Principles of
Management 2.0
Mason Carpenter, Talya Bauer, Berrin Erdogan, and Jeremy Short
©2013 Flat World Knowledge, Inc.
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Chapter 9
Leading People and Organizations
 Define what leadership is and
identify traits of effective
leaders
 Describe behaviors that
effective leaders demonstrate
 Specify the contexts in which
various leadership styles are
effective
 Explain the concepts of
transformational,
transactional, charismatic,
servant, and authentic
leadership
 Develop your own leadership
skills
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Leadership and the P-O-L-C Framework
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Leadership
• Leadership in an organization develops the
vision, creates the environment, and inspires
individuals and the team to pursue goals and
consistently achieve results substantially
greater than they would on their own.
• This is achieved within the framework of the
organization’s values and aimed at the
realization of the organization’s vision.
Leadership
Knowledge
& Skills
Wisdom About Human Nature
Fundamental Traits
•
•
•
•
Characters
Learning
Self-esteem
Courage to lead
• Transformational
• Positive attitude
• Energy
Leadership Attributes
• Strong personal
convictions
• Visionary
• Emotional bonds
• Inspirational
• Team oriented
• Risk takers
• Drive to excel
Fundamental Traits
• Personal character: Beliefs and values that guide actions and reflect
positively on yourself and your company.
• Willingness to learn: The ability and desire of an individual to learn
continuously, as influenced by intense curiosity, intellectual capability, and humility.
• Self-esteem: Truly knowing yourself, being confident, and feeling
comfortable with who you are.
• Desire and courage to lead: I want to lead, I will lead, and I accept
the “reality” of the responsibility and accountability that accompanies leadership.
• Transformational: The desire, courage, and capacity to initiate and
implement innovative change.
• Positive attitude: An uplifting and encouraging mindset that influences
how we perceive & respond to ourselves, others, & the world.
• Energy: The physical, emotional, spiritual, & intellectual power that fuels & is
fueled by inner desires & propels the pursuit of leadership.
Leadership Attributes
•
•
•
•
•
•
•
Strong personal convictions
Visionary
Emotional bonds
Inspirational
Team oriented
Risk takers
Drive to excel
Knowledge and Skills
• Wisdom about human nature: Insight into what makes people
tick, comprehending the diversity, & the ability to act accordingly.
• Communication: The skill to listen effectively to acquire and disseminate
knowledge and ideas, speak persuasively, write clearly, and read rapidly with high
comprehension.
• Business orientation: Understanding external factors and aligning
resources to attain a balanced scorecard.
• Building trust: The ability to create a mutual sense of reliability and
assurance in relationships based on competence and personal character.
• Empowerment: Creating and maintaining an environment where people
want to, are enabled, and feel compelled to take action—with personal
accountability for results.
Knowledge and Skills
• Team building: Creating a group of individuals who have a shared mission,
common approach, and mutual accountability.
• Nurturing: An attitude of caring and promoting development of individuals
and teams to ensure their success.
• Creating a vision: The ability to consider multiple, seemingly unrelated
data points then developing and articulating a motivational view of the future that
is not limited by today’s reality.
• Dealing with ambiguity: Ability to balance things that are seemingly
at odds, through exploration and discovery, without a given set of rules.
• Decisiveness: The ability to decide, in a timely manner, and imperfect data.
• Change management: The skill to cultivate successful change.
Leadership is the act of influencing
others to work toward a goal
Formal leaders hold
a position of
authority and may
utilize the power that
comes from their
position, as well as
their personal power
to influence others
Informal leaders are
without a formal
position of authority
within the organization
but demonstrate
leadership by
influencing others
through personal
forms of power
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Who Is a Leader?
Traits Associated with Leadership
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Big 5 Personality Traits
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Discussion
• What traits are evident in leaders you admire? Are they
consistent with the traits discussed in this chapter? If not,
why is this person effective despite the presence of
different traits?
• Can the findings of trait approaches be used to train
potential leaders? Which traits seem easier to teach?
Which are more stable?
• How can organizations identify future leaders with a given
set of traits? Which methods would be useful for this
purpose?
• What other traits can you think of that would be relevant
to leadership?
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What Do Leaders Do?
Behavioral Approaches to Leadership
Task-oriented leader
behaviors involve structuring
the roles of subordinates,
providing them with
instructions, and behaving in
ways that will increase the
performance of the group
*Task oriented behaviors are
directives given to employees to
get things done and to ensure
that organizational goals are
met
People-oriented leader
behaviors include showing
concern for employee feelings
and treating employees with
respect
*People oriented leaders
genuinely care about the well
being of their employees and they
demonstrate their concern in their
actions and decisions
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It is better to lead from
behind and to put others in
front, especially when you
celebrate victory when nice
things occur. You take the
front line when there is
danger. Then people will
appreciate your leadership.
Nelson Mandela
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Taoism on Leadership
When the Master governs, the people
are hardly aware that he exists . ...
Next best is a leader who is loved.
Next, one who is feared.
The worst is one who is despised.
If you don't trust the people,
you make them untrustworthy.
The Master doesn't talk, he acts. When his work is done,
the people say, “Amazing:
we did it, all by ourselves.”
-- Tao Te Ching Chapter 17 – Translated by Stephen Mitchell
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Leader Decision Making
Autocratic
decision
making
• Leaders make the decision alone without
necessarily involving employees in the
decision-making process
Democratic
decision
making
• Employees participate in the making of the
decision
Laissez-faire
decision
making
• Leaders leave employees alone to make the
decision; the leader provides minimum
guidance and involvement in the decision
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Styles of Leadership and Influence
Styles of Leadership
Authoritarian
Leadership
High
Democratic
Leadership
Moderate
Laissez-Faire
Leadership
Low
Leader influence
Peter G. Northouse, Introduction to Leadership Concepts and Practice, Sage Publications, Inc., 2009.
Core Leadership Skills
• Conceptual skills
– Creating visions
– Strategic planning
– Problem solving
• Interpersonal skills
– Being socially perceptive
– Showing emotional intelligence
– Managing interpersonal conflict
• Administrative skills
– Showing technical competence
– Managing resources
– Managing people
Peter G. Northouse, Introduction to Leadership Concepts and Practice, Sage Publications, Inc., 2009.
Democratic Decision-Making Style
Google co-founders,
Larry Page and Sergey
Brin, are known for
their democratic
decision-making styles
Source: http://commons.wikimedia.org/wiki/File:Schmidt-Brin-Page-20080520.jpg
©2013 Flat World Knowledge, Inc.
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Discussion
• Give an example of a leader you admire whose behavior is
primarily task-oriented, and one whose behavior is primarily
people-oriented.
• What are the limitations of autocratic decision making? Under
which conditions do you think autcratic style would be more
effective?
• What are the limitations of democratic decision making?
Under which conditions do you think democratic style would
be more effective?
• What are the limitations of laissez-faire decision making?
Under which conditions do you think laissez-faire style would
be more effective?
• Examine your own leadership style. Which behaviors are you
more likely to demonstrate? Which decision making style are
you more likely to use?
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Contingency Approaches to Leadership
The Role of Context
Fiedler’s
Contingency
Theory
Situational
Leadership
Path-Goal
Theory of
Leadership
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Vroom and
Yetton’s
Normative
Decision Model
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Fiedler’s Contingency Theory
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Situational Leadership
• Leaders choose from four basic
situational leadership styles as defined
by Kenneth Blanchard and Paul
Hersey.
The style that a leader chooses is
determined by situational factors such
as employee readiness.
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Situational Leadership Styles
Situational Leadership II Model
Development of the Individual
Follower Readiness Competence
Level
(Low)
Competence
(Low)
Competence
(Moderate to
High)
Competence
(High)
Commitment
(High)
Commitment
(Low)
Commitment
(Variable)
Commitment
(High)
Directing
Behavior
Coaching
Behavior
Supporting
Behavior
Delegating
Behavior
Recommended
Leader Style
Situational Leadership Theory helps leaders match their style to follower readiness
levels.
©2013 Flat World Knowledge, Inc.
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Path-Goal Theory of Leadership
Influenced by Expectancy Theory of Motivation
Their effort
will lead to
high
performance
Their high
performance
will be
rewarded
The rewards
they will
receive are
valuable to
them
Employees
are
motivated if
confident…
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Four Leadership Styles
Directive
Supportive
Participative
Achievement
Oriented
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Predictions of Path-Goal Theory
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Vroom and Yetton’s
Normative Decision Model
The decision tree approach
is a guide leaders can use
to decide how participative
they should be given
decision environment
characteristics
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The Decision Tree
Leadership Styles
based on participation
of group members in
decision making:
1. Decide
2. Consult Individual
3. Consult Group
4. Facilitate
5. Delegate
©2013 Flat World Knowledge, Inc.
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Discussion
• Do you believe that the least preferred coworker
technique is a valid method of measuring someone’s
leadership style? Why or why not?
• Do you believe that leaders can vary their style to
demonstrate directive, supportive, achievement-oriented
and participative styles with respect to different
employees? Or does each leader tend to have a personal
style that he or she regularly uses toward all employees?
• What do you see as the limitations of the Vroom-Yetton
leadership decision-making approach?
• Which of the leadership theories covered in this section
do you think are most useful, and least useful, to
practicing managers? Why?
©2013 Flat World Knowledge, Inc.
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GM CEO, Mary T. Barra
(link)
Sheryl Sandberg: Why
we have too few
women ... - TED.com
Facebook COO
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Transformational Leadership
*Employees focus on company’s well-being
rather than individual pursuits
Transactional Leadership
*Employees demonstrate the right behaviors
because the leader provides resources in
exchange.
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Transformational leaders lead employees by
aligning employee goals with the leader’s goals
Inspirational
motivation
Intellectual
stimulation
Individualized
consideration
Charisma
Transformational
Leaders
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Transformational
leaders rely on their
charisma,
persuasiveness, and
personal appeal
Mustafa Kemal
Ataturk, the founder
and first president of
the Turkish Republic
Source: http://commons.wikimedia.org/wiki/File:Ataturk_and_flag_of_Turkey.jpg
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Methods Used By Transactional Leaders
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Leader-Member Exchange (LMX) Theory
High quality LMX
relationships have
mutual respect
between the leader
and the followers
Low quality LMX
relationships portray
lower levels of trust
and respect between
leaders and followers
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According to the Leader-Member Exchange
(LMX) approach, the unique, trust-based
relationships leaders develop with employees
is the key to leadership effectiveness
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Servant Leadership
Defines the leader’s role as serving the needs of others
The primary mission of the leader is to develop
employees and help them reach their goals
Servant leaders put their employees first, understand
their personal needs and desires, empower them, and
help them develop in their careers
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Servant Leadership has some overlap with other
leadership approaches but there are some
differences…
Ethics
Self-Sacrifice
Community
Development
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Authentic Leadership
Leaders are self aware
Not afraid to act the
way they are
Possess high levels of
personal integrity
Leaders are introspective
Understand where they
are coming from
Retain a thorough understanding
of their own values and priorities
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Howard Schultz, the founder of
Starbucks coffee houses
Witnessing his father’s losing jobs due to
medical problems, he became passionate
about a company’s need to care for its
employees.
Source:
http://upload.wikimedia.org/wikipedia/commons/archive/a/ae/200
81006001508!Howard-Schultz-Starbucks.jpg
©2013 Flat World Knowledge, Inc.
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Discussion
• What are the characteristics of transformational leaders? Are
transformational leaders more effective than transactional
leaders?
• What is charisma? What are the advantages and disadvantages
of charismatic leadership? Should organizations look for
charismatic leaders when selecting managers?
• What are the differences (if any) between a leader having a
high quality exchange with employees and being friends with
employees?
• What does it mean to be a servant leader? Do you know any
leaders whose style resembles servant leaders? What are the
advantages of adopting such a leadership style?
• What does it mean to be an authentic leader? How would such
a style be developed?
©2013 Flat World Knowledge, Inc.
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Developing Your Leadership Skills
Steps to Develop
Your Charismatic
Leadership Skills
Have a vision
Tie the vision to
history
Watch your body
language
Make sure that
employees have
confidence in
themselves
Challenge the
status quo
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Develop Your Servant Leadership Skills
Ask what you can do for your employees
Help employees reach their goals
Be humble
Be open with your employees
Find ways of helping the external community
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Develop Your Authentic Leadership Skills
Understand Your History
Take Stock of Who You Are Now
Reflect on Your Successes and Challenges
Make Integrity a Priority
Understand the Power of Words
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Discussion
• What is the connection between
leadership and ethics?
• Do you believe that ethical leaders are
more successful in organizations?
• Have you ever had an authentic leader?
What did this person do that made you
consider him or her to be authentic? How
effective was his or her leadership?
©2013 Flat World Knowledge, Inc.
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http://faculty.washington.edu/janegf/level5leadership.htm
Source: Good to Great: Why Some Companies Make
the Leap...And Others Don't by Jim Collins
Level 5 Leadership
The great irony is that
the animus and personal
ambition that often
drives people to become
a Level 4 leader stands at
odds with the humility
required to rise to
Level 5.
Jim Collins , "Level 5 Leadership: The
Triumph of Humility and Fierce Resolve
(HBR Classic)", Harvard Business
Review, Jul 01, 2005
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5 Attributes for The Level 5 Leader
• They are self-confident enough to set up their
successors for success.
• They are humble and modest.
• They have "unwavering resolve."
• They display a "workmanlike diligence - more plow
horse than show horse."
• They give credit to others for their success and take
full responsibility for poor results. They "attribute
much of their success to 'good luck' rather than
personal greatness."
Not by Level 5 Alone
• First Who, Then What: Get the right people on the bus, then figure
out where to go. Finding the right people and trying them out in
different positions.
• Confront the Brutal Facts: The Stockdale paradox - Confront the
brutal truth of the situation, yet at the same time, never give up
hope.
• Hedgehog Concept: Three overlapping circles: What lights your fire
("passion")? What could you be best in the world at ("best at") What
makes you money ("driving resource")?
• Culture of Discipline: Rinsing the cottage cheese.
• Technology Accelerators: Using technology to accelerate growth,
within the three circles of the hedgehog concept.
• The Flywheel: The additive effect of many small initiatives; they act
on each other like compound interest.
Hearing the Truth
• “Honesty is very expensive gift do not expect it
from cheap people” - Warren Buffett
• Creating a climate where truth is heard involves four basic practices:
–
–
–
–
Lead with questions, not answers.
Engage in dialogues and debate, not coercion.
Conduct autopsies, without blame.
Build red flag mechanisms that turn information into information that cannot
be ignored.
• Additional skills:
–
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–
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Hide your preferences at the beginning of an initiative
Let one individual/group be a sounding board or even play devil advocate.
Don’t kill the messenger
Flattering is poisonous
Jim Collins , "Level 5 Leadership: The Triumph of Humility and Fierce Resolve",
Harvard Business Review, Jul 01, 2005
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Hedgehog
What weConcept
want to do
Learn to do
this better
Learn to
monetize
Learn to
say “No!”
What we
do well
What we can be
paid to do
Self-Analysis: Individual (Company)
Calling (Passion)
What were
you born to
do?
What you
good at?
Career
(Niche, Strength)
(What do you want to do?)
What will
people pay
you to do?
Source: Creative Confidence &
Job (Revenue)
http://nowpossible.com/2010/09/29/revisiting-good-to-great/
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Good to Great
(Hedgehog)
http://www.turnaround.org/Publications/Articles.aspx?objectID=1623
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Strength-Based Leadership
http://businessjournal.gallup.com/content/113956/strengths-leadership.aspx#2
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Leader vs. Manager
The manager administers, the leader innovates.
The manager copies, the leader is an original.
The manager maintains, the leader develops.
The manager focuses on systems and structure, the leader focuses
on people.
The manager relies on control, the leader inspires trust.
The manager has a short range view, the leader has a long range
perspective.
The manager asks how and when, the leader asks what and why.
The manager has eyes always on the bottom line; the leader's eyes
are on the horizon.
The manager accepts the status quo, the leader challenges it.
The manager does things right, the leader does the right thing.
Warren Bennis, On Becoming A Leader, Basic Books, Fourth edition, March 2,
2009.
The Truth About Managing People
2nd Edition
Stephen Robbins
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PART I THE TRUTH ABOUT HIRING
Truth 1 Forget Traits; It’s Behavior That Counts
Truth 2 Realistic Job Previews: What You See Is What You Get
Truth 3 Tips for Improving Employee Interviews
Truth 4 Brains Matter; or When in Doubt, Hire Smart People
Truth 5 Don’t Count Too Much on Reference Checks
Truth 6 When in Doubt, Hire Conscientious People!
Truth 7 Hire People Who Fit Your Culture: My “Good
Employee” Is Your Stinker!
• Truth 8 Manage the Socialization of New Employees
http://www.pearsoned.co.uk/bookshop/detail.asp?item=100000000263509&tab=Table%20of%20Contents
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PART II THE TRUTH ABOUT MOTIVATION
Truth 9 Why Many Workers Aren’t Motivated at Work Today
Truth 10 Happy Workers Aren’t Necessarily Productive Workers!
Truth 11 Telling Employees to “Do Your Best” Isn’t Likely to Achieve
Their Best
Truth 12 Not Everyone Wants to Participate in Setting Their Goals
Truth 13 Professional Workers Go for the Flow
Truth 14 When Giving Feedback: Criticize Behaviors, Not People
Truth 15 You Get What You Reward
Truth 16 It’s All Relative!
Truth 17 Ways to Motivate Low-Skill, Low-Pay Employees
Truth 18 There’s More to High Employee Performance Than Just
Motivation
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PART III THE TRUTH ABOUT LEADERSHIP
Truth 19 The Essence of Leadership is Trust
Truth 20 Experience Counts! Wrong!
Truth 21 Most People THINK They Know What Good Leaders Look
Like
Truth 22 Effective Leaders Know How to Frame Issues
Truth 23 You Get What You Expect
Truth 24 Charisma Can Be Learned
Truth 25 Make Others Dependent on You
Truth 26 Adjust Your Leadership Style for Cultural Differences or
When in Rome. . .
Truth 27 When Leadership ISN’T Important
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PART IV THE TRUTH ABOUT COMMUNICATION
Truth 28 Hearing Isn’t Listening
Truth 29 Choose the Right Communication Channel
Truth 30 Listen to the Grapevine
Truth 31 Men and Women DO Communicate Differently
Truth 32 What You Do Overpowers What You Say
PART V THE TRUTH ABOUT BUILDING TEAMS
Truth 33 What We Know That Makes Teams Work
Truth 34 2 + 2 Doesn’t Necessarily Equal 4
Truth 35 One Bad Apple Spoils the Barrel
Truth 36 We’re Not All Equal: Status Matters!
Truth 37 Not Everyone Is Team Material
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PART VI THE TRUTH ABOUT MANAGING CONFLICTS
Truth 38 The Case FOR Conflict
Truth 39 Beware of Groupthink
Truth 40 How to Reduce Work-Life Conflicts
Truth 41 Negotiating Isn’t About Winning and Losing
PART VII THE TRUTH ABOUT DESIGNING JOBS
Truth 42 Not Everyone Wants a Challenging Job
Truth 43 Four Job-Design Actions That Will Make Employees More
Productive
PART VIII THE TRUTH ABOUT PERFORMANCE EVALUATION
Truth 44 Annual Reviews: The Best Surprise is NO Surprise!
Truth 45 Don’t Blame Me! The Role of Self-Serving Bias
Truth 46 The Case for 360-Degree Feedback Appraisals: More IS
Better!
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• PART IX THE TRUTH ABOUT COPING WITH CHANGE
• Truth 47 Most People Resist Any Change That Doesn’t Jingle in Their
Pockets!
• Truth 48 & Truth 49 Use Participation to Reduce Resistance to Change
• PART X SOME FINAL THOUGHTS ABOUT MANAGING BEHAVIOR
• Truth 50 First Impressions DO Count!
• Truth 51 People Aren’t Completely Rational: Don’t Ignore Emotions!
• Truth 52 Employee Turnover Can Be a Good Thing
• Truth 53 Beware of the Quick Fix
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