Leadership Profiles, Styles & Achievements

GSBS6070: PRINCIPLES OF LEADERSHIP

Leadership Profiles, Styles and Achievements

James HuntJune, 2013

Leadership Images – Previous Slide

1. Marissa Mayer (CEO of Yahoo)

2. Richard Branson (Founder and Group Chairman at Virgin)

3. Jill Barad (former CEO of Mattel)

4. Rupert Murdoch (News Limited)

5. Meg Whitman (former CEO of Ebay; current CEO of HP)

6. Steve Jobs (co-founder and former CEO of Apple)

7. Sheryl Sandberg (COO of Facebook)

8. Andrea Jung (CEO of Avon)

Last Week’s Introductory Lecture: A Review

1. Various definitions of leadership: to inspire confidence, to influence others, to exercise power, strategic positioning.

2. Leadership versus management: leadership is more intuitive, both management and leadership can produce change in organisations.

3. Does leadership make a difference? Under what conditions does leadership have an impact, or the greatest impact?

4. Substitutes for leadership: professional norms, intrinsic motivation, expertise.

5. A framework for understanding leadership.

6. Brainstorming exercise: characteristics and qualities necessary for effective leadership

A Framework for Understanding Leadership

Source: Andrew J. DuBrin (2010), Principles of Leadership, South-Western Cengage Learning

Reading: Keith Grint (2005), Leadership: Limits and Possibilities, Palgrave MacMillan

What is Leadership: person, result, position or process ?

Person

Position

Process Results

Traits, qualities, personal characteristics

Formal or informal role - perception and execution

Leadership style, behaviours, belief system, methods of execution

Outcomes, achievements

Leader-member exchange dynamic

Key Characteristics of Successful Executives:

1. Strong leadership skills2. An action orientation3. A vision of where the firm is going 4. Excellent communication skills5. Self-confidence6. The ability to take risks7. The ability to motivate8. The ability to generate loyalty9. High integrity10. Team-building skills11. Operations experience12. International Experience

Source: Rowan, R. (1986) “America’s Most Wanted Managers”, Fortune Magazine, February 3rd, pp. 18-25.

A survey of executive recruiters in the United States (1986) found that the most sought-after managers had most, if not all of the following characteristics:

Major Factors Influencing the Careers of Senior Executives:

Influencing factor: Private sector ranking Public Sector ranking

1. Having a need to achieve results 1 12. Ability to work with a wide variety of people 2 33. Ability to negotiate and influence 3 24. Early overall responsibility 4 45. Desire to seek new opportunities 5 96. Breadth of experience prior to age 35 6 57. Ability to change managerial style 7 78. Leadership experience early in career 8 149. Stretched by immediate superiors 9 810. Willingness to take risks 10 1111. Having more ideas than colleagues 11 612. Visible to top management before age 30 12 1313. Family support 13 1514. Sound technical training 14 1215. Manager early in career as a role mode 15 1016. Having formal management training 16 1717. Overseas management or work experience 17 1618. Experience of leadership in armed forces 18 18

.

Source: Mukhi, S. (1982), “Leadership Paths & Profiles”, Human Resources Management Australia, Volume 20, No.3, pp. 22-26.

Key Characteristics of Successful Executives Today:

1. Strategic leadership capabilities2. Energy and motivational drive3. High self-confidence 4. Entrepreneurial vision5. The capacity to communicate effectively6. The capacity to negotiate effectively7. The ability to persuade and influence others8. The ability to shape organisational culture9. Financial acumen10. Operational and industry-based experience

A joint research initiative in 2010 by a global consultancy firm and a prominent business magazine found that in transnational corporations, the following capabilities were considered most necessary by senior executives:

Indra Nooyi, Chairman & CEO, Pepsi.

Ursula Burns, Xerox CEO, appointed June 2009

Leadership Profiles:Lewin , Lippit & White: Three Leadership Orientations (1939)

Lewin, K., Lippit, R. & White, R. (1939) “Patterns of Aggressive Behaviour in Experimentally Created Social Climates” Journal of Sociology, Vol. 10: 271-299.

Laissez-faire Democratic

Autocratic

Freedom

Order

Leadership Profiles:Tannenbaum and Schmidt’s Leadership Continuum

Autocratic StyleDemocratic Style

1. Leader makes decision and announces it to followers individually or in a group without discussing it.

2. Leader makes decision and sells it to followers through a presentation of why it is a good idea.

3. Leader presents ideas and invites follower questions.

4. Leader presents tentative decision subject to change.

5. Leader presents problem, gets suggested solutions, and makes the decision.

6. Leader defines limits and asks the followers to make a decision.

7. Leader permits followers to make ongoing decisions within defined limits.

Source: Tannenbaum, R. & Schmidt, W.H. (1958), “How to Chose a Leadership Pattern”, Harvard Business Review, Vol. 36, No.2, March-April: 95-101.

The Leadership Orientation Paradigm

INSPIRATIONAL (Visionary)

LAISSEZ-FAIRE

AUTOCRATIC (Authoritarian)

DEMOCRATIC (Participative)

Four Key Leadership Orientations

The Leadership Orientation Paradigm:The Autocratic-Democratic Continuum



•Aggressive

•Competitive

•Dominant

•Forceful

•Logical

•Cautious

•Conventional

•Careful

•Collaborative

•Facilitative

•Mediating

•Process-oriented

•Stable

•Understanding

•Responsive

•Considerate

The Leadership Orientation Paradigm:The Autocratic-Democratic Continuum



High Uncertainty Avoidance

Lower Tolerance of Ambiguity

Low Uncertainty Avoidance

Higher Tolerance of Ambiguity

•Aggressive

•Competitive

•Dominant

•Forceful

•Logical

•Cautious

•Conventional

•Careful

•Collaborative

•Facilitative

•Mediating

•Process-oriented

•Stable

•Understanding

•Responsive

•Considerate

The Leadership Orientation Paradigm: Vertical Axis Continuum


LAISSEZ-FAIRE



High Achievement Orientation

Low Achievement Orientation

•Industrious

•Energetic

•Convincing

•Inspiring

•Individualistic

•Persistent

•Daring

•Spontaneous

•Abdicative

•Avoidant

•Neglecting

•Unassertive

•Permissive

•Tolerant

•Passive

•Delegating

The Leadership Orientation Paradigm © James Hunt, University of Newcastle, 2010


LAISSEZ-FAIRE







•Industrious

•Energetic

•Convincing

•Inspiring

•Individualistic

•Persistent

•Daring

•Spontaneous

•Abdicative

•Avoidant

•Neglecting

•Unassertive

•Permissive

•Tolerant

•Passive

•Delegating

•Aggressive

•Competitive

•Dominant

•Forceful

•Logical

•Cautious

•Conventional

•Careful

•Collaborative

•Facilitative

•Mediating

•Process-oriented

•Stable

•Understanding

•Responsive

•Considerate

Reference: Hunt, J. (2010) ‘Leadership Style Orientations of Senior Executives in Australia’, Journal of the American Academy of Business, Cambridge, Vol. 16, No. 1: 207-217.

Profiling Leaders: The Leadership Orientation Paradigm


LAISSEZ-FAIRE







•Jack Welch

•Lee Iacocca

• Richard Branson

• Brenda Barnes

• ??

• ??

• ??

• ??

• Rupert Murdoch

• Bill Gates

• ??

• ??

• Ricardo Semler

• Indra Nooyi

• ??

• ??

Managers and Entrepreneurs: Who Makes a Better Leader?

The Managerial Profile:

1. Managers normally operate within relatively clearly defined structures.2. Managers are role-fillers (corporate determinism).3. Managers are characteristically cautious and prone to risk-aversion.4. They tend to operate most effectively when given time to plan.5. They are rewarded for satisfactory performance

Punitive constraints inhibit under/over performance.

Effective Managers:

1. Have good supervisory skills.2. Are able to coordinate a wide range of activities.3. Are able to delegate without relinquishing control.4. Are able to utilise interpersonal skills effectively.

Managers and Entrepreneurs: Who Makes a Better Leader?

The Entrepreneurial Profile:

1. Entrepreneurs tend to operate in an unstructured environment.2. They assume the role of their own choice and of their own design.3. They are moderate risk takers and typically high achievers..4. They tend to reap rewards most often only for high-level performance.

Entrepreneurial Shortcomings:

1. They often have a strong reluctance to relinquish control.2. They can be quite poor at planning.3. They frequently find it extremely difficult to delegate.4. They are typically poor administrators.5. Their cognitive style of inner-dependence leads entrepreneurs to tend not to delegate

Naomi Simson, founder and Director of RedBalloon, a leading Australian-based online gift retailer

Four Systems of Action in Modern Organisations

• The terms ‘leadership’ and ‘management’ are often used interchangeably with other related but nevertheless distinct terms.• It is useful to explore these differences in order to understand the subtle and obvious distinctions implied in each.

The four terms may be viewed along a continuum which shows the degree of structure inherent in the decision-making process adopted by each of these.

ENTREPRENEURSHIP

Risk-taking

Search for opportunities

Disregard for formal systems or rules

Poor delegation skills

LEADERSHIP

Vision

Good communication skills

Good motivators

Encourage team participation

Gain cooperation

MANAGEMENT

Technical skills

Interpersonal Skills

Conceptual skills

Good delegators

The progress and genesis of change

ADMINISTRATION

Rule-driven

Bound by regulations

Adherence to status-quo

Emphasis on perfecting procedures.

Decision Making in Organisations Today

The four terms may be viewed along a continuum which shows the degree of structure inherent in each of these.

ENTREPRENEURSHIP

Risk-taking




LEADERSHIP

Vision


Good motivators


Gain cooperation

MANAGEMENT

Technical skills


Conceptual skills

Good delegators


ADMINISTRATION

Rule-driven




LOW STRUCTURE HIGH STRUCTURE

Reference: Hunt, J. (2006) ‘Key Components in the Development of Senior Executives in Australia’, The Business Review, Cambridge, Vol. 5, No. 1: 121-131.

Leadership as an Important Component of Modern Management Practice

Today’s managers often find they need a combination of each of these 4 aptitudes.

ENTREPRENEURSHIP

Risk-taking




LEADERSHIP

Vision


Good motivators


Gain cooperation

MANAGEMENT

Technical skills


Conceptual skills

Good delegators


ADMINISTRATION

Rule-driven




MODERN MANAGEMENT PRACTICE

Vision Interpersonal skills Understanding systems

Creativity Ability to delegate Regulatory awareness

The POLC Model

PLANNING & DECISION MAKING

Setting the organisation’s goals and deciding how best to achieve them.

ORGANISING

Determining how best to group activities and resources.

LEADING

Motivating members of the organisation to work in the best interests of the organisation.

CONTROLLING

Monitoring and correcting ongoing activities to facilitate goal attainment.

Managerial Roles & Decision MakingHenry Mintzberg’s Research: 1975.

• Managers perform a great quantity of work at an unrelenting pace.• Managers work is typically varied, fragmented and brief.• Managers prefer to deal with current, specific, ad-hoc and non-routine issues.

• Management life often appears spontaneous and chaotic rather than organised.

• The most effective managers place themselves at the centre of a vast network of contacts.

• Managers prefer verbal media because it is often more current.• Aggregated, systematically gathered information and analysed data is not

weighed heavily by many managers..

Managerial RolesResearch by Henry Mintzberg

INTERPERSONAL ROLES1. Figurehead

2. Leader

3. Liaison

INFORMATIONAL ROLES1. Monitor

2. Disseminator

3. Spokesperson

DECISIONAL ROLES 1. Entrepreneur

2. Disturbance Handler

3. Resource Allocator

4. Negotiator

Mintzberg, H. (1975) ‘The manager’s job: Folklore and fact, Harvard Business Review, July-August, Vol. 53, no.6, pp. 49-61.

Managerial Skills And Leadership ImplicationsResearch By Robert Katz

Technical Skills

Interpersonal (Human ) Skills

Conceptual Skills

Junior Managers Middle Managers Senior Managers

Katz, R.L. (1974) ‘The skills of an effective administrator’, Harvard Business Review, September-October, pp. 90-102.

Recommended Readings:• Hunt, J. (2010) ‘Leadership Style Orientations of Senior Executives in Australia’, Journal

of the American Academy of Business, Cambridge, Vol. 16, No. 1: 207-217.

• Hunt, J. (2006) ‘Key Components in the Development of Senior Executives in Australia’, The Business Review, Cambridge, Vol. 5, No. 1: 121-131.

Further Readings: Katz. R. L. (1974), “The Skills of an Effective Administrator”, Harvard Business Review, September-October, pp. 90-102.

Mintzberg, H. (1975) “The Manager’s Job: Folklore and Fact”, Harvard Business Review, Vol. 53, No.6, July-August: 49-61.

Tannenbaum, R. & Schmidt, W.H. (1958), “How to Chose a Leadership Pattern”, Harvard Business Review, Vol. 36, No.2, March-April: 95-101.

Zaleznik, A. (1977), Managers and Leaders: Are they Different? Harvard Business Review, May-June.

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