Economics for Future Leaders
Lecture 3 - Principles of Leadership,
June 28, 2012
Creating a Vision
 An effective leader creates compelling
visions that guide people’s behavior.
 In the context of leadership, a vision
is a mental model of an ideal future
state.
The Characteristics of a Vision
 A picture (a future better than the status
quo).
 A change (a change in the status quo).
 Values (a linkage of one’s own values, the
values of others, and the organization’s
values).
 A map (a laid-out path to follow).
 A challenge (transcend status quo to do
something better for others).
Articulating a Vision
 Adapt the vision to his or her
audience.
 Highlight the values of the vision.
 Choose the right language (words
and symbols).
Implementing a Vision
 Model to others the attitudes, values,
and behaviors set forth in the vision.
 Set high performance expectations
for others.
 Encourage and empower others to
reach their goals.
Setting the Tone
 Provide structure.
 Communicate the group’s goals (course
syllabus, meeting agenda).
 Identify unique ways that each individual
member can contribute to the group.
 Clarify norms (shared rules of group
behavior).
 Develop constructive norms early in
group development.
Setting the Tone
 Build cohesiveness (the sense of “we-ness” in a
group.
 Positive outcomes.
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Increased participation.
Better interaction.
More consistent membership.
Positive feelings.
Improved attendance.
Mutual influence.
Conformity to group norms.
Goal-directed behavior.
High satisfaction.
More productivity.
Setting the Tone
 Build cohesiveness (how?).
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Help groups create a climate of trust.
Invite group members to become active participants.
Encourage passive or withdrawn members to become
involved.
Be willing to listen and accept group members for who they
are.
Help group members to achieve their individual goals.
Promote the free expression of divergent viewpoints in a
safe environment.
Allow group members to share the leadership
responsibilities.
Foster and promote member-to-member interaction
instead of just leader-follower interaction.
Setting the Tone
 Promote standards of excellence.
 Six factors.
 What group members need to know and what
skills they need to acquire.
 How much initiative and effort they need to
demonstrate.
 How group members are expected to treat one
another.
 The extent to which deadlines are significant.
 What goals they need to achieve.
 What the consequences are if they achieve or
fail to achieve these goals.
Setting the Tone
 Promote standards of excellence.
 How to achieve standards (the 3 Rs).
 Require results (clear, concrete
expectations).
 Review results (constructive feedback and
resolving performance issues).
 Reward results (provide rewards of group
and individual achievement).
Listening to Out-Group Members
 Out-group members are at odds in
some way with the larger group.
 Why do they form?
 Disagreement with the social, political, or
ethical position of the majority.
 Inability to identify with the beliefs,
norms, or values of the majority.
 Perceived exclusion by the majority.
 Lack of communication or social skills.
Listening to Out-Group Members
 What is the impact of out-groups?
 Run counter to the building of
community.
 Have a negative impact on group
synergy.
 Do not receive the respect they deserve
from the majority.
Listening to Out-Group Members
 Strategies for responding to out-groups.
 Listen to out-group members.
 Show empathy to out-group members.
 Recognize the unique contributions of out-group
members.
 Help out-group members feel included.
 Create a special relationship with out-group
members.
 Give out-group members a voice and empower
them to act.
Overcoming Obstacles
 Unclear goals.
 Make goals clear and understandable.
 Unclear directions.
 Define the path to the goal by giving clear
directions.
 Low motivation.
 Expectancy theory: the effort (competence) they
put into a task leads to an expected outcome
(achievable and likely to occur) that they value.
 Individuals should feel competent, get what they
expect, and value what they do.
 This will maximize motivation.
Overcoming Obstacles
 Complex tasks.
 Apply directive leadership – take charge and clarify
the path to the goal.
 Simple tasks.
 Apply supportive leadership – apply human
connection when task is boring and repetitive.
 Low involvement.
 Apply participative style – invite others to share in
the ways and means of getting things done.
 Lack of a challenge.
 Apply achievement-oriented style – challenge
individuals to perform at the highest level possible.
Ethics in Leadership
 The character of the leader (Nelson
Mandela versus Bill Clinton).
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Trustworthiness.
Respect.
Responsibility.
Fairness.
Caring.
Citizenship.
 The actions of the leader (Abu Ghraib)
 Show respect.
 Serve others.
 Show justice.
Ethics in Leadership
 Goals of the leader (Adolf Hitler, Al-Qaeda
terrorists, Mother Teresa).
 The goals reflect the ethics of a leader.
 Honesty of the leader.
 Power of the leader.
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Referent power (identification).
Expert power (competence).
Legitimate power (authority).
Reward power (transaction).
Coercive power (force or punishment).
Ethics in Leadership
 Values of the leader.
 Ethical values ([character] e.g.,
kindness, altruism).
 Modal values ([means or actions] e.g.,
responsibility and accountability).
 End values ([outcomes or goals] e.g.,
justice and community).
Summary of Leadership
Components
 Recognizing your traits [Traits].
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Intelligence
Confidence
Charisma
Determination
Sociability
Integrity
Summary of Leadership
Components
 Recognizing your philosophy and
style of leadership [Philosophy, Style]
 Philosophy
 Theory X
 Theory Y
 Style
 Authoritarian
 Democratic
 Laissez-Faire
Summary of Leadership
Components
 Attending to tasks and relationships
[Behaviors]
 Task-oriented style.
 Relationship-oriented style.
 Developing leadership skills [Skills]
 Administrative
 Interpersonal
 Conceptual
Summary of Leadership
Components
 Creating a vision [Vision]
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A picture
A change
Values
A map
A challenge
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Provide structure
Clarify norms
Build cohesiveness
Promote standards of excellence
 Setting the Tone [Tone]
Summary of Leadership
Components
 Listening to Out-Group Members
[Tolerance, Sensitivity]
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Listen
Show empathy
Recognize unique contributions
Help out-group feel included
Create special relationship
Give out-group a voice and power to act.
Summary of Leadership
Components
 Overcoming obstacles [Obstacles]
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Unclear goals
Unclear directions
Low motivation
Complex tasks
Simple tasks
Low involvement
Lack of a challenge
Summary of Leadership
Components
 Addressing ethics in leadership
[Ethics]
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Character
Actions
Goals
Honesty
Power
Values
Leadership Question #3
 One of the central responsibilities of a
leader is to help his or her followers
become motivated. This means
helping feel competent, helping them
meet their expectations, and helping
them value what they do. How would
you apply these three principles in a
leadership situation? Be specific.