DUE IN 20 HOURS
ATTACHED
Part I The Fundamentals
of Leadership
CHAPTER 1 Leadership in a Dynamic World
1.1 Defining Leadership and Key Leader Activities
1.2 Relationships Between Leadership and Management
1.3 Leadership and Organizational Success
1.4 Understanding the Leadership Context: The Leader, Followers, and Situation
1.5 Are Leaders Born or Made?
Chapter Summary
CHAPTER 2 Preparing to Lead
2.1 Commitment to Excellence
2.2 The Role of Character in Leader Success
2.3 Personal Characteristics and Actions
2.4 The Keys to Personal Growth and Change
2.5 Changing Behaviors
2.6 A Whole Person Approach
2.7 How To Stay Motivated and Continue to Grow
Chapter Summary
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1 Leadership in a Dynamic World
iStock/Thinkstock
Learning Objectives
After reading this chapter, you should be able to:
• Explain how various individuals define and describe leadership.
• Analyze the similarities and differences between leadership and management.
• Apply basic leadership concepts in order to create more effective companies.
• Integrate the roles of the leader, the followers, and the situation in organizations.
• Describe the scholarship surrounding the question of whether leaders are born or made.
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Introduction
Introduction
In 1981, Richard Teerlink joined the Harley Davidson Motor Company as its chief financial
officer. At that point, Japanese companies had been making dramatic inroads into the United
States economy, and the motorcycle market was no exception. Harley Davidson’s market
share had dwindled to a meager 15% of total national sales and the company experienced an
annual loss of $15 million.
Teerlink became the CEO of Harley
Davidson in 1989. Under his leader-
ship, the company regained its mojo
by concentrating on world-class heavy-
weight motorcycles. His vision for the
organization involved a marketing plan
that emphasized the company’s place
in American culture while seeking out
innovative ways to reach three core
constituencies: customers, dealers, and
employees (Rifkin, 1997). This included
expanding product lines by featuring
clothing and even hamburgers at the
Harley Davidson Midtown Café in Man-
hattan. During Teerlink’s tenure, Har-
ley’s market share soared to 50% of the
domestic market and the organization
enjoyed sales of more than $1.7 billion,
with a corresponding return to profitability. The Harley Davidson brand remains powerful
and popular to this day.
Richard Teerlink provides a powerful example of the impact of quality leadership. Effective
leaders make a difference. They improve both small and larger organizations. They have a
contagious passion for excellence. Recent research suggests that effective leaders are humble
and teachable. They know how to get things done and are skilled at bringing out the best in
people.
Organizations require leadership skills at all levels, not just by people in formal supervisory
roles or top-level management positions. It takes leadership skills to manage a project, initi-
ate a change, or collaborate and be constructive with people from other departments in the
company. These skills help inspire organizational success.
It seems contradictory that while many recognize the value of effective leadership and the
difference quality leaders can make at all levels of an organization, a significant gap often
exists between the need for skilled leadership and its actual practice. A recent study of nearly
4,000 leaders worldwide revealed that most frontline leaders do not have the fundamental
interpersonal skills needed to be effective leaders, and senior leaders also lacked key inter-
personal skills (Frasch, 2013).
In recent years, I’ve surveyed more than 1,000 MBA students who were already in the work-
place. My studies indicate that most organizations place a higher value on management than
leadership, do little if anything to prepare new leaders for their jobs, and rarely have an
Fred Field/Portland Press Herald/Getty Images
Richard Teerlink (left) has a conversation with
Maine Governor Angus King. Teerlink is credited
with turning around Harley Davidson motorcycles
beginning in 1986.
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Section 1.1 Defining Leadership and Key Leader Activities
ongoing process for developing leadership skills. That means that, unfortunately, while lead-
ership is important to the success of organizations and groups of all types, it is more talked
about than practiced. Organizations of all types need skilled leaders. Further, becoming one
will add to your value personally and professionally.
The purpose of this book is to help develop skilled leaders at all levels of organizations. It
explains principles related to better directing individuals and teams. Currently, most organi-
zations face inevitable changes that require continual adaptation in today’s dynamic global
marketplace. This examination of leadership and the strategies to become an effective leader
will be structured as follows:
1. Motivating and preparing people to lead and make a difference (Chapters 1–2)
2. Providing an understanding of fundamental leadership theories (Chapters 3–4)
3. Explaining how communication skills, skills in motivating people to excel, and team
skills are crucial to effective leadership (Chapters 5–7)
4. Exploring how leaders bring about successful, productive organizations and lead
change (Chapters 7–9)
5. Describing how leaders can and should strike a healthy and constructive work-life
balance (Chapter 10)
1.1 Defining Leadership and Key Leader Activities
Leadership has been a subject of interest since the beginning of recorded history. Ancient
writings describe how leaders led battles, started and conquered nations, taught religious
principles, and championed ideas that changed the world.
In the effort to study and understand leadership, some recurring themes appear while many
differences remain, even when you look at the basic characteristics of leaders. For instance,
Napoleon was short and somewhat frail, while David of biblical times was muscular and
strong. Margaret Thatcher, the former Prime Minister of Great Britain, was known for being
calm, low-key, wise, and uncompromising in her principles. Former President Reagan of the
United States garnered fame for being a charismatic communicator. Meg Whitman, the former
CEO of eBay who grew the company from $4 million in 1998 to $8 billion in 2008, was a warm
and friendly leader who some called “Mom.” In contrast, Steve Jobs, the founder of Apple, was
a visionary, intellectual leader who some complained lacked people skills. As a result, we can
learn a lot about leadership and what effective leaders do while recognizing that there is the
flexibility for leaders to be different. Note that none of these leaders was perfect. Each had
weaknesses. This suggests that if leaders do enough things right, they are likely to be success-
ful, even though there will always be opportunities for improvement.
Definitions of Leadership
So, what is leadership? After evaluating many definitions of leadership, such as those dis-
played in Table 1.1, and making an effort to integrate the key ideas and themes, the leadership
definition we will use in this book is as follows:
Leadership is the process of providing vision, direction, and inspiration and
bringing out the best in people, teams, and organizations.
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Section 1.1 Defining Leadership and Key Leader Activities
Table 1.1: Definitions of leadership
• Leadership defines what the future would look like, aligns people with that vision, and inspires them to
make it happen despite the obstacles (Kotter, 1996, p. 25).
• Leadership is about articulating visions, embodying values, and creating the environment within which
things can be accomplished (Richards & Engle, 1986, p. 206).
• The process of influencing the activities of an individual or group toward accomplishing objectives
(Ivancevich & Duening, 2007, p. 675).
• “[L]eadership is not magnetic personality—that can just as well be a glib tongue. It is not ‘making friends
and influencing people’—that is flattery. Leadership is lifting a person’s vision to higher sights, the raising
of a person’s performance to a higher standard, the building of a personality beyond its normal limitations”
(Drucker, 2008, p. 288).
• Leadership is the process of influencing others to understand and agree about what needs to be done
and how to do it, and the process of facilitating individual and collective efforts to accomplish shared
objectives (Yukl, 2010, p. 8).
• Leadership is the ability to influence followers to achieve common goals through shared purposes (Rost
& Barker, 2000).
• Leadership is a process whereby an individual influences a group of individuals to achieve a common
goal (Northouse, 2013, p. 5).
• “Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly
drive it to completion” (Welch, quoted in Tichy & Charan, 1989, para. 8).
• Leadership is the process of influencing the activities of an organized group toward goal achievement
(Rauch & Behling, 1984, p. 46).
• The ability to inspire confidence and support among the people who are needed to achieve organizational
goals (Dubrin, 2010, p. 3).
The definitions displayed in Table 1.1 offer many varying perspectives. We can derive a num-
ber of themes from them. Each adds to our understanding of the nature of leadership.
The definitions describe effective leaders. Each seeks to describe the best of leadership
practices—what leaders should aspire to. The definitions focus on defining best rather than
worst practices.
The principles apply to formal and informal leaders. Definitions of leadership tend to focus
on higher-level leaders who are leading large groups or organizations. At the same time, the
fundamental principles apply to formal or informal leaders and leadership roles at all levels
of organization. A formal leader is a person who has been promoted, appointed, or elected to
serve in a leadership capacity in an organization. An informal leader, or emergent leader, is a
person who engages in leadership activities without being formally selected to do so, serving
various organizational needs.
Leadership is a process. A process is a series of actions and interactions that bring about a
particular result. Leadership is not as much about personality and traits as it is about specific
things that leaders do in interacting with others to achieve the desired outcomes.
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Section 1.1 Defining Leadership and Key Leader Activities
Leaders influence others. Leaders are particularly talented at influencing the activities of peo-
ple and groups and motivating them to raise their aspirations and perform at a high level.
Leaders care about their people. Quality leaders genuinely are concerned about people and
their welfare and are skilled at raising spirits and aspirations.
Leaders are visionary. Skilled leaders look ahead for what is possible and what needs to be
accomplished and are able to articulate a clear vision, mission, and purpose for what needs
to be done.
Leaders are goal oriented. Leaders are driven to accomplish challenging goals and are skilled
at engaging people and groups in accomplishing purposeful and shared goals.
Leaders inspire excellence. Effective leaders inspire others to excel, overcome obstacles, and
persevere.
Quality leadership reflects example, character, and integrity. Even the best leaders have weak-
nesses and opportunities to learn and grow. Over time, the most effective leaders set exam-
ples worthy of following and gain recognition for their character, integrity, and principles.
As you can see, the term “leadership” encompasses many ideas. An effective leader is able to
incorporate these concepts into a style and process that obtains results from individual work-
ers, his or her department, and the overall organization. Doing so involves engaging in several
major activities.
Key Leadership Activities
Many people have examined leadership from a variety of perspectives. Search Google and you
will find an overwhelming amount of books, articles, and information available on the sub-
ject. Leadership draws increasing interest in these times of dynamic change, fierce competi-
tion, ever-changing technology, and global influences. An urgent need for skilled leaders who
know how to build organizations for success exists. To meet these challenges, the key lead-
ership activities that we will focus on throughout this book include providing vision, moti-
vation, inspiration, and direction, while bringing out the best in organizations, developing
high-performing teams, and building trust. A brief description of these vital actions follows.
Creating a Vision
Vision means providing a clear and compelling big picture perspective of what needs to be
or could be accomplished and why. Vision could include crafting a compelling and easy-to-
understand mission for an organization or giving a small group a clear picture of something
that needs to be accomplished and why it is important. Providing a clear vision implies that a
leader is knowledgeable and competent in his or her areas of expertise and keenly aware of
what is going on. Some leaders naturally seem to have a clear vision for the future, and oth-
ers become visionary by acting as students of current conditions, best practices, and future
trends, and by virtue of this knowledge, begin to see what is possible.
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Section 1.1 Defining Leadership and Key Leader Activities
An effective leader must not only have a strong vision but also a means to get there. For exam-
ple, when Seth Goldman founded Honest Tea, he had a simple mission: To create and promote
great-tasting, truly healthy, organic beverages. This vision extended to treating all employees
with dignity and seeking to help less advantaged individuals achieve through the company’s
purchasing systems, all the while maintaining an environmentally friendly climate (Honest-
tea.com, 2015).
Providing Direction
Direction involves providing clear goals, values, and priorities, which give meaning to vision.
A vision offers the big picture and direction provides clarity on the specifics of the goals to
pursue (what tasks we need to do), the values that are important in accomplishing goals (how
we need to do things), and the priorities that determine what we need to do when (what is
most important). Visionary leaders who fail to provide clear direction will get people excited
about what they can accomplish and then frustrate them because of the confusion over how
to achieve the vision. Effective leaders stand for clear values and high standards. They also
recognize that how you do things is as important as what you do. Priorities are especially
essential to providing direction, as people are often very busy and have to make choices about
what is most important to do.
Motivation and Inspiration
Leaders get results and make things happen primarily by influencing the behavior and activi-
ties of others. Motivating individuals, therefore, is perhaps the most fundamental element of
effective leadership. This often involves a leader tailoring his or her approach to fit both the
individual and the situation.
An organization is only as good as the individuals who comprise it, which is why all effective
leadership practice must first begin on the level of the individual. Effective leaders under-
stand how to assist and motivate individuals to reach their highest potential. Such leadership
is then not only good for each individual but also for the organization as a whole.
Furthermore, in order to motivate others, a leader has to inspire. Inspiration, in the context
of leadership, means leading by example, encouraging excellence, and helping people to meet
challenges, overcome obstacles, and persevere. A leader must be worthy of following while
also being humble and selfless. Leaders who inspire others also have a passion for excellence
that is contagious. Such passion often manifests itself in a leader’s vision.
Bringing Out the Best in People and Organizations
Successful leaders look for ways to do whatever they can to help people, teams, and organi-
zations become the best they can be. This may include a variety of efforts such as providing
encouragement, training, resources, and a stimulating and supportive work environment.
The key is to have this as a personal goal, to be aware of ways to bring out the best in people,
teams, and organizations, and to look for opportunities.
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Section 1.1 Defining Leadership and Key Leader Activities
High-impact leaders develop great workers. They should do everything possible to ensure
that employees receive good training for their jobs, encouragement, and opportunities to uti-
lize their capabilities; remain up to date in their areas of expertise; and get the chance to
champion needed projects and changes. They can also help employees adapt to changes by
involving and engaging them in the change process and listening to their ideas and concerns.
Committing to bringing out the best in people, teams, and organizations can be a life-changing
approach perspective for leaders. It changes how they think, act, view and treat people, and
spend their time. It influences their priorities and creates a positive impact on others. To
understand this concept and the difference it can make in how leaders think and act, consider
choosing one day in your life where, along with your usual tasks, you make bringing out the
best in people your number one priority. It would significantly change the way you invest
your day and the impact you have on others. It would change the way you view people, how
you treat people, what you say to people, and how you spend your time. It may also have a
significant impact on others. Research on organizations that have leaders committed to build-
ing organizations that perform at a high level and are a great place to work and do business
with shows that these organizations are likely to achieve results far above the industry norm
(Ready, Hill, & Thomas, 2014; Kanter, 2011).
General Roger Teague: Humble Leadership
That Makes a Difference
I recently attended an inspiring promotion ceremony that reinforced my beliefs and
experience that effective leaders make a significant difference in the performance, morale,
and lives of people. The ceremony was for the promotion of Brigadier General Roger Teague
to Major General. In attendance were more than 30 generals and several hundred other
officers, many of whom had come from all over the United States to attend the ceremony.
When General Teague spoke, he used no notes and did not stand behind a podium. Instead he
stood directly in front of all those who were there to honor him and spent the duration of his
speech thanking all those who helped him achieve his goals.
While the whole ceremony was upbeat and inspiring, perhaps most inspiring was interacting
with people who had worked for General Teague. I heard story after story of how General
Teague was a humble, approachable leader who set an inspiring example, knew and cared
about everyone in his command, and motivated them to excel. They spoke of the groups he
led as feeling like a family that cared about what they did, worked like a focused and united
team, and performed at a high level because they didn’t want to let their leader down. Some
individuals I talked to were so inspired by General Teague that they accomplished more than
they ever thought was possible. One enlisted person had gone on to earn several degrees,
become a highly decorated officer, and was getting ready to work on her PhD in leadership.
General Teague no doubt has his flaws and perhaps enemies as well. However, it’s clear that
his humble and conscientious approach to leadership and to others has helped change lives
and make a difference!
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Section 1.1 Defining Leadership and Key Leader Activities
Developing High-Performing Teams
Building high-performance teams and teamwork between groups constitutes a critical activ-
ity for leaders and a key organizational need. Excelling at teamwork has been shown to have
a significant impact on the performance and success of organizations (Carson, Tesluk, & Mar-
rone, 2007; Lawler, Mohrman, & Ledford, 1995). It makes sense that an organization that takes
a systems approach to teamwork and excels at teamwork at the top, within teams, between
teams, and outside the organization with key stakeholders can perform at higher levels than
organizations that do not take this approach. Further, we can often see substantial differences
in performance, morale, quality of work, and speed in getting things done.
It seems ironic that while leaders frequently preach the importance of teamwork, and a cen-
tral theme of many books and articles about how to build successful organizations and gain
competitive advantage is teamwork, often these same leaders don’t learn how to build high-
performance teams and organizations and do little to build teamwork. The goals of this book
include helping leaders understand the advantages of a collaborative perspective, preparing
them with the skills necessary to help build highly performing teams, developing quality net-
works between teams, and encouraging teamwork at all levels of the organization.
Building Trust
Leaders build or tear down trust. People accomplish work better and faster with minimal
obstacles and delays when they can trust their leaders to be honest and straightforward, to
look out for their best interests, and to do what is right. Conversely, people question almost
everything, including well-intentioned decisions, when they cannot trust their leaders. A lack
of trust creates an environment of anxiety, suspicion, and fear, and people take longer to do
things, if they do them at all. Studies reported in the book Building the High-Trust Organiza-
tion (Shockley-Zalabak, Morreale, and Hackman, 2010) indicate that high-trust organizations
outperformed low-trust organizations by 286% in total return to shareholders (stock price
plus dividends) and that high-trust organizations earned more than four times the returns of
the broader market over a period of seven years.
Earning the trust and confidence of those you lead takes time and effort but results in some
positive outcomes. Kouzes and Posner (2012, pp. 33–34) asked people in a study to describe
the personal traits, characteristics, and attributes they look for and admire most in a person
they are willing to follow. They concluded in the following order that the leader must be: (1)
honest; (2) forward looking; (3) competent; and (4) inspiring. Followers want leaders who
tell the truth and who they can trust to keep their word. The most effective leaders consis-
tently act in honorable, transparent, and trustworthy ways.
Note that the ideas in this section do not constitute a complete list of all leader activities.
Other actions range from the mundane (making coffee for others) to the extraordinary. As you
will see in the upcoming pages, leader styles may vary greatly; however, the activities noted in
this section are at the core of effective leadership practices.
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Section 1.2 Relationships Between Leadership and Management
1.2 Relationships Between Leadership and Management
Experts have provided several perspectives regarding the relationships between the concepts
of leadership and management. As we have noted, leadership provides the vision, direction,
and inspiration required to keep people focused and performing at high levels. Management
involves the activities of planning, organizing, staffing, directing, and controlling needed to
make organizations (whole organizations, departments, teams, etc.) operate effectively and
efficiently. Table 1.2 summarizes these major functions. Note that executing could be consid-
ered another function, as the other skills are not relevant if the manager cannot execute.
Self-Reflection Questions
1. Explain the difference between a formal leader and an informal leader. How might
each one have a different effect on a department or organization?
2. Provide an instance in your life when you served under an effective leader. What
strategies did that person employ to achieve success?
3. Provide an instance in your life when you worked for an ineffective leader. Which of
the activities described in this section were missing?
Table 1.2: The management functions
Planning—choosing appropriate organizational goals and identifying the courses of action needed to best
reach those goals.
Organizing—the process of establishing task and authority relationships that allow people to work together
to achieve the organization’s goals.
Staffing—recruiting, selecting, training, evaluating, compensating, and disciplining employees within the
organization.
Directing—coordinating and organizing individuals and groups to work together to achieve organizational
goals.
Controlling—measuring and monitoring systems to evaluate how well the organization achieved its goals.
Some scholars believe that there are no differences because leadership is a part of the man-
agement functions, specifically directing (Fayol, 1949). Others argue that leadership and
management are distinctly different and that the same person is unlikely to be able to per-
form both activities at the same time (Bennis & Nanus, 1985; Zaleznik, 1977). This position
suggests that leaders think and act differently than managers. Those who express this point of
view posit that leaders are passionate and creative and are concerned about vision, strategy,
innovation, change, inspiring excellence, and creating challenges, while managers are tough
minded, rational, analytical, and risk averse and are concerned about stability, order, and effi-
ciency (Simonet & Tett, 2013).
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Bi-modality
Leadership Management
Leadership
&
Management
Uni-dimensionality
Leadership Management
Bi-dimensionality
Section 1.2 Relationships Between Leadership and Management
A third viewpoint suggests that leadership and management require different thinking and
skills but that both are important, at times overlap, and can exist in the same person (Bass,
1990; Hickman, 1990; Kotter, 1988; Rost, 1991). Figure 1.1 illustrates the three perspectives
regarding the relationships between leadership and management. The challenge is to find the
right balance for different levels in the organization and different situations. The position of
this book is to agree with the balance scholars. In other words, effective leaders need leader-
ship skills along with managerial skills.
Leaders need to understand the importance
of these roles. They should seek to understand
where they are personally strong and weak in
the roles. Managers tend to help companies
cope with complex environments through stan-
dard mechanisms such as planning and control-
ling. Leaders, in contrast, may seek to instill
change by creating and implementing a plan for
the future. Managers try to moderate and con-
trol risk; leaders inspire desire and imagination
(Simonet & Tett, 2013).
Therefore, some may excel at one skillset but
not the other. It is not uncommon for vision-
ary leaders who built something special to lack
management skills. When this is the case, rapid
growth in such an organization may begin to
unravel due to the lack of good management.
On the other hand, some excellent managers do
not possess or understand how to deploy effec-
tive leadership skills. Consequently, they try to
manage their organization or group to great-
ness with little success. In understanding their
strengths and weaknesses, leaders can be aware
enough to seek help when needed and can sur-
round themselves with people who have com-
pensating skills.
Figure 1.1: Three perspectives
on the relationship between
management and leadership
Bi-modality
Leadership Management
Leadership
&
Management
Uni-dimensionality
Leadership Management
Bi-dimensionality
Self-Reflection Questions
1. Can you make the case that leadership is more important than management or vice
versa? Explain your answer.
2. Explain an instance in your life in which you felt you were serving more as a man-
ager, not a leader. Then describe an instance in which you felt more like a leader, not
a manager. In what ways were these two situations different? In what ways were
they the same?
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Section 1.3 Leadership and Organizational Success
1.3 Leadership and Organizational Success
At this point, we hope it is clear that many experts agree leadership constitutes one major key,
if not the major key, to productive organization outcomes (Kouzes & Posner, 2012; Collins and
Porras, 1997; Collins, 2001; Ulrich, Zenger, …
4 Modern Leadership Theories and Transformational Leadership
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Learning Objectives
After reading this chapter, you should be able to:
• Consider implementing servant, positive, and principle-centered leadership principles.
• Explain the key principles of charismatic leadership.
• Understand transformational leadership.
• Apply transformational leadership principles.
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Introduction
Introduction
When Tony Hsieh took over as CEO of Zappos.com, the company was bringing in $8 million in
revenue a year and was clearly underutilizing the potential Hsieh believed the company had.
Zappos offers many brands of shoes from different companies that consumers can obtain
through the Zappos website. Hsieh was committed to building a company that was not only
successful financially, but was also a great place to work and to do business with. He began
to build the company around the unique philosophy that if you get the culture right, most
everything else will fall into place.
How did Hsieh transform Zappos? He created a fun and quality place to work and provided
exceptional service for customers. Hsieh used specific actions to transform Zappos. He set an
example for being an open and approachable leader who involves people at all levels in the
change process. He ensured that leaders at all levels received training on the Zappos culture
and what it takes to achieve the Zappos goals. Employees take the core values of the company
seriously, and they guide the actions and decisions of everyone in the company. The culture is
a zany one characterized by a relaxed but hard-working, family-like environment with free ice
cream, snacks, and lunch; the freedom to colorfully decorate offices; and occasional parades
and numerous other forms of celebrations and activities. Employees receive training on a
customer-focused strategy that emphasizes personalized contact with customers and the
freedom to make decisions and dialogue without scripts. Management recruits new employ-
ees based on a fit with the culture, and they then receive extensive continued training to grow
in their skills. Hsieh designed the HR and management practices to support and reinforce the
type of organization he is trying to create.
The results? Within 8 years of Hsieh taking over, the company went from $8 million in annual
revenue to more than $1 billion. Fortune magazine consistently ranks Zappos as one of the
100 best companies to work for. Employee turnover averages about 7% in an industry that
averages more than 150% a year. Zappos receives hundreds of applications for every open
position. Hsieh is a transformational leader who is effective at creating a compelling vision,
inspiring people to perform at a high level, and using specific actions to drive change and
transformation.
In the previous chapter, we noted that the impacts of history and improvements in research
methods influenced the development of leadership theory. Factors such as political, social,
economic, and technological change have altered the landscape and moved theories from
relatively simple, one-size-fits-all approaches to more complex situational and contingency
models. As the last half of the 20th century concluded, various academics and individuals in
the workforce had noted that other elements of leadership deserve attention.
This chapter begins with presentations regarding some of the modern theories that received
notice in academic circles, in popular press, and by practicing managers. The first section
of this chapter examines three approaches: servant leadership, positive leadership, and
principle- centered leadership. The second section presents charismatic leaders.
Further, in times of dynamic change, ever-increasing competition, and the need to do every-
thing more effectively and efficiently, many argue that an urgent need in organizations of
all types and sizes for leaders who are not only skilled at leading but who are also skilled
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Section 4.1 Recent Views of Leadership: Servant, Positive, and Principle Centered
at transforming, changing, and preparing organizations to succeed has grown. Incremental
change and modest improvements may not be enough for some organizations to succeed.
Therefore, the final part of this chapter presents the historic and latest thinking on trans-
formational leadership and adds an important dimension regarding what transformational
leaders need to know about managing change and what it takes to transform organizations.
Previous literature has predominantly focused on the characteristics of transformational
leaders, the results of transformational leadership, and when to use transformational leader-
ship. Unfortunately, the actual skills involved in managing change and transforming organiza-
tions are seldom addressed. Consequently, these issues receive special attention here as well.
4.1 Recent Views of Leadership: Servant, Positive,
and Principle Centered
Past approaches to leadership theory largely paid attention to a few key ideas. The first group
concentrated on the traits and characteristics that successful leaders exhibit. Then, theories
that began with the idea that a leader should be mostly attentive to people or production or
in some cases both took center stage. Finally, the situational and contingency models inte-
grated the leader, the followers, and the situation into one overall model. These approaches
left many issues related to leadership unobserved.
In this section, we propose three recent views of leadership. They include servant leadership,
positive leadership, and principle-centered leadership. These newer approaches add insights
and ideas into factors that logically contribute to an individual’s success (or failure) in a lead-
ership role.
Servant Leadership
One could make a case that the earliest theories were somewhat authoritarian, with the
leader in charge and success dependent on that person’s skills. The next evolution took more
of a participative approach with more involvement of the followers. Then a new viewpoint
emerged combining both performance and people. In that era, leaders needed to be both
results oriented and people oriented. Leadership writers emphasized empowering employ-
ees, where much of a leader’s responsibility was to develop and utilize followers. As leader-
ship thinking shifted from an analysis of leaders to a combination of leaders and followers to
a greater weight given to followers, the introduction of servant leadership created a new way
of thinking about leadership that took the focus on followers and service to a whole new level.
In 1970, Robert Greenleaf presented many original concepts in The Servant as Leader. Ser-
vant leadership stresses serving others; placing the needs of others above your own; helping
others learn, grow, and develop; and seeing a leader’s primary role as servant to employees,
customers, shareholders, communities, and the general public. Greenleaf offered four basic
precepts in his servant leadership model, as displayed in Figure 4.1.
war82476_04_c04_101-132.indd 103 3/3/16 11:32 AM
Put service before
self-interest
A servant leader is more concerned
about helping and serving others than
personal success, status, financial
rewards, or power. Organizations
exist to benefit employees and others,
not just for financial gain. Leaders are
committed to doing what is right no
matter what the cost.
Listen first to build
confidence in others
Instead of imposing their will on others,
servant leaders are committed to listening
to others and discovering their needs
and concerns and what it will take
to make them successful.
Inspire trust by being
trustworthy
Servant leaders earn trust by being
honest, moral, true to their words,
committed to focusing on the
well-being of others, and
transparent in what they do.
Servant
Leadership
Nourish others and help
them become whole
Servant leaders genuinely care
about followers and about
developing their full potential.
Section 4.1 Recent Views of Leadership: Servant, Positive, and Principle Centered
Typical characteristics of servant leaders include humility and selflessness, serving and
developing others, emphasizing shared leadership, having a selfless love for others, valuing
people, modeling integrity and authenticity, inspiring and influencing others, being honest
and trustworthy, being a good steward, empowering others, forgiving others, consulting and
involving others, and committing to building a sense of community (van Dierendonck, 2011).
While individual scholars posit differing views of the characteristics of servant leaders, a gen-
eral agreement includes the belief that servant leaders exhibit a desire or sense of calling to
serve others; they build positive relationships with others and are committed to develop-
ing the potential of others, and they anchor their decisions and actions in ethical and moral
principles.
Servant leadership has received praise from a number of well-known leadership writers.
In addition, supporting research indicates that servant-oriented behavior produces better
results in employees and organizations. Servant leadership has been embraced as a guiding
philosophy for many companies such as Service Master, Southwest Airlines, The Toro Com-
pany, and Men’s Wearhouse.
Figure 4.1: Servant leadership model
Adapted from Greenleaf, R. K. (1970). The servant as a leader. Westfield, IN: The Greenleaf Center for Servant Leadership.
Put service before
self-interest
A servant leader is more concerned
about helping and serving others than
personal success, status, financial
rewards, or power. Organizations
exist to benefit employees and others,
not just for financial gain. Leaders are
committed to doing what is right no
matter what the cost.
Listen first to build
confidence in others
Instead of imposing their will on others,
servant leaders are committed to listening
to others and discovering their needs
and concerns and what it will take
to make them successful.
Inspire trust by being
trustworthy
Servant leaders earn trust by being
honest, moral, true to their words,
committed to focusing on the
well-being of others, and
transparent in what they do.
Servant
Leadership
Nourish others and help
them become whole
Servant leaders genuinely care
about followers and about
developing their full potential.
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Section 4.1 Recent Views of Leadership: Servant, Positive, and Principle Centered
The major concerns with this theory primarily relate to the difficulty in clearly defining and
researching servant leadership and the concern that the way it is sometimes portrayed can
take the focus on the servant role of leaders and empowered role of followers too far to be
realistic, practical, and wise.
Positive Leadership
Kim Cameron introduced positive leadership in 2008 in his book by that title. The concept is
clear, makes sense, and is supported by substantial research in the book. In the short time since
Dan Amos: A Profile in Servant Leadership
Perhaps the best example of servant leadership at the
executive level is that of Dan Amos in his tenure of CEO
at Aflac. Amos first joined the company in 1973 as a sales
associate while in his teens. He served as state manager of
Aflac’s Alabama/West Florida Territory for 10 years. Under
his leadership, his sales territory was the number one
producing area in 1981 and 1982. In 1983, Amos was named
president of Aflac, and he became chief operating officer
of Aflac in 1987. He became chief executive officer of Aflac
Incorporated in 1990 and was named chairman of Aflac’s
board of directors in 2001.
During Amos’s tenure as CEO, revenues at Aflac have
grown from $2.7 billion to $22.7 billion as of December
31, 2014. Early in his tenure as CEO, Amos set a new
standard for leadership when he insisted that the company’s
stockholders vote on his compensation package. At that
point (2005), he received a $1.2 million salary, $2.5 million
as a bonus, and $2.5 million in stock bonuses. His voting
program for the pay system was named “advisory role.” The
level of pay stood in stark contrast to some of the exorbitant salaries given to much less
successful executives in that time period.
In addition to his approach to pay, Amos helped Aflac establish Georgia’s largest in-house
childcare facility, which was named “Imagination Station.” The Aflac company has received
several awards as one of America’s top 100 family-friendly firms. Amos’s other works
include efforts to incorporate other segments of society into the organization, which has
led to Aflac’s recognition by Hispanic Magazine as one of the country’s top 100 employers
for Hispanic citizens. The firm has also been recognized as one of the 50 best for minority
workers.
Dan Amos does not operate entirely with altruism in mind. He believes in a strong link
between pay and performance. His executive team is subject to the same pay votes from
the advisory role played by stockholders. He treats all employees with response and care,
believing such an attitude then translates into the type of relationships his workers will
have with customers and the general public. The concept that servanthood gets passed
along to others has served as his guiding principle for many years (ABC News, 2009).
Tomohiro Ohsumi/Bloomberg/
Getty Images
Dan Amos, chairman
and chief executive offi-
cer of Aflac, Inc., speaks
during a news confer-
ence in Tokyo in 2013.
war82476_04_c04_101-132.indd 105 3/3/16 11:32 AM
Section 4.1 Recent Views of Leadership: Servant, Positive, and Principle Centered
Cameron presented his ideas, the viewpoint has been subject to a number of research studies by
Cameron and others suggesting that the theory has the potential to achieve exceptional results.
Positive leadership shows how to reach beyond ordinary success to achieve extraordinary
effectiveness and what Cameron calls positively deviant performance, which means perfor-
mance far above the norm. The positive leadership approach is part of the newly emerging
fields of positive organizational scholarship, positive psychology, and positive change. Citing
extensive research to support his claims about positive leadership, Cameron shows that to go
from successful to exceptional, leaders must learn how to create a profoundly positive envi-
ronment in the workplace. They must build on strengths rather than being preoccupied with
weaknesses and take a positive approach to the various issues they face.
Positive leadership does not mean that you put a positive spin on things or that you avoid
negative or difficult issues that need to be dealt with. Instead, it refers instead to how leaders
deal with these issues along with learning how to build a positive organization. The concept
is as much a philosophy about living as it is a philosophy about leading and can have a signifi-
cant impact on both one’s professional life and personal life.
Cameron writes, “Positive leaders focus on organizational flourishing, enabling the best of
the human condition, and creating exceptionally positive outcomes, not merely on resolving
problems, overcoming obstacles, increasing competitiveness, or even attaining profitability”
(2008, p. 13). He says that positive leaders employ the four positive leadership strategies
displayed in Table 4.1.
Table 4.1: Positive leadership strategies
Cultivating a positive climate: The work climate, or work culture, as it is often called, can have a significant
positive or negative impact on employee performance and morale. Leaders should build a work environment
where employees have optimistic attitudes and cheerful outlooks. Leaders can do this by showing compassion
(being concerned about others), forgiveness (dealing with issues and mistakes in helpful rather than harmful
ways), gratitude (showing appreciation and thankfulness), and creating win/win situations as much as possible.
Developing positive relationships: Relationships affect every aspect of our lives including our mental,
emotional, physical, and spiritual well-being and our effectiveness at whatever we do. Positive relationships
are relationships that have a beneficial effect on people. They are a source of enrichment, vitality, and learn-
ing. Leaders can do many things to build positive relationships but should particularly focus on developing
positive-energy networks (finding positive people to relate to, encouraging and valuing positive behaviors,
and creating opportunities for positive people to work together and influence others) and building on indi-
vidual and organizational strengths (building on strengths rather than dwelling on weaknesses and turning
difficulties into opportunities).
Using positive communications: The way we communicate is another central factor that affects all aspects
of our lives and is critical to being an effective leader and person. Positive communications (using affirmative
and supportive language rather than negative and critical language) is much more likely to build strong rela-
tionships and result in higher-performing people and organizations than negative communications. Positive
leaders become skilled at using positive communications by soliciting feedback on how they communicate
and by practicing using supportive communications in dealing with both positive and negative issues.
Developing positive meaning to work: When people feel that they are pursuing a profound purpose or
engaging in important work, performance, morale, dedication, focus, and loyalty all increase, and a preoc-
cupation with negatives and organization weaknesses decreases. Leaders can add meaning to work by
clarifying and emphasizing the benefits of the work that is being done to society or others, associating work
outcomes with values important to employees, identifying the long-term impact of the work being produced,
and by emphasizing the contributions that people and teams make that adds value to others.
Source: Based on Cameron, K. (2008). Positive leadership. San Francisco, CA: Berrett-Koehler Publishers.
war82476_04_c04_101-132.indd 106 3/3/16 11:32 AM
Organizational
Managerial
Interpersonal
Personal
Section 4.1 Recent Views of Leadership: Servant, Positive, and Principle Centered
Positive leadership theory suggests that individuals can learn to be effective and that the
results of this approach in both one’s professional and personal life can produce remarkable
results. There is a need for more study of this approach, although the early research has been
mostly favorable.
Principle-Centered Leadership
Stephen Covey, author of the best-selling book Seven Habits of Highly Effective People (1989),
also wrote a number of other top-selling books about leadership including the book Principled-
Centered Leadership (1990).
In general, the media reports many stories about business and political leaders and leaders in
almost every type of endeavor who have made serious judgment, moral, or ethical compro-
mises because of a lack of principles, no matter what the cost. Covey advocates principled
leaders of strong character who build sound principles into the way they lead and live both
their work and off-work lives. He points out that when people have strong principles, they
become more balanced, unified in their thinking and practices, anchored, grounded, and less
likely to make compromises.
According to Covey, leaders prac-
tice principle-centered leader-
ship from the inside out on four
levels, which we can see in Fig-
ure 4.2:
1. personal (my relation-
ship with myself and
demonstrating that I am
trustworthy);
2. interpersonal (my
relationships and inter-
actions with others
and building trust with
others);
3. managerial (my respon-
sibility to get a job
done with others and
empower others); and
4. organizational (my need
to organize people; to
recruit them, train them,
and compensate them; to
build teams, solve prob-
lems, and create aligned
structure, strategy, and
systems).
Figure 4.2: Principle-centered leadership
Principle-centered leadership is practiced from the inside
out on four levels: personal, interpersonal, managerial, and
organizational practices.
Adapted from Covey, S. (1990). Principle-centered leadership. New York: Simon &
Schuster.
Organizational
Managerial
Interpersonal
Personal
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Section 4.2 Charismatic Leadership
Principle-Centered Leadership Practices
Principle-centered leadership practices consist of the following:
1. Be proactive (take responsibility for your behavior, be a self-starter, make changes).
2. Begin with the end in mind (decide what you are going to do with your time, talent,
tools, and life).
3. Put first things first (lead a disciplined life that focuses on what is most important).
4. Think win-win (strive for mutually beneficial decisions and seek to make others look
good).
5. Seek first to understand, then to be understood (be an empathetic listener who first
tries to understand others before needing to be understood).
6. Synergize (work cooperatively together with others to find mutually agreeable
solutions).
7. Sharpen the saw (lead a balanced life of continuous improvement and self-renewal).
Covey notes that ineffective people are reactive and blame others, work without any clear end
in mind, do the urgent things first, think win/lose, seek first to be understood, seek to win or
compromise, fear change, and put off improvement.
In summary, these three theories of leadership stress the value of caring for your own per-
sonal value set as well as the well-being of others. Evidence suggests that such a mindset
bodes well for individual career success along with a better outcome for the company that
you serve.
Self-Reflection Questions
1. A servant leader would be viewed as having the strength to empower and
assist others. Can you think of items that others might perceive as weak-
nesses in the same leader? Are these valid concerns? Defend your answer.
2. Name the ethical and business principles you believe are most important to
being an effective principle-centered leader. Defend your choices.
4.2 Charismatic Leadership
As the latter half of the 20th century unfolded, new theories of leadership began to emerge.
These approaches ranged in scope from those emphasizing leader activities (servant, prin-
ciple centered) to other aspects of a leader’s responsibilities. In this section we will discuss
charismatic leadership.
Charismatic leadership was first mentioned by Weber in 1947 and developed by House in
1976. Charisma is a Greek word that means “a compelling attractiveness or charm that can
inspire devotion in others” (Stevenson & Lindberg, 2010). Charisma is considered a gift that
some leaders have to inspire and motivate people. It can be effective when present in genuine,
grounded leaders who have a strong sense of ethics and morality. Charismatic leadership
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Section 4.2 Charismatic Leadership
can motivate people to achieve at higher levels. The passion that charismatic leaders have for
what they do can motivate people to commit to actions and perform at higher levels. Table 4.2
identifies key charismatic leader characteristics.
Table 4.2: Charismatic leader characteristics
Characteristic Description
Vision and articulation An idealized goal communicated to others
Personal risk Willing to take high personal risks and engage in
self-sacrifice
Environmental sensitivity Makes realistic assessments about the environment
and resources needed to make changes
Sensitivity to follower needs Understands others’ abilities and responds to their
needs
Unconventional behavior Does things that are novel and counter to traditional
norms
Source: Based on Conger, J. A., & Kanungo, R. J. (1998). Charismatic leadership in organizations. Los Angeles: Sage.
Charismatic leaders influence followers with a four-step process. The leader first expresses
an appealing vision that leads followers to believe a better future can be constructed. Second,
the leader sets high performance expectations of others while expressing confidence that
those outcomes are achievable. Third, the leader establishes values for followers to emulate,
through his or her words and actions. Fourth, the personal sacrifices the leader makes chal-
lenge others to be courageous and help achieve the vision (Shamir, House, & Arthur, 1993).
A person can become a charismatic leader by engaging in three activities. First, the leader
must create enthusiasm, expressing ideas not just with words, but with deeds and the entire
set of communication skills at his or her disposal in order to help develop an aura of enthu-
siasm. Second, the leader needs to create bonds with others to inspire action. Third, a char-
ismatic leader taps into the emotions of others in a way that brings out their potential (Rich-
ardson & Thayer, 1993).
Some evidence suggests that charismatic leaders increase levels of performance and satisfac-
tion in followers (Kirkpatrick & Locke, 1996). Those working with such leaders give extra
effort due to bonds with the leader. They also express satisfaction as a result of those connec-
tions. When trustworthy and ethical leaders apply it wisely, charismatic leadership can lift the
energy and performance of an entire organization. A number of studies have documented the
unique qualities of charismatic leaders and the impact they have on followers and the excep-
tional results they are often able to accomplish (Conger et al., 1988; House & Howell, 1992;
Klein & House, 1995).
Unfortunately, it is also possible to misuse and abuse charisma. If charismatic leaders lack in
ethics, strong character, or morals; tend to be overconfident and narcissistic (self-absorbed
and egotistical); or lack the capabilities to deliver on their promises, they gain followers but
eventually lose the respect and confidence of most (Tucker, 1968; Conger, 1999; Howell &
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Section 4.3 Defining Transformational Leadership
Avolio, 1993). Individuals of this type can also lead people down the wrong paths and moti-
vate people to act on emotion rather than sound judgment, as they tend to be very persuasive.
Charismatic leadership may be, however, situation specific. In other words, what becomes
inspirational to employees in one setting may not work as well in others. Also, due to the
nature of the vision needed to be perceived as charismatic, it may be that the behaviors are
limited to those at the rank of CEO or top manager as well as entrepreneurs.
Additional criticism of the charismatic model is that not all organizations may benefit from
such an individual. Companies in crisis or those requiring strong direction due to environ-
mental challenges appear to be best served by such individuals. In other more stable situ-
ations the style may be of less value. And finally, some charismatic leaders have seemingly
become more interested in the trappings of high rank rather than continuing to serve as effec-
tive organizational directors (Raelin, 2003). Bass has used the term pseudotransformational
leadership (1998) to describe such leaders who may pitch grand visions but who are essen-
tially self-consumed, exploitive, power oriented, and have questionable moral values.
Self-Reflection Questions
1. Can you think of a situation in which being a part of a leader’s out-group might be
an advantage, in terms of a personal career? Can you think of a situation in which
being a part of a leader’s in-group might create a career disadvantage? Explain your
answer.
2. Does the charismatic leadership approach apply to all levels of management, or only
at the CEO/top management level? Defend your response.
4.3 Defining Transformational Leadership
The term “transformational leadership” was first introduced by Downton in 1973. It is the
process of taking organizations to new levels of performance and health by utilizing skills in
leadership, championing change, and transforming organizations. Transformational means
to fundamentally transform something or someone from one condition or state of being to
another. James MacGregor Burns is the scholar who is usually credited with formally concep-
tualizing the nature of transformational leadership.
Transactional and Transformational Leadership
In Leadership (1978), Burns made a distinction between transactional and transformational
leadership. Transactional leadership focuses on the transactions, or exchanges, that occur
between leaders and followers in getting the job done and achieving goals. Leaders provide
something of value for the followers in exchange for doing what needs to be done. For exam-
ple, leaders are using transactional leadership when they offer followers pay, recognition,
promotions, and challenging assignments for their efforts. Politicians use transactional lead-
ership tactics when they offer promises for votes; teachers utilize transactional leadership
when they offer grades for completed work. Transactional leadership is based on appealing
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Section 4.3 Defining Transformational Leadership
to the self-interest of followers to motivate …
6 Motivating Today’s Workforce
Fuse/Thinkstock
Learning Objectives
After reading this chapter, you should be able to:
• Understand the important role motivation plays in effective leadership.
• Analyze content- or need-based theories of motivation.
• Apply the ideas present in process theories of motivation.
• Use the principles present in reinforcement theory to motivate followers.
• Recognize the value of employee empowerment.
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Introduction
Introduction
The most successful entrepreneurial ventures begin with a great idea but only last when an
individual becomes the driving force that leads the new firm to growth and vitality over time.
Sir Richard Branson clearly fits this mold. His series of companies operating under the Virgin
label has grown into a worldwide phenomenon. There are now more than 100 Virgin com-
panies around the globe, employing approximately 60,000 people in more than 50 countries
(Virgin, 2015).
Branson began Virgin as a mail order record retailer. In 1970, he created Virgin Records and
opened a shop in London. Then he built a recording studio. The company eventually signed
many big name musical groups, including the Sex Pistols and the Rolling Stones, which made
the company the biggest independent label in the world. In 1984, Branson established Virgin
Atlantic as a leading global airline, and soon many other businesses followed.
One key to his massive success has been the ability to motivate those in the various Virgin
companies. “If you really want to grow as an entrepreneur, you’ve got to learn to delegate.
When my friends and I started up Virgin, I knew that I was lacking vital knowledge on some
subjects, and so I started learning this skill very early on in my career,” Branson (2015a, para.
3) wrote. He adds,
As Virgin grew, our “serious fun” approach became a driving force for our
enterprise. We took our passion for our work and our idea that we could
upend “business as usual” to change things for the better and applied them
to creating better banks, trains, telecoms and airliners, plus a multitude of
other diverse ventures around the world. We are often asked how we have
maintained this culture across the more than 300 companies that Virgin has
started up. The answer: We make sure that every new company that joins the
Virgin family fits within the brand’s ethos and personality, which includes a
commitment to making a positive difference for the wider community and the
planet. Remember that a fun and inclusive atmosphere will make this journey
you’re embarking on more enjoyable—and much more likely to be successful.
(Branson, 2015b, para. 5–6)
Sir Richard is more than willing to share his ideas. He has more than 11.5 million followers
across five social networks. He has also written six books. He set up the Virgin Earth Chal-
lenge in 2007—a $25 million prize for scalable and sustainable ways of removing greenhouse
gases from the air. In 2004 he established nonprofit foundation Virgin Unite to tackle tough
social and environmental problems, and he strives to make business a force for good. Branson
was awarded a knighthood in 1999 for services to entrepreneurship.
Understanding motivation contributes mightily to effective leadership. On an individual level,
leaders have to be motivated to be successful (Cuban, 2013). Further, motivating others is also
essential to their success (Yukl, 2012). If they aspire to become excellent leaders, they need
to know how to motivate followers to go beyond their own self-interests to perform beyond
what they thought was possible (Grant & Patil, 2012). For organizations, the ability to develop
a highly motivated workforce provides a significant competitive advantage, as their workers
are more productive and satisfied and their profits are higher than the typical organization
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Section 6.1 The Role of Motivation in Leadership Activities
(Steers & Porter, 1983; Grant, 1998; Steers, Porter, & Bigley, 1996). A Gallup Organization
study revealed that when an organization’s employees are highly motivated, turnover drops
by 70%, profits increase by 40%, and customers are 70% more loyal (Coffman & Gonzales-
Molina, 2007).
This chapter offers ideas regarding motivation challenges facing organizations. It is designed
to educate leaders on what motivation is, how it works, and how leaders can be skilled moti-
vators of people. It contains a description of motivation and presentations regarding the many
theories devoted to the topic. It also provides implications for effective leadership.
6.1 The Role of Motivation in Leadership Activities
Pinder (2008) and Kanfer (1990) define motivation as the processes that account for an
individual’s intensity, direction, and persistence of effort in obtaining a goal (in this case, a
work-related goal). In this context, intensity implies or suggests a level of effort; direction sig-
nifies that the level of effort is devoted to a specific goal or outcome; and persistence indicates
the level of time a person will give to achieving the goal in a sustained fashion. Organizational
behavior literature and textbooks widely accept such a definition.
In addition to understanding what
motivation is, leaders should work
to understand various views and
theories regarding motivational
processes. They can then use an
understanding of these ideas to
monitor and guide their own activ-
ities and to assess what motivates
others. They can also provide
insights into the significant impact
leaders can have on the lives and
careers of people by helping peo-
ple satisfy their motivation needs
or by frustrating their motivation
needs.
The CEO and top-level leaders
are in the best position to design
organizations to enhance motivational levels of employees. Organizational leaders at all ranks
are able to influence the motivation in one-on-one interactions with followers. Leaders can
shape the climate in which people work as well as the jobs they have, the clarity they have
about what is expected of them, how they are treated on the job, and the satisfaction they
experience in the job. A leader can achieve this outcome by applying concepts from the vari-
ous theories regarding motivational processes. Table 6.1 outlines the more notable of these
theories, using the categories of content, process, reinforcement, and other theories. Each
adds to our understanding of the ways in which people may be driven to give increased effort
(intensity) aimed at specific goals (direction) over extended periods of time (persistence).
iStock/Thinkstock
Top-level leaders are in the best position to design
organizations in ways that enhance the motivation of
employees.
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Section 6.1 The Role of Motivation in Leadership Activities
Table 6.1: Motivation theories
Theory Central Idea Application
Content Theories
Focus is on identifying and satisfying employee needs
Maslow’s Need Hierarchy The ability to satisfy needs is a
strong motivator. Frustrated needs
can be strong de-motivators.
Leaders need to create work
situations that satisfy rather
than frustrate the needs of their
people.
Herzberg’s Motivation/
Hygiene Theory
Hygiene factors (job surround-
ings) when sufficient free people
to focus more on motivation fac-
tors (factors in the job) that are
the most motivating to people.
Leaders need to pay attention
to both job hygiene and motiva-
tion factors to motivate people to
perform at their best.
McClelland’s Achievement
Motivation
People are motivated by their
needs for achievement (goal
oriented), power (influencing
others), and affiliation (close
relationships).
Leaders should focus on provid-
ing challenging work, opportu-
nities for responsibility, and a
team-oriented environment.
Process Theories
Focus is on how employees choose behaviors to meet their needs
Adam’s Equity Theory It is important to make efforts
and rewards equitable and to
treat people fairly.
Leaders should make clear what
is expected, explain why they do
what they do, and treat people
fairly and equitably.
Vroom’s Expectancy Theory People are motivated when they
can expect that the rewards for
doing something are worth the
effort and can be de-motivated
when they are not.
Leaders need to make expecta-
tions clear and the tangible and
intangible rewards for doing
something motivating.
Locke’s Goal-Setting Theory Specific, challenging, and achiev-
able goals are strong motivators.
One of the best ways for leaders
to motivate people is to involve
them in achieving compelling
goals.
Reinforcement Theory
Focus is on motivating people by influencing the consequences of behavior
Positive Reinforcement Any time that you positively rein-
force a behavior, you increase the
probability the behavior will be
repeated.
Leaders should look for ways to
genuinely and positively rein-
force and encourage desirable
behaviors.
Negative Reinforcement Escaping or avoiding a nega-
tive event by exhibiting and/or
repeating a behavior.
Meeting a deadline in order
to avoid a reprimand; “talking
down” an angry supervisor by
telling a funny joke that changes
his/her demeanor toward you.
Punishment Punishment occurs when clearly
punitive consequences are
administered for undesirable
behaviors.
Punishment should be reason-
able and designed to correct the
undesirable behavior and teach
principles.
(continued)
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Section 6.2 Content Theories of Motivation
In general, the ability to motivate has often defined great leaders. This skill covers a wide
spectrum of organizations and activities, from serving as a general in the military to succeed-
ing as a coach in amateur or professional sports, to invigorating the population as a politi-
cal leader, to taking charge of a business organization. Clearly leadership and motivation are
closely related topics and undertakings.
Theory Central Idea Application
Extinction If no reward is given, the behav-
ior might stop. If punishment
stops, an unwanted behavior
might return.
Continue to reward desired
behaviors; continue to punish
dangerous or toxic behaviors.
Other Theories
Empowerment Giving people more power and
authority to govern their behav-
ior and make decisions.
Empowerment requires far more
than delegating more respon-
sibility. People and the orga-
nization must be prepared for
empowerment.
Adding Meaning to Work Making work more meaningful
by helping people understand
their impact is a powerful
motivator.
Leaders should be innovative in
finding ways to make individual
and group efforts meaningful.
Self-Reflection Questions
1. The word “motivation” is derived from the Latin term movere, which means
“to move.” Explain how this concept would apply to intensity, direction, and
persistence as words used to define motivation.
2. In general, which factor can a leader use to motivate employees most fre-
quently? Defend your answer.
6.2 Content Theories of Motivation
Content theories of motivation focus on identifying and satisfying employee needs. These
theories are designed to explain the needs of people and how they relate to effort and activi-
ties. They may provide leaders with insights about what they can do that motivates and sat-
isfies the needs of employees and what they may be doing that frustrates or inhibits need-
fulfillment by employees that might decrease levels of motivation.
Maslow’s Hierarchy of Needs
Maslow’s need hierarchy is well known. He proposed a model in which peoples’ needs can be
assigned into a hierarchy of categories, ranging from the most basic physical needs to higher
Table 6.1: Motivation theories (continued)
war82476_06_c06_171-206.indd 175 3/3/16 11:31 AM
Physiological Needs
Safety Needs
Belongingness Needs
Esteem Needs
Self-Actualization
Needs
Section 6.2 Content Theories of Motivation
order psychological desires. His model suggests that an individual will not be motivated to
satisfy a need at the next level until the current need level is at least minimally satisfied. The
need hierarchy consists of the items displayed in Figure 6.1.
Figure 6.1: Needs in Maslow’s hierarchy
Based on Maslow, A. (1943). A theory of human motivation. Psychological Review, 50, 370–396.
Physiological Needs
Safety Needs
Belongingness Needs
Esteem Needs
Self-Actualization
Needs
Note that it is possible that instead of having to satisfy one level of needs before moving
upward to another level, people might be involved in some level of satisfaction and dissatis-
faction on many, if not all, levels of the hierarchy simultaneously. For instance, a person may
have accomplished important things in challenging circumstances while many of his or her
lower-level needs were being frustrated.
Maslow’s theory offers several implications for leaders. Although actual empirical support
for the theory is weak, it does help make leaders aware of the needs of employees and the
importance of helping satisfy those needs. Such an approach also suggests the importance of
not frustrating employee needs.
Many practicing managers believe that effective leaders and their organizations should focus
on providing sufficient pay and benefits (physiological needs); offering as much job security
as is possible (safety needs); making people feel valued and paying attention to social needs
(belongingness needs); giving people meaningful work to do and recognizing their efforts
(esteem needs); and creating opportunities for growth and utilizing one’s potential (self-
actualization needs).
Herzberg’s Motivation/Hygiene Theory
In the 1950s, Frederick Herzberg developed the motivation/hygiene theory of motivation,
which also commonly goes by the title of Two Factor Theory (Herzberg, 1967). Herzberg, a
social psychologist, developed the ideas based on surveys administered to accountants and
engineers in which he asked them to describe when they felt good or bad about their jobs. He
war82476_06_c06_171-206.indd 176 3/3/16 11:31 AM
Section 6.2 Content Theories of Motivation
found that one set of job factors created negative or neutral feelings and another generated
positive feelings. He called the factors that created negative or neutral feelings hygiene factors
and the ones that created positive feelings motivators.
Herzberg called the negative or neutral factors hygiene or maintenance factors because they
included job surroundings that resulted in employees being dissatisfied if they were absent
or inadequate. At the same time, if they were adequate, while removing the dissatisfaction,
these factors did little if anything to motivate people because they are largely extrinsic in
nature—that is, given by others. Herzberg believed that by providing adequate hygiene fac-
tors, leaders can prevent job dissatisfaction but cannot count on them to motivate employees.
The hygiene factors include things such as the items identified in Table 6.2.
Table 6.2: Herzberg’s satisfiers and dissatisfiers
Hygiene Factors (Dissatisfiers) Motivators (Satisfiers)
Pay or salary A sense of achievement
Working conditions Meaningful work
Supervision and one’s relationship with a
supervisor
Recognition for what you do
Job security Opportunities for advancement
Organizational policies and procedures Opportunities to learn and grow
Interpersonal relations with peers Increased responsibility
Herzberg found that what satisfies and motivates people the most is what they do. Some lead-
ers assume that if you pay people well and take care of most of the hygiene factors, people
should be motivated. In contrast, Herzberg’s research indicated that leaders should pay far
more attention to the jobs that people do and how those positions can be designed to appeal
to a person’s higher needs because these motives are more intrinsic, or internal to a person’s
psyche. You can see the primary job motivators in Table 6.2.
In Herzberg’s original research, money was on the borderline of being a hygiene factor or
motivator. Does money motivate? It can when a clear cause-and-effect relationship exists
between what a person does and what the individual receives, only when the money is suf-
ficient enough to matter or make a difference in the person’s mind. The reason that money is
listed as a hygiene factor, however, is that when an individual perceives pay to be inequitable,
it can be a major dissatisfier. Also, even when pay is adequate, it may not be enough to inspire
extra effort.
The major implication of the motivation/hygiene theory for leaders is to pay close attention
to both hygiene and motivator factors in working with employees and to realize that a great
deal of motivation can come from the design of individual jobs (Hackman & Oldham, 1980;
Dunham, 1977). One such approach, job enrichment, provides a way to make jobs more moti-
vating because it adds work-specific motivators and seeks to match a person’s skill set with
his or her job requirements.
The Edward Jones company demonstrates how two-factor theory can be applied to a business
organization. The company’s pay and benefit program removes any problems associated with
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Section 6.2 Content Theories of Motivation
hygiene factors and dissatisfaction. The use of group bonus incentives as well as individual
incentives for performance builds achievement and recognition into the job, which includes
friendly interactions with customers and coworkers plus the challenge of creating financial
portfolios that serve individual needs. The opportunity to become a limited partner in the
firm adds the chance for growth into the mix. It should not be surprising, then, that the com-
pany has a satisfied and motivated workforce.
Critics have challenged some aspects of two-factor theory. First, the terms “motivation” and
“satisfaction” are being used interchangeably, when they may not explain the same outcome.
A person can state he or she is satisfied because “I don’t have to do anything—just collect a
check.” In other words, “I’m satisfied because I don’t have to be motivated.” Another individual
might report extreme dissatisfaction and motivation as the result, as in, “I hate working third
shift (working conditions), so I’m going to try extra hard to get promoted so I can work days.”
The bottom line is that even though other combinations are possible, two-factor theory only
accounts for circumstances in which individuals are satisfied and motivated or dissatisfied
and unmotivated as a consequence.
Second, note that accountants and engineers are not necessarily representative of every occu-
pation. These individuals tend to earn higher incomes and hold jobs that are more interesting.
Interviews of sales clerks in a department store or the janitorial staff might result in different
answers regarding workplace satisfaction and motivation, as would answers of employees
from other countries and cultures.
In spite of these criticisms, many leaders believe the theory helps explain workplace dissat-
isfaction. One of the strengths of two-factor theory is that the research was conducted in a
work environment and was directed toward employment-related, rather than more general,
motives. Further, the concept of making jobs more interesting and challenging resonates with
managers, employees, and the academic community. As a result, two-factor theory continues
to be a popular method for examining the workplace environment.
James Sinegal: Workplace Quality
When a leader has a positive reputation with
those asked to follow, word gets around. One such
individual, James Sinegal, co-founded and directed
Costco as the chain grew and became a legend in
the retail world. Even during the 2008 recession,
Costco earned a profit of nearly $1.3 billion
(Ruggeri, 2009). How did that happen?
Sinegal’s leadership style began with a vision.
His objective was to always make money by
keeping prices low so that other stores find it
hard to compete. Costco’s legendary low markups
on inventory have contributed to customer
satisfaction; however, that is only part of the story.
After all, to shop at Costco involves paying an
annual membership fee. What else is going on?
Daniel Acker/Bloomberg via Getty Images
James Sinegal walks through
Costco store in New York.
(continued)
war82476_06_c06_171-206.indd 178 3/3/16 11:31 AM
Goal oriented, quick
to take responsibility,
like challenges, take
calculated risk
Seek close relationships
with others, enjoy social
activities, building
relationships is a high
priority
Take-charge attitude,
high concern for
influencing others,
seek positions of
authority
PowerAffiliationAchievement
Section 6.2 Content Theories of Motivation
McClelland’s Achievement Motivation Theory
David McClelland’s theory is known as achievement theory or acquired needs theory (1961).
His approach suggests that the desire to satisfy needs motivates behavior and that those
needs are based on one’s unique personality and are acquired through interaction with the
environment. In his theory, McClelland concluded that all people possess three needs to vary-
ing degrees that drive motivation, as you can see in Figure 6.2.
Figure 6.2: McClelland’s theory of needs
McClelland concluded that all people possess three needs to varying degrees: achievement, affiliation,
and power.
McClelland, David (1961). The achieving society. New York: Van Nostrand Reinhold and McClelland, D. C. (1965). Toward a theory of motive acquisi-
tion, American Psychologist, May, 321–333. American Psychological Association. Adapted by permission of the American Psychological Association.
Goal oriented, quick
to take responsibility,
like challenges, take
calculated risk
Seek close relationships
with others, enjoy social
activities, building
relationships is a high
priority
Take-charge attitude,
high concern for
influencing others,
seek positions of
authority
PowerAffiliationAchievement
James Sinegal: Workplace Quality (continued)
Sinegal and Costco’s leadership team emphasize taking excellent care of employees. In 2008,
86% of workers received healthcare insurance and benefits, even though half were part-
timers. Even then the average wage granted reached $19 an hour. Costco did not have layoffs
during the recession. Why such generosity?
“It’s really pretty simple. It’s good business. When you hire good people, and you provide
good jobs and good wages and a career, good things are going to happen,” Sinegal says
(Ruggeri, 2009, para. 5). “We try to give a message of quality in everything that we do, and
we think that that starts with the people. It doesn’t do much good to have a quality image,
whether it’s with the facility or whether it’s with the merchandise, if you don’t have real
quality people taking care of your customers.”
CEO Sinegal was legendary for touring individual stores and providing praise to managers
and employees alike. His goal was to make the shopping experience enjoyable for everyone
in the store, including employees. Clearly the approach has worked.
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Section 6.3 Process Theories
McClelland’s motivation theory can be useful in understanding that people have different
needs and that the three need profiles provide leaders with insights regarding what moti-
vates various individuals. Much of McClelland’s subsequent work focused on persons with
high needs for achievement. As employees, such individuals tend to work best in occupations
featuring attainable tasks and clearly outlined goals. As leaders, people with high achieve-
ment needs should resist the temptation to focuses solely on personal accomplishments and
learn to achieve by helping others succeed.
Those with low needs for achievement are inclined to create self-fulfilling prophecies of fail-
ure. They tend to lack confidence and avoid challenges. Some evidence suggests that the need
for achievement can be taught or enhanced through training which incrementally creates suc-
cesses that inspire the willingness to tackle more difficult challenges (McClelland, 1965).
Individuals with a need for power may be best motivated with autonomy, opportunities to
lead projects, and inclusion in making decisions. For people with high affiliation needs, it
seems logical to place them in jobs that involve others and in groups where teamwork and
collaboration are needed and, further, to offer praise for their successful efforts.
In summary, each of these theories focuses on need fulfillment as a primary motivating factor.
When needs go unfulfilled, motivation declines or does not exist. Leaders are advised to try
to understand the needs of their employees and work to make sure mechanisms are in place
to meet those needs.
Self-Reflection Questions
1. Describe motivation levels in workers who are young and just starting out,
using Maslow’s hierarchy of needs as a guide. Then, describe the motives
of senior-level employees who are about to retire using the same theory.
Explain your reasoning.
2. Does money motivate? If so how? If not, why not, or when does it not?
3. McClelland’s work focuses on individuals with high achievement needs. At
the other end of the spectrum, how would you lead someone with very low
needs for achievement? Do you believe that such personality characteristics
(low and high needs for achievement) may become relatively fixed at an
early age? Why or why not?
6.3 Process Theories
Process theories of motivation focus on how to evaluate various situations and then respond
with either higher or lower levels of effort and motivation. Some might suggest that process
theories are more complex than the content theories and therefore will be challenging for
leaders to apply. They can be helpful to leaders in terms of understanding the thought pro-
cesses that people go through as they encounter various organizational circumstances. They
may also assist in setting motivating goals and making policy decisions that are equitable and
meet the expectations of employees.
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Section 6.3 Process Theories
Adam’s Equity Theory
Have you ever worked in a job where things just didn’t seem fair? If so, equity theory, as devel-
oped by J. Stacy Adams, and concepts regarding organizational justice might explain how you
would react in such a situation. These feelings often take place after observing what happens
to you and to others.
We can describe the essence of
equity theory as follows: When
people perceive their situation at
work as being fair or equitable,
they are more likely to remain
motivated at the level they have
always given. When they perceive
their situation as unfair or inequi-
table, they are prone to dissatis-
faction and there will be an impact
on their levels of motivation. In
simple terms, equity theory pro-
poses that an important part of
the motivation process involves
considering if what you do and the
rewards you get are equitable and
if you are receiving fair treatment
in comparison to others. Adams
says that people are motivated to seek equity in the rewards they receive (outputs) for their
performance (inputs) (1963). A more in-depth description of the theory follows.
Inputs and Outputs
At work, people exchange inputs for outputs. Inputs include everything an employee trades to
an organization, expecting something in return. Examples of inputs include education, experi-
ence, special skills, levels of effort and productivity, helpfulness to others, creativity or sug-
gestions, and even personal appearance.
Outputs are the things the organization trades in exchange for inputs. Outcomes include pay,
praise, chances to be promoted, status symbols (corner office; reserved parking space), com-
pany benefits, job assignments, recognition, job security, and being included in organization
plans and decisions.
Presence of a Referent Other
A referent other is a person an employee chooses for purposes of making social comparisons.
In other words, you are likely to single out someone at work or in some other organization for
the purpose of examining inputs and outcomes. Most of the time, a referent other is someone
who was hired at about the same time and performs the same or a comparable job. In other
circumstances, different forms of referents are selected, as Table 6.3 displays.
Fuse/Thinkstock
Equity theory says that when people perceive their
work situation as fair, they are more likely to remain
motivated.
war82476_06_c06_171-206.indd 181 3/3/16 11:31 AM
Section 6.3 Process Theories
The Comparison
Each employee makes a comparison of input-outcome ratios with his or her referent other. In
essence, “give-get” relationships, or, “what I give and get versus what my referent other gives
and gets,” as we’ll see next:
Personal outcomes
versus
Referent other outcomes
Personal inputs Referent …
2 Preparing to Lead
iStock/Thinkstock
Learning Objectives
After reading this chapter, you should be able to:
• Establish a personal commitment to excellence.
• Understand the importance of character in a leadership position.
• Relate personal characteristics and actions to leadership success.
• Undertake efforts to grow and change.
• Display the willingness to change personal behaviors.
• Assume the characteristics of a whole person and a strong leader.
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Introduction
Introduction
The 2008 recession is now in the rearview mirror for many U.S. companies. Reaching that
point demanded major transitions for many firms, most notably in the automobile industry.
Among the most desperate, General Motors turned to its leader, Fritz Henderson, to steer the
organization out of its troubled situation. Doing so required a new style of leadership designed
to meet the challenges of a highly complex set of circumstances.
As reported in Forbes magazine in 2009,
Henderson was compelled to abandon the
“classic autocratic style” that had been
dominant in the company for many years.
Such a style relied on top leaders mak-
ing decisions, handing them down, and
enforcing compliance. In its place, this
newly promoted leader would need to
balance the needs and priorities of three
major players: the top management team,
the union, and the U.S. government, which
had loaned General Motors the funds to
try to escape from complete bankruptcy
and dissolution.
Any resurgence at General Motors would
require four core activities. First, the com-
pany’s leadership team would need to lis-
ten more and talk less. Second, the com-
pany should endeavor to turn to a more
collaborative style. Third, the major play-
ers should establish shared goals. Fourth
and finally, top management, and Fritz
Henderson specifically, should assume
responsibility for all decisions, actions,
and failures, all the while sharing the glory
of any successes (Morton, 2009).
History records that Fritz Henderson was
unable to enact the changes required to
save GM. Consequently, Ed Whitacre, whom the U.S. government had assigned to direct the
company’s recovery, replaced him (Ziegler, 2013). Whitacre was able to instill the needed
sense of urgency and take on the key activities required to achieve the turnaround. Although
GM also replaced Whitacre a year later, this time with Dan Akerson, before that occurred he
had managed to redirect the company into creating cars more in tune with the times, which
resulted in a profit of $1.3 billion in the second quarter of 2010 and allowed the company to
begin repayment of governmental loans and reestablish itself as a major player in the auto-
mobile industry. In Whitacre’s words, “GM is back.”
What explains the success of Ed Whitacre? One answer is his preparation for the leadership
role that he suddenly assumed. His success was due in large part to the willingness to take
dramatic steps that went against the grain of how the company had traditionally operated.
Bill Pugliano/Getty Images
Ed Whitacre, Jr., announcing he will be the
permanent CEO of GM at a press conference in
2010.
war82476_02_c02_029-064.indd 30 3/3/16 11:32 AM
Section 2.1 Commitment to Excellence
Perhaps the greatest leadership challenge is being a leader who sets an example worthy of
following. Leaders seldom realize how much influence they have on the behavior, attitudes,
performance, and practices of employees (Ready, 2004). They are often uplifting to be around,
bring out the best in people, and sometimes change lives and careers. However, they can also
be demoralizing to be around and bring out the worst in people, sometimes having undesir-
able and lasting effects. A Gallup poll of more than 1 million employees found that the number
one reason employees quit their jobs is because of a bad or ineffective boss (“No. 1 reason,”
2015). Other studies have found similar results and show how important not only skill is for
leaders but also strong character and treating employees with respect (Farley, 2013; Colquitt,
Lepine, Zapata, & Wild, 2011; Snyder, 2015).
Several key activities translate into eventual success when preparing to lead. They include
a commitment to excellence, the desire to exhibit a strong level of character, an assessment
of personal characteristics and activities, the willingness to grow and change, and the ability
to enact the key behaviors vital to quality leadership. In this chapter we will examine these
activities in detail.
2.1 Commitment to Excellence
To excel at anything requires preparation. This is particularly true for leaders because they
need skill at what they do while also remaining cognizant of the influence they exert on oth-
ers. Therefore, the first step of a leader’s preparation should be to commit to a higher level
of excellence. As leadership expert Jim Collins once noted: “The kind of commitment I find
among the best performers across virtually every field is a single-minded passion for what
they do; an unwavering desire for excellence in the way they think and the way they work”
(Collins, 2001, p. 87).
A commitment to excellence consists of several key thoughts and actions. Among them is the
recognition that such a commitment is an ongoing process and that one must overcome sev-
eral important barriers. A discussion of these issues follows.
Commitment as an Ongoing Process
In the past, many successful individuals argued that a commitment to excellence boils down
to a lifestyle choice. It does not mean the individual will excel at everything, nor does it nec-
essarily suggest that everyone can accomplish great things or achieve wealth or position.
Instead, a commitment to excellence involves the attitude with which a person approaches
things combined with the effort the individual gives. This approach takes precedence over
merely focusing on end results. Commitment is an ongoing process because every person
faces obstacles, disappointments, failures, and setbacks. This means it is necessary to con-
tinually renew such a commitment. From as far back as Aristotle’s time comes the argument,
“We are what we repeatedly do. Excellence, then, is not an act but a habit” (Durant, 2012,
p. 87). More recently, Steve Jobs, founder of Apple Computers, noted that “[s]ome people
aren’t used to an environment where excellence is expected.” Table 2.1 displays five potential
levels of commitment.
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Section 2.1 Commitment to Excellence
The goal of this book is to help you achieve the final level in Table 2.1—the commitment to be
your best and to help others attain the same result. In trying to reach this outcome, note that
while the probability of success can increase considerably, there are no guarantees of success.
A quality leader also recognizes that he or she may not enjoy a perfect life filled with self-
confidence in order to commit to excellence. Many notable individuals have impacted others
and achieved exemplary things while struggling with self-image and self-confidence issues.
Others overcame even more tangible obstacles. For example, Beethoven was almost totally
deaf and filled with sorrow when he produced many of his greatest works, even “Ode to Joy.”
Helen Keller, the great author and humanitarian, was deaf and blind. John Bunyan wrote Pil-
grim’s Progress while unjustly imprisoned.
Barriers to Committing to Excellence
You would think that with so many potential benefits to committing to excellence present,
such a goal would be widespread among people. Unfortunately such is not always the case.
In reality, an individual who makes such an effort will find far fewer people who wish to do
the same. Several key barriers to a commitment to excellence exist that we can explain with
concepts taken from psychology and social psychology. This section examines some of the
most notable.
Lack of Self-Awareness, Knowledge, or Motivation
Some people underutilize their potential because they are unaware of the tremendous
amount of ability they possess. They also may lack the knowledge regarding how to develop
their talents or they may lack the motivation to invest the hard work and sacrifice required
to utilize their potential. University of Pittsburgh psychologist Robert B. McCall stated, “An
underachieving diamond in the rough tends to stay in the rough.” Such individuals lack per-
sistence in the face of a challenge (Doskoch, 2004, para. 2).
Underachievement and a lack of motivation correlate with other problems in life. For exam-
ple, underachieving individuals tend to earn less money and suffer poor self-esteem, and their
marriages are 50% more likely to end in divorce (Doskoch, 2004). As professor McCall might
put it, while an average person might vow to train harder after losing a 100-meter dash, an
underachiever quits, thinking, “No one ever lost a race never run.”
Table 2.1: Levels of commitment
Level 1: A person decides that for whatever reason he or she is not willing to commit to a life of excellence at
this time.
Level 2: The individual commits to excellence in some area of life, noting that many people have built suc-
cessful careers by excelling at one thing.
Level 3: The person commits to excellence in several if not many parts of life.
Level 4: The individual commits to excellence in all aspects of personal and professional life.
Level 5: An effective leader goes beyond a personal commitment to excellence and seeks to inspire
excellence in others.
war82476_02_c02_029-064.indd 32 3/3/16 11:32 AM
Commitment to Excellence
Lack of Purpose Inability to Lead Effectively
A Sense of Purpose
Leads to
Leads to
Section 2.1 Commitment to Excellence
Fear of Failure
Closely related to underachievement, the fear of failure is the irrational fear a person has that
he or she will not succeed. The fear of failure is one of the primary causes of not committing
to excellence. Some deep-rooted psychological issues may explain such an outcome. As noted
by Tina Gilbertson in Psychology Today (2014, para. 5, t), “The psychological toll of trying
something new that might not work out has more to do with one’s personal demons than the
prospect of measurable losses. . . . Failure . . . can expose what feels like an inadequate, child-
like or vulnerable self.” The fear of failure dominates some individuals and leads to procrasti-
nation or perhaps the outright rejection of a commitment to excellence.
Fear of Success
Psychologist Susan Babbel writes, “Many of us have been conditioned to believe that the road
to success involves risks such as ‘getting one’s hopes up’—which threatens to lead to disap-
pointment.” Some have suggested that fear of success is the other side of the fear of failure
coin. Babbel notes that those who have experienced verbal abuse and people who heard they
were “losers” throughout their lives may have internalized that feedback. In essence, they
now believe they do not deserve success. Even those who did not suffer abuse or trauma often
associate success with “uncomfortable things such as competition and its evil twin, envy”
(Babbel, 2011, para. 4). In either case, fear of success can impede any commitment to excel-
lence and leadership as much as the fear of failure or a lack of motivation.
Lack of Purpose
Psychologist Steve Taylor notes that, “[t]he need for purpose is one of the defining character-
istics of human beings.” He argues that people crave purpose and suffer serious psychological
difficulties when they do not have it because purpose constitutes a fundamental component
of a fulfilling life (Taylor, 2013, para. 1). A lack of purpose contributes to the failure to commit
to excellence (see Figure 2.1). Experts have shown relationships between a lack of purpose
and anxiety, boredom, and depression.
Utilizing one’s potential requires a sense of purpose and direction. When someone lacks pur-
pose, the person wastes time and energy or invests time and energy into self-defeating or
unproductive activities. A sense of purpose gives people motivation and fills them with hope.
Without it, life eventually loses meaning and value. With it, people become inspired to do
more and may even live longer lives (Taylor, 2014).
Figure 2.1: Purpose and direction
Commitment to Excellence
Lack of Purpose Inability to Lead Effectively
A Sense of Purpose
Leads to
Leads to
war82476_02_c02_029-064.indd 33 3/3/16 11:32 AM
Section 2.1 Commitment to Excellence
Excuses
Most of us have the good sense to not use excuses that no one will believe. Therefore, we make
excuses for our behavior that even we believe. But in truth, excuses never change anything,
even when they are valid.
Becoming a Victim of Circumstances
A victim of circumstances is a person who allows past, present, or future events to control
his or her life. Such people have, in effect, assigned the responsibility of circumstances to the
ways they are and for their outcomes in life. Past events, as well as what others expect, think,
or do, control their futures.
Everyone has encountered negative realities or outcomes due to events that occurred in life
or because of choices they or someone else made. Not all decisions are the rights ones; some
may lead to hardships in the present. Believing that unavoidable circumstances are respon-
sible for the bad things that happen in life can mean that a person is not in a position to
develop his or her potential and commit to excellence as a leader. A commitment to excellence
requires the leader to let go of the past and seek to carve out a new future.
Overcoming Barriers to Committing to Excellence
The first step for some in making a commitment to excellence will be to recognize the poten-
tial barriers and impediments. Next, the individual seeks to overcome those barriers. Two
key ideas that can assist in this process include the willingness to give up on excuses and the
desire to overcome a fear of failure. These in turn can reduce any willingness to become a
victim of circumstances while building on the desire to succeed and achieve personal goals.
Giving Up Excuses
Excuses are the cancer of change and growth. They are like a disease that goes untreated and
continues to spread and inhibit a person’s potential. Leaders who are excuse makers will
likely develop followers who do the same. In some cases, excuses are valid; however, excuses
never change anything. If you can rationalize, justify, or make other people or circumstances
responsible for your behavior, the behavior will not change.
On the other hand, if you own responsibility for your behaviors, regardless of the reason for
that behavior, you at least situate yourself in a position of power: to change or to stay the
same. Taking the first step involves avoiding the use of excuses to serve as a crutch or a ratio-
nale for not trying. At that point, a stronger commitment to excellence as a leader begins.
Overcoming the Fear of Failure
Psychologist Timothy A. Pychyl (2009) notes that “[a]lthough we might all have some fear
about the future (feelings that are often related to avoidance goals), to the extent that we feel
competent to engage in the tasks ahead of us, this fear of failure doesn’t predict procrastina-
tion. We get on with our goal pursuit” (para. 12). Pychyl argues that a person’s sense of self
should be rooted in a sense of competence, not in a sense of fear. He notes that most people
experience fear; and that, in fact, fear can be considered as part of the basic human condition.
war82476_02_c02_029-064.indd 34 3/3/16 11:32 AM
Section 2.2 The Role of Character in Leader Success
2.2 The Role of Character in Leader Success
A leader’s character can exert a considerable influence on his or her ability to lead as well as
on the positive or negative influence the leader may have on the behaviors of others. It is pos-
sible to lead with manipulation, a lack of integrity, intimidation, and empty promises to fool
some, and perhaps even many, for a time. Sooner or later, however, a leader’s character begins
to define the person and the credibility or lack of credibility that the individual assumes that
enables him or her to influence and lead others.
Warren Bennis, the founding chairman of the Leadership Institute at the University of South-
ern California, said, “Successful leadership is not about being tough or soft, sensitive or asser-
tive, but about a set of attributes. First and foremost is character.”
The terms used to describe the nature of an individual’s character include that it is “strong”
or “weak,” good or bad character, or principled or unprincipled. We may describe a person as
having high standards and morals or low standards and morals, or as a person of integrity
whom you can trust or a person of questionable integrity whom you have to watch out for.
Most have had the privilege of knowing or learning about principled leaders of strong charac-
ter, and we’ve also all heard or read about leaders with major character flaws. Abraham Lin-
coln, for example, is renowned for his strong and uncompromising character. General Colin
Powell has been noted for the same characteristics in recent times. On the other hand, also
in recent years, a number of high-profile business and political leaders have gone to prison
because of ethical and moral lapses in character.
The U.S. Air Force defines a person’s character in terms of integrity, honesty, loyalty, selfless-
ness, and compassion. John Wooden, in his book Wooden on Leadership, simply explained
character as “respect for yourself, respect for others, respect for the game, whether it is bas-
ketball, business, or anything else” (2005, p. 73).
We can define character as the beliefs, values, attitudes, and conduct that defines or distin-
guishes a person. Figure 2.2 depicts the relationships between these components of charac-
ter. Let’s look at each one closely.
Self-Reflection Questions
1. Colin Powell once said, “If you are going to achieve excellence in big things, you
develop the habit in little matters. Excellence is not an exception; it is a prevailing
attitude.” Evaluate this statement in light of the materials in this section.
2. Can you think of examples of how the fear of success and/or fear of failure might
prevent a person from receiving a promotion to a leadership position? Explain your
answer.
3. Of the items listed as barriers to a commitment to excellence, which do you believe
represents the most powerful negative force? How would you overcome that barrier?
He suggests that developing and maintaining a sense of competence can play an essential role
in the ability to pursue goals effectively. By taking this stance it becomes possible to overcome
the fear of failure and pursue (rather than avoid) the desire to succeed.
war82476_02_c02_029-064.indd 35 3/3/16 11:32 AM
Character
Beliefs
Values
Attitudes
Conduct
Leads to
Section 2.2 The Role of Character in Leader Success
Beliefs
A belief is an idea that one holds with conviction and accepts as true or real. The core of a
person’s character resides within what a person believes. Beliefs influence one’s purpose in
life, how he or she lives, and what the person holds to be true or not true. People have beliefs
about how you should treat people, about how you should live your life, about religion, and
possibly even about leadership. In preparing to lead, it is important to examine your beliefs
because they will influence how you will act.
Values
Values constitute the stan-
dards, principles, ethics, and
moral code by which an indi-
vidual lives. Values are central
to character development. They
determine what one considers
right or wrong, acceptable and
not acceptable behavior, ethi-
cal and unethical, and what is
moral and what is not. A lead-
er’s values guide the principles
the person seeks to instill in
an organization (North ouse,
2013). Values have an impact
on the types of behaviors that a
leader permits and/or empha-
sizes; the type of climate or
work environment a leader
creates; and the emphasis a leader places on people and performance, how things get done,
and even use of language. When a reasonably close match exists between the values of lead-
ers and those they lead, employees are more likely to be satisfied and are less likely to leave
(Hogan, Hogan, & Roberts, 1996; Hughes, Ginnet, & Curphy, 2012).
Attitude
An attitude is the mental position an individual holds regarding a topic, person, or event that
influences the holder’s feelings, perceptions, learning processes, and subsequent behaviors
(Fishbein & Ajzen, 1975). It contains three elements: the cognitive, affective, and conative
components. The cognitive component reflects understanding and awareness. The affective
part represents the emotional aspect of an attitude. The conative element is what leads to
eventual behaviors regarding the attitude.
As a leader, some basic questions to answer might include the following: How does my atti-
tude about a given matter affect how I respond to various situations? How does it affect those
around me? In general, am I known for exhibiting a great attitude and demeanor, a good atti-
tude, a bad attitude, or a temperament that is good or bad depending on the circumstances or
how I feel at the moment?
Figure 2.2: Relationships among attitudes,
values, beliefs, and conduct
A person’s attitudes, values, and beliefs become evident in their
conduct.
Character
Beliefs
Values
Attitudes
Conduct
Leads to
war82476_02_c02_029-064.indd 36 3/3/16 11:32 AM
Section 2.2 The Role of Character in Leader Success
Our attitudes filter or alter the perspective through which we view things. They affect many
aspects of life, including those on the job. Leaders display attitudes toward numerous parts
of organizational life, including the treatment of subordinates; relationships with members
of the opposite sex; feelings regarding smoking, the use of alcohol, and various legal and ille-
gal drugs; manner of dress; methods of speaking to others (including the use of profanity);
emotions regarding persons of other religions and races; responses to persons in positions of
authority; and feelings about rule following and other basic company practices.
Conduct
The culmination of a person’s attitudes, values, and beliefs become evident in a person’s con-
duct (Baack, Fogliasso, & Harris, 2000). Outer behaviors are what others see and what gives
them insights about a leader’s character. In essence, actions speak louder than words. In the
final analysis, how a person acts is what defines the individual’s character in the eyes of oth-
ers. An individual who exhibits arrogance and defensiveness will quickly achieve a negative
image in the eyes of others, based on personal conduct and demeanor. Conversely, behaviors
that others notice on the job include a passion for excellence as exhibited by goal setting and
rewards given to others, selfless acts, counseling and helping subordinates, communicating,
and in the general treatment of others.
In summary, conduct is a choice. Conduct is what truly represents and reflects an individual’s
character and outward demeanor. A leader can choose to act in positive or negative ways.
We all have considerable room to grow and learn in conducting ourselves in a manner that
reflects a positive character and sets a good example for others. Character building is a life-
long process and part of the process includes admitting to and learning from mistakes.
Dr. Mimi Silbert and the Delancey Street Foundation:
Exemplifying Core Values
The relationship between personal character and leader
success should be readily apparent. Those who exhibit the
attitudes and behaviors that reflect solid values and carefully
considered beliefs appear more genuinely concerned about
others. This in turn bodes well for the efforts and outcomes a
leader’s team will achieve.
As an example of the role that character can play in leader
effectiveness, consider the Delancey Street Foundation. The
organization serves as a rehabilitation center for ex-felons,
drug addicts, alcoholics, and prostitutes. Those who enter
the Delancey Street program have experienced almost every
kind of tragedy imaginable. The average resident is the
product of four or five generations of poverty and two or three
generations with a history of incarcerations. These individuals
have typically been addicted to drugs or alcohol or both and
have been in prison four times. They are unskilled, functionally
illiterate with an average of a seventh-grade education, and
C. Flanigan/Getty Images
Leader of the Delancey
Street Foundation,
Mimi Silbert.
(continued)
war82476_02_c02_029-064.indd 37 3/3/16 11:32 AM
Section 2.3 Personal Characteristics and Actions
Dr. Mimi Silbert and the Delancey Street Foundation:
Exemplifying Core Values (continued)
have led a life of violence with little, if any, hope for the future. But the four-year program has
a high probability of mainstreaming the graduates as productive members of society and has
produced attorneys, businesspeople, technically trained people, construction workers, and
many others who go on to lead successful lives.
The Delancey Street Foundation was founded by John Maher, a former felon, who in 1971
invited Dr. Mimi Silbert to join him in creating a center for criminal rehabilitation and
vocational training. The center was to be for ex-cons and run by ex-cons with no staff or
government funding. Dr. Silbert, who has been the program’s leader since the death of John
Maher in 1988, has a master’s degree in psychology from the University of Massachusetts
and a PhD in criminology from UC Berkeley. Under her guidance, the program grew rapidly
and now has a broader outreach than only those with criminal records—it currently includes
homeless people and others who have hit rock bottom. It remains totally self-sustained
by businesses and the participants who tend to its daily operations. The organization has
expanded operations to Brewster, New York; Greensboro, North Carolina; and San Juan
Pueblo, New Mexico.
The motto of the Delancy Street Foundation is “Enter with a history, leave with a future.” Dr.
Silbert is very clear on her approach. She bases her program on the principles of owning
responsibility for your behavior; the mastery of life skills such as education skills, social
skills, and work skills; complete accountability; empowering everyone to learn, earn, and
lead; and simple but strict rules, such as no alcohol, drugs, or violence. The environment
resembles a large extended family and functions like one. The foundation treats each person
with love and respect, and all participants learn three marketable skills, earn a high school
equivalency, work to help support the foundation businesses, and help others learn and
succeed. There has never been an act of violence since it was founded. Clearly the character
of the leader, Mimi Silbert, explains a great deal of the success of this vital organization.
Self-Reflection Questions
1. Which beliefs and values that people hold are most strongly related to the business
world? Defend your answer.
2. If you hear someone described as having a “bad attitude,” which aspects of that
person’s attitudes, values, and beliefs do you think he or she is exhibiting?
3. Is it possible to value a concept or even hold something as a belief, yet fail to act
(conduct) on that value or belief ? If so, how might this happen?
2.3 Personal Characteristics and Actions
In preparing to lead, leaders should endeavor to know themselves. A clear understanding of
personal strengths and weaknesses makes it possible to build on the strengths while chang-
ing, managing, or finding ways to reduce, eliminate, or at least compensate for the weak-
nesses. This section is designed to help leaders have a better understanding of how people
become the ways they are and why they do what they do.
war82476_02_c02_029-064.indd 38 3/3/16 11:32 AM
Self
Genetics
(Nature)
Environment
(Nurture)
Personal Choices
Intelligence,
personality,
temperament
Physical
characteristics
Special
interests
or abilities
Role models,
friends, idols
Societal values,
training,
education
Experience,
circumstances
Unconstructive choices
that are harmful,
irresponsible, and
immature
Constructive choices
that are helpful,
responsible, and
mature
Belief, values, behaviors, habits
Section 2.3 Personal Characteristics and Actions
The primary forces help explain the nature of an individual’s personality: genetics (nature)
and environment (nurture). At first, a debate ensued as to whether one or the other was
the predominant source of personality formation. Some concluded that we are a product of
nature, which means that each person’s behavior is programmed through genetics. Others
believed that we are a product of nurture, which suggests that the environment shapes a
person’s activities and mental functioning. Most …
Part III Impacting People and Teams
CHAPTER 5 People Skills and Effective Communication
5.1 The Importance of People Skills
5.2 Developing People Skills
5.3 The Communication Process and Barriers to Effective Communication
5.4 Communicating Effectively
Chapter Summary
CHAPTER 6 Motivating Today’s Workforce
6.1 The Role of Motivation in Leadership Activities
6.2 Content Theories of Motivation
6.3 Process Theories
6.4 Reinforcement Theory
6.5 Other Motivation Theories
6.6 Integrating the Motivation Theories
Chapter Summary
CHAPTER 7 Teamwork and Group Skills
7.1 The Study of Groups and Teams
7.2 What Leaders Need to Know About Teams
7.3 A Systems Approach to Teamwork
7.4 Building High-Performance Teams
Chapter Summary
war82476_05_c05_133-170.indd 133 3/3/16 11:33 AM
war82476_05_c05_133-170.indd 134 3/3/16 11:33 AM
5 People Skills and Effective Communication
FogStock/Vico Images/Erik Palmer/Thinkstock
Learning Objectives
After reading this chapter, you should be able to:
• Recognize the relationships between people skills and effective leadership.
• Evaluate and develop interpersonal people skills.
• Understand the components of the communication process.
• Apply the keys to effective communication.
• Implement effective management communication systems.
war82476_05_c05_133-170.indd 135 3/3/16 11:33 AM
Section 5.1 The Importance of People Skills
Introduction
Effective leaders seem to rise to the top, no matter the organization. David Novak represents
a prime example. His career path includes stops as Chief Operating Officer (COO) at PepsiCo,
President of KFC, and his position as CEO of Yum! Brands, which includes KFC, Pizza Hut, and
Taco Bell. Novak, who stepped down at the close of 2014, had the responsibility of directing
1.5 million employees in more than 40,000 locations worldwide (Kruse, 2014).
Novak’s career provides a tribute to the effectiveness of quality interpersonal skills. He teaches
leadership courses each year and constantly refers to three key lessons. These instructions
begin with “Put people first.” “When you think about what you need to get done in your com-
pany, you know you can’t get it done by yourself,” Novak said. “There is no way you can get
something done without taking people with you.” He continues, “If you get your people capa-
bility right first . . . and continue to make it your first priority . . . I guarantee you the results
will follow” (Kruse, 2014, para. 3, 5).
The second lesson Novak teaches is “Constantly recognize achievers.” During his time at KFC,
Novak acknowledged the accomplishments of employees in an unusual fashion. When an
employee merited special attention, Novak gave the individual a signed, numbered rubber
chicken—along with a $100 on-the-spot bonus. Then he would take a picture with the “floppy
chicken” winner and put it in his office. Over time, the office walls and ceiling became covered
in photos. He noted, “People love to come to my office and I want them to see what this busi-
ness is all about. That’s people!” (Kruse, 2014, para. 9).
Finally, Novak suggests effective leaders are self-aware and constantly grow. One of his tactics
involved writing annual notes indicating what he believed to be a personal strength and also
an area that needs attention. In one note, his personal reminder was to be less intimidat-
ing when someone offered a new idea or suggestion. Another exercise in self-awareness was
titled “Hotshot Replacement Activity.” It involves imagining what would happen if your com-
pany recruited a “hotshot” to take over your job. Novak suggests visualizing what that person
(the “hotshot”) would do to make the company better. “Be that hotshot. Make it so nobody
could do your job better than you.” Kruse (2014) writes that Novak summarizes his lessons
by telling an audience that leadership is about moving “from Me to We.” And that “[l]ife is too
short to not make yourself the best possible leader you can be” (para. 11–12).
Clearly people/interpersonal skills play a key role in personal accomplishments as well as
the success of a company. This chapter examines the relationships between people skills and
effective communication. The goal is to assist you in developing your personal inventory of
leadership abilities.
5.1 The Importance of People Skills
It may seem self-evident to say that people skills constitute a key part of effective leadership.
Remember, however, that such skills take many forms. In his classic study, Henry Mintzberg
(1979) identified three primary roles played by top-level managers. Table 5.1 displays the
categories.
Table 5.1: Roles played by top-level managers
Interpersonal
Figurehead Attend ribbon-cutting ceremony
Leader Encourage employees to send in suggestions
Liaison Coordinate activities with outside organizations
Informational
Monitor Seek out information about competition and governmental policies
Disseminator Send out memos outlining major decisions
Spokesperson Hold press conference
Decision Making
Entrepreneur Develop idea for new product and convince others of its merits
Disturbance handler Resolve dispute among two departments
Resource allocator Budget
Negotiator Sign a labor contract
Source: Based on Mintzberg, Henry (1979). The structuring of organizations. Englewood Cliffs, NJ: Prentice-Hall.
war82476_05_c05_133-170.indd 136 3/3/16 11:33 AM
Section 5.1 The Importance of People Skills
Introduction
Effective leaders seem to rise to the top, no matter the organization. David Novak represents
a prime example. His career path includes stops as Chief Operating Officer (COO) at PepsiCo,
President of KFC, and his position as CEO of Yum! Brands, which includes KFC, Pizza Hut, and
Taco Bell. Novak, who stepped down at the close of 2014, had the responsibility of directing
1.5 million employees in more than 40,000 locations worldwide (Kruse, 2014).
Novak’s career provides a tribute to the effectiveness of quality interpersonal skills. He teaches
leadership courses each year and constantly refers to three key lessons. These instructions
begin with “Put people first.” “When you think about what you need to get done in your com-
pany, you know you can’t get it done by yourself,” Novak said. “There is no way you can get
something done without taking people with you.” He continues, “If you get your people capa-
bility right first . . . and continue to make it your first priority . . . I guarantee you the results
will follow” (Kruse, 2014, para. 3, 5).
The second lesson Novak teaches is “Constantly recognize achievers.” During his time at KFC,
Novak acknowledged the accomplishments of employees in an unusual fashion. When an
employee merited special attention, Novak gave the individual a signed, numbered rubber
chicken—along with a $100 on-the-spot bonus. Then he would take a picture with the “floppy
chicken” winner and put it in his office. Over time, the office walls and ceiling became covered
in photos. He noted, “People love to come to my office and I want them to see what this busi-
ness is all about. That’s people!” (Kruse, 2014, para. 9).
Finally, Novak suggests effective leaders are self-aware and constantly grow. One of his tactics
involved writing annual notes indicating what he believed to be a personal strength and also
an area that needs attention. In one note, his personal reminder was to be less intimidat-
ing when someone offered a new idea or suggestion. Another exercise in self-awareness was
titled “Hotshot Replacement Activity.” It involves imagining what would happen if your com-
pany recruited a “hotshot” to take over your job. Novak suggests visualizing what that person
(the “hotshot”) would do to make the company better. “Be that hotshot. Make it so nobody
could do your job better than you.” Kruse (2014) writes that Novak summarizes his lessons
by telling an audience that leadership is about moving “from Me to We.” And that “[l]ife is too
short to not make yourself the best possible leader you can be” (para. 11–12).
Clearly people/interpersonal skills play a key role in personal accomplishments as well as
the success of a company. This chapter examines the relationships between people skills and
effective communication. The goal is to assist you in developing your personal inventory of
leadership abilities.
5.1 The Importance of People Skills
It may seem self-evident to say that people skills constitute a key part of effective leadership.
Remember, however, that such skills take many forms. In his classic study, Henry Mintzberg
(1979) identified three primary roles played by top-level managers. Table 5.1 displays the
categories.
Table 5.1: Roles played by top-level managers
Interpersonal
Figurehead Attend ribbon-cutting ceremony
Leader Encourage employees to send in suggestions
Liaison Coordinate activities with outside organizations
Informational
Monitor Seek out information about competition and governmental policies
Disseminator Send out memos outlining major decisions
Spokesperson Hold press conference
Decision Making
Entrepreneur Develop idea for new product and convince others of its merits
Disturbance handler Resolve dispute among two departments
Resource allocator Budget
Negotiator Sign a labor contract
Source: Based on Mintzberg, Henry (1979). The structuring of organizations. Englewood Cliffs, NJ: Prentice-Hall.
People skills are a part of all three categories. Most of what leaders do involves such abilities.
The interpersonal skills cited by Mintzberg involve providing vision, direction, and inspira-
tion while being engaged in planning, organizing, directing, staffing, and controlling organi-
zational activities through the deployment and utilization of people.
Notice that the second category in Table 5.1, the informational roles, emphasizes the utiliza-
tion of quality communication skills. Working with boards, clients, investors, and other key
stakeholders assists the leader in collecting information and disseminating it to the proper
places in the organization. In other words, it requires people skills. Further, motivating,
coaching, and developing people while resolving conflicts with some individuals and nego-
tiating with others also demands what can be called “people skills.” The second half of this
chapter concentrates on the vital role communication (informational) skills play in personal
and organizational outcomes.
To further emphasize the importance of interpersonal or people skills, consider the following
ideas. First, an individual’s level of career success may be determined in part by his or her
interpersonal skills. Unfortunately, many leaders lack this talent. Assessment data collected
on thousands of leaders worldwide indicates that most leaders did not possess the funda-
mental interpersonal skills and behaviors required to be effective leaders (Frasch, 2013).
We can characterize many people skills as “humane” leadership. An article that appeared in
Fast Company reported that many boards of directors increasingly look for CEOs with superb
people skills in dealing with employees and stakeholders. The article also reported a study
that concluded that leaders who inspire respect, loyalty, and affection achieved financial
results of almost seven times the S&P 500 average over a 10-year period (Tischler, 2005).
Further, developing quality relationships tends to bring out the best in people. Several research
efforts, and particularly ones conducted by Harvard University, point to the significant impact
war82476_05_c05_133-170.indd 137 3/3/16 11:33 AM
Benefits of a
Civil Workplace
Improved
organization
performance
and profits
Improved
employee
productivity,
morale,
engagement,
satisfaction,
and loyalty
Fewer
time-consuming
and expensive
personnel problems
and EEO complaints
Lower
turnover
Lower healthcare
costs and stress
related problems
Improved
customer
satisfaction
Section 5.1 The Importance of People Skills
quality relationships have on people (Hallowell, 2002; Gilbert, 2006; Diener & Biswas-Diener,
2008; Heaphy & Dutton, 2003; Ryff & Singer, 2001). Quality relationships increase the probabil-
ity of personal health, success, happiness, longevity, and motivation, and a lack of quality rela-
tionships increases the probability of social, emotional, psychological, and physical problems.
Such a finding should get the attention of those in leadership regarding the influence they are
having on people and on creating a people-friendly or non-people-friendly work environment.
One could make a case that a strong relationship exists between emotional intelligence and
interpersonal/people skills. Further, leaders who exhibit higher levels of emotional intelli-
gence tend to be far more effective than others because it causes them to focus on interper-
sonal awareness, one form of interpersonal/people skills. This in turn often predicts leader
success (Goleman, 1995, 2000).
Leaders who exhibit a strong interest in interpersonal relationships tend to foster more people-
oriented organizations. In those positive working environments, employees are likely to perform
above the norm. Many studies reveal a linkage between people-oriented work environments and
the ways individuals and organizations perform (Bagozzi, 2003: Dutton, 2003; Fredrickson,
2003; Dutton & Ragins, 2007). Further, a field of study called “civility in the workplace” has pro-
duced research regarding the advantages of being a people-friendly organization. Civility means
treating people with value and respect and having a positive social environment. In Figure 5.1
you can see some typical payoffs of having a people-oriented organization that creates a civil
working environment (Karasek & Theorell, 1990; Pfeffer, 1998; Meterko & Mohr, 2005).
Figure 5.1: Civility in the workplace
There are many benefits of a civil workplace.
Benefits of a
Civil Workplace
Improved
organization
performance
and profits
Improved
employee
productivity,
morale,
engagement,
satisfaction,
and loyalty
Fewer
time-consuming
and expensive
personnel problems
and EEO complaints
Lower
turnover
Lower healthcare
costs and stress
related problems
Improved
customer
satisfaction
war82476_05_c05_133-170.indd 138 3/3/16 11:33 AM
Decrease in
employee
psychological
well-being,
morale,
engagement,
and satisfaction.
Increase in job
withdrawal, work
exhaustion, counter-
productive behaviors,
supervisor problems,
and turnover.
Problems Associated
with Incivility in
the Workplace
Increase in taking
out frustration on
colleagues and
customers
Decreased
organization
performance,
profits, and
reputation
Decrease in
employee productivity,
quality of work, time
spent at work, and
commitment to
the organization
Increase in job
related stress,
sick leave taken,
and healthcare
costs
Section 5.1 The Importance of People Skills
Incivility is the extent to which employees experience disrespectful, rude, or condescending
behavior from supervisors or coworkers. A study reported in the Harvard Business Review
concluded that managers at Fortune 1000 firms spend the equivalent of 7 weeks a year deal-
ing with the aftermath of incivility issues (Porath & Pearson, 2013). Figure 5.2 presents some
of the costs associated with incivility in the workplace (Cortina, Magley Hunter, & Langout,
2001; Pearson & Porath, 2005; Gonthier, 2002).
Figure 5.2: Incivility in the workplace
There are many problems associated with incivility in the workplace.
Decrease in
employee
psychological
well-being,
morale,
engagement,
and satisfaction.
Increase in job
withdrawal, work
exhaustion, counter-
productive behaviors,
supervisor problems,
and turnover.
Problems Associated
with Incivility in
the Workplace
Increase in taking
out frustration on
colleagues and
customers
Decreased
organization
performance,
profits, and
reputation
Decrease in
employee productivity,
quality of work, time
spent at work, and
commitment to
the organization
Increase in job
related stress,
sick leave taken,
and healthcare
costs
Consequently, it seems apparent that people skills are important to being an effective leader
both in terms of how the person acts and the type of organization that the individual builds.
A leader without such a talent or orientation likely will discourage others from giving him or
her helpful feedback that could result in needed personal or organizational changes. There-
fore, leaders should recognize the value of having a people-oriented style and organizations
should be encouraged to champion opportunities to educate and develop leaders with good
people skills. The challenge is getting the attention of leaders who need to improve their
interpersonal skills and build more people-oriented organizations. Then, communicating this
information to leaders, potential leaders, and others constitutes a vital part of creating an
effective leadership system. Or, as management guru Tom Peters once said, “Leaders don’t
create more followers, they create more leaders.”
war82476_05_c05_133-170.indd 139 3/3/16 11:33 AM
Section 5.2 Developing People Skills
5.2 Developing People Skills
Opportunities for evaluating and improving interpersonal/people skills are not difficult to
find. Even those who have exceptionally well-developed abilities may continue to practice
and maintain the skills they have and to continue to develop new ones. Keep in mind the fol-
lowing ways that you might develop or improve many of these skills: (1) recognizing the need
or opportunity for development; (2) committing to developing the skill and planning how you
can develop the skill; and (3) practicing the skill until it becomes a habit. Through concen-
trated practice, you can develop many skills more quickly than you might think—often in a
little as 3 to 4 weeks. Every leader should seek to improve his or her people skills.
In this section, we present two key activities you can use to improve your people skills and
that you can also use to create a greater awareness of the interpersonal dynamics taking
place: increasing personal commitment and concern for others combined with using an effec-
tive problem-solving style.
Commitment and Concern for Others
People who hold a genuine concern for others demonstrate it by treating people with a high
level of respect and value, showing a sincere interest in them, looking out for their best inter-
ests, and being willing to make sacrifices for others. Genuine concern or love for others is more
than a feeling. It is action that demonstrates our concern and love. Stephen Covey (1989) has
noted that in all great literature, love is a verb and not a noun. Valued people almost always
give their best.
Commitment and concern for others requires a leader to be reasonably selfless and humble.
This frees the individual to focus on others rather than be preoccupied with his or her own
needs. It also makes the leader more approachable and easier to interact with. Arrogant, ego-
tistical, and prideful people who are consumed with themselves, with drawing attention to
themselves, and with doing things their way on their terms will have difficulty demonstrating
a genuine concern for others. In contrast, commitment and concern for others includes two
elements: (1) treating people with respect and (2) valuing rather than devaluing followers
and others.
Self-Reflection Questions
1. Can you provide specific tangible examples of a leader playing the interpersonal,
informational, and decision-making roles outlined in Table 5.1? How would the
activities of socializing with employees (“managing by wandering around”) and
interacting with public officials and leaders of other companies at cocktail parties or
on the golf course demonstrate these roles?
2. How would you distinguish between the concept of a leader being “tough” or “blunt”
or “no-nonsense” with the concepts regarding civility and incivility presented in this
section? Explain your answer.
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Section 5.2 Developing People Skills
Treating People With Respect
Treating people with respect is at the heart of all people skills. In many ways, this skill covers
all others. It is such a universally understood talent and principle that many organizations
have adopted it as a core value. Some express it as “treating people with respect,” others as
“treat people the way you want to be treated,” and others as “do unto others as you would
have them do unto you.”
What is interesting about treating people with respect is that with rare exception almost
everyone believes in this principle and most probably assume they practice it. And yet we wit-
ness or experience disrespect of some kind almost every day. The challenge is to define what
we mean by treating people with respect before we can claim that we practice it. You need
to decide if a commitment to treating people with respect is conditional or unconditional.
Conditional respect means that a person treats people with respect as long as they treat him
or her that way. Unconditional respect means that an individual does his or her best to treat
people with respect even when they are not being treated in the same way.
One of the best ways to identify what we mean by treating people with respect is to develop a
list of words and phrases that describe respect and disrespect. As an example, Table 5.2 dis-
plays a list of both sets of terms derived from a search of books, articles, and Google regarding
what it means to treat people with respect. Considering both respect and disrespect adds a
new perspective. We may think of ourselves as being more respectful than we truly are based
on the disrespectful things we do.
Table 5.2: Respect and disrespect
Words and Phrases That Describe Treating
People With Respect
Words and Phrases That Describe Treating
People With Disrespect
Treating others the way you want to be treated Treating others in ways you would not want to be
treated
Showing a genuine interest in others Being self-consumed and showing little interest in
others
Making people feel valued Ignoring people or making them feel devalued
Being considerate, thoughtful, and kind Being inconsiderate, thoughtless, and unkind
Being diplomatic, polite, courteous, and tactful Disregarding how things are said or done
Speaking in ways that are helpful Speaking in ways that are harmful or inflammatory
Being genuine, straightforward, and truthful Being artificial, misleading, and a game-player
Encouraging open, two-way communication Doing things that discourage open, two-way
communication
Actively listening to what others have to say Dominating conversations, interrupting, talking
over people, not listening to others
Attacking problems and not people Making people feel attacked
Valuing and seeking the ideas of others Showing little interest in the ideas of others
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Section 5.2 Developing People Skills
In essence, Table 5.2 displays ideas you can both evaluate and develop. How often do you fall
into the trap of reverting to the behaviors and words shown as examples of disrespect? How
frequently do you display the actions associated with showing respect for others? Simple
ways to improve your level of respect shown to others begin with constantly thinking about
the term “civility.” Being civil to others indicates a respect, even in the face of disagreement
or conflict. Further, eliminating the uncivil behaviors shown in the figure indicates the desire
to avoid negative actions that make you seem “smaller” due to the manner in which you treat
others. Combining these two elements can lead to the quick development of highly visible and
valuable interpersonal skills.
Maximizing Valuing and Minimizing Devaluing
Like treating people with respect, the concept of maximizing valuing and minimizing devalu-
ing is easy to remember and use in developing people skills. Valuing is the process of main-
taining or enhancing the value of another person. When people feel valued, it increases the
probability of quality communication, improved problem solving, cooperation, and rapport
with others. Devaluing is the process of lowering the value of another person. Devaluing
decreases the probability of success in the same areas.
Table 5.3 outlines typical devaluing behaviors and their potential consequences. It points
out that there are natural consequences to devaluing people. Leaders who unintentionally or
intentionally devalue people and their ideas and behaviors without considering the potential
consequences of their approach may experience several negative consequences. They may be
able to make points, win arguments, get their demeaning comments in, and show power over
others, but in doing so they may cause breakdowns in communication and trust while damag-
ing the motivational levels and morale of their followers.
Devaluing basically creates a lose/lose situation. The person engaged in devaluing loses
because it lowers the probability that he or she will succeed. The leader will also have to
deal with the negative aftermath of those actions. The recipients lose because of the personal
damage to them and their relationships with the leader. Most of the studies cited earlier in
the chapter regarding the favorable effects of positive behavior and valuing on performance,
morale, and relationships, as well as improving psychological, emotional, and physical health,
also report the unfavorable effects of negative behavior and devaluing.
One study that parallels the effects of valuing and devaluing describes people as positive ener-
gizers or negative energizers (Baker, Cross, & Parker, 2003). Positive energizers are people
who are optimistic, sensitive to the needs of others, trustworthy, unselfish, and uplifting to be
around. They energize and motivate those who interact with them and enhance good rela-
tionships. Negative energizers tend to be critical, self-focused, negative, pessimistic, insensi-
tive to the needs of others, and untrustworthy. They deplete good feelings and enthusiasm,
sap the strength of people, and leave others feeling exhausted and devalued.
Table 5.3: Devaluing
Devaluing Behaviors Typical Responses
Judging, condemning, advising, instructing, or mor-
alizing from a critical position
Triggers almost all of the inappropriate responses
described below and may get a critical response in
return
Attacking people rather than problems Provokes anger, resentment, resistance, rebellion,
and stubbornness
Being autocratic or intimidating Gets temporary results and may encourage defen-
siveness and retaliation
Blaming, scapegoating, and belittling Encourages lying, rationalizing, and distortion of the
truth
Using killer glances (put-down looks) Produces guilt and rage
Assuming motives (attributing motives to the acts of
another person)
Stimulates feelings of helplessness and frustration
Explaining away the feelings or ideas of others Results in the suppression of ideas or feelings
Using value-loaded (emotionally charged) words of
sarcasm
Increases the likelihood of overreactions or
misinterpretations
Making absolute or exaggerated statements Undermines credibility and often results in people
tuning you out
Overreacting to the words or actions of another
person
Blows things out of proportion
Sending double messages (verbal and nonverbal
messages are different)
Reduces the interaction to confusion, mindreading,
and misinterpretations
Indifference Destroys self-confidence and frustrates needs for
acceptance
Not listening Devalues self-worth and increases frustration
Nagging Creates resistance and hostility
Sidetracking Inhibits problem solving
Shotgunning (continuously putting down ideas) Blocks creativity and openness
Negativism Undermines morale
Interrogating Implies lack of trust and presumes guilt
Stereotyping Often results in inaccurate perceptions
Labeling Causes resentment and may produce self-fulfilling
prophecies
Interrupting Results in frustration and clamming up
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Section 5.2 Developing People Skills
In essence, Table 5.2 displays ideas you can both evaluate and develop. How often do you fall
into the trap of reverting to the behaviors and words shown as examples of disrespect? How
frequently do you display the actions associated with showing respect for others? Simple
ways to improve your level of respect shown to others begin with constantly thinking about
the term “civility.” Being civil to others indicates a respect, even in the face of disagreement
or conflict. Further, eliminating the uncivil behaviors shown in the figure indicates the desire
to avoid negative actions that make you seem “smaller” due to the manner in which you treat
others. Combining these two elements can lead to the quick development of highly visible and
valuable interpersonal skills.
Maximizing Valuing and Minimizing Devaluing
Like treating people with …
Part IV Bringing Out the Best in
Organizations and Yourself
CHAPTER 8 Organizational Skills
8.1 Leadership and Organizational Culture
8.2 Leading an Effective Organizational Communication System
8.3 Ethics and Social Responsibility
8.4 Leadership and Organizational Politics
Chapter Summary
CHAPTER 9 Leading Change
9.1 The Nature of Organizational Change
9.2 Models of Change Processes
9.3 Leadership and the Management of Change
9.4 Additional Challenges
Chapter Summary
CHAPTER 10 Balancing Life as a Leader
10.1 Stress Management
10.2 Time Management
10.3 Work-Life Balance
10.4 Committing to Being a High-Impact Leader and Making a Difference
Chapter Summary
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8 Organizational Skills
Monkeybusinessimages/iStock/Thinkstock
Learning Objectives
After reading this chapter, you should be able to:
• Integrate leadership activities with organizational effectiveness criteria.
• Recognize the role of organizational culture in achieving success.
• Analyze organizational communication systems and learn how to lead them.
• Understand ethical and socially responsible activities.
• Adjust to and manage organizational politics as needed.
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Section 8.1 Leadership and Organizational Culture
Introduction
Seth Goldman could be described as a “thirsty” man. As a college student, he became frus-
trated with the products available on the market to quench a person’s thirst. Some had too
much sugar, some had too much water, and others had weak flavors. He shared his disillusion
with his professor at the Yale School of Management, Barry Natebuff, in a class discussion
about major soft drink products in 1988.
In 1997, Goldman was playing with different beverage combinations when he became deter-
mined to create a new product ideal for rehydrating and quenching thirst. He reconnected
with Natebuff, who had recently traveled to India and discovered that many bottled tea prod-
ucts were brewed from the dust and fannings left over from whole tea leaves that had been
designated for other uses. The two joined forces and started brewing Honest Tea from whole
leaves.
After a successful start-up sale to Fresh Fields (Whole Foods Market), the company was
launched. A strong, ethically driven culture has always been at the forefront of the firm’s oper-
ation. The mission statement states: “Honest Tea seeks to create and promote great-tasting,
healthier, organic beverages. We strive to grow our business with the same honesty and integ-
rity we use to craft our products, with sustainability and great taste for all.”
The mission represents more than words. The firm has been well known for seeking out sup-
pliers of flavors and other items from impoverished areas, thereby helping low-income farm-
ers, even in remote locations, build thriving businesses. Since being bought by Coca-Cola in
2011, the company has expanded its distribution to more than 100,000 stores across the
United States. The growth allows Honest Tea to make a greater impact in line with the com-
pany’s mission. The beverages are organic, fair trade certified, and the containers are made
with environmentally friendly materials. Tea leaves that have been brewed go back into the
soil to help compost the next generation of products.
Every aspect of Honest Tea’s operations reflects Goldman’s and Natebuff ’s “thirst” for a
socially conscious business that exhibits great success over many years. Such great leadership
began as a simple conversation and eventually evolved into a thriving enterprise.
8.1 Leadership and Organizational Culture
In preparing organizations to succeed, leaders need to be keenly aware of the significant
influence culture can have on the success or failure of organizations. They also need to know
how to build, sustain, and change organizational cultures.
Little had been written about organizational culture until the 1980s when organizational
scholars began to research the important role culture plays in the success of organizations
and the strong link between culture and performance (Deal & Kennedy, 1982; Schein, 1985;
Gordon & DiTomaso, 1992; Marcoulides & Heck, 1993; Kee, 2003). Researchers have offered
many definitions trying to capture the essence of culture. We may define culture as the pre-
dominant beliefs, values, attitudes, behaviors, and practices that are characteristic of a group
of people. Schein used the word “group” in defining culture as a reference to social units of
war82476_08_c08_243-284.indd 246 3/3/16 1:16 PM
Visible
1. Artifacts: dress,
ceremonies, office
design, slogans.
Invisible
2. Expressed values:
“We value customer feedback,”
“Quality is our number 1 concern.”
3. Underlying assumptions and deep beliefs:
“We will earn your respect.”
Culture that can
be seen at the
surface level
Deeper values
and shared
understandings
held by organization
members
Section 8.1 Leadership and Organizational Culture
all types and sizes (1992). In other words, a group could include a country, private or public
sector organization, a team, a family, or any group of people that develops norms or standards
that become characteristic of the group.
A second definition of culture is that it refers to a system of shared meaning held by members
of an organization that distinguishes it from other organizations (Schein, 1996). This section
identifies some of the key concepts associated with culture, especially as they apply to the
nature of effective organizational leadership.
Visible and Invisible Factors
Figure 8.1 portrays culture on three levels. First, we can observe culture on a visible level
through artifacts such as dress, office layout, office design, and slogans. Artifacts could also
include how leaders lead, the type of work environment an organization has, how people are
treated, how decisions are made, and how things get done.
On a deeper level, we can understand invisible culture by the expressed values that help shape
the visible artifacts. For example, an expressed value may be that it is important to take great
care of our people and our customers. This will result in behaviors that create a different cul-
ture than in an organization where an expressed value is that our number one priority is to
maximize the bottom line. At a still deeper level are strong beliefs and assumptions that are
so much a part of the culture that they are taken for granted and not questioned. An example
would be that doing what is right is important no matter what the cost.
Figure 8.1: Levels of culture
From Daft, R.L. The Leadership Experience (4th ed.). © 2008 South-Western, a part of Cengage Learning, Inc. Based on Organizational
Culture and Leadership (2nd ed. pp.3-27) by Edgar Schein, 1992. San Francisco, CA: Jossey-Bass.
Visible
1. Artifacts: dress,
ceremonies, office
design, slogans.
Invisible
2. Expressed values:
“We value customer feedback,”
“Quality is our number 1 concern.”
3. Underlying assumptions and deep beliefs:
“We will earn your respect.”
Culture that can
be seen at the
surface level
Deeper values
and shared
understandings
held by organization
members
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Section 8.1 Leadership and Organizational Culture
The Roles Culture Plays
Leaders would probably pay more attention to culture if they better understood the impact
culture can have and the many roles it plays in the success or failure of organizations of all
types and sizes. Culture can have a significant influence on the performance, morale, and atti-
tudes of people and on how things get done. It can be a positive or negative influence, can
bring out the best or worst in people, and can make an organization a great place to work or
a dysfunctional place to work. It can create a sense of identity in terms of the reputation of an
organization and what it stands for. Culture also helps employees make sense of the behaviors
and practices that are acceptable or unacceptable. It also can play a strong role in attracting
and retaining talented employees.
Dominant Cultures and Subcultures
Another consideration in understanding culture is to recognize that in an organization there
is likely to be a dominant culture and one or more subcultures (Martin & Meyerson, 1988).
The dominant culture is the most pervasive in the organization. It expresses the core val-
ues of the majority of members. Some have called it the “personality” of an organization. As
an example, the dominant culture at Southwest Airlines encourages employees to cooperate
with one another and customers, as well as to have fun while doing so.
Subcultures evolve to express the problems, frustrations, or unique experiences of certain
members within the larger, dominant culture. For example, a subculture may develop in the
quality control area, as members find they are often put in the position of rejecting the out-
put of other members, and as a result, are viewed as “different” and at times antagonistically.
Leaders are advised to make sure that subcultures do not become viewed as so separate and
distinct that they cannot function as part of the larger unit.
Strong Versus Weak Cultures
The term strong culture describes those cultures in which the core values are intensely held
and widely shared (Weiner, 1988). As a result, they have a significant influence on the behav-
iors and practices of employees. Strong cultures are often built by strong leaders. Examples
of companies with strong cultures include IBM, Southwest Airlines, Honest Tea, and Edward
Jones, to name a few. In strong cultures, members understand the cultural values and norms,
and there is a commitment by the leaders to maintaining the culture. Strong cultures are gen-
erally associated with high performance (Jin, Drozdenko, & DeLoughy, 2013). The exception
is when the culture is strong but unhealthy.
The term weak culture describes those cultures in which the norms and practices are confus-
ing and inconsistent. Weak cultures are difficult to work in because expectations are unclear
and there is little consistency throughout the organization. As you might expected, weak cul-
tures typically result in low performance (Mushtaq, Ahmad, & Tanveer, 2012). In addition to
the strength of the culture, leaders need to be observant of the types of behaviors and atti-
tudes a culture is driving and whether they are desirable or undesirable. In essence, leaders
need to know how strong a culture is and the types of behaviors it is influencing.
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Section 8.1 Leadership and Organizational Culture
Characteristics of High- and Low-Performance Cultures
Much of the interest in culture has come from the extensive research on the link between
culture and performance. John Kotter and James Heskett conducted one of the classic studies
on culture. These researchers studied companies over an 11-year period and found that the
companies that exhibited healthy cultures had increases in sales of an average of 682% ver-
sus 166% for comparable companies, and they had stock increases of 901% versus 74% for
comparable companies (Kotter & Heskett, 1992). Other studies indicate that strong, healthy
cultures can have a significant influence on productivity, job satisfaction, morale, attitudes,
quality, customer satisfaction, innovation, turnover and absenteeism rates, commitment to
the organization, and efforts to attract and retain talented workers (Denison, 1997; Rollins &
Roberts, 1998; Weiner, 1988; Ehrhart, Schneider, & Macey, 2014; Cameron & Quinn, 2011).
One of the most revealing ways to view culture is to consider the degree to which a culture is
a high- or low-performance culture. While all cultures exhibit differences, there are consis-
tent patterns of high- and low-performance cultures. Table 8.1 summarizes research findings
on typical characteristics of high- and low-performance cultures (Rosenthal & Masarech,
2003; Kilmann, Saxton, & Serpa, 1985; Rollins & Roberts, 1988; Lussier & Achua, 2016; Weiss,
2011; Daft, 2015; Fisher, 2000).
Table 8.1: Characteristics of high-performance and low-performance cultures
High-Performance Culture Low-Performance Culture
Leaders emphasize both cultural values and per-
formance and build strongly people-oriented and
results-oriented organizations
Leaders provide minimal leadership and emphasize
performance or people but not both
Clear and compelling vision, mission, and goals Vision, mission, and goals are unclear, not compelling,
not used, or do not exist
Core values that drive the culture and are used in
decision making
Core values are unclear, not compelling, not used, or
do not exist
Committed to excellence, ethics, and doing things
right
Lack of commitment to excellence, questionable
ethics, and a reputation for doing what is expedient
rather than what is right
Clear roles, responsibilities, and success criteria,
and strong commitment to engaging, empower-
ing, and developing people
Unclear roles and responsibilities and little interest
in fully utilizing and developing the capabilities and
potential of people
Positive, can-do work environment Negative, tense, stressful, resistant work environment
Open, candid, straightforward, and free-flowing
communication
Guarded communication, reluctance to be open and
straightforward, and consequences for saying things
leaders don’t want to hear
Teamwork, collaboration, and involvement are
the norm
Top-down decision making with minimal teamwork,
collaboration, and involvement
Emphasis on constant improvement and state-of-
the-art knowledge and practices
Slow to make needed improvements and behind the
times in knowledge and practices
Willingness to change, adapt, learn from suc-
cesses and mistakes, take reasonable risk, and try
new things
Poorly planned change, resistance to change, minimal
learning from successes and mistakes, and either risk
averse or risk foolish
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Section 8.1 Leadership and Organizational Culture
Cultural Vulnerability
Cultures are like a precious and prized treasure when they are strong and healthy and driving
the right behaviors. They are among the greatest assets an organization can have. However,
they are vulnerable assets that can be damaged or lost if leaders are not aware of their value
and are not keeping close watch over possible culture-changing practices, attitudes, threats,
or events. Leaders need to be aware that many things can impact culture and need to be dealt
with and managed to hopefully avoid cultural damage. For example, budget cuts, rapid mar-
ket changes, economic downturns, natural disasters, and changes in ownership or leadership
could change cultures. In potential culture-changing situations, leaders should be involved
and engage the appropriate people in finding ways to sustain the culture or possibly even use
challenging situations to strengthen the culture.
Bill Marriott: People-Based Culture
The Marriott hotel chain is a major success in U.S.
business. Its founder and CEO, Bill Marriott, has always
understood the value of a strong organizational culture
based on people (Forbes, 2014). As he once noted,
It’s always been the major belief of our company,
take good care of your people, they’ll take good
care of the customer and the customer will come
back. And we celebrate them. We train them. We
teach them. We provide opportunity for them.
Fifty percent of our general managers have
come out of the hourly ranks and we continue to
promote. We’re at almost 4,000 hotels around the
world and the majority of our senior people in
the company and in the hotels themselves have
had a lot of opportunity to work with people and
work very hard to develop a relationship with
our people, because we know they make the
difference, particularly in the hospitality business. (Forbes, 2014, para. 8–9)
We’re not like an assembly line in a factory. People are out there meeting
the guests, checking them in, checking them out, waiting on them in the
restaurants, cleaning their rooms, so they have millions of interactions every
day with our guests. . . . We have detailed procedures for checking guests in
and checking guests out. But at the same time we want our people to know
that they’ve got latitude (Marriott, quoted in Forbes, 2014, para. 10, 14).
The emphasis on quality relationships with employees extends to Marriott. Over the years he
regularly tours as many sites as possible, stopping to greet individual employees along the
way. In some company circles he has nearly taken on the status of “rock star.” The enduring
culture of Marriott should continue years after Bill Marriott’s tenure.
Gustavo Caballero/Getty Images
Bill Marriott is known for his
emphasis on relationships and
spends a lot of time meeting
employees around the world.
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Section 8.1 Leadership and Organizational Culture
The Role of Leadership: Building, Sustaining, or Changing a Culture
When studying culture, it is also important to recognize that leaders are the primary shapers
of culture (Steers & Shim, 2013). Leaders are the major influence on the purpose, strategies,
practices, and values of a whole organization or group of any size. Tony Hsieh is the well-
known architect of the Zappos culture (Warrick, Milliman, & Ferguson, 2015). Jeff Immelt was
able to turn around the culture of IBM (Pyke, 2005). Tim Cook has been able to improve an
already strong culture at Apple (Tyrangiel, 2012). When Alan Mulally became the CEO of the
struggling Ford Motor Company, he was able to change the culture and performance of Ford
for the better in a short amount of time (Hoffman, 2012). On the other hand, an ineffective
new leader who is not a good fit for an existing culture can quickly tear down one that took
decades to build.
Leaders play key roles in building, sustaining, and changing culture. If they do not undertake
this task in a purposeful, proactive way, it will happen by default and may result in unwanted
consequences. CEOs such as Bill Gates of Microsoft, Herb Kelleher of Southwest Airlines, and
Jeff Bezos of Amazon.com, are all known for their emphasis on the importance of culture.
Leaders who do not understand or who neglect culture may do so at a high cost. It has been
estimated that 60% of all mergers fail to achieve their anticipated goals or fail altogether
because of cultural differences that were not dealt with (Hellriegel & Slocum, 2011). Leaders
can engage in many activities designed to build, sustain, and change cultures. This section
identifies some of the most important.
Make Culture a High Priority
Leaders who understand the value of culture make culture an important consideration in
developing the vision, mission, core values, goals, and strategies for an organization. When all
of these factors are clear and compelling and aligned with expressed cultural ideals or core
values that define the desired culture, and considering culture in the decision-making pro-
cess becomes the norm, culture begins to develop in a purposeful way. Employees respond to
what leaders think is important and value. Walt Disney was a master at making culture a high
priority. The wholesome family values that he espoused and even the job titles that he used,
like calling engineers “imagineers,” impact the Disney culture to this day. In making decisions,
it is not uncommon for leaders at Disney to ask, “What would Walt think?” (Dumaine, 1990).
Role Model Desired Behaviors
The example of leaders is one of the strongest shapers of culture. How leaders behave and
get things done, the actions that they take, and the values and beliefs that they hold set the
example for others to follow and the patterns for the cultural norms (Gehman, Trevino, &
Garud, 2013). For leaders to role model the desired behaviors, walk and talk must be consis-
tent (Kottke & Pelletier, 2013). A leader who emphasizes good stewardship while taking an
exorbitant salary will have little credibility. Conversely, a leader who includes stakeholders
in developing a reasonable compensation package will engender respect and credibility with
regard to expressing core cultural values and norms.
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Section 8.1 Leadership and Organizational Culture
Recruit and Develop for Culture
Recruiting and training for culture at all levels of an organization is essential to sustaining
the desired culture. Culture fit should be as important as hiring for skills or experience. This
is especially true in regards to recruiting top-level leaders. To hire for culture requires well-
designed recruiting, selection, orientation programs, and training and development opportu-
nities that train new and current employees on the desired cultural behaviors and practices.
Value, Recognize, and Reward Desired Behaviors and Practices
Another way to build culture is to value, recognize, and reward behaviors that support the
culture. Leaders can make all kinds of statements about the type of culture they desire, but
ultimately, employees will respond to the behaviors that they see being valued, recognized,
and rewarded. This requires leaders to be aware of the behaviors they are actually reinforcing.
Use Symbols, Ceremonies, Socialization, and Stories to Reinforce Culture
Symbols, rites, ceremonies, socialization, and stories communicate culture to organizational
members. Leaders should look for opportunities to reinforce the desired core cultural values.
Symbols can be actions, objects, or events that communicate meaning. For example, a com-
pany asked a new CEO to choose the vehicle that he wanted to drive. Knowing that the other
executives all drove luxury cars, he chose a midsize Chevrolet. Although he never said a word
about why he chose a much more modest car, this action sent a strong message about desiring
a culture where leaders were good stewards and did not try to set themselves apart from the
rest of the employees.
Ceremonies are planned activities that are meaningful to employees. Award and promotion
ceremonies and celebrations for achieving goals are examples. Ceremonies reinforce specific
behaviors and values. Mary Kay Cosmetics Company holds elaborate awards ceremonies
where different levels of performance are rewarded with gifts ranging from gold and dia-
mond pins to pink Cadillacs.
Socialization can become another important part of building culture. Socialization includes
integrating people into the culture by making clear the kinds of behaviors and attitudes that
will help them succeed and providing opportunities for people to socialize and bond and
become more cohesive (Feldman, 1981). The more that people interact and get to know one
another, the more likely that the cultural values will be shared and strengthened.
Stories are narratives that reinforce the cultural values. One widely told story about a Nord-
strom associate states that he listened to a customer complain about the performance of his
automobile tires and gave him a refund on the tires. Nordstrom does not sell tires! The story
reinforces the company’s zeal for customer service and a no-questions-asked return policy
(Kanir, 2013), even though management would not want such a behavior to become standard
practice.
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Section 8.1 Leadership and Organizational Culture
Communicate
Communication offers one of the most effective venues for leaders to reinforce cultural com-
munication. Leaders communicate both verbally and technologically with employees in many
ways that support the cultural values. They send out general memos commending people or
teams for accomplishments that are consistent with the cultural values. They also circulate
articles, show videos, bring in speakers, or emphasize principles that are supportive of the
cultural values. Keeping people well informed and setting the precedence in meetings for
open, straightforward, and candid communication establishes cultural norms for the organi-
zation. We go into detail about organizational communication in the following section.
Monitor Culture and Manage Cultural Change
Given the importance of culture in influencing performance and morale and many other fac-
tors, it would be wise for a leader to assess culture at least on an annual basis. A leader needs
to know whether the culture is moving in the right or wrong direction and if potentially influ-
ential events are affecting the culture. The leader can respond proactively rather than having
to react to situations that in some cases could be undermining the culture. Organizational
cultures are generally stable and are difficult to change (McShane & Von Glinow, 2015). As
noted, however, they can also be vulnerable to events such as downsizing, a natural disaster,
or change in leadership that can cause changes in the culture.
Formal and informal methods to assess culture are available. Formally, questionnaires can be
used to provide a profile on the culture. Also, internal or external professionals can interview
cross sections of people to get a reading on the culture. It can also be helpful to have a Culture
Team responsible for monitoring the organization, for recommending ways to build and sus-
tain the culture, and for being involved in helping guide possible culture changes (Warrick,
2002).
To change culture requires far more than lots of talk about culture and posters on walls iden-
tifying core values or cultural ideals (Warrick, Milliman, & Ferguson, 2015). It takes a strong
commitment of the leaders to make cultural changes combined with knowledge about the
present culture ideas regarding the desired culture. To achieve these ends, the leader should
consider the implications of desired changes and develop a change strategy that involves key
people in planning and implementing any changes. In addition, it takes aligning processes
and systems such as reward systems with the desired changes.
Educate Boards About the Importance of Culture
Governing boards can destroy strong cultures that took many years to build by placing a leader
in charge of an organization who is not a fit with the present or desired culture (Warrick &
Mueller (2010). On the other hand, a board that is well informed about culture can select a
leader who can help build a better culture. Consequently, when a top manager interacts with
or presents to a governing board, that leader should make every effort to communicate the
nature of the organization’s culture and its value to the company’s long-term well-being.
war82476_08_c08_243-284.indd 253 3/3/16 1:16 PM
Section 8.2 Leading an Effective Organizational Communication System
8.2 Leading an Effective Organizational
Communication System
Chapter 5 discussed the importance of interpersonal communication, but leaders also need to
be skilled at organizational communication. In fact, the higher leaders go in the organization,
the more important organizational communication becomes and the more a leader’s success
depends on abilities to establish effective organizational communication. Organizational
communication consists of all of the planned ways leaders use to communicate with those in
their area of influence. This could include, for example, communicating through policies,
goals, meetings, technology, social media, newsletters, and the vast array of options available
to leaders (Lengel & Daft, 1988).
Two communication systems pass
messages throughout the organi-
zation. The formal communica-
tion system is composed of every
organizationally approved channel.
These include letters; memos; meet-
ings; direct conversations; bulletin
boards; the company’s website;
company magazines and newspa-
pers; satellite transmissions; hand-
held devices; and interconnected
laptop systems, including those with
GPS locators. The second network,
the grapevine, or informal commu-
nication, emerges through social
interactions among employees.
Leaders can significantly improve their effectiveness at organizational communication by
designing a communication system and involving the appropriate people in the process. Keep
in mind that the higher the position of the leader, the more involved the design is likely to
become and the greater the need to involve others in the process and perhaps even seek
professional expertise. For example, a CEO who needs to design a system for the entire orga-
nization will have a considerably more involved process than will a leader with seven direct
reports. In either case, the leader should place a strong emphasis on keeping the system as
simple, useful, flexible, and streamlined as possible.
In contrast, when communication is not well planned, a communication gap occurs that
gets filled with confusion, misunderstandings, and people going in different directions. It
also results in people working on different priorities, a lack of teamwork, and misinforma-
tion communicated through the grapevine and other undesirable channels. The costs of poor
organizational communication …
Part II Leadership Theories
CHAPTER 3 Foundational Leadership Theories
3.1 Leadership Theory Development
3.2 Trait Theories
3.3 Style or Behavioral Theories
3.4 Situational and Contingency Theories
Chapter Summary
CHAPTER 4 Modern Leadership Theories and
Transformational Leadership
4.1 Recent Views of Leadership: Servant, Positive, and Principle Centered
4.2 Charismatic Leadership
4.3 Defining Transformational Leadership
4.4 Developing Transformational Leaders
Chapter Summary
war82476_03_c03_065-100.indd 65 3/3/16 11:31 AM
war82476_03_c03_065-100.indd 66 3/3/16 11:31 AM
3 Foundational Leadership Theories
Wavebreak Media/Thinkstock
Learning Outcomes
After reading this chapter, you should be able to:
• Note the impact of history and research methods on leadership theory development.
• Apply the concepts from the trait theories that improve leadership practices.
• Acknowledge the use of differing leadership styles.
• Adjust or adapt a leadership style to fit a situation or contingency.
war82476_03_c03_065-100.indd 67 3/3/16 11:31 AM
Introduction
Introduction
Indra Nooyi, CEO and board chairman of PepsiCo, serves as a prime example of strong
leadership.
A person of many gifts, Nooyi played cricket as a college student. Later, she played lead guitar
in an all-women rock band in her hometown of Madras, India, and now, presiding over 185,000
employees in nearly 200 countries as the chief executive of PepsiCo., she sings karaoke at
corporate gatherings and company functions.
Former Pepsi employee Steven Reinemund,
now the dean of business schools at Wake
Forest University, states that Nooyi is “a
deeply caring person” who “can relate to
people from the boardroom to the front
line” (U.S. News & World Report, 2008). Her
five Cs of leadership are competency, cour-
age, confidence, communication skills,
and compass (Namin-Hedayati, 2015). Of
these, communication has been extremely
valuable to Nooyi. She maintains a blog at
Pepsi where she talks to her employees
via posts every other week. She writes
letters to their parents to thank them for
their children.
Namin-Hedayati (2015, para. 3) notes that
“[r]elationship-building may not be part
of Indra’s five C’s of leadership, but it is
certainly one of her strengths.” Nooyi her-
self notes, “Leadership is hard to define
and good leadership even harder. But if
you can get people to follow you to the
ends of the earth, you are a great leader.”
Others suggest that she is demanding, but
realistic: “I wouldn’t ask anyone to do any-
thing I wouldn’t do myself ” (Snyder, 2015,
para. 7).
CEO Nooyi goes beyond communication and relationship building. Over the years she has
been able to imprint her values on the company. “People these days are bringing their prin-
ciples to their purchasing,” she once said. “We, in return, are bringing a purpose to our per-
formance.” Nooyi has been vocal about the importance of health. She said that it’s up to Pepsi
to help solve “one of the world’s biggest public health challenges, a challenge fundamentally
linked to our industry: obesity” (Snyder, 2015, para. 4). For many years, Nooyi has been in
tune with consumers’ needs for healthier snack and drink options, which has led to transfor-
mation in Pepsi’s product line. Her vision was to produce both wholesome foods and depend-
able profits.
Graham Crouch/Bloomberg/Getty Images
Indra Nooyi, chief executive officer of PepsiCo
Inc. in 2011.
war82476_03_c03_065-100.indd 68 3/3/16 11:32 AM
Section 3.1 Leadership Theory Development
Indra Nooyi leads with distinct principles. Her key slogan is “Performance with purpose.”
“We ought to keep pushing the boundaries to get to flawless execution. Flawless is the ulti-
mate goal,” she notes (Snyder, 2015, para. 2). The example she provides sets the stage for this
chapter: an examination of the earliest theories of leadership. These in turn have built the
foundation for modern leadership theory. In this chapter, we will examine leadership theory
development first, and then we will look in depth at the trait approach to leadership, style or
behavioral theories, and finally the situational/contingency theories.
3.1 Leadership Theory Development
We all have theories that direct the way we think and act. A theory is a set of ideas, principles,
propositions, or assumptions we use to understand and explain something. We form theories
to make sense of things and guide our behavior. Theories are important in understanding
and practicing leadership as they provide insight into what leadership scholars and practitio-
ners think about leadership. Leaders who are not familiar with the major theories on leader-
ship are left to formulate their own thinking without the benefit of knowing what leadership
scholars have devoted many years to discovering. Some leaders may be naturally gifted with
the right instincts about leadership. However, without sound theories, most will be incon-
sistent in their practices or will have flawed theories that lead to ineffective and sometimes
harmful practices.
The exploits and achievements of great leaders have been documented in writings dating far
back into history. Exceptional military leaders, governmental officials, and business manag-
ers have been noted in the books such as the Bible, The Art of War, and in other ancient docu-
ments for centuries. Managerial leadership theory, however, does not have quite as lengthy
a history. Two primary forces explain the relatively recent emergence of leadership theories:
the role of history in management literature and the development of more sophisticated
research techniques.
Historical Influences
To study history involves more than simply reciting past dates and the names of notable fig-
ures and major events. Instead, an historical analysis should be designed to understand the
impact of events at any given time on the culture and activities of those in that era as well as
how those events influence the world today. In the case of management theory, a review of the
nature of the economic, political, social, and technological factors present at any given time
help explain the development and evolution of various approaches to our understanding of
leadership.
In that context, the first theories we will examine in this chapter focus on the traits and char-
acteristics of successful leaders. During the era of these theories, which was primarily the
late 1800s, the dominant force in business was the Industrial Revolution. New manufacturing
techniques emerged, and for the first time workers reported to a factory in order to do their
jobs, rather than working at home. The business world was relatively unregulated; conse-
quently, many captains of industry emerged as giants who were able to build large empires,
war82476_03_c03_065-100.indd 69 3/3/16 11:32 AM
Section 3.1 Leadership Theory Development
such as Henry Ford, the Rockefellers, and Andrew Carnegie. Legends and stories dominated
the study of leadership.
World War II introduced many new elements. Governmental regulations of commerce had
grown; workers and consumers enjoyed greater rights and protections, and the economy had
experienced the Great Depression. Due to the influence of the war, a greater emphasis on
understanding quality leadership evolved. At the same time, a changing workforce was grow-
ing: one that included an increasing number of women. Not surprisingly, a shift away from the
study of traits and characteristics took place as researchers and theorists noticed differences
in leader style and focus.
By 1960, the environment surrounding the study of leadership had once again changed. Pre-
vious ideas about leadership evolved. The civil rights movement, the women’s movement, and
the emergence of a greater degree of international competition altered the business world
along with other elements of society. An increasingly educated populous encountered a new
working environment in which positions in service industries increasingly replaced manufac-
turing jobs. A more diverse workforce created demands for greater insight into the nature of
leadership and how it connects to both personal and organizational outcomes.
In this chapter and the next, we will explore the theories that were developed and presented
over time. It helps to remember the time period in which each of these models was developed.
The theories did not evolve in a vacuum. They were part of the historical era in which they
were conceived.
Impact of Research
The growth in quality of research techniques has also strongly influenced leadership theory.
The early traits and characteristics studies took place when our understanding of statistical
analysis was relatively limited. Consequently, research techniques at the time were rudimen-
tary, often involving case studies and colloquial evidence.
As the World War II era unfolded, the ability to study leadership using innovative techniques
had blossomed. Many of these studies utilized correlations and descriptive statistics (per-
centages, quartiles, deciles). Observational studies, interviews, and basic questionnaires
played major roles in the manner in which researchers studied leadership.
In the 1960s, the entry of the United States into the space race, accompanied by the devel-
opment of computer technology, allowed for an entirely new and more sophisticated set of
statistical techniques. Going beyond phrases such as “correlation does not indicate causa-
tion,” researchers became able to use more advanced methods including both parametric and
nonparametric statistical techniques. These allow for the study of multiple independent vari-
ables combined together to predict various personal and organizational outcomes, along with
greater confidence regarding the concept of “causation.”
As a result, these increasingly eloquent methods of research design have assisted the study of
leadership. Again, it helps to note the time period in which every theory you see in this book
was created. Then, consider the level of statistical sophistication available to the author who
developed that theory.
war82476_03_c03_065-100.indd 70 3/3/16 11:32 AM
Section 3.2 Trait Theories
3.2 Trait Theories
The trait theories are among the earliest systematic efforts to study leadership. Trait theo-
ries of leadership include the search for the distinguishing qualities and characteristics that
successful leaders display. These might include mental characteristics such as intelligence,
integrity, confidence, and other personality characteristics; physical characteristics such as
strength or stamina, social characteristics including the ability to influence others and socia-
bility, and communication skills such as empathy plus talent in the area of public speaking.
Great Man or Trait Theory
The earliest trait studies took place in the late 1800s and early 1900s and continue today. The
first approach was to study great leaders such as Napoleon Bonaparte, Joan of Arc, and Abra-
ham Lincoln in the attempt to identify common traits among them. To this day, many people
assume that individuals become effective leaders due to personal characteristics such as cha-
risma or communication skills. Recent examples of this type of thinking include reflections
on the leadership abilities of President Ronald Reagan and President Barack Obama, both of
whom exhibited exceptional public speaking skills.
We can find two common underlying themes in the trait theory approach. First, the ability to
lead applies across situations. An effective leader in one organization would also succeed if
moved to a new and different situation. Second, if leadership is transferable across situations,
then all effective leaders would have or demonstrate some “universal” traits or characteris-
tics, or the common elements among all “great men” (leaders). The original goal of great man
or trait theory was to identify such universal personality features. Later, other studies sought
to identify differences between leaders and followers as well as the actual results associated
with various traits present in successful leaders.
Ralph Stogdill conducted some of the best-known early studies of leadership traits (Stogdill,
1948, 1974). The first, published in 1948, includes an analysis of synthesis of more than 124
trait studies that took place between 1904 and 1947. He identified eight traits that charac-
terized those in a leadership role that differed from those in non-leadership roles. The traits
were intelligence, alertness, insight, responsibility, initiative, persistence, self-confidence, and
sociability. Stogdill concluded that a leader’s traits must fit the situation for the leader to be
successful. His second study was published twenty-six years later in 1974. In that analysis,
163 new studies were compared with the results of his first study. The second study validated
Self-Reflection Questions
1. Which element—economic, political, or social/cultural—do you think has had the most
profound impact on the development of leadership theory? Explain your response.
2. Is it possible that the moment in history (war versus peace; depression versus boom
economy) will influence the type of leader who will be successful? Why or why not?
3. Do you believe that more sophisticated statistical methods should result in entirely
new theories of leadership, or rather that there should be some fundamental
“truths” regarding the activity? Defend your answer.
war82476_03_c03_065-100.indd 71 3/3/16 11:32 AM
Section 3.2 Trait Theories
the importance of a leader’s characteristics in achieving success and added items such as the
need for achievement, persistence, cooperativeness, tolerance, and influence.
Based on an evaluation of more than 1,400 studies, Mann (1959) concluded that six traits or
characteristics were most often present in successful leaders: intelligence, masculinity, adjust-
ment, dominance, extraversion, and conservatism. Kirkpatrick and Locke (1991) published a
study that identified six common leadership traits: drive, motivation, integrity, confidence,
cognitive ability, and task knowledge.
It became evident as the studies became more sophisticated that a potential link exists
between the traits present and the situation in which they were being applied. In other words,
the traits that work in one situation may not be suited for another. More recent theories com-
pared leadership traits to personality factors, and others focused on traits such as emotional
intelligence and social intelligence as well as traits present in successful business leaders
combined with propositions about what it takes to succeed.
Critics of the basic trait approaches to leadership note that, while leaders may in some way
be “different” from followers, the specific characteristics identified by individual researchers
vary widely. Of the nearly 80 traits identified in various studies, only five can be found in more
than four or more research efforts (Geier, 1967; Kirkpatrick & Locke, 1991; Zacarro, Foti, &
Kennny, 1991). Further, many personal traits are relatively fixed and not subject to a great
deal of change, which eliminates the possibility of training someone to become a more effec-
tive leader. Also, the trait approaches may explain why a person is selected for promotion but
may not be as effective in predicting whether the individual will subsequently become a suc-
cessful leader. These objections cast some doubt on the viability of the trait theory approach,
especially as it applies to the training and development of future leaders.
Those who value the trait approach suggest that it provides effective guidelines for the selec-
tion of leaders. Any person can, on his or her own, work to develop and enhance the traits he
or she believes the organization seeks that lead to advancement. Also, the trait approach estab-
lished the basis for some of the modern approaches to leader theory described in Chapter 4.
The Big Five Personality Factors
Over the last 25 or so years, a general consensus emerged among researchers that five factors
are key features of an individual’s personality (Goldberg, 1990). These elements are known
as the Big Five Personality Factors. The factors are displayed in Table 3.1.
In evaluating 78 leadership and personality studies published between 1967 and 1998, Judge
and his colleagues (2002) found that extraversion was the most strongly associated with
leadership in the sense that the factor was associated with becoming a leader; however, it was
less useful as a predictor of leader effectiveness. Conscientiousness and openness were more
likely to be associated with actual leader success. Agreeableness had only a weak association
with leadership and neuroticism had a low association. The authors concluded that a combi-
nation of these factors might increase the likelihood that an individual will become a quality
leader.
Table 3.1: The Big Five Personality Factors
Neuroticism: The tendency to have frequent negative emotions; overly sensitive, anxious, insecure, easily
depressed, or vulnerable.
Extroversion: Extroverts tend to be outgoing, sociable, energetic, enthusiastic, assertive, and confident.
Introverts tend to be timid and reserved.
Openness: The level of openness to new ideas and experiences, curiosity, innovation, thoughtfulness,
insight, and creativity.
Agreeableness: The degree of empathy, warmth, compassion, cooperativeness, approachability, acceptance
of others, and diplomacy.
Conscientiousness: The level of thoroughness, organization, dependability, self-discipline, and decisiveness.
Source: Based on Goldberg, L. R. (1990). An alternative “description of personality”: The big-five factor structure. Journal of
Personality and Social Psychology, 59, 1216 – 1229.
war82476_03_c03_065-100.indd 72 3/3/16 11:32 AM
Section 3.2 Trait Theories
the importance of a leader’s characteristics in achieving success and added items such as the
need for achievement, persistence, cooperativeness, tolerance, and influence.
Based on an evaluation of more than 1,400 studies, Mann (1959) concluded that six traits or
characteristics were most often present in successful leaders: intelligence, masculinity, adjust-
ment, dominance, extraversion, and conservatism. Kirkpatrick and Locke (1991) published a
study that identified six common leadership traits: drive, motivation, integrity, confidence,
cognitive ability, and task knowledge.
It became evident as the studies became more sophisticated that a potential link exists
between the traits present and the situation in which they were being applied. In other words,
the traits that work in one situation may not be suited for another. More recent theories com-
pared leadership traits to personality factors, and others focused on traits such as emotional
intelligence and social intelligence as well as traits present in successful business leaders
combined with propositions about what it takes to succeed.
Critics of the basic trait approaches to leadership note that, while leaders may in some way
be “different” from followers, the specific characteristics identified by individual researchers
vary widely. Of the nearly 80 traits identified in various studies, only five can be found in more
than four or more research efforts (Geier, 1967; Kirkpatrick & Locke, 1991; Zacarro, Foti, &
Kennny, 1991). Further, many personal traits are relatively fixed and not subject to a great
deal of change, which eliminates the possibility of training someone to become a more effec-
tive leader. Also, the trait approaches may explain why a person is selected for promotion but
may not be as effective in predicting whether the individual will subsequently become a suc-
cessful leader. These objections cast some doubt on the viability of the trait theory approach,
especially as it applies to the training and development of future leaders.
Those who value the trait approach suggest that it provides effective guidelines for the selec-
tion of leaders. Any person can, on his or her own, work to develop and enhance the traits he
or she believes the organization seeks that lead to advancement. Also, the trait approach estab-
lished the basis for some of the modern approaches to leader theory described in Chapter 4.
The Big Five Personality Factors
Over the last 25 or so years, a general consensus emerged among researchers that five factors
are key features of an individual’s personality (Goldberg, 1990). These elements are known
as the Big Five Personality Factors. The factors are displayed in Table 3.1.
In evaluating 78 leadership and personality studies published between 1967 and 1998, Judge
and his colleagues (2002) found that extraversion was the most strongly associated with
leadership in the sense that the factor was associated with becoming a leader; however, it was
less useful as a predictor of leader effectiveness. Conscientiousness and openness were more
likely to be associated with actual leader success. Agreeableness had only a weak association
with leadership and neuroticism had a low association. The authors concluded that a combi-
nation of these factors might increase the likelihood that an individual will become a quality
leader.
Table 3.1: The Big Five Personality Factors
Neuroticism: The tendency to have frequent negative emotions; overly sensitive, anxious, insecure, easily
depressed, or vulnerable.
Extroversion: Extroverts tend to be outgoing, sociable, energetic, enthusiastic, assertive, and confident.
Introverts tend to be timid and reserved.
Openness: The level of openness to new ideas and experiences, curiosity, innovation, thoughtfulness,
insight, and creativity.
Agreeableness: The degree of empathy, warmth, compassion, cooperativeness, approachability, acceptance
of others, and diplomacy.
Conscientiousness: The level of thoroughness, organization, dependability, self-discipline, and decisiveness.
Source: Based on Goldberg, L. R. (1990). An alternative “description of personality”: The big-five factor structure. Journal of
Personality and Social Psychology, 59, 1216 – 1229.
Emotional Intelligence
Some of the early trait studies suggest that cognitive intelligence, or IQ, is important to suc-
cessful leadership (Judge, Colbert, Amy, & Ilies, 2004). In the 1990s, another kind of intelli-
gence, emotional intelligence, or EQ, was introduced as a leader trait that could be linked to
eventual success. The term “emotional intelligence” was introduced by Peter Salovey and
John Mayer (1990) and popularized by Daniel Goleman (1995).
Emotional intelligence (EQ)
refers to a person’s personal and
interpersonal awareness, percep-
tiveness, and abilities. The two
words, emotional and intelligence,
suggest that the heart (emo-
tions) and the mind (intellect)
need to work effectively together
for a person to be skilled at self-
management and interpersonal
relations. In other words, to be
emotionally intelligent, a person
should be aware of his or her
emotions and thought processes
while remaining sensitive to the
dynamics taking place in interper-
sonal relations. This awareness and sensitivity combine to allow the individual to effectively
manage his or her behaviors along with interactions with others.
Richard Daft states that being emotionally intelligent means having the ability to effectively
manage yourself and your relationships. Morgan Smith, former manager and owner of Bone-
heads Restaurant in Lake Forest, California, provides an example. Smith was able to positively
influence employees through empathy and respect, which led to a highly successful experi-
ence in directing the company. Conversely, a person exhibiting a low EQ would be ineffective
at handling personal emotions and would be insensitive to the emotions of others and the
dynamics taking place in interpersonal relations.
Moodboard/Thinkstock
Emotional intelligence is linked to success in leadership.
war82476_03_c03_065-100.indd 73 3/3/16 11:32 AM
Section 3.2 Trait Theories
Numerous leadership studies indicate that emotional intelligence constitutes a major factor
in predicting a leader’s success. For example, one finding suggests that two-thirds of the dif-
ference between top-performing and average leaders was due to emotional intelligence (Boy-
atzis & Goleman, 2001). Table 3.2 identifies four components of emotional intelligence.
Table 3.2: Components of emotional intelligence
Self-awareness: A self-aware person is cognizant of his or her behaviors and their consequences. Self-
awareness makes it possible to manage and improve one’s behavior and skills. Emotional awareness is
particularly important, as people who are in touch with their emotions have the choice of managing their
emotions and expressing them effectively or letting their emotions manage them and control their behavior
and contaminate their thinking.
Self-management: A person who is skilled at self-management is basically a person who operates with
a high level of self-control. Such an individual can express emotions of joy, enthusiasm, and affirmations
of others appropriately and can restrain themselves from expressing emotions without thinking or from
expressing emotions inappropriately. Society sometimes values people who do and say what they feel and
tell it like it is without concern for the consequences. Unfortunately, these behaviors often come from people
who simply lack self-control and act in rude and disrespectful ways.
Social awareness: A socially aware person is a person who is concerned about and perceptive about the
emotions of others and who is also perceptive about the emotional dynamics taking place in groups and
organizations. Socially aware people are able to empathize with others, which means that they are sensitive
to the feelings, thoughts, and situations of others. These individuals use both their emotional and cognitive
skills; this means they are able to remain objective while showing empathy.
Relationship management: A person skilled at relationship management is a person who is able to build
positive relationships with others. He or she treats people with respect, compassion, sensitivity, and kind-
ness. People who are self-centered, self-focused, need to constantly draw attention to themselves, or who are
excessively private and reclusive will have difficulty building positive relationships.
Source: Based on Boyatzis, R. E. and Goleman, D. (2001). The emotional competence inventory. Boston, MA: The Hay
Group.
Another stream of research that began in the 1990s studied leadership traits using a different
metric. Social intelligence is having capabilities in being socially aware and adept and being
aware of one’s own feelings and the feelings of others. An example of the social intelligence
studies is one published by Zaccaro, Kemp, and Bader (2004) that included traits such as
extraversion, conscientiousness, emotional stability, openness, agreeableness, self-monitoring,
and problem solving. A number of these traits parallel the traits described in the Big Five Per-
sonality studies.
Attribution Theory
Attribution theory is an umbrella term that covers a series of theories. It is based on the con-
cept that people differ in how they view the “real world.” Consequently, perceptions hold the
key to what people believe they have observed. These observations lead to attributions, or
beliefs about cause and effect. A simple attribution is “If I eat right and exercise, I will lose
weight.” Remember, however, that an equally plausible attribution is “No matter what I do,
I can’t lose weight.” Both are valid attributions because these perceptions are based on an
individual’s experience or view of reality.
war82476_03_c03_065-100.indd 74 3/3/16 11:32 AM
Confirmed
Attribution
Refuted
Attribution
Success Failure
F
a
il
u
re
R
E
A
L
O
U
T
C
O
M
E
PREDICTION
S
u
c
c
e
s
s
Refuted
Attribution
Confirmed
Attribution
Section 3.2 Trait Theories
The attribution model of leadership seeks to discover the cause-effect relationships that
apply to leaders or potential leaders. It can be summarized as follows:
1. Every individual has what is essentially an implicit theory of leadership, which
represents his or her thoughts about the nature of, and traits displayed by, effective
leaders.
2. Individuals constantly test their own theories and attributions. Figure 3.1 displays
such a test.
3. If the test is confirmed, as shown in two of the boxes of Figure 3.1, two personal
attributions are strengthened:
• the individual’s belief about the specific person’s ability to lead or not lead and
• the individual’s attribution about the nature of an effective leader.
4. If the test is refuted, as shown in two of the boxes of Figure 3.1, the individual will
• modify his/her theory or
• ignore the test.
Each individual’s theory of leadership evolves from the observation of behaviors. The behav-
iors often reflect leader traits and characteristics. When someone gets promoted to the role of
leadership, or elected to a role such as governor or …
7 Teamwork and Group Skills
iStock/Thinkstock
Learning Objectives
After reading this chapter, you should be able to:
• Recognize the important role leadership plays in guiding constructive teams and groups.
• Evaluate types of teams and various background factors.
• Respond to each stage of team development and other team processes.
• Utilize a systems approach to teamwork.
• Understand how to build and guide high-performance teams.
war82476_07_c07_207-242.indd 207 3/3/16 11:34 AM
Introduction
Introduction
What does NASCAR racing have in common with book publishing? Both rely on teams and
groups to successfully complete their tasks. As NASCAR’s website (2015) puts it, “a full-blown
pit stop consists of the following—changing four tires, adding a full tank of Sunoco racing
fuel, wiping the grille clean and making minor adjustments to the car. Oh, and the really good
team can accomplish all of that in 12 seconds with the allotted six crew members” (para. 1–2).
Typically, the individuals involved are the rear tire carrier, the rear tire changer, a jackman,
the front tire carrier, the front tire changer, and a gas man. A support crew works behind the
pit crew to make sure everything moves smoothly. A crew chief and his/her car chief lead the
group, assisted by an engineer.
The leadership team creates a strategy that the crew must carry out. Several factors dictate a
team’s pit-road strategy. Race length, caution flags, fuel mileage, and tire wear are all consid-
ered before the crew chief decides on an appropriate course of action. Then, the team must
make adjustments on the fly. Change two tires or four (or zero)? Other corrections make sure
the car will not get worse due to changing track conditions.
All the while, the car’s driver receives most of the attention and fame, as the supporting cast
does the dirty work. Many people know the name Danica Patrick. But who can identify her
crew chief or any member of her team?
The same holds true in book publishing. A typical book is guided by an editor-in-chief, who
will assign a sponsoring editor to a project. That person works with a team consisting of an
editorial coordinator; a composition person or team; a cover design employee; one or more
copy editors; manuscript reviewers; a developmental editor; and individuals assigned to cre-
ate graphics, design pages, and edit photos. Then, a publicity team and a sales force must
make sure copies of the book show up in the right hands in order for it to gain traction in the
marketplace.
And yet, one or a few names appear on the book’s cover. The author’s level of success is often
determined, at least in part, by the quality of the team working behind the scenes. These indi-
viduals must be properly led, managed, and coordinated for a bestseller to take shape.
Skills in leading teams and building teamwork are critical to being an effective leader, and
having leaders skilled in these areas is critical to the success of organizations. The payoffs of
teamwork have been extensively researched (Katzenback & Smith, 1993; Larson & LaFasto,
2001; McShane & Von Glinow, 2010; Hellriegel & Slocum, 2011; Mathieu, Maynard, Rapp, &
Gilson, 2008). On a personal level, skills in teamwork have become so important that Fortune
Magazine reported that “[b]ecoming skilled at teamwork may be the single most important
thing you can do to increase your value regardless of your level of authority” (Useem, 2006,
p. 11).
I devote this chapter to helping leaders understand the dynamics of how teams function and
to preparing individuals to be skilled team players, leaders, and builders. It is designed to
encourage leaders to be strong advocates of the importance of teamwork throughout the
organization.
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Section 7.1 The Study of Groups and Teams
7.1 The Study of Groups and Teams
Leaders throughout the centuries have studied and shared thoughts about teams. For example,
leaders have had to make decisions about how to organize and manage military operations,
build magnificent buildings, and complete many other endeavors. These efforts required the
use of teams. At first, little was written about the formal study of teams. Some trace the for-
mal study of teams to the work of Norman Triplett who in the late 1800s studied the effects
of working alone versus working in a group (1897). He noted, for example, that bicycle racers
who pedaled around a racetrack in groups were faster than those who pedaled around alone.
A major breakthrough in the study of teams occurred in 1933 when Elton Mayo published his
findings from the Hawthorne studies conducted at a Western Electric plant outside of Chi-
cago. Mayo was part of a Harvard University research team asked to study the activities of
work groups at the Hawthorne plant. Prior to the group coming in, an initial study was done
to evaluate the effect of lighting intensity on performance. One group worked in a room where
the intensity was kept constant and another where the intensity was varied. As expected, as
illumination increased, productivity also increased. However, when illumination decreased,
output continued to increase. This is when the Harvard research team was brought in to dis-
cover why this was happening.
The Hawthorne studies were origi-
nally designed to evaluate the effect of
working conditions on productivity by
varying such things as the intensity of
lighting, length of breaks, incentive pay,
and shorter working days. Instead, the
results launched a whole new interest
in human relations and group dynam-
ics. The researchers concluded that the
increases in productivity were more a
result of the dynamics taking place in
the groups and the special attention the
experimental group was getting than
the influence of working conditions.
The next major wave of developments in the study of teams came from the work of Kurt Lewin,
as Lewin used the term “group dynamics” to describe the scientific study of behavior in groups
(1951). After Lewin, many other researchers and popular writers have focused on group dynam-
ics, the importance and effectiveness of teams, and it’s important to distinguish between groups
and teams.
“Group” was the primary term used in the earlier studies of the dynamics that take place in
sets of people. We can define a group as two or more people gathered or classified together
with a common purpose. Groups can be formal or informal.
Formal groups are established to allow members to work together to accomplish a given out-
come. Examples of formal groups would be an ongoing set of individuals who work together
on a job, such as members of a department or a subset of a department in a business; a project
team completing a specific assignment; or a committee that oversees an element of an opera-
tion, such as workplace safety or employee benefits.
Monkeybusinessimages/iStock/Thinkstock
A group is two or more people gathered together
with a common purpose.
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Section 7.1 The Study of Groups and Teams
Informal groups emerge among individuals with common interests. Informal groups tend to
form around activities, such as a company bowling or soccer team; shared sentiments, includ-
ing political and religious affiliations; and interactions that result from being around people
on an everyday basis, such as those on the same floor of an office building or employees who
are assigned to a remote location of a company.
We can define a team as two or more people with a common purpose, interdependent roles,
and complementary skills. Consider a group as a broader term that encompasses a wide
range of activities and a team as a specific kind of formal group of individuals with not only
a common purpose but also interdependent roles and complementary skills. All teams can
be considered groups, but not all groups would be considered teams. Teams become distinct
from groups when synergies, or increased levels of performance, emerge from greater inter-
dependence and shared effort (Katzenbach & Smith, 1999; Rico, Sanchez-Manzanares, Gil, &
Gibson, 2008). Characteristics of teams include:
• sharing leadership responsibilities among members;
• shifting from individual responsibility to individual plus collective responsibility;
• evaluating success based on team outcomes rather than individual outcomes; and
• improved collective problem solving.
Trust constitutes an additional key component of a team. Effective teams go beyond interac-
tion and move to the point of collaboration.
Skills in leading teams and building teamwork are critical to being an effective leader, and
having leaders skilled in these areas is critical to the success of organizations. Any type of
organization that excels at teamwork at the top, within teams, between teams, and outside
the organization with key stakeholders holds many advantages. Table 7.1 displays a number
of reasons why teamwork is important to leaders and organizations.
Table 7.1: The value of teamwork
The Importance of Teamwork to a Leader’s Success
• Leaders who are excellent team players, who can build high-performance teams, and who can develop
teamwork between teams will be in high demand in the organization of the future.
• The higher you go as a leader, the more you will rely on teamwork to succeed.
• In any endeavor there are limits to how far you can go and how much you can accomplish without the
support and help of others.
The Importance of Teamwork to the Success of Organizations
• Organizations cannot successfully compete and sustain success at a high level without teamwork.
• Effective teamwork improves performance, speed in getting things done, the quality of work, products
and services, communications, innovative thinking, the work culture, morale and motivation, employee
engagement, team and personal development, and employee retention and loyalty to the organization.
• The organization of the future will rely increasingly on teamwork not only internally but also externally,
as they will need to partner with others to succeed.
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Section 7.2 What Leaders Need to Know About Teams
7.2 What Leaders Need to Know About Teams
Students of the dynamics of teams often become more effective leaders. Studying team dynam-
ics means being aware of the strengths and weaknesses of the team, the team members, and
the activities taking place internally and externally that affect the health and effectiveness
of the team. Individuals can learn how to fully utilize the potential of the team as well as any
team issues that should be addressed or could be improved. Perhaps you have been part of
a team in which the members were aware of a number of dynamics taking place that were
affecting the group but the team leader was not aware of them. Among the topics a leader
should understand are the following factors:
• the type of team;
• background factors;
• the stage of development; and
• team processes.
An analysis of the first two of these factors follows in this section. Later in this section, we
cover the other two factors.
Types of Teams
Before analyzing additional fac-
tors related to team success or
failure, the first step is to under-
stand the types of teams utilized
in organizations. Four of the most
common are:
• self-managed work teams;
• problem-solving teams;
• cross-functional teams;
and
• virtual teams.
Each presents potential benefits
and challenges to the leader and
the overall organization.
Uberimages/iStock/Thinkstock
What type of team might this be?
Self-Reflection Questions
1. Both teams and groups share goals. Explain the types of goals that would be
associated with a formal group and the types of goals that those in an infor-
mal group would seek.
2. Table 7.1 displays the importance of teamwork to a leader and an organi-
zation. How would poor or missing teamwork become a detriment to the
leader and his or her company?
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Section 7.2 What Leaders Need to Know About Teams
Self-Managed Teams
Many leaders find that employees can successfully direct certain types of work. A self- managed
work team consists of a group of employees who are assigned managerial responsibilities
combined with work tasks. The managerial activities performed by members of self-managed
work teams include planning activities, scheduling work, assigning tasks to individual team
members, overseeing the pace of work, making on-the-spot decisions, and facilitating some
elements of the control function. In some instances self-managed teams conduct internal per-
formance evaluations.
Research regarding the effectiveness of self-managed teams has produced mixed findings.
Some evidence suggests team members report higher levels of job satisfaction (Cordery,
Mueller, & Smith, 1991; van Mierlo, Rutte, Kompier, & Doorewaard, 2005). In other instances,
workplace productivity increased as accident rates were reduced in manufacturing settings
(Royal, 1999). In contrast, supervisors and other leaders who would lose authority in self-
management team settings are logically inclined to resist such a change, viewing the move as
a threat to job security.
Self-managed work teams would appear to have better chances for success when employ-
ees are well trained and perform more sophisticated jobs. The organization must be able to
support the program with rewards for team performance. Firms exhibiting centralization or
strong patterns of managerial control at top levels are not the best candidates for such pro-
grams. Note that even in self-managed teams leaders become part of the process. A leader
will either be designated to take charge or one will emerge in the vacuum that will otherwise
appear.
Problem-Solving Teams
When members of an organization are placed into groups to examine specific organizational
problems or processes, a problem-solving team may emerge. Teamwork occurs when mem-
bers are willing to share information, cooperate, and seek to achieve group as well as indi-
vidual objectives. Problem-solving teams can at times resemble quality circles and at times
project teams. Such teams remain popular for dealing with various organizational issues.
In some instances, a team may be asked to serve only in an advisory role. The team assesses a
problem and then reports to a decision maker. These individuals serve as part of an advisory
team. Such teams may play additional roles, including at times when they are assigned to
provide council to top management or those directing a specific project or activity. Leader-
ship of problem-solving teams involves the ability to solicit quality ideas while directing those
involved to the best solutions rather than compromises or other less valid approaches.
Cross-Functional Teams
A cross-functional team consists of employees from different areas in the company who are
assembled to achieve a specific purpose. Combining experts to work on an exciting problem,
task, or issue often leads to effective cross-functional teams. Teams can be assigned to develop
a new product, such as has been standard practice at Apple Computers for many years.
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Section 7.2 What Leaders Need to Know About Teams
Cross-functional teams at times resemble a task force. Many automobile manufacturers have
employed task forces to coordinate complex projects. Harley Davidson relies on collections of
individuals from various departments to help manage product lines, including the design of
the product, manufacturing, and even contacts with suppliers (Brunetti, 1999).
Note that both problem-solving teams and cross-functional teams often become change
teams. These sets of individuals are assigned to tackle specific issues causing problems for
an organization or to guide the company to take advantage of a new opportunity. In both
instances, the team institutes change.
Virtual Teams
Current technology allows members of groups to meet in cyberspace. Virtual teams employ
Internet and digital technologies to achieve common goals, such as collaborating, sharing
information, solving problems, and scheduling activities. Virtual teams are formed for short-
term projects as well as long-range, ongoing issues.
Virtual teams enjoy the advantages of reducing travel costs and allowing people from remote
locations to participate (see Figure 7.1). They are flexible in the sense that meetings can be
arranged fairly quickly, especially when compared to the necessity to travel to a distant place.
Volvo and Lockheed Martin have both made effective use of the advantages of these types of
teams (Ante, 2003; Naughton, 2003; Crock, 2003).
Figure 7.1: Virtual teams
Virtual teams employ Internet and digital technologies to achieve common goals.
iStock/Thinkstock
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Section 7.2 What Leaders Need to Know About Teams
One could argue that a virtual team would be better named a “virtual group.” The reasoning
connected to this interpretation would be that virtual collaborations do not take on the ele-
ments of trust and member interdependence that are part of the team concept. Three limita-
tions to virtual teams have been described, two of which reduce the ability to take on team-
like characteristics. First, in virtual meetings, paraverbal and nonverbal cues, such as voice
tone and inflection (paraverbal) and eye contact, distance, gestures, and facial expression
(nonverbal) cannot as easily be sent or received. This limits the richness of communications
between members. Second, socialization will be reduced. As virtual meetings conclude and
members adjourn, they cannot remain “in the room” to discuss issues and fraternize. The
third problem associated with virtual teams is that members will most likely meet at dif-
fering times, depending on location. A meeting that begins at 4:00 in the afternoon in San
Diego is taking place at 7:00 p.m. in New York, a time when most people have left the office.
International virtual meetings become even more problematic. Leading a team in those cir-
cumstances constitutes a greater challenge.
In summary, the four types of teams are prevalent in many of today’s companies. A leader’s
efforts can be designed to improve functioning and can assist self-managed teams, problem-
solving groups that become teams, cross-functional teams following the same path, and vir-
tual teams. We describe other elements of team success next.
Team Background Factors
Not only is it important for leaders to know the types of teams that function within organi-
zations, it is also important to know the various background factors that contribute to how
teams collectively think and function. Background factors include the internal and external
factors that influence the group. These include the history of the team; the mission, goals, and
culture of the organization; the team’s purpose and tasks; team member characteristics; and
the status of the group. A brief analysis follows.
History
A leader should know the background of a group. A new leader would be wise to invest time
learning as much as possible about the team by interviewing and getting to know all of the
team members. The leader can ask about the manner in which the team was formed, the
characteristics of any previous leader, and other elements before deciding how to operate and
possibly improve a team.
The Organization’s Mission, Goals, and Culture
For a team to be successful, it must to be designed to effectively contribute to the mission,
goals, and culture of an organization. Therefore, leaders should become familiar with these
factors make sure the team is aligned to best contribute to the success of the organization.
The Team’s Purpose and Tasks
The purpose and tasks a group performs need to be clear and designed in the best possi-
ble way for the team to perform at a high level. The tasks performed by a team can have
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Section 7.2 What Leaders Need to Know About Teams
a significant impact on its subsequent level of success. Members should have the skill sets
needed to complete various assignments. If not, the leader should seek to add new members
or address the situation in some other way.
Member Characteristics
Knowing the strengths and weaknesses of each team member and how the team members
work together is critical information for a leader to discover. Are team members being fully
utilized? Do they function well together? Are there problems with or between team members?
The Team’s Status and Influence
A highly respected team tends to exhibit confidence and may be more motivated to complete
its project or assignment. Members who believe they are perceived in a more favorable light
because they belong to a certain team will likely give greater effort and be more willing to
support the team’s activities.
Herb Kelleher: Team Building at Southwest Airlines
One of the most influential leaders in the airline industry, Herb Kelleher, is responsible for
forming and building a major force: Southwest Airlines. His novel approach to management
included a heavy emphasis on team building. Leadership processes were designed for
that purpose. “Power should be reserved for weightlifting and boats, and leadership really
involves responsibility,” Kelleher once noted (Free Enterprise, 2014, para. 1).
The team-building process begins at the hiring stage. “We will hire someone with less
experience, less education, and less expertise, than someone who has more of those things
and has a rotten attitude. Because we can train people. We can teach people how to lead. We
can teach people how to provide customer service. But we can’t change their DNA.” He adds,
“I forgive all personal weaknesses except egomania and pretension” (Free Enterprise, 2014,
para. 3, 5).
From there, the company’s culture guides people to share in numerous activities. Early in the
company’s development, Kelleher and his management team were guided by the idea that
less time spent at the gate meant more time in the air. As a result, when a plane went through
a “turnaround,” everyone from the gate agents to the flight captain and all other nearby
employees were charged with cleanup and preparation for the next flight. The net result
was the ability to add additional flights each day, leading to the ability to lower fares while
building profits.
Southwest Airlines has placed a strong emphasis on customer satisfaction. The company
works hard to make sure that considerate employees resolve problems on flights such as lost
luggage and delays. For years the company’s staff meetings resembled pep rallies. Kelleher
notes, “A company is stronger if it is bound by love rather than by fear.” He notes, “One piece
of advice that always stuck in my mind is that people should be respected and trusted as
people, not because of their position or title” (Free Enterprise, 2014, para. 2, 6).
For years, Herb Kelleher was one of the most sought-after public speakers in the business
world. At times he was booked for more than 2 years in advance. Clearly his understanding
of the value of teamwork played a vital role in his success as an organizational leader and
pioneer (Reingold, 2013; Clow and Baack, 2010).
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1. Forming
2. Storming
3. Norming
4. Performing
Section 7.2 What Leaders Need to Know About Teams
Leaders assess these elements and then respond. In the following paragraphs, we discuss
how teams develop over time and some of the processes that take place within them. Only
with an understanding of this can a leader apply an effective leadership approach.
Stages of Team Development
Now that you have a better understanding of the background factors that comprise individual
teams and the types of teams that can develop, it’s important to look at precisely how this
developmental process works. Research regarding team interactions indicates that they go
through a number of stages of development, and that if they do not devote the adequate atten-
tion needed to address one phase, it handicaps them in their efforts at the next stage (Tuck-
man, 1965; Tuckman & Jensen, 1977). Tuckman and Jensen (1997) developed one commonly
cited approach used to explain how groups and teams evolve over time. Their model suggests
a sequence in which individuals gradually surrender a sense of independence in favor of
greater interdependence. While the sequence may not be as precise as the one depicted in
Figure 7.2, the figure does provide a general sense of how groups tend to operate.
Figure 7.2: The stages of group development
Communication issues are present at each stage of group development.
1. Forming
2. Storming
3. Norming
4. Performing
Forming
Initially, new team members are likely to distrust one another to some extent and to experi-
ence feelings of uncertainty. Two behaviors appear in the first stage of development, known
as the forming stage. First, members try out actions and activities to see if others in the group
deem them as acceptable. The other will be the first tentative actions of a leader when one has
been designated, such as setting a meeting time or agenda, or by those seeking to lead when
one has not been appointed. The forming stage ends when sufficient compliance suggests
that members see themselves as part of the larger group.
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Section 7.2 What Leaders Need to Know About Teams
Storming
Although members now view themselves as part of something, they sometimes disagree with
the constraints imposed by the team or simply test to see what the limits are. In the storm-
ing stage, the leader faces resistance as individuals seek to discover their place in the group’s
structure (Tuckman, 1965). If the leader cannot manage the group successfully, the possibil-
ity of subgroups, member procrastination, conflicts between members, and open rebellion
emerges. Group survival may be at risk.
Norming
The close of the storming stage occurs when the team has firmly established a leader, often
through the efforts of another member who challenges the group to come together. Closer
relationships build between members, and discussions of power become less emotional and
more matter-of-fact. Norms, or rules governing behaviors in the group, begin to emerge. The
norming stage is complete when members share a common set of expectations about behav-
iors and contributions to the group. As Table 7.2 shows, norms apply to three main areas in
both formal and informal groups. In fact, many times norms overlap between the two groups.
Norms can be formally or informally sanctioned, with approval or disapproval by group mem-
bers. Someone engaged in a pleasant conversation with a supervisor in an organization where
the norm is to see management as adversaries will probably be accused of being a “brown
noser,” or worse.
Table 7.2: Types of norms
Area of Behavior Example of Norm
Effort Time on the job/overtime
Level of productivity
Sales calls, sales totals, customer follow-ups
Work behaviors Clothes and hairstyle, tattoos and piercings
Use of language, cursing, formality
Obeying or ignoring work rules and procedures
Social behaviors Fraternization between management and labor
Office romances
Norms tend to develop slowly but then become difficult to change. They apply to the work-
place more so than to off-work activities. They also apply to behaviors rather than private
feelings and thoughts. Members may “go along” with norms they think are foolish, although
high-status group members may choose to ignore them. In general, norms summarize group
influence processes, including the rules for joining and maintaining membership (Hackman,
1992).
Norms may form around the time people arrive for meetings; how prepared people are for
meetings; productivity, attitudes, vocabulary; how problems are dealt with; how decisions
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Section 7.2 What Leaders Need to Know About Teams
are made; and many other dynamics in the team. Team norms may be called other things such
as team standards or guidelines (Hackman, 1992).
Norms can provide vital organizational functions when they clarify the group or organiza-
tion’s key values and convey a sense of identity. Enforcing norms can assist an individual in
either meeting behavioral expectations and/or avoiding making behavioral mistakes. Some
authors argue norms help the group or the organization to survive (Feldman, 1984), bearing
in mind that counterproductive norms may also emerge that hinder organizational success
and limit the leader’s ability to function effectively.
Performing
When the team reaches the point at which the primary activities revolve around solving task
problems, the performing stage has opened. Open communication takes place between mem-
bers as they cooperate with and support one another. Any disputes are handled quickly and
constructively (Mason & …
Final Paper
In preparation for your research, select an individual currently in a leadership position. The person must be responsible in some capacity for other employees, and the person must be an individual that can be researched.
Overview
In your overview of the leader, include:
· The leader’s name and title.
· His or her specific role or position and responsibilities.
· The name, industry, and description of the organization, including the culture of the organization.
· The length of time the leader has been in his or her current position.
· A brief history of the leader’s background and career path to his or her present day leadership position.
Analysis
Your analysis should:
· Describe, assess, and analyze the person’s leadership style. Be sure to provide specific examples.
· Identify and describe three significant challenges they faced as a leader.
· Identify and describe their greatest achievement, to date, as a leader.
· Apply and correctly cite a minimum of three leadership concepts from the course to this leader’s roles and responsibilities within the organization, their relationships with others, etc.
· Use these concepts to help describe the person’s leadership style and assess what makes it effective or ineffective.
· Reflect on what you learned about leadership from your research.
· Reflect on the implications for your personal leadership style.
Writing the Final Paper:
The Final Paper:
· Must be eight to ten double-spaced pages in length (excluding the title and reference pages) and formatted according to APA style as outlined in the Writing Center.
· Must include a title page with the following:
· Title of paper
· Student’s name
· Course name and number
· Instructor’s name
· Date submitted
· Must begin with an introductory paragraph that has a succinct thesis statement.
Text
Warrick, D. D. (2016).
Leadership: A high impact approach
. Bridgepoint Education.
· This text is a Constellation™ course digital materials (CDM) title.
Articles
· Hourston, R. (2013, April 24).
7 steps to a truly effective leadership style (Links to an external site.)
. Forbes. Retrieved from http://www.forbes.com/sites/womensmedia/2013/04/24/7-steps-to-a-truly-effective-leadership-style/
· McWilliams, Margaret A. (2007, Jul-Aug). A leadership competency model: Guiding the NAON process. Orthopedic Nursing . 26:4, 211-213. Retrieved from the Ebscohost database.
· SHRM. (2008).
Leadership competencies (Links to an external site.)
. Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/leadership-and-navigation/pages/leadershipcompetencies.aspx
· Snaiderbaur, S. (2012). Symphonic leadership: A model for the global business environment. The ISM Journal of International Business, 1(4), 17,1H-7H. Retrieved from the ProQuest database
Multimedia
· TED (Producer). (2010).
TedTalks: Sheryl Sandberg- Why we have too few women leaders (Links to an external site.) [Video file]. Retrieved from the Films On Demand database.
