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Assessing Your Leadership Style to Achieve Organizational Objectives EILEEN NEWMAN RUBIN Research has shown that there are more than 30 differently named leadership styles, ranging from micro-management to hands-off, each with its own proponents. Six, however, stand out as most com- monly found in business: authoritarian, democratic, transformational, laissez-faire, servant, and situa- tional. A review of the experiences of six leaders who embody these styles reveals that each mode of operating has its pros and cons; there is no sin- gle best approach. Being aware of one’s leadership style and that of others makes it possible to lever- age strengths and compensate for weaknesses and to properly match individuals to a particular role or task—for the good of the entire organization. © C 2013 Wiley Periodicals, Inc. Whether they are involved in politics, corporate America, or a nonprofit endeavor, the style in which managers and other professionals exert their lead- ership can determine the outcome of their efforts. As the American businessman and political fig- ure Erskine Bowles said, “Leadership is the key to 99 percent of all successful efforts” (Kruse, 2012). But what is the best leadership style to use? There is no simple answer to this seemingly simple ques- tion. One’s leadership style depends on several fac- tors, including the personality of the leader, the or- ganizational culture (and the many subcultures that may exist within it), the personalities of the people to be led, and the overall state of the organization. Certainly, exploring the leadership styles that have proven to be successful in a variety of environments can help pinpoint those that might work best in in- fluencing people and bringing about positive orga- nizational change. What Is Leadership Style? The ASPIRA Association (2012) defines leadership style as: “a form of cross situational behavioral con- sistency. It refers to the manner in which a leader interacts with his or her subordinates. More specif- ically, dimensions of leadership style depict the way in which a leader (a) attempts to influence the be- havior of subordinates (Goal Attainment Function); (b) makes decisions regarding the direction of the group (Adaptation Function); and (c) his or her balance between the goal attainment function and the maintenance function of the group.” As Warren Bennis, the American scholar, organizational consul- tant, and author who is widely regarded as a pio- neer of the contemporary field of leadership stud- ies, said, “The most dangerous leadership myth is that leaders are born—that there is a genetic fac- tor to leadership. That’s nonsense; in fact, the op- posite is true. Leaders are made rather than born” (Bennis, 2010). Making a leader requires nurturing, role models, and perspective. The Six Main Leadership Styles Leadership styles run the gamut from micro- management to hands-off, each with its own propo- nents, who may describe them in varying ways. Re- search shows more than 30 differently named leader- ship styles, many of which are actually synonymous or closely related. Exhibit 1 on pages 56–57 outlines six of the main leadership styles, including their pos- itive and negative aspects. According to Forbes magazine (Williams, 2012b), the top ten greatest business leaders in 2012 were: 1. Jeff Bezos, Amazon 2. Anne Mulcahy, Xerox © 2013 Wiley Periodicals, Inc. Published online in Wiley Online Library (wileyonlinelibrary.com) Global Business and Organizational Excellence DOI: 10.1002/joe.21515 September/October 2013 55

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Page 1: Assessing Your Leadership Style to Achieve Organizational Objectives

Assessing Your Leadership Styleto Achieve Organizational Objectives E ILEEN NEWMAN RUBIN

Research has shown that there are more than 30differently named leadership styles, ranging frommicro-management to hands-off, each with its ownproponents. Six, however, stand out as most com-monly found in business: authoritarian, democratic,transformational, laissez-faire, servant, and situa-tional. A review of the experiences of six leaderswho embody these styles reveals that each modeof operating has its pros and cons; there is no sin-gle best approach. Being aware of one’s leadershipstyle and that of others makes it possible to lever-age strengths and compensate for weaknesses andto properly match individuals to a particular roleor task—for the good of the entire organization.©C 2013 Wiley Periodicals, Inc.

Whether they are involved in politics, corporateAmerica, or a nonprofit endeavor, the style in whichmanagers and other professionals exert their lead-ership can determine the outcome of their efforts.As the American businessman and political fig-ure Erskine Bowles said, “Leadership is the keyto 99 percent of all successful efforts” (Kruse,2012).

But what is the best leadership style to use? Thereis no simple answer to this seemingly simple ques-tion. One’s leadership style depends on several fac-tors, including the personality of the leader, the or-ganizational culture (and the many subcultures thatmay exist within it), the personalities of the peopleto be led, and the overall state of the organization.Certainly, exploring the leadership styles that haveproven to be successful in a variety of environmentscan help pinpoint those that might work best in in-fluencing people and bringing about positive orga-nizational change.

What Is Leadership Style?

The ASPIRA Association (2012) defines leadershipstyle as: “a form of cross situational behavioral con-sistency. It refers to the manner in which a leaderinteracts with his or her subordinates. More specif-ically, dimensions of leadership style depict the wayin which a leader (a) attempts to influence the be-havior of subordinates (Goal Attainment Function);(b) makes decisions regarding the direction of thegroup (Adaptation Function); and (c) his or herbalance between the goal attainment function andthe maintenance function of the group.” As WarrenBennis, the American scholar, organizational consul-tant, and author who is widely regarded as a pio-neer of the contemporary field of leadership stud-ies, said, “The most dangerous leadership myth isthat leaders are born—that there is a genetic fac-tor to leadership. That’s nonsense; in fact, the op-posite is true. Leaders are made rather than born”(Bennis, 2010). Making a leader requires nurturing,role models, and perspective.

The Six Main Leadership Styles

Leadership styles run the gamut from micro-management to hands-off, each with its own propo-nents, who may describe them in varying ways. Re-search shows more than 30 differently named leader-ship styles, many of which are actually synonymousor closely related. Exhibit 1 on pages 56–57 outlinessix of the main leadership styles, including their pos-itive and negative aspects.

According to Forbes magazine (Williams, 2012b),the top ten greatest business leaders in 2012 were:

1. Jeff Bezos, Amazon2. Anne Mulcahy, Xerox

© 2013 Wiley Per iodicals , Inc .Publ ished onl ine in Wi ley Onl ine Library (wi leyonl inel ibrary.com)

Global Business and Organizat ional Excel lence • DOI : 10.1002/ joe .21515 • September/October 2013 55

Page 2: Assessing Your Leadership Style to Achieve Organizational Objectives

Exh

ibit

1.The

Six

Main

Leaders

hip

Sty

les

Styl

eAu

thor

itari

anDe

moc

ratic

Tran

sfor

mat

iona

lLa

isse

z-Fa

ire

Serv

ant

Situ

atio

nal

Syn

onym

sor

Sim

ilar

Sty

les

Aut

ocra

tic

Task

-Ori

ente

dC

omm

andi

ngC

oerc

ive

Par

tici

pati

veP

eopl

e-O

rien

ted

Rel

atio

ns-O

rien

ted

Team

Sha

red

Visi

onar

yP

ace

Set

ting

Str

ateg

ic

Free

Rei

nD

eleg

ativ

e–

Des

crip

tion

Res

embl

esa

dict

ator

.Th

eyei

ther

insi

ston

doin

gev

eryt

hing

them

selv

esor

mic

rom

anag

eot

hers

.Th

eym

ake

alld

ecis

ions

and

expe

ctpe

ople

toun

ques

tion

ingl

ydo

wha

tth

eyar

eto

ld.

Ifth

isst

yle

wer

esu

mm

edup

inon

eph

rase

,it

wou

ldbe

“Wha

tdo

you

thin

k?”(

Ben

inca

sa,

20

12

).A

dem

ocra

tic

lead

erw

ants

inpu

tfr

omal

ltea

mm

embe

rsan

dus

esco

nsen

sus

tore

ach

deci

sion

s.

This

styl

ein

spir

esot

hers

beca

use

they

expe

ctth

ebe

stfr

omev

eryo

neon

thei

rte

amas

wel

las

them

selv

es.

This

lead

sto

high

prod

ucti

vity

and

enga

gem

ent

from

ever

yone

inth

eir

team

(Min

dTo

ols

Ltd,

n.d.

).

Bas

ical

lya

hand

s-of

fle

ader

.Fr

omth

eFr

ench

phra

seth

atm

eans

“lea

veit

be,”

itde

scri

bes

lead

ers

who

allo

wth

eir

peop

leto

wor

kon

thei

row

n(M

ind

Tool

sLt

d,n.

d.).

Ale

ader

who

isfo

cuse

don

his/

her

empl

oyee

san

dhi

s/he

rem

ploy

ees’

need

s.S

erva

ntle

ader

sbe

lieve

that

bym

eeti

ngth

ese

need

s,th

eor

gani

zati

onw

illac

hiev

esu

cces

s.

Sit

uati

onal

lead

ersh

ip,

asit

sna

me

impl

ies,

invo

lves

the

use

ofdi

ffer

ent

lead

ersh

ipst

yles

base

don

the

situ

atio

n.

Wha

tit

Invo

lves

The

lead

erm

akes

the

deci

sion

wit

hno

inpu

tfr

omth

ete

am.

He

says

wha

tto

doan

dho

wto

doit

—no

ques

tion

sas

ked.

The

peop

lear

e“j

ust

follo

win

gor

ders

.”

Dem

ocra

tic

lead

ers

belie

vein

invo

lvin

gth

een

tire

team

and

aspi

refo

rte

amco

nsen

sus.

Whi

leth

eul

tim

ate

deci

sion

isth

eirs

,th

eyal

low

the

empl

oyee

sto

take

part

inde

cisi

onm

akin

g.

The

lead

erha

sa

visi

onan

dis

sopa

ssio

nate

and

char

ism

atic

that

hem

akes

his

visi

onth

atof

othe

rs.

The

lead

erde

fines

the

goal

and

team

mem

bers

mak

eth

ede

cisi

ons

and

basi

cally

act

inde

pend

entl

y.Th

ele

ader

isst

illul

tim

atel

yre

spon

sibl

e.

The

Ser

vant

lead

erbe

lieve

sin

rem

ovin

gth

eba

rrie

rsth

atim

pact

the

empl

oyee

s’pr

ogre

ss.Th

eybe

lieve

that

the

job

ofth

ele

ader

isto

serv

eth

eem

ploy

ee.

This

lead

ersh

ipst

yle

embr

aces

allo

fth

est

yles

prev

ious

lydi

scus

sed

and

sele

cts

the

appr

opri

ate

one

tofit

the

circ

umst

ance

s.P

ros

Em

ploy

ees

have

clea

rdi

rect

ion.

Res

ults

can

beac

hiev

edqu

ickl

y.

Em

ploy

ee“b

uy-i

n.”

Mor

em

otiv

atio

nsi

nce

they

feel

the

deci

sion

was

thei

rs.B

ette

rte

amw

ork.

Bet

ter

resu

lts

are

“tw

om

inds

are

bett

erth

anon

e.”

Thei

ren

thus

iasm

,en

ergy

,an

dpa

ssio

nar

eof

ten

infe

ctio

us.

Pro

babl

yth

egr

eate

stex

ampl

eof

anin

stan

ceof

Tran

sfor

mat

iona

lLe

ader

ship

isD

r.M

arti

nLu

ther

Kin

g’s

over

whe

lmin

g“I

Hav

ea

Dre

am”

spee

ch.

Kin

gcr

ysta

llize

dan

dex

pres

sed

the

emot

ions

ofm

illio

nsof

peop

lew

hosh

ared

inhi

svi

sion

(Rab

inow

itz,

20

13

).

Em

pow

ers

empl

oyee

s,an

dem

ploy

ees

take

owne

rshi

pov

erth

eir

effo

rts.

Incr

ease

sm

otiv

atio

n.

Mor

eem

ploy

eelo

yalt

yre

sult

ing

inlo

wtu

rnov

er.

The

lead

eris

flexi

ble,

and

this

tran

sfer

sto

the

empl

oyee

s.M

ore

empl

oyee

mot

ivat

ion

and

“buy

-in.

Cont

inue

d

56 September/October 2013 Global Business and Organizat ional Excel lenceDOI : 10.1002/ joe

Page 3: Assessing Your Leadership Style to Achieve Organizational Objectives

Exh

ibit

1.C

onti

nued

Styl

eAu

thor

itari

anDe

moc

ratic

Tran

sfor

mat

iona

lLa

isse

z-Fa

ire

Serv

ant

Situ

atio

nal

Con

sE

mpl

oyee

sfe

elst

ifled

,Th

ere

isno

“buy

-in”

toth

ede

cisi

ons

and

this

can

impa

ctde

dica

tion

.

Take

sti

me

tore

ach

cons

ensu

s.P

eopl

em

aybe

conf

used

asto

dire

ctio

nto

follo

w.

Focu

ses

onth

eul

tim

ate

goal

and

does

not

get

invo

lved

inde

tails

.Th

eref

ore,

they

need

tosu

rrou

ndth

emse

lves

wit

hco

mpe

tent

self

-mot

ivat

ed,

deta

il-or

ient

edpe

ople

.

Litt

leor

nodi

rect

ion

prov

ided

.C

anov

erw

helm

empl

oyee

sw

hoar

eno

tse

lf-m

otiv

ated

and

self

-dir

ecte

d.

Em

ploy

ees

may

not

feel

that

they

have

ale

ader

and

may

not

know

wha

tto

do.Th

eym

ayno

tkn

oww

hat

the

goal

is.Ta

kes

tim

eto

prop

erly

impl

emen

t.

This

flexi

bilit

yca

nbe

seen

asa

lack

ofle

ader

ship

and

can

beco

nfus

ing

toem

ploy

ees,

asth

eydo

not

know

wha

tto

expe

ctne

xt.

Less

pred

icta

bilit

y.

3. Brad Smith, Intuit4. Howard Schultz, Starbucks5. Larry Page, Google6. Tim Cook, Apple7. Indra Nooyi, PepsiCo8. Warren Buffett, Berkshire Hathaway9. Richard Branson, Virgin Group

10. Rupert Murdoch, News Corporation

Exhibit 2 on page 58 shows that these individu-als display five of the six main leadership styles. Asfor Tim Cook of Apple, who took the reins at Ap-ple after the death of Steve Jobs, his style has yetto be determined (Kelly, 2012). An analysis of fiveof these individuals, who display the authoritarian,democratic, transformational, laissez-faire, and ser-vant leadership styles, follows, as well as a discus-sion of a successful situational leader.

Authoritarian Leadership Under Rupert Murdoch

at News Corporation

According to Arindam Chaudhury, “A democraticstyle of leadership that allows employees their in-dividual space in the organisation sounds good onpaper. But human nature is to shirk work at thefirst possible chance. Hence an autocratic, top-downstyle of management is often the most effective inreal life” (Chaudhury, 2012). Certainly Rupert Mur-doch believes this. The chairman and CEO of NewsCorporation has widely been quoted as saying, “Youcan’t build a strong corporation with a lot of com-mittees and a board that has to be consulted everyturn. You have to be able to make decisions on yourown.” And that is exactly what he does.

Murdoch inherited his news company from his fa-ther, Sir Keith Murdoch. But, as the old adagegoes, it’s not what you have, it’s what you dowith what you have. The younger Murdoch tooka small-town newspaper and turned it into abillion-dollar operation. Loved by some, hated bymany, and even feared by others, he wields un-deniable power (Toren, 2008). At 82 years ofage, Murdoch is not about to begin adapting his

Global Business and Organizat ional Excel lence September/October 2013 57DOI : 10.1002/ joe

Page 4: Assessing Your Leadership Style to Achieve Organizational Objectives

Exhibit 2. The Styles of Some of Today’s Most Successful Leaders

Leader Company Leadership Style

Jeff Bezos Amazon AuthoritarianAnne Mulcahy Xerox DemocraticBrad Smith Intuit Laissez-FaireHoward Schultz Starbucks ServantLarry Page Google DemocraticTim Cook Apple Not well definedIndra Nooyi PepsiCo TransformationalWarren Buffett Berkshire Hathaway DemocraticSir Richard Branson Virgin Group TransformationalRupert Murdoch News Corporation Authoritarian

management style to anyone’s input. Despite crit-icism, he keeps a tight grip on his media empireand bases his leadership style on his own values(Flannery, 2011). As he puts it, “For better or forworse, our company [The News Corporation Ltd.]is a reflection of my thinking, my character, and myvalues” (Toren, 2008).

Rupert Murdoch embraces change, stays ahead ofthe times, and makes it a point to know every as-pect of his business. “I try to keep in touch with thedetails,” he says. “I also look at the product daily.That doesn’t mean you interfere, but it’s importantoccasionally to show the ability to be involved. Itshows you understand what’s happening” (Toren,2008). Finally, even while keeping a firm hold onthe corporate reins, Murdoch has learned the impor-tance of surrounding himself with qualified peoplewho can help him achieve his goals (Toren, 2008).His hands-on authoritarian leadership helped himachieve a Forbes ranking of the 36th-richest Amer-ican, the 91st-richest person in the world, and the26th-most powerful person in the world (Forbes,2012).

Democratic Leadership Under Warren Buffett at

Berkshire Hathaway

Unlike authoritarian leaders, democratic leaders be-lieve in involving their entire team in the decision-making process and aspire to achieve team consen-

sus. Although final decisions are ultimately theirsto make, they try to take everyone’s opinions andconcerns into consideration before doing so. WarrenBuffett personifies this leadership style.

Warm and fuzzy are not words normally used todescribe captains of industry, unless one is talk-ing about Buffett (Clark, 2007). Despite beingthesecond-richest man on the planet, Buffett is con-sidered to be modest and approachable. He val-ues interaction and collaboration with his followersand strives to create a nurturing work environment.Within the various companies under his control, heplaces a great deal of importance on communica-tion, mutual trust, and interpersonal respect. Buffettis known as being remarkably forgiving and “lovesto praise and give credit to his managers while be-ing humble (or critical) about his own performance”(Stallard, 2009).

Buffett’s interest in making money was very clearand impressive from an early age. While his friendswere playing games, he was making money. Hisfirst money-making idea came to him when he was6 years old. He bought six-packs of Coke for25 cents each and resold the bottles individually fora nickel each, netting him a nickel profit for everysix-pack he sold. At the age of 11, he tried his handat the stock market, netting a profit of $2 a sharefor the three shares of Cities Service Preferred stock

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he bought (Petzke, 2012). He went on to embark onseveral lucrative business ventures throughout highschool as well. These early experiences prepared himfor his success as an adult in the business world.

Buffett believes that if he does not understand a par-ticular business, it is not worth investing in, evenif it is popular (Clark, 2007). He bides his time toget the information he requires in order to under-stand a business well enough to invest in it. “If wecan’t find things within our circle of competence, wedon’t expand the circle. We wait,” he says. Buffettbelieves, “Pick the wrong company at the right priceand you lose. Pick the right company at the wrongprice and you lose. You have to pick the right com-pany at the right price and to do that you have towait and wait—patiently” (Clark, 2007).

Buffett also takes the time to listen to people. Thefollowing excerpt from a memo that he sent to histop managers further reveals his management style:“Talk to me about what is going on as little or asmuch as you wish. Each of you does a first-class jobof running your operation with your own individualstyle and you don’t need me to help” (O’Loughlin,2005). Whether this style would work for every-one is questionable, but it certainly has worked forWarren Buffett. As of early 2013, he was rated No.15 on Forbes magazine’s list of the world’s mostpowerful people (A&E Networks, 2013). And at age82, he still remains the master of his own destiny.

The Transformational Leadership of Richard Branson

at the Virgin Group

Transformational leaders take the elements of in-volvement and participation that typically are de-veloped in an environment of democratic leadershipand bring them to a higher level. In transformationalleadership, there is not only participation, but also aleader with a vision who is so passionate and charis-matic that he makes his vision that of others viaempowerment and encouragement. The transforma-tional leader brings an overwhelming passion to his

organization that is unsurpassed by any other leader-ship style. Sir Richard Branson is that type of leader.

According to Branson, “Having a personality ofcaring about people is important. You can’t be agood leader unless you generally like people. Thatis how you bring out the best in them” (Toren,2009). Branson has embedded this philosophy in ev-erything he does by institutionalizing an “employeescome first” attitude throughout the Virgin Group.He hires bright people and gives them a stake in thecompany (Toren, 2009)—which encourages the feel-ing of this is “our” company and we want to dowhatever it takes to make it successful. He is knownfor genuinely listening to his people, so that they donot feel like just a number in a large corporation. Heregularly writes his staff letters to tell them what isgoing on, and he encourages them to send him theirown ideas.

Transformational leaders take the elements of in-volvement and participation that typically are de-veloped in an environment of democratic leadershipand bring them to a higher level.

Branson believes in making the Virgin Group a funplace to work. “Some 80 percent of your life isspent working,” he says. “You want to have funat home; why shouldn’t you have fun at work?”(Knowledge@Wharton, 2005). To this end, Bransontakes great effort to ensure that his employees areenjoying themselves at Virgin. He also insists on hav-ing time to enjoy with his staff outside work. “Ifa chairman of a company visits Seattle, that chair-man should take all the staff out in the eveningand have a few drinks together, talk together andparty together and not be embarrassed about thestaff seeing the weaker side of you. They don’t loserespect for you because they see your human side.They actually gain more respect for you,” he said(Knowledge@Wharton, 2005).

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While all these factors point to Branson’s distinctivestyle, there is more to leadership than just caringabout people and having fun. Branson’s organiza-tional goals are threefold: to make Virgin the mostrespected brand in the world, to always look formore business opportunities, and, as was said in StarTrek, “to boldly go where no man has gone before”(Wright, 2013).

Achieving these goals requires courage, time, and ef-fort. Branson has placed himself in the forefront inthe marketing of his company, for he did not wantit to be a faceless entity. He wanted to make Virgina household name, one that consumers would asso-ciate with a distinct profile and a personality. As Vir-gin became better known, it attracted more mediaattention and more investors. With the additionalinvestment, Branson was able to expand his com-pany and embark on some risky endeavors, such asVirgin Atlantic, which succeeded, and Virgin Vodkaand Virgin Cola, which failed (Wright, 2013).

Branson’s philosophy has been to try new things,branch out and, when success proves elusive, moveon to something else. He understands that an inte-gral part of being an entrepreneur means being will-ing to not only accept failure, but also to rise up andstart again when necessary (Wright, 2013). He re-alizes that the higher the risk, the higher the return,and his business savvy has yielded impressive overallresults. In summary, Richard Branson is a visionarywho has great people skills and a passion for whathe does. He is a nonconformist who sees the value infollowing the advice of Ralph Waldo Emerson: “Donot follow where the path may lead. Go, instead,where there is no path and leave a trail.”

Laissez-Faire Leadership Under Brad Smith at Intuit

Like transformational leadership, laissez-faire lead-ership empowers employees. In this instance, how-ever, empowerment can be considered an extreme re-sult of a very hands-off leadership style. The premisehere is to hire the right type of people and then

give them free rein to tackle any challenges. A popu-lar quote from General George S. Patton, Jr., bestsummarizes the essence of laissez-faire leadership:“Never tell people how to do things. Tell them whatto do and they will surprise you with their ingenu-ity.” That philosophy is exactly what has made BradSmith and Intuit so successful.

Smith emphasizes hiring, developing, and retain-ing talented employees. Once on board, employ-ees at all levels are given the support and resourcesthey need to grow, including internships for col-lege students, rotational development opportuni-ties for recent graduates, leadership developmentopportunities for supervisors and high-potentialmanagers, problem-solving assignments for seniorleaders, and an annual leadership conference for di-rectors and vice presidents to encourage knowledgesharing among teams (Intuit, 2008). Intuit createsan environment where employees can work uncon-strained by barriers that might stifle innovation andcreativity. “At Intuit, we operate like a company ofstartups,” said Smith. “Idea Jams and unstructuredtime give passionate employees opportunities to col-laborate on new ideas to solve customer problems.To keep ideas moving and teams nimble, we embracethe ‘Two-Pizza rule,’ making sure product develop-ment teams are no larger than two pizzas can feed”(Williams, 2012a).

A popular quote from General George S. Patton, Jr.,best summarizes the essence of laissez-faire lead-ership: “Never tell people how to do things. Tell themwhat to do and they will surprise you with theiringenuity.”

Innovation has been at the core of Intuit’s structurefrom the start. Urged to think outside the box, thecompany’s employees pride themselves on delightingtheir customers—on going above and beyond theircustomers’ expectations to create a unique class of

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products that sets them apart from the competition.The entrepreneurial spirit that they are encouragedto foster enables them to look for untapped oppor-tunities and to anticipate customer needs even be-fore the customer knows what those needs are. Forexample, in anticipation of customer needs, Intuitlaunched Snap Payroll, a free, mobile applicationthat allows small businesses on the go to calculatepaychecks in minutes and determine how much toset aside for taxes (Williams, 2012a). Ultimately, In-tuit’s success stems from Brad Smith’s belief that a“company is never too large or too successful tocontinue to behave and think 100 percent as anentrepreneur” (Williams, 2012a).

Servant Leadership Under Howard Schultz at

Starbucks

Servant leadership is the next step removed fromlaissez-faire leadership. Not only does it requiredismantling the barriers that impede employees’progress, but it also goes one step further in main-taining that the job of the leader is to serve the em-ployees. Companies that espouse servant leadershiptypically have loyal employees and low turnover, butthis philosophy can take a long time to become in-grained in a corporation’s culture. It does not offerany quick fixes.

Regarding his leadership style, Howard Schultz,chairman, president, and CEO at Starbucks, says,“Our mission statement about treating people withrespect and dignity is not just words but a creed welive by every day. You can’t expect your employ-ees to exceed the expectations of your customersif you don’t exceed the employees’ expectations ofmanagement. That’s the contract” (Nisen, 2012).

As a result of being a servant leader and takingcare of the people who work for him, Schultz hascreated a dedicated workforce in which turnoveris not an issue. Thus, he has saved his organiza-tion the money that is required to continually at-tract, train, and retain strong employees. “My aimwas to give our employees a vested interest in the

company,” says Schultz. “And that, I think, hasmade all the difference” (“Starbucks’ First Mate,”2008).

Companies that espouse servant leadership typi-cally have loyal employees and low turnover, but thisphilosophy can take a long time to become ingrainedin a corporation’s culture. It does not offer any quickfixes.

Tapping the expertise of a dedicated staff, Schultzlikes to say he built his company “one cup at atime” (Schultz & Yang, 1999). In his second yearworking for Starbucks, Schultz went on a businesstrip to Milan, Italy, where he visited several espressobars. These local cafes served all different types ofcoffees—espresso, cafe latte, and cappuccino—bythe cup. While the coffee was wonderful, he also no-ticed that the atmosphere was enticing: There wasan energy, a sense of camaraderie, and a feelingof romance that filled these places (Gilbert, 2008).Schultz became infatuated with the idea of coffeebars, places where gourmet coffee was served by thecup, and where people could come to meet and re-lax. “I believed the relationship I saw between peo-ple and coffee in Italy was transferable to Americain a big way,” he said (Reese, 1996). Schultz tookthis vision and with hard work, enthusiasm, and agreat deal of sacrifice, reshaped Starbucks into whatit is today.

Through his vision, perseverance, and dedication tohis employees, Schultz transformed a single storein Seattle, Washington, into an empire of almost18,000 stores worldwide (Starbucks, 2012). “Whilewe are a coffee company at heart, Starbucks pro-vides much more than the best cup of coffee,” saidSchultz. “We offer a community gathering placewhere people come together to connect and dis-cover new things. We are always looking for inno-vative ways to surprise and delight our customers”

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(Innovate, 2006). “I can’t give you any secret recipefor success, any foolproof plan for making it in theworld of business,” wrote Schultz. “But my own ex-perience suggests that it is possible to start fromnothing and achieve even beyond your dreams”(Schultz & Yang, 1999, p. 19).

Situational Leadership Under Jack Stahl at Coke

and Revlon

As its name suggests, situational leadership entailsimplementing a style of leadership suited to a par-ticular set of circumstances. Those who practice itmust be masters of flexibility. This style embracesall the previously discussed styles and requires thatthe leader be able to select the appropriate one to fita particular environment or challenge. This leader-ship style is dynamic, and certainly more difficult toimplement than the others. It requires that the leaderbe astute and keenly aware of what will be successfulin any given situation, as well as able to make coursecorrections quickly, if necessary. In situational lead-ership, three factors affect the leader’s decisions: thesituation, the capability of the followers, and the ca-pability of the leader. The leader adjusts to whateverlimitations are presented by subordinates and by thesituation itself.

Jack Stahl, former president and chief operating of-ficer (COO) and group president, North America,at The Coca-Cola Company and former chief ex-ecutive officer and president of Revlon, is a perfectexample of a situational leader. Noted as a vision-ary leader who institutes a compelling vision (Mills,2005), Stahl also self-identifies as having a demo-cratic leadership style—but with authoritarian flour-ishes. According to Stahl, the most common lead-ership deficiency is an inability or unwillingness tofocus on the details needed to implement a strate-gic approach (Stahl, 2007). The best leaders, he be-lieves, are “situational”—they are able to step intoany circumstance and recognize whether they needto engage at the strategy level or dive into the nitty-gritty (Prewitt, 2007).

Stahl’s situational leadership style has served himquite effectively. Within nine years of joining TheCoca-Cola Company, in 1988 at the age of 36, hebecame the youngest chief financial officer in thecompany’s history. In 1994, as senior vice presidentand group president, North America, Stahl assumedthe leadership of Coke’s largest business group. Dur-ing that six-year period, Coca-Cola North Americatripled its average annual growth, increased mar-ket share from 40 percent to 45 percent, and in-creased operating income by 14 percent annually(PR Newswire, 2002).

As its name suggests, situational leadership entailsimplementing a style of leadership suited to a par-ticular set of circumstances. Those who practice itmust be masters of flexibility.

Although the situational leadership style is difficultto master because it is so dynamic, it may be pre-cisely what is needed for the twenty-first century.According to J. S. Shivakumar, vice president of hu-man resources at Ramco Systems, a market leader ininformation security solutions in India, “Situationalleadership is the most effective leadership style to at-tain success in the complex and uncertain work envi-ronment” (“Situational Leadership Most Effective,”2012).

Which Leadership Style Is Best for You?

As the experiences outlined here illustrate, thereis no “one-size-fits-all” formula when it comes toleadership. The leaders discussed here were not cutfrom the same cloth; they demonstrate diverse stylesthat have supported their success. Therefore, thereis no single “best” leadership style. Delving fur-ther, we can say that there are many componentsto leadership; some are innate to the individualand others are learned. Certainly, personality, previ-ous role models, and past experience play into the

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Exhibit 3. Leadership Style Test

Instructions1. For each of the statements below, circle the number that indicates the degree to which you agree or disagree.2. Give your immediate impressions. There are no right or wrong answers.

Strongly Strongly# Statements Agree Agree Neutral Disagree Disagree

1 Employees need to be supervised closely, or they are not likely to dotheir work.

1 2 3 4 5

2 Employees want to be a part of the decision-making process. 1 2 3 4 53 In complex situations, leaders should let subordinates work problems

out on their own.1 2 3 4 5

4 It is fair to say that most employees in the general population are lazy. 1 2 3 4 55 Providing guidance without pressure is the key to being a good leader. 1 2 3 4 56 Leadership requires staying out of the way of subordinates as they do

their work.1 2 3 4 5

7 As a rule, employees must be given rewards or punishments in order tomotivate them to achieve organizational objectives.

1 2 3 4 5

8 Most workers want frequent and supportive communication from theirleaders.

1 2 3 4 5

9 As a rule, leaders should allow subordinates to appraise their own work. 1 2 3 4 510 Most employees feel insecure about their work and need direction. 1 2 3 4 511 Leaders need to help subordinates accept responsibility for completing

their work.1 2 3 4 5

12 Leaders should give subordinates complete freedom to solve problemson their own.

1 2 3 4 5

13 The leader is the chief judge of the achievements of the members of thegroup.

1 2 3 4 5

14 It is the leader’s job to help subordinates find their “passion.” 1 2 3 4 515 In most situations, workers prefer little input from the leader. 1 2 3 4 516 Effective leaders give orders and clarify procedures. 1 2 3 4 517 People are basically competent and if given a task will do a good job. 1 2 3 4 518 In general, it is best to leave subordinates alone. 1 2 3 4 5

Scoring1. Sum the responses on items 1, 4, 7, 10, 13, and 16 (authoritarian leadership).2. Sum the responses on items 2, 5, 8, 11, 14, and 17 (democratic leadership).3. Sum the responses on items 3, 6, 9, 12, 15, and 18 (laissez-faire leadership).

Total ScoresAuthoritarian LeadershipDemocratic LeadershipLaissez-Faire Leadership

Scoring InterpretationThis questionnaire is designed to measure three common styles of leadership: authoritarian, democratic, and laissez-faire. By

comparing your scores, you can determine which styles are most dominant and least dominant in your own style of leadership.

If your score is 26–30, you are in the very high range.If your score is 21–25, you are in the high range.If your score is 16–20, you are in the moderate range.If your score is 11–15, you are in the low range.If your score is 6–10, you are in the very low range.Source: Northouse (2011).

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mix. And each leadership style has its advantagesand disadvantages.

Taking the first step to determine one’s own lead-ership style is as easy as going online, wherea plethora of interactive leadership style assess-ment tools are available. Many of these ques-tionnaires can help users understand the intrica-cies of their leadership style and even help revealparticular strengths and weaknesses. One leader-ship assessment that is easy to use is providedin Exhibit 3 on page 63 (Northouse, 2011). Al-though it addresses only three common leader-ship styles, extrapolations can be made based onthe results.

Employees who are encouraged to assess their par-ticular leadership style can maximize their chancesof success, regardless of their position in the or-ganization. Having an awareness of one’s leader-ship style makes it easier to leverage strengths andcompensate for weaknesses. From a managementperspective, understanding subordinates’ leadershipstyles is essential in properly matching individualsto a particular role or task. For example, a high-tech start-up project would probably benefit fromhaving a laissez-faire leader who would not feelthreatened by allowing creativity to flourish, while aproduction-line challenge might best be handled byan authoritarian who is highly structured and adeptat maintaining order. On a personal level, individu-als who have a clear picture of their own leadershipstyle are in a better position to select the opportuni-ties and career options that are best suited to theirnatural abilities—and to know when they need toshift gears in order to meet the demands of a par-ticular assignment—than those who do not possessthis self-awareness. Among the questions to considerwhen debating the pros and cons of changing one’susual style of leadership:

• Is my current leadership style working in mypresent situation?

• What kind of evidence do I have that it is or isnot effective?

• What aspects of my working environment mighthave an impact on my leadership style?

• How might I consider leading differently?• Am I willing to do what it takes to change my

current leadership style?• Will the potential results be worth the effort

I expend?

Changing one’s usual way of leading is not easy. Butas Vince Lombardi said, “Leaders are made, they arenot born. They are made by hard effort and work,which is the price which all of us must pay to achieveany goal that is worthwhile.”

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Eileen Newman Rubin is a software quality analyst for Uni-versal Technical Resource Services, Inc. (UTRS), at PicatinnyArsenal in Rockaway Township, New Jersey. Having 27 yearsof experience in the defense electronics environment, shehas worked with software-based submarine systems, elec-tronic warfare, and communications/navigation systems. In-strumental in helping a company achieve SEI CMMI Level

5 in software/systems/programs, she has presented innovativesoftware and quality assurance methodologies at numerousconferences. She has been recognized by the American Soci-ety for Quality (ASQ) and is a certified software quality engi-neer, manager of quality/organizational excellence, Six Sigmagreen belt, quality auditor, quality process analyst, and qual-ity improvement associate. Rubin has a BSE in biomedical en-gineering and an MSE in computer science engineering fromthe University of Pennsylvania and an MBA in business com-puter information systems from Hofstra University in NewYork. She can be reached at [email protected].

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