16
Chapter
Managers as Leaders
Leaders in organizations make things happen. But w hat makes leaders different
from nonleaders? W hat is the m ost appropriate style of leadership? W hat can you
do to be seen as a leader? Those are just a few of the questions w e will try to
answer in this chapter. Focus on the following learning outcomes as you read and
study this chapter.
LEARNING
OUTCOMES
386
6.1
Define leaders and leadership.
page 388
6.2
Describe historical leadership in the Arab world.
page 389
6.3
Compare and contrast early theories of leadership.
page 391
6.4
Describe the three major contingency theories of
leadership.
page 395
6.5
Describe contemporary views of leadership.
page 399
6.6
Discuss tw enty-first-century issues affecting
leadership.
page 401
Meet the Managers
M on a f3aw a rshi
CEO, Al-GezairiTransport, Beirut, Lebanon
WHAT IS YOUR JOB? Doing a lot o f m anagement o f people to enable
forw arding o f cargo to happen. I [handle] the logistics o f people w ho do
the logistics of cargo, packing, storage and transport.
WHAT IS THE BEST PART OF YOUR JOB? People.
WHAT IS THE WORST PART OF YOUR JOB? People.
WHAT IS THE BEST MANAGEMENT ADVICE YOU HAVE RECEIVED?
Listen to your gut feeling as a push forward in your decision.
Z o u h a ir Eloudghiri
CEO of Foods Sector, Savola Group, Saudi Arabia
WHAT IS YOUR JOB? Leading six edible oils business units across the Middle
East region, w ith six manufacturing plants, a turnover of US$1.5 billion, and profit
o f US$160 m illion.
WHAT IS THE BEST PART OF YOUR JOB? Coaching executives to innovate
fo r the consumer and optimize costs to deliver best value.
WHAT IS THE WORST PART OF YOUR JOB? Making the tough decisions
about non-perform ing executives w ho are asked to go find a better fit to
th e ir skills.
WHAT IS THE BEST MANAGEMENT ADVICE YOU HAVE RECEIVED? Hire the best, coach
them , and delegate the m axim um to them.
You will be hearing more from these real
managers throughout the chapter.
387
388
P a r t F o u r Leading
A Manager's
Dilemma
Leading by Example
HCL Technologies is headquartered in the w orld's largest dem ocracy, so it
is quite fitting that th e N e w Delhi-based co m p an y is attem pting a radical
experim ent in w orkplace dem ocracy.1 CEO Vineet N ayar is com m itted
to creating a co m p an y w h e re th e job of com pany
leaders is to enable people to find th eir ow n destiny
by gravitating to th eir strengths. A lthough he believes
th at th e com m and-and-control dictatorship approach
is the easiest m a n a g e m e n t style, he also thinks it is
not th e m ost productive. In his corporate dem ocracy,
em ployees can w rite a "tro u ble ticket" on anyone
in the com pany. A nyone w ith tro u ble tickets has
to respond, just as if he or she w ere dealing w ith
a custom er w h o had problem s and needed som e
response. N ayar also believes that leaders should
be open to criticism. He volunteered to share the
weaknesses fro m his 360-d eg ree feedback fo r all
em ployees to see. A lthough a lot of people said he w as
crazy to com m unicate his weaknesses, N ayar believed
th at it w as a good w a y to increase his accountability
as a leader to his em ployees. Such an en viron m ent
requires a lot o f trust betw een leaders and follow ers.
H o w can N ayar continue to build th at trust?
V in e et N a ya r is a good ex am p le of w h a t it takes to be a leader in today's
organizations. He has created an en viro n m e n t in w hich em plo yees feel like
th ey are heard and trusted. H o w ever, it is im p ortan t that he continues to
n urture this culture a n d be seen as an effective leader. W h y is leadership so
im portant? Because the leaders in organizations m ake things happen.
Im a g in e yo u w e re th e CEO in a w o rkp lace dem ocracy.
W h a t would you do?
LEARNING
o u t c o m e
1 6 .1
> W H O ARE LEADERS, AND W HAT IS LEADERSHIP?
Let’s begin by clarifying who leaders are and what leadership is. O ur definition o f
a leader is som eone who can influence others and who has managerial authority.
Leadership is what leaders do. It is the process o f leading a group and influencing that
group to achieve its goals.
Are all managers leaders? Because leading is one o f the four management func­
tions, ideally all managers should be leaders. Thus, we are going to study leaders and
leadership from a managerial perspective.2 However, even though we are looking at
these from a managerial perspective, we are aware that informal leaders often emerge
in groups. Although these informal leaders may be able to influence others, they have
n ot been the focus o f most leadership research and are n ot the types o f leaders we are
studying in this chapter.
Leaders and leadership, like m otivation, are organizational behavior topics
that have been researched a lot. M ost o f that research has been aim ed at answering
Chapter Sixteen M anagers as Leaders
389
the qu estion , “W hat is an effective lea d er?” We will b eg in ou r study o f leader­
ship by look in g at som e early leadership theories that attem pted to answer that
question.
QUICK LEARNING REVIEW:
L E A R N IN G O U T C O M E
•
1 6 .1
D efin e lea d e r and leadership.
•
Explain w h y m a n a g e rs should be leaders.
----------------------------------------------------------- Go to page 4 0 9 to see how well you know th is material.
LEARNING
o u t c o m e
1 6 .2
> HISTORICAL LEADERSHIP IN THE ARAB WORLD
IBN KHALDUN CONCEPTION OF LEADERSHIP
A cco rd in g to Islamic teachings, a leader is a person who has the attributes o f
honesty, com petence, inspiration, humility, patience, and seeks consultation from
others.3 They d o acknowledge that leaders who have all o f these attributes are rare,4
but this represents an ideal that leaders, in politics or in business, should strive
to achieve. Likewise, leading monks in Christian monasteries in M ount L ebanon
would undoubtedly require exceptional leaders.
Aside from the religious c o n ce p tio n o f leaders, leadership - as a social
phenom enon - has a long history in the Arab world. Ibn Khaldun was probably the
first to specify what leadership is and how it is form ed.5 Although he was mainly inter­
ested in political leadership, his conceptualization is im portant for understanding
leadership in any context, business or non-business, especially in this region o f the
world. Ibn Khaldun was born in Tunis in the year 1332. His life was characterized
by significant (although mostly not successful) political undertaking and intellectual
enterprise. After being imprisoned for two years, he secluded himself in a fortress and
started writing his version o f the history o f the world. H e finished his most important
book, the Muqaddimah (Prolegom ena or the Introduction), in the year 1377. In the
Muqaddimah, Ibn Khaldun emphasizes the personal qualities o f the leader. He calls
those qualities “perfecting details.” Such qualities include generosity, forgiveness o f
error, patience and perseverance, hospitality toward guests, maintenance o f the indi­
gent, patience in unpleasant situations, execution o f commitments, respect for the
religious law, reverence for old men and teachers, fairness, meekness, consideration
to the needs o f followers, adherence to the obligations o f religious laws, and avoidance
o f deception and fraud. G ood leadership, according to Ibn Khaldun, requires kind­
ness to, and protection of, subjects. He emphasizes the need o f the leader to be mild
to his followers and to gain their love. He notes, probably surprisingly, that a leader
should not be too shrewd. This is the case because such a quality would distance him
from his subjects.6
THE ROLE OF ASABIYA
Many leaders fail, in Ibn K haldun’s op in ion , because o f their inability to under­
stand the significance o f asabiya (”group feelin g ” or “group b o n d ”). Asabiya stems
from b lo o d ties and alliances, with the form er having the m ost weight in fostering
the leadership bond. While b lo o d ties may be discounted in the West as a source
o f leadership, o n e can only review recen t organizational history in the M iddle
East and N orth Africa to see how m uch b lo o d ties are instrumental in leadership
Leader
Leadership
A person w h o can influence others and w h o has
m anagerial authority.
A process o f influ encing a g ro u p to achieve goals.
390
P a r t F o u r Leading
Exhibit 16-1
S ocial O rig in s
■
L e adership C lim a te
Khadra’s Model of
Leadership
Source: Bashir Khadra, 1990,
"The Prophetic-Caliphal Model
o f Leadership: An Empirical
S tu d y," In te rn a tion a l Studies o f
M a nagem ent & Organization,
20, (3), 37-51
Prophetic Model
Lack of
institutionalism
!
Individualism_|
Caliphal Model
em ergence. In recent M iddle Eastern societies, leadership em ergence is sometimes
greatly aided by descent. This is the case in political situations and also in business
organizations.
THE PROPHETIC-CALIPHAL MODEL OF LEADERSHIP
Addressing leadership in Arab contexts, several authors have noted the tribal con cep­
tion o f leadership that seems to typify many Arab organizations.7 The “sheikh” is not
necessarily the autocratic leader to whom everybody listens. O n the contrary, he is a
person who continuously seeks the advice o f his followers and interacts with them.
These interactions signify what is termed “shiekhocracy.”8
O n e o f the relevant models for leadership in Arab contexts is the one put forward
by Bashir Khadra, who proposed a prophetic-caliphal m odel o f leadership in the Arab
world (Exhibit 16 -1). This m odel consists o f four elements: (1) personalism, (2) indi­
vidualism, (3) lack o f institutionalization, and (4) the importance o f the great man.
Personalism, refers to the egocentric view that a person has in relation to others. It refers
to the degree that a person insists on his personal opinion and the degree o f concern
and emphasis he has on himself. Individualism means making decisions or actions that
do not take into account the opinions o f the group. The com bination o f personalism
and individualism leads to a lack o f institutional development. Leadership is thus more
vested in the person, rather than being vested in an institution. In cases o f conflict or
succession, there is n o institution to fill the vacuum. The vacuum is alternatively filled
by an expectation o f the “great m an.” If the expected great man really turns out to be
a great man, then we have a “prophetic” type o f leader whose relationship with follow­
ers depends on love and compassion and voluntary com pliance. If on the other hand,
the expected great man turns out to be an “ordinary m an” then the only way to ensure
follower com pliance is through coercion and authoritarianism.
QUICK LEARNING REVIEW:
L E A R N IN G O U T C O M E
•
•
1 6 .2
U n d ers tan d in g leadersh ip fro m an A rab perspective.
Describe th e concept o f asabiya.
•
Explain th e p ro ph etic-calip h al leadersh ip m o d el.
----------------------------------------------------------- Go to page 4 0 9 to see how well you know th is material.
Chapter Sixteen M anagers as Leaders
391
LEARNING
O UTCO M E
16.3 > EARLY LEADERSHIPTHEORIES
P eople have b een interested in leadership since they started com in g together in
groups to accom plish goals. The twentieth century witnessed a growing interest in
the study o f leadership. These early leadership theories focused on the leader (trait
theories) and how the leader interacted with his or her group members (behavioral
theories).
TRAIT THEORIES
Jamal A bdel Nasser was Prime Minister and then President o f Egypt from 1954 to
1970. During his lifetime, his leadership qualities earned him many dedicated followers.
Those who adm ired him believed that his magnetism, confidence, ability to com m uni­
cate, and “presence” made him a great leader. The trait theories o f leadership would
consider his leadership by focusing on these traits.
Leadership research in the 1920s and 1930s focu sed on isolating leader traits,
that is, characteristics that would differentiate leaders from nonleaders. Som e o f the
traits studied included physical stature, appearance, social class, em otional stability,
fluency o f speech, and sociability. Despite the best efforts o f researchers, it proved
impossible to identify a set o f traits that would always differentiate a leader (the person)
from a nonleader. Maybe it was a bit optimistic to think that there could be consis­
tent and unique traits that would apply universally to all effective leaders, n o mat­
ter whether they were in charge o f Toyota M otor C orporation, O rascom Telecom
in Egypt, the King Abdullah E conom ic City in Saudi Arabia, the emirate o f Dubai, a
local sports club, or Cairo University. However, later attempts to identify traits consis­
tently associated with leadership (the process, n ot the person) were m ore successful.
T he seven traits shown to be associated with effective leadership are described briefly
in Exhibit 16-2.9
Researchers eventually recognized that traits alone were not sufficient for identi­
fying effective leaders because explanations based solely on traits ignored the inter­
actions o f leaders and their group members as well as situational factors. Possessing
the appropriate traits only made it m ore likely that an individual would be an effec­
tive leader. T h erefore, leadership research from the late 1940s to the mid-1960s
Exhibit 16-2
Seven Traits Associated
with Leadership
1. D rive. Leaders exhibit a high effort level. They have a relatively high desire for achievement,
they are ambitious, they have a lot of energy, they are tirelessly persistent in their activities,
and they show initiative.
2. Desire to lead. Leaders have a strong desire to influence and lead others. They demonstrate
the willingness to take responsibility.
3. H o n e s ty a n d in te g rity . Leaders build trusting relationships w ith followers by being truthful
or nondeceitful and by showing high consistency between w ord and deed.
4. S elf-co nfid en ce. Followers look to leaders for an absence of self-doubt. Leaders, therefore,
need to show self-confidence in order to convince followers of the rightness of their goals
and decisions.
5. In te llig e n c e . Leaders need to be intelligent enough to gather, synthesize, and interpret
large amounts of inform ation, and they need to be able to create visions, solve problems,
and make correct decisions.
6. J o b -re le v a n t kn o w le d g e . Effective leaders have a high degree of knowledge about the
com pany, industry, and technical matters. In-depth know ledge allows leaders to make
w ell-inform ed decisions and to understand the implications of those decisions.
7. E xtra ve rsio n . Leaders are energetic, lively people. They are sociable, assertive, and rarely
silent or w ithdraw n.
Sources: S. A. Kirkpatrick and E. A. Locke, "Leadership: Do Traits Really M atter?" A ca d em y o f M a na g e m en t Executive, May
1991, pp. 48-60; and T A. Judge, J. E. Bono, R. Ilies, and M. W. G erhardt, "P erso n a lity and Leadership: A Q u alititative
and Q uantitative R eview " J o urn a l o f A p p lie d Psychology, A ugust 2002, pp. 765-780.
392
P a r t F o u r Leading
concentrated on the preferred behavioral styles that leaders demonstrated. Researchers
w ondered whether there was something unique in what effective leaders did - in other
words, in their behavior.
BEHAVIOR THEORIES
Mutasim Mahmassani is the general m anager o f Al Baraka Bank in L ebanon. H e
is an ardent believer in teamwork, arguing that “ [t]h e institution cann ot survive
o n individual efforts but collective ones, p rov id ed individual achievem ents are
prop erly re co g n iz e d .”10 Mahmassani encourages em ployees’ participation, h elp ­
ing them realize their full potential. His on-the-job behavior mim ics his beliefs:
he is considerate, pleasant, and friendly, while n ot com prom ising on effectiveness.
Contrast this style with the style o f another m anager described as “blunt, sarcastic,
tactless, and tou g h .” W hat would the im pact be on the followers o f each o f these
two leaders?
Researchers h op ed that the behavioral theories approach would provide m ore
definitive answers about the nature o f leadership than the trait theories. The four
main leader behavior studies are summarized in Exhibit 16-3.
U niversity of Io w a studies. The University o f Iowa Studies, con d u cted in the United
States, explored three leadership styles to find which was the m ost effective.11 The
autocratic style described a leader who dictated work m ethods, m ade unilateral
decisions, and lim ited em ployee participation. T he democratic style described a
Exhibit 16-3
Behavioral Theories
of Leadership
University of lowa
Behavioral Dimension
Conclusion
D e m o cra tic style : involving
subordinates, delegating
authority, and encouraging
participation
Democratic style of leadership
was most effective, although
later studies showed mixed
results.
A u to c ra tic sty le : dictating work
methods, centralizing decision
making, and limiting
participation
Laissez-faire sty le : giving group
freedom to make decisions
and com plete w ork
Ohio State
C o n sid e ra tio n : being
considerate of followers'
ideas and feelings
In itia tin g s tru c tu re : structuring
w ork and w ork relationships
to meet job goals
University of Michigan
E m p lo y e e o rie n te d : em phasized
interpersonal relationships
and taking care of em ployees'
needs
High-high leader (high in
consideration and high in
initiating structure) achieved
high subordinate perform ance
and satisfaction, but not in all
situations
Em ployee-oriented leaders
w ere associated w ith high
group productivity and
higher job satisfaction.
P ro d u ctio n o rie n te d : emphasized
technical or task aspects of job
Managerial Grid
Concern fo r p e o p le : measured
leader's concern for
subordinates on a scale
of 1 to 9 (low to high)
Concern fo r p ro d u c tio n :
measured leader's concern
for getting job done on a
scale 1 to 9 (low to high)
Leaders perform ed best with
a 9.9 style (high concern for
production and high concern
for people).
Chapter Sixteen M anagers as Leaders
Meet the Managers
W HAT TRAITS SHOULD
LEADERS HAVE?
They should be do-ers,
not procrastinators.
Leadership is
action, not
a position.
Leaders should have Integrity,
intelligence, energy, and
em powerment.
393
leader who involved em ployees in decision making, delegated authority, and used
feedba ck as an opportunity fo r coach ing employees. Finally, the laissez-faire style
described a leader w ho let the grou p make decisions and com p lete the work in
whatever way it saw fit. The researchers’ results seem ed to indicate that the d em o­
cratic style contributed to both g o o d quantity and quality o f work. H ad the answer
to the question o f the m ost effective leadership style been fou n d? Unfortunately,
it was n ot that simple. Later studies o f the autocratic and dem ocratic style showed
m ixed results. For instance, the dem ocratic style sometimes p rod u ced higher per­
form an ce levels than the autocratic style, but at other times, it did not. However,
m ore consistent results were fou n d when a measure o f em ployee satisfaction was
used. G roup m em bers were m ore satisfied under a dem ocratic leader than under
an autocratic o n e .12
Now leaders had a dilemma! Should they focus on achieving higher perform ance
or on achieving higher m em ber satisfaction? This recognition o f the dual nature o f a
leader’s behavior, that is, the need to focus on the task and also focus on the people,
was a key factor in other behavioral studies, too.
The Ohio State studies. The O h io State University studies, also conducted in the United
States, identified two im portant dimensions o f leader behavior.13 Beginning with a
list o f m ore than 1,000 behavioral dimensions, the researchers eventually narrowed
it down to just two that accounted for most o f the leadership behavior described by
group members. The first dimension, called initiating structure, referred to the extent
to which a leader defined his or her role, and the roles o f group members, in attain­
ing goals. It included behaviors that involved attempts to organize work, work rela­
tionships, and goals. The second dimension, called consideration, was defined as the
extent to which a leader had work relationships characterized by mutual trust and
respect for group mem bers’ ideas and feelings. A leader who was high in consideration
helped group members with personal problems, was friendly and approachable, and
treated all group members as equals. He or she showed concern for (was considerate
of) his or her followers’ com fort, well-being, status, and satisfaction. Research found
that a leader who was high in both initiating structure and consideration (a high-high
leader) sometimes achieved high group task perform ance and high group m em ber
satisfaction, but n ot always.
University of M ichigan studies. Leadership studies conducted in the United States at the
University o f Michigan, at about the same time as those being done at O hio State, also
h oped to identify behavioral characteristic o f leaders that were related to perform ance
effectiveness. The Michigan group also came up with two dimensions o f leadership
behavior, which they labeled employee oriented and production oriented}4 Leaders who
were em ployee oriented were described as emphasizing interpersonal relationships.
T he production-oriented leaders, in contrast, tended to emphasize the task aspects
o f the jo b . Unlike the other studies, the Michigan studies concluded that leaders who
were em ployee oriented were able to get high group productivity and high group
m em ber satisfaction.
B ehavioral th eo ries
D em ocratic style
In itia tin g structure
Leadership theories th a t id e n tify behaviors th a t
d iffe re n tia te effective leaders from ineffective leaders.
A leader w h o involves em ployees in decision m aking,
delegates au th ority, and uses feed back as an o p p o rtu n ity
fo r co aching em ployees.
The exte nt to w h ich a leader defines his or her role
and the roles o f g ro u p m em bers in a tta in in g goals.
A u to cra tic style
A leader w h o dictates w o rk m ethods, makes unilateral
decisions, and lim its em ployee pa rticip a tio n .
Laissez-faire style
A leader w h o lets the group m ake decisions and
co m p le te the w o rk in w h a te v e r w a y it sees fit.
C onsideration
The exte nt to w h ich a leader has w o rk relationships
characterized by m utual tru s t and respect fo r group
m em bers' ideas and feelings.
H igh-high le ad e r
A leader high in bo th in itia tin g structure
and consideration behaviors.
394
P a r t F o u r Leading
Exhibit 16-4
The Managerial Grid
Country Club
Management
Team
Management
T h o u g h tfu l a tte n tio n
to needs o f p e o ple fo r
s a tis fy in g re la tio n s h ip
leads to a c o m fo rta b le ,
frie n d ly o rg a n iza tio n
a tm o s p h e re and
w o rk te m p o .
High
9
W o rk a cco m p lish e d
is fro m c o m m itte d p eople;
in te rd e p e n d e n ce th ro u g h
a "c o m m o n stake" in
o rg a n iza tio n p u rp o se
leads to re la tio n s h ip s
o f tru s t and respect.
9,9
1,9
8
7
Middle-of-the-Road
Management
6
A d e q u a te o rg a n iz a tio n
p e rfo rm a n c e is p o ssib le
th ro u g h b a la n cin g th e
n e ce ssity to g e t o u t
w o rk w ith m a in ta in in g
m o ra le o f p e o ple at a
s a tis fa c to ry level.
5,5
5
4
3
2
Low
1
9,1
1,1
Task
Management
Impoverished
Management
E xe rtio n o f m in im u m
e ffo rt to g e t req u ire d
w o rk d o n e is
a p p ro p ria te to
su sta in o rg a n iza tio n
m e m b e rsh ip .
Concern for Production
Low
High
E fficie n cy in o p e ra tio n s
resu lts fro m a rra n g in g
c o n d itio n s o f w o rk in such
a w a y th a t h u m a n e le m e n ts
in te rfe re to a m in im u m
degree.
Sources: reprinted by perm ission o f H arvard Business Review. An e xh ib it fro m "B reakthrough in Organization D evelopm ent" by the
President and Fellows o f Harvard College. A ll rights reserved.
The M anagerial Grid. The behavioral dimensions from the early leadership studies pro­
vided the basis for the developm ent o f a two-dimensional grid for appraising leadership
styles. The managerial grid used the behavioral dimensions “concern for peop le” and
“concern for production” and evaluated a leader’s use o f these behaviors, ranking them
on a scale from 1 (low) to 9 (h igh ).15 Although the grid (shown in Exhibit 16-4) had
81 potential categories into which a leader’s behavioral style might fall, only five styles
were named: impoverished management (1,1), task management (9,1), middle-of-theroad management (5,5), country club management (1,9), and team management (9,9).
O f these five styles, the researchers concluded that managers perform ed best when
using a 9,9 style. Unfortunately, the grid offered n o explanations about what made a
manger an effective leader; it only provided a framework for conceptualizing leader­
ship style. In fact, there is little substantive evidence to support the conclusion that a 9,9
style is most effective in all situations.16
Leadership researchers were discovering that predicating leadership success
involved som ething m ore com plex than isolating a few leader traits or preferable
behaviors. They began looking at situational influences. Specifically, which leader­
ship styles m ight be suitable in different situations, and what were these different
situations?
Chapter Sixteen M anagers as Leaders
395
QUICK LEARNING REVIEW:
L E A R N IN G O U T C O M E
•
•
1 6 .3
Discuss w h a t research has show n ab o ut
lead ersh ip traits.
Contrast th e fin d in g o f th e fo u r b eh avio ral leadersh ip
th eo ries.
•
Explain th e dual n atu re o f a leader's behavior.
------------------------------------------------------------ Go to page 410 to see how well you know th is material.
LEARNING
o u t c o m e
1 6 .4
> CONTINGENCY THEORIES OF LEADERSHIP
“The corporate world is filled with stories o f leaders who failed to achieve greatness
because they failed to understand the context they were working in.”17 In this section,
we examine three contingency theories: the Fiedler model, Hersey and Blanchard’s situ­
ational leadership theory, and path-goal theory. Each o f these theories looks at defining
leadership style and the situation, and it attempts to answer the if-then contingencies
(that is, if this is the context or situation, then this is the best leadership style to use).
THE FIEDLER MODEL
The first com prehensive contingency m odel for leadership was developed by Fred
Fiedler.18 The Fiedler contingency model proposed that effective group perform ance
depended on properly matching the leader’s style and the am ount o f control and
influence in the situation. The m odel was based on the premise that a certain lead­
ership style would be m ost effective in different types o f situations. The keys were
to (1) define those leadership styles and the different types o f situations and then
(2) identify the appropriate combinations o f style and situation.
Fiedler proposed that a key factor in leadership success was an individual’s basic
leadership style, either task oriented or relationship oriented. Fiedler assumed that a
person’s leadership style was fixed, regardless o f the situation. In other words, if you
were a relationship-oriented leader, you would always be one, and if you were a taskoriented leader, you would always be one.
Fiedler’s research uncovered three contingency dimensions that defined the key
situational factors in leader effectiveness:
• Leader-member relations: the degree o f confidence, trust, and respect employees
had for their leader, rated as either g o od or poor.
• Task structure: the degree to which jo b assignments were formalized and structured,
rated as either high or low.
• Position power: The degree o f influence a leader had over activities such as hiring,
firing, discipline, prom otions, and salary increases, rated as either strong or weak.
Each leadership situation was evaluated in terms o f these three contingency vari­
ables, which when com bined produced eight possible situations that were either favor­
able or unfavorable for the leader (see the bottom o f Exhibit 16-5). Situations I, II,
and III were classified as highly favorable for the leader. Situations IV, V, and VI were
moderately favorable for the leader. A nd situations VII and VIII were described as
highly unfavorable for the leader.
O nce Fiedler had described the leader variables and the situational variables, he
had everything he needed to define the specific contingencies for leadership effec­
tiveness. He concluded that task-oriented leaders perform ed better in very favorable
M a n ag erial grid
Fiedler contingency m odel
A tw o -d im e n sio n a l grid fo r appraising leadership styles.
A leadership theo ry th a t proposed th a t effective group
perform ance depended on th e proper m atch betw een
a leader's style and th e degree to w h ich th e situ a tio n
allo w e d th e leader to co ntrol and influence.
396
P a r t F o u r Leading
Exhibit 16—5
The Fiedler Model
Task
Oriented
Relationship
Oriented
S itu a tio n F avorableness:
H ig h ly F avorable
M od e ra te
H ig h ly U n fa vo ra b le
*
Category
Leader-Member
Relations
I
II
III
IV
V
VI
VII
VIII
G ood
G ood
G ood
G ood
Poor
Poor
Poor
Poor
Task Structure
High
High
Low
Lo w
High
High
Low
Low
Position Power
S tro n g
W eak
S tro n g
W eak
S tro n g
W eak
S tro n g
W eak
situations and in very unfavorable situations. (See the top o f Exhibit 16-5, where per­
form ance is shown on the vertical axis and situation favorableness is shown on the
horizontal axis). O n the other hand, relationship-oriented leaders perform ed better
in moderately favorable situations.
Because Fiedler treated an individual’s leadership style as fixed, there were only two
ways to improve leader effectiveness. First, you could bring in a new leader whose style
better fits the situation. For instance, if the group situation was highly unfavorable but
was led by a relationship-oriented leader, the group’s perform ance could be improved by
replacing that person with a task-oriented leader. The second alternative was to change
the situation to fit the leader. This could be done by restructuring tasks, by increasing or
decreasing the power that the leader had over factors such as salary increases, prom o­
tions, and disciplinary actions, or by improving the leader-member relations.
Research testing the overall validity o f Fiedler’s m odel has shown considerable
evidence in support o f the m odel.19 However, his theory was n ot without criticisms.
The m ajor criticism is that it is probably unrealistic to assume that a person cannot
change his or her leadership style to fit the situation. Effective leaders can, and do,
change their styles. Finally, the situation variables were difficult to assess.20 Despite
its shortcomings, the Fiedler m odel showed that effective leadership style needed to
reflect situational factors.
HERSEY AND BLANCHARD'S SITUATIONAL LEADERSHIP THEORY
Paul Hersey and Ken Blanchard developed a leadership theory that has gained a
strong follow ing am ong m anagem ent developm ent specialists.21 This m odel, called
Situational Leadership Theory (SLT), is a contingency theory that focuses on followers’
readiness. Before we proceed, there are two points we need to clarify: why a leadership
theory focuses on the followers and what is meant by the term readiness.
The emphasis on the followers in leadership effectiveness reflects the reality that
it is the followers who accept or reject the leader. Regardless o f what the leader does,
the g ro u p ’s effectiveness depends on the actions o f the followers. This is an im por­
tant dim ension that most leadership theories have overlooked or underemphasized.
Readiness, as defined by Hersey and Blanchard, refers to the extent to which people
have the ability and willingness to accom plish a specific task.
Chapter Sixteen M anagers as Leaders
397
SLT uses the same two leadership dimensions that Fiedler identified: task and rela­
tionship behavior. However, Hersey and Blanchard go a step further by considering each
as either high or low and then combining them into four specific leadership styles:
• Telling (high task-low relationship): The leader defines roles and tells peop le what,
how, when, and where to do various tasks.
• Selling (high task-high relationship): The leader provides both directive and sup­
portive behavior.
• Participating (low task-high relationship): The leader and the followers share in
decision making, the main role o f the leader is facilitating and communicating.
• Delegating (low task-low relationship): The leader provides little direction or support.
The final com pon en t in the SLT m odel is the four stages o f follower readiness:
• R1— People are both unable and unwilling to take responsibility for doing som e­
thing. Followers are n ot com petent or confident.
• R2— People are unable but willing to do the necessary jo b tasks. Followers are m oti­
vated but lack the appropriate skills.
• R3— People are able but unwilling to d o what the leader wants. Followers are com ­
petent but d o not want to d o something.
• R4— People are both able and willing to d o what is asked o f them.
SLT essentially views the lea d er-follow er relationship as like that o f a parent
and a child. Just as a parent needs to relinquish con trol when a child becom es m ore
mature and responsible, so, too, should leaders. As followers reach higher levels o f
readiness, the leader responds n ot only by decreasing control over their activities
but also by decreasing relationship behaviors. The SLT says if follow ers are at R1
(unable and unwilling to d o a task), the leader needs to use the telling style and give
clear and specific directions. If followers are at R2 (unable and willing), the leader
needs to use the selling style and display high task orientation to com pensate for
the follow ers’ lack o f ability, and high relationship orientation to get followers to
“buy in to” the leaders desires. If followers are at R3 (able and unwilling), the leader
needs to use the participating style to gain their support, and if em ployees are at R4
(both able and willing), the leader does n ot need to d o m uch and should use the
delegating style.
SLT has intuitive appeal. It acknow ledges the im p ortan ce o f follow ers and
builds on the logic that leaders can com pensate fo r ability and motivational limita­
tions in their followers. However, research efforts to test and support the theory
have generally been disappointing.22 Possible explanations include internal in con ­
sistencies in the m od el as well as problem s with research m ethodology. Despite its
appeal and wide popularity, we have to be cautious about any enthusiastic endorse­
ments o f SLT.
PATH-GOAL THEORY
Currently, one o f the most respected approaches to understanding leadership is pathgoal theory, which states that the leader’s jo b is to assist followers in attaining their
goals and to provide direction or support to ensure that their goals are compatible
with the goals o f the group or organization. D eveloped by Robert House, path-goal
theory takes key elements from the expectancy theory o f m otivation.23 The term
L e a d e r-m e m b e r relations
S itu a tio n a l leadership th e o ry (SLT)
P a th -g o a lth e o r y
One o f Fiedler's situ a tio n a l contingencies th a t described
th e degree o f confidence, trust, and respect em ployees
had fo r th e ir leader.
A leadership co ntin gency th e o ry th a t focuses
on fo llo w e rs ' readiness.
A leadership th e o ry th a t says the leader's jo b is to assist
fo llo w e rs in a tta in in g th e ir goals and to provide dire ctio n
or su pport needed to ensure th a t th e ir goals are
co m p a tib le w ith th e goals o f th e g ro u p o r organ izatio n.
Readiness
The exte nt to w h ich people have th e a b ility and
w illin g n e ss to accom plish a specific task.
398
P a r t F o u r Leading
path-goal is derived from the belief that effective leaders clarify the path to help their
followers get from where they are to the achievement o f their work goals, and make
the jou rn ey along the path easier by reducing roadblocks and pitfalls.
House identified four leadership behaviors:
• Directive leader: The leader lets subordinates know what is expected o f them, sched­
ules work to be done, and gives specific guidance on how to accom plish tasks.
• Supportive leader: The leader shows con cern fo r the needs o f follow ers and is
friendly.
• Participative leader: The leader consults with group members and uses their sugges­
tions before making a decision.
• Achievement-oriented leader: The leader sets challenging goals and expects followers
to perform at their highest level.
In contrast to Fiedler’s view that a leader could n ot change his or her behavior,
H ouse assumed that leaders are flexible and can display any or all o f these leadership
styles depending on the situation (Exhibit 16-6).
As Exhibit 16-6 illustrates, path-goal theory proposes two situational or contin­
gency variables that m oderate the leadership behavior-outcom e relationship: those
in the environm ent that are outside the control o f the follower (factors including task
structure, form al authority system, and the work group) and those that are part o f
the personal characteristics o f the follow er (including locus o f control, experience,
and perceived ability). Environmental factors determine the type o f leader behavior
required if subordinate outcom es are to be maximized; personal characteristics o f the
follow er determine how the environm ent and leader behavior are interpreted. The
theory proposes that a leader’s behavior will n ot be effective if it is redundant with
what the environmental structure is providing, or is incongruent with follow er char­
acteristics. For example, the following are some predictions from path-goal theory:
• Directive leadership leads to greater satisfaction when tasks are ambiguous or stress­
ful than when they are highly structured and well laid out. The followers are not
sure what to do, so the leader needs to give them some direction.
• Supportive leadership results in high employee perform ance and satisfaction when
subordinates are perform ing structured tasks. In this situation, the leader only needs
to support followers, not tell them what to do.
Exhibit 16-6
Path—Goal Model
Chapter Sixteen M anagers as Leaders
399
• Directive leadership is likely to be perceived as redundant am ong subordinates with
high perceived ability or with considerable experience. These followers are quite
capable, so they do n ot need a leader to tell them what to do.
• The clearer and m ore bureaucratic the form al authority relationships, the m ore
leaders should exhibit supportive behavior and de-emphasize directive behavior.
The organizational situation has provided the structure as far as what is expected o f
followers, so the leader’s role is simply to support.
• Directive leadership will foster higher em ployee satisfaction when there is substan­
tive conflict within a work group. In this situation, the followers need a leader who
will take charge.
• Subordinates with an internal locus o f control will be m ore satisfied with a participa­
tive style. Because these followers believe that they control what happens to them,
they prefer to participate in decisions.
• Subordinates with an external locus o f control will be m ore satisfied with a directive
style. These followers believe that what happens to them is a result o f the external
environment, so they would prefer a leader who tells them what to do.
• Achievement-oriented leadership will increase subordinates’ expectations that effort
will lead to high perform ance when tasks are ambiguously structured. By setting
challenging goals, followers know what the expectations are.
Research on the path-goal m odel is generally encouraging. A lthough n ot every
study has fou n d support fo r the m odel, the majority o f the evidence supports the
logic underlying the theory.24 In summary, an em ployee’s perform ance and satisfac­
tion are likely to be positively influenced when a leader chooses a leadership style that
compensates for shortcomings in either the employee or the work setting. However, if
a leader spends time explaining tasks that are already clear or when an employee has
the ability and experience to handle tasks without interference, the employee is likely
to see such directive behavior as redundant or even insulting.
QUICK LEARNING REVIEW:
L E A R N IN G O U T C O M E
•
•
1 6 .4
Explain Fiedler's co n tin g en cy m o d el o f leadersh ip.
D escribe situational leadersh ip theory.
•
Discuss h o w p a th -g o a l th e o ry explain s leadersh ip.
------------------------------------------------------------- Go to page 410 to see how well you know th is material.
LEARNING
o u t c o m e s
1 6 .5
> CONTEMPORARY VIEWS OF LEADERSHIP
What are the latest views o f leadership? There are two we want to look at: transforma­
tional-transactional leadership and team leadership.
TRANSFORMATIONAL-TRANSACTIONAL LEADERSHIP
Many early leadership theories viewed leaders as transactional leaders, that is, lead­
ers w ho led prim arily by using social exchanges (or transactions). Transactional
leaders guide or motivate followers to work toward established goals by exchanging
Task structure
Transactional leaders
One o f Fiedler's situ a tio n a l contingencies th a t described
th e degree to w h ich jo b assignm ents w e re form a lized
and structured.
Leaders w h o lead p rim a rily by using social
exchanges (o r transactions).
400
P a r t F o u r Leading
"I w ant to create som ething interesting
and n o t be re p e titive ," says Esam Janahi.
.As chairm an o f G u lf Finance House (GFH),
an Islam ic investm ent bank, Janahi plays a
key role in one o f the reg io n's m o st p o w e rfu l
establishm ents. His leadership seem s to
be innate. "I started to lo o k at things in a
diffe re n t w ay to o th e rs," he says. "O thers
w ill tell you, 'it can't happen, it w o n 't happen,
it's too d iffic u lt'. . . " Janahi is the type o f
leader w ho is alw ays on the lo oko ut fo r new
opportunities, n o t hesitating to take risks
where necessary. 26
Meet the Managers
W HAT MAKES A GOOD BUSINESS
LEADER?
A person w h o balances
long- and short-term
stakeholder needs
w hile delivering
sustainable
value to all.
Someone w ith a
vision of the future
and an insight
into people.
rewards fo r their productivity.25 But there is another type o f leader, a transforma­
tional leader, who stimulates and inspires (transforms) followers to achieve extraor­
dinary outcom es. Transformational leaders are charismatic leaders. A charismatic
leader is an enthusiastic and self-confident leader whose personality and actions influ­
ence p eop le to behave in certain ways. But transformational leadership goes beyond
ju st bein g charismatic. Transform ational leaders are perceived by their followers
to be inspirational, with the ability to intellectually stimulate them. C ontem porary
business examples in the Arab world would include Esam Janahi, chairman, o f Gulf
Finance H ouse, on e o f the m ost successful and innovative Islamic investment banks
in the M iddle East. Such leaders pay attention to the concerns and developm ental
needs o f individual followers: they help followers look at old problem s in new ways,
and they are able to excite, arouse, and inspire follow ers to exert extra effort to
achieve group goals.
Transactional and transformational leadership should not be viewed as opposing
approaches to getting things d on e.27 Transformational leadership develops from trans­
actional leadership. Transformational leadership produces levels o f em ployee effort
and perform an ce that go beyond what would occu r with a transactional approach
alone. Moreover, transformational leadership is m ore than charisma because a trans­
formational leader attempts to instill in followers the ability to question n ot only estab­
lished views but views held by the leader.28
T he evidence supporting the superiority o f transform ational leadership over
transactional leadership is overw helm ingly impressive. For instance, studies that
lo o k e d at m anagers in d ifferen t settings, in W estern con texts and also in the
Arab w orld, fo u n d that transform ational leaders were evaluated as m ore effective,
h igher perform ers, m ore prom otab le than their transactional counterparts, and
m ore interpersonally sensitive.29 In addition, evidence indicates that transforma­
tional leadership is strongly correlated with lower turnover rates and higher levels
o f productivity, em p loyee satisfaction, creativity, goal attainm ent, and follow er
well-being.
In a study assessing the form ation and developm ent o f Jordan ’s King Hussein
Cancer Center (KHCC), one o f the top cancer centers in the Middle East researchers
have attributed the success o f this center to transformational leadership. Leaders used
the four pillars o f transformational leadership to revamp this entity from an impover­
ished and “ineffectual care institution”30 into a world-class comprehensive care center.
The four pillars - inspirational motivation, idealized influence, individualized consid­
eration, and intellectual stimulation - contributed to the success and had an impres­
sive im pact on workers and stakeholders.
Chapter Sixteen M anagers as Leaders
401
Team Leadership. Because leadership is increasingly taking place within a team context
and m ore organizations are using work teams, the role o f the leader in guiding team
m embers has becom e increasingly important.
Many leaders are n ot equipped to handle the change to employee teams. As one
consultant noted, “Even the m ost capable managers have trouble making the tran­
sition because all the com m and-and-control type things they were encou raged to
d o before are n o longer appropriate. T h ere’s n o reason to have any skill or sense
o f this.”31 This same consultant estimated that 15 percent o f managers are natural
team leaders. A nother 15 percent could never lead a team because it runs counter to
their personality; that is, they are unable to sublimate their dominating style for the
g o o d o f the team. Then there is a group in the middle: team leadership does not com e
naturally to them, but they can learn it.
T h e ch a llen g e fo r m any m anagers is learn in g h ow to b e c o m e an effective
team leader. T h ey have lea rn ed skills such as sharing in fo rm a tio n patiently,
b e in g able to trust others and give up authority, and u n d erstan d in g w hen to
intervene. A n d effective team leaders have m astered the difficu lt balancing act
o f know ing w hen to leave their teams alon e and when to get involved. New team
leaders may try to retain to o m u ch co n tro l at a time when team m em bers n eed
m ore autonom y, or they may aban d on their teams at times w hen the teams n eed
su p port and h e lp .32
QUICK LEARNING REVIEW:
L E A R N IN G O U T C O M E
•
1 6 .5
D ifferen tia te b etw ee n transactio n al and
tra n s fo rm a tio n a l leadership.
•
Describe w h a t te a m leadersh ip involves.
------------------------------------------------------------- Go to page 410 to see how well you know th is material.
LEARNING
o u t c o m e s
1 6 .6
> LEADERSHIP ISSUES IN THE TWENTY-FIRST CENTURY
It is not easy being a chief executive officer (CEO) today. This person, who is responsi­
ble for managing a company, faces a lot o f external and internal challenges, especially
when that person is a woman. M ona Bawarshi, CEO o f a Lebanese shipping company,
Al-Gezairi Transport Company, which does business all over the Middle East, is con ­
stantly dealing with such challenges. If anything goes wrong, she is the person held
responsible.
For most leaders, leading effectively in today’s environment is unlikely to involve
the challenging circumstances Bawarshi faces. However, twenty-first-century lead­
ers do deal with some important leadership issues. In this section, we look at some
o f these issues: managing power, developing trust, em powering employees, leading
across cultures, understanding gender differences in leadership, and becom ing an
effective leader.
MANAGING POWER
W here d o leaders get their power; that is, their capacity to influence work actions
or decisions? Five sources o f leader power have been identified: legitimate, coercive,
reward, expert, and referent.33
Tran sform atio nal leaders
C harism atic leaders
Leaders w h o stim u la te and inspire (transform ) fo llo w e rs
to achieve extraordinary outcom es.
Enthusiastic, se lf-c o n fid e n t leaders w ho se personalities
and actions influence people to behave in certain ways.
402
P a r t F o u r Leading
M ona Baw arshi heads A l-G ezairiTransport Company.
The o n ly daughter o f a successful entrepreneur, she faced
lo ts o f challenges in her career. M o st o f these are com m on
to any businessperson, male o r female. Being female ju s t
adds to the com plexity. Twenty-first-century leaders have
to deal w ith im p o rta n t issues such as m anaging power,
developing trust, em pow ering employees, leading across
cultures, understanding gender differences in leadership,
and becom ing an effective leader.
Legitimate power and authority are the same. Legitimate power represents the
pow er a leader has as a result o f his or her position in the organization. Although
p eop le in positions o f authority are also likely to have reward and coercive power,
legitimate power is broader than the power to coerce and reward.
Coercive power is the power a leader has to punish or control. Followers react to
this power out o f fear o f the negative results that might occur if they do n ot comply.
Managers typically have some coercive power, such as being able to suspend or demote
employees or to assign them work they find unpleasant or undesirable.
Reward power is the power to give positive rewards. These can be anything that a
person values, such as money, favorable perform ance appraisals, prom otions, interest­
ing work assignment, friendly colleagues, and preferred work shifts or sales territories.
Expert power is pow er based on expertise, special skills, or knowledge. If an
employee has skills, knowledge, or expertise that is critical to a work group, that per­
son ’s expert power enhanced.
Finally, referent power is the pow er that arises because o f a p erson ’s desirable
resources or personal traits. If you are adm ired and peop le want to be associated
with you, you can exercise pow er over others because they want to please you.
R eferent pow er develops out o f adm iration fo r another and a desire to be like that
person.
M ost effective leaders rely on several differen t form s o f pow er to affect the
behavior and perform ance o f their followers. For exam ple, the com m anding officer
o f one o f Australia’s state-of-the-art submarines, the HMAS Sheean, employs different
types o f pow er in managing his crew and equipm ent. He gives orders to the crew
thinking critically about
E th ic s
Can You Be Friends w ith Your Manager?
T h e d efin itio n o f fr ie n d on social n etw orking sites such as Facebook and M y S p a c e is
so broad th a t even stran gers m a y tag yo u . But it does not feel w e ird because nothing
really changes w h e n a stran ger does this. H o w ever, w h a t if y o u r boss, w h o is not much
o ld er th an yo u are, asks yo u to be a frien d on th ese sites? W h a t then? W h a t are th e
im p licatio n s if yo u refuse th e offer? W h a t are th e im p licatio n s if yo u accept?
W h a t ethical issues m ig h t arise because o f this? W h a t w o u ld yo u do?
Chapter Sixteen M anagers as Leaders
403
(legitim ate), praises them (reward), and disciplines those who com m it infractions
(coerciv e). As an effective leader, he also strives to have expert pow er (based on
his expertise and know ledge) and referent power (based on his being adm ired) to
influence his crew.34
DEVELOPING TRUST
In today’s uncertain environment, an important consideration for leaders is building
trust and credibility. Trust can be extremely fragile. Before we can discuss ways leaders
can build trust and credibility, we have to know what trust and credibility are and why
they are so important.
The main com pon en t o f credibility is honesty. Surveys show that honesty is con ­
sistently singled out as the num ber-one characteristic o f adm ired leaders. “Honesty
is absolutely essential to leadership. If people are going to follow som eone willingly,
whether it be into battle or into the boardroom , they first want to assure themselves
that the person is worthy o f their trust.”35 In addition to being honest, credible lead­
ers are com petent and inspiring. They are personally able to effectively communicate
their confidence and enthusiasm. Thus, followers ju d ge a leader’s credibility in terms
o f his or her honesty, com petence, and ability to inspire.
Trust is closely entwined with the con cept o f credibility, and, in fact, the terms are
often used interchangeably. Trust is defined as the belief in the integrity, character,
and ability o f a leader. Followers who trust a leader are willing to be vulnerable to the
leader’s actions because they are confident that their rights and interests will n ot be
abused.37 Research has identified five dimensions that make up the con cept o f trust.38
M ustapha Assad, CEO o f Publicis-Graphics,
one o f the leading m edia firm s in the M iddle
East region is described b y one o f his
associates. "C redibility is the cornerstone
o f m y relationship w ith h im ... it is w hat links
us both and is on top o f o u r p rio ritie s ... For
me, m y objective is to rem ain in harm ony as
much as possible w ith him , because it is from
this harm ony that g o o d things com e by, such
as . . . self-control, honesty, transparency, and
professionalism ."36
L e g itim a te p o w e r
E xp ert p o w e r
C red ib ility
The po w er a leader has as a result o f his or her
po sition in an organ izatio n.
Pow er th a t is based on expertise, special skills,
or know ledge.
The degree to w h ich fo llo w e rs perceive som eone
as honest, co m p etent, and able to inspire.
C oercive p o w e r
R efe re n t p o w e r
Trust
The po w er a leader has to punish or control.
Power th a t arises because o f a person's desirable
resources or personal traits.
The b e lief in th e integrity, character, and a b ility
o f a leader.
R ew ard p o w e r
The po w er a leader has to give positive rewards.
404
P a r t F o u r Leading
Meet the M a n a g e r
• Integrity: Honesty and truthfulness
• Competence: Technical and interpersonal knowledge and skills
W HAT IS YOUR ADVICE TO FUTURE
BUSINESS LEADERS?
• Consistency: Reliability, predictability, and g o o d judgm ent in handling situations
Have strong ethics
• Loyalty: Willingness to protect a person, physically and emotionally
and values andI hire
• Openness: Willingness to share ideas and inform ation freely
top candidates
w h o em brace
those eth ics and
values.
O f these five dimensions, integrity seems to be the most critical when som eone
assesses another’s trustworthiness.39 Both integrity and com petence came up in our
earlier discussion o f traits found to be consistently associated with leadership.
Workplace changes have reinforced why such leadership qualities are important.
For instance, the trend toward em powerm ent (which we will discuss shortly) and self­
managed work teams has reduced many o f the traditional control mechanisms used
to m onitor employees. If a work team is free to schedule its own work, evaluate its
own perform ance, and even make its own hiring decisions, trust becom es critical.
Employees have to trust managers to treat them fairly, and managers have to trust
employees to conscientiously fulfill their responsibilities.
Also leaders have to increasingly lead others who may not be in their immediate
work group or even may be physically separated members o f cross-functional or vir­
tual teams, individuals who work for suppliers or customers, and perhaps even people
who represent other organizations through strategic alliances. These situations do
n ot allow leaders the luxury o f falling back on their formal positions for influence.
Many o f these relationships, in fact, are fluid and temporary. So the ability to quickly
develop trust and sustain that trust is crucial to the success o f the relationship.
Why is it im portant that followers trust their leaders? Research has shown that
trust in leadership is significantly related to positive jo b outcom es, including jo b per­
form ance, organizational citizenship behavior, jo b satisfaction, and organizational
com m itm ent.40 Given the im portance o f trust to effective leadership, how can leaders
build trust?
Now, m ore than ever, managerial and leadership effectiveness depends on the
ability to gain the trust o f followers.41 Downsizing, corporate financial misrepresenta­
tion, and the increased use o f temporary employees have determ ined em ployees’ trust
in their leaders and shaken the confidence o f investors, suppliers, and customers.42
Today’s leaders are faced with the challenge o f rebuilding and restoring trust with
employees and with other important organizational stakeholders.
EMPOWERING EMPLOYEES
Empowerment involves increasing the decision-m aking discretion o f workers.
Millions o f individual employees and em ployee teams are making the key operating
decisions that directly affect their work. They are developing budgets, scheduling
workloads, controlling inventories, solving quality problem s, and engaging in similar
activities that until recently were viewed exclusively as part o f the m anager’s jo b .43
Dr. Muhadditha Al Hashimi, the CEO o f Dubai Healthcare City (DHCC) a center for
clinical and wellness services, explains this very convincingly: “My senior leadership
team is quite em powered. They are in their positions because I ’ve trusted them to
b ecom e directors o f those sectors. I want them to use their ju d gm en t to the best o f
their ability.”44
O ne reason m ore com panies are em powering em ployees is the need for quick
decisions by the people who are most knowledgeable about the issues, often those at
lower organizational levels. If organizations want to successfully com pete in a dynamic
global econom y, employees have to be able to make decisions and im plem ent changes
quickly. A nother reason m ore companies are empowering employees is that organiza­
tional downsizings have left many managers with larger spans o f control. In order to
cope with the increased work demands, managers have had to em power their people.
Although em powerm ent is not a universal answer, it can be beneficial when employees
have the knowledge, skills, and experience to do their jo b s competently.
Chapter Sixteen M anagers as Leaders
405
This construction site in D ubai show s the scale
and type o f p ro je ct le d b y Rashid Galadari,
whose G alvest H olding G roup is a m u lti-m illio n
d o lla r real estate company. Galadari is devoted
to developing a m anagem ent structure that
supports his vision fo r the company. He believes
that this cou ld be done through em pow erm ent,
a thing that, he acknowledges, is n o t dom inant
in the M id d le East, as people are n o t used to
g iv in g aw ay th e ir responsibilities. He asserts that
em p ow erm en t is a ll too im p o rta n t fo r success
and g ro w th in this p a rt o f the w o rld.45
LEADING ACROSS CULTURES
O ne general conclusion that surfaces from leadership research is that effective lead­
ers d o n ot use a single style. They adjust their style to the situation. A lthough not
m entioned explicitly, national culture is certainly an important situational variable in
determining which leadership style will be most effective. What works in China is not
likely to be effective in France or Canada. For instance, one study o f Asian leadership
styles revealed that Asian managers preferred leaders who were com petent decision
makers, effective communicators, and supportive o f employees.46
National culture affects leadership style because it influences how followers will
respond. Leaders cannot (and should not) just choose their styles randomly. They
are constrained by the cultural conditions their follow ers have com e to expect.
Exhibit 16-7 provides some findings from selected examples o f cross-cultural leader­
ship studies. Because most leadership theories were developed in the United States,
Exhibit 16-7
• Korean leaders are expected to be paternalistic toward employees.
Cross-Cultural Leadership
• Arab leaders w ho show kindness or generosity w ithout being asked to do so are seen by
other Arabs as weak.
• Japanese leaders are expected to be hum ble and speak frequently.
• Scandinavian and Dutch leaders w ho single out individuals w ith public praise are likely to
embarrass, not energize, those individuals.
• Effective leaders in M alaysia are expected to show compassion w hile using more of an
autocratic than a participative style.
• Effective Germ an leaders are characterized by high perform ance orientation, low compas­
sion, low self-protection, low team orientation, high autonomy, and high participation.
Sources: Based on J. C. Kennedy, "Leadership in M alaysia: Traditional Values, International O utlook," A cadem y
o f M a na g e m en t Executive, A u g ust 2002, pp. 15-17; F C. Brodbeck, M. Frese, and M. Javidan, "Leadership Made
in Germany: Low on Com passion, High on P erform ance" A ca d em y o f M a nagem ent Executive, February 2002, pp. 16-29;
M. F Peterson and J. G. Hunt, "In te rna tio n al Perspectives on International L eadership" Leadership Q uarterly, Fall 1997,
pp. 203-231; R. J. House and R. N. A ditya, "T h e Social S cientific Study o f Leadership: Quo Vadis?" Jo u rn a l o f M anagem ent,
vol. 23 (3), 1997, p. 463; and R. J. House, "Leadership in the Tw enty-First C en tu ry" in A. H ow ard (ed.), The C hanging Nature
o f Work, Jossey-Bass, 1995, p. 442.
E m p o w e rm en t
The act o f increasing the de cision-m a king
discretion o f workers.
406
P a r t F o u r Leading
Arab
Perspectives
Leader Profile: Naguib Sawiris, Chairman
and CEO of Orascom Telecom Holding
According to F orbe s, N agu ib S aw iris is one o f the richest people in th e w o rld , w ith a
fo rtu n e valued at o ver U S $12 billion. "T h e eldest son o f O rascom co n g lo m erate fo u n d e r
Onsi S aw iris has continued to expand his telec o m em p ire in Europe via his holding
com pany, W e ath er Investm ents. In addition to O rascom Telecom , W eather's assets include
Italian phone co m p an y W in d and leading G reek telec o m co m p an ies W in d Hellas and
Tellas. O rascom recently sold its 19 percent stake in Hong Kong billio n aire Li Ka-shing's
Hutchison Telecom m u nicatio n s and also its high-risk Iraq o peratio n, Iraqna, th e first
m o b ile phone p ro vider in Iraq."48
W h e n asked w h a t he believes separates a good business lead er fro m a g reat one,
S aw iris responded: "A g reat business leader, he has a vis io n , he w an ts to fly o ver the
sky and get . . . w h e re nobody's been th e re before. That's a g reat leader. A good lead er is
th e CEO o f a g reat co m p an y th at does w ell and it increases th e revenu e and so on. But
g reat businessm en w o u ld go on to history, like th e typ es of p eo ple w h o built an im p erial
business co rp o ratio n fro m nothing . . . all th e guys [fro m ] eB ay and w ith M icro so ft, these
are g reat le a d e rs "49
they have a U.S. bias. They emphasize follow er responsibilities rather than rights,
assume self-gratification rather than com m itm ent to duty or altruistic motivation,
assume centrality o f work and dem ocratic value orientation, and stress rationality
rather than spirituality, religion, or superstition.47 For example, in the Arab world,
the impact o f religion is pervasive. To exclude the impact o f religion on how people
behave, even in business settings, does n ot work. Take the example o f the Egyptian
business leader, Naguib Sawiris, the legendary chairm an and CEO o f O rascom
Telecom H olding. He does n ot hesitate a bit in indicating the role o f faith in his lead­
ership and in his success. H e indicates that business leadership requires taking risks
and risk taking requires faith. W hen asked about what it takes for a person to take
risks, he responded: “The first word that com es to my mind is faith. I think if you really
believe in G od, you think y o u ’re a g o o d hum an being, then you know h e ’s going
to be on your side so you d o n ’t fear anything. So this has been the biggest source o f
my power.”
However, the GLOBE research program , first introduced in Chapter 4, is the
m ost extensive and comprehensive cross-cultural study o f leadership ever undertaken.
T he GLOBE study has fou n d that there are som e universal aspects to leadership.
Specifically, a num ber o f elements o f transformational leadership appear to be asso­
ciated with effective leadership, regardless o f what country the leader is in.50 These
include vision, foresight, providing encouragem ent, trustworthiness, dynamism, positivity, and proactiveness. The results led two members o f the GLOBE team to conclude
that “effective business leaders in any country are expected by their subordinates to
provide a powerful and proactive vision to guide the com pany into the future, strong
motivational skills to stimulate all employees to fulfill the vision, and excellent plan­
ning skills to assist in implem enting the vision.”51
Some peop le suggest that the universal appeal o f these transformational leader
characteristics is due to the pressure toward com m on technologies and management
practices, as a result o f global competiveness and multinational influences.
UNDERSTANDING GENDER DIFFERENCES AND LEADERSHIP
There was a time when the question “D o males and females lead differently?” could be
seen as a purely academ ic issue: interesting, but n ot very relevant. That time has cer­
tainly passed! Many wom en now hold senior management positions, and many m ore
around the world continue to jo in the m anagem ent ranks. M isconceptions about
Chapter Sixteen M anagers as Leaders
407
the relationship between leadership and gender can adversely affect hiring, perfor­
m ance evaluation, prom otion, and other human resource decisions for both m en and
wom en. For instance, evidence indicates that a “g o o d ” manager is still perceived as
predominantly masculine.52
A num ber o f studies focusing on gender and leadership style have been conducted
in recent years. Their general conclusion is that males and females use different styles.
Specifically, wom en tend to adopt a m ore dem ocratic or participative style. W omen
are m ore likely to encourage participation, share power and inform ation, and attempt
to enhance followers’ self-worth. They lead through inclusion and rely on their cha­
risma, expertise, contacts, and interpersonal skills to influence others. W om en tend
to use transform ational leadership, motivating others by transform ing their self­
interest into organizational goals. Men are m ore likely to use a directive command-andcon trol style. They rely on the form al position authority fo r their influence. Men
use transactional leadership, handing out rewards for g o o d work and punishments
fo r bad.53
There is an interesting qualifier to the findings just m entioned. The tendency for
female leaders to be m ore dem ocratic than males declines when wom en are in maledom inated jobs. Apparently, group norm s and male stereotypes influence wom en,
and in som e situations, wom en tend to act m ore autocratically.54
A lthough it is interesting to see how male and fem ale leadership styles differ,
a m ore im portant question is whether they differ in effectiveness. A lthough some
researchers have shown that males and fem ales tend to be equally effective as
leaders,55 an increasing num ber o f studies have shown that w om en executives, when
rated by their peers, em ployees, and bosses, score higher than their male cou n ­
terparts on a wide variety o f measures.56 Why? O ne possible explanation is that in
today’s organizations, flexibility, teamwork and partnering, trust, and inform ation
sharing are rapidly replacing rigid structures, com petitive individualism, control,
and secrecy. In these types o f workplaces, effective managers must use m ore social
and interpersonal behaviors. They listen, motivate, and provide support to their
p eop le. They inspire and influence rather than control. A nd w om en seem to do
those things better than m en.57
Although women seem to rate highly on the leadership skills needed to succeed in
today’s dynamic global environment, we do not want to fall into the same trap as the
early leadership researchers who tried to find the “one best leadership style” for all situa­
tions. We know that there is n o one best style for all situations. Instead, the most effective
in their leadership styles depends on the situation. So even if men and women differ in
their leadership styles, we should not assume that one is always preferable to the other.
GENDER DIFFERENCES IN LEADERSHIP IN THE ARAB WORLD
Leadership positions in the Arab world have traditionally been m onopolized by men.
The dom inant secular leadership prototype in Arab culture is the Sheik - a male fig­
ure with religious authority.58 While religious and paternalistic traditions o f leadership
and authority persist, there are nevertheless examples o f prom inent wom en leaders
who have managed to break through and reach top decision-making positions despite
prevailing stereotypes and constraints. Some attribute the success o f these female
leaders to their family connections, and their male connections m ore specifically. Even
those who are part o f the recent feminization o f leadership positions in the Arab region
appear to face many o f the same constraints as their predecessors.59 They continue
to perceive themselves as accountable to male scrutiny, stereotypes, and traditional
leadership prototypes. They operate in conditions that are still influenced and shaped
by family, tribe, and religion, and they often have to act in such terms. Such are the
realities o f leadership in the Arab world.
The image o f how a leader should behave and act cannot be separated from the
cultural context and the social contexts within which such an image is form ed. Despite
recen t attempts and initiatives to provide opportunities fo r w om en to em erge as
leaders, the current situation in the Arab world still emphasizes the role o f the male
408
P a r t F o u r Leading
Exhibit 16-8
Female Economic Activity
Rate in Selected World
Regions in 2008.
Female Labor Force
Participation %
Male Labor Force
Participation %
27.0
78.2
Arab States
OECD
56.5
80.1
Least Developed Countries
64.7
85.2
World
56.8
82.6
Source: Human Developm ent Report 2010, "The Real Wealth o f Nations: Pathways to Human Developm ent,"
United Nations Developm ent Programme (UNDP), Palgrave M acm illan, NewYork, NY, USA.
as the dom inant player in society and the woman as submissive. While some may asso­
ciate this polarity to the role o f Islam in Arab society, it is worth noting that Islam
and Islamic history present many examples o f equal opportunity and wom en success
stories. Indeed, in a num ber o f Arab countries, such as Kuwait and M orocco, religion
is used as a platform to advance reform initiatives based on the premise that Islam is
n ot opposed to w om en’s advancement and progress.60
So how can we understand the scarcity o f wom en in top leadership positions in
the Arab world? This issue can be explained by the fact that this case, foun d in many
developed and developing societies, is not unique to Arab women. This reflects the
problem atic conditions that females face in the workplace across the world.
W om en’s participation in the labor force continues to be rather low across the
Arab world (Exhibit 16-8). The econom ic activity rate o f women has been estimated at
27 percent in 2008 (compared to 78 percent for males) which is the lowest in the world.61
Furthermore, wom en’s participation is also low in entrepreneurial activities and decision­
making positions.62 Legislation for equal opportunity and rights is often not properly
implemented. Specifically, various Arab Human Developm ent Reports highlight the
problems that Arab women face in education, work, and participation in business and
political arenas. Focus on gender issues leading to fair and balanced societal develop­
m ent has been a major area for wom en’s organization within and outside the Arab world.
Such initiatives are slowly recording some successes in various areas o f the Arab world
but are still falling short o f accomplishing major strides in achieving gender equity and
inclusiveness on a wide scale.63
BECOMING AN EFFECTIVE LEADER
Organizations need effective leaders. Two issues pertinent to becom ing an effective
leader are leader training and recognizing that sometimes being an effective leader
means not leading. Let’s take a look at these issues.
Leader Training. Organizations around the globe spend billions o f yen, euros, and dol­
lars on leadership training and developm ent.64 These efforts take many forms, from
expensive leadership programs offered by universities to sailing experiences as part o f
seminars designed to teach executives how to com m and their teams. Although much
o f the m oney spent on leader training may provide doubtful benefits, our review sug­
gests that there are som e things managers can do to get the maximum effect from
such training.65
First, let’s recognize the obvious: some peop le d o n ot have what it takes to be a
leader. For instance, evidence indicates that leadership training is m ore likely to be
successful with individuals who are high self-monitors than with low self-monitors.
Such individuals have the flexibility to change their behavior as different situations
require. In addition, organizations may find that individuals with higher levels o f a trait
called motivation to lead are m ore receptive to leadership developm ent opportunities.66
What kinds o f things can individuals learn that might be related to being a m ore
effective leader? It may be a bit optimistic to think that “vision-creation” can be taught,
but im plem entation skills can be taught. People can be trained to develop “an under­
standing about content themes critical to effective visions.”67 We can also teach skills
Chapter Sixteen M anagers as Leaders
409
such as trust-building and mentoring. And leaders can be taught situational analysis
skills. They can learn how to evaluate situations, how to m odify situations to make
them fit better with their style, and how to assess which leader behaviors m ight be
m ost effective in given situations.
Substitutes for Leadership. Despite the belief that some leadership style will always be
effective regardless o f the situation, leadership may not always be important! Research
indicates that, in some situations, any behavior a leader exhibits is irrelevant.
In other words, certain individual, jo b , and organizational variables can act as
“substitutes fo r leadership,” negating the in flu en ce o f the leader.68 For instance,
follow er characteristics such as experience, training, professional orientation, and
need fo r in d ep en d en ce can neutralize the effect o f leadership. These characteristic
can replace the em p loyee’s n eed fo r a leader’s support or ability to create structure
and red u ce task ambiguity. Similarly, jo b s that are inherently unam biguous and
routine or that are intrinsically satisfying may place fewer dem ands on the lead­
ership variables. Finally, such organizational characteristics as explicit form alized
goals, rigid rules and procedures, and cohesive work groups can substitute fo r for­
mal leadership.
QUICK LEARNING REVIEW:
L E A R N IN G O U T C O M E
•
Describe th e fiv e sources of a leader's
pow er.
1 6 .6
•
Discuss th e issues today's leaders face.
------------------------------------------------------------ Go to page 410 to see how well you know th is material.
LEAEU1MGOAUTCO MES
16.1 > W H O ARE LEADERS, AND W HAT IS LEADERSHIP?
•
•
D e fine leaders and leadership.
Explain w h y m anagers should be leaders.
A leader is so m e o n e w h o can in flue nce oth ers and w h o has m anagerial authority. Le ad ership is a
process of leading a group and in flue ncin g th a t group to achieve its goals. M anagers should be lead­
ers because leading is one o f th e fo u r m an a g e m e n t fun ctions.
16.2 > HISTORICAL LEADERSHIP IN THE ARAB W ORLD
•
•
•
U n d e rsta n d in g leadership fro m an Arab perspective.
D escribe th e c o n ce p t o f asabiya.
Explain th e prophetic-caliphal leadership m odel.
Ibn Khaldun em phasizes th e im p o rta n ce o f th e personal qu a litie s o f th e leader, w h ich he refers to as
"p e rfe c tin g details." Asabiya, w h ich is "g ro u p fe e lin g " or "g ro u p bond," ste m s fro m blood tie s and
alliances, w ith th e fo rm e r having th e m o st w e ig h t in fo s te rin g th e leadership bond. W h ile blood ties
m ay be d iscou nted in th e W e s t as a sou rce o f leadership, one can only re v ie w rece nt organizational
h isto ry in th e M id d le East and N orth A frica to see h o w m uch blood tie s are in stru m e n ta l in leader­
ship em ergence.
M o d e ls fo r le ad ership in Arab co n te x ts are p u t fo rw a rd by Bashir Khadra, w h o p ro po sed a
prophetic-caliphal m odel of leadership in th e Arab w o rld. This m odel con sists of fou r elem e nts: (1)
personalism , (2) individualism , (3) lack o f institutionalization, and (4) the im portance of the "g re a t m a n "
410
P a r t F o u r Leading
1 6 .3
> EARLY LEADERSHIP THEORIES
•
•
•
Discuss w h a t research has s h o w n about leadership traits.
C ontrast th e fin d in g s o f th e fo u r behavioral leadership theories.
Explain th e dual nature o f a leader's behavior.
Early a tte m p ts to d e fin e leadership tra its w e re u n su cce ssfu l, although later a tte m p ts fo u n d seven
traits associated w ith leadership.
The U n iv e rs ity of Iow a studies explored th re e leadership styles. The only conclusion w as tha t
group m e m b e rs w e re m o re satisfie d under a d e m ocra tic leader than under an autocratic one. The
O hio S ta te stud ies id e n tifie d tw o d im e n sio n s o f leader beha vior: in itia tin g stru c tu re and con sid­
eration. A leader high in both th o se d im e n sio n s at tim e s achieved high group ta s k pe rfo rm an ce
and high gro up m e m b e r sa tis fa c tio n , but not always. The U n iv e rs ity o f M ich ig a n stud ies looked
at em p lo ye e -o rie n te d leaders and pro d u ctio n -o rie n te d leaders. T hey con clu ded th a t leaders w h o
w e re em p lo ye e o rien te d could g e t high gro up p ro d u c tiv ity and high group m e m b e r satisfaction.
The m anagerial grid looked at leaders' concern for production and concern fo r people and identified
five leader styles. A ltho ug h it sug ge ste d th a t a leader w h o w as high in concern for production and
high in concern for people w as th e best, but th e re w as no sub stantive evidence for th a t conclusion.
As th e behavioral stud ies sho w e d, a leader's behavior has a dual nature: a focu s on th e ta sk
and a focu s on th e people.
1 6 .4
> CONTINGENCY THEORIES OF LEADERSHIP
•
•
•
Explain F iedler's c o n tin g e n cy m o d e l of leadership.
D escribe situational leadership theory.
Discuss h o w path-goal th e o ry explains leadership.
F ied le r's m o d e l a tte m p te d to d e fin e th e be st s ty le to use in particular situations. H e m e a su re d
leader style - relatio nship orien te d or ta sk oriented. Fiedler also assum ed th a t a leader's style w as
fixed. He m easured th re e c o n tin g e n cy dim en sion s: le a d e r-m e m b e r relations, task structure , and
position power. The m odel sug ge ste d th a t ta sk-o rie n te d leaders p e rfo rm e d be st in v e ry favorable
and v e ry unfavorable situa tion s, and rela tio n sh ip -o rie n te d leaders p e rfo rm e d be st in m o d e ra te ly
favorable situations.
H ersey and Blanchard's situa tion al leadership th e o ry (SLT) fo cu se d on fo llo w e rs ' readiness.
It includes fo u r leadership styles: te llin g (high ta s k -lo w relationship), selling (high ta s k -h ig h relation­
ship), participating (lo w ta s k -h ig h relationship), and delegating (low ta s k -lo w relationship). SLT also
id e n tifie d fo u r stag es of readiness: unable and u n w illin g (use te llin g style), unable but w illin g (use
selling style), able but u n w illin g (use participative style), and able and w illin g (use de le gatin g style).
The pa th -g o a l m odel developed by Robert H ouse id e n tifie d fo u r leadership behaviors: direc­
tive, su p p o rtive , pa rticip ative, and a ch ie vem en t orien te d. This m odel assu m es th a t a leader can
and should be able to use any o f th e s e styles. The tw o situ a tio n a l c o n tin g e n c y variables w e re
fou nd in th e e n viro n m e n t and in th e follow er. Essentially, th e pa th -g o a l m odel says th a t a leader
should provide d irectio n and su p p o rt as needed; th a t is, th e leader should stru ctu re th e path so the
fo llo w e rs can achieve goals.
1 6 .5
> CONTEMPORARY VIEWS OF LEADERSHIP
•
•
D iffe re n tia te b e tw e e n transactional and tra n sfo rm a tio n a l leaders.
Discuss w h a t te a m leadership involves.
A transactional leader exchanges rew ards for p ro du ctivity, w h e re a s a tra n sfo rm a tio n a l leader s tim ­
ulates and inspires fo llo w e rs to achieve goals.
1 6 .6
> LEADERSHIP ISSUES IN THE TWENTY-FIRST CENTURY
•
•
D escribe th e five sources o f a leader's power.
Discuss th e issues today's leaders face.
The five sources of a leader's p o w e r are le g itim a te (a u th o rity or position), coercive (punish or con­
trol), rew ard (give positive rew ards), exp e rt (special expertise, skills, or kno w le dg e), and refere nt
(desirable resources or traits).
Today's leaders face th e issues o f m anaging pow er, de veloping tru st, e m p o w e rin g e m p lo y­
ees, leading across cultu res, u n d e rsta n d in g g e nd er d iffe re n ce s in leadership, and be co m in g an
e ffe ctive leader.
Chapter Sixteen M anagers as Leaders
411
THINKING ABOUT
M A N A G E M E N T IS S U E S
. W h a t typ e s of p o w e r are available to you? W h ich ones do you use m ost? W hy?
. Do you th in k th a t m o s t m anagers in real life use a co n tin g e n cy approach to increase the ir
leadership effective ness? Discuss.
3. If you ask people w h y a given individual is a leader, th e y ten d to de scrib e th e person in te rm s
such as c o m p e te n t, c o n s is te n t, se lf-a ssure d, in sp irin g a sh a re d vision, and e n th u s ia s tic . H ow
do th e se de scrip tio n s fit in w ith leadership con cep ts presented in th is chapter?
W h a t kinds of cam pus a ctivities could a fu ll-tim e u n ive rsity stu d e n t do th a t m ig h t lead to th e
pe rcep tion th a t he or she is a charism atic leader? In pursuing th o se activities, w h a t m ig h t the
stu d e n t do to enhance th is pe rcep tion of being charism atic?
5. Do you th in k tru s t evolves o u t o f an individual's personal characteristics or out o f spe cific
situations? Explain.
6 . A rece nt stu d y sh o w e d th a t CEO s o f succe ssful com p an ies have hard-nosed personal traits,
such as persisten ce, efficiency, a tte n tio n to detail, and a te n d e n cy to se t high standards,
rather than so fte r s tre n g th s, such as te a m w o rk , e n thusiasm , and fle x ib ility .69 W h a t do you
th in k o f this? Are you surprised? H o w w o u ld you explain this in light o f th e leadership
th e o rie s discussed in th is chapter?
7. Do fo llo w e rs m ake a diffe re nce in w h e th e r a leader is effective ? Discuss.
H o w can organizations develop e ffe ctive leaders?
8 .
1
2
FURTHER
R E A D IN G
S tephen M. R. Covey w ith Rebecca M erre ll, The S pe ed o f Trust: The O ne Thing That Changes
E ve ryth in g (The Free Press, 2006)
Nancy S. A hlrichs, M a n a g e r o f Choice (Davies-Black Publishing, 2003)
John H. Z enger and Joseph Folkm an, The E xtrao rd in ary Leader: Turning G ood M an ag ers in to
G reat Leaders (M cG raw -H ill, 2002)
Robert H. Rosen, Leading People (Viking Penguin Publishing, 1996)
M arg are t J. W hea tley, Leadership a n d the N e w S cience (Berrett-K oehler Publishers, 1994)
M ax DePree, Leadership Jazz (Dell Publishing, 1992)
M ax DePree, Leadership Is an A r t (Dell Publishing, 1989)
YOURTURN
A MANAGER
Think of th e d iffe re n t organizations to w h ich you belong. N ote th e d iffe re n t style s of leadership
used by th e leaders in th o se organizations. W rite a paper de scrib ing th e se individuals' style s of
leading (no nam es, please) and evaluate th e style s being used.
W rite th e nam es o f th re e people you con sid er to be e ffe ctive leaders. M ake a bu lle ted list of
th e characteristics th e se individuals exh ib it th a t you th in k m ake th e m e ffe ctive leaders.
Think about th e tim e s th a t you have had to lead. D escribe w h a t you th in k you r o w n personal
le ad ership s ty le is. W h a t could you do to im p ro ve yo u r le ad ership style ? C o m e up w ith an
action plan o f steps th a t you can take. Put all this in fo rm atio n into a brief paper.
M anagers say th a t increasingly th e y m u s t use in flue nce to g e t th in g s done. Do so m e research
on th e art o f persuasion. M ake a bulleted list of sug ge stion s th a t you fin d on h o w to im prove
you r skills at in flue ncin g others.
412
P a r t F o u r Leading
Here is a list of leadership skills: building team s, coaching and m otivating others, com m unicating
w ith im pact, confidence and energy, leading by exam ple, leading change, m aking decisions, pro­
viding direction and focus, and valuing diversity. Choose tw o o f th e se skills and develop a training
exercise th a t w ill help develop or im prove each o f them .
S elect one of th e to p ics fro m th e sectio n "L e a d e rsh ip Issues in th e T w en ty-F irst Century." Do
so m e additional research on th e to p ic and put you r fin d in g s in a bu lle ted list. Be prepared to
share th is in class. Be sure to cite you r sources.
In te rv ie w th re e m anagers about w h a t th e y th in k it takes to be a good leader. W rite up you r fin d ­
ings in a rep ort and be prepared to pre se n t it in class.
In your ow n w ords, w rite dow n three things you learned in this chapter about being a good manager.
mymanagementlalj^.
Text to come
CASE
A P P L IC A T IO N
Lubna Olayan: W hat Makes a Role Model?
L u b n a O la y a n is c o n s id e re d to be o n e o f th e m o st
p ro m in e n t b usin ess p e o p le in th e M id d le East. S h e is
th e CEO o f th e O la y a n F in an cin g C o., o n e o f th e la rg ­
est c o m p a n ie s in th e re g io n . T his c o m p a n y w a s o rig i­
n ally fo u n d e d by h er fa th e r, w h o w a s one o f th e m ost
p ro m in e n t b u s in e s s m e n in th e re g io n . S h e w a s ch o ­
sen by T IM E m a g a zin e as o n e o f th e w o rld 's 100 m ost
in flu e n tia l p e o p le o f 2 0 0 5 and by F o rb e s m a g a zin e as
one o f th e w o rld 's 100 m o st in flu e n tia l w o m e n in 2005
and 20 06 . S h e p ursu ed h er u n d e rg ra d u a te and g ra d u ­
ate e d u ca tio n in th e U .S ., o b ta in in g a B A fro m Cornell
and an M B A fro m Ind ian a U n iversity. O la ya n has been
e x tre m e ly a c tiv e in a d v a n c in g w o m e n in le a d e rs h ip
positions. S h e w as th e firs t w o m a n to be ap p o in te d as a
m e m b e r o f a board o f a Saudi A ra b ia n c o m p a n y (S au d i
H o lla n d i Bank) and is also a b oard m e m b e r o f th e m ar­
keting g ia n t W P P
O la y a n is a stern b e lie v e r in th e v a lu e s o f h ard w o rk ,
d e te r m in a tio n , and p e rs is te n c e . W h e n asked a b o u t ta k ­
ing c re d it fo r th e success o f th e O la y a n G ro u p she said,
"I n e v e r th in k a b o u t it in th a t sen se. W e a c c o m p lis h
th in g s an d th e n m o v e on. I n e v e r d w e ll on w h a t I've
p e rs o n a lly a c h ie v e d . As a g ro u p I a m v e ry p ro u d of
w h e re w e a re n o w . It's o u r p h ilo s o p h y th a t th e best
jo b s h o u ld be g iv e n to th e m o s t c o m p e te n t p e rs o n .
T h a t is s o m e th in g I tr u ly b e lie v e in, a n d m y f a th e r
b e lie v e d in."
O la y a n w a s d ep ic ted as a h ero by Prince A lw a le e d
Bin Talal A l-S a u d , and a ro le m o d e l fo r fu tu re w o m e n
leaders: "O la y a n te n d s to d o w n p la y h er p o s itiv e im p ac t
on p e rc e p tio n s o f A ra b w o m e n 's ro les. But w h e re v e r
she g o e s, e s p e c ia lly since th e J id d a sp ee ch , she is a
star. S h e re m in d s e v e r y o n e th a t S a u d i w o m e n are
c a p a b le o f ru n n in g not o n ly th e house but also m a jo r
c o m p a n ie s "
Discussion Questions
1. If yo u w e re to use th e tra it ap p ro ach in d escribing
Lubna O la ya n , w h a t traits w o u ld you ascribe to her?
2. To w h a t do yo u attrib u te O layan's success?
3. W h a t is th e im p o rta n c e o f role m o d els in d e v e lo p ­
ing leaders? A re fe m a le role m o d els needed m o re in
th e A rab region or are role m o d els needed by both
m ales and fem ales?
Sources: G. Ramadan, "Lubna Olayan —an executive icon bal­
ances life," A ra b News, N ovem ber 2002; "T h e W orld's most
Pow erful W om en: #97 Lubna O layan', Forbes, h ttp ://w w w .
forbes.com/lists/2005/11/TVR4.html, 2005; Prince Alw aleed Bin
Talal Al-Saud, "Lubna Olayan: The unveiling o f a Saudi H ero"
TIME magazine, 2005.
Management Role Models in the Arab World
ABDULSALAM HAYKAL
Abdulsalam Haykal lives and works in Damascus, Syria. He is
cofounder and CEO o f Transtek Systems, a high-end enterprise
softw are house, and Haykal Media, print, online, and m obile
publisher. Haykal is president o f the Syrian Young Entrepreneurs
Association and a founding trustee o f the BIDAYA Foundation,
tw o organizations dedicated to em pow ering aspiring business
people in Syria.
>
W h at are th e elem en ts
are relevant t o business?
For many long years, skilled
workers and managers had to leave the oil-rich, labor-poor Gulf,
due to lim ited opportunity. The "brain drain," coupled w ith an
education system that needed reform , caused a shortage of
capable human resources, crippling growth. The current reform s program promises a better future, not a better
today. For Syria to realize its potential, w e have to focus on developing and investing in our human resources. It is a
long-term goal, and w ith o u t persistence, perseverance, and com m itm ent it cannot be achieved. Once you have that,
doing business in Syria is very enjoyable and rewarding. Syria is an example of diversity: w e are a blend of cultures
that have trium phed over their ethnic or religious identities to form one nation. Entrepreneurship is thriving, and the
economy is opening up, creating endless opportunities locally and regionally.
> W h at advice would you give a b o u t prom oting m an ag em en tan d entrepreneurship in Syria?
Prospective
entrepreneurs should have access to four things: positive thinking, experience and expertise, professional net­
work, and money. Money becomes more available when an entrepreneur has access to the first three require­
ments. Positive thinking unveils opportunities, and expertise breathes life into them . The netw ork w ill give it
recognition, and money w ill turn it into a start-up. Once you have that, then you need to focus on your tw o Ps:
your product and your people. Your product w ill get you more money, and your people w ill push you further. This
looks easy but requires a lot of sm art effort, focus, and leadership. The best entrepreneurs and leaders have an
audacious vision. They bring change, and they challenge the status quo, and create opportunities for themselves
and for others along the way.
> W h at is th e im portance o f role m odels fo r fu tu re m anagers?
Role models are very important to help
create the new identity that is necessary for a renaissance. A role model for entrepreneurs, leaders, and manag­
ers should behold the qualities of responsibility, adaptability, reliability, and problem solving. We need the type of
people that are able to create opportunities out of problems, give answers to long-standing questions, and be the
change that they want to see. W ork ethics in Syria and the Arab world have to change. We need to become result
oriented rather than task oriented. We need to create value before we make money. Innovation is necessary to stay
competitive, and partnership is vital for growth. Our soft skills need to be polished. We have more technical skills
than commercial and marketing skills. We can create good products, and do not create markets for them efficiently.
413
414
P a r t F o u r Leading
> W h a t do you th in k a b o u t th e fu tu re g eneration in Syria?
Over the last fe w years, I have com e into
professional contact w ith many young Syrians. They are seemingly - and pleasingly - confident that the future is
theirs. They are certain that they w ill be the ones to make a difference. The youth of Syria are heirs to thousands
of years of civilizations. Their fathers and grandfathers are merchants, industrialists, and business people that
survived very harsh years of economic ups and downs and an environm ent that for a long tim e was unfriendly
to private business. I hope that the coming generations w ill have more room at hand, and benefit from a laissezfaire policy and a deregulatory approach. This would prevent the "hidden enterprise” culture. Syria is a fascinat­
ing place, and a great num ber of Syrian entrepreneurs are truly inspiring. And there is a w indow of opportunity
to unleash this huge potential.
> W h a t is yo u r m essag e t o th e p rivate s ecto r?
I tell them that w hile w e have to com pete in the mar­
ket, w e need to com e togethe r as one to represent our respective industries and the business com m unity
at large. There are a lot of things that w e can do together in order to grow beyond the lim its of our individual
capability. W e need to help the reform s in Syria by making our collective case com pelling. The basic elem ent
of our success is our human resources. You can borrow money, hire consultants for expertise, join netw orks
and get connections, but you cannot make a lot of added value w ith o u t people w ho are capable of leading and
building. Business is all about people creating value for them selves, and for other people, w h ether suppliers,
custom ers, or the com m unity at large.
> Do you have any final words?
During college, my constant and influential companion was the American poet
Ralph W aldo Emerson. Emerson said that the best advice he heard given to a young man was, "Always do w hat
you are afraid to do” The Sufi scholar Jalaluddin Rumi once said: "You w ere born w ith wings. W hy prefer to crawl
through life?” Fear makes you crawl. It is easier said than done, but w hat makes a great entrepreneur is taking
a step w itho ut feet. W hen you start by blaming yourself and not other people or circumstances, the solution is
at your fingertips. Stick to positive thinking and stay focused on your goal, and your world and that of the people
around you w ill never be the same again. I think this is w hat Syria and the Arab world need today.
O S S A M A H A S S A N E IN
Dr. Ossama Hassanein is chairman o f the board o f TechWadi. Based in Silicon
Valley in the United States, TechWadi's m ission is to serve the needs o f Arab
Am erican professionals in the Technology Industry in North Am erica and the
M iddle East. One o f TechWadi's objectives is to connect mem bers to each other
and to the MENA region. TechWadi has been conducting global entrepreneur­
ship forums in the U.S., and, m o st recently, in MENA. These forums facilitate
building bridges betw een Silicon Valley and M E and provide high-impact mentorship to aspiring entrepreneurs.
Hassanein is an entrepreneur, mentor, and venture capitalist. Over the
last 35 years, he has managed over US$1 billion in 14 international technology
funds, spearheaded the mezzanine financing o f m ore than 80 IT companies, and
been the founder or chairman o f eight successful technology companies. He is
currently General Partner w ith Global Technology Innovation Partners (GTIP), a
venture capital firm focused on developing entrepreneurship in the region. He is
also chairman o f the boards o f BDNA, Echovox, and Zong, as w ell as TechWadi
and the Egyptian American Society. Ossama was born and raised in Alexandria,
Egypt, where he still m aintains close fam ily ties and enduring friendships.
Chapter Sixteen M anagers as Leaders
> W h a ta re y o u rth o u g h ts on entrepreneurship?
415
Entrepreneurship is alive and well in the region... Let there
be no doubt about the investm ent opportunities in MENA (Middle East and North Africa region) or the entrepre­
neurial qualities of its people.
> W h a t do new and a s p irin g b u s in es s ow ners need?
Entrepreneurial com panies are spawned from
many sources including corporations, incubators, universities, governm ent-funded technology parks, NGOs,
fam ily businesses, and others. They all share com m on needs, m ost im portantly a supportive ecosystem to
accelerate their grow th. A good ecosystem w ould include skilled human resources, angel investors, venture
capitalists, business accelerators, corporate partners, and m entors. M entors are needed, badly. W hile money,
talent, and infrastructure are vital, MENA entrepreneurs need com passionate veterans w ho w ould take a per­
sonal interest in coaching them on the com plexities of starting and grow ing a business.70
> W h at is th e role o f t h e A rabs living in o th e r areas o f t h e globe in fa c ilita tin g business o p p o rtu n ities
in th e region?
The role of Arabs living around the world is already playing a very im portant role. We subcon­
tract our engineering and product development projects to effective teams in MENA, we provide angel financing
to promising Arab entrepreneurs, internships to aspiring grads and undergraduates, and support in business plan
com petition at leading universities such as MIT and UC Berkeley. Nonetheless, w e have a long way to go. We
need to create effective regional business accelerators that act as magnets for entrepreneurs, dedicate "heart
and m ind” to m entor at least 50 promising entrepreneurs each year, and create an effective venture capital fund
to accelerate the growth and international expansion of those companies and teams that are destined to become
world-class successes.
> W h at s tru c k you during your recent v is its t o th e region?
We are very impressed w ith the degree to
which entrepreneurship-fever is spreading in Egypt, Lebanon, and Jordan. We feel that a new, positive, unifying
force is taking hold at the grassroots levels, and that this energy should be nourished and amplified, not just
through our words and moral support, but through real programs and action on the ground.
Glossary
Absenteeism |
Big Five model | ^jj^ll A.h^'I Aj .^ .ii'l "Uj£a
m L»JI
The fa ilu re to s h o w up fo r w o rk.
Active Listening | -k^ili ^UluVl
L iste n in g fo r fu ll m e a n in g w ith o u t m aking p re m a tu re ju d g m e n ts
o r in te rp re ta tio n s .
Adjourning stage | (JU*ll jjjs ) L ijiji A_kjA
The fin a l stage o f g ro u p d e v e lo p m e n t fo r te m p o ra ry g ro u p s,
d u rin g w h ic h g ro u p m e m b e rs are co n ce rn e d w ith w ra p p in g up
a c tiv itie s ra th e r th a n ta s k p e rfo rm a n ce .
Affective component | ^a^Ui j^ i» ll
The p a rt o f an a ttitu d e th a t's th e e m o tio n a l o r fe e lin g part.
Affirmative action |
A.,-.,j^li Jalj ( " L isVl J ja) ^ Aili
A p e rs o n a lity tra it m od e l th a t e xa m in e s e x tra v e rs io n ,
a gre e a b le n ess, co n scie n tio u sn e ss, e m o tio n a l s ta b ility , and
o p e nn e ss to experience.
Body language | i«a.ll Ail
G estures, fa cia l c o n fig u ra tio n s , and o th e r b o d y m o v e m e n ts th a t
c o n v e y m ea n in g .
Boundaryless organization | (Wl A a ^ lj j j i i V ^i) A_pj.ii.yJl A^hull
An o rg a n iz a tio n w h o s e de sig n is n o t d e fin e d by o r lim ite d to
th e h o riz o n ta l, v e rtic a l, and e xte rn a l b o u n d a rie s im p o s e d by a
p re d e fin e d structu re .
Bounded rationality | s^jiaJi Ajj^Ul
Aj s ^L^ji Qj'^' ^ll ( _igj ^Ill " I jj IjaII
O rg a n iz a tio n a l p ro g ra m s th a t enhance th e sta tu s o f m e m b e rs of
p ro te cte d gro u p s.
Association of Southeast Asian Nations (ASEAN) |
(jU J ) LiuJ jj-^ M ji^ ^^i aLjIj
A tra d in g a llia n c e o f 10 S o u th e a st A sia n na tio ns.
Assumed similarity | ^ j l i J i -ulujll
The a s s u m p tio n th a t o th e rs are like oneself.
Attitude surveys | Ajjl^ii.Vl " U j i l l
S u rve ys th a t e lic it resp o n se s fro m e m p lo ye e s th ro u g h q u e stio n s
a b o u t h o w th e y feel a b o u t th e ir jo b s , w o rk g ro u p s , su p e rv is o rs , or
th e o rg a n iza tio n .
Attitudes | <jaljxJl
D ecision m aking th a t is ra tio n a l b u t lim ite d (b o u n d e d ) by an
in d iv id u a l's a b ility to process in fo rm a tio n .
Bureaucratic | y-^lj3jjjj
C o m m itte d to th e p a rtic u la rs o f o rg a n iza tio n a l procedures.
Bureaucracy | AjLIjsjjjj
A fo rm o f o rg a n iz a tio n ch a ra cte rize d by d iv is io n o f la b o r, a cle a rly
d e fin e d h ie ra rch y, d e ta ile d rules and re g u la tio n s , and im p e rso n a l
re la tio n sh ip s.
Business model | JU&Vl
A d e sig n fo r h o w a c o m p a n y is g o in g to m ake m oney.
Business performance management (BPM) software |
(^j
^ j)
el^i ojljL a .
E va lu a tive sta te m e n ts , e ith e r fa v o ra b le o r u n fa v o ra b le , co n ce rn in g
o b je cts, p e o p le , o r events.
IT s o ftw a re th a t p ro v id e s key p e rfo rm a n c e in d ic a to rs to help
m an a g e rs m o n ito r e ffic ie n c y o f p ro je cts and e m p lo ye e s. A lso
kn o w n as c o rp o ra te p e rfo rm a n c e m a n a g e m e n t so ftw a re .
Attribution theory | ‘.i"»*'l J l A-alili ^W-ji ji j j* ll Ajjhj
Capabilities | " ijis
A th e o ry used to e xp la in h o w w e ju d g e p e o ple d iffe re n tly ,
d e p e n d in g on w h a t m e a n in g w e a ttrib u te to a g ive n beh avior.
An o rg a n iz a tio n 's skills and a b ilitie s in d o in g th e w o rk a c tiv itie s
needed in its business.
Authority | ALLJl
Centralization | A jjij^
The rig h ts in h e re n t in a m a n a g e ria l p o s itio n to te ll peo ple w h a t to
do and to exp e ct th e m to do it.
The degree to w h ic h d e cisio n m aking is c o n ce n tra te d at upper
levels o f th e o rg a n iza tio n .
Autocratic style | ^ I ijI.V I k^ill
Certainty | oA
A leader w h o d ic ta te s w o rk m e th o d s, m akes u n ila te ra l d e cisio n s,
and lim its e m p lo y e e p a rtic ip a tio n .
A s itu a tio n in w h ic h a d e cisio n m aker can m ake a ccurate d e cisio n s
because all o u tc o m e s are know n.
Autonomy | J**ll
Chain of command | s^ljSli A U .
Ajj ^JI
The de g re e to w h ic h a jo b p ro v id e s s u b sta n tia l fre e d o m ,
in d e p e n d e n ce , and d is c re tio n to an in d iv id u a l in sch e d u lin g w o rk
and d e te rm in in g th e p ro ce d u re s to be used in c a rryin g it out.
The lin e o f a u th o rity e x te n d in g fro m u p p e r o rg a n iz a tio n a l leve ls to
th e lo w e s t le ve ls, w h ic h cla rifie s w h o re p o rts to w h o m .
Basic corrective action | A j.lJ Aja ja .^i "W j*.j
S o m e o n e w h o acts as a ca ta lyst and assum es th e re s p o n s ib ility fo r
m a n a g in g th e ch ange process.
C o rre ctive a ctio n th a t lo o ks at h o w and w h y p e rfo rm a n c e de via ted
b e fore c o rre c tin g th e so u rce o f d e via tio n .
BCG matrix | ^
y.
A iji^
A s tra te g y to o l th a t g u id e s reso u rce a llo c a tio n d e cisio n s on the
basis o f m a rke t share and g ro w th rate o f SBUs.
Behavior | ^jluJI
The a ctio n s o f people.
Behavioral component | ^Sjluli j j U l
The p a rt o f an a ttitu d e th a t refers to an in te n tio n to behave
in a ce rta in w a y to w a rd so m e o n e o r s o m e th in g .
Behavioral theories | A S jU l "L jh ill
Le a de rsh ip th e o rie s th a t id e n tify b e h a vio rs th a t d iffe re n tia te
e ffe c tiv e leaders fro m in e ffe c tiv e leaders.
Change agent | jjjilli j ^ i c
Channel | slia
The m e d iu m a lo n g w h ic h a m essage travels.
Charismatic leaders | (Ajajj SII) sitaVi sijSll
E n th u sia stic, s e lf-c o n fid e n t leaders w h o s e p e rs o n a litie s and
a ctio n s in flu e n ce p e o ple to b e have in ce rta in ways.
Classical approach | ^Sju^ I ^^i^ll
The firs t stu d ie s o f m a n a g e m e n t, w h ic h e m p h a size d ra tio n a lity
and m aking o rg a n iz a tio n s and w o rk e rs as e ffic ie n t as possible.
Classical view | ^Sju^ I jjh iJ I
The v ie w th a t m a n a g e m e n t's o n ly social re s p o n s ib ility is to
m a xim ize p ro fits.
465
466
G lossary
Closed systems | 4ik * ^uksl
Corporate strategy | <£j^H (Ul*ll) 4ja.uIji.VI
S yste m s th a t are n o t in flu e n ce d by and do n o t in te ra ct w ith th e ir
e n v iro n m e n t.
An o rg a n iz a tio n a l s tra te g y th a t spe cifie s w h a t b u sinesses a
co m p a n y is in o r w a n ts to be in and w h a t it w a n ts to do w ith th o se
businesses.
Code of ethics | J«JI
A fo rm a l s ta te m e n t o f an o rg a n iz a tio n 's p rim a ry va lu e s and th e
e thical rules it exp e cts its e m p lo ye e s to fo llo w .
Coercive power | 4j j . l l 3_LiuilI
Creativity | ^I^VI
The a b ility to co m b in e ideas in a u n iq u e w a y o r to m ake unusual
a sso cia tio n s b e tw e en ideas.
T he p o w e r a le a d e r has to p u n ish o r co n tro l.
Credibility |
Cognitive component | y i j iJ I j^ j* ll
The d e g re e to w h ic h fo llo w e rs p erceive so m e o n e as honest,
co m p e te n t, and able to inspire.
T he p a rt o f an a ttitu d e th a t's m ad e up o f th e b e lie fs, o p in io n s ,
k n o w le d g e , o r in fo rm a tio n h e ld b y a person.
Cognitive dissonance | yijx J I jil2ll
A n y in c o m p a tib ility o r in c o n s is te n c y b e tw e en a ttitu d e s o r betw een
b e h a v io r and attitu de s.
Commitment concept |
Cross-functional teams |
(^..-..j^ll J^l-
^!) 4^uuVl 0-^*Ja1I JaxJI j j i
W o rk te a m s c o m p o se d o f in d iv id u a ls fro m v a rio u s fu n c tio n a l
specialties.
Decentralization | Su ^j *^ !
j>j$i*
A c o n c e p t th a t says th a t plans s h o u ld e xte nd fa r e n o u g h to m eet
th e c o m m itm e n ts m ade w h e n th e p la n s w e re d e veloped.
The degree to w h ich lo w e r-le ve l e m p lo ye e s p ro vid e in p u t o r a ctually
m ake decisions.
Decision | j l j
Communication | J -^ jVI
A ch oice fro m tw o o r m o re a lte rn a tive s.
T he tra n s fe r and u n d e rs ta n d in g o f m ea n in g .
Communication networks |
Decision criteria | jljill il^Jl jjjl**
il£ i«
C rite ria th a t d e fin e w h a t is im p o rta n t o r re le va n t in re s o lv in g a
p ro b le m .
T he v a rie ty o f p a tte rn s o f ve rtic a l and h o rizo n ta l flo w s of
o rg a n iz a tio n a l c o m m u n ic a tio n .
Decisional roles | jljill
Communities of practice |
u* U j^jl^ll u* Ar.jt.y*.
G rou p s o f p e o ple w h o share a co n ce rn , a set o f p ro b le m s , or
a passion a b o u t a to p ic and w h o deepen th e ir k n o w le d g e and
e xp e rtis e in th a t area by in te ra c tin g on an o n g o in g basis.
jj-
M a n a g e ria l roles th a t re vo lve a ro u n d m aking choices.
Decoding | » ji^ l\jj*jJ ll
R e tra n sla tin g a s e n d e r's m essage.
Decruitment | l* i u . 3 * y JU*JI
Competitive advantage | 4ju il 2 »jj*
R educing an o rg a n iz a tio n 's w o rk fo rc e .
T he fa c to r th a t sets an o rg a n iza tio n a p a rt; its d is tin c tiv e edge.
Democratic style | y ^ l j i ^ l - ^ ll
Competitive strategy | 4ju il 2 ^ j j I j U
An o rg a n iz a tio n a l s tra te g y fo r h o w an o rg a n iz a tio n w ill co m p e te
in its business(es).
Compressed workweek |
J*c
Departmentalization | 4. .
A w o rk w e e k in w h ic h e m p lo ye e s w o rk lo n g e r h o u rs per d a y but
fe w e r days per w eek.
Conceptual skills | o^j^jll l l j l j i l l il^Jlj ^I^uV'j j jn J llj
^Kll SijAill iljl^^ll
T he a b ility to th in k and to co n ce p tu a lize a b o u t a b stra ct and
c o m p le x situ a tio n s .
Perceived in c o m p a tib le d iffe re n ce s th a t re s u lt in in te rfe re n ce or
o p p o s itio n .
j ^jlall ujj
3
JI y i <jjlkjll - . 3 ^ l J
The basis on w h ic h jo b s are g ro u p e d to g e th e r.
Diagonal communication | ^ jjiill lV l^ 3V I
C o m m u n ic a tio n th a t cuts across w o rk areas and o rg a n iz a tio n a l
levels.
Directional plans | ■^jjll
Conflict | ^ Ijill/^ lj^ ll
Consideration |
J**ll O jji
A leader w h o in v o lv e s e m p lo ye e s in d e cisio n m a kin g , delegates
a u th o rity , and uses fe e d b a ck as an o p p o rtu n ity fo r coaching
em p lo ye e s.
^Ij-^VI j <ijllj
o-Lillj ^ 1*jj
The exte nt to w h ic h a leader has w o rk re la tio n sh ip s characterized by
m utu a l tru s t and respect fo r g ro u p m e m b e rs' ideas and feelings.
Contingency approach (or situational approach) |
(^jluill
Plans th a t are fle x ib le and th a t set o u t g e neral g u id e lin e s.
Distributive justice | S“jjjJll <ll^*Jl
Perceived fa irn e ss o f th e a m o u n t and a llo c a tio n o f re w a rd s am o n g
in d ivid u a ls.
Division of labor (or job specialization) |
The b re a kd o w n o f jo b s in to n a rro w and re p e titiv e tasks.
^ ^ l j!) ^jij^ll
^jjls^ll structure | plusVl
Divisional
J c yjj^ll y«jh'n'l Ji^ll
A m a n a g e m e n t ap p ro a ch th a t says th a t o rg a n iz a tio n s are d iffe re n t,
face d iffe re n t s itu a tio n s (co n tin g e n cie s), and re q u ire d iffe re n t w ays
o f m an a g in g .
An o rg a n iz a tio n a l s tru c tu re m ade up o f sep a ra te , s e m ia u to n o m o u s
u n its o r d ivisio n s.
Control process | ^i^-ll 4ji*c
The p la n n e d e lim in a tio n o f jo b s in an o rg a n iza tio n .
A th re e -s te p process o f m e a su rin g a ctual p e rfo rm a n c e , co m p a rin g
actual p e rfo rm a n c e a g a in st a s ta n d a rd and ta k in g m an a g e ria l
actio n to c o rre c t d e v ia tio n o r in a d e q u a te standards.
Downward communication | J . J J c l u* ^jjl^VI lV l^ 3V I
Downsizing | ^ jISj
Controlling | Sj^iuJl
C o m m u n ic a tio n th a t flo w s d o w n w a rd fro m a m a n a g e r to
em p lo ye e s.
The process o f m o n ito rin g , c o m p a rin g , and c o rre c tin g w o rk
p e rfo rm a n ce .
Dysfunctional conflicts | el-Vl? <k^ll i l c l j ^ l l
Core competencies | 4jui.V l lU U ill
Effectiveness | V c li
The o rg a n iz a tio n 's m a jo r va lu e -cre a tin g ca p a b ilitie s th a t d e te rm in e
its c o m p e titiv e w e a p o ns.
D oing th e rig h t th in g s , o r c o m p le tin g a c tiv itie s so th a t
o rg a n iz a tio n a l g o a ls are attained.
C o n flicts th a t p re v e n t a g ro u p fro m a ch ie vin g its goals.
G lossary
Efficiency | s*lȣ
Expert power |
D oing th in g s rig h t, o r g e ttin g th e m o s t o u tp u t fro m th e least
a m o u n t o f inputs.
P ow er th a t is based on e xp e rtise , special skills, o r kn o w le d g e.
Ego strength | liVl s j
M aking p ro d u cts d o m e s tic a lly and se llin g th e m abroad.
A p e rs o n a lity m easure o f th e stre n g th o f a p e rso n 's co n victio n s.
Emotional intelligence (EI) | ^i^l*1l *l£i1l
The a b ility to n o tic e and to m an a g e e m o tio n a l cues and
in fo rm a tio n .
467
“j+ i J c V f^ l 3-KLJl
Exporting | j j - ^ j
External environment | <jL.jliJl ^jj+ll
Factors and fo rce s o u ts id e an o rg a n iz a tio n th a t a ffe ct th e
o rg a n iz a tio n 's p e rfo rm a n ce .
Family-friendly benefits | (UiUll
^l) Sj^^l
U j*
B enefits th a t a cco m m o d a te e m p lo ye e s' needs fo r w o rk -life balance.
Emotions | <^Wj*1l
Intense fe e lin g s th a t are d ire cte d at so m e o n e o r s o m e th in g .
Employee empowerment | ^ > jJ l
G ivin g e m p lo y e e s m o re a u th o rity (p o w e r) to m ake d ecisions.
Employee engagement |
4£
jli*
E m p lo ye e s being co n n ecte d to , sa tisfie d w ith , and e n th u sia stic
a b o u t th e ir jobs.
Employee productivity | ^ k j J l 4j.Uii
A p e rfo rm a n c e m easure o f b o th e ffic ie n c y and effectiveness.
Employee recognition programs |
still* g * l j
P ro g ra m s th a t co n s is t o f p e rsonal a tte n tio n and e xp re ssin g
in te re s t, a p p ro v a l, and a p p re c ia tio n fo r a jo b w e ll done.
Feedback | <*.lj1l ipijll
The degree to w h ic h ca rry in g o u t w o rk a c tiv itie s re q u ire d by a jo b
resu lts in an in d iv id u a l's o b ta in in g d ire c t and clear in fo rm a tio n
a b o u t his o r her p e rfo rm a n c e e ffectiveness.
Fiedler contingency model | V S jJl siiill ^ i jl-ji
A le a d e rsh ip th e o ry th a t p ro p o se d th a t e ffe ctive g ro u p
p e rfo rm a n c e d e p en d e d on th e p ro p e r m atch b e tw e en a le a d e r's
s tyle and th e de g re e to w h ic h th e s itu a tio n a llo w e d th e leader to
c o n tro l and influence.
Filtering |
The d e lib e ra te m a n ip u la tio n o f in fo rm a tio n to m ake it a p p e a r m ore
fa v o ra b le to th e receiver.
Empowerment | O^S^jll
First mover | (ji+*1l) JjVl i^ j^ ll
The act o f in cre a sin g th e d e cisio n -m a kin g d is c re tio n o f w o rke rs.
An o rg a n iz a tio n th a t is firs t to b rin g a p ro d u c t in n o v a tio n to m arket
o r use a n e w process in n o va tio n .
Encoding |
C o n v e rtin g a m essage in to sym bo ls.
Environmental complexity | 3hj^«'l ^-^l
First-line managers | jwli*1l jj-*ll
- “»Jll < -.jJ
The n u m b e r o f c o m p o n e n ts in an o rg a n iza tio n 's e n v iro n m e n t and
th e e xte nt o f th e o rg a n iz a tio n 's kn o w le d g e a b o u t th o se com p o n e n ts.
Environmental uncertainty | ^jj+ll jijjll
The de g re e o f ch ange and c o m p le x ity in an o rg a n iz a tio n 's
e n v iro n m e n t.
Equity theory | <jl^iVl
The th e o ry th a t an e m p lo ye e co m p a re s his o r her jo b 's in p u t:
o u tc o m e s ra tio w ith th a t o f re le va n t o th e rs and th e n co rre cts any
in e q u ity.
Escalation of commitment | pljjJVl
An increased c o m m itm e n t to a p re v io u s d e cisio n d e sp ite evidence
th a t it m a y have been a p o o r d e cision.
Esteem needs | clill
jj-2
A p e rs o n 's needs fo r in te rn a l fa cto rs, such as se lf-re sp e ct,
a u to n o m y , and a c h ie v e m e n t, and e xte rn a l fa c to rs , such as status,
re c o g n itio n , and a tte n tio n .
The lo w e s t level o f m a n a g e m e n t w h o m an a g e th e w o rk of
n o n m a n a g e ria l e m p lo ye e s and ty p ic a lly are d ire c tly o r in d ire c tly
in v o lv e d w ith p ro d u c in g th e o rg a n iz a tio n 's p ro d u cts o r se rvicin g
th e o rg a n iz a tio n 's cu sto m e rs.
Flexible w ork hours (flextime) | (<-ij*1l J**1l clsjl) 3 jj* J*c cAclu
A sch e d u lin g system in w h ic h e m p lo ye e s are re q u ire d to w o rk a
ce rta in n u m b e r o f h o u rs per w e e k b u t are free , w ith in lim its , to
v a ry th e h o u rs o f w o rk.
Foreign subsidiary | y . j l i £ ji
A d ire c t in v e s tm e n t in a fo re ig n c o u n try th a t in v o lv e s setting
up a se parate and in d e p e n d e n t fa c ility o r office.
Formal communication | V “" j c V l^ jl
C o m m u n ic a tio n th a t takes place w ith in p re scrib e d o rg a n iz a tio n a l
w o rk a rra n g e m e n ts.
Formal planning department | y ^ j l l KK^'ll Sjl^J
A g ro u p o f p la n n in g sp e cia lists w h o s e sole re s p o n s ib ility is
h e lp in g to w rite o rg a n iz a tio n a l plans.
Formalization | Jcljill j c U j . V l j+c J**Jl
Ethics | <£^iVl
P rin cip le s, va lu e s, and b e lie fs th a t d e fin e w h a t is rig h t and w h a t is
w ro n g behavior.
Ethnocentric attitude |
^
jl^ V l 4jJl
^ill ^ij*Jl j^aj*Jl i j i j j il£jcVl ^ 1) ^Sj*1l OajJl
(JljcVl
The p a ro c h ia lis tic b e lie f th a t th e best w o rk a p p ro a ch e s and
pra ctice s are th o s e o f th e h o m e co u n try.
Euro | j j j J l
jju jj
H o w sta n da rd ize d an o rg a n iz a tio n 's jo b s are and th e e x te n t to
w h ic h e m p lo y e e b e h a vio r is g u id e d b y rules and procedures.
Forming stage | JjS^jll
The firs t stage o f g ro u p d e ve lo p m e n t, in w h ic h people jo in th e g ro u p
and th e n d e fin e th e g ro u p 's p u rpose, structu re , and leadership.
Franchising | jlj^Vl
An a g re e m e n t in w h ic h an o rg a n iz a tio n g ive s a n o th e r o rg a n iz a tio n
th e rig h t to use its n a m e and o p e ra tin g m eth o d s.
A s in g le c o m m o n European currency.
Free market economy | j-*ll Jjwll i - ^ 2sl
European Union (EU) | ^
An e c o n o m ic system in w h ic h resources are p rim a rily o w n e d and
c o n tro lle d by th e p riv a te sector.
jjj V i
i^ v i
An e c o n o m ic and p o litic a l p a rtn e rs h ip o f 27 d e m o c ra tic European
c o u n trie s created as a u n ifie d e c o n o m ic and tra d e e n tity. Three
a d d itio n a l c o u n trie s have a p p lie d fo r m e m b e rsh ip .
Expectancy theory | ^ajjll
The th e o ry th a t an in d iv id u a l te n d s to act in a ce rta in w a y , based
on th e e xp e c ta tio n th a t th e act w ill be fo llo w e d by a g ive n o u tco m e
and on th e a ttra c tiv e n e ss o f th a t o u tc o m e to th e in d iv id u a l.
Functional conflicts | W - V -S ^ jll c lc lj^ ll
C o n flicts th a t s u p p o rt a g ro u p 's g o a ls and im p ro v e its
p e rfo rm a n ce .
Functional strategies | d**1l
<£1*1*11 cL —jJljj^Vl
The stra te g ie s used by an o rg a n iz a tio n 's v a rio u s fu n c tio n a l
d e p a rtm e n ts to s u p p o rt th e o rg a n iz a tio n 's c o m p e titiv e strate g y.
468
G lossary
Functional structure | ^ k j J£ja
Hierarchy of needs theory |
An o rg a n iz a tio n a l de sig n th a t g ro u p s to g e th e r s im ila r o r related
o c c u p a tio n a l specialties.
M a s lo w 's th e o ry th a t th e re is a h ie ra rc h y o f fiv e hu m a n needs:
p h y s io lo g ic a l, sa fe ty, so cia l, esteem , and se lf-a ctu a liza tio n .
Fundamental attribution error | i-uVI
^uiul tLi.
^m j JI J mUi'I A j j t
High-high leader | J c l :jla
The te n d e n c y to u n d e re s tim a te th e in flu e n ce o f e xte rn a l fa cto rs
and o v e re s tim a te th e in flu e n ce o f in te rn a l fa c to rs w h e n m aking
ju d g m e n ts a b o u t th e b e h a v io r o f others.
A leader high in bo th in itia tin g s tru c tu re and co n sid e ra tio n
behaviors.
General environment | AmU I AiJI
W o rk p ra ctice s th a t lead to bo th h ig h in d iv id u a l p e rfo rm a n c e and
h ig h o rg a n iz a tio n a l p e rfo rm a n ce .
B road e x te rn a l c o n d itio n s th a t m a y a ffe ct an o rg a n iza tio n .
High-performance w ork practices | »!■&! AJlc.
^ I ujU m
General administrative theory | AjjhVI AmUI Ajjt-ll
Human relations view of conflict | ^ Ij^ U Ajjlujyi ola^*lI jjL-m
An app ro a ch to m a n a g e m e n t th a t fo cu ses on d e scrib in g w h a t
m an a g e rs do and w h a t co n s titu te s g o o d m a n a g e m e n t practice.
The vie w th a t conflict is a natural and inevitable o utcom e in any group.
Geocentric attitude |
*laJ
A m e th o d o f p la n n in g to e n su re th a t th e o rg a n iza tio n has th e rig h t
n u m b e r and kinds o f capable p e o ple in th e rig h t places and at the
rig h t tim es.
^'KhjIaaII J^ial _ _kjJ j l e 4_Ajla Aj.z'*
^
A w o rld -o rie n te d v ie w th a t fo cu ses on using th e best appro a ch e s
and p e o ple fro m a ro u n d th e globe.
Global sourcing (or globaj outsourcing) |
JaVl AiKjll J e U-AJ&I -ll*ll ^l^jl
Human resource planning | AjjAJI jjlj^ ll -kLiJ
Human skills | Ajj AJI liiljl^JI
The a b ility to w o rk w e ll w ith o th er people in d iv id u a lly and in a group.
AI aC _ j k j j j l ^IjM t l j i
Hygiene factors | s-j-^ll j ^ l l
P urchasing m a te ria ls o r la b o r fro m a ro u n d th e w o r ld based on
lo w e s t cost.
V l$-&l AijLjJI ^a AjjJLm AjuIU JmIjc
Factors th a t e lim in a te jo b d is sa tisfa ctio n b u t d o n 't m o tiva te .
Global company | AjJlc A£j“
Idea champion |
An in te rn a tio n a l c o m p a n y th a t centralizes m a n a g e m e n t and o th e r
d e cisio n s in th e h o m e c o u n try.
An in d iv id u a l w h o a c tiv e ly and e n th u s ia s tic a lly s u p p o rts new
ideas, b u ild s s u p p o rt, o v e rco m e s resistance, and e n su re s th a t
in n o v a tio n s are im p le m e n te d .
Globe | (JUI
The G lobal L e a de rsh ip and O rg a n iza tio n a l B e h a vio r E ffectiveness
research p ro g ra m , a p ro g ra m th a t stu d ie s c ro ss-cu ltu ra l le a d e rsh ip
behaviors.
l* »j£a ^UjJj _ j L j ^a j^Ijm
Immediate corrective action | Ajjja
iiiUIj^.1
C o rre ctive actio n th a t addresses p ro b le m s at o nce to get
p e rfo rm a n c e back on track.
Importing | ^IjjjuI
Goals (objectives) | <jl:»1
A c q u irin g p ro d u cts m ade a b ro a d and s e llin g th e m d o m e s tic a lly .
D esired o u tc o m e s o r targets.
Goal-setting theory | <jI:»Vl
Industrial revolution | Ajell^ll SjjjII
A jjt
The p ro p o s itio n th a t s p e cific g o a ls in cre a se p e rfo rm a n c e and th a t
d iffic u lt g o a ls, w h e n accepted, re su lt in h ig h e r p e rfo rm a n c e th a n
do easy g o a ls .
A p e rio d d u rin g th e late e ig h te e n th c e n tu ry w h e n m ach in e p o w e r
w a s s u b s titu te d fo r hu m a n p o w e r, m a kin g it m o re e c o n o m ic a l to
m a n u fa c tu re g o o d s in fa c to rie s th a n at hom e.
Grapevine | A.u>JI ^a ^^ujll
Informal communication | y^ujll
jj£
Jl^SVI .Li.
Green management | (jIjjcVI j je ^a AjjII
jj^
Jl^JVI
C o m m u n ic a tio n th a t is n o t d e fin e d by an o rg a n iz a tio n 's s tru c tu ra l
h ierarchy.
The in fo rm a l o rg a n iz a tio n a l c o m m u n ic a tio n n e tw o rk.
iktj ^jlI) * I j ^ i l I SjhVI
A fo rm o f m a n a g e m e n t in w h ic h m an a g e rs c o n sid e r th e im p a c t of
th e ir o rg a n iz a tio n on th e n a tu ra l e n v iro n m e n t.
Information overload |
o ImjW
I ^ S li
A s itu a tio n in w h ic h in fo rm a tio n exceeds a p e rso n 's p ro ce ssin g
capacity.
Group | A c j^ J I
T w o o r m o re in te ra c tin g and in te rd e p e n d e n t in d iv id u a ls w h o com e
to g e th e r to a chieve s p e cific goals.
Informational roles | ^ j Ij^VI
j j :1I
M a n a g e ria l roles th a t in v o lv e c o lle c tin g , re c e iv in g , and
d is s e m in a tin g in fo rm a tio n .
Group cohesiveness | A c j^ J I i^uUJ
The d e g re e to w h ic h g ro u p m e m b e rs are a ttra cte d to o ne a n o th e r
and share th e g ro u p 's goals.
Groupthink |
Jjiil 1
^ 1j]| (ojiljM JJ^ jl OJiliA)
^ill 4CjA.^il i a j ill J^all
A p h e n o m e n o n in w h ic h a g ro u p e xe rts e xte n sive p re ssu re on an
in d iv id u a l to a lig n his o r her o p in io n w ith o th e rs ' o p in io n s.
Initiating structure |
i^ I: aVI
J a*JI ^la^c j J a*JI - jt 'j
jj:^I j j J
The e x te n t to w h ic h a leader d e fin e s his o r her role and th e roles o f
g ro u p m e m b e rs in a tta in in g goals.
Innovation |
j LSjjVI
The process o f tu rn in g cre a tive ideas in to u seful p ro d u c ts o r w o rk
m eth o d s.
Growth strategy | j*-ll A j. 2ljiul
A c o rp o ra te s tra te g y th a t is used w h e n an o rg a n iz a tio n w a n ts to
e x p a n d th e n u m b e r o f m a rke ts se rve d o r p ro d u c ts o ffe re d , e ith e r
th ro u g h its c u rre n t b u sin e ss(e s) o r th ro u g h n e w b usiness(es).
Intellectual property | AjjSill Aj£UI
P ro p rie ta ry in fo rm a tio n th a t's c ritic a l to an o rg a n iz a tio n 's e ffic ie n t
and e ffe ctive fu n c tio n in g and co m p e titive n e ss.
Halo effect | AJlgJI jjSti
Interactionist view of conflict | ^ Ij^ H ^Jclaill j j t i J
A g e neral im p re s s io n o f an in d iv id u a l th a t is in flu e n c e d by a sin g le
ch a ra cte ristic.
The v ie w th a t so m e c o n flic t is necessary fo r a g ro u p to p e rfo rm
e ffe ctive ly.
Hawthorne Studies | O j j j 4 ^ lu ljj
Interpersonal communication | Aj .^ A ' I liiVl^SVI
A series o f stu d ie s d u rin g th e 1920s and 1930s th a t p ro v id e d new
in s ig h ts in to in d iv id u a l and g ro u p beh avior.
C o m m u n ic a tio n b e tw e en tw o o r m o re people.
Heuristics |
The seven e le m e n ts in v o lv e d in tra n s fe rrin g m e a n in g fro m one
person to another.
j Ij
^I ^l^Jl
^|j :^1I
-°j ^ 1I J e
Rules o f th u m b th a t m an a g e rs use to s im p lify d e cisio n m aking.
:&lja
Interpersonal communication process | ^IjaVl j j j Aj .^ A 'I^iYl^jVI AjLio