UNIVERSITY OF CENTRAL PUNJAB

FALL-2023

Course Title: Leadership & Professional

Development
Course Code: BAMG7803

Assignment No. 4
Course Instructor: Dr. Muhammad Shahid Mehmood

Section: B2 Program: MBA Date: 08/ 01/2024

Submission Date: 15/01/2024 Maximum Marks: 10

Program Objective: 3, 4 Course Objective: 5 Course Learning Objective: 3, 4

TO BE FILLED IN BY THE STUDENT

Student Name: Registration No: Sr. No:

KHIZRA AMIR L1F23MBAM0027

QIRRAT AFGHAN L1F23MBAM0020

Assignment Topic & Details:

Read the case study (Tesla’s Unique Leader -Is It Time to Change) carefully and answer the
following questions.

Questions:
Q1. How do personality traits factor into predicting the success of a leader, based on the
examples provided in trait theory leadership?
Q2. In December 2022, should Tesla’s board have decided how and when to intervene Musk’s
leadership? What if the CEO did not adopt those interventions? What were the boundaries a
board or individual director might have considered?

Q3. Should institutional investors also take into account the psychological behavior of
charismatic managers or leaders such as Musk, who approach them for large loans or equity
placements?

Q4. Can Musk’s struggles with Twitter be seen as a reflection of his social deficit traits and lack
of diplomatic skills in dealing with multiple stakeholders? What do you think should happen with
Twitter?
QUESSTION 1
How do personality traits factor into predicting the success of a leader, based on the
examples provided in trait theory leadership?

In a case study focusing on Tesla's unique leader, it's essential to analyze how personality traits
factor into predicting the success of a leader, especially through the lens of trait theory leadership.
Trait theory suggests that certain inherent qualities or characteristics, often referred to as traits,
contribute to effective leadership. Here are some key personality traits and their relevance to
predicting the success of a leader, drawing from examples provided in trait theory:

1. *Visionary and Innovative Thinking:

- Trait: Openness to Experience
- Explanation: Successful leaders often possess a high degree of openness to new ideas and
experiences. In Tesla's case, a leader who is visionary and innovative, willing to explore
unconventional ideas and technologies, can drive the company's success.

2. Confidence and Assertiveness:

- Trait: Confidence
- Explanation: Confidence is a crucial trait for a leader. In Tesla's context, a leader who can
confidently make bold decisions and stand by them can guide the company through challenges
and uncertainties.

3. Risk-Taking Propensity:
- Trait: Risk-Taking
- Explanation: The ability to take calculated risks is vital for success, especially in industries
characterized by rapid technological advancements. A leader willing to take risks, as exemplified
by Tesla's ventures into electric vehicles and renewable energy, can drive innovation and
competitive advantage.

4. Adaptability and Flexibility:

- Trait: Flexibility
- Explanation: The business environment is dynamic, and successful leaders need to adapt to
changes. Traits such as flexibility and adaptability are essential for navigating uncertainties,
evolving markets, and unforeseen challenges.
5. Resilience:
- Trait: Emotional Stability
- Explanation: Leadership often involves facing adversity and criticism. A leader with
emotional stability and resilience can weather storms, learn from failures, and lead the
organization through challenging times.

6. Charisma and Influence:

- Trait: Charisma
- Explanation: Charismatic leaders can inspire and influence their teams, fostering a positive
and motivated work environment. This trait is particularly relevant in industries like electric
vehicles, where creating excitement and belief in a sustainable future is crucial.

7. Integrity and Ethics:

- Trait: Conscientiousness
- Explanation: Leaders with a strong sense of conscientiousness, including integrity and ethical
conduct, build trust among stakeholders. This trust is crucial for sustaining long-term success and
maintaining a positive brand image.

8. Interpersonal Skills:
- Trait: Agreeableness
- Explanation: Building and maintaining positive relationships with employees, customers, and
partners requires leaders to have good interpersonal skills. A leader who can effectively
communicate, collaborate, and inspire teamwork can contribute to organizational success.

Assessing Tesla's unique leader through the lens of these traits can provide insights into their
leadership style and effectiveness. However, it's important to note that leadership success is
influenced by various factors, and a combination of traits may contribute to effective leadership
in different contexts.
QUESTION 2
In December 2022, should Tesla’s board have decided how and when to intervene Musk’s
leadership? What if the CEO did not adopt those interventions? What were the boundaries
a board or individual director might have considered?

As of my last knowledge update in January 2022, I don't have specific information on events or
decisions made by Tesla's board in December 2022. Therefore, any information provided here is
based on general principles and practices as of that time, and you may want to verify if there have
been any developments since then.

Deciding when and how to intervene in a CEO's leadership is a delicate matter that involves
careful consideration of various factors. Here are some general considerations and boundaries
that a board or individual director might have taken into account:

1. Performance and Vision:

- Consideration: Assess the CEO's performance against established metrics and goals. Evaluate
the alignment of the CEO's vision with the company's strategic objectives.
- Boundary: If the CEO's performance significantly deviates from expectations and if there is a
misalignment with the company's vision, it may trigger intervention discussions.

2. Ethical Concerns:
- Consideration: Evaluate the CEO's behavior and decisions for ethical considerations. Any
breach of ethical standards or legal obligations may warrant intervention.
- Boundary: Serious ethical violations that can harm the company's reputation or legal standing
may necessitate immediate intervention.

3. Shareholder Value:
- Consideration: Monitor the impact of the CEO's decisions on shareholder value. Consider
whether the CEO's actions are positively or negatively affecting the company's financial
performance.
- Boundary: If there is a consistent decline in shareholder value or a failure to meet financial
expectations, the board may need to intervene to protect the interests of shareholders.

4. Communication and Transparency:

- Consideration Assess the CEO's communication style and transparency. Open and effective
communication is crucial for maintaining trust among stakeholders.
 - Boundary: If there are issues related to poor communication, lack of transparency, or
misleading information, the board may need to address these concerns.

5. Board Oversight and Governance:

- Consideration: Review the effectiveness of the board's oversight and governance. Ensure that
there are mechanisms in place for checks and balances.
- Boundary: If the CEO is resistant to proper oversight, or if governance mechanisms are
inadequate, the board may need to intervene to strengthen governance practices.

6. Succession Planning:
- Consideration: Evaluate the existence and effectiveness of a succession plan. A clear plan for
leadership transition is essential for continuity.
- Boundary: If the CEO is not willing to engage in succession planning or if there are concerns
about a lack of preparedness for leadership transition, the board may need to address these issues.

If the CEO does not adopt the interventions proposed by the board, the board may need to
explore various options, including further discussions, providing additional guidance, or, in
extreme cases, considering leadership changes.

It's crucial for a board to operate within the boundaries of its fiduciary duties, legal obligations,
and ethical standards. Transparency and open communication between the board and the CEO are
essential to navigate these challenges effectively. The specific circumstances and details would
influence the appropriate course of action in any given situation.
QUESTION 3

Should institutional investors also take into account the psychological behavior of
charismatic managers or leaders such as Musk, who approach them for large loans or
equity
placements?

Yes, institutional investors should consider the psychological behavior of charismatic managers
like Musk. Assessing leadership traits is crucial as it can impact the management style, decision-
making, and overall stability of the investment.

QUESTION 4

Can Musk’s struggles with Twitter be seen as a reflection of his social deficit traits and lack
of diplomatic skills in dealing with multiple stakeholders? What do you think should
happen
with Twitter?

Musk's struggles with Twitter could be viewed as reflective of potential challenges in social and
diplomatic skills. For Twitter's future, balancing free expression and responsible content
moderation will be key, with ongoing efforts to address concerns about misinformation and user
safety.