Upload
eileen-newman
View
239
Download
5
Embed Size (px)
Citation preview
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
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
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
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
58 September/October 2013 Global Business and Organizat ional Excel lenceDOI : 10.1002/ joe
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).
Global Business and Organizat ional Excel lence September/October 2013 59DOI : 10.1002/ joe
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
60 September/October 2013 Global Business and Organizat ional Excel lenceDOI : 10.1002/ joe
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”
Global Business and Organizat ional Excel lence September/October 2013 61DOI : 10.1002/ joe
(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
62 September/October 2013 Global Business and Organizat ional Excel lenceDOI : 10.1002/ joe
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).
Global Business and Organizat ional Excel lence September/October 2013 63DOI : 10.1002/ joe
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.”
References
A&E Networks. (2013). Biography. Retrieved from http://www . biography . com / people / warren - buffett - 9230729?page=2
ASPIRA Association. (2012). ASPIRA Youth DevelopmentProgram, “MODULE #5: Defining Leadership Styles,”1995– 2012. Retrieved from http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=7&sqi=2&ved=0CF0QFjAG&url=http%3A%2F%2Fwww.aspira.org%2Ffiles%2Fdocuments%2Fyouthdev08%2FU V M 5 dls.pdf&ei=r9ksUcyiI-y30QHOmIGYAQ&usg=AFQjCNGcYd02NGIccXWmCbHT3nx6wMUrIw
Benincasa, R. (2012). 6 leadership styles, and when youshould use them. Retrieved from http://www.fastcompany.com/1838481/6-leadership-styles-and-when-you-should-use-them
Bennis, W. (2010). Retrieved from http://www.warrenbennis.com/
Chaudhury, A. (2012). The best CEOs are auto-crats. Retrieved from http://archive.dailypioneer.com/columnists/item/51508-the-best-ceos-are-autocrats.html
Clark, H. (2007). Words of wisdom from Warren Buffett. Re-trieved from http://www.forbes.com/2007/01/10/leadership-managing-money-lead-manage-cx hc 0110buffett.html
Flannery, N. P. (2011). Rupert Murdoch maintains control ofNews Corp. Forbes. Retrieved from http://www.forbes.com/sites/nathanielparishflannery/2011/10/24/how-rupert-murdoch-maintains-control-of-news-corp/
64 September/October 2013 Global Business and Organizat ional Excel lenceDOI : 10.1002/ joe
Forbes. (2012). Retrieved from http://www.forbes.com/profile/rupert-murdoch/
Gilbert, S. (2008). Built for success: The story of Starbucks.Mankato, MN: The Creative Company.
Innovate. (2006, September-October). Starbucks: Drink itscoffee but sip deeper to glean Starbucks’ lifestyle impact. Re-trieved from http://www.millenniumv.com/innovation/index.php?option=com magazine&task=show magazine article&magazine id=58&Itemid=28&cat id=3
Intuit. (2008). Personal and professional growth: The meet-ing of opportunity and respect. Retrieved from http://www.intuit25.com/developing.html
Kelly, H. (2012). How Apple has changed under TimCook. CNN. Retrieved from http://www.cnn.com/2012/10/04/tech/innovation/apple-tim-cook
Knowledge@Wharton. (2005). The importance of beingRichard Branson. Retrieved from http://knowledge.wharton.upenn.edu/article.cfm?articleid=1109
Kruse, K. (2012). 100 best quotes on leadership. Re-trieved from http://www.forbes.com/sites/kevinkruse/2012/10/16/quotes-on-leadership/
Lesson #4: Pull for your people. (n.d.). Retrieved from http://www.evancarmichael.com/Famous-Entrepreneurs/643/Lesson-4-Pull-For-Your-People.html
Mills, Q. (2005). Leadership: How to lead, how to live.Waltham, MA: MindEdge Press.
Mind Tools Ltd. (n.d.). Leadership styles: Choosing theright style for the situation. Retrieved from http://www.mindtools.com/pages/article/newLDR 84.htm
Nisen, M. (2012). 17 Quotes from Starbucks CEO HowardSchultz On How He Became Successful. Retrieved fromhttp://www.businessinsider.com/howard-schultz-quotes-2012-11?op=1
O’Loughlin, J. (2005). The real Warren Buffett: Managingcapital, leading people. Boston, MA: Nicholas Brealey Pub-lishing.
Petzke, J. (2012). The rise of Warren Buffett. Retrievedfrom http://jamespetzke.com/2012/05/the-rise-of-warren-buffett/
PR Newswire. (2002). Jack Stahl, former Coca-Cola pres-ident and COO, named president and CEO of Revlon.Retrieved from http://www.prnewswire.com/news-releases-
test/jack-stahl-former-coca-cola-president-and-coo-named-president-and-ceo-of-revlon-76060532.html
Prewitt, M. (2007). The situational leader. Retrieved fromhttp://www.strategy-business.com/article/li00042?pg=all
Rabinowitz, P. (2013). Styles of leadership. Retrieved fromhttp://ctb.ku.edu/en/tablecontents/sub section main 1122.aspx
Reese, J. (1996, December 9). Starbucks: Inside the cof-fee cult. Fortune. Retrieved from http://money.cnn.com/magazines/fortune/fortune archive/1996/12/09/219373/
Schultz, H., & Yang, D. J. (1999). Pour your heart into it:How Starbucks built a company one cup at a time. New York,NY: Hyperion.
Situational leadership most effective for success. (2012).The Economic Times. Retrieved from http://articles.economictimes.indiatimes.com/2012-06-23/news/323821551 leadership-skills-situational-ramco-systems
Stahl, J. (2007). Lessons on leadership: 7 fundamental man-agement skills for leaders at all levels. New York, NY: Kaplan.
Stallard, M. L. (2009). The leadership style of WarrenBuffett. Retrieved from http://www.michaelleestallard.com/the-leadership-style-of-warren-buffett
Starbucks. (2012). Starbucks company profile, 8/2012.Retrieved from http://globalassets.starbucks.com/assets/9a6616b98dc64271ac8c910fbee47884.pdf
Starbucks’ first mate. (2008, October 10). Entrepreneur. Re-trieved from http://www.entrepreneur.com/article/197692
Toren, M. (2008). The buck stops with you—RupertMurdoch. Retrieved from http://www.youngentrepreneur.com/blog/entrepreneurship/the-buck-stops-with-you-rupert-murdoch/
Toren, M. (2009). How to lead like Richard Bran-son. Retrieved from http://www.youngentrepreneur.com/profiles/modeling-masters/how-to-lead-like-richard-branson/
Williams, D. K. (2012a). Brad Smith, Intuit CEO: How to be agreat leader: Get out of the way, http://www.forbes.com/sites/davidkwilliams/2012/06/25/growing-a-company-qa-with-brad-smith-intuit-ceo-remove-the-barriers-to-innovation-and-get-out-of-the-way/
Williams, D. K. (2012b). Top 10 list: The greatest livingbusiness leaders today. Forbes. Retrieved from http://www.forbes.com/sites/davidkwilliams/2012/07/24/top-10-list-the-greatest-living-business-leaders-today/
Global Business and Organizat ional Excel lence September/October 2013 65DOI : 10.1002/ joe
Wright, W. M. (2013). Profiles in amazing people. Re-trieved from http://www.windowtowallstreet.com/Pages/RichardBranson.aspx
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].
66 September/October 2013 Global Business and Organizat ional Excel lenceDOI : 10.1002/ joe