Entr 40013 Entrepreneurial Leadership in An Organization

Polytechnic University of the Philippines
COLLEGE OF BUSINESS ADMINISTRATION

DEPARTMENT OF ENTRPRENEURSHIP
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INSTRUCTIONAL MATERIALS FOR

ENTRE 40013
ENTREPRNEURIAL LEADERSHIP
IN ORGANIZATION
Compiled by:
Asst. Professor Cresilda M. Bragas. MBA

TABLE OF CONTENTS
Course Overview.................................................................................................................................1
Course Outcomes .............................................................................................................................2
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LESSON 1: Entrepreneurship and the Entrepreneurial Mindset ...................................................3
Topic 1: The Concept of Entrepreneurship .......................................................................................4

Topic 2: Leadership in Organization .................................................................................................5
Topic 3: Entrepreneurial Leadership .................................................................................................8
Article: Why Active Listening is Critical ..............................................................................................13
Assessment/Activities .........................................................................................................................14
LESSON 2: Leadership Theories and Models ..............................................................................15
Topic 1: Leadership and Its Styles ...................................................................................................16

Topic 2: Leadership versus Management ........................................................................................19
Topic 3: Different Leadership Theories and Models ........................................................................22
Case: The Electronic Store .................................................................................................................38
LESSON 3: Leader’s Cognitive Ambidexterity and Motivation ..................................................43
Topic 1: What is Cognitive Ambidexterity? .......................................................................................44

Topic 2: Framing Cognitive Ambidexterity for Entrepreneurial Leaders............................................46
Topic 3: Concepts of Motivation.......................................................................................................50
Topic 2: Theories of Motivation ........................................................................................................52
Case: Laura‘s Demotivation ................................................................................................................60
LESSON 4: A New World of Entrepreneurial Leader: SEERS .......................................................62
Topic 1: The Meaning of SEERS .....................................................................................................63

Topic 2: Corporate Social Responsibility and Organizational Sustainability .....................................65
Topic 3: Financial Challenges and Reconciliation ............................................................................67
Topic 4: Demand for SEERS Information ........................................................................................71
Article: The Mandate for SEERS. .....................................................................................................73
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Assessment/Activities ......................................................................................................................... 75
LESSON 5: Self and Social Awareness to Guide Entrepreneurial Leader’s Action ....................76
Topic 1: Who Am I? Leaning from Being Self Aware ......................................................................77

Topic 2: The Johari Window ..........................................................................................................79
Topic 3: Fostering Entrepreneurial Leader‘s Self-Awareness .........................................................82
Topic 4: How do Leaders Become Socially Aware? ........................................................................84
Case: Increasing Sarah‘s Self-Efficacy ...............................................................................................86
LESSON 6: Leading Groups and Teams in the Organization ......................................................90

Topic 1: Groups versus Teams .......................................................................................................91
Topic 2: Stages of Group Development ..........................................................................................94
Topic 3: Different Types of Groups and Teams ..............................................................................96
Topic 4: Creating Effective Teams ..................................................................................................99
Article: What is the Role of Teams and Teamwork in Organizations Today? ...................................102
Assessment/Activities .......................................................................................................................103
LESSON 7: Entrepreneurship Leadership, Sustainability, and Growth ....................................104

Topic 1: The Substantive Entrepreneurship Growth Capabilities ..................................................105
Topic 2: Organizational Process Support the Growth ...................................................................108
Topic 3: Entrepreneurial Motivation ..............................................................................................110
Article: We Need Innovation in Leadership, Here‘s How to Teach. ..................................................111
LESSON 8: Strategic Leadership .................................................................................................114

Topic 1: The Concept of Strategic Leadership ...............................................................................115
Topic 2: Strategic Leadership Theories .........................................................................................119
Topic 3: Need for a Combined Leadership Styles ..........................................................................121
Article: The World‘s Famous Strategic Leader .................................................................................123
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LESSON 9: The Role of Communication in Leadership Effectiveness .....................................125
Topic 1: Organizational Communication .......................................................................................126
Topic 2: Process of Organizational Communication......................................................................129
Topic 3: Key Principles of Leadership effectiveness .....................................................................130
Topic 4: Barriers to Effective Leadership .....................................................................................133
Case: Communication Failure...........................................................................................................134
GRADING SYSTEM
REFERENCES
OVERVIEW:
The students will be exposed to the concepts and theories about leadership at the individual
level and will have an opportunity to build and enhance their leadership skills. Draw from the idea that
entrepreneurial leadership is about engaging potential stakeholders at multiple emergent levels to
discover and create opportunities as a means of achieving an envisioned future. The course will begin
with a foundational knowledge of leadership theory, and then move into leadership practices and
processes that translate into entrepreneurial behavior. Most of this behavior involves thinking in a
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manner that is different from the status quo, and most of that thinking has to be reconceptualized and
articulated into a yet-unseen vision of the future; so, a great deal of entrepreneurship and leadership is
about selling your ideas to others. In this course, students will be able to equip marketable skills while
letting unleash their creativity and innovative ideas in the decision-making process.
Understanding about the concepts of entrepreneurship, leadership, and organization will create
an opportunity for entrepreneurship students to enhance their leadership competencies in leading
people in the organization and further help them to become innovative leaders. The course is about
foundational knowledge of leadership theories, practices, and processes that translate into
entrepreneurial behavior of an individual per se. Most of this behavior involves critical thinking in a
manner of making decisions and managing diverse group of people in the organization and bringing
out innovative ideas and unleashing creativity in exploring the world of entrepreneurship. According to
Chris Roebuck (2004), entrepreneurial leadership is about organizing a group of people to achieve a
common goal using proactive entrepreneurial behavior by optimizing risk, innovating to take
advantage of opportunities, taking personal responsibility and managing change within a dynamic
environment for the benefit of an organization.
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COURSE OUTCOMES:
After successfully completed this module, students will be able to:
Describe the importance of effective leadership in the success of an organization;
2Determine the relevant roles ofDSSSSAAA

an entrepreneurial leader in responding and adapting
organizational change;
Identify and describe major leadership theories and the researchers associated with
those theories;
Describe behaviors of effective leaders in a variety of situations;
Understand key principles in entrepreneurial leadership;
Analyze the personal, behavioral and situational factors in a leadership situation that
can lead to success or failure;
Recognize the significance of teams and groups in the achievement of the enterprise
stated goals and objectives;
Develop entrepreneurial leadership competencies and capabilities for growth and

sustainability of an enterprise;
Explain leadership strategies of an effective entrepreneurial leader in the organization;
Understand the importance of communication process in the achievement of

organizational goals and objectives; and
Develop an understanding on the key aspects of an effective succession planning

process to develop future leaders in the organizations
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Lesson 1
CONCEPTS OF ENTREPRENEURSHIP, LEADERSHIP, AND ORGANIZATION
OVERVIEW DSSSSAAA
The today‘s entrepreneurial leaders are individuals who, through an understanding of

themselves and the contexts in which they work, act on and shape opportunities that create value for
their organizations, their stakeholders, and the wider society. They are driven by their desire to
consider how to simultaneously create social, environmental, and economic opportunities. They are
also undiscouraged by a lack of resources or by high levels of uncertainty. Rather they tackle these
situations by taking action and experimenting with new real world solutions to old problems,
Entrepreneurial leadership is not synonymous with entrepreneurship. It is a new model of

leadership. Entrepreneurs, and the specific discipline of entrepreneurship, are often focused on new
venture creation. Entrepreneurial leaders, on the other hand, also pursue opportunities outside of
start-up ventures.
Learning Objectives:
1. Understand the concept of entrepreneurship, leadership and organization;
2. Explain the importance of being an effective leader in the achievement of organizational goals
and objectives;
3. Appreciate leadership in the context of entrepreneurship; and
4. Develop an understanding on the difference between leadership and entrepreneurial

leadership.
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COURSE MATERIALS:
Topic 1: THE CONCEPT OF ENTREPRNEURSHIP

 Entrepreneurship is a way of life and being an entrepreneur means different things to other
people, there is an agreement that we are talking a kind of behavior and mind-set that includes
initiative taking, the organizing and reorganizing of social and economic mechanisms to bundle
resources in innovative ways andDSSSSAAA
the acceptance of risks, uncertainty and/or the potential
failure (Shapero, 1975). It is important to note that successful entrepreneurs are often touted
as exceptional individuals; a rare breed who seem to have been born with unique hereditary
traits. But, the entrepreneurial mindset is most often acquired implicitly without conscious effort
or awareness, which may explain why it often appears to be a dispositional trait, even though it
is not. An entrepreneurial mindset can be developed and enhanced through entrepreneurial
experiences. And to cultivate the entrepreneurial mindset, we must create entrepreneurial
learning experiences within our classrooms, organizations, and communities.
 Entrepreneurs help bolster economic development and their enterprise becomes the backbone
of the economy because they create jobs, and invent products or services that can make the
world a better place. Being a successful entrepreneur requires outside-the-box thinking and
larger-than-life ideas. Anyone can come up with a new idea, but building a successful business
around it is the entrepreneurial challenge. The entrepreneurial mindset is unique in that one
must be creative, communicative, and highly motivated to succeed, yet open to risk and failure.
It is not a big idea alone that paves the path to ultimate entrepreneurial journey to success;
oftentimes, the success or failure of a business comes down to the characteristics of the
entrepreneur themselves. It takes a unique aggregate of characteristics to meld one big idea
into a fully-functional thriving business.
 Entrepreneurship can be defined as the capacity and willingness to develop organize and
manage a business venture along with any of its risks in order to make a profit. The most
obvious example of entrepreneurship is the starting of new businesses.
 An entrepreneur is an individual who takes initiative to bundle resources in innovative ways

and is willing to bear the risk and/or uncertainty to act. Being an entrepreneur today:
 Involves creation process.
 Requires devotion of time and effort.
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 Involves rewards of being an entrepreneur. Requires assumption of necessary

risks.
 An entrepreneur’s actions are the behavior in response to a judgmental decision under

uncertainty about a possible opportunity for profit while entrepreneurial mind-set involves the
ability to rapidly sense, act, and mobilize even under uncertain conditions.
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Types of Entrepreneurs and their Challenges
INNOVATORS are the types of entrepreneurs who come up with completely new ideas and turn
them into viable businesses. Innovative entrepreneurs also find new ways to market their products
by choosing PRODUCT DIFFERENTATION that makes their company stand out from the crowd.

HUSTLERS often start small and think about effort – as opposed to raising capital to grow their
businesses; focus on starting small with the goal of becoming bigger in the future. They are
 motivated by their dreams and will work extremely hard to achieve them. They tend to be very
focused and will get rid of all forms of distractions, favoring risks over short-term comfort.

IMITATORS are the types of entrepreneurs who copy certain business ideas and improve upon
 them. They are always looking for ways to make a particular product better so as to gain an upper
hand in the market.They are partly innovators and partly hustlers who don‘t stick to the terms set
 by other people and have a lot of self-confidence.
 nnovation RESEARCHER
management is ENTREPRENEURS
a combinationusually
of believe in starting a business
the management that has processes,
of innovation high chances
of succeeding because they have put in detailed work to understand all aspects.They take a lot of
time to launch
and change management. products
It refers to make business
to product, decisions because
process,they need the foundation of deep
marketing
understanding; rely much more on data and facts than instincts and intuition.

BUYER ENTREPRENEURS will identify a business and assess its viability, proceed to acquire it
and find the most suitable person to run and grow it.One thing that defines buyers is their wealth.
They have the money and specialize in buying promising businesses.
Topic 2: LEADERHIP IN ORGANIZATION

 Leadership may be defined as the act of influencing others to work toward a goal. Leaders
exist at all levels of an organization. Some leaders hold a position of authority and may use the
power that comes from their position, as well as their personal power, to influence others; they
are called formal leaders. In contrast, informal leaders are without a formal position of authority
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within the organization but demonstrate leadership by influencing others through personal
forms of power. One caveat is important here: Leaders do not rely on the use of force to
influence people. Instead, people willingly adopt the leader‘s goal as their own goal. If a person
is relying on force and punishment, the person is a dictator, not a leader.
 A leader cannot lead without an organization because organizations composed of individuals

or groups working together to achieve a common goal or purpose.
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 Enterprises to be able to achieve financial growth and maintain its competitive advantage,
entrepreneurs must be able to adapt effective leadership style. Most modern theories of
leadership identify that value-adding is best achieved through visioning and conducting
leadership in such a way as to promote ―buy in‖ from followers (Avolio and Bass 2002). This
resonates well with received wisdom about entrepreneurship, particularly with reference to
entrepreneurial vision, charismatic communication of that vision, and the ability to assemble
and manage resources, including knowledge and other human resources.
What Makes a Leader Effective?
 What distinguishes people who are perceived as leaders from those who are not perceived as
leaders? They are responsible for their teams‘ or company‘s success and failure. Company
business leaders are paid millions of dollars in salaries and stock options with the assumption
that they hold their company‘s future in their hands. In politics, education, sports, and profit and
nonprofit sectors, influence of leaders over the behaviors of individuals and organizations is
rarely questioned. When people and organizations fail, managers and business leaders are
often viewed as responsible. Some people criticize the assumption that leadership always
matters and call this belief ―the romance of leadership.‖ However, research evidence pointing
to the importance of leaders for organizational success is accumulating.
 As with most popular sayings, there is some truth in the adage, ―Great leaders are born, not
made.‖ To some extent, the capacity for great leadership is innate. However, learning how to
be a more effective leader is within everyone‘s grasp – whether you lead multiple teams, an
entire company or just one staff member. A good leader has to have a purpose that is larger
than she is and the balanced personality and skills to put that purpose into action. Qualities of
effective leader can be enumerated as follows:
 Passion. An effective leader is a person with a passion for a cause that is larger than
they are. Someone with a dream and a vision that will better society, or at least, some
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portion of it; without passion, a leader will not make the necessary courageous and
difficult decisions and carry them into action.
 Holder of Values. Leadership implies values. A leader must have values that are life-
giving to society. It is the only kind of leadership we need. This then also implies values
that are embedded in respect for others. Respect means also that one can deal with
diversity -- a critical need for a leader in today‘s world – probably always has been,
although diversity may have been more subtle in the homogenous societies of the past.
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 Vision. This is a bit different than passion, but in other ways it isn‘t separable. If one
doesn‘t care about a subject, an issue, a system, then one won‘t spend the time
thinking about how it could or should be different. Vision then is based on two
components that leaders also need: creativity and intellectual drive.A leader has to
have some ideas about change, about how the future could be different.
 Creativity. One has to try to think out of the box to have good visions and to come up
with effective strategies that will help advance the vision. I‘d also add here the need for
a sense of humor. It‘s a creative skill that is in great need by leaders.
 Intellectual Drive and Knowledge. A leader has to be a student. In general it is hard

for a leader to be around enough other leaders to pick this up just through discussion. A
leader must be a life-long learner to acquire relevant knowledge.
 Confidence and Humility Combined. No matter how creative and bright one is, often
the best ideas and thinking are going to come from someone else. A leader needs to be
able to identify that, have good people around who have these ideas. This takes
humility, or at least lack of egocentricity. The leader is focused on the ends and doesn‘t
have to see herself always as the conduit or creator of the strategy to get to that end.
 Communicator. A leader must have good communication skills to be able to speak or

write in a way to convince others that they should follow along, join the team, get on
board.
 Planner/Organizer. Someone who can see what needs to be done and help the team
plan and organize the getting it done. Management is getting things done through
people. While a writer or other visionary person may be very influential, even seminal
for the cause of change, this is not quite my definition of a leader. A leader means to
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me, someone who is taking action, trying to get others to do something they want to
see done.
 Interpersonal Skills. Leaders must have the ability to act in an interpersonally

competent manner, yet they also need to learn the techniques of good listening, honest
and open communication, delegating, conflict resolution skills, etc., to actually get work
done and keep the whole movement/organization/project together.
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Topic 3: ENTREPRENURIAL LEADERSHIP

 Enterprises to be able to achieve financial growth and maintain its competitive advantage,
entrepreneurs must be able to adapt effective leadership style. Most modern theories of
leadership identify that value-adding is best achieved through visioning and conducting
leadership in such a way as to promote ―buy in‖ from followers (Avolio and Bass 2002). This
resonates well with received wisdom about entrepreneurship, particularly with reference to
entrepreneurial vision, charismatic communication of that vision, and the ability to assemble
and manage resources, including knowledge and other human resources.
 Roebuck (2004) defines Entrepreneurial leadership as "organizing a group of people to

achieve a common goal using proactive entrepreneurial behavior by optimising risk, innovating
to take advantage of opportunities, taking personal responsibility and managing change within
a dynamic environment for the benefit of [an] organization". This kind of leadership aims to
cultivate entrepreneurial individuals and teams that fully leverage their creative potential in
creating value for an organization. Entrepreneurial leadership does this by employing
leadership practices that develop the ability in employees to self-generate, self-reflect, and
self-correct in their workplace.
 Entrepreneurial leadership is effectively using the skills associated with successful individual
entrepreneurs and applying those within the environment of a larger organization.[citation
needed] This especially means within an organization where those skills have been replaced
with a "corporate" mindset that focuses on process, systems and risk minimization rather than
on entrepreneurial behavior.
 Entrepreneurial people take advantage of opportunities to acquire added value and their
leadership skills play important roles in determining the growth rate of a small business. The
skills required include (1) seeing and clearly communicating a clear direction for the future, (2)
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leading and motivating others, recognizing shortcomings in the team and supplementing those
skills, and (4) having the business skills from an educational and experience viewpoint
(Eggers, Leahy, & Churchill, 1994). Over the years, several schools of thought on
entrepreneurship have been generated that combine psychological traits with
management/leadership skills. With respect to entrepreneurial activities, most important to
entrepreneurs are the following:
 Seeking opportunities that can create or add value and has commercial potential.
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 Needing to achieve set goals that motivate people in the organization and promote
entrepreneurial spirit.
 Being independent-minded in a sense that it can bring out innovative ideas and self-
learning.
 Taking risks but must be calculated risk because it minimizes negatives and maximize
positive outcomes.
 Innovating that drives organizational productivity and market success.
The Difference between Leadership and Entrepreneurship Leadership
 Leadership is one of the key concepts of management function. It is very crucial in the
organizational success and it can be exhibited by leaders in many various ways
depending on their leadership behavior and styles. Leadership can be defined as the
process of leading, directing, guiding, supervising, coaching, and motivating diverse
people in the organization to work enthusiastically to be be to achieve organizational
goals and objectives. Organizational leaders have self-confidence growing out of the
awareness of who they are and the visions that drive them to achieve (Zaleznik, 1990).
 The key leader characteristics help the leader acquire necessary skills, formulate an
organizational vision and an effective plan for pursuing it, and take the steps needed to
implement the vision into reality (Kirkpatrick and Locke, 1991). It is not necessarily the
individual possessing the most formal authority who is the leader in an organization, large or
small. The leader is anyone who exerts influence over others. Specific traits, characteristics,
and personal attributes that will predict superior performance in any given role, team, and
organization can be identified and defined.
 Entrepreneurial leadership on the other hand, is one can associate entrepreneurs with
leadership functions such as providing vision to the development of a new product, service, or
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organization. A leader has to be entrepreneurial as well. It has been written that

entrepreneurial leadership deals with concepts and ideas, and these are often related to
problems that are not of an organizational nature instead, they tend to be individual‘s
characteristics or behaviors. These include vision, problem solving, decision-making, risk
taking, and strategic initiatives.
 Vision. Only in the first decade of the 20th century has the role of vision in the strategic
management process and the possible relationship between vision and creativity,
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leadership, and entrepreneurship been given much attention. A vision is formulated by
explicitly identifying a domain for competitive behavior, a set of sources of competitive
strength, and a profile for resource capability. A vision implies a capability construct.
This capability construct is determined by many factors including managerial vision,
competence and capacity, logistic and technological profiles, as well as the financial
resource access of the firm. A good vision is realistic and feasible. It provides a
challenge for the whole organization and mirrors the goals of its constituents. Visions
may be killed by fear of mistakes, inability to tolerate ambiguity, and lack of challenge.
 Problem solving. Task-oriented leadership gets best results with purely technical, fact-
based problems. Consideration-oriented leadership copes more effectively with
emotional, personal, and interpersonal problems. Effective leadership must solve, or
face, problems quickly and forcefully, regardless of their nature.
 Decision-making. Managers are more likely to seek assistance from subordinates in

solving problems than when making decisions. As a general rule, whether leaders are
directive or supportive, they know they must make decisions that commit the
organization to critical actions. If a leader avoids this responsibility, subordinates will
poorly judge him or her and the organization will suffer accordingly.
 Risk taking. Balancing risk is a necessity of leadership. Leaders must weigh the
multitudinous factors involved, while understanding that no one can predict the future
with certainty. Inability to deal with uncertainty precludes an organization from
achieving its goals.
 Strategic initiatives. Leaders must have a vision and plan for beyond a year or two in
order to achieve long-term success (El-Namaki, 1992). Entrepreneurial leadership has
been coined by those who realize a change in leadership style is necessary in order for
businesses – large and small, to be competitive with the rest of the world.
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 Both leaders and entrepreneurial leaders have been studied relative to their traits, skills, and
behavioral characteristics. Numerous studies have been conducted in an attempt to define a
successful leader or entrepreneur (Welsh & White, 1983). The general agreement is that a
leader influences others toward the attainment of a vision and goals (Zaleznik, 1990; Stoner,
1995). A successful entrepreneur, likewise, influences those who can help achieve a desired
goal or vision, whether the entrepreneur is a banker or other financial lender or those who can
help to manufacture or distribute a product or service. Many also agree that leaders are
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visionary. They know what they want and where they want to go. They have a vision of their
goals (Locke & Kirkpatrick, 1995; Hajek, 1995). As Theodore Hesburg states that “the very
essence of leadership is that you have a vision; it’s got to be a vision you articulate clearly and
forcefully on every occasion”. Successful entrepreneurs also envision the need for a product or
service and how that product or service is to be provided.
 Leaders and entrepreneurial leaders are successful largely to the extent that they provide (1)
strategic leadership (vision and long-term goals); (2) problem-solving skills; (3) timely decision-
making; (4) a willingness to accept risks; and (5) good negotiating skills. ―Successful‖ is a key
adverb and a vital factor in this review. Clearly, many leaders and entrepreneurs fail.
Whenever possible, the behavioral characteristics shared by leaders and entrepreneurs that
lead to successful attainment of visions and goals.
Qualities of an Entrepreneurial Leader

 Good Communication Skills - An entrepreneurial leader should be able to clearly disseminate their
plans and ideas between departments and levels.
 Visionary - should have a clear vision on where he wants to go and how to help the organization get
there. They communicate their vision to the team and work together to make that vision a reality.
 Supportive - realize the importance of initiative and reactiveness. Leaders should also focus on
developing the strength of their team. Instead of punishing employees when their calculated risks
misfire, a leader should sit down with them and analyze what went wrong.
 Self-belief - should believe and have confidence in themselves from years of

experience from their failures and learning. They should be aware of their strengths and
weaknesses and be a model for their team. An Entrepreneurial Leaders should have a tolerance for risk.
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 Share Success - not take all the credit when the organization succeeds in something. They should
acknowledge the efforts of their teammates, too.
 Involved - spend time among their employees and monitor their work and personal challenges.
 Honest- an entrepreneurial leader can be seen as trustworthy by their employees.
 Persevere - they lead their team to keep going and keep striving. ―True entrepreneurs
simple don‘t quit, they keep going untilDSSSSAAA
they find what they‘re looking for.‖
 Learner - can able to create a learning environment not only for their own, but also for the whole
organization. They should encourage their team to improve their knowledge, expand their experiences,
and come up with creative solutions to problems.
 Innovative – entrepreneurial leader should take the lead in creating new things with value.
 Future-oriented - Because entrepreneurs are focused on moving forward, they are always looking
toward the future. Entrepreneurs are very goal-oriented and know exactly what they want. They set their
goals and everything they do is aimed at achieving those goals. Having a strong vision helps propel you
toward accomplishment. Consider setting a goal for yourself - a north star that can guide you on your
path to success.
 Passionate - Perhaps the most important characteristic for entrepreneurs, passion is essential to any
business owner or working professional's success. Without passion, there is no reason for your work
and no drive to do it. They love what they do and are extremely dedicated to the businesses they create.
To be successful, you must be confident in yourself and your business, and you must be proactive with
what you do and how you do it.
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Article:
WHY ACTIVE LISTENING IS A CRITICAL SKILL FOR FOUNDERS AND

ENTREPRENEURS
Despite what you might have heard inDSSSSAAA

professional circles, money does not make the world go ‗round.
What does make a difference, both in and out of the office, is good communication. It‘s this key component that
determines your strength and success in business. And what really makes your communication insanely
effective is active listening.
What is Active Listening?

Active listening basically means that, when you try to communicate, you stop trying to multitask. You
focus on what the other person says, rather than formulating what you‘re going to say and impatiently waiting
until they‘re done to respond. Your main goal is to pay attention, read between the lines and ensure that you
really understand what the other person has told you. It‘s only when you have a grasp of the shared information
that you can then formulate an appropriate answer and do something. So in this sense, active listening is a great
example of a strategy that incorporates John Boyd‘s famous OODA loop for decision-making, wherein you
Observe, Orient, Decide and then Act. Listening to the words someone else says to you is only one part of active
listening. You also have to pay attention to elements like non-verbal cues (e.g., facial expressions, posture).
Those cues tell you an enormous amount about what someone really feels, thinks or needs, and so they help
you get a better sense of the big picture and come up with a more thoughtful, rational answer.
Asking questions is also an essential part of active listening. It shows your conversation partner that you
are interested in what they have to say and actually want the conversation to keep going. It also offers a way for
you to get clarification or access details. If both people who are communicating do active listening properly, then
it‘s much easier to achieve their meaning. But in normal conversation, you‘ll constantly flow between the listener
and speaker roles. And it goes both ways in that when you are the speaker, you must take ownership of your
communication and find another way to get your point across if your active listener doesn‘t understand.
Why is active listening so important for leaders?
No matter your industry or company mission, as a leader, everything you do ultimately relies on the
interpersonal relationships you form with your team, stakeholders, customers and others. Without active
listening, these relationships are much harder to develop, because you might not understand the problems at
hand or be able to acknowledge them in a positive, reassuring way. Lack of understanding also translates to
difficulty digging down into an issue and cooperatively brainstorming for and developing innovative solutions. All
of these things can make others question whether you‘re really qualified to be at the top and, in the worst-case
scenario, lead to problems like insubordination, low morale, poor productivity and atrocious retention rates. In
the end, this slashes your ability to compete and keep the doors of your company open. Conversely, good
active listening produces informed, willing people who know what to do and why they‘re doing it. They can work
together harmoniously for common goals and move your company in the direction you want it to go, all while
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feeling more respected, included and valuable. High productivity is thus a surefire sign that good active listening
is happening with your team.
Genuine interest makes active listening easy

Active listening is just like any other skill in that it takes practice to get it right. Strategies like finding a
distraction-free area for your conversation, jotting down a note or two and making good eye contact can all help
you stay present in the moment and take in the speaker‘s information better. But perhaps the biggest tip for
good active listening is simply trying to be genuinely interested in what the other person is saying. This can
involve personal intrigue about the topic. But DSSSSAAA
because everyone is different, and because most of us will likely
find certain business subjects like expense reports a little dull, interest can also come from basic respect of the
other person‘s value as a human being and contributor. The more genuinely interested you are, and the more
you connect to the speaker‘s larger purpose, the less you have to ―fake it,‖ and the more naturally you can pay
attention and analyze their information properly.
Communication is an integral part of everything we do — at work and beyond. And to successfully
communicate, we must actively listen. As a leader, it makes the difference between success and failure, which is
why practicing active listening and honing it until it‘s second nature is so important. Active listening isn‘t just a
vital tool in a leader‘s toolbox — it‘s a vital tool for anyone! And if you find yourself actively listening and
encouraging your employees to do the same, you‘ll soon find work operations from end to end progressing more
smoothly than they ever have before.
Activities/Assessments:
1. Name at least 5 entrepreneurial leaders in our country. Describe their entrepreneurial

traits and characteristics to make them successful.
2. How do organizations achieve their stated goals and objectives? Briefly explain your
answer.
3. Explain to what extent leaders and entrepreneurial leaders distinct with each other?
Cite an example to justify your answer.
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Lesson 2
LEADERSHIP THEORIES AND MODELS
OVERVIEW
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Leadership is an important element of management and very crucial in running an enterprise.
The ability to lead effectively is a manifestation of a good manager. But a good leader should be
capable to undertake adequately the functions and responsibilities assigned to him, especially in
achieving the stated organizational goals and objectives. The task is quite burdensome, but this is not
impossible for a truly passionate and devoted leader. A good and an effective leader must be able to
combine efficiently and productively available resources of an enterprise to successful undertake
entrepreneurial endeavour. Leadership is defined as the art or process of influencing people to make
them strive willingly and fully toward achieving organizational goals and objectives. Employees must
have that arduous willingness and confidence to perform their work with intensity and to attain
confidence in their job, besides, for them to be instrumental; they should have the relevant experience
and must possess the required technical capabilities.
There are many different kinds of leaders; therefore there are no ‗set‘ qualities that have to be
present in all leaders. Rather an effective leader draws from a range of personal qualities to help them
deal with different circumstances and challenges. Part of growing strong as a leader is through
expanding our personal qualities. When we are not strong in a particular quality it is also wise to seek
the contributions of others who are strong in that quality. This asks for a complementary team. The
well-organised person can help to complement the creative person, and the person with the sense of
humour can complement the serious minded person.
1. Recognize the importance of leadership in organization and identify its types;
2. Explain the distinction between leadership and management in the organization; and
3. Compare and Contrast different leadership approaches and models leaders exhibit in
guiding people in the organization.
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COURSE MATERIALS:
Topic 1: LEADERSHIP AND ITS TYPES
 There are almost as many definitions of leadership as there are persons who have
attempted to define the concept. Leadership has been defined in terms of traits,
behaviors, influences, interaction patterns, role relationships, and occupation of a
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position. The following statements are examples of definitions of leadership from some
of the well-known writers and researchers in the field of leadership:
 Leadership is a “particular type of power relationship characterized by a group member’s

perception that another group member has the right to prescribe behavior patterns for the former
regarding his activity as a group member” (Janda, 1960).
 Leadership is “interpersonal influence, exercised in a situation, and directed, through the

communication process, toward the attainment of a specified goal or goals” (Tannenbaum,
Weschler, & Massarik, 1961).
 Leadership is “an interaction between persons in which one presents information of a sort and in
such a manner that the other becomes convinced that his outcomes … will be improved if he
behaves in the manner suggested or desired” (Jacobs, 1970).
 Leadership is “the initiation and maintenance of structure in expectation and interaction”

(Stogdill, 1974).
 Leadership is “the relationship in which one person, the leader, influences others to work
together willingly on related tasks to attain that which the leader desires” (Terry, 1977).
 Leadership is “the influential increment over and above mechanical compliance with the routine
directives of the organization” (Katz & Kahn, 1978).
 According to Bray, Campbell and Grant, leadership is the “effectiveness in getting ideas
accepted and in guiding a group or an individual to accomplish a task” (Morris, 1979).
 Koontz and O’Donnell define leadership as “the art or process of influencing people so that they
will strive willingly towards the achievement of group goals” (Koontz et. al., 1984).
 Leadership is an interaction between members of a group. Leaders are agents of change,

persons whose acts affect other people more than other people’s acts affect them (Bass, 1985).
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 “… interpersonal influence exercised in a situation and directed, through the communication

process, toward the attainment of a specialized goal or goals” (Hersey and Blanchard, 1982).
 Leadership is the process of defining current situations and articulating goals for the future;
making the decisions necessary to resolve the situation or achieve the goals; and gaining the
commitment from those who have to implement these decisions (Brache, 1983).
 Leadership is “the process of influencing the activities of an organized group toward goal
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achievement” (Rauch & Behling, 1984).
 As can be seen from the definitions reflected above, most definitions of leadership
reflect the assumption that leadership involves a process whereby one person exerts
intentional influence over other people to guide, structure, and facilitate activities and
relationships in a group or organization. Most conceptions of leadership imply that at
various times one or more group members can be identified as a leader according to
some observable difference between the person(s) and other members, who are
referred to as ―followers‖ or ―subordinates‖. The definitions of leadership as a
phenomenon involve the interaction between two or more persons. In addition, most
definitions of leadership reflect the assumption that leadership involves an influencing
process whereby intentional influence is exerted by the leader over followers.
Types of Leaders
 Several researches made on leadership, identified some characteristics essential in

producing effective leaders. These have provided a framework for an entrepreneurial
leader‘s approach towards leading the organization which has resulted in the
consideration of the following leadership styles:
a. Democratic Leadership. This type of leadership style relies not only on manager‘s
decisions and ideas but also those contributed by subordinates. Subordinates under
this system are allowed and encouraged to participate in planning, decision-making
and organizing. This style of leadership has resulted to the development of a
cooperative spirit between subordinates and managers. This has provided opportunity
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for subordinates to hone their managerial skills. The satisfaction of the leader is
basically centered on what his group has accomplished.
b. Autocratic Leadership. This promotes authority and subordinates are compelled to

rely on their leader for their satisfaction. The success and failure of leadership is highly
contingent on the exceptional strength of the leader which makes subordinates pay
respect and take allegiance. The DSSSSAAA
satisfaction of subordinations relies entirely on the
goodwill of their leader. Basically decisions are made without subordinates‘
participation thus deprive them the chance to develop their leadership skills.
c. Paternalistic Leadership. The leader consults no one whenever policies, plans and
decisions are formulated for the best interest of the whole organization. Subordinates‘
role are merely to implement policies, plans and programs of the organization without
hesitations.
d. Leissez-Faire Leadership. This is another style of leadership wherein employees

are provided material incentives as a way to increase their productivity and make them
more participative. Specifically, employees and executives alike are extended
incentives in the form of:
 Money, security, achievement recognition, promotion, etc. that may serve as reward or
incentives. It is therefore the task of the manager to use any of these incentives which he thinks
appropriate to motivate employees to improve their performance and efficiency.
 Equally important as factors of employees’ motivation are the atmosphere in the work
environment and the kind of rapport management has with employees.
 According to Gratton (2007), the new leadership agenda is based on enabling people
to work skillfully and cooperatively within and across the boundaries of the company.
Leaders must ignite energy and excitement through asking inspiring questions or
creating a powerful vision of the future. The challenge for leaders is that such
conditions are emergent rather than controlled and directed. The old leadership rules
of command and control have little effect. Leadership has been regarded for so mnay
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organizations as the process of influencing others so that they understand and agree
about what actions can be taken, how the actions can be executed effectively, and how
to inspire individual and team efforts to accomplish shared objectives (Kouzes and
Postner, 2002) but there is much consideration and difference in executing
management and leadership style in the organization. According to Bennis and Nanus
(1985) the main difference is that ―managers are people who do things right and
leaders are people who do the right thing.‖ In the following section the difference
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between leadership and management will be discussed in greater detail.
Topic 2: LEADERSHIP VERSUS MANAGEMENT

 Management can be defined as the process of planning, organizing, staffing, directing, and
coordinating of all the activities of the organization to effectively and efficiently attain the stated
organizational goals and objectives.
 Scholars such as Bass (1990), Hickman (1990), Kotter (1988), Mintzberg (1973) and
Rost (1991) view leading and managing as distinct processes, but they do not assume
that leaders and managers are different types of people. However, these scholars
differ somewhat in how they define the two processes. Mintzberg (1973) developed a
list of ten managerial roles to be observed in his study of executives. The ten roles
account for all of management activities, and each activity can be explained in terms of
at least one role, although many activities involve more than one role. Three roles deal
with the interpersonal behavior of managers (leader, liaison, and figurehead); three
roles deal with information-processing behavior (monitor, disseminator, and
spokesman) and four roles deal with decision making behaviour (entrepreneur, conflict
solver, resource allocator, and negotiator). Based on the finding of his research,
Mintzberg (1973) reached the conclusion that the roles of a manager are largely
predetermined by the nature of the managerial position, but that managers do have
flexibility in the way each role is interpreted and enacted.
 Kotter (1990) differentiated between management and leadership in terms of the core
processes and intended outcomes. According to Kotter (1990) management seeks to
produce predictability and order by:
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 Setting operational goals, establishing action plans with timetables, and allocating resources;
 Organizing and staffing e.g. establishing structure, assigning resources and tasks; and
 Monitoring results and solving problems.
Leadership seeks to produce organizational change by:

 Developing a vision of the future and strategies for making necessary changes;
 Communicating and explaining the vision, and
 Motivating and inspiring people to attain the vision.
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 Management and leadership are both involved in creating networks or relationships in

order to facilitate the taking of action. However, the two processes have some
incompatible elements. Strong leadership can disrupt order and efficiency and too
strong a focus on management can discourage risk-taking and innovation. According
to Kotter (1990), both processes are necessary for the success of an organization.
 Effective management on its own can create a bureaucracy without purpose, while
effective leadership on its own can create change that is impractical. The relative
importance of the two processes and the best way to integrate them depend on the
situation that prevails. Rost (1991) describes management as a relationship based on
authority that exists between managers and subordinates in order to produce and sell
goods and services. He defined leadership as a relationship based on influence
between a leader and followers with the mutual purpose of accomplishing real change.
 Leaders and followers influence each other as they interact in non-coercive ways to
decide what changes they wish to make. Managers may be leaders, but only if they
succeed to build a relationship based on influence with their followers; the ability to
lead is not necessary for a manager to be effective in producing and selling goods and
services. However, even when authority is a sufficient basis for downward influence
over subordinates, good relationships is necessary for influencing people over whom
the leader has no authority, e.g. peers. In organizations where change has become a
constant part of the business environment, good relationships based on influence with
subordinates seems necessary. The following table provides a comprehensive
summary of the views and research findings of leading writers and researchers in this
field.
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Management versus Leadership
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**Image from the book The New Entrepreneurial Leader by Greenber, et.al, 2011
 Management and leadership deliver different outcomes. Management produces

stability, predictability, order, and efficiency. Good management therefore helps the
organization consistently achieve short-term results and meets the expectations of
various stakeholders. Leadership, on the other hand, leads to change, often to a
dramatic degree. Leadership means questioning and challenging the status quo, so
that outdated or unproductive norms can be replaced to meets new challenges. Good
leadership can lead to extremely valuable change, such as new products or services
that gain new customers or expand markets. According to Kotter (1996), good
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management is required in order to help organizations meet current commitments, but

good leadership is required in order to move the organization into the future. For much
of the 20th century, good management has often been enough to keep organizations
successful, but in the changing business environment of the 21 st century, organizations
can no longer rely on traditional management practices only to remain successful.
Good leadership is a critical success factor for organizations to remain successful.
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Topic 3: DIFFERENT LEADERSHIP THEORIES AND MODELS

 There are various leadership theories and models that explain and interpret the
leader‘s behavior and effectiveness to lead organization and motivate people to work
enthusiastically for the purpose of achieving the stated goals and objectives of an
enterprise. Different leadership approaches and models namely trait, behavioral, and
integrative leadership theories will be further discussed and put into details in the
succeeding discussions.
Trait Theories of Leadership. The kind of traits studied in trait theories of leadership include
personality, ability, motivation, power and needs. A trait can be defined as an inherent characteristic
of a person while a competency can be defined as ability of capability of a person to do something
(Geddes & Grosset, 1998). In the earlier leadership theories the focus seems to be more on the
inherent traits of leaders while the focus of the more recent leadership theories seems to be more on
leadership competencies and behavior. A possible reason for this shift in focus may be because
competencies and behavior can change over the period of time and can therefore be developed while
inherent traits of a person are difficult to change.
The following motivation theories are related to Trait Theory of Leadership:
 Achievement Motivation Theory. This theory of David McClellan attempts to explain

and predict behavior and performance based on a person‘s need for achievement,
power and affiliation. David McClelland originally developed his Achievement
Motivation Theory in the 1940s. He believes that everybody has needs, and that our
needs motivate us to satisfy them. Our behavior is therefore motivated by our needs.
He further states that needs are based on personality, and are developed as we
interact with the environment. All people experience the need for achievement, power,
and affiliation, but to different degrees.
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One of these three needs (achievement, power and affiliations) tends to be dominant
in each of us, and motivates our behavior. McClelland‘s needs can be illustrated as
follows:
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 Theory X and Theory Y. Douglas McGregor (1966) classified attitudes or belief

systems, which he called assumptions, as Theory X and Theory Y. Theory X and
Theory Y explain and predict leadership behavior and performance based upon the
leader‘s attitude toward followers. Those with Theory X attitudes believe that
employees dislike work and must be closely supervised in order to carry out tasks.
Theory Y attitudes believe that employees like to work and do not need to be closely
supervised in order to carry out tasks (McGregor, 1966).
 Trait theory of leadership is one of the first academic theories of leadership and attempts to
answer why some people are good leaders and others are not. It is based on the
characteristics of many leaders – both successful and unsuccessful – and is used to predict
leadership effectiveness. The resulting lists of traits are then compared to those of potential
leaders to assess their likelihood of success or failure. Once found, the theory is that these
natural leaders can then be nurtured to become great leaders. Some key characteristics of trait
theory of leadership can be illustrated below:
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 Other researchers proposed also other characteristics of an effective leader in relation to trait
theory of leadership. According to Stogdill (1981), the trait profile reflected in the table below is
characteristic of successful leaders:
Behavioral Leadership Theories. This theory of leadership is a big bound from Trait Theory in a
sense that in that it assumes that leadership capability can be learned, rather than being inherent. This
theory is based on the principle that behaviors can be conditioned in a manner that one can have a
specific response to specific drive or stimuli. According to the behavioral approach to leadership,
anyone who adopts the appropriate behavior can be a good leader. Researchers on leadership
behavior who followed the behavior approach to leadership, attempted to uncover the behaviors in
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which leaders engage, rather than what traits a leader possesses. The following theories are relatively
discussed in relation with behavioral leadership theories.
 Leadership Style Theory of Kurt Lewin. His associates conducted studies at Iowa
State University that concentrated on leadership styles (Lewin, Lippett & White, 1939).
They identified the following two basic leadership styles in their studies: − Autocratic
and Democratic leadership style The autocratic leader makes the decisions, tells
employees what to do and closely supervises workers while the democratic leader
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decisions, works with employees to determine what to do
and does not closely supervise employees. According to Likert (1967), the first studies
on leadership behavior conducted at Iowa State University by Kurt Lewin and his
associates, their findings implied that leaders were either autocratic or democratic in
their approach. However, work done by Tannenbaum and Schmidt (1969) indicated
that leadership behaviour could exist on a continuum reflecting different degrees of
employee participation. One leader might be autocratic (boss-centred), another
democratic (subordinate) centred and a third, a combination of the two styles.
 Ohio State University Leadership Theory. Researchers at Ohio State University

identified through their research two categories of leader-behavior types, called
consideration and initiating structure (Nystrom, 1978). According to Nystrom
(1978), the categories of consideration and initiating structure can be described as
follows: Consideration describes the extent to which a leader is sensitive to
subordinates, respects their ideas and feelings, and establishes mutual trust. Showing
appreciation, listening carefully to problems and seeking input from subordinates about
important decisions, are all examples of consideration. Initiating structure describes the
extent to which a leader is task-oriented and directs subordinates‘ work activities
toward goal-achievement. This type of leadership behavior includes directing the
performance of subordinates to work very hard, providing clear guidelines for work
activities and maintaining rigorous control. These behavioral categories are
independent of each other. In other words, a leader can display a high degree of both
behavior types, and a low degree of both behavior types. Additionally, a leader might
demonstrate high consideration and low initiating structure, or low consideration and
high initiating structure behavior.
 University of Michigan Leadership Theory. Studies at the University of Michigan

compared the behavior of effective and ineffective supervisors (Likert, 1967). Over
time, the Michigan researchers established that employee-centered leaders display a
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focus on the human needs of their subordinates. Leader support and interaction are
the two underlying dimensions of employee-centered behavior (Bowers & Seashore,
1966). The significance of this is that, in addition to demonstrating support for their
subordinates, employee-centered leaders facilitate positive interaction among followers
and seek to minimize conflict. The employee-centered style of leadership seems to
roughly correspond to the Ohio. The focus of the Michigan research was the
identification of the relationship between leadership behavior, group processes, and
measures of group performance. Information about managerial behavior was gathered
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by means of interviews and questionnaires. Objective measures of group productivity
were used in order to classify managers as relatively effective or ineffective. The
results of this research were captured by Likert (1961, 1967), and are summarized
below:
 Task-orientated Behavior: Effective leaders did not spend their time and effort doing
the same kind of work as their subordinates. Instead, the more effective leaders
concentrated on task-oriented functions such as the planning and scheduling of the
work, coordinating subordinate activities, and arranging the provisioning of the
necessary resources, equipment and technical assistance. Effective managers also
guided subordinates in setting performance goals that were challenging but attainable.
The task-oriented behaviors identified in the Michigan studies appear similar to the
behaviors labeled ―initiating structure‖ in the Ohio State leadership studies.
 Relations-oriented Behavior: In the case of effective leaders, task-oriented behavior

did not occur at the expense of concern for human relations. The effective leaders were
also more supportive of, and helpful to, subordinates. Supportive behaviors which
correlated with effective leadership included showing trust and confidence, acting in a
friendly manner showing consideration, attempting to understand subordinates‘
problems, helping to develop subordinates to further their careers, keeping
subordinates informed, showing appreciation for subordinates‘ ideas and providing
recognition for subordinates' contributions and accomplishments. These behaviors
appear to be similar to the behaviors labeled ―consideration‖ in the Ohio State
leadership studies.
 Participative Leadership: Effective managers preferred more group supervision

instead of supervising each subordinate separately. Group meetings facilitate
subordinate participation, decision-making, improve communication, promote
cooperation, and facilitate conflict resolution. The role of the manger in group meetings
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should primarily be to guide the discussion and keep it supportive, constructive, and
oriented toward problem solving. Participative management however, does not imply
abdication of responsibilities, and the manager remains responsible for all decisions as
well as the consequences.
 Shared Leadership: Bowers and Seashore (1966) extended the scope of leadership
behavior by suggesting that most leadership functions can be carried out by someone
apart from the designated leader of a group. A manager may at times request
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subordinates to share in the performance of certain leadership functions, and
subordinates may at times perform these functions on their own initiative. Group
effectiveness will depend more on the overall quality of leadership within a work unit
than on which individual actually performs the functions. However, the possibility of
shared leadership does not imply that it is not necessary to have a designated leader.
Leadership Grid Theory. Robert Blake and Jane Mouton developed a two-dimensional leadership
theory called “Managerial Grid Model‖ that builds on the work of the Ohio State and the Michigan
studies (Blake & Mouton, 1985). Researchers rated leaders on a scale of one to nine, according to the
following two criteria: concern for people and concern for results. The scores for these criteria were
plotted on a grid with an axis for each criterion. The two-dimensional leadership model and five major
leadership styles are reflected in figure 1 below:
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 Team management (9, 9) is often considered the most effective style because employees are
encouraged to work together to accomplish tasks.
 Country club management (1, 9) occurs when the most emphasis is placed on people rather than on
achieving results.
 Authority-compliance management (9, 1) occurs when operational efficiency is the main focus.
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 Middle-of-the-road management (5, 5) reflects a moderate degree of concern for both people and
productivity.
 Impoverished management (1, 1) indicates that little effort is made in terms of both interpersonal
relationships and work accomplishment.
Contingency Leadership Theories. Fred Fiedler‘s Contingency Leadership Theory In 1951,

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Fiedler began to develop the first contingency leadership theory. It was the first theory to focus on how
situational variables interact with leader personality and behavior. Fiedler called his theory
―Contingency Theory of Leader Effectiveness,‖ (House & Aditya, 1997). Fiedler believed that
leadership style is a reflection of personality (trait-theory orientated) as well as behavior (behavioral-
theory orientated), and that leadership styles are basically constant. Leaders do not change styles,
they change the situation. The contingency leadership model is used to determine whether a person‘s
leadership style is task or relationship orientated, and if the situation matches the leader‘s style to
maximize performance (House & Aditya, 1997). Fiedler teamed up with J.E. Garcia to develop the
Cognitive Resources Theory based on the Contingency Leadership Theory (Fiedler & Garcia, 1987).
The Cognitive Resources Theory (CRT) is a person-by-situation interaction theory, in which the
person variables are intelligence and experience of leaders. Some scholars consider Fiedler‘s
Contingency Leadership Theory and Cognitive Resources Theory the most validated of all leadership.
 Leadership Continuum Theory and Model. Robert Tannenbaum and Warren

Schmidt also developed a contingency theory in the 1950‘s. They concluded that
leadership behavior is on a continuum from boss-centered to subordinate-centered
leadership. Their model focuses on who makes the decisions. They identified seven
major styles from which the leader can choose. The leadership continuum model is
used to determine which one of the seven styles should be selected to suit the
situation in order to maximize performance. According to them, the leader must
consider the following three forces or variables before choosing the best leadership
style for a particular situation:
 Supervisor. The leader‘s personality and preferred behavioral style, expectation,

values, background, knowledge, feeling of security and confidence in the subordinates
should be considered in selecting a leadership style. Based on personality and
behavior, some leaders tend to be more autocratic and others more participative.
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 Subordinates. The leadership style preferred by followers is based on personality and

behavior. Generally, the more willing and able the followers are to participate, the more
freedom of participation should be used, and vice versa.
 Situation (Environment). The environmental considerations, such as the organization

size, structure, climate, goals and technology, are taken into consideration when
selecting a leadership style. Managers on higher levels also influence leadership styles.
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a. Path-goal Leadership Theory. This theory was developed by Robert House, based on an
early version of the theory by M.G. Evans, and published in 1971. House formulated a more
elaborate version of Evans‘s theory, which included situational variables. House‘s theory
specified a number of situational moderators of relationships between task and person-
orientated leadership and their impact (House & Aditya, 1997). House attempted to explain
how the behavior of a leader influences the performance and satisfaction of the followers. The
Path-goal Leadership Model can be used to identify the most appropriate leadership style for a
specific situation to maximize both performance and job satisfaction. According to this theory,
the leader is responsible for increasing followers‘ motivation to attain personal and
organizational goals. Motivation consists of the following factors:
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Situational factors:
 Authoritarianism is the degree to which employees prefer to, and want to, be told what
to do and how to do a job.
 Locus of control is the extent to which employees believe they have control over goal
achievement (internal locus of control), or goal achievement is controlled by others
(external locus of control)
 Ability is the extent of the employees‘ ability to perform tasks to achieve goals.
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Environment factors:
 Task structure, i.e. the extent of the repetitiveness of the job.

 Formal authority, i.e. the extent of the leader‘s position power.
 Work group, i.e. the relationship between followers.
Leadership styles:
 Directive – the leader provides a high degree of structure. Directive leadership is appropriate
when the followers prefer autocratic leadership, have an external locus of control, and the skills
levels of the followers are low. Directive leadership is also appropriate when the task to be
completed is complex or ambiguous and followers are inexperienced.
 Supportive – the leader exercises a high degree of consideration. Supportive leadership is

appropriate when the followers do not desire autocratic leadership, when they have an internal
locus of control, and when follower‘s skills levels are high. Supportive leadership is also
appropriate when the tasks are simple and followers have a lot of experience.
 Participative – the leader encourages and allows followers‘ input into decision-making.
Participative leadership is appropriate when followers wish to be involved, when they have an
internal locus of control and when their skills levels are high. Participative leadership is also
appropriate when the task is complex and followers have a lot of experience.
 Achievement-orientated – the leader sets difficult but achievable goals, expects followers to
perform at their highest level and rewards them for doing so. In essence, the leader provides
both strong direction (structure) and a high level of support (consideration).
b. Normative Leadership Theory An important leadership question is, ―When should the
manager take charge, and when should the manager let the group make the decision?‖ Victor
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Vroom and Phillip Yetton published a decision-making model with the aim of improving
decision-making effectiveness. They identified five leadership styles as illustrated below:
Normative Decision Models
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c. Situational Leadership Model. This model was developed by Paul Hersey and Ken
Blanchard (1977). Unlike the other contingency theories, situational leadership is not called a
theory by its authors, since it does not attempt to explain why things happen; the primary
contingency variable of situational leadership is the maturity level of the follower. Like the
Path-goal Theory, situational leadership does not have a leader variable, and the situational
variable (task) is included within the follower variable because it is closely related to follower
maturity. Task is therefore not included within the model as a separate variable. The
situational leadership theory is used to determine which of four leadership styles (telling,
selling, participating, and delegating) matches the situation (followers‘ maturity level to
complete a specific task) to maximize performance.
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Situational Leadership Model
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According to Hersey and Blanchard (1977) the maturity levels of followers can be matched to the most
suitable leadership style in the following way:
Integrative Leadership Theories. This is an emerging leadership approach that fosters collective
action across many types of boundaries in order to achieve the common good. It brings together
leadership concepts and practice rooted in five major sectors of society namely business, government,
nonprofits, media, and community. It focuses on leadership development at all levels, from individual
to global. This kind of leadership is shared leadership — of public, private and non-profit actors or
approaches to primarily address complex and significant issues that cannot be effectively addressed
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by a single person, entity, sector, method, form or technique. The following leadership theories can be
classified on this particular theory:
a. Charismatic Leadership Theory. Weber (1947) used the term charisma to explain a form of
influence based on follower perceptions that the leader is endowed with the gift of divine
inspiration or supernatural qualities (Weber, 1947). Charisma can be seen as a fire that ignites
followers‘ energy and commitment, producing results above and beyond the call of duty (Klein
& House, 1995). Charisma can be described as the influencing of followers resulting in major
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changes in their attitudes, assumptions
charismatic leaders are more likely to come forward as leaders during times of great social
crisis. They are often instrumental in focusing society‘s attention to the problem it faces by
means of a radical vision that provides a solution. House (1977) expanded this theory in terms
of a set of verifiable propositions involving observable processes. The theory identifies how
charismatic leaders behave, how they differ from other people as well as the conditions under
which they are most likely to thrive. The inclusion of leadership traits, behavior, and situational
factors, makes this theory more comprehensive in scope than most other leadership theories.
According to House, the following indicators determine the extent to which a leader is
charismatic:
 Followers’ trust in the correctness of the leader’s beliefs

 Similarity of followers’ beliefs to those of the leader
 Unquestioning acceptance of the leader by followers
 Followers’ affection for the leader
 Willing obedience to the leader by followers
 Emotional involvement of followers in the mission of the organization
 Heightened commitment of followers to performance goals
 Followers believe that they are able to contribute to the success of the group’s mission
b. Theory of Transformational Leadership. According to Burns (1978, transformational

leadership as a process in which ―leaders and followers raise one another to higher levels of
morality and motivation.‖ Transformational leaders appeal to higher ideals and moral values of
followers such as liberty, justice, equality, peace and humanitarianism. In terms of Maslow‘s
(1954) needs hierarchy theory, transformational leaders activate higher-order needs in
followers. Followers are elevated from their ―everyday selves to their better selves‖. It may be
exhibited by anyone in an organization in any type of position. Bass (1985) defines
transformational leadership primarily in terms of the leader‘s impact on followers. Followers
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trust, admire and respect the leader, and they are therefore motivated to do more than what
was originally expected. According to him, a leader can transform followers by:
 Making them more aware of the importance and value of task outcomes.
 Inducing them to transcend their own self-interest for the sake of the team.
 Activating their higher-order needs.
Bass (1985) views transformational leadership as more than just another term for
charisma– ―it is a necessary ingredient of DSSSSAAA
transformational leadership, but by itself it is not sufficient to
account for the transformational process.‖ Research done by Tichy and Devanna (1986) indicated that
effective transformational leaders have the following competencies:
 They see themselves as risk-takers;
 They are prudent risk-takers;
 They believe in people and are sensitive to their needs;
 They have a set of clear core values which guide their behavior;
 They are flexible and open to learn from experience;
 They possess strong cognitive skills and believe in disciplined thinking; and
 They are visionaries who trust their intuition.
c. Theory of Servant-leadership. This leadership theory is an employee-focused form of

leadership which empowers followers to make decisions and keep control of their jobs.
Servant-leadership is leadership that transcends self-interest in order to serve the needs of
others, by helping them grow professionally and emotionally (Daft, 1999). The focus of
servant-leadership is on empowering followers to exercise leadership in accomplishing the
organization‘s goals. Traditional leadership theories emphasize the leader-follower structure,
in which the follower accepts responsibility from the leader and is accountable to the leader.
The non-traditional view of leadership however, views the leader as a steward and servant of
the employees and the organization. It is less about direction or controlling and more about
focusing on helping followers do their jobs, rather than to have followers help the managers do
their jobs (Greenleaf, 1997). Servant-leadership requires a relationship between leaders and
followers in which leaders lead without dominating or controlling followers. Leaders and
followers work together in a mutually supportive environment in order to achieve
organizational goals. According to Greenleaf (1997) the key to servant-leadership is based on
the following four supporting values:
 Strong teamwork orientation – servant-leadership works best in situations where self-managed

teams of employees and leaders work together in formulating goals and strategies to deal with a
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changing environment and marketplace. The leader‘s role is less dominant and more supportive
of the process.
 Decentralized decision-making and power – this is evident when authority and decision-making
are decentralized down to where the work gets done and employees interact with customers.
 Equality assumption – works best when there is perceived equality between leaders
and followers. It is a partnership of equals rather than a leader-follower command
structure. The applicabilityDSSSSAAA
of servant-leadership is enhanced as leaders find
opportunities to serve rather than manage. Honesty, respect and mutual trust will
be evident when equality prevails. These are values that enhance the success of
stewardship.
 Reward assumption – servant-leadership places greater responsibility in the hands of

employees. Servant-leaders are known not for their great deeds, but for empowering others to
achieve great deeds. Servant-leaders offer the best chance for organizations to succeed and
grow in today‘s dynamic environment because these leaders do not only lead, but also coach
followers to do the leading. The strong focus on people is what encourages followers to be more
creative, energetic, and committed to their jobs.
The hallmark of servant-leadership is the desire to help others, rather than the
desire to attain power and control over others (service over sel-interest). Doing what‘s right for others
takes precedence over self interest. Servant-leaders make decisions to further the good
of the group rather than promote their own interests. According to Spears (2002), the following ten
(10) competencies are critical for servant leadership:
1. Listening– the servant-leader seeks to identify the will of a group and to help clarify that will.
2. Empathy–the servant-leader strives to understand others and empathize with them.
3. Healing–servant-leaders recognize that they have an opportunity to help those with problems, with
whom they come into contact. They help them to heal and become “whole” again since many people
experience personal problems;
4. Awareness –have a high level of awareness, especially self-awareness.
5. Persuasion – rely on persuasion, rather than positional power in the making of decisions.
6. Conceptualization –the ability to think beyond day-to-day realities.
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7. Foresight – enables servant-leaders to understand the lessons from the past, the realities of the present
and the likely consequence of a decision for the future.
8. Stewardship –committed to serve the needs of others.
9. Commitment to the growth of people –believe that people have an intrinsic value beyond their tangible
contributions as workers.
10. Building community –seek to identify some means of building community among those who work within
DSSSSAAA
an organization.
d. Exemplary Leadership. Kouzes and Posner (2002) discovered though their studies of
leadership experiences that successful leaders have certain behaviors in common. Exemplary
leaders work to make people feel strong, capable and committed. Leaders enable others to
act not by hoarding the power they have, but by giving it away. They strengthen everyone's
capacity to deliver on the promises they make. Kouzes and Posner developed a model of
leadership based on this common behavior which they called ―The Five Practices of
Exemplary Leadership.” The five practices of exemplary leadership identified by (2002) are the
following:
1. Model the way. To effectively model the behaviors which are expected of others, leaders must
first be clear about their own guiding principles. Leaders must find their own voice and then they
must clearly and distinctively express their values.
2. Inspire a shared vision. Leaders inspire a shared vision. They desire to make something
happen, to change the way things are, to create something that no one else has ever created
before. Leaders breathe life into the hopes and dreams of others and enable them to see the
possibilities which the future holds.
3. Challenge the process. Leaders are pioneers who are willing to step out into the unknown.
They search for opportunities to innovate, grow and improve. They learn from their mistakes as
well as from their successes.
4. Enable others to act. Leadership is a team effort. Exemplary leaders enable others to act.
They foster collaboration and build trust.
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5. Encourage the heart. Leaders encourage their followers to carry on despite setbacks. They
build a strong sense of collective identification and community spirit that can carry a group
through exceptionally tough times.
Case:
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THE ELECTRONIC STORE
In this case, the writer was in search of a cleaner for the tape deck in his car when he decided to
patronize an electronics store that was in close proximity to his private residence. When he entered the store,
there were some difficulties in not only getting personnel to provide assistance, but also once he had articulated
his request, there appeared to have been additional difficulties in locating the tape deck cleaner. The clear
indication was that the personnel did not know whether the item was available in the premises or not. Eventually,
after a frantic search in the front and back of the store, the cleaner was said not to be available in those
premises but that another store of the same company might have consignments of the good. However, taking
that store‘s close proximity to the writer‘s residence into consideration, he requested that an effort be made to
secure the cleaner from that other store so that he would return to purchase it from the store which was to be
carrying out the order. A phone call was made and the cleaner was located in another store.
The writer was about to leave the premises, after having given his name and phone number in order that
he may be contacted when the cleaner would have been received, when the manager who had done absolutely
nothing hithertofore to assist in the situation suddenly entered the scene. In typical management style, he
indicated to the employee that the customer should first of all pay for the cleaner prior to ensuring its shipment
from the other store. The customer had a few doubts about this strategy, but then decided to comply with it
because he had been having difficulties locating this particular product. Based on the interaction thus far, the
customer‘s understanding was that the product was supposed to have been received in that store in a matter of
a few days from the day of its order. Further, that a phone call would be made notifying the customer of its
arrival. With this apparent mutual understanding having been established, the customer departed the store.
However, several days passed and the customer did not receive any phone call. After having waited for
approximately one week from the day of the order, the concerned customer decided to initiate a call to the store
only to be told that the cleaner had not yet arrived. Then another week elapsed and there was still no contact
received whatsoever. Therefore, rather than wait for one more week, the customer decided to re-visit the store
exactly at the end of the second week of waiting. When the customer arrived at the store the salesperson, who
appeared to have forgotten about the transaction, finally indicated that the cleaner had not yet arrived. Further,
after having made a brief phone call to the store from which the cleaner was supposed to have been shipped,
the employee returned to mention to the customer that the cleaner will be arriving at their store in the afternoon
of that day of the customer‘s second visit. Realizing the folly of this gesture, the customer respectfully requested
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a refund. Without further ado, the refund was granted and the customer proceeded to depart from the premises,
vowing to himself never to return for another transaction. In this case, there may have been some measure of
management but, given the outcome or result of the transaction, a case can be made that there was certainly no
leadership because the goal of selling a product, which was available within the company, was never
accomplished.
Several aspects of management and leadership consistent with the Kotter principles were discerned from the
writer‘s experiences in patronizing that organization. These are itemized below.
Leading by Example–The manager and owner of this sole proprietorship did not sit behind a desk and simply
DSSSSAAA
delegated responsibilities to others, in a manner reminiscent of the behavior of the manager in the electronics
store. By integrating himself into the task of washing cars, he provided motivation to his employees through
demonstrating that he, himself, was able and willing to perform the tasks which the workforce performed. In other
words, he might not ask an employee to perform a task which he himself might not be inclined to perform. In this
regard, the owner was certainly leading by example and in the process appeared to have captured the
confidence and respect of the workforce which he managed and led.
Communication–The author also noticed that the entire workforce operated as a cohesive team at the behest of
the leader. In addition, the leader appeared not to place himself over and above the other organizational
members, such as one would notice in a rigid hierarchy. This was a clear case of collegiality which, it seemed,
enabled this leader to influence the workforce into accepting his vision for the organization which has generated
dividends for his company. For example, as a small start-up business unit, he had chosen to broaden his
clientele through the imposition of charges that are low enough to attract customers who would soon discover
that the services offered, in terms of quality, may actually exceed the charges imposed.
Personnel Composition–Understanding the current political climate in the United States, as regards diversity and
also his quest to fulfill his vision as regards organizational effectiveness, the owner had made certain that the
workforce was multiracial. He had also employed a female, from a racial category different from his, that
performed the following functions: receiving customers by asking them whether this was their first visit; receiving
payments for services rendered; always giving receipts to customers for payments made; and a varied type of
public relations activities. The owner had informed this customer that this particular strategy has expanded his
clientele base.
The case of the electronics store, it was clear that there was a practical absence of leadership on the
part of the manager. The specific reasons for arriving at this conclusion are addressed below.
Management was the only concern–When the manager made sure that the customer paid for the tape cleaner
prior to its supposed shipment, without seemingly doing anything whatsoever to ensure that the cleaner was
actually shipped, he displayed a concern for management only. However since no guidance was provided, which
would have probably increased the effectiveness of the employee‘s performance, the result was that the
merchandise was not obtained according to schedule. The reason for this outcome is that the employee needed
assistance which should have been forthcoming through the manager‘s leadership. Therefore the manager, by
virtue of his behavior, appeared to have assumed that the employee should have known how to fulfill his
responsibilities without any managerial prompting.
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Leadership was not a Concern–In order to have demonstrated leadership in this case, the manager should have
conducted himself under certain professional standards pertaining to employee guidance, referred to as
relationship behavior according to Hersey et al in the textbook already cited. These professional standards are
addressed briefly. One, he should have been able to know that the cleaner had not been shipped from the other
store. Two, he should have investigated the reason for the lack of shipment of the good. Three, he should have
directly involved himself in the process by contacting the other store and use his position power to ensure that
the shipment was actually carried out. Four, he should have called the customer to indicate that the product will
be arriving at a designated date. Fifth, he should have called the customer as soon as the product would have
arrived in order to enable him to return to the store and conclude the transaction successfully.
DSSSSAAA
Impact of Leadership Disengagement–This form of disengagement was costly to that organization for a number
of reasons. One, the customer was frustrated and his scarce time was wasted. Two, the customer will not return
for another transaction because of the apparent incompetence which had been demonstrated in that
organization. Three, the store wasted its own time and other scarce resources in the unproductive phone calls,
the processing of the original sale which never materialized, the processing of the refund, and the costly and
unnecessary paperwork that was involved in the entire process. All these malfunctions would have been
prevented by a prompt managerial leadership intervention within the transaction. Additionally, such wasted time
and effort could have been more productively spent in other areas of organizational activity.
BIG FIVE PERSONALITY TEST

This is a personality test, it will help you understand why you act the way that you do and how your
personality is structured. Please follow the instructions below, scoring and results are on the next
page.
Instructions
In the table below, for each statement 1-50 mark how much you agree with on the scale 1-5, where 1=disagree,
2=slightly disagree, 3=neutral, 4=slightly agree and 5=agree, in the box to the left of it.
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The Test
Rating I.... Rating I.....

1. Am the life of the party. 26. Have little to say.
2. Feel little concern for others. 27. Have a soft heart.
3. Am always prepared. 28. Often forget to put things back in their proper place.
4. Get stressed out easily. 29. Get upset easily.
5. Have a rich vocabulary. DSSSSAAA 30. Do not have a good imagination.
6. Don't talk a lot. 31. Talk to a lot of different people at parties.
7. Am interested in people. 32. Am not really interested in others.
8. Leave my belongings around. 33. Like order.
9. Am relaxed most of the time. 34. Change my mood a lot.
10. Have difficulty understanding abstract ideas. 35. Am quick to understand things.
11. Feel comfortable around people. 36. Don't like to draw attention to myself.
12. Insult people. 37. Take time out for others.
13. Pay attention to details. 38. Shirk my duties.
14. Worry about things. 39. Have frequent mood swings.
15. Have a vivid imagination. 40. Use difficult words.
16. Keep in the background. 41. Don't mind being the center of attention.
17. Sympathize with others' feelings. 42. Feel others' emotions.
18. Make a mess of things. 43. Follow a schedule.
19. Seldom feel blue. 44. Get irritated easily.
20. Am not interested in abstract ideas. 45. Spend time reflecting on things.
21. Start conversations. 46. Am quiet around strangers.
22. Am not interested in other people's problems. 47. Make people feel at ease.
23. Get chores done right away. 48. Am exacting in my work.
24. Am easily disturbed. 49. Often feel blue.
25. Have excellent ideas. 50. Am full of ideas.
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E = 20 + (1) - (6) + (11) - (16) + (21) - (26) + (31) - (36) + (41) - (46) =
A = 14 - (2) + (7) - (12) + (17) - (22) + (27) - (32) + (37) + (42) + (47) =
C = 14 + (3) - (8) + (13) - (18) + (23) - (28) + (33) - (38) + (43) + (48) =
N = 38 - (4) + (9) - (14) + (19) - (24) - (29) - (34) - (39) - (44) - (49) =
O = 8 + (5) - (10) + (15) - (20) + (25) - (30) + (35) + (40) + (45) + (50) =
DSSSSAAA
The scores you calculate should be between zero and forty. Below is a description of each trait.
 Extroversion (E) is the personality trait of seeking fulfillment from sources outside the self or in
community. High scorers tend to be very social while low scorers prefer to work on their projects
alone.
 Agreeableness (A) reflects much individuals adjust their behavior to suit others. High scorers are
typically polite and like people. Low scorers tend to 'tell it like it is'.
 Conscientiousness (C) is the personality trait of being honest and hardworking. High scorers tend
to follow rules and prefer clean homes. Low scorers may be messy and cheat others.
 Neuroticism (N) is the personality trait of being emotional.
 Openness to Experience (O) is the personality trait of seeking new experience and intellectual
pursuits. High scores may day dream a lot. Low scorers may be very down to earth.
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Lesson 3
LEADER’S COGNITIVE AMBIDEXTERITY AND MOTIVATION
OVERVIEW
In running an enterprise, it is very DSSSSAAA

crucial for an entrepreneur to always make decisions to
minimize uncertainty and be flexible at all times to lead the organization effectively and efficiently and
for an entrepreneurial leader to execute these aspects, it requires cognitive ambidexterity. Greenberg
(2011) defined cognitive ambidexterity as a way of thinking and acting that is characterized by
switching flexibly back and forth between prediction and creation approaches. For entrepreneurial
leaders, learning to develop a cognitively ambidextrous approach to decision-making is comparable
learning to work with either hand. Most people have a dominant hand they prefer to use to throw a
ball, open the door, and sign their name. Each time a task is performed, one unconsciously uses the
dominant hand while ambidexterity is extremely rare, and it can be learned with practice and patience
so as the entrepreneurial motivation of a person that drives his behavior to most productive output and
be able to lead motivated teams. Motivation is one of the forces that lead to performance; it can be
defined as the desire to achieve a goal or a certain performance level, leading to goal-directed
behavior. When we refer to someone as being motivated, we mean that the person is trying hard to
accomplish a certain task. Motivation is clearly important if someone is to perform well; however, it is
not sufficient. It requires ability, skills, and knowledge required to perform a task and another factor is
environmental such as having the resources, information, and support one needs to perform well are
critical to determine performance and effectiveness.
In order to understand the effects of leadership on the growth of the enterprise, greater
attention needs to be directed towards the cognitive and motivational profile of the entrepreneurial
leaders in the organization relatively important in becoming an effective leader and the tenacity of his
actions that greatly affect people and strategy of an organization.
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1. Define what is meant by cognitive ambidexterity;
2. Compare and contrast the effectiveness of prediction and creation approach;
3. Learn to be cognitively ambidextrous in making decisions in a dynamic environment;
DSSSSAAA
4. Understand the concept of motivation; and
5. Explain the different theories of motivation under content-based and process-based.
COURSE MATERIALS:
Topic 1: WHAT IS COGNITIVE AMBIDEXTERITY?
 The principle behind cognitive ambidexterity is that leaders must rely on varied yet
complementary analytical approaches to thought and action to create and implement solutions
that are socially, environmentally, and economically sustainable. On the one hand,
entrepreneurial leaders must understand how and when to use the analytical approaches that
is crucial in decision-making. The use of a traditional analytical approach is an extension of the
scientific method in which leaders learn to think, evaluate, and then act to move an
organization toward predefined goals.
 Entrepreneurial leaders can use two approaches to become cognitively ambidextrous – the
prediction and the creative approach. A prediction approach is most applicable for situations
in which the goals are predetermined, the issues are clear, the causes and the effects are
understood, and the data are reliable and available. It assumes that an uncertain future can be
predicted and that decisions can be made based on those predictions. Yet entrepreneurial
leaders also find themselves in situations where novelty or complexity limits their predictive
capabilities. In fundamentally new or complex circumstances in which traditional cause-and-
effect relationships are unknown, it is not always possible to gather the appropriate data or to
use historical trends to engage a prediction analytical approach. In these situations of
unknowability, entrepreneurial leaders must learn to apply a different logic that is based in
action, discovery, and creation. Greenberg (2011) labeled this complementary decision
approach as creation logic. This approach helps entrepreneurial leaders on how to make
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decisions by beginning with thoughtful action that gives rise to new data and information, which
can then be analyzed to guide future action.
 All entrepreneurial leaders need to employ both creation and prediction logics and become
adept at cycling between the two as they introduce new ideas and initiatives. Continuously
alternating between creation and prediction approaches enables individuals and organizations
to effectively innovate and manage change. Entrepreneurial leaders must be aware that
cognitive ambidexterity involves not only showing the underlying theories and methods but also
an opportunity to apply and alternate them depending on the given circumstance.
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Cognitive Ambidexterity: Linking Prediction and Creation Approaches
 Entrepreneurial leadership requires cognitive ambidexterity—a way of thinking and acting that
is characterized by switching flexibly back and forth between prediction and creation
approaches.
 The prediction approach, which is based on analysis using existing information, works best
under conditions of certainty and low levels of perceived uncertainty.
 Creation approach, on the other hand, involves taking action to generate data that did not exist
previously or that are inaccessible. It is most effective in environments characterized by
extreme uncertainty or even unknowability. In some instances prediction and creation logics
are portrayed as incompatible methods of thought and action. In theory and in practice, this
distinction is artificial. Through conscious effort, one way of thinking can be used to inform and
progress the other way of thinking, making the approaches complementary. Moreover, by
engaging prediction and creation approaches, entrepreneurial leaders are able to create
greater value than if they had tried only one of these approaches.
 Consider the example of Yvon Chouinard, who founded the outdoor apparel company
Patagonia in 1974. When asked how he knows if he‘s making the right move, he responded, ―If
you study something to death, if you wait for the customer to tell you what he wants, you‘re
going to be too late, especially for an entrepreneurial company. That comes from Henry Ford:
Customers didn‘t want a Model T, they wanted a faster horse‖ (Wang 2010, 23). Chouinard
takes action first (the creation approach) and uses data from his actions and experiments to
make decisions (the prediction approach). His cognitive ambidexterity is producing impressive
results. Patagonia is still a private company, 100 percent owned by Chouinard, with
approximately 1,300 employees and $315 million in sales for 2009. In addition, Patagonia
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continues to receive numerous awards for its emphasis on social and environmental
responsibility and sustainability (Wang 2010).
Topic 2: FRAMING COGNITIVE AMBIDEXTERITY FOR ENTREPRENEURIAL LEADERS

 To understand the abstract concept of cognitive ambidexterity, Greenberg (2011) developed
an exercise that enables entrepreneurial leaders to experience the difference between the
thinking. The exercise is based on Sarasvathy‘s (2008)
prediction and creation ways of DSSSSAAA
seminal work on effectuation, where the contrasting metaphors of a quilt and a jigsaw puzzle
expose the differences between effectual and causal thinking, which are akin to creation and
prediction logics.
 The Jigsaw Puzzle as Prediction Logic. Assembling a jigsaw puzzle is analogous to

prediction logic within cognitive ambidexterity. The puzzle box itself offers a number of
known variables, including the number of pieces inside and a picture of the solved
puzzle, both of which can be used to reduce uncertainty around the level of difficulty
and potential time to completion. The process begins by establishing the goal: complete
the puzzle. The concepts that underlie on this approach provides outcome of actions
using observation, experience, analysis, and reasoning.
 The six principles that guide the use of a prediction approach are discussed below. Like
putting together a jigsaw puzzle, a prediction approach is applicable in organizational
situations in which goals are predetermined, issues are clear, and data are reliable and
available. In these circumstances entrepreneurial leaders focus on assessing the
situation, defining the problems and the opportunities, diagnosing the problem,
evaluating alternative actions using established frameworks and tools, and identifying
the best solution or plan to reach established goals. This sequential process of assess,
define, diagnose, design, and act assumes that we can predict the future based.
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DSSSSAAA
 Yet the ambiguity of today‘s business environment means that a prediction approach to
leadership is not enough. In complex situations where cause-and-effect relationships are
unknown or uncertain and where information is ambiguous, a prediction approach must be
complemented by the creation approach based in action, discovery, and shaping opportunities.
Entrepreneurial leaders use the creation approach to learn about a situation by acting and then
observing and analyzing the outcomes of their actions.
 The Quilt as Creation Logic. The creation approach is analogous to a form of quilt-
making called crazy quilting. Crazy quilting is one of the oldest forms of American
patchwork quilting and is defined by combining irregular patches of fabric with little or no
regard to pattern or design. This form of quilt-making became popular among Victorian
women in the late 1800s. The design, shape, and color of the quilt depended not only on
the knowledge and the experience of the quilters but also on the amount and the type of
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fabric and the creativity they brought to the project. The quilt-making highlights the
conception component of cognitive ambidexterity where it develops creation logic.
Entrepreneurial leaders use creation logic when the future is highly uncertain and
unpredictable and past information is not predictive of future activity. Creation logic is an
action-oriented approach based on the notion that new inputs (actions, information, and
resources) expand the available opportunities. Furthermore it is an approach in which
teams of individuals are co-creating. Individuals bring to the table different knowledge,
resources, and networks. They take action and create opportunity by engaging these
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different forms of capital. The six principles that form the basis of a creation approach are
shown below.

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 The creation approach is central to cognitive ambidexterity, as human behavior is never

entirely predictable and globalization and technological changes produce novel and complex
situations. It is one of the best options of an entrepreneurial leader because it is not always
possible to gather the appropriate data or to use historical trends to apply a prediction
approach. Creation approach is being used to transform the unknowability of a new situation
by taking action that enables one to further learn and assess the problems and the
opportunities and to select the next course of action. This process of acting, observing,
reflecting, and learning is dynamic DSSSSAAA
and assumes that the future is created, not predicted, and is
based on an entrepreneurial leader‘s access to resources and interactions with partners.
 Cognitive ambidexterity represents a continuous cycle of applying the creation and prediction
approaches (see exhibit 1.2). Uncertain and even unknowable environments align better with
creation thinking that requires action and then analysis. The world, however, is not easily
interpreted as either stable or unknowable; therefore the ambidextrous approach of our mental
model is necessary.
Cognitive Ambidexterity: The Complementary Logics of Entrepreneurial leadership
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 Treverton (2007), director of the RAND Center for Global Risk and Security, states that we
cannot solve mysteries with the same mindset with which we solve puzzles. He says, ―Puzzles
may be more satisfying, but the world increasingly offers us mysteries. Treating them as
puzzles is like trying to solve the unsolvable—an impossible challenge. But approaching them
as mysteries makes us more comfortable with the uncertainties of our age.‖ Entrepreneurial
leaders need to solve both puzzles and mysteries. To be cognitively ambidextrous, they must
be alert to changes in the environment and able to select a creation or prediction approach
based on what they know about the current and future environments.
DSSSSAAA
Topic 3: CONCEPTS OF MOTIVATON

 Motivation is such an important element that must be present in every person who works in the
organization, motivating people to work at their best and unleash their full potential is one of
the crucial jobs of an entrepreneurial leader and the attempt to motivate teams in the
organization by the leader requires an in-depth understanding of various theories of motivation.
The following definitions of motivation were provided by several theorists and researchers:
 According to Russell (1971), motivation is a presumed internal force that energizes for action, and
determines the direction of action.
 Motivation can be defined as those forces within an individual that push or propel him to satisfy
basic needs or wants (Yorks, 1976).
 It is as a process governing choices made by persons among alternative forms of voluntary activity
(Hamner and Organ, 1978).
 According to Woodworth (1981), “Motivation is the state of the individual which disposes him to
certain behavior for seeking goal.”
 A drive that prompts a person to act in a certain way or at least develop an inclination for specific
behavior (Kast and Rosenzweig, 1985).
 Defining motivation is not so easy because of the complexity of the concept and also many
authors have defined it in different concepts and specific theories. But on a general agreement
it is accepted that motivation activates human energy, which is a force that leads people to
attempt to satisfy their needs and also helping them to achieve their predicted goals. An
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entrepreneurial leader when using motivation factor in the organization can definitely increase
employee morale, improve performance, and promote better outcomes on their respective
task.
 Motivation is generally understood as the drive or the desire to do things. Sometimes financial
rewards motivate people and sometimes it is just an inner drive to make a difference. People
are driven by so many things – by their passion, by the need for money or financial security
and sometimes it is for the sake of recognition. The sources of motivation can vary between
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individuals and not the same factor drives us all. A lot of research has been undertaken in the
past several decades to uncover the factors underlying motivation. Research has identified the
distinct relationship between motivation and behavior. It has a special significance in the
context of workplace and performance.
Features of Motivation
 Kleinginna (1981), as an example has collected different definitions and critization statements
regarding motivation from different texts about this concept which is a little bit different in some
definitions , but mostly following the same features of motivation in all the contexts.
 Activation: The activating property of motivation, or activation, is most easily seen in the
production of behavior. Though motivation I considered to be behaviorally activating, the
behavior activated may not always be overt. Fortunately, for many motivational states,
changes in motivation do lead to changes in overt behavior
 Persistence: Hungry animals persist in their attempts to get food. Similarly, humans often
persist in behaving in particular ways even when the chances of success are vanishing
small. Observation of this continued persistence had led many psychologists to regard it as
an index of motivation.
 Direction: How do we decide to direct our behavior in one way rather than another?
Directionality is an important aspect of motivation and is often considered an index of
motivational state.
 Motives and Motivation: The term motive applied in different contexts in a simple and
clear language. According to Peters (1969), motives are a particular class of reasons,
which are distinguished by certain logical properties.
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Types of Motivation
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 Intrinsic motivation – is the natural tendency to seek out and conquer

challenges as we pursue personal interests and exercise capabilities. When we
are intrinsically motivated, we do not need incentives or punishments because
the activity itself is rewarding.
 Extrinsic Motivation – it is a reward-driven behavior; rewards or other

incentives like praise, fame, or money are used as motivation for specific tasks.
 Recently, the notion of intrinsic-and extrinsic motivation as two ends of a continuum

has been challenged. An alternative explanation is that just as motivation can include
both trait and state factors, it can also include both intrinsic and extrinsic factors.
Intrinsic and extrinsic tendencies are two independent possibilities and at any given
time, we can be motivated by some of each.
Topic 4: THEORIES OF MOTIVATON

 There are several theories explaining the concept of motivation and how it gives
satisfaction to an individual. This will answer the questions so what motivates people?
and why do some employees try to reach their targets and pursue excellence while
others merely show up at work and count the hours? The succeeding discussion will
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focus on motivation theories under two categories namely content-based theories and
process theories.
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CONTENT-BASED THEORIES
 The content theories mainly imply that individuals are unique and may have unique sources of
motivation. It would be useful for managers to understand the sources of motivation for each
individual employee. The basis of the content theories is that absence of motivating factors
creates tension that can trigger a negative behavioral performance. These theories suggest
that when people do not get what they believe they need, they try to satisfy these needs.
These look for the factors inside people that cause, sustain or stop behavior. Their main
focuses are the needs that motivate people. Some of the most well-known names among the
content theorists are Abraham Maslow, Clayton P Alderfer, Federick Herzberg and David C.
McClelland.
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a. Maslow’s Hierarchy of Needs. Abraham Maslow, one of the most prominent psychologists of
the twentieth century, created a hierarchy of needs, illustrated by a pyramid representing how
human needs are ranked. Maslow‘s theory is based on the premise that human beings are
motivated by needs ranked in order hierarchically. Some of these needs are simply essential to
all human beings. When a basic need is satisfied, we begin to seek higher-order needs.
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Abraham Maslow‘s hierarchy of needs shows physiological needs as the most essential.
 The first essential motivational needs, according to Maslow, are our physiological needs, such
as air, food, and water. Once our physiological needs are satisfied, we become concerned
about safety, which includes our own physical safety and security, as well as our employment
security. The next need to fill is social: our need to bond with other human beings. The need
for love, friendship, and family is considered to be a fundamental human motivation. When we
have achieved a sense of belonging, our need for esteem—the desire to be respected by one‘s
peers, feels important, and be appreciated—becomes more salient. The highest level of the
hierarchy is the need for self-actualization, which refers to ―becoming all you are capable of
becoming.‖People can fulfill this need by learning new skills, taking on new challenges, and
taking action to pursue their life goals.
b. Two-Factor Theory. In 1959, Frederick Herzberg, a behavioral scientist proposed a two-

factor theory or the motivator-hygiene theory. According to Herzberg, there are some job
factors that result in satisfaction while there are other job factors that prevent dissatisfaction.
Herzberg classified these job factors into two categories namely hygiene and motivational
factor.
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 Hygiene factors – these factors which are essential for existence of motivation at
workplace. These do not lead to positive satisfaction for long-term. But if these factors
are absent or non-existant in the organization, then they lead to dissatisfaction. In other
words, hygiene factors are those factors which when adequate/reasonable in a job,
pacify the employees and do not make them dissatisfied. These factors are extrinsic to
work. Hygiene factors are also called as dissatisfiers or maintenance factors as they
are required to avoid dissatisfaction.
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 Motivational factors – according to Herzberg, the hygiene factors cannot be regarded
as motivators. The motivational factors yield positive satisfaction. These factors are
inherent to work. These factors motivate the employees for a superior performance.
These factors are also called satisfiers.
c. ERG Theory. Clayton Alderfer modified Maslow‘s hierarchy of needs into three categories:
existence, relatedness, and growth (ERG). The figure below illustrates how the ERG needs
correspond to Maslow‘s five levels. Existence corresponds to psychological and safety
needs; relatedness corresponds to social and self-esteem needs; and growth corresponds to
self-actualization needs. The ERG theory does not force the order of needs fulfillment, and it
supports the pursuit of different levels simultaneously. As a manager, you may notice some
people regressing, which shows up when they continue to put effort into lower-level needs
rather than pursuing the higher-level needs. The theory suggests that managers will need to
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help regressing employees see the importance of their pursuit of higher needs to their personal
growth. This is referred to as the frustration-regression principle.
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Clayton Alderfer‘s ERG theory modifies Abraham Maslow‘s hierarchy of needs theory
d. Acquired Needs Theory. David McClelland and his associates proposed McClelland‘s theory
of Needs / Achievement Motivation Theory. This theory states that human behaviour is
affected by three needs – Need for Power, Achievement and Affiliation. Need for
achievement is the urge to excel, to accomplish in relation to a set of standards, to struggle to
achieve success. Need for power is the desire to influence other individual‘s behaviour as per
your wish. In other words, it is the desire to have control over others and to be influential. Need
for affiliation is a need for open and sociable interpersonal relationships. In other words, it is a
desire for relationship based on co-operation and mutual understanding.
PROCESS-BASED THEORIES OF MOTIVATION

 In contrast to needs-based theories, process-based theories see motivation as a rational
process: individuals perceive their environment, analyze it, develop reactions and feelings, and
respond in certain ways. It mainly implies that individual choices are based on preferences,
reward factors and sense of accomplishment. In general, process-based theories take the
mental processes of employees into account as a way to understand their motivation. The
process theories on the other hand explore how behavior is caused, sustained or stopped by
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the motivational factors. There are four predominant process theories of motivation that
include equity, expectancy, reinforcement, and goal setting.
 Equity Theory. This theory is about perceived fairness. The theory says motivation depends
on a comparison to others, called a referent. The core of the equity theory is the principle of
balance or equity. As per this motivation theory, an individual‘s motivation level is correlated to
his perception of equity, fairness and justice practiced by the management. Higher is
individual‘s perception of fairness, greater is the motivation level and vice versa. While
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evaluating fairness, employee compares the job input (in terms of contribution) to outcome (in
terms of compensation) and also compares the same with that of another peer of equal
category. Referents: The four comparisons an employee can make have been termed as
―referents‖ according to Goodman. The referent chosen is a significant variable in equity
theory. These referents are as follows:
1. Self-inside: An employee‘s experience in a different position inside his present

organization.
2. Self-outside: An employee‘s experience in a situation outside the present

organization.
3. Other-inside: Another employee or group of employees inside the employee‘s

present organization.
4. Other-outside: Another employee or employees outside the employee‘s present

organization.
 Expectancy Theory. This theory focuses on the cognitive process. It argues that motivation
depends on the strength of the expectation that the activity will result in a consistent and
favorable outcome for an individual. Expectancy theory is comprised of three components:
expectancy, instrumentality, and valence. Expectancy is the belief or expectation that the
employee can accomplish the goal. Instrumentality asks if management will honor the bargain.
Instrumentality is high if the employee believes success will be rewarded. Valence is the
degree to which an employee values the rewards, such as a promotion or pay raise.
Expectancy theory can explain why workers may be motivated to work hard in their job or
provide the minimal effort to simply get by. Employees will want to know if the performance
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appraisal will reflect any extra effort to perform a job, whether strong performance appraisals
will lead to rewards, and whether the rewards are attractive.
 Reinforcement Theory. Proposed by BF Skinner and his associates that state that
individual‘s behavior is a function of its consequences. It is based on ―law of effect‖.
Reinforcement theory of motivation overlooks the internal state of individual, i.e., the
inner feelings and drives of individuals are ignored by Skinner. This theory focuses
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totally on what happens to an individual when he takes some action. Thus, according
to Skinner, the external environment of the organization must be designed effectively
and positively so as to motivate the employee. This theory is a strong tool for analyzing
controlling mechanism for individual‘s behavior. However, it does not focus on the
causes of individual‘s behavior. The four types of reinforcement methods of this theory
are the following:
1. Positive Reinforcement- This implies giving a positive response when an

individual shows positive and required behavior.
2. Negative Reinforcement- This implies rewarding an employee by removing

negative/undesirable consequences. Both positive and negative reinforcement
can be used for increasing desirable / required behavior.
3. Punishment- It implies removing positive consequences so as to lower the

probability of repeating undesirable behavior in future. In other words, punishment
means applying undesirable consequence for showing undesirable behavior.
4. Extinction- It implies absence of reinforcements. In other words, extinction implies

lowering the probability of undesired behavior by removing reward for that kind of
behavior.
 Goal-setting theory. This theory states that goal setting is essentially linked to task
performance. It states that specific and challenging goals along with appropriate
feedback contribute to higher and better task performance. In simple words, goals
indicate and give direction to an employee about what needs to be done and how
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much efforts are required to be put in. Goal-setting theory has certain eventualities
such as:
 Self-efficiency- it is the individual‘s self-confidence and faith that he has

potential of performing the task. Higher the level of self-efficiency, greater
will be the efforts put in by the individual when they face challenging tasks.
While, lower the level of self-efficiency, less will be the efforts put in by the
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individual or he might even quit while meeting challenges.
 Goal commitment- goal setting theory assumes that the individual is committed to
the goal and will not leave the goal. The goal commitment is dependent on (a)
goals are made open, known and broadcasted, (b) goals should be set-self by
individual rather than designated, and (3) individual‘s set goals should be
consistent with the organizational goals and vision.
 According to Pratap (2017), while research has been unable to verify these theories
fully, still they have provided us with a framework to understand motivation and its
applications in various settings. The importance of motivation has grown in the 21st
century as organizations are focused on increasing productivity and deriving
competitive advantage through effective leadership and management of individuals in
the organization. In this regard, the process and content theories can provide a helpful
framework to help leaders understand and analyze individual behaviors at work.
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Case:
LAURA’S DEMOTIVATION
Laura is the associate director of a non-profit agency that provides assistance to children and
families. She is the head of a department that DSSSSAAA
focuses on evaluating the skill-building programs the agency
provides to families. She reports directly to the agency leadership. As a whole, the agency has been cautious in
hiring this year because of increased competition for federal grant funding. However, they have also suffered
high staff turnover. Two directors, three key research staff, and one staff person from the finance department
have left. Laura has a demanding schedule that requires frequent travel; however, she supervises two managers
who in turn are responsible for five staff members each. Both managers have been appointed within the last six
months.
Manager 1: Kelly has a specific background in research. She manages staff who provide research support to
another department that delivers behavioral health services to youth. Kelly supports her staff and is very
organized; however, she often takes a very black and white view of issues. Upper level leadership values Kelly‘s
latest research on the therapeutic division‘s services. Kelly is very motivated and driven and expects the same
from her staff.
Manager 2: Linda has a strong background in social science research and evaluation. She manages staff that
work on different projects within the agency. She is known as a problem solver and is extremely supportive of
her staff. She is very organized and has a wealth of experience in evaluation of family services. Linda is very
capable and can sometimes take on too much.
The managers are sensing that staff are becoming overworked as everyone takes on increased
responsibilities due to high staff turnover. Staff have also mentioned that Laura‘s "glass half-empty" conversation
style leaves them feeling rejected. In addition, Laura has not shared budgets with her managers, so they are
having difficulty appropriately allocating work to staff. Laura said she has not received sufficient information from
the finance department to complete the budgets. The finance department said they have sent her all the
information they have available. As staff becomes distressed, the managers are becoming frustrated. They feel
like they are unable to advocate for their staff or solve problems without key information like the departmental
budget. As an associate director Laura‘s role could be both a leader and manager. However, given that the two
mangers are very capable and directly manage all the department staff, Laura should focus on being a leader.
She should delegate managerial responsibilities to the two managers. This strategy will build the managers‘
confidence, allowing them to solve problems for their staff. It will also free Laura to focus on building a greater
sense of staff commitment to mission and vision.
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Several leadership approaches may be suited to the position described in the scenario:
Skills: Centers on the ability to solve complex problems. The non-profit is having several difficulties at the
organizational level, including high turnover.
Path Goal: Motivates employees by defining goals, clarifying paths, removing obstacles, and providing support.
This type of leadership may work well in building employee morale.
Transformational: Treats employees as complete human beings, considers emotions and perspectives; builds
motivation by providing a clear vision, acting as a social architect, building trust, and positive self-regard.
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1. What makes an entrepreneurial leader cognitively ambidextrous? Cite an instance to

explain briefly your answer.
2. Discuss briefly the similarities and differences of trait, behavioral, and integrative
theories of motivation.
3. What motivates you in performing the following roles in life:
a. Student
b. Member of the family
c. Friend
d. Filipino citizen
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Lesson 4
A NEW WORLDVIEW OF ENTREPRENEURIAL LEADERS: THE SOCIAL,
ENVIRONMENTAL, ECONOMIC RESPONSIBILITY AND SUSTAINABILITY
OVERVIEW DSSSSAAA
In most common situation, in any type of organizations in general, leaders are always bound to
make decisions for the interest of the organization and this action can be one of the determinants for
his effective leadership but what makes entrepreneurial leaders unique when making decisions? The
answer according to Greenberg (2011) is that the way entrepreneurial leaders make decisions is
based on a fundamentally different worldview. Entrepreneurial leaders who have this unique worldview
focused specifically on the concept of social, environmental, and economic responsibility and
sustainability (SEERS) in a very innovative ways and able to understand the importance of this unique
view of business and society. As entrepreneurial leaders come to understand business and
organizations with a SEERS worldview, they also need to explore how they can use this worldview in
their actions and decision-making. There are interdependencies and mutual impacts among society,
environment, and economics even when those impacts are not actually identified, quantified, or
incorporated into our thinking and decision-making.
To understand these impacts and to take actions embedded in the SEERS worldview,
entrepreneurial leaders need to consider four elements: (1) purpose by explicitly naming and critically
examining the rationale of the issue, decision, or process under consideration in terms that are broad
enough to include social, environmental, and economic impacts, (2) multiple stakeholders must be
considered and prioritize their different responsibilities, rights, and power, (3) metrics explicitly names
and critically examines what is being measured and what is not being measured in the performance
metrics applied to the opportunity under consideration, and (4) implementation is about asking how
unleashes creativity and demands cognitive ambidexterity through actions. Selection and
implementation of actions to bring about goal attainment represents a form of problem solving which
makes the generation, evaluation, and implementation of proactive and reactive solutions key to
leader effectiveness (Mumford, et. al, 2000).
Emerging global, social, environmental, and economic realities oblige organizational leaders to
consider issues beyond profit creation and shareholder value maximization. Entrepreneurial leaders
need to develop a more complex understanding of the relationships among social, environmental, and
economic value creation. The traditional business paradigm that focuses exclusively on economic
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value creation, or that depicts social and environmental value creation as secondary to economic
value creation, is no longer valid. Individuals and organizations are increasingly being held
accountable for the social, environmental, and economic outcomes of their actions.
1. Define briefly each of the word in the acronym

DSSSSAAASEERS that stands for Social, Environmental, and
Economic Responsibility and Sustainability;
2. Compare and contrast the concept of corporate social responsibility and sustainability;
3. Recognize the financial challenge in reconciling social and environmental value with shareholder
value; and
4. Analyze the demand for SEERS information needed by entrepreneurial leaders.
COURSE MATERIALS:
Topic 1: THE MEANING OF SEERS
Entrepreneurial leaders consider social, environmental, and economic value

simultaneously; and in doing so, they use the acronym SEERS which refers to social, environmental
and economic responsibility, and sustainability. The following are the definitions of each term:
 Social. In the SEERS worldview, social factors can be identified in the macro environment of
the organization. It includes the study of demographics, as well as the target customers. These
factors help in gauging the potential size of the market that the organization wants to capture.
Post (2011) states that with the social factor, a business can analyze the socioeconomic
environment of the given industry's market to understand how consumer needs are shaped
and what brings them to the market for a purchase. Among the factors that should be
examined are demographics, population growth rates, age distribution, attitudes toward work
and job market trends. A lot can be covered in the social aspect and it‘s both a privilege and a
challenge for an entrepreneurial leader to be able to handle all of them properly.
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 Environmental. An entrepreneurial leader‘s worldview that enables to identify all the external
and internal factors which can affect the organization‘s performance. These factors can be the
organizational culture, company policies, organization‘s geographical location for the
availability of natural resources, the climate and weather, waste disposal laws in terms of
health and safety,, energy consumption regulation, and people‘s attitude towards the
environment. Internal environment of the organization can be controlled and manipulated by
the entrepreneurial leader to cope with the dynamic changes brought by the organization‘s
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 Economic Responsibility and Sustainability. This worldview focuses on business matters,
wherein it oversees employment, monetary management, organizational financial sustainability
which includes salary, wages, monetary exchange value change, market share and the like.
But only a number of these are manageable by the entrepreneurial leader, one of which is the
employment. An entrepreneur can sustain the economy aspect by giving jobs and employment
to those who are in need, thus fulfilling the organization‘s responsibility to give them proper
wage and salary and economic rewards or benefits in exchange for a better output to maintain
financial sustainability of the business. The primary responsibility of business organizations is
to produce goods and services in a way that is profitable to their owners. According to
Grankvist (2015), economic responsibility should be carried out in running a business in such a
way that as much money as possible is earned and to answer to the stockholders to ensure
the company‘s financial position and return on invested capital. The general definition of
economic sustainability is the ability of an economy to support a defined level of economic
production indefinitely. Specifically, this refers to practices that support long-term economic
growth without negatively impacting social, environmental, and cultural aspects of the society.
 Responsibility. It refers to an entrepreneurial leader‘s obligation to carry out assigned

activities to the best of his or her ability. It is stated that a business leader is truly ready to lead
when they stop blaming others and accept that responsibility lies with them.
 Sustainability. This focuses on meeting the needs of the present state of the organization
without compromising the ability of future generations to meet their needs. The concept of
sustainability is composed of three pillars: economic, environmental, and social also known
informally as profits, planet, and people.
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Topic 2: CORPORATE SOCIAL RESPONSIBILITY AND THE ORGANIZATIONAL

SUSTAINABILITY
 In the context of business, leaders must fulfill their corporate social responsibility to achieve
good reputation in the corporate world and achieve organizational sustainability. Corporate
Social Responsibility (CSR) is a self-regulating business model that helps a company be
socially accountable—to itself, its stakeholders, and the public. By practicing corporate social
responsibility, also called corporate citizenship, business organizations can be conscious of the
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kind of impact they are having on all aspects of society, including economic, social, and
environmental. To engage in CSR means that, in the ordinary course of business, a company
is operating in ways that enhances society and the environment, instead of contributing
negatively to them. Typically, there are four types of CSR and these can be illustrated below.
The Pyramid of Social Responsibility
 Carroll (1991) states that, within this pyramid, a corporation has four types of responsibilities;
the first is the economic responsibility to be profitable. The second is the legal
responsibility to obey the law. The third is the ethical responsibility to do what is right, even
when not legally required, and the fourth is the philanthropic responsibility to give back to
society for social, educational, recreational and/or cultural purposes. The following are some
common examples of CSR:
 Reducing carbon footprints

 Improving labor policies
 Participating in Fair trade
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 Charitable giving
 Volunteering in the community
 Implementing corporate policies that benefit the environment
 Engaging in socially and environmentally conscious investments
Sustainability
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 According to Purvis (2019), one particularly prevalent description of ‗sustainability‘ employs
three interconnected pillars of sustainability. The principle of the three pillars of sustainability
emphasizes that for the complete sustainability problem to be solved all three pillars of
sustainability must be sustainable. The three pillars are social, environmental and economic
sustainability.
1. The social sustainability pillar ties back into another poorly defined concept of social
license that means the ongoing acceptance of a company or industry's standard
business practices and operating procedures by its employees, stakeholders, and the
general public. A sustainable business should have the support and approval of its
employees, stakeholders and the community it operates in. The approaches to securing
and maintaining this support are various, but it comes down to treating employees fairly
and being a good neighbor and community member, both locally and globally.
2. The environmental sustainability pillar often gets the most attention. Companies are
focusing on reducing their carbon footprints, packaging waste, water usage and their
overall effect on the environment. They have found that have a beneficial impact on the
planet can also have a positive financial impact.
3. The economic sustainability pillar is where most businesses feel they are on firm
ground. To be sustainable, a business must be profitable. That said, profit cannot trump
the other two pillars. In fact, profit at any cost is not at all what the economic pillar is
about. Activities that fit under the economic pillar include compliance, proper
governance and risk management. It is the inclusion of the economic pillar and profit
that makes it possible for corporations to come on board with sustainability strategies.
The economic pillar provides a counterweight to extreme measures that corporations
are sometimes pushed to adopt, such as abandoning fossil fuels or chemical fertilizers
instantly rather than phasing in changes.
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The Three Pillars of Sustainability
 Most of the time, people interchangeably use the term CSR with SEERS because they have
the common term for a firm‘s social and environmental responsibility. But they do not have the
same concept. CSR is the way the company of sharing its actions, taking responsibility for
them and boost a positive effect through its activities on the environment, consumers,
employees, communities and other stakeholders. On the other hand, SEERS demand for a
holistic approach to social, environmental and economic value creation by taking responsibility
and implementing sustainability.
Topic 3: FINANCIAL CHALLENGE – Reconciling Social and Environmental Value with

Shareholder Value
 In the financial perspective, shareholder value has long been the performance metric of many
business organizations. Along with increasing profits, the maximization of shareholder value is
viewed by many as the primary objective of business leaders. The SEERS worldview becomes
more central for both organizations and entrepreneurial leaders. The task of incorporating
SEERS into a finance perspective based on predictive logic, however, can be formidable. It is
concluded that fulfilling CSR can lead to organizational success and financial stability, but
despite hundreds of empirical studies, there is no clear or consistent evidence that CSR
activities produce superior financial returns to shareholders.
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 This lack of an obvious link between social and environmental responsibility and shareholder
value creates conflict for investors and corporate managers who must balance their legal and
fiduciary responsibilities with the mounting pressure to embrace SEERS. On the other hand,
the lack of standardized data and the inconclusive connection between CSR and financial
performance make it tempting to dismiss SEERS as just another management fad but on the
contrary, some managers believe that social and environmental responsibility matter but are
unsure how it connects to profitability and shareholder value.
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 In this manner, it is a task for entrepreneurial leaders to learn in how to engage a SEERS
worldview from an economic perspective. Rather than try to justify social and environmental
sustainability on philosophical or moral grounds (as some researchers do) the entrepreneurial
leader‘s economic perspective contends that SEERS needs to be considered and evaluated
within the shareholder value framework. Certain social and environmental activities are not at
odds with increasing shareholder value. Indeed, focusing on these value-creating activities
allows entrepreneurial leaders to establish remedies on financial challenges brought by the
organization‘s internal and external environment. According to Greenberg (2011),
entrepreneurial leaders should focus their resources on the social and environmental activities
that they believe will have a positive impact on profitability and shareholder value. Based in
predictive logic, finance theory allows us to evaluate the financial impact of these investments
and activities just as we would other company investments.
 Finance theory defines the current value of any asset as the present value of the cash flows it
is expected to generate in the future.
 There are two variables in this analysis: expected cash flows and a risk adjusted discount rate.
Discounted cash flow techniques—the most widely used tools for evaluating investments and
valuing companies are based on this simple concept. With discounted cash flow, two
components can increase the value of a company today: one is an increase in the expected
future cash flows (through cost reduction or revenue enhancements); the second is a decrease
in the risk of those cash flows as proxied by the discount rate. Thus for SEERS activities to
create shareholder value, they must either increase future cash flows (profits) or reduce the
risk of those cash flows. Some individuals might make fun of at the need for such a direct
connection, arguing that any socially responsible behavior is beneficial in general. Engaging
the predictive logic of finance, SEERS activities should be subject to cost-benefit analysis
(CBA) comparable to those that guide most corporate resource allocation decisions. The figure
below shows how to facilitate this predictive analysis in three categories and be able to
evaluate SEERS activities – cost savings, revenue enhancement, and risk reduction.
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SEER-CSR-Shareholder Value
 Cost Savings. The simplest way to increase profits is to reduce expenses. The link
between SEERS and cost reduction can be direct or indirect. If achieved directly, that
is, with no additional spending or investment, the benefits are obvious and
unambiguous. SEERS activities that fall into this category include a switch to less
expensive but more socially responsible production inputs. An example of a direct cost
reduction includes a newspaper publisher‘s switching to recycled newsprint priced
below virgin paper and a restaurant‘s purchasing locally grown produce that is cheaper
than the offerings of its usual distributor. Another example of indirect cost savings can
be found in the way companies package their products. Environmentally friendly
packaging design can reduce material requirements, cut shipping and warehousing
costs, and encourage recycling. Each of these activities reduced cost due to material
savings and decreased shipping expenses due to lighter weight and reduced size.
There are costs involved in the redesign process, and there may be additional
investment in equipment, but, again, we can quantify the costs and the expected
benefits using the traditional tools of financial analysis.
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Revenue Enhancement. For many firms the financial goal of SEERS may be to increase
revenue. As with cost reductions, the link between SEERS and revenue can be direct or
indirect. The direct link occurs when customers pay a premium for the socially or
environmentally responsible characteristics of the company‘s products. When companies
pursue CSR to attract new customers, the connection to revenue is indirect. The indirect
approach has a more tenuous connection to profitability and shareholder value. Consumers
pay a premium for socially responsible products for many reasons. In some cases they believe
that the products are superior. For example, some consumers believe that organic produce
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and free-range meats are healthier and taste better, which justifies a higher price. In others
cases the products are of equal quality or functionality but have been sourced in a more
environmentally friendly manner or provide social or environmental benefits in use. The
electricity from a wind turbine is identical to the electricity from a coal plant; however,
generating the former does not produce CO2 or contribute to climate change. For SEERS-
based revenue enhancement to create shareholder value, the additional costs of social
responsibility must be offset by the premium customers are willing to pay. Balancing these
considerations can be challenging. In considering the revenue-enhancement opportunities of
SEERS activities, organizations must be cognizant that there is a limit to the premium that
customers may pay for socially conscious goods and services. The tradeoffs inherent in such
decisions can create conflicts with other stakeholders and other core aspects of a company‘s
strategy.
 Risk Reduction. Luo and Bhattacharya (2009) state that the ultimate financial classification of
SEERS initiatives is that of reducing risk; if the volatility of a firm‘s cash flow decreases, so
should its cost of financing. Reducing the discount rate in any discounted cash flow analysis
increases the current value of future cash flows. Even if it requires new investment or
additional expense, a sufficiently large reduction in risk can increase shareholder value. The
first way SEERS can reduce risk is by heading off potentially expensive regulation and
taxation. Consider the American Beverage Association‘s recent television and print ads
showing Coca-Cola, Pepsi, and Dr Pepper employees removing full-calorie soft drinks from
school vending machines. The campaign (American Beverage Association) touts the
collaborative effort among fierce industry rivals and claims, “Together, we’ve reduced beverage
calories in schools by 88 percent.” What the ads fail to mention are the recent efforts at both
the federal and state levels to impose new taxes on sugar-laden beverages. The taxes would
raise revenue that would be used to offset the contribution of these drinks to obesity-related
health problems. Kevin Keane, senior vice president of public affairs at the American Beverage
Association, summarized the industry‘s perspective as follows: ―You‘re always in a far better
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position to be on offense than on defense all the time, and our companies recognize that and
are doing bold things in the public policy arena that others will follow‖.
 From an economic perspective, organizations must consider how SEERS creates

value for both their customers and their shareholders. To do so they need to be aware
of the competitive landscape and effectively communicate their social and
environmental activities and anticipate
DSSSSAAAcustomers‘ reactions to price increases or
product functionality changes. Activities that reduce costs or directly increase revenues
in a predictable way will yield the most immediate and tangible financial benefits.
Furthermore the analyses of the cash flows should consider how these activities
increase or decrease the risks. The figure establishes a context for making the
connection between SEERS, financial performance, and shareholder value.
Topic 4: THE DEMAND FOR SEERS INFORMATION

 Stakeholder Demand (External Users – many individuals in their various roles as
consumers, employees, investors, community advocates, or voters have demanded that
organizations attend to social and environmental issue. These stakeholders want to welcome
to their community, buy products from, and work for or invest in organizations that are socially
and environmentally responsible. They also want such organizations to be economically viable.
As a result, these stakeholders must rely on information from annual reports, rating
agencies, news releases, magazine articles, websites, blogs, and corporate social reports to
gain information about an organization‘s SEERS performance. For example, Johnson and
Johnson started voluntary reporting of its sustainability efforts in 1993 as a result of information
requested by customers, employees, the community, and shareholders (Borkowski, Welsh,
and Wentzel, 2010).
 Organizational Demand (Internal Users) – most organizations have a long history of

attending to economic performance; for many of them however attending to broader issues of
sustainability is still in its infancy. The Institute of Management Accountants noted that ―while
some organizations are leading the way, many are either ignoring the issues, have not yet
made a start, or are trying to figure out what to do, how to do it, and how to take action in a
way that adds value‖ (Institute of Management 2008). To embed social and environmental
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considerations into organizational decisions regarding international expansion, product and

process design, marketing approach, and investments, relevant social and environmental
metrics must exist. These metrics must be systematically collected and easily accessed so that
they can be considered with traditional economic information in internal decision-making.
Five Problems with Voluntarily Supplied SEERS Data
1. Lack of agreed-upon metrics. Despite a voluntary, widely applied corporate sustainability

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framework—the Global Reporting Initiative (2006)—social and environmental metrics that
integrate with existing corporate initiatives, cut across industry settings, and contain leading
indicators for the specific company are nonexistent (Searcy, 2009). In lieu of standard metrics,
organizations offer multiple metrics or simply use verbal descriptions of social and
environmental activities, which are often confusing and difficult to decipher. Within an
organization the metrics reported may change over time as external forces influence content.
2. Lack of systems to routinely collect and validate data. While many reports follow the
guidelines of the Global Reporting Initiative, typically the data that form the basis of these
reports are collected haphazardly without the benefit of a corporate sustainability performance
system (Bell, Erzurumlu, and Fowler, forthcoming; Borkowski, Welsh, and Wentzel 2010;
Searcy 2009). Further research has shown that CSR reports contained image-enhancing
information, had weak stakeholder engagement, and lacked a systematic and robust data
collection process (Adams 2002, 2008). Most importantly, many of these reports failed to
include independent assurance on the data reported (Mock, Strohm, and Swartz 2007).
Without a means to ensure the credibility of such reports, they can be nothing more than
marketing pieces for the company, in essence a greenwash which means using misleading
information to gloss over bad behavior.
3. Lack of focus on economic sustainability of non-government and nonprofit organizations.

While NGOs and nonprofit sustainability reporting may include data on economic performance,
contrary to the belief of many users these reports do not focus on whether the entity will exist in
the future. Instead the focus of the economic performance data is on the economic impact that
the organization has on specific groups or society as a whole. This difference is most important
to those who rely on NGOs and nonprofits to continue to provide services. Companies n have
important missions and perform well on them but not are able to continue due to the lack of a
proper business model. To continue providing social or environmental benefits, an NGO or
nonprofit must be economically viable. This is why SEERS is based on social, environmental,
and economic responsibility and sustainability: the three components must be interconnected if
an organization is going to survive and thrive.
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4. Lack of integration into decision-making routines and performance management systems.

SEERS reporting and leadership are not much more accurate inside the organization, in part
because sustainability metrics are either nonexistent or, when they do exist, the metrics are
complex, difficult to locate, and often suspect. Entrepreneurial leaders who engage a SEERS
worldview often discover that sustainability metrics and verbal descriptions of corporate
citizenship are not included in performance measurement and management systems. As a
result, employees rarely use sustainability information in routine decision-making. Consider the
Flügger Group, one of Scandinavia‘s leading manufacturers and sellers of paint and home
DSSSSAAA
décor. In the 1990s despite management‘s belief that the company was taking environmental
issues seriously, the company leaked organic solvents into the Soran. River and was criticized
by the media for irresponsible behavior.
5. Lack of integration with formal incentive systems. Because most organizations and individuals
operate based on the principles of ―you get what you measure‖ and ―you cannot control what
you do not measure,‖ sustainability metrics and goals must be available, clearly stated,
tracked, and evaluated if entrepreneurial leaders are to build organizations that are focused on
SEERS. Metrics, both at the organizational level and at other levels of the organization, must
be developed, measured on an ongoing basis, and used in the assessment and the evaluation
of responsible parties and tied to their incentive system. Without established metrics it is
difficult to focus the various divisions, departments, and individuals within the organization on
responsibility and sustainability
Article:
THE MANDATE FOR SEERS
A decade ago organizations were asking whether they should consider social and environmental issues in
conjunction with profitability. Today the discussion has shifted from a question of whether to a question of how:
How can an organization consider social, environmental, and economic value creation? A recent study by
Accenture shows that 96 percent of global CEOs believe that sustainability issues need to be fully integrated into
their strategies and operations if their organizations are to be successful (Grayson 2010). While this shift in
perspective may be partly driven by changes in worldview, it is also driven by pressures from external
stakeholders, including the government, the media, and activist groups as well as investors, consumers, and
employees.
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Nike, for example, has been widely criticized for its many human rights violations. In 1996 Nike was decried
when a Life magazine story showed a young Pakistani boy sewing a Nike soccer ball. The following year Nike
was rebuked when it was revealed that workers in one of its Vietnamese contract factories were being exposed
to toxic fumes that were 177 times the legal limit (Connor 2001). While Nike has made some efforts in social
sustainability, it continues to be criticized for poor worker conditions. Yet, on the environmental front, Nike was
ranked among Newsweek‘s top 10 green companies in 2010 and was recognized for its programs to evaluate
and improve the environmental footprint of its suppliers (Newsweek‘s Green Rankings 2010).
These two evaluations seem to be in stark contrast. How is it possible that Nike is a leader in environmental
DSSSSAAA
sustainability yet lags behind with management practices that are not socially responsible? Can this difference
be attributed to the complexity of managing a network of suppliers around the world? Can it be attributed to the
tensions that exist among social, environmental, and economic value creation? Whatever the reason, Nike has
learned that public shaming and consumer perceptions of its social and environmental responsibilities can have
a huge impact on its brand image and that it must creatively and responsibly manage both the environmental
and the social footprint of its supply chain. Nike is learning that it must adopt a more systematic and holistic view
of all SEERS components. As Nike‘s experience shows, a piecemeal approach can be a zero-sum game,
generating as many negatives as positives.
Other organizations are responding to similar pressures as they change how they source materials. According to
a survey of 188 procurement professionals, more than half of companies have policies on ―greening‖ their supply
chain, and companies are nearly unanimous in their belief that green supply chains will continue to grow (Allen
2010). Industry wide certification programs have been developed to ensure that suppliers maintain certain
environmental and social standards. For example, ICTI Care Process (ICP), the toy industry‘s ethical
manufacturing certification program, was developed in an effort to ensure safe and humane workplace
environments for toy factory workers worldwide. Factories work with ICP to earn certification, and buyers sign on
to source their materials only from certified factories.
These programs encourage entrepreneurial leaders to think more broadly about their responsibilities for their
supply chain. Organizations are also changing their approach to SEERS in response to the changing cultural
values of today‘s younger workforce.
The Cone 2006 Millennial Cause Study indicated that 61 percent of Millennials—individuals born between 1979
and 2001—feel personally responsible for making a difference in the world. These feelings of responsibility
translate to how and where these young people want to engage their financial and human capital. For example,
nine out of 10 Millennials surveyed said they were likely or very likely to switch from one brand to another if the
second brand was associated with a good cause. Eight out of 10 Millennials want to work for a company that
cares about its relationship with society and the environment, and half would refuse to work for an irresponsible
corporation (Cone Millennial Cause Study 2006). These changing attitudes of the millennial generation are also
translating to changes among MBA students. The Aspen Institute found that MBA students are expressing
increased interest in finding work that offers the potential to make a contribution to society (26 percent of
respondents in 2007 compared with 15 percent in 2002) (Aspen Institute 2008). If entrepreneurial leaders want
to tap in to the intellect and the spending power of this rising generation, they are going to need a SEERS
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worldview. Similarly, business schools need to better prepare students to lead organizations with this
perspective.
To support organizations and encourage a SEERS worldview, in July 2000 the United Nations launched the UN
Global Compact, which encourages businesses worldwide to adopt socially and environmentally responsible
policies and to report on their implementation. As a leadership initiative endorsed by chief executives, it seeks to
align business operations and strategies with 10 principles related to human rights, labor, the environment, and
anti-corruption.
DSSSSAAA
1. Why is it important to consider his SEERS worldview in making decisions for the
attainment of an enterprise goals and objectives?
2. Search 2 local SMEs and 2 large enterprises and briefly discuss their CSR and
sustainability development that make their organization successfully operating.
3. Explain how an entrepreneurial leader can reconcile his economic and legal
responsibility.
4. Discuss the difference between stakeholders and stockholders. Cite a scenario

where these two terms are applied.
5. How do pillars of sustainability help an enterprise to be valuable to its

community? Justify your answer by citing an example.
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Lesson 5
SELF AND SOCIAL AWARENESS TO GUIDE ENTREPRENEURIAL LEADER’S
ACTION
OVERVIEW
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At the core of entrepreneurial leadership is an individual‘s deep understanding of him or

herself, the context in which he or she is operating, and his or her network of relationships. Few
entrepreneurial leaders are being deeply connected to their values and environment and these leaders
are very passionate to follow their values and put them into practice within the organization.
Entrepreneurial leaders need to connect to their values and passions if they are to inspire and create
social and economic opportunity (Fleischmann 2009) social and economic opportunity for fulfilment.
Beyond understanding themselves, these entrepreneurial leaders were also successful because they
were aware of and responsive to the context in which they were operating.
The concept of self and social awareness involves developing a critical understanding of
themselves and the world. This understanding provides the basis for engaging a new way of knowing
based on a more expansive view of business. By starting with a critical understanding of their own
perspectives and of the world around them, entrepreneurial leaders are better prepared to apply
diverse perspectives as they respond to situations that are uncertain and unknown. They are also
better prepared to effectively co-create an ongoing course of action and to negotiate the uncertain and
ambiguous results that can arise from their decision-making. Because of high entrepreneurial risks in
a very dynamic environment, entrepreneurial leaders require themselves to develop a wide array of
understanding of perspective are able to engage a more sophisticated understanding of the world—
one that enables them to see the social, environmental, and economic implications of action.
According to Greenberg (2011), to be able to build this up, this sense of being, entrepreneurial
leaders must be able to explore these critical questions: Who am I? What is the context in which I am
situated? Whom do I know, and to what does that give me access? Understanding these questions
enables entrepreneurial leaders to make responsible choices as they choose a path of action in both
unknowable and uncertain situations. An introduction of self-assessment and professional
development work is essential to changing how entrepreneurial leaders understand themselves and
take action toward their career aspirations as well as how they develop and coach others to do the
same. Such personal growth enables entrepreneurial leaders to develop the skills and the insight to
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involve their organizations and the individuals within the organizations; in a new approach to
generating social and economic opportunity that is connected to their personal passions and abilities.
1. Understand the concept of self and social awareness in creating value within the
organization DSSSSAAA
2. Understand the Johari Window in examining one‘s social awareness;
3. Explain how do entrepreneurial leaders foster self-awareness; and
4. Learn to develop and foster entrepreneurial social awareness.
COURSE MATERIALS:
Topic 1: WHO AM I? – LEARNING FROM BEING SELF AWARE
 While it may not be possible to attain total objectivity about oneself, there are certainly degrees
of self-awareness. Self-awareness as defined by Ackerman (2020) is the ability to see
yourself clearly and objectively through reflection and introspection while Kondrat (199) defined
self awareness is defined in terms of becoming awake to present realities, noticing one's
surroundings, and being able to name one's perceptions, feelings, and degrees of behavior.
The question Who am I? can be briefly illustrated through a story about a young seeker of
wisdom who approached an adept of a particular religious tradition asking, "Who am I?" The
adept replied simply, "And who is asking the question?" Modern philosophers from John Locke
and Immanuel Kant to Sartre were well aware of the fundamental question at the heart of the
quest for self-knowledge: "Who is the self who knows the self-who-is-known?" Answers to this
question have varied within Western philosophical traditions. Until the advent of
postmodernism, the most common approaches to the question have included the assumption
of some form of dichotomy between the knowing self and the self-as-known.
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 Self-awareness helps leaders identify gaps in their leadership competencies which promotes
skill development. Entrepreneurial leaders need an extraordinary strong and realistic
understanding of who they are; they must understand their own identities in terms of values,
drives, and background and must be honest and open about their capabilities and limitations.
This self-understanding provides the basis for their ability to build social and economic
opportunity. Furthermore, self-awareness helps entrepreneurial leaders find situations in which
they will be most effective, assists with intuitive decision making, and motivation of oneself and
others. DSSSSAAA
The Self-Awareness Theory
 Although everyone has a fundamental idea of what self-awareness is, we don‘t know exactly
where it comes from, what its precursors are, or why some of us seem to have more or less
than others. This is where the Self-Awareness Theory comes in, offering some potential
answers to questions like these.
 Self-Awareness Theory is based on the idea that you are not your thoughts, but the entity
observing your thoughts; you are the thinker, separate and apart from your thoughts (Duval &
Wicklund, 1972). We can go about our day without giving our inner self any extra thought,
merely thinking and feeling and acting as we will; however, we also can focus our attention on
that inner self, it is ability that the Researchers termed ―self-evaluation.‖ When we engage in
self-evaluation, we can give some thought to whether we are thinking and feeling and acting as
we ―should‖ or following our standards and values. This is referred to as comparing against our
standards of correctness. We do this daily, using these standards as a way to judge the
rightness of our thoughts and behaviors. Using these standards is a major component of
practicing self-control, as we evaluate and determine whether we are making the right choices
to achieve our goals.
 The theory of self-efficacy developed by Bandura (1977) built on our varying degrees of self-
awareness. It is "the belief in one's capabilities to organize and execute the courses of action
required to manage prospective situations." A person's belief in their ability to succeed sets the
stage to how they think, behave and feel. Someone with a strong self-efficacy, for example,
views challenges as mere tasks that must be overcome, and are not easily discouraged by
setbacks. They are aware of their flaws and abilities and choose to utilize these qualities to the
best of their ability. Someone with a weak sense of self-efficacy evades challenges and quickly
feels discouraged by setbacks. They may not be aware of these negative reactions, and
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therefore do not always change their attitude. This concept is central to Bandura's social
cognitive theory, "which emphasizes the role of observational learning, social experience, and
reciprocal determinism in the development of personality.
Topic 2: THE JOHARI WINDOW

 The Johari Window model is a DSSSSAAA
useful tool for businesses, non-profit organizations, and
communities used primarily to examine their self-awareness. It can reveal what employees,
management, customers and stakeholders perceive about the organization. It was created by
psychologists Joseph Luft and Harrington Ingham in 1955. The name was derived from the
name of the two Psychologists; it‘s a combination of their first names, Joe and Harry. Johari
Window exercise is a good tool to use inside the organization to help employees learn more
about how they see themselves and as a way for your organization to examine how it sees
itself and how others see it. The Johari window model is used to enhance the individual‘s
perception on others. This model is based on two ideas- trust can be acquired by revealing
information about you to others and learning yourselves from their feedbacks. Each person is
represented by the Johari model through four quadrants or window pane. Each four window
panes signifies personal information, feelings, motivation and whether that information is
known or unknown to oneself or others in four viewpoints.
The Four Quadrants of the Johari Window Model
 The objective behind the creation of a Johari window is to enable an individual to develop trust
with others by disclosing information about himself and also to know what others feels about
himself through feedback.
 The Johari Window model is made up of four quadrants that explain the overall relationship of
an individual with himself and with other group members. These are as follows:
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The Johari Window
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1. Open area, open self, free area, free self, or 'the arena'– what is known by the person about
him/herself and is also known by others. This is mainly the area where all the communications
occur and the larger the arena becomes the more effectual and dynamic the relationship will
be.
2. Blind area, blind self, or 'blindspot'– what is unknown by the person about him/herself but
which others know. Others may interpret yourselves differently than you expect. The blind spot
is reduced for an efficient communication through seeking feedback from others.
3. Hidden area, hidden self, avoided area, avoided self or 'facade'– what the person knows
about him/herself that others do not know. This can be any personal information which you feel
reluctant to reveal. This includes feelings, past experiences, fears, secrets etc. we keep some
of our feelings and information as private as it affects the relationships and thus the hidden
area must be reduced by moving the information to the open areas.
4. Unknown area or unknown self – what is unknown by the person about him/herself and is
also unknown by others. This includes the information, feelings, capabilities, talents etc. This
can be due to traumatic past experiences or events which can be unknown for a lifetime. The
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person will be unaware till he discovers his hidden qualities and capabilities or through
observation of others.
How Self-Awareness Makes an Entrepreneurial Leader Effective

 Skill development. Improvement projects should normally begin with an assessment of the
gap between the current situation and the desired future situation. Having an accurate sense of
who you are helps you decide what you should do to improve. Often, self-awareness will
DSSSSAAA
reveal a skills gap that you want to work on.
 Knowing your strengths and weaknesses. Self-awareness helps you exploit your strengths
and cope with your weaknesses. For instance, if you are someone who is good at "seeing the
big picture" that surrounds decisions, but not as good at focusing on the details, you might
want to consult colleagues and subordinates that are more detail-oriented when making major
decisions. Cooperation between big-picture-oriented decision makers and detail-oriented
decision makers can produce high quality decisions.
 Developing intuitive decision-making skills. Leaders with well-developed emotional self-

awareness are more effective intuitive decision makers. In complex situations, intuitive
decision makers process large amounts of sometimes unstructured and ambiguous data, and
they choose a course of action based on a "gut feeling" or a "sense" of what's best. This type
of decision making is becoming more important for leaders as the rate of change and the levels
of uncertainty and complexity in their competitive environments increase.
 Motivation. It's very difficult to cope with poor results when you don't understand what causes
them. When you don't know what behaviors to change to improve your performance, you just
feel helpless. Self-awareness is empowering because it can reveal where the performance
problems are and indicate what can be done to improve performance. In addition, awareness
of your psychological needs can increase your motivation by helping you understand and seek
out the rewards that you really desire such as a sense of accomplishment, additional
responsibility, an opportunity to help others, or a flexible work schedule.
 Leadership. When we understand "what make us tick"--what gets us excited, why we behave
the way we do, etc.--we also have insight into what makes others tick. To the extent that other
people are like you (and, of course, there are limits to the similarity), knowing how to motivate
yourself is tantamount to knowing how to motivate others.
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Topic 3: FOSTERING ENTREPRENEURIAL LEADERS’ SELF-AWARENESS

 According to Miller 2020), developing self-awareness allows us to be no longer swept away by
those signals, but instead to objectively and thoughtfully respond to them. Self-aware people
understand their internal experience and their impact on the external experience of others. The
ability to self-evaluate has been criticized in the past for increasing negative effect. When
stimulating self-awareness from the ―cool‖ system of stimuli (Metcalfe & Mischel, 1999), the
increase in negative affect can be lessened. A rise in negative emotional affect is a hindrance
to progress in self-awareness. WhenDSSSSAAA
working on self-awareness, it is essential to do so from a
self-distanced perspective, with a focus on reasons underlying emotional experience rather
than what was emotionally experienced (Kross et al., 2005). An open, objective observation of
feelings, senses, desires, and actions can help someone move up the flourishing continuum.
 Developing self-awareness requires higher-level cognitive processing. It requires an

information-gathering perspective. This processing results in increases in adaptability and
flexibility. Having increased self-awareness builds resilience and also improves our ability to
empathize with others. When compassion and empathy rise, so does the higher self. With
intentions and purpose, a self-aware human can significantly impact the world around them.
Self-aware people tend to show up with self-confidence, self-worth, and high success rates.
 It is not enough for entrepreneurial leaders to simply recognize different viewpoints and the
contextual differences of the local environment; they must also know how to engage this
understanding to guide their actions. To develop this understanding, leaders must be able
reflect on their own identities, biases, and assumptions of the way the world works and to
consider how this worldview compares with that of the context in which they are operating.
When entrepreneurial leaders consider the unique perspectives and practices that embody a
local context, they are able to successfully and responsibly discover avenues for change. In
discussing socialization, entrepreneurial leaders must know how to proactively introduce
individuals to the organizational context and help them quickly and easily adapt their actions to
fit that context (Rollag, Parise, and Cross 2005). Social Awareness refers as the ability to take
the perspective of and empathize with others, including those from diverse backgrounds and
cultures. It is the ability to understand social and ethical norms of behavior. Entrepreneurial
leaders need to develop the skills and the knowledge to fully understand how social identity is
created, how identities are important to the construction of social networks, how rules and
institutions shape behavior, and how context affects decision-making. By understanding the
ways in which social identities both our own and those of others—are constructed,
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entrepreneurial leaders explore the normative assumptions and behaviors that affect their
ability to move new ideas forward.
 Better Place CEO Shai Agassi, for example, has railed against groupthink in the auto industry.
He believes that major car companies assume that the way people use cars will remain the
same. As a result, companies are overly focused on increasing fuel efficiency and maintaining
financial models based on selling cars. Agassi argues that electrification of vehicles could
cause a paradigm shift in the way DSSSSAAA
people use and fundamentally think about cars. We use the
term cognitive locks to describe situations in which decision-making fails because individuals,
individually or collectively, fail to examine an issue in an innovative way. When cognitive lock
sets in, an individual will simply try harder rather than recognize that the causal effects of our
actions may be historically or culturally contingent and our actions may need to change in light
of changing contexts (see, for example, Blyth 2001).
 Moreover, socially constructed identities create advantages and disadvantages when

entrepreneurial leaders try to move an opportunity forward. Understanding the privilege
granted to some perspectives means becoming aware that certain kinds of knowledge,
insights, and ways of acting have been undervalued or even silenced. This is also true when
thinking specifically about social positioning, which has significant implications for individuals‘
ability to access various social networks, for how social networks can be used as a resource,
and for how resources can be mobilized through social networks. Thus, when embarking on
new endeavors, entrepreneurial leaders can decide whether to accept culture as a constraint
or to act in ways that can modify existing social practices and beliefs.
 Social awareness requires competency in areas such as emotional intelligence and empathy.
Theoretically, social awareness is actually the interworking of multiple concepts such as the
following:
 Social sensitivity means empathy for others and the ability to infer;
 Social insight means moral judgment and the ability to comprehend situations quickly;
and
 Social communication means the ability to interact appropriately with others, including
problem-solving interaction.
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Topic 4: HOW DO ENTREPRENEURIAL LEADERS BECOME SOCIALLY- AWARE

 Self-awareness involves looking inward to learn about yourself and understand yourself while
social awareness is looking outward to learn about and appreciate others. It focuses on
recognizing and understanding others‘ feelings. For an entrepreneurial leader to be socially
aware and ultimately becoming an effective leader in the organization, the following must be
practiced:
DSSSSAAA
 Understand what it means to listen. Most of us think we‘re good listeners.
Unfortunately, the truth is that we‘re usually too busy thinking of our next response to
really hear what others are saying. Good listeners don‘t assume they know or
understand a situation before hearing someone out. They listen, look for the facts of the
situation and then analyze the emotions surrounding it.
 Repeat what was said. The best way to ensure you understand what‘s been said is to
repeat back what you heard in your own words and ask for more information, if
appropriate. This helps to show that you understand what was said, and it conveys to
the other person that their opinion is valued and heard. Active listening ultimately leads
to greater understanding and trust among leaders and employees.
 Pay attention to tone of voice. Notice the energy behind what your employees say to
get a sense of how they‘re feeling. This is especially critical during virtual meetings
when you do not have visual cues. A person‘s tone of voice can help you get a read on
how they‘re feeling, and give you a better opportunity to choose the most appropriate
response or course of action. The best leaders are in tune with others‘ feelings.
 Watch facial expressions and body language. Stay aware of nonverbal cues. You
must be present and giving your full attention to notice things like facial expressions
and body language. While this will require extra effort, it can go a long way.
 Keep a finger on the pulse of the working environment. Observation skills are
fundamental to social awareness. When you pay close attention to what‘s happening
around you, your awareness of your surroundings can help set the tone of how you
approach varying situations.
 Notice the details. If you want to be connected to your employees, you need to keep
your eyes open to your environment and really see what‘s in front of you. Make the
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rounds in the office regularly and observe what‘s happening. This isn‘t about being
seen – it‘s about getting to know your workforce as people, and interpreting the mood
of the team.
 Avoid the drive-by. Whenever possible, avoid drive-by meetings. If you have a
specific topic you want to discuss with an employee, always look for social cues as to
whether it‘s a good time to do so before diving in.
DSSSSAAAmight have provided great value when you were
 Stop taking notes. While note-taking
in college lecture courses, the same practice in a professional setting can have
unintended, negative repercussions. Do your best to put down the pen and look up
from your paper in meetings. In a meeting, you should actively engage with others.
 As an entrepreneurial leader, if you aren‘t socially aware, the people you lead in the
organization may feel like you have your own agenda and don‘t care about their opinions.
Employees want to be included in decisions that impact their jobs. When they feel like their
leaders feel that they are self and socially aware, they become more engaged and perform at
their very best. By demonstrating this kind of leader‘s behavior, it is much easier for the people
to build trust and harmonious relationship with their leaders. Creating and developing this kind
of awareness will result to a greater employee engagement and get a better view of
understanding of how they can help impact organizational goals.
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Case:
INCREASING SARAH'S SELF -EFFICACY
Sarah is a 212121-year old college student who is distressed by her inability to form relationships with
others and feels that she is generally unsuccessful in school and in life. She experiences high levels of anxiety in
DSSSSAAA
social and academic situations, and has trouble sleeping because of her tendency to ruminate. Her stress levels
become unbearable and she decides to reach out for help. When she visits her college‘s counseling center she
is assigned to a therapist, Dr. Becker, who interviews Sarah extensively in the hopes of finding and resolving key
issues in her life. The following is an excerpt from Dr. Becker‘s clinical notes on Sarah‘s condition.
―Sarah describes never fully developing trust in others, and states that she struggled with trust from a very early
age. She is very skeptical of other people‘s intentions, which she says causes problems when she tries to make
friends. She is very timid and reserved in social situations. Sarah recently gave a class presentation in front of a
large group of her peers. She was incredibly nervous and bit her nails excessively beforehand, even more than
she usually does on a regular basis. Sarah describes feeling as though she lacked the capacity to give a good
presentation, despite extensive preparation. She states that she felt that her level of interest in the behaviors,
comments, thoughts, and performance of others was unhealthy. She compares her performance to the
performance of her peers, and states that they were so good that she lost confidence in herself. Despite her
feelings, she says she was able to get through the presentation and received a good grade from her teacher.
She earned a 94\%94%94, percent but feels that this is because the teacher was too lenient in grading, and it
was mere luck that she received an A.‖
Based on the interview, Dr. Becker concludes that Sarah suffers from low self-esteem, which translates
into negative self-efficacy. Dr. Becker focuses her therapeutic efforts on improving these qualities.
Imitation has been shown to be vital to our social development and self-identity formation. It has been studied in
babies after birth as they exhibit imitation without a full concept of self-identity at that stage in their life.
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SELF AWARENESS TEST

(Who I am?)
Self-Awareness worksheet focuses on discovering
DSSSSAAA―Who am I?.‖ It is an all-encompassing tests that address
talents, qualities, values, perception, and self-reflection. The other test focuses on a specific aspect of self-
Discovery.
Self-Awareness happens through reflection. You can have numerous experiences in your life, but still lack self-
awareness. You need to take the time to step outside of your experiences and reflect on them. The key areas for
self-awareness include our personality traits, personal values, emotions, habits, and the psychological needs
that motivate our behaviors. Self-awareness and/or Self Discovery is about knowing and understanding:
 your beliefs and principles

 What you value and what is important to you
 what motivates you
 your own emotions
 your thinking patterns
 your tendencies to react to certain situations
 what you want out of life
 Who I am?
To get you thinking about your personal development plan and your mission statement, spend some
time contemplating the following:
TALENTS
1. What are your greatest talents or skills?

2. Which of your talents or skills gives you the greatest sense of pride or satisfaction?
3. What talents or skills do you admire most in others? What talent or skill do you wish to develop for
yourself?
TRAITS/QUALITIES
1. What are your five greatest strengths?

2. What do you feel are your two biggest weaknesses?
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3. What are your best qualities/characteristics?

4. What qualities do you wish you had?
5. What qualities or traits do you most admire in others?
6. What behaviors, traits, or qualities do you want other people to admirein you?
VALUES
1. Write (10) things that are really important to you.

2. What are the top three most importantDSSSSAAA
things to you?
3. Do you spend enough time on/with the things you most value? Why or why not?
4. What are the values that you hold most near to your heart?
PERCEPTION
1. How is the ―public you‖ different from the ―private you‖?

2. What makes it hard to be yourself with others?
3. How are you trying to please others with the way you live your life?
4. What do you want people to think and say about you?How do your behaviors and actions support what
they think or say?
5. Who are the people who allow you to feel fully yourself?
ACCOMPLISHMENTS
1. Write three things are you most proud of in your life to date?
2. What do you hope to achieve in life?
3. If you were to receive an award, what would you want that award to represent? Why?
4. If you could accomplish only one thing during the rest of your life, what would it be?
5. What do you believe you are here to accomplish or contribute to the world?
REFLECTION
1. List three (3) things that you are.

2. List three (3) things that you are not.
3. What is something that represents you? (e.g. song, animal, flower, poem, symbol, jewelry, etc…) why?
4. What do you like best about yourself?
5. What do you like least about yourself? What three things would you like to change most about yourself?
6. Who are two people you most admire? Why do you admire them?
7. What matters to you most in my life?
8. What makes you happy?
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FINISH THE SENTENCE
 I do my best when...
 I struggle when…
 I am comfortable when…
 I feel stress when…
 I am courageous when...One of the most important things I learned was...
 I missed a great opportunity when...
 One of my favorite memories is…
 My toughest decisions involve...
DSSSSAAA
 Being myself is hard because…
 I can be myself when…
 I wish I was more….
 I wish I could…
 I wish I would regularly….
 I wish I had…
 I wish I knew…
 I wish I felt…
 I wish I saw…
 I wish I thought…
 Life should be about…
 I am going to make my life about…
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Lesson 6
LEADING GROUPS AND TEAMS IN THE ORGANIZATION
OVERVIEW
DSSSSAAA
Groups and teams are the central building blocks of organizations. Leaders will not be able to
execute plans and strategies without the people who perform and communicate the tasks in
accordance to the realization of the organizational goals and objectives. Leaders must not only be
able to formulate a plan that works within the context of organization, they must also be able to
implement this plan within a distinctly social context, marshaling support, communicating a vision,
guiding subordinates, and motivating the diverse people in the organization; there should be a
constant interaction between the leader and the groups and teams. Communication is vital in leading
groups and teams therefore it is a must that leaders in organization must possess effective
communication skills that exhibits on his leadership behavior. This can help directly increase the level
of satisfaction of the team members and improve the performance of the team (Cheung, et al., 2001).
It is hard to describe the difference between a group and a team without using a sports
analogy, because the benefits of teamwork, and the obvious differences between group and team,
reveal themselves so readily on the football field, the baseball diamond, or wherever it is that people
meet to push the limits of athletic performance. A winning team is more than a group of people
achieving a goal and delivering a result. There‘s positive energy and synergy around a team (meaning
that they produce more together than they could individually). Organizations benefit from the ability to
build and manage great teams. In order to do that, we need to understand what sets one group apart
from the rest and makes that group a team.
1. Describe differences between a group and a team;
2. Understand the stages of group development;
3. Discuss the different types of groups and teams exist in the organization; and
4. Learn how to create effective teams in the organization.
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COURSE MATERIALS:
Topic 1: GROUPS VERSUS TEAMS
 In an organization, the leader most of the times encounters diverse people who are part of the
group or a team. A group can be defined as a collection of individuals who interact with each
other such that one person‘s actions have an impact on the others. In organizations, most work
DSSSSAAA
is done within groups. How groups function has important implications for organizational
productivity. Groups where people get along, feel the desire to contribute to the team, and are
capable of coordinating their efforts may have high performance levels, whereas teams
characterized by extreme levels of conflict or hostility may demoralize members of the
workforce. A team defined as a cohesive coalition of people working together to achieve
mutual goals.
 Being on a team does not equate to a total suppression of personal agenda, but it does require
a commitment to the vision and involves each individual working toward accomplishing the
team's objective. Moreover, teams also tend to be defined by their relatively smaller size of
people with complementary skills who are committed to a common purpose, performance
goals, and approach for which they are mutually accountable (Katzenbach, et, al., 1993).
 The primary purpose of assembling a team is to accomplish larger, more complex goals
(usually perform by groups) than what would be possible for an individual working alone or
even the simple sum of several individuals‘ working independently. It is suggested that team
size should be limited to a minimum number in accordance with team's goals. If a team is too
large, the quality of interaction between its members decreases and this impairs team
effectiveness which results in high costs and process losses (Diskul, 2001). Team beliefs and
members‘ involvement are also important factors for team effectiveness. Teamwork is also
needed in cases in which multiple skills are tapped or where buy-in is required from several
individuals. Teams can, but do not always, provide improved performance. Working together to
further a team agenda seems to increase mutual cooperation between what are often
competing factions. This can be done effectively if organizational leader can gather together a
group of individuals and mold them into an effective team.
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 Organizations consist of groups of people. What exactly is the difference between a

group and a team? Within an organization, groups might consist of project-related groups such
as a product group or division, or they can encompass an entire store or branch of a company.
The performance of a group consists of the inputs of the group minus any process losses, such
as the quality of a product, ramp-up time to production, or the sales for a given month.
 A process loss is any aspect of group interaction that inhibits group functioning. Teams differ
from other types of groups in that DSSSSAAA
members are focused on a joint goal or product, such as a
presentation, discussing a topic, writing a report, creating a new design or prototype, or
winning a team Olympic medal. Moreover, teams also tend to be defined by their relatively
smaller size.
 The key properties of a true team include collaborative action in which, along with a common
goal, teams have collaborative tasks. Conversely, in a group, individuals are responsible only
for their own area. They also share the rewards of strong team performance with their
compensation based on shared outcomes. Compensation of individuals must be based
primarily on a shared outcome, not individual performance. Members are also willing to
sacrifice for the common good, in which individuals give up scarce resources for the common
good instead of competing for those resources. For example, in soccer and basketball teams,
the individuals actively help each other, forgo their own chance to score by passing the ball,
and win or lose collectively as a team. Why do we say group instead of team? A collection of
people is not a team, though they may learn to function in that way but the used of the word
group by various organizations has changed into team overtime because of its impact to
individual belonging to a certain team rather than to a group. Forming a team in various
functional areas of the organization also began to increase because of the advances in
technology have resulted in more complex systems that require contributions from multiple
people across the organization. Overall, team-based organizations have more motivation and
involvement, and teams can often accomplish more than individuals.
 A group is two or more people who interact with each other to accomplish a goal. A team is a
group with complementary skills who are committed to a common purpose defined by a set of
performance goals and hold themselves mutually accountably. All teams are groups, but, not
all groups are teams. Katzenbach and Smith (2004) discussed the difference between a group
and a team on the table shown below.
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The Differences between Groups and Teams
Work Group Work Team
 Strong; focused leader  Shared leadership roles

 Individual accountability  Individual and mutual accountability
 Commitment to own silo/function/goals  Specific team purpose that the team itself
 Purpose is the same as the organization‘s delivers
mission DSSSSAAA  Performance is a function of collective work
 Performance is a function of individual product
work effort  Time spent in open-ended discussion and
 Efficient meetings active problem solving
 Measure its effectiveness via influence on  Measures performance directly by assessing
other indicators collective work
 Shares information, discusses, decides,  Discusses, decides, and does real work
and delegates to enhance individual together
performance
 Groups don‘t just become teams because we use that name and it is not about teamwork.
Teams act as a collective unit with shared commitment and not a band of individual
contributors. Highly performing and effective teams use a set of values that encourage
listening and responding constructively to views expressed by others, giving others the benefit
of the doubt, providing support, and recognizing the interests and achievements of others.
 The team is greater than the sum of the individual parts. Teams often are more difficult to form
because it takes time for members to learn to work together and leaders should advocate the
discipline that teams must share to be effective rather than just establishing working groups. It
is highly advised that organizational leaders must develop, support and motivate the use of
teams at the workplace to establish high performance and maintain organization‘s competitive
advantage.
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Topic 2: STAGES OF GROUP DEVELOPMENT
 A four-stage map of group evolution also known as the forming-storming-norming-

performing model was proposed by an American organizational psychologist Bruce Tuckman
(1965). This was based on his observations of group behavior in a variety of settings. He later
enhanced the model by adding a fifth and final stage which is the adjourning phase.
DSSSSAAA
Tuckman’s Stages of Group Development
1st Stage: Forming. In this stage, the group comes together for the first time. The members may
already know each other or they may be total strangers. In either case, there is a level of formality,
some anxiety, and a degree of guardedness as group members are not sure what is going to happen
next. ―Will I be accepted? What will my role be? Who has the power here?‖ These are some of the
questions participants think about during this stage of group formation. Because of the large amount of
uncertainty, members tend to be polite, conflict avoidant, and observant. They are trying to figure out
the ―rules of the game‖ without being too vulnerable. At this point, they may also be quite excited and
optimistic about the task at hand, perhaps experiencing a level of pride at being chosen to join a
particular group. Group members are trying to achieve several goals at this stage, although this may
not necessarily be done consciously.
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2nd Stage: Storming. Once group members feel sufficiently safe and included, they tend to enter this
stage. Participants focus less on keeping their guard up as they shed social facades, becoming more
authentic and more argumentative. Group members begin to explore their power and influence, and
they often stake out their territory by differentiating themselves from the other group members rather
than seeking common ground. Discussions can become heated as participants raise contending
points of view and values, or argue over how tasks should be done and who is assigned to them. It is
not unusual for group members to become defensive, competitive, or jealous. They may even take
sides or begin to form cliques within the group. Questioning and resisting direction from the leader is
DSSSSAAA
also quite common. ―Why should I have to do this? Who designed this project in the first place? Why
do I have to listen to you?‖ Although little seems to get accomplished at this stage, group members
are becoming more authentic as they express their deeper thoughts and feelings. During this chaotic
stage, a great deal of creative energy that was previously buried is released and available for use, but
it takes skill to move the group from storming to norming. In many cases, the group gets stuck in the
storming phase.
3rd Stage: Norming. “We survived!” is the common sentiment at the norming8 stage. Group members
often feel elated at this point, and they are much more committed to each other and the group‘s goal.
Feeling energized by knowing they can handle the tough situations; group members are now ready to
get to work. Finding themselves more cohesive and cooperative, participants find it easy to establish
their own ground rules (or norms) and define their operating procedures and goals. The group tends to
make big decisions, while subgroups or individuals handle the smaller decisions. Hopefully, at this
point the group is more open and respectful toward each other, and members ask each other for both
help and feedback. They may even begin to form friendships and share more personal information
with each other. At this point, the leader should become more of a facilitator by stepping back and
letting the group assume more responsibility for its goal. Since the group‘s energy is running high, this
is an ideal time to host a social or team-building event.
4th Stage: Performing. Fueled up by a sense of shared vision and a feeling of unity, the group is
ready to go into high gear. Members are more interdependent, individuality and differences are
respected, and group members feel themselves to be part of a greater entity. In this stage, participants
are not only getting the work done, but they also pay greater attention to how they are doing it. They
ask questions like, ―Do our operating procedures best support productivity and quality assurance? Are
we relating to and communicating with each other in ways that enhance group dynamics and help us
achieve our goals? By now, the group has matured, becoming more competent, autonomous, and
insightful. Group leaders can finally move into coaching roles and help members grow in skill and
leadership.
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5th Stage: Adjourning. This stage is when participants are not only getting the work done, but they
also pay greater attention to how they are doing it and recognize members‘ contribution when they
completed a task or a project. Just as groups form, so do they end; for instance, many groups or
teams formed in a business context are project oriented and therefore are temporary in nature.
Alternatively, a working group may dissolve due to an organizational restructuring. For those who like
routine and bond closely with fellow group members, this transition can be particularly challenging.
Group leaders and members alike should be sensitive to handling these endings respectfully and
compassionately. An ideal way to close DSSSSAAA
a group is to set aside time to debrief, acknowledge each
other, and celebrate a job well done.
Topic 3: DIFFERENT TYPES OF GROUPS AND TEAMS
Types of Groups
 In organizations, you may encounter different types of groups. Informal work groups
are made up of two or more individuals who are associated with one another in ways
not prescribed by the formal organization. For example, a few people in the company
who get together to play tennis on the weekend would be considered an informal
group. A formal work group is made up of managers, subordinates, or both with close
associations among group members that influence the behavior of individuals in the
group. These types of group may include:
 Work Groups: Either formal, such as teams, committees or training groups, or informal
maybe setup to tackle an ad-hoc problem.
 Neighborhood Groups: An example of a neighborhood group would be one established

to develop local amenities.
 Social Groups/Special Interest groups: These are groups established to meet the
needs of a particular sector (e.g. age group, gender) or interests (e.g. music or sports).
Examples include choir group, dance group.
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 Self-Help Groups: Such groups are often established to work through particular
emotions or to provide support for people with a certain illness, e.g. helping to
overcome an addiction such as Alcoholics Anonymous.
 Inter-Agency Groups: These are developed between agencies/organizations that work

in related fields to improve product and/or client services. In addition, they aid
communication and establish joint ventures to prevent duplication and confusion.
 Pressure Groups: The functionDSSSSAAA

of pressure groups is to challenge the status quo, often
by using high profile tactics to gain media attention to achieve their aims.
The Group as a Whole
 From the experience of belonging to different groups, it quickly becomes obvious that groups
are often made up of individuals with very different personalities, attitudes and ideas. For a
group to function well a bond needs to be developed so that individual differences can be used
for the wider interests of the group. Cohesiveness is the term used to describe this mutual
bonding between members, with each having a strong sense of belonging to the group.
 Cohesiveness is, in part, the measure of the success of the group. A group with more
cohesiveness is more likely to keep its members than that of a group with little cohesiveness.
Members of a high-cohesive group are likely to talk in group terms, using 'we' instead of 'I'
when talking about group activities. The more cohesive a group the greater the sense of team
spirit and the more individual members will cooperate with each other. A low-cohesive group
may find that members frequently miss meetings; sub-groups or cliques may form within the
original group and there is likely to be an underlying sense of frustration as the goals of the
group are less likely to be attained.
Types of Teams
 There are several types of teams that exist in the organization. These types of team can be
enumerated as follows:
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 Temporary teams: These kinds of teams are formed for a shorter duration either to assist the
permanent team or work when the members of the permanent team are busy in some other
project. An example of a temporary team is a task force that is asked to address a specific
issue or problem until it is resolved. Other teams may be temporary or ongoing, such as
product development teams. In addition, matrix organizations have cross-functional teams in
which individuals from different parts of the organization staff the team, which may be
temporary or longstanding in nature.
DSSSSAAA
 Virtual teams: These teams in which members are not located in the same physical place.
They may be in different cities, states, or even different countries. Some virtual teams are
formed by necessity, such as to take advantage of lower labor costs in different countries with
upwards of 8.4 million individuals working virtually in at least one team (Ahuja & Galvin, 2003).
Often, virtual teams are formed to take advantage of distributed expertise or time—the needed
experts may be living in different cities. A company that sells products around the world, for
example, may need technologists who can solve customer problems at any hour of the day or
night.
 Top management teams: They are appointed by the chief executive officer (CEO) and, ideally,
reflect the skills and areas that the CEO considers vital for the company. There are no formal
rules about top management team design or structure. The top team often includes
representatives from functional areas, such as finance, human resources, and marketing, or
key geographic areas, such as Europe, Asia, and North America. Depending on the company,
other areas may be represented, such as legal counsel or the company‘s chief technologist.
Typical top management team member titles include chief operating officer (COO), chief
financial officer (CFO), chief marketing officer (CMO), or chief technology officer (CTO).
Companies have top teams to help set the company‘s vision and strategic direction.
 Traditional manager-led teams: These are teams in which the manager serves as the team
leader. The manager assigns work to other team members. These types of teams are the most
natural to form with managers having the power to hire and fire team members and being held
accountable for the team‘s results.
 Self-managed teams: These types of teams are a new form of team that rose in popularity
with the Total Quality Movement in the 1980s; also known as empowered teams. Unlike
manager-led teams, these teams manage themselves and do not report directly to a
supervisor. Instead, team members select their own leader, and they may even take turns in
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the leadership role. Self-managed teams also have the power to select new team members. As
a whole. Organizations began to use self-managed teams as a way to reduce hierarchy by
allowing team members to complete tasks and solve problems on their own. The benefits of
self-managed teams extend much further.
 Self-directed teams: Considered as special form of self-managed teams which are also
determined who will lead the members of the team with no external oversight; a self-directed
team is all about having a groupDSSSSAAA
of professionals working toward a common goal. It takes
collaboration to a new level as it ensures that there are different skill sets within the team. Each
person has a specific area of expertise to help the team.
Topic 4: CREATING EFFECTIVE TEAMS
 Team members should always agree on the work that is to be done and who is doing it, so
leadership and structure are important parts of context. Team members should all contribute
equally and share the workload; they should determine schedules, any training needed and so
on. If they are a self-managed team, they can agree by whatever means they determined
decisions might be made, and move on to next steps. Teams don‘t have to have leaders, but if
they do, they should be careful not to obstruct progress and expect great things from this team.
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 If that leader is a part of the team, then the team needs to show trust in that leader. And the
members should trust one another, too. Team members will not spend time monitoring one
another if they trust each other, and they‘ll be more likely to take risks.
 Finally, the team should have an established system for how their performance is evaluated
and rewarded. Performance evaluation and reward systems keep team members individually
and mutually accountable. Individual performance evaluations and reward systems aren‘t
consistent with high-performing teams, so these systems need to recognize team progress as
DSSSSAAA
much, if not more, than individual contribution.
 When determining composition, a manager should consider the:
 Abilities of the members of the team. While we talked before about how the sum of
the team is greater than its parts, an assessment of team members‘ abilities will help a
manager determine what can be accomplished by the team. In order for the team to be
successful, they‘ll need to have three different skills among them—technical expertise,
problem-solving skills, and decision-making skills. A good balance of the three is an
imperative—too much of one and not enough of another will lower a team‘s
performance. It also helps if the team members have good interpersonal skills.
 Personalities of team members. Where personalities of team members are

concerned, teams perform well if there is a ―higher than mean‖ level of traits like
agreeableness and conscientiousness, extraversion and emotional stability.
Interestingly, studies have shown that it‘s more important for the ―higher than mean‖
measurement to include people who all have tendencies toward those characteristics.
For instance, having one person on the team who‘s very conscientious and one who is
not may adversely affect the performance of the team, while two people who are more
conscientious than average will enhance the team‘s performance.
 Roles that will be allocated. Members of a team should be selected with an eye
toward filling all the roles that need to be allocated. There are about nine different roles
needed on a team and, while members can fill more than one of these roles, members
should be matched to those team role demands. Those roles are:
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 The Plant. Creative, imaginative. Solves problems.

 The Resource Investigator. Communicative. Explores opportunities and develops
contacts.
 The Coordinator. Clarifies goals, and promotes decision-making.
 The Shaper. Dynamic, challenging thrives on pressure. Overcomes obstacles.
 The Monitor-Evaluator. Strategic and discerning. Sees all options and judges accurately.
 The Teamworker. Co-operative and perceptive. Listens, builds, averts conflict.
 The Implementer. Conservative and efficient. Turns ideas into practical actions.
 The Completer/Finisher. Conscientious. Searches out errors, meets deadlines.
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 The Specialist. Self-starting and dedicated. Provides knowledge/skills in rare supply.
 These roles are classified into action-oriented roles, people-oriented roles, and thinking-
oriented
 Diversity of team members. The diversity of a team also plays a deciding factor in how
productive and successful the team is. Of course, there needs to be a diversity of skills,
but if a team also features members of diverse age, gender, education, functional
background, and experience, this bodes well for them. Keep in mind, however, that
having a team with individuals from various cultures on a single team often does not
spell instant success, as team members have a longer learning curve understanding
how to work with one another.
 Size of the team. Finally the size of the team makes a difference in a team‘s success.
Studies show that a team should be made up of no more than ten people, and
optimally, no more than exactly the number of team members that are necessary to do
the work. When teams have more members than they need, cohesiveness and mutual
accountability suffer, and social loafing can creep in.
 Beyond those things, managers need to consider if members actually want to be on a team—
there are many individuals who would preferably opt out rather than participate on one, and it‘s
not likely that those employees are going to lend any real value to the group. Furthermore, a
manager can consider an individual‘s flexibility, or their capability as a team member to
complete more than one kind of task. These individuals, if they‘re willing to participate on the
team, are very valuable indeed.
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Article:
WHAT IS THE ROLE OF TEAMS & TEAMWORK IN ORGANIZATIONS TODAY?
Henry Ford once said: ―Coming together is a beginning. Keeping together is progress. Working together
is success." The same holds true in the 21st century. In a constantly changing, interconnected, global economy,
teams and teamwork play a critical role in DSSSSAAA
organizational success. Companies that value and understand
teamwork can accomplish more than a single person, no matter how educated, experienced or trained he may
be.
Continuity
Organizations have an obligation to deliver quality products and prompt service to their clients. Leaving an entire
task to a single individual is risky, because her project can be put on hold due to illness, injury or a personal
emergency -- requiring extended time off. When a company recruits teams of equally qualified individuals to
accomplish a task, other members can carry on the work while one person is gone. This allows the organization
to meet its deadline, eliminating the risk of losing clients due to late service.
Problem Solving
Even the best-laid plans can go wrong. Leaving the solution to a problem in the hands of one person is both
stressful and inefficient. When a team is involved, not only does it distribute the pressure equally, but the diverse
group of people can collaborate to generate solutions that a single employee may not think of. In turn, teams
bring faster -- and better -- resolutions to keep the final product or project on track.
Competition
Competition is a byproduct of teamwork, especially in an environment that gives rewards, promotions or even
simple praise based on individual performance. Team members who consistently try to outdo each other will
build upon their teammates' work in hopes of bringing better solutions, ideas and approaches. In the end, this
brings better results, leading to higher-quality products -- the ultimate benefit being client retention, which leads
to increased revenue.
Interpersonal Relations
Employees who work together get to know each other better. Even if certain employees do not get along, having
a common goal -- especially if it involves group-based incentives -- will motivate them to set aside their
differences. Some organizations contain a diverse workforce. Teamwork allows people of different backgrounds
to provide their own unique, often culturally based ideas to the project. This takes advantage of workplace
diversity, strengthens relations and makes employees feel accepted and valued.
\
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1. Discuss how teams in organization distinct from groups in terms of goal orientation and
complementary individual skills.
2. Recall the time when you became part of a group and discuss your experience with
regard to the 5 stages of group development.
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3. Discuss how entrepreneurial leaders can manage virtual teams effectively. Cite an
example to justify your answer.
4. What issues must a manager address when considering the composition of the team?
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Lesson 7
ENTREPRENEURIAL LEADERSHIP, SUSTAINABILITY, AND GROWTH
OVERVIEW
Small, Medium Enterprises (SMEs) DSSSSAAA

growth depends upon substantive growth capabilities,
which are shaped by the upstream issues of leadership and capability development. There are four
main vectors of growth, which are supported by a large number of growth-oriented actions, and
processes. Management processes facilitating growth include those that support market penetration,
innovation, new product development, new market development and internationalization. Growth is
further supported by a foundation of solid general management processes without which, viable
growth is less likely to occur. Management processes supporting alliances, joint ventures serve to
further accelerate growth. The key resources supporting growth capabilities include financial and
intellectual capital. Financial slack allows for greater exploration, risk taking and pursuit of uncertain
outcomes. Intellectual capital (intellectual property, organizational, human and social capital) is
important as the acquisition and exploitation of new knowledge lie at the heart of growth.
Entrepreneurial leader‘s prior knowledge of the domain (i.e. industry) and prior
entrepreneurial experience exert a strong positive influence on the number of market opportunities
identified. The nature and diversity of knowledge among the entrepreneurial leadership team has a
positive bearing on growth, both directly and indirectly via opportunity identification. Entrepreneurial
cognition, in the absence of motivation, however, may result in knowledge not being put to the most
productive use. The motivation to grow, reflected in leaders‘ growth intentions and goal setting, is an
important determinant of growth. Fear of failure represents a potential barrier to growth. Dynamic
capabilities are central to the development of a sustainable growth path. Evidence suggests that
dynamic capabilities have a positive effect on firm performance, both measured in terms of market and
financial performance relative to firm‘s main competitors and industry averages.
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1. Understand the substantive entrepreneurial growth capabilities of entrepreneurial

leaders;
2. Explain various growth vectors in relation to Ansoff‘s Product/Market Matrix;
3. Discuss the organizational processes that support entrepreneurial growth; and
DSSSSAAAmotivation.
4. Appreciate the concept of entrepreneurial
COURSE MATERIALS:
TOPIC 1: THE SUBSTANTIVE ENTREPRENEURIAL GROWTH CAPABILITIES

 In order to understand how growth is achieved in practice, and how policy may influence
growth choices and actions within firms, we examine the upstream issues of leadership and
capability development, and how these translate into a venture‘s growth capabilities. Research
on the cognitive processes of strategic decision makers suggests that a critical element in the
pursuit of growth opportunities is in the framing of strategic issues and the motivated choices of
leaders and leadership teams. However, knowledge of the role of entrepreneurial leadership,
cognitions and motivations in SME growth remains limited.
 Leaders need to be both willing and able to grow their firms. Therefore, policy should promote
growth-oriented training programs that develop leaders‘ entrepreneurial cognitions and
motivations, as well as their knowledge and abilities. The programs should disseminate best
practice for opportunity identification, growth capabilities and goal setting. Leaders of SMEs,
however, are often unable/unwilling to invest in growth. Therefore, additional support may be
directed towards assisting SMEs in accumulating both the financial and intellectual capital
required for growth. Also, since such investment is often motivated by important customers,
policy should focus on supply chain development to indirectly promote capability building in
SMEs.
Framework of Entrepreneurial Leadership, Capabilities, and Growth
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 An organization is described as having growth capabilities if over time it achieves growth along
one or more dimension (e.g., size, market share, profitability, assets). While growth may well
occur as a result of luck rather than judgment,10 since our interest is in the possibility of
practical and policy recommendations, we focus on deliberate growth. The notion of growth
capabilities implies that the growth-creating processes can be successfully repeated over time,
and form routines.
 Underlying growth capabilities are resources (e.g., knowledge and financial

assets) and organizational processes as well as managerial decisions with respect to those
resources and processes. Processes transform inputs into outputs (e.g., export market
identification; new product development), and very often rely heavily upon intangible resources
such as knowledge, intellectual property, human and social capital. Organizational processes
―evolve‖ over time as a result of learning-by-doing, trial and error, experimentation and
improvisation. When specific processes are found to be effective, they tend to be repeated and
become routinized. Although the notion of routine is somewhat abstract, it may be defined as
―repetitive, recognizable patterns of interdependent actions, carried out by multiple
actors‖.
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 Because they are based upon learning, intangible resources, such as human and social
capital, are key to the creation of new routines. Thus, growth capabilities involve combinations
of complementary resources and processes. However, both managerial choices and the
capacity for organizational learning and adaptation (i.e., dynamic capabilities, are essential
sources of the development of growth capabilities. After describing the different growth vectors
in the following section, we then turn to the processes and resources that have been found to
be empirically associated with firm growth.
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The Growth Vectors
 It is generally acknowledged that there are four fundamental vectors for growth (that reflect
newness in the two dimensions of products and markets. Growth achieved by increasing
revenues from existing product/market combinations involves greater market penetration. In
contrast, growth through the introduction of new products or services to existing markets
implies new product development. Alternatively, existing products may be introduced to new
markets through either internationalization or domestic new market development activities.
Finally, ms may attempt to grow through the pursuit of new markets with new products or
services. This vector for growth implies the diversification of organizational activities away from
existing ―knowns‖ in terms of both products and markets. Developing new ventures in
unfamiliar markets is therefore the most uncertain and risky, although provides the greatest
opportunity for new growth by extending a firm‘s activities.
Ansoff’s Product/Market Growth Matrix
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 The Ansoff Matrix, also called the Product/Market Expansion Grid, is a tool used by firms to
analyze and plan their strategies for growth. The matrix shows four strategies that can be used
to help a firm grow and also analyzes the risk associated with each strategy.
 These four growth vectors may be pursued organically through internal development only, or
through external, acquisitive growth. Although there are exceptions, younger and smaller
enterprises tend to emphasize organic growth, while more established and larger organizations
more frequently emphasize acquisitive growth.18 Growth may also be accelerated through
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corporate venture capital investments, alliances and joint ventures, which create access to
sources of external knowledge and capabilities.
TOPIC 2: ORGANIZATIONAL PROCESSES SUPPORTING GROWTH

 The processes and routines that support growth develop as a result of organizational learning.
Initially, the establishment of a new process may be the result of an improvised or experimental
response to a specific opportunity. If a process is successful it is more likely to become
planned and repeated, and eventually the most successful processes develop into
organizational routines. Strategic capabilities refer to a firm‘s capacity to routinely deploy
resources including knowledge, in combination with strategically important organizational
processes, to affect a desired end. Thus, when growth oriented processes become effective
routines they can be said to contribute to growth capabilities24 and their influence is evident in
one or more dimension of growth outcome such as increases in sales revenues, profitability,
market share, employment, or assets. Research has identified a wide range of specific
organizational processes underlying growth. While there is significant variation in growth
processes in practice, there are also common elements and best practices that can be
enumerated as follows:
 Market penetration, new product development and new market development.

Market penetration through organic growth is dependent on the expansion and
continuous improvement of existing activities. A market orientation
and/or focus on continuous improvement in terms of product or process
increases quality or productivity or both, which enhance the value proposition and lead
to increased sales.27 Several organizational processes are supportive of growth
through market penetration, for examples are customer feedback processes, strategic
positioning and pricing, continuous improvement processes, and strategic supply chain
management.
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 Innovation and new product development. It is central where the desired growth
involves new products and services, whether in existing, or new markets. Successful
new product innovation is associated with organizational growth in both sales and
employment and also supports internationalization. Several best practice processes
support the knowledge acquisition, knowledge creation, and knowledge integration
required for the creation of innovative new products and services, for example:
 Customer intelligence
DSSSSAAA and market sensing
 Systematic acquisition and exploitation of new external knowledge
 Brokering knowledge from one application or context to another
 Formal new product development processes
 New market development and internationalization. This expands the potential

sales of existing products into new markets as well as opening opportunities for the
creation of new products and services tailored to new market demands. Systematic
growth driven by internationalization rests upon several organizational processes,
including:\
 Strategic analysis of countries, markets, competition and risk

 Entry-mode choice (e.g., exporting; licensing; joint ventures; foreign
direct investment)
 Entry mode execution
Growth Accelerators
 Alliances and Joint Ventures offer opportunities for firms with limited resources to access
capabilities (e.g., in production, marketing, distribution) and grow more rapidly than purely
internal growth would allow. Alliances and joint ventures enable risk sharing and are
particularly advantageous where outcomes are uncertain.34 Several alliance processes have
been identified35 including identification of partners, alliance formation and structuring,
maintenance of productive alliance relationships, and acquisition and integration of new
knowledge and capabilities. Although much extant research on alliances and joint ventures is
based on samples of larger and publicly traded firms, a significant proportion of all
alliances involve large firms partnering with SMEs. Furthermore, evidence indicates that
management processes observed in the context of large firms (e.g., identification of partners,
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alliance structuring and governance, managing the relationship, integrating new knowledge)
are equally relevant to SMEs.37 However, there are unique challenges for SMEs arising from
their inherent resource constraints (particularly less experience and managerial capital) and
weaker bargaining power.
 Acquisitions offer a faster route to growth by providing access to new capabilities, markets, or
both. In addition, acquisitions may enable a recombination of resources that liberates new
potential growth paths for a venture. Acquisitions, however, very often fail to achieve desired
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results. While defining and assessing performance of merger and acquisition (M&A) activities is
not an easy task, a meta-analysis of post-acquisition performance across studies suggests
that, when the declared objectives of the acquisition are taken into account, only 56 per cent of
M&A are successful.
TOPIC 3: ENTREPRENEURIAL MOTIVATION

 Knowledge and experience profile of the leader and leadership team can influence growth
directly and /or indirectly. In the absence of motivation, however, knowledge may not be
put to the most productive use. Perceiving and acting upon opportunities for growth is based,
at least in part, on intentional behaviour. Intentions capture the motivational factors that
influence behaviour; they are indications of how hard people are willing to try, of how much of
an effort they are planning to exert in order to perform the behavior.
 Entrepreneurs differ in terms of their orientation and intentions towards growth. Further, growth
intentions (broadly defined to include aspirations, expectations) predict growth. The
entrepreneurial intentions literature suggests that intentions depend on two main antecedents;
perceived desirability and perceived feasibility. Perceived desirability has been measured by
the individual's attitudes to incomes, to risk, to decision-making autonomy, work effort and work
enjoyment. Growth oriented entrepreneurs have been found to have a more negative attitude
towards work enjoyment (than more independence oriented entrepreneurs)119 and tend to
attach more significance to financial success.
 Perceived feasibility is frequently measured by ‗entrepreneurial self-efficacy’ (i.e. the

strength of a person‘s belief that he or she is capable of successfully performing the various
roles and tasks of entrepreneurship). Put simply, self-efficacy is task-specific self-confidence.
Self-efficacy enhances focus, direction, persistence, and intensity of action. Without self-
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efficacy, little will happen. Entrepreneurs with high self-efficacy believe that they have all of the
resources within themselves, and at hand, to accomplish their task goals. Entrepreneurial
self-efficacy has been found to be a strong predictor of growth orientation as well as both the
short-term and longer-term growth of new ventures.
 Among motivation theories, one of the most widely accepted theories is goal setting theory.
Research shows that specific, challenging goals result in higher performance than vague and /
or easy goals (given adequate commitment,
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to hold true for SMEs.
Entrepreneurial Motivation Linked to Goal-Setting Theory

 Goal-setting theory of motivation states that specific and challenging goals along with
appropriate feedback contribute to higher and better task performance. Goals indicate and give
direction to leaders and teams about what needs to be done and how much effort is required to
be put in.
 The evidence above suggests the motivation to grow, reflected in growth intentions and goal
setting, is an important determinant of growth. What is less clear from the evidence is how
collective motivation emerges in SMEs. We know that entrepreneurs vary in terms of their
motivations for engaging in entrepreneurship (e.g. financial wealth, autonomy etc.). This has
implications for the extent to which growth is seen as desirable and as a result, growth
intentions. If some team members are primarily motivated by autonomy and control and others
by financial return, growth ambitions may not be aligned. Further, growth intentions are
influenced by feasibility. If only some team members believe they have or can access or
develop the necessary resources and capabilities for growth, overall growth intentions
may not be high enough to drive growth behaviours. Some individual team members may have
high entrepreneurial self-efficacy, and others not. We do not yet know what implications of
heterogeneity with respect of entrepreneurial self-efficacy may be. Further, there is an
opportunity to explore the development and effects of collective entrepreneurial efficacy in
SME leadership teams.
 Setting challenging goals enhances growth, how do leadership teams set goals? What is the
relationship between individual goals and motivations for the business and team goals?
What is the role of leadership in setting goals? The limited evidence on the leadership of new
ventures is mixed. Directive leadership (whereby leaders instruct and command followers to
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carry out designated tasks, assign specific non-negotiable goals, and use contingent
reprimands to facilitate cooperation from group members) was found to be particularly
beneficial to heterogeneous teams (in terms of functional and educational background as well
as skills) operating in dynamic environments. In contrast in stable industry environments,
heterogeneous leadership teams benefited from more empowering leadership (which
encourages self-rewards, self-leadership, opportunity thinking, participative goal setting, and
independent behaviour by team members).
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Article:
WE NEED INNOVATION IN LEADERSHIP. HERE’S HOW TO TEACH IT
Babson Professor and Associate Dean of Graduate Programs and Innovation Sebastian Fixson has
decades of experience teaching innovation, and the research to back it up. Fixson knows that to be
an entrepreneurial leader, one must learn how to listen. ―In a highly uncertain environment, entrepreneurial
leaders combine the courage to act with the humility to listen to others to ultimately create solutions that
are beneficial for all stakeholders,‖ said Fixson.
So, then, how does one teach innovation in leadership?
Innovation can mean many different things to different people, Fixson says. In the popular press, for
example, innovation is equated to gadgets such as cell phones. ―But, if you take a step back and look at the
bigger picture, innovation really is an organizational capability. And, it‘s required for organizational growth and
renewal. Creating the conditions for this capability to emerge, grow, and flourish is a leadership task,‖ he said.
How to Teach Innovation in Leadership
First, Fixson puts his students in a variety of settings designed to teach them different aspects of
innovation. This also highlights what it means to be an entrepreneurial leader. ―One such scenario is a semester-
long MBA elective, Product Design and Development (PDD),‖ said Fixson. ―The setting is teams of four or five.
The students do user research, generate concepts, build prototypes, and test their ideas, mostly around small
consumer products.‖ In this setting, after three months, students have prototypes. And, they have hands-on
experience with different aspects of innovation in leadership.
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―One team researched and designed an urn for sea burials for an external client company. This project was
interesting because, through detailed user research, the team learned about a technical feature of the product
that was critical for its success,‖ explained Fixson.
Fixson developed courses to teach innovation on the organizational level. In Innovation Processes,
Fixson teaches students to create organizational structures and management systems that empower others to
be innovative. ―The ability to innovate, with its underlying skills and mindset, is now more important than ever.
The new environment, with a much greater virtual component of teaching and learning, presents a great
opportunity to innovate teaching in the serviceDSSSSAAA
of teaching innovation,‖ said Fixson.
1. Explain how developing new markets can be risky to an enterprise but at the same
time can be an opportunity for an enterprise to grow.
2. Discuss at least two entrepreneurial ventures that have effective organizational

processes when it comes to their resources and management leadership.
3. Why is motivation an important factor for an entrepreneurial success? Cite an axample

to briefly elaborate your answer.
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Lesson 8
STRATEGIC LEADERSHIP
OVERVIEW
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It is essential to understand that strategic leadership isn‘t just a tool for organizing a group or
managing the operational aspect of a company. The purpose of the strategy involves changing or
creating an organizational structure, which is better equipped for achieving the organization‘s goals.
Therefore, the aim of strategic leadership always includes an aspect of transformation. It is about
creating a vision that helps to move the organization from point A to point B. The requirement for
change can stem from a variety of places and it doesn‘t need to necessarily be about saving a failing
organization, for instance. While strategic leadership is helpful in boosting company performance and
could help solve the structural issues within an organization, the transformation can be driven by a
positive need to reinvent rather than just finding ways to survive.
Improvements in productivity are often at the heart of strategic leadership. In a typical strategic
leadership framework, these changes are supported by subordinate development rather than cuts in
the operational structure. The style believes in empowerment through enhanced understanding, which
is mainly driven by its focus on both short- and long-term objectives. Strategic leadership is never
about a quick fix, as it requires the organization to look to the future whenever it is implementing a
change or making a decision. Therefore, things, such as firing employees, can be seen as
counterproductive in terms of future growth and succession planning, for example.
Overall, the aim of strategic leadership is to prepare the organization for whatever future might
bring. The style calls for predictive behavior and analytical decision-making. Actions should not be
taken simply by focusing on the current, but each decision needs to implement an understanding of
different future events and possibilities. The vision for the organization should focus on the future and
the strategic leadership model needs to prepare the organization for whatever the future might have in
store for it.
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1. Understand and describe the concept of strategic leadership, its objectives,

advantages and disadvantages;
2. Compare and contrast the different strategic leadership styles; and
3. Analyze the need for a combined leadership approach in leading the organization.
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COURSE MATERIALS
Topic 1: THE CONCEPT OF STRATEGIC LEADERSHIP

 In order to understand what the strategic framework looks like in action, you need to dissect it.
This essentially means looking at the definition of strategy and how it can be linked to
leadership. Furthermore, you need to examine the purpose of strategic leadership, as it can
help realize the requirements and objectives of using this style.
 Strategy is definitely a word the business world can‘t get enough of. It is regularly flashed
around, but what exactly does it mean to define things as strategic? The word is derived from
the Greek word ‗stratêgia‘, which means art of troop leader; office of general, command,
general ship; defines as a plan of action designed to achieve a long-term or overall aim.
 Therefore, strategy is about drawing up a set of steps and processes, which can help in
achieving a pre-determined objective. To have a strategy, a leader needs to first formulate an
understanding of the situation and the objectives at hand. Once, formulated an action plan, the
leader must implement it, following the guidelines have established.
 Strategic leadership refers to a manager‘s potential to express a strategic vision for the
organization, or a part of the organization, and to motivate and persuade others to acquire that
vision. Strategic leadership can also be defined as utilizing strategy in the management of
employees. It is the potential to influence organizational members and to execute
organizational change. Strategic leaders create organizational structure, allocate resources
and express strategic vision. Strategic leaders work in an ambiguous environment on very
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difficult issues that influence and are influenced by occasions and organizations external to
their own.
 The main objective of strategic leadership is strategic productivity. Another aim of strategic
leadership is to develop an environment in which employees forecast the organization’s needs
in context of their own job. Strategic leaders encourage the employees in an organization to
follow their own ideas. Strategic leaders make greater use of reward and incentive system for
encouraging productive and quality employees to show much better performance for their
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organization. Functional strategic leadership is about inventiveness, perception, and planning
to assist an individual in realizing his objectives and goals. Strategic leadership requires the
potential to foresee and comprehend the work environment. It requires objectivity and potential
to look at the broader picture.
 A few main of effective strategic leaders that do lead to superior performance are as follows:
 Loyalty- Powerful and effective leaders demonstrate their loyalty to their vision by their words and
actions.
 Keeping them updated- Efficient and effective leaders keep themselves updated about what is
happening within their organization. They have various formal and informal sources of
information in the organization.
 Judicious use of power- Strategic leaders makes a very wise use of their power. They must play
the power game skillfully and try to develop consent for their ideas rather than forcing their ideas
upon others. They must push their ideas gradually.
 Have wider perspective/outlook- Strategic leaders just don‘t have skills in their narrow specialty
but they have a little knowledge about a lot of things.
 Motivation- Strategic leaders must have a zeal for work that goes beyond money and power and
also they should have an inclination to achieve goals with energy and determination.
 Compassion- Strategic leaders must understand the views and feelings of their subordinates,
and make decisions after considering them.
 Self-control- Strategic leaders must have the potential to control distracting/disturbing moods and
desires, i.e., they must think before acting.
 Social skills- Strategic leaders must be friendly and social.
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 Self-awareness- Strategic leaders must have the potential to understand their own moods and
emotions, as well as their impact on others.
 Readiness to delegate and authorize- Effective leaders are proficient at delegation. They are well
aware of the fact that delegation will avoid overloading of responsibilities on the leaders. They
also recognize the fact that authorizing the subordinates to make decisions will motivate them a
lot.
 Articulacy- Strong leaders are articulate enough to communicate the vision(vision of where the
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organization should head) to the organizational members in terms that boost those members.
 Constancy/ Reliability- Strategic leaders constantly convey their vision until it becomes a
component of organizational culture.
Advantages and Disadvantages of Strategic Leadership
Advantages:
 Provide a more clarity in the decision-making process because it sets out the benchmarks
of which actions and choices are measured against. The leader and the subordinates have a
roadmap ahead of them, which guides them in all of their actions. Furthermore, since strategic
leadership emphasizes the whole organization, rather than a narrow focus on specific sections,
the entire organization will be moving towards the same goal.
 It adds more clarity to operations as well. Having a clearly defined vision will make it easier
for subordinates to understand why things are done the way they are. The objectives are clear,
making it easier to implement procedures that move the organization towards them. Strategic
leadership doesn‘t just focus on the operational structure and the decision-making processes
of the organization, but also the corporate culture and values.
 The strategic leadership‘s action plan creates a set of objectives and tasks, which are
clearly defined. This creates a situation where each of these goals and processes can be
measured. By measuring performance and achievement, the organization can create a
stronger understanding of what it is doing right and the areas it needs to develop and improve
further.
 It provides an organizational perspective by examining the different components and trying

to predict the future, the leadership framework has a wider understanding of the organizational
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components. Not only does the framework help understand how specific sectors within the
company impact each other, it also provides a deeper insight into how the organization relates
to the wider industry. This organizational perspective can help the company better prepare
against competition and the future changes within the market, ensuring it is equipped to
answer when changes take place in the sector.
Disadvantages:
 Reliance on predicting the future. DSSSSAAA

When it comes to drafting the policies and guidelines, the
framework tries to assess what the future might bring and therefore to understand its impact on
the operations. After the predictions, the strategic framework implements the decisions it sees
fit with this information in mind. The problem is that predicting the future is not only hard, but
it‘s impossible. It naturally helps to consider the different elements and to look into the
possibilities of ‗what might be‘. But relying on guesswork will never guarantee the choices you
make are the correct ones.
 It has a limited focus on long-term goals can hinder the short-term profitability and
productivity of a company. As the choices the company makes will always consider the long-
term impact of them, the creation of profit and improvements in productivity might take a
second-place in the decision-making process. In certain companies, this could be a potential
problem in dealing with investors and other stakeholders. Furthermore, if an organization is in
an immediate trouble financially, for example, the strategic leadership style can be too slow to
react to the issues.
 Strategic leadership style can be rather inflexible. In order to counter the rigidness, the
framework has to emphasize innovation in its action plan. If it doesn‘t, creativity can stifle. This
is down to the fact that strategy often creates established routines, which can lead to the
organization becoming slow in reacting to change. In addition, the formal processes can
generate an environment where new opportunities are not properly explored, but are simply
rejected based on the set vision and strategy. In addition to inflexibility, the strategic leadership
framework is a rather complex one to implement.
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Topic 2: STRATEGIC LEADERSHIP THEORIES

 Strategic leadership theory has evolved from the original upper echelons theory developed by
Hambrick and Mason (1984) to a study of not only the instrumental ways in which the dominant
coalition impacts organizational outcomes but also the symbolism and social construction of
top executives. Two distinctions between the terms leadership and strategic leadership. First,
leadership theory refers to leaders at any level in the organization, whereas strategic
leadership theory refers to the study of people at the top of the organization. Second,
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leadership research focuses particularly on the relationship between leaders and followers. In
fact, this relationship has been examined from many perspectives. Trait and style approaches
focus on leaders; information-processing approaches and implicit theories of leadership focus
on followers while sociological approaches and substitutes for leadership models focus on
contexts and contingency approaches, leader-member exchange theory, individualized
leadership models, and social constructionist approaches focus on the nature of interactions
among leaders, followers, and contexts.
 Emerging strategic leadership theories can be enumerated as follows:
 THE TRAIT THEORY. Trait theories are born from the great man theory—or the
theory that says leaders are born and not made. Here, the underlying theory is that we
are all born with innate characteristics. If we happen to possess leadership
characteristics, then we‘ll end up as leaders. This theory is based on the ―big five‖
personality factors we all possess to varying degrees:
 Openness to experience: Leaders tend to be open to new situations and new

stimulations. They change jobs often, explore new countries regularly, and are
outgoing by default.
 Conscientiousness: Leaders are hardworking, thorough, and precise.
 Extroversion: Great leaders like to communicate. They love meeting new people, and
they like to talk to others. Extroversion is highly correlated with success.
 Agreeableness: This trait refers to the degree to which a person wants people around
them and whether the group working around the individual works well together. Folks
who score high on this trait tend to be very warm and considering.
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 Neuroticism: This refers to the degree to which an individual experiences negative

emotions—like anxiety, depression, and mood swings. Great leaders score low here.
 The trait theory has had its fair share of critics. Leadership behavior is influenced by
more than five central traits, after all. The theory ignores things like intelligence
(especially emotional intelligence), experience, and values. Further, it doesn‘t take into
account the fact that we are adaptable creatures. If a very talented member of the
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team were thrust into management overnight, eventually they‘d figure it out.
 THE TRANSACTIONAL THEORY. This theory suggests that good leaders reward positive
actions and punish negative actions. Transactional leaders set goals, articulate explicit
agreements regarding what the leader expects from organizational members and how they will
be rewarded for their efforts and commitment, and provide constructive feedback to keep
everybody on task. Operating within an existing system, transactional leaders seek to
strengthen an organization‘s culture, strategy, and structure.
 THE TRANSFORMATIONAL THEORY. This theory suggests that great leaders can
stimulate their employees to be more creative and reach their full potential. Increasingly, this is
becoming the most prominent and dominant leadership theory. Transformational leadership, in
contrast, is charismatic, inspirational, intellectually stimulating, and individually considerate.
The leaders help individuals transcend their self-interest for the sake of the larger vision of the
firm. They inspire others with their vision, create excitement through their enthusiasm, and
puncture time-worn assumptions through their resolve to reframe the future, question the tried-
and-true, and have everybody do the same. A transformational leaders possess five attributes
such as:
1. A positive vision;
2. A need for power;
3. A focus on achievements;
4. An ability to focus on positive emotions and avoid negative ones; and
5. An ability to take reasonable risks.
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Topic 3: NEED FOR A COMBINED LEADERSHIP STYLES

 The fundamental premise of our model is based on a contingent view of leadership: at certain
times organizational learning processes thrive under transactional leadership, and at other
times they benefit more from transformational leadership. Particularly in times of change, these
processes make evident the need to alter the firm‘s institutionalized learning—a task best
suited to transformational leadership. In times of stability, organizational learning processes
serve to refresh, reinforce, and refine current learning—a task best suited to transactional
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leadership. However, this contingent characterization presents a very gestalt view of the
dominant processes in an organization.
 An ideal strategic leader would be able to identify—and exercise—the leadership behaviors

appropriate for the circumstances. An effective leader, for example, would recognize when
feed-forward or feedback learning is called for, or when a particular learning stock needs to be
developed, and what type of leadership style would best accomplish that objective. There is
evidence that leaders may possess both transactional and transformational behaviors.
 Recent research has suggested that transformational leadership builds on transactional

leadership and, in particular, on contingent reward behaviors; honoring transactional
agreements, leaders build trust, dependability, and an image of consistency among
organizational members. These can contribute to the high levels of trust and respect
associated with transformational leaders. In addition, a leader may excel at transformational
behaviors but may choose transactional behaviors when needed; this is Quinn‘s (1988)
concept of a ―master manager.‖
 Furthermore, given the speed and complexity of today‘s competitive environments, strategic
leaders need to be ―ambidextrous‖ that is, they need the capacity to simultaneously implement
diverse courses of action: incremental and discontinuous innovation, exploration and
exploitation, flexibility and control, and feed-forward and feedback learning. This is also
consistent with Rowe‘s (2001) description of strategic leaders who combine managerial
leadership – sensitive to the past and visionary leadership—future oriented.
 The ability to adapt leadership styles, however, differs across leadership because they differ in
their values, orientations, and preferences, as well as in their effectiveness as transactional or
transformational leaders. Two characteristics of emotional leadership based on Goleman
(1998) are self-awareness and self-regulation—would particularly help strategic leaders to
assess their own ability to adapt their moods and behaviors to the needs of the situation. The
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ideal leader might recognize his or her limitations and share the leadership of organizational
learning with colleagues in the top management group.
 Having an ambidextrous leader in the organization would be seeing this capacity ensconced in
the top management team and making allowances for the integration process. Researchers
have suggested that diverse leadership styles within the dominant coalition might serve as well
as an ambidextrous leader. Organizations that have incorporated the chief learning/knowledge
officer position within their top management teams may communicate with this move not only
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their commitment to learning but their intent to achieve the leadership profile needed for
organizational learning.
Strategic Leadership and Learning Flows
 Managing organizational learning requires top executives to be both transformational

and transactional but that these leadership behaviors play different roles in the
processes of exploration (feed-forward learning) and exploitation (feedback learning).
On the one hand, transformational leadership, as the term suggests, best suits
situations involving a change to the existing order of institutionalized learning (the
firm‘s strategy and routines, for example). Transactional leadership, on the other hand,
is appropriate for situations involving current learning and its institutionalization,
reinforcement, and refinement.
 The feed-forward learning flow may begin with individuals‘ intuitive insights and experiences.
These, after being filtered through individual perceptions and shaped through group
conversations, emerge as shared understanding and may, in time, become integrated into a
sense of collective action. Finally, coherent collective actions may take root, become routines,
and grow into institutionalized plans and formal systems. We argue that there are conditions
under which top executives‘ transformational and transactional leadership behaviors positively
impact the feed-forward flow of learning.
 Feedback learning flow relates to the way in which institutionalized learning (culture,
structures, systems, procedures, and strategy) affects individuals and groups; this flow is about
refreshing and rein forcing learning—ensuring that routines are not neglected or forgotten so
that the organization can continue to produce and perform (Crossan et al., 1999). Actions
making up the institutionalizing process feed back to individuals and groups by creating a
context through which they interpret subsequent events and experiences. This process
involves changes in cognition and behavior, as individuals and groups continue to make sense
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of prior routines when contexts shift. Firms that lack feedback learning ―fail to remember‖; their
members disregard past learning, and, since routines fail to provide guidance, individual
learning is driven entirely by the context. Feedback learning also operates in situations where a
newly institutionalized routine needs to be communicated (horizontally and vertically) to the
organization so that all members, not just the ones who developed the routine, will learn and
use it. This describes the situation of ―new hires‖ who, being unfamiliar with the firm‘s
repository of learning, use orientation programs, procedure manuals, and direct observation of
organizational practices and values to acquire the necessary current organization level
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learning.
Article:
THE WORLD’S FAMOUS STRATEGIC LEADERS
HILLARY RODHAM CLINTON

Politics requires plenty of strategic abilities because of the dynamic nature of the industry. A political leader
needs to have a vision and a plan for achieving the objectives in order to succeed. While there are many
examples of political leaders who‘ve used strategic leadership, Hillary Rodham Clinton is one such example. The
former Secretary of State and the First Lady of the US has applied visionary thinking with actual strategies of
getting things done. One of the clearest examples of her strategic abilities came during her husband‘s first
presidency. Mrs Clinton was in charge of transforming the country‘s healthcare system, even at a great personal
cost. The issue had been brewing in the US for a long time, but no one had the vision and strength to implement
change within the sector. Although Mrs Clinton failed to implement the kind of healthcare plan she and her
husband wanted to, the process did start a conversation in the country and eventually helped President Barack
Obama pass his healthcare reforms.
Furthermore, Mrs Clinton applied the steps of a strategic leader during the process. She studied the healthcare
system in the country closely and the problems it faced, she set up systems to get the citizens involved with the
process, she outlined a detailed program for achieving the objectives the committee set out, and worked
together with both American political parties in order to implement those changes.
STEVEN SPIELBERG
A rather different example of a strategic leader comes from the world of entertainment. The award-winning
director Steven Spielberg has showcased how the leadership framework can be used when contributing to the
world of cinema as well. Not only has his movies applied visionary and strategic tactics that enthral the audience
– consider, for example, his decision to not show the shark until the final stages of Jaws – but also in how he
approaches his projects as a whole. Spielberg is not afraid to tackle the big social issues that are being debated
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and his style of creating movies is therefore challenging and forward-looking. Ed Burns, an actor who worked
with Spielberg in the movie Saving Private Ryan, gave interesting insights into how the director operates in his
book Independent Ed. Business Insider reported on how Burns writes about Spielberg‘s unique way of leading
actors to discover their own way, instead of fully directing them towards the right direction. The director simply
explains the vision and then leaves the actors to making the right decisions based on this vision. To Spielberg,
it‘s not about telling others what to do, but helping them understand the direction together.
HOWARD HUGHES.
He might be among the most eccentric leadersDSSSSAAA
the business world has ever seen, but the mysterious and elusive
billionaire showcased certain strategic leadership qualities during his time. Although the businessman will be
best remembered for spending his final years in secret and in fear of germs, he was able to completely transform
the world of aviation and entertainment before his compulsive problems took hold. Hughes was born into a
wealthy family, but he had to quickly take responsibility of the business empire when his mother died when he
was just 16 and his father soon followed her. Hughes understood himself as a leader and an entrepreneur, but
not as a crafter. He hired an administrator to help with the daily grind. The account named Noah Dietrich ran
most of the operations, but Hughes outlined the vision for the business and indulged himself with other projects
on the side.
His love affair with airplanes led him to start building his own aircrafts. Hughes had a clear vision: he wanted to
create the fastest aircraft in the world. Eventually, he managed to do that and simultaneously transformed the
aviation industry as we know it with the introduction of better aerodynamics. The eccentric billionaire also
continued to make movies that he knew the public would like. One of his films, The Outlaw, was banned at the
time, but this publicity only helped make it a popular hit after it was eventually released. He was able to
implement his ideas in a manner that responded to the consumer needs of the time.
1. Make a distinction of a leader and a strategic leader. Provide at least two examples in
explaining your answer.
2. Discuss the importance of strategy in leading teams and organizational goal attainment.
3. Enumerate and discuss the similarities and differences of the 3 strategic leadership
theories.
4. Why is there relevant for an entrepreneurial leader to reconcile various leadership

styles? Explain briefly your answer.
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Lesson 9
THE ROLE OF COMMUNICATION IN EFFECTIVE LEADERSHIP
OVERVIEW DSSSSAAA
Communication is a core leadership function. Effective communication and effective leadership

are closely intertwined. Leaders need to be skilled communicators in countless relationships at the
organizational level, in communities and groups, and sometimes on a global scale. Leaders need to
think with clarity, express ideas, and share information with a multitude of audiences. They must learn
to handle the rapid flows of information within the organization, and among customers, partners, and
other stakeholders and influencers.
Communication plays a vital role and is significant quality to be possessed by an effective

leader. They should be able to connect with his team and deliver the thoughts effectively. Through
good communication skills a leader would be able to avoid confusions and misunderstandings within
the team.
Describing effective communication as a 2-way street is passé. Communication is much more

complicated, and leaders at all levels need to know a whole lot more than the mechanics of sending
and receiving information. Effective leadership requires knowing how to communicate with various
groups within an organization, including employees, managers, customers and investors. Each group
may require a different communication and leadership style, and although leaders must be able to
adapt based on the group they are communicating with at the time, there are key principles of effective
leadership communication that universally drive collaboration and success. Communication process
must be execute effectively so that people in the organization can work in harmony and develop good
relationships and understand each other in a better manner.
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1. Discuss the concept of organizational communication, its importance, directions, and

functions;
2. Explain the process of communication in the organization;
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3. Identify the key principles of effective leadership communication; and
4. Develop an understanding on the different barriers to effective leadership

communication.
COURSE MATERIALS:
Topic 1: ORGANIZATIONAL COMMUNICATION
 People within the organization need to be aware of how people behave in order to provide the
best working environment. Organizational behavior is about how people may be motivated to
work together in more effective ways. The interaction required to direct a group toward a set of
common goals is called organizational communication.
 In each of these interactions, we are occasionally satisfied but sometimes frustrated by

incompetence, insensitivity, lack of coordination, and red tape, all of which result from
ineffective organizational communication. A deeper understanding of communication permits
us to better comprehend the factors that contribute to a successful organization.
 It is difficult to come across a job advertisement which does not mention eligibility criteria such
as ―communicativeness‖ or ―communication skills.‖ Concepts such as ―organizational
communication,‖ ―corporate communication‖ or ―business communication‖ long ago became
key terms for management, entrepreneurship and human resources.
 Organizational communication refers to the forms and channels of communication among

members of organizations such as corporations, nonprofits or small businesses. Studies have
found a strong relationship between the levels of communication in an organization and job
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performance and satisfaction. Organizational communication can be formal or informal, flow in

various directions and make use of various media.
Importance of Communication in an Organization
 The importance of communication in an organization can be summarized as follows:
DSSSSAAAby informing and clarifying the employees about

 Communication promotes motivation
the task to be done, the manner they are performing the task, and how to improve their
performance if it is not up to the mark.
 Communication is a source of information to the organizational members for decision-

making process as it helps identifying and assessing alternative course of actions.
 Communication also plays a crucial role in altering individual‘s attitudes, i.e., a well
informed individual will have better attitude than a less-informed individual.
Organizational magazines, journals, meetings and various other forms of oral and
written communication help in moulding individuals‘ attitudes.
 Communication also helps in socializing. One cannot survive without communication.
 Communication also assists in controlling process. It helps controlling organizational

member‘s behavior in various ways. There are various levels of hierarchy and certain
principles and guidelines that employees must follow in an organization. They must
comply with organizational policies, perform their job role efficiently and communicate
any work problem and grievance to their superiors. Thus, communication helps in
controlling function of management.
Directions of Communication
 Organizational communication takes place upward, downward and horizontally. Downward

communication flows from the managerial and executive levels to the staff through formal
channels such as policy manuals, rules and regulations and organizational charts. Upward
communication is initiated by staff and directed at executives; it frequently takes the form of a
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complaint or a request. Horizontal communication occurs when colleagues meet to discuss

issues of common interest, resolve problems and share information.
The Five Primary Functions of Communication
 William Neher (1997) identifies the five primary functions of business communication as
leading, rationalizing, problem-solving,
DSSSSAAAconflict management and compliance gaining.
1. Leading – The function of leading is important to enable management to issue

instructions in a clear, specific manner so that workers are able to follow them
without difficulty. This is generally downward communication.
2. Rationalizing – this function enables management to explain the reasons for

instructions in a way that workers can understand. In this context, it is downward
communication; however, rationalizing is also important for enabling workers to bring
issues to the attention of management, using upward communication to do so. If a
worker identifies a motivation problem, for example, he may communicate this upward
formally to management and use rationalization to highlight the potential impact of the
problem on profitability.
3. Problem-solving – Most companies hold regular meetings to discuss issues such as

production cycles, delivery times, price margins and other areas where unusual
situations could arise that may affect the performance of a business. In these meetings,
organizational communication plays an important role in tabling problems,
brainstorming potential responses and finalizing solutions. In this way, a company
obtains maximum benefit from the abilities of those involved in the communication,
which flows horizontally and often informally.
4. Conflict Management – disagreement in the workplace can lead to the loss of talented
employees, the lodging of grievances and possibly lawsuits. Managing conflict by
bringing all parties together to discuss their differences in a safe, moderated
environment is an important function of organizational communications. This type of
communication usually involves all three directions of communication, and, although
discussions may be informal, the final decisions are usually communicated formally.
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5. Gaining Compliance – This is necessary for them to adhere fully to instructions. To do

this, management needs to listen to feedback from the staff and to take account of their
ideas and comments. Feedback or two-way communication can be both upward and
downward or horizontal and may be formal or informal, but it is important for a company
to enable open communication channels to motivate and achieve the best performance
from employees.
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Topic 2: PROCESS OF ORGANIZATIONAL COMMUNICATION

 Communication is the process containing three elements viz. sender, message and receiver.
These three elements are essential to complete the communication process. The diagram
below shows the process of communicant in the organization.
The Organizational Communication Process
 The following steps are involved for completion of communication process:
 Sender or communicator prepares the message neatly. He is the source where

message is generated. It is he who starts the communication process.
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 The message is to be encoded symbolically which is to be conveyed. This message is

the idea came into the mind of sender which he wanted to convey.
 The message is to be transmitted through a method of communication the choice of

which is to be made. The message may be transmitted orally face to face, through
messenger, through air or a written note in the form of order, memo, leaflet etc. It is up
to sender to make appropriate choice.
 Medium of communication includes telephone, internet, through messenger, post,

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fax, E-mail, etc. The choice of medium again depends on the sender.
 Receiver or communicator is a person for whom message was sent by the sender or
communicator. Receiver after receiving the message must understand it in proper
perspective then only the purpose of communication will be fulfilled.
 The receiver after decoding the message must act or take action as per instructions
contained in the message.
 The last step is to take feedback. The feedback means the sender should know
whether the receiver has received the message and understood it. The confirmation
regarding this is feedback. The positive feedback is effective communication. With
feedback the communication process is complete.
Topic 3: KEY PRINCIPLES OF LEADERSHIP COMMUNICATION

 Communication starts when you take over a new leadership role and need to describe your
leadership philosophy, priorities and goals for the organization. Below are the key techniques
and principles for delivering your messages:
1. Prioritize. Poor communication can take up valuable time and can lead to mistakes. A
leader must ensure that he makes a clear plan before he communicates, including
ordering what you're going to say in a logical way. For example: state the aim of the
task and the desired outcome or explain how long it should take and when the deadline
is.
2. Be visible within the organization. Visibility is about letting the team and key
stakeholders get a feel of the leader‘s presence. It‘s easy to hide behind a computer
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and send messages to others without seeing or interacting with them. Spend some time
face-to-face with employees and other members of the company, visit offices, call
centers, visit stores and other locations. It shows people that you're approachable and
that you care about them. The more visible the leader, the better he‘ll be able to lead.
3. Empathize. Being empathetic means that you are able to identify and understand
others' emotions i.e. imagining yourself in someone else's position. Being empathetic
shows your team that youDSSSSAAA
care. Employees will respect and trust you more if you
empathize and subsequently job performance will improve. To develop empathy:
 Imagine yourself in someone else's position. Even if you have not experienced a similar
situation, remember a situation where you have felt the same emotion your employee is
experiencing.
 Practice listening to your employees without interrupting them.
 Observe your employees and try to gauge how they're feeling.
 Never ignore your employees' emotions, for example, if an employee looks upset don't
disregard this - address it.
 Try to understand first rather than form a judgment. For example, you may initially feel
annoyed at an employee who seems cold and disinterested. However, after discovering
they suffer from social anxiety you may feel more sympathetic.
 To communicate your empathy keep your body language open and regulate your voice
to show your sincerity.
4. Listen actively, effective communication is two-way. Good leaders know how to

ask great questions, and then listen with both their eyes and ears. It‘s easy to be so
focused on getting the message out, or persuading others, that a leader doesn‘t tune in
to what he sees and hears. Because he is a person of authority, he won‘t always get
direct feedback. The leader needs to both listen to what is being said and study non-
verbal cues such as body language, in order to tell the leaders to know what he really
needs to know.
5. Motivate. Encourage team to participate and share their ideas because this will help
them become personally invested in their work and the work of the company. Motivation
will spread to others around them.
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6. Openness. Leaders don't just speak with people who have similar views like their own;
they should also speak to those who have opposing opinions. Show an interest in what
they say with the aim of understanding how they think. This will help leaders own
development as it challenges you.
7. Feedback. With this open-minded outlook, encourage team to provide feedback

including feedback on communication - use an anonymous system so staff feels more
comfortable providing it. DSSSSAAA
8. Lead by Example. Lead by example. By setting an example it shows teams that their
leader is capable of doing what expect from them. It helps get the best out of
employees without explicitly reminding them. If a leader won't follow his own rules and
messages then why should his staff? As the saying goes, ―practice what you preach‖.
People have more of a reason to trust you, when your actions reflect your words. This is
especially important when there has been a crisis or the company is going through a
hard time – the leader must need to show the team how to handle the situation.
9. Confidence. An organizational leader must be confident the way he communicates –

his employees need to believe him and sounding doubtful and negative will have the
opposite effect. By sounding enthusiastic and confident his team will feel more
motivated.
10. Be Consistent. Be consistent. Leaders should want to be recognized for more than
their hard work - they should want to recognize as being fair. Employees don't want a
leader whose moods and attitude are inconsistent; they don't want to be constantly
afraid of provoking a mood swing. People will work hard if they like their leader. As a
leader, his communication style must be fair, kind and consistent so his teams feel
reassured in his presence.
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Topic 4: BARRIERS TO EFFECTIVE LEADERSHIP COMMUNICATION

 Communication between leaders and employees is important for a company to thrive and grow
in. For effective communication to take place, it must be received in the way it was intended to
by the sender. When this doesn‘t happen, it creates the ultimate barrier to achieving desirable
message delivery outcomes. The following are the barriers that stops leader to effectively
communicate:
 Language Barriers – these DSSSSAAA

are the main barriers to effective communication. The
language being used and linguistic ability of the sender and receiver affect the flow of
an effective communication. However, even if the same language is being used to
communicate, the terminology, jargon and abbreviations used in the message may not
be fully understood by the receiver if they are not familiar with it.
 Physical Barriers – These barriers to communication is the actual distance between

the sender and receiver(s). Communication is generally easier to be heard from
shorter distances when a person is speaking at the front of a room. On the other hand,
people who are physically further away from the speaker, or who have physical
problems, may not receive the information clearly.
 Attitudinal Barriers. Language is a human behavior and attitude is everything in any

task we do in our lives, whether it is in the workplace or personal relationships. No
matter how simple or complex the process of our communication is, having a good
attitude is the key to being successful. Attitudinal barriers can be the result of
personality conflicts, poor management, and resistance to change or a lack of
motivation. With the nature of conflict involved in communication, it can be very difficult
to allow the expression of ideas from ourselves and others. This is where having a
good attitude comes in; effective senders and receivers of messages should choose to
overcome their own attitudinal barriers to facilitate effective communication.
 Psychological Barriers. These are due to individual differences between people in

their mentality and behavioral aspects. The most common aspects of the barriers are;
stress, anger and unfamiliar accent. Many people experience stress, anger and
frustration throughout their lives and sometimes it can be difficult to manage or control
our emotions when we communicate. Having bursts of emotions such as anger can
cause distortion of information from sender to receiver. Self-esteem is a personal
strength to help manage any situation with a great capacity of assertiveness.
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 Very few people are aware of their communication skills and mostly blame others when
miscommunication takes place. Language is a tool of transformation, whereas communication
is the behavior of people. It is a process that allows us to give, receive or exchange ideas,
views, messages, enabling individuals and groups to persuade, seek or give information or
express our emotions in order to be understood both in verbal and non-verbal ways. The use
of body language and an emphasis on listening skills are both very important aspects of
effective communication.
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Case:
COMMUNICATION FAILURES
Herb had been with the company for more than eight years and had worked on various R&D and product
enhancement projects for external clients. He had a Ph.D. in engineering and had developed a reputation as a
subject matter expert. Because of his specialized skills, he worked by himself most of the time and interfaced
with the various project teams only during project team meetings. All of that was about to change. Herb‘s
company had just won a two-year contract from one of its best customers. The first year of the contract would be
R&D and the second year would be manufacturing. The company made the decision that the best person
qualified to be the project manager was Herb because of his knowledge of R&D and manufacturing.
Unfortunately, Herb had never take Nany courses in project management, and because of his limited
involvement with previous project teams, there were risks in assigning him as the project manager. But
management believed he could do the job.
Herb‘s team consisted of fourteen people, most of whom would be fulltime for at least the first year of the project.
The four people that Herb would be interfacing with on a daily basis were Alice, Bob, Betty, and Frank.
 Alice was a seasoned veteran who worked with Herb in R&D. Alice had been with the company longer
than Herb and would coordinate the efforts of the R&D personnel.
 Bob also had been with the company longer that Herb and had spent his career in engineering. Bob
would coordinate the engineering efforts and drafting.
 Betty was relatively new to the company. She would be responsible for all reports, records management,
and procurements.
 Frank, a five-year employee with the company, was a manufacturing engineer. Unlike Alice, Bob, and
Betty, Frank would be part time on the project until it was time to prepare the manufacturing plans. For
the first two months of the program, work seemed to be progressing as planned. Everyone understood
their role on the project and there were no critical issues. Herb held weekly teams meetings every Friday
from 2:00 to 3:00 p.m. unfortunately, the next team meeting would fall on Friday the 13th, and that
bothered Herb because he was somewhat superstitious. He was considering cancelling the team
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meeting just for that week but decided against it. At 9:00 a.m., on Friday the 13th, Herb met with his
project sponsor as he always did in the past. Two days before, Herb casually talked to his sponsor in the
hallway and the sponsor told Herb that on Friday the sponsor would like to discuss the cash flow
projections for the next six months and have a discussion on ways to reduce some of the expenditures.
The sponsor had seen some expenditure that bothered him. As soon as Herb entered the sponsor‘s
office, the sponsor said:
It looks like you have no report with you. I specifically recall asking you for a report on the cashflow projections.
Herb was somewhat displeased over this. Herb specifically recalled that this was to be a discussion only and no
report was requested. But Herb knew that ―rank has its privileges‖ and questioning the sponsor‘s communication
DSSSSAAA
skills would be wrong. Obviously, this was not a good start to Friday the 13th.At 10:00 a.m., Alice came into
Herb‘s office and he could see from the expression on her face that she was somewhat distraught. Alice then
spoke: Herb, last Monday I told you that the company was considering me for promotion and the
announcements would be made this morning. Well, I did not get promoted. How come you n ever wrote a letter
of recommendation for me?
Herb remembered the conversation vividly. Alice did say that she was being considered for promotion but never
asked him to write a letter of recommendation. Did Alice expect Herb to read between the lines and try to figure
out what she really meant? Herb expressed his sincere apologies for what happened. Unfortunately, this did not
make Alice feel any better as she stormed out of Herb‘s office. Obviously, Herb‘s day was getting worse and it
was Friday the 13th. No sooner had Alice exited the doorway to Herb‘s office when Bob entered. Herb could tell
that Bob had a problem. Bob then stated:
In one of our team meetings last month, you stated that you had personally contacted some of my engineering
technicians and told them to perform this week‘s tests at 70°F, 90°F and 110°F. You and I know that the
specifications called for testing at 60°F, 80°F and 100°F. That‘s the way it was always done and you were asking
them to perform the tests at different intervals than the specifications called for. Well, it seems that the
engineering technicians forgot the conversation you had with them and did the tests according to the
specification criteria. I assumed that you had followed up your conversation with them with a memo, but that was
not the case. It seems that they forgot. When dealing with my engineering technicians, the standard rule is, ―if it‘s
not in writing, then it hasn‘t been said.‖ From now on, I would recommend that you let me provide the direction to
my engineering technicians. My responsibility is engineering and all requests of my engineering per-sonnet
should go through me.
Yes, Friday the 13th had become a very bad day for Herb. What else could go wrong, Herb thought? It was now
11:30 a.m. and almost time for lunch. Herb was considering locking his office door so that nobody could find him
and then disconnecting his phone. But in walked Betty and Frank, and once again he could tell by the
expressions on their faces that they had a problem. Frank spoke first:
I just received confirmation from procurement that they purchased certain materials which we will need when we
begin manufacturing. We are a year away from beginning manufacturing and, if the final design changes in the
slightest, we will be stuck with costly raw materials that cannot be used. Also, my manufacturing budget did not
have the cash flow for early procurement. I should be involved in all procurement decisions involving
manufacturing. I might have been able to get it cheaper that Betty did. So, how was this decision made without
me? Before Herb could say anything, Betty spoke up: ―Last month, Herb, you asked me to look into the cost of
procuring these materials. I found a great price at one of the vendors and made the decision to purchase them. I
thought that this was what you wanted me to do. This is how we did it in the last company I worked for‖.
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Herb then remarked: ―I just wanted you to determine what the cost would be, not to make the final procurement
decision, which is not your responsibility.‖
Friday the 13th was becoming possibly the worst day in Herb‘s life. Herb decided not to take any further
chances. As soon as Betty and Frank left, Herb immediately sent out e-mails to all of the team members
canceling the team meeting scheduled for 2:00 to 3:00 p.m. that afternoon.
DSSSSAAA
1. Why is communication so important and can be one of the bases of leadership

effectiveness in the organization?
2. What do you think is the most crucial process in the communication process? Why?
Explain your answer citing a business scenario.
3. Remember the time when you became a leader of a certain group or in your
community. List down at least 5 key principles that you think you posses as a leader
and explain why these key principles are important (for you) when managing people.
4. Aside from technology, a variety of factors can impact upon the communication of
information within the organization. Discuss the potential impact of an individual
behavior and the organization structure upon the free flow of information and
communication generally.
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GRADING SYSTEM
Class Standing
 Long test 70%
 Summative test
 Case analysis
 Project Portfolio
DSSSSAAA
Midterm and Final examination 30%
Total 100%
Midterm Grade + Final Term Grade = FINAL GRADE

2
REFERENCES
Ahli, EA. (2017, November 26). Nine Roles of Strategic Leadership. Retrieved from
https://www.skylineuniversity.ac.ae/knowledge-update/from-different-corners/nine-roles-of-strategic-leadership
Applying Leadership Theories at the Workplace. https://corporatefinanceinstitute.com/resources/careers/soft-

skills/leadership-theories/
Dimopoulos, A. (2016, May 31). Strategy is a Greek Word. The National Herald. Retrieved from
https://www.thenationalherald.com/125715/strategy-is-a-greek-word-and-we-need-new-strategies-to-survive/
Galloway, L., Kapasi, I., & Sang, K. (2015). Entrepreneurship, leadership, and the value of feminist approaches
to understanding them. Journal of Small Business Management, 53(3), 683-692.
Greene, C. L. (2013). Entrepreneurship: ideas in action Asia Pte. Limited, 2013

nd
Griffin, R. W. (2012). Human Behavior in Organization 2 edition Moorhead, Gregory. Andover: Cengage
Learning, 2012
Hisrich, D. et. al,.(2008). Entrepreneurship. Boston: McGraw Hill
Hoch, J. and Kozlowski, S. (2012).Leading Virtual Teams: Hierarchical Leadership, Structural Support, and
Shared Team leadership.
P a g e 137 | 147
https://www.bizjournals.com/bizjournals/how-to/growth- strategies/2016/08/wayne-gretzky-and-the-art-of-
differentiation.html
https://www.cleverism.com/strategic-leadership-guide/
https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
https://courses.lumenlearning.com/principlesmanagement/chapter/chapter-10-leading-people-and-organizations/
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https://entrepreneurship.babson.edu/innovation-in-leadership/
https://granite.pressbooks.pub/organizationalcommunication/chapter/chapter-1/
https://www.gretzky.com/bio.php
https://www.inc.com/sujan-patel/10-essential-characteristics-of-highly-successful-.html
https://www.managementstudyguide.com/strategic-leadership.htm
https://openpsychometrics.org/printable/big-five-personality-test.pdf
https://patimes.org/practical-case-studies-in-management-and-leadership-part-ii/
https://www.researchgate.net/profile/Richard_Boyatzis/publication/232604573_Leadership_Motive_Pattern_and
_Long Term_Success_in_Management
https://smallbiztrends.com/2016/04/entrepreneurs-taking-calculated-risks.html
https://thriveglobal.com/stories/how-leaders-can-transcend-barriers-to-effective-communication/
International business, corporate social responsibility and sustainable development. Retrieved from
http://csringreece.gr/files/research/CSR-1290000201.pdf
Leadership in sustainability: Where does Singapore stand? https://www.eco-business.com/opinion/leadership-in-

sustainability-where-does-singapore-stand/
Lockett, A., Hayton, J., Ucbasaran, D., Mole, K., & Hodgkinson, G. (2013). Entrepreneurial leadership,
capabilities and growth. Enterprise Research Centre and Warwick Business School, University of Warwick,
Coventry, CV4 7AL, UK.
Managing Groups and Teams. How do you Manage Global Virtual Teams. Wikibooks.org
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McClelland, D. and Boyatzis, R. Leadership Motive Pattern and Long-Term Success in Management. Journal of
Applied Psychology (1982).
nd
Miller, Katherine (2005). Communication Theories: Perspectives, Processes, and Contexts (2 ed.). McGraw-
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Allyn and Bacon.
DSSSSAAA
Pardee, R. L. (1990). Motivation Theories of Maslow, Herzberg, McGregor & McClelland. A Literature Review of
Selected Theories Dealing with Job Satisfaction and Motivation. Retrieved from
https://files.eric.ed.gov/fulltext/ED316767.pdf
Principles of Management: Leadership. OpenStax (2019).
Rouse, M. (2018, February). What is Strategic Leadership? Retrieved from

https://searchcio.techtarget.com/definition/strategic-leadership
The Integral Leadership Review http://integralleadershipreview.com
The Role of Tomorrow‘s Leaders. Saylor URL: www.saylor.org/bus208 Subunit 1.2
Solomon, G. T., & Tarabishy, A. (2005).A new paradigm: Entrepreneurial leadership. Southern business review,
30(2), 1-10.
Sustainable Corporate Social Responsibility: A case for CEC. Retrieved from https://diggers.news/guest-
diggers/2020/06/30/sustainable-corporate-social-responsibility-a-case-for-cec/
Vera, D., & Crossan, M. (2004). Strategic leadership and organizational learning. Academy of management
review, 29(2), 222-240.
What Is the Role of Teams & Teamwork in Organizations Today? Retrieved from
https://smallbusiness.chron.com/role-teams-teamwork-organizations-today-31096.html
What Makes for An Effective Leader?https://managementhelp.org/leadership/development/leader.htm
Zaccaro, S. J. (2007). The Trait Based Perspective. American psychologist, 62(1), 6.
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ENTREPRENEURIAL LEADERSHIP IN ORGANIZATION

Midterm Examination
Prof. Cresilda M. Bragas, MBA
Part 1: Case Analysis

DSSSSAAA
INDRA NOOYI DRAWS ON VISION AND VALUES TO LEAD
She is among the top 100 most influential people according to Time magazine‘s 2008 list. She has
also ranked number 4 in Forbes‘s ―Most Influential Women in the World‖ (2010), number 1 in Fortune‘s
―50 Most Powerful Women‖ (2006 through 2009), and number 22 in Fortune‘s ―25 Most Powerful
People in Business‖ (2007). The lists go on and on. To those familiar with her work and style, this
should come as no surprise: Even before she became the CEO of PepsiCo Inc. (NYSE: PEP) in 2006,
she was one of the most powerful executives at PepsiCo and one of the two candidates being
groomed for the coveted CEO position. Born in Chennai, India, Nooyi graduated from Yale‘s School of
Management and worked in companies such as the Boston Consulting Group Inc., Motorola Inc., and
ABB Inc. She also led an all-girls rock band in high school, but that is a different story.
What makes her one of the top leaders in the business world today? To start with, she has a clear
vision for PepsiCo, which seems to be the right vision for the company at this point in time. Her vision
is framed under the term ―performance with purpose,‖ which is based on two key ideas: tackling the
obesity epidemic by improving the nutritional status of PepsiCo products and making PepsiCo an
environmentally sustainable company. She is an inspirational speaker and rallies people around her
vision for the company. She has the track record to show that she means what she says. She was
instrumental in PepsiCo‘s acquisition of the food conglomerate Quaker Oats Company and the juice
maker Tropicana Products Inc., both of which have healthy product lines. She is bent on reducing
PepsiCo‘s reliance on high-sugar, high-calorie beverages, and she made sure that PepsiCo removed
trans fats from all its products before its competitors. On the environmental side, she is striving for a
net zero impact on the environment. Among her priorities are plans to reduce the plastic used in
beverage bottles and find biodegradable packaging solutions for PepsiCo products. Her vision is long
term and could be risky for short-term earnings, but it is also timely and important.
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Those who work with her feel challenged by her high-performance standards and expectation of
excellence. She is not afraid to give people negative feedback—and with humor, too. She pushes
people until they come up with a solution to a problem and does not take ―I don‘t know‖ for an answer.
For example, she insisted that her team find an alternative to the expensive palm oil and did not stop
urging them forward until the alternative arrived: rice bran oil.
Nooyi is well liked and respected because she listens to those around her, even when they disagree
with her. Her background cuts across national boundaries, which gives her a true appreciation for
DSSSSAAA
diversity, and she expects those around her to bring their values to work. In fact, when she graduated
from college, she wore a sari to a job interview at Boston Consulting, where she got the job. She is an
unusually collaborative person in the top suite of a Fortune 500 company, and she seeks help and
information when she needs it. She has friendships with three ex-CEOs of PepsiCo who serve as her
informal advisors, and when she was selected to the top position at PepsiCo, she made sure that her
rival for the position got a pay raise and was given influence in the company so she did not lose him.
She says that the best advice she received was from her father, who taught her to assume that people
have good intentions. Nooyi notes that expecting people to have good intentions helps her prevent
misunderstandings and show empathy for them. It seems that she is a role model to other business
leaders around the world, and PepsiCo is well positioned to tackle the challenges the future may bring.
Questions (10 points each)
1. How might a leader like Nooyi influence PepsiCo‘s use of P-O-L-C tools beyond her obvious
role in the leadership dimension?
2. How does charisma relate to leadership? Do you think the CEO of PepsiCo possesses this
characteristic?
3. How much passion does Indra Nooyi seem to bring to her role as the organizational leader of
PepsiCo?
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Part 2: Enumeration
Instructions: Enumerate 5 associated words on the following key terminologies then explain why these words
are associated to them. 10 points for each key terminology.
1. Leadership
a.
b.
c.
DSSSSAAA
d.
e.
Explanation:
2. Entrepreneurship
a.
b.
c.
d.
e.
Explanation:
3. Self-Awareness:
a.
b.
c.
d.
e.
Explanation:
4. Corporate Social Responsibility
a.
b.
c.
d.
e.
Explanation:
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ENTREPRENEURIAL LEADERSHIP IN ORGANIZATION

Final Examination
Prof. Cresilda M. Bragas, MBA
Part 1: Identification (3 points each)

DSSSSAAA
Instructions: Identify where do the following accounts belong in the stages of group development
1. This phase is also known as ―mourning stage‖:

2. Groups have always disagreements and misunderstandings on decision –making:
3. Discussion of member‘s skills, background, and interests:
4. Acceptance is the key for a smooth working relationship:
5. Work relationships can turn into friendship:
6. All are driven to achieve the target goals:
7. Few conflicts still arises but there‘s already cohesiveness:
8. Searching for alliance for a stronger group standards:
9. Learning to embrace individual flaws or leave:
10. Nice, working with you. Till we meet again! :
Part 2: WRITE UP (30 points)
Create a story (either failed or a success on) about communication process in a particular set-up. Use
the communication process diagram in establishing your story. Make sure to also highlights some
important points of communication.
P a g e 143 | 147

Entr 40013 Entrepreneurial Leadership in An Organization

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Polytechnic University of the Philippines

COLLEGE OF BUSINESS ADMINISTRATION

INSTRUCTIONAL MATERIALS FOR

Asst. Professor Cresilda M. Bragas. MBA

LESSON 1: Entrepreneurship and the Entrepreneurial Mindset ...................................................3

Topic 1: The Concept of Entrepreneurship .......................................................................................4

LESSON 2: Leadership Theories and Models ..............................................................................15

Topic 1: Leadership and Its Styles ...................................................................................................16

LESSON 3: Leader’s Cognitive Ambidexterity and Motivation ..................................................43

Topic 1: What is Cognitive Ambidexterity? .......................................................................................44

LESSON 4: A New World of Entrepreneurial Leader: SEERS .......................................................62

Topic 1: The Meaning of SEERS .....................................................................................................63

Topic 1: Who Am I? Leaning from Being Self Aware ......................................................................77

LESSON 6: Leading Groups and Teams in the Organization ......................................................90

LESSON 7: Entrepreneurship Leadership, Sustainability, and Growth ....................................104

LESSON 8: Strategic Leadership .................................................................................................114

After successfully completed this module, students will be able to:

Describe the importance of effective leadership in the success of an organization;

2Determine the relevant roles ofDSSSSAAA

Describe behaviors of effective leaders in a variety of situations;

Understand key principles in entrepreneurial leadership;

Develop entrepreneurial leadership competencies and capabilities for growth and

Explain leadership strategies of an effective entrepreneurial leader in the organization;

Understand the importance of communication process in the achievement of

Develop an understanding on the key aspects of an effective succession planning

The today‘s entrepreneurial leaders are individuals who, through an understanding of

Entrepreneurial leadership is not synonymous with entrepreneurship. It is a new model of

1. Understand the concept of entrepreneurship, leadership and organization;

3. Appreciate leadership in the context of entrepreneurship; and

4. Develop an understanding on the difference between leadership and entrepreneurial

Topic 1: THE CONCEPT OF ENTREPRNEURSHIP

 An entrepreneur is an individual who takes initiative to bundle resources in innovative ways

 Involves rewards of being an entrepreneur. Requires assumption of necessary

 An entrepreneur’s actions are the behavior in response to a judgmental decision under

Topic 2: LEADERHIP IN ORGANIZATION

 A leader cannot lead without an organization because organizations composed of individuals

What Makes a Leader Effective?

 Intellectual Drive and Knowledge. A leader has to be a student. In general it is hard

 Communicator. A leader must have good communication skills to be able to speak or

 Interpersonal Skills. Leaders must have the ability to act in an interpersonally

Topic 3: ENTREPRENURIAL LEADERSHIP

 Roebuck (2004) defines Entrepreneurial leadership as "organizing a group of people to

The Difference between Leadership and Entrepreneurship Leadership

organization. A leader has to be entrepreneurial as well. It has been written that

 Decision-making. Managers are more likely to seek assistance from subordinates in

Qualities of an Entrepreneurial Leader

 Self-belief - should believe and have confidence in themselves from years of

 Honest- an entrepreneurial leader can be seen as trustworthy by their employees.

WHY ACTIVE LISTENING IS A CRITICAL SKILL FOR FOUNDERS AND

Despite what you might have heard inDSSSSAAA

What is Active Listening?

Why is active listening so important for leaders?

Genuine interest makes active listening easy

1. Name at least 5 entrepreneurial leaders in our country. Describe their entrepreneurial

1. Recognize the importance of leadership in organization and identify its types;

Topic 1: LEADERSHIP AND ITS TYPES

 Leadership is a “particular type of power relationship characterized by a group member’s

 Leadership is “interpersonal influence, exercised in a situation, and directed, through the

 Leadership is “the initiation and maintenance of structure in expectation and interaction”

 Leadership is an interaction between members of a group. Leaders are agents of change,

 “… interpersonal influence exercised in a situation and directed, through the communication

 Several researches made on leadership, identified some characteristics essential in