (Tichy & Bennis 2007). Although there was almost a rebellion against his decision, he upheld his decision and justified why Henretta was better than the other candidates (Tichy & Bennis 2007). Despite all these, Henretta’s success has proven that Lafley has chosen the right person for the post (Tichy & Bennis 2007). Transformational Leadership When Lafley took over as CEO, he realised the critical problem he was facing was not about turning P&G from the losses of US$85 billion in market capitalisation to profitability. Instead, the crisis confronting P&G was the loss of confidence in the leadership as the organisation was in a state of chaos. Headquarters and business units
  4. 4. BUSM3195 LEADERSHIP AND MANAGEMENT globally were blaming each other for the problems created and employees were calling for heads to roll (Tichy & Bennis 2007). Thereafter, Lafley flaunted his transformational leadership by helping his followers understand that the organisation needs to undergo major changes in order to survive and eventually managed to transform the culture to a nimbler and more open one (Woolley 2005). He also created awareness and got them to face up to the reality that it is critical for the organisation to change so that it will be more profitable, resulting in lesser retrenchments (Tichy & Bennis 2007). For instance, only ten days in office, he immediately flew to Europe to listen to the complaints and address their issues in order to help them understand and be aware of the changes that were ahead of them (Dyer, Dalzell & Olegario 2004). During such meetings, he shared his core beliefs on the ten things he believed about the fundamentals of business (Dyer, Dalzell & Olegario 2004). This helped his followers understand the need for change. As a result, it rallied everyone to work more cohesively in order to achieve organisational goals. The corporate culture he advocated was revolved around innovation and creativity (Hamstra 2008). He made it explicit that innovation in every facet of operations, from inventing to distributing, is crucial to keep the company in existence (Berner 2008). Subsequently, in 2001, Lafley allowed innovations to flow freely across the entire organisation and encouraged outsourcing for innovators to make up at least fifty percent of its innovations (Skarzynski & Gibson 2008). As such, the organisation has been able to introduce numerous new products to the market that exemplify the innovation fortitude of P&G (Skarzynski & Gibson 2008). Therefore, it is evident that when Lafley mandated about the innovation imperative, he is intensely transforming the organisation (Skarzynski & Gibson 2008). Furthermore, Lafley was visionary and was not afraid to make changes. Hence, he is undeniably a transformational leader who was placed in a situation to change and make things happen. Motivation and Developing Teamwork
  5. 5. BUSM3195 LEADERSHIP AND MANAGEMENT Lafley motivates his employees by empowering the management team to make business strategic decisions by just providing them the directions. This is similar to the motivator factors advocated by Herzberg (cited in Sanford & Taylor 2006). On one occasion, he even shook the hands of a student working in the company and told him that the work he is doing is vital to the future of the organisation (George 2006). Another example of his recognition of efforts put in by the followers is that he heaps praises on them, including his division president, brand managers and other employees (Krauss 2008). In addition to that, Lafley had used informal techniques to foster the teamwork of his followers. For example, he had worked very hard to change the company’s new strategy to be customer driven innovation (Saporito 2008). Through reiterating the new strategy, the team will be able to develop a norm that innovation will become a routine for everyone (Berner 2008). He also encourages his followers to compete with rivals so that they will collaborate as a team to win the rivalry as a whole (Lafley & Charan 2008). On another occasion, before the company started outsourcing, he adopted the consensus leadership style by having various teams to give inputs and vigorously debate on the issue (Lafley & Charan 2008). In the course of contributing inputs to significant decisions, members will feel that they are more valuable to the team and resulting in improved team effectiveness (Dubrin, Dalglish & Miller 2006). STEVE JOBS Traits Jobs is a leader who is capable of influencing them to have strong desire for work as he possesses a high degree of passion for his work. Even though he always yelled at his followers, they appreciated his strong passion where he always spend long hours at work (Kahney 2008). Additionally, through his passion for work, he was able to capture the spirit of his followers and work cohesively towards a common goal (Young & Simon 2005). Furthermore, Jobs is a leader with low emotional intelligence as he does not care about his followers' feelings as he strives for perfection incessantly and will hurl verbal attacks at those who failed to meet his demands (Lee 1994). Additionally, his reputation in the
  6. 6. BUSM3195 LEADERSHIP AND MANAGEMENT organisation further enhanced his deficiency in emotional intelligence as he screams at his followers frequently and randomly fired those unlucky ones (Young & Simon 2005). Additionally, Jobs had displayed his farsightedness when he reduced the product lines and cut the wholesale cost with a year in office (Morris & Levinstein 2008). Even though there were vast numbers of mobile phone models catered to suit the needs of the dynamic consumer market, he stood on his solid grounds to launch the iPhone, which generated tons of profits for the company (Burrows 2009). As a result, he not only prevented Apple from further losses, he also turned Apple into a profitable business (Kahney 2008). In another instance, he confidently opposed to the major accordance to launch the iMac without a floppy drive and it proves that the floppy drive technology has diminished (Kahney 2008). Lastly, Jobs has the insights into his people and situation as he makes careful assessment of the strengths and weaknesses of each staff (Dubrin, Dalglish & Miller 2006). He kept his core team fairly small particularly the outstanding ‘A’ team of selected executives, programmers and designers. (Kahney 2008). Throughout his stint at Apple, he kept the talents to assist him with key assignments, such as the Mac project, and used different leadership styles to influence them accordingly (Kahney 2008). Transformational Leadership When Jobs took over the position of CEO, due to the incompetency of the previous CEO, the main crisis facing Apple was that there were too many non-profitable products causing the organisation to be on the verge of bankruptcy (Burrows 2009). Thus, Jobs held individual meetings with all product groups. During these meetings, they had to convince him that the product was profitable or else they will be terminated and he managed to make them understand the criticality of a change in order for the organisation to survive (Kahney 2008). As a result, he took a broad and long term perspective to sell those non-profitable products. His intention was to focus on the core products to increase the profitability of the organisation and expertise of his followers so that he can obtain the results he aimed to achieve (Baldoni 2006). As such, he managed strengthen the brand name and
  7. 7. BUSM3195 LEADERSHIP AND MANAGEMENT reincarnate it to thrive in a disruptive age (Morris & Levinstein 2008). Another of his long term vision for Apple is to convert Apple into a digital hub where digital entertainments devices could be connected to this technology centrepiece (Kahney 2008). Furthermore, he managed to convince all the employees that the organisation can develop new businesses like cell phones despite the intense competition in the market (Burrows 2009). Subsequently, he also managed to convince them that they were in a distinctive position where they will change the face of computing that no one had created before (Kahney 2008). As a result, they will be more willing to accept responsibility for what they have been doing (Baldoni 2006). Hence, ever since the introduction of iPod, his followers are very much self-fulfilled as Apple has dominated the consumer electronics market with the complements of iPhone and Mac products (Lyons 2008). Therefore, Jobs has evidently transformed his followers to widen their interest in their job by helping them to realise the self-fulfilment they will achieve. Moreover, his vision was clearly communicated to his followers who helped to transform Apple into a digital hub. Hence, he is definitely a transformational leader who managed to revive Apple to thrive in the competitive market. Motivation and Developing Teamwork The way Jobs motivate his followers is comparable to Herzberg’s motivators as he believes in giving capable followers the reins and chances to make good decisions (Morris & Levinstein 2008). For instance, he recognised Cook’s ability and entrust the company’s daily operations in his hands where he will only make the strategic decisions (Lashinsky & Siklos 2009). He also respects Cook as the company has already coalesced around him because he did almost nothing that would make people disrespect him (Lashinsky & Siklos 2009). On another occasion, Jobs praised Ratzlaff for creating an exciting design for iMac which gave him a sense of achievement because Jobs was a person with very high expectations (Kahney 2008). Additionally, Jobs foster the teamwork of his followers by one of the informal techniques, demanding performance standards and providing directions. For instance, during one design meeting, he took a telephone book and threw it on the table demanding
  8. 8. BUSM3195 LEADERSHIP AND MANAGEMENT them to build a computer of that size, where the size of the smallest computer back then was twice as big as a telephone book (Kahney 2008). As a result, it actually serves as a wakeup call to his followers stipulating them to work cohesively in order to satisfy his demand (Kahney 2008). On another occasion, he just gave directions to his team that he was counting on them to deliver a software demo disk (Kahney 2008). They can only went back to their cubicles immediately and start working as a team in order to deliver to their demanding boss as they did not even had the chance to rebut (Kahney 2008). Therefore, he is said to give the team lots of challenging goals which eventually brought the team together cohesively. COMPARISON A comparison which provides your evaluation of similarities and differences between the chosen leaders, with regard to the relevant theory (700 words). Similarities So what if they are the same? What does it implies? One of the similarities that both leaders have is their passion for work since taking over the leadership. Lafley spent numerous off days to discuss how he could best manage his staffs and Jobs would spend long hours at work in order to get the things right. Hence, it suggests that if a leader has passion for his job, he should be able to bring about a successful organisation. Additionally, shortly after taking over the position of CEO, they also have the mental ability to understand the long term implications of their actions as they made critical decisions which helped to fortify the organisation's reserves in the long run (Dubrin, Dalglish & Miller 2006). Thus, farsightedness is thought to be an essential characteristic of an effective leader because it can help to develop vision and corporate strategy efficiently (Dubrin, Dalglish & Miller 2006). Furthermore, they were also able to assign the right people for appropriate jobs. Lafley’s decision to put Henretta in a key assignment has proven a lot of other managers wrong as
  9. 9. BUSM3195 LEADERSHIP AND MANAGEMENT she is able to assist him in running the baby care unit successfully. Jobs is also a leader who makes careful assessment of his followers before he appoint key assignments to them. Hence, insight into people and situation is another essential characteristics of an effective leader. Moreover, being able to transform organisations from a low performance to a relatively high performance one, they are both considered transformational leaders (Dubrin, Dalglish & Miller 2006). Even when their followers were not ready to step out of their comfort zone, the two leaders had managed to help their followers understand the critical need for change in order for the companies to survive in the long run, thus keeping their jobs. Therefore, transformational leadership is vital to organisation so as to produce high performance followers. Lastly, the two leaders similarly believed that if they desire positive attitudes and job satisfactions from their followers, they will have to motivate them using Herzberg's motivators, such as respect, recognition and sense of achievement (Herzberg 2003). Lafley is a leader who recognises the efforts of almost everyone in the company as he constantly heap praises on his followers. On the other hand, although Jobs seldom praises his followers, he provided them with sense of achievement in order to motivate them to produce better results. Therefore, it may be simplistic to suggest that the two leaders used different ways to motivate their followers as the fundamental approach which led to positive attitudes and job satisfaction is still the same (Herzberg 2003). Differences So what if they are different? What does it implies? However, the difference in emotional intelligence distinguished the two leaders. Lafley is a leader who has self regulation and social skill which allows him to be able to connect with his followers and understand them, resulting in better relationship between him and his followers (Dubrin, Dalglish & Miller 2006). Although he seems to be quite people- oriented, he is very decisive when it comes to work (Berner 2003). On the contrary, Jobs is a leader who does not empathise anyone and does not socialise with his counterparts.
  10. 10. BUSM3195 LEADERSHIP AND MANAGEMENT Lafley – High Emotional intelligence, self regulation, social skill. Foster teamwork by developing a norm of teamwork Job – Low Emotional intelligence, lack of empathy and social skill. Foster teamwork by establishing urgency, demanding performance standards and direction setting LAFLEY JOBS Passion Passion TASK Emotional intelligence Emotional intelligence ORIENTED Self regulation Lack of empathy TRAITS Social skill Lack of social skill COGNITIVE Farsightedness Farsightedness FACTORS Insight into people and situation Insight into people and situation LEADERSHIP Transformational Transformational STYLE MOTIVATION Motivator Motivator Developing a norm of Demand performance standards TEAMWORK teamwork and direction setting LEARNING SUMMARY & CONCLUSION An approximately 700 words summary which gives an overview of your key learnings, focusing on the three topics. (Which leader is more effective and why?) (Traits) From the above, it can be established that a leader’s characteristics have an influential impact on the organisation and the different characteristics displayed by Lafley and Jobs proved that characteristics are not the same with every leader, but is unique to the individual. Although possessing the correct set of characteristics does not guarantee successful leadership, but these are considered vital preconditions that an effective leader must
  11. 11. BUSM3195 LEADERSHIP AND MANAGEMENT possess (Kirkpatrick & Locke 1991, cited in Pierce & Newstrom 2006). Therefore, in contemporary organisations, the traits approach is definitely still very much appreciated because when the situation becomes more complex, it will play a more significant role in anticipating successful leaders (Zaccaro, Kemp & Bader 2004). (Leadership Style) Transformational leadership is useful in organisations in crisis. This was demonstrated in the case of P&G and Apple. (Motivation) Using recognition and praise to motivate others is deemed as a ‘direct application of positive reinforcement’ and they are effective because the desire for recognition is a natural human need, and employees want to know that their work is beneficial to somebody (Dubrin, Dalglish & Miller 2006). Therefore, these will result in a higher sense of achievement by his followers and thus producing better results as they will feel highly motivated. Leadership effectiveness model In a nutshell, the characteristics of a leader do not guarantee his success, but it is a prerequisite of an emergent leader. In addition, if a leader is transformational, able to motivate his followers in the right way and foster them to work cohesively, he will definitely be an effective leader.
  12. 12. BUSM3195 LEADERSHIP AND MANAGEMENT REFERENCE LIST Arnold, VD 1988, ‘Motivation: turning theory into practice’, IM, January, pp. 21-22. Baldoni, J 2006, How great leaders get great results, McGraw-Hill, New York. Berner, R 2002, ‘Why P&G’s smile is so bright’, Business Week, August, no. 3795, pp. 58-60. Berner, R 2003, ‘P&G: new and improved’, Business Week, July, viewed 9th March 2009, < http://www.businessweek.com/magazine/content/03_27/b3840001_mz001.htm> Berner, R 2008, ‘How P&G pampers new thinking; CEO Lafley lays out principle of innovation that turned around his company and can fire growth anywhere’, Business Week, April, no. 4079, p. 73. Bryant, SE 2003, ‘The role of transformational and transactional leadership in creating, sharing and exploring organizational knowledge’, The Journal of Leadership and Organizational Studies, vol. 9, no. 4, pp. 32-44. Burrows, P 2009, ‘Apple without its core?’, BusinessWeek, January, no. 4117, p. 31. /Deutschman, A 2000, The second coming of Steve Jobs, Broadway Books, New York. Dubrin, A, Dalglish, C & Miller, P 2006, Leadership, 2nd edn, John Wiley & Sons, Australia. Dyer, D, Dalzell, F & Olegario, R 2004, Rising tide: lessons from 165 years of brand building at Procter & Gamble, Harvard Business School Press, Massachusetts. George, B 2006, ‘Truly authentic leadership’, U.S. News & World Report, October, vol. 141, no. 16, pp. 52-54. Hamstra, M 2008, ‘A. G. Lafley’, Supermarket News, December, vol. 56, no. 49, viewed 2nd March 2009, Business Source Complete.
  13. 13. BUSM3195 LEADERSHIP AND MANAGEMENT Herzberg, F 2003, ‘One more time: how do you motivate employees?’, Harvard Business Review, January, pp. 87-96. /Judge, TA, Heller, D & Mount, MK 2002, 'Five-factor model of personality and job satisfaction: a meta-analysis', Journal of Applied Psychology, vol. 87, pp. 530-541. Kahney, L 2008, Inside Steve's brain, Penguin Group, USA. Krauss, M 2008, ‘The millennial CEO is a game-changer’, Marketing News, August, vol. 42, no. 13, p. 15. Lafley, AG & Charan, R 2008, ‘The consumer is boss’, Fortune, March, vol. 157, no. 5, pp.121-126. Lashinsky, A & Siklos, R 2009, ‘Steve’s leave’, Fortune, February, vol. 159, no. 2, pp. 96-102. Lee, A 1994, Steve Paul Jobs, viewed 27th March 2009, <http://ei.cs.vt.edu/~history/Jobs.html>. Locke, EA & Associates 1999, The essence of leadership: the four keys to leading successfully, Lexington Books, Oxford. Lyons, D 2008, ‘Steve Jobs’, Newsweek, December, vol. 153, no. 1, p. 61. McShane, S & Travaglione, T 2007, Organizational behaviour: on the pacific rim, 2nd edn, McGraw-Hill, NSW. Morris, B & Levinstein, JL 2008, ‘What makes Apple golden’, Fortune International (Europe), March, vol. 157, no. 5, pp. 68-74. Nielsen, K, Randall, R, Yarker, J & Brenner, S 2008, 'The effects of transformational leadership on followers' perceived work characteristics and psychological well-being: a longitudinal study', Work & Stress, vol. 22, no.1, p. 16-32. /Pierce, JL & Newstrom, JW 2006, Leaders and the leadership process, McGraw Hill, New York.
  14. 14. BUSM3195 LEADERSHIP AND MANAGEMENT Sanford, LS & Taylor, D 2006, Let go to grow: escaping the commodity trap, Prentice Hall, New Jersey. Saporito, B 2008, ‘Making P&G new and improved’, Time, April, vol. 171, no. 17, p. 5. Skarzynski, P & Gibson, R 2008, Innovation to the core: a blueprint for transforming the way your company innovates, Harvard Business School Publishing, Boston. Sosik, JJ, Jung, DI, Berson, Y, Dionne, SD & Jaussi, KS 2004, The dream weavers: strategy-focused leadership in technology-driven organizations, Information Age Publishing, Charlotte. Tichy, NM & Bennis, WG 2007, Judgement: how winning leaders make great calls, Portfolio, New York. Woolley, S 2005, ‘Best leaders’, Business Week, December, no. 3964, pp. 60-72. Young, JS & Simon, WL 2005, Icon Steve Jobs: the greatest second act in the history of business, John Wiley & Sons, New Jersey. Zaccaro, SJ, Kemp, C & Bader, P 2004, ‘Leader traits and attributes’, in J Antonakis, A Cianciolo & R Sternberg (eds) 2004, The nature of leadership, Sage Publication, California, pp. 101-124.
  15. 15. BUSM3195 LEADERSHIP AND MANAGEMENT Not Used Already, a reported 20 percent of new product initiatives were externally generated, twice of what P&G was reporting when he took office in late 2000 (Sanford & Taylor 2006). Lafley capped all this in October with the $57 billion acquisition of Gillette. Lafley, 58 -- P&G now gets 35% of its product ideas from outside companies or inventors. It has also outflanked rivals in design and innovation: The company had 5 of the top 10 best-selling consumer-product launches in 2005, says market researcher Information Resources (Woolley 2005). Lafley transformed a legendary but ossifying company by organizing around innovation (Saporito 2008). P&G is not just outsourcing—they are building core capabilities. They are expanding their beauty care brands with the purchase of Clairol and Wella and leveraging their brand and distribution capabilities by expanding their value web to include over-the- counter healthcare products like Prilosec. To effect this sweeping change, A.G. Lafley established and communicated a vision. He clearly stated the governance rules and insisted they focus only on what P&G does best and nothing more. They are outsourcing everything else and building capabilities through value web expansion (Sanford & Taylor 2006). Traits of leaders can be classified into three categories namely, personality traits, leadership motives and cognitive factors (Dubrin, Dalglish & Miller 2006). Personality traits are a set of mannerisms that is inborn (Dubrin, Dalglish & Miller 2006). Although possessing the correct set of traits does not guarantee successful leadership, but these traits are considered vital preconditions that an effective leader must possess (Kirkpatrick & Locke 1991, cited in Pierce & Newstrom 2006). Leadership motives are the desires that a leader has to motivate him to lead, hence a leader without leadership motives have been frequently identified as the less effective ones (Dubrin, Dalglish & Miller 2006). Cognitive factors are typically mental abilities. With these abilities, leaders can easily inspire followers, solve problems creatively and eventually bring about positive organisation changes, thus effective leaders need to be mentally sharp (Dubrin, Dalglish & Miller 2006).
  16. 16. BUSM3195 LEADERSHIP AND MANAGEMENT Jobs can be considered an extrovert because he enjoys human interactions, likes to meet new people and spend time in social gatherings (Judge, Heller & Mount 2002). He is always willing to accept interviews about his creation of Apple and post for front cover photographs, and thus built a strong relationship with the world media (Kahney 2008). General personality traits are observable within and outside the context of work (Dubrin, Dalglish & Miller 2006). These traits contribute to satisfaction and success in personal life likewise in the working environment. Self-confidence indicates whether an individual is self-assured in his judgements, decision making, ideas and capabilities (Lussier & Achua 2007). It includes a sense of self-esteem and self-assurance and the belief that one can make a difference. Lafley would exercise his referent power when required. For example, he by-passed dozens of potential general manager and appoint Henretta to head the North America baby-care unit. There was almost a rebellion as she had no experience in that area. However, Lafley thought that she is a good leader with new. Lafley made a mistake by not consulting his management beforehand. Instead of backtracking, he called for a meeting for them to justify why their candidates would be better than Henretta perspective. At the end if the meeting, he maintained his decision. To ensure that Hebretta succeeds, he coached her and supported her, like replacing the people that she deemed not suitable (Tichy & Bennis, 2007).