Economics for Future Leaders
Lecture 2 - Principles of Leadership,
June 27, 2012
Being a Leader
 What does it take to be a leader?
 Defining leadership.
 In the leadership literature, more than
100 different definitions of leadership
have been identified.
 Despite the many definitions, a number
of different concepts are recognized by
most people as accurately reflecting
what it is to be a leader.
Being a Leader
 “Leadership is a trait.”
 Defining leadership as a trait means that each
individual brings to the table certain inherent
qualities that influence the way she or he leads.
 Confidence; decisiveness; outgoingness or
sociability.
 Despite the elitist overtone, all of us are born
with unique traits that can influence leadership,
and some traits can be changed.
 “Leadership is an ability.”
 The leader has the capacity to lead.
 The capacity can be innate, but it also can be
learned.
Being a Leader
 “Leadership is a skill.”
 Leadership is a competency developed to
accomplish a task effectively.
 Leaders know the means and methods for
carrying out their responsibilities well.
 “Leadership is a behavior.”
 Leadership is what leaders do.
 Two types of leadership behavior.
 Task behaviors – Used by leaders to get the job
done.
 Process or relationship behaviors – Used by
leaders to make other group members at ease
with each other and with the task.
Being a Leader
 “Leadership is a relationship.”
 Leadership is communication and
collaboration between leaders and
followers.
 A strong interrelational and ethical
component.
Global Leadership Attributes
 The GLOBE (Global Leadership and
Organizational Behavior
Effectiveness) Studies.
 Surveys of 17,000 managers in 62
countries.
Global Leadership Attributes
 Positive Leader
Attributes
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Trustworthy
Foresighted
Positive
Builds confidence
Intelligent
Win-win problem solver
Administratively skilled
Excellence oriented
Just
Plans ahead
Dynamic
 Positive Leader
Attributes
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Motivational
Decisive
Communicative
Coordinator
Honest
Encouraging
Motivator
Dependable
Effective bargainer
Informed
Team builder
Global Leader Attributes
 Negative Leader Attributes
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Loner
Irritable
Ruthless
Asocial
Non-explicit
Dictatorial
Non-cooperative
Egocentric
Practicing Leadership
 When people ask for leadership, it is
not always clear exactly what they
want.
 What they want is effective
leadership:
 Intended influence that creates change
for the greater good.
 Leaders who listen to and understand
their needs and who can relate to their
circumstances.
Recognizing Your Traits
 Historical Leaders: What Traits Do They
Display?
 George Washington (1732-1799).
 Modesty, moral character, well read, bravery,
tenacity, stability, prudence.
 Harriet Tubman (c. 1820-1913)
 Symbol of hope, single-mindedness, lack of fear,
determination, focus, spirituality, strength, lack of
pretension, practicality.
 Eleanor Roosevelt (1884-1962).
 Conflict management, listener, plain speaker,
honesty, selflessness, tolerance, deep sense of
humanity, optimism.
Recognizing Your Traits
 Historical Leaders: What Traits Do
They Display?
 Winston Churchill (1874-1965).
 Well-read, plain speaker, decisiveness,
detail orientation, well informed,
ambitious, master of language,
stoicism, optimism
 Mother Teresa (1910-1997).
 Simplicity, determination, fearlessness,
spirituality, humility, strong-willed.
Recognizing Your Traits
 Historical Leaders: What Traits Do
They Display?
 Nelson Mandela (1932-).
 Conscience, self-reflection, sense of
morality, unwavering commitment to
principles, self-discipline, consensus
builder, courage, patience, humility, and
compassion.
Recognizing Your Traits
 Historical Leaders: What Traits Do
They Display?
 Bill Gates (1954-).
 Intelligence, vision, task orientation,
diligence, focus, aggressiveness, simplicity,
straight-forwardness, lack of pretension,
and altruism.
 Oprah Winfrey (1954-).
 Excellent communicator, intelligent, wellread, strong business sense, sincerity,
determination, inspiration, charisma,
spontaneity, openness, expresssiveness.
Recognizing Your Traits
 What traits do effective leaders exhibit?
The research is not crystal clear; however,
the following seem to be most relevant.
 1. Intelligence.
 Includes good language skills, perceptual skills,
and reasoning ability.
 While one cannot improve native intelligence,
one can make the most of native abilities.
 Key element for improving intelligence: keeping
informed.
Recognizing Your Traits
 2. Confidence.
 Confident people feel self-assured and believe
that they can accomplish their goals.
 How to build confidence: Knowing what to do,
mentoring, practice.
 3. Charisma.
 Special magnetic charm and appeal.
 How to do you show charisma?
 Strong role model.
 Show competence.
 Articulate clear goals and strong values.
 High expectations of followers and confidence in
their ability to achieve them.
Recognizing Your Traits
 4. Determination.
 They know where they are going and how to get
there.
 Display initiative, persistence, and drive.
 The key component is perseverance.
 5. Sociability.
 Capacity to establish pleasant social
relationships – friendly, outgoing, courteous,
tactful, and diplomatic.
 Sensitive to others and showing concern for
their well-being.
Recognizing Your Traits
 6. Integrity.
 Characterizes leaders with integrity and
trustworthiness.
 Strong set of principles and taking
responsibility for one’s actions.
 Integrity underpins all aspects of
leadership.
Philosophy and Style of Leadership
 Human nature and leadership
 Theory X (Directive and controlling
leadership).
 People dislike work.
 People need to be directed and controlled.
 People want security, not responsibility.
 Theory Y (Supportive leadership).
 People like work.
 People are self-motivated.
 People accept and seek responsibility.
Philosophy and Style of Leadership
 Styles of Leadership.
 Authoritarian (Example: Glory Road, 2006).
 Characteristics: directive, controlling, task-oriented,
subjective evaluation (Theory X).
 Outcomes: efficient, productive, but also dependence,
submissiveness, and loss of individuality.
 Democratic (Example: School of Rock, 2003).
 Characteristics: supportive, two-way communication,
informative, guiding (Theory Y).
 Outcomes: satisfaction, cohesion, commitment, groupmindedness, motivation, creativity, participation,
somewhat less efficient, and more time consuming.
 Laissez-Faire (Example: Office Space, 1999).
 Characteristics: hands-off, unguided, non-leadership.
 Outcomes: low accomplishment, chaotic working
environment, low morale.
Tasks and Relationships
 Task-oriented style.
 Goal-oriented, achievement-oriented, doing things.
 Initiating structure, production orientation.
 Doing something to achieve group goals.
 Relationship-oriented style.
 Person-oriented, connection-directed, being with
people.
 Consideration behavior, employee orientation,
concerned for people.
 Treating followers with dignity, building relationships
and helping people get along, and making the work
setting a pleasant place to be.
 Good leaders are both.
Leadership Skills
 Administrative skills.
 Managing people.
 Managing resources.
 Showing technical competence.
Leadership Skills
 Interpersonal skills.
 Being socially perceptive.
 Showing emotional intelligence.
 Awareness of own emotions.
 Awareness of others’ emotions.
 Regulation of one’s own emotions and put them to good
use.
 Handling conflict.
 Differentiation (define the nature of the conflict and
clarify positions).
 Fractionation (break down large conflicts into smaller,
more manageable ones).
 Face saving (preservation of each other’s self-image
during a conflict).
Leadership Skills
 Conceptual skills.
 Problem solving.
 Identify the problem.
 Generate alternative solutions.
 Select the best solution.
 Implement the solution.
 Strategic planning.
 Ability to learn.
 Capacity to adapt.
 Managerial wisdom.
 Creating vision.
 Challenge people with compelling visions of the
future.
Leadership Question #2.
 Of the three sets of leadership skills
discussed in this lecture
(administrative, interpersonal, and
conceptual), what set of skills comes
easiest for you? What set of skills
comes hardest? Describe how people
respond to you when you use these
skills.