Effective Leadership in Upper Level Management of Organizations Effective Leadership in Upper Level Management of Organizations Tahlar Rowe, Jacob Spitz, & Ariel Zanzuri Trinity University 1 Effective Leadership in Upper Level Management of Organizations Abstract Over the past century, the research being conducted to discover what makes a person an effective leader has increased exponentially. Our team has contributed to this effort by focusing on effective leadership in the context of upper level (executive) management of organizations. We conducted a qualitative interview with Heath Schiesser, President of the Integrated Care Group at Fresenius, who has held several different executive leadership positions and whose knowledge and experience we have based many of our findings on. We also examined various scholarly articles to better understand the different contexts of leadership. We cross-referenced our inferences from the articles with theories of “Transactional Leadership” and “Transformational Leadership,” as discussed by Hackman & Johnson in their textbook Leadership: A Communication Perspective. From our interview, and subsequent cross-examination of leadership theories, we were able to define Heath’s leadership style, and confirm our hypothesis: Transformational leadership is the most effective leadership within upper level management of organizations. Literature Review A transactional leader only responds to the basic needs of the follower. In their work “Leadership: A Communication Perspective”, Hackman and Johnson describe transactional leadership to be most “concerned with the satisfaction of the physiological, safety, and belonging needs”. Transactional leaders practice management by exception, which means that the leader will only intervene when needed to. Thus, we can see that there are elements of laissez-faire when transactional leadership is put into practice. Initially, we understood transactional leadership to be more effective when compared to an authoritarian form of 1 leadership, but less effective when compared to transformational leadership. Transformational leadership impacts the follower by addressing higher needs such as self-esteem and self-actualization. The factors that contribute to transformational leadership are charisma, individualized consideration, inspiration, and intellectual stimulation (Hackman & Johnson, 2013). Charismatic leaders provide a sense of vision, a mission, and inspire others while building trust and respect. Individualized consideration means the leader supports followers, while inspiration entails communicating high expectations and focuses efforts to enhance their followers’ understanding of organizational goals. Lastly, intellectual stimulation promotes innovative ways to view situations and encourages problem solving and decision making skills. Hackman and Johnson have identified the following five characteristics inherent in a transformational leader: being creative, being interactive, having a vision, being empowering, and being passionate. Transformational leaders realize the importance of both tasks and relationships to motivate others and allow them to make their own decisions. Showry and Manasa (2014) discuss their theory that in order to be an effective leader, one has to have a high level of selfawareness. In order to successfully lead other people, one has to have a good understanding of they are and what works best for them. Introspection requires the leader to understand his or her own weaknesses and strengths. It allows the leader to determine what the most appropriate behavior for a productive environment is. Desiring the approval of others or having a large ego are ways that one can damage his or her effectiveness as being a leader. An effective leader has a high emotional intelligence and a valid understanding of others, which is Effective Leadership in Upper Level Management of Organizations emphasized through his or her interaction with the follower (Showry and Mansa, 2014). Schmitz, Lee, and Lilien (2014) compare different forms of leadership and motivation, and how those inputs affect salespeople’s outputs in term of performance in cross-selling certain products. Crossselling is essentially selling a customer something that they did not originally come in for, but is similar to what they are already buying, or could be contrived as fitting together in a “packaged deal.” Taking advantage of this kind of sale requires advanced salesmanship, a vast knowledge of products and services which may be offered outside of your own department, and the creative freedom to approach every new customer in a different manner. Schmitz et al. (2014) found transformational leadership better suit salespeople because it would give them the creative freedom they need to approach each new customer differently and motivate them by the future goals of the firm and their desire for a job well done. This article is extremely enlightening with regard to our research proposal. If we are hiring someone to manage salespeople, he or she needs to have the characteristics of a transformational leader, or, more specifically, creativity, interactivity, having a vision, empowering followers, and bringing their passion and motivation to the workplace. Thomas & McDonagh (2013) explore effective communication as the first step toward teamwork and collaboration. They discovered that a shared language plays a key role in how true collaboration can be created in an organization. In general, the authors refer to the entrepreneurial aspect of these collaborations in a business setting. Upon communicating with others, the authors emphasize how being empathetic and open can actually strengthen individuals, teams, and other relationships. Being a transformational leader means being 2 interactive with your followers, in which communication plays a key role. It is important to be aware of others’ differences and embrace them to enhance your organization. Varying perspectives in a group help that group to achieve creativity and better problem solving skills, which are critical to success (Thomas & McDonagh, 2013). We must not only recognize difference, but embrace it. Methodology Our purpose for this research is to determine, through our articles, class discussions, and our qualitative interview with Mr. Heath Schiesser, the most effective leadership within upper level management of organizations. The participant of our research project is an entrepreneur by the name of Heath Schiesser. Our course instructor, Jamie Thompson, assigned Heath to our group because our interests and future aspirations fall in line with what Heath does for a living. Mr. Schiesser has held many valuable roles in a multitude of organizations, including serving as the President and CEO of both Medspring Urgent Care and Wellcare Health Plans, Inc. On April 1, 2015 we conducted a qualitative interview with Mr. Schiesser. Due to the distance between ourselves and our interviewee, we conducted the interview via Skype. We utilized recording devices to document the entire interview, then transcribed it. Our questions were crafted to be open ended and give us the ability to deduce Heath’s leadership style without actually asking him what the best leadership style is. He answered our questions fully and provided us with his knowledge and experience. We created an atmosphere in which we maintained control of the interview while still holding an element of spontaneity, which led to enlightening conversation. Based on what we have learned in class, we Effective Leadership in Upper Level Management of Organizations remained neutral, yet conveyed curiosity and engagement, being patient, and paying attention. We established an intimate setting where there were little distractions (in a conference room via Skype) and spoke for about 30 minutes. We had three variables: independent, dependent, and controlled. The independent variable was the questions we asked. The dependent variable was the answers we received. Based on how effective our questions were, we evaluated the outcome of our results. The controlled variable is the environment we established. Important instructions for our participant were for him to give us as much information as he possibly could. The interview was conducted very fashionably and in order, while allowing time for our participant to express what ideas, experiences, examples, and opinions that he had. Results Cross-examination of all of our data has led our team to confirm our original hypothesis: Transformational leadership is the most effective leadership within upper level management of organizations. Our interview with Mr. Schiesser yielded the results that we had previously predicted. Heath is a very successful business man who truly understands people (what makes them engaged, their motivations, and how they interact with one another), and he knows how to use this information for the improvement of the organizations. Due to Heath’s success, we feel as though he is a living, breathing model for effective leadership. In the interview, Heath gave us many examples of how he works with people, his methods of problem solving, and his own ideas of what it takes to be a great leader. Again, the traits of a transformational leader are charisma, individualized consideration, inspiration, and intellectual stimulation. Our 3 interview showed us that Heath displays all of these characteristics. Heath displays charisma in the culture and atmosphere that he has built within his organization: one of trust and respect. When he discussed his junior analyst example, Heath explains that he wants to create an environment where people know they can speak up. He points out that “one of the great things that Mackenzie taught [him] very early on was the idea that the most junior person around the table has an obligation to dissent.” He may be the senior partner at the table, but if the junior analyst, who has only been on the project for two weeks, knows about a piece of data that contradicts what he had been saying, then he or she has an obligation to speak up. Thus, the responsibility for making an environment where people feel comfortable to speak up is important for a leader. In order for a leader to foster this sort of atmosphere, he or she has to have reached the fifth tier of Maslow’s Hierarchy of Needs, which is selfactualization. Heath is comfortable enough with himself to focus on elevating those around him. This mentality directly displays his individualized consideration, but he also takes it one step further. Not only does Heath want to elevate others, he also wants those underneath him to elevate those that they oversee. In his discussion about problems that he comes in contact with, he responded with having “had situations where people are berating other people and making comments in emails they shouldn’t be making” also mentioning “how amazing how childish senior executives can be.” On the opposite extreme for problems, Heath highlighted some of the issues that a leader may face, which directly supports his possession of the inspiration trait. Heath discussed how he handles an employee asking for greater challenges, or telling him of a new job opportunity, and through this discussion, he directly displayed the way in which he Effective Leadership in Upper Level Management of Organizations communicates high expectations and enhances understanding of goals. This communication, along with his promotion of hiring individuals who are “smarter and better than himself” and his support of the obligation of speaking up, directly supporting his intellectual stimulation as well. Although we looked at textbook concepts, scholarly articles, and a human subject to prove our hypothesis, our study had some limitations. Given more time and resources, we could have interviewed more subjects or even observed an upper level management setting. We could have evaluated certain practices to test whether they proved effective toward transformational leadership. Conclusion Heath has achieved self-actualization. He has a genuine concern for the lives of those working for him, always keeps his followers in mind, and is always willing to do anything that he asks his followers to do. Though he never mentioned the words ‘Transformational Leader,’ the five characteristics of transformational leadership and the raw examples he gave us of his leadership directly supported our hypothesis that Heath possesses them all. Due to Heath’s success, and our conclusion that Heath is a transformational leader, we can confirm our hypothesis and conclude that transformational leadership is most effective for upper level management of organizations. 4 References Hackman, M.Z., & Johnson, C.E. (2013). Leadership: a communication perspective (6th ed.). Prospect Heights, IL: Waveland Press, Inc. Thomas, J. & McDonagh, D. (2013). Shared language: Towards more effective communication. Australasian Medical Journal, 6 (1), 46-54. Retrieved from: http://eds.a.ebscohost.com.libproxy.t rinity.edu/eds/pdfviewer/pdfviewer?s id=101aa5c-81f8-45fb-bf8f1888b3fa99fc%40sessionmgr4001& vid=2&hid=4213# Schmitz, C., Y.C., & Lilien, G.L. (2014). Cross-selling performance in complex selling contexts: An examination of supervisory- and compensation-based controls. Journal of Marketing, 78, 1-19. Retrieved from: http://pinnacle.allenpress.com/doi/pd f/10.1509/jm.12.0421 Showry, M., Manasa, K.V.L. (2014). Selfawareness – key to effective leadership. IUP Journal of Soft Skills, 8(1), 15-26. Retrieved from http://eds.b.ebscohost.com/eds/pdfvi ewer/pdfviewer?sid=84f69b1a-422d4330-9f40685372a8c29%40sessionmgr115&vi d=1&hid=108