Introduction

Leadership does not have a universal definition because of its complex nature.

Leadership is considered to be a holistic spectrum which can arise from several different factors.

For many individuals, when thinking about the best way to lead a team, there are also several

various factors which need to be considered. When the wrong approach is selected, the morale,

effectiveness, and the productivity of the group can suffer. One of the theories that are

commonly used is the Path-Goal theory which helps one identifies which practical approach to

leadership should be utilized based on the people and the current situation (Northouse, 2013).

The purpose of this paper is to examine what makes for an effective leader and why leaders

derail, falter and fail. The paper will also discuss the leadership background of the chairman and

CEO of Starbucks, Howard Schultz and identify how his leadership skills are aligned to the

different leadership theories.

Summary of Leader's Early Life and Education

Howard Schultz came from a low-income family. He was born in Brooklyn, New York

where he experienced poverty at an early age. When he was seven years old, his father who was

the breadwinner got into an accident while working as a truck driver and broke his ankle. Since

his father had no health insurance or worker's compensation, the family was left with no income.

When he was in high school, he played football which earned him an athletic scholarship to

Northern Michigan University where he became a communications major. However, he decided

that he did not want to play football, so he tried to pay off student loans by entering different jobs

like bartending and even resorted to selling his blood. He graduated in 1975 and spent a year

working at a ski lodge in Michigan while waiting for bigger opportunities. Schultz finally landed

a job at Xerox where he gained more experience but decided to leave after three years to accept a

job at Hammarplast that is owned by a Swedish company named Perstorp. There, Schultz
ascended the ranks and eventually became vice president and general manager of a team of sales

people in the company's New York office. This was the time he first encountered Starbucks

which is a coffee shop which had a few stores in Seattle. In an interview with Oprah Winfrey on

the show Super Soul Sunday, Schultz said his father never find fulfillment in his jobs and his

accident which caused severe poverty for the family left an impression on him the most. When

he discovered Starbucks, he revealed that he found it as the opportunity for him to build a

company that his father was never able to work for. With that, he tried to create a company with

a set of values, guidelines, and culture (Schultz, 2013).

Example of a successful leader

Howard Schultz is an American businessman and CEO of Starbucks. In the many years

Schultz spent at Starbucks, he has always made sure that he prioritizes his employees who he

calls partners. Because of his father's past, he made sure that all employees including part-time

workers are complete with health insurance and stock options. Schultz is a transformational

leader who inspires the team and encourages the employees to develop as individuals to help

them to be part of the collective team with the same goals. Schultz is the type of leader who

wants to inspire his people. In 2013, he called 10,000 Starbucks managers to a four-day

conference where he wanted to inspire them and challenge the employees to be personally

accountable for everything in their stores (Gallo, 2013). He is the kind of leader who believes in

the right people for the company to succeed.

Starbucks: The Reasons for Its Success

Starbucks' mission is to inspire and nurture the human spirit through their coffees. To

accomplish this mission, the company is set to follow principles which are used as a guide for

their employees as they go through their daily business. The company focuses on the importance

of providing quality products to their customers and making their stores comfortable. It is also
important that all employees treat each other with respect and dignity. This is one of the reasons

why Starbucks is a very successful company because employees live to their mission and make

sure that from the CEO to the part-time employees, there is respect which can be channeled to

their products. With that, the company was able to provide quality goods and services to their

customers.

Running a company as big as Starbucks also came with set-backs like in 2008 when

Schultz was forced to temporarily close over 7,000 stores to retain employees who know how to

make the perfect espresso. During this time, several stores would not provide the quality product;

the customers are expecting. With that, Schultz made a tough decision to make sure that baristas

who are passionate about making good coffee will remain in the company and those who are not

up to the task cannot destroy the name of the brand. Schultz wanted to ensure the welfare of his

customers and also encourage the employees to work better.

Leader's Qualities Compared to Path-Goal Theory

The path-goal model specifies a leader's style or behavior which benefits the employee

and the work environment to achieve the team's goal. The goal is to increase motivation and

empower the employee so that they would become more productive members of the company.

There are four path-goal types of leader behaviors, and they are directive, supportive,

participative and achievement. In the case of Schultz, his leadership style fits the behaviors

directive, supportive and performance. He is known for considering the employees as his

partners in his business. In the company mission statement, all employees know what is expected

of them, and the management expects them to perform the task to provide quality service and

products to their customers. Schultz also showed concern for his employees by offering health

care and stock options for them. With that, he expects that all employees should have the highest
confidence in their ability to help the company to grow further.

Leader's Qualities Compared to Authentic Leader Theory

The authentic leadership theory involves four concepts: self-awareness, balanced

processing, internalized moral perspective and relational transparency. It is an approach that

emphasizes on building the leader's authenticity by creating an honest relationship with his

employees. Schultz builds the support from his employees by taking care of them and wanting

them to improve their performance for the company. Schultz is a kind of leader who does not

emphasize on the profit but gives more importance to people involved in his company and the

values and ethics that he likes everyone to follow. An authentic leader is more interested in

empowering his people more than personal power. Schultz believes that his employees are the

reason for the success of his company and by building a strong partnership, he can make sure to

be a strong contender in the industry.

Why leaders fail?

Leaders fail because they do not inspire the team that they work with or encourages

employees to develop as individuals and encourage them to be part of the collective team with

the same goals. An excellent type of leader wants to inspire his people. A great leader believes in

the right people for the company to succeed. Leadership and mentoring are key elements in

building active employees into future managers. According to the Columbia Encyclopedia

(2004), motivation is "the intention of achieving a goal, leading to goal-directed behavior."

Motivators encourage employees to work harder and aim for a higher standard. Achievement,

recognition, responsibilities, and advancement are some of the rewards for highly motivated

employees. Using different type's motivational strategies is critical in achieving maximum

performance.
 According to Burns (1978), leadership is "the engagement between a leader and a

follower (p. 384). They are inspirational, trustworthy, and charismatic role models who lead by

example. They have the ability to understand the strengths and weaknesses of employees and

utilize those leadership skills to align employees with tasks that optimize performance. If a

leader wants his/her employees to maintain an effective work ethic, the leader should incorporate

this leadership/mentoring style to empower all employees to perform at a much higher level.

Employees should also practice this same inspirational leadership style to motivate themselves.

Another reason why leaders fail is their lack of continues monitor of employees' progress,

workload, and performance.

True leadership must involve efforts to develop supporters into leaders. Leaders must

train their people to be more empathetic and execute better time management skills. This will

give people a chance not to get bored in certain areas. Employees are an integral part of an

organization to help it operate efficiently.

Conclusion
By focusing on the customers through taking care of his employees, Schultz was able to

build a company that lives its mission and vision. His father's mishaps were his inspiration to

create a company that takes care of the employees because he believes that the employees were

the key to the company's success. Despite the setbacks after leaving the company for eight years,

Schultz was able to get back on his feet and inspired the managers more. Schultz leadership was

effective because he knew how to be a follower from his early days. He makes sure that every

employee feels needed and that their contribution is significant in every way.

Overall, transformational leadership improves the performance, morale, motivation, and

dedication of employees and engages them in a way that moves them to become leaders. It is

also important to point out that all types of leadership have a dark side when an abuse of power

or a lack of leadership effort is realized. Dan has to be that transformational leader who can lift

followers up from their petty preoccupations and rally around a common purpose to achieve

things never thought possible.

Leadership and Motivational theories are concepts we apply to our work environment on

a daily basis. As managers, it's important to find the right strategy to motivate our employees to

maximize their job potential. The right combination of tactics to get the job done is not always

easy to find without proper training, knowing how to recognize the situation, and the willingness

of the employee to accept some responsibility for the outcome of the job. Unfortunately, not all

employees have the luxury of working for the perfect manager who exhibits the character traits

necessary to lead a group of personnel. Individuals placed in leadership positions need to find

the motivators to encourage employees to work hard and aim for the highest standards. In-house

recognition programs such as promotions, bonuses, and additional responsibility are examples of

the rewards for highly motivated employees. The use of different theories and motivational

strategies as mentioned in the body of our paper have been found to be very useful in achieving

maximum performance from both managers and employees.

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