Andrew J. DuBrin Leadership Research Findings Practice and Skills Cengage Learning 2022

Tenth Edition
Leadership
Research Findings, Practice, and Skills
Andrew J. DuBrin
Rochester Institute of Technology
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Printed in the United States of America

Print Number: 01 Print Year: 2022
To Rosie, Clare, Camila, Sofia, Eliana, Julian, Carson, Owen, and Sofie
Brief Contents
Chapter 1 The Nature and Importance of Leadership 1
Chapter 2 Traits, Motives, and Characteristics of Leaders 25
Chapter 3 Charismatic and Transformational Leadership 56
Chapter 4 Leadership Behaviors, Attitudes, and Styles 85
Chapter 5 Contingency and Situational Leadership 116
Chapter 6 Leadership Ethics and Social Responsibility 141
Chapter 7 Power, Politics, and Leadership 169
Chapter 8 Influence Tactics of Leaders 201
Chapter 9 Developing Teamwork 225
Chapter 10 Motivation and Coaching Skills 249
Chapter 11 Creativity, Innovation, and Leadership 278
Chapter 12 Communication and Conflict Resolution Skills 307
Chapter 13 Strategic Leadership and Knowledge Management 339
Chapter 14 International and Culturally Diverse Aspects of Leadership 364
Chapter 15 Leadership Development and Succession 393
Glossary 420
Indexes 425
iv
Contents
Preface xiii Collaboration Between Leaders and Followers 18
Summary ∙ Key Terms ∙ Guidelines for Action

and Skill Development 19-20
Chapter 1 The Nature and Importance Leadership Case Problem A: Hailey Wants to Make a
of Leadership 1 Difference 20
Leadership Case Problem B: Business Owner Carlos
The Meaning of Leadership 2
Attempts to Deal with Uncertainty 22
Leadership as Shared Responsibility and
Collaboration 3 Notes 23
Leadership as a Relationship 4
Leadership Versus Management 4
The Impact of Leadership on Organizational Chapter 2 Traits, Motives, and Characteristics

Performance 4 of Leaders 25
Research and Opinion: Leadership Does Make a
Difference 5 Personality Traits of Effective Leaders 27
Research and Opinion: Formal Leadership Does Not General Personality Traits 27
Make a Difference 5 Leadership Self-Assessment Quiz 2-1: Self-Evaluation of
My Humility 29
Leadership Roles 6
Leadership Self-Assessment Quiz 2-2: Behaviors and
Leadership Self-Assessment Quiz 1-1: Readiness for the Attitudes of a Trustworthy Leader 32
Leadership Role 7 Task-Related Personality Traits 34
Tolerance for Ambiguity 9 Leadership Self-Assessment Quiz 2-3: My Tendencies
Leadership Skill-Building Exercise 1-1: My Leadership Toward Being a Proactive Personality 35
Role Analysis 10 Leadership Skill-Building Exercise 2-1: The Proactive New
Leader in Action: CEO John Hayes of Container Maker Ball Leader 36
Corporation Makes a Major Change 11
Leadership Motives 39
The Satisfactions and Frustrations of Being The Motivation to Lead 39
a Leader 11 The Power Motive 40
Satisfactions of Leaders 12
The Drive and Achievement Motive 40
Leadership Skill-Building Exercise 1-2: Appreciating the
Tenacity and Resilience 41
Satisfactions of Being a Leader 12
Dissatisfactions and Frustrations of Leaders 13 Cognitive Factors and Leadership 41
Cognitive (or Analytical) Intelligence 41
A Framework for Understanding Leadership 14
Knowledge of the Business or Group Task 42
Skill Development in Leadership 15 Creativity 42
Leadership Skill-Building Exercise 1-3: My Leadership Insight into People and Situations 43
Portfolio 16 Farsightedness and Conceptual Thinking 43
Leadership Self-Assessment Quiz 1-2: The Leadership
The Influence of Heredity and Environment on
Experience Audit 16
Leadership 43
Followership: Being an Effective Group Member 17 Leadership Self-Assessment Quiz 2-4: How Big Is My
Types of Followers 17 Thinking? 44
Essential Qualities of Effective Followers 18
vi Contents
Leader in Action: Beth Galetti, Senior Vice President of Transformational Leadership 69

People Experience and Technology at Amazon 45
How Transformations Take Place 70
Leadership Skill-Building Exercise 2-2: My Best
Attributes of Transformational Leaders 71
Leadership Attribute 46
The Impact of Transformational and Charismatic
The Strengths and Limitations of the Trait
Leadership on Performance and Behavior 72
Approach 46
Leader in Action: Mary Barra, CEO of GM 73
and Skill Development 47-48 Concerns About Charismatic and Transformational
Leadership 75
Leadership Case Problem A: Suzanne Expects Results 49
Challenges to the Validity of Charismatic
Leadership Case Problem B: A True Warrior Jumps into Leadership 75
the Electric Car Race and Then Story Telling 50
The Dark Side of Charismatic Leadership 75
Leadership Skill-Building Exercise 2-3: My Leadership
Portfolio 52 Summary ∙ Key Terms ∙ Guidelines for Action
Leadership Skill-Building Exercise 2-4: Analyzing the Traits,
Motives, and Characteristics of a Well-Known Leader 52 Leadership Case Problem A: Baxter, the Self-Adoring
Charismatic 79
Notes 52
Leadership Case Problem B: Athletic Club Director Derek
Tries a Turnaround 80
Chapter 3 Charismatic and Transformational Portfolio 81
Leadership 56 Leadership Skill-Building Exercise 3-5: Developing an

Inspirational Message 82
The Meanings of Charisma 57
Notes 82
Charisma: A Relationship Between the Leader,
Group Members, and Other Stakeholders 58
The Effects of Charisma 58
Three Types of Charismatic Leaders 59 Chapter 4 Leadership Behaviors, Attitudes,
Characteristics of Charismatic Leaders 60 and Styles 85
Leadership Self-Assessment Quiz 3-1: A Checklist of The Classic Dimensions of Consideration and
Behaviors and Attitudes Reflecting Charisma 61 Initiating Structure 86
The Narcissism Component of Charismatic
Leadership 61 Task-Related Attitudes and Behaviors 88
The Vision Component of Charismatic Leadership 62 Leadership Skill–Building Exercise 4-1: Feedback Skills 90
Leadership Self-Assessment Quiz 3-2: The Narcissism Leadership Self-Assessment Quiz 4-1: Task-Oriented
Attitudes and Behavior Checklist 63 Attitudes and Behaviors 91
Leadership Skill-Building Exercise 3-1: Formulating a Relationship-Oriented Attitudes and Behaviors 91
Vision 64
Leadership Skill-Building Exercise 4-2: Clarifying Your
The Communication Style of Charismatic Interpersonal Work Values 94
Leaders 65 Leadership Skill-Building Exercise 4-3: Applying
Leadership by Inspiration 65 Relationship-Oriented and Task-Oriented Attitudes and
Eye-Directed Gazing 65 Behaviors 94
Leadership by Storytelling 65 Leadership Styles 95
Extensive Use of Social Networking 66
Participative Leadership 95
Leadership Skill-Building Exercise 3-2: Charismatic
Autocratic Leadership 96
Leadership by Storytelling 66
The Servant Leadership Style 96
Leadership Skill-Building Exercise 3-3: Identifying the
Characteristics of a Charismatic Leader on YouTube 67 Leadership Self-Assessment Quiz 4-2: The Servant
Leadership Quiz 97
The Development of Charisma 67 Entrepreneurial Leadership 99
Techniques for Developing Charisma 67 Leadership Skill-Building Exercise 4-4: The Servant
Leader 99
Contents vii
Leader in Action: A Legendary Servant Leader: Ken Leadership Skill-Building Exercise 5-2: Leader–Member
Melrose, the Late CEO of Toro 100 Exchange with In-Group Member and Out-Group
Leadership Self-Assessment Quiz 4-3: Entrepreneurial Member 126
Thinking and Behavior 102 Leadership During a Crisis 126
Gender Differences in Leadership Style 104 Crisis Leadership Attributes and Behaviors with a
Leadership Skill-Building Exercise 4-5: Entrepreneurial Relationship Emphasis 126
Leadership 104 Leadership Self-Assesment Quiz 5-3: Checklist for Crisis
360-Degree Feedback for Fine-Tuning a Leadership 127
Leadership Approach 105 Crisis Leadership Attributes and Behaviors with a
Task Emphasis 129
Selecting the Best Leadership Style 107 Leader in Action: Michelle Gass, the Kohl’s CEO, Faced
Leadership Skill-Building Exercise 4-6: Contrasting Pandemic Business Crisis Head On 132
Leadership Styles 107 Leadership Skill-Building Exercise 5-3: Crisis
Leadership 133
and Skill Development 108-109 Evidence-Based Leadership for the Contingency
and Situational Approach 133
Leadership Case Problem A: Lola Asks Tough Questions 110
Leadership Case Problem B: The Worrisome 360-Degree Summary ∙ Key Terms ∙ Guidelines for Action
Survey 111 and Skill Development 134-136
Leadership Case Problem A: Financial Services Manager
Portfolio 112
Kevin Faces a Dilemma 136
Notes 113 Leadership Case Problem B: Emma Varies the Quality of
Her Relationships 137
Portfolio 138
Chapter 5 Contingency and Situational
Notes 139
Leadership 116
Situational Influences on Effective Leadership
Behavior 117
Chapter 6 Leadership Ethics and Social
Fiedler’s Contingency Theory of Leadership Responsibility 141
Effectiveness 118
Principles and Practices of Ethical and Moral
Leadership Self-Assessment Quiz 5-1: Measuring Your
Leadership 142
Situational Perspective 119
Five Ethical Leadership Behaviors 143
Measuring Leadership Style: The Least Preferred
Coworker (LPC) Scale 120 Leadership Self-Assessment Quiz 6-1: The Leadership
Ethics Quiz 144
Measuring the Leadership Situation 120
Factors Contributing to Ethical Differences 145
Overall Findings 120
The Ethical Mind for Leaders 147
Making the Situation More Favorable for the
Leader 121 Guidelines for Evaluating the Ethics of a Decision 148
Evaluation of Fiedler’s Contingency Theory 121 Leadership Skill-Building Exercise 6-1: Should “Dinosaur
The Path-Goal Theory of Leadership Power” Be Placed on the Market? 148
Effectiveness 121 A Sampling of Unethical Leadership Behaviors 149
Matching the Leadership Style to the Situation 122 Leadership, Social Responsibility, and Creating an
Leadership Skill-Building Exercise 5-1: Applying
Ethical Organizational Culture 149
Supportive Leadership 123 Providing Strategic Leadership of Ethics and
Steps Leaders Can Take to Influence Performance Social Responsibility 150
and Satisfaction 123 Recognizing the Triple Bottom Line of Profit, People,
Leader–Member Exchange and Contingency and Planet 151
Theory 124 Creating a Pleasant Workplace 151
Leadership Self-Assessment Quiz 6-2: The Social
Leadership Self-Assesment Quiz 5-2: Quality of Leader–
Responsibility Initiative Checklist 152
Member Relations 124
viii Contents
Helping Build a Sustainable Environment 153 Tactics for Becoming an Empowering Leader 175
Engaging in Social Entrepreneurship 154 The Nature of Empowerment 175
Leadership Skill-Building Exercise 6-2: Conducting an Empowering Practices 176
Environmental Audit 155 Leadership Self-Assessment Quiz 7-1: Empowering
Engaging in Philanthropy 155 Attitudes and Beliefs 177
Working with Suppliers to Improve Working
Effective Delegation and Empowerment 179
Conditions 155
Leader in Action: Amazon Leadership Invests in Affordable Leadership Skill-Building Exercise 7-1: Conducting an
Housing 156 Empowerment Session 180
Establishing Written Codes of Ethical Conduct 157 Factors That Contribute to Organizational
Developing Formal Mechanisms for Dealing with Politics 180
Ethical Problems 157 Pyramid-Shaped Organization Structure 180
Accepting Whistleblowers 157 Subjective Standards of Performance 181
Providing Training in Ethics and Social Environmental Uncertainty and Turbulence 181
Responsibility 158
Emotional Insecurity 181
Minimizing Abusive Supervision Throughout the
Machiavellian Tendencies 181
Organization 158
Encouraging Admiration from Subordinates 181
Leadership Skill-Building Exercise 6-3: Collecting
Examples of Socially Responsible Behavior 158 Political Tactics and Strategies 181
Taking a Stand on Social Issues 159 Ethical Political Tactics and Strategies 182
Ethical and Socially Responsible Behavior and Leadership Self-Assessment Quiz 7-2: The Positive
Organizational Politics Questionnaire 182
Organizational Performance 159
Leadership Skill-Building Exercise 7-2: Paying Back
Summary ∙ Key Terms ∙ Guidelines for Action Favors from Network Members 184
and Skill Development 160-161 Leadership Skill-Building Exercise 7-3: Asking Advice
Role Play 187
Leadership Case Problem A: Salary Advance United
Ponders Its Future 162 Leadership Self-Assessment Quiz 7-3: The Blunder
Quiz 189
Leadership Case Problem B: Nehemiah Manufacturing
Screens Workers with a Criminal Past to Offer Them a Unethical Political Tactics and Strategies 190
Second Chance 163 Leadership Skill-Building Exercise 7-4: Identifying the
Leadership Skill-Building Exercise 6-4: Company Stand Most Annoying Political Behavior Tactics 191
on Social Issues 165
Exercising Control over Dysfunctional Politics 192
Portfolio 165 Leadership Skill-Building Exercise 7-5: Controlling a Too
Eager Direct Report 192
Notes 165
Leadership Case Problem A: The Lands’ End Fashionista
Chapter 7 Power, Politics, and Leadership 169 Fades from Glory 194
Sources and Types of Power 170 Leadership Case Problem B: Team Leader Tanya Wants to
Be Truthful 196
Position Power 171
Personal Power 171
Portfolio 197
Power Stemming from Ownership 172
Power Stemming from Dependencies 172
Notes 198
Power Derived from Capitalizing on Opportunity 172
Power Stemming from Managing Critical
Problems 173 Chapter 8 Influence Tactics of Leaders 201
Power Stemming from Being Close to Power 173
A Model of Power and Influence 203
Power and Self-Serving Behavior 173
Leader in Action: Carol Tomé, UPS CEO and Former Home Leadership Self-Assessment Quiz 8-1: Survey of Influence
Depot CFO 173 Tactics 204
Contents ix
Description and Explanation of Influence Tactics 205 Leadership Skill-Building Exercise 9-3: The Good
Samaritans 239
Essentially Ethical and Honest Tactics 205
Leadership Skill-Building Exercise 8-1: Making an
Evaluation of Offsite Training for Team Development 239
Inspirational Appeal 208 The Leader-Member Exchange Model and
Essentially Neutral Influence Tactics 210 Teamwork 240
Leadership Self-Assessment Quiz 8-2: The Leader Different Quality Relationships 240
Ingratiating Checklist 211 First Impressions 241
Essentially Dishonest and Unethical Tactics 212
Leadership Skill-Building Exercise 8-2: Influence Tactics 213
Leadership Skill-Building Exercise 8-3: Identifying
Influence Tactics 214 Leadership Case Problem A: Jade Wants to Build an
Effective Virtual Team 243
Leadership Influence for Organizational Change 214 Leadership Case Problem B: Should We Dump the Open-
Leader in Action: Emmanuel Roman, CEO of Bond Giant Plan Office? 245
PIMCO, Attempts to Change Its Culture 215 Leadership Skill-Building Exercise 9-4: My Leadership
Portfolio 246
Sequencing of Influence Tactics 217
Leadership Skill-Building Exercise 9-5: The Trust Fall 246
Implicit Leadership Theories and Leadership Notes 246
Influence 217
Leadership Skill-Building Exercise 8-4: Applying Influence
Tactics 217
Chapter 10 Motivation and Coaching Skills 249
and Skill Development 219-220 Leadership and Employee Engagement 250
The Impact of Worker Engagement on Productivity 251
Leadership Case Problem A: General Manager Troy Wants
Leadership Self-Assesment Quiz 10-1: My Work
to Inspire 220
Engagement Tendencies 251
Leadership Case Problem B: Katerina Demands Results 222
Meaningful Work for Employee Engagement 252
Leadership Skill-Building Exercise 10-1: Collecting Live
Portfolio 223
Data on Worker Engagement 252
Notes 223 Relationship with the Leader and Employee
Engagement 253
Leadership Self-Assesment Quiz 10-2: How Meaningful Is
My Work? 253
Chapter 9 Developing Teamwork 225
Expectancy Theory and Motivational Skills 254
The Leader’s Role in the Team-Based Basic Components of Expectancy Theory 255
Organization 226
Leadership Skills and Behaviors Associated with
Leader Actions That Foster Teamwork 227 Expectancy Theory 256
Actions Leaders Can Take Using Their Own Goal Theory 257
Resources 228 Basic Findings of Goal Theory 257
Leadership Skill-Building Exercise 9-1: Shelters for the The Importance of How Goals Are Attained and
Homeless 230 Other Concerns 258
Leadership Self-Assesment Quiz 9-1: Team Player Leadership Skill-Building Exercise 10-2: The Application
Attitudes 231 of Goal Theory 259
Actions Generally Requiring Organization Structure
or Policy 234 Using Recognition and Pride to Motivate Others 259
Leader in Action: Tricia Griffith, CEO of Progressive, Appealing to the Recognition Need of Others 260
Emphasizes Building Teamwork 237 Leadership Self-Assesment Quiz 10-3: How Much Do I
Crave Recognition? 260
Offsite Training and Team Development 237
Recognizing Group Members by Thanking Them and
Features of Outdoor and Offsite Training Expressing Gratitude 261
Programs 238
Leadership Skill-Building Exercise 10-3: Recognition for
Leadership Skill-Building Exercise 9-2: The Team Leader Outstanding Performance 262
Candidates 238
Appealing to Pride 262
x Contents
Coaching as an Approach to Motivation 262 Overcoming the Self-Perception That You Are Not
Creative 288
Key Characteristics of Coaching 263 Practicing Creativity-Enhancing Activities 289
Coaching Skills and Techniques 263 Staying Alert to Opportunities 289
Leader in Action: Texas Pride Disposal CEO Pumps up Maintaining an Enthusiastic Attitude, Including
Workers through Recognition and Pride 264 Being Happy 289
Leadership Self-Assesment Quiz 10-4: Characteristics of Leadership Skill-Building Exercise 11-2: Choosing a
an Effective Coach 267 Compelling Domain Name 290
Leadership Skill-Building Exercise 9-4: Coaching for Maintaining and Using a Systematic Place for
Improved Performance 268 Recording Your Ideas 290
Executive Coaching and Leadership Getting Advice from Someone Outside Your Field 290
Effectiveness 268 Playing the Roles of Explorer, Artist, Judge, and
Specific Forms of Assistance Provided by Executive Lawyer 291
Coaches 268 Engaging in Appropriate Physical Exercise 291
Contributions of and Concerns About Executive Soliciting Feedback on Your Performance 291
Coaching 269
Establishing a Climate and Culture for Creative
Summary ∙ Key Terms ∙ Guidelines for Action Thinking 292
Leadership Diagnostic Activity 11-1: Assessing the
Leadership Case Problem A: Firing Up the Commercial Climate for Creativity and Innovation 292
Uniform Team 272
Fostering a Culture of Originality 293
Leadership Case Problem B: Guiding Britany to Find Her
Purpose 273 Leadership Practices for Enhancing Creativity and
Innovation 293
Portfolio 275 Methods of Managing Creative Workers 295
Notes 275 Leadership Practices Focused Specifically on
Enhancing Innovation 296
Leader in Action: Bridget van Kralingen, Senior Vice
President of IBM Global Markets, Spearheads Innovation 297
Chapter 11 Creativity, Innovation,
and Leadership 278 and Skill Development 299-300
Steps in the Creative Process 279 Leadership Case Problem A: The T-Shirt Production
Innovators 300
Characteristics of Creative Leaders 281
Leadership Case Problem B: The Distressing Empty
Knowledge 281
Storefronts 302
Cognitive Abilities 281
Leadership Self-Assessment Quiz 11-1: The Creative Portfolio 303
Personality Test 282
Leadership Skill-Building Exercise 11-4: The Multimedia
Personality 283 Presentation 304
Leadership Self-Assessment Quiz 11-2: The Intuitive
Problem-Solving Style Quiz 284
Notes 304
Passion for the Task and the Experience of Flow 285
Overcoming Traditional Thinking as a Creativity

Strategy 285
Chapter 12 Communication and
Conflict Resolution Skills 307
Organizational Methods to Enhance Creativity and
Communication Networks for Leaders 308
Innovation 286
Systematically Collecting Fresh Ideas 286 Leadership Self-Assessment Quiz 12-1: A Self-Portrait of
My Communication Effectiveness 309
Brainstorming 287
Face-to-Face Communication Networks 310
The Morality of Enhancing Creativity 287
Social Media Networks 310
Leadership Skill-Building Exercise 11-1: Two
Brainstorming Scenarios 288 Leader in Action: Lockheed Martin Executive Chairman
Marillyn Hewson Emphasizes Communication as a
Self-Help Techniques to Enhance Creative Problem
Leader 311
Solving 288
Contents xi
Group Messaging Apps as Leadership The Development of Business Strategy 341

Communication Network 312 The Importance of Strategic Thinking 341
Inspirational and Powerful Communication 312 Leadership Self-Assessment Quiz 13-1: Are You a
Strategic Thinker? 342
Speaking and Writing 312
Maintaining a Human and Emotional Aspect 343
Basic Principles of Persuasion 316
Gathering Multiple Inputs to Formulate Strategy 343
Nonverbal Communication Including
The Contribution of Artificial Intelligence (AI) to
Videoconferencing and Telepresence 317
Business Strategy 344
Leadership Skill-Building Exercise 12-1: Feedback on
Leadership Effectiveness and Strategy
Verbal and Nonverbal Behavior 319
Implementation 344
Listening as a Leadership Skill 319
Leadership Skill-Building Exercise 13-1: Mapping Out a
Show Respect 319 Future for an Organization 345
Avoiding Selective Listening to Problems 320 Conducting a SWOT Analysis 346
Making the Rounds 320
Leadership Skill-Building Exercise 13-2: Conducting a
Overcoming Cross-Cultural Communication SWOT Analysis 347
Barriers 320 A Sampling of Business Strategies Formulated by
Leadership Skill-Building Exercise 12-2: Leadership Leaders 347
Listening 320 Leader in Action: Elon Musk Has a Business Strategy for
Leadership Self-Assessment Quiz 12-2: Cross-Cultural SpaceX 350
Skills and Attitudes 321 Leadership Skill-Building Exercise 13-3: The Business
The Leader’s Role in Resolving Conflict and Strategies of a Favorite Company 351
Negotiating 323 Knowledge Management and the Learning
Conflict Management Styles 323 Organization 351
Leadership Self-Assessment Quiz 12-3: My Conflict Knowledge Sharing 351
Resolution Style 324 Knowledge Management 351
Resolving Conflict Between Two Group Members 325 Leadership Self-Assessment Quiz 13-2: My Attitudes
Leadership Self-Assessment Quiz 12-4: My Tendencies Toward Sharing Knowledge 352
Toward Conflict Proneness 326 Servant Leadership and the Creation of
Negotiating and Bargaining 327 Knowledge 353
Leadership Skill-Building Exercise 12-3: The Minimum The Learning Organization 353
Wage Negotiation 330 Leadership Skill-Building Exercise 13-4: The Knowledge-
Summary ∙ Key Terms ∙ Guidelines for Action Sharing Investigation Teams 354
and Skill Development 330-332 Summary ∙ Key Terms ∙ Guidelines for Action
Leadership Case Problem A: Dani the Front-Stabbing and Skill Development 356-357
CEO 333 Leadership Case Problem A: Vehicle Buddy Seeks Its
Leadership Case Problem B: Struggling for Conference Purpose 358
Room Space 334 Leadership Case Problem B: The Product Differentiation
Leadership Skill-Building Exercise 12-4: The Emotionally Strategy Team 359
Intelligent Negotiator 335 Leadership Skill-Building Exercise 13-5: My Leadership
Leadership Skill-Building Exercise 12-5: My Leadership Portfolio 361
Portfolio 335 Leadership Skill-Building Exercise 13-6: Developing a
Leadership Skill-Building Exercise 12-6: Evaluating the Business Strategy for a Small Appliance Repair Chain 361
Communication Skills of an Organizational Leader 336
Notes 361
Notes 336
Chapter 14 International and Culturally

Chapter 13 Strategic Leadership and Diverse Aspects of Leadership 364
Knowledge Management 339 The Advantages of Managing for Diversity 366
Organizational Agility, Business Strategy, and Leader in Action: Carnival Corporation Capitalizes on
Knowledge Management 340 Managers from Diverse Backgrounds to Reignite Growth 368
xii Contents
Leadership Skill-Building Exercise 14-1: Pinpointing a

Diversity Advantage 369 Chapter 15 Leadership Development
Cultural Factors Influencing Leadership Practice 370 and Succession 393
Leadership Self-Assessment Quiz 14-1: Charting Your Development Through Self-Awareness and
Cultural Value Profile 372 Self-Discipline 395
Leadership Development Through Self-Awareness 395
Cultural Sensitivity 373
Leadership Development Through Self-Discipline 396
Leadership Self-Assessment Quiz 14-2: My Appreciation
for Cultural Differences 375 Development Through Education, Experience, and
Leadership Skill-Building Exercise 14-2: Positive Cross-
Mentoring 396
Cultural Experiences in the Workplace 376 Education 396
The English-Only Policy and Cultural Sensitivity 376 Leadership Self-Assesment Quiz 15-1: My Self-Discipline
Tendencies 397
Global Leadership Skills 376
Leadership Self-Assesment Quiz 15-2: The Interpersonal
General Model of Global Leadership Skills 377 Skills Checklist 398
Success Factors in International Management Experience 400
Positions 377
Leader in Action: Broad Experience Helps Propel Ebony
Motivating and Inspiring Workers in Other Cultures 378 Beckwith into the C-Suite at Salesforce 402
Resolving Cross-Cultural Conflict 378 Mentoring 403
Understanding Which Leadership and Management
Practices Function Well in a Specific Culture 378
Leadership Development Programs 405
Leadership Skill-Building Exercise 14-3: Gaining Leadership Skill-Building Exercise 15-1: Finding a Mentor
International and Cross-Cultural Experience or Mentors for Leadership Development 405
Inexpensively 379 Types of Leadership Development Programs 406
Leadership Initiatives for Achieving Cultural Leadership Succession 408
Diversity, Equity, and Inclusion 379
How the Board Chooses a Successor 409
Hold Managers Accountable for Achieving
The Emotional Aspects of Leadership Succession 409
Diversity 379
Developing a Pool of Successors 410
Establish Minority Recruitment, Retention, and
Mentoring Programs 380 Promotion from Within 410
Conduct Diversity Training 381 Characteristics of an Effective Leadership
Development Program 410
Conduct Anti-Bias Training 381
Challenges of Being a New Leader 411
Leadership Skill-Building Exercise 14-4: The Diversity
Circle 381 Leadership Skill-Building Exercise 15-2: Building for the
Future 412
Conduct Cross-Cultural Training 382
Avoid Group Characteristics When Hiring for Summary ∙ Key Terms ∙ Guidelines for Action
Person–Organization Fit 382 and Skill Development 412-414
Attain Diversity Among Organizational Leaders 383 Leadership Case Problem A: Holly, the Potential Team
Emphasize Inclusive Language 383 Leader 415
Be Aware of Potential Diversity Danger Zones 384 Leadership Case Problem B: Ashok Eyes the Executive
Suite 416
Portfolio 417
Leadership Case Problem A: Cultural Sensitivity at Pacific Leadership Skill-Building Exercise 15-4: Analyzing a Local
Pods 387 Leader 417
Leadership Case Problem B: Unfiltered Expressions at
Anti-Bias Training 388 Notes 418
Portfolio 389 Glossary 420
Notes 390 Indexes 425
Preface
Welcome to the tenth edition of Leadership: Research in this text is not restricted to research studies and
Findings, Practice, and Skills. The new edition of this syntheses of research and theories. It also includes the
text is a thorough update of the ninth edition, which has opinions of practitioners, consultants, and authors who
been used widely in both graduate and undergraduate base their conclusions on observations rather than
courses in leadership. empirical research.
Many scholars and managers alike are convinced What the text is not also helps define its nature and
that effective leadership is required to meet most scope. This book does not attempt to duplicate the scope
organizational challenges. Today, organizations and purpose of a leadership handbook by integrating
recognize that leadership transcends senior executives. theory and research from several thousand studies. At
As a result, organizations require people with the other extreme, it is not an evangelical approach
appropriate leadership skills to inspire and influence to leadership espousing one leadership technique. I
others in small teams, task forces, and units at all have attempted to find a midpoint between a massive
organizational levels. synthesis of the literature and a trade book promoting
Without effective leadership at all levels in a current leadership fad. Leadership: Research Findings,
organizations, it is difficult to sustain profitability, Practice, and Skills, tenth edition, is designed to be a
productivity, and good customer service. In dozens mixture of scholarly integrity, examples of effective
of different ways, researchers and professors have leadership in action, and skill development.
demonstrated that leadership does make a difference. Leadership is not intended to duplicate or substitute
Many curricula in business schools and other fields, for an organizational behavior text. Because almost all
therefore, now emphasize the development of organizational behavior texts are survey texts, they will
leadership skills. With an increased interest in ethical mention many of the topics covered here. My approach,
and socially responsible behavior, more attention however, is to emphasize skill development and
than ever is being paid to the values and personal prescription rather than to duplicate basic descriptions
characteristics of leaders. Toward that end, this text of concepts and theories. I have tried to minimize
continues to emphasize the qualities of effective overlap by emphasizing the leadership aspects of any
leaders, including an entire chapter on leadership concept presented here that might also be found in an
ethics and social responsibilities. organizational behavior or management text. Often when
overlap of a topic exists, the presentation here focuses
more on skill development than on a review of theory
Purpose of the Text and research. For example, the section on motivation
emphasizes how to apply basic explanations of motivation
The purpose of this text is implied by its title— such as expectancy theory and worker engagement, but I
Leadership: Research Findings, Practice, and Skills, do not present an overview of motivation theories as is
tenth edition. It is designed for undergraduate and found in an organizational behavior text.
graduate courses in leadership that give attention One area of intentional overlap with organizational
to research findings about leadership, leadership behavior and management texts does exist: a review
practice, and skill development. The text best fits of most basic leadership theories. In such instances,
courses in leadership that emphasize application and however, I emphasize skill development and ideas for
skill building. Leadership is also designed to fit courses leadership practice stemming from these older theories.
in management development that emphasize the This edition, however, recognizes that it is time to omit
leadership aspect of management. several basic leadership theories that have not been
The student who masters this text will acquire an researched for decades, such as the Leadership Grid
overview of the voluminous leadership literature that and the Normative Decision Model.
is based both on research and experience. Information
xiii
xiv Preface
Features of the Book personal attributes associated with effective leaders,

a subject that has experienced renewed importance
To accomplish its purpose, this textbook incorporates in recent years. Charismatic and transformational
many features into each chapter in addition to leadership, an extension of understanding the personal
summarizing and synthesizing relevant information attributes of leadership, is the subject of Chapter 3.
about leadership: Chapter 4 surveys behaviors and practices associated
● Chapter Outlines giving the reader a quick with effective leadership in a variety of situations, and
overview of the topics covered describes leadership styles. Chapter 5 extends the study
of styles by describing the contingency and situational
● Learning Objectives to help focus the reader’s aspects of leadership with a strong emphasis on crisis
attention on major outcomes leadership. Chapter 6 focuses on leadership ethics and
● Boldfaced key terms listed at the end of the chapter social responsibility. Chapter 7 describes how leaders
and defined in a Glossary at the back of the use power and politics. Chapter 8 extends this topic by
textbook analyzing the tactics leaders use to influence people.
Chapter 9 describes how leaders foster teamwork and
● Real-life and hypothetical examples throughout empower team members.
the textbook The next five chapters deal with specific leadership
● Leader in Action inserts describing the leadership skills: motivating and coaching skills (Chapter 10),
practices, behaviors, and personal attributes of real- which constitute the basis of many leadership positions;
life leaders creativity and innovation (Chapter 11); communication
(including nonverbal, social media, and cross-cultural
● Leadership Self-Assessment Quizzes relating to communication) and conflict resolution skills (Chapter 12);
both skills and personal characteristics vision and strategy creation and knowledge management
● Leadership Skill-Building Exercises, including (Chapter 13); and effective leadership in international and
role plays, to emphasize the activities and skills of culturally diverse settings (Chapter 14).
effective leaders Chapter 15 concludes the book with an overview of
approaches to leadership development and learning. In
● End-of-chapter Summaries that integrate all key addition, there is a discussion of leadership succession
topics and concepts and the challenges facing a new leader.
● End-of-chapter Guidelines for Action and Skill
Development, giving additional suggestions for
improving leadership skill and practice Changes in the Tenth Edition
● Discussion Questions and Activities suited for The tenth edition of Leadership: Research Findings,
individual or group analysis Practice, and Skills is an update but not an overhaul of
the ninth edition. The structure and key subject areas of
● Two Leadership Case Problems per chapter,
the previous edition are retained. Some of the changes
which illustrate the major theme of the chapter and
in this edition reflect the recent leadership information
contain questions for individual or group analysis
I felt should be included in the new edition. To make
● Role plays accompanying all the case problems way for the new material, I have selectively pruned
to help reinforce the opportunity for learning older examples and research findings, and deleted
interpersonal skills within the case problems some concepts that seem to be only slight variations of
another concept in the text. I have also deleted some
● A Leadership Portfolio skill-building exercise in
of the research findings that basically duplicate other
each chapter that instructs the student to record
findings on the same topic. The following list highlights
progress in developing leadership skills and behaviors
the changes in the tenth edition, in addition to updating
research and opinion.
Framework of the Text

Changes Throughout the Text
The text is a blend of description, skill development,
insight development, and prescription. Chapter ● Eleven new chapter introductions plus updating of
1 describes the meaning, importance, and nature introductions in Chapters 6, 7, 12, and 15.
of leadership, including leadership roles and the
importance of followership. Chapter 2 identifies
● Thirteen Leader in Action boxes are new, plus
updates for Chapters 3 and 14.
Preface xv
● Fourteen new cases are new plus an update of the entrepreneurial CEO, and the entrepreneurial mindset.
case in Chapter 13. Two other new topics are how oxytocin contributes to
trusting behavior for leaders, and fresh research about
● New research findings presented in each chapter
gender differences in leadership. A self-assessment
● New examples throughout quiz is added about servant leadership, as well as an
exercise for applying task-oriented and relationship-
● A new Guidelines for Action and Skill Development
oriented behaviors.
for Chapter 4. The Guidelines in Chapters 2 and 14
Chapter 5 features a substantial expansion of
are supplemented with additional information
crisis leadership including dealing with the COVID-19
● Eleven new Skill-Building Exercises, plus two of pandemic. Two new tables are (a) Crisis Leadership
them with new components Attributes and Behaviors with a Relationship Emphasis,
and (b) Crisis Leadership Attributes and Behaviors
● Three new tables for Chapters 5 and 7
with a Task Emphasis. Information is presented about
● Four new Leadership Self-Assessment Quizzes the importance of providing psychological safety
during a crisis. The topic of psychological safety is also
woven into several other chapters in the book. We also
include an expansion of discussion on evidence-based
Content Changes Within Chapters leadership, and a new skill-building exercise about
applying supportive leadership.
Chapter 1 describes how small business owners set
Chapter 6 has many new topics including moral
leadership tone for their enterprises, and circumstances
leadership, providing leadership that promotes health,
that limit the impact of leaders on their organization’s
the link between character and virtue, bounded
performance. Presented also is the new leadership role
ethicality, and recognizing the triple bottom line of
of inclusion facilitator, and the importance of tolerating
profit, people, and planet. New also are environmental,
ambiguity for leaders. Chapter 2 provides more
social, and governance (ESG) criteria (a set of
information about humility as a key leadership trait,
standards investors use to evaluate investments),
including the importance of a growth mindset, and the
thinking strategically about environmental
reciprocal nature of the leader trusting group members.
sustainability, and the importance of leaders thinking
New information is also provided about the impact
critically about sustainability initiatives. We include a
of authentic leadership on a leader’s well-being, the
new section about the pros and cons of a CEO taking a
potential advantages of a leader being introverted, and
stand on social issues. Two other new features are the
the organizational impact of an optimistic leader. Other
Social Responsibility Initiative Checklist, and a skill-
new topics are the importance of the likeability factor
building exercise about taking a company stand on
for leaders, how emotional intelligence contributed
social issues.
to leadership effectiveness during the pandemic, the
Chapter 7 now includes the skill-building aspect
motivation to lead as an important leadership motive,
to delegation, how political correctness has become
and how leaders use artificial intelligence (AI). Also
almost a social movement, adapting to the boss’s
new are a self-quiz about leadership humility, and an
communication style, getting noticed by senior
exercise about proactive leadership.
leadership, and stealing credit for the ideas of others
Chapter 3 adds information about how charismatic
as a negative political tactic. Added also is a skill-
leaders elicit emotional reactions from group
building exercise about controlling a too-eager direct
members, and the potential disadvantage of hubris
report. Chapter 8 additions include new research about
for a charismatic leader. New research is provided
the effectiveness of leading by example, establishing
about how visibility can have a negative impact on
connections for exerting influence, giving useful
a narcissistic leader, as well as research about eye-
feedback for exerting influence, and possible pitfalls
directed gazing for charismatic leaders. New also is
of upward ingratiation. A new skill-building exercise is
how to project e-charisma, the importance of in-person
presented about making an inspirational appeal.
interactions for transformational leaders, and the
Chapter 9 new information includes expanded
potential downside of a narcissistic CEO. A new
coverage of virtual teams, Slack as a frequent
skill-building exercise is included for developing an
communication channel for teams, additional
inspirational message.
problems associated with open-office spaces, problems
Chapter 4 has additional information about the
of excessive collaboration in teams, and wilderness
importance of leadership adaptability. Also new
adventure expeditions as offsite training. A new skill-
is asking questions as a signal of trust by a leader,
building exercise is presented about a student group
patience as a relationship-oriented leadership behavior,
being good Samaritans.
and more information about servant leadership, the
xvi Preface
Chapter 10 new offerings include an expanded Instructor Resources

discussion of meaningful work, the importance
of using deadlines in goal setting, recognizing Additional instructor resources for this product are
group members by thanking them and expressing available online. Instructor assets include an Instructor’s
gratitude, and the importance of being very specific Manual, Educator’s Guide, PowerPoint® slides, and a test
about negative feedback. Additional new topics are bank powered by Cognero®. Sign up or sign in at www
research evidence about the effectiveness of executive .cengage.com to search for and access this product and
coaching, and providing recognition for outstanding its online resources.
performance.
Chapter 11 additions are the link between curiosity
and creativity, the relevance of the co-existence Acknowledgments
of intuition and data analytics, how constraints
contribute to creativity, and brainstorming remotely. Any project as complex as this one requires a team of
Also new are the topics of overcoming the self- dedicated and talented people to see that it achieves its
perception of not being creative, getting advice from goals. First, I thank the many effective leaders whom
someone outside your field to enhance creativity, the I have observed in action or read about for improving
use of cultural brokerage to enhance creativity in my understanding of leadership. Second, I thank
cross-cultural groups, and questioning traditional the following professors who offered suggestions for
beliefs or orthodoxies to enhance innovation. A improving this and previous editions:
new skill-building exercise is choosing a compelling Steve Barnett, Unitec New Zealand
domain name. Steven Barry, University of Colorado-Boulder
Chapter 12 new topics are group messaging apps as John Bigelow, Boise State University
a leadership communication network, the usefulness Meika Bowden McFarland, Albany Technical College
of moderate conflict, the conflict-prone personality, Bruce T. Caine, Vanderbilt University
the ethical aspects of negotiation, and the negotiation Felipe Chia, Harrisburg Area Community College
tactic of using facts more than threats. A self-quiz about Jeewon Cho, Montclair State University
Conna Condon, Upper Iowa University
tendencies toward conflict proneness is added, as well
Emily J. Creighton, University of New Hampshire
as a skill-building exercise about being an emotionally
Michael de Percy, University of Canberra
intelligent negotiator. Chapter 13 adds sections about Rawlin Fairbough, Sacred Heart University
organizational agility, business strategy, and knowledge Michael Fekula, The Citadel
management. Also new are how strategic thinking Janice Feldbauer, Austin Community College
heavily emphasizes long-term thinking, and the Justin Frimmer, Jacksonville University
contribution of artificial intelligence (AI) to business Barry Gold, Pace University
strategy. George B. Graen, University of Cincinnati
Chapter 14 now uses the framework of “diversity, Stephen G. Green, Purdue University
equity, and inclusion” to describe diversity efforts, Nathan Hanson, Palm Beach Atlantic University
and new evidence for the financial payoff from gender James R. Harris, North Carolina Agricultural and
Technical State University
diversity in company leadership. Also new is how
Paul Harris, Lee College
cultural diversity can make more effective use of
Nell Hartley, Robert Morris College
human capital, new data on working-hour differences Linda Hefferin, Elgin Community College
across the world, and resolving cross-cultural conflict. Winston Hill, California State University, Chico
Two other new topics are the leader emphasizing Katherine Hyatt, Reinhardt University
inclusive language, and the awareness of potential Avis L. Johnson, University of Akron
diversity danger zones. Marvin Karlins, University of South Florida
Chapter 15 new inclusions are the two types of self- Nelly Kazman, University of La Verne
awareness, the #MeToo movement and mentoring, David Lee, University of Dayton
and the application of neuroscience, or brain science, Alan Lockyer, Unitec New Zealand
to enhance effectiveness. Also new are evidence about Brian McNatt, University of Georgia
Ralph Mullin, Central Missouri State University
the effectiveness of executive coaching in comparison
Linda L. Neider, University of Miami
to other interventions for development, and being
Andreas Nilsson, Umeå School of Business, Sweden
able to deal with sensitive and delicate issues as a Rhonda S. Palladi, Georgia State University
new leader challenge. A table is added about the Jeff Perlot, Green River Community College
seven attitudes and beliefs of a person with a growth Joseph Petrick, Wright State University
mindset. Mark Phillips, University of Texas at San Antonio
Preface xvii
Judy Quinn, Kutztown University and Drake. Thank you also to another part of my family,
Diana Rajendran, Swinburne University of Stefanie and her daughter Sofie, for their contribution to
Technology at Lily dale my well-being.
Clint Relyea, Arkansas State University
Gary Renz, Webster University
A.J.D.
Howard F. Rudd, College of Charleston
Silvia Sala, University of Massachusetts at Lowell
Tom J. Sanders, University of Montevallo About the Author
Robert Scherer, Wright State University
Marianne Sebok, Community College of Andrew J. DuBrin is a professor of management
Southern Nevada emeritus in the Saunders College of Business at the
Charles Seifert, Siena College Rochester Institute of Technology, where he taught
Kimberley L. Simons, Madisonville Community courses and continues to conduct research in leadership,
College organizational behavior, and career management. He
Randall G. Sleeth, Virginia Commonwealth University also served as department chairman and team leader
Steven Tello, University of Massachusetts at Lowell
in previous years. He received his PhD in industrial
Ahmad Tootoonchi, Frostburg State University
David Van Fleet, Arizona State University West
psychology from Michigan State University.
John Warner, University of New Mexico DuBrin has business experience in human resource
Velvet Weems-Landingham, Kent State management and in consulting with organizations
University—Geauga and individuals. His specialties include leadership,
influence tactics, and career development. DuBrin
The editorial and production team at Cengage is an established author of both textbooks and
Learning also receives my gratitude. By name, they are trade books, and he has contributed to professional
Michael Worls, Product Manager; Sheila Moran, Project journals. He has written textbooks on organizational
Manager; and Diane Garrity, Intellectual Property behavior, management, human resource management,
Analyst. Neha Chawla and her team at MPS Limited also human relations, organizational politics, and edited
receive my gratitude for their contributions to this book. a handbook of crisis leadership. His trade books
Writing without loved ones would be a lonely task. My cover many topics, including charisma, the proactive
thanks, therefore, also go to my family members—Drew personality, coaching and mentoring, office politics,
and Heidi, Douglas and Gizella, Melanie and Justin, and self-discipline.
Rosie, Clare, Camila, Sofia, Eliana, Carson, Julian, Owen,
1
Patrick J. Endres/Corbis Documentary/Getty Images
Chapter
The Nature and

Importance of Leadership
Learning Objectives
After studying this chapter and doing the exercises, you 1.4 Identify the major satisfactions and frustrations
should be able to associated with the leadership role.
1.1 Explain the meaning of leadership, and how it differs from 1.5 Describe a framework for understanding leadership.
management. 1.6 Cite how leadership skills can be developed.
1.2 Characterize how leadership influences organizational 1.7 Pinpoint several traits, behaviors, and attitudes of a
performance. successful follower.
1.3 Pinpoint several important leadership roles.
Chapter Outline
The Meaning of Leadership A Framework for Understanding Leadership

Leadership as Shared Responsibility and Collaboration Skill Development in Leadership
Leadership as a Relationship Followership: Being an Effective Group Member
Leadership Versus Management Types of Followers
The Impact of Leadership on Organizational Performance Essential Qualities of Effective Followers
Research and Opinion: Leadership Does Make a Difference Collaboration Between Leaders and Followers
Research and Opinion: Formal Leadership Does Not Make a Summary
Difference Key Terms
Leadership Roles Guidelines for Action and skill Development
Tolerance for Ambiguity Leadership Case Problem A
The Satisfactions and Frustrations of Being a Leader Leadership Case Problem B
Satisfactions of Leaders Notes
Dissatisfactions and Frustrations of Leaders
E
arly in 2021, Walgreens Boots Alliance (WBA) appointed Club, and two decades at Kimberly Clark Corporation in a va-
Rosalind (Roz) Brewer as its chief executive officer (CEO), riety of professional and managerial positions. Brewer is also
making her the only Black woman at the time to lead a on the board of Amazon.com, Inc. While Brewer was CEO of
Fortune 500 company. Brewer held previous positions as the Sam’s Club, membership grew, and she oversaw the transition
chief operating office at Starbucks, chief executive of Sam’s to digital technology. At Starbucks, Brewer was the number two
2 Chapter 1 The Nature and Importance of Leadership
executive. She helped the company transition toward a focus analytical, and operational skills and has successfully managed
on to-go operations during the pandemic via a mobile-ordering a large and complex business.”
app. Brewer also contributed to the development of more diver- At Starbucks, Brewer was the group president and chief
sified leadership at the company. operating office, directing the company’s global marketing,
The Walgreens board cited Brewer’s “relentless focus on her technology, supply chain, product innovation, and store devel-
customer, talent development, and expertise in digital transforma- opment business functions. While at Starbucks, Brewer played
tion” in announcing her appointment. A major goal of Walgreens an active role in speaking to investors, its board, and retail
in 2021 was to become more of a healthcare company than a re- employees.
tailer with the sales of drugs and convenience items moving in- David Buritt, the CEO of U.S. Steel Corporation, told a
creasingly online. Brewer focuses much of her executive time on business reporter, “Roz has mastered the art of being a servant
driving WBA’s digital retail expansion. Brewer was hired primarily leader. She has humility, but at the same time she is in charge.
on the basis of her leadership skills and digital expertise, but at I’m a huge fan.” Throughout her career, Brewer has emphasized
the same time pressures from shareholders, lawmakers, banks, that diversity within an organization not only creates opportuni-
and other financial firms were pushing business corporations to ties for a wider part of the population but also enhances busi-
accelerate diversifying their executive ranks. ness results. She emphasizes that diverse and inclusive teams
Financial analysts noted that Brewer started at Walgreens make for a stronger business.
Boots Alliance (WBA) at an exciting and challenging time be- In 2018, Brewer gave an inspirational commencement ad-
cause the company was preparing to be a key player in the address at her alma mater, Spelman College, a historically Black
ministration of COVID-19 vaccines. The WBA’s highly efficient women’s liberal arts college in Atlanta. She emphasized how
launch of its vaccination program helped strengthen the posi- many Black Spelman graduates who preceded her had achieved
tive perception of the retailer, as well as developing an increased successful careers including becoming judges, surgeons, and
base of loyal customers. A key challenge for WBA is that retail business leaders. Brewer said that her generation might be
pharmacies have been consolidating, and Walgreens was losing called “Generation P,” with the P standing for perseverance.
some market share to CVS. Brewer is the youngest of five children born to parents
In 2012, Brewer was appointed the CEO of Sam’s Club, a who were production workers at General Motors in Detroit. As
major division of Walmart. She worked her way up to president Spelman College she received a B.S. degree in chemistry in
of the Walmart U.S. East business unit, leading a team responsi- 1984. She also attended the advanced management program at
ble for more than $100 billion in annual revenue. Former Walmart the Wharton School of the University of Pennsylvania. To facili-
president and CEO Mike Duke said of Brewer at the time, “She tate her learning as a leader and manager, Brewer received help
always lets her team do the talking, with the focus being on from mentors including Indra Nooyi, the CEO of PepsiCo Inc.,
how to better support their needs. She has strong strategic, and Bill Simon, the former Walmart U.S. chief.1
The description of Rosalind Brewer touches on many

leadership topics to be covered in this book, including
the following ideas: that providing direction is part of The Meaning of Leadership
a leader’s job, that technical expertise is an important
leadership role, and that cultivating diversity is a key Learning Objective 1.1 Explain the meaning of leadership,
leadership role. Our introductory chapter begins with an and how it differs from management.
explanation of what leadership is and is not. We then ex-
amine how leaders make a difference, the various roles You will read about many effective organizational lead-
they play, and the major satisfactions and frustrations ers throughout this text. The common characteristic
they experience. This chapter also includes an expla- of these leaders is their ability to inspire and stimulate
nation of how reading this book and doing the various others to achieve worthwhile goals. Therefore, we can
quizzes and exercises will enhance your own leadership define leadership as the ability to inspire confidence
skills. It concludes with a discussion of followership— and support among the people who are needed to
giving leaders good material to work with. achieve organizational goals.2
The Meaning of Leadership 3
The popular topic of leadership has been defined in been assigned formal authority.8 You, therefore, can ex-
many ways. Here are several other representative defi- ert some leadership by being an influential coworker.
nitions of leadership: A team member who is influential based on personal
attributes and behaviors will often be regarded as a
● A process in which an individual influences a group
leader by peers.
of individuals to achieve a common goal.
The ability to lead others effectively is a rare qual-
● The influential increment over and above mechani- ity. It becomes even rarer at the highest levels in an
cal compliance with directions and orders. organization because the complexity of such positions
● An act that causes others to act or respond in a requires a vast range of leadership skills. This is one
shared direction. reason that firms in search of new leadership seek out
● The art of influencing people by persuasion or ex- a select group of brand-name executives with proven
ample to follow a line of action. track records. It is also why companies now emphasize
leadership training and development to create a new
● Mobilizing people in an organization around com-
supply of leaders throughout the firm.
mon goals to achieve impact.3
● The principal dynamic force that motivates and co-
ordinates the organization in the accomplishment Leadership as Shared Responsibility
of its objectives.4 and Collaboration
● The exercise of social influence between and among
Many leadership theorists and managers agree that the
many sources of leadership (including the leader,
leadership role within a team is seldom the responsi-
follower, and setting), working toward a common
bility of one person. Rather, several individuals within
goal by using various mechanisms including the
the team may serve as leaders, both by formal assign-
leader’s traits, behavior, and emotion.5
ment and informally. Leadership may shift, depending
Importantly, leadership is not only found among on whose expertise is the most relevant at the moment,9
people in high-level positions. Quite the contrary: Lead- such as one member of a marketing team having ad-
ership is needed at all levels in an organization and can vanced expertise in using social media for product
be practiced to some extent even by a person not as- promotion.
signed to a formal leadership position. For example, The essence of shared and collaborative leadership
working as a junior accountant, a person might take is reflected in the comments of Nick Petrie who con-
the initiative to suggest to management that they need ducted a study on leadership development. He said,
to be more careful about what they classify as a true “There is a transition occurring from the old para-
sale. It has been suggested that for improved business digm in which leadership resided in a person or role,
results to come about, it will be because managers be- to a new one in which leadership is a collective pro-
low the C-suite (such as CEO, COO, and CFO) take the cess that is spread throughout networks of people.”10
initiative and risks to drive the company in a different An experiment conducted with both college students
direction. Change needs to come about from leaders at and working adults supported the usefulness of shared
lower levels, rather than relying exclusively on leader- leadership. Participants in the study who experienced
ship from the top.6 shared leadership showed good performance on the
Another reason that leadership is important simulated decision-making tasks, and also high job
throughout the organization is because of the wide- satisfaction.11
spread shift to team-based organizations, many of A key force driving collaborative leadership is the
which are project-based and cross-functional making it hyperconnected organizational world fostered by email
important to have leaders at all organizational levels. At and social media, along with globalization. The col-
the same time, individual team members are increas- laborative leadership style is well suited to harness the
ingly stepping forward to guide and influence others.7 power of this multitude of connections.12 For example,
Another way of understanding that leadership can a head of marketing can readily gather and welcome
be exercised by many people in the organization is the the input of thousands of people on broadening the
presence of people who provide leadership to others yet market for a product. In this way, the head of market-
do not have a job title suggesting that they are man- ing collaborates with people from afar instead of devel-
agers or leaders. You can also rise to leadership when oping the strategy alone.
people come to respect your opinion and personal char- More will be presented and shared about collabora-
acteristics and are thus influenced by you. Emergent tive leadership throughout the book, especially in the
leaders are group members who significantly influ- discussion in Chapter 4 about leadership styles, and
ence other group members even though they have not Chapter 9 about developing teamwork.
Leadership as a Relationship bureaucrat mired in the status quo. But we must be care-
ful not to downplay the importance of management. Ef-
Leadership is usually a relationship between the leader
fective leaders have to be good managers themselves or
and the people being led. A theoretical analysis by Gail
be supported by effective managers. A germane example
T. Fairhurst and Mary Uhl-Bien explains that leader-
is the inspirational entrepreneur who is so preoccupied
ship is not a trait or behavior of an individual but rather
with motivating employees and captivating customers
a phenomenon generated in the interactions among
as to neglect internal administration. As a result, costs
people acting in a given setting. The social actions be-
skyrocket beyond income, and such matters as funding
tween and among people enable them to work together
the employee pension plan and paying bills and taxes
in meaningful ways to produce leadership outcomes.
on time are overlooked. In short, the difference between
For example, a leader at a vehicle dealership might be
leadership and management is one of emphasis. Effective
pursuing the outcome of generating more revenue per
leaders also manage, and effective managers also lead.
vehicle purchase. By building good relationships with
John O’Leary, a leadership development specialist,
dealer associates, the leader gains their cooperation in
investigated whether leaders and managers really carry
generating useful ideas for generating more revenue,
out different activities. His method was to conduct
such as pushing harder to get customers to purchase
interviews of eight experienced leaders in business,
additional dashboard technology and an extended war-
government, and upper-level college sports. O’Leary’s
ranty that generates monthly revenue.
general finding was that leaders and managers tend to
The given setting mentioned previously refers to the
have a different focus on the same set of activities. One
context of the relationship. In a high-power and authority
finding was that managers delegate largely as a method
context, such as an entry-level employee working with the
of increasing efficiency. In contrast, leaders delegate
CEO, the communication is likely to be both task based
as an approach to empowerment. Another key finding
and relationship oriented. The entry-level worker, having
was that leaders focus more on people, and managers
much less power and authority, is likely to emphasize po-
focus more on results.15
liteness, speak formally, and be complimentary.13
Management guru Henry Mintzberg, a professor
How leaders build relationships has changed some-
at McGill University, based on firsthand information,
what in the modern era and its emphasis on interacting
strongly supports the position that the difference be-
with people digitally. It is common practice for leaders
tween leadership and management should not be over-
to give recognition and praise via email or a posting on
drawn. Mintzberg writes:
the company social media site, or a public social media
site such as Facebook or Twitter. The late Steve Jobs, the How would you like to be managed by someone
Apple Company cofounder, however, emphasized that who doesn’t lead? That can be awfully dispiriting.
leaders should not let communication technology block Well, then, why would you want to be led by
them from interacting face-to-face with work associates. someone who doesn’t manage? That can be terribly
“There’s a temptation in our networked age to think that disengaging; how are such “leaders” to know what
ideas can be developed by e-mail and iChat. That’s crazy. is going on?16
Creativity comes from spontaneous meetings, from ran-
An example of how a company might recognize
dom discussions.”14 In addition to sparking innovation,
the difference between leadership and management
the face-to-face encounters help develop relationships.
took place at the Boston investment firm, GMO LLC.
The company brought on the first chief executive in
Leadership Versus Management its thirty-two-year history, Marc Mayer. His role was
to take care of running the company (management) so
To understand leadership, it is important to grasp the that senior officials could focus more on navigating the
difference between leadership and management. We treacherous market (strategic leadership).17
get a clue from the standard conceptualization of the
functions of management: planning, organizing, direct-
ing (or leading), and controlling. Leading is a major
part of a manager’s job; yet a manager must also plan, The Impact of Leadership on
organize, and control. Organizational Performance
Broadly speaking, leadership deals with the inter-
personal aspects of a manager’s job, whereas planning, Learning Objective 1.2 Characterize how leadership
organizing, and controlling deal with the administra- influences organizational performance.
tive aspects. Leadership deals with change, inspiration,
motivation, and influence. An assumption underlying the study of leadership
If these views are taken to their extreme, the leader is that leaders affect organizational performance.
is an inspirational figure, and the manager is a stodgy Boards of directors—the highest-level executives of an
The Impact of Leadership on Organizational Performance 5
organization—make the same assumption. A frequent A specific outcome of how leadership has an impact
antidote to major organizational problems is to replace on organizational performance is sales performance.
the leader in the hope that the newly appointed leader Julian Barling synthesized the results of many studies
will reverse performance problems. Here, we will re- exploring how leadership influences sales results—a
view some of the evidence and opinions, pro and con, key metric of organizational success. Although leader-
about the ability of leaders to affect organizational ship can influence sales performance, the link between
performance. the two is complicated.22 An example of this compli-
cated relationship stems from a series of studies con-
ducted by Adam Grant. In a company involved in the
Research and Opinion: Leadership Does sales of educational and marketing software, new hires
Make a Difference were divided into four different groups for their first
training.
The idea that leaders actually influence organizational In addition to their regular training, the eighteen
performance and morale is widely believed, and there employees in one group also met with a senior com-
has been a moderate amount of research and opinion pany director for fifteen minutes. The executive ex-
that deals with this issue. A scholarly review of the ev- plained the company’s vision and was optimistic and
idence indicates that leaders are commonly credited enthusiastic that employees could achieve this vi-
with the ability to profoundly affect, even control, sig- sion. Members of this group also met with someone
nificant organizational outcomes. 18 For example, Jeff from a different department who was a beneficiary of
Bezos, the founder and chairperson of Amazon.com, their work. (An example of a beneficiary of the work
has guided the company from a startup online book of a sales representative might be a software engineer
and music store into perhaps the world’s largest re- whose software the sales representative was successful
tailer. Amazon is also a major provider of commercial in selling.) A key finding was that the combined influ-
software services, including cloud computing. ence of interacting with a company leader and meeting
Another observation about leadership making a with an internal beneficiary led to the group attaining
difference is that small business owners usually set more sales and higher revenue than the other three
the leadership tone for their organizations. A primary groups.23
source of influence is that owners develop a mission or How leaders impact organizational (or unit) perfor-
set of values by which they operate their company. The mance is the essential subject of this book. For exam-
values in turn often lead to policies or guidelines that ple, good results are attained by developing teamwork
contribute to organization success, such as establishing and formulating the right strategy.
quality and ethical standards.19
The Center on Leadership & Ethics at Duke
University conducted a survey about executive leader- Research and Opinion: Formal Leadership
ship based on 205 executives from public and private
Does Not Make a Difference
companies. One of the issues explored was whether
leadership actions can affect performance. It was con- In contrast to the previous argument, the anti-leadership
cluded that they can indeed, but only if the leader is argument holds that the impact of the leader on organi-
perceived to be responsible and inspirational. Such be- zational outcomes is smaller than the impact of forces
haviors included engaging employees in the company’s within the situation. To personalize this perspective,
vision and inspiring employees to elevate their goals. imagine yourself appointed as the manager of a group
Another contributor to organizational performance was of highly skilled investment bankers. How well your
promoting an environment in which employees have a group performs could be attributed as much to their
sense of responsibility for the entire organization.20 talent and to economic conditions as to your leader-
An overview of research on managerial succession ship. Several of the arguments that leadership can be
over a recent twenty-year period provides more sup- overrated are presented next.
port for the idea that leadership has an impact on or- At times, competent leadership is not necessary,
ganizational performance. A consistent relationship and incompetent leadership can be counterbalanced
was found between who is in charge and how well an by certain factors in the work situation. Under these
organization performed as measured by a variety of in- circumstances, leadership itself is of little consequence
dicators. Using different methodologies, these studies to the performance and satisfaction of team members.
arrived at the same conclusion that changes in leader- According to this viewpoint, many organizations have
ship are followed by changes in company performance. substitutes for leadership. Such substitutes are fac-
Statistical analyses suggest that the leader might be tors in the work environment that provide guidance
responsible for somewhere between 15 percent and and incentives to perform, making the leader’s role al-
45 percent of a firm’s performance.21 most superfluous as shown in Figure 1-1.24
Closely knit teams of highly

trained individuals Substitutes for leadership
Intrinsic satisfaction and leadership function
Professional norms
Figure 1-1 Substitutes for Leadership.
1. Closely knit teams of highly trained individuals. strong leader usually makes a difference, such as get-
When members of a cohesive, highly trained group ting field units back on track after a hurricane or prod-
are focused on a goal, they may require almost no uct recall.
leadership to accomplish their task.
2. Intrinsic satisfaction. Employees who are engaged
in work they find strongly self-motivating, or intrin-
sically satisfying, require a minimum of leadership.
Leadership Roles
Part of the reason is that the task itself grabs the
worker’s attention and energy. The worker may re- Learning Objective 1.3 Pinpoint several important
quire little leadership as long as the task is proceed- leadership roles.
ing smoothly.
Another way to gain an understanding of leadership is
3. Professional norms. Workers who incorporate
to examine the various roles carried out by leaders. A
strong professional norms often require a mini-
role in this context is an expected set of activities or
mum of supervision and leadership. A group of
behaviors stemming from one’s job. Leadership roles
certified professional accountants may not need
are a subset of the managerial roles studied by Henry
visionary leadership to inspire them to do an hon-
Mintzberg and others.28 Before reading ahead to the
est job of auditing the books of a client or advising
summary of leadership roles, you are invited to com-
against tax fraud.
plete Leadership Self-Assessment Quiz 1-1.
Another argument for leadership being overrated is Leading is a complex activity, so it is not surprising
that in the modern organization, effective leadership that Mintzberg and other researchers identified eleven
means widespread collaboration in obtaining ideas, roles that can be classified as part of the leadership
rather than the heroic leader doing all the innovating. function of management.
According to this point of view, instead of centralizing
1. Figurehead. Leaders, particularly high-ranking
leadership in the hands of a few, authority and power
managers, spend some part of their time engaging in
are shared, and people lead themselves.25 (The concept
ceremonial activities, or acting as a figurehead. Four
of shared leadership was mentioned above in relation
specific behaviors fit the figurehead role of a leader:
to the meaning of leadership and will surface at several
a. entertaining clients or customers as an official
places in the text.)
representative of the organization
A broader argument about the limited impact of lead-
b. making oneself available to outsiders as a
ership based on a synthesis of organizational research is
representative of the organization
that leaders often face circumstances that strongly limit
c. serving as an official representative of the
their ability to influence organizational performance.
organization at gatherings outside the
Among them are (1) a high failure rate of new ventures,
organization
(2) unpredictable and uncontrollable changes in tech-
d. escorting official visitors
nology, social trends, and other environmental forces,
(3) bureaucratic norms that regulate the organization, 2. Spokesperson. When a leader acts as a spokes-
(4) an overwhelming amount of people and information person, the emphasis is on answering letters or in-
to deal with, (5) ambiguity about the causes of and solu- quiries and formally reporting to individuals and
tions to problems, and (6) the tendency of many people groups outside the manager’s direct organizational
not to do what a leader wants or expects.26 unit. As a spokesperson, the managerial leader keeps
A useful perspective on whether leadership makes five groups of people informed about the unit’s ac-
a difference is to ask the right question, as framed by tivities, plans, capabilities, and possibilities (vision):
J. Richard Hackman and Ruth Wageman. Instead of a. upper-level management
asking if leaders make a difference, we should be ask- b. clients or customers
ing under what conditions leaders make a difference.27 c. other important outsiders such as labor union
A crisis mode is an example of a situation in which a d. professional colleagues
Leadership Roles 7
Leadership Self-Assessment Quiz 1-1
Readiness for the Leadership Role

Instructions: Indicate the extent to which you agree with each of the following statements, using the following scale:
1, disagree strongly; 2, disagree; 3, neutral; 4, agree; 5, agree strongly.
DS D N A AS
1. I like having people count on me for ideas and suggestions. 1 2 3 4 5
2. I have definitely inspired other people. 1 2 3 4 5
3. It is a good practice to ask people provocative questions about 1 2 3 4 5
their work.
4. It is easy for me to compliment others. 1 2 3 4 5
5. I have many more friends and followers on social working websites 1 2 3 4 5
than do most people.
6. I like to cheer people up even when my own spirits are down. 1 2 3 4 5
7. What my team accomplishes is more important than my personal glory. 1 2 3 4 5
8. Many people imitate my ideas. 1 2 3 4 5
9. Building team spirit is important to me. 1 2 3 4 5
10. I would enjoy coaching other members of the team. 1 2 3 4 5
11. It is important to me to recognize others for their accomplishments. 1 2 3 4 5
12. I would enjoy entertaining visitors to my firm even if it interfered with 1 2 3 4 5
my completing a report.
13. It would be fun for me to represent my team at gatherings outside 1 2 3 4 5
our unit.
14. The problems of my teammates are my problems too. 1 2 3 4 5
15. Resolving conflict is an activity I enjoy. 1 2 3 4 5
16. I would cooperate with another unit in the organization even if I dis- 1 2 3 4 5
agreed with the position taken by its members.
17. I am an idea generator on the job. 1 2 3 4 5
18. It is fun for me to bargain whenever I have the opportunity. 1 2 3 4 5
19. Team members listen to me when I speak. 1 2 3 4 5
20. People have asked me to assume the leadership of an activity several 1 2 3 4 5
times in my life.
21. I have always been a convincing person. 1 2 3 4 5
22. I enjoy imagining a bright future for a group to which I belong. 1 2 3 4 5
23. Several people have told me that I have good ability to see the big 1 2 3 4 5
picture.
24. I am willing to listen to people gripe and complain about their job. 1 2 3 4 5
25. I enjoy the opportunity to work with people from cultures different 1 2 3 4 5
than my own.
(continued)
Self-Assesment Quiz
Leadership Self-Assessment Quiz5-2
1-1 (continued)
Scoring and Interpretation: Calculate your total score by adding the numbers circled. A tentative interpretation of the scoring
is as follows:
● 90–100: High readiness for the leadership role
● 60–89: Moderate readiness for the leadership role
● 40–59: Some uneasiness with the leadership role
● 39 or less: Low readiness for the leadership role
If you are already a successful leader and you scored low on this questionnaire, ignore your score. If you scored surpris-
ingly low and you are not yet a leader, or are currently performing poorly as a leader, study the statements carefully. Con-
sider changing your attitude or your behavior so that you can legitimately answer more of the statements with a 4 or a 5.
Studying the rest of this text will give you additional insights that may be helpful in your development as a leader.
Dealing with outside groups and the general public b. initiating activities that contribute to group
is usually the responsibility of top-level managers. morale, such as giving parties and sponsoring
sports teams
3. Negotiator. Part of almost any manager’s job de-
c. holding periodic staff meetings to
scription is trying to make deals with others for
encourage team members to talk about their
needed resources. Four illustrative negotiating ac-
accomplishments, problems, and concerns
tivities are as follows:
a. bargaining with superiors for funds, facilities, 6. Team player. Related to the team-builder role is
equipment, or other forms of support that of the team player. Three behaviors of team
b. bargaining with other units in the organization players are:
for the use of staff, facilities, equipment, or a. displaying appropriate personal conduct
other forms of support b. cooperating with other units in the
c. bargaining with suppliers and vendors for organization
services, schedules, and delivery times c. displaying loyalty to superiors by fully
d. bargaining with job candidates about starting supporting their plans and decisions
compensation and benefits
7. Inclusion facilitator. The leader who facilitates
4. Coach and motivator. An effective leader takes inclusion makes a deliberate effort to assume
the time to coach and motivate team members, that all team members, group members, or other
and sometimes to inspire large groups of people employees feel included and welcome within the
inside the organization. This role includes five spe- organization. Three illustrative activities of an in-
cific behaviors: clusive leader are:
a. informally recognizing team members’ a. seeking to build a demographically and
achievements culturally diverse workforce
b. providing team members with feedback b. taking a personal interest in each member of
concerning ineffective performance the group or team
c. ensuring that team members are informed of c. encouraging team or group members to take
steps that can improve their performance the initiative to make sure that all coworkers
d. implementing rewards and punishments to are made to feel like “one of the gang”
encourage and sustain good performance
8. Technical problem solver. It is particularly im-
e. inspiring people through such means as being
portant for supervisors and middle managers to
charismatic, creating visions, telling interesting
help team members solve technical problems. Two
stories, and being highly ethical
activities contributing to this role are:
5. Team builder. A key aspect of a leader’s role is to a. serving as a technical expert or adviser, such
build an effective team. Activities contributing to as helping the group make optimum of social
this role include: marketing to promote the company
a. ensuring that team members are recognized for b. performing individual contributor tasks on
their accomplishments, such as through letters a regular basis, such as making sale calls or
of appreciation repairing machinery
Leadership Roles 9
9. Entrepreneur. Although not self-employed, provides an opportunity to apply role analysis to

managers who work in large organizations have yourself.
some responsibility for suggesting innovative
ideas or furthering the business aspects of the
firm. Three entrepreneurial leadership role activ- Tolerance for Ambiguity
ities are:
a. reading trade publications and professional Although our discussion of leadership roles suggests
journals to keep up with what is happening in that there is some clarity to the activities of leaders,
the industry and profession they also encounter considerable ambiguity. In recent
b. talking with customers or others in the years, as the world of work has become more uncertain
organization to keep aware of changing needs and rapidly changing, the ability to tolerate ambiguity
and requirements as well as to thrive from it has gained in importance
c. getting involved in situations outside the unit as a trait and behavior for leaders. Furthermore, the
that could suggest ways of improving the unit’s complexity of problems in the workplace makes clear-
performance, such as visiting other firms, cut answers elusive. Tolerating ambiguity means be-
attending professional meetings or trade shows, ing able to accept and profit from vague, uncertain, or
and participating in educational programs inconsistent information or situations.30 “You manage
the gray” because you recognize that tough and com-
10. Strategy developer. Top-level managers develop plex decisions are not black and white.
strategy, usually assisted by input from others In the words of British business writer Adam Gale,
throughout the organization. Carrying out the strat- “Tolerance for ambiguity will be a vital characteristic of
egy developer role enables the manager to practice leaders in the years to come. Chief executives cannot af-
strategic leadership. The strategist role is concerned ford to bury their heads in the sands when storms of un-
with shaping the future of the organization, or a certainty hit, because these storms will never cease.”31
unit within the larger organization. Specific activ- A practical way of understanding the importance of
ities involved in this role include: tolerating ambiguity for leaders is that it is has crept
a. setting a vision and direction for the its way into a job qualification for some leadership
organization and providing innovative ideas to and management positions. “Tolerance for ambigu-
pursue ity” is therefore found somewhere in the job specifi-
b. helping the firm deal with the external cations, or a statement of the personal qualifications
environment needed to perform the job. A job specification usually
c. helping develop organizational policies being a includes the education, experience, knowledge, and
thought leader in the sense of the organization skills required to perform the job successfully. The job
being widely respected for advancing a field or specification can also include a personal trait or be-
producing a superior product havior, such as proactivity, or toleration for ambiguity.
Microsoft Corporation provides an example of
11. Executor. In carrying out the executor role, the
tolerance for ambiguity in a highly technical posi-
leader makes things happen, often helping translate
tion with some leadership responsibility. The Surface
plans into action. Parts of this role include:
(tablet computer) development team was seeking a
a. translating strategy into action, such as helping
talented software development engineer with a strong
develop action plans
systems, leadership, and cross-organizational col-
b. making change happen
laboration background. The formal qualifications
c. holding people accountable to ensure that
included a bachelor’s of science degree in computer
productive work is accomplished
science, electrical engineering, or a related field. An-
A common thread in the leadership roles of a man- other specification was a minimum of five to seven
ager is that the managerial leader in some way in- years of experience in software development for con-
spires or influences others. An analysis in the Harvard sumer products. The informal qualifications included
Business Review concluded that the most basic role high motivation and being self-driven, along with
for corporate leaders is to release the human spirit high tolerance for ambiguity and the ability make
that makes initiative, creativity, and entrepreneurship progress in the face of the ambiguity. It may seem
possible.29 An important practical implication is that contradictory but there is considerable ambiguity in
managers at every level can exercise leadership. For the technical realm, such as deciding which software
example, a team leader can make an important con- will be best for accomplishing a task. Another ambi-
tribution to the firm’s thrust for efficiency by explain- guity was whether there was sufficient demand for
ing to team members how to minimize duplications in another line of small computers even if Surface com-
a mailing list. Leadership Skill-Building Exercise 1-1 puters were a technical success.
Leadership Skill-Building Exercise 1-1
My Leadership Role Analysis

Here is an opportunity for you to think through your current doing it now” for Role 7, technical problem solver, might
level of skill or potential ability to carry out successfully the have written: “I helped the restaurant where I was an assis-
eleven leadership roles already described. Each role will be tant manager bring in more revenue during off-peak hours. I
listed along with a reminder of one of its key aspects. Check promoted an early-bird supper for senior citizens.”
next to each role whether it is an activity you could carry out Few readers of this book will have had experience in car-
now, or something for which you will need more experience rying out most of these roles. So relate the specific roles to
and preparation. For those activities you check as “capable any leadership experience you may have had, including full-
of doing it now,” jot down an example of your success in time work, part-time work, volunteer work, clubs, commit-
this area. For example, a person who checked “capable of tees, and sports.
Capable of Need Preparation

Leadership Role
Doing It Now and Experience
1. Figurehead (Engage in ceremonial activities; represent the group
to outsiders.)
2. Spokesperson (Answer inquiries; report information about the
group to outsiders.)
3. Negotiator (Make deals with others for needed resources.)
4. Coach and motivator (Recognize achievements; encourage; give

feedback and advice; inspire people.)
5. Team builder (Contribute to group morale; hold meetings to en-
courage members to talk about accomplishments and concerns.)
6. Team player (Correct conduct; cooperate with others; be loyal.)
7. Technical problem solver (Help group members solve technical

problems; perform individual contributor tasks.)
8. Inclusion facilitator (Makes all members of the organization or
organizational unit feel that they are welcomed and valued.)
9. Entrepreneur (Suggest innovative ideas and further business ac-
tivity of the group; search for new undertakings for the group.)
10. Strategy developer (Set direction for others based on external
environment.)
11. Executor (Makes things happen, often helping translate plans
into action.)
Interpretation: The more of the eleven roles you are ready create an opportunity to practice that role. For example,
to perform, the more ready you are to function as a leader assume you have a valuable skill such as gathering follow-
or carry out leadership roles. Your study of leadership will ers on a social media website. During the next couple of
facilitate carrying out more of these roles effectively. For weeks, coach a beginner in creating effective social media
purposes of skill development, choose one of the roles in posts.
which you need preparation and experience. Read some The accompanying Leader in Action helps illustrate
information in this text or elsewhere about the role, and both leadership roles and the fact that a leader can make a
then practice that role when the opportunity arises. Or difference.
The Satisfactions and Frustrations of Being a Leader 11

Leader in Action
CEO John Hayes of Container Maker Ball Corporation Makes a Major Change
Ball Corporation became widely known to consumers in Hayes is regarded as a low-profile individual who does
the 1880s with glass mason jars. Today, the company has not seek publicity. He is loyal to Ball, and is proud of its con-
approximately 14,500 employees. Over time the company tribution to society. As a leader and manager, he empha-
manufactured many types of glass and plastic containers. sizes employee retention. “Smart people can go anywhere.
Yet in 2019, Ball CEO John Hayes abandoned glass and It’s your job to attract and retain those people,” says Hayes.
plastic. Aside from $900 million annual of revenue from the Earlier in his career, a business reporter said of Hayes, “It’s
subsidiary Ball Aerospace and Technologies Corporation, hard to fault as man who works hard, shows loyalty and
all of Ball’s revenue now derives from aluminum containers. seems to genuinely value those who work under him. If any-
The containers are used primarily for beer, soda, and other thing, John Hayes appears to be a brilliant, capable but oth-
canned beverages, along with some business in aluminum erwise normal guy who loves hockey and doesn’t need to
aerosol cans. see his face in the national news every week.”
Outside observers thought that Hayes was taking an out- Hayes received and bachelors of science degree From
sized risk to make a 100 percent bet on metal when most Colgate University, and an M.B.A in finance and strategy from
of the beverage container market is for either glass or plas- the Kellogg Graduate School of Management at Northwestern
tic. Despite the skepticism, Ball’s earnings have surged University. In 1993, he joined the mergers and acquisitions
since the shift to aluminum cans, and revenue was around office at Lehman Brothers, and was later promoted to vice
$12 billion in 2021. “In my 20 years at our company, I’ve president. One of his early clients was Ball, and he helped the
never seen growth rates like these,” said Hayes. During its company exit the stagnant glass jar business. In 1999, Hayes
history, Ball has tried 46 different business lines and exited accepted a position as senior director, corporate planning and
the plastics business three times. Hayes is confident that development at Ball, and was promoted to CEO five years later.
aluminum will be a stable metal for cans. Questions
Vindicating Haye’s decision, aluminum cans continue to
1. Identify at least two roles that Hayes occupies, and ex-
gain market share. Ball now has 70 percent of aluminum’s plain your reasoning.
growing share of the craft-beer market. Aluminum cans are 2. In what way has Hayes provided strategic direction to the
also favored by environmentalists because aluminum bever- Ball Corporation.
age containers are recycled more frequently than those made 3. Why might Hayes’s low-key personality be a good fit for
a company that became famous for making Mason jars?
of glass or plastic. Aluminum containers also requires less
(If you are not familiar with Mason jars, ask a parent or
energy to manufacture than do glass or plastic containers.
grandparent for a refresher.)
Sources: Original story based on facts and observations in the following sources: Kristin Stoller, “A Man, a Can, a Plan,” Forbes,
June 10, 2019, pp. 30–31; “John A., Chairman, President, and Chief Executive Officer Ball Corporation,” Business Roundtable (www
.businessroundtable.org), April 1, 2021, p. 1; “10 Things You Didn’t Know about Ball Corporation CEO John Haynes,” Money Inc.
(https://moneyinc.com), April 1, 2019, pp. 1–3; “John A. Hayes Appointed Executive Vice President of Ball Packaging Europe,” Ball
(www.ball.com), May 25, 2005, pp. 1–5.
for a person who reports to a leader or manager is team

The Satisfactions and Frustrations member, group member, or associate. Researchers, how-
of Being a Leader ever, continue to use the terms subordinate and follower
for technical purposes.) Yet being a leader, such as a team
Learning Objective 1.4 Identify the major satisfactions leader, vice president, or COO (chief operating officer),
and frustrations associated with the leadership role. does not always bring personal satisfaction. Some lead-
ership jobs are more fun than others, such as being the
The term leader has a positive connotation for most peo- leader of a successful group with cheerful team members.
ple. To be called a leader is generally better than to be Because most of you are contemplating becoming a
called a follower or a subordinate. (The preferred term leader or moving further within a leadership role, it is
worthwhile to examine some of the potential satisfac- important motivator or satisfier, being a leader has
tions and frustrations that many people find in being a built-in satisfaction. In some situations, a team
an organizational leader. leader earns virtually the same amount of money as
other team members. Occupying a team leadership
Satisfactions of Leaders position, however, is a starting point on the path to
high-paying leadership positions.
The types of satisfactions that you might obtain from
being a formal leader depend on your particular lead- 4. Respect and status. A leader frequently receives
ership position. Factors such as the amount of money respect from group members. They also enjoy a
you are paid and the type of people in your group influ- higher status than people who are not occupying
ence your satisfaction. Leaders often experience seven a leadership role. Status accompanies being ap-
sources of satisfaction. pointed to a leadership position on or off the job.
When an individual’s personal qualifications match
1. A feeling of power and prestige. Being a leader the position, their status is even higher.
automatically grants you some power. Prestige is 5. Good opportunities for advancement. Once you
forthcoming because many people think highly become a leader, your advancement opportunities
of people who are leaders. In a few organizations, increase. Obtaining a leadership position is a vital
top-level leaders are addressed as Mr., Mrs., or Ms., first step for career advancement in many organiza-
whereas lower-ranking people are referred to by tions. Staff or individual contributor positions help
their first names. Yet most leaders encourage others broaden a person’s professional experience, but
to address them by their first names. most executives rise through a managerial path.
2. A chance to help others grow and develop. A 6. A feeling of being in on things. A side benefit of
leader works directly with people, often teaching being a leader is that you receive more inside infor-
them job skills, serving as a mentor, and listening to mation. For instance, as a manager you are invited
personal problems. Part of a leader’s job is to help to attend management meetings. In those meetings,
other people become managers and leaders. A leader you are given information not passed along to indi-
often feels as much of a people helper as does a hu- vidual contributors. One such tidbit might be plans
man resource manager or a counselor. Kip Tindell, for expansion or downsizing.
founder of the Container Store, served as CEO for
thirty-eight years before leaving that role to become 7. An opportunity to control money and other re-
chairman in 2016. He says that one of the most resources. A leader is often in the position of helping to
warding aspects of his job is enriching people’s lives.32 prepare a department budget and authorize expenses.
Even though you cannot spend this money person-
3. High income. Leaders, in general, receive higher ally, knowing that your judgment on financial mat-
pay than team members, and executive leaders in ters is trusted does provide some satisfaction. Many
major business corporations typically earn several leaders in both private and public organizations con-
million dollars per year. A handful of business ex- trol annual budgets of several million dollars.
ecutives receive compensation of over $100 million
per year, and several have received over $150 mil- Leadership Skill-Building Exercise 1-2 provides you an op-
lion as compensation for being fired. If money is an portunity to think about the satisfactions of being a leader.
Appreciating the Satisfactions of Being a Leader

An indirect way of building leadership skills is to identify Observe whether the key satisfactions you uncover
which aspects of leadership appear to be particularly satis- match those in the text. If the satisfactions you uncover res-
fying and then plan to emphasize those aspects in your cur- onate with you, think about how you could emphasize that
rent or future leadership activities. Toward this end, interview aspect of leadership. For example, one of the people you
two people in leadership positions in any field whom you interview might say, “It’s great fun celebrating victories with
consider to be successful. The interview can be conducted the group.” The skill you would then aim for would be to
in-person, over the phone, by email, or through texting. Ask make a point of celebrating any victories the group you lead
your subject one or two basic questions such as “What’s might have.
really fun about your job?” or “What is the most satisfying
aspect of your leadership position?”
The Satisfactions and Frustrations of Being a Leader 13
Dissatisfactions and Frustrations of Leaders 6. Too many problems involving people. A major
frustration facing a leader is the number of hu-
About one out of ten people in the workforce is clas-
man resource problems requiring action. The lower
sified as a supervisor, administrator, or manager. Not
your leadership position, the more such problems
every one of these people is a true leader. Yet the prob-
you face. For example, the office supervisor spends
lems these people experience often stem from the
more time dealing with problem employees than
leadership portions of their job. Many individual con-
does the chief information officer. If you do not like
tributors refuse to accept a leadership role because of
dealing with people problems, you are not suited
the frustrations they have seen leaders endure. These
for a leadership or management position.
frustrations include the following:
7. Too much organizational politics. People at all
1. Too much uncompensated overtime. People in levels of an organization, from the office assistant
leadership jobs are usually expected to work longer to the chairperson of the board, must be aware of
hours than other employees. Such unpaid hours political factors. Yet you can avoid politics more
are called casual overtime. People in organizational easily as an individual contributor than you can as
leadership positions typically spend about fifty-five a leader. As a leader you have to engage in political
hours per week working. During peak periods of byplay from three directions: below, sideways, and
peak demands, this figure can surge to eighty hours upward. Political tactics such as forming alliances
per week. and coalitions are a necessary part of a leader’s role.
2. Too many headaches. It would take several pages Another troublesome aspect of organizational pol-
to list all the potential problems leaders face. Being itics is that there are people who seek to discredit
a leader is a good way to discover the validity of you, perhaps even by fabricating mistakes you have
Murphy’s law: “If anything can go wrong, it will.” made.
A leader is subject to a batch of problems involving 8. The pursuit of conflicting goals. A major chal-
people and things. Many people find that a leader- lenge facing leaders is to navigate among conflict-
ship position is a source of stress, and many managing goals. The central theme of these dilemmas is
ers experience burnout. attempting to grant others the authority to act in-
3. Facing a perform-or-perish mentality. Many lead- dependently, yet still getting them aligned or pulling
ers face an enormous amount of pressure to either together for a common purpose.34 Many of the top-
perform or be fired. These pressures often can be ics relating to these conflicting goals are discussed
found in companies owned by private equity (or at later points in the text.
buyout) firms. The head of each company owned 9. Being perceived as unethical, especially if you
by an equity firm is expected to make the company are a corporate executive. The many corporate fi-
profitable through such means as slashing costs, nancial scandals made public in recent years have
boosting sales in international markets, and paying led to extreme perceptions that CEOs, in particular,
down debt. There is also considerable pressure on are dishonest, unethical, and almost criminal in
the CEO to improve operations by making them their behavior. Even if 95 percent of corporate lead-
more efficient.33 ers are honest and devoted to their constituents, the
4. Not enough authority to carry out responsibility. leader still has to deal with the possibility of being
People in managerial positions complain repeatedly perceived as dishonest.
that they are held responsible for things over which 10. Job fatigue and burnout as a result of the pre-
they have little control. As a leader, you might be ceding nine problems. Leaders occupying high-
expected to work with an ill-performing team mem- level positions face so many pressures that many
ber, yet you lack the power to fire that person Or of them experience fatigue and even burnout—in-
you might be expected to produce high-quality ser- tense fatigue and resentment caused by dealing
vice with too small a staff and no authority to be- with heavy stress over a prolonged period of time.
come fully staffed. According to a study conducted by Harvard Med-
5. Loneliness. The higher you rise as a leader, the ical School faculty, 96 percent of senior leaders
lonelier you will be in a certain sense. Leadership reported at least some burnout, with one-third de-
limits the number of people in whom you can con- scribing their burnout as extreme. The round-the-
fide. It is awkward to confide negative feelings clock attention to responsibilities contributes to
about your employer to a team member. It is equally the excessive fatigue. Another major contributor
awkward to complain about one group member to to leader burnout is being responsible for an ac-
another. Some people in leadership positions feel tion that hurts so many people, such as laying off
lonely because they miss being one of the gang. workers.35
the leader is effective depends on the three sets of vari-

A Framework for Understanding ables in the box.
Leadership The left box, leader characteristics, refers to inner
qualities such as self-confidence and problem-solving
Learning Objective 1.5 Describe a framework for ability that help a leader function effectively in many
understanding leadership. situations. Leader behavior and style refers to the ac-
tivities engaged in by the leader, including characteris-
Many different theories and explanations of leadership tic approach, that relate to their effectiveness. A leader
have been developed because of the interest in leader- who frequently coaches group members and practices
ship as a practice and as a research topic. Several at- participative leadership, for example, might be effec-
tempts have been made to integrate the large number tive in many circumstances.
of leadership theories into one comprehensive frame- Group member characteristics refers to attributes
work..36 The framework presented in Figure 1-2 and of the group members that could have a bearing on
described here focuses on the major sets of variables how effective the leadership attempt will be. Intelligent
that influence leadership effectiveness. The framework and well-motivated group members, for example, help
suggests that the leadership process is a function of the the leader do an outstanding job. The internal and ex-
leader, group members (or followers), and other situa- ternal environment also influences leadership effective-
tional variables. ness. A leader in a culturally diverse environment, for
The basic framework presented in Figure 1-2 em- example, will need to have multicultural skills to be ef-
phasizes this situational perspective (referring to the fective. All of the topics in this text fit somewhere into
situational variable just mentioned). According to this this model, and the fit will be more obvious at some
model, leadership can best be understood by examin- places than at others.
ing its key variables: leader characteristics and traits, The information at the bottom of Figure 1-2 outlines
behavior and style, group member characteristics, and how the elements of leadership line up with chapters
the internal and external environment. At the top of the in the text. A key point of this model is that leadership
framework, leadership effectiveness refers to attain- is a multilevel phenomenon. The leader interacts with
ing desirable outcomes such as productivity, quality, group members one at a time, and also with the group.
and satisfaction in a given situation. Whether or not At the same time, leadership takes place in the context
Leadership
effectiveness
equals combined
influence of three
sets of factors
Leader Group member Context

characteristics, characteristics (internal and
behavior, and external
and style behavior environment)
Figure 1-2 A Basic Framework for Understanding

Leadership.
Leader Characteristics and Behavior are Described
in Chapters 2, 3, 4, 8, 11, and 12. Group Member
Characteristics and Behavior are Described in Chapters
5, 9, and 12. The Context Of Leadership is Described in
Chapters 13, 14, and 15.
Skill Development in Leadership 15
of the organization and the external environment. As Leadership skills are also sought in candidates for en-
noted by leadership scholars Francis J. Yammarino try-level professional positions. Two reasons are that
and Fred Danjsereau, leadership involves a movement a job candidate with leadership skills is more likely to
from one level (person level) to a higher level (leader– be self-reliant and also, they can be placed in charge
follower group level).37 After that come the organiza- of a part of a project.39 Although students of leader-
tional and societal levels. A brief example of leadership ship will find this information encouraging, develop-
as a multilevel phenomenon follows: ing leadership skills is more complex and ambiguous
than developing a structured skill such as inserting
Team leader Ashley decides to coach team member
an additional memory card into a computer. Never-
Li on how to express her ideas more forcibly
theless, you can develop leadership skills by study-
when making a PowerPoint presentation. Ashley
ing this textbook, which follows a general learning
recognizes that Li is shy, so she moves slowly with
model:
her coaching. Ashley also recognizes that she is
working with a supportive team, so she thinks that 1. Conceptual information and behavioral guide-
the team will be encouraging toward Li in whatever lines. Each chapter in this textbook presents
progress she makes. In addition, Ashley recognizes useful information about leadership, including
that the organization as a whole encourages a section titled “Guidelines for Action and Skill
assertiveness, so she feels justified in coaching Li Development.”
toward being more assertive in her presentations.
2. Conceptual information demonstrated by
Yet at the same time Ashley understands that Li
examples and brief descriptions of leaders
was raised in a culture (society level) that values
in action. Students can learn much from read-
humility and timidity so she does not push Li too
ing about how effective (or ineffective) leaders
fast to make improvements.
operate.
A current integrative process model of leadership 3. Experiential exercises. The textbook provides
provides two implications38 of the framework presented an opportunity for practice and personalization
in Figure 1-2. The first implication is that context influ- through cases, role plays, and self-assessment
ences leadership at any given moment. Context in this quizzes. Self-quizzes are emphasized here be-
sense refers to any external stimuli that may impact the cause they are an effective method of helping
nature of leadership. For example, if the organization you personalize the information, thereby linking
is facing a crisis, the leader might have to emphasize conceptual information to yourself. For example,
compassion for people and provide clear guidance you will read about the importance of assertive-
about a plan to deal with the crisis. ness in leadership and also complete an assertive-
The second implication is that leadership is a process ness quiz.
with intrapersonal and interpersonal mechanisms (or
4. Feedback on skill utilization, or performance,
modes of transmission). The intrapersonal mechanisms
from others. Feedback exercises appear at several
include the leader’s traits and emotions. Among the traits
places in the text. Implementing some of the skills
are cognitive skills and personality factors that influence
outside of the classroom will provide additional
leadership effectiveness. For example, an intelligent per-
opportunities for feedback.
son would be effective at developing strategy. The inter-
personal mechanisms refer to the impact of the leader on 5. Practice in natural settings. Skill development
the behavior of others. For example, a leader who is per- requires active practice. A given skill has to be
ceived to be charismatic might influence others to make practiced many times in natural settings before
personal sacrifices for the good of the organization. it becomes integrated comfortably into a leader’s
mode of operation. A basic principle of learning
is that practice is necessary to develop and im-
prove skills. Suppose, for example, that you read
Skill Development in Leadership about giving advice in the form of questions, as
described in Chapter 10. If you practice this skill
at least six times in live settings, you will prob-
Learning Objective 1.6 Cite how leadership skills can be ably have acquired an important new skill for
developed. coaching others.
Leadership skills are in high demand. Executives who Leadership Skill-Building Exercise 1-3 gives you the
recruit candidates for high-level management jobs opportunity to begin developing your leadership skills
list leadership skills as the top attributes they want. systematically.
My Leadership Portfolio
Here, we ask you to begin developing a leadership portfolio plan to practice. An example might be, “I intend to become
that will be a personal document of your leadership capabil- a well-respected corporate professional, a key member of a
ities and experiences. In each chapter, we will recommend happy and healthy family, and a contributor to my commu-
new entries for your portfolio. At the same time, we encour- nity. I aspire to lead many people toward constructive activ-
age you to use your imagination in determining what consti- ities.” Include your job résumé in your portfolio, and devote
tutes a suitable addition to your leadership portfolio. a special section to leadership experiences. These experi-
We suggest you begin your portfolio with a personal ences can be from the job, community and religious activi-
mission statement that explains the type of leadership you ties, and sports. (See Leadership Self-Assessment Quiz 1-2.)
The Leadership Experience Audit

Instructions: Readers of this book vary considerably in their leadership, managerial, and supervisory experience. Yet even
readers who have not yet occupied a formal leadership position may have had at least a taste of being a leader. Use the
following checklist to record any possible leadership experiences you might have had in the past or have now.
1. Held a formal leadership position, such as vice president, department head, manager,
assistant manager, team leader, group leader, or project manager
2. Seized the opportunity on the job to take care of a problem, although not assigned such
responsibility
3. Headed a committee or task force
4. Was captain or co-captain of an athletic team
5. Held office in a club at high school, career school, or college
6. Was editor of a campus newspaper or section of the newspaper such as sports
7. Organized a study group for a course
8. Organized an ongoing activity to sell merchandise at people’s homes, such as for
Avon, Mary Kay, or Tupperware
9. Worked in multilevel sales and recruited and guided new members
10. Organized a charity drive for a school or religious organization
11. Organized a vacation trip for friends or family
12. Took charge during a crisis, such as by helping people out of a burning building
or a flooded house
13. Was head of a choir or a band
14. Headed a citizens’ group making demands on a company or the government
15. Organized a group of friends to help out people in need, such as physically disabled
senior citizens
16. Other
Interpretation: The more experiences you checked, the more leadership experience you already have under your belt.
Leadership experience of any type can be valuable in learning to work well with people and coordinate their efforts. Many
CEOs in a variety of fields got their start as assistant fast-food restaurant managers.
Followership: Being an Effective Group Member 17
the importance of collaboration between leaders and

Followership: Being an Effective followers.
Group Member
Types of Followers
Learning Objective 1.7 Pinpoint several traits, behaviors,
and attitudes of a successful follower. A major challenge in being a leader is to recognize
that followers differ substantially in talent and moti-
To be an effective leader, one needs good followers. vation. Similarly, a challenge in becoming an effective
According to followership expert Robert Kelley, about follower is to understand your basic approach to being
70 percent to 90 percent of all work in organizations a group member. Barbara Kellerman offers a typology
is performed by people in follower roles.40 As we men- that helps explain how followers differ from one an-
tioned at the outset of this book, the word followers other. She focuses on the defining factor of the level of
suffers from political incorrectness; yet it is a neutral engagement with the leader or group to arrive at five
term as used by leadership researchers. A point of view types of followers, as illustrated in Figure 1-3. At one
that represents a modern view of leadership, as ex- end of the continuum is “feeling and doing nothing.”
plained by J. Richard Hackman and Ruth Wageman, At the other end is “being passionately committed and
is that leaders are also followers, and followers also deeply involved.”44
exhibit leadership. Each boss is also a subordinate,
1. Isolates are completely detached and passively
such as a team leader reporting to a middle manager. 41
support the status quo by not taking action to
Moreover, each subordinate will often carry out a lead-
bring about changes. They do not care much about
ership role, such as heading up a short-term project—
their leaders and just do their job without taking
or even organizing this year’s holiday party. Another
an interest in the overall organization. Isolates
perspective on followers is that they are the people
need coaching, yet sometimes firing them is the
who get things done and that the bright ideas of lead-
only solution.
ers would go nowhere without the doers.42
Followership has become so important that some 2. Bystanders are free riders who are typically de-
organizations offer training in the subject. Training tached when it fits their self-interests. At a meet-
in followership often focuses on how to take respon- ing, a bystander is more likely to focus on the
sibility for shared goals, being a self-starter, and pro- refreshments and taking peeks at their personal
viding constructive feedback to leaders when they text messages. Bystanders have low internal mo-
make mistakes. In some high-risk occupations, such tivation, so the leader has to work hard to find
as an airplane crew member, followership skills are the right motivators to spark the bystander into
so important that formal training in this behavior is a action.
requirement.43 3. Participants show enough engagement to in-
Most of the topics in our study of leadership are vest some of their own time and money to make
aimed at inspiring, motivating, and influencing group a difference, such as taking the initiative to learn
members to achieve organizational goals. It is also new technology that would help the group. Par-
valuable, however, to focus on three key aspects of be- ticipants are sometimes for, and sometimes
ing an effective group member: types of followers, the against, the leader and the company. The leader
personal characteristics of productive followers, and has to review their work and attitudes carefully to
Diehards
Activists
Participants
Bystanders
Level of Engagement
Isolates
Figure 1-3 Followers Classified by Level of Engagement.
determine whether or not the participant is being product, department, organization, idea, or value.
constructive. To a committed group member, the leader facili-
Participants have also been regarded as active tates progress toward achieving a goal.
followers, or those who make a major contribution 3. Competence and focus. Effective followers build
to the mission of the group. The term derives from their competence and focus their efforts for max-
experiences at the space shuttle activities at NASA, imum impact. Competence centers on master-
and the National Outdoor Leadership School that ing skills that will be useful to the organization.
includes mountain climbing, expeditions, and ad- Less-effective group members rarely take the initia-
venture paths. Leaders at both activities said that tive to engage in training and development.
success in their ventures requires a single-minded
4. Courage. Effective followers establish themselves
focus on the goal and a team of active followers.45
as independent, critical thinkers, and fight for
Such individuals will inform the leader and the
what they believe is right. A good follower, for ex-
group about what they think is necessary for suc-
ample, might challenge the company’s policy of
cess, or survival, such as alerting the leader to a
taking ninety days to make good on accounts pay-
potential avalanche.
able, or of recruiting key people almost exclusively
4. Activists are considerably engaged, heavily invested from people with demographic characteristics
in people and processes, and eager to demonstrate similar to those of top management.
their support or opposition. They feel strongly, ei-
ther positively or negatively, about their leader and This list is illustrative, since almost any positive hu-
the organization and act accordingly. An activist man quality would contribute directly or indirectly to
might be enthusiastic about reaching company being an effective group member or follower. Another
goals, or so convinced that the company is doing way of framing the qualities of effective followers is to
the wrong thing that tthe activist blow the whistle say that such followers display the personal character-
(reports the company to an outside agency). The istics and qualities of leaders. Although leaders cannot
leader has to stay aware of whether the activist is be expected to change the personalities of group mem-
for or against the company. bers, they can take steps to encourage these qualities.
Interventions such as coaching, empowerment, sup-
5. Diehards are super-engaged to the point that they
portive communication, and frequent feedback would
are willing to go down for their own cause, or
support effective followership.
willing to oust the leader if they feel the leader is
headed in the wrong direction. Diehards can be an
asset or a liability to the leader. Diehards have an Collaboration Between Leaders
even stronger tendency to be whistleblowers than
and Followers
do activists. A diehard, for example, might take
it on their own to test the side effects of a weight A key role for followers is to collaborate with leaders
reduction food supplement sold by the company. in achieving organizational goals, as reflected in the
Leaders have to stay in touch with diehards to see emphasis on collaborative leadership. As described
if their energy is being pointed in the service of the twenty-five years ago by leadership guru Warren
organization. Bennis, the post-bureaucratic organization (a type
of organization that came after the bureaucratic era,
The categorization of followers just presented adds
such as team-based organizations) requires a new
a touch of realism to understanding the challenging
kind of alliance between leaders and the led. When
role of a leader. Not everybody in the group is super-
high-level leaders do not make all of the decisions
charged and eager to collaborate toward attaining or-
but solicit input from knowledgeable group members,
ganizational goals.
leaders and followers work together more closely.47
A related point here is that the new leader and the
Essential Qualities of Effective Followers led are close allies. Great leaders are made by great
As observed by Robert E. Kelley, effective followers groups; every organizational member needs to con-
share the following four essential qualities:46 tribute energy and talent to help leaders carry out their
roles successfully. We emphasize again that in the mod-
1. Self-management. The key to being a good fol- ern organization, leaders and followers often switch
lower is to think for oneself and to work well with- roles, such as a group member being assigned lead-
out close supervision. Effective group members ership responsibility for a group task. In the words of
see themselves as being as capable as their leaders. Petros G. Malakyan, “In reality, one cannot claim that
2. Commitment. Effective followers are committed he or she is a leader or a follower at all times and in all
to something beyond themselves, be it a cause, circumstances.”48
Followership: Being an Effective Group Member 19
Summary
Leadership is the ability to inspire confidence in Leadership positions often are satisfying because
and support among the people who are needed to they offer such things as power, prestige, the oppor-
achieve organizational goals. Leading is a major tunity to help others, high income, and the oppor-
part of a manager’s job, but a manager also plans, tunity to control resources. At other times, being a
organizes, and controls. Leadership is said to deal leader carries with it a number of frustrations, such
with change, inspiration, motivation, and influence. as facing a perform-or-perish mentality, insufficient
In contrast, management deals more with main- authority, having to deal with human problems, and
taining equilibrium and the status quo. Leadership too much organizational politics. The leader also has
is often regarded as a partnership or collaboration the difficult task of balancing workers’ need to be in-
between leaders and group members. dependent with their need to commit to a common
Many people attribute organizational perfor- purpose.
mance to leadership actions. Some research ev- The framework for understanding leadership
idence supports this widely accepted view. One presented here is based on the idea that the leader-
observation is that small business owners usually ship process is a function of the leader, group mem-
set the tone for their organizations. One study bers, and other situational variables. According to
showed that leadership actions can affect perfor- the model, leadership can best be understood by
mance, but only if the leader is perceived to be re- examining its key variables: leader characteristics
sponsible and inspirational. and traits, leader behavior and style, group mem-
Others argue that certain factors in the work en- ber characteristics, and the internal and external
vironment, called substitutes for leadership, make environment. Leadership effectiveness is depen-
the leader’s role almost superfluous. Among these dent on all three sets of variables. Another point of
factors are close-knit teams of highly trained work- the model is that leadership is multilevel, involving
ers, intrinsic satisfaction with work, and profes- the individual, the small group, and the organiza-
sional norms. Another anti-leadership argument is tion. The society and culture might also need to be
that leaders often face circumstances that strongly taken into account. Two implications of the model
limit their ability to influence organizational per- are that context influences leadership at any given
formance. One such factor is unpredictable and moment and that leadership is a process with intra-
uncontrollable changes in technology, social trends, personal and interpersonal mechanisms.
and other environmental forces. Leadership skills can be developed by following
Examining the roles carried out by leaders con- a general learning model that involves acquiring
tributes to an understanding of the leadership func- conceptual knowledge, reading examples, doing ex-
tion. Eleven such leadership roles are the figurehead, periential exercises, obtaining feedback, and prac-
spokesperson, negotiator, coach and motivator, team ticing in natural settings.
builder, team player, inclusion facilitator, technical A major challenge facing leaders is that followers
problem solver, entrepreneur, strategy developer, and differ substantially in characteristics, including level
executor. An important implication of these roles is of engagement, from feeling and doing nothing to to-
that managers at every level can exert leadership. tal passion, commitment, and involvement. To be an
The presence of leadership roles suggests that effective leader, one needs good followers with char-
leadership activities have some clarity. Yet because acteristics such as self-management, commitment,
of uncertainty and rapid changes in the workplace, competence and focus, and courage. A key role for
the ability to tolerate and even profit from ambiguity followers is to collaborate with leaders in achieving
has gained in importance as a trait and behavior of organizational goals. The post-bureaucratic organi-
leaders. Furthermore, the complexity of problems in zation requires a new kind of alliance between lead-
the workplace often makes clear-cut answers elusive. ers and the led.
Key Terms
leadership 2 substitutes for leadership 5 leadership effectiveness 14
emergent leaders 3 tolerating ambiguity 9
Guidelines for Action and Skill Development
Vast amounts of information have been gathered you face. For example, if you are leading a team,
about leaders and leadership, and many different review the information about team leadership. Typ-
leadership theories have been developed. Many ically, an effective leader needs to combine several
leadership research findings and theories are con- leadership approaches to meet the demands of a
fusing and contradictory. Nevertheless, from this given situation. For instance, a leader might need
thicket of information emerge many useful leader- to combine creative problem solving and emotional
ship concepts and techniques to guide you toward support to members to help the team rebound from
becoming a more effective leader. a crisis.
As you work toward leadership effectiveness, The eclectic (choosing from among many) ap-
first be familiar with the approaches to leadership proach we recommend is likely to be more effective
described in this text. Then choose the formula- than accepting an idea such as “there are six secrets
tion that seems best to fit the leadership situation to leadership success.”
Discussion Questions and Activities

1. Why bother studying leadership when fields such 6. Why might experience in managing entry-level
as data science and physician assistant pay high workers, such as in a fast-food restaurant, be valu-
starting salaries? able leadership experience?
2. Give an example of how you have exerted leader- 7. If so much useful information is available about
ship on or off the job in a situation in which you leadership, why do we still find so many managers
did not have a formal leadership position. Explain who cannot gain the respect of their subordinates?
why you describe your activity as leadership. 8. In 2021, a skyscraper-long container boat was
3. What would a boss of yours have to do to demon- wedged in the Suez Canal, and 10 percent of the
strate that the boss is an effective leader and an ef- world’s freight was on hold. Explain whether you
fective manager? think leadership at the shipping company was fac-
4. Identify a business or sports leader whom you ing ambiguity in terms of resolving the problem of
think is highly effective and explain why you think the stuck vessel.
that person is highly effective. 9. Which one or two of the eleven leadership roles
5. Many people who were voted “the most likely to described in this chapter do you think require the
succeed” in their high school yearbooks become highest level of skill? Why?
leaders later on in their career. How can you ex- 10. In what way might being an effective follower help
plain this finding? prepare a person for becoming an effective leader?
Leadership Case Problem A
Hailey Wants to Make a Difference house the cartridges. Hailey has an undergradu-
Hailey was recently promoted to the position of ate degree in industrial engineering and an MBA.
production manager in the manufacturing plant She aspires toward eventually holding a high-
of a company that makes desktop printers for level leadership position in manufacturing or
commercial and home use. Her department is operations. Hailey therefore considers her pro-
responsible for producing the printer drums that motion to production manager to be a building
continued on following page
Leadership Case Problem A 21
continued from previous page
block in her career. She says, “Our country be- want to talk. We need to find a pipeline of new
came great by building things. That’s why I love blood for our basic production jobs.”
manufacturing. Here’s my chance at age 26 to Hailey spoke with Barney, a production tech-
make a difference as a manufacturing leader.” nician with twenty-five years of experience, about
Having worked as an industrial engineer for what changes he thought a department leader
two years at the plant, Hailey understands the should bring about. Barney replied, “Not much,
technology behind printer drums, as well as the Hailey. I know that you are well educated and very
manufacturing process. During her first week in smart, but don’t worry much about changes right
her new assignment, Hailey spent a lot of time now. The other guys and gals in the department
talking with her two supervisors and many pro- and I are all happy that our jobs have not been
duction technicians. She was particularly looking shipped to another country. We also like the idea
for ways in which she could provide leadership to that we have not been replaced by robots so far.”
the group. Hailey was particularly interested in the
Hailey asked Jud, an experienced supervisor, comments of Gloria, another production techni-
what changes needed to be made in the function- cian, who said, “I am a little worried about the
ing of the department. Jud replied, “Right now future of our department. We are making printer
things are going well. Despite the worldwide de- drums, but how long can this last? Maybe you
cline in the number of desktop computers pur- as the leader can find another product for us
chased, we have a nice steady demand for new to make that will keep us going at least until I
drums. The office-supply stores still sell a lot of retire.”
replacement drums for existing printers. I notice Hailey reflected, “I have been collecting a lot
too that morale is okay in my department. Just of information. But what do I do with the in-
keep the year-end raises and bonuses flowing formation? As the department leader, how can I
(said with a laugh).” make a difference now and in the near future?”
Hailey asked Jenna, a supervisor with five
years of experience, the same question. Jenna
Questions
said, “I think the biggest problem we face is not
having enough new, qualified production techni- 1. Advise Hailey on where she should get started
cians. Maybe making drums is hum-drum, but in making a difference as a leader in the
you need skill to do the job right. These days, drum-manufacturing department.
most young people don’t want to make things. 2. To what extent do you think it is advisable
They just want to stay glued to their mobile de- for Hailey to interview workers in the depart-
vices. Also, a lot of the people we recruit for en- ment to get some input as to what she should
try-level jobs can’t do much math, and they don’t do as their leader?
Associated Role Play

One student plays the role of Hailey who decides Jenna seems focused on the issue of recruiting the
to meet with Jud and Jenna to discuss a few ex- right type of workers. Hailey may have to be per-
citing leadership initiatives she has planned. Two suasive today to sell her initiatives. Feedback from
other students play the role of Jud and Jenna. Jud other class members about Hailey’s success today is
is a little skeptical of changes being made, and welcomed.
Leadership Case Problem B
Business Owner Carlos Attempts to Deal and part-time. I spend so much time with sup-
with Uncertainty pliers, advertisers, and accountants that some-
Forty-one-year-old Carlos is proud of his accom- times I don’t feel like I’m operating a restaurant.
plishments as a business owner and leader. He Yet at the same time, I want Sabroso to grow,
left his position as the restaurant manager at and perhaps expand to other parts of Tennessee
a large hotel in Knoxville, Tennessee six years and perhaps other states.”
ago to open a Mexican restaurant. Carlos is a Wanda responded, “Carlos, you are at your
Knoxville resident, so he thought by locating the best as a coach and player at the same time. You
restaurant in that city it would be easier for him adore getting personally involved with the team.
to establish a customer base that would include Yet,” she added with a smile, “I know you also
friends, family members, and work associates. want to be a restaurant tycoon.”
Carlos’s networks also included contacts he had Two weeks later, Carlos faced another big de-
made as a community leader. His leadership ac- cision. A large restaurant chain based in Atlanta
tivity involved heading a community task force to had been following the success of Sabroso, and
help reduce street crime including home break- leadership at the chain decided they wanted to
ins and carjacking. purchase Sabroso. The offer the representative of
Carlos named his restaurant Sabroso (the the chain made was to purchase the four restau-
Spanish word for tasty). He located Sabroso rants and the rights to the name for $1.5 million.
in a section of Knoxville that had no Mexican Carlos would then become the division head of
restaurant other than Taco Bell. Sabroso was an Sabroso with a starting salary of $75,000 per year.
immediate success, and quickly had seven full- Carlos was now in a state of confusion. He
time employees and ten part-time employees. thought, “Here is an offer that seems too good to
Carlos had a warm, friendly approach to his team turn down. Yet, if I accept the offer I will be a cor-
member and customers. Carlos then opened an- porate manager and a less influential leader than
other Sabroso, which in turn was also success- I am now. Yet if Sabroso should flop in the future
ful. Within three more years, Carlos opened two under my leadership, I will have done a disser-
more Sabrosos, giving him ownership of four vice to myself and my family. I just don’t know
profitable restaurants. what to do right now.”
The January following opening his fourth
restaurant, Carlos was pondering what to do next Questions
with the successful business he had grown. In 1. What ambiguity is Carlos facing as a leader?
discussing his dilemma with his operations man- 2. What steps should Carlos take to resolve his
ager, Wanda, Carlos said, “I’m reaching the limits dilemma?
of what I can do to be a leader who spends a lit- 3. What recommendations can you offer Carlos
tle time with all of the team members. We now with respect to accepting the offer from the
have close to 100 team members both full-time restaurant chain?

Carlos decides again to discuss his dilemma with two weeks, so he can return to his role as a strong
his operations manager Wanda, feeling that he is leader. Another person plays the role of Wanda who
facing too much ambiguity to deal with the offer on is a sympathetic listener but may also have some ad-
his own. One student plays the role of Carlos who vice to offer Carlos.
feels that he wants to resolve his dilemma within
Notes 23
Notes
1. Original story based on facts and observa- Selective Utilization of Leader and Team Exper-
tions in the following sources: Heather Haddon. tise Within Networks,” The Leadership Quarterly,
“Walgreens Names Brewer Chief, Only Black Fe- December 2009, pp. 933–958.
male CEO of Big Firm,” The Wall Street Journal, 10. Cited in Christopher Hann, “We’re All in This
January 27, 2021, p. B2; Sharon Terlep, Heather Together,” Entrepreneur, March 2013, pp. 157–158.
Haddon and Sarah Nassauer, “Brewer, Walgreens’ 11. Gesche Drescher and Yvonne Garbers, “Shared
New Chief, Has Made Diversity a Priority,” The Leadership: A Policy-Capturing Study,” The
Wall Street Journal, January 28, 2021, pp. B1, B2; Leadership Quarterly, April 2016, pp. 200–217.
“Starbucks Exec and Amazon Director Rosalind 12. Herminia Ibarra and Morten T. Hansen, “Are You
Brewer Brings Digital Prowess to CEO Role at a Collaborative Leader?” Harvard Business Review,
Walgreens,” msn money (www.msn.com), April 1, July–August 2011, p. 71.
2021, pp. 1–5; Lauren Hirsch, “Walgreens Picks 13. Gail T. Fairhurst and Mary Uhl-Bien, “Organiza-
a Starbucks Executive to Be Its C.E.O.” The New tional Discourse Analysis (ODA): Examining Lead-
York Times (www.nytimes.com), January 27, 2021, ership as a Relational Process,” The Leadership
pp. 1–3; Chauncey Alcorn, “Rosalind Brewer Offi- Quarterly, December 2012, pp. 1043–1062.
cially Takes the Help At Walgreens, Becoming the 14. Quoted in Walter Isaacson, “The Real Leadership
Only Black Woman Fortune 500 CEO,” www.cnn Lessons of Steve Jobs,” Harvard Business Review,
.com, March 15, 2021, pp. 1–6; Mayr Mitchell, April 2012, p. 100.
“Rosalind Brewer, the Newly Minted Walgreens 15. John O’Leary, “Do Managers and Leaders Really
CEO, is Someone You Should Know,” Chicago Sun Do Different Things?” Harvard Business Review
Times (https://chicago.suntimes.com), January 27, (https://hbr.org), June 26, 2016, pp. 1–5.
2021, pp. 1–5. 16. Henry Mintzberg, Managing (San Francisco:
2. W. Kan Kim and Rene A. Maubourgne, “Parables Berrett-Koehler Publishers, 2009), p. 8.
of Leadership,” Harvard Business Review, July– 17. Diya Gullapalli, “GMO Taps 1st CEO in 32-Year
August 1992, p. 123. History,” The Wall Street Journal, February 13,
3. Ron Ashkenas and Brook Manville, “The Fun- 2009, p. C9.
damentals of Leadership Still Haven’t Changed, 18. Daniel Newark, “Leadership and the Logic of Ab-
Harvard Business Review (https://hbr.org), surdity,” Academy of Management Review, April
November 7, 2018, p. 2. 2018, p. 198.
4. Derived from a literature review in Bernard M. 19. “The Impact of Leadership on Organizational
Bass (with Ruth Bass), The Bass Handbook of Performance,” Clarionttech (https://smallbusiness
Leadership: Theory, Research, and Managerial Appli- .chron.com, August 5, 2019, p. 1.)
cations, Fourth Edition (New York: The Free Press, 20. Duke University Executive Leadership Survey, Cen-
2008), pp. 15–23. ter on Leadership & Ethics, March 2009, pp. 1–17.
5. Marion B. Eberly, Michael D. Johnson, Morela 21. Robert B. Kaiser, Robert Hogan, and S. Bar-
Hernandez, and Bruce J. Avolio, “An Integrative tholomew Craig, “Leadership and the Fate of Orga-
Process Model of Leadership: Examining Loci, nizations,” American Psychologist, February–March
Mechanisms, and Event Cycles,” American Psychol- 2008, p. 103.
ogist, September 2013, p. 439. 22. Julian Barling, The Science of Leadership: Lessons
6. James Kelly and Scott Nadler, “Leading from from Research for Organizational Leaders (New
Below,” The Wall Street Journal, March 3–4, 2007, York: Oxford University Press, 2014), pp. 37–41.
p. R4. 23. Adam M. Grant, “Leading with Meaning: Benefi-
7. Agata Nowakawska, “The Demise of the ‘Hero ciary Contact, Prosocial Impact, and the Perfor-
Leader’: Six Truths about Leadership in the Digital mance Effects of Transformational Leadership,”
Age,” Training Journal (www.training journal.com), Academy of Management Journal, April 2012,
August 3, 2020, p. 2. pp. 458–476.
8. Sankalp Chaturvedi, Michael J. Zyphur, Rich- 24. Jon P. Howell, David E. Bowen, Peter W. Dorfman,
ard D. Arvey, Bruce J. Avolio, and Gerry Larsson, Steven Kerr, and Philip Podaskoff, “Substitutes for
“The Heritability of Emergent Leadership: Age Leadership: Effective Alternatives to Ineffective
and Gender as Moderating Factors,” Leadership Leadership,” Organizational Dynamics, Summer
Quarterly, April 2012, p. 219. 1990, p. 23.
9. Tamara L. Friedrich, et al., “A Framework for 25. Thomas H. Hout, “Are Managers Obsolete?”
Understanding Collective Leadership: The Harvard Business Review, March–April 1999,
pp. 161–162. (Books in Review); John E. Masthieu, 36. Two examples are Marion B. Eberly, Michael D.
Michael Kukenberger, Lauren D’Innocenzo, Johnson, Morela Hernandez, and Bruce J. Avolio,
and Greg Reilly, “Modeling Reciprocal Team “An Integrative Process Model of Leadership: Ex-
Cohesion-Performance Relationships, as Impacted amining Loci, Mechanisms, and Event Cycles,”
by Shared Leadership and Members’ Competence,” American Psychologist, September 2013, pp. 427–
Journal of Applied Psychology, May 2015, pp. 713–734. 443; Francis Yammarino, Fred Dansereau, and
26. Newark, “Leadership and the Logic of Absurdity,” Christina J. Kennedy, “A Multiple-Level Multidi-
p. 198. mensional Approach to Leadership: Viewing Lead-
27. J. Richard Hackman and Ruth Wageman, “Asking ership Through an Elephant’s Eye,” Organizational
the Right Questions About Leadership,” American Dynamics, Winter 2001, pp. 149–162.
Psychologist, January 2007, p. 43. 37. Francis J. Yammarino and Fred Dansereau, “Multi-
28. Updated and expanded from Henry Mintzberg, The Level Nature of and Multi-Level Approaches to
Nature of Managerial Work (New York: Harper & Leadership,” The Leadership Quarterly, April 2008,
Row, 1973); Kenneth Graham Jr. and William M. p. 136.
Mihal, The CMD Managerial Job Analysis Inventory 38. Eberly, Johnson, Hernandez, and Avolio, “An Inte-
(Rochester, NY: Rochester Institute of Technol- grative Process Model of Leadership,” pp. 436–438.
ogy, Center for Management Development, 1987), 39. Ronnie Ann, “Why Do Entry-Level Jobs Require
pp. 132–133; Mary Jo Hatch, Monika Kostera, and Leadership Skills?” CAREER NOOK, May 2016,
Andrzej K. Koz´min´ski, “The Three Faces of Lead- pp. 1–12; Reem Boudraa, “Are Your Skill Sets in
ership: Manager, Artist, Priest,” Organizational Dy- Demand and What You Can Do About It,” http://blog
namics, vol. 35, no. 1, 2006, pp. 49–68; Dave Ulrich, .bayt.com, August 22, 2013. pp. 1–4.
Norm Smallwood, and Kate Sweetman, The Lead- 40. Research cited in Sue Shellenbarger, “Leader? No, Be
ership Code: Five Rules to Lead By (Boston: Harvard a Follower,” The Wall Street Journal, September 30,
Business Press, 2008); Juliet Bourke and Andrea 2015, p. D1.
Espedido, “The Key to Inclusive Leadership,” Har- 41. Hackman and Wageman, “Asking the Right Ques-
vard Business Review (https://hbr.org), March 6, tions,” p. 45.
2020, pp. 1–5. 42. Nancy Lublin, “Let’s Hear It for the Little Guys,”
29. Christopher A. Bartlett and Sumantra Ghosal, Fast Company, April 2010, p. 33.
“Changing the Role of Top Management Beyond 43. Shellenbarger, “Leader? No, Be a Follower,” p. D1.
Systems to People,” Harvard Business Review, June 44. Barbara Kellerman, “What Every Leader Needs to
2002, pp. 132–133. Know About Followers,” Harvard Business Review,
30. Adapted from “Tolerance of Ambiguity: Measuring December 2007, pp. 84–91.
this Life-Long Skill,” URM Online News (https:// 45. “The Power of ‘Active Followers,’ from Mission
r.umn.edu), May 4, 2015, p. 1. Control to Mountain Climbing,” Knowledge@Whar-
31. Adam Gale, “Managing Uncertainty: A Post-Brexit ton, http://knowledge. wharton.upenn.edu, July 3,
Guide for Leaders,” Management Today (www 2012, pp. 1–3.
.managementtoday.co.uk) December 2016, p. 1. 46. Robert E. Kelley, “In Praise of Followers,” Har-
32. Cited in Justin Fox, “Employees First!” Time, vard Business Review, November–December 1988,
July 7, 2008, p. 45; Phil Wahba, “Why Container pp. 142–148.
Store’s Found Is Quitting CEO Job,” Fortune.com, 47. Warren Bennis, “The End of Leadership: Exem-
May 9, 2016, pp. 1–3. plary Leadership Is Impossible Without Full Inclu-
33. Emily Thornton, “Perform or Perish,” Business- sion, Initiatives, and Cooperation of Followers,”
Week, November 5, 2007, p. 40. Organizational Dynamics, Summer 1999, pp. 76–78.
34. Thomas A. Stewart, “The Nine Dilemmas Leaders (This statement has become increasingly true over
Face,” Fortune, March 18, 1996, pp. 112–113. the years.)
35. Leslie Kwoh, “When the CEO Burns Out: Job 48. Petros G. Malakyan, “Followership in Leadership
Fatigue Catches Up to Some Executive Amid Studies: A Case of Leader-Follower Trade Ap-
Mounting Expectations; No More Forced Smiles,” proach,” Journal of Leadership Studies, no. 4, 2014,
The Wall Street Journal, May 8, 2013. The study p. 17.
mentioned is cited in this source.
2
Chapter
Traits, Motives, and

Characteristics of Leaders
Learning Objectives
After studying this chapter and doing the exercises, you 2.4 Describe cognitive factors associated with leadership
should be able to effectiveness.
2.1 Identify general and task-related traits that contribute to 2.5 Analyze the heredity versus environment issue in relation
leadership effectiveness. to leadership effectiveness.
2.2 Describe how emotional intelligence contributes to 2.6 Enumerate the strengths and weaknesses of the trait
leadership effectiveness. approach to leadership.
2.3 Identify key motives that contribute to leadership
effectiveness.
Chapter Outline
Personality Traits of Effective Leaders Creativity

General Personality Traits Insight into People and Situations
Task-Related Personality Traits Farsightedness and Conceptual Thinking
Leadership Motives The Influence of Heredity and Environment on Leadership
The Motivation to Lead The Strengths and Limitations of the Trait Approach
The Power Motive Summary
The Drive and Achievement Motive Key Terms
Tenacity and Resilience Guidelines for Actions and Skill Developments
Cognitive Factors and Leadership Leadership Case Problem A
Cognitive (or Analytical) Intelligence Leadership Case Problem B
Knowledge of the Business or Group Task Notes
S
elim Bassoul, was CEO of the kitchen supply maker of growth through acquisition, with a focus on acquiring inno-
Middleby Corporation for more than eighteen years. vative technology. Middleby became a pioneer in producing
He joined the company in 1996 as president of the energy-saving cooking equipment. Under Bassoul’s leader-
Southbend division. He was promoted to chief operating of- ship, Middleby acquired more than seventy other brands, in-
ficer (COO) of Middleby in 1999, and one year later was ap- tegrated these complementary businesses, and ratcheted up
pointed as CEO. Bassoul pioneered the company’s strategy their profitability.
25
26 Chapter 2 Traits, Motives, and Characteristics of Leaders
As the CEO, Bassoul embraced the practice of hiring he wanted to give people hope that there is an alternative way
the family and friends of employees to build a stronger com- of managing, and that someone like him can be successful and
munity. As a result, turnover was reduced to a remarkably low accepted.
2 percent. Bassoul said, “I am the custodian of the culture and When asked how he gets key information if he does not
the environment. I can drive it to be ugly, or to be good.” read emails or memos, Bassoul says he gets information di-
When Bassoul left the company, Middleby made and sold rectly from people. He would go out into the factory, or visit a
85 brands under three broad categories: commercial food ser- customer and make observations of his own. Because he made
vice equipment, food processing and bakery equipment, and very little use of email, he would receive more phone calls.
residential kitchen appliances. Annual revenues were approxi- After retiring from his position as CEO and chairman of
mately $7 billion. the board in 2019, Bassoul continued his leadership career as
While CEO at Middleby, Bassoul minimized the use of the head of the Bassoul Dignity Foundation. As a young boy,
email, attended limited meetings, and did not use Facebook his family experienced the ravages of the civil war in Lebanon,
or LinkedIn. A major reason is that he has dyslexia and atten- including his family becoming homeless. Bassoul said that ex-
tion deficit hyperactivity disorder (ADHD). Neither condition perience can trigger a loss of a sense of hope and dignity. He
was diagnosed during his childhood in Lebanon. Bassoul says explains this is why he has always felt compelled to help refu-
that avoiding distractions such as email helped him avoid get- gees, the homeless, and displaced people. This type of help is
ting bogged down in in the details of leading a company with one of the major works of the Dignity Foundation.
7,500 employees. The time he saved from minimizing getting The foundation provides vocational training and ba-
involved with emails freed up several hours a week to visit with sic cooking equipment to refugees and displaced persons
company personnel and customers, as well as helping to lead around the world. Two other target groups are mothers strug-
the Bassoul Dignity Foundation (see below). gling to earn a living, and former inmates with minor offenses.
In describing how dyslexia and ADHD affects his leader- In December 2000, when Bassoul was named CEO of the
ship style, Bassoul says that dyslexia forced him to think con- Middleby Corporation, his aunt, Mother Yvonne Bassoul, a
ceptually because he is not good with details. Rather, he takes Catholic nun, congratulated him one his new role, and reminded
in the big picture. He says that as a dyslexic you must rely on him to “lead with compassion and integrity.”
others to for help with details and tactical tasks. Selecting a Bassoul graduated with a Bachelor of Arts degree from the
strong team around you becomes essential. Bassoul explains American University of Beirut, and then moved to the United
that ADHD makes him restless, which can be a huge motivator States to obtain an MBA from the Kellogg School of Manage-
for action. As a leader, it forced him to get out of the office and ment at Northwestern University, with a major in finance and
into the field. While still at Middleby Corporation Bassoul said marketing.1
The vignette just presented describes a highly placed The trait-based perspective on leadership has
leader who has several of the leadership traits discussed reemerged in recent years after having fallen out of
in this chapter, particularly the ability to think con- favor for decades. A group of researchers analyzed
ceptually (see the big picture), knowledge of the busi- the results of many syntheses of studies about leader-
ness, as well as showing courage and perseverance. The ship effectiveness. The traits groupings covered were
story also demonstrates that it is helpful to adapt your personality and intelligence, and the leadership effec-
approach to leadership to your personal characteristics. tiveness criteria included group performance and
When people evaluate managers in terms of their satisfaction with the leaders. The behaviors studied
leadership effectiveness, they often scrutinize the man- included factors such as providing structure to subor-
agers’ traits and personal characteristics. Instead of dinates and being considerate. A major conclusion for
focusing only on the results the managers achieve, this study of many studies is that traits and behaviors
those making the evaluation assign considerable weight combined explain a minimum of 31 percent of leader-
to the manager’s attributes, such as adherence to high ship effectiveness, with behaviors accounting for even
standards. more of the differences.2
Personality Traits of Effective Leaders 27
The trait-based perspective also acknowledges that

the situation often influences which trait to emphasize, Personality Traits of Effective Leaders
such as a supervisor of highly technical workers need-
ing to emphasize problem-solving ability. In contrast, a
supervisor of workers performing nontechnical, repet- Learning Objective 2.1 Identify general and task-related
traits that contribute to leadership effectiveness.
itive work might need to emphasize enthusiasm as a
motivator.
Personality traits contribute to leadership effectiveness
This chapter and the following chapter concen-
in many situations, as long as the leader’s style fits the
trate on personal characteristics. Chapter 4 describes
situation reasonably well. For example, an executive
the behaviors and skills that contribute to leadership
might perform admirably as a leader in several different
effectiveness. Recognize, however, the close association
high-technology companies with different organizational
between personal characteristics and leadership skills
cultures. However, their intellectual style might make
and behaviors. For example, creative thinking ability
them a poor fit with production workers. Leaders’ per-
(a characteristic) helps a leader formulate an excit-
sonality traits can be divided into two groups: general
ing vision (leadership behavior). The combination of
personality traits such as self-confidence and trustworthi-
traits and behaviors helps to explain why leaders show
ness, and task-related traits, such as proactivity.
individual differences in effectiveness. 3 For example,
a leader who is highly intelligent, trustworthy, and
passionate about the mission of the group is likely to General Personality Traits
achieve more success than their counterpart who has A general personality trait is observable both within
average intelligence, is untrustworthy, and is indiffer- and outside the context of work. The implication is that
ent about what work the group is performing. the same general traits are related to success and satis-
Characteristics associated with leadership can be faction in both work and personal life. Figure 2-1 lists
classified into three broad categories: personality traits, the general personality traits that contribute to suc-
motives, and cognitive factors. These categories serve cessful leadership.
as helpful guides, but they are not definitive categories.
Nevertheless, no matter how personal characteristics Self-Confidence
are classified, they point toward the conclusion that Self-confidence improves one’s performance in a
effective leaders are made of the right stuff. variety of tasks including leadership. 4 A leader who
Core self-
Self-confidence Humility
evaluations
The Likeability factor Trustworthiness
LEADERSHIP
EFFECTIVENESS
IN MANY
SITUATIONS
Sense of humor Authenticity
Enthusiasm,
optimism, and Assertiveness Extraversion
warmth
Figure 2-1 General Personality Traits of Effective Leaders.
is self-assured without being bombastic or over- A leader, upon receiving a compliment for an accom-
bearing instills self-confidence in team members. A plishment, may explain that the group deserves the
self-confident team leader of a group facing a seem- credit (a standard practice). A major characteristic of
ingly impossible deadline might tell the group, “We a humble leader is an eagerness to learn. Humble peo-
are understaffed and overworked, but I know we can ple understand the limits of their own knowledge, and
get this project done on time. I’ve been through tough are therefore eager to learn, or acquire new knowl-
demands like this before. If we work like a true team, edge. This trait has also been referred to as intellec-
we can pull it off.” tual humility. People with this attribute exhibit these
Self-confidence was among the first leadership behaviors:
traits researchers identified, and it still receives con-
• Acknowledge the limits of their own knowledge
siderable attention as a major contributor to leader-
ship effectiveness. As explained by executive coach
● Listen carefully to new ideas and criticisms
Sally Ward, “Want to be seen as a leader? Confidence ● Show willingness to assess new sources of evidence
is the underpinning. Those who have it are more ● Are receptive to acquiring new skills
sought after, more trusted, more promoted, more ● Engage in constructive discourse8
influential.” 5 In addition to being self-confident,
the leader must project that self-confidence to the A person’s fundamental view of intelligence can
group. The leader may do so by using unequivocal hinder the person’s eagerness to learn, or intellectual
wording, and making appropriate gestures such humility. The long-term research of Stanford psycholo-
as pointing an index finger outward. Standing up gist Carol Dweck indicates there are two types of mind-
straight helps a leader come across as command- sets. People with a fixed mindset believe that everyone
ing, whereas slouching and looking down at your is born with a certain level of intelligence, and because
feet has the opposite effect. Taking long strides, of this reality, there is little point in trying to improve
and walking with the chest held high, also projects your problem-solving ability. They tend to believe that
self-confidence. their talents are innate gifts. A person with a fixed
Self-confidence is not only a personality trait. It mindset and who is highly intelligent, might be arro-
also refers to a behavior and an interpersonal skill that gant, and think that they do not need to acquire new
a person exhibits in a number of situations. It is akin knowledge.
to being cool under pressure. We can conclude that a People with a growth mindset view intelligence as
person is a self-confident leader when that individual something more malleable, like a muscle that can be
maintains composure while dealing with a crisis, such strengthened. A person with a growth mindset is there-
as while managing a large product recall. fore eager to learn, and has a humble view of their own
The interpersonal skill comes into play in being able intelligence.9 The person believes that it is possible to
to keep others calm during turmoil. In speaking about develop their talents through hard work, good strate-
the suitability of job candidates who were recently mili- gies, and input from others.
tary officers, Noel Tichy, director of the Global Business The leader who is eager to learn will express doubt
Partnership at the University of Michigan said, “There’s that they have the best solution to a problem, and will
a big pool of these officers who had had the kind of therefore be willing to learn from others.10 Ashley, the
under-fire judgment experience that makes them really company HR manager, might tell the other members
valuable.”6 of the top-management team that she thinks an effec-
tive way of attracting top talent to the firm would be
Humility to offer a remote-work option of two days per week.
Although self-confidence is a key leadership trait, Thinking that her idea is sound, and based on the
so is humility, or being humble at the right times. experience of other companies, Ashley still is humble
From a broad perspective, humility is defined as enough to have some doubts. As a result, she says to
(a) self-awareness, (b) appreciating the strength and the other managers, “What is your opinion of the two
contributions of others, and (c) openness to ideas days of remote work option to attract talent? I wel-
and feedback regarding one’s performance. As a con- come your input.”
sequence of this meaning of humility, humble leaders Considerable research suggests that leader humility
have a better comprehension of organizational needs is beneficial for group members, teams, and organiza-
and make more informed decisions about the perfor- tions.11 Yet when the leader pushes humility to the point
mance of tasks.7 of lacking decisiveness and backing away for exercising
Part of humility is admitting that you do not know authority, humility is a liability.
everything and cannot do everything, as well as admit- Leadership Self-Assessment Quiz 2-1 gives you an
ting your mistakes to team members and outsiders. opportunity to think about your level of humility.
Self-Evaluation of My Humility
Humble people, of course, find it difficult to perceive themselves as being humble. Nevertheless, taking this self-quiz will help
sensitize you to aspects of your own behavior and attitudes that could reflect your level of humility. Because the results of this quiz
are not being used for somebody else to judge your level of humility, there is no point in attempting to create a positive impression.
Statement Related to Humility Mostly Agree Mostly Disagree

1. Almost everybody who knows me well thinks that I have excep-
tional interpersonal skills.
2. I carefully listen to other people without finishing their sen-
tences for them.
3. I enjoy listening to other people describe their accomplishments.
4. When things go wrong, I look first to blame other people.
5. It annoys me when other people give me advice on the job.
6. I rarely applaud other people’s accomplishments.
7. I usually laugh louder than other people at my own jokes.

8. It annoys me when others on the job do not say positive things
about my accomplishments.
9. I have a strong desire to learn and improve.
10. With few exceptions, I am the smartest person in the room.
11. I get very upset whenever I am in conflict with other people.
12. I am willing to admit my mistakes and limitations.

13. I tend to ignore information that might require me to change
my plans.
14. I would lose respect if I admitted my limitations to others.
15. I deserve a lot of respect from other people.
16. I have much more talent than most of my coworkers.
17. I have many more useful skills than most of my coworkers.
18. I welcome feedback on my performance.
19. I welcome feedback on my job-related behavior.
20. I am willing to learn from others.
21. I admit when I do not know how do something,

22. Unless another person is an established expert in his or field, I
do not take that person’s advice seriously.
23. It is difficult for a person with talent like mine to be humble.
24. I pay careful attention to the strengths of other people.
25. I brag about myself a lot on social media.
Scoring and Interpretation: Score yourself one point for each of the following questions you answered “Mostly Agree”: 2, 3,
9, 12, 18, 19, 20, 21, and 24. Score yourself one point for each of the following questions you answered “Mostly Disagree”:
1, 4, 5, 6, 7, 8, 10, 11, 13, 14, 15, 16, 17, 22, 23, and 25. If you scored 20 points or higher your self-evaluation suggests
(continued)
Leadership Self-Assesment
Leadership Self-AssessmentQuiz
Quiz5-3
2-1 (continued)
that you have an appropriate degree of humility to facilitate your leadership and professional effectiveness. If you scored be-
tween 6 and 19 points, you might need to practice more humility to facilitate your leadership and professional effectiveness.
If you scored 5 or less points, you might be projecting an image of a person so humble and lacking in self-confidence that it
detracts from your leadership and professional effectiveness,
Sources: A few of the ideas for the statements in this quiz are based on the following sources: Arménio Rego, Miguel Pina E Cunha, and
Ace Volkmann Simpson, “The Perceived Impact of Humility on Team Effectiveness: An Empirical Study,” Journal of Business Ethics,
March 2008, pp. 205–218; Bradley P. Owens, Michael D. Johnson, and Terence B. Mitchell, “Expressed Humility in Organizations:
Organization Science, September- October 2013, pp. 1317–1338.
Core Self-Evaluations • Make your behavior consistent with your inten-

Self-confidence is one way of looking at the self that con- tions. Practice what you preach, and set the exam-
tributes to leadership effectiveness. Extensive research ple. Let others know of your intentions and invite
suggests that a set of four other related self-perceptions feedback on how well you are achieving them.
also contributes to leadership effectiveness. Core ● When your organization or organizational unit en-
self-evaluations is a broad personality trait that cap- counters a problem, move into a problem-solving
tures bottom-line self-assessment that is composed of mode instead of looking to blame others for what
self-esteem, locus of control, generalized self-efficacy, went wrong.
and emotional stability. All four traits are positively ● Honor confidences. One incident of passing along
related to each other. Self-esteem deals with feeling pos- confidential information results in a permanent
itive toward the self, and generalized self-efficacy means loss of trust by the person whose confidence was
roughly the same thing as being self-confident in many violated.
situations. Locus of control refers to whether a person
● Maintain a high level of integrity. Build a reputation
feels personally responsible for events happening to
for doing what you think is morally right in spite of
them, helping the leader deliver a take-charge attitude.
the political consequences.
Emotional stability refers to having emotional control,
not being neurotic, and having good mental health. ● Listen with compassion and attentiveness when
A leader with positive core evaluations is more likely interacting with others. Appear attentive by your
to make decisions more rapidly and pursue initiatives body language such as maintaining eye contact,
to implement the decisions. Such a leader will feel con- moving toward the person, and put away electronic
fident, be steady under pressure, and believe that the interrupters such as a smartphone.
external environment can be controlled to some extent.12 ● Tell the truth in ways people can verify. It is much
easier to be consistent when you do not have to keep
Trustworthiness patching up your story to conform to an earlier lie.
Evidence and opinion continue to mount that being An example of verification would be for a group
trustworthy and/or honest contributes to leadership member to see if the manager really did attempt to
effectiveness. An effective leader or manager is supposed buy new conference room furniture as promised.
to walk the talk, thereby showing a consistency between ● Admit mistakes. Covering up a mistake, particularly
deeds (walking) and words (talk). In this context, trust is when everybody knows that you did it, destroys
defined as a person’s confidence in another individual’s trust quickly.
intentions and motives and in the sincerity of that indi- ● Make trust pay in terms of receiving rewards. Trust
vidual’s word.13 Leaders must be trustworthy, and they
needs to be seen as a way of gaining advantage.
must also trust group members. Trust is closely related to
transparency, in which organizational leadership is open
● Making eye contact is a basic gesture that most peo-
rather than secretive about activities that affect the wel- ple associate with trust.
fare of stakeholders. Given that many people distrust top- ● Trust begets trust. When the leader shows trust in
level business leaders, as well as political leaders, gaining employees, the employees will trust the leader in
and maintaining trust is a substantial challenge. The fol- return. Among the ways in which the leader can
lowing trust builders are worthy of a prospective leader’s demonstrate trust is to delegate key tasks, share in-
attention and implementation:14 formation, and invest in employee development.
It takes a leader a long time to build trust, yet one To become an authentic leader and demonstrate
brief incident of untrustworthy behavior can perma- authenticity, be yourself rather than attempting to
nently destroy it. Leaders are usually allowed a fair be a replica of someone else. Others respond to your
share of honest mistakes. In contrast, dishonest mis- leadership, partly because you are genuine rather than
takes quickly erode leadership effectiveness. phony. The authentic leader can emphasize different
When a leader is perceived as trustworthy, the orga- values and characteristics to different people without
nization benefits. Kurt T. Dirks and Donald L. Ferrin being phony. For example, a corporate-level manager
examined the findings and implications of research at Goodyear service centers might engage in more ban-
during the last four decades about trust in leadership. ter when the manager visits a service center than when
The review involved 106 studies and 27,103 individuals. meeting with financial analysts.
The meta-analysis (quantitative synthesis of studies) A team of researchers conducted two studies to
emphasized supervisory leadership based on the impor- better understand the relationship between authen-
tance of trust in day-to-day interactions with group tic leadership and job performance. The settings cho-
members. Trusting a leader was more highly associated sen were a police organization and a training camp
with a variety of work attitudes of group members. The at a U.S. Army base. These difficult, or extreme,
highest specific relationships with trust were as fol- settings were chosen because such contexts provide
lows: more job satisfaction, more commitment to the greater opportunity for leaders to encourage positive
organization, less intention to leave the company, and attitudes and reduce negativity among subordinates.
more satisfaction with the leader. The relationship of The results of both studies showed that leaders
trust to job performance was statistically significant rated as being more authentic had subordinates
but quite low.15 One reason may be that many people rated as more effective performers. The underly-
perform well for a leader they distrust out of fear of ing mechanism appeared to be that group members
being fired or bad listed. who reported to an authentic leader reported expe-
An interesting twist on the relevance of leader trust- riencing more positive emotions and fewer nega-
worthiness is that it has a trickle-down effect. Based on tive emotions than those individuals reporting to a
a field study and two experiments, a group of research- less authentic leader. 19 In short, having an authen-
ers concluded that when supervisors perceive their tic leader puts you in a better mood and can elevate
managers as trustworthy, subordinates are more likely your job performance.
also to perceive their supervisor as trustworthy. Per- Authentic leadership is beneficial to group mem-
ceiving the supervisor as trustworthy, in turn, enhanced bers, and appears also to provide benefits to the
job performance. A sample item measuring trust was, leader’s mental well-being. A study conducted with
“I can usually trust my supervisor to do what is good forty-four executives with leadership responsibilities
for me.”16 revealed that authentic leadership reduces leaders’
Leadership Self-Assessment Quiz 2-2 gives you the stress and increases their work engagement (commit-
opportunity to examine your own tendencies toward ment to the work and organization). Interacting more
trustworthiness. with team or group members tends to enhance the
benefits to the leader.20 A basic interpretation of these
Authenticity findings is that it is more relaxing to being true to one-
self than faking attitudes and feelings.
Embedded in the trait of being trustworthy is
authenticity—being genuine and honest about your
personality, values, and beliefs as well as having integ- Extraversion
rity. Authenticity can also be defined as simply being Extraversion (the scientific spelling for extroversion) is
yourself. Bill George, a Harvard Business School pro- recognized for its contribution to leadership effective-
fessor and former chairman and CEO of Medtronic, ness because it is helpful for leaders to be gregarious,
developed the concept of authentic leadership. In his outgoing, and upbeat in most situations. Also, extra-
words, “Authentic leaders demonstrate a passion for verts are more likely to want to assume a leadership
their purpose, practice their values consistently, and role and participate in group activities. A meta-analysis
lead with their hearts as well as their heads. They estab- of seventy-three studies involving 11,705 subjects found
lish long-term meaningful relationships and have the that extraversion was the most consistent personality
self-discipline to get results. They know who they are.”17 factor related to leadership effectiveness and leadership
George has explained more recently that people who emergence.21 (Emergence refers to someone being per-
follow their leadership compass toward true north can ceived as having leadership qualities.) Extraversion is
achieve authentic leadership. True north refers to a per- also the personality trait most consistently and strongly
son’s most deeply held beliefs, their values, and the prin- related to the type of leadership that brings about major
ciples that lead the person.18 changes (the transformational type).22
Behaviors and Attitudes of a Trustworthy Leader

Instructions: Listed here are behaviors and attitudes of leaders who are generally trusted by their group members and other
constituents. After you read each characteristic, check to the right whether this is a behavior or attitude that you appear to
have developed already, or whether it does not fit you at present.
FITS ME DOES NOT FIT
1. Tells people they are going to do something, and then always

follows through and gets it done.
2. Is described by others as being reliable.
3. Is good at keeping secrets and confidences.
4. Tells the truth consistently.
5. Minimizes telling people what they want to hear.
6. Is described by others as “walking the talk.”
7. Delivers consistent messages to others in terms of matching
words and deeds.
8. Does what they expect others to do.
9. Minimizes hypocrisy by not engaging in activities they tell oth-
ers are wrong.
10. Readily accepts feedback on behavior from others.
11. Maintains eye contact with people when talking to them.
12. Appears relaxed and confident when explaining their side of
a story.
13. Individualizes compliments to others rather than saying some-
thing like “You look great” to many people.
14. Does not expect lavish perks for themselves while expecting
others to go on an austerity diet.
15. Does not tell others a crisis is pending (when it is not) just to
gain their cooperation.
16. Collaborates with others to make creative decisions.
17. Communicates information to people at all organizational lev-
els digitally and in person.
18. Readily shares financial information with others.
19. Listens to people and then acts on many of their suggestions.
20. Generally engages in predictable behavior.
Scoring and Interpretation: The more of these statements that fit you, the more trustworthy you are—assuming you are
answering truthfully. The usefulness of this self-quiz increases if somebody who knows you well also answers it about you.
Your ability and willingness to carry out some of the behaviors specified in this quiz could have an enormous impact on
your career because many business leaders in recent years have not been perceived as trustworthy. Being trustworthy is
therefore a career asset.
The fact that extraversion contributes to effective of achievement. Yet, there is a potential downside to an
leadership does not mean introverts cannot be effective optimistic leader. The leader might not develop contin-
in leadership roles. Susan Cain, who has studied intro- gency plans to deal with projects that do not go as well
verted CEOs, observes that they are more likely to have as expected.25 An overly optimistic marketing manager
qualities such as restraint, humility, and composure at a solar energy company, for example, might not take
when interacting with stakeholders. They tend to be into account that most homeowners are skeptical that
more careful and deliberate, and less likely to dominate an investment in solar panels will be cost effective.
discussion, which facilitates collaborative leadership.23 Being a warm person and projecting that warmth is
According to executive coach Joel Garfinkle, an part of enthusiasm and contributes to leadership effec-
important contribution introverted leaders make is tiveness in several ways. First, warmth helps establish
watching the situation unfold. They often watch and rapport with group members. Second, the projection of
evaluate ideas from others, noting the politics and pas- warmth is a key component of charisma. Third, warmth
sions of other players, and then evaluate the best way is a trait that helps provide emotional support to group
to move forward.24 In contrast, an extraverted leader members. Giving such support is an important leadership
might pay less attention to the ideas of others and behavior. Fourth, being warm is engaging, whereas being
move forward with a personal agenda. cold tends to create distance from others.
Extraversion may be an almost innate personal- Shawn Achor and Michelle Gietan conducted a field
ity characteristic, yet most people can move toward study that demonstrated the beneficial result of lead-
becoming more extraverted by consciously attempting ing with optimism. The authors conducted a multiyear
to be friendlier toward people including smiling and research project at the Genesis Health System in Iowa,
asking questions. An example is, “How are things going which is comprised of five hospitals and a regional
for you today?” health center. Optimistic leadership was accomplished
by a series of positive psychology culture training inter-
Assertiveness ventions, department by department. In this way, the
effectiveness of the interventions could be compared to
Letting others know where you stand contributes to
the groups that had not received the training. Among
leadership effectiveness, and also contributes to being
the positive psychology interventions were gratitude
or appearing extraverted. Assertiveness refers to being
exercises, increased praise and recognition from man-
forthright in expressing demands, opinions, feelings, and
gers, and team-based conscious acts of kindness.
attitudes. Being assertive helps leaders perform many
The study showed the effects of encouraging pos-
tasks and achieve goals. Among them are confronting
itivity, happiness, and gratitude among leaders and
group members about their mistakes, demanding higher
other staff members. A result of the positive approach
performance, setting high expectations, and making legit-
to leading, staff members became more optimistic and
imate demands on higher management. A director of a
showed higher work engagement, and less incidences
company’s mobile phone service unit was assertive when
of burnout. Patients also benefitted as indicated by
they said to their staff, “Our mobile service is the worst
surveys about their hospital experience. The hospitals
in the industry. We have to improve.” An assertive person
involved improved their financial results. For exam-
is reasonably tactful rather than being aggressive and
ple, one year the Genesis Medical Center Davenport
obnoxious. A leader with good sensitivity knows when
achieved $114 million in gross revenue, its highest ever.
assertiveness crosses the line into aggressiveness, such as
The positive results were attained when much of the
insulting subordinates or making unreasonable demands.
medical industry was financially contracting.26
Enthusiasm, Optimism, and Warmth

In almost all leadership situations, it is desirable for Sense of Humor
the leader to be enthusiastic. Group members tend to Whether humor is a trait or a behavior, the effective
respond positively to enthusiasm, partly because enthu- use of humor is an important part of the leader’s role.
siasm may be perceived as a reward for constructive Humor adds to the approachability and people orienta-
behavior. Enthusiasm is also a desirable leadership trait tion of a leader. Laughter and humor serve such func-
because it helps build good relationships with team tions in the workplace as relieving tension and boredom
members. A leader can express enthusiasm both ver- and defusing hostility. Because humor helps the leader
bally (“Great job”; “I love it”) and nonverbally (making a dissolve tension and defuse conflict, it helps the leader
fist-bump or high-five gesture). exert power over the group. Self-effacing humor is the
Enthusiasm often takes the form of optimism, which choice of comedians and organizational leaders alike.
helps keep the group in an upbeat mood and hopeful By being self-effacing, the leader makes a point without
about attaining difficult goals. The optimistic leader is insulting or slighting anybody. Instead of criticizing a
therefore likely to help bring about exceptional levels staff member for being too technical, the leader might
say, “Wait, I need your help. Please explain how this new to being liked are humility, extraversion, and a sense of
product works in terms that even I can understand.” humor. An extensive research study found that subordi-
A study was conducted in three different lines of nates tend to rate leaders based on their personal liking
business (interior design, banking, and health care) to of that leader rather than the leader’s actual behavior.
examine the impact of leader humor on the behavior of Likability in the study was measured by such straight-
direct reports. Humor induced positive emotion in sub- forward questions as, “I like my supervisor,” and “I
ordinates, which enabled them to build better quality have been happy with my supervisor.” It was also found
relationships with the leader. The higher-quality relation- that when group members like a leader, that person
ships facilitated more organizational citizenship behav- was more likely to be rated as authentic, ethical, and
ior by the subordinates.27 (Organizational citizenship transformational (bringing about positive changes).29
behavior refers to going beyond one’s job description to
be helpful even if it does not lead to a specific reward.) Task-Related Personality Traits
Here are a few recommendations for the leader’s
use of humor based on research: Certain personality traits of effective leaders are closely
associated with task accomplishment. The task-related
• People who occupy high-status roles joke at a higher traits described here are outlined in Figure 2-2.
rate than those of lesser status and tend to be more
successful at eliciting laughter from others. (A possi- Proactive Personality
ble reason that high-status people elicit more laugh-
Leadership is often perceived to mean about the same
ter is that lower-status people want to please them.)
thing as taking the initiative. Initiative, in turn, is closely
● Executives and other managers who use self- related to being proactive, or creating or controlling a
deprecating humor appear more approachable and situation by causing something to happen, rather than
likeable to subordinates. reacting after the event happens. According to its origi-
● Aggressive humor can be used to victimize, belittle, nal research-based definition, a person with a proactive
and cause others some type of disparagement—and personality has a relatively stable tendency to effect envi-
will lead to negative outcomes such as stress and ronmental change.30 Proactive behavior usually stems
counter-hostility among group members.28 (No sur- from a proactive personality and refers to self-initiated
prise to readers here.) anticipatory action with the intent of either changing the
situation or one’s own behavior and attitudes.31 An effec-
The Likability Factor tive leader therefore often has a proactive personality, and
The general personal traits mentioned here in the right therefore exhibits proactive behavior.
combination play a key role is whether a leader is liked Most of the leaders you will read about in this book
by group members. Three traits that contribute heavily show high proactivity including also those who initiate
Proactive
personality
Courage Mindfulness
Flexibility and Passion for the work

adaptability and the people
Emotional
intelligence
1. Self-awareness
2. Self-management
3. Social awareness
4. Relationship
management
Figure 2-2 Task-Related Personality Traits of Leaders.
change. An example of evidence for the importance of found that proactive high-level managers establish
leader proactivity is found in a study of district man- more challenging goals for their business units, which,
agers and their business units from a large U.S.-based in turn, are associated with higher sales performance.32
consumer packaged goods company. The managers Leadership Self-Assessment Quiz 2-3 gives you an
were rated on their proactivity by their immediate opportunity to think through your own tendencies
toward having a proactivity personality and therefore
managers, using statements such as, “Takes charge in
being proactive. Leadership Skill-Building Exercise 2-1
situations where a leader is needed.” Part of the study provides you an opportunity to practice proactivity.
My Tendencies Toward Being a Proactive Personality

Indicate on a 1 to 5 scale the extent of your agreement with the following statements: (1) agree strongly (AS); (2) agree (A);
(3) neutral (N); (4) disagree (D); and (5) disagree strongly (DS).
AS A N D DS
1. I plan carefully for things that might go wrong. 5 4 3 2 1

2. I don’t worry about problems until after they have taken 1 2 3 4 5
place.
3. If I see something that is broken, I fix it. 5 4 3 2 1
4. I have been told several times that I am good at taking the 5 4 3 2 1
initiative.
5. I often let things like a computer password expire without 1 2 3 4 5
making the necessary changes.
6. When something important needs doing, I wait for some- 1 2 3 4 5
body else to take the initiative.
7. I think that having a home security system is a good invest- 5 4 3 2 1
ment in money.
8. I look around for good opportunities that would help me in 5 4 3 2 1
my career or personal life.
9. I don’t give much thought to the future because there is not 1 2 3 4 5
much I can do about it.
10. It is a good idea to start saving or investing for retirement at 5 4 3 2 1
the beginning of your career.
11. I begin projects and tasks by myself, without requiring 5 4 3 2 1
prompting from somebody else.
12. The old saying, “The early bird gets the worm,” doesn’t make 1 2 3 4 5
much sense in real life.
13. I let the future take care of itself without giving it much 1 2 3 4 5
thought.
14. I set my own goals rather than have others set them for me. 5 4 3 2 1
15. I create a lot of change both in work and personal life. 5 4 3 2 1
16. I have often asked for feedback on my job performance. 5 4 3 2 1
(continued)
Self-Assesment Quiz
2-3 (continued)
AS A N D DS
17. If your job is going well, it is a bad idea to explore new job 1 2 3 4 5
possibilities from time to time.
18. Once you have chosen a satisfactory career, it is a bad idea to 1 2 3 4 5
explore the possibilities of another career from time to time.
19. I readily express my opinion about the effectiveness of a 5 4 3 2 1
work process.
20. It is best to stick carefully to your job description rather than 1 2 3 4 5
create responsibilities for yourself.
21. I regularly take positive steps to increase the chances that I 5 4 3 2 1
will stay healthy and physically fit.
22. I am quite innovative both in work and personal life. 5 4 3 2 1
Scoring and Interpretation: Total the numbers corresponding to your answers.

● 85–110: Scores in this range suggest that you have strong tendencies toward being a proactive personality. Such proactiv-
ity should be (or already is) an asset to you in your career and personal life. Yet scoring 115 points or more could suggest
that you sometimes annoy people with your constant need for taking on new responsibility and creating change.
● 55–84: Scores in this range suggest that you have about average tendencies toward being proactive. To enhance your
success and have more fun in life, you might attempt to become more proactive.
● 22–54: Scores in this range suggest that you have a problem with proactivity. Both your work and personal life would prob-
ably be enhanced if you became more proactive.
Source: The idea for this scale and several of its statements stem from Thomas S. Bateman and J. Michael Grant , “The Proactive
Component of Organizational Behavior: A Measure and Correlates,” Journal of Organizational Behavior, March 1993 , p. 112.
Mindfulness example, you are being mindful when you listen to a sub-
Mindfulness came from Buddhism 2000 years ago but ordinate’s creative suggestion, concentrating intensely
has become a buzzword during the past forty-five years. on the idea. Furthermore, you make no immediate judg-
It refers to concentrating on the present moment with- ments about the value of the idea, and do not think about
out making judgments about what is happening. For the past or future. A technical definition of mindfulness
The Proactive New Leader

One person plays the role of the newly appointed manager supply chain and logistics. During this ten-minute meeting
of a distribution center for the online business of a major re- you intend to show that you are indeed a proactive leader.
tailer. You know that top-level management expects all of its Another student plays the role of the vice president of sup-
leaders to do much more than manage the status quo. You ply chain and logistics. Your intention of holding the meeting
have even heard the rumor that managers who do not exhibit was essentially to get acquainted with the new manager, and
strong leadership qualities are soon demoted or fired. You to see if the manager was experiencing any problems. Run
have an upcoming Zoom meeting with the vice president of the role play for about the full ten minutes of the meeting.
is “a state of nonjudgmental attentiveness to and aware- Passion for the Work and the People
ness of moment-to-moment experiences.”33 A dominant characteristic of effective leaders is their
The mindful leader has traits and engages in behav- passion for their work and to some extent for the peo-
iors that have long been associated with successful lead- ple who help them accomplish the work. The passion
ership, such as being observant, perceptive, and attentive goes beyond enthusiasm and often expresses itself as
to details that could affect important outcomes. An effec- an obsession for achieving company goals. Many lead-
tive leader is supposed to look at the big picture, yet key ers begin their workday at 6:00 a.m. and return to their
details contribute to the big picture. Visualize Angela, the homes at 7:00 p.m. After dinner, they retreat to their
vice president of human resources at a large bank. Part of offices at home to conduct business for about two
the big picture for her is for the bank to have a committed, more hours. Communication technology devices feed
engaged workforce. On a recent tour of the bank, Angela the passion for work, making it possible to be in touch
is mindful enough to recognize that very few workers are with the office even during golf or a family picnic. The
smiling. To Angela, this limited amount of smiling could downside to extreme passion for work is that it can
indicate that employee morale is too low to contribute to lead to work addiction, thereby interfering with other
an engaged workforce. Angela now swings into action by joys in life.
conferring with bank supervisors about potential morale Passion for their work is especially evident in
problems, and what can be done to elevate morale. entrepreneurial leaders, no matter what size and
Several behaviors of a mindful leader are presented type of business. A given business, such as refurbish-
next:34 ing engines, might appear mundane to outsiders. The
• The mindful leader is usually calm, and has clarity leader of such a business, however, is willing to talk for
and focus. They can help the group see the way out hours about tearing down old engines and about the
of a crisis, such as criticism of the company having wonderful people who help do the job.
gone viral, by providing a clear path to recovery. One of the ways for an entrepreneur to inject pas-
sion into a business is to tell a creation-of-the-enterprise
● Being aware of personal feelings, as well as the feel-
story. The story should inspire people to understand
ings of group members, the mindful leader displays
how your product or cause will make the world a bet-
compassion.
ter place. Howard Schultz, the founder and chairman
● As part of being observant, the mindful leader lis- emeritus of Starbucks, provides an example.35
tens carefully and attempts to extract meaning from
what people are saying. As the leader interacts with Schultz’s story begins in 1961, when his father
subordinates both in formal meetings and in casual broke his ankle at work and was left without
interactions, they look for directly expressed and income, insurance, or any way to support his family.
implied meanings. A retail chain executive might be The family’s fear inspired change. Schultz grew up
on a tour of stores, and asks a store manager how driven to create a company in which employees
things are going at the store. The manager replies, have a safety net woven of respect and dignity.
“Could be a lot worse.” The mindful leader recog-
nizes that “could be a lot worse” is hardly a glori- Learning Objective 2.2 Describe how emotional intelli-
ous condition, and asks, “What is preventing things gence contributes to leadership effectiveness.
from being outstanding?” The store manager, feel-
ing understood, replies, “Too many customers are Emotional Intelligence
leaving the store without purchasing anything.”
Many different aspects of emotions, motives, and
Now the executive and the store manager have an
personality that help determine interpersonal effec-
important problem to work on jointly.
tiveness and leadership skill have been placed under
● The mindful leader is open to new ideas and mul- the comprehensive label of emotional intelligence.
tiple perspectives. Although an effective leader is Emotional intelligence refers to the ability to do such
likely to have an agenda that the leader believe is things as understanding one’s feelings, have empathy
worth pursuing, the mindful leader stays alert to for others, and regulate one’s emotions to enhance
what could be new and significant. The mindful one’s quality of life. This type of intelligence gener-
leader is nonjudgmental within limits. ally has to do with the ability to connect with people
● Being nonjudgmental is part of mindfulness, and and understand their emotions. Many of the topics
this characteristic will often help the leader. The in this chapter (such as warmth) and throughout the
limits are that being judgmental is important when text (such as political skill) can be considered related
the behavior of group members is illegal, unsavory, to emotional intelligence. In addition to being an abil-
or nonproductive such as workers using company ity, emotional intelligence is also a trait, or part of the
credit cards to pay for casino betting. leader’s personality.36
Based on research in dozens of companies, Daniel 3. Social awareness. This includes having empathy
Goleman discovered that the most effective lead- for others and intuition about organizational
ers are alike in one essential way: They all have a problems. Empathy has surged in importance as
high degree of emotional intelligence. Without a high a key leadership quality. Socially aware leaders
degree of emotional intelligence, a person can have go beyond sensing the emotions of others by
excellent training, superior analytical skills, and loads showing they care. In addition, they accurately
of innovative suggestions, but that person still will size up political forces in the office. (A team leader
not make a great leader. His analysis also revealed with social awareness, or empathy, would be able
that emotional intelligence played an increasingly to assess whether a team member had enough
important role in high-level management positions. enthusiasm for a project to assign it to him.)
(Keep in mind, however, that most high-level manag- The two specific competencies are empathy and
ers would not have advanced to their position if they organizational awareness.
lacked good technical skills or business knowledge.) 4. Relationship management. This includes the
Furthermore, when star performers were compared interpersonal skills of being able to communicate
with average ones in senior leadership positions, clearly and convincingly, disarm conflicts, and
differences in emotional intelligence were more pro- build strong personal bonds. Resonant leaders
nounced than differences in cognitive abilities.37 use relationship management skills to spread
Research conducted by Travis Bradberry also indi- their enthusiasm and solve disagreements, often
cates that emotional intelligence is a powerful mea- with kindness and humor. (A leader with good
sure of leadership performance because emotions relationship management skills would not burn
play a key role in driving behavior.38 bridges and would continue to enlarge their
Four key domains in emotional intelligence are personal network of people to win support when
described next, along with a brief explanation of how support is needed.) The four specific competencies
each factor links to leadership effectiveness. The com- are influence, coach and mentor, teamwork, and
petency or competencies associated with each compo- inspirational leadership.
nent are also mentioned. The domains (components)
of emotional intelligence have gone through several It is also helpful to recognize that emotional intelli-
versions, and the version presented here is tied closely gence has relevance for people who are beginning their
to leadership and interpersonal skills. A leader who leadership careers. Two studies with students taking a
scores high in emotional intelligence is described as course in organizational behavior, and assigned small-
resonant.39 group projects, examined how emotional intelligence
was related to emergent leadership. Among the dimen-
1. Self-awareness. Having high self-awareness allows sions of emotional intelligence measured, it was found
people to know their strengths and limitations that the ability to understand emotions was the most
and have high self-esteem. Self-awareness helps consistently related to leadership emergence.40 The
accurately measure their own moods, and they study participants with the best skill in understanding
intuitively understand how their moods affect emotions in others were more therefore likely to be per-
others. (Effective leaders seek feedback to see how ceived as having leadership qualities.
well their actions are received by others. A leader If leaders do not have emotional intelligence, they
with good self-awareness would recognize such may not achieve their full potential despite their high
factors as whether they were liked or was exerting cognitive intelligence. Almost daily, a scanning of news
the right amount of pressure on people.) The stories will reveal an organizational leader who was dis-
associated competency is emotional self-awareness. graced or dismissed because of displaying poor emo-
2. Self-management. This is the ability to control tional intelligence. Sometimes the business leader is a
one’s emotions and act with honesty and integrity person of outstanding reputation and accomplishment.
in a consistent and adaptable manner. The right Among the frequent errors in emotional intelligence are
degree of self-management helps prevent a person lying about credentials, repeated sexual harassment of
from throwing temper tantrums when activities do subordinates and customers, and insider trading. Mak-
not go as planned. Resonant leaders do not let their ing negative and insulting social media posts also reflects
occasional bad moods ruin their day. (A leader with low emotional intelligence, and can derail a career.
high self-management would not suddenly decide A study of emotional intelligence and leadership
to fire a group member because of one difference also recognizes the importance of the leader’s mood
of opinion.) The four specific competencies are in influencing performance. Daniel Goleman, Richard
emotional self-control, adaptability, achievement Boyatzis, and Annie McKee believe that the lead-
orientation, and positive outlook. er’s mood and associated behaviors greatly influence
Leadership Motives 39
bottom-line performance. One reason is that moods Courage

are contagious. A cranky and ruthless leader creates a Leaders need courage to face the challenges of taking
toxic organization of underachievers (who perform at prudent risks and taking initiative in general. Lead-
less than their potential). In contrast, an upbeat and ers must face up to responsibility and be willing to
inspirational leader breeds group members who can put their reputations on the line. It takes courage for
surmount most challenges. Thus, mood finally affects a leader to suggest a new undertaking, because if the
profit and loss. The implication for leaders is that they undertaking fails, the leader is often seen as having
have to develop emotional intelligence regarding their failed. Popular leadership writer John Maxwell says
moods. It is also helpful to develop a sense of humor, that courage, or doing what you are afraid to do, is
because lightheartedness is the most contagious of present in every great leader in business, government,
moods.41 or religious institutions. A show of courage by a leader
During the pandemic, emotionally intelligent lead- inspires others.44
ership was useful in helping workers deal with their Courageous leadership has also been described as
emotional disturbance, and helping them feel more gutsy. Many people criticized the late Steve Jobs (the
secure. In particular it was essential for leaders to cre- former Apple Inc. CEO and then chairman) and his
ate an atmosphere of psychological safety in which management team when they initiated Apple stores
employees could express their concerns about work because they saw no useful niche served by these
and their jobs without fear of reprisal.42 The section in retail outlets. Apple stores were an immediate and
Chapter 5 dealing with leadership during a crisis will long-lasting success, vindicating the judgment of Jobs
describe dealing with employee emotions. and his team. The more faith people place in the power
Emotional intelligence highlights the importance of leaders to cause events, the more strongly they blame
of leaders making effective use of emotions. Infor- leaders when outcomes are unfavorable.
mation about emotional intelligence also leads to
a better understanding of how leadership emerges,
leadership behaviors, and leadership effectiveness.
Nevertheless, some proponents of emotional intelli-
gence go too far in their claims about its importance
Leadership Motives
in relation to leadership effectiveness. Specifically, we
cannot overlook the contribution of general mental Learning Objective 2.3 Identify key motives that contrib-
ability (cognitive intelligence) to being an effective ute to leadership effectiveness.
leader. Several syntheses of research studies suggest
that emotional intelligence is only one of various fac- Effective leaders have frequently been distinguished
tors (including other personality traits, cognitive abil- by their motives and needs. In general, leaders have an
ity, and functional skills) that influences what leaders intense desire to occupy a position of responsibility for
accomplish.43 others and to control them. Figure 2-3 outlines five spe-
cific leadership motives or needs. All five motives can
Flexibility and Adaptability be considered task related.
A leader is someone who facilitates change. It there-
fore follows that a leader must be flexible enough to
cope with such changes as technological advances,
The Motivation to Lead
downsizings, global outsourcing, a shifting customer The foundation motive for occupying a leadership
base, and a changing work force. Flexibility, or the position is the motivation to lead, a desire to attain
ability to adjust to different situations, has long been leadership roles as well as to expend effort to meet the
recognized as an important leadership characteris- requirements of a leadership role. People may have
tic. Leaders who are flexible are able to adjust to the many different specific reasons for wanting to be a
demands of changing conditions, much as antilock leader, but they still have the general motive of want-
brakes enable an automobile to adjust to changes in ing to lead. Many successful leaders as adults sought
road conditions. Without the underlying trait of flexi- out leadership roles even as children and teenagers,
bility, a person might be an effective leader in only one whereas many other people avoided such responsibility.
or two situations. The manufacturing industry exem- Digging further into the motivation to lead,
plifies a field in which situation adaptability is partic- researchers have identified three types of motiva-
ularly important. This is true because executives are tion to lead. The first is affective identity, the degree
required to provide leadership on the production floor to which one enjoys leadership roles and sees oneself
and in the executive suite where the norms of behavior as a leader. The second is social normative, the degree
might be quite different. to which one views leadership as a responsibility and
The motivation to lead
Tenacity and resilience The power motive
The drive and

achievement motive
Figure 2-3 Leadership Motives.
duty. The third is non-calculative, the degree to which yes-persons. Another characteristic of leaders with a
one views leadership opportunities positively despite personalized power motive is that they do not worry
potential costs and few personal benefits.45 In reality, about everybody liking them. They recognize that as
most people who seek out a leadership position are you acquire power, you also acquire enemies.
motivated by the three components that constitute
the motivation to lead. Business analyst Baxter might Socialized Power Motive
accept a promotion to department manager because Leaders with a socialized power motive use power pri-
(1) he sees himself as a leader, (2) he thinks he has an marily to achieve organizational goals or a vision. In
obligation to help his company by being a leader, and this context, the term socialized means that the leader
(3) he is willing to deal with any frustrations he might uses power primarily to help others. As a result, the
encounter as a leader. leader is likely to provide more effective leadership.
Leaders with socialized power motives tend to be
The Power Motive more emotionally mature than leaders with personal-
ized power motives. They exercise power more for the
Effective leaders have a strong need to control benefit of the entire organization and are less likely to
resources. Leaders with high power motives have three manipulate others through the use of power. Leaders
dominant characteristics: (1) they act with vigor and with socialized power motives are also less defensive
determination to exert their power, (2) they invest much and more willing to accept expert advice. Finally, they
time in thinking about ways to alter the behavior and have longer-range perspectives.48
thinking of others, and (3) they care about their per- It is important not to draw a rigid line between
sonal standing with those around them.46 The power leaders with personalized power motives and those
motive is important because it means that the leader with socialized power motives. The distinction between
is interested in influencing others. Without power, it is doing good for others and doing good for oneself is
much more difficult to influence others. Power is not often made on the basis of very subjective criteria. A
necessarily good or evil; it can be used for the sake of case in point is Mark Clouse, the president and CEO
the power holder (personalized power motive) or for of Campbell Soup Company. The many nutritious, rel-
helping others (socialized power motive).47 atively low-priced foods his company manufactures
facilitate the well-being of millions of people through-
Personalized Power Motive out the world. At the same time, Clouse is growing in
Leaders with a personalized power motive seek power power and stature because the company he leads is so
mostly to further their own interests. They crave the successful, even as the demand for canned soup has
trappings of power, such as status symbols, luxury, and declined in recent years.
money. The wealthiest of CEOs purchase luxury con-
dominium apartments in major cities, even when they
The Drive and Achievement Motive
have another home. Some leaders with strong per-
sonalized power motives typically enjoy dominating Leaders are known for working hard to achieve their
others. Their need for dominance can lead to submis- goals. Drive refers to a propensity to put forth high
sive subordinates who are frequently sycophants and energy into achieving objectives and to persistence in
Cognitive Factors and Leadership 41
applying that energy. Drive also includes achievement Resilience is part of tenacity because the tenacious
motivation—finding joy in accomplishment for its own person will bounce back from a setback through con-
sake. Entrepreneurs and high-level corporate managers tinuous effort. An extraordinary example of a resil-
usually have strong achievement motivation. Such peo- ient leader is Oscar Munoz, the executive chairman
ple have a consistent desire to: of United Continental Holdings Inc. Five months after
having a heart transplant operation, he was back on
1. achieve through their efforts and take responsibility
the job leading the airline that was struggling at the
for success or failure;
time. Although his right hand was not fully functional,
2. take moderate risks that can be handled through he was jogging and biking again. Munoz had a heart
their own efforts; attack just two weeks after being appointed CEO.51 He
3. receive feedback on their level of performance; became executive chairman of United Continental in
4. introduce novel, innovative, or creative solutions; May 2020.
and
5. plan and set goals.49
Drive usually requires a high level of physical energy, Cognitive Factors and Leadership
especially because many leadership positions require
long hours and heavy travel. In recognition of the Learning Objective 2.4 Describe cognitive factors associ-
energy requirements of their position, many business ated with leadership effectiveness.
executives emphasize physical fitness. Whether at
home or in a hotel, many of these executives exercise Mental ability as well as personality is important for
on a treadmill or stationary bicycle, often watching leadership success. To inspire people, bring about con-
news on television at the same time. structive change, and solve problems creatively, leaders
need to be mentally sharp. Another mental requirement
is the ability to sort out essential information from less
Tenacity and Resilience essential information and then store the most import-
A final observation about the motivational characteris- ant information in memory. Problem-solving and intel-
tics of organizational leaders is that they are tenacious. lectual skills are referred to collectively as cognitive
Tenacity multiplies in importance for organizational factors. We discuss five cognitive factors that are closely
leaders because it takes a long time to implement a related to cognitive intelligence, as shown in Figure 2-4.
new program or to consummate a business deal, such The descriptor cognitive is helpful to differentiate tradi-
as acquiring another company. Grit has become synon- tional mental ability from emotional intelligence.
ymous with tenacity because grit refers to an unswerv-
ing focus on long-term goals, and is considered to be a
Cognitive (or Analytical) Intelligence
success factor in most fields.50 The gritty person has the
stamina to keep pushing forward even when setbacks Being very good at solving problems is a fundamen-
surface. tal characteristic of effective leaders in all fields.
Cognitive (or analytical)

intelligence
Knowledge of the
business or
Farsightedness group task
and conceptual
thinking
Creativity
Insight into people

and situations
Figure 2-4 Cognitive Factors and Leadership.
Business leaders, for example, need to understand how A leader with good practical intelligence would
to analyze company finances, use advanced software, know, for example, not to deliver a vision statement on
manage inventory, and deal with international trade a day most of the company employees were worried
regulations. Research spanning over 100 years has about a power outage in their homes created by a mas-
demonstrated that leaders receive higher scores than sive lightning storm.
most people on mental ability tests, including IQ (a
term for a test score that for many people is synony- Knowledge of the Business or Group Task
mous with intelligence). A meta-analysis of 151 stud-
Intellectual ability is closely related to having knowl-
ies found a positive relationship between intelligence
edge of the business or the key task the group is per-
and job performance of leaders in many different set-
forming. An effective leader has to be technically
tings. The relationship is likely to be higher when the
competent in some discipline, particularly when lead-
leader plays an active role in decision making and is
ing a group of specialists. It is difficult for the leader
not overly stressed. The researchers also found sup-
to establish rapport with group members when they do
port for the old idea that intelligence contributes the
not know what the group members are doing and when
most to leadership effectiveness when the leader is
the group does not respect the leader’s technical skills.
not vastly smarter than most group members.52 Again,
The importance of knowledge of the business is
group members prefer that their leaders be smarter
strongly recognized as an attribute of executive lead-
than the average group member even if the difference
ership. Leaders at every level are expected to bring
is not huge.
forth useful ideas for carrying out the mission of the
A recent demand on the cognitive intelligence of
organization or organizational unit. A representative
leaders is to be able to figure out how to make appro-
example is that according to a team of researchers, a
priate use of artificial intelligence (AI), the ability of
key requirement for the chief supply chain manage-
a computer program or machine to think and learn in
ment officer is “end-to-end understanding of the sup-
a manner that emulates human intelligence. The leader
ply chain.”56 A caution about having deep knowledge
does not have to understand how to create artificial
of the business or group task, is that that the leader
intelligence; that is the work of data scientists. Instead,
might fall into the expertise trap of believing that the
the leader will often have to know how to apply the
leader’s methods are the best, or only, way to get things
results of AI in such activities as recruiting and select-
done. Falling into this trap can mean missing out on
ing employees, decision-making in general, and devel-
new ideas, failing to anticipate trends, or narrowing
oping business strategy.
one’s perspective.57
Artificial intelligence can examine thousands of vari-
Knowledge of the business or the group task is par-
ables at the same, and provide fresh insights that the
ticularly important when developing strategy, formu-
person in charge can use to lead more effectively. For
lating mission statements, and sizing up the external
example, an artificial intelligence analysis of communi-
environment. Chapter 13 deals with strategy formula-
cation interactions within the organization might reveal
tion at length.
that several groups are not collaborating enough to
yield new product ideas. The leader could then encour-
age the groups to collaborate more effectively. In a UK
Creativity
company, the CEO enlisted engineering and design Many effective leaders are creative in the sense that
leaders to form a cross-disciplinary team to reimagine they arrive at imaginative and original solutions to
collaboration. Working with data scientists, the team complex problems, such as thinking of an idea for
found ways to improve communication patterns. The a new product or service, or how to recruit talented
result was a 10 percent reduction in time to market for employees. Creative ability lies on a continuum, with
new-product development, and an 11 percent reduction some leaders being more creative than others. At one
in costs.53 end of the creative continuum are business leaders
Cognitive intelligence is all the more useful for who think of innovative products and services, such as
leadership when it is supplemented by practical Elon Musk, the CEO of Tesla and the chief designer for
intelligence, the ability to solve everyday problems SpaceX. Musk has been referred to as the modern-day
by using experience-based knowledge to adapt to and Thomas Edison.
shape the environment. Practical intelligence is some- At the middle of the creativity continuum are lead-
times referred to as street smarts, and also includes ers who explore imaginative—but not breakthrough—
wisdom. 54 Research evidence suggests that specific solutions to business problems. At the low end of the
problem-solving skills, such as wisdom, are more creativity continuum are leaders who inspire group
closely related to leader performance than general members to push forward with standard solutions
intelligence.55 to organizational problems. Creativity is such an
The Influence of Heredity and Environment on Leadership 43
important aspect of the leader’s role in the modern orga- influences the organization and how different parts of
nization that the development of creative problem-solv- the organization influence each other. A good concep-
ing skills receives separate attention in Chapter 11. tual thinker recognizes how their organizational unit
contributes to the firm or how the firm meshes with
the outside world.
Insight into People and Situations Former CEO of PepsiCo, Indra Nooyi, believes that
Another important cognitive trait of leaders is insight, the single most important skill needed for any CEO
a depth of understanding that requires considerable today is strategic acuity (meaning conceptual thinking
intuition and common sense. Intuition is often the and farsightedness). She notes that when she was cho-
mental process used to provide the understanding of sen to run the European business for PepsiCo, Roger
a problem. Insight helps speed decision making. Jeff Enrico, the company CEO at the time, said, “I’m
Bezos, the founder of Amazon.com, and Tim Cook, the pulling you back.” When Nooyi asked why, Enrico
CEO of Apple Inc., believe that the bigger the decision, replied, “I can get operating executives to run a profit-
such as whether or not to enter a particular business, and-loss-center. But I cannot find people to help me
the greater the role of insight and intuition. reconceptualize PepsiCo. That’s the skill in shortest
Insight into people and situations involving peo- supply.”58
ple is an essential characteristic of organizational Leadership Self-Assessment Quiz 2-4 provides
leaders because it helps them make the best use of you an opportunity to think through your tendencies
both their own and others’ talents. For example, it toward conceptual (or big) thinking.
helps them make wise choices in selecting people for The accompanying Leader-in-Action box focuses on
key assignments. Insight also enables managers to do the cognitive skills of a human resource management
a better job of training and developing team mem- leader of one of the world’s best-known companies.
bers because they can wisely assess the members’
strengths and weaknesses. Another major advantage
of being insightful is that the leader can size up a
situation and adapt the leadership approach accord- The Influence of Heredity
ingly. For instance, in a crisis situation, group mem- and Environment on Leadership
bers welcome directive and decisive leadership. Being
able to read people helps the manager provide this Learning Objective 2.5 Analyze the heredity versus envi-
leadership. ronment issue in relation to leadership effectiveness.
You can gauge your insight by charting the accuracy
of your hunches and predictions about people and busi- Which contributes more to leadership effectiveness,
ness situations. For example, size up a new coworker or heredity or environment? Are leaders born or made?
manager as best you can. Record your observations and Do you have to have the right stuff to be a leader? The
test them against how that person performs or behaves most sensible answer is that the traits, motives, and
many months later. The feedback from this type of exer- characteristics required for leadership effectiveness
cise will help sharpen your insights. are caused by a combination of heredity and environ-
ment. Leaders are both born and made. Personality
traits and mental ability traits are based on certain
Farsightedness and Conceptual Thinking
inherited predispositions and aptitudes that require
To develop visions and corporate strategy, a leader the right opportunity to develop. Cognitive intelli-
needs farsightedness, the ability to understand the gence is a good example. We inherit a basic capacity
long-range implications of actions and policies. A far- that sets an outer limit to how much mental horse-
sighted leader recognizes that hiring talented work- power we will have. Yet people need the right opportu-
ers today will give the firm a long-range competitive nity to develop their cognitive intelligence so that they
advantage. A more shortsighted view would be to hire can behave brightly enough to be chosen for a leader-
less-talented workers to satisfy immediate employment ship position.
needs. The farsighted leader/manager is not oblivious Evelyn Williams, who directs the leadership devel-
to short-range needs but will devise an intermediate opment program at Stanford University, makes the fol-
solution, such as hiring temporary workers until peo- lowing metaphor: “I think leadership is a combination
ple with the right talents are found. of nature and nurture. Just as some musicians have
Conceptual thinking refers to the ability to see the a special talent for playing instruments, some people
overall perspective, and it makes farsightedness pos- seem to be born with leadership abilities. But whatever
sible. A conceptual thinker is also a systems thinker, their natural talent, people can certainly learn to be
because they understand how the external environment better musicians—and better leaders.”59 The conclusion
How Big Is My Thinking?

Indicate your strength of agreement with each of the following statements: (1) strongly disagree (SD); (2) disagree (D);
(3) neutral (N); (4) agree (A); (5) strongly agree (SA).
SD D N A SA
1. I get upset if my checkbook does not balance even to the dollar. 5 4 3 2 1

2. I often think about the meaning and implication of news stories. 1 2 3 4 5
3. A top-level manager is usually better off finding ways to cut 5 4 3 2 1
costs than thinking about the future of the business.
4. I like to argue (or used to) with an instructor about what should 5 4 3 2 1
be the correct answer to a multiple-choice question.
5. So long as a company provides good customer service with its 5 4 3 2 1
present product line, its future is very secure.
6. I prefer acquiring knowledge and skills that can help me with 5 4 3 2 1
my job during the next month rather than those that might help
me in the future.
7. It makes me laugh when a CEO says a big part of their job is 5 4 3 2 1
creating visions.
8. I have already created a vision for my life. 1 2 3 4 5
9. I am a “big picture” thinker. 1 2 3 4 5
10. If people take care of today’s problems, they do not have to 5 4 3 2 1
worry about the future.
11. World events have very little impact on my life. 5 4 3 2 1
12. An organization cannot become great without an exciting 1 2 3 4 5
vision.
Scoring and Interpretation: Find your total score by summing the point values for each question.
● 52–60: You probably already a big-picture thinker, which should help you in our career.
● 30–51: You probably have a neutral, detached attitude toward thinking big.
● 12–29: Your thinking probably emphasizes the here and now and the short term. People in this category usually do not
focus on the implications of their work.
Williams reaches is supported by the extensive review The physical factor of energy also sheds light on
of the evidence conducted by Julian Barling. He con- the nature-versus-nurture issue. Some people are born
cludes that both environmental and genetic factors with a biological propensity for being more energetic
contribute to leadership emergence and leadership than others. Yet unless that energy is properly chan-
behavior.60 neled, it will not help a person to become an effective
The accompanying Leader in Action insert gives leader.
you a human resources executive in the high technol- Advances in neuroscience provide additional evi-
ogy field to study in terms of her personal attributes dence that there is most likely a genetic and biologi-
including cognitive skills. cal component to leadership. David Rock, founder of
The Influence of Heredity and Environment on Leadership 45

Leader in Action
Beth Galetti, Senior Vice President of People Experience and Technology at Amazon
As the senior vice president of people, experience, and tech- ● Ownership. (Leaders are owners.)
nology (chief of human resources) for Amazon.com and its ● Invent and Simplify. (Leaders expect and require innova-
over one million employees, Beth Galetti has directed a hiring tion and invention from their teams and look for ways to
spree of historic proportions. Her work history includes a vari- simplify.)
ety of senior leadership positions across four continents. She ● Learn and Be Curious. (Leaders are never done learning
has experience in electrical engineering, operations manage- and always seek to improve themselves.)
ment, information technology, and human resources.
Galetti is the highest-ranking woman at Amazon, and the
Galetti said, “If we’re going to hire tens of thousands—
only woman on the senior executive team. Amazonians who work
or now hundreds of thousands—of people a year, we can’t
closely with Galetti note the ambition, diligence, and inquisitive
afford to live by manual process and manual transactions.”
nature she brings to her work. Jeff Wilke, the CEO of Amazon’s
Digital data are used to both guide hiring decisions and
consumer business, says that when Galetti “sees something
adjust the company’s workforce to market demands, such
that’s right, and that she thinks is going to work, she just gets it
as the surge in hiring that took place during the pandemic of
done.”
2020 and 2021. As millions of consumers conducted more
When Galetti first spoke with Amazon, the company
of their shopping online, Amazon had to rapidly expand its
was impressed with the logistics experience at her for-
workforce. It has been acknowledged that Amazon’s job
mer employer, FedEx. The Amazon recruiter was also
creating activities had a positive impact on hundreds of
impressed with Galetti’s enthusiasm for leading teams, and
thousands of families as well as the economy.
for talent development. On this basis Galetti was offered a
“I’m looking for ways to remove the barriers, fix the
job in HR but was told if human resources was not a good
defects, and enable self-service,” said Galetti. The ambitious
fit for her, Amazon would find her another position in the
HR activity has resulted in 600 people working on software
organization.
for purposes such as employee orientation and conducting
Galetti received a Bachelor of Science degree in elec-
performance evaluations.
trical engineering from Leigh University, and an MBA from
Galetti explains that the People, Experience, and Tech-
Colorado Technical University. Galetti was a math prodigy
nology group designs everything they do from hiring, recruit-
who entered Lehigh University at age 16. In addition to
ing great candidates, and onboarding to help employees
her Amazon senior leadership role, Galetti is Vice Chair of
understand the Amazon culture. Employees are helped
the Board of Directors of Path, a global team of innovators
through their careers by being given the opportunity to grow
working to accelerate health care equity.
and try different responsibilities. Under Galetti’s leadership,
the HR group has developed its own mission and tenets: Questions
“We build a workplace for Amazonians to invent on behalf 1. What evidence is presented in this story that Beth Galetti
of the customer.” has superior cognitive skills?
A key factor for all new hires is whether they appear ready 2. What leadership-related personality traits does Galetti
to follow the fifteen Amazon Leadership Principles even if appear to possess?
3. How realistic does it seem for all Amazon recruits, even
they are not hired for a leadership position. The first four are:
box packers in distribution centers, to be capable of
● Customer obsession. (Leaders start with the customer following the company leadership principles?
and work backwards.)
Sources: Original story based on facts and observations in the following sources: Rachel Ranosa, “Beth Galetti Knows the Challenge of
Hiring in a Pandemic ,” HRD Human Resources Director) (www.hcamag.com), March 16, 2021, pp. 1–3; Harry McCracken, “Amazon’s
People Person,” Fast Company, May 2019, pp. 50–53; “Beth Galetti, “PATH Board Vice Chair; Senior Vice President of Worldwide
Human Resources, Amazon, Path (www.path.org), 2021, pp. 1–3; Beth Galetti, SVP People Experience and Technology at Amazon,”
LinkedIn (www.linkedin.com), April 2, 2021, p. 1; Beth Galetti ’93,” ‘The Woman Behind Amazon’s Explosive Growth,’” Leigh University
(https: engineering.leigh.edu), April 15, 2019, p. 1; “Leadership Principles,” www.amazonjobs.com, 2021, p. 1.
My Best Leadership Attribute

Each class member takes a few moments to think about “Creativity is my best leadership attribute. People have been
what appears to be their own best leadership trait, motive, telling me for many years that I am imaginative, and some
or characteristic as a leader or future leader from among of my best ideas have worked well.” If the course is being
those mentioned in this chapter. Next, a group of about ten taken online, students can post their responses. Other class
volunteers, or the entire class, makes about a two-minute members are free to provide any observations that what the
presentation identifying the attribute, and explains the ba- person is saying makes sense from their perspective.
sis for the conclusion. For example, a student might say,
the NeuroLeadership Institute in Australia, points out are confident that honesty and integrity, as well as
that an effective leader is adaptive, such as knowing creativity and imagination, are essential leadership
when to be dogmatic versus collaborative, or when to traits, then we can concentrate on selecting leaders
focus on details versus the big picture. To be adaptive, with those characteristics. Another important strength
a person needs an integrated brain. Such integration of the trait approach is that it can help people prepare
requires strong connections across all regions of the for leadership responsibility and all of the issues that
brain. These connections are mostly genetic although accompany it. A person might seek experiences that
they can be enhanced though mental activities such as enable that person to develop vital characteristics such
creativity training. When the brain is well integrated, as self-confidence, good problem-solving ability, and
the leader can switch between different approaches assertiveness.
with ease, such as being tough and unforgiving in one A limitation to the trait approach is that it does
situation and displaying empathy in another.61 not tell us which traits are absolutely needed in which
To help personalize the information about key lead- leadership situations. We also do not know how
ership traits presented in this chapter, do Leadership much of a trait, characteristic, or motive is the right
Skill-Building Exercise 2-2. amount. For example, some leaders get into ethical
and legal trouble because they allow their ambition
to cross the borderline into greed and gluttony. In
addition, too much focus on the trait approach can
The Strengths and Limitations breed an elitist conception of leadership. People who
of the Trait Approach are not outstanding on key leadership traits and char-
acteristics might be discouraged from seeking leader-
Learning Objective 2.6 Enumerate the strengths and ship positions.
weaknesses of the trait approach to leadership. A subtle limitation to the trait approach is that it
prompts some people to believe that to be effective, you
A compelling argument for the trait approach is that have to have a high standing on almost every leader-
there is convincing evidence that leaders possess per- ship characteristic. In reality, the majority of effective
sonal characteristics that differ from those of nonleaders are outstanding in many characteristics but are
leaders. Based on their review of the type of research low on others. Another possible limitation to the trait
reported in this chapter, Kirkpatrick and Locke con- approach is that some leaders might be convinced that
cluded: “Leaders do not have to be great men or women they must be strong on one trait at the exclusion of its
by being intellectual geniuses or omniscient prophets polar opposite, such as always being extraverted and
to succeed. But they do need to have the ‘right stuff’ avoiding introversion.
and this stuff is not equally present in all people.”62 Peter Grauer, the CEO of Bloomberg Ltd.,
The current emphasis on emotional intelligence, cha- believes that a combination of opposite traits is often
risma, innovative thinking, and ethical conduct, which required for leadership effectiveness. For example, a
are really traits, attitudes, and behaviors, reinforces the leader who is a big-picture thinker might also need
importance of the trait approach. to be strong at details. He says that such a leader can
Understanding the traits of effective leaders serves give direction on little things and also encourage big
as an important guide to leadership selection. If we ideas.63
The Strengths and Limitations of the Trait Approach 47
A balanced perspective on the trait approach is that different combinations of traits. Visualize yourself as
certain traits, motives, and characteristics increase the managing a restaurant staffed by teenagers who had
probability that a leader will be effective, but they do never worked previously. You would need to emphasize
not guarantee effectiveness. The leadership situation warmth, enthusiasm, flexibility, and adaptability. Less
often influences which traits will be the most import- emphasis would be required on cognitive skills and the
ant. At the same time, different situations call for power motive.
Reader’s Roadmap
In this chapter, we focused on the traits, motives, and characteristics of the leader—their inner qualities. In the
next chapter, we dig further into leadership qualities by studying charismatic and transformational leadership.
Summary
The trait-based perspective of leadership contends intelligence and knowledge of the business or
that certain personal characteristics and skills con- group task (or technical competence). Practical
tribute to leadership effectiveness in many situa- intelligence contributes to cognitive intelligence.
tions. General personality traits associated with Creativity is another important cognitive skill for
effective leadership include (1) self-confidence; leaders, but effective leaders vary widely in their
(2) humility; (3) core self-evaluations; (4) trustwor- creative contributions. Insight into people and
thiness; (5) authenticity; (6) extraversion; (7) asser- situations, including the ability to make effective
tiveness; (8) enthusiasm, optimism, and warmth; judgments about business opportunities, also con-
and (9) sense of humor. tributes to leadership effectiveness. Farsightedness
Some personality traits of effective leaders are and conceptual thinking help leaders understand
closely associated with task accomplishment. Among the long-range implications of actions and policies
them are (1) proactive personality, (2) mindfulness, and to take an overall perspective.
(3) passion for the work and the people, (4) emo- The issue of whether leaders are born or bred
tional intelligence, (5) flexibility and adaptability, and frequently surfaces. A sensible answer is that the
(6) courage. Emotional intelligence is composed of traits, motives, and characteristics required for
four key domains: self-awareness, self-management, leadership effectiveness are a combination of hered-
social awareness, and relationship management. Each ity and environment.
domain has one or more associated competencies. The trait approach to leadership is supported
Certain motives and needs associated with by many studies showing that leaders are differ-
leadership effectiveness are closely related to task ent from nonleaders, and that effective leaders are
accomplishment. Among them are (1) the moti- different from less-effective leaders. Nevertheless,
vation to lead, (2) the power motive, (3) the drive the trait approach does not tell us which traits are
and achievement motive, (4) strong work ethic, and most important in which situations or how much of
(5) tenacity and resilience. a trait is required. Also, different situations call for
Cognitive factors are also important for leader- different combinations of traits.
ship success. They include cognitive (or analytical)
Key Terms
humility 28 mindfulness 36 cognitive factors 41
core self-evaluations 30 emotional intelligence 37 artificial intelligence (AI) 42
trust 30 flexibility 39 practical intelligence 42
authenticity 31 motivation to lead 39 insight 43
assertiveness 33 drive 40 Amazon.com 43
proactive personality 34 achievement motivation 41 farsightedness 43
Guidelines for Actions and Skill Developments
Because emotional intelligence is so important for understand that person’s perspective. Part of display-
leadership success, many organizations sponsor ing empathy is to listen carefully. An effective starting
emotional intelligence training for managers. Even point is, when talking with someone, do not reply
if emotional intelligence is really a group of traits, until you have taken the time to pause and under-
those component traits are important for leadership stand what the other person said.
success. One way to get started on improving emo- A few months later, obtain more feedback about
tional intelligence would be to attend such a training your ability to empathize. If you are making prog-
program. However, like all forms of training, emo- ress, continue to practice. Then, repeat these steps for
tional intelligence training must be followed up with another facet of emotional intelligence. As a result of
consistent and determined practice. A realistic start- this practice, you will have developed another valu-
ing point in improving your emotional intelligence is able interpersonal skill.
to work with one of its four components at a time, A constructive approach to applying trait theory
such as the empathy aspect of social awareness. to attain your goals in a given situation is to think
Begin by obtaining as much feedback as you through which combination of traits is the most
can from people who know you. Ask them if they likely to lead to positive outcomes in the situation
think you understand their emotional reactions, at hand. Finding the right cluster of traits to empha-
and how well they think you understand them. It is size is usually much more useful than emphasiz-
also helpful to ask someone from another culture ing one trait. You might be leading a group, for
or someone who is challenged by a severe disabil- example, that is worried because it needs a creative
ity how well you communicate with that person. (A idea to become more productive. Here you might
higher level of empathy is required to communicate emphasize your cognitive skills, be assertive about
well with somebody much different from you.) If expressing your ideas, and also express enthusiasm
you have external or internal customers, ask them about the group’s chances for success.
how well you appear to understand their position. Although personality traits are a stable part of an
Another way of gaining insight into one’s level of individual’s makeup, they usually lie on continuum
emotional intelligence would be a complete pro- from low to high. For example, people range in pro-
fessional assessment of EQ (emotional intelligence activity from very low proactivity to very high proac-
quotient), combined with an interview by a skilled tivity. Select a leadership trait that you would like to
professional to supplement the assessment. strengthen, such as proactivity. You can gain in pro-
If you find any area of deficiency, work on that activity by being aware of the importance to take the
deficiency steadily. For example, perhaps you are not initiative in a wide range of situations. For instance,
perceived as taking the time to understand a point you might volunteer to create a schedule for a series of
of view quite different from your own. Attempt to online meetings for your team. A standard approach
understand other points of view. Suppose you believe to becoming more optimistic is to think each day of
strongly that money is the most important motiva- three things you are grateful for in personal or work
tor for practically everybody. Speak to a person with life, such as, “I have to people on my team who are
a different opinion, and listen carefully until you dedicated to making the team a success.”
Discussion Questions and Activities 7. What personality and cognitive traits seem to be lack-
1. In the current era how feasible would it be for a ing in the endless stream of people who ruin their
leader to practically avoid emails, or other digital careers because of one or two social media posts?
communication, in a CEO role? 8. Provide an example of a leader you have observed
2. Identify two strong traits, motives, and character- who appears to have good cognitive intelligence,
istics of the current president of the United States. yet lacks practical intelligence.
Also identify two attributes that appear to be weak. 9. Which do you think is the most outstanding lead-
Explain your reasoning for both answers. ership trait, motive, or characteristic of the person
3. Suppose a college student graduates with a major teaching this class? Explain your answer.
for which they lack enthusiasm. What might this 10. If leadership ability is partially inherited, to what
person do about becoming a passionate leader? extent is it still worthwhile for a person without
4. What have you observed personally to be helpful any family members who have held leadership
about a leader displaying a sense of humor? positions to pursue a career as a high-level busi-
5. What would lead you to conclude that a leader was ness leader?
nonauthentic (phony)? 11. Many people who disagree with the trait approach
6. Under what circumstances do you think it is to leadership nevertheless still conduct interviews
acceptable for a leader to lose emotional control, when hiring a person for a leadership position.
such as ranting, swearing, or crying? Why is conducting such interviews inconsistent
with their attitude toward the trait approach?
Suzanne Expects Results What’s wrong?” Hank replied, “The sales slippage is
Suzanne is the CMO of an athletic clothing com- because of market factors. School enrollment at all
pany that specializes in team uniforms for high levels is down about 10 percent in our region. But I
schools, colleges, and sports leagues. Most of the am also having a couple of personal problems.”
sales are direct to the purchaser, but many sales Suzanne replied, “The market factors are a lit-
are also made to retailers, both physical stores tle bit plausible, but with great products like ours
and online. Lately Suzanne has been troubled we should be able to get around declines in the
by the performance of Hank, the company sales school population. Be aware personal problems
manager. Not only have sales declined about have no place in business. Get some outside help
2 percent, but Hank has also been taking much if you need to. When you are in the office or out in
longer to respond to emails and text messages. the field, you have to be at the top of your game.
Suzanne has also observed that Hank appears to No excuses. We have a business to run.”
be preoccupied and discouraged. With a distressed expression, Hank said, “I
Last week when Suzanne observed Hank know we have a business to run, and I am doing
looking sullen, she attempted to pick up his what I can to perform at my best. I will be fine
mood with a few phrases, such as “Why so glum real soon. One problem I have is that I have
chum?” and “Did you just lose $10,000 in a been diagnosed with the early stages of pros-
casino?” When her attempts to brighten Hank’s tate cancer. I have already begun treatment.
mood did not work, Suzanne scheduled an Another problem I am facing is that my son
in-person discussion with him. Suzzanne opened Todd is practically flunking out of high school.”
the meeting with these words: Looking a little exasperated, Suzanne replied,
“Hank, I wanted to talk with you directly. You “Pull yourself together Hank. Millions of men
are off your game. Your sales are slipping. When you have prostate cancer. It is good that you are
are in the office, you sometimes look like a zombie. being treated. Don’t worry too much about Todd
flunking out. Hire him a tutor, and then let him
worry about getting through high school. In the 2. H ow might have Suzanne displayed more
meantime. I expect you to pick up sales, and emotional intelligence in her meeting with
brighten up your mood.” Hank?
With his head bowed slightly, Hank left the 3. Identify a couple of specific aspects of
meeting with by saying, “I’ll do what I can to emotional intelligence in which Suzanne
improve things.” might improve.
4. How much emotional intelligence is Hank
Questions displaying?
1. How would you rate Suzanne’s level of
emotional intelligence?

One person plays the role of Suzanne who received a student plays the role of Hank who thinks he deserves
text message from Hank that he wants to meet with more sympathy from Suzanne, and will be more dra-
her again to discuss his performance problems. She matic about his personal problems. Run the role play
thought she had settled the issue, and thinks that for about ten minutes.
this time she will be even tougher on Hank. Another
A True Warrior Jumps into the Electric Car NIO, however, had developed a single-passenger
Race and Then Story Telling race car that had competed in major racing events
Padmasree Warrior, one of Silicon Valley’s best- for electric vehicles. The company plans to sell its
known technology executives, shifted industries electric cars first in China, then branch into other
in 2016 to be part of the global competition to markets, and then move into the U.S. market. NIO
develop electric automobiles. Several months is intent on competing directly with Tesla.
after leaving her position as chief technology offi- Warrior’s experience and values fit well into
cer at Cisco Systems Inc., she joined the Chinese the NIO’s mission, which reads in part: “Our aspi-
electric auto startup, NextEv Inc., that became ration is to shape an exciting lifestyle for our users
NIO USA Inc. Warrior was appointed as the com- by delivering next-generation connected vehicles.
pany’s U.S. chief executive officer and head of We are a company dedicated to becoming a user
software development. enterprise that transforms vehicle ownership to a
The Indian-born Warrior said that she was pure delight. We are passionate about user experi-
looking to enter a new field after her days at Cisco ence.” Warrior envisioned developing a new mode
where her thirty years of technology experience of transportation that leverages all of the technol-
would be relevant. “I wanted to be part of creating ogy advances that have been incorporated into the
something that is bigger and different,” she said. Internet and mobile devices.
When Warrior joined NIO, the company had not As the leader of NIO USA, Warrior was com-
yet produced electric cars for the consumer market. mitted to creating a culture that outlasts changes
Leadership Case Problem B 51
in technology. The culture should be passionate same industry sometimes for their entire lives.”
about starting a movement in an industry with a From her viewpoint, it is better to go after new
hundred-year legacy. She envisioned the new cul- opportunities and take new challenges, and see
ture to be international in scope, sparked by smart what else you can do with your career.
people who work collaboratively to combine their
experiences from different specialties. She believes
Questions
that hiring great talent is the leader’s job. Warrior
handpicked the first 100 hires to NIO USA. A key 1. To what extent to do think that Warrior
selection criterion was whether the candidate was was taking on too big a risk by trying to be
passionate about developing a car that will be the competitive in the electric car business?
smartest device people will own. She contends that 2. To what extent to do think that Warrior
passion is more important than years in a job when was taking on too big a risk by trying to be
selecting among job candidates. “In my book, tech competitive in the social platform business?
chops + drive + hunger to learn scores over experi- 3. W hich personality-related leadership traits
ence any day.” does Warrior appear to demonstrate?
In December 2018, Warrior left NIO USA to 4. Which cognitive skills does Warrior possess
found and become CEO and president of Fable that were particularly relevant in her role as
Group Inc., a social platform for book clubs. CEO of NIO and then Fable?
The vision for Fable is to bring the world of 5. What is your evaluation of Warrior’s belief that
stories to all people. The mission of Fable is to passion about electric cars and technology
deliver the world’s best social experiences with skills are more important than experience in
exceptional service of mental wellness. Fable hiring people to work at the company?
can be considered a social media app for book Sources: Original story created from facts and
lovers. Warrior believes that she is creating a observations in the following sources: Maria Aspan,
social platform that is less controversial than “Can Former CISCO Chief Technology Officer
several of the best-known social media websites. Padmasree Warrior Build a Better Social Network
She said, “I love reading, and I always have—so for Book Lovers?” Fortune (www.urtune,com),
I’m applying everything thing I’ve learned in the January 14, 2012, pp. 1–6; “Padmasree Warrior:
tech industry into what we call a tech company Founder, CEO and President. Fable Group Inc.,”
Microsoft (https://news.microsoft.com), 2021,
with the soul of an artist.”
pp. 1–2; Sarah Buhar, “Padmasree Warrior On Why
Warrior says that as a leader she is passion-
She Chose To Take On Her New Role AS NextEv
ate about technology, entrepreneurship, and CEO,” TC (httpos://techcrunch.com), December 16,
global business. She says that she is a tireless 2015. pp. 1–5; Claire Dodson, “The Road Warrior:
advocate on behalf of women in technology. Padmasree Warrior,” Fast Company, May 2016, p. 20;
Warrior advises young people to take risks in Don Clark, “Warrior Joins Electric-Car Startup,” The
their career. She says, “A lot of people stay in the Wall Street Journal, December 16, 2015, p. B5.

One student plays the role of Padmasree Warrior who being interviewed by such a well-known technology
is interviewing a candidate for a marketing position leader. The candidate wants to stand out by demon-
at NIO USA. She believes strongly that “technology strating passion for electric cars, technology, and mar-
chops” and passion are more important than experi- keting a consumer product. Run the role play for about
ence in filling this marketing position. Another student ten minutes, with observers providing some feedback
plays the role of the candidate who is excited about after the role players have completed their task.
For this addition to your leadership portfolio, first select five Second, select several leadership traits, motives, or charac-
of the traits, motives, and characteristics described in this teristics that you think you need to develop to enhance your
chapter that you think you have already exhibited. For each leadership skills. Explain why you think you need this devel-
of these attributes, explain why you think you have it. An ex- opment, and how you think you might obtain it. An example
ample would be as follows: would be as follows:
Insight into people and situations: As a restaurant Passion for the work and people: So far, I am not
manager, my job was to help hire an assistant particularly passionate about any aspect of work or
manager who would share some of the responsibilities any cause, so it is hard for me to get very excited
of running the restaurant. I invited a friend of mine, about being a leader. I plan to read more about my
Laura, to apply for the position, even though she had field and then interview a couple of successful people
never worked in a restaurant. I noticed that she was in this field to find some aspect of it that would be a
businesslike and also had a good touch with people. joy for me to get involved in.
Laura was hired, and she proved to be a fantastic
assistant manager. I obviously sized her up correctly.
Analyzing the Traits, Motives, and Characteristics of a Well-Known Leader

Choose one or two well-known leaders as a topic for discus- prime minister, or (3) a well-known NFL or professional soc-
sion. Well-known in this context refers to somebody whom cer coach.
the majority of the class has observed, either in person or The next step is for the class to discuss this leader’s traits,
through the media, including the Internet, newspapers, and motives, and characteristics, using ideas from this chapter
on YouTube. Take a few class moments to agree on which of the text. Look to see if you can find consensus about the
leader or leaders will be analyzed. Possibilities include leader’s strongest and weakest personal attributes.
(1) your college president, (2) your country president or
Notes
1. Rachel Emma Silverman, “How a Chief Exec- Foundation (http://bassouldignityfoundation.

utive With Dyslexia and ADDH Runs His Com- org), April 7, 2021, pp. 1–7.
pany: Selim Bassoul of Middleby Corp. Tries to 2. Scott DeRue, Jennifer D. Nahrgang, Ned Wellman,
Focus on the Big Picture,” The Wall Street Journal, and Stephen E. Humphrey, “Trait and Behav-
May 17, 2017, p. R7; “Selim Bassoud, Middleby ioral Theories of Leadership: An Integration and
Corporation,” Conscious Capitalism (www Meta-Analytic Test of Their Relative Validity,”
.consciouscapitalism.org), 2021, pp. 1–4; Danny Personnel Psychology, no. 1, 2011, pp. 7–52; Scott
Vena, “Middleby’s Longtime CEO Steps Down,” DeRue, Jennifer D. Nahrgang, Ned Wellman,
The Motley Fool (www.fool.com), 2021, pp. 1–3; and Stephen E. Humphrey, “Trait and Behav-
“Letter from Selim Bassoul,” Bassoul Dignity ioral Theories of Leadership: An Integration and
Notes 53
Meta-Analytic Test of Their Relative Validity,” Implications for Research and Practice,” Journal of
Personnel Psychology, no. 1, 2011, pp. 7–52. Applied Psychology, August 2002, pp. 611–628.
3. Stephen J. Zaccaro, “Individual Differences and 16. David De Cremer et al., “The Trickle-Down Effects
Leadership: Contributions to a Third Tipping Point,” of Perceived Trustworthiness on Subordinate
The Leadership Quarterly, August 2012, pp. 718–728. Performance,” Journal of Applied Psychology,
4. George P. Hollenbeck and Douglas T. Hall, December 2018, pp. 1335–1357.
“Self-Confidence and Leader Performance,” Orga- 17. Bill George, Peter Sims, Andrew N. McClean,
nizational Dynamics, no. 3, 2004, p. 254. and Diana Mayer, “Discovering Your Authentic
5. Sally Ward, “Invaluable: Appropriate Self-assur- Leadership,” Harvard Business Review, February
ance,” Democrat and Chronicle, December 15, 2015, 2007, p. 130.
p. 6A. 18. Interview of George by James Tehrani, “‘Northern
6. Quoted in Brian O’Keefe, “Battle-Tested: How a Exposure’ to Leadership,” Workforce, September
Decade of War Has Created a New Generation of Elite 2015, p. 12.
Business Leaders,” Fortune, March 22, 2010, p. 112. 19. Suzanne J. Peterson, Fred O. Walumba, Bruce J.
7. Robert Hogan as cited in Neal Burgis, “Importance Avolio, and Sean T. Hannah, “The Relationship
of Humility in Your Leadership,” www.successful Between Authentic Leadership and Follower Job
-solutions.com, February 29, 2019, p. 1. Performance: The Mediating Role of Follower
8. “Humble Leadership: What Is it?” https:// Positivity in Extreme Contexts,” The Leadership
humaninterest.co.za, 2020. Quarterly, June 2012, pp. 502–516.
9. Carol Dweck, “What having a ‘Growth Mindset’ 20. Matthias Weiss, Stefan Razinskas, Julia Backman,
Actually Means,” Harvard Business Review (hbr. and Martin Hoge, “Authentic Leadership, and
org), January 13, 2016, pp. 1–3. Leaders’ Mental Well-Being: An Experience
10. Christopher Nelson, “Leadership with a Touch of Sampling Study,” The Leadership Quarterly, April
Humility,” The Imaginative Conservative (www 2018, pp. 309–321.
.theimaginativeconservative.org), February 26, 21. Timothy A. Judge, Joyce E. Bono, Remus Ilies, and
2015, p. 2. Megan W. Gerhardt, “Personality and Leadership:
11. Xin Qin et al, “The Double-Edged Sword of Leader A Qualitative and Quantitative Review,” Journal of
Humility: Investigating When and Why Leader Applied Psychology, August 2002, pp. 765–780.
Humility Promotes Versus Inhibits Subordinate 22. Research reported in Judge, Picccolo, and Kosalka,
Deviance,” Journal of Applied Psychology, July “The Bright and Dark Sides of Leader Traits,”
2020, p. 693. p. 865.
12. Timothy A. Judge, Ronald F. Piccolo, and Tomek 23. Meghan McGrath, “Introverts Can Make Great
Kosalka, “The Bright and Dark Sides of Leader Leaders,” Chief Learning Officer (www.clomedia
Traits: A Review and Theoretical Extension of the .com), November 10, 2015, pp. 1–3.
Leader Trait Paradigm,” The Leadership Quarterly, 24. Joel Garfinkle, “Introverted Leaders are Hidden
December 2009, p. 866. Talent Who Can Move Your Company Forward,”
13. Roy J. Lewicki, Daniel McAllister,, and Robert J. Smart Brief (www.smartbrief.com), January 18,
Bies, “Trust and Distrust: New Relationships and 2012, pp. 1–3.
Realities,” Academy of Management Review, July 25. Jared Sandberg, “The Office Pessimists May Not
1998, p. 439. Be Lovable, but Are Often Right,” The Wall Street
14. Holly Henderson Brower, Scott Wayne Lester, and M. Journal, November 27, 2007, p. B1.
Audrey Korsgaard, “Want Employees to Trust You? 26. Shawn Achor and Michelle Gieta, “What Leading
Show You Trust Them,” Harvard Business Review with Optimism Really Looks Like,” Harvard Business
(https://hbr.or), July 5, 2017, pp. 1–5; Roy J. Lewicki, Review (https://hbr.org), June 4, 2020, pp. 1–6.
Daniel McAllister, and Robert J. Bies, “Trust and 27. Cecil D. Cooper, Dejun Tony Kong, and Craig
Distrust: New Relationships and Realities,” Academy B. Crossley, “Leader Humor as an Interpersonal
of Management Review, July 1998, p. 439; David Resource: Integrating Three Theoretical
Horsager, The Trust Edge: How Top Leaders Gain Perspectives,” Academy of Management Journal,
Faster Results, Deeper Relationships, and a Stronger April 2028, pp. 769–796.
Bottom Line (Minneapolis, MN: Summerside Press, 28. Eric J. Romeo and Kevin W. Cruthirds, “The
2011); “A Conversation with Rick Miller: Build Trust Use of Humor in the Workplace,” Academy of
Over Time,” Executive Leadership, April 2015, p. 3. Management Perspectives, May 2006, pp. 60, 63–64;
15. Kurt T. Kirks and Donald L Ferrin, “Trust Kai Chi Yam et al., “The Mixed Blessing of Leader
in Leadership: Meta-Analytic Findings and Sense of Humor: Examining Costs and Benefits,”
Academy of Management Journal, February 2018, of Great Performance,” Harvard Business Review,
pp. 348–369. December 2001, pp. 42–51.
29. Charn McAllister, Sherry Moss, and Mark J. 40. Stéphane Côté, Paulo N. Lopes, Peter Salovey, and
Martinko, “Why Likeable Leaders Seem More Christopher T. H. Miners, “Emotional Intelligence
Effective,” Harvard Business Review (https://hbr and Leadership Emergence in Small Groups,” The
.org), October 29, 2019, pp. 1–8. Leadership Quarterly, June 2010, pp. 496–508.
30. Thomas S. Bateman and J. Michael Crant, 41. Goleman, Boyatzis, and McKee, “Primal
“The Proactive Component of Organizational Leadership,” pp. 42–51.
Behavior: A Measure and Correlates,” Journal of 42. “Psychological Safety, Emotional Intelligence, and
Organizational Behavior, March 1993, p. 103. Leadership in a Time of Flux,” McKinsey Quarterly
31. Uta K. Bindle and Sharon Parker, “Proactive Work (www.mckinsey.com), July 2, 2020, p. 4.
Behavior: Forward Thinking and Change-Oriented 43. John Antonakis, “Is Emotional Intelligence a Good
Action in Organizations,” in Sheldon Zedeck (ed.), Measure of Leadership Ability? No, the Scientific
APA Handbook of Industrial and Organizational Evidence Isn’t There,” HR magazine, November
P s y c h o l o g y ( Wa s h i n g t o n , D . C . : A m e r i c a n 2015, p. 23; Antonakis, Neal M. Ashkanasy, and
Psychological Association, 2010). Marie T. Dasborough, “Does Leadership Need
32. Craig D. Crossley, Cecily D. Cooper, and Tara Emotional Intelligence?” The Leadership Quarterly,
S. Wernsing, “Making Things Happen Through April 2009, pp. 247–26.
Challenging Goals: Leader Proactivity, Trust, and 44. John C. Maxwell, Rising Above Fear: The True
Business-Unit Performance,” Journal of Applied Nature of Courage,” Success. November/December
Psychology, May 2013, pp. 540–549. 2020, pp. 30–31.
33. Ute R. Hülsheger, “Benefits of Mindfulness at Work: 45. Katie L. Badura, “Motivation to Lead: A Meta-
The Role of Mindfulness in Emotion Regulation, Analysis and Distal-Proximal Model of Motivation
Emotional Exhaustion, and Job Satisfaction,” and Leadership,” Journal of Applied Psychology,
Journal of Applied Psychology, March 2013, p. 310. April 2020, pp. 331–354.
34. Manish Chopra, “Want to Be a Better Leader? 46. David C. McClelland and Richard Boyatzis,
Observe More and React Less,” McKinsey Quarterly “Leadership Motive Pattern and Long-Term
(www.mckinsey.com), February 2016, pp. 1–6; Success in Management,” Journal of Applied
Christy Cassia, “The Truly Mindful Workplace: A Psychology, December 1982, p. 727
Reality Whose Moment is Arriving,” UCSD Center 47. Locke and Associates, The Essence of Leadership:
for Mindfulness (http://ucsdefm), December 11, The Four Keys to Leading Successfully (New York:
2012, pp. 1–4; Leigh Buchanan, “13 Ways of Looking Lexington/Macmillan, 1992), p. 22.
at a Leader,” www.inc.com/magazine, May 29, 2012, 48. Locke and Associates, The Essence of Leadership,
pp. 1–5; Erika Garms, “Practicing Mindful p. 22.
Leadership,” www.td.org, March 8, 2013, pp. 1–5. 49. John B. Miner, Normal R. Smith, and Jeffrey S.
35. “Starbucks: More Than a Caffeine High,” Executive Bracker, “Role of Entrepreneurial Task Motivation
Leadership, August 2006, p. 4. in the Growth of Technologically Innovative Firms,”
36. Rashimah Rajah, Zhaloi Song, and Richard D. Journal of Applied Psychology, August 1989, p. 554.
Arvey, “Emotionality and Leadership: Taking Stock 50. Angela Duckworth and Lauren Eskreis-Winkler,
of the Past Decade of Research,” The Leadership “True Grit,” Observer (www.psychologicalscience.
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37. Daniel Goleman, “What Makes a Leader?” Harvard 51. Susan Carey, “CEO Says United Now Ready for
Business Review, November–December 1998, Liftoff,” The Wall Street Journal, September 1, 2016,
p. 94; Goleman and Richard E. Boyatis, “Emotional p. B3.
Intelligence Has 12 Elements. Which One Do 52. Timothy A. Judge, Amy E. Colbert, and Remus
You Need to Work On?” Harvard Business Review Ilies, “Intelligence and Leadership: A Quantitative
(https://hrb.org), February 6, 2017, pp. 1–6; Annie Review and Test of Theoretical Propositions,”
McKee, “How the Most Emotionally Intelligent Journal of Applied Psychology, June 2004,
CEOs Handle Their Power,” Harvard Business pp. 542–552.
Review (https:hbr.org) December 8, 2016, p. 4. 53. Sam Bourton, Johanne Lavoie, and Tiffany Vogel,
38. Travis Bradberry, “Is Emotional Intelligence a « Will Artificial Intelligence Make You a Better
Good Measure of Leadership Ability? Yes,” HR Leader?” McKinsey Quarterly (www.mckinsey.com),
Magazine, November 2015, p. 22. April 2018, pp. 1–4.
39. Daniel Goleman, Richard Boyatzis, and Annie 54. Robert J. Sternberg, “The WICS Approach
McKee, “Primal Leadership: The Hidden Driver to Leadership: Stories of Leadership and the
Notes 55
Structures and Processes That Support Them,” The 60. Julian Barling, The Science of leadership: Lessons
Leadership Quarterly, June 2008, pp. 360–371. from Research for Organizational Leaders (New
55. Michael D. Mumford, Logan L. Watts, and Paul York: Oxford University Press, 2014), p. 143.
J. Partlow, “Leader Cognition: Approaches and 61. Adrienne Fox, “Leading with the Brain: David Rock
Findings,” The Leadership Quarterly, June 2015, Explains How Scientists’ Growing Understanding
p. 303. of the Brain Illuminates Techniques for Leadership
56. Boris Groysberg, L. Kevin Kelly, and Bryan and Decision Making,” HR Magazine, June 2011,
McDonald, “The New Path to the C-Suite,” Harvard pp. 52–53.
Business Review, March 2011, p. 66. 62. Shelly Kirkpatrick and Edwin A. Locke, “Leadership:
57. Sydney Finkelstein, “Don’t Be Blinded by Your Do Traits Matter?” Academy of Management
Own Expertise,” Harvard Business Review, May– Executive, no. 2, 1991, p. 59.
June 2019, pp. 153–158. 63. “Bloomberg’s Peter Grauer: How the ‘And Factor’
58. Jessica Shambora and Beth Kowitt, “The Queen of Defines Leadership,” Knowledge@Wharton (http://
Pop,” Fortune, September 28, 2009, p. 108. knowledge.wharton.upenn.edu/), July 31, 2013, p. 1.
59. “How Stanford Is Grooming Next Business
Leaders,” The Wall Street Journal, May 29, 2007,
p. B6.
3
Chapter
Charismatic and
Transformational Leadership
Learning Objectives
After studying this chapter and doing the exercises, you 3.4 Describe the communication style of charismatic leaders.
should be able to 3.5 Assemble an action plan for developing your charisma.
3.1 Enumerate the meanings of charisma and three types of 3.6 Cite the nature of transformational leadership.
charismatic leaders.
3.7 Identify several of the impacts of charismatic and
3.2 Describe many of the traits and behaviors of transformational leadership on performance and behavior.
charismatic leaders.
3.8 Articulate the concerns about charismatic leadership from
3.3 Break down the visionary component of charismatic the scientific and moral standpoint.
leadership.
Chapter Outline
The Meanings of Charisma Transformational Leadership

Charisma: A Relationship Between the Leader, Group How Transformations Take Place
Members, and Other Stakeholders Attributes of Transformational Leaders
The Effects of Charisma The Impact of Transformational and Charismatic
Three Types of Charismatic Leaders Leadership on Performance and Behavior
Characteristics of Charismatic Leaders Concerns About Charismatic and Transformational
The Narcissism Component of Charismatic Leadership Leadership
The Vision Component of Charismatic Leadership Challenges to the Validity of Charismatic Leadership
The Communication Style of Charismatic Leaders The Dark Side of Charismatic Leadership
Leadership by Inspiration Summary
Eye-Directed Gazing Key Terms
Leadership by Storytelling Guidelines for Actions and Skill Development
Extensive Use of Social Networking Leadership Case Problem A
The Development of Charisma Leadership Case Problem B
Techniques for Developing Charisma Notes
I
n 2020, Fortune magazine ranked Julie Sweet, the CEO to becoming CEO in September 2019, Sweet served as the
and board member of the professional services giant chief executive officer of the company’s North American
Accenture, as the most powerful woman in business. Prior business. Sweet was previously the company’s general
56
counsel, secretary, and general compliance officer for five At Accenture, Sweet has made promoting women a priority,
years. establishing aggressive targets for gender parity, and working
Accenture has over $44 billion in annual revenues, and over hard to move more women into the executive ranks. Accenture
500,000 employees worldwide. For many years, the company has established the goal of by 2025 having 50/50 gender parity
has focused on cloud, digital, and security businesses. across the organization, and for the managing director role to
Among her accomplishments, Sweet led the company attain 25 percent women.
through the COVID-19 pandemic, while simultaneously redefin- When Sweet became CEO of Accenture North America, the
ing Accenture’s growth model, strategy, purpose, and brand. All company became the first professional services firm to disclose
these accomplishments took place during her first year as CEO. all its numbers around Blacks, Hispanics, Asians, veterans, per-
A new dimension Fortune used in ranking the most influential sons with disability, and gender. She said the company revealed
woman was, “Is the leader using their influence to shape the this information because transparency builds trust and it holds
company and the wider world for the better?” Sweet has been the company accountable for making progress.
using her role as CEO to place additional emphasis on important When hiring new people into Accenture, Sweet emphasizes
issues such as environmental sustainability and racial equality. two attributes. The first is curiosity, because the new normal is
Sweet’s efforts helped Accenture clients navigate the continuous learning. The second attribute is leadership in the
changes of a post-COVID environment and transform their busi- sense of having the courage to deliver tough messages to cli-
nesses, to the benefit of all stakeholders. For example, Accen- ents. Accenture clients are constantly saying, “The most import-
ture connected the United Kingdom’s 1.2 million National Health ant thing that you do is tell me what I need to hear, not what I
Service workers remotely. As part of the project, Accenture part- want to hear.” Sweet believes that the CEO of today must articu-
nered with Salesforce on contact tracing and vaccine manage- late moral purpose and compass to their stakeholder. They need
ment technology. a message that inspires purpose in people.
During an interview Sweet said, “Our new purpose is to During the pandemic, many CEOs told Sweet they thought
deliver on the promise of technology and human ingenuity. And they needed to get rid of all their real estate. She told them not
our new brand campaign is, ‘Let there be Change,’ because we to move too fast. Even though there are many ways to work re-
have only one choice, and that is to embrace change and make motely and collaboratively, the human connection is still import-
it for the benefit of all.” Accenture is helping clients reimagine ant. In-person collaboration is still critical.
everything about their business, and rebuilding industries and Sweet holds a Bachelor of Arts degree from Claremont
economies for the benefit of all. Sweet believes technology to- McKenna College and a Juris Doctor from Columbia Law
day is our lifeline. School.
The words and actions of Julie Sweet illustrate a couple charismatic leaders including narcissism, how such
of key points about charismatic and transformational leaders form visions, and how one develops charisma.
leaders. They think big, are committed to their strong We also describe the closely related and overlapping
beliefs, and are willing to pursue a bold new path. The subject of transformational leadership. Finally, we look
study of charismatic and transformational leadership, at the dark side of charismatic leadership.
an extension of the trait theory, has become an import-
ant way of understanding leadership. One of the many
reasons that charisma is important is that it facilitates
leaders in carrying out their roles. Charisma makes the The Meanings of Charisma
leader’s job much easier. In today’s fiercely competitive
global economy, leaders need to energize their constitu- Learning Objective 3.1 Enumerate the meanings of
ents more than ever. Helping people attain stretch goals charisma and three types of charismatic leaders.
and understand why change is necessary is done more
quickly with charisma than relying solely on reasoning Charisma, like leadership itself, has been defined in
and logic.2 (A stretch goal tests most of your capabilities various ways. Nevertheless, there is enough consis-
but is not so difficult to attain that you are likely to fail.) tency among these definitions to make charisma a use-
In this chapter, we examine the meaning and ef- ful concept in understanding and practicing leadership.
fects of charismatic leadership, the characteristics of Charisma is a Greek word meaning “divinely inspired
58 Chapter 3 Charismatic and Transformational Leadership
gift.” In the study of leadership, charisma is a special Charisma: A Relationship Between

quality of leaders whose purposes, powers, and extraor- the Leader, Group Members, and
dinary determination differentiate them from others.3 Other Stakeholders
In general use, the term charismatic means to have a
charming and colorful personality, such as that shown A key dimension of charismatic leadership is that, like
by many talk-show hosts. all leadership, it involves a relationship or interaction
The various definitions of charisma have a uni- between the leader and the people being led. Char-
fying theme. Charisma is a positive and compelling ismatic leaders use impression management to de-
quality that makes many others want to be led by the liberately cultivate a certain relationship with group
person that has it. The phrase many others is chosen members. In other words, they take steps to create a
carefully. Few leaders are perceived as charismatic favorable, successful impression, recognizing that the
by all of their constituents. A case in point is the late perceptions of constituents determine whether they
Steve Jobs of Apple Inc., whose name surfaces fre- function as charismatic leaders.8 Impression manage-
quently in discussions of charisma. Fortune magazine ment seems to imply that these leaders are skillful ac-
once declared Jobs to be the CEO of the Decade in tors in presenting a charismatic face to the world. But
part because he had cheated death (overcome pancre- the behaviors and attitudes of truly charismatic lead-
atic cancer for a while) and changed our world. 4 In ers go well beyond superficial aspects of impression
contrast, a news reporter and novelist described Jobs management, such as wearing fashionable clothing or
as “a brilliant but short-tempered figure known for his speaking well. For example, a truly charismatic leader
outsized ego and penchant for control.” He was also will work hard to create positive visions for group
known to be stubborn and arrogant. 5 Furthermore, members.
Jobs was cruelly insulting toward people who chal- A notable aspect of charismatic and transforma-
lenged him. Such behavior is hardly a characteristic of tional leaders is that their influence extends beyond the
an inspiring leader. immediate work group and beyond reporting relation-
Given that charisma is based on perceptions, an ships. An example is that some consumers are influ-
important element of charismatic leadership involves enced to purchase products from a company, and some
the attributions made by group members about the suppliers want to do business with it, based partly on
characteristics of leaders and the results they achieve. the charisma of a company leader.9 An example is Elon
According to attribution theory, if people perceive a Musk the flamboyant CEO of Tesla who inspires many
leader to have a certain characteristic, such as being people in the community to purchase a Tesla EV.
visionary, the leader will more likely be perceived as
charismatic. Attributions of charisma are important
because they lead to other behavioral outcomes, such The Effects of Charisma
as commitment to leaders, self-sacrifice, and high
The study of charisma grows in importance when its
performance.
effects are recognized, such as whether by being char-
A study of attributions and charisma found that the
ismatic a leader can enhance productivity, lower ac-
network a person belongs to influences the attributions
cidents, and enhance job satisfaction. Much of the
the person makes. The subjects in the study were po-
impact of charisma is based on the positive affect
lice workers who rated the director of a police organi-
(emotion) the charismatic leader triggers among the
zation, and students in an introductory business course
group members. A recent theoretical analysis con-
who rated the charisma of their professors. The study
cluded that charismatic leaders elicit strong emotions
found that network members influenced to some extent
from followers which encourage devotion and action.
whether the study participants perceived their leader
In turn, these emotions influence the effects of cha-
or professor to be charismatic and that perceptions
risma. For example, if a charismatic leader’s person-
of charisma were the closest among friends within
ality and behavior triggered devotion, group members
networks.6 What about you? Are your perceptions of
would work tirelessly to attain workgroup goals. Sev-
the charisma of your professors influenced by the opin-
eral of the more applied propositions stemming from
ions of your network members?
the analysis follow:10
A study of both U.S. presidential elections and busi-
ness organizations conducted by Philippe Jacquart and ● When charismatic leaders are appealing to a spe-
John Antonakis points to the relevance of charisma as cific emotion to motivate followers, they will appeal
a leadership attribute. It was shown that a charismatic to values that fit the emotion they are attempting to
leader was more likely to be reelected as president or elicit. Suppose a leader is attempting to get group
reappointed as a CEO. Past performance was also a key members angry (the emotion of anger) so they will
factor for a U.S. president or CEO to be reelected or perform better against competition. The leader
reappointed.7 might appeal to the value of pride.
● When charismatic leaders are appealing to a spe- Following the distinction made for the power mo-
cific emotion to motivate subordinates, the emotion tive, some charismatic leaders use their power for the
they display will fit the emotion they are attempting good of others. A socialized charismatic is a leader
to elicit. Suppose a leader is attempting to appeal to who restrains the use of power in order to benefit oth-
the emotion of joy among subordinates, the leader ers. This type of leader also attempts to bring group
will express joy. members’ values in line with that person’s values. The
● Charisma will be attributed to leaders according to socialized charismatic formulates and pursues goals
their degree of success in eliciting emotions from that fulfill the needs of group members and provide
group members. Simply put, if your leader fre- intellectual stimulation to them. Followers of social-
quently triggers emotions in you, particularly those ized charismatics are autonomous, empowered, and
of a positive nature, you will consider that leader to responsible. A study conducted in a healthcare orga-
be charismatic. nization indicated that direct reports of leaders per-
ceived to be socialized charismatics are less likely to
A group of researchers conducted a study of fire- engage in workplace deviance (e.g., lying, stealing,
fighters and their leaders to explore how the emotional and cheating). Part of the reason is that the social-
component of charisma affects the mood and happi- ized charismatic imparts positive values to group
ness of subordinates. The firefighter study followed members.13
a preliminary laboratory study with college students The effect of the socialized charismatic on followers
designed to explore how the leader’s emotion might provides more insight into this type of charismatic. In
affect subordinate behavior. The field study involved the socialized relationship, the followers have a clear
216 firefighters and 48 officers. Happiness, including sense of who they are and a clear set of values. The
positive affect and negative affect (unhappiness), was charismatic relationship gives them an opportunity to
measured through a questionnaire. Leader charisma express their important values within the framework
was measured by a questionnaire quite similar to one of being a group member, such as wanting to work
presented later in this chapter. The results suggested together to preserve the planet. In a socialized rela-
that firefighters under the command of a charismatic tionship, the followers derive a sense of direction and
officer were happier than those under the command self-expression not from identifying with the leader but
of a noncharismatic officer. Charismatic leaders who from the leader’s message.14 The message of the social-
expressed positive emotion and thoughts tended to ized charismatic in this situation might be, “We want
have an even stronger impact on the positive emo- to make money but we want to contribute to a sustain-
tional state of firefighters. The positive affect of the of- able environment at the same time.”
ficers also tended to reduce negative affect among the A second type of charismatic leader is the
firefighters. personalized charismatic. Such individuals serve
A conclusion of the study going beyond firefighters primarily their own interests and so exercise few re-
is that one of the ways by which charismatic leaders straints on their use of power. Personalized charismat-
emotionally touch subordinates is through enhanc- ics impose self-serving goals on constituents, and they
ing their positive affect. Furthermore, happier leaders offer consideration and support to group members only
spread their positive mood to group members.11 when it facilitates their own goals. Followers of person-
Another major impact of a charismatic leader in alized charismatics are typically obedient, submissive,
a senior-level position is that the leader leaves a per- and dependent. They also identify more with the leader
sonal stamp on the organization. For example, Mark than the leader’s message and therefore might follow
Zuckerberg, the CEO of Facebook, has become one of the leader down an unethical path, such as granting
the world’s best-known business leaders. At the same homeowner loans that will most likely result in a high
time, he is “the face of Facebook” whether or not one foreclosure rate.
approves of his behavior. The celebrity charismatic can be found in organi-
zational life as well as in the political and entertain-
ment realms. Charismatic people of this type may
Three Types of Charismatic Leaders
overlap with the other types such as being socialized
The everyday use of the term charisma suggests that and personalized. Mark Cuban, the owner of the Dal-
it is a straightforward and readily understood trait. las Mavericks and member of the television show
As already explained, however, charisma has different Shark Tank, has evolved into a celebrity CEO. He has
meanings and dimensions. As a result, charismatic been described as “pugnaciously outspoken,” and
leaders can be categorized into various types, with takes stands on social issues such as whether or not to
the three most relevant for today described here: so- play the national anthem at National Basketball Asso-
cialized charismatics, personalized charismatics, and ciation (NBA) games. He has been both in favor of and
celebrities.12 against playing the anthem.15
and frequent (nonsexual) touching of group members, is

Characteristics of Charismatic also characteristic of charismatic leaders.
Leaders Another trait of charismatic leaders is that they
romanticize risk. They enjoy risk so much that they
Learning Objective 3.2 Describe many of the traits and feel empty in its absence. Jim Barksdale, now a ven-
behaviors of charismatic leaders. ture capitalist for online startup companies and former
The outstanding characteristic of charismatic leaders is CEO of Netscape, says that the fear of failure is what
that they can attract, motivate, or lead others. They also increases your heart rate. As great opportunists, charis-
have other distinguishing characteristics. Because cha- matic people yearn to accomplish activities others have
risma is a key component of transformational leadership, never done before. Risk taking adds to a person’s cha-
many of these characteristics also apply to transforma- risma because others admire such courage. In addition
tional leaders. A transformational leader is one who to treasuring risk, charismatic leaders use unconven-
brings about positive, major changes in an organization. tional strategies to achieve success.
Many charismatic leaders, however, are not transforma- Another characteristic observed in many charis-
tional. Although they inspire people, they may not bring matic leaders is that they challenge, prod, and poke.
about major organizational changes. As we look at the They test your courage and your self-confidence by ask-
characteristics of charismatic leaders,16 you will note that ing questions like “Do your employees really need you?”
many of these characteristics apply to leaders in general. Larry Elison, the celebrity charismatic who is founder
First, charismatic leaders are visionary because and CEO of Oracle Corporation, often asks workers to
they offer an exciting image of where the organization explain how their job contributes to the organization.
is headed and how to get there. Charismatic leaders Research conducted by William von Hippel of the
also possess masterful communication skills. To inspire University of Queensland suggests that people who think
people, the charismatic leader uses colorful language fast tend to be perceived as charismatic. Participants in
and exciting metaphors and analogies. (More about the study were given intelligence and personality tests,
the communication skills of charismatic leaders is pre- and then asked thirty common-knowledge questions,
sented later in this chapter.) Another key characteris- such as “How many continents are there?” Participants
tic is the ability to inspire trust. Constituents believe also rated their friends’ charisma and social skills. Indi-
so strongly in the integrity of charismatic leaders that viduals who answered the questions more rapidly were
they will risk their careers to pursue the chief’s vision. perceived to be more charismatic regardless of their
Charismatic leaders are also able to make group mem- cognitive ability, personality, or knowledge.17
bers feel capable. Sometimes they do this by enabling Another major characteristic of charismatic lead-
group members to achieve success on relatively easy ers is amalgam of the ideas already introduced: Be-
projects. They then praise the group members and give ing dramatic and unique in significant, positive ways
them more demanding assignments. is a major contributor to charisma. This quality stems
Charismatic people are typically tactful in social sit- from a combination of factors, such as being energetic,
uations based partly on their ability to read other peo- self-promotion, romanticizing risk, and being emotion-
ple’s emotions (part of emotional intelligence). Related ally expressive. The late leadership scholar Warren G.
to reading emotions is the ability to connect with peo- Bennis contends that great leaders, particularly those
ple, as in the now overdone phrase, “I feel your pain.” in public life, are great actors. The effective leader sells
For example, during a severe business downturn, a people on a vision to elevate their spirits.18
company leader might say, “I know a lot of you are A characteristic of many charismatic leaders that
worried about losing your jobs. Working with you as a can backfire is hubris, a tendency to hold an overly con-
team, we are fighting to avoid layoffs.” fident view of one’s capabilities, and to abuse power for
In addition, charismatic leaders demonstrate an en- their own selfish goals.19 Upon his first week in office,
ergy and action orientation. Like entrepreneurs, most the CEO of an industrial company fired the entire sales
charismatic leaders are energetic and serve as role mod- staff in a display of hubris and drama. The subsequent
els for getting things done on time. Emotional expressive- transition to distributors and online selling was slow
ness and warmth are also notable. A key characteristic and awkward, and the company suffered financially.
of charismatic leaders is the ability to express feelings To personalize charisma characteristics, go through
openly. A bank vice president claims that much of the the charisma checklist presented in box Leadership
charisma people attribute to her can be explained very Self-Assessment Quiz 3-1. If you can respond to check-
simply: “I’m up front about expressing positive feelings. I list with a reasonable degree of objectivity, the quiz
praise people, I hug them, and I cheer if necessary. I also should enhance your understanding of how you might
express my negative feelings, but to a lesser extent.” Non- or might not be perceived as charismatic by many peo-
verbal emotional expressiveness, such as warm gestures ple at this stage of your career.
Characteristics of Charismatic Leaders 61
A Checklist of Behaviors and Attitudes Reflecting Charisma

Instructions: Indicate whether each of the following statements applies to you now, or whether it does not apply now or
probably never will.
Does Not Apply or

Applies Now Probably Never Will
1. Many people have said that I am likeable and charming.
2. In groups, I have been part of or led, I have offered a

vision that others accepted.
3. I have more physical energy than most people, and the
energy is apparent to other people.
4. I do a good job of telling true stories and anecdotes to
others on the job.
5. My appearance in terms of dress and personal grooming
is well above average.
6. I communicate a lot of passion about my own work,
or about the task of the group.
7. I am successful at making other people feel important.
8. I am candid without being offensive.
9. I make frequent use of a strong fist-bump when greeting

people I know or first-time introductions.
10. My posture is good and I look people in the eye without
being accused of staring at them.
11. I have taken sensible risks at least several times in my life.
12. I am comfortable in letting other people know of my

accomplishments.
13. I have been told that I have a warm smile.
14. People listen to me when I talk at a meeting.
15. I have an exceptional number of social media friends and

followers.
Scoring and Interpretation: The more of these fifteen statements that apply to you now, the greater the probability that you
are perceived to be charismatic by many people. If twelve or more of the statements in the checklist apply to you now, you
have above average charismatic tendencies. Answering these statements is so subjective that it would be helpful for one or
two people who know you well to also respond to the checklist in relation to you. You might then compare your responses to
the responses of the other person or persons.
The Narcissism Component of major link with charisma. Narcissism is a relatively

stable personality trait characterized by a sense of
Charismatic Leadership
personal superiority, a desire for power, and a sense
Narcissism is a characteristic of charismatic leader- of self-importance. Narcissists have little empathy for
ship that warrants separate mention because of its others because they are so focused on themselves.20
Many charismatic leaders are narcissistic, or self-ador- The Vision Component of

ing in excess. The narcissistic leader is likely to be Charismatic Leadership
charming except when engaging in excessive self-puff-
ery and blaming others for mistakes. Learning Objective 3.3 Break down the visionary
Part of being narcissistic is having a self-promot- component of charismatic leadership.
ing personality. Narcissists frequently toot their own
A major buzzword in leadership and management is
horn and allow others to know how important they are.
vision, the ability to imagine different and better fu-
Richard Branson, the colorful chairman of the Virgin
ture conditions and ways to achieve them. A vision is
Group, has relied on self-promotion to build his empire,
a lofty, long-term goal. An effective leader is supposed
a collection of about 400 companies with the Virgin
to have a vision, whereas an ineffective leader either
trademark. Among his antics have been flying around
lacks a vision or has an unclear one. Being a vision-
the world in a balloon and riding into outer space in a
ary is far from an ordinary task, partially because it
rocket he helped fund.
requires an accurate vision of the future and how to
Narcissistic CEOs tend to make riskier decisions,
capitalize on that future. The most successful charis-
often to attain dramatic results which enhance their
matic leaders excel by linking their vision for the orga-
image. A study of CEOs of thirty-two prominent
nization to change that is emotionally meaningful to
high-technology firms investigated whether narcissism
stakeholders.24
was related to compensation, consisting of salary, bo-
Many people use the terms vision and mission in-
nus, and stock options. Degree of narcissism was mea-
terchangeably, yet management theorists see them dif-
sured by an online checklist sent to people who worked
ferently. A mission is a purpose, and reason for being,
for the CEOs studied. The study found that among the
whereas a vision is a picture or image of the future we
CEOs have longer tenures, tended to receive the high-
seek to create. A mission of a company that rents pri-
est compensation.21
vate warehouse space to consumers and small business
At their best charismatic leaders who are narcis-
might be, “To extend the living and working space of
sistic are effective in their roles. On the positive side,
responsible people.” The same company’s vision might
the air of confidence and dominance so characteristic
be, “To create a more comfortable, less cramped world
of narcissism often inspires followers. During a crisis,
for the decades ahead.”
for example, followers might want a narcissistic leader
Creating a vision is one of the major tasks of top
who believes they are talented enough to get through a
management, yet quite often vision statements fail to
crisis. Leaders who combine narcissism with a touch
inspire constituents. According to Jim Collins, a vision
of humility tend to have positive effects on their sub-
statement is likely to be more inspirational when it
ordinates. A study in a large health insurance com-
combines three elements:
pany found that leaders who tempered narcissism with
humility tended to be perceived as effective. Further- 1. A reason for being beyond making money
more, follower job engagement and job performance as 2. Timeless, unchanging core values
rated by supervisors and production data tended to be
3. Ambitious but achievable goals
higher.22
A fascinating twist on research about narcissistic Mechanisms should then be established that set the
leaders is that they tend to be perceived as more effec- values into action.25 At Google, for example, engineers
tive when they are less visible to their subordinates. have “20 percent time,” in which they are free to pur-
The study demonstrating this conclusion was based on sue projects about which they are passionate. (In re-
a longitudinal data in 175 retail stores in the Nether- cent years, many fewer engineers have been allocated
lands. Data were collected about followers’ perceptions 20 percent of their time to dream up new ideas.) This
of leader effectiveness and their overall job attitudes. It policy supports the company vision of being a world-
was found that the more opportunities followers have class innovator. A vision is also considered an import-
to observe narcissistic leaders, the more they will expe- ant part of strategy implementation. Implementing the
rience these leaders’ toxic behaviors, such as exploiting vision (or ensuring that the vision is executed) is part
people. As a result, the leaders were perceived as less of the leader’s role. This is true despite the opinion that
effective. Furthermore, when subordinates had fewer the leader creates the vision and the manager imple-
opportunities to observe their leader, narcissism was ments it.
positively related to leadership effectiveness and job Vision statements typically relate to the entire or-
attitudes.23 ganization, yet a leader or manager responsible for an
Leadership Self-Assessment Quiz 3-2 provides you organizational unit can have a vision about what they
an opportunity to look closely at symptoms, or atti- are attempting to accomplish. For example, the over-
tudes and behaviors, of narcissism. the-counter medicine unit of a larger pharmaceutical
Characteristics of Charismatic Leaders 63
The Narcissism Attitudes and Behavior Checklist

Listed here are fifteen attitudes or behaviors experienced by people who have varying degrees of narcissism. Check “Yes” or
“No” whether each attitude or behavior is something that applies to you. People who are highly narcissistic, however, often
do not perceive their negative attitudes or behaviors. To verify the accuracy of your responses to the checklist, have a person
who knows you well verify the accuracy of your responses.
Narcissistic Attitude or Behavior Yes No

1. Patronizes and criticizes others.
2. Strongly dislikes other people disagreeing with them.
3. Becomes quite upset when cannot control a situation.
4. Very little empathy for others.
5. Very little concern for others.
6. Thinks more about extraordinary achievements than carrying out daily

responsibilities.
7. Convinced of own superiority.
8. Dependent on others for frequent does of admiration and affection.
9. Abuses and insults others without feeling the least bit guilty.
10. Has an unusually high level of self-confidence.
11. Believes that they can accomplish anything with proper effort.
12. Poor team player because of need to be the center of attention.
13. Often bullies others.
14. Quick to blame somebody else for own mistakes.
15. Abuses and insults others without feeling the least bit guilty.
Scoring and Interpretation: The more of these attitudes and behaviors you have felt or demonstrated, the more problems your
level of narcissism is creating, or will create, problems for you in the workplace. If you checked twelve or more of these atti-
tudes or behaviors, you might be annoying too many work associates. Attaining work goals often requires collaboration, so if
you decrease your narcissistic attitudes and behaviors, you will most likely be more productive.
company might have the vision of “Creating a world in

AT&T: Our vision is to design and create in this decade
which people can work and play without arthritis pain.”
the new global network, processes, and service plat-
Visions have become so popular that some compa-
forms that maximize automation, allowing for a
nies have them reproduced on wallet-size plastic cards,
reallocation of human resources to more complex
key rings, and coffee mugs. It has been said that an ef-
and productive work.
fective vision fits on a T-shirt. Here are seven sample
Kellogg Company: To enrich and delight the world
vision statements:
through foods and brands that matter.
Tesla Inc.: To create the most compelling car company Caterpillar: Our vision is a world in which all people’s
of the 21st century by driving the world’s transition basic needs—such as shelter, clean water, sani-
to electric vehicles. tation, food and reliable power–are fulfilled in an
environmentally sustainable way and be a company for matching your unit’s vision with that of the
that improves the quality of the environment and organization.
the communities where we live and work.
After vision statements have been formulated,
Marriott: To be the #1 hospitality company in the world a wide range of employees must be involved in im-
Microsoft Corporation: To enable people throughout plementing the vision. Research conducted with
the word to realize their potential. 340 employees from a health maintenance organiza-
Pfizer: Innovate to bring therapies to patients that sig- tion (HMO) found that two-way communication be-
nificantly improve their lives. tween leaders and group members had an impact on
Although many vision statements appear as if they employees actually integrating the vision into their
could be formulated in fifteen minutes, managers in- work.
vest considerable time in their preparation and often An example of a vision integration statement was,
use many sources of data. To create a vision, obtain “The vision serves as a ‘mental guideline’ on how to do
as much information from as many of the following my job.”27 A vision for an HMO to be integrated into
sources as necessary:26 work behavior would include an idea such as, “Become
a regional standout in helping our patients prevent be-
● Your own intuition about developments in your field, coming ill in the future.”
the market you serve, demographic trends in your Leadership Skill-Building Exercise 3-1 gives you
region, and the preferences of your constituents. an opportunity to practice vision formulation. Keep
Think through what are the top industry standards. in mind that a critic of vision statements once said
● The work of futurists (specialists in making predic- that it is often difficult to tell the difference between
tions about the future) as it relates to your type of a vision and a hallucination. Google’s vision state-
work. ment about making nearly all the information in
● A group discussion of what it takes to delight the the world accessible to everyone appears to be close
people your group serves. Analyze carefully what to a hallucination. For example, very many people
your customers and organization need the most. in the world still have no access to a computer or
smartphone, and the prices and quantities of items
● Annual reports, management books, business mag-
in your local supermarket are probably not found on
azines, and Internet search engine results to un-
the Internet. A borderline hallucination is the vision
cover the type of vision statements formulated by
of Elon Musk who said he created SpaceX in an ef-
others.
fort to make humanity a multi-planet species.28 Also,
● Group members and friends; speak to them indi- a vision that is extremely grandiose might invite
vidually and collectively to learn of their hopes and cynicism from employees. For example, it might be
dreams for the future. difficult for many SpaceX employees to believe that
● For a vision of the organizational unit, support the they will someday have friends and relatives living
organization’s vision. You might get some ideas on Jupiter or Mars.
Formulating a Vision
Along with your teammates, assume the role of the ● The manufacturer of turbines for wind power
top-management group of an organization or organizational ● An online store that sells used designer clothes for
unit that is in need of revitalization. Your revitalization task women and men
is to create a vision for the organization. Express the vision ● A waste disposal company
in not more than twenty-five words, using the guidelines for ● A chain of home-improvement and hardware stores
developing a vision described in the text. Come to an agree- ● A manufacturer of watches retailing for a minimum of
ment quickly on the organization or large organizational unit $25,000
that needs a vision. Or choose one of the following:
The Communication Style of Charismatic Leaders 65
constituents vary widely in verbal sophistication. One

The Communication Style of day, for example, a CEO might be attempting to inspire
Charismatic Leaders a group of Wall Street financial analysts, and the next
day they might be attempting to inspire first-level em-
Learning Objective 3.4 Describe the communication style ployees to keep working hard despite limited salary
of charismatic leaders. increases.
An executive’s ability to speak on a colloquial level
Charismatic and transformational leaders typically
helps create appeal. A person with the high status of an
communicate their visions, goals, and directives in
executive is expected to use an elevated language style.
a colorful, imaginative, and expressive manner. In ad-
When the person unexpectedly uses the everyday lan-
dition, they communicate openly with group members
guage of an operative employee, it may create a spe-
and create a comfortable communication climate. To
cial positive response. One of the reasons Mary Barra,
set agendas that represent the interests of their constit-
the Chairman and CEO of GM is so popular is that her
uents, charismatic leaders regularly solicit constituents’
family background and work experience in production
viewpoints on critical issues. They encourage two-way
facilitate her being able to establish rapport with man-
communication with team members while still pro-
ufacturing workers. (See the Leader in Action section
moting a sense of confidence.29 Here we describe four
in the chapter.)
related aspects of the communication style of charis-
matic leaders: leadership by inspiration, eye-directed
gazing, leadership by storytelling, and communication Eye-Directed Gazing
via social networking.
An aphorism of effective interpersonal communication
is to look directly into the eyes of the receiver of the
message, but not to the extent of staring. A group of
Leadership by Inspiration
researchers conducted two simulated leadership sce-
An important way to inspire others is to articulate a narios to investigate the link between eye gaze and cha-
highly emotional message. An example would be the risma. Eye-tracking technology was used to measure
CEO explaining to her top-management team, “If we gaze, and charisma was measured using a standardized
continue to provide such outstanding customer ser- questionnaire. Study participants attempted to influ-
vice we will double our market share within one year.” ence followers toward a common goal.
Jay A. Conger has observed two major rhetorical tech- The study found that subjects’ impression of their
niques of inspirational leaders: the use of metaphors own charisma was positively related to the frequency
and analogies, and the ability to gear language to dif- and duration of gaze directed at their followers’ eyes.
ferent audiences.30 Another finding was that longer and more frequent
eye-directed gazing resulted in leaders appearing more
Using Metaphors and Analogies charismatic. According to the researchers, the study
provided the first empirical evidence that leaders gaz-
A well-chosen analogy or metaphor appeals to the in-
ing toward the eyes of their audiences is linked to their
tellect, to the imagination, and to values. The charis-
level of charisma.32
matic Mary Kay Ash (now deceased), founder of the
cosmetics company Mary Kay, Inc., made frequent use
of metaphors during her career. To inspire her associ- Leadership by Storytelling
ates to higher performance, she often said: “You see,
Another significant aspect of the communication style
a bee shouldn’t be able to fly; its body is too heavy for
of charismatic and transformational leaders is that
its wings. But the bumblebee doesn’t know that and it
they make extensive use of memorable stories to get
flies very well.” Mary Kay explained the message of the
messages across. Leadership by storytelling is the
bumblebee metaphor in these terms: “Women come to
technique of inspiring and instructing team members
us not knowing they can fly. Finally, with help and en-
by telling fascinating stories related to the organiza-
couragement, they find their wings—and then they fly
tion. The technique is a major contributor to building
very well indeed.”31
a strong company culture. Storytelling also helps bring
out the need for organizational change. A Coca-Cola
Gearing Language to Different Audiences company executive might tell a story about how the
Metaphors and analogies are inspiring, but effective company’s clean-water efforts prevented deaths of
leaders must also choose the level of language that thousands of children in an African village. At the same
will suit their audience. This is important because time, the executive might emphasize that Coca-Cola
must move more quickly to help thousands of other managers and professionals also rely on social net-
people throughout the world who lack safe drinking working, yet charismatic leaders are particularly aware
water. of its relevance for accomplishing their purposes.
Storytelling as a leadership tool has been elevated
to such a level that some companies hire corporate sto- Face-to-Face Networks
rytelling consultants to help their executives develop Charismatic leaders are aware of the importance of
the art. Storytelling is regarded as a useful tool for get- face-to-face interactions for establishing effective re-
ting people to embrace change, because a well-crafted lationships with constituents. A charismatic leader is
story captures people’s attention. therefore likely to invest time in such activities as the
Executive coach Jeff Gothelf recommends a touch following: having lunch with group members, visit-
of humility to add to the effectiveness of a story. One ing group members at their offices or cubicles, chat-
of his clients was attempting to gain enthusiasm for ting with subordinates in the parking lot or cafeteria,
an Objectives and Key Results program that was not dropping by break rooms to chat for a few moments,
meeting with much enthusiasm. Telling a humble story and attending as many company social functions as
helped build support for the program. Part of the story feasible.
used by the CEO to show a dose of humility was as In recognition of the importance of internal net-
follows: works for building relationships and accomplishing
goals, some large firms establish formal networking
Many of you remember when we tried to upgrade
groups. An example is the GE Women’s Network, which
our goal-setting system. At the time I was the
has 100,000 active members worldwide. The Women’s
chief operating officer, and I was a major driver
Network was created in 1997 to help women working
for that change. The initiative failed badly, and
at GE advance their careers and contribute to company
it was my fault. I pushed the change too fast
success. A key focus of the initiative includes sharing
without understanding clearly how to support
the experience, best practices, and knowledge of suc-
the organization while the goal-setting program
cessful women role models. Members of the network
was being implemented. I learned a lot from that
cultivate their leadership skills, business practices, and
experience. Now, I’m looking to all of you for
career opportunities.
valuable suggestions and support to help make the
The focus on the network on leadership, advance-
OKR a success.33
ment, and career-broadening opportunities has helped
To get started developing the skill of leadership by the company get to the point where women run busi-
storytelling, do Leadership Skill-Building Exercise 3-2. nesses generating 20 percent of total company reve-
nues. For example, one of the networks’ top priorities
is “Enhance women’s professional growth by providing
Extensive Use of Social Networking information on coaching career paths, flexibility, and
To help facilitate their interpersonal communica- role models.” Women outside GE are invited to some of
tion, charismatic leaders make extensive use of so- the key networking events, which help the GE women
cial networks—both in face-to-face interactions and strengthen their external as well as internal networks.
through social media websites. The members of the Also, the company outsiders are key customers who
network are basically contacts with whom the leader might develop ties with the GE women that lead to a
has some kind of relationship. The vast majority of better working relationship and more sales.34
Charismatic Leadership by Storytelling

Instructions: Gather in a small problem-solving group to de- that was not working properly. He immediately went inside
velop an inspiring anecdote about something that actually the bank branch to investigate the problem and what could
happened, or might have happened, at a current or former be done about it.
employer. Search for a scenario that illustrates an important Share your stories with other members of the class, and
value of the firm. For example, the CEO of a large interna- discuss whether this exercise could make a contribution to
tional bank while on vacation discovered a company ATM leadership development.
The Development of Charisma 67
Identifying the Characteristics of a Charismatic Leader on YouTube

Now that you have studied many of the characteristics of a talking about the success of the organization. As you watch
charismatic leader go to YouTube, or similar source, to ob- the video, perhaps two or three times, identify three charac-
serve a leader who is probably charismatic. Perhaps your teristics that you think make the person charismatic. Would
target person is making a presentation, such as a CEO any of these characteristics be helpful for you to develop?
Social Networking Sites described earlier in the chapter are capable of devel-
The charismatic leader goes beyond the ordinary use of opment. For example, most people can enhance their
public social networking sites (e.g., Facebook, Twitter, communication skills, become more emotionally ex-
and LinkedIn), and company-special social media pressive, take more risks, and become more self-pro-
sites. The ordinary use of these websites would be to moting. In this section, we examine several behaviors
post status reports, present due dates, ask questions, of charismatic people that can be developed through
and perhaps post trivial personal information. A more practice and self-discipline.
charismatic use of social networking sites would be to
post messages designed to inspire, motivate, and make Techniques for Developing Charisma
group members feel good about themselves and the
organization. A few examples of messages that might Create Visions for Others
project charisma are as follows: Being able to create visions for others will be a major
factor in your being perceived as charismatic. A vi-
● I liked the cost-saving suggestion you made in
sion uplifts and attracts others. To form a vision, use
this morning’s meeting. I think it will result in
the guidelines presented previously in the chapter. The
cost-effective savings.
visionary person looks beyond the immediate future
● Congratulations on having attained your certifi- to create an image of what the organization, or unit
cation as a professional office administrator. Our within, is capable of becoming. A vision is designed to
company can use more professionalism like that. close the discrepancy between current and ideal condi-
● I am so sorry that Taboo, your fifteen-year-old cat, tions. The vision thus sees beyond current realities.
passed away. Yet it’s wonderful to know that you Another characteristic of an effective vision formu-
had all the love and friendship for so long. (A char- lated by the leader is that it connects with the goals
ismatic leader will often show empathy.) and dreams of constituents.35 For example, the leader
of a group that is manufacturing batteries for electric
Despite the positive use of social networking sites
cars might listen to team members talk about their de-
to project charisma, the leader has to guard against
sires to help reduce pollution in the atmosphere and
posting sensitive information, such as an idea for a
then base the vision statement on a “desire to save the
new product or service, or legal problems the company
planet” or “reduce global warming.”
might be facing.
Leadership Skill-Building Exercise 3-3 is designed
Be Enthusiastic, Optimistic, and Energetic
to give you additional insights into the characteristics
of charismatic leaders. A major behavior pattern of charismatic people is
their combination of enthusiasm, optimism, and high
energy. Without a great amount of all three char-
acteristics, a person is unlikely to be perceived as
charismatic by many people. A remarkable quality
The Development of Charisma
of charismatic people is that they maintain high en-
thusiasm, optimism, and energy throughout their en-
Learning Objective 3.5 Assemble an action plan for tire workday and beyond. Elevating your energy level
developing your charisma. takes considerable work, but here are a few feasible
suggestions:
A person can increase charisma by developing some
of the traits, characteristics, and behaviors of charis- 1. Get ample rest at night, and sneak in a fifteen-minute
matic people. Several of the charismatic characteristics nap during the day when possible. If you have a
dinner meeting where you want to be impressive, A practical method of being in synch with another
take a shower and nap before the meeting. person is to adjust your posture to conform to their
2. Exercise every day for at least ten minutes, in- posture. The other person stands up straight, and so do
cluding walking. No excuses are allowed, such as you; when they slouch, you do also. Charismatic peo-
being too busy or too tired or the weather being a ple make these postural adjustments almost subcon-
handicap. sciously, or at least without giving the process much
thought. Highly skilled charismatic people through
3. Switch to a healthy, energy-enhancing diet.
the timing of their breaths, gestures, and cadence can
4. Keep chopping away at your To Do list, so you do entrap listeners into synchrony to the point that they
not have unfinished tasks on your mind—they will “breathe and sway in tune with the speaker.”36 (Devel-
drain your energy. oping synchrony is almost the same idea as the nonver-
An action orientation helps you be enthusiastic, bal communication technique of mirroring.)
optimistic, and energetic. “Let’s do it” is the battle cry
of the charismatic person. An action orientation also Develop a Personal Brand, Including Making an
means that the charismatic person prefers not to ago- Impressive Appearance
nize over dozens of facts and nuances before making a A popular career advancement technique is to build
decision. a personal brand. Understanding your basket of
strengths forms the basis for developing your personal
Be Sensibly Persistent brand. Your identity as shown on the Internet, in-
Closely related to the high energy level of charismatics cluding social networking sites such as Facebook, is
is their almost-never-accept-no attitude. I emphasize also part of your personal brand. Your personal brand
the word almost because outstanding leaders and indi- makes you unique, thereby distinguishing you from the
vidual contributors also know when to cut their losses. competition.37 Perhaps your brand will not reach the
If an idea or a product will not work, the sensible char- recognition of Adidas or Rolex, but it will help develop
ismatic absorbs the loss and moves in another, more your reputation. Your personal brand also helps you at-
profitable direction. tract people to accept your leadership.
Another component of your personal brand is your
Remember People’s Names appearance. By creating a polished appearance, a per-
Charismatic leaders, as well as other successful people, son can make slight gains in projecting a charismatic
can usually remember the names of people they have image. In most cases, the effect of appearance depends
seen only a few times. (Sorry, no charisma credits for on the context. If exquisite clothing and good looks
remembering the names of everyday work associates.) alone made a person a charismatic leader, those im-
This ability is partly due to the strong personal interest pressive-looking store associates in upscale department
charismatic leaders take in other people. stores and boutiques would all be charismatic leaders.
The surest way to remember names, therefore, is Therefore, in attempting to enhance your charisma
to really care about people. Failing that, the best way through appearance, it is necessary to analyze your
to remember a name is to listen carefully to the name, work environment to assess what type of appearance is
repeat it immediately, and study the person’s face. You impressive. A highly polished appearance would create
can also use the many systems and gimmicks available a negative image at most high technology firms.
for remembering names, such as associating a person’s
name with a visual image. For example, if you meet a Be Candid
woman named Betsy Applewhite, you can visualize her Charismatic people, especially effective leaders, are re-
with a white apple (or a white tablet computer) on her markably candid with people. Although not insensitive,
head. The best system of name retention remains to the charismatic person is typically explicit in giving
listen carefully to the name, repeat it immediately, and their assessment of a situation, whether the assessment
study the person’s face. is positive or negative. Charismatic people speak di-
rectly rather than indirectly, so that people know where
Develop Synchrony with Others they stand. Instead of asking a worker, “Are you terribly
A subtle, yet defining, aspect of a truly charismatic per- busy this afternoon?” the charismatic leader will ask, “I
son is one who connects well with others. Psychology need your help this afternoon. Are you available?”
professor Frank Bernieri studies physical signals that
people send to each other, and concludes that being in Make Adjustments to Project E-Charisma
synch physically with other people is part of charisma. Projecting charisma during a videoconference requires
If someone is in synchrony with you, you tend to think some additional demands than when physically present
they are charismatic. with others. Online has fewer physical cues such as the
Transformational Leadership 69
way the person stands or moves. Instead, what people transformational leadership is developing and trans-
are saying takes on more weight, and facial expressions forming people.40 As a result, the organization is trans-
also count heavily. Some of the collective wisdom for formed. In contrast, the transactional leader focuses on
projecting e-charisma follows. more routine transactions, rewarding group members
To attain stage presence, your face should take for meeting standards (contingent reinforcement). Ex-
up at least one-third of the screen. Strong lighting is tensive research by the late Bernard M. Bass indicates
helpful making your image look brighter, but avoid too that the transformational-versus-transactional distinc-
much light, which produces a washed-out appearance. tion has been observed in a wide variety of organiza-
Non-verbal energy can be projected by a reasonable tions and cultures.41
dose of nodding and smiling. Slouching while listen- So, who is a transformational leader? One example
ing should be avoided. Speaking loudly is important from the retail business is Hubert Joly, a turnaround
because of electronic distortions. Speaking slowly and specialist, who came in from outside the company to
articulating carefully is highly recommended. To make be appointed as CEO of Best Buy. In 2019, he stepped
better eye contact look at the computer lens or the top- down from the CEO position to become executive
third of the screen. One way to project charisma is to chairman of the company board of directors. Under
acknowledge what the previous speaker said, perhaps his leadership, the company realized five consecutive
paraphrasing in a few words. Speaking in short bursts years of sales growth. Before Best Buy, over a period
of time, then pausing, shows you are charismatic of fifteen years, Joly had developed a track record of
enough to care about other people.38 successfully turning around companies in the media
Experimental evidence exists that charismatic lead- technology and service sectors. With Best Buy, Joly is
ership can be taught. John Antonakis, Marika Fenley, considered to have led one of the most substantial turn-
and Sue Liechti of the University of Lausanne tested arounds in retail history.
whether individuals could be taught to behave more Best Buy had been losing market share to competi-
charismatically, and whether changes in charisma af- tors, the stock price was falling rapidly, and the former
fected the impact of leaders. One study involved mid- CEO was dismissed because he was having an affair
dle managers, and a second study involved videotapes with an employee. Joly helped limit Best Buy from
of MBA students giving a speech. Participants in both functioning as a showroom in which many consumers
studies were trained in charismatic techniques quite would visit the stores mostly to try out merchandise,
similar to those previously mentioned here. Charisma and then purchase the product online. Under Joly, Best
was measured by ratings of coworkers or other students Buy soon matched online prices but also offered the
on behaviors and attitudes similar to the checklist pre- experience of touching merchandise and asking ques-
sented earlier in the chapter. Training had a significant tions. Joly cut costs and reduced the workforce, partic-
impact on charisma ratings given by coworkers and ularly at company headquarters. He also emphasized
other students. In addition, the charisma of individuals selling large appliances and promoting the Geek Squad.
had a significant impact on ratings of being a prototyp- Joly earned a reputation as a respected turnaround
ical (conforming to a stereotype) leader, and the proba- artist, yet investors say he does not fit the negative ste-
bility of the personal emerging as a leader.39 reotype of many other such executives. “He’s more of
a leader than just one of those guys that comes in and
cuts everything and leaves,” said one analyst. In Joly’s
approach to a turnaround, there are four “levers” to
improve profits. First, leaders must do all they possi-
Transformational Leadership bly can do to increase revenue. Second, to trim costs,
begin by cutting non-salary expenses, such as travel.
Learning Objective 3.6 Cite the nature of transformational Third, eliminate luxury perks and purchase an efficient
leadership. health insurance plan for the company. Fourth, only re-
duce headcount if the first three steps do not generate
Transformational leadership focuses on what the enough savings. Joly also closed stores and sold off for-
leader accomplishes, yet it still pays attention to the eign divisions to help Best Buy survive.
leader’s personal characteristics and that individu- Under the transformational leadership of Joly, both
al’s relationship with group members. As mentioned profits and employee morale showed some improve-
previously, the transformational leader helps bring ment. When the pandemic hit, Best Buy shifted more
about major, positive changes by moving group mem- company sales and customer interactions online. Elec-
bers beyond their self-interests and toward the good tronic sales benefitted considerably with more people
of the group, organization, or society. Because of its home for more hours. Another part of the continuing
importance, transformational leadership has become Best Buy transformation was a shift into more sales to
a widely researched leadership theory. The essence of small businesses through Best Buy Business.42
How Transformations Take Place focus on minor satisfactions to a quest for self-ful-
fillment. The leader might explain, “I know that
Leaders often encounter the need to transform organiza-
making sure you take every vacation day owed you
tions from low performance to acceptable performance
is important. Yet if we get this proposal out on time,
or from acceptable performance to high performance.
we might land a contract that will make us the envy
At other times, a leader is expected to move a firm from
of the industry.” (Being the envy of the industry sat-
a crisis mode to high ground, or to change the business
isfies the need for self-fulfillment.)
strategy of the firm. To accomplish these lofty purposes,
Related to helping people search for self-fulfill-
the transformational leader attempts to overhaul the
ment is for transformational leaders to help work-
organizational culture or subculture. The task can be
ers understand how their values fit the values of
as immense as the process of organizational change.
the organization (person–organization value con-
To focus our discussion specifically on the leader’s role,
gruence). A study conducted with 140 managers
we look at twelve ways in which transformations take
enrolled in an MBA program suggested that trans-
place.43 (See also Figure 3-1.)
formational leadership influenced work group ef-
1. Raising people’s awareness about rewards. The fectiveness. The impact on effectiveness tended to
transformational leader makes group members be positive because of the leader’s ability to help
aware of the importance and values of certain re- workers understand that there was a good fit be-
wards and how to achieve them. The leader might tween their values and those of the organization.44
point to the pride workers would experience should Visualize a leader of a group of workers engaged
the firm become number one in its field. At the in the fabrication of cement pipes, and that many
same time, the leader should point to the financial of the group members value helping people. The
rewards accompanying such success. transformational leader would be able to enhance
2. Helping people look beyond self-interest. The group effectiveness by explaining how the pipes
transformational leader helps group members look are instrumental in delivering potable water to a
to the big picture for the sake of the team and the wide variety of people.
organization. The executive vice president of a bank 4. Helping people understand the need for
told her staff members, “I know most of you dislike change. The transformational leader must help
doing your own support work. Yet if we hire enough group members understand the need for change
staff to make life more convenient for you, we’ll be both emotionally and intellectually. The problem
losing money. Then the government might force us is that change involves dislocation and discomfort.
to be taken over by a larger bank. Who knows how An effective transformational leader recognizes
many management jobs would then have to be cut?” this emotional component to resisting change and
3. Helping people search for self-fulfillment. The deals with it openly. Dealing with the emotional
transformational leader helps people go beyond a conflicts of large numbers of staffers is obviously
THE LEADER:
1. Raises people’s
awareness
2. Helps people look beyond
self-interest
3. Helps people search for
self-fulfillment
4. Helps people understand
need for change
TRANSFORMATIONS
5. Invests managers with a
sense of urgency
6. Commits to greatness
7. Adopts long-range
broad perspective
8. Builds trust
9. Facilitates proactive
behavior
10. Interacts in person
11. Communicates powerful
narratives about the future
12. Concentrates resources
where most needed
Figure 3-1 How Transformations Take Place.
Transformational Leadership 71
an immense task. One approach taken by suc- who responds positively to the change efforts of
cessful leaders is to conduct discussion groups in the CEO Hubert Joly. The store manager is likely
which managers and workers are free to discuss to encourage store associates to listen more atten-
their feelings about the changes. tively to customer inquiries and provide useful sug-
5. Investing managers with a sense of urgency. To gestions. Proactive behavior is facilitated by giving
create the transformation, the leader assembles a group members more autonomy, or the opportunity
critical mass of managers and imbues in them the to make decisions independently, as revealed in a
urgency of change. The managers must also share study of sixty-nine companies in the Netherlands.47
the top leader’s vision of what is both necessary and 10. Interacting in person to help bring about
achievable. To sell this vision of an improved orga- necessary changes. In the high-tech workplace
nization, the transformational leader must capital- with massive amounts of digital communication,
ize on available opportunities. direct, face-to-face communication can have a
6. Committing to greatness. Peter Koestenbaum ar- powerful impact. To encourage participation in the
gues that business can be an opportunity for indi- transformation, an effective technique is to listen
vidual and organizational greatness. By adopting to group members in one-to-one or one-to-many
this greatness attitude, leaders can ennoble human situations.48
nature and strengthen societies. Greatness en- 11. Communicating powerful narratives about the
compasses striving for business effectiveness such future. To change the culture and move into new
as profits and high stock value, as well as impec- growth areas, the transformational CEO needs to
cable ethics. An emphasis on ethical leadership become the “storyteller in chief.” Aetna was trans-
instills a desire for customer service and quality forming into a health insurance company that
and fosters feelings of proprietorship and involve- moved away from fee-for-service reimbursement to
ment.45 (A commitment to greatness is, of course, a new business model of value-based care. As part
important for all leaders, not just those who are of the transformation, CEO Mark Bertolini devel-
transformational.) oped a narrative about building new skills to help
7. Adopting a long-range perspective and at the consumers make better health choices, and being
same time observing organizational issues profitable at the same time.49
from a broad rather than a narrow perspective. 12. Concentrating resources on areas that need the
Such thinking on the part of the transformational most change. The turnaround artist or transfor-
leader encourages many group members to do like- mational leader cannot take care of all problems at
wise. Unless many people think with a future ori- once in a troubled organization. A practical strat-
entation, and broadly, an organization cannot be egy is to get around limitations on funds, staff, or
transformed. equipment by concentrating resources on problem
8. Building trust. Another useful process for trans- areas that are most in need of change and have the
forming a firm is to build trust between leaders and biggest potential payoff. Assume that the tax bureau
group members, particularly because distrust and of a state government is not performing well be-
suspicion are rampant during a company revival. cause tax collections are too low. The agency might
Dave Cote, CEO of one of the world’s largest con- invest money in hiring specialists who would search
glomerates, Honeywell International, led one of the for tax evaders, including those who under-report
best corporate comebacks in history. His greatest income.
accomplishment in the turnaround was unifying
Honeywell’s formerly fractured, disenchanted cul-
ture. At the same time, he developed a successful Attributes of Transformational Leaders
business strategy, including a cooperative approach Transformational leaders possess the personal char-
in dealing with asbestos lawsuits. Cote also shifted acteristics of other effective leaders, especially char-
the company to a less aggressive type of accounting, ismatic leaders. In addition, a compilation of studies
and a shift to manufacturing efficiencies.46 Such suggests that eight qualities are particularly helpful in
moves in a highly ethical direction helped Cote gain enabling leaders to bring about transformations.50 Our
the trust of the workforce including managers. discussion of those qualities follows.
9. Facilitating proactive behavior. Another way in Above all, transformational leaders are charismatic.
which transformational leaders bring about trans- Two key personality factors enhancing their charisma
formations is to facilitate proactive behavior on are agreeableness and extraversion, which combine
the part of subordinates. By being proactive, sub- to enhance their interpersonal relationships. Of these,
ordinates take the initiative to bring about pos- extraversion had the biggest impact.51 Included in the
itive change. Imagine a Best Buy store manager charisma of transformation leaders are their optimism
and their openness to the viewpoints of others. An ex- Not every leader classified as transformational will
ample of a charismatic, transformational leader is Akio have the eight characteristics just described. For exam-
Toyoda, the president of Toyota Motor Corporation. ple, some transformational leaders are brusque with
Among his charismatic behaviors are race car driv- people rather than agreeable. Furthermore, it is not
ing, being a TV pitchman for his company, and having always easy to determine whether a given leader can
a rock star persona. Among the transformations he is be accurately described as transformational. Some-
credited with are helping Toyota overcome the effects times situational forces contribute more heavily to the
of an embarrassing 2009 recall, and the effects of the turnaround than do the leader’s personal qualities. The
2011 earthquakes that severely damaged the company’s director of an indoor tennis club was complimented
production facilities. about how he transformed the club from one that was
Unless they are the brutal slash-and-burn type of close to bankruptcy and short on membership. He re-
turnaround manager, transformational leaders have plied, “It wasn’t me. Two of our competitors closed
the respect, confidence, and loyalty of group mem- down and we picked up a lot of their membership.”
bers. One reason is that managers who use the trans- Leadership theorist Julian Barling notes that it is
formational leadership style tend to score higher on not possible or necessary for leaders to engage in all of
emotional intelligence. A specific attribute here is that the characteristics and behaviors mentioned earlier to
transformational leaders read emotions well.51 be classified as transformational. Leaders and subordi-
Similar to effective leaders in general, transforma- nates do not even see each other every day, and may be
tional leaders often have positive core self-evaluations. geographically dispersed.54 Yet an effective transforma-
(As described in Chapter 2, this composite personality tional leader will choose the right time to engage in the
factor is composed of self-esteem, locus of control, gen- right behavior, such as thinking innovatively when the
eralized self-efficacy, and emotional stability.) A study group needs a new direction.
conducted with three high-tech companies in China
found that leaders with positive core evaluations were
more likely to be perceived as transformational by
subordinates.52 The Impact of Transformational
Charismatic, transformational leaders create a and Charismatic Leadership on
vision. By communicating a vision, they convey a set of
Performance and Behavior
values that guide and motivate employees. The vision
describes an optimistic picture of what the organiza- Learning Objective 3.7 Identify several of the impacts of
tion will become after the transformation is complete, charismatic and transformational leadership on performance
such as a division being threatened with being shut and behavior.
down becoming the leading division in a conglomerate.
Although transformational leaders are often greatly Although the present discussion deals primarily with
concerned with organizational survival, they also take transformational leadership, we also include the im-
the time to encourage the personal development of pact of charismatic leadership because the two overlap.
their staff. As group members develop, their perfor- The general picture of the impact of transformational
mance is likely to increase. Transformational lead- leadership is that, at its best, it can arouse followers
ers also give supportive leadership, such as by giving to a higher level of thinking. Transformational leaders
positive feedback to group members and recognizing appeal to the ideals and values of their constituents,
individual achievements. Supportive leadership also thereby enhancing commitment to a carefully crafted
contributes to the development of group members. vision. Followers are inspired to develop new ways of
Transformational leaders frequently use empowerment thinking about problems. Group members become
to help develop group members. more responsible because they are inspired, and they
Innovative thinking, another important characteris- engage in more constructive behavior such as orga-
tic, helps transformational leaders achieve their goals; nizational citizenship behavior—or helping out even
for example, they might develop innovative ways to without the promise of a reward. Workers who report
raise cash and cut costs quickly. Transformational lead- to transformational leaders are even more likely to
ers encourage their staff to think innovatively as well have a positive mood throughout the workday.55
and give them challenging assignments. The innovative Timothy A. Judge and Ronald F. Piccolo reviewed
thinking at the CEO level can mean thinking strategi- eighty-seven studies to examine the impact of trans-
cally in a way that repositions a firm. A classic exam- formational leadership on various measures of perfor-
ple is top-level leadership at Amazon shifting from a mance. The researchers also evaluated the impact of
dependence on retail selling to adding cloud services, transactional leadership and laissez-faire leadership
which are now the company’s most profitable line of on performance. Laissez-faire leadership is a style
business. that gives group members the freedom to do basically
The Impact of Transformational and Charismatic Leadership on Performance and Behavior 73
what they want with almost no direction. The three strong positive relationship to transformational lead-
approaches to leadership were measured by question- ership. (Ordinarily, transformational leadership and
naires based on subordinates’ perceptions. transactional leadership are negatively related because
Transformational leadership showed the highest transformational leaders are said not to engage in rou-
overall relationships on six criteria: (a) follower job sat- tine transactions with group members.) Transforma-
isfaction, (b) follower leader satisfaction, (c) follower tional leadership was negatively related to laissez-faire
motivation, (d) leader job performance, (e) group or leadership.56 The explanation is most likely that trans-
organization performance, and (f) rated leader effec- formational leaders are actively involved with group
tiveness. Interestingly, transactional leadership was members.
also shown to produce good results, and laissez-faire The accompanying Leader in Action box illustrates
leadership was associated with negative results. Unlike a leader who helps bringing about major changes in
previous studies, transactional leadership showed a one of the world’s best known business corporations.

Leader in Action
Mary Barra, CEO of GM

Mary Barra is Chairman and chief executive officer of Under Barra’s leadership, the company has focused
General Motors Company, the dual title she has held since on strengthening its core business of manufacturing cars,
January 2016. When she was the product global chief of trucks, and crossover. At the same time, GM has strived
General Motors Company, in 2014, Barra was named the to lead the transformation of personality mobility through
new company CEO. She was the first woman to become advanced technologies such as connectivity, autonomous
CEO of a major vehicle manufacturer. Departing CEO Dan driving, and vehicle sharing. Barra intends for the company
Akerson stated that he picked Barra to be his successor to be the first in introducing fully autonomous technology. In
based on her ability to “make order out of chaos.” referring to changes in the automobile industry, Barra said,
In March 2014, Barra faced the chaos of the recall of “In this era of rapid transformation, you have to have a cul-
2.53 million cars for faulty switches, and 1.3 million vehicles ture that’s agile. We still have a lot of work to do.”
for power steering problems. The company spent $2.9 billion As the head of product development as well as global
on recalls related to the switches. GM was held legally re- purchasing and supply chain, Mary Barra was already the
sponsible for 124 deaths due to faulty ignition switches. The highest-ranking woman in the global automobile and truck
company has already paid $1.5 billion in penalties and set- industry. She had started her career at GM at age 18. After
tlements. After an internal probe conducted by a former U.S. graduating from college, Barra started as an electrical engi-
attorney, Barra fired fifteen employees, and instituted a policy neer. She was soon identified as a person with executive po-
of “If you see something, say something.” The policy encour- tential. She moved up the corporate ladder steadily in jobs
ages employees to report issues without the fear of retalia- in manufacturing, administration, and internal communica-
tion. She also restructured engineering operations to facilitate tions. Previous to her appointment as head of product de-
quicker responses to potential safety violations. velopment, Barra spent four years as vice president, global
In response to a congressional investigation about elec- human resources. As the CEO, Barra was expected to
tronic problems, Barra said, “Today’s GM will do the right change the culture of a company for which she had worked
thing. That begins with my sincere apologies to everyone her entire career.
who’s been affected by the recall, especially the families As a leader, Barra emphasizes that a company is not
and friends of those who lost their lives or were injured. I am successful because of the buildings, factories, and labora-
deeply sorry.” Barra then proceeded to lead GM through the tories it owns. Instead, it is the people working in the or-
crisis with its reputation intact. She gave priority to transpar- ganization who create and innovate, produce high-quality
ency and accountability, and made sure that nothing similar products, and make positive customer connections. Barra
would ever happen again. believes strongly in empowering GM employees to make
(continued)

Leader in Action (continued)
smart decisions, take prudent risks, and use their own judg- problems that surface. In March 2021, seven owners of
ment to get the job done. Black-owned media companies placed an ad in the Detroit
In one of her initiatives to change the culture, Barra has Free Press calling Barra racist for not meeting with them and
helped GM loosen the controls over engineers, allowing allocating more of GM’s advertising dollars to Black-owned
them more creative freedom with vehicles. She said her ap- media. The Black-owned media group wanted GM to al-
proach is “empowering them to make the decisions, and I locate at least 5 percent of its ad budget to Black-owned
think you see it with some of the vehicles we just put out, media companies. (GM said it was already investing two
whether it’s the Chevrolet Impala or the Cadillac CTS or the percent of its advertising dollars in these media companies.)
Corvette.” Another culture-changing initiative is for senior Barra responded by first sending Chief Marketing Office
executives to participate in a year-long course in transfor- Deborah Wahl for a preliminary meeting with Byron Allen,
mational leadership. the head of one of the media groups. The meeting was con-
GM has been applauded for its focus on pay equal- structive, and was followed up by Barra meeting with the
ity between men and women. The 2018 Global Report on media groups. Barra said that she wanted to be the most
Gender Equality reported that GM is one of only two global inclusive company in the world.
businesses that have pay equality in top, middle, and bot- Barra credits much of the success has achieved at GM
tom pay bands, as well no gender gap in pay across the so far to her focus on employees and the customers they
company. serve. The focus involves winning the hearts and minds of
Barra believes that her thrust for creative freedom and people.
simplicity will strengthen GM in the long term. She is ada- Barra received a bachelor of science in electrical engi-
mant about leading by persuasion rather than direct com- neering (BSEE) from the General Motors Institute (now the
mands. Barra said that when employees say “I’m doing it Kettering University). Later she graduated with an MBA from
because Mary told me to do it” is the day she loses. Barra Stanford University. She was raised in a GM family, with her
recognizes that culture change only takes place when peo- father having been a die-maker in a Pontiac plant for thir-
ple change their behavior, such as taking more responsibility ty-nine years. Barra is regularly included high on lists as one
for problems. of the world’s most powerful women.
During her first month as CEO Barra revealed her goals
to expand GM’s profit margins in North America, while in- Questions
creasing its global market share. Part of her plan for attain- 1. Why might Barra be classified as a transformational
leader?
ing these goals was to strive for innovation on both business
2. What relevance might Barra’s experience in HR have for
processes and product development. Several years later,
the product development of vehicles?
she emphasized that the ultimate proof point of whether the 3. Based on whatever information you might have available,
changes she has introduced are working “will be when we how well is Mary Barra doing as GM’s top executive?
deliver exceptional financial results.” Barra’s vision for GM 4. How do you think Barra should have responded to the
is zero crashes, zero emissions, and zero traffic congestion. newspaper ad that labeled her a racist for not meeting
with them and not allocating more money for advertising
Despite Barra’s many successes with the company, GM
in Black-owned media groups?
has not avoided all controversy, and she deals directly with
Sources: Original story created from facts and observations in the following sources: Carrie Ann, “Leadership Lessons from GM CEO—
Mary Barra,” Industry Leaders (www.industryleadersmagazine.com), 2012, pp. pp. 1–6; “Mary Barra Leadership Style,” Financhill
(https://financhill.com), 2021, pp. 1–7; Christopher Ross, “A Day in the Life of GM CEO Mary Barra,” The Wall Street Journal (www.wsj
.com), April 25, 2016, pp. 1–4; Geoff Colvin, “GM’s Mary Barra Continues to Surprise, and Impress,” Fortune (www.fortune.com),
March 17, 2016, pp. 1–6; David Welch, “All about the Benjamins,” Bloomberg Businessweek, May 2–May 28, 2017, p. 22; Lucas
Manfredi, “GM Defends CEO Mary Barra Ahead of Meeting with Black Media Leaders: Newspaper Ads Spark War of Words for Auto-
maker,” Fox Business (www.foxbusiness.com), March 31, 2021, pp. 1–5; Jamie L. LaReau, “GM CEO Marry Barra to Meet with Black
Media Owners Days After they Call Her Racist,” Detroit Free Press (www.freep.com). May 30, 2021, pp. 1–5.
Concerns About Charismatic and Transformational Leadership 75
The magical message which mesmerizes the

Concerns About Charismatic and unthinking (and which can often be supplied by
Transformational Leadership skilled phrase makers) promises that things will
become not just better but perfect. Charismatic
Learning Objective 3.8 Articulate the concerns about leaders are experts at promising Utopia. Since
charismatic leadership from the scientific and moral perfection is the end, often the most heinous
standpoint.
actions can be tolerated as seemingly necessary
means to that end.58
Up to this point, an optimistic picture has been painted
of both the concept of charisma and charismatic lead- When charismatic leaders are highly narcissistic,
ers, as well as transformational leaders. For the sake organizational performance may suffer. One reason is
of fairness and scientific integrity, contrary points of that the highly narcissistic leader will be disliked and
view must also be presented. The topic of charismatic resented. A meta-analysis of many studies revealed that
leadership has been challenged from two major stand- a moderate amount of narcissism is associated with
points: the validity of the concept and the misdeeds of leadership effectiveness, but both low and high levels
charismatic leaders. of the trait lowered leadership effectiveness.59 (Leaders
with too little narcissism may be perceived as bland
and lacking much self-confidence.)
Challenges to the Validity More recent evidence indicates that organizations
of Charismatic Leadership led by narcissistic CEOs experience considerable down-
sides including high risk-taking and overpaying for ac-
Some leadership researchers doubt that charisma can quisitions. One study using a sample of thirty-two firms
be accurately defined or measured. Conducting re- found that those led by narcissistic CEOs are more
search about charisma is akin to conducting research likely to be involved in protracted lawsuits. Narcissism
about high quality: You know it when you see it, but it was measured with an online questionnaire completed
is difficult to define in operational terms. Furthermore, by company employees who knew the CEO. The prob-
even when one leader is deemed to be charismatic, that lem appeared to be that narcissists are less sensitive to
leader has many detractors. According to the concept objections when making decisions about whether to
of leadership polarity, leaders are often either revered settle a lawsuit. The narcissistic CEOs were also less
or vastly unpopular. Many leaders in public office expe- willing to listen to advice from legal experts.60
rience the same problem. Charisma needs to be mixed An analysis by Dan Ciampa points to other negative
with humility for full effectiveness. consequences of a highly charismatic organizational
Another problem with the concept of charisma is leader. Two of these concerns follow. One is that because
that it may not be necessary for leadership effective- the charismatic leader’s views and actions are the only
ness. Warren Bennis and Burt Nanus hypothesized that ones that matter, followers become less proactive. A group
instead of charisma resulting in effective leadership, the member might thing, “Why should I suggest a new course
reverse may be true: People who are outstanding lead- of action when only his (or her) ideas count?” Another
ers are granted charisma (perceived as charismatic) by concern is that people still comply with what the charis-
their constituents as a result of their success.57A rep- matic leader wants, but the passion vanishes because the
resentative example is that when retailing executive people do not feel they are contributing. Eventually, the
Ron Johnson had major successes at Target and Apple, subordinates stop listening and become cynical.61
he was regarded as highly charismatic. Yet, when his Some charismatic leaders are unethical and lead
business strategy failed as CEO of J.C. Penney, he was their organizations and outsiders toward illegal and
ridiculed being insensitive to his customer base—a per- immoral ends. People are willing to follow the char-
ception of weak charisma. The take-away lesson here ismatic leader down a quasi-legal path because of the
is that if you are successful in attaining goals, it will leader’s personal magnetism. Perhaps the most widely
enhance your charisma. publicized financial fraud in history was carried out by
the late Bernard M. Madoff. (He died in prison from
renal failure and other complications in 2021.) Inves-
The Dark Side of Charismatic Leadership tors lost about $50 billion before approximately 10 per-
Some people believe that charismatic leadership can cent of their money was recovered a few years later.
be exercised for evil purposes. This argument was in- Madoff, whose career included a term as the president
troduced previously in relation to personalized charis- of NASDAQ, a popular stock exchange, was well liked
matic leaders. Many years ago, Robert Tucker warned and considered by many to be warm and charismatic.
about the dark side of charisma, particularly with re- His ability to defraud people depended somewhat on
spect to political leaders: his ability to be well liked and entrusted.
A broad perspective on the downside of both char- Boards of directors currently seek CEOs who do
ismatic and transformational leadership is that em- not overemphasize charisma and celebrity status at
phasizing these behaviors directs attention away from the expense of concentrating on running the business.
other important aspects of leader-follower relation- In this way, the dark side of charisma can be mini-
ships. David Collinson and Dennis Tourish note, for mized. Recognize that a true charismatic and trans-
example, that the idea of transformational leadership formational leader is highly concerned about human
suggests that power should be vested in the hands of a welfare and attaining outstanding organizational
few heroic leaders, and neglects the potential contribu- performance.
tion of follower dissent.62
Reader’s Roadmap
In Chapter 2, we focused on the traits, motives, and characteristics of the leader—the inner qualities. Here we dug
further into leadership qualities by studying charismatic and transformational leadership. In the next chapter, we focus
more sharply on the actions of leaders in terms of their behaviors, attitudes, and styles.
Summary
Charisma is a special quality of leaders whose pur- (self-interested), and celebrity. Charismatic leaders
poses, powers, and extraordinary determination dif- have characteristics that set them apart from non-
ferentiate them from others. It is also a positive and charismatic leaders: They have a vision, masterful
compelling quality of a person that makes many communication skills, the ability to inspire trust, and
others want to be led by that person. An important the ability to make group members feel capable. They
element of charismatic leadership involves the at- are tactful; they have energy and an action orienta-
tributions made by group members about the char- tion; they are emotionally expressive and warm; they
acteristics of leaders and the results they achieve. romanticize risk; they use unconventional strategies;
Social network members often influence a person’s they have self-promoting personalities; and they chal-
attributions of charisma. The relationship between lenge, prod, and poke. Also, they tend to think fast;
group members and the leader is important because and they emphasize being dramatic and unique.
of these attributions. Charismatic leaders frequently Many charismatic leaders are narcissistic, or
manage their impressions to cultivate relationships self-adoring in excess, and are self-promoting. At
with group members. their best, narcissistic leaders are effective in their
Much of the impact of charisma is based on roles, particularly when narcissism is combined
the positive effect the charismatic leader triggers with humility.
among group members. A study with firefighters The idea of vision is closely linked to charisma
showed that having a charismatic leader contrib- because charismatic leaders inspire others with
uted to their happiness. In a top-level executive an uplifting and attractive vision. A vision is more
position, being perceived as not having enough cha- future oriented than a mission. In formulating a
risma can lead to your downfall. vision, it is helpful to gather information from a va-
Three major charismatic leader subtypes riety of sources, including one’s own intuition, fu-
are socialized (helping others), personalized turists, and group members.
Concerns About Charismatic and Transformational Leadership 77
Charismatic and transformational leaders future, and concentrates resources where change is
communicate their visions, goals, and directives needed the most.
in a colorful, imaginative, and expressive manner. Transformational leaders have characteristics
Communication effectiveness allows for manage- similar to those of other effective leaders. In addi-
ment by inspiration. Two techniques for inspiring tion, they are charismatic, extraverted, create a vi-
others are to use metaphors and analogies, and to sion, encourage personal development of the staff,
gear languages to different audiences. Charismatic and give supportive leadership. Emphasis is also
and transformational leaders also use eye-directed placed on empowerment, innovative thinking, and
gazing, and memorable stories or anecdotes to get leading by example.
messages across. Face-to-face networks and social Transformational leadership can arouse follow-
networking sites can be used to communicate the ers to a higher level of thinking and to engage in
leader’s charisma. more constructive behavior. Transformational lead-
A person can increase personal charisma by ership is positively related to the criteria of follower
developing some of the traits, characteristics, and job satisfaction, leader satisfaction, follower moti-
behaviors of charismatic people. The suggestions vation, leader job performance, group or organiza-
presented here include creating visions for others; tion performance, and rated leader effectiveness.
being enthusiastic, optimistic, and energetic; being Transactional leadership attains the same results to
sensibly persistent; remembering people’s names; a lesser degree, whereas laissez-faire leadership is
developing synchrony with others; developing a per- negatively related to such criteria. A study showed
sonal brand and making an impressive appearance; that leadership effectiveness as measured by busi-
being candid; and making adjustments to project ness results was a direct function of the leader’s
e-charisma. transformational behavior.
To bring about change, the transformational One concern about charismatic and transforma-
leader attempts to overhaul the organizational tional leadership is that the concept is murky. Many
culture or subculture. Specific change techniques noncharismatic leaders are effective. Another con-
include raising people’s awareness of the impor- cern is that some charismatic leaders are unethical
tance of certain rewards and getting people to and devious, suggesting that being charismatic does
look beyond their self-interests for the sake of not necessarily help the organization. When charis-
the team and the organization. Transformational matic leaders are highly narcissistic, organizational
leaders help people search for self-fulfillment and performance may suffer. A true charismatic and
understand the need for change, and they invest transformational leader is highly concerned about
managers with a sense of urgency. The transforma- human welfare and attaining organizational goals.
tional leader also commits to greatness, adopts a Too much attention paid to charismatic and trans-
long-range perspective, builds trust, facilitates pro- formational leadership can divert attention away
active behavior by subordinates, interacts in perfor other important aspects of the leader–follower
son, communicates powerful narratives about the relationship.
Key Terms
charisma 58 hubris 60 personal brand 68
socialized charismatic 59 narcissism 61 leadership polarity 75
personalized charismatic 59 vision 62
transformational leader 60 leadership by storytelling 65
Guidelines for Actions and Skill Development
Following are suggestions to help a person act a confident, caring person, which contributes
in a charismatic manner. All of them relate to to a perception of charisma. A smile generally
well-accepted interpersonal skill techniques. says, “I like you. I trust you. I’m glad we’re
together.”
1. Be sure to treat everyone you meet as the
7. Maintain a fascination for your world. Ex-
most important person you will meet that
press enthusiasm for and interest in the
day. For example, when at a company meeting,
thoughts, actions, plans, dreams, and mate-
shake the hand of every person you meet.
rial objects of other people. Your enthusiasm
2. Multiply the effectiveness of your fist bump.
directed toward others will engender enthusi-
Use a fist bump of moderate impact and make
asm in you.
enough eye contact to notice the color of the
8. Be more animated than others. People who
other person’s eyes. When you take that much
are perceived to be more charismatic are sim-
trouble, you project care and concern. Think
ply more animated than others. They smile
a positive thought about the person whose fist
more frequently, speak faster, articulate bet-
you bump. (Should handshakes ever return as
ter, and move their heads and bodies more
acceptable, follow the same advice as for fist
often.63
bumps.)
9. Think big. If you want to become a charismatic
3. Stand up straight, and use other nonver-
and transformational leader, you must develop
bal signals of self-confidence. Practice good
the capacity to spin beautiful, sweeping visions,
posture. Minimize fidgeting, scratching, floor
and, in general, think big. It is so easy to be-
tapping, and speaking in a monotone. Walk at
come preoccupied with small problems that we
a rapid pace without appearing to be anxious.
face daily, such as high prices at the gas pump
Dress fashionably without going to the extreme
or a smartphone battery running low on power.
that people notice your clothes than they no-
Such problems require attention but can block
tice you. A fist can project confidence, power,
visionary and charismatic thinking if they be-
and certainty. Waving a hand, pointing, or rap-
come preoccupying.
ping a table can help get attention focused on
10. Inspire trust and confidence. Make your
you.
deeds consistent with your promises. Get peo-
4. Give sincere compliments. Most people thrive
ple to believe in your competence by making
on flattery, particularly when it is plausible.
your accomplishments known in a polite, tact-
Attempt to compliment only those behaviors,
ful way.
thoughts, and attitudes you genuinely believe
The information just presented is useful
merit praise. At times you may have to dig to
for the aspiring charismatic leader. Using cha-
find something praiseworthy, but it will be a
risma and a positive mood to help workers
good investment of your time.
become happy is valuable. Productivity might
5. Thank people frequently, especially your
increase as stress might be reduced, result-
own group members. Thanking others is still
ing in less time lost to illness. Also, not being
so infrequently practiced that it gives you a
charismatic enough can sometimes make it
charismatic edge.
difficult to hold on to a high-level leadership
6. Smile frequently, even if you are not in a
position.
happy mood. A warm smile seems to indicate
Discussion Questions and Activities 3. Identify a business, government, education, or

1. Identify a business, government, education, or sports leader whom you perceive to have very little
sports leader whom you perceive to be charismatic. charisma. What other factors appear to compen-
Explain the basis for your judgment. sate for that leader’s limited charisma?
2. Imagine that you reported directly to an executive 4. How might being charismatic contribute to the ef-
who had been named as the most powerful person fectiveness of the manager of entry-level workers,
in business. How might this designation affect your such as those employed as cashiers or fast-food
relationship with that person? preparers?
5. Describe how a person might write email messages trouble, and morale is very low. What do you rec-
of social media posts to give an impression of being ommend the manager do on day one to give the
charismatic. impression that the manager is going to be a trans-
6. Explain why the presence of a charismatic leader formational leader?
tends to enhance the job satisfaction of group 9. Do you think a true transformational leader should
members. ever lay off thousands of workers to help make a
7. To what extent do you think dressing expensively company profitable?
and fashionably really contributes to the charisma 10. What opportunities might a first-level supervi-
of a leader within an organization? sor or team leader have to be a transformational
8. Assume a manager is appointed to the position leader?
as the head a company division in big financial
Baxter, the Self-Adoring Charismatic A lot of people go for Baxter’s hype and bra-
Baxter is the marketing and sales director of vado. He shakes a lot of hands, gives lots of
Train and Subway Interiors, a niche company pep talks, and smiles most of the time. But
that makes interiors for railroad and subway what Baxter doesn’t realize is that without
cars. The interior components include ceilings, our design and engineering, he and his team
overhead storage compartments, holding bars, would have nothing to sell. He tells me, of
and kitchenettes. As the demand for public course, that without his great marketing and
transportation has increased, so has the busi- sales skills, the company would have nothing
ness of Train and Subway Interiors. but scrap.
Baxter attributes much of the sales growth of Francesca, the head of HR and administra-
Train and Subway Interiors to his magnetic per- tion, had collected some feedback about Baxter’s
sonality, and the way in which he has inspired approach to leadership from his subordinates,
the four sales representatives on his team. Bax- colleagues, and customers. She commented,
ter says, “I’m a positive thinker. I know that we Baxter is well liked and charming. He is great at
can win together. I smile at everybody, and my entertaining railway train and subway manufac-
customers love me. I’m good, my sales staff is turing executives, both from the United States
good, and we all know it. The competition is and other companies. Yet a lot of people are
jealous.” tired of his bragging and self-congratulations.
Baxter decorates his office to project his He talks about being the driving force behind
personal pride. An 8x10 photo shows him front this business, even though Train and Subway
and center on his college football team. Another Interiors has existed for over fifty years. A clerk
photo shows him shaking hands with the U.S. said that “Baxter makes more use of mirrors
Transportation secretary. A large cabinet is filled that anybody she knows.”
with sales trophies and employee-of-the-month Megan, a sales representative who left the
plaques Baxter has won at various employers. company to take a sales position with a steel
Another photo shows Baxter smiling in front company, made this comment about Baxter: “I
of an Amtrak high-speed train. The landscape liked most of the marketing strategy Baxter de-
on Baxter’s laptop consists of a photo of Baxter veloped for the company. He also has a warm
seated between two Labrador retrievers. personality. Yet, I couldn’t take the way he never
Phil, the head if engineering at Train and really listened to me. When I began talking
Subway, made this comment about Baxter as about a tough sales problem I was facing, Baxter
the head of marketing and sales: would start talking about himself and the sales
challenges he had conquered. If Baxter dropped 2. What hints do you get from this case that
by my work area in the office, he would begin by Baxter is narcissistic?
describing in great detail what his beloved Lab- 3. What suggestions can you offer Baxter so he
radors did recently.” can make more effective use of his charisma?
Questions
1. What hints do you get from this case that
Baxter is charismatic?

One person plays the role of Baxter who is feeling but the customer is looking for a suspiciously high
great about himself today, and is looking for an op- gift for approving the sale. Baxter is dropping by the
portunity to talk about his leadership effectiveness. representative’s cubicle. Observers might make note of
Another person plays the role of a sales representative the effectiveness of the communication between Bax-
who wants to talk about the possibility of a major sale, ter and the sales representative.
Athletic Club Director Derek Tries a public parks was just as good or better than be-
Turnaround ing a club member. As a result, they did not re-
Derek was the director of the Southside new their membership. Derek recognized that
Athletic Club when the COVID-19 pandemic without more club members, the club could
hit. At the time the club had approximately not support the two-thirds of the staff that
800 dues-paying members. The state ordered the returned.
club shut down, and the entire staff including After surveying the damage, Derek met with
Derek was laid off. The club owners gave all the Kaitlin, the club director of marketing and
workers two months of severance pay. After that membership. Derek said, “We have to rise from
all the workers who did not find employment the ashes of this fire pretty quickly, otherwise
elsewhere, relied on the generous government the owners will shut down the club permanently.
unemployment benefits and stimulus payments You are my key person in figuring out what
to get by financially. Southside can do to bounce back.”
Thirteen months later, Southside reopened, Kaitlin responded, “I already have plans to
but business was not as usual. Only two-thirds advertise on several social media sites that we
of the staff returned to work. Many had found are back in business. I am also going to send
other jobs, and some other staff members had text messages to all the members who quit the
moved out of the area. The club membership club, and invite them back.”
also shrank by 50 percent. Many of the mem- Derek said, “I like your ideas Kaitlin, and
bers decided that working out at home or in keep me posted about the effectiveness of your
campaign. I figure that we have to recapture revitalize Southside. Maybe we can recast our-
about one-half of the lost membership to sur- selves as an athletic and wellness center. We will
vive. Or, we could recruit new members to re- offer yoga classes, stress-management activities,
place at least one half of the members who have seminars on healthy diets, and whatever other
not returned.” fad fits our capabilities.”
Kaitlin said that she would do her best, but Kaitlin said, “I like your big thinking, but
she was not expecting major results from her how do we go about executing?”
recruiting campaign. Derek responded that per-
haps he and she could ask present staff members Questions
if they could invest some time in bringing back 1. In what way is Derek attempting to be a trans-
former members, or in recruiting new members. formational leader?
As the weeks rolled by, membership enrollment 2. What do you think of Derek’s leadership ap-
trickled up by only two percent. proach to transforming Southside Athletic
Two weeks later, Derek met with Kaitlin on Club to a more successful business?
a Saturday morning to say that he had another 3. What suggestions can you offer Derek and
plan in addition to the existing campaign for Kaitlin to increase club membership?
increasing enrollment. “We have to think big to

One student plays the role of Derek who meets with mixed reactions to Derek’s request. One or two are
a group of five employees to inspire them to attempt enthusiastic, but another one mutters to the staff
to recruit one or two family members or friends to member next to her, “I didn’t think being a lock-
become Southside members. Derek will attempt to er-room attendant also meant I would have to sell
be his charismatic and charming best. Five other club memberships.” Ten minutes should be suffi-
students play the roles of the employees who have cient for this role paly.
How much charisma, or how many charismatic behaviors, Development. For example, did you smile warmly at some-
have you exhibited this week? Think back to all your in- one, did you wave to a person you see infrequently and ad-
teractions with people in this last week or two. What have dress the person by name? Did you help your team, club, or
you done that might have been interpreted as charismatic? group think seriously about its future? As part of this same
Review the characteristics of a charismatic leader de- exercise, record your charismatic behaviors for the upcom-
scribed in the text and in the Guidelines for Action and Skill ing week. Be alert to opportunities for displaying charisma.
Developing an Inspirational Message

You have recently been promoted to CEO of a cable televi- you realize that many cable subscribers have switched to
sion service provider. The company has seen a steady de- Internet streaming services.
cline in sales for five years, and the company workforce has Today you have a company-wide videoconference
shrunk by one-third. You accepted the position because you scheduled in which you will attempt to inspire employees
see yourself as a leader who can turn around a difficult sit- that there is a brighter future ahead. Your skill-building task
uation. Besides, if you can stabilize this business, you will is to deliver about a two-minute message that will inspire
greatly enhance your reputation as a business leader. Yet your employees to believe in the future of the company.
Notes
1. Original story created from facts and observations 9. Angelo Fanelli and Vilmos F. Misangyi, “Bring-
in the following sources: “The 50 Most Power- ing Out Charisma: CEO Charisma and External
ful Women: 1, Julie Sweet. CEO, 51, Accenture,” Stakeholders,” Academy of Management Review,
Fortune, November 2020, p. 68; “How Fortune’s October 2006, p. 1053.
Most Powerful Woman in Business Is Helping 10. Thomas Sy, Calen Horton, and Ronald Riggio,
Shape the World for the Better,” Accenture (www “Charismatic Leadership: Eliciting and Channeling
.accenture.com), November 5, 2020, pp. 1–2; Rich Follower Emotion,” The Leadership Quarterly, Feb-
Karlgaard, “‘Let There Be Change’ Says Accenture’s ruary 2018, pp. 58–69.
Trail-Blazing Chief Executive, Julie Sweet,” Forbes 11. Amir Erez, Vilmost Misangyi, Diane E. Johnson,
(www.forbes.com), October 20, 2020, pp. 1–13; Marcie A. LePine, and Kent C. Halverson, “Stirring
David Gelles, “Julie Sweet of Accenture Could See the Hearts of Followers: Charismatic Leadership as
Her Future, So She Quit Her Job,” The New York the Transferal of Affect,” Journal of Applied Psychol-
Times (www.nytimes.com), pp. 1–6; “Julie Sweet, ogy, May 2008, pp. 602–613.
Chief Executive Officer,” Accenture (www.accenture 12. Bernard M. Bass with Ruth Bass, The Bass Hand-
.com), 2021, p. 1. book of Leadership: Theory, Research, & Managerial
2. Jack and Suzy Welch, “It’s Not About Empty Suits,” Applications, Fourth Edition (New York: The Free
BusinessWeek, October 16, 2006, p. 32. Press, 2008), pp. 578–580.
3. Jay A. Conger and Rabindra N. Kanungo, 13. Michael E. Brown and Linda K. Treviño, “Social-
Charismatic Leadership in Organizations (Thousand ized Charismatic Leadership, Values Congruence,
Oaks, CA: SAGE Publications, 1998). and Deviance in Work Groups,” Journal of Applied
4. Stephanie N. Mehta, “Why Him?” Fortune, Novem- Psychology, July 2006, pp. 954–962; Michael E.
ber 23, 2009, pp. 89–90. Brown and Linda K. Treviño, “Leader-Follower
5. Daniel Lyons, “Digital Tools: Big Brother,” Forbes, Values Congruence: Are Socialized Charismat-
October 1, 2007, p. 51. ics Leaders Better Able to Achieve It?” Journal of
6. Juan-Carlos Pastor, James R. Meindl, and Margarit Applied Psychology, March 2009, pp. 478–490.
C. Mayo, “A Network Effects Model of Charisma 14. Jane M. Howell and Boas Shamir, “The Role of Fol-
Attributions,” Academy of Management Journal, lowers in the Charismatic Leadership Process: Re-
April 2002, pp. 410–420. lationships and Their Consequences,” Academy of
7. Philippe Jacquart and John Antonakis, “When Does Management Review, January 2005, p. 100.
Charisma Matter for Top-Level Leaders? Effects of 15. “Mark Cuban Says Dallas Mavericks ‘Didn’t Cancel
Attributional Ambiguity,” Academy of Management the National Anthem,’ Cites Ongoing Dialogue with
Journal, August 2015, pp. 1051–1074. the Community,” ESPN New Services (www.espn
8. William L. Gardner and Bruce J. Avolio, “The .com), February 10, 2021, pp. 1–5.
Charismatic Relationship: A Dramaturgical Per- 16. Mark Greer, “The Science of Savoir Faire,”
spective,” Academy of Management Review, Janu- Monitor on Psychology, January 2005, pp. 28–39;
ary 1998, pp. G32–58. Jane M. Howell and Bruce Avolio, “The Ethics of
Notes 83
Charismatic Leadership: Submission or Liber- Leaders,” The Leadership Quarterly, Decem-

ation?” The Academy of Management Executive, ber 2019, 100337, pp. 1–19.
May 1992, pp. 43–52; Andrew J. DuBrin, Narcis- 33. Jeff Gothelf, “Storytelling Can Make or Break Your
sism in the Workplace (Cheltenham, UK: Edward Leadership,” Harvard Business Review (https://hbr
Elgar, 2012), pp. 108–119. .org), October 19, 2020, p. 4.
17. Research cited in Nicole Torres, “Defend Your 34. 2015 Women’s Network Conference and Lead-
Research: Fast Thinkers are More Charismatic,” ership Summit,” www.gewomensnetwork.com,
Harvard Business Review, March 2016, pp. 28–29. ©copyright 2011–2015 event Power; Diane Brady
18. Warren Bennis, “Acting the Part of a Leader,” and Jena McGregor, “What Works in Women’s Net-
BusinessWeek, September 19, 2009, p. 80. works,” Business Week, June 18, 2007, pp. 58–60.
19. Joël Berger, Margit Osterloh, Katja Rost, and 35. Dennis A. Romig, Side by Side Leadership: Achiev-
Thomas Ehrmann, “How to Prevent Leadership ing Outstanding Results Together (Marietta, GA.:
Hubris? Comparing Competitive Selections, Lot- Bard Press, 2001), p. 157.
teries, and their Combination,” The Leadership 36. Research cited in Greer, “The Science of Savoir
Quarterly, October 2020, pp. 1–17. Faire,” p. 30.
20. Charles A. O’Reilly III et al., “Narcissistic CEOs and 37. Thomas Smale, “5 Steps to Build Your Personal
Executive Compensation,” The Leadership Quar- Brand,” Entrepreneur (www.entrepreneur.com),
terly, April 2014, p. 219. September 25, 2015, p. 1.
21. O’Reilly et al., “Narcissistic CEOs and Executive 38. Research synthesized in Ray A. Smith, “How to
Compensation,” pp. 218–231. Boost Your E-Charisma,” The Wall Street Journal,
22. Bradley P. Owens, Angela S. Wallace, and David A. November 30, 2020, p. A11.
Waldman, “Leader Narcissism and Follower Out- 39. John Antonakis, Marika Fenley, and Sue Liechti,
comes: The Counterbalancing Effect of Leader Hu- “Can Charisma Be Taught? Test of Two Interven-
mility,” Journal of Applied Psychology, July 2015, tions,” Academy of Management Learning & Educa-
pp. 1203–1213. tion, September 2011, pp. 374–396.
23. Barbara Nevicka et al., “Narcissistic Leaders: An 40. Marshall Sashkin and Molly G. Sashkin, Leadership
Asset or Liability? Leader Visibility, Follower Re- That Matters: The Critical Factors for Making a Dif-
sponses, and Group-Level Absenteeism,” Journal of ference in People’s Lives and Organizations’ Success
Applied Psychology, July 2018, pp. 703–723. (San Francisco: Berrett-Koehler, 2003).
24. Jeffrey B. Lovelace et al., “Charismatic, Ideological, 41. Bernard M. Bass, “Does the Transactional–
& Pragmatic (CIP) Model of Leadership: A Criti- Transformational Leadership Paradigm Transcend
cal Review and Agenda for Future Research,” The National Boundaries?” American Psychologist,
Leadership Quarterly, February 2019, p. 97. February 1997, p. 130.
25. Jim Collins, “Aligning Action and Values,” Leader 42. Will Healy, “Where Will Best Buy Be In 1 Year? The
to Leader Institute, http://leadertoleader.org, as Electronics Retailer Learned How to Survive, but
reported in “Actions: Louder than Vision State- Can It?” The Motley Fool (www.fool.com), Janu-
ments,” Executive Leadership, May 2004, p. 8. ary 212, 2021, pp. 1–4; Ron Carucci, “Behind the
26. A couple of the ideas in the list are from “Nailing Scenes of Best Buy’s Record-Setting Turnaround
Down Your Vision: 8 Steps,” Executive Leadership, with Hubert Joly,” Forbes (www.forbes.com),
September 2007, p. 2. April 4, 2021, pp. 1–5; Jen Wieczner, “Best Buy CEO
27. Jeffrey C. Kohles, Michelle C. Bligh, and Melissa On How to Lead a Corporate Turnaround (with-
K. Carsten, “A Follower-Centric Approach to the out Making Employees Hate You),” Fortune (www
Vision Integration Process,” The Leadership Quar- .fortune.com), October 29, 2015, pp. 1–6; Shelly
terly, June 2012, pp. 476–487. Banjo, “Best Buy’s Turnaround May Already Be
28. Michael J. Mooney, “Seeing Through Elon’s Eyes,” Over,” Bloomberg Gadfly (www.bloomberg.com),
Success, July/August 2020, p. 41. June 7, 2016, pp. 1–4.
29. Howell and Avolio, “The Ethics of Charismatic 43. Many of the items in the list are derived from John
Leadership,” p. 46. J. Hater and Bernard M. Bass, “Superiors’ Evalu-
30. Jay A. Conger, “Inspiring Others: The Language of ations and Subordinates’ Perceptions of Transfor-
Leadership,” The Academy of Management Execu- mational and Transactional Leadership,” Journal
tive, February 1991, p. 39. of Applied Psychology, November 1988, p. 65; Noel
31. Ibid. M. Tichy and Mary Anne Devanna, The Transfor-
32. Thomas Maran, et al., “In the Eye of a Leader: mational Leader (New York: Wiley, 1990); Shaul
Eye-Directed Gazing Shapes Perceptions of Oreg and Yair Berson, “Leadership and Employees’
Reactions to Change: The Role of Leaders’ Personal 53. Jia Hu, Zhen Wang, Robert C. Liden, and Jianmin
Attributes and Transformational Leadership Style,” Sun, “The Influence of Leader Core Self-Evaluation
Personnel Psychology, no. 3, 2011, pp. 627–659. on Follower Reports of Transformational Lead-
44. Brian J. Hoffman, Bethany H. Bynum, Ronald F. ership,” The Leadership Quarterly, October 2012,
Piccolo, and Ashley W. Sutton, “Person–Organization pp. 860–868.
Value Congruence: How Transformational Leaders 54. Julian Barling, The Science of Leadership (New
Influence Work Group Effectiveness,” Academy of York: Oxford University Press, 2014), p. 20.
Management Journal, August 2011, pp. 779–790. 55. Joyce E. Bono, Hannah Jackson Foldes, Gregory
45. Peter Koestenbaum, Leadership: The Inner Side of Vinson, and John P. Muros, “Workplace Emo-
Greatness (San Francisco: Jossey-Bass, 1991). tions: The Role of Supervision and Leadership,”
46. Shawn Tully, “The Man Who Got Honeywell’s Journal of Applied Psychology, September 2007,
Groove Back,” Fortune, May 21, 2012, pp. 176–184. pp. 1357–1367.
47. Deanne N. Den Hartog and Frank D. Belschak, 56. Timothy A. Judge and Ronald F. Piccolo, “Trans-
“When Does Transformational Leadership Enhance formational and Transactional Leadership: A
Employee Proactive Behavior? The Role of Auton- Meta-Analytic Test of Their Relative Validity,”
omy and Roles Breadth Self-Efficacy,” Journal of Journal of Applied Psychology, October 2004, pp.
Applied Psychology, January 2012, pp. 194–202. 755–768.
48. Robert Safian, “How to Lead in 2018,” Fast Com- 57. Warren G. Bennis and Burt Nanus, Leaders: Strat-
pany, February 2018, p. 13. egies for Taking Charge (New York: Harper & Row,
49. Scott Anthony and Evan I. Schwartz, “What the 1985), p. 223.
Best Transformational Leaders Do,” Harvard Busi- 58. Robert C. Tucker, “The Theory of Charismatic
ness Review (https://hbr.org), May 8, 2017, p. 1. Leadership,” Daedalus, Summer 1968, pp. 731–756.
50. Literature reviewed in Anthony and Schwartz, 59. Emily Grijalva et al., “Narcissism and Leadership:
“What the Best Transformational Leaders Do,” p. 2; A Meta-Analytic Review of Linear and Nonlinear
Joyce E. Bono and Timothy A. Judge, “Personality Relationships,” Personnel Psychology, no. 1, 2015,
and Transformational and Transactional Leader- pp. 1–47.
ship: A Meta-Analysis,” Journal of Applied Psychol- 60. Charles A. O’Reilly III, Bernadette Doerr, and Jen-
ogy, October 2004, pp. 901–910; Taly Dvir, Dov nifer A. Chatman, “‘See You in Court’: How CEO
Eden, Bruce J. Avolio, and Boas Shamir, “Impact Narcissism Increases Firms’ Vulnerability to
of Transformational Leadership on Follower De- Lawsuits,” The Leadership Quarterly, June 2018,
velopment and Performance: A Field Experiment,” pp. 365–378.
Academy of Management Journal, August 2002, 61. Dan Ciampa, “When Charismatic Leadership Goes
pp. 735–744; Bass, The Bass Handbook of Leader- Too Far,” Harvard Business Review (https://hbr.org),
ship, pp. 633–636. November 21, 2016, p. 4.
51. Timothy A. Judge and Joyce E. Bono, “Five-Factor 62. David Collinson and Dennis Tourish, “Teaching
Model of Personality and Transformational Leader- Leadership Critically: New Directions for Leader-
ship,” Journal of Applied Psychology, October 2000, ship Pedagogy,” Academy of Management Learning
pp. 751–765; Bono and Judge, “Personality and & Education, December 2015, pp. 576–594.
Transformational and Transactional Leadership,” 63. Items 1, 2, 4, 5, and 6 on the list are from Roger
pp. 901–910 Dawson, Secrets of Power Persuasion: Everything
52. Robert S. Rubin, David C. Munz, and William H. You’ll Need to Get Anything You’ll Ever Want (Upper
Bommer, “Leading from Within: The Effects of Saddle River, NJ: Prentice Hall, 1992), pp. 179–194;
Emotional Recognition and Personality on Trans- the eighth item is from James M. Kouzes and Barry
formational Leadership Behavior,” Academy of Z. Posner, The Leadership Challenge, Third Edition
Management, October 2005, pp. 845–856. (San Francisco: Jossey-Bass, 2002), p. 158.
4
Chapter
Leadership Behaviors,
Attitudes, and Styles
Learning Objectives
After studying this chapter and doing the exercises, you 4.4 Compare the participative and autocratic leadership styles.
should be able to 4.5 Characterize the servant leadership style.
4.1 Characterize the key leadership dimensions of initiating 4.6 Present the case for the entrepreneurial style of leadership
structure and consideration. and for gender differences in leadership style.
4.2 Articulate at least five task-oriented leadership behaviors 4.7 Identify how leaders use 360-degree feedback to improve
and attitudes. their performance.
4.3 Describe at least five relationship-oriented attitudes 4.8 Pinpoint how to choose the most appropriate
and behaviors. leadership style.
Chapter Outline
The Classic Dimensions of Consideration and Initiating 360-Degree Feedback for Fine-Tuning a Leadership
Structure Approach or Style
Task-Related Attitudes and Behaviors Selecting the Best Leadership Style
Relationship-Oriented Attitudes and Behaviors Summary
Leadership Styles Key Terms
Participative Leadership Guidelines for Actions and Skill Development
Autocratic Leadership Leadership Case Problem A
The Servant Leadership Style Leadership Case Problem B
Entrepreneurial Leadership Notes
Gender Differences in Leadership Style
K
atrina Lake is the executive chairperson of Stitch Fix, an on- the Stitch Fix CEO for its first ten years of operation. As executive
line personal shopping company she founded in 2011 when chair, she remains involved in company operations. While CEO she
she was a student at Harvard Business School. A founding took the time to help clients individually. The key value proposition
idea for the company is that consumers do not just want what they Stitch Fix offers is to curate and customize styles for clients. The
can get cheapest and fastest, they want clothing that is best for company sells one thousand brands as well as a house brand.
their individual body type and makes them feel confident. Stitch The company uses algorithms and expert stylists to select
Fix combines data analytics with a human touch. Lake served as a box of clothing for clients. Stitch Fix adds a personal touch
85
86 Chapter 4 Leadership Behaviors, Attitudes, and Styles
to e-commerce by having employees select clothing and ac- team is working on,” says Lake. While CEO, she spent about a
cessories for customers who subscribe to the service. Or cus- half-day each month in the warehouse, and styled clothing for
tomers can sign up for a “Fix.” The merchandise is tailored about five customer fixes a week. She says that getting involved
to each customer’s style, and is delivered by mail or shipping in styling for an individual customer makes her feel inspired and
service, and includes a pre-paid envelope for returns. Cus- rejuvenated. Lake’s involvement in company operations even in-
tomers pay for the clothing and accessories they keep, and a cluded making cold emails in LinkedIn to connect with potential
$20 styling fee is added to the purchases. Stitch Fix has about customers.
3.4 million clients in the United States and the United Kingdom, When adding new employees, Lake looks for a cultural
8,000 employees, and $1.7 billion in annual sales. The com- add rather than a cultural fit. She believes that a diverse team,
pany is not consistently profitable, and struggled during the including diversity of thought, helps an organization grow
pandemic. and expand. She also emphasizes the importance of making
In recent years, Lake added new services to the company aggressive changes and going “risk on” during time of high
including Stitch Fix for men, premium brands, plus sizes, pe- uncertainty.
tite sizes, and maternity clothing. The company relied heav- When company president Elizabeth Spaulding took over
ily on data analytics to add these lines. Stitch Fix had a wait as CEO in 2021, she said, “The opportunity that we have
list of 75,000 consumers before launching the plus size ser- ahead at Stitch Fix is extraordinary, and grounded in Katrina’s
vice. The maternity line was added because many customers vision of building personalization at scale.” Lake is a likeable,
were taking breaks from the service after becoming pregnant. stylish, and energetic person. Her charisma is reflected in the
Even with the reliance on data, the company’s 3,400 personal devotion she engenders in employees, the many people want-
stylists play a key role because they build relationships with ing to work for and with her, and her high number of social
clients. media followers.
As part of Lake’s approach to leadership, she relies heavily Lake received a B.S. in economics from Stanford University
on face-to-face meetings, and says that she has a reputation and an M.B.A. from Harvard Business School. Prior to founding
for crashing meetings. She looks at the calendar and decides Stitch Fix, she had extensive experience in working with the com-
to attend a meeting that looks cool and interesting. “Our team bination of fashion, retail, and technology. Lake advises under-
has gotten so big that I don’t get to see every single thing we’re graduates not just to take classes that they think they need for
working on, but this way I can get some glimpses into what each their career, but also those courses that simply sound interesting.1
The story about a prominent retail and technology ex- are also used to measure leadership effectiveness. The
ecutive illustrates how leaders’ behaviors can influence second criterion focuses on judgments by others about
their effectiveness. Among these behaviors are pro- the leader’s effectiveness, such as a plant manager rating
viding direction, getting involved in the details of an a supervisor or the board rating a CEO. Most of the re-
organization, and establishing positive interpersonal search reported throughout this text includes measures
relationships. This chapter describes a number of key of leadership effectiveness in the study design.
behaviors and attitudes that help a manager function
as a leader. We also describe the closely related topic of
leadership styles.
Frequent reference is made in this chapter, and at The Classic Dimensions
other places in the text, to leadership effectiveness. A of Consideration and Initiating
working definition of an effective leader is one who Structure
helps group members attain productivity, including
high quality and customer satisfaction, as well as job Learning Objective 4.1 Characterize the key leadership
satisfaction. Leadership effectiveness is typically mea- dimensions of initiating structure and consideration.
sured by two key criteria.
The first criterion relates to objective data, such as Studies conducted at Ohio State University in the 1950s
those dealing with sales, production, safety, number of identified 1,800 specific examples of leadership behav-
patents produced by the group, cost cutting, or staying ior that were reduced to 150 questionnaire items on
within budget. Measures of job satisfaction and turnover leadership functions.2 The functions are also referred
The Classic Dimensions of Consideration and Initiating Structure 87
to as dimensions of leadership behavior. This research respected when the leader does not attempt to domi-
became the foundation for most future research about nate the discussion. Adam Silver, the National Bas-
leadership behavior, attitudes, and styles. The research- ketball Association (NBA) commissioner, is regarded
ers asked team members to describe their supervisors as dispassionate, congenial, and practical—and rarely
by responding to the questionnaires. Leaders were also argumentative.3
asked to rate themselves on leadership dimensions. Initiating structure means organizing and de-
Two leadership dimensions accounted for 85 percent of fining relationships in the group by engaging in such
the descriptions of leadership behavior: consideration activities as assigning specific tasks, specifying proce-
and initiating structure. dures to be followed, scheduling work, and clarifying
Consideration is the degree to which the leader expectations for team members. A team leader who
creates an environment of emotional support, warmth, helped group members establish realistic goals would
friendliness, and trust. The leader creates this envi- be engaged in initiating structure. The task-related
ronment by being friendly and approachable, looking leadership behaviors and attitudes described later
out for the personal welfare of the group, keeping the in this chapter are specific aspects of initiating
group abreast of new developments, and doing small structure.
favors for the group. Leaders who score high on this dimension define
Leaders who score high on the consideration fac- the relationship between themselves and their staff
tor typically are friendly and trustful, earn respect, and members, as well as the role that they expect each staff
have a warm relationship with team members. Leaders member to assume. Such leaders also endeavor to es-
with low scores on the consideration factor typically tablish well-defined channels of communication and
are authoritarian and impersonal in their relationships ways of getting the job done. Three self-assessment
with group members. Three questionnaire items mea- items measuring initiating structure are as follows:
suring the consideration factor are as follows:
1. Try out your own new ideas in the work group
1. Do personal favors for people in the work group. 2. Emphasize meeting deadlines.
2. Treat all people in the work group as your equal. 3. See to it that people in the work group are working
3. Do little things to make it pleasant to be a member up to capacity.
of the staff.
An example of an emphasis on initiating struc-
The relationship-oriented behaviors described later ture is the way Joe Kasser, the CEO of the industrial
in this chapter are specific aspects of consideration. conglomerate Siemens, provides leadership to the
Another key example of consideration is making con- organization. During his first three years as CEO,
nections with people. For example, much of the time Kasser simplified the organization structure, sold off
Sheryl Sandberg, the chief operating officer (COO) business units, and trimmed the workforce by 12,000
of Facebook, spends outside the office on business is people. 4 Workers throughout the organization were
devoted to making connections with key people who given many specific directives in order to achieve such
could advance the cause of the company, as well as help large objectives.
women succeed in their careers. Leaders have been categorized with respect to
Being soft-spoken is a leadership style element how much emphasis they place on consideration and
that contributes to consideration because workers feel initiating structure. As implied by Figure 4-1, the two
High
Low structure High structure

and and
high consideration high consideration
CONSIDERATION
Low structure High structure
and and
low consideration low consideration
Low High
INITIATING STRUCTURE
Figure 4-1 Four Combinations of Initiating Structure and Consideration.
dimensions are not mutually exclusive. A leader can

achieve high or low status on both. For example, an Table 4-1 Task-Related Leadership Attitudes and
Behaviors
effective leader might contribute to high productivity
and still place considerable emphasis on warm human 1. Adaptability to the situation
relationships. The four-cell grid of Figure 4-1 is a key 2. Direction setting
component of several approaches to describing leader- 3. High performance standards
ship style. We return to leadership styles later in this 4. Concentrating on strengths of group members
chapter and in Chapter 5. 5. Risk taking and execution of plans
A study of the validity of consideration and initiat- 6. Hands-on guidance and feedback
ing structure indicates that these classic dimensions 7. Ability to ask tough questions
do indeed contribute to an understanding of leader- 8. Organizing for collaboration
ship because they are related to leadership outcomes.
A meta-analysis showed that consideration is strongly
related to the job satisfaction of group members, satis-
faction with the leader, worker motivation, and leader means that the behavior, attitude, or skill focuses more
effectiveness. Initiating structure was slightly more on the task to be performed than on the interpersonal
strongly related to job performance, group perfor- aspect of leadership.
mance, and organization performance. However, ini- A synthesis of many studies indicates that the
tiating structure was also associated with satisfaction combination of leadership traits and behaviors (both
and performance.5 These results are encouraging be- task and relationship) accounts for a minimum of
cause they reinforce the importance of this pioneering 31 percent of the differences in leadership effective-
research. ness. Yet, according to the research in question, leader
Later research conducted with an online research behaviors have a bigger impact on effectiveness than
group and U.S. Air Force officers provides additional do traits. Although certain traits may predispose indi-
insight into the effects of initiating structure and con- viduals to certain behaviors, behaviors are the more
sideration on employee work-related attitudes. The fo- important predictor of leadership effectiveness. For
cus of the research was the fit between consideration example, a leader who is assertive may take naturally
and initiating structure needed and received. One key to providing clear guidelines and providing feedback
result of the study was that when employees did not re- to subordinates. It is also noteworthy to recognize
ceive the amount of consideration and initiating struc- that it is easy to develop behaviors than to develop or
ture they thought they needed, unfavorable attitudes modify traits.7
were forthcoming. Among these attitudes were less
1. Adaptability to the situation. Effective leaders
trust in the supervisor, lower job satisfaction, and less
adapt to the situation. Adaptability reflects the
commitment to the organization. The study also found
contingency viewpoint: A tactic is chosen based on
that excess levels of consideration were associated
the unique circumstances at hand. A leader who
with favorable attitudes, and excess levels of initiating
is responsible for emotionally immature group
structure were associated with unfavorable attitudes.
members will find it necessary to supervise them
(Apparently, employees don’t mind being treated with
closely. If the group members are mature and
excess kindness, but they do object to being over
self-reliant, the leader will use less supervision.
controlled.)6
The adaptive leader also selects an organization
structure that is best suited to the demands of the
situation, such as choosing between a brainstorm-
Task-Related Attitudes ing group and a committee. A major justification
and Behaviors for leader adaptability is that business is not al-
ways predictable, and the leader must change to
Learning Objective 4.2 Articulate at least five task- meet the circumstance. 8 Suppose a leader has
oriented leadership behaviors and attitudes. typically motivated and encouraged workers with
quick face-to-face discussions. If the company
The task-related versus relationship-related classifi- shifts to over 50 percent remote work, the leader
cation remains a useful framework for understanding must find another method of motivating and en-
leadership attitudes, behaviors, and practices. This sec- couraging workers—perhaps through messaging
tion identifies and describes task-related attitudes and or videoconferencing.
behaviors that are characteristic of effective leaders, 2. Direction setting. Given that a major respon-
as outlined in Table 4-1. Task-related in this context sibility of leadership is to produce change, the
Task-Related Attitudes and Behaviors 89
leader must set the direction of that change. Di- to your team member who can handle customer
rection setting is part of creating a vision and a rage well.
component of strategy. The strategy describes a 5. Risk taking and execution of plans. To bring
feasible way of achieving the vision. Assume that about constructive change, the leader must take
the vision of a website company was to get mil- risks and be willing to implement those risky de-
lions of people in emerging countries connected cisions. The relevance of risk taking to leadership
to the Internet. A supporting strategy would have effectiveness is emphasized by Sarah Mensah,
to include producing low-cost devices for access- the General Manager (GM) vice president (VP)
ing the Internet, and finding a way to distribute of Jordan Brand North America. She believes
the devices. that the ability to welcome and seek out risks is a
3. High performance standards. Effective lead- valuable skill: “I’ve learned that if there is no risk,
ers consistently hold group members to high there will be no reward.”10 Former major business
standards of performance. High performance executive turned consultant, Larry Bossidy, says
standards can also take the form of challenging about the importance of execution: “I’m an impa-
the thinking of others. In the given example, a tient person, and I get more satisfaction from see-
member of the top management team might say, ing things get done than I do about philosophizing
“There is no way we can find a manufacturer to or building sand castles. Many people regard exe-
produce tablet computers for less than $50.” The cution as detail work that’s beneath the dignity of
CEO might respond, “Why not? Has anybody a business leader. That’s wrong. It’s a leader’s most
tried it?” important job.”11
When performance is measured against high 6. Hands-on guidance and feedback. You will re-
standards, productivity is likely to increase, since call that technical competence and knowledge
people tend to live up to the expectations of their of the business are important leadership char-
superiors. This is called the Pygmalion effect, acteristics. They enable the leader to provide
and it works in a subtle, almost unconscious way. group members with hands-on guidance about
When a managerial leader believes that a group how to accomplish important work. The leader
member will succeed, the manager communicates who provides such guidance helps the group
this belief without realizing it. Conversely, when a accomplish important tasks; at the same time,
leader expects a group member to fail, that per- group members learn important skills. Too much
son will not disappoint the manager. The man- guidance of this nature, however, can be a symp-
ager’s expectation of success or failure becomes tom of poor delegation and micromanagement
a self-fulfilling prophecy because the perceptions (managing too closely). Too little guidance, and
contribute to success or failure. macro-management is the result, in which the
4. Concentrating on the strengths of group mem- manager gives too little or no direction to group
bers. An axiom of effective leadership and man- members. During an online conversation about
agement is to make good use of the strengths of leadership, Elon Musk of Tesla and SpaceX en-
group members rather than concentrating effort couraged executives to step away from their
on patching up areas for improvement. The ef- spreadsheets, and get onto the factory floor. He
fective leader helps people improve, yet still cap- also said there should be more focus on the prod-
italizes on strengths. A team member might have uct or service itself, less time on board meetings
excellent interpersonal skills, yet poor technical and financials.12
skills. It would be best to assign that person a Closely related to guidance is giving frequent
role that emphasizes interpersonal skills, while at feedback on performance. The leader can rarely
the same time helping the team member improve influence the actions of group members without
technical skills. Marcus Buckingham emphasizes appropriate performance feedback. This feedback
that capitalizing on each person’s unique pattern tells group members how well they are doing so
of skills saves time because group members are that they can take corrective action if needed. It also
not laboring at tasks outside their capability and serves as reinforcement that prompts group mem-
interest. The manager might even develop a job bers to continue favorable activities. Leadership
description that best fits each employee’s unique- Skill-Building Exercise 4-1 provides practice in de-
ness.9 Suppose you are the leader of a call center, veloping feedback skills.
and one staffer is great at calming down angry 7. Ability to ask tough questions. Often, leaders can
customers. Other call center members are then be effective by asking tough questions rather than
asked to refer customers who have gone ballistic providing answers. A tough question is one that
Leadership Skill–Building Exercise 4-1
Feedback Skills
After small groups have completed an assignment, such as A convenient way to do this exercise is for everyone
answering the case questions or discussion questions, hold to sit in a circle. Choose one feedback recipient to begin.
a performance feedback session. Also use observations you Going clockwise around the circle, each group member
have made in previous problem-solving activities as the ba- gives that person feedback. After all people have spoken,
sis for your feedback. Each group member provides some the feedback recipient gives their own reactions. The per-
feedback to each other member about how well they think son to the left of the first recipient is the next one to get
the other person performed. Use only volunteers, because feedback.
this type of feedback may be uncomfortable and disturbing After everyone has had a turn receiving performance
to some individuals. Students not receiving feedback can feedback, hold a general discussion. Be sure to discuss
serve as observers and later present their views on what three key issues:
took place during the exercise. To increase the probability 1. How helpful was the feedback?
of benefiting from this experience, feedback recipients must 2. What was the relative effectiveness of positive versus
listen actively. Refer to the section in Chapter 10 on coach- negative feedback?
ing skills and techniques for more information on feedback 3. Were some group members better than others in giving
and active listening. feedback?
makes a person or group stop and think about why

work collaboratively with each other. The Corpo-
they are doing or not doing something. (A tough
rate Executive Board, a research and advisory
question might also be considered the right ques-
service company, recommends three steps for the
tion.) In this way, group members are forced to think
leader who wants to use information technology to
about the effectiveness of their activities. They might
increase collaboration:
ask themselves, “Why didn’t I think of that? It seems
so obvious.” Asking questions is important because ● First, identify the high-value business
quite often group members may have the solutions outcomes desired, such as accelerating
to difficult problems facing the organization. new-product development, before selecting
Asking the right questions can also be a sig- collaboration technologies.
nal of trust in group members, and be a signal to ● Second, identify collaboration hot spots.
trust the leader in return. An example would be, Speak with employees to understand their
rather than telling the team about a good oppor- communication patterns and workflows. (A
tunity the leader has identified, the group might specialist might be required here to help map
be asked, “Do you see a game-changing opportu- workflows, such as who is interacting with
nity that could create much more value than we whom. More will be discussed about this
delivered in the past?” A tough question like this topic in Chapter 12.)
can inspire a burst of collaboration and creativity ● Select technologies that will improve or
within the team.13
speed up existing workflows. For example,
8. Organizing for collaboration. A leadership be- a search engine dedicated to in-company
havior on the borderline between a task orienta- practices might be effective.14 A wide variety of
tion and a relationship orientation is to demand collaboration software is available today.
that workers collaborate with each other to an ap-
propriate extent. (Too much collaboration wastes Now that you have studied various components of
time and facilitates burnout.) The task focus is task-oriented attitudes and behaviors, do Leadership
that the information sharing takes place, whereas Self-Assessment Quiz 4-1. It will further sensitize you
the relationship focus is that group members must to the task activities of leaders and managers.
Relationship-Oriented Attitudes and Behaviors 91
Task-Oriented Attitudes and Behaviors

Instructions: Indicate whether you mostly agree or mostly disagree with the following statements. Relate the statements
to any work situation—including sports, community activities, and school activities—in which you have been responsible for
others’ work. If a work situation does not come to mind, imagine how you would act or think.
Mostly Agree Mostly Disagree

1. I keep close tabs on productivity figures and interpret
them to the group.
2. I send frequent email and text messages to group mem-
bers, giving them information about work procedures.
3. I clearly specify the quality goals our group needs to
achieve.
4. I maintain clear-cut standards of performance.
5. When I conduct a meeting, the participants can count on

a clear-cut agenda.
6. I feel good about my workweek only if our team has met
or exceeded its productivity goals.
7. Workers should not access email, text messages, or the
Internet during working hours unless the activity is actu-
ally increasing productivity.
8. I freely criticize work that does not meet standards.
9. I spend at least 5 percent of my workweek either plan-

ning myself or helping team members with their
planning.
10. I spend a good deal of time solving technical or busi-
ness problems myself, or helping group members do the
same.
Interpretation: If you responded “mostly agree” to eight, nine, or ten of these statements, you have a strong task orientation. If you
responded “mostly disagree” to four or more of the statements, you have below-average task-oriented behaviors and attitudes.
Skill Development: A task orientation is important because it can lead directly to goal attainment and productivity.
Nevertheless, a task orientation must be balanced with a strong people orientation and interpersonal skills for maximum
effectiveness.
Table 4-2 lists the seven relationship-oriented attitudes

Relationship-Oriented and behaviors that we will discuss next. (Most other
Attitudes and Behaviors parts of this book describe the interpersonal skill as-
pects of leadership.)
Learning Objective 4.3 Describe at least five relationship-
oriented attitudes and behaviors. 1. Aligning people. Getting people pulling in the
same direction and collaborating smoothly is a ma-
Leadership involves influencing people, so it follows jor interpersonal challenge. To get people pulling
that many effective leadership attitudes, behaviors, together, it is necessary to speak to many people.
and practices deal with interpersonal relationships. The target population can involve many different
Tim Cook is that he communicates freely with his

Table 4-2 Relationship-Oriented Attitudes and executive team and many other workers. A mar-
Behaviors
ket researcher said “Tim is down to Earth and
1. Aligning people approachable.”17
2. Openness to worker opinions 4. Satisfying higher-level needs. To inspire peo-
3. Creating inspiration and visibility ple, effective leaders motivate them by satisfying
4. Satisfying higher-level needs higher-level needs, such as needs for achievement,
5. Giving emotional support and encouragement personal growth, a sense of belonging, recogni-
6. Displaying patience tion, self-esteem, and a feeling of control over
7. Promoting principles and values one’s life. Many leaders in organizations express
8. Reducing task ambiguity for some group an awareness of the importance of need satisfac-
members tion for building good relationships with workers.
A robust method of satisfying workers’ higher-level
needs is to help them grow professionally.
W. James McNerney, the former long-time execu-
stakeholders. Among them are managers and team tive at Boeing Company, says that he has been a
leaders, higher-ups, peers, and workers in other successful executive at three major companies
parts of the organization, as well as suppliers, gov- primarily through helping people perform better.
ernment officials, and customers. Anyone who can McNerney contends that people who grow are
implement the vision and strategies or who can open to change, have the courage to do so, work
block implementation must be aligned.15 After be- hard, and are good team players. In his words,
ing aligned, organizational members can pull to- “What I do is figure out how to unlock that in peo-
gether toward a higher purpose. Alignment also ple, because most people have that inside of them.
incorporates getting the group working together But they often get trapped in a bureaucratic envi-
smoothly. ronment where they’ve been beaten about the head
2. Openness to worker opinions. A major part of and shoulders.”18
relationship-oriented leadership is to engage in 5. Giving emotional support and encourage-
management openness, or a set of leader be- ment. Supportive behavior toward team mem-
haviors particularly relevant to subordinates’ bers usually increases leadership effectiveness. A
motivation to voice their opinion. 16 When the supportive leader gives frequent encouragement
leader is open in this way, subordinates per- and praise and also displays caring and kindness
ceive that their boss listens to them, is interested even about nonwork-related matters such as the
in their ideas, and gives fair consideration to health of a worker’s ill family member. Keep in
suggestions. Being open to worker opinions is mind that encouragement means to fill with
part of the consideration dimension, and it is courage. One of the many work-related ways of
also central to participative leadership. Town hall encouraging people is to ask for their input about
and one-on-one meetings can work effectively important decisions. Emotional support gener-
for listening to worker opinions, but so can all ally improves morale and sometimes improves
forms of digital communication. Acting on the productivity. In the long term, emotional sup-
opinions expressed by workers reflects true port and encouragement may bolster a person’s
openness. self-esteem. Being emotionally supportive comes
3. Creating inspiration and visibility. As described naturally to the leader who is empathetic and
in the discussion of charismatic and transforma- warm.
tional leadership, inspiring others is an essential Giving encouragement was also the eighth
leadership practice. Inspiring people usually in- leadership principle of Dale Carnegie, the famous
volves appealing to their emotions and values, early proponent of human relations principles in
such as when the head of a snowmobile business work and personal life. Tessa E. Basford and An-
unit encourages workers to believe that they are drea Molberg searched for empirical evidence for
making winters more enjoyable for people who the validity of Carnegie’s leadership principles,
live in regions that accumulate snow as well as fa- including encouragement. Overall, they found
cilitating rescue missions. support for Carnegie’s recommendations to use
Because human contact and connections re- encouragement. Encouragement is linked to im-
inforce inspiration, another part of being inspi- provement of job performance and attitudes,
rational is being visible and available. One factor probably because encouragement boosts feelings
contributing to the popularity of Apple Inc. CEO of self-worth.19
Relationship-Oriented Attitudes and Behaviors 93
An indirect, but effective, way of giving emo- Another value that often helps an enterprise is
tional support to group members is to make them a strong focus on the welfare of employees. A nota-
happy by creating conditions that foster happi- ble example is the leadership of Rich Snyder, CEO
ness. Psychology professor Sonja Lyubomirsky of the successful fast-food chain, In-N-Out Burger.
has found that employees are happier when they Wages and benefits are relatively high, and man-
are helping others. Based on a study at Coca-Cola agers who meet their goals are eligible for compa-
in Madrid, she found that acts of kindness make ny-paid luxury vacations. The Snyder family was
employees feel more connected to each other committed to viewing employees as if they were
and their jobs. Furthermore, coworkers observed family members. As a result, In-N-Out Burger
what was happening and were inspired to repli- boasts one of the lowest turnover rates in the in-
cate kindness in such ways as complimenting each dustry. Snyder met an early death at age forty-nine,
other and bringing coffee.20 The leader’s role here but the family kept the business operating based
would be to encourage employees to be kind to on the same values. A 2021 Glassdoor survey based
each other. on employee feedback ranked In-N-Out Burger the
6. Displaying patience. A relationship-oriented be- third best employer overall, and the best workplace
havior that is particularly effective during turmoil in the restaurant industry.23
is patience, A leader needs to retain composure Providing moral leadership begins with
in the face of frustration or adversity to keep oth- understanding one’s own values. Leadership
ers calm. When direct reports show strain, they Skill-Building Exercise 4-2 gives you an opportu-
need support, not a display of irritation from the nity to think through your work-related values so
leader. David Sluss, a professor of organizational that you can better provide moral leadership to
behavior at Georgia Tech University, surveyed others. Also, more will be said about values and
578 working professionals from a wide range of ethics in Chapter 6.
industries during the COVID-19 lockdown. The 8. Reducing task ambiguity. A useful by-product
survey responses indicated that patience had a of relationship-oriented leadership behaviors is
powerful effect. Self-reported creativity and col- that they reduce ambiguity in the minds of sub-
laboration increased by 16 percent and productiv- ordinates. As mentioned in Chapter 1, tolerating
ity by 17 percent. ambiguity is essential for leaders. Yet, ambiguity
To build patience, recognize that when a chal- leads to stress for many workers, so stress is re-
lenge is coming, you need to become more mind- duced when more structure is provided. A study
ful about staying calm. When turmoil surfaces it is with 129 people in a variety of occupations mea-
better for the leader to work at a slow and smooth sured approaches to leadership through ques-
pace. Reflecting on what is going well in your life, tionnaires. Stress level was measured objectively
can help generate patience for results. If you feel by measuring the amount of the stress hormone,
gratitude, you will be more patient with group cortisol found in hair samples provided volun-
members.21 tarily by the participants. Two hypotheses were
7. Promoting principles and values. A major part supported: (1) Ambiguity-increasing leadership
of a top leader’s role is to help promote values behaviors of providing very little direction and
and principles that contribute to the welfare of identifying a vision tended to increase follower’s
individuals and organizations. This promotion general stress levels. (2) Clarifying leadership be-
can be classified as relationship oriented because haviors such as producing an appropriate model,
it deals directly with the emotions and attitudes fostering the acceptance of group goals, and in-
of people, and indirectly with the task. The late tellectual stimulation tended to reduce follower’s
Stephen Covey, who is widely quoted for his up- stress levels.24
lifting messages, advises that an organization’s Based on this study, leaders probably should not
mission statement must be for all good causes.22 abandon establishing high-performance standards and
Leaders who believe in these good causes will establishing visions in order to reduce stress. Yet, they
then espouse principles and values that lead might simultaneously look for ways to reduce ambigu-
people toward good deeds in the work place. To ity for those employees who have not learned how to
encourage managers and all other employees to cope with uncertainty.
conduct their work affairs at a high moral level, Leadership Skill-Building Exercise 4-3 provides
many companies put their values in written form. an opportunity for you to practice relationship-ori-
The values might be placed in employee hand- ented and task-oriented behaviors. Combined, these
books, on company intranets, or on company are sometimes referred to as the nuts and bolts of
websites. leadership.
Clarifying Your Interpersonal Work Values

Instructions: To provide effective value leadership, it is es- ____ Contributing to the job satisfaction of work associates
sential that you first understand your own values with respect ____ Avoiding creating intense job dissatisfaction for any
to dealing with others. Rank from 1 to 15 the importance of work associate
the following values to you as a person. The most important ____ Other
value on the list receives a rank of 1; the least important, a
1. Compare your ranking of these values with that of the
rank of 15. Use the space next to “Other” if we have left out an
person next to you, and discuss your observations.
important value related to interpersonal relations on the job.
2. Perhaps your class, assisted by your instructor, might
____ Having respect for the dignity of others arrive at a class average on each of these values. How
____ Ensuring that others have interesting work to perform does your ranking compare to the class ranking?
____ Earning the trust of others 3. Look back at your own ranking. Does your ranking sur-
____ Earning the respect of others prise you?
____ Impressing others with how well my group performs 4. Are there any surprises in the class ranking? Which val-
____ Giving others proper credit for their work ues did you think would be highest and lowest?
____ Inspiring continuous learning on the part of each mem-
Clarifying your values for leadership is far more than a pleasant
ber in our group, myself included
exercise. Many business leaders have fallen into disgrace and
____ Holding myself and others accountable for delivering
brought their companies into bankruptcy because of values
on commitments
that are unacceptable to employees, stockholders, outside
____ Helping others grow and develop
investigators, and the legal system. For example, a CEO who
____ Inspiring others to achieve high productivity and quality
valued “developing the reputation of being a trustworthy per-
____ the reputation of being a trustworthy person
son” would not borrow $400 million from the company while
____ Being in contact regularly with work associates using
paying thousands of employees close to the minimum wage.
social networking sites
Applying Relationship-Oriented and Task-Oriented Attitudes and Behaviors

About six role players who can tolerate brutal outdoor con- After the first scenario is complete, Supervisor B will en-
ditions are needed for this exercise. The setting is a drilling gage in task-oriented attitudes and behaviors, using several
rig in the Arctic Circle, where deep underground precious of the behaviors mentioned in the text. The other five or so
mineral reserves have been discovered, and stored-energy role players will react to this leadership. Continue the role
companies are now digging. Today the wind chill factor is play for about ten minutes.
−40 degrees Fahrenheit. The crew of five is uncomfortable Class members not thrown into the frozen tundra will
and a little confused about how to get the drilling started this observe the interactions of the supervisor with the workers.
morning. The leadership task of the supervisor is to help the Provide feedback as to (a) how well the leadership attitudes
crew get the digging accomplished. and behaviors were carried out, and (b) how likely these atti-
Supervisor A attempts to engage in relationship-oriented tudes and behaviors were helpful in accomplishing the task
attitudes and behavior with the group. The supervisor will of getting the drilling started.
use several of the behaviors mentioned in the text. The other
five or so role players will react to Supervisor A’s leadership.
Work the role play for about ten minutes.
Leadership Styles 95
participative leadership is that they are based on net-

Leadership Styles works of people working together and sharing informa-
tion. A social network consists of a set of individuals
and the relationships that bind them, such as people
A leader’s combination of attitudes and behaviors leads within a work group who trust each other enough to
to a certain regularity and predictability in dealing with accept their advice on a problem. 27 (Social network
group members. Leadership style is the relatively con- in this context refers more to physical than virtual
sistent pattern of behavior that characterizes a leader. groups).
Studying leadership style is an extension of understand- Participative leaders share decision making with
ing leadership behaviors and attitudes. Most classifica- group members. The terms shared leadership, collab-
tions of leadership style are based on the dimensions of orative leadership, and team leadership all refer to the
consideration and initiating structure. Comments such same idea as participative leadership. Participative
as “He’s a real command-and-control-type” and “She’s a leadership encompasses so many behaviors that it can
consensus leader” have become commonplace. be divided into three subtypes: consultative, consensus,
An important insight into leadership style is that and democratic.
personality traits influence which style will be natu- Consultative leaders confer with group members
ral for a given individual. The same association exists before making a decision. However, they retain the fi-
between the leadership behaviors already described in nal authority to make decisions. Consensus leaders
this chapter. Imagine a person who is authoritarian and strive for consensus. They encourage group discussion
controlling; this person would gravitate toward being about an issue and then make a decision that reflects
an authoritarian leader. And a person who scores high general agreement and that group members will sup-
on the traits of agreeableness and extraversion might port. All workers who will be involved in the conse-
take naturally to a shared type of leadership. quences of a decision have an opportunity to provide
Reinout E. de Vries conducted a study with 113 input. A decision is not considered final until it appears
leaders and 201 subordinates at several companies that all parties involved will at least support the deci-
to explore the relationship between personality traits sion. Democratic leaders confer final authority on the
and leadership style. His key findings support infor- group. They function as collectors of group opinion
mation presented at several places in this book in and take a vote before making a decision.
addition to being directly related to the styles to be The participative style is based on management
described in this section. The study concluded that openness because the leader accepts suggestions for
(1) honesty–humility was positively related to eth- managing the operation from group members. Wel-
ical leadership, (2) extraversion is positively related coming ideas from below is considered crucial because
to charismatic leadership, (3) agreeableness is posi- as technology evolves and organizations decentralize,
tively related to supportive leadership, and (4) con- frontline workers have more independence and respon-
scientiousness is positively related to task-oriented sibility. These workers are closer to the market, closer
leadership.25 to seeing how the product is used, and closer to many
Here, we describe the participative leadership style, human resource problems. Frontline knowledge can
the autocratic leadership style, servant leadership, the provide useful input to leaders for such purposes as de-
entrepreneurial leadership style, gender differences in veloping marketing strategy and retaining employees.
leadership style, and choosing the best style. Chapter 5 The participative style encompasses the teamwork
continues the exploration of leadership styles by pre- approach. Predominant behaviors of participative lead-
senting several contingency leadership theories. ers include coaching team members, negotiating their
demands, and collaborating with others. Often, the
team member who has the most relevant knowledge for
Participative Leadership the task at hand slips into a leadership role. Research
Learning Objective 4.4 Compare the participative and indicates that poor-performing teams are often dom-
autocratic leadership styles. inated by the team leader, whereas high-performing
teams are characterized by shared leadership.28
Sharing decision making with group members and The participative style is well suited to managing
working with them side by side has become the gen- competent people who are eager to assume responsi-
erally accepted leadership approach in the modern or- bility. Such people want to get involved in making de-
ganization. Consultant Maria Collar observes that in cisions and giving feedback to management. Because
today’s volatile markets where abilities to explore and most graduates from business and professional pro-
innovate are highly valued, collective approaches to grams expect to be involved in decision making, par-
leadership can help foster creative problem solving.26 ticipative leadership works well with the new breed of
A useful perspective for understanding collective and managers and professionals.
Participative leadership does have some problems. leadership did not have negative effects such as low-
It often results in extensive and time-consuming team ered performance, commitment to the organization,
meetings and committee work. Also, consensus and and intention to leave. Acceptance of authority (or
democratic leaders are sometimes accused of provid- power distance) was measured by questionnaire items,
ing too little direction, or being macromanagers. Some- such as “Managers should be able to make the right de-
times, participative leadership is carried to extremes. cision without consulting others.”31
Team members are consulted about trivial things that
management could easily handle independently. Another
problem is that many managers still believe that sharing The Servant Leadership Style
decision making with members reduces their power. Learning Objective 4.5 Characterize the servant
If democratic leadership goes one step further, the leadership style.
result is extreme macromanagement, which is referred
to as the laissez-faire leadership style. As a result, the A style of leadership anchored in the desire to help oth-
workers are given too little direction, and workers who ers has surged in popularity in recent years. A servant
have not learned to tolerate ambiguity perform poorly. leader serves constituents by working on their behalf
to help them achieve their goals, not the leader’s own
goals. The idea behind servant leadership, as formu-
Autocratic Leadership lated by Robert K. Greenleaf, is that leadership derives
naturally from a commitment to service.32 Serving oth-
In contrast to participative leaders are autocratic ers, including employees, customers, and community,
leaders, who retain most of the authority. They make is the primary motivation for the servant leader. Ser-
decisions confidently, assume that group members vant leadership focuses on ethical behavior and con-
will comply, and are not overly concerned with group structive relationships between leader and follower.
members’ attitudes toward a decision. Autocratic lead- A study with CEOs found, not surprisingly, that
ers are considered task oriented because they place narcissism as measured by a personality test is nega-
heavy emphasis on getting tasks accomplished. Typ- tively related to servant leadership.33 True leadership
ical autocratic behaviors include telling people what emerges from a deep desire to help others. A servant
to do, asserting authority, and serving as a model for leader is therefore a moral leader. Servant leadership
team members. In some situations, and in some orga- has been accomplished when group members become
nizational cultures, autocratic leadership is called for. wiser, healthier, and more autonomous. Leadership
When quick and decisive action is necessary, such as Self-Assessment 4-2 provides you the opportunity to
during a crisis, authoritarian leadership may be effec- think about your own tendencies toward being a ser-
tive at least in the short run.29 vant leader. The following are key aspects of servant
Jeff Bezos, the founder and executive chairman leadership.34
of Amazon, makes many product and technology de-
cisions by himself. Bezos is also the owner of the 1. Place service before self-interest. A servant leader
Washington Post and Blue Ocean, a rocket-ship com- is more concerned with helping others than with
pany. His extraordinary cognitive intelligence and busi- acquiring power, prestige, financial reward, and
ness acumen are so well recognized that his decisions status. The servant leader seeks to do what is mor-
are accepted without resistance. As with other effec- ally right, even if it is not financially rewarding. The
tive autocratic leaders, Bezos moves quickly in making leader is conscious of the needs of others and is
many decisions but does seek some input from trusted driven by a desire to satisfy them. An example of a
advisors. In recent years, he has become more empow- questionnaire item measuring this behavior is, “My
ering to supplement his autocratic style. An Amazon leader puts my best interests ahead of their own.”35
board member said, “He was at the center of every- (You will recall that wanting to satisfy the needs of
thing at the beginning. The leadership was Jeff Bezos. others is a relationship behavior.)
Today, it’s not a hub-and-spoke connecting to him. He 2. Listen first to express confidence in others. The
has become a great leader of leaders.”30 To be described servant leader makes a deep commitment to listen-
as autocratic does not necessarily mean the leader is ing in order to get to know the concerns, require-
impulsive or stubborn. ments, and problems of group members. Instead
Employee attitudes toward acceptance of power of attempting to impose their will on others, the
and authority can also influence how well employees servant leader listens carefully to understand what
adapt to authoritarian leadership. A study of employ- course of action will help others accomplish their
ees in a Chinese technology company suggested such goals. After understanding others, the best course
an influence. It was found that in units where workers of action can be chosen. Through listening, for ex-
strongly accepted leaders having power, authoritarian ample, a servant leader might learn that the group
The Servant Leadership Quiz

Indicate your strength of agreement with each of the following statements in relation to any leadership experience you have
had. If you do not have leadership experience, imagine how you would respond to the actions and attitudes mentioned.
SD – strongly disagree; D – disagree; N – neutral, A – agree; SA – strongly agree. Because the results of this quiz are not being
used to evaluate you in any way, be as candid as possible.
Statement Related to Servant Leadership SD D N A SA
1. I am interested in each group member as a person. 1 2 3 4 5

2. I enjoy being a leader because of the power the position brings me. 5 4 3 2 1
3. My intent is to create high ethical standards within the group. 1 2 3 4 5
4. What my group accomplishes is more important than the welfare of 5 4 3 2 1
our members.
5. I give group members the authority to do their job. 1 2 3 4 5
6. I encourage group members to tell me how they contribute to the 1 2 3 4 5
organization’s vision.
7. A major part of my role is to help each member of the group 1 2 3 4 5
succeed.
8. A key part of my job as the leader is to help each member of the 1 2 3 4 5
team perform their job well.
9. A major responsibility of my group is to make me look good as a 5 4 3 2 1
leader.
10. I see myself as a leader providing a useful service to group members. 1 2 3 4 5
11. I give group members the information they need to perform their 1 2 3 4 5
jobs well.
12. I encourage group members to use their talents. 1 2 3 4 5
13. An important part of my role as a leader is to collect useful ideas 1 2 3 4 5
from the group.
14. I stay in the background and give credit to individual group 1 2 3 4 5
members.
15. My personal success is more important to me than the success of 5 4 3 2 1
group members.
16. It would make me proud to be labeled a “servant leader.” 1 2 3 4 5
17. I see myself more as a mentor and coach than an authoritarian 1 2 3 4 5
leader.
18. I learn from the criticism I receive from group members 1 2 3 4 5
19. I tend to ignore whiners and complainers in the group. 5 4 3 2 1
20. I enjoy helping group members resolve difficult work-related 1 2 3 4 5
problems.
(continued)
Quiz5-3
4-2 (continued)
Scoring and interpretation: Find your total score by summing the point values for each question.
● 85 – 100: You probably practice servant leadership to a high degree. You may occasionally need to assert yourself more as
a leader, and recognize that it is important to exercise your authority.
● 70 – 84: You probably have or would have a constructive approach to be a servant leader.
● 20 – 69: You probably have difficulty or would have difficulty engaging the role of a servant leader. Perhaps you could in-
corporate more aspects of servant leadership into your leadership style.
Skill Development: The quiz you just completed is also an opportunity for skill development. Review the twenty statements
and look for implied suggestions for engaging in servant leadership. Two direct examples are “7. A major part of my role is to
help each member of the group succeed,” and “14. I stay in the background and give credit to individual group members.”
Notes: The ideas behind a few of the statements in this quiz stem from the following sources: Dirk van Dierendonck and Inge Nuijten,
“The Servant Leadership Survey: Development and Validation of a Multidimensional Measure,” Journal of Business and Psychology,
September 2011, pp. 249–267; Robert S. Dennis and Mihal Bocarnea, “Development of the Servant Leadership Assessment Instru-
ment,” Leadership & Organization Development, December 2005, pp. 600–615.
is more concerned about team spirit and harmony 6. Focus on what is feasible to accomplish. Even
than striving for companywide recognition. The though the servant leader is idealistic, they recog-
leader would then concentrate more on building nize that one individual cannot accomplish every-
teamwork than searching for ways to increase the thing. Therefore, the leader listens carefully to the
visibility of the team. array of problems facing group members and then
3. Inspire trust by being trustworthy. Being trust- concentrates on a few. The servant leader thus
worthy is a foundation behavior of the servant systematically neglects certain problems. A labor
leader. They are scrupulously honest with others, union official might carefully listen to all the con-
give up control, and focus on the well-being of oth- cerns and complaints of the constituents and then
ers. Usually, such leaders do not have to work hard proceed to work on the most pressing issue.
at being trustworthy because they are already moral. 7. Lend a hand. A servant leader looks for oppor-
4. Recognize one’s own limitations. As with all tunities to play the role of the Good Samaritan.
humble leaders, servant leaders acknowledge their For example, a supermarket manager might help
limitations and therefore actively seek the con- out by bagging groceries during a busy period. Or
tributions of others to compensate for these lim- a servant leader might help clean out mud in the
itations.36 Servant leader and marketing manager company lobby after a hurricane.
Lance might say to marketing assistant Brooklyn, 8. Provide emotional healing. A servant leader
“I’m not good at using Big Data to make a sales shows sensitivity to the personal concerns of
forecast for the next fiscal year. How about you group members, such as a worker being worried
taking over the task?” about taking care of a disabled parent. A recurring
5. Be bold with respect to values, morality, and example of the need for emotional healing is when
doing the right thing. Humility is often associ- a natural disaster such as a tornado or sinkhole
ated with being overly modest, passive, and self-ef- strikes an employee’s home. The servant leader
facing. To the contrary, as noted by leadership would likely grant the employee time off with pay
scholar Jane T. Waddell, servant leaders can be to manage the problem, and also direct the em-
very bold with respect to their sense of values, mo- ployee toward any company resources available
rality, and doing what is right.37 These behaviors for emergency help.
are part of the strong ethical code of most servant 9. Act as a role model for other organizational
leaders. For example, a servant leader might insist members to emphasize service. As a result of the
that two people who are equally qualified for a po- behaviors just described, servant leaders often ig-
sition, have comparable experience and skills, and nite a cycle of service by acting as a role model ser-
comparable performance are paid equally. vant behavior. A study conducted in a large retail
chain found that the leader’s servant behavior is to perform better and be good organizational
mirrored through modeling the helping behavior citizens.41
of coworkers and high-quality customer service.38
Research evidence suggests that servant leader-
A later study conducted in seventy-one restau-
ship at the top of the organization has a positive im-
rants of a restaurant chain found similar results. It
pact on the performance of a firm. The study involved
was found that leaders created a serving culture in
126 CEOs in the United States from the software and
which the restaurant workers placed the needs of
hardware technology industries. Servant leadership
others before their own. The serving culture was
was measured by a self-report questionnaire, and firm
positively related to the performance of the restau-
performance was measured by return on assets (annual
rants, as well as to individual job performance.
income divided by net assets). Analysis of data revealed
Restaurant performance was measured by a com-
that CEO servant leadership tendencies were signifi-
posite of factors including carryout accuracy and
cantly related to firm performance. Another part of the
customer satisfaction. Employee job performance
study suggested that CEOs who were company found-
was rated by managers, and included creativity
ers were more likely to be servant leaders,42 reinforcing
and customer service behaviors.39
the idea that founders are often passionate about their
A further refinement of the relationship be-
company and its employees.
tween servant leadership and the serving behavior
Leadership Skill-Building Exercise 4-4 gives you an
of subordinates was explored in two experiments
opportunity to try your hand at servant leadership. The
and one field study. It was found that servant lead-
accompanying Leader in Action presents a portrait of a
ers are capable of bringing out serving behaviors,
legendary servant leader.
especially among followers with a strong focus on
their own self-interest. 40 A group member might
think, “Maybe serving others is a good idea if my Entrepreneurial Leadership
boss does it. Perhaps I have been focusing too
Learning Objective 4.6 Present the case for the
much on myself.” In contrast, a group member
entrepreneurial style of leadership and for gender
with low self-interest might not need to model the differences in leadership style.
leader to want to serve others.
10. Focus on employee growth that leads to need Many entrepreneurs use a similar leadership style that
satisfaction. A study in a Quebec, Canada, com- stems from their personality characteristics and cir-
pany that makes high-technology products helps cumstances. Although there are different types and
explain why servant leadership might lead to im- definitions of entrepreneurs; in general, an entrepre-
proved job performance and being a good orga- neur is a person who founds and operates an innovative
nizational citizen. It was found that the servant business. Not all business owners, including franchise
leader’s focus on employee’s development help operators, are therefore entrepreneurial leaders. The
them satisfy the psychological needs for auton- general picture that emerges of an entrepreneur is a
omy (working independently), competence, and task-oriented and charismatic person. Entrepreneurs
relatedness (relating to other people). The sat- drive themselves and others relentlessly, yet their per-
isfaction of these three needs fuels employees sonalities also inspire others.
The Servant Leader

Several students play the role of a group of financial analysts about their professional challenge, yet they are apprehensive
working at a large investment bank. Among the group’s re- about attaining the returns top-level management expects. An-
sponsibilities are to seek new real estate investments for the other student plays the role of their supervisor who wants to
bank, with an emphasis on large office buildings and apartment function as a servant leader to get the group started on its mis-
buildings. The group is aware that top management is looking sion and to provide guidance as the work continues. The group
for superior returns to make up for big losses from investments members will be quite candid in expressing their concerns, and
in the energy sector. The members of the group are excited the servant leader will be quite explicit about their role.

Leader in Action
A Legendary Servant Leader: Ken Melrose, the Late CEO of Toro

When Ken Melrose became CEO of the Toro Company in itinerant carpenter,” he said. Melrose also believes that you
1983 it was two years after the company had its worst year in lead best by serving the needs of your people. He added,
revenues, posting its first loss in 35 years. (Melrose passed “You don’t do their jobs for them, you enable them to learn
away on May 3, 2020.) Toro was burning so much cash, and progress on the job.” Toro employees were also allowed
many financial analysts thought that the company could not to learn from failure without fear of reprisals, assuming that
be saved. Soaring interest rates and a recession hurt the the mistake was not catastrophic.
company, and so did two winters with little snow that left the The National Association of State Boards of Accountancy
company with warehouses of unsold snowblowers. noted that through patience and longevity, Melrose demon-
Instead of being discouraged, Melrose dug in and initiated strated that running an organization with character and
drastic action. He reduced the size of the Toro workforce by corporate soul can lead to financial success. Following his
57 percent, cut executive perks, and sold a corporate jet. retirement as CEO of Toro and Chairman in 2006, Melrose
After these immediate salvage operations, Melrose tackled created a company called Leading by Serving LLC, whose
changing the corporate culture to an organization that em- mission is to advance the principles of servant leadership in
powered and trusted its employees, and placed a high value different types of organizations.
on workers. He used the term bottom-up culture to describe “The servant leadership model requires a change in atti-
the new organizational culture. tude more than structure,” Melrose said. “To operate in this
During Melrose’s time as chairman and CEO, Toro’s rev- model, leaders have to shed their egos and deeply embrace
enue grew dramatically, from approximately $250 million in the belief that people perform best in an atmosphere of free-
1983 to approximately $1.7 billion in 2005. Melrose said that dom and trust.” Melrose was so passionate about servant
the financial successes were merely by-products of doing leadership he wrote the book, Making the Grass Greener
what was right. (Doing what was right was combined with on Your Side: A CEO’s Journey to Leading by Serving.
having high brand recognition and a high-quality product The book cited examples of servant leadership in practice
from a technical standpoint.) From a business perspective, at Toro. In addition, Melrose explained and encouraged its
Melrose strengthened the company by increasing the em- practice by others.
phasis on lawn-care equipment for professional uses such The Toro Company produces a full range of products in
as golf course maintenance and landscaping, and less on the landscape maintenance field. Several of the products,
residential mowers. Professional equipment now constitutes including lawnmowers and chainsaws, can harm operators
about 80 percent of Toro’s market. when mishandled or misused. A frequent industry practice
Before taking over as CEO of Toro, Melrose was the head when an operator was harmed or killed using a lawn-care or
of a company subsidiary, Game Time, a playground equip- snow removal product was to dispatch lawyers to quickly
ment manufacturer. While at Game Time, Melrose observed resolve the issue. The objective was to reach a quick finan-
three components to servant leadership. First, every em- cial settlement. Melrose had a different approach. Instead
ployee has the potential to contribute and do good work. of sending legal teams, Toro sent counselors to help their
Second, this potential can be realized when the employee customers in time of greatest need. The counselors helped
is “inspired, valued, engaged, empowered, and recognized.” injured customers cope with disabilities and survivors cope
Third, the role of the leader is to create such an environment. with loss. It was an approach that focused directly on the
When the leader at the top of the organization creates this stakeholder and not on the stockholder or the Toro Com-
environment, the company will attain its goals. pany. Counseling injured customers substantially reduced le-
In talking about power, Melrose reveals how his concept gal costs and lawsuits. Instead of losing these users and their
of servant leadership has a strong religious bent. He says families, Toro found it made them lifelong, loyal customers.
that real power comes to a leader when the person gives During his career, Melrose was a notable philanthropist.
power to others. “This is how Jesus became powerful as an For example, he made the largest single donation ever to the
(continued)

Orange County Library System in Orlando, Florida in 2012. Questions

“Both of my parents used to tell me that the purpose of life 1. How compatible is laying off 57 percent of the workforce
is to serve others,” Melrose said. “My dad’s way of serving with servant leadership?
was in the military. My mother’s way of serving was doing 2. How strongly do you believe that every employee has the
public service in Orlando.” potential to contribute and do good work?
Sources: Original story based on the following sources: James R. Hagerty, “Toro Head Promoted Servant Leadership,” The Wall
Street Journal, May 16–17, 2020, p. A11; Ben Lichtenwainer and Radian Forest, “Ken Melrose Completes His Service on Earth,”
Modern Servant Leader (www.modernservantleader.com), 2008–2020, pp. 1–3; Andy Goldstein, “Ken Melrose: Being a Difference,
Then, and Now,” National Association of State Board of Accounting (https://nasba.org), May 15, 2012, pp. 1–4; “An Interview with Ken
Melrose, Toro Company’s Former CEO,” Theology at Work Project (www.theologyofwork.org), February 16, 2006, pp.1–6.
Although entrepreneurial leadership is usually

2. High degree of enthusiasm and passion. Entre-
associated with business ownership, the same type
preneurs are highly enthusiastic, partially because
of leadership can be displayed by a hired CEO. An
they are so excited about their achievements. As
entrepreneurial CEO is a leader involved in devel-
Entrepreneur magazine puts it, “Something about
oping and managing a portfolio of new ventures. One
being an entrepreneur is, for them, a five-star,
of many possible examples is Peter Ma, founder and
butt-kicking, rocket-boosting blast.” Entrepreneurs’
chairman of the Chinese company, Ping An. Ma be-
enthusiasm, in turn, makes them persuasive. As a
lieved that his company would suffer from lower-priced
result, they are often perceived as charismatic. Some
competition if it did not shift from being a financial
entrepreneurs are so emotional that they are regarded
conglomerate to a technology company. He appointed
as eccentric. Jack Ma, the founder of the enormous
as co-CEO Jessica Tan, who became the company’s
e-commerce website, Alibaba, displayed enthusiasm
chief entrepreneur. Together Ma and Tan moved into
for his enterprise in its early days that reflected enor-
five technology-related areas beyond banking and in-
mous self- confidence. When he attempted to sell the
surance. For example, Ping An launched Good Doctor,
vision of his Internet marketplace in China, he took to
which became the world’s largest healthcare online
quoting Bill Gates: “The Internet will change every as-
platform.43
pect of human beings’ lives.” He also said he wanted
The entrepreneurial leadership style often in-
his venture to become number one in the world.45
corporates the behaviors described in the follow-
The enthusiasm of entrepreneurs often devel-
ing paragraphs. Although some authorities disagree
ops into passion. A theoretical analysis of entre-
about whether an entrepreneurial personality exists,
preneurial passion suggests that it is invested in
evidence is accumulating that many entrepreneurs
three roles. First is the inventor role of recogniz-
share a recognizable personality pattern.44 Leadership
ing an opportunity such as seeing the need for a
Self-Assessment Quiz 4-3 gives you the opportunity to
product or service. Second is the founder role of
think about the type of entrepreneurial thinking and be-
creating the venture, with all its associated mana-
havior typical of the entrepreneurial personality.
gerial and leadership responsibilities. Third is the
1. Strong achievement drive and sensible risk developer role of growing the venture, such as ex-
taking. Entrepreneurs have stronger achievement panding into the global market.46
motives than most leaders. Building a business is A potential downside to entrepreneurial pas-
an excellent vehicle for accomplishment and risk sion is that it can prompt an entrepreneur to pur-
taking. To accomplish what they think needs to be sue an idea for a business or product that was
accomplished, entrepreneurs are willing to work never, or is no longer, worth pursuing. Harvard
extraordinary hours, with twelve-hour days, seven Business School professor Noam Wasserman has
days a week not being unusual. Because entrepre- studied 10,000 business founders, and has noted
neurs take sensible risks, many do not perceive a consistent theme of passion. Yet some of these
themselves as being risk takers—just as many founders believe in their ideas so strongly that they
tightrope walkers believe they are not taking risks quit comfortable jobs and risk their life savings to
because they perceive themselves to be in control. pursue their dreams. One problem is that being
Entrepreneurial Thinking and Behavior

Instructions: Indicate how well each of the following statements reflects your attitudes or behavior, using this scale: very
inaccurately (VI), inaccurately (I), moderately well (MW), accurately (A), very accurately (VA).
VI I MW A VA
1. I have actually started a business of my own. 1 2 3 4 5
2. The thought of starting my own business appeals to me. 1 2 3 4 5
3. So many new products are being introduced practically ev- 5 4 3 2 1
ery week that it seems senseless to bother dreaming up an
idea for another new product.
4. In enjoy the challenge of meeting new people and explain- 1 2 3 4 5
ing what I do.
5. I get excited about thinking of a new idea for a product or 1 2 3 4 5
service.
6. My career advice to young people is to pursue a well- 5 4 3 2 1
established occupation with a high demand for newcom-
ers to the field.
7. Betting money on sports is exciting and fun. 1 2 3 4 5
8. Taking care of administrative details is boring for me. 1 2 3 4 5
9. I am (or would be) comfortable working outside of regular 1 2 3 4 5
working hours.
10. The best job for me would be one that offers a stable sal- 5 4 3 2 1
ary, regular working hours and vacations, and a guaranteed
pension.
11. Self-employment fits (or would fit) my personality. 1 2 3 4 5
12. What a horrible life it would be for me to get paid strictly on 5 4 3 2 1
commission.
13. I enjoy the challenge of selling my ideas and myself to peo- 1 2 3 4 5
ple I have not met before.
14. I need at least eight hours of sleep and regular rest breaks 5 4 3 2 1
during the day to perform well.
15. If I personally knew a family that had been a disaster victim, 1 2 3 4 5
I would be willing to attempt to raise money for that family.
16. I enjoy purchasing lunch from a street vendor when the op- 1 2 3 4 5
portunity arises.
17. If you are not a scientist or an engineer, it is useless to try to 5 4 3 2 1
invent something that is intended for the marketplace.
18. Most people who become rich and famous got there by luck. 5 4 3 2 1
19. I would enjoy the experience of working on developing 1 2 3 4 5
new products in a company department located away from
where most employees worked.
20. If I were self-employed or worked from home for an em- 5 4 3 2 1
ployer, I would probably start my workday at about 10 a.m.
Total Score: ___________________________________
(continued)
Quiz5-3
4-3 (continued)
Scoring and Interpretation: Add the numbers that you have circled.
● 85–100: The results suggest that you have many of the tendencies of an entrepreneurial personality. You probably enjoy
risk taking and change, and would be willing to take the risk of earning your income through self-employment.
● 50–84: You most likely have average tendencies toward being an entrepreneurial personality. You probably would not enjoy
a career filled with risk and uncertainty.
● 20–49: Your personality makeup most likely does not resemble that of an entrepreneurial personality. You might place a
high value on stability and security. A regular paycheck is probably quite important to you.
too passionate about an idea can result in over- always in a hurry. While engaged in one meeting
looking the fact that the market for the idea is very or phone call their minds typically begin to focus
limited or does not exist. The passionate entrepre- on the next meeting or phone call. Their flurry
neur might fail to run careful tests to accurately of activity rubs off on group members and those
assess consumer demand.47 around them. Entrepreneurs often adopt a simple
dress style in order to save time, and they typically
3. Typical pattern of being proactive. Leon C. Prieto
allow little slack time between appointments
argues that the proactive personality has potential
for providing additional insight into how person- 5. Visionary perspective combined with tenacity.
ality traits are related to entrepreneurship. The Entrepreneurs, at their best, are visionaries. As
natural link is that entrepreneurship is inherently with other types of effective leaders, they see op-
proactive—to be an entrepreneur one has to scan portunities others fail to observe. Specifically, they
the environment to find an opportunity, and then have the ability to identify a problem and arrive at
capitalize on the opportunity. Individuals with a a solution. Katrina Lake of Stitch Fix, described in
proactive personality may be more inclined to mo- the chapter opener, had a vision of providing on-
bilize resources and gain the commitment required line customized packages of clothing that fit their
for value creation that the entrepreneur requires.48 personal style. The result was an innovative and
Proactive personality types may have a strong successful business. After the vision is established,
desire to become entrepreneurial leaders to create the entrepreneur tenaciously implements the vi-
value for the firm. An assistant manager at a large sion, working an eighty-hour week if need be.
restaurant, for example, might explore the possi- For many entrepreneurs, just growing their
bilities of establishing a team-building component businesses requires tenacity. A relevant example is
based on the preparation of gourmet meals. The none other than Mark Zuckerberg, the founder of
program would be sold to organizations, as has been Facebook, who in his early twenties became one of
done successfully by a handful of elite restaurants. the best-known entrepreneurs of all time. During
Closely related to proactivity is the entrepre- the Great Recession, he sank money and time into
neurial mindset pinpointed by venture capitalist developing Facebook and grew its engineering
Reid Hoffman, the cofounder of LinkedIn. He says ranks by 50 percent.50
that the mindset unites the world’s most successful 6. Dislike of hierarchy and bureaucracy. Entre-
entrepreneurs. They share a view of looking at the preneurs are not ideally suited by temperament to
world and responding to it that is optimistic and working within the mainstream of a bureaucracy.
action oriented.49 Several entrepreneurs at about Many successful entrepreneurs are people who
the same time recognized that maybe it was time were frustrated by the constraints of a bureau-
for consumers to purchase a car online, with the cratic system. The implication for leadership style
vehicle delivered to one’s door without setting foot is that entrepreneurs deemphasize rules and regu-
at a dealership. Two successful companies in this lations when managing people.
niche are Caravan and Vroom. 7. Preference for dealing with external custom-
4. Tendency to act quickly when opportunity ers. One reason that entrepreneurs have difficulty
arises. Entrepreneurs are noted for seizing upon with bureaucracy is that they focus their energies
opportunity, as part of their proactivity. When a on products, services, and customers, rather than
deal is on the horizon, they push themselves and on employees. Some entrepreneurs are gracious
those around them extra hard. Entrepreneurs are to customers and moneylenders but brusque with
company insiders. A blind spot many entrepre- leaders frequently exhibit a cooperative, empowering
neurs have is that they cannot understand why style that includes nurturing team members. According
their employees do not share their passion for to this same perspective and stereotype men are inclined
work and customer focus. As a result, they may be toward a command-and-control, task-oriented leader-
curt with employees who do not share their dedi- ship style. Women find participative management more
cation to the firm. natural than do men because they appear to feel more
8. Eye on the future. Entrepreneurs have the pro- comfortable interacting with people. Furthermore, it is
nounced characteristic of thinking about future argued that women’s natural sensitivity to people gives
deals and business opportunities even before a them an edge over men in encouraging group members
current business is running smoothly. “Where is to participate in decision making. Here, we look briefly
my next deal coming from?” is the mantra of the at some of the evidence and reasoning whether gender
true entrepreneur. Even after accumulating great differences exist in leadership style.
wealth from a current business activity, the en-
The Argument for Male–Female Differences
trepreneurial leader looks toward future opportu-
in Leadership Style
nities. A good example is Marc Benioff, the chair
and CEO of Salesforce, who has acquired 66 com- The pioneering work of Judy Rosener concluded that
panies including Slack. Yet Benioff continues to men and women do tend toward opposite styles. Based
look for the next company to start or acquire. One on self-reports, she found that men tended toward
reason many entrepreneurs focus on the future is a command-and-control style. In contrast, women
that their enthusiasm and passion for their present tended toward a transformational style, relying heavily
product or service may fade over time. on interpersonal skills.52 Later research suggests that
hormonal differences may account for many of these
The entrepreneurial personality carried to an ex- gender differences in leadership style.
treme can lead to addictive behavior, including sub- Based on years of laboratory and field research,
stance abuse. 51 A representative example of this Paul J. Zak of the Claremont Graduate University has
problem would be the entrepreneur who stays at work explored the role of oxytocin in interpersonal rela-
regularly up until midnight searching the Internet for tionships. His findings suggest that women tend to
new customers and product ideas. Such behavior can release more oxytocin than men. As a result, women
lead to a dependence on caffeine and nonprescription are more likely to display empathy, cooperation, and
drugs to sustain energy. trust when working with subordinates and other
To practice one aspect of entrepreneurial leader- work associates. Women would therefore gravitate
ship, do Leadership Skill-Building Exercise 4-5. more naturally to participative leadership than do
men. Another important finding is that positive social
interactions stimulate the release of more oxytocin,
Gender Differences in Leadership Style
thereby making trusting relationships more likely.
Several researchers and observers argue that women Given participative leadership often results in pos-
have certain acquired traits and behaviors that suit them itive relationships, this style of leadership leads to
for relations-oriented leadership. Consequently, women more hormonally induced trust.53
Entrepreneurial Leadership
An important part of the entrepreneurial role is convincing invest or lend money. The entrepreneurs will communicate
others of the merit of your idea so that they will invest in excitement and commitment about their product, along with
your company or lend you money. Two students play the a good business plan. (You might want to quickly review the
role of a team of entrepreneurs who have a new product material about persuasive communication in Chapter 12.)
or service and want to launch a business. (The two entre- The students who are not participating will evaluate how
preneurs choose the product or service.) About five other well the two entrepreneurs displayed aspects of the entre-
students play the role of a group of venture capitalists or preneurial leadership style.
bankers listening to the presentation to decide whether to
360-Degree Feedback for Fine-Tuning a Leadership Approach 105
Recent laboratory studies about oxytocin and trust women believe that women managers can be more hos-
provide modest evidence about the contribution of tile and vindictive than men managers.
the hormone to trusting behavior. In one study it was Perhaps the best approach to leadership takes ad-
found that oxytocin may facilitate trust for those men vantage of the positive traits of both men and women.
who have a low disposition to trust other people.54 Oxy- To compete in the global marketplace, companies need
tocin was administered through a nasal spray, which a diverse leadership team including men and women.
is probably not the same as having a naturally large Not recognizing that both male and female styles are
amount of oxytocin in the system. needed can lead to confusion for women managers.
As corporate leaders, women tend to place greater Even if gender differences in leadership style do
emphasis on forming caring, nurturing relationships exist, a review of the scientific evidence indicates that
with employees. Women are also more likely than men they do not have a meaningful impact on leadership ef-
to praise group members. And when an employee falls fectiveness. A group of researchers attempted to shed
short of expectations, women are more likely to buffer light on the debate about when men or women are
criticism by finding something praiseworthy. perceived to be more effective in leadership positions.
Gender differences in communication also are The research combined the results of ninety-nine inde-
reflected in leadership style. Above all, women are pendent samples from ninety-three studies, in a wide
more likely than men to use spoken communication variety of situations. The results showed that when all
for building relationships and giving emotional sup- leadership contexts are considered, men and women
port.55 Men focus more on disseminating information do not differ in perceived leadership effectiveness. Yet
and demonstrating competence. Women are therefore when rated by others, women tended to be perceived
more likely to choose a relationship-oriented leader- as more effective than men in leadership roles. In con-
ship style. trast, according to self-ratings, men rate themselves sig-
Two studies conducted by leadership development nificantly more effective than women rate themselves.57
consultants Jack Zenger and Joseph Folkman suggest
that corporate women leaders are perceived to be just
as competent as their male counterparts. Women are
often perceived to be more competent than the men. 360-Degree Feedback for Fine-
The research method was to examine a database of Tuning a Leadership Approach
360-degree reviews in which participants were asked
to rate each other’s leadership effectiveness overall, and Learning Objective 4.7 Identify how leaders use
also to judge how strong the leaders were on specific 360-degree feedback to improve their performance.
competencies. (360-degree reviews are multi-source
In most large organizations, leaders not only provide
ratings described in the next section of this chapter.)
feedback to group members but also receive feedback
Women were perceived by their managers to be slightly
that gives them insight into the effects of their attitudes
more effective than men at every organizational level,
and behaviors. This feedback is systematically derived
and in almost all functional areas.
from a full sampling of parties who interact with the
The study found that women were rated as excelling
leader. In particular, 360-degree feedback is a for-
in taking initiative, being resilient, practicing self-devel-
mal evaluation of superiors based on input from peo-
opment, driving for results, and displaying high integ-
ple who work for and with them, sometimes including
rity and honesty. Men were rated as being stronger on
customers and suppliers. It is also referred to as mul-
two capabilities: “develops strategic perspectives” and
tirater feedback. The multiple inputs become another
“technical or professional expertise.” The biggest differ-
way of measuring leadership effectiveness. The specific
ence between men and women leaders was 6.7 percent
360-degree form is often customized to a particular
on the dimension of “takes initiative,” with women at
firm’s needs, but standardized forms are widely used.
percentile 55.6, and men at 48.2.56
Specialists in the field view 360-degree feedback as
more suited for its original purpose of development for
Placing Gender Differences in Leadership a manager or leader than for administrative purposes,
Style in Perspective such as performance evaluation and salary adminis-
To what extent the stereotypes of men and women tration. When used for development, 360-degree feed-
leaders are true is difficult to judge. Even if male and back should emphasize qualitative comments rather
female differences in leadership style do exist, they than strictly quantitative ratings. For example, being
must be placed in proper perspective. Both men and told, “You do not maintain eye contact with me during
women leaders differ among themselves in leadership meetings,” is more helpful than simply receiving a low
style. Plenty of male leaders are relationship oriented, rating on “Makes others feel comfortable.” The feed-
and plenty of women are highly task oriented. Many back is communicated to the leader and interpreted
with assistance from a HR professional or an external a 360-degree evaluation prided herself on how well she
consultant. was liked by others. The feedback that emerged, how-
The data from the survey can be used to help lead- ever, depicted her as intimidating, hostile, and manip-
ers fine-tune their attitudes and behavior. For exam- ulative. Upon receiving the feedback, the woman went
ple, if all the interested parties gave the leader low into a rage (proving the feedback true!) and then into
ratings on “empathy toward others,” the leader might despondency. Professional counseling can sometimes
be prompted to improve their ability to empathize, help a person benefit from critical feedback and place
such as by reading about empathy, attending a sem- it in perspective.
inar, or simply making a conscious attempt to em- For best results, it is extremely important that
pathize when involved in a conflict of opinion with 360-degree surveys reflect those behaviors and attitudes
another person. Research with pairs of leaders and that the organization values most highly. Care should
their subordinates (dyads) indicates that leaders are also be taken that the dimensions measured reflect im-
more likely to trust and respect those feedback reports portant aspects of leadership functioning. Following are
that were given by raters who know well the person some suggestions for making better use of 360-degree
they are rating.58 surveys.60 Better use in this context means that the feed-
An example of a 360-degree feedback form is shown back results in improved leadership effectiveness.
in Figure 4-2. When used for purposes of development, ● Help choose the people who will participate in the
the leader will often provide a self-rating on each di-
survey. Also, personally communicate with those
mension and then compare self-ratings with those of
respondents, and ask them to provide candid
subordinates as well as other work associates. State-
observations.
ment 10, “Has constructive interpersonal relation-
ships” is particularly significant because it reflects
● Create an action plan for improvement for each
a derailment factor. A leader who does not have con- leader based on the feedback. For example, a leader
structive interpersonal relationships is likely to derail rated low on interpersonal skills might benefit from
their career.59 training in emotional intelligence. When a serious
When there is a large gap between self-ratings leadership problem exists, the regular sessions
and ratings by others, professionally trained counsel- might be scheduled with an industrial psychologist
ors or business coaches should be involved in 360-de- or executive coach.
gree feedback. Some people feel emotionally crushed ● Ensure that the managers rated have full ownership
when they find a wide discrepancy between their of the feedback information so that they will per-
self-perception on an interpersonal skill dimension and ceive the feedback as being geared toward personal
the perception of others. A middle manager involved in development rather than administrative control.
Leadership Behavior or Attitude Ratings (1 to 10)
1. Provides guidance and direction to the group related to the work we

are performing.
2. Creates an exciting vision.
3. Gives useful feedback to group members.
4. Sets high performance standards.
5. Motivates the group to perform well, including getting us engaged in

the work
6. Coaches team members as needed.
7. Provides emotional support and encouragement to group members.
8. Gets people working together as a team.
9. Thinks strategically in terms of the future of our group.
10. Has constructive interpersonal relationships.
Figure 4-2 A 360-Degree Feedback Chart.
Selecting the Best Leadership Style 107
● Ensure that there is follow-up with human resource several different styles in one week, such as being au-
professionals to discuss how well changes in behav- tocratic in some situations and democratic in others.61
ior are being accomplished. Another consideration is the national culture in which
the leadership takes place. An effective leadership style
A potential problem with 360-degree feedback is its
for most German workers would be a high performance
anonymity. Much like people who post nasty comments
(task) orientation and a modest amount of compassion
about people on social media websites, an angry sub-
(consideration).62 Scandinavian workers, however, re-
ordinate can write an insulting and crushing comment
spond best to a democratic leadership style.
about a manager on the 360-degree feedback form. The
The organizational culture also influences which
criticism might be without merit.
leadership style will be tolerated and effective. A
friendly, collaborative culture calls for more of a
consensus style of leadership. In contrast, in a per-
form-or-perish culture, a more directive or autocratic
Selecting the Best Leadership Style leadership style will be effective.
Close to fifty years ago, pioneering researcher Ralph
Learning Objective 4.8 Pinpoint how to choose the most Stogdill made a statement about selecting a leadership
appropriate leadership style. style that still holds today: “The most effective leaders
appear to exhibit a degree of versatility and flexibility
An underlying theme of our discussion of leadership that enables them to adapt their behavior to the chang-
styles in this and the next chapter is that there is no ing and contradictory demands made on them.”63
one best or most effective leadership style. A study Before moving on to the end-of-chapter activities,
of 3,000 executives revealed that leaders who get the do Leadership Skill-Building Exercise 4-6 that deals
best results do not rely on one style. Instead, they use with flexibility and adaptability.
Contrasting Leadership Styles

One student plays the role of a new associate working for frustrated associate or the task-oriented leader. A good role
a financial services firm that sells life insurance and other player is both a scriptwriter and an actor.
investments. The associate has completed a six-week Another two students repeat the same scenario, except
training program and is now working full time. Four weeks that this time the manager is a strong relationship-oriented
have passed, and the associate still has not made a sale. leader. Two more pairs of students then have their turn at
The associate’s boss is going to meet this associate today acting out the task-oriented and relationship-oriented per-
to discuss progress. Another student plays the role of a formance reviews. Another variation of this role play is for
task-oriented leader. The two people participate in the re- one person to play the roles of both the task-oriented and
view session. the relationship-oriented boss. Other class members ob-
Before playing (or assuming) the role of the associate or serve and provide feedback on the effectiveness of the two
the boss, think for a few minutes how you would behave if styles of leadership.
you were placed in that role in real life. Empathize with the
Reader’s Roadmap
So far in this book, we have examined the nature of leadership and the inner qualities of leaders, along with their
behaviors, attitudes, and styles. In the next chapter, we describe some of the specific approaches to adapting
one’s leadership approach to the situation.
Summary
Effective leadership requires the right behaviors, others, inspiring trust by being trustworthy, recog-
skills, and attitudes, as emphasized in the classic nizing one’s own limitations, and being bold with
Ohio State University studies. Two major dimen- respect to values, morality, and doing the right
sions of leadership behavior were identified: con- thing. In addition, servant leadership involves fo-
sideration and initiating structure. Consideration cusing on what is feasible to accomplish, lending a
is the degree to which the leader creates an envi- hand, emotional healing, and acting as a role model
ronment of emotional support, warmth, friendli- to emphasize service.
ness, and trust. Making connections with people is Another important style of leader is the entre-
a current aspect of consideration. Initiating struc- preneur. The entrepreneurial style stems from the
ture is the degree to which the leader organizes and leader’s personal characteristics and the circum-
defines relationships in the group by such activities stances of self-employment. It includes a strong
as assigning tasks and specifying procedures. Both achievement drive and sensible risk taking; a high
consideration and initiating structure are related to degree of enthusiasm (including passion) and cre-
important leadership outcomes such as job satisfac- ativity; a typical pattern of being proactive; the
tion and performance. tendency to act quickly on opportunities; a vision-
Many task-related attitudes and behaviors of ef- ary perspective combined with tenacity; a dislike
fective leaders have been identified. Among them of hierarchy and bureaucracy; a preference for
are (1) adaptability to the situation, (2) direction dealing with external customers; and an eye on
setting, (3) high performance standards, (4) concen- the future.
trating on strengths of group members, (5) risk tak- Male–female differences in leadership style
ing and execution of plans, (6) hands-on guidance have been observed. Women have a tendency to-
and feedback, (7) ability to ask tough questions, and ward relationship-oriented leadership, whereas
(8) organizing for collaboration. men tend toward command and control. Perhaps
Many relationship-oriented attitudes and be- the best approach to leadership takes advantage of
haviors of leaders have also been identified. Among the positive traits of both men and women. Even
them are (1) aligning people, (2) openness to work- if gender differences in leadership style do exist, a
ers’ opinions, (3) creating inspiration and visibility, review of the scientific evidence indicates that they
(4) satisfying higher-level needs, (5) giving emo- do not have a meaningful impact on leadership
tional support and encouragement, (6) displaying effectiveness.
patience, (7) promoting principles and values, and Many leaders receive extensive feedback on
(8) reducing task ambiguity. their behaviors and attitudes in the form of 360-de-
Understanding leadership style is an extension gree feedback, whereby people who work for or
of understanding leadership attitudes and behav- with the leader provide feedback on the leader’s per-
ior. Participative leaders share decision making formance. Such feedback is likely to be useful when
with group members. The participative style can be the feedback relates to business goals and strategy
subdivided into consultative, consensus, and dem- and to important aspects of leadership, when the
ocratic leadership. The participative style is well leader helps choose survey participants, when ac-
suited to managing competent people who are ea- tion plans are developed, and when managers own
ger to assume responsibility. Yet the process can be the feedback evaluation, and follow-up is provided.
time consuming, and some managers perceive it to The anonymous comments in 360-degree feedback
be a threat to their power. Autocratic leaders retain can be a problem.
most of the authority for themselves, and are con- Rather than searching for the one best style of
sidered to be task oriented. leadership, managers are advised to diagnose the
Servant leaders are committed to serving oth- situation and then choose an appropriate leader-
ers rather than achieving their own goals. Aspects ship style to match. To be effective, a leader must be
of servant leadership include placing service before able to adapt style to circumstance.
self-interest, listening first to express confidence in
Selecting the Best Leadership Style 109
Key Terms
effective leader 86 management openness 92 democratic leaders 95
consideration 87 leadership style 94 autocratic leaders 96
initiating structure 87 participative leaders 95 servant leader 96
Pygmalion effect 89 consultative leaders 95 entrepreneurial CEO 101
tough question 89 consensus leaders 95 360-degree feedback 105
Servant leadership has become a preferred lead- 4. Focus on the development of group members
ership style in a wide variety of both private and such as giving them an opportunity to acquire
public sector organizations. It is therefore worth new skills and become leaders.
considering a variety of suggestions for practicing 5. Several studies have shown that introversion,
servant leadership, as follows: or at least not exaggerated extraversion, is asso-
ciated with servant leadership. To be a servant
1. A useful starting point in becoming a servant
leader it is therefore helpful to sometimes em-
leader is to emphasize ethical behavior, which
phasize the introverted side of your personality.
will in turn help group members recognize that
6. A useful tactic for being a servant leader is to
you are working in their best interests.
ask the group how you can help them within
2. One of the most vital components of servant
the limits of your authority and budget.
leadership is listening carefully to get to know
7. Show care and concern for all stakeholders, not
the concerns, requirements, and problems of
just employees and customers.
group members.
8. Every working day spend a few minutes thinking
3. An easy-to-implement component of servant
about how you can add value to the group’s efforts.
leadership is to acknowledge your limitations
9. Recognize that all positions in the organization
and seek the contribution of others to compen-
are important, and that each one contributes to
sate for these limitations.
the overall functioning of the organization.
Discussion Questions and Activities 6. Why do so many CEOs say they want entrepre-
neurial style leaders in their company even though
1. What is your opinion of the appropriateness of the the company is essentially a large bureaucracy?
executive chair of Stitch Fix still spending time as- 7. Why would being a highly narcissistic person inter-
sembling boxes of clothing choices for clients? fere with being an effective servant leader?
2. Give an example of a high-consideration behavior 8. Why might it be helpful to have a mentor or coach
that a supervisor of yours showed on your behalf. who is a hands-on leader?
What was your reaction to this behavior? 9. Why is shared or participative leadership likely to
3. Why is direction setting still an important lead- be effective with well-educated and intelligent team
ership behavior in an era of empowerment and members?
shared leadership? 10. Several people have commented that this chapter
4. How long should a patient leader wait for a poor deals with the “nuts and bolts of leadership.” What
performer to attain performance standards? makes them say that?
5. How might both task-oriented and relation-
ship-oriented leadership styles contribute to the
bottom line (a company being profitable)?
Lola Asks Tough Questions assistant, and asked her, “How can I improve
Lola majored in business administration with a my communication with you?” Brooklyn re-
concentration in marketing, and she is delighted sponded, “I thought that our communication
with her career progress. She joined the fro- was pretty good.”
zen-food division of a large company ten years While having lunch with Geoff, the director
ago as a product specialist for frozen Indian food. of human resources, Lola asked, “Can you please
Lola says with a smile, “I was torn between Asian explain to me how your group is increasing our
studies and marketing. My first job was therefore revenue, improving our products or saving us
a perfect fit for my interests.” money?” Geoff replied, “With all due respect
Lola now holds the position of general man- Lola, you need more information about what HR
ager of frozen foods, with a team of six people does for an organization.”
directly reporting to her, and 350 total employ- The following week during a staff meeting,
ees. Lola has learned that a leader does not have Lola asked her team, “What should I be doing to
all the answers, and so should ask lots of ques- help make our group the best frozen-food divi-
tions. She also believes that the right questions sion in the industry?” Margot, the director of sup-
will get people thinking. ply chain management, responded: “I’m going to
During a recent meeting with her sales man- need time to think about this one.”
ager, Marvin, Lola asked him, “What’s to prevent
consumers from serving mostly inexpensive fresh
Questions
food instead of purchasing our expensive prod-
ucts?” Marvin responded, “Let me think about 1. How effective does Lola appear to be in her
that one. It never occurred to me that our indus- approach of asking tough questions as a
try was in jeopardy.” leadership technique?
The next day Lola sent a text message to Quinn, 2. What suggestion can you offer Lola to make
a new product development specialist, that asked, her questioning technique more effective?
“How have you justified your pay this month?” 3. Which style of leadership does Lola ap-
Quinn sent a message back, “I’ve been working pear to be demonstrating when she asks her
forty-five hours a week. Isn’t that enough?” team, “What should I be doing to help make
The following day, Lola dropped by the cubi- our division the best pet-food division in the
cle of Brooklyn, the department administrative industry?”

In this group role play, one student plays the role questions will answer in the manner that seems best
of Lola who wants to ask tough questions of her without entering into strong conflict with Lola. Other
team. Four other students play the roles of Marvin, class members will provide feedback on both the ef-
Brooklyn, Quinn, and Geoff, each of whom receives fectiveness of Lola’s questioning, and the effectiveness
the “tough question” asked by Lola in the case just of the response of the team members.
presented. The team members who receive the
The Worrisome 360-Degree Survey Rasheed: I can see some room for improvement,
Rasheed is the manager of operations in a cred- but one important fact this 360-degree survey
it-card processing company, Ultrapay, and he overlooks is that our operations team is do-
reports to the CEO, Kelsey. Several years ago, ing well. Profits increased by 6.5 percent last
Ultrapay began using a 360-degree survey as a year. After all, we are a business that needs to
major part of the performance appraisal of man- be profitable to stay afloat.
agers. The participants in the survey include a Kelsey: I applaud you for the good results you and
manager’s direct boss, several other managers your team have achieved, yet I do see room for
with whom the manager interacts regularly, plus improvement for you as a manager and leader.
direct reports. (The direct reports are those sub- I would like you to develop a personal im-
ordinates who report directly to the manager, but provement plan within the next 30 days.
not the subordinates of the direct supports.) Rasheed: I’ll develop a few ideas for improve-
Today Rasheed is meeting with Kelsey for his ment even though I still think I’m perform-
annual performance appraisal. Kelsey explains ing quite well in my role.
that the key purpose of the meeting is to review Kelsey: I have faith in you, Rasheed. If you need
the results of the 360-degree survey that Rasheed any help in developing your improvement
has already received digitally. She begins by ask- plan, get back in touch with me or contact
ing Rasheed what he thinks of the results of the our HR director Emily anytime. She has
survey. (The results of the survey are presented in good insights into management and leader-
the accompanying exhibit.) ship development.
Exhibit: The 360-Degree Feedback Chart for
Rasheed: I see a few good suggestions here, yet Rasheed Based on 15 Ratings
I don’t take the overall results too seriously.
I get the impression that some of the peo- Average
ple who filled out the form are looking for Management Behavior or Rating
a touchy-feely boss. They care less about the Attitude (1 to 10)
fact that we are a business operation with 1. Provides clear performance ex- 6.1
very tight profit margins. pectations to team members
Kelsey: Please give me a few more details about 2. Creates an exciting vision 4.3
what you mean.
Rasheed: My two highest ratings are for state- 3. Prepares a workable budget 8.1
ment 3, “Prepares a workable budget,” and 4. Gives useful feedback to team 3.3
statement 5, “Sets high-performance stan- members
dards.” Those are two critical factors for a 5. Sets high-performance 7.2
credit-card payment company. My two low- standards
est ratings are for statement 4, “Gives useful
6. Motivates the group to perform 4.4
feedback to team members,” and statement 7,
well, including getting us en-
“Is an approachable, friendly leader and man-
gaged in the work
ager.” Maybe when I give direct suggestions
for improving performance, people don’t 7. Is an approachable, friendly 3.1
like it too much. Maybe I would be more ap- leader and manager
proachable if I spent less time on improving 8. Coaches team members as 4.2
our business results. Yet I never fail to respond needed
to a request from a subordinate or colleague. 9. Thinks strategically in terms of 7.6
Kelsey: I agree with you, Rasheed, that a focus the future of our group
on business results is important. However, it
10. Anticipates potential problems 6.4
looks like you are not paying enough attention
and involves us in planning
to other parts of a leader’s or manager’s job
how to deal with or prevent
such as creating an exciting vision, providing
them
useful feedback, and doing enough coaching.
Please provide a few comments about Rasheed’s placed as a budget manager or strategy
effectiveness as a manager and leader, and what specialist.”
he can do to become even more effective. Five ● “Rasheed is trying to be an effective man-
representative comments follow: ager, but he has a long way to go to become
one. How about sending Rasheed to an in-
● “I give Rasheed credit for focusing on pro-
tensive program of management and leader-
ductivity and high performance, but he is
ship development?”
lacking in the human qualities to achieve
what he wants. He needs to become a
Questions
warmer person.”
● “Rasheed is doing what he can to move the 1. Should Kelsey begin the process of demoting
group forward. Yet he could be a little stron- Rasheed from his management position?
ger on the human touch.” 2. What should Rasheed do to improve his per-
● “I like being on Rasheed’s team. He is kind formance as a leader and manager based on
of an old-school manager who focuses on re- the 360-degree survey?
sults. Maybe he could give us a few creative 3. How seriously should Kelsey take the results
suggestions for performing better.” of the 360-degree survey?
● “Rasheed is a nice guy who maybe should 4. How seriously should Rasheed take the re-
not be a manager. He might be better sults of the 360-degree survey?

One student plays the role of Rasheed who wants to who wants to convince Rasheed that based on the
convince Kelsey that the 360-degree survey provides results of the 360-degee survey he needs considerable
data suggesting that he is a highly effective manager development as a leader and manager. Run the role
and leader. Another student plays the role of Kelsey play for about ten minutes with considerable emotion.
For this addition to your leadership portfolio, identify four supermarkets and home-improvement stores. The group was
leadership task-oriented behaviors or relationship-oriented hitting a wall because in their Internet searches, they were find-
behaviors that you have demonstrated during the last two ing mostly advertisements for Home Depot and the like. I sug-
weeks. Your list can comprise any combination of the two gested that we each visit a supermarket or home-improvement
sets of behaviors. Also jot down the result you achieved by store and make firsthand observations of the customers who
exercising these behaviors. Here is an example: were using the automated checkout system. I also suggested
“Thursday night, I applied direction setting and it really we ask a couple of questions of the store associate supervis-
worked. We have a group assignment in our marketing class ing the activity. The group loved my idea, and the project was a
with each group consisting of about five people. Our assign- big success. We supplemented written articles with a firsthand
ment is to analyze how well employee self-service is working in field study. I set the group in the right direction.”
Notes 113
Notes
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Robert C. Liden, Sandy J. Wayne, Hao Zhao, and and Mateja Dronovsek, “The Nature and Experi-
David Henderson, “Servant Leadership: Develop- ence of Entrepreneurial Passion,” Academy of Man-
ment of a Multidimensional Measure and Multi- agement Review, July 2009, pp. 511–532.
Level Assessment,” The Leadership Quarterly, April 47. Noam Wasserman, “How an Entrepreneur’s Pas-
2008, pp. 161–177. sion Can Destroy a Startup,” The Wall Street Jour-
35. Robert C. Liden et al., “Servant Leadership: Valida- nal, August 25, 2014, p. R1.
tion of a Short Form of the SL-28,” The Leadership 48. Leon C. Prieto, “Proactive Personality and Entre-
Quarterly, April 2015, p. 256. preneurial Leadership: Exploring the Moderating
36. Dirk van Dierendonck and Inge Nuijten, “The Role of Organizational Identification and Political
Servant Leadership Survey: Development and Skill,” Academy of Entrepreneurship Journal, July 1,
Validation of a Multidimensional Measure,” Jour- 2010, pp. 1–16.
nal of Business and Psychology, September 2011, 49. Reid Hoffman, “Entrepreneurship Is a Mindset,”
pp. 249–267. Entrepreneur, March 2021, p. 19.
37. Jane T. Waddell, “Servant Leadership,” School of 50. “The World’s 50 Most Innovative Companies,” Fast
Leadership Studies Regent University (www.regent Company, March 2010, p. 67.
.edu) August 2006, p. 3. 51. “Can Entrepreneurship Be Taught?” The Wall Street
38. Emily M. Hunter et al., “Servant Leaders Inspire Journal, March 19, 2012, p. R4.
Servant Followers: Antecedents and Outcomes for 52. Judy Rosener, “Ways Women Lead,” Harvard
Employees and the Organization,” The Leadership Business Review, November–December 1990,
Quarterly, April 2013, pp. 316–331. pp. 119–125.
Notes 115
53. Kenneth Nowack, “Are Women More Effective 59. Steven E, Markham, Janice Witt Smith, Ina S.
Leaders than Men?” Pulse (www.linkedin.com), Markham, and Kristian F. Braekkan, “A New Ap-
June 9, 2015, pp. 1–4; Paul J. Zak and Lacek Kugler, proach to Analyzing the Achilles’ Heel of Multi-
“Neuroeconomics and International Studies: A source Feedback Program: Can We Really Trust
New Understanding of Trust,” International Studies Ratings of Leaders at the Group Level of Analysis?”
Perspectives, no. 2, May 2011, pp. 136–152. The Leadership Quarterly, December 2014, p. 1120.
54. Carolyn Declerck, “Behavioural and Social Sci- 60. Jack Zenger and Joseph Folkman, “What Makes
ences at Nature Research,” (https://socialsciences a 360-Degree Review Successful?” Harvard Busi-
.nature.com), June 2020, pp. 1–6. ness Review (https://hbr.org), December 23, 2020,
55. Much of the research on this topic is summarized pp. 1–7; Harriet Edleson, “Do 360 Evaluations
in Mary Crawford, Talking Difference: On Gender Work?” Monitor on Psychology, November 2012,
and Language (London: SAGE Publications, 1995). pp. 58–60; Bruce Pfau and Ira Kay, “Does 360-Degree
56. Jack Zenger and Joseph Folkman, “Research: Feedback Negatively Affect Company Performance?”
Women Score Higher Than Men in Most Leader- HR Magazine, June 2002, pp. 58–59.
ship Skills,” Harvard Business Review (https://hbr 61. Daniel Goleman, “Leadership That Gets Results,”
.org), June 25, 2019, pp. 1–10. Harvard Business Review, March–April 2000,
57. Samantha C. Paustian-Underdahl, Lisa Slattery pp. 78–90.
Walker, and David J. Woehr, “Gender and Percep- 62. Felix Brodbeck, Michael Frese, and Mansour
tions of Leadership Effectiveness: A Meta-Analysis Havidan, “Leadership Made in Germany: Low on
of Contextual Moderators,” Journal of Applied Compassion, High on Performance,” Academy of
Psychology, November 2014, pp. 1129–1145. Management Executive, February 2002, pp. 16–30.
58. Steven F. Markham, Ina S. Markham, and Janice 63. Ralph M. Stogdill, “Historical Trends in Leadership
Witt Smith, “At the Crux of Dyadic Leadership: Theory and Research,” Journal of Contemporary
Self-other Agreement of Leaders and Direct Business, Autumn 1974, p. 7.
Reports—Analyzing the 360-Degree Feedback,” The
Leadership Quarterly, December 2015, p. 975.
5
Chapter
Contingency and
Situational Leadership
Learning Objectives
After studying this chapter and doing the exercises, you 5.4 Describe how the leader-member exchange (LMX) model
should be able to is a contingency theory.
5.1 Describe how the situation influences the choice of 5.5 Articulate the basics of leadership during a crisis.
leadership objectives. 5.6 Enumerate how evidence-based leadership
5.2 Present an overview of Fiedler’s contingency theory of can contribute to contingency and situational
leadership effectiveness. leadership.
5.3 Characterize the path-goal theory of leadership effectiveness.
Chapter Outline
Situational Influences on Effective Leadership Behavior Leader–Member Exchange and Contingency Theory
Fiedler’s Contingency Theory of Leadership Effectiveness Leadership During a Crisis
Measuring Leadership Style: The Least Preferred Coworker Crisis Leadership Attributes and Behaviors with
(LPC) Scale a Relationship Emphasis
Measuring the Leadership Situation Evidence-Based Leadership for the Contingency and
Overall Findings Situational Approach
Making the Situation More Favorable for the Leader Summary
Evaluation of Fiedler’s Contingency Theory Key Terms
The Path-Goal Theory of Leadership Effectiveness Guidelines for Actions and Skill Development
Matching the Leadership Style to the Situation Leadership Case Problem A
Steps Leaders Can Take to Influence Performance Leadership Case Problem B
and Satisfaction Notes
E
nrique Lores is the president and chief executive offi- champions environmental sustainability and diversity and in-
cer (CEO) of HP Inc., a global technology business en- clusion in all the communities in which it operates. As the pan-
terprise whose product and service portfolio includes demic hit in 2020, Lores said two things he wanted the company
printing, personal systems, and 3D printing and manufacturing to be more associated with were 3D printers and any products
technology. HP has operations in more than 170 countries, and that help people work from home.
116
Situational Influences on Effective Leadership Behavior 117
During his thirty-plus-year career with HP, Lores has held Lores commented at the outset of the company involve-
senior leadership positions in the company’s Personal Systems, ment in the crisis, “HP and our digital manufacturing partners
Print, Industrial, and Services businesses in both domestic and are working nonstop in the battle against this unprecedented
international assignments. Lores was a major player in the sep- virus. We are collaborating across borders and industries to
aration of Hewlett-Packard Company in 2015 into two distinct identify the parts most in need, validate the design, and begin
companies: HP Inc. manufactures and sells PCs and printers, 3D printing.”
and Hewlett Packard Enterprises focuses on hardware and en- Lores also said that being a leader means showing human-
terprise systems. ity. He explained that the most important responsibility he had
Under the leadership of Lores, in 2020 HP began using during the pandemic was protecting company employees and
3D printers and its technology expertise to help fight coronavirus. making sure HP was doing everything possible to keep employ-
HP Inc. and partners using its 3D printers printed medical parts ees and their families healthy and safe. To Lores, leadership
needed to fight COVID-19 pandemic. At the same time, the is about making sure employees know they are seen, that the
company made its 3D design files for parts freely available. The company is standing with them, and that everyone is dealing
large-scale effort included supplying hospitals with parts, and with the problem together. He emphasized that this attitude
producing critical face shields used by medical staff who treat would not change when the pandemic is over because empathy
patients with COVID-19. HP delivered 3D printed parts to local is a core competency of leadership.
hospitals, and to its research and development centers across Lores said that he was proud of the way HP teams around
the United States and in Barcelona. the world stepped forward to create and launch new technol-
HP also coordinated efforts with governments and health ogies. During the crisis, Lores emphasized that while weath-
authorities as well as industries across the globe. The company ering the storm and helping humanity, HP should focus on
extended its manufacturing to include mask adjusters, respira- unique opportunities. He said that the trick is to find them, an-
tor parts, hands-free door openers, and nasal swabs. A mask alyze them, and seize them–such as ramping up the supply of
adjuster enables the health professional adjust the mask for a coronavirus-related products to hospitals.
better fit, and minimize ear pain if the face shield has to work for Lores began his career as an HP intern in 1989. He received
long hours at a stretch. Validated design files were released for a degree in electrical engineering from the Polytechnic University
many of the parts that do not require complex assembly. of Valencia, and an MBA from the ESADE Business School.
The story about the technology executive illustrates an Situational Influences on

increasingly important leadership task: leading peo-
ple and an organization through a crisis. Leadership
Effective Leadership Behavior
of this type is a special case of the general subject of Learning Objective 5.1 Describe how the situation
this chapter—adjusting one’s approach to the situation. influences the choice of leadership behavior.
Contingency and situational leadership further expand
the study of leadership styles by adding more spe- The situation can influence the leadership behavior
cific guidelines about which style to use under which or style a leader emphasizes. The essence of a contin-
circumstance. gency approach to leadership is that leaders are
In this chapter, we present an overview of the situ- most effective when they make their behavior contin-
ational perspective on leadership. We then summarize gent on situational forces, including group member
two classic contingency theories of leadership: Fiedler’s characteristics. Both the internal and the external en-
contingency theory and the path-goal theory. We also vironment have a significant impact on leader effec-
explain how a contemporary theory, the leader–member tiveness. For example, the quality of the workforce and
exchange (LMX), contributes to understanding the the competitiveness of the environment can influence
contingency perspective. In addition, we describe crisis which behaviors the leader emphasizes. A manager
leadership because leading others through a crisis has who supervises competent employees might be able to
become a frequent challenge. Finally, we describe how practice consensus leadership readily. And a manager
evidence-based leadership and management contribute who faces a competitive environment might find it eas-
to the contingency approach. ier to align people to pursue a new vision.
118 Chapter 5 Contingency and Situational Leadership
A useful perspective on implementing contingency leadership assume that certain types of leader be-
leadership is that the manager must be flexible enough havior work in every situation. Situational theorists
to avoid clinging to old ideas that no longer fit the cur- disagree strongly with this position. Instead, a spe-
rent circumstances.2 Being stubborn about what will cific type of leadership behavior might have dif-
work in a given situation and clinging to old ideas can ferent outcomes in different situations. The leader
result in ineffective leadership. The effective leader behavior of empowerment illustrates this idea.
adapts to changing circumstances. For example, at one Perhaps empowerment will work for our coffee
point, offering employees generous benefits might not shop owner because she has a group of dedicated
have been motivational. In reality, a benefit such as workers who want their jobs and her enterprise to
flexible work arrangements can actually be helpful in endure. However, empowering incompetent work-
attracting and retaining workers. ers with a weak work ethic is likely to backfire be-
The leader needs to take into account the major sit- cause the workers will most likely resist additional
uational variable of organizational culture when choos- responsibility.
ing which approach to leadership will lead to favorable 4. The type of organization influences which lead-
outcomes. A command-and-control leadership style ership approach is best. Henry Mintzberg has
may not be effective in a company with a collaborative, identified the form of organization as a key situ-
friendly organizational culture. If the culture seems at ational variable influencing which approach to
odds with what a highly placed leader wants to accom- leadership is likely to be most effective. Two exam-
plish, the leader may attempt to change the culture. ples will suffice here. In an entrepreneurial organi-
Victor H. Vroom and Arthur G. Jago have identi- zation, the key leader will engage in considerable
fied three conclusions about the role of situations in doing and dealing as well as creating visions. In
leadership, and these findings support the model of a classic bureaucracy, the leader will engage in a
leadership presented in Figure 1-2, Chapter 1. The con- considerable amount of controlling.4
clusions are geared to support the idea that leadership
involves motivating others to work collaboratively in In this chapter, as well as throughout the book,
the pursuit of a common goal.3 We add a fourth conclu- possible situational factors are mentioned that should
sion, focused on the organization structure. be taken into consideration in leading others. A gen-
eral approach to being aware of all these factors is
1. Organizational effectiveness is affected by sit- for the leader to be mindful of events in the environ-
uational factors not under leader control. The ment. If you are mindful, you are sensitive to what
leader might be able to influence the situation, yet is happening around you. According to mindfulness
some situational factors are beyond the leader’s researcher Jon Kabat-Zinn, you learn to pay atten-
complete control. The manager of a prosperous, in- tion on purpose to the present moment, in a non-
dependent coffee shop might be running her busi- judgmental way, to whatever arises in your leadership
ness and leading her employees successfully for situation.5
ten years. Suddenly, a Starbucks opens across the Leadership Self-Assessment Quiz 5-1 provides you
street, thereby seriously affecting her ability to lead an opportunity to think about your tendencies toward
a successful enterprise. She might be smart enough taking a situational perspective as a leader.
to have a contingency plan of offering services Star-
bucks cannot equal, yet staying in business will be
a struggle.
Fiedler’s Contingency Theory
2. Situations shape how leaders behave. Contin-
gency theorists believe that forces in the situation of Leadership Effectiveness
are three times as strong as the leader’s personal
Learning Objective 5.2 Present an overview of Fiedler’s
characteristics in shaping the leader’s behavior. contingency theory of leadership effectiveness.
How the leader behaves is therefore substantially
influenced by environmental forces. In the face Fred E. Fiedler developed a widely researched and
of competition from Starbucks, our coffee shop quoted contingency model many years ago that holds
proprietor might now act with a greater sense of that the best style of leadership is determined by the
urgency, be much more directive in telling her situation in which the leader is working.6 Here we ex-
workers what to do, and become much less warm amine how the style and situation are evaluated, the
and friendly. Her normal level of enthusiasm overall findings of the theory, and how leaders can
might also diminish. modify situations to their advantage. Although this
3. Situations influence the consequences of leader theory is no longer the subject of research, it still pro-
behavior. Popular books about management and vides a few useful suggestions for today’s leader.
Fiedler’s Contingency Theory of Leadership Effectiveness 119
Measuring Your Situational Perspective

Instructions: Indicate how well you agree with the following statements, using the following scale: DS = disagree strongly;
D = disagree; N = neutral; A = agree; AS = agree strongly. Circle the most accurate answer.
DS D N A AS
1. Workers need to be carefully trained before you can place high expectations 1 2 3 4 5
on them.
2. Workers who are more knowledgeable have less need of small, day-by-day 1 2 3 4 5
goals.
3. Workers who are self-confident and intelligent require less supervision and 1 2 3 4 5
guidance than do other workers.
4. Workers who are anxious usually need a lot of reassurance. 1 2 3 4 5
5. Most workers learn at about the same pace, so the manager can give about 5 4 3 2 1
the same amount of instruction to each worker.
6. The same well-delivered pep talk will usually appeal to workers at all levels. 5 4 3 2 1
7. A manager will usually need to provide clear directions during a crisis. 1 2 3 4 5
8. As a manager, I would invest the least amount of time supervising the most 1 2 3 4 5
competent workers.
9. An effective approach to supervising emotionally immature workers is to 5 4 3 2 1
grant them a lot of freedom.
10. It is best not to put much effort into supervising unenthusiastic staff 5 4 3 2 1
members.
11. An effective leader delegates equal types and amounts of work to group 5 4 3 2 1
members.
12. If I noticed that a team member appeared to be insecure and anxious, I 1 2 3 4 5
would give them especially clear instructions and guidance.
13. Many competent workers get to the point where they require relatively lit- 1 2 3 4 5
tle leadership and supervision.
14. Whether a person is a younger adult or older adult often influences the 1 2 3 4 5
best approach to leading them.
15. A person’s cultural background usually has no significance in providing the 5 4 3 2 1
appropriate leadership.
Scoring and Interpretation
● 46–75 points: You have (or would have) a strong situational perspective as a leader and manager.
● 31–45 points: You have (or would have) an average situational perspective as a leader and manager.
● 15–30 points: You rarely take (or would take) a situational perspective as a leader and manager.
Skill Development: For the vast majority of leadership and management assignments, it pays to sharpen your situational
perspective. If you scored lower than you want, sharpen your insights into situations by asking yourself, “What are the key
factors in this situation that will influence my effectiveness as a leader and manager?” Study both the people and the task in
the situation.
Measuring Leadership Style: The Least (1) leader–member relations measure how well the
Preferred Coworker (LPC) Scale group and the leader get along; (2) task structure mea-
sures how clearly the procedures, goals, and evaluation
Fiedler’s theory classifies a manager’s leadership style as of the job are defined; and (3) position power measures
relationship motivated or task motivated. Style is there- the leader’s authority to hire, fire, discipline, and grant
fore based on the extent to which the leader is relation- salary increases to group members.
ship motivated or task motivated. According to Fiedler, Leader–member relations contribute as much to
leadership style is a relatively permanent aspect of behav- situation favorability as do task structure and position
ior and thus difficult to modify. Leaders are regarded as power combined. The leader therefore has the most
having a consistent style of task or relations orientation. control in a situation in which relationships with mem-
Fiedler reasons that once leaders understand their partic- bers are the best.
ular leadership style, they should work in situations that
match that style. Similarly, the organization should help
managers match leadership styles and situations. Overall Findings
The LPC scale measures the degree to which a
leader describes favorably or unfavorably their LPC— The key points of Fiedler’s contingency theory are sum-
that is, an employee with whom the leader could work marized and simplified in Figure 5-1. The original theory
the least well. The coworker is rated on a series of eigh- is much more complex. Leadership effectiveness depends
teen polar-opposite adjectives, such as the following: on matching leaders to situations in which they can exer-
cise more control. A leader should therefore be placed in
a situation that is favorable to, or matches, their style.
Pleasant 8 7 6 5 4 3 2 1 Unpleasant
If this cannot be accomplished, the situation might be
Tense 1 2 3 4 5 6 7 8 Relaxed modified to match the leader’s style by manipulating one
or more of the three following situational variables.
The general idea of the LPC approach is that if The theory states that task-motivated leaders per-
you have a positive, charitable attitude toward people form the best in situations of both high control and low
you had a difficult time working with, you are prob- control. Relationship-motivated leaders perform the
ably relationship oriented. In contrast, if you take a best in situations of moderate control. The results of
dim view of people who gave you a hard time, you many studies indicated that the relationship-motivated
are probably task oriented. The message here is that a leader outperformed the task-motivated leader in three
relationship-oriented leader should be able to work well of the eight situations but that the reverse was true in
with a variety of personalities. the other five situations. The eight situations result
from each of the three situational variables being clas-
sified in one of two ways (good or poor, high or low, or
Measuring the Leadership Situation strong or weak), as shown in Figure 5-2.
Fiedler’s contingency theory classifies situations as Task-motivated leaders perform better in situations
high, moderate, and low control. The more control that that are highly favorable for exercising control because
the leader exercises, the more favorable the situation they do not have to be concerned with the task. Instead,
is for the leader. The control classifications are deter- they can work on relationships. In moderately favorable
mined by rating the situation on its three dimensions: situations, the relationship-motivated leader achieves
Task-motivated leaders Relationship-motivated Task-motivated leaders

perform best when they have leaders perform best when perform best when they
the most control (highly they have moderate control have low control (highly
favorable). (moderately favorable). unfavorable).
High Moderate Low
AMOUNT OF SITUATIONAL CONTROL BY LEADER
a. Leader–member relations Both favorable and a. Leader–member relations

are good. unfavorable factors are are poor.
b. Task is well structured. present. b. Task is poorly structured.
c. Leader has high position c. Leader has low position
power. power.
Figure 5-1 Summary of Findings from Fiedler’s Contingency Theory.
The Path-Goal Theory of Leadership Effectiveness 121
Situational Characteristics
Situation (Octant)
Number 1 2 3 4 5 6 7 8
Leader–Member Relations Good Good Good Good Poor Poor Poor Poor
Task Structure High High Low Low High High Low Low
Position Power Strong Weak Strong Weak Strong Weak Strong Weak
Figure 5-2 The Eight Different Situations in Fiedler’s Contingency Theory.
higher group productivity by being able to work on re- contingency nature of leadership. At one time, it was
lationships and not get involved in micromanaging. In used extensively as the basis for leadership training
very-low-control situations, the task-motivated leader programs. The model has also alerted leaders to the im-
is able to structure and make sense out of confusion, portance of sizing up the situation to gain control. At
whereas the relationship-motivated leader wants to give the same time, Fielder pioneered in taking into account
emotional support to group members or call a meeting. both traits and the situation to better understand lead-
ership.7 Despite its potential advantages, however, the
contingency theory is too complicated to have much of
Making the Situation More an impact on most leaders.
Favorable for the Leader
A practical implication of contingency theory is that
leaders should modify situations to match their lead-
ership style, thereby enhancing their chances of be- The Path-Goal Theory of
ing effective. Consider a group of leaders who are task Leadership Effectiveness
motivated and decide that they need to exercise more
control over the situation to achieve higher work unit Learning Objective 5.3 Characterize the path-goal theory
productivity. To increase control over the situation, of leadership effectiveness.
they can do one or more of the following:
The path-goal theory of leadership effectiveness, as
● Improve leader–member relations through display- developed by Robert House, specifies what a leader
ing an interest in the personal welfare of group must do to achieve high productivity and morale in a
members, having meals with them, actively listen- given situation. In general, a leader attempts to clar-
ing to their concerns, telling anecdotes, and in gen- ify the path to a goal for a group member so that the
eral being a nice person. group member receives personal payoffs. At the same
● Increase task structure by engaging in behaviors time, this group member’s job satisfaction and perfor-
related to initiating structure, such as being more mance increase.8 Similar to the expectancy theory of
specific about expectations, providing deadlines, motivation on which it is based, path-goal theory is
showing samples of acceptable work, and providing multifaceted and has several versions. Its key features
written instructions. are summarized in Figure 5-3.
The theory is so complex that it is helpful to con-
● Exercise more position power by requesting more
sider an overview before studying more of the details.
formal authority from higher management. For ex-
The major proposition of path-goal theory is that the
ample, the leader might let it be known that they
manager should choose a leadership style that takes
have the authority to grant bonuses and make
into account the characteristics of the group mem-
strong recommendations for promotion.
bers and the demands of the task. Furthermore, ini-
Now imagine a relationship-motivated leader who tiating structure will be effective in situations with a
wants to create a situation of moderate favorability so low degree of subordinate task structure but ineffec-
that the leader’s interests in being needed by the group tive in highly structured task situations. The rationale
could be satisfied. The leader might give the group tasks is that in the first situation, subordinates welcome
of low structure and de-emphasize the position’s power. initiating structure because it helps provide structure
to their somewhat ambiguous tasks. Instead of just
flailing around, the leader provides guidance. In the
Evaluation of Fiedler’s Contingency Theory situation of highly structured tasks, more structure is
A major contribution of Fiedler’s work is that it seen as unnecessary and associated with overly close
has prompted others to conduct studies about the supervision.9
Characteristics of
Group Members
(Contingency factors)
LEADERSHIP STYLE
Directive OUTCOMES
Supportive Productivity
Participative Morale
Achievement-oriented
(Contingency factors)
Demands of
the Task
Figure 5-3 The Path-Goal Theory of Leadership.
In his reformulated version of path-goal theory, satisfaction and task accomplishment. Three broad clas-
House offered a meta-proposition, which provides a sifications of contingency factors in the environment are
capsule summary of a dizzying number of studies and (1) the group members’ tasks, (2) the authority system
theorizing in relation to the theory. Understanding this within the organization, and (3) the work group.
meta-proposition would be a good take-away from the To use path-goal theory, the leader must first assess
theory: For leaders to be effective, they should engage the relevant variables in the environment. Then the
in behaviors that complement subordinates’ environ- leader selects one of the four styles listed next that fits
ments and abilities. They should engage in these be- those contingency factors best:
haviors in a manner that compensates for deficiencies
1. Directive style. The leader who is directive (similar
and that enhances subordinate satisfactions as well as
to task motivated) emphasizes formal activities such
individual and work unit performance.10 For example,
as planning, organizing, and controlling. When the
if our coffee shop owner found that one of her work-
task is unclear, the directive style improves morale.
ers was fearful of losing their job because of Starbucks
competition, she would give that worker lots of encour- 2. Supportive style. The leader who is supportive
agement and explain the survival plan of the coffee (similar to relationship motivated) displays concern
shop in detail. for group members’ well-being and creates an emo-
Two key aspects of this theory will be discussed: tionally supportive climate. The supportive leader
matching the leadership style to the situation and enhances morale when group members work on
steps the leader can take to influence performance and dissatisfying, stressful, or frustrating tasks. Group
satisfaction. members who are unsure of themselves prefer the
supportive leadership style.
3. Participative style. The leader who is participative
Matching the Leadership Style consults with group members to gather their sugges-
to the Situation tions, and then considers these suggestions seriously
Path-goal theory emphasizes that the leader should when making a decision. The participative leader is
choose among four leadership styles to achieve opti- best suited for improving the morale of well-moti-
mum results in a given situation. Two important sets vated employees who perform nonrepetitive tasks.
of contingency factors are the type of subordinates and 4. Achievement-oriented style. The leader who
the tasks they perform (a key environmental factor). is achievement oriented sets challenging goals,
The type of subordinates is determined by how much pushes for work improvement, and sets high ex-
control they think they have over the environment (lo- pectations for team members, who are also ex-
cus of control) and by how well they think they can do pected to assume responsibility. This leadership
the assigned task. style works well with achievement-oriented team
Environmental contingency factors are those that are members and with those working on ambiguous
not within the control of group members but influence and nonrepetitive tasks.
The Path-Goal Theory of Leadership Effectiveness 123
Applying Supportive Leadership

A group of tax accountants is having a difficult and frustrat- state government. Other clients are angry that they did not
ing tax season. The group prepares complicated returns receive a tax refund.
that very few people want to attempt by themselves even One student plays the role of the leader of this group who
with the use of tax-preparation software. Dozens of changes will attempt to apply the supportive leadership style to this
and nuances have been introduced into tax laws this year group either during an in-person meeting or a videoconfer-
by the Internal Revenue Service. Clients have been calling, ence. Several other students will play the role of the frustrated,
emailing, and texting with loads of questions and demands. overworked, and dissatisfied clients. Run the role play for
When a tax accountant completes a return, the client often about ten minutes. Observers might provide feedback about
complains about having to pay more money to the federal or how well the leader executed the supportive leadership style.
A leader can sometimes successfully combine more Leadership Skill-Building Exercise 5-1 gives the op-
than one of the four styles, although this possibility is portunity to practice one component of the path-goal
not specified in path-goal theory. For example, during theory.
a crisis, such as a major product recall, the marketing
manager might need to be directive to help the group
take fast action. After the initial emergency actions Steps Leaders Can Take to Influence
have been taken, the leader, recognizing how stressed Performance and Satisfaction
the workers must be, might shift to a supportive mode. In addition to recommending the leadership style to fit
Few practicing leaders and managers attempt to the situation, the path-goal theory offers other sugges-
systematically apply the path-goal theory, yet many ef- tions to leaders. Most of them relate to motivation and
fective leaders apply some aspects of the theory intui- satisfaction, including the following:
tively. An example is Mark Murphy, the president and
CEO of the Green Bay Packers, a National Football 1. Recognize or activate group members’ needs over
League (NFL) team. Part of the reason Murphy is so which the leader has control.
well liked by team members and fans is that he uses a 2. Increase the personal payoffs to team members
supportive style. At the same time, he emphasizes an for attaining work goals. The leader might give
achievement-oriented style to get the most from his high-performing employees special recognition.
staff and the players. After his playing days were over, 3. Make the paths to payoffs (rewards) easier by
Murphy earned a law degree and an MBA. coaching and providing direction. For instance, a
Joe Gibbs, a Hall of Fame coach, noticed Murphy’s manager might help a team member be selected for
knack for leadership early on. “He was somebody I a high-level project.
could go and talk to if I were having problems,” he says.
4. Help group members clarify their expectations
“Mark was so smart. He made the absolute most of his
of how effort will lead to good performance and
abilities.”11 Murphy, in turn, explains that his leader-
how performance will lead to a reward. The leader
ship style was influenced by Gibbs: “He had many lead-
might say, “Anyone who has gone through this
ership traits that I admired and incorporated into my
training in the past came away knowing how to im-
own leadership style. He had a very natural way about
plement a 3D printing program. And most people
him with the way he related to people, and he tried to
who learn how to use this system wind up getting a
be accessible. And when he worked with you, he was
good raise.”
very fair and sincere. All those skills and traits fueled
his awesome ability to motivate his teams.”12 5. Reduce frustrating barriers to reaching goals. For
Murphy also practices participative leadership, as example, the leader might hire a temporary worker
evidenced by his frequent use of management by wan- to help with a seasonal work overload.
dering around (MBWA) with his senior management.13 6. Increase opportunities for personal satisfaction if
(MBWA refers to casually dropping by the work sites of the group member performs effectively. The if is im-
subordinates and chatting with them about work and portant because it reflects contingent behavior on
listening to their input.) the leader’s part.
7. Be careful not to irritate people by giving them in- adapting their style to the situation, such as being more
structions on things they already can do well. directive when group members are floundering.
8. To obtain high performance and satisfaction, the
leader must provide structure if it is missing and
supply rewards contingent on adequate perfor- Leader–Member Exchange
mance. To accomplish this, leaders must clarify and Contingency Theory
the desirability of goals for the group members.14
Learning Objective 5.4 Describe how the leader-member
As a leader, you can derive specific benefit from exchange (LMX) is a contingency theory.
path-goal theory by applying these eight methods of
influencing performance. Although research interest Another perspective on the contingency approach is sug-
in path-goal theory has almost disappeared in recent gested by the LMX theory. Leaders who adapt their style
years, the basic tenets of the theory are on target. Any to different individuals within the group, or have differ-
comprehensive theory of leadership must include the ent quality relationships with individual group mem-
idea that the leader’s actions have a major impact on bers, are essentially practicing contingency leadership.
the motivation and satisfaction of group members.15 Hundreds of studies have been conducted about LMX
Despite the potential contributions of path-goal the- theory, and it continues to be actively researched. One
ory, it contains so many nuances and complexities that of the many questionnaires used to measure the qual-
it has attracted little interest from managers. Imple- ity of the relationship between the leader and the group
menting any of the eight points just mentioned would member is presented in Leadership Self-Assessment
represent a potential contribution of the path-goal the- Quiz 5-2. LMX theory is multi-faceted, but here we
ory. In addition, awareness of the four different lead- present several conclusions from LMX research that in-
ership styles can give leaders a few useful ideas about dicate a contingency approach to leadership.
Self-Assesment Quiz
5-2
Quality of Leader–Member Relations

Instructions: Indicate whether you agree or disagree with each of the following statements in reference to a specific present
or former supervisor.
Statement about Relationship Agree Disagree
1. My manager likes me a lot.

2. When my boss does criticize me, it is almost always in a helpful, construc-
tive way.
3. I welcome the opportunity to spend time with my boss in social settings.
4. My manager inspires me to perform at my best.
5. I think that my manager really cares about my career.
6. My boss asks me questions about my personal life without being nosy.
7. My manager and I easily laugh at each other’s jokes.
8. I regard my manager as a true mentor for me.
9. My manager has exceptional technical and professional skills.
10. My manager listens to me carefully when I explain a work problem that I
might be experiencing.
11. My manager has more than once complimented in a group setting or e-mail
sent also to others.
(continued)
Leader–Member Exchange and Contingency Theory 125
Self-Assesment Quiz
5-2 (continued)
12. My boss has commented more than once that I have good potential for
advancement.
13. It is an enjoyable experience to work for and with my boss.
14. My manager and I trust each other a lot.
15. I think that my boss is a person of very fine character.
Scoring and Interpretation: The more of the above statements you agree with, the higher the quality of your leader–member
exchange. Agreeing with ten or more statements suggests a high-quality leader–member exchange. Agreeing with between
five and ten statements suggests an average quality leader–member exchange. Agreeing with four or fewer suggests a
poor-quality LMX.
1. Leaders tend to give members of their in-group commitment and organizational citizenship behavior.
more favorable performance ratings than they give Surprisingly, LMX differentiation leads to more posi-
to out-group members, even when their objective tive commitment and citizenship behavior when the
performance is the same. This finding reflects the LMX quality is lower rather than higher.20 Apparently,
idea that leaders might be kinder toward group when a worker does not have a good relationship with
members they like. the boss, that worker will have better work attitudes
2. Leaders do not always develop entirely different re- when the leader treats most people differently.
lationships with each group member, but may re- 8. The quality of leader–member exchanges affects in-
spond the same way to a few members of the group. voluntary turnover within the group. This finding
For example, the leader might show equal care and indicates that different quality relationships with
trust for three members of an eight-person team.16 group members have yet another important organi-
3. In larger groups, there tends to be more differences zational consequence. A study conducted in a large
with respect to LMXs. As a result, the leader of a large hospitality organization within China indicated that
group is more likely to use a slightly different style when leaders have a larger number of high-quality
with various group members, such as being more au- relationships with group members, there is in-
thoritarian with several of the group members. creased loyalty, support, and commitment to the or-
ganization. As a result, fewer group members quit.
4. Managers are more likely to act as a servant
Correspondingly, the study also found that workers
leader toward subordinates with whom they have
with a low-quality relationship with the leader were
high-quality exchanges.17 As a consequence, in-
more likely to flee the organization.21
group members are likely to perceive that they have
a leader who is working on their behalf. 9. A meta-analysis of LMX studies was conducted of
4,114 work groups and 21,745 individuals. A major
5. Leaders are more likely to empower group mem-
finding was that the leader who has different quality
bers with whom they have a high-quality exchange
relationships with various group members wittingly
(or good relationship) because they are more likely
or unwittingly faces a tradeoff. The leader can attain
to trust those members. Research suggests, how-
stronger motivation and work output from the fa-
ever, that better results for the organization will be
vored group members. Yet the tradeoff from this dif-
attained if leaders attempt to have high-quality rela-
ferentiation is that collective harmony and solidarity
tionships with more group members and empower
within the group will suffer because some coworkers
them at the same time.18
are more favored by the leader.22 An underlying expla-
6. A study of 143 teams in three organizations sug- nation of these findings is that the differences in the
gested that moderate degrees of LMX differenti- quality of relationships with the leaders elicit an emo-
ation yield the highest level of team performance. tional response from individual group members.23
Moderate differentiation improves coordination
within in the team which enhances performance.19 Leadership Skill-Building Exercise 5-1 provides an
7. The quality of one’s own LMX influences how leaders opportunity for you to practice the contingency aspect
treating subordinates differently affects organizational of the LMX model.
Leader–Member Exchange with In-Group Member and Out-Group Member

One student plays the role of the leader of a group of web- leader relates to this person. The leader will then have a brief
site developers. A second student plays the role of a mem- interaction with the out-group member, and again exagger-
ber of the in-group, and a third student plays the role of a ating how they relate to this person. Observers might pro-
member of the out-group. The leader will have a brief in- vide feedback as to the most likely impact of the two sets of
teraction with the in-group member, exaggerating how the behaviors on their targets.
are divided into those emphasizing relationships ver-

Leadership During a Crisis sus those emphasizing tasks. Be aware that the distinc-
tion between a relationship and a task emphasis is not
always precise. For example, “Be a transformational
Learning Objective 5.5 Articulate the basics of leadership leader,” involves a combination of a task and relationship
during a crisis.
emphasis.
Leadership Self-Assessment Quiz 5-3 gives you an
Among the potential crises facing organizations are a
opportunity to think through your own tendencies to-
drastic revenue decline; pending bankruptcy; homi-
ward being able to lead through a crisis.
cide in the workplace; scandalous or criminal behav-
ior by executives; natural disasters, such as hurricanes,
floods, earthquakes, and epidemics; nuclear radiation Crisis Leadership Attributes and Behaviors
spills; suicide bombings and other terrorist attacks; with a Relationship Emphasis
and a cruise ship being shipwrecked. Leading during Communicate Widely about the Problem
a crisis can be regarded as contingency leadership be-
A report during the pandemic concluded that perhaps
cause the situation demands that the leader emphasize
the most essential element of crisis leadership is clear
certain behaviors, attitudes, and traits.
and trustworthy communication.25 When tough times
Crisis leadership is the process of leading group
hit, it pays to increase communication about the prob-
members through a sudden and largely unanticipated,
lems facing the company or unit, and what might be
intensely negative, and emotionally draining circum-
done to improve the situation. By communicating with
stance. Leadership is the key ingredient in successful
workers throughout the organization, they will have an
crisis management. Effective crisis leadership ensures
opportunity to provide leadership. In one company, a
that a business is prepared before a crisis emerges, and
technician suggested the company focus more on ser-
that successfully navigates response and recovery.24
vicing existing equipment than attempting to sell new
Here we describe twenty leadership attributes and
equipment during a recession. Communicating with
behaviors associated with successfully leading an orga-
workers as well as customers can bring forth useful in-
nization or organizational unit through a crisis, as out-
formation about how long the tough times will remain.
lined in Tables 5-1 and 5-2. The attributes and behaviors
The business can be reconfigured to meet the new real-
ity, such as finding the least painful ways to cut costs.
Table 5-1 Crisis Leadership Attributes and Roger Ferguson had become CEO of the financial
Behaviors with a Relationship Emphasis services giant TIAA-CREF (now TIAA) a few months
1. Communicate widely about the problem. before the financial crisis of 2008–2009. He said that he
2. Display optimism. and his team had a sense that things were unraveling
3. Build relationships. even more quickly that others had observed. In addi-
4. Display sadness and compassion. tion to looking into the future (seeing the big picture),
5. Stay calm and provide stable performance. he said that it is essential to communicate. Employees
6. Give recognition for accomplishments. must understand how you are seeing the world, and
7. Promote psychological safety. why you are making the decisions you are making. In
8. Design time and space for team bonding. this way, they can align their decision making to your
9. Stick with constructive core values. decision making.26
10. Embrace stakeholder capitalism. Sensemaking by the leader can be a helpful form of
communication during a crisis. A crisis leader engages
Leadership During a Crisis 127
Self-Assesment Quiz
5-3
Checklist for Crisis Leadership

Instructions: Indicate whether you agree or disagree with each of the following statements in reference to dealing with a
work-related crisis.
Agree Disagree
1. I can make decisions and recommendations although under extreme time

pressures.
2. I stay composed when I have to deal with an urgent problem that is suddenly
facing me.
3. I almost never choke under pressure.
4. When the pressure is heavy, I can give clear direction to other people.
5. When someone else is facing a very difficult situation, I am reassuring and

helpful.
6. When faced with an emergency, I can make a good decision even without all
the facts I need.
7. When facing a major problem, I quickly get the input from people who might
have useful suggestions for dealing with the problem.
8. If I am faced with a real mess that is mostly or partly my responsibility, I tell
the truth about what happened.
9. When faced with an overwhelming problem, I can usually imagine what can
be done to find a solution.
10. I can change my usual work activities immediately to take care of an urgent
need.
Scoring and Interpretation: The more of the given statements you agree with, the stronger your tendencies for being an
effective crisis leader. Agreeing with eight or more statements suggests (and your perception is accurate) high ability to deal
with and lead others through a crisis. Agreeing with between three and seven statements suggests an average degree of crisis
leadership ability. Agreeing with two or fewer statements suggests a limited ability right now to lead others through a crisis.
Source: Statements 1 and 10 are adapted from Constance Noonan Hadley, Todd L. Pittinsky, S. Amy Sommer, and Weichun Zhu,
“Measuring the Efficacy of Leaders to Assess Information and Make Decision in a Crisis: The C-LEAD Scale,” The Leadership
Quarterly, August 2011, p. 638.
in sensemaking by explaining the nature of what is hap- Display Optimism

pening, or literally making sense of the events.27 Sense- Pessimists abound in every crisis, so an optimistic
making also refers to helping stakeholders understand leader can help energize group members to overcome
the implications of what has happened. Assume that a the bad times. A helpful starting point is to be role-
company is going through the crisis of bankruptcy. The model an optimistic attitude by such means as cele-
CEO could help make sense of the situation by explain- brating when a team hits a milestone like winning back
ing that the company will continue to operate, em- a major customer. Reassuring the team that the crisis
ployees will be paid, and there will only be a 5 percent will be conquered by working together is also quite
reduction in force. helpful. An occasional cliché can be helpful if said with
sincerity. Two examples are, “I see light at the end of workers who were victims of the disaster or give work-
the tunnel,” and “This too will pass.” ers the opportunity to receive grief counseling.30
The effective crisis leader draws action plans that Compassionate leadership also involves taking
give people hope for a better future (as in strategic some form of public action, even if the action is mod-
thinking). Barbara Baker Clark contends that the role est, that is intended to relieve the pain of constituents.31
of a leader during a crisis is to encourage hopefulness. A noteworthy example of a leader being compassionate
She states: and taking public action at the same time took place af-
ter a massive flooding in Louisiana in 2016. Paul Kus-
I’m not saying that you have to plaster a stupid grin
serow, the chief executive of Amedisys Inc., based in
on your face even if the bottom line is tanking or
Baton Rouge, showed active concern for the company
people are dying in battle. I am saying don’t wallow
employees and clients. (Amedisys provides home health
in pessimism. Believe it or not, it matters to your
and hospice care.) Among the thirteen people who died
employees that you remain reasonably optimistic.
in the flooding was company founder Bill Borne.
It will reduce anxiety and keep everyone motivated.
The disaster left about 100 of the company’s 400
That’s the power of leadership.28
employees with flooded homes, and the firm’s local
hospice patients were at risk. Limited supplies of gas-
Build Relationships oline were available in the community. Kusserow ar-
Relationship building is an essential part of being an ranged for fuel trucks to be brought in, and dispensed
effective leader, and it is particularly important during fuel to caregivers so they could visit their patients. Em-
a crisis. During the first phase of the COVID-19 pan- ployees with substantial property damage were wired
demic, Jack Zenger and Joseph Folkman conducted $2,500 into their bank accounts. Kusserow went to a
360-degree assessments of 454 men and 366 women Lowe’s in the middle of the night with the company
leaders. Employee engagement during the crisis was general counsel. He said, “We bought mops, buckets,
stronger when leaders used their interpersonal skills to fans, bleach, and anti-mold spray, anything that was on
build better relationships. Building relationships had the shelf.” Kusserow’s decisive and compassionate ac-
several components including placing an emphasis on tions helped the company, its employees, and patients
employee development even when times are tough, dis- get through the disaster.32
playing honesty and integrity, and understanding the
anxiety and frustration group members are facing. In the Stay Calm and Provide Stable Performance
study, women leaders attained an average score on rela-
Effective leaders stay calm and are steady performers,
tionship building of fifty-eight versus fifty-one for men
even under heavy workloads and uncertain conditions.
(a statistically significant but not dramatic difference).29
Remaining steady under crisis conditions contributes
Display Sadness and Compassion to effectiveness because it helps team members cope
with the situation. When the leader remains calm,
An organizational crisis is a sad event, making it impera-
group members are reassured that things will work
tive that leaders deal with their emotions as well as those
out. Stability also helps the managerial leader appear
of the group. Leaders should be able to express sadness
professional and cool under pressure. A representative
about the crisis, such as expressing sadness that a violent
example is Fréderic Oudén, the chairman and CEO of
former employee has injured several current employees.
Société Générale. One of the major crises faced by this
Compassion is also important because it shows that the
French banking giant was the stock market plunge in
leader cares about the plight of employees caught up in
2008, followed by a stock market scandal that cost the
the negative consequence of the crisis.
bank $7 billion (U.S.). Another crisis took place in 2011
Displaying compassion with the concerns, anxieties,
when rumors arose that the bank had lost its liquidity
and frustrations of group members is also a key interper-
as the Greek debt crisis swept Europe. Oudén says that
sonal skill for crisis leadership. The type of compassion-
the key to dealing with crises of this magnitude is to
ate leadership that brings about organizational healing
remain calm, and manage your stress. Furthermore, to
involves taking some form of public action that eases
avoid creating useless turbulence, you must create a
pain and inspires others to act as well. Compassionate
process to help the teams organize themselves to make
leadership encompasses two related sets of actions. The
the right decisions at the right time.33
first is to create an environment in which affected work-
ers can freely discuss how they feel, such as a group
meeting to talk about the crisis or disaster. The second Give Recognition for Accomplishments
is to create an environment in which the workers who When an organization faces turbulence, employees are
experience or witness pain can find a method to alle- in particular need of recognition for whatever they ac-
viate their own suffering and that of others. The leader complish to help stabilize the organization. Success of
might establish a special fund to help the families of every type should be made visible, such as posting on
the intranet that a specific sales representative brought Ignoring core values to help overcome adversity can
back a major customer who had left the company. create permanent damage. Take this humble example:
Michael Scalzo, managing director and CEO of the A well-known underwear company decided to cope
GEMKO Information group, says, “We want to keep with lower sales volume by cutting costs on the man-
our employees excited about the future, so we need to ufacture of men’s briefs. The lower-cost briefs looked
communicate that our strategic goals are still in place fine but they tore apart at the waistband after several
as we ride through the storm.”34 The point of the pre- washings. Word spread quickly about the defective
ceding comment is that when employees have a clear briefs, and the company lost accounts with several ma-
understanding of the strategic goals, they know what jor retail chains. The core value compromised here was
they are striving to accomplish. offering only high-quality goods to the public.
Promote Psychological Safety Embrace Stakeholder Capitalism

During a crisis, managers should promote psycholog- In recent years, many top-level leaders have embraced
ical safety so that workers can openly discuss ideas, the idea that their companies’ obligations to sharehold-
questions, and concerns without fear of repercussions ers should not come at the expense of other stakehold-
or retaliation. Healthy debate is important for getting ers including employees. customers, the community,
through the crisis, and workers throughout the organi- suppliers, subcontractors, and society in general. A
zation should feel that they are free to suggest unusual public affirmation of stakeholder capitalism came in
solutions for weathering the crisis.35 For example, a nat- the summer of 2019, when 180 CEOs committed to
ural response by top-level management is to implement signing on to the U.S. Business Roundtable’s call for
a hiring freeze if not a layoff. Yet someone in the organi- such action.37 A major part of the reasoning is that in
zation might have a counterintuitive suggestion. If not a crisis, all stakeholders need reassurance that compa-
concerned about being ridiculed for the suggestion, an nies will work with them to restore normalcy.
associate might offer the idea of quickly hiring a few cus-
tomer-facing employees who would more than pay for Crisis Leadership Attributes and Behaviors
themselves by stimulating new sales and repeat business. with a Task Emphasis
Design Time and Space for Team Bonding Be Decisive
During the COVID-19 crisis, Wei Zheng, an associ- The best-accepted principle of crisis leadership is that
ate professor of management at the Stevens Institute the leader should take decisive action to remedy the sit-
of Technology, conducted a study of how profession- uation. The greater the crisis, the less time the leader
als were reacting to the disruption in the workplace. has to consult a wide array of people. After the plan
Zheng surveyed 187 people working in a variety of in- is formulated, it should be widely communicated to
dustries and occupations in New York and New Jersey, help reassure group members that something concrete
two states heavily impacted at the outset of the crisis. is being done about the predicament. After their phys-
Among her findings were that 10 percent of the partic- ical facilities were destroyed in the terrorist attacks
ipants reported important benefits when their manag- on the World Trade Center (WTC) on September 11,
ers created opportunities for them to connect and bond 2001, several leaders announced the next day that their
with their coworkers. firms would move to nearby backup locations. Com-
The specific activities all had a human resource municating plans helps reduce uncertainty about what
management slant, including the following: virtual
coffee breaks, happy hours, lunches, time for story
sharing, and games played over Zoom. One partici-
Table 5-2 Crisis Leadership Attributes and Behaviors
pant described a regular “Thirsty Thursday” meeting in with a Task Emphasis
which employees brought drinks to their virtual team
1. Be decisive.
meetings and played games like “Two Truths and a Lie,”
2. Practice leadership accountability.
and trivia to create a loose, relaxed feeling among team
3. Think strategically (see the big picture).
members. The investigation found that the playful ac-
4. Strive for a unified effort.
tivities helped workers get to know each other in an
5. Divide major problems into smaller chunks.
informal setting, helped reduce stress, and motivated
6. Avoid a circle-the-wagons mentality.
them to perform well in their roles.36
7. Delegate authority where appropriate.
8. Reestablish the work routine.
Stick with Constructive Core Values
9. Prevent the crisis with planning.
Leaders who keep their company or division focused 10. Be a transformational leader.
on core values are likely to endure difficult times.
is happening to the firm and the people in it. A leader safety might say, “I am the person ultimately responsible
who takes highly visible action to deal with a crisis is for the federal regulators threatening us, and I will work
likely to be viewed as competent. closely with you to find a solution to our problem.”
A corollary of being decisive during a crisis is not to A leader who practices accountability should also
be indecisive or to hide from the crisis in its midst. The hold other leaders in the organization accountable for
first phase of crisis leadership is to stabilize the emer- crisis-related problems. Teams must also be held ac-
gency situation and buy time.38 Suppose that five key countable for their approach to resolving the crisis,
managers leave the company at the same time to join a such as quickly fixing the product safety issues. To help
competitor, and only one in-house replacement is avail- resolve the present and any future crises, leadership ac-
able. To deal with the emergency, the CEO might hire countability should be a priority within the company.41
four managers from a placement agency that specializes
in providing temporary managers and professionals. Think Strategically (see the Big Picture)
The next step would be to prepare other company per- A success factor for the leader of an organization or a
sonnel to replace managers who quit in the near future. key organizational unit is to think strategically, includ-
Being decisive in response to a crisis also includes ing seeing the big picture. During an organizational cri-
communicating widely the plans for resolving the sis, this cognitive skill increases in importance because
problems that created the crisis, assuming that the or- subordinates may become so mired in the crisis that
ganization had some responsibility for the crisis. An- they see no way out. The effective crisis leader helps the
nouncing these plans appeared to give many employees group understand that conditions will soon change for
hope for better times ahead. the better. A group of researchers headed by Leslie A. De-
Another component of decisiveness is to avoid the Church used measures of historical events to elucidate
fear of failure that can prevent taking the necessary ac- the aspects of leadership essential in extreme contexts.
tion to exit the crisis. Chris Warner and Don Schmincke, Critical incidents, or key activities, taking place during
authors of High Altitude Leadership, advise leaders that the crisis situation were also studied. Published reports
fear is the ultimate strategy killer. “It stops staff from of events, including newspapers and books, constituted
making great decisions, stops change agents from dis- the qualitative data in this type of analysis. These ex-
rupting the status quo, and stops leaders from leading.”39 treme situations included responding to the aftermaths
Being decisive during a crisis can sometimes up- of natural disasters and orchestrating postwar stability,
set members of the executive team who may prefer a support, transition, and reconstruction efforts.
more collaborative leadership style. In 2018, Facebook A major finding of the historical analysis of leadership
CEO Mark Zuckerberg gathered about 50 management events was that the leadership function of strategy was im-
staffers and told them that Facebook, Inc. was at war portant in dealing with the crisis event. An aspect of strat-
and that he planned to act accordingly. The crisis at egy uncovered that is relevant here was understanding the
hand was that Facebook was under siege from lawmak- big picture.42 An example of seeing the big picture would
ers, investors, and upset users, prompting Zuckerberg be for a leader to recognize that a couple of months after
to think he had to act more decisively. Senior execu- a manufacturing plant was destroyed due to an explosion,
tives at the company were being pressed to move more another company plant could absorb its workload. Or the
swiftly in resolving such problems as decelerating user destroyed plant might be restored.
growth, and security issues with the platform.
Zuckerberg said a tougher (more decisive) manage- Strive for a Unified Effort
ment style was necessary to tackle challenges surfacing Organizations cannot work their way through a crisis
both internally and externally. Many Facebook manag- without the cooperation of people throughout the or-
ers apparently objected to Zuckerberg becoming more ganization. For example, after a fire or hurricane hits
confrontational and authoritarian, with about one dozen a facility, the call is for “All hands on deck.” Hundreds
highly visible executives resigning in 2018. The company of people have to assist in cleaning up the mess and
reshuffled top product executives in a way that enabled restoring order. It is helpful for leaders throughout the
Zuckerberg to oversee a broader portfolio within the organization to emphasize the motto, “We’re all in this
company and therefore exercise more control.40 together.”43 The emphasis on a unified effort is some-
times necessitated because out of fear and uncertainty,
Practice Leadership Accountability some workers feel strongly dependent on leaders to re-
A hard-hitting approach to being task-oriented during a solve all the crisis-related problems.
crisis is for the leader to accept accountability for prob-
lems that occur during the crisis. The same approach can Divide Major Problems into Smaller Chunks
be described as taking personal ownership for the lead- Give workers bits of the major problem to work on
ership role. A CEO facing a crisis with respect to product so they feel less overwhelmed by the adversity facing
them and the company. For example, if the company is empowered junior staff were not given a blank check.
hurting for cash, one group of employees might search Instead, there were clear boundaries limiting their dis-
for items in the office or factory that could be sold on cretion, and a schedule for reporting progress.45 For ex-
an auction website. Another group of workers might ample, in making more efficient use of respirators, the
search for ways to reduce shipping costs by 10 per- ward supervisor might not be authorized to decide that
cent. Other groups would be assigned different adver- some patients were too sick and weak to attempt to save.
sity-fighting tasks. When an obstacle is framed as too
large, too complex, or too challenging, workers might Re-establish the Work Routine
feel overwhelmed and therefore freeze in their tracks. A temporary drop in performance and productivity is al-
most inevitable for most workers after disaster strikes,
Avoid a Circle-the-Wagons Mentality such as an earthquake or terrorist attack—even if the
One of the worst ways to lead a group through a crisis is organization was not directly affected. Although it may
to strongly defend yourself against your critics or deny appear callous and counterintuitive, the leader should
wrongdoing. The same denial approach is referred to emphasize the temporary nature of the performance de-
as maintaining a bunker mentality or stonewalling the cline. An effective way of helping people deal with a work-
problem. Instead of cooperating with other stakehold- place crisis is to encourage them to return to their regular
ers in the crisis, the leader takes a defensive posture. A work. It is important for workers to express their feelings
case in point is how U.S. interior secretary Ken Salazar about the crisis before refocusing on work, but once they
dealt with one aspect of the disastrous BP oil spill in the have, returning to work helps ground them in reality and
Gulf of Mexico in 2010. Part of the problem had been restores purpose to their lives. Randall Marshall, director
attributed to a too-friendly relationship between the of trauma studies for the New York State Office of Mental
Minerals Management Service and oil companies, which Health, said after 9/11, “A healthy response to this type of
might have resulted in non-rigorous inspections of oil situation is to get back into a routine.”46
drilling. Instead of denying that problems existed at the
Minerals Management Service, Salazar quickly reorga- Prevent the Crisis with Planning: The Ideal Form
nized the government unit with a new name: Bureau of of Crisis Leadership
Ocean Energy Management, Regulation, and Enforce- A key part of planning for a physical disaster, for exam-
ment. Stricter ethical standards were also imposed to ple, is to anticipate where you would go, how you would
show that the new agency would act more independently get in touch with employees, and where you might set
in inspecting oil-drilling equipment and processes.44 up a temporary workplace. Having a list of backup ven-
dors in case they are hit by a physical disaster is also
Delegate Authority where Appropriate important. Small business owners should be network-
Although a crisis may require directive leadership, af- ing with other business owners and agree to assist each
ter direction has been established it is recommended other if a crisis strikes. Arranging in advance for sup-
that the leader delegate authority appropriately to port groups, such as grief counselors, is another key
accomplish key tasks. A study was conducted in two element of disaster planning. Even the fact of letting
emergency field hospitals, one in the United States employees know that a disaster plan is in place can be
and other in the United Kingdom, of how leaders re- an effective leadership act because it may lower worker
sponded to the pandemic. In both field hospitals, the anxiety. Also, the leader might communicate that the
crisis revealed the capability of junior staff members company has purchased disaster insurance.
who welcomed the opportunity and authority to tackle Baruch Fischoff, a professor in the department of
difficult problems that the crisis created. engineering and public policy at Carnegie Mellon Uni-
Senior leaders deferred to the expertise, not senior- versity, makes this analysis of the importance of crisis
ity, to deal with specific problem areas. Assignments planning: “You’ll often hear leaders say they didn’t have
were made to whichever staff member had the ap- time to respond to emergencies. But if you didn’t have
propriate expertise, irrespective of the staff member’s time, you didn’t do your job. Your job is to be ready,
organizational status. Frontline staff were assigned know your audience, and get clear and accurate infor-
responsible for establishing new patient care routines. mation about what’s going on.”47
For example, an emergency room technician might
have a suggestion for making more efficient use of the Be a Transformational Leader
limited supply of respirators. During times of large and enduring crisis, transforma-
The researchers in the study suggest that in delegat- tional leadership may be the intervention of choice.
ing, it is important to simultaneously provide a clear Leadership coach Gordon Tredgold writes that when
sense of accountability by clarifying expectations via goal leaders face a volatile, uncertain, complex, and ambigu-
setting, and indicate what process is acceptable. Newly ous environment, the transformational leadership style
is best.48 The transformational leader can often lead the of trust long before a crisis strikes.50 If workers and other
organization out of its misery. Transformational leader- shareholders trust the leader, they will take more seri-
ship is likely to benefit the troubled organization both ously the leader’s directives during the crisis. Leaders at
in dealing with the immediate crisis and in performing both Walmart and McDonald’s did a notable job of hold-
better in the long run. David Novak, the cofounder and ing their workforce together after hurricane Katrina.
now retired chairman and CEO of Yum! Brands (which Executives and store managers alike scrambled to get in
includes KFC, Taco Bell, Pizza Hut, and Long John touch with employees to assure them that they would all
Silver’s), has seen his share of crises, including vermin have their jobs back as soon as operations were up and
infestation in a restaurant that was broadcast on tele- running. In general, workers in the Gulf Coast area had
vision and YouTube. He says that honesty, consistency, trusted leadership at the two companies.
and continuity of communication is the key to manag- The accompanying box Leader in Action illustrates
ing through these issues and that the transformation how a manager dealt with a crisis related to the pan-
may take six to nine months.49 demic. Leadership Skill-Building Exercise 5-3 provides
Another way a transformational leader helps a com- you an opportunity to take a look at how crisis leader-
pany or work unit cope with crisis is to establish a climate ship is practiced.

Leader in Action
Michelle Gass, the Kohl’s CEO, Faced Pandemic Business Crisis Head On
In response to the pandemic, Michelle Gass, the CEO of de- has a “bias for action,” meaning that she moves swiftly
partment store chain Kohl’s, temporarily closed the compa- when making a tough decision such as closing an under-
ny’s 1,162 stores on March 20, 2020. Soon thereafter Gass performing location.
announced that Kohl’s would furlough 85,000 of its approxi- Despite the increasing pressures facing her company as
mately 100,000 employees. As the pandemic continued, the a retailer with stand-alone stores, Gass maintains a warm
closings lasted between seven and seventeen weeks de- demeanor and smiles frequently in her interactions with
pending on the store’s location. By the end of the year, the coworkers and other employees. She says that for her, the
headcount at Kohl’s was reduced by 10 percent. fundamental principles of great leadership are “humanity,
After seventeen years of experience in a variety of mar- empathy, and being courageous.”
keting roles at Starbucks, Gass (pronounced “Goss”) was At a leadership conference in 2021, Gass described how
hired as the chief customer officer at Kohl’s. One of her she and her staff attempted to support staff at all levels at
first initiatives was to give a pep talk to employees at the Kohl’s during difficult times over many months. The man-
retailer’s headquarters in Menomonee Falls, Wisconsin. agement staff attempted to lead by example to minimize
Gass sensed that a motivational talk was needed because, burnout while working remotely. Finding innovative ways of
after several years of a post-recession growth, sales had communicating was another part of the support efforts. To
begun to slip. As with other brick-and-mortar stores, com- communicate uncomfortable news to employees in the early
petition from online retailers and boutiques was eating into days of the pandemic, Gass chose video meetings over
sales. Gass told the employees that Kohl’s needed to think email. She felt that she needed to be seen by store asso-
differently and that they should not be afraid to attempt ciates. Gass thought also that she needed to instill a sense
new ideas, something most employees had been hesitant of calm, confidence, and clarity. She didn’t have all the an-
to do in the past. swers, but at least she could be a realist and highlight the
Chip Bergli, the CEO of Levi Strauss & Co., has de- progress the company was making.
scribed Michelle Gass as a proven leader who has been a To help retain the loyalty of store associates during the fur-
positive force for the retail business. Gass is recognized by lough, Kohl’s maintained health benefits, and made sure they
work associates as quickly changing course when an idea had access to the Gass video messages. Gass wanted to share
or initiative fails. For example, Kohl’s experimented with the optimism that the stores would reopen. She also wanted
in-store coffee shops but abandoned the plan when the employees to know that Kohl’s would implement a program of
shops proved to be unprofitable. Mansell said that Gass curbside pickup, reflecting a new way of doing business.
(continued)
Evidence-Based Leadership for the Contingency and Situational Approach 133

Gass believes that in moments of chaos and crisis, lead- era. As she looked forward to the year ahead and beyond,
ers need to be transparent about the challenges they face, Gass was committed to ensuring that the company brings
and optimistic about the ability to overcome them. She said the new and evolved innovative spirit forward.
that during the pandemic she attempted to connect with After graduating in 1966 from the Worcester Polytechnic
store associates. She explained her thinking in relation to Institute with a BS in chemical engineering, Gass decided
big decisions so the employees would feel involved and to specialize in marketing. She received an MBA from the
informed. Gass says that everything about running a busi- school of business at the University of Washington, followed
ness in calm or turbulent waters is about making progress. by over five years of marketing experience at Procter &
“Especially in times of crisis or challenge, progress is always Gamble (P&G).
made by balancing decisive action with agility,” she says.
Gass encourages remote Kohl’s workers to attain a work Questions
and personal life balance. The management staff checks in fre- 1. What precise steps did Gass take to help Kohl’s get
through the pandemic crisis?
quently with remote workers, and conducts listening sessions.
2. What specific tactic did Gass use to get the company
Gass believes that Kohl’s has an empathetic culture, and she
over a hurdle in the past?
wants company leaders at all levels to display empathy. 3. Relying on whatever current information you can quickly
Gass emphasizes that as an organization Kohl’s has been gather, how successful has Gass been as the CEO of
fostering a more courageous culture to prepare for the next Kohl’s?
Sources: Original case created from information in the following sources: Ellie Austin, “The Lessons Kohl’s CEO Learned in the
Pandemic,” The Wall Street Journal, February 1, 2021, p. A11; Michelle Gass, “It’s a Privilege to Lead During this Uncertain Time and
Pulls the Lessons Forward,” Linked In (www.linkedin.com), January 28, 2021, pp. 1–4; Sari Lesk, “How the Pandemic Affected Kohl’s
Staff Size,” Milwaukee Business Journal (www.bizzjournals.com), April 2, 2021, pp. 1–3; Suzanne Kapner, “Kohl’s Chooses Marketer as
Next Chief Executive,” The Wall Street Journal, September 17, 2017, p. B12; Sarah Halzack, “Michelle Gass Could Lead Department
Stores Out of the Wilderness,” http://www.bloomberg.com, December 21, 2007, pp. 1–6.
Crisis Leadership
Working in a small group, find a crisis that a business or not- key executives have been accused of insider trading. After
for-profit organization is facing these days. Examples would agreeing on which crisis to tackle, develop a list of sugges-
include a pharmaceutical firm needing to recall an over-the- tions on how the CEO should deal with the situation. Use
counter medicine that has triggered illnesses in hundreds of several ideas from the section about crisis leadership pre-
consumers, or an investment banking firm in which several sented in this chapter to help you develop an action plan.
Evidence-Based Leadership evidence about the best way to deal with a given situa-
for the Contingency and tion. Before taking action, the leader would ask, “What
does the research literature tell me is most likely to
Situational Approach work in this situation?” Evidence-based leadership
Learning Objective 5.6 Enumerate how evidence-based or management is the conscientious use of multiple
leadership can contribute to contingency and situational sources of evidence in making organizational deci-
leadership. sions. The goal of evidence-based leadership practice is
to improve the quality of decisions, and as a result, fur-
A leading-edge way for a person to practice contin- thering human progress. The systematic use of scien-
gency leadership would be to look for research-based tific evidence, along with evidence from other sources
Reader’s Roadmap
So far in this book, we have examined the nature of leadership, the inner qualities of leaders, and leadership styles,
including contingency leadership. In the next chapter, we focus on a topic that incorporates many of these ideas: lead-
ership ethics and social responsibility.
such as experience, had its origins in medicine about thinking it is unfair to lay off the bottom 5 percent
thirty years ago.51 of performers annually in order to have a stronger
Quite often the best evidence is empirical (based workforce.52
on experience) and recent. Yet, at times, old principles
An example of using evidence-based leadership
can still be useful. For example, it has been known for
follows: Research indicates that empowerment is
at least a century that when a manager has too many
more likely to succeed with group members whose
subordinates, coordinating the work of subordinates is
cultural values favor a manager or leader shar-
difficult. The alternative to evidence-based leadership
ing power. In contrast, empowerment is less likely
is to rely heavily on common sense and adopting prac-
to succeed when the group members expect the
tices used by other companies, whether or not they fit a
leader to retain most of the power. (See Chapter 14
particular situation. Many of the principles and sugges-
for the evidence.) In this example, a principle (em-
tions presented throughout this text would help a man-
powerment works best when cultural values are
ager practice evidence-based leadership.
compatible) is translated into practice (using em-
A realistic perspective on the reliance on evidence
powerment to motivate and satisfy workers when
in making a decision is that evidence can encompass
the cultural values of the workers are compatible
much more than the type of evidence found in profes-
with empowerment).
sional journals. The Center for Evidence-Based Man-
An example of using evidence-based leadership
agement says that four sources of evidence should be
stemming from the experience of managers is to reg-
considered when making a decision.
ularly express thanks for a job well done.53 The thank
● Findings from empirical studies published in aca- you can be expressed orally or in writing and should fo-
demic journals such as the Journal of Applied Psy- cus on something specific the person has accomplished
chology, The Leadership Quarterly, and the Academy such as, “Your tracking down of potential candidates
of Management Journal. for our opening by using the social media produced
● Data, facts, and figures gathered within the orga- four good prospects. Thanks so much for lending your
nization such as objective performance data and expertise.”
turnover statistics. Evidence-based leadership and management is not
yet widely practiced, but taking the study of leadership
● The experience and judgment of practitioners, such
and management seriously will move managers and or-
as a veteran leader.
ganizations toward basing their practices and decisions
● The values and concerns of the stakeholders who on valid evidence. The result is likely to be more precise
may be affected by the decision, such as workers contingency leadership.
Summary
Theories of contingency and situational leadership situational forces, including group member charac-
build on the study of leadership style by adding teristics. Organizational effectiveness is affected by
more specific guidelines about which style to use situational factors not under the leader’s control. Situ-
under which circumstances. Leaders are most effec- ations shape how leaders behave, and they also influ-
tive when they make their behavior contingent on ence the consequences of leader behavior.
Evidence-Based Leadership for the Contingency and Situational Approach 135
Fiedler’s contingency theory states that the best essentially practicing contingency leadership. LMX
style of leadership is determined by the leader’s influences such factors as the favorability of perfor-
work situation. Style, in Fiedler’s theory, is mea- mance ratings, which group member receives servant
sured by the LPC scale. If you have a reasonably leadership and are empowered, extent of empower-
positive attitude toward your LPC, you are relation- ment, and team performance. A meta-analysis of over
ship motivated. You are task motivated if your atti- LMX studies involving more than 4,000 groups re-
tude is negative. Situational control, or favorability, vealed a tradeoff from differentiation. Favored group
is measured by a combination of the quality of members perform better but collective harmony and
leader–member relations, the degree of task struc- solidarity within the group will suffer because some
ture, and the leader’s position power. coworkers are more favored by the leader.
The key proposition of Fiedler’s theory is that Leading others through a crisis can be consid-
in situations of high control or low control, leaders ered a form of contingency leadership because the
with a task-motivated style are more effective. In a leader adapts their style to the situation. Crisis
situation of moderate control, a relationship-mo- leadership attributes and behaviors with a rela-
tivated style works better. Leaders can improve tionship emphasis are: (1) communicate widely
situational control by modifying leader–member re- about the problem, (2) display optimism, (3) build
lations, task structure, and position power. relationships, (4) display sadness and compassion,
The path-goal theory of leadership effectiveness (5) stay calm and provide stable performance,
specifies what the leader must do to achieve high (6) give recognition for accomplishments, (7) pro-
productivity and morale in a given situation. The mote psychological safety, (8) design time and space
major proposition of the theory is that the manager for team bonding, (9) stick with constructive core
should choose a leadership style that takes into ac- values, and (10) embrace stakeholder capitalism.
count the characteristics of the group members and Crisis leadership attributes and behaviors with a
the demands of the task. Initiating structure by the task emphasis are: (1) be decisive, (2) practice lead-
leader works best when the group faces an ambig- ership accountability, (3) think strategically (see the
uous task. Effective leaders clarify the paths to at- big picture), (4) strive for a unified effort, (5) divide
taining goals, help group members progress along major problems into smaller chunks, (6) avoid a
these paths, and remove barriers to goal attain- circle-the-wagons mentality, (7) delegate authority
ment. Leaders must choose a style that best fits the where appropriate, (8) re-establish the work rou-
two sets of contingency factors—the characteristics tine, (9) prevent the crisis with planning, and (10)
of the subordinates and the tasks. The four styles be a transformational leader.
in path-goal theory are directive, supportive, partic- A leading-edge way for a person to practice
ipative, and achievement oriented. contingency leadership would be to look for re-
LMX theory provides some insights into contin- search-based evidence about the best way to deal
gency leadership. Leaders who have different qual- with a given situation. This approach means using
ity relationships with individual group members are evidence-based leadership or management.
Key Terms
contingency approach to path-goal theory 121 evidence-based leadership or
leadership 117 crisis leadership 126 management 133
1. A major contingency factor for a team or 3. A subtle way of practicing contingency lead-
group leader is the talent and motivation of ership is to adapt to times that may have
the individual being led. Although talented and changed in terms of the demands of your lead-
well-motivated workers may not require close ership position. You have to fine-tune your
monitoring of their efforts, they still require leadership approach to meet the new circum-
encouragement and recognition to sustain high stances. Assume that hospital administrator
performance. Otherwise, the leader has very lit- Maggie has held her position for ten years. Ac-
tle impact on their performance or their inten- cording to her perception of her role, the focus
tion to stay a member of the team or group. of her leadership would be to inspire her staff
2. When practicing the LMX theory of leadership toward doing what is best for patient care. Yet
by forming unique relationships with members her role has now changed. Focusing on what
of the group, it is important to minimize the po- is good for patients still receives high priority,
tential unintended negative consequences of this yet Maggie has to emotionally accept the re-
type of leadership. For morale purposes, it is im- ality that finding ways to inspire her group to
portant to avoid establishing favorites or pets in reduce the cost of operating the hospital has
the group, and having only superficial, mechani- become a key part of her leadership and man-
cal relationships with other group members. agement role.
Discussion Questions and Activities 6. Which of the four path-goal styles do you think
1. What relevance might contingency leadership have would be the best for managing a group of soft-
for dealing with generational differences in the ware engineers? Justify your answer.
workplace? 7. As the pandemic lifted, many workers were still
2. If a manager uses a slightly different leadership style fearful of returning to the workplace. Which aspects
with men and women, should the manager worry of crisis leadership might managers have used to get
about being charged with sex discrimination? most of these workers back into the workplace?
3. Identify a personality trait you think would help 8. Why are both a task emphasis and a relationship
a manager function as a contingency leader. Also emphasis often necessary to get a group through a
identify a trait you think might detract from a man- crisis, such as a hurricane having destroyed a com-
ager’s ability to function as a contingency leader. pany facility?
4. How might a leader modify the clothing they wore 9. Ask two experienced managers you know whether
to different work situations to help practice contin- they have ever adapted their leadership style to a
gency leadership? given situation. If you receive a Yes answer, ask
5. How would a manager know which variables in a what adaptation took place.
given situation should influence which approach to 10. In what way do effective teachers practice contin-
leadership they should take? gency leadership?
Financial Services Manager Kevin Faces manager is basically that of a financial consultant
a Dilemma to individual clients, all of whom have portfolios
Kevin is a vice president of wealth management at worth more than $500,000. Many of the clients are
a large branch of a financial services firm. In addi- retirees. Kevin therefore has three major roles: a
tion to managing a number of clients of his own, general manager of the branch, a functional man-
Kevin is the branch manager as well as the leader ager of wealth managers, and an individual con-
of eight wealth managers. The role of the wealth tributor as a wealth manager for his clients. Kevin
thinks that his biggest challenge is getting the “Your micromanager says between 13 and 15 per-
leadership of his wealth managers right. cent.” Carlyle texted back, “Thanks. Got it.”
Several weeks ago, Kevin had a brief conversa- Kevin thought he would try his luck
tion with Heather, one of the wealth managers on once more about asking for the status of the
his team. Along with the other seven wealth manag- portfolio-enhancement report. He sent a text mes-
ers, Kevin had asked Heather to submit a report on sage to the youngest wealth manager in his group,
her plans for increasing the portfolio of investments Cali, asking about the report. She wrote back, “I
she was managing. “You can’t do this to me,” said have amazing results. Loved your idea of beefing
Heather. “You tell me that I am supposed to submit up my portfolio. Check your inbox tomorrow.”
my plan for enlarging my portfolio of investments After these three exchanges, Kevin said to
by sometime in May. Unless you give me a specific himself, “Maybe I need to refine my leadership
date, I won’t be able to get the report to you on approach a little. Some wealth managers need a
time.” A little exasperated, Kevin said to Heather, lot more structure than others.”
“As a wealth manager with an MBA, I thought you
would be able to take on the responsibility of estab- Questions
lishing a date for the report yourself. I guess not, so 1. In what way is Kevin dealing with the prob-
please have the report to me by May 27.” lem of differences in the ability to manage
Kevin had a brief text exchange with another ambiguity?
wealth manager, Carlyle. He texted to Kevin, “Be 2. What recommendation do you have to make
more specific. By what percent do you want me to Kevin a stronger contingency leader?
increase my portfolio of investments?” Kevin tex- 3. To what extent should Kevin be concerned
ted back, “The percentage is up to you. Just make about adapting his approach to making re-
it good.” To which Carlyle responded, “Please, I port assignments to the individual differences
need a little structure. How much?” Kevin replied, among his wealth managers?

A. One student plays the role of Kevin who is discuss- B. One student plays the role of Kevin who is dis-
ing the due date on the report with Heather. Kevin cussing the amount of portfolio enhancement
believes strongly that she should be able to set her with Carlyle. Kevin believes strongly that Carlyle
own date for the report. Another person plays the should be able to establish the target amount of
role of Heather who thinks it is her manager’s re- portfolio increase on his own. Another person
sponsibility for providing a due date. plays the role of Carlyle who thinks it is his man-
ager’s responsibility for providing a target per-
centage for a portfolio increase in investments.
Emma Varies the Quality of Her Relationships plus knee and back supports that sold through
Emma is the president of the braces and support prescription only. The various support devices
division of a pharmaceutical company. Her divi- are found in pharmacies, supermarkets, and de-
sion develops, manufactures, and sells such department stores as well as directly to consumers
vices as wrist, ankle, elbow, and back supports, online.
One day Emma was discussing how well she Direct Report C says that you never shut up
was performing as a leader with Jerald, the direc- in meetings, both face-to-face and virtual, about
tor of human resources. Jerald said, “We will re- our director of product development and design.
view some of the multirater feedback with you. It You talk as if that person were single-handedly re-
appears to be consistent with some of the informal sponsible for the success of our division.
buzz I have heard about your leadership. Your di- Direct Report D says that you practically ig-
rect reports like the strong leadership you bring to nore her. If she tries to tell you something funny,
the division, but they think you play favorites.” you don’t even crack a smile. She thinks you are a
“How so?” said Emma. good strategic leader, but that you act like a zom-
Jerald replied, “Let’s look at some of the writ- bie toward her.”
ten comments on the anonymous forms done Emma said to Jerald, “It is good to know that
online. I think you will find it helps explain the I am perceived to be an effective leader. Yet I find
comments about having favorites: some of this feedback troubling. I thought that an
Direct Report A says that you are a kind and effective leader was supposed to have different
caring manager who always takes into account relationships with different people. How else can
her needs. When she needed time off to take care you deal with the reality that people are unique?”
of a parent who moving to assisted living, you
gave her three days off of paid leave. When she Questions
wanted some experience with data analytics, you 1. In what way does this case illustrate the LMX
found the right project for her. model of leadership?
Direct Report B says that you can be a little cal- 2. To what extent do you thinking the feedback
lous and indifferent. He once told you that if you presented by the direct reports could help
could hire one more online sales support representa- Emma hone her leadership style?
tive, he could boost sales by 20 percent. He said that 3. If Emma does not want to be perceived as
you flatly rejected his demand, saying there was no playing favorites, what should she do differ-
money in the budget for an additional hire. ently in her leadership approach?

One student plays the role of Emma, who will be meet- and indifferent toward him. Run a six-minute role play
ing with two group members today. One student plays interaction in which Emma reacts in a cold and indif-
the role of Direct Report A. Run a six-minute role play ferent way toward Direct Report B. Observers will pro-
interaction in which Emma reacts in a kind and caring vide feedback as to whether Emma really has different
way toward Direct Report A. Another student plays the quality relationships with the two direct reports.
role of Direct Report B who thinks that Emma is cool
For this chapter entry in your leadership portfolio, visualize participative style of leadership with the crane operator be-
two different leadership scenarios that you witnessed directly, cause she was so self-sufficient. Yet I would still have given her
read about, or saw on television or in a movie. Think through some recognition for a job well done at the end of her shift.”
how you would have used a different leadership approach for Another scenario might be that you witnessed a bloody fight
each one if you had been the leader. To illustrate, suppose you at a professional hockey match. You might conclude, “In this
had passed a construction site for a skyscraper and noticed situation, I would be as directive as possible. I would suspend
that the crane operator seemed confident and competent. and fine the players, with no room for negotiation. Decisive ac-
You might conclude, “In this situation, I would have used a tion must be taken to quell violence in professional sports.”
Notes 139
Notes
1. Original story is based on facts and observations 12. “Green Bay Packers: Mark Murphy,” www.packers.
in the following sources: John D. Stoll, “A Crash com, p. 2. Retrieved October 7, 2016.
Course in Crisis Management,” The Wall Street 13. “Packers’ CEO Conveys Keys to Leadership Suc-
Journal, March 28–29, 2020, p. B2; Kyle Alspach, cess,” University of Wisconsin-Parkside (http://www
“HP and 3-D Printer Partners Working to Print .uwp.edu/explore/media/), April 5, 2013, p. 1.
Needed Medical Parts,” CRN (www.crn.com), 14. H o u s e a n d M i t c h e l l , “ P a t h - G o a l T h e o r y, ”
pp. 1–2; Darren Allan, “HP Plans to Fight Covid-19 p. 84; Bass, The Bass Handbook of Leadership,
with Thousands of 3D Printers,” Techradar.pro pp. 804–811.
(www.techradar.com), March 25, 2020, pp. 1–3; En- 15. Chemers, An Integrative Theory of Leadership, p. 48.
rique Lores, “Learning from Adversity, Growing as 16. The first two statements are based on Li Ma and
Leaders,” LinkedIn (www.linkedin.com), March11, Qing Qu, “Differentiation in Leader–Member
2021, pp. 1–3; “Enrique Lores: President and Chief Exchange: A Hierarchical Linear Modeling Ap-
Executive Officer, HP,” World Economic Forum proach,” The Leadership Quarterly, October 2010,
(www.weforum.com), 2021, p. 1; “Enrique Lores: pp. 733–744.
President and CEO HP Inc.” Business Roundtable 17. The second two statements are based on David J.
(www.businessrondtable.org), 2021, p. 12. Henderson, Robert C. Liden, Brian C. Glibkow-
2. “Surprising and Effective Cure for Today’s Biggest ski, and Anjali Chaudhry, “LMX Differentiation:
Workplace Crisis,” Executive Focus, September A Multilevel Review and Examination of Its An-
2004, p. 21. tecedents,” The Leadership Quarterly, August 2009,
3. Victor H. Vroom and Arthur G. Jago, “The Role of pp. 517–534.
the Situation in Leadership,” American Psycholo- 18. Kenneth J. Harris, Anthony R. Wheeler, and K.
gist, January 2007, pp. 6–16. Michele Kacmar, “Leader–Member Exchange and
4. Henry Mintzberg, Managing (San Francisco: Empowerment: Direct and Interactive Effects on
Berrett-Koehler Publishers, 2009), pp. 106–107. Job Satisfaction, Turnover Intentions, and Per-
5. “Everyday Mindfulness with Jon Kabat-Zinn, formance,” The Leadership Quarterly, June 2009,
Mindful (www.mindful.org), 2021, pp. 1–3. p. 399.
6. For a synthesis of contingency theory by one of 19. Yang Sui, Hui Wang, Bradley L. Kirman, and Sing
its key researchers, see Martin M. Chemers, An Li, “Understanding the Curvilinear Relationship
Integrative Theory of Leadership (Mahwah, NJ: between LMX Differentiation and Team Coordi-
Erlbaum, 1997), pp. 2838; Bernard M. Bass (with nation and Performance,” Personnel Psychology,
Ruth Bass), The Bass Handbook of Leadership: Number 3, 2016, pp. 555–597.
Theory, Research, and Managerial Applications, 20. Olli-Pekka Kauppila, “When and How Does LMX
Fourth Edition (New York: The Free Press, 2008), Differentiation Influence Followers’ Work Out-
pp. 522–527. comes? The Interactive Roles of One’s Own LMX
7. Vroom and Jago, “The Role of the Situation,” p. 20. Status and Organizational Context,” Personnel Psy-
8. Robert J. House, “A Path-Goal Theory of Leader chology, no. 2, 2016, pp. 357–393.
Effectiveness,” Administrative Science Quarterly, 21. Jungmin (Jamie) Seo et al., “Not All Differentiation
September 1971, pp. 321–328; Robert T. Keller, “A is the Same: Examining the Moderating Effects
Test of the Path-Goal Theory with Need for Clarity of Leader-Member Exchange (LMX) Configura-
as a Moderator in Research and Development Or- tions,” Journal of Applied Psychology, May 2018,
ganizations,” Journal of Applied Psychology, April pp. 478–495.
1989, pp. 208–212; Robert J. House and Terence R. 22. Andrew Yu, Fadel K. Matta, and Bryan Cornfield,
Mitchell, “Path-Goal Theory of Leadership,” Journal “Is Leader-Member Exchange Differentiation Ben-
of Contemporary Business, Autumn 1974, pp. 81–97. eficial or Detrimental for Group Effectiveness? A
9. Vroom and Jago, “The Role of the Situation,” p. 20. Meta-Analytic Investigation and Theoretical Inte-
10. Robert House, “Path-Goal Theory of Leadership: gration,” Academy of Management Journal, June
Lessons, Legacy, and a Reformulated Theory,” The 2018, pp. 1158–1188.
Leadership Quarterly, Vol. 7, no. 3, 1996, p. 348. 23. Fadel K. Matta and Linn Van Dyne, “Understand-
11. Quoted in Jeff Bercovici, “The Power of the ing the Disparate Behavioral Consequences of
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Most Improbable Financial Juggernaut,” Forbes, ison Emotions,” Academy of Management Review,
September 20, 2011, p. 90. January 2020, pp. 154–180.
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Journal of Leadership Studies, no. 3, 2013, p. 65. Bass, 2009), p. 6.
25. Zara Greenbaum, “Leadership in Times of Crisis,” 40. Deepa Seetharaman, “Zuckerberg’s New Leader-
Monitor on Psychology, July/August 2020, p. 44. ship Style Sparks Turmoil at the Top,” The Wall
26. Geoff Colvin, “Running Retirement U.” Fortune, Street Journal, November 19, 2018, pp. A1, A9.
March 1, 2015, p. 24. 41. Vince Molinaro, “Leadership Accountability,”
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Sensemaking Under Crises: Emerging Cognitive August 27, 2020, p. 2.
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The Leadership Quarterly, June 2015, pp. 308–309. Shuffler, Rebecca Lyons, Daniel Doty, and Eduardo
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Executive Leadership, December 2001, p. 8. Mission Critical Multiteam Environments,” The
29. Jack Zenger and Joseph Folkman,” Research: Leadership Quarterly, February 2011, pp. 152–169.
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Harvard Business Review (https://hbr.org), Decem- Successful Strategies,” The Job Network, June 14,
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(ed.), Handbook of Research on Crisis Leadership October 2010, p. 43.
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2013), pp. 12–13. sons from Covid Field Hospitals,” Harvard Business
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Harvard Business Review, Summer 2020, p. 38. 46. Suzanne Koudsi, “How to Cope with Tragedy,” For-
32. Lauren Weber, “One CEO’s Hands-On Crisis Man- tune, October 1, 2001, p. 34.
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2016, p. B8. Crisis,” p. 45.
33. “Lead in the 21st Century: An Interview with So- 48. Gordon Tredgold, “What Leadership Style is the
ciété Générale’s Frédéric Oudéa,” www.mckinsey Best in Motivating Your Employees During a Pan-
.com, November 2013, p. 1. demic?” Gordon Tredgold (https://gordontredgold
34. Quoted in P. R. Weiss, “Crisis Leadership,” T+D .com), 2021, p. 2
Magazine, March 31, 2002, p. 31. 49. Jia Lynn Yang, “A Recipe for Consistency,” Fortune,
35. Gemma D’Auria and Aaron De Smet, “Leadership October 29, 2007, p. 58.
in a Crisis: Responding to the Coronavirus Out- 50. Erika Hayes James and Lynn Perry Wooten, “How
break and Future Challenges,” McKinsey & Com- to Display Competence in Times of Crisis,” Organi-
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38. Ronald Heifetz, Alexander Grashow, and Marty Rousseau, The Realist Rationality,” p. 415.
Linsky, “Leadership in a (Permanent) Crisis,” 53. Sara L. Rynes, Denise M. Rousseau, and Eric
Harvard Business Review, July–August 2009, p. 64. Barends, “From the Guest Editors: Change the World:
39. Chris Warner and Don Schmincke, High Altitude Teach Evidence-Based Practice!” Academy of Manage-
Leadership: What the World’s Forbidding Techniques ment Learning & Education, September 2014, p. 305.
6
Chapter
Leadership Ethics and

Social Responsibility
Learning Objectives
After studying this chapter and doing the exercises, you 6.3 Describe what leaders can do to foster an ethical
should be able to and socially responsible organization.
6.1 Pinpoint key principles of ethical and moral leadership. 6.4 Identify the link between business ethics and
6.2 Apply a guide to ethical decision making. organizational performance.
Chapter Outline
Principles and Practices of Ethical and Moral Leadership Establishing Written Codes of Ethical Conduct
Five Ethical Leadership Behaviors Developing Formal Mechanisms for Dealing
Factors Contributing to Ethical Differences with Ethical Problems
The Ethical Mind for Leaders Accepting Whistleblowers
Guidelines for Evaluating the Ethics of a Decision Providing Training in Ethics and Social Responsibility
A Sampling of Unethical Leadership Behaviors Minimizing Abusive Supervision throughout the Organization
Leadership, Social Responsibility, and Creating an Ethical Taking a Stand on Social Issues
Organizational Culture Ethical and Socially Responsible Behavior and
Providing Strategic Leadership of Ethics and Social Organizational Performance
Responsibility Summary
Recognizing the Triple Bottom Line of Profit, People, and Planet Key Terms
Creating a Pleasant Workplace Guidelines for Actions and Skill Development
Helping Build a Sustainable Environment Leadership Case Problem A
Engaging in Social Entrepreneurship Leadership Case Problem B
Engaging in Philanthropy Notes
Working with Suppliers to Improve Working Conditions
L
eila Janah, a social entrepreneur who devoted her career became a well-publicized social entrepreneur. The other compa-
to creating job opportunities for the world’s poorest com- nies in the Sama Group are essentially divisions or departments
munities, died at age 37 from a rare soft-tissue cancer. that conduct various phases of the work: Samasource is an
Yet the work of the organizations she founded continues. As the artificial intelligence data company; Samaschool is a nonprofit
founder and chief executive officer (CEO) of the Sama Group, focused on reskilling for the new economy; and LXMI sells
which includes Samasource, Samaschool, and LXMI, Janah organic skin-care products.
141
142 Chapter 6 Leadership Ethics and Social Responsibility
The mission of all companies in the Sama Group is to companies and also sells luxury skin-care products through
decrease global poverty by obtaining work for very poor people, Laxmi. The Sama Group is self-funding based on contracts
particularly women and children, and also to build better com- with business firms. Clients of the Sama Group include Getty
munities. Janah believed that creating work opportunities rather Images, Microsoft, Google, eBay, LinkedIn, and Walmart. Janah
than aid is the most effective approach to combatting poverty. says, “They are shocked by the high quality of work that comes
Samasource has more than 2,000 employees in Kenya, Uganda, out of some of the most unlikely places.”
and India. In addition, work is outsourced to over 35,000 peo- Most of the work is Internet based including image tagging
ple. The company creates data for companies throughout the and content generation for websites. An educational program in
world that want to test artificial intelligence products, includ- the United States taught Americans how to find virtual work. The
ing self-driving cars and smart hardware. The Sama Group has students faced stiff international competition from low-wage
helped more than 50,000 people work their way out of poverty, workers. To improve job placement, Sama changed the focus to
and has become one of the largest employers in East Africa. skill such as social media marketing.
The idea for the social entrepreneurship traces back to an A core belief of Jana and her employees is that talent is
assignment Janah had while working as a management consul- equally distributed around the world, but opportunity is not. By
tant and assigned to a major Indian outsourcing company. She capitalizing on technology and private sector methods the Sama
encountered a man who was commuting in from the slums. An Group can therefore have a social impact. LXMI is a luxury skin-
idea clicked: “If this guy can do this work and he’s from a place care brand whose natural ingredients are harvested from the
with open sewers and cholera outbreaks, what if we can use this earth by poor women in poor countries, enabling them to earn
outsourcing and training model to grant more people access to above-average wages. The foundation idea behind Laxmi is that
work and get them out of poverty?” Funding Sama proved to be impact sourcing can also applied to the luxury sector, and that if
almost impossible. However, the persistent Janah won $30,000 people spend a lot of money for a product, that product should
from two business plan competitions in the Bay Area, to launch do some social good. LMXI grows, harvests, and processes the
the firm. ingredients of its skincare products on exchange for a fair wage
The core of the business is the model, Impact Sourcing. by local standards.
This approach uses technology-based jobs to people in poor lo- Several years ago, the Sama Group was cited by the mag-
cations in Africa, India, parts of Haiti, and rural Arkansas in the azine Fast Company as being among the most innovative com-
United States. A force underlying Janah’s work is the tragedy of panies. Janah graduated from Harvard University with a major in
talented and hard-working people struggling in poverty because international economic development with a focus on develop-
of geographic isolation from well-paying jobs. The Sama Group ment in Africa. Upon Janah’s death, a company spokesperson
uses private sector methods in innovative ways to substantially said, “We will miss Leila’s infectious laugh, her tenacious spirit,
improve poor people’s access to meaningful work, essential and her ability to inspire all she encountered to be a force for
medical care, and education. good in the world.”1
Instead of relying on grants to fund the work of her com-
panies, Janah outsources work for a few major technology
The story just presented represents an unusual ex-

ample of ethical and socially responsible leadership. Principles and Practices of Ethical
In this chapter, we examine leadership ethics and and Moral Leadership
social responsibility from several major perspec-
tives: principles of ethical and moral leadership, an Learning Objective 6.1 Pinpoint key principles of ethical
ethical decision-making guide, examples of ethical and moral leadership.
violations, examples of how leaders develop an
ethical and socially responsible culture, and the Enough attention has been paid to what leaders at all
link between business ethics and organizational levels should do that several principles of ethical and
performance. moral leadership have emerged. Because terms dealing
Principles and Practices of Ethical and Moral Leadership 143
with the ideal behavior of leaders are used so loosely, 14,000 employees in 10 countries. Five trends were
it is helpful to define what these terms have generally identified, as follows:
come to mean in the business community. Ethics is ● Trend 1 was that the ethical culture remains high,
the study of moral obligations, or of separating right
with 14 percent of employees across the globe work-
from wrong. Ethics can also be a plural noun mean-
ing in organizations with a strong ethical culture.
ing the accepted guidelines of behavior for groups or
institutions. 2 In this sense, it means much the same
● Trend 2 is that pressure to compromise standards is
as morals, which are an individual’s determination of the highest ever, with 29 percent of employees glob-
what is right or wrong; morals are influenced by a per- ally reporting pressure.
son’s values. Values are tied closely to ethics because ● Trend 3 is that observed misconduct is inching up-
ethics become the vehicle for converting values into ac- wards. In the United States and internationally, the
tion. A leader who values fairness will evaluate group most frequently observed types of misconduct in-
members on the basis of their performance, not per- cluded favoritism, management lying to employees,
sonal friendships. and conflicts of interest.
A moral leader will practice good ethics. Moral ● Trend 4 is that more employees are reporting mis-
leadership occurs when a leader takes a moral stance conduct, with 80 percent of employees in the United
on an issue, and convinces others to do the same. 3 States and globally reporting misconduct.
A leader at a vitamin and food supplements company ● Trend 5 is that retaliation rates have skyrocketed,
might take the stance that the company will not sell
with 79 percent of U.S. employees and 61 percent
a “memory-improvement supplement” until the com-
of global employees report that they experienced
pany has experimental evidence that people who use
retaliation.5 Retaliation would include a low perfor-
this supplement for a reasonable period of time really
mance evaluation or the denial of a salary increase.
do develop better short-term memory.
Edwin H. Locke, the goal theorist, argues that eth- An ethical leader is honest and trustworthy and
ics is at the center of leadership because the goal of a therefore has integrity. According to ethics researcher
rational leader is to merge the interests of all parties so Thomas E. Becker, this quality goes beyond honesty
that everyone benefits and the organization prospers.4 and conscientiousness. Integrity refers to loyalty
The ethics link is that if everyone benefits, all people to rational principles; it means practicing what one
are being treated ethically. preaches regardless of emotional or social pressure.6
In this section, we present a sampling of ethical For example, a leader with integrity would believe that
and moral behaviors, all centering on the idea that employees should be treated fairly, and the pressure to
a leader should do the right thing, as perceived by a cut costs would not prompt the leader to renege on a
consensus of reasonable people. None of these terms commitment to reimburse an employee for relocation
can be pinned down with great precision. We also expenses. As another example, a leader who preaches
present a brief explanation of why the ethical and cultural diversity would assemble a diverse team.
moral behavior of leaders differs so widely and pay Ron Wallace began his 38-year-long-career at UPS
separate attention to the importance of an ethical International as a delivery driver, and eventually be-
mind. Before studying these principles, do Leadership came CEO. He said that survey after survey indicates
Self-Assessment Quiz 6-1 to think through your that the No. 1 thing people want in a leader is integrity.
work-related ethics and morality. “It’s doing the right thing when no one else is looking.”7
Five Ethical Leadership Behaviors Pay Attention to All Stakeholders

Ethical and moral leaders strive to treat fairly all inter-
Be Honest and Trustworthy and Have Integrity ested parties affected by their decisions. To do otherwise
in Dealing with Others creates winners and losers after many decisions are made.
Continuing reports of frauds and scandals in the The traditional belief that a CEO’s primary responsibility
media have placed ethical behavior high on the pri- is to maximize shareholder wealth conflicts with the prin-
ority list of many organizations. The problem is ciple of paying attention to all stakeholders. A leader in-
that ethical problems erode the trust of both lead- terested in maximizing shareholder wealth might attempt
ers and organizations. Despite the importance of to cut costs and increase profits in such ways as (1) laying
leaders who are trustworthy, evidence suggests that off valuable employees to reduce payroll costs, (2) over-
business firms have many ethical problems. The stating profits to impress investors, (3) overcharging
Global Business Ethics Survey of 2020 included over customers, and (4) reducing health benefits for retirees.
The Leadership Ethics Quiz

Directions: Circle the numbers to indicate how well each statement describes your current attitudes and behavior,
or how you would behave if placed in the situation suggested by the statement. Response choices: 1 = disagree strongly;
2 = disagree; 3 = agree; 4 = agree strongly.
DS D A AS
1. A small bribe to make a sale is entirely reasonable. 1 2 3 4

2. As the manager, I would have no problem in taking credit for an innovative 1 2 3 4
idea of a subordinate.
3. Supplying a customer with a prostitute to help win a big contract is justified. 1 2 3 4
4. I would be willing to use a video surveillance camera to see what my subordi- 1 2 3 4
nates are doing when I am out of the office.
5. Cheating on your expense account up to about 10 percent of the total ex- 1 2 3 4
penses is usually justifiable.
6. Honest guys and gals tend to finish last. 1 2 3 4
7. If I were fired, I would be willing to get revenge on my employer by taking 1 2 3 4
away trade secrets.
8. I would avoid hiring someone into the work group who might become a 1 2 3 4
competitor for my position.
9. Overcharging a government customer for goods or services is justified be- 1 2 3 4
cause most companies already pay too much in taxes.
10. All things being equal, I would give higher performance evaluations to people 1 2 3 4
of my own ethnic group or race.
11. I deliberately give lower performance evaluations to subordinates who I dis- 1 2 3 4
like personally.
12. I typically play favorites within the group or team. 1 2 3 4
13. I am willing to fake productivity figures just to look good to upper 1 2 3 4
management.
14. I would not take time from writing an important report to coach a group 1 2 3 4
member who needed help at the moment.
15. I exaggerate the mistakes a subordinate might make just so they do not be- 1 2 3 4
come too self-confident.
16. I look for ways to get revenge on any group member who makes me look bad. 1 2 3 4
17. I rarely praise an employee without also finding a way to criticize something 1 2 3 4
they have done.
18. If a subordinate wants me to do something I do not want to do, I blame up- 1 2 3 4
per management for not letting me do it.
19. I think it is justified to ask group members to run errands for me, such as 1 2 3 4
getting my car repaired or shopping.
20. I will ignore an employee’s request to help with a problem just so I can spend 1 2 3 4
some personal time on the Internet.
(continued)
Leadership Self-Assessment Quiz 6-1 (continued)
Scoring and interpretation: Add up your responses to the twenty statements. Recognize that people tend to perceive them-
selves as more ethical and honest than they really are, so your score could be positively biased.
● 20–25: If you scored in this range, your self-image is that of a highly ethical and trustworthy leader or potential leader.
Assuming that your answers are accurate, your ethics could be an asset to you as a leader.
● 26–45: Scores in this range suggest the self-image of a leader or potential leader with an average level of ethics. There are
probably times when you could behave more ethically.
● 46–80: Scores in this range suggest the self-image of a highly unethical leader or potential leader. If your score is an accu-
rate reflection of your behavior, you are (or would be) perceived as highly unethical and devious to the point that it could
damage your career. You should study ethics seriously.
Although these practices may be standard, they all violate respect. 11 Showing respect for the individual also
the rights of stakeholders. means that you recognize that everybody has some
Jim Goodnight, the CEO of software company SAS, inner worth and should be treated with courtesy and
is among the business leaders who contend that there kindness. An office supervisor demonstrated respect in
is a strong link between employee satisfaction and in- front of his department when he asked a custodian who
creased productivity and profits. His commitment to entered the office, “What can we do in this department
work-life balance has led to SAS being consistently to make your job easier?”
ranked as one of the best workplaces worldwide. Good-
night explains, “Because we put employee-oriented Provide Healthy Leadership
measures in place long ago, we have the benefit of Social support for employees by the leader is known
years of experience to show that the long-term bene- to have a positive effect on the physical health and
fits far outweigh the short-term costs. Most companies well-being of subordinates. Approaches to leadership
don’t know how to represent that kind of return in their that provide social support can therefore be classified as
annual reports.”8 strongly ethical behavior. A particularly important form
Another behavior of authentic leaders (see Chapter 2) of social support is provided by the immediate manager.
is to perceive their role to include having an ethical re- The concept of healthy leadership encompasses many dif-
sponsibility to all of their shareholders. The welfare of ferent ideas, yet the relationship-oriented behaviors de-
others takes precedence over their own personal welfare scribed in Chapter 5 all contribute to healthy leadership.
(as in servant leadership). Authentic leaders have a deep A broad point of view is that whatever a leader does that
commitment to their personal growth as well as to the exerts a positive influence on the health and well-being of
growth of other stakeholders.9 group members is part of healthy leadership.
To pin down a little the meaning of healthy leader-
Build Community ship, three of its components are having a supportive
A corollary of taking into account the needs of all stake- leadership style, organizing health-planning activities,
holders is that the leader helps people achieve a com- and developing a health-promoting workplace.12 A CEO
mon goal. Leadership researcher Peter G. Northouse who practiced healthy leadership might therefore pro-
explains that leaders need to take into account their vide encouragement and recognition to as many em-
own and their followers’ purposes and search for goals ployees as possible, and establish a wellness program
that are compatible to all.10 When many people work on-site. The latter would include physical exercise fa-
toward the same constructive goal, they build a com- cilities, a stress-reduction and prevention program, and
munity. A business leader who works with many peo- seminars teaching good nutrition.
ple to help poor schoolchildren is an ideal example of
someone who builds a community. Factors Contributing to Ethical Differences
Respect the Individual There are many reasons for differences in ethics and
morality among leaders. Here we look at a variety of
Respecting individuals is a principle of ethical and
these factors.
moral leadership that incorporates other aspects of
morality. If you tell the truth, you respect others well 1. Leader moral identity. A set of studies confirmed
enough to be honest. If you keep promises, you also the idea that a leader’s moral identity has a ma-
show respect. And if you treat others fairly, you show jor influence on their level of ethical behavior.
A moral identity involves a self-perception orga- 4. Moral development level. A notable contrib-
nized around a set of moral traits such as honesty, utor to a leader’s ethics and morality is the lead-
caring, and compassion. The moral identity acts as er’s level of moral development. Some leaders
a self-regulatory mechanism rooted in a person’s are morally advanced, whereas others are mor-
sense of what is right and wrong. The studies in ally challenged—a mental condition that often
question concluded that leaders set the ethical develops early in life. People progress through
tone of an organization and are instrumental in three developmental levels in their moral rea-
encouraging ethical behavior among subordinates, soning. At the preconventional level, a person is
as well as reducing interpersonal conflict. Lead- concerned primarily with receiving external re-
ers with a strong moral identity are more likely to wards and avoiding punishment. A leader at this
achieve such good results.13 level of development might falsify earnings state-
A moral identity leads naturally to moral lead- ments for the primary purpose of gaining a large
ership. The State of Moral Leadership report pre- bonus. At the conventional level, people learn to
pared during the COVID-19 pandemic suggested conform to the expectations of good behavior as
that moral leadership is in high demand but short defined by key people in their environment and so-
supply. The report also found that managers who cietal norms. A leader at this level might be moral
demonstrate higher levels of moral leadership have enough just to look good, such as being fair with
stronger connections with colleagues. Furthermore, salary increases and encouraging contributions to
moral leadership is associated with stronger busi- the United Way campaign.
ness performance.14 At the postconventional level, people are
2. Greed, gluttony, and avarice. Many people seek guided by an internalized set of universal princi-
to maximize personal returns, even at the expense ples that may even transcend the laws of a partic-
of others. Exceptionally high executive compen- ular society. A leader at the postconventional level
sation could be interpreted as signs of greed and of moral behavior would be concerned with doing
avarice. Two examples are the recent one-year to- the most good for the most people, without re-
tal compensation including bonuses paid to Chad gard for whether such behavior brought recogni-
Richardson of Paycom ($211.13 million) and Amir tion and fortune.17 The servant leader described in
Dan Rubin of 1Life Healthcare ($199.05 million).15 Chapter 4 would be at this advanced level of moral
Instead of taking so much money for themselves, development.
how about sharing more of the money with em- 5. Sense of entitlement. The moral excesses of
ployees and stockholders, and offering lower business leaders can occur because many of them
prices for customers? The counterargument is that have developed a sense of entitlement. In the
supply and demand rules, with a limited supply of opinion of several psychiatrists and corporate
capable CEOs. You therefore have to pay talented governance experts, some CEOs lose their sense
executives loads of money to stay competitive, of reality and feel entitled to whatever they can
even if the compensation exceeds $100 million per get away with or steal. Many executives feel en-
year. Also, an effective CEO can point the firm in titled to extraordinary compensation, as implied
the right direction to enhance its prosperity and from the mention of greed, gluttony, and avarice.
survival. Recognize also that many celebrities re- Feelings of omnipotence are linked to feelings
ceive exceptional pay, such as the singer Lady of entitlement. Leaders of this nature feel so ag-
Gaga earning between $30 and $80 million a year. grandized and entitled that they believe the rules
3. Rationalization and implied permission. Timothy of decent behavior do not apply to them. 18 For
P. Flynn, chairman of the global accounting firm example, during the pandemic several governors
KPMG, has identified reasons why good people who banned unnecessary travel in their state, took
choose the wrong path. One reason is rationaliza- vacations to another country, including spending
tion, which leads people to focus on the intent of time at a resort in Mexico.
the action rather than on the action itself. For ex- 6. Situational influences. Unethical and immoral
ample, people might say that they are doing some- leadership behavior can also be influenced by the
thing wrong (such as exaggerating profits) in order situation, particularly the organizational culture. If
to help a client or that they are boosting the stock leaders at the top of the organization take impru-
price to help investors. Another reason is implied dent, quasi-legal risks, other leaders throughout the
permission: “Nobody is telling me to stop, so it must firm might be prompted to behave similarly. The im-
be OK.”16 For example, managers might continue to prudent risks in subprime mortgages taken with in-
place only personal friends and relatives in key jobs vestor money by investment banks during the great
because they were not told to stop. recession might have also reflected an aggressive
culture. Financial executives were pushed to max- 9. Bounded Ethicality. A final factor to be considered
.
imize profits, sometimes not taking into account here that contributes to unethical leadership behav-
investor welfare.19 Many financial specialists believe ior is tied in with cognitive limitations. According to
that the federal government push for availability of Harvard Business School professor and renowned
mortgages to applicants with low credit ratings en- ethics expert Max H. Bazerman, bounded ethical-
couraged the availability of subprime mortgages to ity refers to systematic cognitive barriers that pre-
be invested. vent us from being as ethical as we would like to
Another potential situational influence on eth- be. One barrier is that most people have the goal
ical behavior is that national culture in which the of maximizing value for themselves, which limits
leader operates. In some national cultures, bribes them from maximum ethical behavior—just like
are expected to carry out business transactions such motivated blindness. Our intuition tells us to do
as selling to companies or the government. As one what is best for personal gain, but deliberate ratio-
participant told Mary Gentile, who was directing nal analysis might tell us what to do for the greater
an ethics seminar in an Asian country, “Madam we good.23 A marketing executive at a chain of dis-
are happy to have you here and we listen to what count retail stores might recognize intuitively that
you have to say about ethics and values in the work- it is highly profitable to sell dated over-the-counter
place. But this is , and we are entrepre- (OTC) drugs. Yet, careful reflection might tell the
neurs—we can’t even get a driver’s license without leader, “Bad idea. Some customer could get sick,
paying a bribe.”20 and we could get bad publicity, and even fined.”
7. Character of the person. A person’s character
contributes heavily to ethical differences. The
higher the quality of a person’s character, the more The Ethical Mind for Leaders
likely that person will behave ethically and mor- Cognitive and educational psychologist Howard
ally. For example, a leader who is honest and co- Gardner believes that for a leader to stay ethical, that
operative will tend to behave more ethically than leader must develop an ethical mind or a point of
a leader who is dishonest and uncooperative. view that helps the individual aspire to good work that
A person’s character is quite close in meaning to matters to their colleagues, companies, and society in
moral identity, discussed first in this list. Char- general.24 Developing an ethical mind begins with the
acter is closely linked to virtue because a person belief that retaining an ethical compass is essential to
of good character displays virtue in many situa- the health of the organization. Early life influences,
tions. Virtue is somewhat like quality. It is difficult such as encouragement not to cheat on exams or pla-
to define, but you know it when you see it. Four giarize when writing papers, are a good start. Next, the
scholars from the University of Tasmania (part of leader must state their ethical beliefs and stick to them.
Australia) after completing an exhaustive analysis (The ethical beliefs already mentioned in this chapter
if the subject concluded that virtue is “the human are relevant, such as being convinced that attention
inclination to feel, think, and act in ways that ex- must be paid to all stakeholders.) The leader must also
press moral excellence and contribute to the com- make a rigorous self-test to make sure values are being
mon good.”21 adhered to, such as checking to see if merit instead of
8. Motivated blindness. A factor that contributes favoritism is a key criterion for promotion. Taking the
to unethical leadership behavior is motivated time to reflect on beliefs can help the leader stay fo-
blindness, or seeing what we want to see and cused on ethical behavior. Asking mentors to comment
missing contradictory information. (Motivated on the ethics of your behavior can be a useful reality
blindness means about the same thing as having check. Finally, to stay ethical, the leader should act
an ethical blind spot.) The result can be a conflict quickly on strongly unethical behavior of others, such
of interest, such as a compensation consultant be- as confronting a colleague who is using the corporate
ing paid by the CEO to make recommendations jet for a family vacation.
about her financial compensation. Although the So which leader has an ethical mind? You will prob-
consultant is attempting to be honest, the desire ably find many of them as hardworking middle man-
to please the CEO leads him to recommend a pay agers. Two well-known business leaders with an ethical
package so generous that the CEO becomes over- mind might be Hubert Joly of Best Buy and Julie Sweet
paid. Another example of motivated blindness is of Accenture based on their high reputations to date.
that a manager who hires an individual may not (Both executives were featured in previous chapters.)
notice the new hire’s unethical behavior because We never know, however, when a business leader with
the behavior would reflect an error in selecting an outstanding reputation for ethical behavior will
the new hire.22 have a moral lapse at some point.
deontological principle of reversibility, which eval-

Guidelines for Evaluating the uates the ethics of a decision by reversing the deci-
Ethics of a Decision sion maker.
● How does it smell? This question is based on a per-
Learning Objective 6.2 Apply a guide to ethical decision
making.
son’s intuition and common sense. For example,
counting a product inquiry over the Internet as a
Several guidelines, or ethical screens, have been sale would smell bad to a sensible person.
developed to help leaders or other influence agents Ethical issues that require a run through the guide
decide whether a given act is ethical or unethical. The are usually subtle rather than blatant, or a decision
Center for Business Ethics at Bentley College has de- that falls into the gray zone. An example took place
veloped six questions to evaluate the ethics of a spe- a while back when General Motors (GM) and Ford
cific decision:25 offered to buy out the pensions of 140,000 employees,
● Is it right? This question is based on the deontolog- meaning that workers were offered a lump-sum payout
ical theory of ethics that states there are certainly instead of monthly payments for the rest of their lives.
universally accepted guiding principles of rightness For example, an employee with 40 years of service
and wrongness, such as “thou shalt not steal.” might be offered $500,000, and then receive no more
pension money from the company. Employees who
● Is it fair? This question is based on the deonto-
refused the buyout would find their plan shifted to a
logical theory of justice that certain actions are
private financial services firm. The ethics of this pen-
inherently just or unjust. For example, it is unjust
sion buyout plan might fall into the gray zone because
to fire a high-performing employee to make room
the workers who accept the offer are receiving a large
for a less competent person who is a relative by
sum of money.26 If these same workers die early, their
marriage.
beneficiaries will have profited handsomely. Also, the
● Who gets hurt? This question is based on the utili- financial services firm would still provide them with at
tarian notion of attempting to do the greatest good least a limited pension. Yet, most workers who accept
for the greatest number of people. the buyout will receive much less money than if they
● Would you be comfortable if the details of your received monthly payments for the rest of their life.
decision or actions were made public in the media Leaders regularly face the necessity of running a
or through email? This question is based on the contemplated decision through an ethics test. Leader-
universalist principle of disclosure. ship Skill-Building Exercise 6-1 provides an opportu-
● What would you tell your child, sibling, or young nity to think through the ethics of a decision facing a
relative to do? This question is based on the beverage manufacturer.
Should “Dinosaur Power” Be Placed on the Market?

A manufacturer of niche beverages, such as vitamin wa- to be habit forming, particularly with young adults. Cliff said,
ter, canned tea drinks, and multi-vegetable bottled drinks, “Our test results show that the energy surge provided by this
is looking to expand its product line in order to raise reve- drink will keep people coming back for more. Consumers
nue. The product development team has been working for will be using it on and off the job to feel energized.”
several months on an energy-boosting drink, called Dino- With company revenues showing signs of declines, sales
saur Power. Product development head Cliff explained to could use a quick boost, yet there is some concern about
company leadership that energy drinks are among the fast- releasing what would be the highest-power, and most hab-
est-growing products in the beverage sector. He pointed out it-forming energy drink on the market. Work in a small group
that Dinosaur Power will differentiate itself from the many to take the contemplated decision about releasing Dinosaur
other products on the market because it will contain an Power into the market through the guidelines for evaluating
extra-heavy dose of caffeine, will resemble the taste of an the ethics of a decision.
alcoholic beverage, and will have a thick cherry taste known
Guidelines for Evaluating the Ethics of a Decision 149
A Sampling of Unethical engaged in by business leaders whose acts have been

Leadership Behaviors publicly reported. All of these unethical acts resulted
in convictions or indictments rather than simply ac-
We have been alluding to unethical behavior in this cusations or allegations. Thousands of other unethi-
and previous chapters. Here, we present a sampling cal acts go unreported, such as a business owner who
of unethical behaviors from the past and present. places a family member, friend, or lover on the pay-
A statement often made is that about 95 percent of roll at an inflated salary for work of limited value to
business leaders are ethical and that the 5 percent of the firm.
bad apples (mostly senior executives) get all the pub-
licity. However, the impact of unethical leadership has
been enormous. Unethical behavior has thrown com- Leadership, Social Responsibility, and
panies into bankruptcy, led to the layoffs of thousands
Creating an Ethical Organizational Culture
of workers, diminished trust in stock investments,
and discouraged many talented young people from Corporate social responsibility is the idea that firms
embarking on a business career. Table 6-1 presents have obligations to society beyond their financial ob-
some unethical, immoral, and often illegal behaviors ligations to owners or stockholders, and also beyond
Table 6-1 Examples of Unethical Behavior by Business Leaders

The sampling of behaviors presented here includes behaviors that resulted in criminal prosecutions, and
those that result in only embarrassment and negative press.
Leader and Company Offense and Outcome
Bernard L. Madoff, former Convicted of defrauding investors out of about $17 billion over a period
CEO of Bernard L. Madoff of years. Basically sold investors phantom investments, pocketed most
Investment Securities and also of the money, and made some payments to new investors from money
former chairman of NASDAQ paid by earlier investors. Had worldwide network of brokers and other
(the stock exchange) contacts sending him referrals. Sent to prison for 150 years for crimes
including securities fraud, international money laundering, mail fraud,
and wire fraud. At the time of conviction, said he was sorry.
The Madoff finance chief, Frank DiPascali, pleaded guilty to ten counts
of conspiracy, fraud, and other charges and faced a 125-year prison
sentence. In hopes of gaining leniency, he testified against five former
coworkers accused of participating in the fraud.
Madoff died while still a prisoner at age 82 of natural causes at the
Federal Medical Center in April 2021. He had been in poor health with
kidney failure, hypertension, and cardiac problems.
John Stumpf, Chairman and In 2016, federal investigators revealed that Wells Fargo had opened more
CEO of Wells Fargo & Co. than two million bank and credit card accounts for customers without
obtaining their consent from 2011 to 2015. As a result of these bogus
accounts, customers paid $2.6 million in unwarranted fees (such as draft
overcharges) for tens of thousands of unaware customers. Stumpf and the
executive team agreed to pay $185 million in penalties. Several years later,
the settlement reached $575 million. The bank was also fined $1 billion
for making auto-loan customers pay for automobile insurance they did
not want and for charging home mortgage customers improper fees.
The bank fired 5,300 employees for creating the unauthorized bank and
credit-card accounts. Stumpf gave back $41 million of his compensation
and said, “We never directed nor wanted our team members to provide
products and services to customers that they did not want.” Stumpf
resigned in 2016, receiving a $134 million retirement package.
(continued)
Table 6-1 Examples of Unethical Behavior by Business Leaders (continued)
Leader and Company Offense and Outcome
Elizabeth Holmes, founder, and Holmes dropped out of Stanford University at age 19 to launch Theranos,
former CEO of blood-testing and grew the company to a valuation of $9 billion. In 2014, Holmes
company Theranos. was the world’s youngest self-made billionaire. Then, shortcomings and
inaccuracies with the company’s technology were uncovered, along with
the role Holmes played in a coverup. Theranos and Holmes were charged
with massive fraud. Former Theranos President Ramesh “Sunny” Balwani
was also charged with multiple counts of fraud. From 2013 to 2015,
Holmes and Balwani secured more than $700 million from investors.
The U.S. Securities and Exchange Commission (SEC) contends the two
executives exaggerated or lied about the effectiveness of the Theranos
proprietary technology and the state of its finances.
If convicted, Holmes could face up to 20 years in prison. At the time
of her trial hearing in April 2021, Holmes was pregnant, which might
influence whether or not she is imprisoned.
Sources: The facts in the table have been widely circulated in the media. Representative sources for the facts include the following:
Andrew Tangel, “Bernie Madoff, Notorious Financier who Pulled Off History’s Biggest Swindle, Dies at 82,” The Los Angeles Times (www
.lat.com), April 14, 2021, pp. 1–2; Kevin McCoy, “Madoff’s Top Aide to Testify Today,” USA Today Money, December 2, 2013, p. 5B;
William Comcowich, “6 PR Crisis Management Lessons from the Wells Fargo Scandal,” Glean Info (https://glean.info), Febru-
ary 25, 2020, pp. 1–4; Stacy Cowley, “At Wells Fargo, Complains About Fraudulent Accounts Since 2005,” The New York Times (www
.nytime.com), October 11, 20016, pp. 1–6; Matt Krantz, “Under Cloud of Scandal, Wells Fargo CEO Retires, Gets $134M,” USA Today,
October 13, 2016, p. 1B; Avery Hartmans and Paige Leskin, “The Rise and Fall of Elizabeth Holmes, the Theranos Founder Whose
Federal Fraud Trial is Delayed Until 2021, Insider (www.businessinsider.com), August 11, 2020, pp. 1–2; Alex Keown, “Scandal Watch:
Elizabeth Holmes Appears in Court, Opioid Distributors on Trial and More,” Bio Space (www.biospace.com), pp. 1–2.
those prescribed by law or contract. The importance

of corporate social responsibility was underscored by Providing Strategic Leadership of
Larry Fink, the CEO of BlackRock, the world’s largest Ethics and Social Responsibility
asset manager. In 2018, he wrote in an annual letter to
the companies in which BlackRock invests, “To prosper Learning Objective 6.3 Describe what leaders can do to
over time, every company must not only deliver finan- foster an ethical and socially responsible organization.
cial performance, but also show it makes a contribu-
tion to society.”27 The most effective route to an ethical and socially re-
Fink’s view is widely accepted, but it should also sponsible organization is for senior management to pro-
be kept in mind that a company staying in business vide strategic leadership in that direction. In this way,
and making a profit can be seen as an act of corpo- senior managers become ethics leaders: Their policies
rate social responsibility. Among the social contribu- and actions set the ethical and social responsibility tone
tions made by a company are providing jobs directly, for the organization. If high ethics receive top priority,
supporting suppliers enabling them to provide jobs, workers at all levels are more likely to behave ethically.
paying taxes that benefit the community, and mak- Strategic leadership of ethics and social responsibil-
ing charitable contributions. Over 50 years ago the ity includes leading by example. If workers throughout
eminent economist Milton Friedman asked and an- the firm believe that behaving ethically is in and be-
swered a fundamental question about the role of busi- having unethically is out, ethical behavior will prevail.
ness in society. His frank answer was, “There is one Ethical behavior that is rewarded is likely to endure. In
and only one social responsibility of business—to use addition, workers who perform unethically should not
its resources and engage in activities to increase its be rewarded, and perhaps disciplined. A sales manager
profits.”28 who uses a thirty-five-day month might not be rewarded
Our focus here is illustrative actions that leaders for sales booked during those five days borrowed
can take to enhance social responsibility, as well as cre- from the next month just to look good in the previous
ate an organizational culture that encourages ethical months. To personalize the idea of social responsibility
behavior, as outlined in Figure 6-1. take Leadership Self-Assessment Quiz 6-2.
Providing Strategic Leadership of Ethics and Social Responsibility 151
Provide strategic Recognizing the triple Create a Help build a

leadership of social bottom line of profit, pleasant sustainable
responsibility and people, and planet workplace environment
ethics
Engage in social
entrepreneurship
Minimize abusive
supervision throughout SOCIALLY
Engage in
the organization. RESPONSIBLE
philanthropy
AND ETHICAL
ORGANIZATION
Work with suppliers
Provide training to improve working
in ethics and conditions
social responsibility
Establish written
codes of ethical
conduct
Develop formal
Accept mechanisms
whistleblowers for dealing with Taking a stand
ethical problems on social issues
Figure 6-1 Initiatives for Achieving a Socially Responsible and Ethical Organization.
Recognizing the Triple Bottom Line they make smaller packaging specifically for online
of Profit, People, and Planet sales, not store shelves.30
Paying attention to the triple bottom line enables
A comprehensive perspective about corporate social an organization to emphasize environmental, social,
responsibility is for an organization to focus on the or governance (ESG) issues. Environmental, social,
triple bottom line. The idea is that organizations and governance (ESG) criteria are a set of standards
should prepare three different and separate bottom investors use to evaluate investments. Environmental
lines: the corporate bottom line; people in terms of criteria focus on how well the company helps preserve
their well-being; and the planet, referring to environ- nature. Social criteria consider how well the company
mental responsibility.29 Many businesses of all sizes manages relationships with all stakeholders where it
make a conscious effort to focus on the triple bottom operates. Governance criteria consider a company’s
line. Keeping costs below revenue pays attention to leadership, executive pay, audits, internal controls, and
the corporate bottom line. Many activities and pro- shareholder rights.31 Accurate measurements of these
grams described in this book, such as employee en- three criteria require an enormous amount of time,
gagement and coaching, attempt to enhance worker along with both objective and subjective judgments.
well-being. A focus on the planet takes many forms, For example, under the governance criteria it may be
such as recycling waste or a package-delivery service necessary to identify all conflicts of interest on the
such as UPS using algorithms to find efficient truck board of directors.
routes, thereby reducing the amount of pollutants
sent into the air.
Amazon pays attention to profits and the planet
Creating a Pleasant Workplace
simultaneously by attempting to ship each order in
one correctly sized package instead of multiple boxes. Creating a comfortable, pleasant, and intellectually
Shipping costs are reduced, and at the same time, Am- stimulating work environment is a social responsibil-
azon responds to consumers’ concerns about the neg- ity initiative that directly affects employees’ well-being.
ative environmental impact and general nuisance of Because many people invest about one-third of their
all the cardboard and plastic packaging. Suppliers are time at work, a pleasant work environment increases
involved in the process because Amazon requests that the chances that their lives will be enriched. Robert
The Social Responsibility Initiative Checklist

For each one of the following possible social responsibility initiatives indicate whether you agree or disagree that company
leadership should take the initiative.
Initiative Taken Agree Disagree
1. Providing recreational facilities in the workplace.

2. Providing shelter and food on company premises for nearby
homeless people.
3. Giving financial assistance to shelters for victims of domestic
violence.
4. Giving time off from work to enable some employees to tutor
school children with reading, math, and technology skills.
5. Ensuring that minority-operated and women-operated small
businesses are awarded supplier contracts.
6. Subsidizing housing costs for workers earning up to 125 percent
of the poverty line.
7. Conducting job fairs in low-income areas of the city.
8. Hiring unqualified workers for certain positions to give them an
opportunity to learn job skills.
9. Working with local officials to hire workers recently released
from prison.
10. Encouraging all employees to report any ethical violation they
experience personally or have seen another person experience.
11. For all company premises where feasible, providing restrooms
for men, women, and gender-unspecified employees.
12. Planting as many trees and plants as feasible around the organi-
zation premises to provide habitat and help absorb carbon diox-
ide in the atmosphere.
13. Donating 5 percent of company profits to the favorite charities
of employees.
14. Granting employees one week per year time off to conduct vol-
unteer work.
15. Organizing a team of volunteers to renovate a house in need
of repair in a low-income neighborhood (the work will be con-
ducted during working hours, and the team members will
receive full pay).
Scoring and Interpretation: The more of the 15 socially responsible initiatives you agree with, the higher your level of concern
about social responsibility. If you agreed with almost all of the statements, however, you have to give some thought to the
tradeoff between being highly socially responsible yet still being profitable.
Levering and Milton Moskowitz of the Great Place to build a sustainable environment can involve hundreds
Work® Institute, in cooperation with Fortune, have in- of different actions such as making packaging smaller;
stitutionalized the idea of being a “best company to making more extensive use of LED lighting; and, when
work for.” Employers nominate themselves, and two- feasible, using energy from solar panels and wind tur-
thirds of the score is based on how randomly selected bines to replace burning of fossil fuels. Furthermore,
employees respond to the Great Place to Work Trust many companies sponsor team-building events, in
Index,® a survey measuring organizational culture. An which participants build a playground or refurbish an
evaluation of the Culture Audit by staff members at old house in a declining neighborhood. Preserving an
the Great Place to Work Institute determines the rest old building uses less energy than constructing a new
of the score. The focus is on employee satisfaction, yet one, and it enhances the aesthetics of the environment,
the firms that fall into “the 100 best companies to work as well. Planting trees on company premises absorbs
for” are also typically profitable. Among the benefits carbon dioxide and offers habitat for a diverse array of
these companies offer are flexible working hours; on- wildlife.
site day care; concierge services, such as dry-cleaning A representative leadership initiative for helping
pickup; domestic-partner benefits to same-sex couples; create a sustainable environment is the logistical work
and fully paid sabbaticals. Following are the three of of UPS. The company has improved the fuel efficiency
the most highly rated companies:32 of its domestic delivery fleet by 10 percent in recent
years. To improve another 10 percent, the company
Hilton. Ranked number one, Hilton listens to
has added more alternative fuel vehicles. A key gas
employee suggestions about changes, such as
saver is to minimize left turns. Avoiding left runs con-
making uniforms more comfortable and practical.
serves fuel and reduces emissions because less time
Employee spaces have comfortable furnishings,
is spent idling. UPS now has all-electric vehicles, hy-
are well lit, and contain massage chairs. Line-level
brid-electric vehicles, vehicles that run on compressed
workers such as cleaning and kitchen staff are
natural gas, and those that run on liquid natural gas.
treated well and recognized as major contributors
A newer development is the use of trucks with plas-
to the reputation of this giant hotel-and-resort
tic rather than aluminum paneling, creating a lighter,
chain. A chief aim of CEO Chris Nassetta has been
more fuel-efficient vehicle.33
to improve benefits for all employees including
UPS also use a Big Data tool called ORION (On-
housekeepers and HR managers. The company
Road Integrated Optimization and Navigation). for
offers outstanding management development
optimizing delivery routes. The advanced algorithms
programs that facilitate workers to be promoted
of this tool create optimal routes for UPS drivers from
into management. Hilton has over 62,000
the data furnished by customers and drivers. The
employees worldwide.
trucks can alter the routes on the fly based on changed
Navy Federal Credit Union, Vienna, VA: Ranked weather conditions or road accidents. Time savings,
number 19 on the list, Navy Federal is the world’s costs, and emission reduction from the application of
largest credit union, with over 18,000 employees. ORION are extraordinary. UPS anticipates reducing de-
The company has a generous award recognition livery miles by 100 million annually.34
program. A recent career award winner received Another way for a leader to help the environment
$10,000, and 73 employees were awarded $3,000 is to be in the recycling business. Electronic recycling
for providing excellent customer service. The credit is particularly important because electronics are the
union has strengthened e-learning and certificate fastest-growing solid waste stream in the world and
programs, and also assists employees with career contain toxins such as mercury and chromium. The
planning. largest company in the field is Electronic Recyclers
International in Fresno, California. The company is li-
The employee programs that qualify a company as
censed to remanufacture and recycle everything from
a best place to work focus on employee benefits. How-
computers to drones. ERI chief executive John S. She-
ever, the leaders of these companies also emphasize
gerian takes performing a good deed for society one
stimulating work.
step further: One-third of the 200 full- and part-time
employees are part of its second chance program,
which includes primarily ex-cons and former ad-
Helping Build a Sustainable Environment
dicts.35 The social-good aspect is that being employed
Socially responsible leaders influence others to sus- facilitates a person’s not lapsing back into criminal be-
tain and preserve the external environment through a havior and drug addiction.
variety of actions that go beyond mandatory environ- For company leadership to better evaluate their
mental controls such as managing toxic waste. Helping sustainability initiatives, it is important to rigorously
evaluate the steps, the processes they are using, and from Vermont to Hawaii have rejected or restricted wind
the true impact on the environment. According to the projects. Local governments and landowners frequently
research of Magali A. Delmas, Dror Etzion, and Nicho- reject wind projects because of concerns about noise
las Nairn-Birch, 80 percent of corporate environmental pollution, damaged views, falling property values, and
performance is accounted for by two factors. One is the reduced tourism. Migratory birds are often killed by tur-
environmental processes and practices implemented by bines. Building wind turbines also requires enormous
the firm; and the other is the environmental outcomes amounts of steel, copper, and rare earth elements.40
they generate.36 The point here is not do disparage recycling of plastic
For a company to be sustainably managed, it is im- and paper, or to endorse banishing wind turbines as en-
portant for the CEO to think strategically about sus- ergy sources. The message is for the organizational leader
tainability. Sony Corp., the electronics, entertainment, to recognize that all choices have costs and to weigh the
and financial services giant, was recently rated by The evidence before taking a politically popular stance.
Wall Street Journal analysts as number 1 among the top Leadership Skill-Building Exercise 6-2 provides an
100 sustainably managed companies. CEO Kenichiro opportunity for you to practice conducting an environ-
Yoshida has doubled down on generating social value mental audit.
while maintaining big profits at the company, says
Shiro Kambe, the Sony chief of sustainability. Core to
Engaging in Social Entrepreneurship
Sony’s strategy is working to be part of the solution for
sustainability risks at large, and not just for those is- A social responsibility initiative gaining momentum
sues facing the company.37 is social entrepreneurship, the use of market-based
As with any corporate social responsibility initia- methods to solve social problems. 41 Social entrepre-
tive, critical thinking is required to determine if a given neurship is therefore an entrepreneurial approach to
sustainability initiative is doing any good. In 2016 in social problems such as homelessness, contaminated
some regions of the United States, recycling companies drinking water, damaged physical environments, and
closed because of an extremely limited market for the extreme poverty. Other-oriented behavior is at the heart
recycled material. More than 300 of the 2,100 recycling of social entrepreneurship.42 (Recall the introductory
plants in California shut down because prices for scrap case to this chapter.)
material have plummeted. A contributing factor was Leaders at a business firm might engage in social en-
the plummet in the price of oil making it less expensive trepreneurship by forming a foundation to help a cause,
to produce, making new plastic cheaper than recycled. or be a socially focused, for-profit company such as
A major problem facing recyclers was that in early Better World Books. Through the sale of used and new
2021, China quit recycling United States and European books, one of the company’s social initiatives is to fund
trash. Even when China was accepting recyclables from literacy programs around the world. Partners of Bet-
other countries, most of the trash ended up in moun- ter World build schools, launch libraries, and provide
tains of trash in poor provinces. Despite the Chinese scholarships. Similar to other social entrepreneurships,
government decision, by 2020, the global demand for Better World pursues a triple bottom line of profits, tak-
both recycled plastic and paper was growing by more ing care of people, and protecting the planet.43
than 4 percent. 38 The lesson here is that for leaders A research-based model of social entrepreneurship
to think critically about sustainability, they must stay emphasizes that compassion encourages social entre-
abreast of developments in the external environment. preneurship. Compassion in the model is viewed as a
Coca-Cola circumvents the challenge of selling re- prosocial (helping others) motivation that connects
cycled plastic by recycling its own plastic bottles. The the individual with a suffering community and triggers
company is attempting to collect and recycle the equiv- sensitivity to the pain and needs of others.44 An excep-
alent of all the packaging it places in the world by 2030. tional example of a business leader with compassion is
Efforts by Coca-Cola’s leadership include investing in Father Gregory Boyle, the CEO of Homeboy Industries.
more efficient packaging and local recycling programs. The beginning mission of the company was to create
Chief executive James Quincey said that if the com- jobs for former Los Angeles gang members, many of
pany recollects all the bottles, there is no such thing as whom had prison records. The company takes for-
a single use bottle. He said, “Every bottle comes back mer men and women gang members and trains them
and every bottle has another life.”39 in job-related skills, starting with custodial work, fol-
The endorsement of wind turbines is another ex- lowed by baking skills. To create work for the former
ample of the need for leaders to think critically about gang members, Boyle started a bakery. Homeboy has
sustainability initiatives. Although wind turbines show expanded into five other social enterprises besides the
promise of reducing fossil fuel consumption, they create bakery, including Homegirl Café, and Homeboy Ap-
problems of their own. About 300 government entities parel & Merchandise.45
Conducting an Environmental Audit

To create an environmentally friendly workplace, somebody Questions
has to take the initiative to spot opportunities for change, 1. How energy efficient is the workplace in terms of such
thereby exercising leadership. Organize the class into factors as building insulation, use of fluorescent lighting,
groups of about five, with one person being appointed the heating and cooling, and use of solar panels?
team leader. You might have to do the work outside of class 2. How safe is the environment in terms of pollutants and
because your assignment is to do an environmental audit of steps to prevent physical accidents?
a workplace that might include nonprofit setting such as a 3. How esthetic is the environment in terms of protecting
place of worship, a school, or an athletic facility. If the audit against sight and sound pollution?
is done during class time, evaluate a portion of the school, Summarize your findings and suggestions in a bulleted
such as a classroom, an athletic facility, or the cafeteria. list of less than one page. Present your findings to class-
Your task is to conduct an environmental audit with respect mates and perhaps to a manager of the workplace. Class-
to the energy efficiency and healthfulness of the workplace. mates might comment on whether your findings will really
Make judgments, perhaps on a 1-to-10 scale, plus com- improve the planet from an ecological standpoint.
ments about the following factors:
Engaging in Philanthropy investment, seeking maximum return in terms of so-

cial impact. This philanthropist might also seek fol-
A standard organizational leadership approach to so-
low-up data, for example, on how many children were
cial responsibility is to donate money to charity and
taught to read or by what percentage new cases of
various other causes. Most charities are heavily depen-
AIDS declined.
dent on corporate support. Colleges, universities, and
The accompanying Leader in Action describes an
career schools also benefit from corporate donations.
act of philanthropy by one of the world’s best-known
Many of the leading philanthropists donate money
business enterprises.
during their lifetime rather than giving through their
estates. A striking example is Bill and Melinda Gates of
Microsoft, who formed their own foundation with the Working with Suppliers to
primary global aims of reducing extreme poverty, com-
Improve Working Conditions
bating AIDS, and vaccinating children against illnesses.
The work of the foundation continued after the couple An opportunity for practicing social responsibility
separated in 2021. is for company leaders to work with suppliers to im-
Financier Warren Buffet was a director of the prove physical and mental working conditions. In-
foundation up until 2021. In the United States, the fo- stead of refusing to deal with a supplier who operates
cus is more on educational opportunities and access a sweatshop, management might work with the sup-
to information technology. In 2021, the foundation plier to improve plant working conditions. The justifi-
had an endowment of over $50 billion, with Buffet cation for helping the supplier improve conditions is
having doubled the endowment in 2006. Furthermore, that the supplier’s employees are often in dire need of
Bill Gates has called for a revision of capitalism in a paying job. Almost any job is better than no job to
which poor people receive more benefits. Gates said a person facing extreme poverty or who is dependent
he is troubled because advances in technology, health- on modest wages for food and shelter. Helping suppli-
care, and education tend to help the rich and neglect ers improve working conditions has been conceptual-
the poor.46 ized as corporations being vehicles for positive social
Many corporate donors want their charitable in- change—yet another way of demonstrating corporate
vestments to benefit the end consumer, not get lost social responsibility.47 Another form of helping to im-
in red tape and overhead, and show measurable re- prove working conditions is to assist factory manage-
sults. The new breed of philanthropist studies each ment to repair potential hazards such as inadequate
charitable cause as they would a potential business escape routes in case of fire.

Leader in Action
Amazon Leadership Invests in Affordable Housing

In 2021, top-level leaders at Amazon announced a new organizations, and minority-led business enterprises to help
Housing Equity Fund that represented a $2 billion com- them build a more inclusive solution to the crisis of not hav-
mitment to preserve existing housing and create inclusive ing sufficient affordable housing. The crisis had its biggest
housing developments. These initiatives were made possi- impact on communities heavily populated by people of
ble through below-market interest rate loans and grants to color.
housing partners, traditional and nontraditional public agen- Sarah Rosen Wartell, president of the Urban Institute,
cies, and minority-group-led organizations. The fund was explained the relevance of the Housing Equity Fund. She
designed to support Amazon’s commitment to affordable noted that in prosperous cities across the United States,
housing, and helped ensure that moderate-to-low-income many apartment buildings that could be afforded by teach-
families can afford housing in communities with ready ac- ers, healthcare providers, and transit workers—among
cess to neighborhood services, stores, and jobs. others with moderate incomes—are frequently being rede-
Amazon, along with other tech companies, has been crit- veloped into luxury apartments. As a result, many tenants
icized for driving up home prices in locations such as the are displaced, and housing options are reduced for families
San Francisco Bay area. The reason for the surge in hous- of average income or below. Investments, such as the one
ing costs is that the companies recruit so many highly paid made by Amazon, help preserve the existing buildings and
workers who enter the geographic area. maintain moderate rents essential to local efforts that pro-
Executive chairman and founder Jeff Bezos said, “Amazon mote economic inclusion and support the stability and eco-
has a long-standing commitment to helping people in need, nomic mobility of families with moderate and low incomes.
including the Mary’s Place family shelter we built inside our Catherine Buell, head of community development for
Puget Sound headquarters. The shelter now supports over 200 one of Amazon’s philanthropic initiatives, said the com-
women and children experiencing homelessness every night.” pany does not have control over how housing markets
The Housing Equity Fund intended to create 20,000 respond to a large employer coming into the market. Yet
affordable homes in three Amazon headquarters regions— Amazon can play a role in how the company’s growth is im-
Arlington, Puget Sound, and Nashville—over a five-year pe- pacting its local communities. Amazon does not expect to
riod. The company employs about 5,000 workers in each loca- make money from its housing investments, and there is no
tion. In each of the three regions, Amazon targeted homes for favorable tax treatment for them, according to a company
households earning between 30 percent to 80 percent of the spokesperson.
area’s median income. The first investment of more than $567
million went to 1,300 affordable apartment units near Amazon’s
Questions
headquarters number two (HQ2) in Arlington, Virginia. 1. Amazon receives a lot of criticism for being a monopoly
and driving many small companies out of business. Do
Another goal of the initiative was to help local families
you think that the Housing Equity Fund is an attempt to
achieve long-term stability while building strong, inclusive improve the company image?
communities. A large proportion of Amazon’s investment is 2. To what extent do you think Amazon leadership should
in the form of low-cost loans to preserve or build affordable seek more publicity for its effort to increase affordable
housing for moderate-to-low-income families. housing?
Amazon’s Housing Equity Fund also provided an addi- 3. What impact, if any, might this story about Amazon have
on you as an Amazon customer or potential customer?
tional $125 million in cash grants to business, nonprofit
Sources: Original story based on facts and observations in the following sources: Nicole Friedman, “Amazon to Invest in Affordable
Housing,” The Wall Street Journal, January 8, 202, p. A3; Anna Bahney, “Amazon to Invest $2 Billion to Build Affordable Housing in
these 3 Cities,” WMURg (www.wmur.com), January 9, 2021, pp. 1–2; Reuters Staff, “Amazon.com To Spend $2 Billion in Homebuild-
ing Near Key U.S. Offices,” January 6, 2021, p. 1; Amazon Staff, “Amazon Launches $2 Billion Housing Equity Fund To Preserve and
Create over 20,000 Affordable Homes,” January 6, 2021, pp. 1–6.
Apple Inc. is one example whereby company Developing Formal Mechanisms for
leadership took action to work with suppliers to im- Dealing with Ethical Problems
prove substandard working conditions. Worker advo-
cates and Apple representatives found that workers Many large employers have ethics programs of various
assembling iPhones, iPads, and other Apple devices types. Large organizations frequently establish ethics
often work in harsh and dangerous conditions. It committees to help ensure ethical and socially responsi-
was found that many employees worked excessive ble behavior. Top-level leadership participation in these
overtime, lived in crowded dorms, and often stood at formal mechanisms gives them more clout. Committee
the assembly tables for such a long time that their members include a top-management representative,
legs swelled until they could barely walk. Underage plus other managers throughout the organization. An
workers were often included in the workforce of ethics and social responsibility specialist from the hu-
subcontractors. man resources department might also join the group.
In recent years, Apple made significant progress in The committee establishes policies for ethics and so-
improving the factories. The company now has a sup- cial responsibility and may conduct an ethical audit of
plier code of conduct that provides specific guidelines the firm’s activities. In addition, committee members
on labor standards and safety protection. Apple con- might review complaints about ethical problems.
ducts thorough audits, and when abuses are discov- Company ethics teams often establish an ethics ho-
ered, corrections are required for the subcontractor to tline that enables workers who have questions about
continue to be an Apple supplier.48 ethical behavior or want to report an ethics violation
Apple leadership has to stay vigilant to labor abuses, speak with a company official. Hotlines of this nature
because these abuses have a tendency to resurface, as are more likely to be used when employees throughout
reported by China Labor Watch, a nonprofit group. For the organization do not fear retaliation for reporting an
example, workers making iPhone casings at a Catcher ethical violation.
Technology factory in Suqian, China were discovered
to be working in an unsafe environment for long hours, Accepting Whistleblowers
and below industry standard wages. Many of the work-
ers were not provided protective gear such a goggles A whistleblower is an employee who discloses orga-
and face shields.49 nizational wrongdoing to parties who can take action.
Whistleblowers often go directly to a federal govern-
ment bureau to report what they consider to be fraud
Establishing Written Codes and poor ethics by their employer. Whistleblowers are
often ostracized and humiliated by the companies they
of Ethical Conduct
hope to improve. For example, they may receive no
Many organizations use written codes of conduct as further promotions or poor performance evaluations.
guidelines for ethical and socially responsible behavior. Also, many whistleblowers are fired or demoted, even
Regardless of the industry, most codes deal with quite for high-profile tips that proved true. A case in point
similar issues. Patricia Breeding, integrity compliance is Julie Tishkoff, an administrative assistant at Wells-
officer for Covenant Health, in Knoxville, Tennessee, Fargo, who blew the whistle on Wells-Fargo top man-
says, “They all address conflicts of interest, gifts and agement in 2005, eleven years before the bank was
things like vendor relationships. They use the word fined $185 million. Tishkoff wrote to the bank’s human
‘customer’ in one and ‘patient’ in another but they’re all resources department about such ethical violations as
about doing the right thing.”50 Prohibition against brib- employees opening sham accounts, forging customer
ery of government or corporate officials is being incor- signatures, and mailing out unsolicited credit cards. At
porated more frequently into ethical codes to combat least two supervisors ignored her complaints. She kept
potential major problems. complaining for four years before being fired.51
The Sarbanes–Oxley Act, triggered by the financial The Sarbanes–Oxley Act includes some protection
scandals around the year 2000, requires public compa- for whistleblowers. Employees who report fraud re-
nies to disclose whether they have adopted a code of lated to corporate accounting, internal accounting con-
ethics for senior financial officers. In some firms, work- trols, and auditing have a way of gaining reinstatement,
ers at all levels are required to sign the code of conduct. as well as back pay and legal expenses. More than half
A written code of conduct is more likely to influence of the pleas of whistleblowers are ignored.
behavior when both formal and informal leaders Because the pleas of whistleblowers are often dis-
throughout the firm refer to it frequently. Furthermore, missed, it is important for leaders at all levels to create
adherence to the code must be rewarded, and violation a comfortable climate for legitimate whistleblowing.
of the code should be punished. The leader needs to sort out the difference between a
troublemaker and a true whistleblower. Being a whis- in ethics. The leaders trained by Hewson then train
tleblower requires a small act of leadership, in the their respective teams. The format of training down the
sense of taking the initiative to bring about change. line continues until all employees have participated in
However, leaders of the organization that is turned in a training sessions facilitated by their direct manager.
might not perceive the change as constructive. The training includes observing several video sce-
Closely related to encouraging whistleblowers is for narios that are based on real cases from the Ethics
leadership to make it safe for people to speak up about office. Group discussions follow the viewing that in-
even minor ethical violations (referred to as psychological cludes comments about how to apply company ethical
safety). Elizabeth Morrison of New York University says techniques, and ask questions. As a result of the train-
that there are two fundamental challenges that prevent ing, participants are more alert to reporting report ethi-
employees from speaking up about ethical violations. cal violations they see on the job. Lockheed Martin says
First is the feeling of futility that it isn’t worth the effort that it always achieves 100 percent participation in live
because higher ups do not want to hear about problems. leader-led ethics awareness training.
Second is the prevalent fear that speaking up will trig- The company points out that it has never shied
ger anger by management or retribution (such as being away from discussing difficult issues. In recent train-
fired). The leader should therefore avoid acting annoyed ing, participants viewed and discussed topics such as
when a subordinate brings up an ethical violation.52 sexual harassment and opioid use in the workplace,
and how to speak up about these sensitive topics.53
Leadership Skill-Building Exercise 6-3 gives you
Providing Training in Ethics the opportunity to engage in a small amount of ethics
and Social Responsibility training.
Forms of ethics training include messages about eth-
ics and social responsibility from company leadership, Minimizing Abusive Supervision
classes on ethics at colleges, and exercises in ethics.
Throughout the Organization
These training programs reinforce the idea that eth-
ical and socially responsible behavior is both morally Part of being an ethical workplace is fair and consider-
right and good for business. Much of the content of this ate treatment of employees by supervisors and manag-
chapter reflects the type of information communicated ers. Despite this obvious truth, an unknown number of
in such programs. Training programs in ethics and so- managers engage in the dark side of leadership referred
cial responsibility are most likely to be effective when to as abusive supervision, defined as “a dysfunctional
the organizational culture encourages ethical behavior. leadership behavior that adversely affects its targets
The Ethics Awareness Training at Lockheed Martin is and the organization as a whole.” Abusive supervision
frequently cited as a positive model of an ethics training can take the form of hostile behaviors such as angry
program. The training provides an overview of Lockheed tantrums, public criticisms, and inappropriately as-
Martin’s standards of business conduct and sensitizes em- signed blame.54
ployees to recognize and react to business situation that Several abusive leadership behaviors as self
may require critical thinking about ethical issues. For ex- perceived by leaders are as follows:
ample, should a proposed act of generosity by a supplier ● “I gave an employee the silent treatment.”
representative be considered excessive influence?
The annual training begins when Lockheed Martin’s
● “I ridiculed an employee.”
executive chairman, Marilyn Hewson, trains her staff ● “I told an employee that they were incompetent.”55
Collecting Examples of Socially Responsible Behavior

Each class member contacts three currently employed peo- even a group email. When all the data have been collected,
ple, and asks them “Tell me what your employer does that see if you can reach a conclusion about what constitutes a
you think is socially responsible?” It may be helpful to ex- common socially responsible practice. For example, “giving
plain what you mean by socially responsible because the money to charity” or “paying decent wages” might be two
term might not be generally understood. Perhaps class frequent socially responsible practices.
members can share their findings on a common platform,
Ethical and Socially Responsible Behavior and Organizational Performance 159
A large study with both manufacturing technicians are large opportunity gaps that are still existing in
and commercial airline pilots in China revealed an- our country.”
other notable impact of abusive supervision. The study ● After the high school shooting in Parkland Florida
found that abusive supervision is negatively related to that left 17 people dead, Walmart Inc. and Dick’s
workplace safety. Abusive supervision leads to a dimin- Sporting Goods said they would raise the minimum
ished sense of belonging, which makes employees less age for gun buyers at their store to 21.
observant of safety practices, a problem that could be
catastrophic with airline pilots.56 Harvey Golub, the former CEO of American Ex-
Minimizing abusive supervision throughout the press, argues strongly that politics is risky business for
organization would include a variety of top-level lead- CEOs. He states that it is wrong for executives to take
ership actions such as frequent communication about a position on public-policy questions for the key rea-
the topic, and coaching managers known to be abusive. son that CEO announcements on purely political issues
Listening carefully to employee complaints about being will alienate many of the company’s employees and
abused would also be helpful. customers.59
In attempting to minimize abusive supervision, it
is important for organizational leadership to recog-
nize that what constitutes abuse partially depends on
employee perceptions. One factor influencing percep-
Ethical and Socially Responsible
tions of abuse is psychological entitlement. Such enti- Behavior and Organizational
tlement refers to a stable and overall tendency toward Performance
favorable self-perceptions and expectations of rewards
even when there is little justification for such beliefs. Learning Objective 6.4 Identify the link between business
The psychologically entitled employee is also reluctant ethics and organizational performance.
to accept criticisms that conflict with self-views and a
tendency toward high expectations concerning rewards High ethics and social responsibility are sometimes
and praise. A set of studies showed that psychologically related to good financial performance. Thomas W. H.
entitled employees are more likely than their coun- Ng and Daniel C. Feldman conducted a meta-analysis
terparts to feel that they are victims of abuse. Feeling of 101 samples published over a fifteen-year period, in-
abused, entitled employees will often retaliate against volving 29,620 study participants. Ethical leadership in
their supervisor by undermining them, and the organi- the studies was usually measured by subordinate evalu-
zation.57 Undermining the organization would include ations of their supervisor or manager. A major result of
purposely making errors at work and being rude to- the analysis was that ethical leadership was positively
ward customers. related to job attitudes, job performance, and overall
evaluation of the leaders. Another key finding of the
meta-analysis was that ethical leadership was slightly
Taking a Stand on Social Issues related to task performance and good organizational
The last initiative for being an ethical and socially re- citizenship behavior and was also helpful in reducing
sponsible organization is controversial. Taking a stand counterproductive work behavior. A contributing factor
on social issues is favored by some stakeholders and to the findings of the study was that ethical leaders are
frowned upon by others, often depending on their po- more trusted by employees, and trust often results in
litical beliefs. A prime example is that a CEO might positive job attitudes and behaviors.60
publicly state opposition to people having to provide According to a study conducted by the Ethics Re-
identification before voting. In contrast, many stake- source Center, employees who work in an ethical en-
holders and customers think that “voter ID” is essen- vironment tend to be better motivated. The study
tial for preventing voter fraud. Following are three concluded that the chance to contribute to something
examples of business leaders taking a stand on social larger than themselves and be recognized for it is a
issues:58 strong incentive to employees for delivering superior
performance. 61 Using this approach, it is helpful if
● In response to several publicized charges of police company leaders explain why the work is larger than
brutality against Black people, the Washington, DC- oneself, such as a cement manufacturer explaining to
based restaurant chain & pizza gives workers extra employees that the cement is vital for building infra-
paid time off so they could protest. structure that serves the needs of many people.
● Also in response to police brutality, Kenneth Fra- Another key payoff from high corporate social re-
zier, CEO of Merck at the time, and a Black man, sponsibility is the ability to attract high-quality employ-
said, “We’re not asking people to give everybody ees. An experiment conducted at a career fair suggested
handouts, but we need to acknowledge that there that job seekers were more likely to apply for a job when
the CEO of the company was ethical. The job seekers improper financial reporting. Charges of age discrim-
were less likely to apply when the CEO was morally ination and sex discrimination are two leading sources
questionable, or when their level of ethical behavior of lawsuits against companies.
was unknown.62 Two related experiments attempted to The relationship between social responsibility and
understand why an employer with high corporate social profits can also work in two directions: More profitable
responsibility tends to attract so many job applicants. firms can better afford to invest in social responsibil-
The conclusion reached was that corporate social re- ity initiatives, and these initiatives can lead to more
sponsibility sends out signals about organizational profits. The relationship between social and financial
prestige that appeal to the pride that job seekers antici- performance may be a virtuous circle, meaning that
pate from being affiliated with the company. The stud- corporate social performance and corporate financial
ies also found that corporate social responsibility (CSR) performance feed and reinforce each other.64
sends out signals about organizational values that sug- In short, a leader who is successful at establishing
gest whether the candidate will have a good values fit a climate of high ethics and social responsibility can
with the organization. The level of CSR also sends out earn and save the company a lot of money. Yet, there
signals about how well employees are treated.63 are times when being socially responsible can eat into
Being ethical also helps avoid the costs of paying profits. For example, installing solar panels in a geo-
huge fines for being unethical, including charges of graphic area with limited sunshine might create a long
discrimination and class action lawsuits because of payback from the panels.
Reader’s Roadmap
So far in this book, we have examined the nature of leadership; the inner qualities of leaders; and leadership styles,
contingency leadership, and the leader’s ethical behavior and social responsibility. In the next chapter, we focus on
how leaders acquire and maintain power and their use of organizational politics.
Summary
Principles of ethical and moral leadership all center It has been proposed that to stay ethical, a
on the idea that a leader should do the right thing, leader must develop an ethical mind focused on
as perceived by a consensus of reasonable people. good work.
Key principles of ethical and moral leadership are Before reaching a decision about an issue that is
as follows: (1) be honest and trustworthy and have not obviously ethical or blatantly unethical, a leader
integrity in dealing with others, (2) pay attention to or manager should seek answers to questions such
all stakeholders, (3) build community, (4) respect as: Is it right? Is it fair? Who gets hurt? Unethical be-
the individual, and (5) provide healthy leadership. havior has brought companies into bankruptcy, led
Differences in ethics and morality can be traced to layoffs of thousands of workers, diminished trust
to eight factors: (1) leader moral identity, (2) the in stock investments, and discouraged many talented
leader’s level of greed, gluttony, and avarice, (3) ra- young people from embarking on a business career.
tionalization and implied permission to engage in Another way a leader can be ethical and moral
unethical acts, (4) the leader’s level of moral devel- is to spearhead the firm, or a unit within it, toward
opment, (5) a sense of entitlement; (6) situational doing good deeds—toward being socially responsi-
influences, (7) character of the person, (8) moti- ble and creating an ethical organizational culture.
vated blindness, and (9) bounded ethicality. Among the many possible socially responsible and
Ethical and Socially Responsible Behavior and Organizational Performance 161
ethical acts are (1) providing strategic leadership of High ethics and social responsibility are some-
social responsibility and ethics, (2) recognizing the times related to good financial performance, ac-
triple bottom line of profit, people, and the planet, cording to research evidence and opinion. A
(3) creating a pleasant workplace, (4) helping build a meta-analysis revealed that ethical leadership was
sustainable environment, (5) engaging in social entre- positively related to job attitudes, job performance,
preneurship, (6) engaging in philanthropy, (7) work- and overall evaluation of the leaders. Employees
ing with suppliers to improve working conditions, who work in an ethical environment tend to be bet-
(8) establishing written codes of conduct, (9) develop- ter motivated. Corporate social responsibility can
ing formal mechanisms for dealing with ethical prob- help in recruiting talented employees, can lead to
lems, (10) accepting whistleblowers, (11) providing higher commitment to the company, and can help
training in ethics and social responsibility, (12) mini- avoid huge fines. Corporate social performance and
mizing abusive supervision through the organization, corporate financial performance often feed and re-
and (13) taking a stand on social issues. inforce each other.
Key Terms
Ethics 143 bounded ethicality 147 environmental, social, and
morals 143 ethical mind 147 governance (ESG) 151
moral leadership 143 corporate social social entrepreneurship 154
integrity 143 responsibility 149 whistleblower 157
entitlement 146 triple bottom line 141 abusive supervision 158
virtue 147 virtuous circle 160
A solid foundation for developing a leadership career job. In contrast, if a weak relationship exists be-
is to establish a personal ethical code. An ethical code tween two individuals, either party is more likely to
determines what behavior is right or wrong, good or treat the other badly. In the work environment, the
bad, based on values. The values stem from cultural people involved may be your work associates, your
upbringing, religious teachings, peer influences, and contacts, or your internal and external customers.65
professional or industry standards. A code of profes- The message is for you as a leader to build strong
sional ethics helps a leader deal with such issues as relationships with others in order to increase the
accepting bribes, backstabbing coworkers, and sexu- frequency of ethical behavior.
ally harassing a work associate. A set of experiments with supervisors sug-
A provocative explanation of the causes of un- gests that abusive supervision is often triggered
ethical behavior emphasizes the strength of rela- by poor-performing employees who may trigger a
tionships among people. Assume that two people sense of hostility in the supervisor.66 As a leader, it
have close ties to each other—they may have worked is therefore important to be on the alert that poor
together for a long time or have known each other performance by a subordinate does prompt you to
both on and off the job. As a consequence, they are supervise abusively. You must exercise self-control
likely to behave ethically toward one another on the to deal with poor performance professionally.
Discussion Questions and Activities 6. How fair do you think it is to deny an executive a
1. If many unethical people in business and govern- CEO position that had been promised because of a
ment become highly successful, why should you romantic relationship with a subordinate? Explain
worry about being ethical? your reasoning.
2. The majority of business executives accused of 7. As a present or future organizational leader, what
unethical behavior have studied ethics either as a can you do to be an ethical role model for others?
subject in a business course or as an entire course. 8. Provide an example of a company you consider to
What do you think went wrong? be highly ethical and socially responsible. What is
3. Suppose you had inside information that your em- the basis for your answer?
ployer was thinking about declaring bankruptcy, 9. Suppose a company founder and CEO feels
and you find out that a family member was about strongly about a social issue, such as believing
to purchase $20,000 in the stock of your employer. that defunding the police hurts Black people in
To what extent would it be unethical for you to low-income neighborhoods the most, or that
dissuade the family member from making the police should be defunded. Where do you stand on
investment? whether that leader should express that opinion to
4. What responsibility should the major online retail- company employees?
ers take to combat “porch pirates”? The latter are 10. In this chapter, we have discussed ethical prob-
people who steal packages left at people’s homes. lems mostly in business. For sake of fairness and
5. Should leaders of companies that produce fatten- balance, identify a few ethical problems you have
ing food that can lead to cardiac problems and obe- observed among lawyers, physicians, politicians, or
sity be targeted for being socially irresponsible? sports figures.
Salary Advance United Ponders condemning the business. He reminds the team
Its Future that some of the accusations against the industry
Max is the CEO of Salary Advance United, a pay- are preposterous.
day lender with twenty-five locations. The core “My favorite example is that renting a full-size
business of Salary Advance is to lend consumers sedan for a day costs about $75 before taxes,”
advances of between $100 and $500 against their said Max. “If somebody rented the car for the
paycheck for short periods of time, usually about entire year, or 365 days, the annual fee would be
one week to ten days. Salary Advance also offers $27,375 plus taxes. Yet no politician complains
other financial services such as check cashing and about the exorbitant rates charged by car-rental
wiring money. Similar to other payday lenders, agencies. My biggest concern right now is that
Salary Advance charges approximately $15 for a the state is going to shut us down.”
two-week loan to their borrowers who tend to be Max then had a problem-solving session with
high risk. If the loan interest were calculated on the group, exploring alternatives that could be
an annual basis, the rate would be 390 percent. pursued to stay in business. One alternative that
Some states, including New York, cap interest emerged was to set up online operations overseas
rates at 16 percent for loans, even though store in a country that welcomed such businesses (e.g.,
credit cards often charge over 20 percent for their Malta or the West Indies). The suggestion was to
loans. (Both 16 and 20 refer to annual rates.) still keep a few offices open to catch street traffic
Max informs his management team during a and offer services for wiring money. In this way,
meeting quite that he, along with them, is wor- state regulations could be avoided.
ried about the future of the business. He notes Another alternative that the group formulated
that fifteen states have already banned payday was to base the business on a Native American
loans, and that more and more politicians are reservation, again to avoid state regulations.
A handful of payday lenders have successfully Questions

made this transition. 1. What is your evaluation of the ethics of Salary
Max concluded the meeting by saying, “We Advance United making payday loans?
cannot forget that our mission is to help finan- 2. What do you think of the ethics of the two
cially troubled people in need. Without our loans, alternatives mentioned to avoid state regula-
many of our potential customers would have tions: locating offshore or on a Native Ameri-
their cars repossessed or their homes foreclosed. can reservation?
Equally bad, they would have to use loan sharks 3. What do you recommend to Max to make
to get money. Our interest rates may seem high to the business model of Salary Advance ethical
the outside world, but we have to charge enough enough to avoid being attacked by politicians?
to cover our risks and earn a small profit.”
The team nodded in agreement with Max.

One student plays the role of Max who is attempting management team at the company. A group discussion
to provide leadership to the group with respect to pon- ensues, with some attention paid to the ethics of Sal-
dering the future of Salary Advance United. Several ary Advance United. Feedback can be provided about
other students play the roles of members of the top how well the ethical issues were handled.
Nehemiah Manufacturing Screens Workers five years. Before the company gave him a second
with a Criminal Past to Offer Them a Second chance, Taylor could not land a job anywhere.
Chance “Employers would run a background check on
Nehemiah Manufacturing Co. is a household and me, and back out,” he said.
personal care products company that has been When two managers with extensive
in operation since 2009. The company makes consumer-products experience founded Nehe-
and packages several lines for Procter & Gamble miah, their idea was to create more job oppor-
(P&G) such as Downey, Draft, and Febreze, and tunities in a struggling part of Cincinnati. Often
has annual revenues of over $50 million. Since it job creation meant recruiting and hiring a sub-
first opened, Nehemiah has practiced what they set of the population with difficulty finding em-
term second-chance hiring of difficult-to-employ, ployment, those with criminal backgrounds.
formerly incarcerated people. The company has The program of hiring workers with a crim-
a workforce of 150 people, and about 83 percent inal past, centers on providing social services
have a criminal record. An outstanding example and support to workers returning from incarcer-
is Michael Taylor, now the operations manager at ation out of necessity, because the program got
Nehemiah. He has been promoted seven times in off to a rocky start. Many employees continued
to struggle with substance abuse or mental ill- we’re hiring who had criminal backgrounds
ness, and some were homeless. “We didn’t un- were our most loyal people. When we were look-
derstand all of the challenges,” said Dan Meyer, ing for people to work overtime, come in on
CEO of Nehemiah. Employees showed up one Saturday, or go to that extra mile, it was the sec-
day only to disappear the following day. To help ond-chance population that was saying, ‘I’m in.’”
deal with these problems, Nehemiah employs a Palmer says the company hiring model has
social worker fulltime along with a three-person not scared away customers, but there are still
support team. The company also partners with struggles with some of the workers hired. Even
several social service agencies in the Cincinnati though screened before hiring, some work-
area, such as The HELP Program. ers are not ready, such as showing up for work
The social worker team meets with each re- drunk. Yet Nehemiah management perseveres.
cruit to conduct a complete assessment of the Meyer said, “We are about second chances, third
worker’s immediate barriers to employment. chances, and I may go to five.”
Among the factors evaluated are housing stabil-
ity, available transportation, drug and alcohol Questions
problems, mental health issues, and outstanding 1. What does the story about Nehemiah Manufac-
fees. Next, a plan is developed to remove the bar- turing have to do with social responsibility?
riers that have in the past kept that person from 2. How should Nehemiah leadership deal with
holding a job. “We are investing in our employ- complaints that job applicants who were not
ees in order to retain them,” said Richard Palmer, formerly incarcerated are not given equal op-
president of Nehemiah. Employees are offered portunity to be hired?
temporary jobs first, and start employment on 3. What recommendations might you have to
the factory floor taking products off the conveyor CEO Dan Meyer about how many chances
belt and loading them onto a pallet. to give to workers who are not conducting
Nehemiah management quickly saw the themselves responsibly?
need for being more deliberate about iden-
tifying candidates who are likely to be good, Sources: Original story based on facts and obser-
reliable employees. Even the candidates who vations in the following sources: Ruth Simon, “The
appear to be the strongest still need extensive Company of Second Chances, The Wall Street Jour-
social support. nal, January 25–26, 2020, pp. B1, B6; “Expanding
During the first nine years of operation, the Workforce with Second Chance Employment,”
170 employees had passed through their sec- www.bizjournal.som, May 3, 2019, pp. 1–4. © 2020
ond-chance program. The turnover rate has American City Business Journals; Parija Kavilanz,
been a low 15 percent, a fact that contributes “The Factory Where Prisoners Get a Second Chance,”
to company productivity. Nehemiah leadership CNNMoney (https://money.cnn.com), May 8, 2017,
contends that their difficult-to-employ workers pp. 1–3; Erica Spaid Patras, “Nehemiah Industries
appreciate their second chance and often be- Offers a ‘Second Chance’ Through Employee Hiring,”
come extremely loyal “super-workers.” Palmer Greater Ohio Policy Center (www.greaterohio.org),
said that “We found out that the population February 21, 2019, pp. 1–2.

One student plays the role of a job applicant who was was chosen for the sales position. Another student
rejected for a sales position at Nehemiah, and some- plays the role of President Richard Palmer who wants
how gets an opportunity to review the reasons for to convince the job applicant that the company was
being rejected. The candidate is suspicious that a for- being socially responsible by choosing the other
merly incarcerated person with lesser qualifications applicant.
Notes 165
Company Stand on Social Issues

In recent years, an increasing number of CEOs have taken in your network, and get their opinion on whether company
a stand on social issues such as the minimum wage, race leadership should express their opinion to employees and
relations, and even whether transgender girls and women the public about social issues.
should be allowed to compete on girls’ and women’s sports The skill-building here is subtle but important. As a
teams. Leaders throughout the organization might also be leader, should you attempt to influence group members on
expressing an opinion on social issues during working hours. social issues—particularly if your stance suggests whether
Your task in this exercise is to contact four working people you are a liberal or conservative?
For this chapter’s entry into your leadership journal, reflect software I wanted for $50. At first, I thought this
on any scenario you have encountered recently that would would be a real money saver. After thinking through
have given you the opportunity to practice ethical or so- the ethical issues, I came to realize that the person
cially responsible behavior. The scenario could have taken selling this software was probably a pirate. If I pur-
place in relation to employment, an interaction with fellow chased from this character, I would be supporting a
students, or being a customer of some type. Write down the software pirate. Besides, buying stolen goods might
scenario, and how you responded to it. Indicate what you even be a crime. I learned from this incident that
learned about yourself. An example follows: there are many opportunities in everyday life to prac-
I had been thinking of purchasing advanced software tice good—or bad—ethics. I want to become a moral
to manage and edit photos on my computer. The leader, so practicing good ethics will help me.
software I needed would cost several hundred dol- P.S.: By being ethical, I probably avoided buying vi-
lars. The other day, while going through my email, I rus-infected software that could have played havoc
came upon an advertisement offering the exact photo with my computer.
Notes
1. Original story based on facts and observations in pp. 86–89; “Leila Janah: Co-Founder and CEO
the following sources: “Meet the Game Changer: of LXMI,” LinkedIn (www.linkedin.com), pp. 1–6;
Leila Janah, Fond and CEO of SAMA Group,” Nicole Chavez and Laura Ly, “Leila Janah, CEO
TOMS (www.toms.com), September 11, 2015, and Entrepreneur Who Wanted to End Global Pov-
pp. 1–9; “Ten Extraordinary Women Entrepre- erty, Dies at 37,” CNN (www.cnn.com), February 1,
neurs,” Faction Studio NYC (www.factoionstudio 2020, pp. 1–2; “Leila Janah,” www.leilajanah.com,
.com),2016, pp. 3–4; Heather Wood Rudulph, February 24, 2020, pp. 1–8.
“Get That Life: How I Started My Own Company 2. James G. Clawson, Level Three Leadership: Getting
at 25,” Cosmopolitan (www.cosmopolitan.com), below the Surface, Second Edition (Upper Saddle
May 9, 2016, pp. 1–9; Sara Kessler, “For Redefin- River, NJ: Prentice Hall, 2002), p. 54.
ing What It Means to Be as Not-for-Profit Business: 3. Omar N. Solinger, Paul G. W, Jansen, and Joep
The SAMA Group,” Fast Company, March 2016, P. C o r n e l i s s a n , “ T h e E m e r g e n c e o f M o r a l
Leadership,” Academy of Management Review, July 21. Toby Newstead et al, “What Is Virtue? Advancing
2020, p. 504. the Conceptualization of Virtue to Inform Positive
4. Cited in Joanne B. Ciulla, ed., Ethics: The Heart of Organizational Inquiry,” Academy of Management
Leadership, Second Edition (Westport, CO: Praeger, Perspective, November 2018, p. 446.
2004), p. 119. 22. Max H. Bazerman and Ann E. Tenbrunsel, “Ethical
5. “Global Business Ethics Survey,” ECI Ethics & Com- Breakdowns,” Harvard Business Review, April
pliance Initiative (www.ethics.org), 2021, pp. 1–2. 2011, pp. 61–62.
6. Thomas E. Becker, “Integrity in Organizations: 23. Max H. Bazerman, “A New Model for Ethical
Beyond Honesty and Conscientiousness,” Academy Leadership: Create More Value for Society,” Har-
of Management Review, January 1998, pp. 154–161. vard Business Review, September-October 2020,
7. A Conversation with Ron Wallace: From UPS pp. 90–97.
Driver to President,” Executive Leadership, Septem- 24. H. Gardner, “The Ethical Mind: A Conversation
ber 2016, p. 3. with Psychologist Howard Gardner,” Harvard Busi-
8. Tricia Bisoux, “Corporate Counter Culture,” ness Review, March 2007, pp. 51–56.
BizEd, November/December 2004, p. 18; “Jim Good- 25. James L. Bowditch and Anthony F. Buono,
night: Co-Founder & Chief Executive Office,” SAS A Primer on Organizational Behavior, Fifth edition
(www.sas.com), 2021. (New York: Wiley, 2001), p. 4.
9. Douglas R. May, Adrian Y. L. Chan, Timothy D. 26. Keith Naughton, “U.S. Automakers Cut Retirees
Hodges, and Bruce J. Avolio, “Developing the Loose,” Bloomberg Businessweek, July 2–July 8,
Moral Component of Authentic Leadership,” Orga- 2012, pp. 14–16.
nizational Dynamics, no. 3, 2003, p. 248. 27. Quoted in Leslie P. Norton, “In Defense of ‘Social
10. Peter G. Northouse, Leadership: Theory and Prac- Purpose’,” Barron’s Special Supplement/The Wall
tice, Second Edition (Thousand Oaks, CA: Sage Street Journal, June 26, 2028, p. S2.
Publications, 2001), p. 263. 28. Quoted in “From There to Here: 50 years of Think-
11. Clawson, Level Three Leadership, p. 57. ing on the Social Responsibility of Business,”
12. Cort W. Rudolph, Lauren D. Murphy, and Hannes McKinsey Quarterly (www.mckinsey.com),
Zacher, “A Systematic Review and Critique on November 11, 2020.
Research on ‘Healthy Leadership’,” The Leadership 29. J. Alberto Aragon-Correa et al, “Sustainability Man-
Quarterly, February 2020, pp. 1–21 (101335). agement Teaching Resources and the Challenge of
13. David M. Mayer, Karl Aquino, Rebecca L. Green- Balancing Planet, People, and Profits,” Academy
baum, and Maribeth Kuenzi, “Who Displays of Management Learning & Education, September
Ethical Leadership, and Why Does It Matter?” 2017, pp. 469–483; “Triple Bottom Line,” The Econ-
Academy of Management Journal, February 2012, omist, November 17, 2009, pp. 1–2.
pp. 151–171. 30. Laura Stevens and Erica E. Phillips, “More
14. Dov Seidman, “Why Moral Leadership Matters Amazon Orders, Fewer Boxes,” The Wall Street
More than Ever,” World Economic Forum (www Journal, December 21, 2017, p. B2.
.weforum.org), February 19, 2021, pp. 1–3. 31. James Chen, “Environmental, Social, and Gov-
15. Chris Morris, “These Were the Top-Paid CEOs of ernance (ESG) Criteria,” Investopedia (www
2020,” Fortune (www.fortune.com), April 26, 2021, .investopedia.com), March 5, 2021, pp. 1–3; Em-
pp. 1–2. ily Glazer, “Companies Get Ready for New ESG
16. “KPMG’s Timothy Flynn: Restoring Credibility and Rules,” The Wall Street Journal, January 19, 2021,
Not Looking Back,” Knowledge @ Wharton, Decem- p. R9.
ber 12, 2007, p. 1. 32. “The 100 Best Companies to Work For 2020, For-
17. Lawrence Kohlberg, Essays on Moral Development tune, March 2020, pp. 115–127; Robert Levering
(New York: Harper & Row, 1984). and Milton Moskowitz, “The 2008 List,” Fortune,
18. Merete Wedell-Wedellsborg, “The Psychology February 4, 2008, p. 75.
Behind Unethical Behavior,” Harvard Business 33. Peter Carter, “UPS Offers Keys to Fuel Efficiency,”
Review (https://hbr.org), April 12, 2019, pp. 1–4. www.truckinginfo.com, August 14, 2014, pp. 1–3.
19. Aaron Lucchetti and Monica Langley, “Perform-or- 34. Bernard Marr, “The Brilliant Ways UPS Uses
Die Culture Leaves Thin Talent Pool for Top Wall Artificial Intelligence, Machine Learning and Big
Street Jobs,” The Wall Street Journal, November 5, Data,” Forbes (www.forbes.com), June 16, 2018,
2007, p. A1. pp. 1–6.
20. Quoted in Marcy C. Gentile, “Talking about Ethics 35. Erika Brown, “Rehab, Reuse, Recycle,” Forbes, April 21,
Across Cultures,” Harvard Business Review (https:// 2008, pp. 70, 72; “Going All-In on Electronics Re-
hbr.org). December 23, 2016, p. 2. cycling with John Shegerian” Conscious Company
Notes 167
Magazine (www.consciouscompanymagazine.com), 49. Zoey Chong, “Apple Supplier Guilty of Unsafe Work
Fall 2015, pp. 1–8. Conditions,” CNET (www,cnet.com), January 18,
36. Magali A. Delmas, Dror Etzion, and Nicho- 2017, pp. 1–3.
las Nairn-Birch, “Triangulating Environmen- 50. Quoted in Joanne Lozar Glenn, “Making Sense of
tal Performance: What Do Corporate Social Ethics,” Business Education Forum, October 2004,
Responsibility Ratings Really Capture?” Acad- p. 10.
emy of Management Perspectives, August 2013, 51. Stacy Cowley, “At Wells Fargo, Complaints About
pp. 255–267. Fraudulent Accounts Since 2005,” The New York
37. Fabiana Negrin Ochoa et al, “The 100 Most Times (www.nytimes.com), October 16, 2016,
Sustainably Managed Companies in the World,” pp. 1–2.
The Wall Street Journal, October 14, 2020, p. R1. 52. Cited in Ron Carucci, “Why Ethical People Make
38. Matt Smith, “Cheap Oil Is Shutting Down Califor- Unethical Choices,” Harvard Business Review
nia Recycling Centers,” VICE News (https://news (https://hbr.org), December 16, 2016, p. 3.
.vice.com), June 30, 2016, pp. 1–9; “Global Paper 53. “ E t h i c s Aw a r e n e s s Tr a i n i n g , ” h t t p : / / w w w
Recycling Market Report 2020: Market is Esti- .lockheedmartin.com, 2021, pp. 1–2.
mated to be $45.5 Billion in 2020 and is expected to 54. Angela J. Xu, Raymond Loi, and Long W. Lam,
Reach $56.2 Billion by 2025,” Intrado (www.glober- “The Bad Boss Takes All: How Abusive Supervision
newswire.com), February 2, 2021, p. 1; “Plastic and Leader-Member Exchange Interact to Influ-
Recycling Market is Expected to Expand at 5.82%,” ence Employee Silence,” The Leadership Quarterly,
Intrado (www.globernewswire.com), March 12, October 2015, p. 763.
2021, p. 1; Kenneth Rapoza, “China Quits Recy- 55. Szu-Han (Joanna) Lin, Hingjing Ma, and Russell
cling U.S. Trash As Sustainable Start-Up Makes E. Johnson, “When Ethical Leader Behavior
Strides,” Forbes (www.forbes.com), January 10, Breaks Bad: How Ethical Leader Behavior Can
2021, pp. 1-3. Turn Abusive via Ego Depletion and Moral Licens-
39. Quoted in Cara Lombardo, “Coca-Cola Sets Goal to ing,” Journal of Applied Psychology, June 2016,
Recycle Bottles,” The Wall Street Journal, January 22, p. 820.
2018, p. B4. 56. Liu-Qin Yang et al, “Abusive Supervision. Thwarted
40. Robert Bryce, “Rural America Gets Bad Vibrations Belongingness, and Workplace Safety: A Group
from Big Wind,” The Wall Street Journal, May 6, Engagement Perspective,” Journal of Applied Psy-
2021, p. A21. chology, March 2020, pp. 230–244.
41. Matthew G. Grimes, Jeffery S. McMullen, and 57. Paul Harvey, Kenneth J. Harris, William E. Gillis,
Toyah L. Miller, “Dialogue,” Academy of Manage- and Mark J. Martinko, “Abusive Supervision and
ment Review, July 2013, p. 460. the Entitled Employee,” The Leadership Quarterly,
42. Nettra D. Pan, Marc Gruber, and Julia Binder, April 2014, pp. 204–217.
“Dialogue,” Academy of Management Review, Janu- 58. Kathryn Dill, “Corporate Leaders Speak Out on
ary 2019, pp. 213–215. Racism,” The Wall Street Journal, June 3, 2020,
43. BetterWorldBooks.com. Accessed May 8, 2021. p. B3; Kristin Toussaint, “Beyond Woke Capital-
44. Toyah L. Miller, Matthew G. Grimes, Jeffery ism,” Fortune November 2020, 10; Vanessa Fuhr-
S. McMullen, and Timothy J. Vogus, “Ventur- mans and Rachel Feintzeig, “CEOs Risk Speaking
ing for Others with Heart and Head: How Com- Up: Taking a Stand on Societal Issues Can Mean
passion Encourages Social Entrepreneurship,” Hurting Business,” The Wall Street Journal, March
Academy of Management Review, October 2012, 2, 2018, p. B3.
pp. 616–640. 59. Harvey Golub, “Politics Is Risky Business for CEOs,”
45. “Social Enterprise,” Homeboy (https://home The Wall Street Journal, April 13, 2021, p. A15.
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46. For details, see www.gatesfoundation.org. cal Leadership: Meta-Analytic Evidence of Crite-
47. Robert J. Bies, Jean M. Bartunek, Timothy rion-Related and Incremental Validity,” Journal of
L. Fort, and Mayer N. Zald, “Corporations as Applied Psychology, May 2015, pp. 948–965.
Social Change Agents: Individual, Interper- 61. “Employees Who Work in an Ethical Environ-
sonal, Institutional, and Environmental Dynam- ment Are More Inclined to Go the Extra Mile for
ics,” Academy of Management Review, July 2007, the Boss,” Ethics Resource Center (www.ethics.org),
pp. 788–793. July 8, 2010.
48. Charles Duhigg and David Barboza, “In China, 62. Babatunde Ogunfowora, “The Impact of Ethical
Human Costs Are Built into an iPad,” The New York Leadership with the Recruitment Context: The
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63. David A. Jones, Chelsea R. Willness, and Sarah 65. Daniel J. Brass, Kenneth D. Butterfield, and Bruce
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7
Chapter
Power, Politics, and

Leadership
Learning Objectives
After studying this chapter and doing the exercises, you 7.3 Describe how to use delegation to support empowerment.
should be able to 7.4 Pinpoint factors contributing to organizational politics.
7.1 Describe the various types of power. 7.5 Enumerate both ethical and unethical political behaviors.
7.2 Articulate tactics used for becoming an 7.6 Characterize how a leader can control
empowering leader. dysfunctional politics.
Chapter Outline
Sources and Types of Power Subjective Standards of Performance

Position Power Environmental Uncertainty and Turbulence
Personal Power Emotional Insecurity
Power Stemming from Ownership Machiavellian Tendencies
Power Stemming from Dependencies Encouraging Admiration from Subordinates
Power Derived from Capitalizing on Opportunity Political Tactics and Strategies
Power Stemming from Managing Critical Problems Ethical Political Tactics and Strategies
Power Stemming from Being Close to Power Unethical Political Tactics and Strategies
Power and Self-Serving Behavior Exercising Control over Dysfunctional Politics
Tactics for Becoming an Empowering Leader Summary
The Nature of Empowerment Key Terms
Empowering Practices Guidelines for Actions and Skill Development
Effective Delegation and Empowerment Leadership Case Problem A
Factors That Contribute to Organizational Politics Leadership Case Problem B
Pyramid-Shaped Organization Structure Notes
S
alesforce chairman and chief executive officer (CEO) leads and obtain a deeper understanding of their consumers,
Marc Benioff is widely regarded as one of the most using state of the art technologies including artificial intel-
powerful leaders in Silicon Valley. Salesforce special- ligence (AI). The company has close to one-half of the sales
izes in customer relationship software and was the first com- software market. Salesforce sales grew 20 percent a year for
pany to offer software on demand, now known as the cloud. its first 20 years, a feat unmatched by any other CEO in any
Salesforce products help their customers generate more sales other company.
169
170 Chapter 7 Power, Politics, and Leadership
A guiding business principle for Benioff is that a business Benioff works hard to make trust a basic part of Sales-
leader is responsible for customer relationship management. He force. He created a department labeled the Office of Ethical and
believes that if a business leader makes the mistake of thinking Human Use. The department gathers the concerns of custom-
they do not have to deal with customer management, the leader ers, employees, and other stakeholders, and then relays that in-
will soon discover the error in this perspective. formation to Benioff.
Larry Ellison, the CEO and cofounder of Oracle Corpora- Benioff enjoys symbols of power and influence. He has
tion, the enterprise software giant, invested in Salesforce when invested in 130 startups, and Salesforce’s 1000-foot-tall sky-
it was launched in 1999. Benioff was 23 years old when he won scraper is the second-tallest building west of the Mississippi. A
the Rookie of the Year Award at Oracle. By age 26, he was a key tall building in Manhattan displays a large, sky-blue Salesforce
executive at the company. Ellison and Benioff are recognized sign, as do skyscrapers in Indianapolis and London. Benioff also
as having transformed the database and software industries, sets powerful goals, such as doubling the company’s annual
respectively. Benioff has high self-confidence and has been revenues.
known to trash talk his competitors in public. One of his guiding Benioff is married to Lynne Benioff, a marketing consultant
principles is, “Think of it as you want it, not as it is.” Another and philanthropist. He says, “I strongly believe the business of
principle is never to give others your power. An example is that a business is to improve the world.” In line with this belief, the
Benioff has expressed no interest in selling Salesforce, which couple has pledged millions of dollars in low-income housing
generates over $20 billion in annual revenues. to help deal with the housing crisis in Silicon Valley. Marc and
As part of his powerful image, Benioff enjoys being confron- Lynne Benioff have also funded two major children’s hospitals in
tational and will pick fights, such as making negative comments San Francisco and Oakland that include educational support in
about executives in competitive companies. Although Benioff addition to health services. Both hospitals bear their name. The
is an innovator, he is also an imitator when closely following a 1-1-1 Salesforce plan is a commitment to donate 1 percent of
product or service will help his firm. For example, his service Salesforce’s employee time, technology, and resources to non-
called Chatter closely resembles Facebook, except that it is de- profits and charitable causes.
signed for intracompany use. Another Benioff achievement is In response to the recent pandemic, Benioff found a way to
the invention of the App store, and later gifted the name to Steve engage in a mammoth effort to procure and transport 50 million
Jobs at Apple. Salesforce then used the name App Exchange to pieces of personal protective equipment (PPE) to frontline
provide apps for business. healthcare workers. To achieve this feat, he gained the coop-
Benioff believes strongly in exploring new business ideas, eration of Daniel Zhang, the CEO of the Chinese e-commerce
or having a growth mindset. “You can have an expert’s mind company Alibaba.
where you have few possibilities, or you can have a beginner’s Benioff’s primary nonwork activity is helping charitable
mind, where you always have every possibility,” he says. To causes and supporting candidates for political office. He grad-
keep his mind sharp, Benioff practices mindfulness, which he uated with a B.S. degree in business administration from the
accomplishes with the help of meditation. University of Southern California.1
This powerful and influential e-commerce execu- business executive, self-enhancement remains a ba-
tive’s story illustrates several sources of power held sic motive.2
by leaders, including expertise and the power of own-
ership. This chapter covers the nature of power, the
ways leaders acquire power and empower others, Sources and Types of Power
and the use and control of organizational politics.
Chapter 8 continues the discussion of organizational
Learning Objective 7.1 Describe the various types
(or office) politics by examining influence tactics. An
of power.
encouraging note for the student of power and orga-
nizational politics is that despite all the advances in To exercise influence, a leader must have power, po-
technology and organizational theory, the basic prin- tential, or ability to influence decisions and control re-
ciples of power, politics, and influence remain con- sources. Power is said to consist of two broad types, the
stant. For example, from cave people to the modern old and the new. Old power is held by few, and once
Sources and Types of Power 171
it is acquired, it is jealously guarded. Powerful people publicly traded companies combining the roles corre-
have a substantial store of power, which they can use sponds with the practice in large European companies.5
as needed. Such power is inaccessible to most people,
and it is leader driven. New power is created by many, Reward Power
is open, is participatory, and is peer driven. Sharing
The authority to give employees rewards for compli-
knowledge on social media is an example of this new
ance is reward power. If a vice president of operations
power, and so are consumers who provide input to the
can directly reward supervisors with cash bonuses for
design of products they use.3 Power in organizations is
achieving productivity targets, this manager will exert
mostly about old power, but processes such as empow-
considerable power. Almost any leader occupying a for-
erment and shared leadership tend toward being the
mal position has some reward power. Even the ability
new power.
to give a subordinate a positive performance evaluation
Organizational power can be derived from many
is a form of reward power.
sources. How people obtain power depends to a large
extent on the type of power they seek. Therefore, to
understand the mechanics of acquiring power, one
Coercive Power
must also understand what types of power exist and Coercive power is the power to punish for noncompli-
the sources and origins of these types of power. Seven ance; it is based on fear. A common coercive tactic is
types of power, including some of their subtypes, are for an executive to demote a subordinate manager who
described in the following sections. does not comply with the executive’s plans for change.
Coercive power is limited, in that punishment and fear
achieve mixed results as motivators. The leader who
Position Power relies heavily on coercive power runs the constant
Power is frequently classified according to whether it threat of being ousted from power. Nevertheless, coer-
stems from the organization or the individual.4 Three cive power is widely practiced. At their worst, leaders
bases of power—legitimate power, reward power, and who rely heavily on coercive power are considered to
coercive power—stem from the person’s position in the be power mongers in the sense that they will go to ex-
organization. tremes to gain and retain power.6 An example would be
firing a capable subordinate because the person might
Legitimate Power be regarded by influential people as a possible replace-
The lawful right to make a decision and expect comment for the executive.
pliance is called legitimate power. People at the
highest levels in the organization have more power
Personal Power
than do people below them. However, organizational
culture helps establish the limits to anyone’s power. Three sources of power stem from characteristics
Newly appointed executives, for example, are of- or behaviors of the power actor: expert power, ref-
ten frustrated with how long it takes to effect major erent power, and prestige power. All are classified as
change. A chief financial officer (CFO) recruited to personal power because they are derived from the
improve the profitability of a telecommunications person rather than the organization. Expert power
firm noted, “The company has been downsizing for and referent power contribute to charisma. Referent
three years. We have more office space and manufac- power is the ability to influence others through one’s
turing capacity than we need. Yet whenever I intro- desirable traits and characteristics. Expert power is
duce the topic of selling off real estate to cut costs, I the ability to influence others through specialized
get a cold reception.” knowledge, skills, or abilities. A component of expert
At the top of the organization, a leader’s legiti- power is having information not widely possessed by
mate power is strengthened when carrying the titles of others, such as being an accurate predictor of com-
both CEO and chair. Executives who occupy the dual modity prices.
role show a unity of command and strong leadership An example of a leader with substantial expert power
to stakeholders. A push by corporate governance spe- is Doug McMillon who became Walmart’s fifth CEO in
cialists, shareholders, and regulators runs counter to company history, at age 47. He began his career with the
the dual role. The percentage of S&P 500 companies company as a teenager unloading trucks at a Walmart
whose chief executives also occupy the chair role has distribution center. After receiving an MBA at the Univer-
decreased to less than 46 percent in recent years. The sity of Tulsa, McMillon entered the buyer training pro-
argument against the dual role is that a stand-alone gram at Walmart, with one of his first assignments being
chairman or chairwoman can act as a counterweight the purchase of fishing tackle. He then held positions in
to a stand-alone CEO. The decrease in the number of various aspects of purchasing and merchandising, which
helped him develop expertise relevant to the company. estate developer can lose power when several major
His job knowledge combined with a friendly, charis- properties lose money, or worse enter bankruptcy. (Part
matic image was a key factor in choosing him to repre- of the power lost is the ability to borrow money.) When
sent Walmart in television advertisements.7 business conditions improve, and the developer slowly
Another important form of personal power is rebuilds, they tend to regain power. Several key real es-
prestige power, the power stemming from a person’s tate developers lost fortunes in the real estate bust in
status and reputation.8 A manager who has accumu- south Florida around 2009, but then regained power
lated important business successes acquires pres- with the rebirth of the real estate market in the same
tige power. Managers acquire visibility based on their region four years later.
reputation—for example, a middle manager who has
been successful at reducing turnover in the restaurant
or hotel industry. Integrity is another contributor to Power Derived from Capitalizing
prestige power because it enhances a leader’s reputa- on Opportunity
tion. Executive recruiters identify executives who can Power can be derived from being in the right place at
readily be placed in senior positions because of their the right time and taking the appropriate action. It
excellent track records (or prestige). pays to be where the action is. For example, the best
opportunities in a diversified company lie in one of
Power Stemming from Ownership its growth divisions. Also, many small recycling firms
moved from junkyard status to ecology firms as the
Executive leaders accrue power in their capacity as interest in environmental sustainability surged in the
agents acting on behalf of shareholders. The strength mid-2000s. A person or a firm also needs to have the
of ownership power depends on how closely the leader right resources to capitalize on an opportunity, such
is linked to shareholders and board members. A lead- as having the capacity to recycle on a larger scale. As
er’s ownership power is also associated with how much mentioned in Chapter 6, by around 2016 the demand
money that leader has invested in the firm. An execu- for recycled materials had diminished, yet the de-
tive who is a major shareholder is much less likely to mand picked up strongly again by 2020 except for in
be fired by the board than one without an equity stake. China. Recyclers who survived during the dip in de-
The CEOs of high-technology firms are typically command for recycled plastic and paper, prospered again
pany founders who later convert the firm into a pub- four years later.
licly held company by selling stock. After the public
offering, many of these CEOs own stock worth several
hundred million dollars, making their position quite se-
cure. The New Golden Rule applies: The person who
holds the gold rules.
Powerful Person
Power Stemming from Dependencies

According to the dependence perspective, people ac-
crue power when others are dependent on them for things
of value. Figure 7-1 depicts this basic model of sources
of power. Because the things valued could be physical
resources or a personal relationship, dependence power Power Flow
can be positional or personal. Richard M. Emerson noted
that power resides implicitly in the other’s dependence.9 A
leader–group member example would be that the group
member who needs considerable recognition to survive
becomes dependent on the leader, who is a regular source
of such recognition. An organizational example is that
the healthcare system in the United States has become Dependent Person
heavily dependent on information technology to help
streamline the system. Healthcare information technol-
ogy specialists therefore have more power.
Should leaders lose some of their power to control Figure 7-1 The Dependence Theory
resources, their power declines. For example, a real of Power.
Sources and Types of Power 173
Power Stemming from Managing A set of studies helps explain why some people
Critical Problems who attain power act out of self-interest, whereas oth-
ers with power act in the interest of others. The in-
The strategic contingency theory of power suggests fluential (or moderating) variable studied was moral
that units best able to cope with the firm’s critical identity—the extent to which an individual holds
problems and uncertainties acquire relatively large morality as part of their self-concept. Trait power was
amounts of power.10 The theory implies, for example, measured both through a questionnaire about power,
that when an organization faces substantial lawsuits, and subjective power was measured from study partic-
the legal department will gain power and influence ipants describing situations in which they experienced
over organizational decisions. Furthermore, the power. The study concluded that individuals with a
leader of the legal department gains power. The lead- strong moral identity were less likely to act in self-in-
ers of units directly involved with the organization’s terest when they had strong trait power or subjective
core purposes (such as product development) usually feelings of experiencing power. In contrast, individuals
have more power than those leaders of departments with a weak moral identity were more likely to act in
not directly linked to the core purpose (such as facili- self-interest under trait power or feelings of power.11 If
ties management). you are moral, you are less likely to use power for your
own good.
Power Stemming from Being To conclude our discussion of sources of power,
historian Robert A. Caro reminds us that acquiring
Close to Power
power alone does not make for great leadership.
The closer a person is to power, the greater the power It takes an ambitious person to acquire power, and
they exert. Likewise, the higher a unit reports in a firm’s sometimes the approach to acquiring power may not
hierarchy, the more power it possesses. In practice, this be highly ethical, such as hoarding vital information
means that a leader in charge of a department report- or making others dependent on you. The person who
ing to the CEO has more power than one in charge of then uses the accumulated power to create and imple-
a department reporting to a vice president. The higher ment a useful vision qualifies as an excellent leader.12
a person reports in the hierarchy, the more power that The concept of who is an excellent leader could be
person is perceived to have by others in the organiza- based on a person’s values. For example, many people
tion. For example, if a diversity and inclusion officer believe that Mark Zuckerberg, the founder of Face-
reports directly to the CEO, that office will be perceived book, is a great leader because of the impact of Face-
as powerful. Leaders in search of more power typically book on the world, and his philanthropy. Yet some
maneuver toward a higher-reporting position in the people believe that Facebook wastes so much time
organization. and facilitates communication among evil doers that
Zuckerberg should not be considered a great leader
Power and Self-Serving Behavior despite his power and influence. Zuckerberg has also
been accused of suppressing political opinion that
An obvious problem about leadership power is that it
conflicts with his own beliefs.
can be directed more toward self-serving behavior than
The accompanying box Leader in Action describes
the good of others including the organization and all
an experienced business leader who derives power
stakeholders.
from several of the sources described above.

Leader in Action
Carol Tomé, UPS CEO and Former Home Depot CFO

In 2021, Carol Tomé, the retired CFO of Home Depot, was the company’s 113-year history, and also the first outsider
named the CEO of United Parcel Service (UPS). She be- to hold the post. Tomé’s journey to UPS was not part of her
came the first woman CEO of UPS, and the twelfth CEO in career planning. She retired from Home Depot after 24 years
(continued)

with the company, and was once a contender for the CEO At UPS Tomé took on three big challenges during her first
position. She felt it was the right time to leave Home Depot, year. Job number one was helping employees attain their
and had been on the UPS board since 2003. highest potential. Job number two was increasing the stock
An executive search firm approached Tomé for the UPS price, and job number three was preparing potential succes-
position. The position was intriguing to Tomé because she sors to take her place upon retirement. In terms of improving
knew that UPS needed to unleash revenue and profits. Tomé operations, Tomé approved the use of technology to auto-
said she told the recruiter, “You know I like to make money. mate some of the processes in company facilities. Robotic
I have a pretty good track record at it. I thought I could re- labeling of packages was a prime example. In addition to
ally move the needle here and that would be fun.” Tomé was these challenges, Tomé spearheaded a move to make UPS
also enthralled about the opportunity to develop people. She more profitable. The company became more selective about
knew that UPS has 540,000 full- and part-time employees, which packages it shipped. Sales leaders were instructed to
and she wanted to help them reach their highest potential. evaluate customers less by volume than by profitability. An-
Tomé added also that she was bored being retired, and that other move toward increased profitability was to selectively
she was driving her husband crazy by being around all day. increase prices.
She thought that becoming the CEO of UPS was her calling. After the holiday season in 2020, Tomé struck her first big
Tomé brought along some of her Home Depot ideas to deal. She decided to sell off UPS Freight, a division with ap-
UPS, such as the inverted pyramid described here below. A proximately 14,500 workers and hundreds of tractor-trailer
key change she made at UPS was to post jobs internally so trucks on North American roads.
that seniority was not weighted so heavily for promotions. The Home Depot is the world’s largest home-improvement
She also elevated the importance of diversity and inclusion, retailer, and is known for its employee-centric, and
where UPS was already strong. The company relaxed its store-centric culture. A major impact of the culture is that
policy regarding facial hair and Black hairstyles to make all store associates are encouraged to be entrepreneurial and
races feel comfortable and included. A new slogan at UPS serve customers the best they can. Managers are trained
is pointedly inclusive: “You belong at UPS.” Other priorities and encourage to occupy the role of coaches rather than
of the company include preserving the planet and limiting a traditional boss. According to Tomé, the most unique part
climate change. UPS drivers log 2 billion miles per year, and of the culture is the inverted pyramid. The Home Depot ex-
it has hundreds of airplane flights every day to destinations ecutive team is placed at the bottom of the pyramid, and
around the world. In recognition of all this fuel consumption, customers are at the top. The associates who service cus-
UPS has established carbon reduction goals. tomers are placed at the second-to-top level.
Tomé began her CEO position at the height of the pan- At the end of 2000, the company tried to change the cul-
demic that created a surge in demand for package delivery. ture, and it backfired. The Home Depot founders chose to
In the second quarter of 2019, UPS had to hire 40,000 peo- bring in a former GE executive, Robert Nardelli, who they
ple just to get the packages delivered. One of the major thought would help the company grow at an accelerated
problems Tomé tackled along with her logistics specialists rate with more infrastructure and technology. He heavily
was increasing the speed of package deliveries, a phase of emphasized efficiency measures. Nardelli decided to re-
the business in which UPS lagged behind competitors. verse the pyramid around so that leadership was at the top
Another skill set Tomé developed at Home Depot that she and associates were placed at the bottom. During Nardelli’s
applied to her CEO role at UPS was finding the answer to reign, Home Depot’s market share shrunk. Frank Blake was
strategic questions by listening. At Home Depot this meant appointed CEO in 2007, and he flipped the pyramid back
listening to customers at the stores, including working as a around to where it was.
store associate and wearing an orange apron. Furthermore, One of changes Tomé favored was to sell HD Supply,
Tomé believes that the answer to everything can be found which emphasized selling in large quantities to contrac-
inside the facility, talking to associates and customers. tors and is now an industrial distributor. She felt that the
(continued)
Tactics for Becoming an Empowering Leader 175

company should get back to its core of dealing directly in the store. You need to be able to speak the language of
with end users and small contractors, such as home-re- the business, not the language of finance.”
pair specialists. During the housing crisis that began in Tomé is a native of Jackson, Wyoming, and holds a
2007, Home Depot had to close many stores, including the bachelor’s degree in communication from the University of
Expo business, a chain of high-end remodeling stores. The Wyoming, and a master’s degree in finance from the Univer-
home-improvement market had become saturated with too sity of Denver.
few households per home-improvement store. In the follow-
ing years, even as the housing market recovered, Tomé con- Questions
tinued to emphasize efficiency and profitability. Home Depot 1. What sources of power does Tomé appear to have
acquired?
slowed down on new openings, and concentrated on oper-
2. Tomé describes herself as a humanitarian leader with an
ating existing stores more efficiently. Many jobs were shed in
intense interest in developing people and fostering diver-
the interest of Home Depot becoming more profitable. sity and inclusion, yet she has also shown a willingness
Tomé emphasizes that a CFO must understand the to cut jobs and drop unprofitable customers. Explain if
business in addition to being a financial expert. She notes, you think Tomé can be humanitarian and a cost-slasher
“When I started working, I had to put on an apron and work at the same time.
Sources: Original story based on the following sources: Maria Saporta, “Carol Tomé on Becoming CEO of UPS: ‘This Was My Calling,’”
Saporta Report (https://saportareport.com), March 8, 2021, pp. 1–6; Aaron Pressman, “New UPS CEO Carol Tomé On Coming Out of
Retirement and What it Takes to handle 21.1 Million Packages a Day—During a Pandemic,” Fortune (https: //fortune.com), October 19,
2020, pp. 1–7; “Carol B. Tomé: UPS Chief Executive Officer,” UPS Stories (https://stories.ups.com), 2021, p. 1; Paul Ziobro, “This UPS
CEO Preaches The Power of No,” The Wall Street Journal, February 27–28, 2021, pp. B1, B8; Tatyana Shumsky, “Home Depot CFO to
Retire After 18-Year Tenure,” The Wall Street Journal (www.wsj.com), April 30, 2019; Sarah Nassauer, “Home Depot’s CFO On How the
Retail Giant Renovated Itself,” The Wall Street Journal, August 10-11, 2019, p. B2.
The Nature of Empowerment

Tactics for Becoming an
In its basic meaning, empowerment refers to pass-
Empowering Leader ing decision-making authority and responsibility from
Learning Objective 7.2 Articulate tactics used for managers to group members. Almost any form of par-
becoming an empowering leader. ticipative management, shared decision making, and
delegation can be regarded as empowerment. Gretchen
A leader’s power and influence increase by sharing M. Spreitzer conducted research in several work set-
power with others. Empowerment is therefore the ba- tings to develop a psychological definition of empow-
sic component of shared or distributed leadership. As erment.14 Four components were identified: meaning,
team members receive more power, they can accomplish competence, self-determination, and impact. Full-
more—they become more productive. And because man- fledged empowerment includes all four dimensions,
agers share credit for their accomplishments, they be- along with a fifth one, internal commitment.
come more powerful. A truly powerful leader empowers Meaning is the value of a work goal, evaluated in
team members to accomplish tasks on their own. Strat- relation to a person’s ideals or standards. Work has
egy theorist Gary Hamel believes that companies that meaning when there is a fit between the requirements
empower and train people at all levels to lead can create of a work role and a person’s beliefs, values, and behav-
competitive advantage. The inference is that talent from iors. A person who is doing meaningful work is likely
all levels should capitalized upon, not just the talents of to feel empowered. Competence, or self-efficacy, is an
those at the top of the organizational pyramid.13 individual’s belief in their capability to perform a par-
Here we look briefly at the nature of empowerment ticular task well. People who feel competent believe
before discussing a number of practices and two cau- that they have the capability to meet performance re-
tions about empowerment. quirements in a given situation, such as a credit analyst
saying, “I’ve been given the authority to evaluate credit 3. My leader shows me how I can improve my way of
risks up to $20,000 and I know I can do it well.” A later working.16
model of empowerment also features the key roles of
The focus of empowerment is usually on the
self-efficacy and competence in helping a fellow group
changes taking place within the individual. However,
member feel that they have gained power.15
groups can also be empowered in such a way that the
Self-determination is an individual’s sense of hav-
group climate contributes to these attitudes and feel-
ing a choice in initiating and regulating actions. A
ings. An example of a statement reflecting an empow-
high-level form of self-determination occurs when
ering climate would be “People in our organization get
workers feel that they can choose the best method to
information about the organization’s performance in a
solve a particular problem. Self-determination also
timely fashion.”17 Being part of an empowered group
involves such considerations as choosing the work
can help a member commit to achieving shared goals.
pace and work site. A highly empowered worker
might choose to perform the required work while on
a cruise rather than remain in the office. Impact is Empowering Practices
the degree to which the worker can influence strate-
The practices that foster empowerment supplement
gic, administrative, or operating outcomes on the job.
the standard approaches to participative management,
Instead of feeling there is no choice but to follow the
such as conferring with team members before reach-
company’s course, a worker might have a say in the
ing a decision. The practices, as outlined in Figure 7-2,
future of the company. A middle manager might say,
are based on direct observations of successful leaders
“Here’s an opportunity for recruiting minority group
and experimental evidence. Before reading about these
employees that we should exploit. And here’s my ac-
practices, take Leadership Self-Assessment Quiz 7-1.
tion plan for doing so.”
Another dimension of true empowerment is for the
Foster Initiative and Responsibility
group member to develop an internal commitment
toward work goals. Internal commitment takes place A leader can empower team members simply by foster-
when workers are committed to a particular project, ing greater initiative and responsibility in their assign-
person, or program for individual motives. An exam- ments. For example, a manufacturer of battery-powered
ple would be a production technician in a lawn mower construction tools might inform an information tech-
manufacturing plant who believes they are helping cre- nology enthusiast in the company, “From now on, you
ate a more beautiful world. are responsible for online sales. You have the product
A good feel for what empowering leadership means knowledge and the website smarts. I don’t. The job is
in practice can be derived from a questionnaire used your baby.”
to conduct research about such leadership. Three rep- Henry Mintzberg reminds us that many profes-
resentative items used to measure empowering leader- sional workers already have considerable initiative and
ship are as follows: responsibility. In his words: “Truly empowered work-
ers, such as doctors in a hospital, even bees in a hive,
1. My leader gives me power. do not await gifts from their managerial gods; they
2. My leader is concerned that I reach my goals, know what they are there to do, and just do it.”18
LEADERSHIP PRACTICES
1. Foster initiative and
responsibility
2. Link work activities to EFFECTIVE
organizational goals EMPOWERMENT
3. Provide ample information
4. Allow group members to • Meaning to work
choose methods • Competence
5. Encourage self-leadership • Self-efficacy
• Self-determination
6. Continue to lead
• Impact
7. Take into account cultural
• Internal commitment
differences
8. Establish limits to
empowerment
9. Practice an optimal amount
of empowerment
Figure 7-2 Effective Empowering Practices.
Tactics for Becoming an Empowering Leader 177
Empowering Attitudes and Beliefs

Instructions: To empower employees successfully, the leader has to convey appropriate attitudes and have certain beliefs.
To the best of your ability, indicate which attitudes you now have and which ones require further development.
Would Need
Empowering Attitude or Belief Have Now to Develop
1. Most workers have considerable unused talent that could be put
to good use.
2. Instead of demanding immediate results, the leader should give
group members the time to develop the needed information or
skill.
3. It is productive for the leader to ask team members questions to
help them develop a new perspective on problems.
4. Responsible workers usually know what needs to be done with-
out too much direction from the boss.
5. It is ideal to let a professional worker figure out the best method
for accomplishing a task.
6. Even if workers are empowered, a little inspiration and encour-
agement from the leader is still useful.
7. Feedback to workers is still useful even if they have considerable
responsibility for a task or project.
8. Quite frequently, workers have more knowledge of how to solve a
particular problem than does the boss.
9. I urge (or would urge) subordinates to think of problems as
opportunities rather than as a burden.
10. Good results come about when workers are encouraged to search
for solutions without supervision.
Skill Development: If, as a leader or manager, you already have most of these attitudes and have engaged in most of these
behaviors, you will be good at empowerment. Most of these attitudes and practices can be developed without transforming
your personality.
Source: Statements 9 and 10 are adapted from Robert P. Vecchio, Joseph E. Justin, and Craig L. Pearse, “Empowering Leadership:
An Examination of Mediating Mechanisms Within a Hierarchical Structure,” The Leadership Quarterly, June 2010, p. 540.
Link Work Activities to Organizational Goals travel money to accomplish her job. She is given this
Empowerment works better when the empowered ac- authority because a strategic goal of top-level manage-
tivities are aligned with the strategic goals of the orga- ment is to become a company admired for its honest
nization. Empowered workers who have responsibility business practices.
to carry out activities that support the major goals of
the organization will identify more with the company. Provide Ample Information
At the same time, they will develop a feeling of being a For empowerment to be effective, employees should
partner in the business.19 Imagine a scenario in which a have ample information about everything that affects
company auditor is authorized to spend large sums of their work. Especially important is for workers to fully
understand the impact of their actions on the compa- Continue to Lead

ny’s costs and profits. Armed with such information, Although leaders empower group members, they
employees are more likely to make decisions that have should still provide guidance, emotional support, and
a positive influence on the bottom line. And they are recognition. Mark Samuel helps companies organize
more likely to use empowerment to make decisions into teams to enhance accountability for results, yet at
that contribute to business success. For example, an the same time, he emphasizes the leader’s role: “Em-
empowered sales representative, armed with cost in- powerment often becomes an abdication of leadership.
formation, is less likely to grant discounts that lose In other words, if I empower you, I don’t have to guide
money for the company. you. People need guidance. Leadership cannot abdi-
cate the role of providing guidance.”20 Because employ-
Allow Group Members to Choose Methods ees are empowered does not mean that they should be
Under ideal conditions, the leader or manager ex- abandoned.
plains to the individual or group what needs to be
done (sets a direction) and lets the people involved Take into Account Cultural Differences
choose the method. Explaining why the tasks need to
be performed is also important. One of the roles of a All empowering practices can be influenced by
true professional is to choose the method for accom- cross-cultural factors. A group member’s cultural val-
plishing a task, such as a tax consultant deciding how ues might lead to either an easy acceptance of empow-
to prepare the taxes for a business owner. Allowing erment or reluctance to be empowered. Americans are
people to determine the most efficient work technique stereotyped as individualists. Nevertheless, they are
is the essence of empowerment. Allowing group mem- so accustomed to working in teams (sports included)
bers to choose the right method helps avoid the prob- that being part of an empowered team would seem
lem of micromanaging. This problem occurs when natural.
the manager controls too tightly the work activities of But not all cultures support empowerment. In
group members, including telling them exactly how to one study, data from employees of a single firm with
accomplish a work process. operations in the United States, Mexico, Poland, and
India were used to test the fit of empowerment and
continuous improvement practices with national
Encourage Self-Leadership culture. The company was engaged in light manu-
Encouraging team members to lead themselves facturing, and data were collected from about forty
is the heart of empowerment. The basic idea of sites. Empowerment was negatively associated with
self-leadership is that all organizational members are job satisfaction in the Indian plants but positively
capable of leading themselves at least to some extent. associated in the other three samples. The under-
Complete self-leadership would involve workers decid- lying cultural reason is that Indians (at least those
ing what should be done, why it should be done, and working in India) expect the leader or manager to
how to accomplish the task. A trigger to self-leadership make most of the decisions. 21 Continuous improve-
would be to give a handful of talented employees the ment was positively related to satisfaction in all four
general instructions, “Why not spend a few hours samples.
per week dreaming up something that can make us
money?”
Workers who lead themselves to a meaningful ex- Establish Limits to Empowerment
tent feel more empowered because they assign more One of the major situations in which empowerment
responsibility to themselves. As part of self-leadership, creates disharmony and dysfunction is when workers
workers set their own goals and find their own re- lack a clear perception of the boundaries of empower-
wards, thereby feeling more empowered. An example ment. Empowered group members may feel that they
of this type of self-leadership would be a marketing can now make decisions unilaterally, without con-
specialist at an online pharmacy taking it on herself ferring with managers, team leaders, or other team
to see what could be done about so many customers members.22 Limits to empowerment might mean ex-
dropping the service after about nine months. She plaining to employees that they have more authority
decides to embark upon an email and text-message than before, but they cannot engage in such activities
campaign to discover why the service has so many as the following:
dropouts. The process of contacting the customers ● Set their own wages and those of top management
winds up enhancing the retention rate, so the market
rep feels rewarded. She then proposes her pilot pro-
● Make downsizing decisions
gram to company leadership. ● Hire mostly friends and relatives
Effective Delegation and Empowerment 179
● Work fewer than forty hours for full pay Delegation is narrower than empowerment be-
● Voicing their discontent about the company and its cause it deals with a specific task, whereas empower-
leadership on social media ment covers a broad range of activities and a mental set
about assuming more responsibility. Also, delegation
Many employees justify dysfunctional actions by often involves more checking on subordinates than
saying, “I’m empowered to do what I want.” It is man- does empowerment. Mark Hellerstein, the former CEO
agement’s responsibility to guide employment activities of a SM Energy Company, explains how he perceived
that support the organization. the difference between delegation and empowerment:
“When you delegate you are still in control. I empow-
Practice an Optimal Amount of Empowerment ered others to take control and responsibility.”25
Empowerment, as with many approaches to leader- Delegation, like empowerment, is motivational
ship, should be practiced from a contingency per- because it gives group members a chance to develop
spective. The leader should size up the situation, their skills and demonstrate their competence. In-
and ask to what extent they should empower group stead of delegation being simply a method for the
members. A study conducted in eleven firms and six manager or leader to lighten the personal workload,
research centers investigated the optimal amount it becomes a developmental opportunity for the re-
of empowerment. The researchers found that a cer- cipient of the delegated task. When a group mem-
tain amount of empowering leadership enhances the ber takes over a task for the leader, that person has
self-efficacy and performance of group members. Be- the chance to develop an important job skill. Project
yond this optimal amount, empowerment becomes manager Charlotte might say to team member Clark,
a burdening amount that increases worker tension “How about you putting together a time-and-ac-
to the point that work performance is lowered. The tivity chart that explains when and how this proj-
problem is that too much empowerment can be ect will be completed. I will need it in two weeks.”
overwhelming.23 For Clark, this might be the first time he laid out a
Imagine a division head who empowers the in- time-and-activity chart, and he will perceive it as im-
dustrial engineering group to find a way to reduce portant skill development.
production costs by 10 percent. The industrial engi- When delegation is poor, conflict often erupts be-
neering group welcomes the challenge, and is happy tween the individual who thought to be responsible for
to choose its own methods to reduce costs within its a task and the delegator. An example is when a man-
own group. The division head then empowers the ager delegating a choice task to a subordinate and then
group to reduce total costs in the entire division by taking it back as the task becomes more important to
10 percent. An enormous empowered task of this na- the organization. Another type of poor delegation is
ture quickly becomes a burden leading to job stress delegating a task that should be the leader’s responsi-
and lowered performance. bility. Leadership coach Anne Sugar writes that the big-
gest over-delegation risk for leaders is leaving the vision
of the company to others.26
Effective Delegation and A recommended way of making delegation effec-
tive is to specify how much accountability the person
Empowerment has for the delegated assignment. Delegation often
Learning Objective 7.3 Describe how to use delegation fails because the person assigned the task does not
to support empowerment. know the amount of their responsibility. When the
person assigned the task is an issue owner, the person
A major contributor to empowerment is delegation, has complete control over the task or decision.27 Un-
the assignment of formal authority and responsibility der such conditions, delegation and empowerment are
for accomplishing a specific task to another person. equivalent.
Without delegation, effective leadership and manage- The simultaneous challenge and importance of
ment cannot take place. Delegation becomes more im- delegation was summed up by Chan-She, CEO of the
portant as more tasks need to be done, and those tasks security firm Safe Partners, located in New York City:
are complex. To lead is to inspire and persuade others “It can be nerve-wracking to give my staffers the auton-
to accomplish tasks, not to accomplish everything by omy to make decisions I formerly made, but I realized
working alone. The importance of delegation for lead- that I can’t effectively grow my business if I don’t.”28
ers is pinpointed by magazine editor for leadership You are invited to gain some practice in the realities
John Addison in these words: “Delegation empowers of empowerment by doing Leadership Skill-Building
your team while creating space for you to focus on the Exercise 7-1. Keep in mind the importance of delega-
large, important decisions.”24 tion when doing the exercise.
Conducting an Empowerment Session

If you are already a manager, the description of empowering empower your workers to do as much as they can to satisfy
practices has given you some useful ideas about empower- callers’ demands. You want your staff to take more personal
ing others. The role-playing exercise described here gives responsibility for customer problems.
you a chance to practice your empowering skills. One per- Debt-Collection Specialists
son plays the role of a leader, and six other people play the
You are the manager of a regional office of a large debt-col-
role of group members. You are meeting with your group to-
lection service. Most of your clients are business firms
day to get them started on the road toward empowerment.
owed money by other firms. Your office is 25 percent be-
You will need to engage in dialogue with the group to begin
low target for debt collection so far this fiscal year, with five
the process. The following scenarios should be staffed by
months remaining. The standard methods of debt collection
different groups of students:
prescribed by the company do not appear to be effective
Information Technology Customer enough. You meet with your staff today to empower them to
Service Center go beyond the standard methods of debt collection, such as
You are in charge of an information technology call center a series of letters, email messages, and phone calls.
whose primary activity is to respond to telephone inquiries Doing this exercise is useful because it helps you de-
from around the country from customers who are having velop the right mental set for a leader who empowers group
problems using the company’s software. The workers who members. Another advantage is that it sensitizes you to the
answer the phone are full-time professionals, many of whom importance of looking for signs of hesitation and ambiva-
are recent college graduates. A major goal of yours is to lence when you attempt to empower group members.
individual, group, or organizational objectives.”29 Lead-

Factors That Contribute ers need political skill for such purposes as building
to Organizational Politics alliances and gaining resources for their constituents.
Nevertheless, many writers still regard organizational
Learning Objective 7.4 Pinpoint factors contributing to politics as emphasizing self-interest at the expense of
organizational politics. others, engaging in mysterious activities, or kissing up.
People want power for many different reasons, in-
As used here, the term organizational politics re-
cluding having more prestige and income, which is why
fers to informal approaches to gaining power through
political behavior is so widespread in organizations. By
means other than merit or luck. Politics are played
definition, politics is used to acquire power. A number
to achieve power, either directly or indirectly. For ex-
of individual and organizational factors contribute to
ample, a person seeking to enhance legitimate power
political behavior, as described next.
might use a variety of tactics to be favorably perceived
by top-level decision makers in the company. Power
may be achieved in such diverse ways as by being pro-
Pyramid-Shaped Organization Structure
moted, by receiving a larger budget or other resources,
by obtaining more resources for one’s work group, or The very shape of large organizations is the most funda-
by being exempt from undesirable assignments. mental reason why organizational members are moti-
The meaning of organizational politics continues vated toward political behavior. A pyramid concentrates
to shift in a positive, constructive direction. Politics power at the top. Only so much power is therefore avail-
are often used to advance the purposes of the leader’s able to distribute among the many people who would
group such as obtaining valuable resources. A team of like more of it. Each successive layer on the organiza-
scholars have proposed the concept of leader political tion chart wields less power than the layer above. At the
support that points to the contribution of political be- very bottom of the organization, workers have limited
havior. Leader political support refers to “political power except for their legal rights. Also, an entry-level
acts and influence behaviors performed by leaders to professional worker with a valuable skill in a tight labor
provide followers with valuable resources to advance market, such as a data scientist, has some usable power.
Political Tactics and Strategies 181
Because most organizations today have fewer layers political philosopher and statesman. His most famous
than they previously had, the competition for power has work, The Prince, describes how a leader may acquire
become more intense. Although empowerment may be and maintain power. Machiavelli’s ideal prince was
motivational for many workers, it is unlikely to satisfy an amoral, manipulating tyrant who would restore
the quest to hold a formal position of power. Despite the the Italian city-state of Florence to its former glory.
remote work movement, workers still struggle to obtain Machiavelli has been described as charming, wicked,
a corner office, a corner cubicle, or to sit closer to the and disturbing,30 which are also characteristics of the
boss in an open space arrangement. most extreme office politicians. Three hundred and
sixty years later, a study by Gerald Biberman showed
a positive relationship between Machiavellianism and
Subjective Standards of Performance political behavior, based on questionnaires that mea-
People often resort to organizational politics because sured these two tendencies.31
they do not believe that the organization has an ob-
jective and fair way of judging their performance and
Encouraging Admiration from Subordinates
suitability for promotion. Similarly, when managers
have no objective way of differentiating effective people Most organizational leaders say they do not encourage
from less effective, they will resort to favoritism. The kissing up and that they prefer honest feedback from
adage “It’s not what you know but who you know” ap- subordinates. Yet, without meaning to, these same
plies to organizations that lack clear-cut standards of managers and leaders encourage flattery and servile
performance. praise. Managers, as well as other workers, send out
subtle signals that they want to be praised, such as
smiling after receiving a compliment and frowning
Environmental Uncertainty and Turbulence when receiving negative feedback. Also, admirers are
When people operate in an unstable and unpredictable more likely to receive good assignments and high-per-
environment, they tend to behave politically. They rely formance evaluations. Executive coach Marshall
on organizational politics to create a favorable impres- Goldsmith explains that, without meaning to, many
sion because uncertainty makes it difficult to deter- managers create an environment where people learn to
mine what they should really be accomplishing. reward others with accolades that are not completely
The uncertainty, turbulence, and insecurity created warranted. People generally see this tendency in others
by corporate downsizings, or rightsizings, are a major but not in themselves.32
contributor to office politics. Many people believe in- Communication technology, including social media,
tuitively that favoritism plays a major role in deciding facilitates the admiration of superiors. A subordinate
who will survive the downsizing. In response to this who might feel uncomfortable complimenting a supe-
perception, organizational members attempt to ingra- rior in person or by phone can easily post a compliment
tiate themselves with influential people. online. For example, a status update on Facebook or a
tweet might state: “Just received some dynamite feed-
back from Shana. She pointed me in right direction.”
Emotional Insecurity
Some people resort to political maneuvers to ingratiate
themselves with superiors because they lack confidence
in their own talents and skills. A pension fund manager Political Tactics and Strategies
who has directed the firm toward investments with an
annualized 8 percent return does not have to be overly
Learning Objective 7.5 Enumerate both ethical and
political because that manager will have confidence in
unethical political behaviors.
being capable. A person’s choice of political strategy
may indicate emotional insecurity. For instance, an in- A survey of 250 managers in the UK revealed that
secure person might laugh loudly at every humorous 90 percent of them believed skill in organizational pol-
comment the boss makes. itics is required to succeed and to improve one’s pros-
pect for a successful career.33 To make effective use of
organizational politics, leaders must be aware of spe-
Machiavellian Tendencies
cific political tactics and strategies. To identify and
Some people engage in political behavior because they explain the majority of political tactics would require
want to manipulate others, sometimes for their own years of study and observation. Leaders so frequently
personal advantage. The term Machiavellianism traces need support for their programs that they search for in-
back to Niccolo Machiavelli (1469–1527), an Italian novative types of political behaviors. Furthermore, new
tactics continue to emerge as the workplace becomes All of these political approaches help the leader gain
increasingly competitive. or retain power. Using them can also help the leader
The impact of political tactics and strategies by lead- succeed in and manage stressful work environments.
ers on the behaviors of subordinates and colleagues de- As defined by a group of researchers, political skill
pends to a large extent on perceptions of politics. When is a constructive force. It is an interpersonal style that
employees perceive that the environment is heavily po- manifests itself in being socially astute and engaging in
litical, particularly in the form of self-interest, they may behaviors that lead to feelings of confidence, trust, and
be prompted to stand out from other workers rather sincerity.35 For example, a middle manager with politi-
than be good team players. For example, the employ- cal skill might be able to defend their group against an
ees might display more organizational citizenship be- angry CEO looking for a scapegoat. Despite the state-
havior. Employees might believe that by demonstrating ments just made, political skill can be used for unethi-
an interest in helping other workers, they will be more cal purposes, as described in the following section.
valued.34 Later in the chapter, we will describe how ex- Leadership Self-Assessment Quiz 7-2 gives you an
cessive political behavior can have dysfunctional conse- opportunity to measure your tendencies toward engag-
quences to the organization, such as job stress. ing in positive political tactics and strategies.
Strategies Aimed at Gaining Power

Ethical Political Tactics and Strategies
All political tactics are aimed at acquiring and main-
So far we have discussed organizational politics with- taining power, even the power to avoid a difficult assign-
out pinpointing specific tactics and strategies. This sec- ment. Tom Peters said years ago that although power
tion describes a sampling of ethical political behaviors, can often be abused, it can also be used to benefit many
divided into three related groups: tactics and strategies people. “And as a career building tool, the slow and
aimed at (1) gaining power, (2) building relationships steady (and subtle) amassing of power is the surest road
with superiors and coworkers, and (3) avoiding politi- to success.”36 Here are nine techniques aimed directly at
cal blunders. gaining power.
The Positive Organizational Politics Questionnaire

Instructions: Answer each question “mostly agree” or “mostly disagree,” even if it is difficult for you to decide which alterna-
tive best describes your opinion.

1. Pleasing my boss is a major goal of mine.
2. I go out of my way to flatter important people.
3. I am most likely to do favors for people who can help me in
return.
4. I intend to, or already have, cultivated friendships with pow-
erful people.
5. I will compliment a coworker even if I have to think hard
about what might be praiseworthy.
6. If I thought my boss needed the help, and I had the expertise,
I would show them how to use an electronic gadget for per-
sonal life.
7. I laugh heartily at my boss’s humor, so long as I think it is at
least a little funny.
(continued)
Quiz5-3
7-2 (continued)

8. I would not be too concerned about following a company
dress code, so long as I looked neat.
9. If a customer sent me a compliment through email, I would
forward a copy to my boss and another influential person.
10. I smile only at people in the workplace whom I genuinely like.
11. An effective way to impress people is to tell them what they

want to hear.
12. I would never publicly correct mistakes made by the boss.
13. I would be willing to use my personal contacts to gain a pro-

motion or desirable transfer.
14. I think it is a good idea to send a congratulatory note to some-
one in the company who receives a promotion to an executive
position.
15. I think office politics is only for people who cannot succeed
based on their talents.
16. I have already started to develop a network of useful contacts.
17. I am quite willing to make negative comments about my com-

pany on social media websites if the comments are deserved.
18. I don’t care if there are silly photos of me posted on the Inter-
net because private life is separate from one’s career.
19. I have posted positive comments about my boss on the
Internet.
20. I have posted positive comments about my employer on the
Internet.
Scoring and interpretation: Give yourself a plus 1 for each answer that matches the answer key. Each question that receives a
score of plus 1 shows a tendency toward playing positive organizational politics. The scoring key is as follows:
1. Mostly agree 8. Mostly disagree 15. Mostly disagree

2. Mostly agree 9. Mostly agree 16. Mostly agree
3. Mostly agree 10. Mostly disagree 17. Mostly disagree
4. Mostly agree 11. Mostly agree 18. Mostly disagree
7. Mostly agree 14. Mostly agree
● 1–9: Below-average tendency to play office politics
● 10–14: Average tendency to play office politics
● 15 and above: Above-average tendency to play office politics; strong need for power
Skill Development: Thinking about your political tendencies in the workplace is important for your career because most suc-
cessful leaders are moderately political. The ability to use politics effectively and ethically increases with importance in the
executive suite. Most top players are effective office politicians. Yet being overly and blatantly political can lead to distrust,
thereby damaging your career.
1. Develop power contacts. Cultivating friendly, co- Mapping the informal social network in an organi-
operative relationships with powerful organiza- zation can be complex and time-consuming yet here
tional members and outsiders can make the leader’s are sample questions you need to answer:
cause much easier to advance. Developing power ● Who is in regular contact with whom?
contacts is a focused type of social networking.
These contacts can benefit a person by supporting
● Who appears to have ties to the most powerful play-
their ideas in meetings and other public forums. ers in the organization?
One way to develop these contacts is to be more so- ● Who appear to be among the most popular people
cial, for example, by throwing parties and inviting in the organization?
powerful people and their guests. Some organiza-
A key aspect of networking is to find some way of
tions and some bosses frown on social familiarity,
reciprocating when a network member provides you a
however. Another consideration is that power hold-
useful contact or helps you in some other way. Leader-
ers receive many invitations, so they might not be
ship Skill-Building Exercise 7-2 provides some insight
available.
into reciprocity when networking.
Considerable networking for the development of power
2. Have a compelling vision. Jeffrey Pfeffer, a noted
contacts takes place through social networking websites
professor of organizational behavior at Stanford
geared toward professionals, such as LinkedIn, and spe-
University, writes that a compelling vision helps
cialty sites such as those geared toward specific industry
the leader exercise power. A compelling vision
groups, such as sales and marketing, and information
in this context is a socially valuable objective. A
technology. Business writer Denise Campbell notes
leader within a school system will often recom-
that the social media websites have become to business
mend a particular initiative, such as establishing
professionals and entrepreneurs what golf is to C-suite
rewards for good teachers, because it is in the best
occupants—an opportunity to strategically network and
interests of the children. In a business organiza-
execute business transactions. Also, social media can
tion, a leader might propose an initiative, such as
level the playing field by allowing more people access
acquiring another company, because it serves the
without restrictions on time, location, or social status.37
interests of shareholders.39
In order to develop power contacts, it is often nec-
essary to understand the informal network, or who is 3. Control vital information. Power accrues to
in contact with influential people in the organization.38 those who control vital information. Many former
To develop useful contacts across the organization, it is government or military officials have found power
helpful to ask lots of questions, and to show respect for niches for themselves in industry after leaving the
coworkers’ roles and accomplishments. It is also help- public payroll. Frequently, such an individual will
ful to look to help with projects where the individual be hired as the Washington representative of a
has the expertise to make a contribution. firm that does business with the government. They
Paying Back Favors from Network Members

Most readers are aware that effective networkers find some Facebook members. Aim for at least a dozen suggestions.
way to pay back those people in their network who have After first compiling the suggestions, refine the list for du-
done them favors. For example, if a store owner refers you plication and precision. Perhaps reduce your list to the
to a contact that leads to a job interview you might refer a six most effective suggestions. If feasible, a team leader
customer to that store. However, finding useful ways to re- from each group presents the suggestions to the rest of
ciprocate favors by network members is not so easy. Your the class.
assignment is to brainstorm in groups to develop alternative Class members might then discuss answers to these
solutions to the problem, “How can we reciprocate when a questions: (1) Which several suggestions were the most
network member does us a favor?” frequently offered across the groups? (2) Which sugges-
The network members can be those developed offline tions do I think are good enough to use now or in the
as well as those you have developed virtually, such as future?
control the vital information of knowing whom to would be to say that “we need a ladder in our
contact in order to sidestep some of the roadblocks department because we have workers of differ-
to getting government contracts approved. ent heights who need access to the top shelves.”
It would be politically incorrect to say, “We need
Although the reflex answer for obtaining infor-
ladders because we have some short workers who
mation is now “Google it,” personal contacts are still
cannot reach the top shelves.”
important for nonrecorded information. To facilitate
controlling vital information, it is politically important 7. Be the first to accept reasonable changes. A nat-
to stay informed. Successful leaders develop a pipeline ural inclination for most people is to resist change,
to help them keep abreast, or even ahead, of develop- so the person who steps forward first to accept rea-
ments within the firm. For this reason, a politically as- sonable changes will acquire some political capi-
tute individual befriends the president’s top aide. No tal. The team member who welcomes the changes
other source offers the potential for obtaining as much exerts a positive influence on group members who
information as the executive administrative assistant. may be dragging their heels about the change. An
example might be that the company is attempting
4. Do what the political environment demands. A to shift to an online system of performance evalu-
high-level political strategy is to do whatever the po- ation, thereby eliminating paper filing. It is politi-
litical environment demands to attain your goals. In cally wise to be an early adopter of the new system.
this way, you gain the support of decision makers.
8. Inquire about improving your performance. A
At Amazon.com, the focus of top-level management
useful tactic for developing a positive relationship
including Jeff Bezos is the highest possible customer
with your manager is to ask about ways to im-
satisfaction. A politically astute manager or profes-
prove your performance. Instead of implying that
sional looking to get in good graces with people in
you want to become one of the in-group members,
power would therefore frequently mention ways of
simply state that you are looking to make a stron-
taking customer satisfaction to an even higher level.
ger contribution to the group. Two recommended
5. Remember that everyone expects to be paid questions are, “How am I doing?” and “What
back. According to the Law of Reciprocity, every- would you like to see from me?”42
body in the world expects to be paid back.40 If you do
9. Develop positive psychological capital. A compre-
not find some way to reimburse people for the good
hensive strategy for both gaining power and building
deeds they have done for you, your supply of people
relationships is to develop positive psychological
to perform good deeds will run short. Because many
capital. The term refers to an individual’s positive
of these good deeds bring you power, such as by sup-
psychological state of development, characterized
porting your initiative, your power base will soon
by four psychological resources: self-efficacy, hope,
erode. As a way of paying back the person who sup-
optimism, and resilience. (Self-efficacy refers to con-
ported your initiative, you might mention publicly
fidence to take on and invest the necessary effort to
how the person in question provided you with expert
succeed at challenging tasks.) Although a complex
advice on the technical aspects of your proposal.
aspect of behavior, positive psychological capital can
6. Be politically correct. Political correctness in- be developed over time, particularly if the individual
volves being careful not to offend or slight any- focuses on one of the four resources at a time. A per-
one, and being extra civil and respectful. 41 In son with considerable positive psychological capital
recent years the emphasis on political correct- tends to be powerful.
ness has approached being a social movement,
with an untold number of people concerned A study conducted with 79 police leaders and 264
that almost any statement about another person sergeants indicated that leaders’ psychological capital
might be offensive. Some people even hesitate was positively related to the job performance of their
using the pronouns “he” or “she” out of fear of team members. Performance was measured in terms
offending those who do not divide people into of a straightforward scale developed for the study, with
two genders, or think in binary terms about sex- one of the items being, “How would you judge the over-
ual/gender status. For example, a middle man- all competence of this individual?”43 The link to power
ager who had lunch with the transgender woman in this study is that strong job performance by subordi-
VP of engineering might say, “I had a great lunch nates accrues power to the leader.
with the “VP of engineering,” or “Clark,” just to
avoid using a politically incorrect pronoun. The Strategies and Tactics Aimed at
politically correct person therefore avoids creat- Building Relationships
ing some enemies who might erode the person’s You would probably not be studying leadership if you
power. An effective use of political correctness did not think building relationships was a key part of
success in the workplace. A reality of organizational life Julie Kantor, an executive coach, says that some
is that to get promoted, it is necessary to build relation- managers explain how they prefer to communi-
ships.44 To reinforce this point, here is what Stephen cate. Others prefer that you provide the manager
I. Sadove, the former chairman and chief executive of with multiple choices, such as the following: “How
Saks, Inc., and now a private equity investor, said were often do you want updates: daily, weekly, or only
his biggest leadership lessons: when I have something big to report? Do you pre-
fer phone, text messages, email, or face-to-face?”46
I used opportunities to get involved and develop
relationships with a diverse set of people, as opposed 3. Manage your impression. Impression manage-
to the narrow group of people I was dealing with ment includes behaviors directed at enhancing
day-to-day, and that made a huge difference. It one’s image by drawing attention to oneself. Often
shaped my philosophy in terms of the importance the attention of others is directed toward superfi-
of relationship building. It really underlies my entire cial aspects of the self, such as clothing and groom-
philosophy of how to run a business.45 ing. Yet, impression management also deals with
deeper aspects of behavior, such as speaking well
The fact that more work is being conducted re- and presenting one’s ideas coherently. Bad speech
motely does not mean that relationship building is no habits are recognized as a deterrent to advance-
longer as important. For example, during a Zoom con- ment in organizations.47 Impression management
ference you can be as polite, courteous, and respectful also makes a contribution because it makes you
as you can in-person. And making a positive impres- more visible to others, meaning that your presence
sion on senior management can be accomplished both in the organization is noticed.
in-person and digitally by demonstrating that you are a
strategic thinker. Another part of impression management is telling peo-
The lion or lioness’s share of organizational politics ple about your success or implying that you are an in-
involves building positive relationships with network sider. Email is used extensively today to send messages
members who can be helpful now or later (as implied to others for the purpose of impressing them with one’s
above). This network includes superiors, subordinates, good deeds. Displaying good business etiquette has re-
other lower-ranking people, coworkers, external cus- ceived renewed attention as a key part of impression
tomers, and suppliers. Following are several represen- management, with companies sending staff members to
tative strategies and tactics: etiquette classes to learn how to create favorable impres-
sions on key people. Etiquette training for professionals
1. Display loyalty. A loyal worker is valued because and managers is in high demand because so many peo-
organizations prosper more with loyal than with ple have neglected to learn about etiquette earlier in life,
disloyal employees. Blind loyalty—the belief that and civility in the workplace has declined. Many man-
the organization cannot make a mistake—is not agement scholars take a dim view of impression man-
called for because most rational organizations agement, yet the topic has been carefully researched.48
welcome constructive criticism. A clear form of
loyalty to the organization is longevity. Although 4. Ask satisfied customers to contact your boss.
job-hopping is more acceptable today than in the A favorable comment by a customer receives con-
past, tenure with the company is still an asset for siderable weight because customer satisfaction is
promotion. Tenure tends to contribute more to eli- a top corporate priority. If a customer says some-
gibility for promotion in a traditional industry, such thing nice, the comment will carry more weight
as food processing, than in high-technology firms. than one from a coworker or subordinate. The
reason is that coworkers and subordinates might
2. Adapt to your boss’s communication style. A
praise a person for political reasons. Customers’
fundamental way of building a good relationship
motivation is assumed to be pure because they
with your boss is to adapt to that person’s com-
have little concern about pleasing suppliers.
munication style, with many alternatives possi-
ble. One set of choices relates to the preferred 5. Be courteous, pleasant, civil, and positive. Cour-
communication mode for the manager including teous, pleasant, civil, and positive people are the
face-to-face conversation, emails, text messages, or first to be hired and the last to be fired (assuming
a company platform such as Slack or Drop Box. they also have other important qualifications). Po-
Another communication difference is whether the lite behavior provides an advantage because many
boss prefers a conceptual look at a situation or an people believe that civility has become a rare quality.
explanation filled with details. Time of day can Civility refers to behavior that includes politeness
be another factor, with some leaders preferring and regard for others in the workplace. You may
to receive messages later in the morning or in the recall Julie Sweet, who was described as a transfor-
afternoon. mational leader in Chapter 3. She won an internal
competition at Accenture PLC for a variety of rea- 760 directors found that ingratiatory behavior
sons, one of which being that she excels at praising toward the chief executive plays a bigger role in
colleagues she competed against for the CEO posi- receiving a board appointment than does hav-
tion.49 A study conducted in a biotechnology firm ing attended an elite school or having elite social
found that workers who perceived a coworker as connections. James D. Westphal and Ithai Stern
civil would be more likely to seek that person out concluded that the most efficient way to get more
for advice and to see that person as a leader.50 board appointments is to engage in ingratiating
6. Ask advice. Asking advice on work-related topics behavior (a form of politics). The type of political
builds relationships with other employees. Ask- behavior focused on flattery. Providing advice and
ing another person for advice—someone whose information to CEOs frequently was advantageous.
job does not require giving it—will usually be per- Furthermore, not monitoring the strategic deci-
ceived as a compliment. Asking advice transmits sions of board members too closely was also effec-
a message of trust in the other person’s judgment. tive in receiving nominations to other boards.51
Leadership Skill-Building Exercise 7-3 gives you 9. Reach out to your boss’s boss. Developing a
the opportunity to practice asking advice in a sen- working relationship with the manager of your
sible way. immediate manager helps increase your power
7. Send thank-you notes to large numbers of peo- base at the same time. Your boss’s boss is a key
ple. One of the most basic political tactics, sending person in your network because they can have
thank-you notes profusely, is simply an application considerable influence over your career. Sev-
of sound human relations. Many successful people eral approaches for developing a good relation-
take the time to send handwritten notes to employ- ship with your manager’s manager, follow. First,
ees and customers to help create a bond with those connect with that individual on a personal level.
people. Handwritten notes have gained in currency Look for a common interest, such as both being a
because they are a refreshing change from elec- booster of Para Olympics. Second, if you receive a
tronic communication. Digital forms of communi- compliment for your good work from somewhere
cation are still useful in sending thank-you notes else in the organization or from a customer, pass
even is less powerful than handwritten notes. that information along to your boss. The latter is
likely to pass that information along to their boss.
8. Flatter others sensibly. Flattery in the form of
Third, volunteer for a cross-functional committee.
sincere praise can be an effective relationship
Your boss’s boss is likely to quickly learn about this
builder. By being judicious in your praise, you can
meritorious activity.52
lower the defenses of work associates and make
Getting noticed by senior leadership is quite
them more receptive to your ideas. A survey of
similar to getting noticed by your boss’s boss,
Asking Advice Role Play

One student plays the role of a team leader who wants to The potential contribution of this exercise is that it may
build constructive relationships with coworkers and superi- help raise your awareness of the opportunity to engage
ors by asking advice. At the same time, the student does in constructive political behavior. Recognizing opportuni-
not want to generate the impression of being someone who ties to gain political advantage can be helpful to a leader’s
needs considerable help in solving problems. The student career.
therefore must think of a topic for asking advice that shows The importance of praising others through flattery
a legitimate interest in the other person’s opinion, yet not shows up in the leadership principles espoused by Dale
appear clueless. It might therefore require a few minutes to Carnegie in his advice to be lavish in your praise about any
think of an advice-asking topic. Another student plays the improvement. Decades of research indicate that reinforcing
role of the advice-giver who might enjoy giving the advice, the behavior you want can lead to behavioral change. In
or be annoyed at being bothered. The rest of the class mem- the situation under discussion, the behavioral change the
bers will observe and provide some feedback on the effec- political actor wants is to be more valued by the object of
tiveness of the advice-asking techniques. the praise.
particularly if that person is part of senior leader- Negative email messages about the company can be
ship. A key tactic to achieve being noticed by se- political suicide also. An example would be a profes-
nior leadership is to focus on the team’s success, sional at a pharmaceutical company posting a state-
in contrast to your own. Senior leadership will rec- ment that the company was being unethical in way
ognize that the greatest opportunity for success is over-pricing a new drug for lowering blood pressure.
linked to a team working well together. Having the 2. Bypassing the boss. Protocol is still highly valued
reputation of a strategic thinker is highly valued by in a hierarchical organization. Going around the
higher ups, so a person should demonstrate strate- boss to resolve a problem is therefore hazardous.
gic thinking when in their presence or when send- You might be able to accomplish the bypass, but
ing documents. An example would be references to your career could be damaged and recourses lim-
the future of the organization. Showing an inter- ited. Except in cases of outrageous misconduct
est in the company’s values also creates a positive such as blatant sexual harassment or criminal mis-
impression. For example, a corporate professional conduct, your boss’s boss will probably side with
working at a company that manufactures ergo- your boss. It was advised earlier to develop a good
nomically designed furniture, might talk about relationship with your boss’s boss. This technique
taking pleasure in helping office workers relieve must be used with sensitivity to avoid the appear-
pain and suffering. Volunteering to be a member ance of a boss bypass.
of a corporate-wide project is another way of get-
3. Declining an offer from top management. Turn-
ting noticed by senior leadership.53
ing down top management, especially more than
An example of the research evidence about the once, is a political blunder. You thus have to bal-
contribution of political skill to relationship building ance sensibly managing your time against the
comes from a study with 179 employees conducted in blunder of refusing a request from top manage-
a retail service organization. Employees who scored ment. Today, an increasing number of managers
higher on a test of political skill tended to overcome a and corporate professionals decline opportunities
challenging aspect of leader–member exchanges. Prior for promotion when the new job requires geo-
research had suggested that superiors and subordinates graphic relocation. For these people, family and
who were of the same race typically had better quality lifestyle preferences are more important than gain-
leader–member exchanges (or quality of the relation- ing political advantage on the job.
ship). Correspondingly, racial dissimilarity was asso- 4. Putting your foot in your mouth (being need-
ciated with a poorer quality leader–member exchange. lessly tactless). To avoid hurting your career, it is
The results of the study under consideration indicated important to avoid—or at least minimize—being
that subordinates with good political skill were able to blatantly tactless toward influential people. An ex-
develop better relationships with superiors who were ample would be telling the CEO to delegate speech
of a different race.54 making to another person because they are such a
poor speaker. When you feel you are on the verge of
Strategies Aimed at Avoiding Political Blunders being critical, delay your response, and perhaps re-
A strategy for retaining power is to refrain from mak- word it for later delivery. Use your emotional intel-
ing power-eroding blunders. Committing these po- ligence! If you are needlessly tactless, compensate
litically insensitive acts can also prevent one from the best you can by offering a full apology later.
attaining power. A pattern of committing political
Putting your foot in your mouth can also take the
blunders could reflect low emotional intelligence, and
form of making a public statement that many people
even worse, self-defeating behavior. A serious blunder
interpret to have a negative meaning or to reflect cal-
can be a swift path to derailing a person’s career.55 Take
lousness. The Deepwater Horizon oil rig explosion in
Leadership Self-Assessment Quiz 7-3 to examine your
2010 spewed hundreds of millions of gallons of oil into
tendencies toward making blunders. Several leading
the Gulf of Mexico and killed eleven workers. BP chief
blunders are described next.
executive at the time, Tony Hayward, made a series
1. Criticizing the boss in a public forum. The oldest of public appearances explaining the company’s re-
saw in human relations is to “praise in public and covery efforts. During one appearance, Hayward said
criticize in private.” Yet in the passion of the mo- he wanted his “life back,” which angered many peo-
ment, we may still surrender to an irresistible imple because they thought he had not suffered much in
pulse to criticize the boss publicly. Also, hundreds comparison to the many victims of the disaster. This
of people have lost their jobs because they make gaffe contributed to his inability to elicit much empa-
a vindictive statement about their boss on a social thy from the U.S. public, and he was dismissed shortly
media website, particularly Facebook or Twitter. thereafter.56
The Blunder Quiz

Directions: Indicate whether you agree or disagree with the following statements.
Agree Disagree
1. It is acceptable to criticize your manager in a meeting as long as

the criticism is valid.
2. If your boss criticizes you, an effective way of getting revenge is to
post a tweet making fun of them.
3. If my boss showed me a photo of their dog, and I thought the dog
was ugly, I would say so.
4. If I worked for Microsoft, I would still use whatever search engine
I thought was best instead of using Microsoft Bing (the Microsoft
search engine) while at the office.
5. If I thought my company’s product or service was not worth the
price, I would openly express my opinion on the job.
6. If I objected to a decision made by top management, I would send
a company-wide email, or make an intranet post, explaining my
objection.
7. I am willing to insult any coworker if the insult is deserved.
8. If I am at a meeting, and the content becomes boring, I will take

out my smartphone and check email or surf the Web.
9. If I thought that my company’s stock was a poor investment, I
would freely share my opinion with work associates.
10. During a national election, I would place campaign banners for my
favorite candidates outside my cubicle or office, or on my desk in
an open work area.
11. I see no problem in using competitors’ products or services and
letting my superiors know about it.
12. If I thought the CEO of my company were way overpaid, I would
send them an email making my opinion known.
13. During a company picnic, I would go on at length about my opin-
ion on the effectiveness of a major political figure.
14. I openly criticize most new ventures my company or department is
contemplating, pointing out that most new ventures fail.
15. I avoid any deliberate attempt to please or impress coworkers or
superiors.
Total: “Agree” ____ “Disagree” ____

Scoring and Interpretation: The greater the number of statements you agree with, the more prone you are to political blunders
that can damage your career. You need to raise your awareness level of workplace blunders.
5. Not conforming to the company dress code. higher ups might be to apologize and then ask to take
Although some degree of independence and free on a community task on behalf of the company without
thinking is welcome in many organizations, vio- pay as a form of retribution. An illustrative community
lating the dress code can block you from acquir- task would be delivering gifts to children hospitalized
ing more power. Conforming to the dress code for a serious illness.
suggests that you are part of the team and you
understand what is expected. Dress codes can be
violated by dressing too informally or formally, Unethical Political Tactics and Strategies
and by wearing clothing that symbolizes a political Any technique of gaining power can be devious if prac-
position.57 ticed in the extreme. A person who displays loyalty to a
6. Being revengeful and hostile during an exit boss by feeding them insider information that could af-
interview. After a person resigns a position, fect the price of company stock is being devious. Some
many companies conduct an exit interview in approaches are unequivocally unethical, such as those
which departing employees are asked to discuss described next. In the long run, they erode a leader’s
the reason for quitting. Under the best of cir- effectiveness by lowering credibility. Devious tactics
cumstances, the employee who quits would offer might even result in lawsuits against the leader, the or-
constructive suggestions that would improve the ganization, or both.
working conditions and work climate for pres-
ent and future employees. This would enhance a Backstabbing
person’s reputation and perhaps lead to a more The ubiquitous backstab requires that you pretend to
positive employment reference in the future. The be nice but all the while planning someone’s demise. A
exiting employee is invited to be frank, but frank- frequent form of backstabbing is to initiate a conver-
ness to the point of getting revenge by saying hos- sation with a rival about the weaknesses of a common
tile things about the company and the manager is boss, encouraging negative commentary and making
a career-retarding error. Often the employee will careful mental notes of what the person says. When
receive a negative, or at best neutral, employment these comments are passed along to the boss, the ri-
reference. val appears disloyal and foolish. Email is a widely used
7. Indiscreet behavior in private life. Employees medium for the backstab. The sender of the message
are representatives of the company, so their be- documents a mistake made by another individual and
havior off the job is considered to contribute to includes key people on the distribution list. A sample
their performance—particularly in the case of message sent by one manager to a rival began as fol-
managers. Embarrassing the company will often lows, “Hi, Ted. I’m sorry you couldn’t make our import-
lead to dismissal, combined with a negative rep- ant meeting. I guess you had some other important
utation that will be difficult to shake for purposes priorities. But we need your input on the following ma-
of future employment. Indiscreet behavior in pri- jor agenda item we tackled.…”
vate life that can lead to dismissal includes being
caught for shoplifting, a citation for driving under Embrace or Demolish
the influence of alcohol, being arrested for drug of-
The ancient strategy of “embrace or demolish” sug-
fense, charges of using the services of a prostitute,
gests that you remove from the premises rivals who
and assault and battery against another person.
suffered past hurts through your efforts; otherwise,
Although sports and entertainment celebrities are
the wounded rivals might retaliate at a vulnerable
well known for such indiscreet behavior, business
moment. This kind of strategy is common after a hos-
and government officials have engaged in similar
tile takeover; many executives lose their jobs because
behavior.
they opposed the takeover. A variation of embrace or
A useful skill of organizational politics is to be able demolish is to terminate managers from the acquired
to recover from blunders considering that such mis- organization who oppose adapting to the culture of the
steps can lead to embarrassment or even career retar- new firm. For example, a free-wheeling manager who
dation. Considering that the other side is most likely to opposes the bureaucratic culture of the acquiring firm
be offended, it is best to appease that person. Appeasing might be terminated as “not able to identify with our
might work because the primary intent of the blunderer mission.”
is to attain forgiveness, rather than gain advantage. As-
sume that a person has been indiscreet in private life in Setting a Person Up for Failure
the form of having spent one night in jail for drunken The object of a setup is to place a person in a posi-
and disorderly conduct. An appeasement approach to tion either to fail outright or to look ineffective. For
example, an executive whom the CEO dislikes might be technology manager to inform top management that
given responsibility for a troubled division whose mar- the system he inherited is antiquated and approaching
ket is rapidly collapsing. The newly assigned division the point of severely damaging the company’s opera-
president cannot stop the decline and is then fired for tions. One week later, he claims to have miraculously
poor performance. overhauled the information system, such as by order-
ing new equipment, making big shifts to cloud comput-
ing, and hiring a few key personnel.
Playing Territorial Games
Also referred to as turf wars, territorial games in-
volve protecting and hoarding resources that give one Abusing Power
power, such as information, relationships, and deci- Abusing power might be conceptualized as an uneth-
sion-making authority. Territorial behavior, according ical political tactic because the abuse often relates
to Annette Simmons, is based on a hidden force that to behavior outside of formal responsibility. (Formal
limits peoples’ desire to give full cooperation. People ways of abusing power might be for a CEO to close
are biologically programmed to be greedy for what- a plant overseen by a manager the CEO disliked, or
ever they think it takes to survive in the corporate to use company funds to build an exorbitantly luxuri-
environment. ous personal office.) Political abuse of power includes
The purpose of territorial games is to vie for the such acts as shouting and swearing at subordinates,
three kinds of territory in the modern corporate sur- sexually harassing them, and humiliating them in
vival game: information, relationships, or authority. meetings. Several surveys have suggested that most
A relationship is hoarded through such tactics as rude and inappropriate behaviors, such as the shout-
discouraging others from visiting a key customer or ing of profanities, stem from those people with the
blocking a high performer from getting a promotion most formal authority.60 Executive abuse of power of
or transfer.58 For example, the manager might tell oth- the nature just described is a special case of abusive
ers that his star performer is mediocre to prevent the supervision.
person from being considered for a valuable trans-
fer possibility. Other examples of territorial games
Stealing Credit for Ideas
include monopolizing time with clients, scheduling
meetings so someone cannot attend, and shutting For many workers, the most detestable form of office
out coworkers from joining you on an important politics is for their boss, or other worker, to take credit
assignment. for their ideas without acknowledging the source of
the idea. The credit stealing breeds distrust, damages
motivation, and is sometimes misperceived as a perk
Creating and Then Resolving a False Catastrophe of power. A good starting point in stopping idea thieves
An advanced devious tactic for a manager is to pretend is to hold a one-on-one session with the thief, and con-
a catastrophe exists and then proceed to “rescue” others front the issue. If the issue is not resolved, tell key deci-
from the catastrophe, thereby appearing to be a super- sion makers about the idea theft.61
hero.59 The political player rushes in and declares that Leadership Skill-Building Exercise 7-4 gives you an
everything is a mess and the situation is almost hope- opportunity to think through which aspects of orga-
less; shortly thereafter, they resolve the problem. An nizational politics you find offensive, whether they be
example would be for a newly appointed information positive or negative techniques.
Identifying the Most Annoying Political Behavior Tactics

Contact three people, including yourself, to identify the two look to identify which one or two annoying tactics are the
most annoying tactics of political behavior you or they have most frequent, such as “Being nice to superiors and cus-
observed in the workplace. Perhaps class members can tomers, but nasty to subordinates.” Next, reach a conclu-
share their findings on a common platform, even a group sion as to how a successful leader might be able to curb a
email or shared website. After the data have been collected, couple of these annoying political tactics.
politics within a work group. If group members believe

Exercising Control over that getting the boss to like them is much less important
Dysfunctional Politics than good job performance in obtaining rewards, they
will kiss up to the boss less frequently. In an attempt to
Learning Objective 7.6 Characterize how a leader can minimize favoritism, managers must reward workers
control dysfunctional politics. who impress them through task-related activities.
Setting good examples at the top of the organization
Carried to excess, organizational politics can hurt an or-
can help reduce the frequency and intensity of organi-
ganization and its members. Too much politicking can
zational politics. When leaders are nonpolitical in their
result in wasted time and effort, thereby lowering produc-
actions, they demonstrate in subtle ways that politi-
tivity. A group of researchers conducted a meta-analysis
cal behavior is not welcome. It may be helpful for the
of available studies of the relationship between the per-
leader to announce during a staff meeting that devious
ception of organizational politics and certain important
political behavior is undesirable and unprofessional.
outcomes. The perception of political behavior refers to
Another way of reducing the extent of political be-
the recognition that organizational politics is present, as
havior is for individuals and the organization to share
in “I can’t take all the politics around here.” The major
the same goals, a situation described as goal congru-
outcomes related to the perception of politics were as fol-
ence. If political behavior will interfere with the com-
lows: (1) more strain, or adverse effects of stress, (2) more
pany and individuals achieving their goals, workers
intentions to quit, (3) less job satisfaction, (4) less emo-
with goal congruence are less likely to play office poli-
tional commitment to the employer, (5) lower task perfor-
tics excessively. A project leader is less likely to falsely
mance, and (6) less organizational citizenship behavior.62
declare that the boss’s idea is good just to please the
In short, when a high degree of political behavior
boss if the project leader wants the company to succeed.
is perceived to exist, it can damage individuals and the
Politics can sometimes be constrained by a threat
organization. To avoid these negative consequences,
to discuss questionable information in a public forum.
leaders are advised to combat political behavior when
People who practice devious politics usually want to
it is excessive and dysfunctional.
operate secretly and privately. They are willing to drop
In a comprehensive strategy to control politics, orga-
hints and innuendoes and make direct derogatory com-
nizational leaders must be aware of its causes and tech-
ments about someone else, provided they will not be
niques. For example, during a downsizing, the CEO can
identified as the source. An effective way of stopping
be on the alert for instances of backstabbing and trans-
the discrediting of others is to offer to discuss the topic
parent attempts to please. Open communication also can
publicly.63 The person attempting to pass on the ques-
constrain the impact of political behavior. Such commu-
tionable information will usually back down and make
nication can let everyone know the basis for allocating
a statement closer to the truth.
resources, thus reducing the amount of politicking. If
Hiring people with integrity will help reduce the
people know in advance how resources are allocated, the
number of dysfunctional political players. References
effectiveness of attempting to curry favor with the boss
should be checked carefully with respect to the candi-
will be reduced. When communication is open, it also
date’s integrity and honesty.64 Say to the reference, “Tell
makes it more difficult for some people to control infor-
me about ———’s approach to playing politics.”
mation and pass along gossip as a political weapon.
Leadership Skill-Building Exercise 7-5 provides an
Avoiding favoritism and cronyism—avoiding giving
opportunity to practice the subtle art of discouraging
the best rewards to the group members you like the
excessive political behavior on the job.
best or to old friends—is a potent way of minimizing
Controlling a Too Eager Direct Report

One student plays the role of a project leader who is con- updates on the direct report’s progress as a contributor to
cerned that a direct report is trying too hard to win the the project. The project leader drops by the direct report’s
leader’s favor. Among the direct report’s actions geared cubicle to politely discuss what is perceived as going too far
toward winning the leader’s support are laughing loudly at to please. Another student plays the role of the direct report
the leader’s humorous comments, frequently forwarding ar- who feels exposed and embarrassed but still wants to cre-
ticles about the leader’s favorite sports team, purchasing a ate a positive impression on the project leader.
cute coffee mug for the leader, and sending almost weekly
Exercising Control over Dysfunctional Politics 193
Reader’s Roadmap
So far in this book, we have examined the nature of leaders, their ethics, and how they acquire power. The next chap-
ter explains influence tactics, or ways of converting power into action.
Summary
Organizational power is derived from many sources, constructive direction. Contributing factors to or-
including position power (legitimate, reward, and ganizational politics include the pyramidal shape
coercive) and personal power (expert, reference, of organizations, subjective performance standards,
and prestige). Power also stems from ownership, environmental uncertainty, emotional insecurity,
dependencies, capitalizing on opportunity, man- Machiavellian tendencies, and encouraging admira-
aging critical problems, and being close to power. tion from subordinates.
A problem with leadership power is that it can be To make effective use of organizational politics,
self-serving. People with a strong moral identity are leaders must be aware of specific political tactics
less likely to use power for self-interest. and strategies. Ethical methods can be divided into
Full-fledged empowerment includes the dimen- those aimed directly at gaining power, those aimed
sions of meaning, self-determination, competence, at building relationships, and those aimed at avoid-
impact, and internal commitment. Actions that can ing political blunders. Unethical and devious tac-
be taken to become an empowering leader include tics, such as the embrace or demolish strategy, and
the following: foster initiative and responsibility, stealing credit for ideas, constitute another category
link work activities to the goals of the organization, of political behavior.
provide ample information, allow group members Carried to extremes, organizational politics can
to choose methods, encourage self-leadership, and hurt an organization and its members. Being aware
continue to lead. Also, take into account cultural of the causes and types of political behavior can
differences in how empowerment is accepted, es- help leaders deal with the problem. Setting good
tablish limits to empowerment, and practice an examples of nonpolitical behavior is helpful, as is
optimal amount of empowerment. Delegation is an- achieving goal congruence and threatening to pub-
other important part of empowerment. licly expose devious politicking. It is also good to
To acquire and retain power, a leader must hire people who have integrity. Emphasizing that
skillfully use organizational politics. The mean- success can mean a lateral move as well as a promo-
ing of politics continues to shift in a positive, tion might work.
Key Terms
power 170 dependence perspective 172 delegation 179
legitimate power 171 strategic contingency organizational politics 180
reward power 171 theory 173 leader political support 180
coercive power 171 moral identity 173 political skill 182
personal power 171 empowerment 175 positive psychological capital 185
prestige power 172 self-leadership 178 territorial games 191
Developing political skill is well worth the effort contrast, having so little power that you cannot con-
for almost anyone who wants to attain career suc- trol your job and environment creates stress, lead-
cess and personal satisfaction. A meta-analysis ing to poorer physical and mental health, and quite
of 120 scientific articles found that the follow- often a shorter life.66 Finding ways to increase your
ing outcomes were associated with political skill power is therefore a vital life skill.
(as measured by a questionnaire): career success, So much has been said and written about the
self-efficacy, job satisfaction, organizational com- importance of building your in-person and virtual
mitment, work productivity, organizational citizen- network that it seems as if the more contacts you
ship behavior, and personal reputation. Political have the better. It is usually better to have a smaller
skill was found to be negatively related to psycho- network of useful, high-quality contacts. British an-
logical strain (the byproduct of stress).65 thropologist Robin Dunbar claims the average hu-
A striking advantage of gaining power is that man can maintain only 150 close social connections.
it helps you control your environment, which, in With information technology, that number can be
turn, leads to less stress and better physical and stretched a bit, but mental capacity and available
mental health—and therefore prolongs your life. In time set limits to the size of a useful network.67
Discussion Questions and Activities 6. Many business leaders say something to the ef-
1. How might a person in a technology company (such fect of, “We practice empowerment because we
as a distributor of cybercurrency) have a lot of power don’t expect our employees to leave their brains
even if that person does not hold an executive title? at the door.” What are these leaders talking
2. Many business leaders today give up having a pri- about?
vate office, and instead work at a desk or cubicle 7. Many people have asked the question “Isn’t office
in the middle of the work area to be among other politics just for incompetents?” What is your an-
employees. What effect do you think this work area swer to this question?
placement has on their power? 8. How might emotional intelligence be related to
3. Contrary to popular opinion, CEOs of major U.S. committing political blunders?
companies come from a wide variety of private 9. A regular occurrence in business firms, and some
universities and state universities, not just a hand- government agencies, is for somebody to be fired
ful of well-publicized MBA programs. What does because of a Facebook or Twitter post criticizing the
this fact tell you about sources of power and orga- employer or a specific manager. Why do you think
nizational politics? so many people commit this career-threatening
4. What can you do this week to enhance your power? (and often career-ending) error?
5. In this age of so many people working remotely 10. Ask an experienced worker to give you an exam-
much of the time, how important is it still to wear ple of the successful application of organizational
clothing and accessories designed to give a person politics. Which tactic was used, and what was the
a “power look”? outcome?
The Lands’ End Fashionista Fades durable and basic-fashion clothing, in Febru-
from Glory ary 2015. She had previously been the president
Federica Marchionni was appointed as CEO of the high-fashion company Dolce & Gabanna
of Lands’ End, the catalog retailer that feature USA and was a senior vice president of Ferrari
before that. Her hiring was a heavy departure Lands’ End customer. In a new catalog, she tried
for the Wisconsin maker of practical clothing. to illustrate the idea of Lands’ End being an
Lands’ End was trying to enhance its brand and American icon by interviewing another American
appeal to the fashion-conscious consumer. The icon, Gloria Steinem, who was known for her
company had been acquired by Sears in 2002 be- strong liberal views, including a pro-abortion-
fore becoming an independent company again rights agenda. A swift negative reaction surfaced
twelve years later. to the interview from many of the company’s
After nineteen months on the job, Marchionni conservative customers. Many customers and
was forced out as chief executive. During her brief Catholic schools, a large number of which had
tenure, she tried to bring about major changes at purchased school uniforms from Lands’ End,
Lands’ End that angered employees and turned said they would boycott the company because of
away shoppers. Marchionni pushed to inject high Steinem’s active pro-choice position. (The inter-
style into the maker of outdoor-type and casual view in the catalog did not mention abortion.)
clothes by adding slimmer fits, stiletto heels, and Not all opinions of Marchionni’s performance
a fresh line of active wear. She revamped the cat- were negative. Steven Marotta, a retailing analyst,
alog, hired celebrity photographers, and paid for applauded her efforts and described her as “an
input from a Vogue stylist. effective brand manager and operator.” He also
The focus on high fashion did not appear to noted that Marchionni’s progress was stymied by
be a good fit for Lands’ End. The company had the worst consumer-goods market in eight years.
found a niche in high-waist jeans and practical Marchionni also believed that she made a
outerwear and specialized in cold-weather cloth- positive contribution to Lands’ End, saying: “I
ing. With sales declining during a difficult period am honored to have led this extraordinary com-
for most retailers, the board at Lands’ End had to pany and proud to have succeeded in providing a
try something different. But featuring many slim- vision to expand its position in the industry with
fit styles and SoHo pop-up stores seemed des- a multi-dimensional strategy. However, the board
tined to displease the brand’s core demographic of directors and I have agreed it is time for others
group. Marchionni had reduced catalog expendi- to bring Lands’ End into the future.”
tures to invest in the pop-up stores. A couple of years after her departure from
Company insiders said that Marchionni spent Lands” End, Marchionni became the CEO of
only about one week per month at the company Chinese luxury e-tailer Secoo. Soon thereafter
headquarters in Dodgeville, Wisconsin. She she was appointed as the CEO of Global Fash-
spent the rest of her working days at an office ion Agenda. The goal of Global Fashion is to
in the garment district of New York City. When accelerate the industry’s transition toward more
Marchionni was hired, the board wrote into her sustainable models. Upon joining the organiza-
contract that she could remain in New York. tion, Marchionni said, “Joining Global Fashion
As losses were increasing, the company board Agenda is an incredible opportunity to help ac-
thought that Marchionni was trying to make too celerate the sustainability agenda in the fashion
many changes too quickly. One of the changes industry globally.”
she proposed was to make Lands’ End less de-
pendent on weather by focusing on clothing that Questions
can be worn year-round. The company had been 1. To what extent did Federica Marchionni bring
deriving a big chunk of its revenue from coats the right expertise to her position as CEO of
and bathing suits. Lands’ End?
Marchionni made one mistake that cast 2. Identify at least one mistake in organizational
doubt on her ability to empathize with the typical politics made by Marchionni.
3. Based on your knowledge of Lands’ End September 27, 2016, p. B1: Jennifer Reingold, “Why
merchandise, how good of a fit do you think Lands’ End Ousted Its Change Agent,” Fortune (www
Marchionni’s vision was for the company? .fortune.com), October 6, 2016, 1–8; Phil Wahba,
4. W h a t c a r e e r a d v i c e w o u l d y o u o ff e r “Lands’ End CEO Marchionni Out after Failing to Take
Marchionni about her frequent job changes? Brand Upscale,” Fortune (www.fortune.com), Septem-
ber 26, 2016, pp. 1–3; John Grgurich, “Why Lands’
Sources: Original story based on facts and observations
End Fashionista CEO Failed,” The Fiscal Times (www
in the following sources: Krystina Gustafson, “Lands’
.thefiscaltimes.com), September 29, 2016, pp. 1–3; Olivier
End High-Fashion CEO Is Out,” CNBC (www.cnbsc
Guyot, “Former Secoo Boss Federica Marchionni Be-
.com), September 26, 2016, pp. 1–2; Suzanne Kapner
comes CEO of Global Fashion Agenda,” Fashion Network
and Joann S. Lublin, “Lands’ End CEO Is Pushed
(https://usfashionetwork.com), April 8, 2021, pp. 1–2.
Out after 19 Months,” The Wall Street Journal,

One person plays the role of a recruiter for an exec- possibilities of her being a candidate for the CEO posi-
utive search firm (“headhunter”), who is looking to tion. The recruiter’s main concern is that Marchionni
fill a CEO position for a well-known women’s fashion is a job hopper. Another student plays the role of
company. The recruiter recognizes that Marchionni Marchionni, intrigued by the possibilities of the new
is a strong candidate because of her experience, cha- CEO position. However, she has to deal with the re-
risma, and stylish appearance. The recruiter has in- cruiter’s concern that she is a high-level job hopper.
vited Marchionni for a Zoom interview to discuss the Run this high-stakes interview for about ten minutes.
Team Leader Tanya Wants to Be Truthful marketing analyst and assistant to the depart-
Tanya is the team leader of a cross-functional ment head. Tanya is also proud of how she is
product-development group in a consumer prod- candid in her interactions with members of the
ucts company. The group meets from time to product-development team.
time to discuss new ideas for products. Another Two weeks ago, the team was meeting to dis-
of its key activities is to help develop a prod- cuss the merits of introducing a multifruit fla-
uct after agreement is reached by higher-level vored energy drink to the market. The CEO was
management that a product idea is worth pur- attending this particular meeting to get a direct
suing. Tanya enjoys her role as the leader of a feel for how the product-development team op-
cross-functional team, and she hopes to use the erates. Ten minutes into the meeting Tanya said,
experience as a springboard to a marketing exec- “We have to carefully evaluate whether an energy
utive position. drink has any chances of success. As we all know,
Tanya prides herself in being candid and di- our company has had far too many flops. I re-
rect in her interactions with coworkers in mar- member we once introduced an instant-spaghetti
keting department in which she works as a senior product to the market that was a total bomb. I
think we lost $10 million on that idea, and we Tanya welcomed Obdu to the meeting, and then
were ridiculed by food critics.” In response to asked, “Obdu are you sure you are a U.S. citizen?
Tanya’s comment, the CEO shook his head from We can’t afford to have any foreign spies at our
side to side but made no spoken response. meeting.”
One week ago, Tanya posted the following Later today, Tanya received a text message
comment on Facebook, Twitter, and Instagram: from her immediate manager Gus that read: “We
“Name of company is getting ravaged by house must talk in person. You are out of control.”
brands. But not to worry, we make a lot of those
house brands for large supermarket chains Questions
and big box discounters.” The vice president of 1. In what ways might Tanya be committing po-
marketing, asked a staff member to investigate litical blunders?
whether Tanya was really the person responsible 2. If Tanya is committing political blunders, to
for this post, and to report back to her with the what extent might they hinder her chances of
answer. becoming a vice president of marketing?
At a product-development meeting today, a 3. How should Tanya’s boss deal with her with
food-packaging scientist named Obdu Wobe- respect to the type of political blunders she
gun attended because there would be some key has committed?
issues about package design likely to surface.

One student plays the role of Tanya’s boss, Gus, who candor and truthfulness. Gus wants to explain to
wants to have a frank discussion with Tanya with Tanya that her insensitivity could block her career
respect to the type of political blunders it has been and might even adversely affect her performance
rumored that she is committing. Tanya perceives evaluation. Run the role play for about eight minutes,
herself to have the positive leadership qualities of and have observers provide feedback.
For this insert into your leadership portfolio, think through studies, my job, and social life, yet I decided to invest
all the recent opportunities you might have had to use po- the time and attend. As it worked out, the meeting
litical tactics. How did you deal with the situation? Did was a wonderful opportunity to make a couple of
you capitalize on any opportunities? Did you use an eth- good contacts. After the talk, I spoke to the speaker
ical approach? Did you use any unethical tactics? Did and complimented her. We had a brief conversation
you commit any political blunders? Here would be an about how I was looking for a career in investment
example: banking, and she gave me her business card. I sent
I saw a flyer indicating that our Business Management her an email message the next day, thanking her for
Association was having a guest speaker, an execu- the time she gave me. I also met a couple of import-
tive from Merrill Lynch. I had been pretty busy with ant people at the meeting and got their cards also.
Notes
1. Original story based on facts and observations in 10. C. R. Hinings, D. J. Hickson, C. A. Lee, R. E.
the following sources: Bob Evans, “Marc Benioff: Schenck, and J. W. Pennings, “Strategic Contingen-
The Extraordinary Ascendancy of a Global Leader,” cies Theory of Intraorganizational Power,” Admin-
Cloud wars (https://cloudwars.com), April 10, 2020, istrative Science Quarterly, 1971, pp. 216–229.
pp. 1–4; “Top Leadership Advices of Salesforce 11. Katherine A. DeCelles, D. Scott DeRue, Joshua
CEO and Founder,” Womlead Magazine (www D. Margolis, and Tara L. Ceranic, “Does Power
.womleadmag.com), October 27, 2020, pp. 1–4; Corrupt or Enable? When and Why Power Facili-
Karen Gilchrist, “Salesforce CEO Marc Benioff De- tates Self-Interested Behavior,” Journal of Applied
veloped this Mindset to Help Him Lead through Psychology, May 2012, pp. 681–689.
Crisis,” Make It (www.cnbc.com), October 18, 2020, 12. “Lessons in Power: Lyndon Johnson Revealed:
pp. 1–3; Alex Konrad, “Nonstop Benioff,” Forbes, A Conversation with Historian Robert A. Caro,”
September 13, 2016, pp. 84, 88–98; Ray Bennett, Harvard Business Review, April 2006, pp. 47–52.
“How Salesforce CEO Marc Benioff Is Changing 13. “Leaders Everywhere: A Conversation with Gary
the World: 10 Facts You Didn’t Know,” Better World Hamel,” McKinsey & Company (www.mckinsey
International (www.betterworldinternational.org), .com), May 2013, p. 1.
July 29, 2016, pp. 1–5; Rachel King, “Salesforce’s 14. Gretchen M. Spreitzer, “Psychological Empower-
Ambitions Face Test,” The Wall Street Journal, De- ment in the Workplace: Dimensions, Measurement,
cember 10, 2016, p. B3. and Validation,” Academy of Management Journal,
2. Jeffrey Pfeffer, “You’re Still the Same: Why Theo- October 1995, pp. 1442–1465.
ries of Power Hold over Time and Across Contexts,” 15. Lauren Bennett Cattaneo and Aliya R. Chapman,
The Academy of Management Perspective, Novem- “The Process of Empowerment: A Model for Use
ber 2013, pp. 269–280. in Research and Practice,” American Psychologist,
3. Jeremy Helmans and Henry Timms, “Under- October 2010, pp. 646–659.
standing ‘New Power’,” Harvard Business Review, 16. Stein Amundsen and Øyvind L. Martinsen,
December 2014, p. 50. “Empowering Leadership: Construct Clarification,
4. John R. French and Bertram Raven, “The Basis of Conceptualization, and Validation of a New Scale,”
Social Power,” in Dorwin Cartwright, ed., Studies The Leadership Quarterly, June 2014, p. 493.
in Social Power (Ann Arbor, MI: Institute for Social 17. Scott E. Seibert, Seth R. Silver, and W. Alan Ran-
Research, 1969); Timothy R. Hinkin and Chester dolph, “Taking Empowerment to the Next Level:
A. Schriescheim, “Power and Influence: The View A Multiple-Level Model of Empowerment, Perfor-
from Below,” Personnel, May 1988, pp. 47–50. mance, and Satisfaction,” Academy of Management
5. Mengqi Sun. “More Companies Split Leadership Journal, June 2004, pp. 332–349.
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6. Bryant Urstadt, “The Sociopath Network,” 19. Barbara Ettorre, “The Empowerment Gap: Hype
Bloomberg Businessweek, July 28–July 31, 2011, vs. Reality,” HR Focus, July 1997, p. 5.
pp. 82–83. 20. Cited in Dimitry Elias Léger, “Tell Me Your Prob-
7. Max Nisen, “How Doug McMillon Went from Un- lem, and I’ll Tell You Mine,” Fortune, October 6,
loading Trucks at Wal-Mart to Its Next CEO,” (http:// 2000, p. 408.
finance.yahoo.com), November 27, 2013, pp. 1–3; 21. Christopher Robert et al., “Empowerment and Con-
Brian Sozzi, “Why Doug McMillon Is the First- tinuous Improvement in the United States, Mexico,
Ever Walmart CEO to Star in a TV Commercial,” Poland, and India: Predicting Fit on the Basis of
The Street (www.thestreet.com), August 23, 2016, the Dimensions of Power Distance and Individual-
pp. 1–2; Ben Cole, “CEO Profile: Doug McMillon, ism,” Journal of Applied Psychology, October 2000,
Wal-Mart,” Business Chief (https: businesschief pp. 751–765.
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8. Sydney Finkelstein, “Power in Top Manage- Management Review, January 1999, p. 52.
ment Teams: Dimensions, Measurement, and 23. Minyoung Cheong, Seth M. Spaid, Francis J. Yam-
Validation,” Academy of Management Journal, marino, and Seokhwa, “Two Faces of Empowering
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9. Richard M. Emerson, “Power-Dependence Rela- ship Quarterly, August 2016, pp. 602–616.
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p. 32. tion,” Success, February 2018, p. 88.
Notes 199
25. “Mark Hellerstein, “Learn to Empower Others,” 41. Robin J. Ely, Debra Meyerson, and Martin N.
Executive Leadership, April 2013, p. 3. Davidson, “Rethinking Political Correctness,” Har-
26. Anne Sugar, “How to Tell if You’re Delegating Too vard Business Review, September 2006, p. 80.
Much—and What to Do About It,” Harvard Busi- 42. Rebecca Knight, “What to Do When Your Boss Has
ness Review (https://hbr.org), September 4, 2018, a Favorite (and It’s Not You),” Harvard Business
p. 4. Review (hbr.org), June 16, 2016, p. 4.
27. Bob Frisch and Cary Greene, “To Hold Some- 43. The definition of psychological capital and the
one Accountable, First Define What Accountable research findings are from Fred O. Walumbwa,
Means,” Harvard Business Review (https://hbr.org), Suzanne J. Peterson, Bruce J. Avolio, and Chad A.
June 28, 2016, pp. 1–4. Hartnell, “An Investigation of the Relationships
28. Quoted in Joyce M. Rosenberg, “Delegating Tasks among Leader and Follower Psychological Capital,
Not So Easy, Business Owners Say,” Associated Service Climate, and Job Performance,” Personnel
Press, September 16, 2018, p. 1. Psychology, Winter 2010, pp. 937–963.
29. B. Parker Ellen III, Gerald R. Ferris, and M. Ron- 44. Amii Barnard-Bahn, “Promotions Aren’t Just About
ald Buckley, “Leader Political Support: Reconsid- Your Skills—They’re About Your Relationships,”
ering Leader Political Behavior,” The Leadership Harvard Business Review (https://hbr.org), pp. 1–5.
Quarterly, December 2013, p. 845. 45. Cited in Adam Bryant, “For the Chief of Saks, It’s
30. David Polansky, “Counsel to Tyrants,” The Wall Culture That Drives Results,” The New York Times
Street Journal, November 12, 2013. Comment con- (www.nytimes.com), May 28, 2010.
tained in book review of Joseph Markulin, Machia- 46. Sue Shellenbarger, “The Right and Wrong Ways
velli (Amherst, NY: Prometheus, 2013). to Manage Up,” The Wall Street Journal, April 11,
31. Gerald Biberman, “Personality Characteristics 2018, p. A9.
and Work Attitudes of Persons with High, Moder- 47. Joann S. Lublin, “To Win Advancement, You Need
ate, and Low Political Tendencies,” Psychological to Clean Up Any Bad Speech Habits,” The Wall
Reports, Vol. 57, 1985, p. 1309. Street Journal, October 3, 2004, p. B1.
32. Marshall Goldsmith, “All of Us Are Stuck on Suck- 48. Much of the scholarly impression manage-
Ups,” Fast Company, December 2003, p. 117. ment research is reviewed in Andrew J. DuBrin,
33. Research cited in Michelle King, David Denyer, Impression Management in the Workplace: Research,
and Emma Parry, “Is Office Politics a White Man’s Theory, and Practice (New York and London: Rout-
Game?” Harvard Business Review (https://hbr.org), ledge, 2011).
September 19, 2018, p. 2. 49. Joann S. Lublin, “To Get Ahead, Rivals Get Along,”
34. Michele Kacmar, Daniel G. Bachrach, Kenneth J. The Wall Street Journal, September 19, 2019, p. B6.
Harris, and Sizanne Zivnuska, “Fostering Good 50. Christine L. Porath, Alexandra Gerbasi, and Sebas-
Citizenship Through Ethical Leadership: Exploring tian L. Schorch, “The Effects of Civility and Advice,
the Moderating Role of Gender and Organizational Leadership, and Performance,” Journal of Applied
Politics,” Journal of Applied Psychology, May 2011, Psychology, September 2015, pp. 1527–1541.
p. 635. 51. James D. Westphal and Ithai Stern, “Flattery Will
35. Pamela L. Perrewé et al., “Political Skill: An Anti- Get You Everywhere (Especially If You Are a Male
dote for Workplace Stressors,” Academy of Manage- Caucasian): How Ingratiation, Boardroom Be-
ment Executive, August 2000, p. 115. havior, and Demographic Minority Status Affect
36. Tom Peters, “Power,” Success, November 1994, Additional Board Appointments at U.S. Compa-
p. 34. nies,” Academy of Management Journal, April 2007,
37. Denise Campbell Laidler, “What’s Your Social Media pp. 267–288.
Strategy?” Black Enterprise, November 2010, p. 75. 52. Rebecca Knight, “To Boost Your Career, Get to
38. “Dealing with Office Politics: Navigating the Mine- Know Your Boss’s Boss,” Harvard Business Review
field,” Mind Tools, p. 2. Retrieved October 24, 2016, (https://hbr.org), September 15, 2016, p. 1.
from https://www.mindtools.com/pages/article 53. Melissa Raffoni, “How to Bet Noticed by your
/newCDV_85.htm; Sue Shellenbarger, “Gaining Boss’s Boss,” Harvard Business Review (https://hbr
Power at Work When Yu Have None,” The Wall .org), October 14, 2019, pp. 1–7.
Street Journal, March 7, 2018, p. A15. 54. Robyn L. Brouer, Allison Duke, Darren C. Tread-
39. Jeffrey Pfeffer, “Power Play,” Harvard Business way, and Gerald R. Ferris, “The Moderating
Review, July–August 2010, p. 92. Effect of Political Skill on the Demographic
40. Michael Warshaw, “The Good Guy’s (and Gal’s) Dissimilarity—Leader–Member Exchange Qual-
Guide to Office Politics,” Fast Company, April 1998, ity Relationship,” The Leadership Quarterly, April
p. 160. 2009, pp. 61–69.
55. Andrew J. DuBrin, “Political Blunders within Orga- April 2003, p. 3; Jared Sandberg, “Some Bosses
nizations,” in Eran Vigoda-Gadot and Amos Drory, Never Meet a Success That Isn’t Theirs,” The Wall
eds., Handbook of Organizational Politics: Looking Street Journal, April 23, 2003, p. B1.
Back and Into the Future, Second Edition (Chelten- 62. Chu-Hsiang Chang, Christopher C. Rosen, and Paul
ham, UK: Edward Elgar, 2016), pp. 172–192. E. Levy, “The Relationship between Perceptions of
56. Paul Sonne, “Hayward Fell Short of Modern CEO Organizational Politics and Employee Attitudes,
Demands,” The Wall Street Journal, July 26, 2010, Strain, and Behavior: A Meta-Analytic Examina-
p. A7. tion,” Academy of Management Journal, August
57. Tracy Minor, “Office Politics: Master the Game by 2009, pp. 779–801.
Making Connections,” Monster: Diversity & Inclu- 63. Robert P. Vecchio, Organizational Behavior, Fourth
sion (monster.com), October 30, 2002. Edition (Fort Worth, TX: The Dryden Press, 2000),
58. Annette Simmons, Territorial Games: Understanding p. 136.
& Ending Turf Wars at Work (New York: AMACOM, 64. “Throw Politics Out of Your Office,” Manager’s
1998); Robert J. Herbold, The Fiefdom Syndrome Edge, July 2001, p. 8.
(New York: Currency Doubleday, 2004). 65. Timothy P. Munyon, James K. Summers, Katrina
59. Jared Sandberg, “Office Superheroes: Saving the M. Thompson, and Gerald R. Ferris, “Political
Rest of Us from Unseen Dangers,” The Wall Street Skill and Work Outcomes: A Theoretical Exten-
Journal, December 10, 2003, p. B1. sion, Meta-Analytic Investigation, and Agenda for
60. Jonah Lehr, “The Power Trip,” The Wall Street Jour- the Future,” Personnel Psychology, no. 1, 2015,
nal, August 14–15, 2010, p. W1; Anne Kreamer, “Go pp. 143–184.
Ahead—Cry at Work,” Time, April 4, 2011, p. 52. 66. Research synthesized in Pfeffer, “Power Play,”
61. Sue Shellenbarger, “When Your Boss Steals Your p. 90.
Ideas,” The Wall Street Journal, November 28, 2018, 67. Research cited in Drake Bennett, “The Dunbar
p. A11; “Stopping Idea Thieves: Strike back When Number,” Bloomberg Businessweek, January 14–
Rivals Steal Credit,” Executive Leadership Extra! January 20, 2013, pp. 52–56.
8
Chapter
Influence Tactics of Leaders
Learning Objectives
After studying this chapter and doing the exercises, you 8.4 Pinpoint a set of dishonest and unethical influence tactics.
should be able to 8.5 Articulate how leaders use influence to bring about
8.1 Characterize the relationship between power and organizational change.
influence. 8.6 Enumerate how influence tactics should be sequenced.
8.2 Identify a set of honest and ethical influence tactics. 8.7 Clarify how implicit leadership theories are related to a
8.3 Identify a set of influence tactics relatively neutral with leader’s ability to influence group members.
respect to ethics and honesty.
Chapter Outline
A Model of Power and Influence Implicit Leadership Theories and Leadership Influence
Description and Explanation of Influence Tactics Summary
Essentially Ethical and Honest Tactics Key Terms
Essentially Neutral Influence Tactics Guidelines for Actions and Skill Development
Essentially Dishonest and Unethical Tactics Leadership Case Problem A
Leadership Influence for Organizational Change Leadership Case Problem B
Sequencing of Influence Tactics Notes
I
n 2019 Deborah Wahl, previously the chief marketing offi- Mary Barra occupying the pioneering role as the first female
cer (CMO) at the Cadillac Division of General Motors and CEO of a major automaker helped attract Wahl to a leadership
also of McDonald’s USA, was chosen as the global CMO position at GM. As Wahl started her position, she said she was
of General Motors. Wahl had joined General Motors as CMO starting to focus on getting rid of all the extra noise within mar-
in March 2018. At the time she said, “Cadillac is an iconic keting, and focus more on business results.
American luxury brand, and I am honored to join this team and When Wahl and her colleagues were working remotely
build on the incredible momentum that will restore Cadillac to its during the quarantine, Wahl placed added emphasis on bringing
place as the leader of luxury brands.” about collaboration. A key accomplishment was to align on the
GM CEO Mary Barra said that Wahl would be responsi- four vehicle brands. She explained, “Never have we worked so
ble for aligning marketing across all GM brands, “while ensur- closely together to get the right thing out, hit the right tone, and
ing more effective, efficient, and agile customer engagement.” find the most valuable thing for the customer.”
201
202 Chapter 8 Influence Tactics of Leaders
At a Forbes CMO summit a few years ago, Wahl attributed Dealing with declining sales and a decreasing preference
Cadillac’s transformation to an increased focus on female cus- for fast food in 2014, top management at McDonald’s USA
tomers. Marketing for the Cadillac XT4 targets female buyers. decided that a new marketing leader might be the recipe for
Shortly after the improved sales, Wahl and her team faced ma- success. Wahl, who had twenty-five years of marketing ex-
jor challenges. A national strike of 48,000 United Automobile perience in the automobile and home building industries, was
Workers took six weeks to resolve. By the time the marketing chosen for the new chief marketing officer position for the
team had an opportunity to roll out their first poststrike cam- company. She was responsible for developing and executing
paign, the COVID-19 pandemic struck the country in March. “It marketing strategies for the company’s 15,000 restaurants at
has been the wildest ride of my career.” the time. One of her initiatives was the all-day breakfast at
During her first twelve weeks of working during the quar- McDonald’s.
antine, Wahl provided direction and oversight to a variety of Wahl worked with independent franchise owners as well as
activities. Among these were GM’s quick pivot to producing ven- advertising agencies to boost sales. Her specific duties included
tilators for COVID-19 patients, discontinuing GM’s ride-sharing leading, developing, and overseeing the execution of fully inte-
service Maven, and advocating more flexibility in the market- grated marketing plans to drive and sustain long-term growth for
place. She also helped roll out GM’s CLEAN initiative to estab- McDonald’s USA. Wahl also worked to expand and strengthen
lish higher standards of safety and cleanliness. partnerships externally and internally with franchisees, suppli-
Wahl appeared to have been influential in de-emphasizing ers, and agency partners.
the Cadillac close link with New York City, including moving the A Detroit native, Wahl began her career at Mazda and later
car’s headquarters back to Detroit. The New York headquarters shifted to Ford, where she held several positions, including
were in the trendy SoHo district. Cadillac dealers criticized the brand manager for Brazil. Later she joined Toyota and became
stylized image, operatic music, and cobblestone streets as being the vice president of marketing for the Lexus brand. She spent
“too New York,” and taking the vehicles out of the spotlight. Wahl one year as chief marketing officer for Chrysler before the com-
wanted to recapture Cadillac’s heritage without changing it company declared bankruptcy in 2008. Wahl then spent five years
pletely. Wahl has also played an active role in leading GM’s push as the chief marketing office for Pulte Homes, the largest U.S.
for more electric vehicles (EVs) and fuel cell-powered vehicles. home builder, before joining McDonald’s.
Despite all Wahl’s influential marketing initiatives, Cadillac’s Wahl holds a Bachelor of Arts degree in economics from
results have been mixed. As the pandemic lingered in 2020, U.S. Wellesley College, a Master of Business Administration degree
sales slipped to about 129,000 from about 155,000 in 2018. Yet, from the Wharton School of the University of Pennsylvania,
in 2020 Cadillac sales in China boomed to over 230,000, the and a Master of International Studies degree from the Joseph
highest total ever. Lauder Institute.1
In her leadership role, Deborah Wahl is working hard in Chapter 7. Furthermore, motivating and coaching
to exert influence on the survival and success of GM skills, as described in Chapter 10, involve influencing
vehicles, as well as helping with the transition to elec- others toward worthwhile ends.
tric vehicles. At the same time, she uses her influence The terms influence and power are sometimes
to enhance cooperation within and across teams to used interchangeably, whereas at other times, power
help attain the giant automaker’s goals. Without ef- is said to create influence and vice versa. In this book,
fective influence tactics, a leader is similar to a soccer we distinguish between power and influence as fol-
player who has not learned to kick a soccer ball, or a lows: Influence is the ability to affect the behavior of
newscaster who is unable to speak. Leadership, as oft others in a particular direction, whereas power is the
repeated, is an influence process. potential or capacity to influence. Leaders are influ-
To become an effective leader, a person must be ential only when they exercise power. A leader, there-
aware of the specific tactics leaders use to influence fore, must acquire power in order to influence others.
others. Here, we discuss a number of specific in- Influence tactics have grown in importance be-
fluence tactics, but other aspects of leadership also cause so often a leader or corporate professional has to
concern influence. Being charismatic, as described influence others without having formal authority over
in Chapter 3, influences many people. Leaders influ- them. Judy Vredenburgh, the retired president and
ence others through power and politics, as described CEO of Girls Inc., provides a good example. (Girls Inc.
A Model of Power and Influence 203
is a nonprofit organization that provides educational because these require full concentration and effort. If
programs and scholarship for girls.) She says that “in you were influencing a technician to upgrade your op-
nonprofits, decisions have to be very participative. You erating system software, you would need their commit-
don’t have as much formal authority and resources; ment. Compliance means that the influence attempt
you have to use informal influence to create change.”2 is partially successful: The target person is apathetic
In business organizations also, it is often necessary to (not overjoyed) about carrying out the request and
obtain the cooperation of workers who do not report makes only a modest effort. The influence agent has
to you, such as going outside your department to bor- changed the person’s behavior but not their attitude. A
row expertise. long-distance truck driver might comply with demands
This chapter presents a model of power and influ- that he sleep certain hours between hauls, but he is not
ence, a description and explanation of influence tactics enthusiastic about losing road time. Compliance for
(both ethical and less ethical), a description of how routine tasks—such as wearing a hard hat on a con-
leaders influence large-scale change, and the sequenc- struction site—is usually good enough. Resistance is an
ing of influence tactics. We also present a theory about unsuccessful influence attempt: The target is opposed
the characteristics group members expect in a leader in to carrying out the request and finds ways to either not
order to be influenced by them. comply or do a poor job. Resistance includes making
excuses for why the task cannot be carried out, pro-
crastinating, and outright refusing to do the task.
Going to the left side of the model, the leader’s per-
A Model of Power and Influence sonality traits affect the outcome of influence tactics.
An extroverted and warm leader who has charisma can
Learning Objective 8.1 Characterize the relationship more readily use some influence tactics than a leader
between power and influence. who is introverted and cold, for example, making an in-
spirational appeal. A highly intelligent leader would be
The model shown in Figure 8-1 illustrates that the end able to influence others because they have built a rep-
results of a leader’s influence (the outcomes) are a func- utation as a subject matter expert (SME). Whichever
tion of the tactics they use. The influence tactics are, in influence tactics leaders choose, the goal is to get group
turn, moderated, or affected, by the leader’s traits, the members on their side.
leader’s behaviors, and the situation. The leader’s behaviors also affect the outcome of
Looking at the right side of the model, the three influence tactics in a variety of ways. For example,
possible outcomes are commitment, compliance, and setting high standards facilitates making an inspi-
resistance. Commitment is the most successful out- rational appeal. Additionally, leaders who perform
come: The target of the influence attempt is enthusi- well consistently are better able to lead by example
astic about carrying out the request and makes a full because they are good role models. Finally, the situ-
effort, and is therefore fully engaged. Commitment ation partly determines which influence tactic will
is particularly important for complex, difficult tasks be effective. The organizational culture or subculture
Leader
traits
Influence
INFLUENCE Outcomes
TACTICS Commitment,
compliance, or
resistance
Leader
behaviors
Situation
Figure 8-1 A Model of Power and Influence.
is one such key situational factor. For example, in a The rest of this chapter identifies and describes in-
high-technology environment, inspirational appeal fluence tactics, including some mention of situational
and emotional display are less likely to be effective variables. Leader traits and power have been described
than rational persuasion and being an SME because in previous chapters. Leadership Self-Assessment
high-tech workers are more likely to be impressed by Quiz 8-1 will give you an opportunity to think about
facts than by feelings. which influence tactics you tend to use.
Survey of Influence Tactics

Instructions: Indicate how frequently you use the influence tactics listed here: VI = very infrequently or never; I = infrequently;
S = sometimes; F = frequently; VF = very frequently. The VI to VF categories correspond to a 1-to-5 scale.
1 2 3 4 5
VI I S F VF
1. I lead by demonstrating the right behavior myself.
2. I rely on facts and logic to persuade others.
3. People often listen to me because of my expertise.
4. If I want something done, I stand ready to do a favor in

return.
5. I enjoy negotiating a price or an offer.
6. I am assertive (open and forthright in my demands).
7. I joke with or kid other people to make a point.
8. I sometimes get quite emotional to make a point.
9. I promise to reward the person to get what I want.
10. I attempt to get other people on my side in order to win my

point.
11. I cooperate with others in order to influence them.
12. As a leader, I participate heavily in the task of the group.
13. I form an alliance with the other person.
14. I threaten to go over the person’s head to the boss.
15. I compliment the other person.
16. I use as much charm as possible to get my way.
17. I will post a positive comment about a work associate on a

social media site if they have done something I particularly
like.
18. I will make a comment pointing out that I am not much
good at what I want the other person to do.
19. I would bring the person a little gift, such as a beverage
they like or an attractive ballpoint pen.
20. I refer to the importance of doing a particular task for the
overall good of the organization.
(continued)
Description and Explanation of Influence Tactics 205
Quiz5-3
8-1 (continued)
Scoring and Interpretation: The more of these tactics you use frequently or very frequently, the more influential you probably
are. Experience is a factor because you could be potentially influential but have not yet had the opportunity to use many of
these tactics.
Skill Development: The survey of influence tactics might give you some clues for development. Look for influence tactics that
appear to represent a good idea, but where you need skill development. Next, take the opportunity to practice the tactic. For
example, take Statement 15, “I compliment the other person.” Perhaps you neglect to compliment others when you want to
influence them. Use the guidelines for flattery given in the previous chapter practice to compliment another person when you
want to influence them.
are consistent. Actions and words confirm, support,

Description and Explanation and often clarify each other. Being respected facilitates
of Influence Tactics leading by example because group members are more
likely to follow the example of leaders they respect. A
major way in which a leader obtains respect is by be-
Influence tactics are often viewed from an ethical perspec-
ing trusted. Part of the respect Tim Cook, the CEO of
tive. Following this perspective, the influence tactics de-
Apple Inc., has received is that he can be trusted to fol-
scribed here are classified into three categories: (a) Those
low through on his plans, such as acquiring companies
that are essentially ethical and honest, (b) those that are
to help the company grow and paying dividends to in-
essentially neutral with respect to ethics and honesty, and
vestors to provide an additional reward for investing in
(c) those that are essentially manipulative and dishonest.
the company.
The categorization presented here is far from absolute.
Leading by example is often interpreted to mean
Except for the extremes, most of the tactics could con-
that the leader works long and hard, and expects others
ceivably be placed in any of the three categories, depend-
to do the same, with this type of behavior being preva-
ing on how they are used. For example, one can use the
lent among entrepreneurs who hire a staff. During the
tactic “joking and kidding” in either a well-meaning or
startup phase of a company, the entrepreneur will of-
mean-spirited way. Joking and kidding could therefore be
ten work over sixty hours per week and expect the new
classified as “essentially ethical,” “essentially neutral,” or
hires to follow a similar work schedule.
“essentially dishonest and unethical.”
Essentially Ethical and Honest Tactics Table 8-1 Essentially Ethical and Honest
Influence Tactics
Learning Objective 8.2 Identify a set of honest and 1. Leading by example and respect
ethical influence tactics. 2. Using rational persuasion
3. Establishing connections
This section describes essentially ethical and honest
4. Telling true stories
tactics and strategies for influencing others, as outlined
5. Explaining the benefits to the target
in Table 8-1. Used with tact, diplomacy, and good in-
6. Making a personal appeal
tent, these strategies can help you get others to join you
7. Developing a reputation as a subject matter
in accomplishing a worthwhile objective. Because these
expert
influence tactics vary in complexity, they also vary with
8. Exchanging favors and bargaining
respect to how much time is required to develop them.
9. Legitimating a request
10. Making an inspirational appeal, being
Leading by Example, Respect, and Trust
charming, and emotional display
A simple but effective way of influencing group mem- 11. Consultation with others
bers is by leading by example or acting as a positive 12. Forming coalitions
role model. Leading by example might also be framed 13. Being a team player
as showing group members how things should be 15. Practicing hands-on leadership
done. The ideal approach is to be a “do as I say and 16. Giving useful feedback.
do” manager—that is, one whose actions and words
Recent research conducted at 233 retail stores in Establishing Connections

Israel supports the utility of leading by example. The Emerging leader coach Art Petty says that much of cul-
stores sell a range of wellness products such as health tivating influence and gaining support is about how
care, cosmetics, cleaning, pharmaceuticals, and per- you engage and communicate with work associates.6
fume. Leading by example was measured by employee Engaging and communicating with people is a way of
responses to a questionnaire. One such item was, “My forming connections with them. A basic approach to
retail store leader leads by ‘doing’ rather than simply forming connections is to establish rapport with col-
by ‘telling.’” Productivity was assessed by store revenue leagues, including subordinates.7 Establishing rapport
divided by employees’ overall work hours, and service comes about in many ways, including listening care-
quality was measured by secret shoppers. A question- fully to people, and then commenting on shared in-
naire measure was also taken of leadership charisma. terests. In a work setting, job-related shared interests
A major finding of the study was that leading by exam- are the most likely to result in rapport and connections
ple improves productivity and service quality even after that can increase the chances of influencing that per-
taking into account the potential influence of charis- son when needed. Assume that finance chief Crystal
matic leadership.3 establishes rapport with data analyst Ian by chatting
with him several times about data analytics. Later
Using Rational Persuasion on, Crystal wants to influence Ian to give working in
Rational persuasion is an important tactic for influ- an open-office plan a try. Ian is more likely to endorse
encing people. It involves using logical arguments and Crystal’s plan because the two have established rapport
factual evidence to convince another person that a and a connection.
proposal or request is workable and likely to achieve
the goal. Assertiveness combined with careful research Telling True Stories
is necessary to make rational persuasion an effective In Chapter 3, storytelling was mentioned as part of the
tactic. It is likely to be most effective with people who communication style of charismatic leaders. Story-
are intelligent and rational. CEOs typically use ratio- telling has become accepted also an effective method
nal persuasion to convince their boards that an under- for most leaders when attempting to influence work-
taking, such as product diversification, is mandatory. ers. Leadership at Amazon.com attempts to influence
A major moderating variable in rational persuasion is warehouse workers not to steal by telling stories about
the credibility of the influence agent. Credibility helps Amazon workers who were fired for theft. In the ware-
an individual be more persuasive in two ways. First, houses, the company puts on flat-screen TVs that dis-
it makes a person more convincing. Second, it con- play examples of alleged on-the-job theft, and the fact
tributes to a person’s perceived power, and the more that the employees were terminated. The images are
power one is perceived to have, the more targets will accompanied by details such as when and what the
be influenced.4 workers stole, the value of the stolen merchandise. Also
The following two statements are samples of how depicted is the method of stealing such as changing an
rational persuasion is measured as perceived by subor- address label or stuffing merchandise in their socks,
dinates in research about influence processes. and the fact that many of these workers are arrested.
● Explains clearly why a request or proposed change The stories influence many employees by remind-
is necessary to attain a task objective ing them there is a high probability of thieves will be
caught.8 (It is possible that many readers would classify
● Provides information or evidence to show that a pro-
this use of storytelling as less than an ethical influence
posed activity or change is likely to be successful5
tactic.)
Leaders who emphasize the rational decision- A major concern about the widespread use of
making model favor rational persuasion. For exam- PowerPoint in organizations is that many presenters
ple, a leader favoring this model might say, “Don’t tell rely so heavily on facts, figures, fancy graphics, and
me what you feel, give me the facts,” in response to a clipart that they neglect the art of storytelling. 9 A way
subordinate who said, “I have the feeling that morale for the leader to use PowerPoint slides and still capi-
is down.” Leaders at Google heavily emphasize such talize on the influential of storytelling is to supplement
data-based decision making. A Google professional in the slides with appropriate anecdotes. For example, a
a meeting would be rejected for saying, “I think there marketing manager of a hotel chain might be making
are too many random photos appearing in Google Im- a PowerPoint presentation of how the company was
ages.” In contrast, the same professional would be ac- gaining market share in a particular region of the coun-
cepted if the statement were, “I sampled one hundred try. The manager might pause to share an anecdote of
Google Images, and found that eight of them had ran- how a family sent the company an email expressing
dom images.” gratitude that their favorite hotel was coming to town.
Explaining Benefits to the Target Aviation, represents the subject matter expertise ap-
A strongly effective way of influencing another person proach. He spent his entire forty years with GE work-
is to explain what’s in it for them if that individual hon- ing his way up the aviation unit, and was considered an
ors your request. Apprising means that the influence icon in the aerospace industry.12
agent explains how carrying out a request or supporting Small business owners, in particular, rely on being
a proposal will benefit the target personally, including SMEs because they founded the business on the basis
advancing the target’s career.10 An example of apprising of their product or technical knowledge. (Also, the ma-
would be for the manager to tell a subordinate, “Per- jor high-tech companies usually began small.) For ex-
haps helping out for two weeks on the company’s oil rig ample, the leader of a software company is usually an
in the Arctic Circle may seem like a tough assignment. expert in software development.
But you will seem like a hero to top management, and
you will make great contacts.” Two apprising behaviors Exchanging Favors and Bargaining
on the part of the leader are as follows: Offering to exchange favors if another person will help
● Describes benefits you could gain from doing a task you achieve a work goal is another standard influence
or activity (e.g., learn new skills, meet important tactic. By making an exchange, you strike a bargain
people, and enhance your reputation) with the other party. The exchange often translates into
being willing to reciprocate at a later date. It might also
● Explains how the desired task could help your
be promising a share of the benefits if the other person
career
helps you accomplish a task. For example, you might
promise to place a person’s name on a report to top
Making a Personal Appeal management if that person will help you analyze the
A personal appeal in the context of influence theory is data and prepare the tables.
the same as it is in everyday life. The agent asks the tar- A recommended approach to asking for a favor is
get to implement a request or support a proposal out of to give the other person as much time as feasible to ac-
friendship.11 Another form of personal appeal is to ask complish the task, such as by saying, “Could you find
for a personal favor before specifying the nature of the ten minutes between now and the end of the month to
favor, as in “How would you like to do something im- help me?” Not pressing for immediate assistance will
portant for me?” Asking for a favor without specifying tend to lower resistance to the request. Giving a menu
its nature would likely be interpreted as unprofessional of options for different levels of assistance also helps
in a work environment. Two behaviors reflecting a per- lower resistance. For example, you might ask another
sonal appeal by a leader are as follows: manager if you can borrow a technician for a one-
month assignment; then, as a second option, you might
● Appeals to your friendship when asking you to do ask if the technician could work ten hours per week on
something the project.13 To ensure that the request is perceived as
● Asks for your help as a personal favor an exchange, you might explain what reciprocity you
have in mind: That you will mention your coworker’s
Developing a Reputation as a Subject Matter Expert helpfulness to their manager.
Becoming an SME on a topic of importance to the or- Two behavior specifics for exchanging favors and
ganization is an effective strategy for gaining influence. bargaining are as follows:
Being an SME can be considered a subset of rational ● Offers to do a specific task for you in return for
persuasion. Managers who possess expert knowledge your help and support
in a relevant field and who continually build on that ● Offers to do something for you in the future for
knowledge can get others to help them get work ac-
your help now
complished. Many of the leaders described throughout
this text use expert knowledge to influence others. The
leaders of most technology and finance firms are usu- Legitimating a Request
ally SMEs. To legitimate is to verify that an influence attempt is
General Electric Co. (GE) emphasizes the impor- within your scope of authority. Another aspect of legit-
tance of industry expertise for business unit managers. imating is showing that your request is consistent with
GE is now keeping its senior leaders in place longer the organizational policies, practices, and expectations
with the expectation that deeper understanding of the of professional people. Making legitimate requests is an
products and customers will enhance sales. In the past, effective influence tactic because most workers are will-
business unit leaders relocated every few years to give ing to comply with regulations. A team leader can thus
them a broader understanding of the company. David exert influence with a statement such as this one: “Top
Joyce, the recently retired vice chair and CEO for GE management wants a 25 percent reduction in customer
complaints by next year. I’m therefore urging everybody The relevance of inspiration to influence is em-
to patch up any customer problems they can find.” phasized by the research of John H. Zenger and his
Legitimating sometimes takes the form of subtle associates. Based on results from 150,000 360-degree
organizational politics. A worker might push for the feedback assessments of 11,000 leaders, it was found
acceptance of an initiative because it conforms to the that the key leadership behavior was, “Inspires and mo-
philosophy or strategy of higher management. At UPS, tivates to high performance.” A key component of in-
for example, it is well known that CEO Carol Tomé spiring and motivation was found to be understanding
likes to keep costs to a minimum. A distribution center the role of emotion in the workplace as well as being
manager might then encourage workers to be careful able to use emotions comfortably.16
about wasting energy because “It’s something Carol A useful component of inspirational appeal for
would want us to do.” leaders is to provide meaning to the work, showing
Two leadership behaviors that reflect legitimating that it has significance to the entire organization or
are as follows: the outside world. Most people like to be involved with
projects that matter, and sometimes the leader might
● Says that the request is consistent with official rules
have to explain why the work matters. For example,
and policies
the leader of a company that specializes in subprime
● Verifies that a request is legitimate by referring to mortgages might have to explain, “Without our type of
a document such as a work order, policy manual, work, loads of people with modest incomes would not
charter, bylaws, or formal contract be able to become homeowners.”
Another approach to inspiring workers is to create
Making an Inspirational Appeal, Being Charming, a vision that surpasses the wants and needs of most
and Emotional Display people. 17 One of the ways in which leaders at both
A leader is supposed to inspire others, so it follows that Apple and Google have inspired workers is to involve
making an inspirational appeal is an important influence them in a vision of “changing the world” with their
tactic. As Jeffrey Pfeffer notes, “Executives and others products and services.
seeking to exercise influence in organizations often de- Two recorded behaviors of leaders who make an in-
velop skill in displaying, or not displaying, their feelings spirational appeal are as follows:
in a strategic fashion.”14 An inspirational appeal usually ● Says a proposed activity or change is an oppor
involves displaying emotion and appealing to group tunity to do something really exciting and worth-
members’ emotions. A key component of transforma- while
tional leadership is inspirational motivation.15 A mod- ● Makes an inspiring speech or presentation to arouse
erating variable in the effectiveness of an inspirational
enthusiasm for a proposed activity or change
appeal or emotional display is the influence of agent’s
personal magnetism, or the quality of being captivating,
● Leadership Skill-Building Exercise 8-1 provides an
charming, and charismatic. Possessing personal magne- opportunity to practice making an inspirational
tism makes it easier for the leader to inspire people. appeal.
Making an Inspirational Appeal

One student plays the role of the team leader who wants earn below the median family income. You hope to help
to make about a three-minute appeal to the team in order more people become financially secure.
to influence them to work even harder. Choose one of the ● You want your team to develop a modern, high-tech ver-
following three topics for an appeal, or think of a topic of sion of the type of cane used by many blind people. You
your own. are passionate about helping blind people lead a more
● You want your pharmaceutical team to develop a topical comfortable life.
ointment that will prevent and reverse baldness in both About five other students play the role of team members
men and women. who listen and react to the appeal. Other students might
● You want your investment team to develop an investment provide feedback about the effectiveness of the appeal in
product that will appeal to individuals and families who influencing the team members.
Consultation with Others ● Brings someone along for support when meeting
Consultation with others before making a decision is with you to make a request or proposal
both a leadership style and an influence technique. The
influence target becomes more motivated to follow the Being a Team Player
agent’s request because the target is involved in the de- Influencing others by being a good team player is an
cision-making process. Consultation is most effective important strategy for getting work accomplished. A
as an influence tactic when the objectives of the per- leader might be a team player by doing such things as
son being influenced are consistent with those of the pitching in during peak workloads. An example would
leader.18 An example of such goal congruity took place be an information technology team leader working
in a major corporation. The company had decided to through the night with team members to combat a vi-
shrink its pool of suppliers to form closer partnerships rus attack on the company’s computer network.
with a smaller number of high-quality vendors. As a Being a team player is a more effective influence
way of influencing others to follow this direction, a tactic in an organizational culture that emphasizes
manufacturing vice president told his staff, “Our strat- collaboration than one in which being tough-minded
egy is to reduce dealing with so many suppliers to im- and decisive is more in vogue. For example, leaders
prove quality and reduce costs. Let me know how we at hedge funds typically spend a lot of time doing an-
should implement this strategy.” The vice president’s alytical work, such as selecting stocks and porting over
influence attempt met with excellent reception, par- data. Collaborating with others in a teamwork mode is
tially because the staff members also wanted a more less important for their success as measured by the re-
streamlined set of vendor relationships. Two specific turn on investment.
leadership behaviors reflecting consultation are as
follows:
Practicing Hands-On Leadership
● Asks you to suggest things you could do to help
A hands-on leader is one who gets directly involved in
achieve a task objective or resolve a problem
the details and processes of operations. Such a leader
● Invites you to suggest ways to improve a prelimi- has expertise, is task oriented, and leads by example.
nary plan or proposal that they want you to support By getting directly involved in the group’s work activi-
or help implement ties, the leader influences subordinates to hold certain
beliefs and to follow certain procedures and processes.
Forming Coalitions For example, managers who get directly involved in fix-
At times, it is difficult to influence an individual or ing customer problems demonstrate to other workers
group by acting alone. A leader will then have to form how they think such problems should be resolved.
coalitions, or alliances, with others to create the nec- Hands-on leadership is usually expected at levels
essary clout. A coalition is a specific arrangement of below the executive suite, yet many high-level exec-
parties working together to combine their power. Coa- utives are also hands-on leaders. A strong example is
lition formation works as an influence tactic because, Tory Burch, the founder and chair of Tory Burch LLC,
to quote an old adage, “There is power in numbers.” the luxury fashion company with 315 stores across the
Coalitions in business are a numbers game—the more globe. She takes a creative role in her company as ex-
people you can get on your side, the better. However, ecutive chairman and makes decisions about fashion
the more powerful leaders are, the less they need to merchandise. At one time, she threw a block party on
create a coalition. Mercer Street in Manhattan where she was opening a
Having a network of powerful people facilitates new boutique.19 Burch’s fashion knowledge and enthu-
forming a coalition. If you need something done, you siasm helps her influence store managers to follow her
can get these other influential people to agree that it suggestions about operating the business.
is a good idea. An example of getting something done
might be getting permission to erect an office building Giving Useful Feedback
close to a park. Simply having a large number of fol-
Feedback might be considered a general-purpose lead-
lowers, friends, and links on social media is not suffi-
ership technique because it is effective for motivat-
cient for building a network of powerful people. You
ing, coaching, and improving performance, as will be
need to see occasionally or talk on the phone to build a
described in Chapter 10. Giving high quality feedback
relationship strong enough to form a coalition.
prompts the recipient to be influenced by the leader’s
Two specific leadership behaviors that reflect coali-
suggestions. Assume that division general manager
tion formation are as follows:
Derek gives the following specific feedback to product
● Mentions the names of other people who endorse a manager Arianna: “Last year you took over responsi-
proposal when asking you to support it bility for our failing brand of room dehumidifiers, and
you brought the product back to profitability. That was chain restaurants, and asks to be photographed with
quite a feat. Our line of backup generators is hardly the franchisee.
breathing. Would you be willing to resuscitate another Ingratiating tactics identified in a study about influ-
failing product for us?” Arianna accepts the challenge ence tactics included the following:
partly due to knowing how well her efforts with the de- ● Says you have the special skills or knowledge
humidifier were received by Derek.
needed to carry out a request
● Praises your skill or knowledge when asking you to
Essentially Neutral Influence Tactics do something
Learning Objective 8.3 Identify a set of influence tactics Upward ingratiation by the leader can have poten-
relatively neutral with respect to ethics and honesty. tial negative consequences with respect to support
from the leader’s direct reports. A study conducted in
The four influence tactics described in this section South Korea with 91 leaders, 91 bosses, and 215 sub-
and listed in Table 8-2 might best be regarded as neu- ordinates investigated this possibility. The study par-
tral with respect to ethics and honesty. If implemented ticipants held a variety of positions, and were from
with good intent, they tend to be positive, but if imple- four organizations: an accounting firm, a retail com-
mented with the intent of duping another person, they pany, a consumer products company, and a financial
tend to be negative. services firm.
The researchers found that that upward ingratia-
Ingratiation tion may reduce the willingness of group members to
contribute to the organization through effective per-
Ingratiation is pervasive in organizations because be-
formance. The problem is that a leader who ingratiates
ing liked is quite important to many people.20 When
upwards diminishes the relationship quality between
ingratiation takes the form of well-deserved flattery or
themselves and subordinates. Alternatively, another key
compliments, it is a positive tactic. Yet, getting some-
finding was that upward ingratiation is positively as-
body else to like you can be considered a mildly ma-
sociated with ratings of the leader’s promotability and
nipulative influence tactic if you do not like the other
job satisfaction because it enhances leader-subordinate
person.
exchange quality.21
Ingratiation is often directed upward, in the sense
Leadership Self-Assessment Quiz 8-2 provides you
of a subordinate attempting to get the superior to
an opportunity to measure your own ingratiating ten-
like them, as in organizational politics. Ingratiation
dencies and to think through further what ingratiating
also works in a downward direction, when leaders at-
yourself to work associates means in practice. Remem-
tempt to get their subordinates to like them. Typical
ber that being liked helps you get promoted, receive
ingratiating techniques directed toward subordinates
more compensation, and avoid being downsized, yet
include luncheon invitations, compliments, giving a
you should avoid being dishonest.
plum work assignment, and feeding a subordinate’s
hobby, such as contributing a rare stamp to an em-
Joking and Kidding
ployee’s collection.
Leaders who ordinarily are quite the opposite of Good-natured kidding is especially effective when a
ingratiating will sometimes go out of their way to be straightforward statement might be interpreted as
humble and agreeable to fit an important purpose. An harsh criticism. Joking or kidding can thus get the mes-
example is the CEO of a large fast-food franchise op- sage across and lower the risk that the influence tar-
eration. She might be cutting and sarcastic when at get will be angry with the influence agent. Joking and
company headquarters. Yet when on a goodwill tour kidding might be interpreted either as dishonest or as
to visit franchisees, she is ingratiating. For example, extraordinarily tactful because the criticizer softens
she compliments the quality of the food of one of the the full blow of the criticism. A small business owner
successfully used joking and kidding to help the recep-
tionist wear clothing more appropriate for the position.
As the owner entered the office, he noticed that the re-
Table 8-2 Essentially Neutral Influence Tactics ceptionist was wearing a tank top and very large hoop
1. Ingratiation earrings. The owner said, “Melissa, you look great, but
2. Joking and kidding I think you have your dates confused. You are dressed
3. Upward appeal for the company picnic, and it takes place tomorrow.”
4. Co-opting antagonists Melissa smiled, and then dressed more professionally
in the future.
The Leader Ingratiating Checklist

As a leader in the present, past, or future, which of the following behaviors is something you have done or would do?
Leader Behavior Yes No

1. Say “you look great” to work associates whether or not I thought it
was true.
2. Laugh and smile when I hear almost any joke.
3. Say I was a big fan of the other person’s sports team.
4. Express admiration for the experience of my manager.
5. Tell subordinates how proud I am to have them on my team.
6. Look at a photo of a newborn of someone else and say something

like, “That’s one of the cutest babies I have ever seen.”
7. Tell a group member that they have unusually good taste in clothing.
8. As for technical advice from a work associate even if I did not need
the information.
9. Acknowledge the birthdays of others whenever possible.
10. Compliment my manager regularly.
11. Compliment my group members regularly.
12. Send congratulatory notes to executives when the organization has

achieved good results.
13. After seeing a photo of someone’s pet, say something to the effect,
“one of the cutest I have ever seen.”
14. Compliment strongly the work ethic of a group member even when
they are an average performer.
15. Tell your manager that you are pleased that you both are on the same
“wave length” or “page.”
Scoring and Interpretation: The more of these behaviors you use or have used, especially if used frequently, the more ingra-
tiating you are. A caution is that if you use 13 or more of these behaviors frequently, you might be perceived as insincere.
Skill Development: Leaders or future leaders should remember that a moderate amount of ingratiating behavior is the norm in
relationships with superiors and subordinates. Ingratiation is frequently an effective influence tactic, and should therefore be
part of your leadership tool kit.
Upward Appeal sent the guy to my boss when he wouldn’t listen to me.
In upward appeal, the leader exerts influence on a That fixed him.” More than occasional use of upward
team member by getting a person with more formal appeal weakens the leader’s stature in the eyes of group
authority to do the influencing. Some managers and members and superiors, eroding effectiveness. Leaders
researchers regard upward appeal as an ethical and can apply upward appeal in other ways. A leader might
standard practice, yet it does contain an element of attempt to persuade another staff member that higher
manipulation and heavy-handedness. An example: “I management approved that member’s request. The
target of the influence event is thus supposed to grant Machiavellians. They tend to initiate actions with
acceptance automatically. Or, the leader can request others and control the interactions. Machiavellians
higher management’s assistance in gaining another regularly practice deception, bluffing, and other ma-
person’s compliance with the request. The influence nipulative tactics.24 A modern example of deliberate
target thus feels pressured.22 Machiavellianism is the practice of forcing managerial
and professional employees into working many extra
Co-Opting Antagonists hours of uncompensated overtime. The employees are
A potentially effective influence tactic, as well as a told that if they refuse to work extra hours, they will
method of conflict resolution, is to find a clever way to not be considered worthy of promotion or as good
get the other person or group of persons to join forces team players. Even when positions in other companies
with you. In this sense, to co-opt is to win over op- are readily available, most career-minded people will
ponents by making them part of your team or giving stay because they want to preserve a good reputation.
them a stake in the system.23 Assume that the director
of human resources is receiving considerable opposi- Gentle Manipulation of People and Situations
tion to some of her initiatives from the chief financial
Some people who attempt to influence others are
officer (CFO). For example, the CFO is opposed to her
manipulative, but to a lesser extent than an outright
proposed program of cross-cultural training. To soften
Machiavellian. They gain the compliance of another
the opposition, and perhaps even make him an ally, the
person by making untrue statements or faking certain
director of human resources invites the CFO to become
behaviors. For example, a leader might imply that if a
a member of the “human resources advisory board”
colleague supports his position in an intergroup con-
composed of company executives and distinguished
flict, the person might be recommended for promotion.
citizens from the community.
Another manipulative approach is to imply dire conse-
quences to innocent people if the influence target does
not comply with demands of the influence agent, such
Essentially Dishonest and Unethical Tactics
as “Even if you don’t want to put in extra effort for me,
Learning Objective 8.4 Pinpoint a set of dishonest and think of the people with families who will be laid off if
unethical influence tactics. we don’t make our targets.”
A widely used manipulative approach is to tap into
The tactics described in this section are less than social norms in order to gain consensus. According to
forthright and ethical, yet they vary in intensity with Steve Martin, behavior specialist at the consulting firm
respect to dishonesty. Most people would consider the Influence at Work, this technique can move people to
first two strategies presented here as unethical and model their behavior after others. He gives the example
devious, yet they might regard the second two tactics of working with the UK tax collecting service. Martin
as still within the bounds of acceptable ethics, even witnessed an increase in the return rate after enclos-
though less than fully candid. The tactics in question ing messages such as “nine out of ten people pay their
are outlined in Table 8-3. tax on time.” The rate of returns increased even more
when the tax collection service presented messages re-
ferring to the number of people who field returns with
Deliberate Machiavellianism the individual’s own town or postal code.25 A workplace
Niccolò Machiavelli advised that princes must be example is a manager who informs the vice president
strong, ruthless, and cynical leaders because peo- that they want an enlarged budget for attendance at
ple are self-centered and self-serving. As implied in the latest cloud-computing seminars because “all other
Chapter 7, people in the workplace who ruthlessly companies are doing it.”
manipulate others have therefore come to be called The technique of tapping into social norms can
be combined with peer pressure to influence a group
member. If one person is not stepping forward to work
well as a team member, the manager will say, “Tammy,
Table 8-3 Essentially Dishonest and Unethical everyone in the department is committed to being a
Influence Tactics
team player, and we’d like you to join us.”
1. Deliberate Machiavellianism
2. Gentle manipulation of people and situations
Undue Pressure
3. Undue pressure
4. Debasement Effective leaders regularly use motivational techniques
such as rewards and mild punishments. Yet, when
rewards become bribes for compliance and threats of problems. As one observer notes, “Cruelty is blatantly
punishment become severe, the target person is sub- unethical and erodes the organizational character
jected to undue pressure or coercion. An example of a through intellectual, emotional, moral, and social
bribe by a manager might be, “If you can work eighty vices that reduce the readiness of groups to act ethi-
hours on this project this week, I’ll recommend you for cally.”27 Examples of cruelty include insulting a group
the highest pay grade.” Another approach to pressure member’s physical appearance or belittling them. A
is for the manager to scream and swear at the subor- problem beyond ethics is that most forms of work-
dinate as a form of intimidation. As one manager un- place cruelty might be classified as harassment, and
der pressure of his own shouted to a subordinate: “Get therefore illegal.
some of these receivables paid by the end of the The type of influence tactics described in this
week or find another job.” chapter are apparently effective in attaining positive
Two specific behaviors labeled pressure in a re- task and relations outcome. Task outcomes generally
search study were as follows: refer to job performance, whereas relations outcomes
refer to behavior such as gaining the cooperation of
● Uses threats or warnings when trying to get you to
others. A team of researchers headed Soojin Lee of the
do something
College of Business Administration at the Chonnam
● Tries to pressure you to carry out a request University in South Korea, conducted a meta-analy-
sis of the relationship between influence tactics and
Debasement task and relations outcomes. Forty-nine independent
A subtle manipulative tactic is debasement, demean- samples, comprising almost 9,000 participants were
ing or insulting oneself to control the behavior of an- investigated.
other person. The CEO of an upscale clothing company Positive relationships were found between out-
believed that the designer of a man’s suit had gone too comes and rational persuasion, inspirational appeal,
far in creating a snug fit. To influence the designer to explaining benefits, collaboration, ingratiation, and
modify the style of the suit, the CEO said, “You are the consultation. A negative relationship was found be-
expert, and I don’t know a lot about suit design. But tween pressure and outcomes. (Note that these seven
why would anybody buy a suit that looks like it fit him influence tactics have been described in this chapter.)
when he was 20 pounds thinner?” Specific debasing Rational persuasion was found to be the most consis-
tactics revealed by research include the following: “I tently effective influence tactic under a variety of con-
lower myself so she’ll do it,” and “I act humble so she’ll ditions, such as the setting of the study.28
do it.”26 Leadership Skill-Building Exercise 8-2 gives you
In studying the most severe unethical influence an opportunity to practice influence tactics in a high-
(and political) tactics, it is important to recognize stakes business situation. Leadership Skill-Building
that the use of these influence approaches can bring Exercise 8-3 will help you recognize several of the in-
about human suffering. For example, bullying and fluence tactics described in this chapter. Another tactic
intimidating tactics may not be illegal, but they are mentioned in the exercise, assertiveness, was described
unethical. Cruelty in the organization creates many in Chapter 2.
Influence Tactics
One student plays the role of a CFO of a large company. Af- company around $5 million in payouts plus some liability
ter months of analysis, the CFO decides that a key step the for future health benefits and retirement pay. Four other stu-
company can take to be profitable during the next several dents will play the role of the top-management team, several
years is to get about 5,000 employees to accept voluntary of whom might be skeptical about the soundness of the plan
retirement. As severance pay, the workers who accept the offered by the CFO. Observers will pay close attention to the
retirement package will receive one year’s salary, depend- influence tactics used by the CFO, and perhaps by the other
ing on the length of service. The buyout could cost the members of the top-management team.
Identifying Influence Tactics

Instructions: After reading the following passage, identify “Even worse, the corporate group is planning to purchase
which influence tactics the leader is using, and explain your HR software that will enable line managers throughout the
reasoning. company to take care of their own HR responsibilities, such
Gina is the director of human resources in a diversified as recruiting and selection.
company with approximately 50,000 workers. She has as- “I want to work with all of you to develop strategies and
sembled her five direct reports in a hotel conference room tactics so vital that the top-management team will decide to
for a Saturday morning meeting. With an intense facial ex- keep our group intact, and not join the outsourcing move-
pression, Gina launched directly into her presentation, sup- ment. We need also to discourage line managers from be-
ported by PowerPoint slides on a large screen. ing performing HR on their own without our help. Think of
“Enjoy your coffee, tea, juice, donuts, bagels, and pas- HR activities so vital that we become indispensable. Maybe
tries because I can offer you no other goodies this morning. we should be coordinating a flu-shot program. Maybe we
As HR professionals, you know we are in trouble. As hard should beef up our wellness program so much that absen-
as we all work, and as much good as we do, our jobs are teeism and insurance costs are reduced to an extent that
in peril. The trend is clear. Our corporation, similar to many our contribution to the bottom line is obvious even to our
others, might be outsourcing our work to HR vendors. The CFO.
movement has already begun with payroll being outsourced “Now that I’ve told you the truth, let’s get started having
last year and health insurance this year. a true dialogue about the challenges facing us.”
organization. Yet Barra had worked her way up the or-

Leadership Influence ganization from an entry-level engineer. She therefore
for Organizational Change understood that GM had become one of the world’s
most successful and well-known companies, relying on
Learning Objective 8.5 Articulate how leaders use a classic bureaucratic structure. Consequently, Barra
influence to bring about organizational change. treaded lightly in terms of insulting people who felt
part of the “Old GM.”
Most of the discussion so far relates to the leader/
After a new CEO is appointed, the person typically
manager influencing people one at a time or in small
makes a public statement to the effect that: “My num-
groups. Top-level leaders exert many of their influence
ber-one job is to change the culture.” A leader might do
attempts in the direction of bringing about changes
the following to bring about change as well as ensuring
throughout the entire organization, often by attempt-
that a healthy corporate culture is maintained.
ing to overhaul the organizational culture. One such
change would be attempting to influence a culture that ● Serve as a role model for the desired attitudes and
was too collaborative to make decisions more quickly behaviors. Leaders must behave in ways consistent
and independently, or the reverse. Another change with the values and practices they wish to see im-
would be to make the culture more focused on prod- itated throughout the organization. If the change
ucts the market wanted and less focused on innovation the leader wants is a stronger focus on customer
for its own sake. Yet another cultural change facing a service, leaders must treat employees as customers,
CEO would be to make a risk-averse workforce more thereby acting as role models for the way customers
entrepreneurial and risk taking. should be treated. The leaders must also talk in pos-
Before plunging ahead with attempts at massive itive terms about customer service, with a statement
cultural change, the leader needs to study the old cul- such as “The real joy in our work is helping custom-
ture and understand why it contributed to the pros- ers solve their problems.” Another frequently used
perity and growth of the organization. When Mary method of bringing about change by acting as a
Barra was appointed CEO of General Motors (GM), role model is for the newly appointed leader to be
she saw the need to shift the culture in the direction of frugal to encourage frugality throughout the orga-
a less bureaucratic, more innovative, and fast-moving nization. The frugal CEO, for example, might fly on
Leadership Influence for Organizational Change 215
commercial airlines and not by corporate jet, have the company is headed, why it is changing, and why
one instead of several administrative assistants, and this change is important.30 In recent years, top-level
eat lunch in the company cafeteria. leadership at McDonalds’ Corporation has had to
● Explain why the transformation is personally im- work diligently with corporate managers to explain
portant. It is constructive for the leader to be that the market for rapid-service restaurants has be-
transparent and explain why they believe the orga- come highly competitive. More people were eating
nization should make the cultural shift.29 The CEO at home, and trying other fast-food restaurants. The
of a consumer products company might say, “The changes made innovation in McDonald’s offering
digital revolution might be passing us by. I want to essential. (Serving breakfast all day was one such
be associated with a company that looks to digitize innovation.)
almost every process. Without this change in atti- ● Hold people accountable for the changes in be-
tude, we will be left behind our competitors.” havior that support the cultural shift. If company
● Impose a new approach through executive edict. A leadership decides that customer service should re-
frequent example in recent years is for a CEO to de- ceive top priority, employees at all levels should be
mand that managers throughout the organization measured on customer service in their performance
must achieve a greater degree of diversity and in- reviews. If not, the cultural shift to place a higher
clusion. If the edict is successful, the result would value on customer service will not take place.31
be a more diverse and inclusive workforce. ● Select candidates for positions at all levels whose
● Establish a reward system that reinforces the cul- values mesh with the values of the desired culture.
ture, such as giving huge awards for successful Many firms hire only those candidates whose work
product and process ideas to promote an innovative and school experience suggest that they might be
culture. Marc Benioff at Salesforce is so committed good team players—a cultural value.
to innovation that being imaginative is almost a re- ● Sponsor new training and development programs
quirement for being promoted into a key position at that support the desired cultural values. Among
the company. many examples, top management might sponsor
● Foster understanding and conviction by helping diversity training to support the importance of cul-
people throughout the organization understand why tural diversity, or training in quality to support the
the change is necessary. The reasons the change is value of quality.
necessary may be abundantly clear to the company A leader who exhibited all of these behaviors would
leadership, but these reasons have to be broadly qualify as a transformational leader because of all the
communicated. Two consultants at McKinsey & positive changes. The accompanying Leader-In-Action
Company recommend that leaders develop a change insert describes the leader of a major financial firm
story that helps all stakeholders understand where who successfully brought about cultural change.

Leader in Action
Emmanuel Roman, CEO of Bond Giant PIMCO, Attempts to Change Its Culture
In November 2016, Emmanuel Roman, and ex-Goldman reputation. Ambitious young finance specialists have been
Sachs, banker was appointed CEO of bond giant and attracted to PIMCO’s trading floor to work alongside some
money manager PIMCO. His two key early initiatives were of the bond markets’ most skilled investors. They might
to leverage new technologies and hiring new talent. So far have had to endure aggressive colleagues, rapidly chang-
under Roman’s leadership, PIMCO’s growth in total assets ing management decisions, and long working hours, but the
has been dramatic, now managing over $2.2 trillion in assets excitement and exceptionally high paychecks made it all
for institutions and individuals. worthwhile.
For many years, the fixed-income firm Pacific Investment The hyper-competitive culture at PIMCO began to soften
Management Company (PIMCO) was proud of its cutthroat in 2014, after its legendary investor, Bill Gross, left the firm
(continued)

following a series of disagreements with his colleagues. ten years ago. A quarter of the U.S. officers self-identified
Yet conflict and discord at PIMCO did not disappear when as women, also an 11 percent increase. Roman strongly
Gross departed. A number of lawsuits six years later alleging endorses workforce diversity at PIMCO. He points out that
gender discrimination and harassment placed the spotlight the way people think about and solve problems is influenced
on a problem-laden culture at PIMCO. by their past history, making it important to have employ-
Roman has emphasized that the PIMCO of today is ees from different backgrounds and geographic locations. “I
much different than the PIMCO of ten years ago. In recent really believe that the argument for diversity is that it is a
years the firm has overhauled how employees are evaluated, plus from a business standpoint,” Roman said. “Listen. I’m a
promoted, and trained. Management consultant McKinsey French guy, and they were willing to embrace someone who
& Company was hired to conduct regular staff workplace thought differently.”
surveys, and an employee ombudsman was appointed. In addition to tweaking the culture, Roman has spear-
PIMCO leadership has also worked to narrow the wide gaps headed other approaches to improving PIMCO. He said a
in pay between top executives and those on a rung or two few years ago that he was trying to make the giant money
below. One of the approaches to narrowing the pay gap is to manager “bulletproof” from new competitors in wealth
grant stock options that vest over time. management by investing more money in technology, mid-
In response to charges of from seven former female dle and back office functions, and cybersecurity. Roman
employees about discrimination, harassment, retaliation, emphasized technology, including quantitative analysis and
PIMCO engaged a highly experienced third-party expert to data models, as a major factor in “finding alpha” in the fixed
conduct an independent review of the accusations. The in- income markets. (“Finding alpha” is a complicated idea
vestigation did not find evidence of discrimination, harass- that includes doing better than a benchmark.) Roman also
ment, or retaliation, and also concluded that the company points out that time and money alone will not assure PIM-
handled the complaints appropriately. Yet the report rec- CO’s competitive advantage. Hiring the best people is also
ommended that top-level management clarify how it makes essential.
decisions on promotions. Under Roman’s leadership, the Born in Paris to two artists, Roman grew up reading
company now makes its basis for promotions more trans- books that lined the wall of his family’s apartment. He grad-
parent. Leadership skills, values, and a variety of manage- uated from Paris Dauphine University, where he studied
ment skills are now factored into these decisions, screened mathematics and economics. Roman also received an MBA
by a committee and checked for any potential biases. The in finance and econometrics from the University of Chicago
report also mentioned that PIMCO is a type-A environment Booth School of Business.
with high work expectations and high reward. One conclu-
sion was that “Many flourish in this environment, but it does Questions
not fit everyone.” 1. To what extent do you think Roman will be successful in
softening the cutthroat culture in such a high-paying in-
A key part of the cultural shift at PIMCO is to bring in
vestment firm?
a younger and more diverse group of candidates. In 2020,
2. What kind of an impact do you think bringing in a younger
29 percent of the firm’s senior U.S. staff self-identified as an and more culturally diverse workforce have on the culture
underrepresented minority, an increase of 11 percent from of PIMCO?
Sources: Original story based on facts and observations in the following sources: Justin Baer, “Bond Star Pimco Tries to Change Its Cul-
ture,” The Wall Street Journal, April 19, 2021, pp. B1, B9; Ankita Dixit, “Bond Giant Pimco Attempts to Change Its Culture,” PostinTrend
(https://postintrend.com), April 17, 2021, pp. 1–3; Michael Thrasher, “What Keeps PIMCO’s CEO Up at Night,” Wealth Management
.com (www.wealthmanagement.com), May 9, 2029, pp. 1–3; “Emmanuel Roman, ’87: Chief Executive Officer PIMCO,” Chicago Booth
(www.chicagobooth.edu), 2021, pp. 1–2.
Implicit Leadership Theories and Leadership Influence 217
In addition to the sequencing of tactics, the influ-

Sequencing of Influence Tactics ence agent must also consider the direction of the in-
fluence attempt as a contingency factor. In general, the
more position power an individual exerts over another,
Learning Objective 8.6 Enumerate how influence tactics the less the need for being cautious in the use of in-
should be sequenced.
fluence tactics. For example, a vice president can more
readily use undue pressure against a supervisor than
An important consideration in using influence tac-
vice versa. When you have more power, there are likely
tics is the sequence or order in which they should be
to be fewer negative consequences from using more
applied. In general, you should begin with the most
powerful tactics.
positive, or least abrasive, tactic. If you do not gain
Leadership Skill-Building Exercise 8-4 provides an
the advantage you seek, proceed to a stronger tac-
opportunity to practice implementing various influence
tic. For example, if you want a larger salary increase
tactics. As with any other skill, influence skills need to
than that initially assigned to you, try rational per-
be practiced under field conditions.
suasion. If persuasion does not work, move on to
exchanging favors. Use a more abrasive tactic such
as upward appeal only as a last resort. The reason is
that abrasive tactics trigger revenge and retaliation. Implicit Leadership Theories
Many people who have taken their complaints to an and Leadership Influence
outside agency, such as a governmental office, have
found themselves with a limited future in their orga- Learning Objective 8.7 Clarify how implicit leadership
nization. Although the appeal is legally justified, it is theories are related to a leader’s ability to influence group
politically unwise. members.
The sequencing of tactics can also be considered in
terms of cost and risk. A sensible approach is to begin A final perspective on influence tactics is that people
with low-cost, low-risk tactics. If the outcome is im- are more likely to be influenced by leaders who match
portant enough to the influence agent, the agent can their expectations of what a leader should be. Implicit
then proceed to higher-cost and higher-risk influence leadership theories are personal assumptions about
tactics. An example of a low-cost, low-risk tactic would the traits and abilities that characterize an ideal
be joking and kidding. An accounting manager who organizational leader. These assumptions, both stated
was disappointed with the budget offered to her group and unstated, develop through socialization and
might say to her boss, “Does the new budget mean that past experiences with leaders. The assumptions are
our group will have to pay for our own printer car- stored in memory and activated when group mem-
tridges and green eyeshades?” It would be much more bers interact with a person in a leadership position.
costly in terms of time and potential retaliation to form Our assumptions about leaders help us make sense of
a coalition with another under-budgeted group to ask what takes place on the job. Recent evidence empha-
for an enlarged budget. sizes that our assumptions about the characteristics
Applying Influence Tactics

Divide the class into small teams. Each group assigns one target reacted; and (3) what results, both positive and nega-
leadership influence tactic to each team member. During the tive, were achieved.
next week or so, each team member takes the opportunity Practicing influence tactics directly contributes to your
to practice the assigned influence tactic in a work or per- leadership effectiveness because leadership centers on
sonal setting. Hold a group discussion with the same class influence. If you want to exert leadership as an individual
teams after the influence attempts have been practiced. Re- contributor, you will have to be particularly adept at using
port the following information: (1) Under what circumstances influence tactics because your formal authority will be quite
the influence tactic was attempted; (2) how the influence limited.
Table 8-4 Implicit Leadership Theory Dimensions
Leadership Prototype Leadership Antiprototype
1. Sensitivity (compassion, sensitive) 1. Tyranny (dominant, selfish, manipulative)

2. Intelligence (intelligent, clever) 2. Masculinity (male, masculine)
3. Dedication (dedicated, motivated)
4. Charisma (charismatic, dynamic)
5. Strength (strong, bold)
6. Attractiveness (well dressed, classy)
7. Trustworthiness (honesty, integrity)
8. Creativity (creative, innovative, clever)
Source: Gathered from information in Olga Epitropaki and Robin Martin, “Implicit Leadership Theories in Applied Settings: Factor
Structure, Generalizability, and Stability over Time,” Journal of Applied Psychology, April 2004, pp. 297–299. Olga Epitropaki and Robin
Martin, “Implicit Leadership Theories in Applied Settings: Factor Structure, Generalizability, and Stability over Time,” Journal of
Applied Psychology, April 2004, pp. 297–299; Austin lee Nichols and Catherine A. Cottrell, “What do People Desire in Their Leaders? The
Role of Leadership Level on Trait Desirability,” The Leadership Quarterly, August 2014, pp. 711–729; Lynn R. Offerman, and Meredith
Coats, “Implicit Theories of Leadership: Stability and Change Over Two Decades,” The Leadership Quarterly, August 2018, pp. 513–522.
of an ideal leader have remained remarkably stable In turn, the group member will be more readily influ-
over a 20-year period. 32 The one addition has been enced by the leader.34
“creativity” (see Table 8-4). A study with workers about implicit leadership indi-
Assume that Reggie was raised in a household and cated that people’s perceptions of which characteristics
neighborhood in which business leaders are highly re- they desire in a leader is associated with the level of the
spected and thought to be dedicated and intelligent. position. It was found that workers desire (a) dominant
When Reggie later works in a full-time professional traits more in high-level than in low-level leaders, and
job, he is most likely to be influenced by a supervisor (b) interpersonal traits more in low-level leaders than
he perceives to be dedicated and intelligent because in high-level leaders.35
this person fits Reggie’s preconceived notion of how a Table 8-4 lists the six traits group members want to
leader should behave. see in a leader (prototypes), as well as the two traits
According to implicit leadership theory, as part of they do not want to see in a leader (antiprototypes).
making assumptions and expectations of leader traits Your study of leadership traits in Chapters 2 and 3 will
and behaviors, people develop leadership prototypes reinforce these leadership attributes. The antiprototype
and antiprototypes. Prototypes are positive character- of masculinity suggests that followers prefer a com-
izations of a leader, whereas antiprototypes are traits passionate and relationship-oriented leader to a com-
and behaviors that people do not want to see in a mand-and-control leader. An implication of these data
leader. People have different expectations of what they is that a leader who fits group members’ prototypes is
want in a leader, yet research conducted with 939 sub- more likely to influence them than a leader who fits
ordinates in two different samples in British companies their antiprototype.
shows there is some consistency in implicit leadership A potential problem with leadership prototypes
theories. The study showed that these theories are con- is that superiors and subordinates might rate leaders
sistent across different employee groups and are also favorably who fit these prototypes, even if the leader’s
stable, trait-based stereotypes of leadership.33 Another performance is not so strong. For example, Sam might
study in England showed that if the leader matches em- be an intelligent and dedicated leader of a call center
ployee assumptions about having the right traits, the but in reality accomplish very little.36
leader–member exchange (LMX) will be more positive.
Reader’s Roadmap
So far we have studied considerable information about the nature of leadership; the attributes, behaviors, and styles
of leaders; the ethics and social responsibility of leaders; and how leaders exert power and use politics and influence.
The next chapter explains a variety of techniques for developing teamwork.
Implicit Leadership Theories and Leadership Influence 219
Summary
To become an effective leader, a person must be deliberate Machiavellianism, gentle manipula-
aware of specific influence tactics. Influence is the tion of people and situations, undue pressure, and
ability to affect the behaviors of others in a partic- debasement.
ular direction. Power, in contrast, is the potential Top-level leaders exert many of their influence
or capacity to influence. A model presented here attempts toward bringing about changes through-
indicates that a leader’s influence outcomes are a out the entire organization, often by attempting
function of the influence tactics used. The influ- to overhaul the organizational culture. The leader
ence tactics are, in turn, moderated, or affected, should first study the old culture to search for its
by the leader’s traits and behaviors and also by merits. Tactics for cultural change by the leader in-
the situation. The outcomes of influence attempts clude serving as a role model; explaining why the
are commitment, compliance, or resistance, all of transformation is personally important; executive
which influence end results such as group success edict; giving rewards to reinforce the culture; help-
or failure. ing people understand why change is necessary;
Influence tactics are often viewed from an eth- holding people accountable for necessary changes;
ical perspective. Some tactics are clearly ethical, selecting candidates who fit the culture; and estab-
some are neutral, but others are clearly uneth- lishing training and development programs to sup-
ical. Used with tact, diplomacy, and good intent, port the culture.
ethical influence tactics can be quite effective. Sequencing of influence tactics is an important
The essentially ethical tactics described here are consideration. In general, begin with the most pos-
leading by example and respect; using rational itive, or least abrasive, tactic. If you do not gain the
persuasion; establishing connections; telling true advantage you seek, proceed to a stronger tactic.
stories; explaining the benefits to the target; mak- Also, begin with low-cost, low-risk tactics.
ing a personal appeal; developing a reputation as a Implicit leadership theories are personal as-
an SME; exchanging favors and bargaining; legit- sumptions about the traits and abilities that char-
imating a request; making an inspirational appeal, acterize an ideal organizational leader. Prototypes
being charming, and displaying emotion; consult- are positive characterizations of a leader, whereas
ing with others; forming coalitions, being a team antiprototypes are negative. Subordinates are more
player; practicing hands-on leadership; and giving likely to be influenced by leaders who fit their proto-
useful feedback. type, and do not fit their antiprototype, of a leader.
Influence tactics essentially neutral with respect Dominant traits are more desired in top-level lead-
to ethics are ingratiation, joking and kidding, up- ers, whereas interpersonal traits are more desirable
ward appeal, and co-opting antagonists. Essentially in lower-level leadership roles.
dishonest and unethical tactics presented here were
Key Terms
influence 202 leading by example 205 upward appeal 211
power 202 apprising 207 co-opt 212
commitment 203 personal magnetism 208 Machiavellians 212
compliance 203 coalition 209 debasement 213
resistance 203 hands-on leader 209 implicit leadership theories 217
To become an effective leader, learning to use influ- in a city 3,000 miles away from company head-
ence tactics comfortably is inevitable. If you use in- quarters. The lowly visible leader not only loses
fluence tactics naturally, without giving them much influence but also might be dismissed. A case in
thought, there is still more to learn. For example, point is Federica Marchionni who was forced out
even a successful leader such as Elon Musk might as CEO of Land’s End Inc. (as described in Chap-
be even more effective with employees if he were ter 6). She had attempted to bring about broad
more conciliatory toward those people he perceived changes at the catalog retailer that that annoyed
to be of average intelligence. Being conciliatory fits employee and turned away shoppers. The former
the influence tactics of being charming and consult- Ferrari executive was never able to influence em-
ing with others. ployees to accept her vision of a more fashion-
In order for many influence tactics to work able Land’s End. A point of contention was that
well, such as being a hands-on leader or joking and Marchionni spent about one week a month at the
kidding, the regular physical presence of a leader company’s Wisconsin’s headquarters, preferring
is valuable. Some CEOs today attempt to conduct instead to work out of an office in the garment dis-
much of their work digitally, and perhaps even live trict of New York.
Discussion Questions and Activities 6. How should an ambitious person draw the line be-
1. Which influence tactic described in this chapter do tween being an effective at ingratiation and being
you think would work the best when a leader at- obnoxious?
tempts to influence you? Why? 7. Why is developing a reputation as an SME import-
2. Which influence tactic described in this chapter do ant for a leader if leadership deals so heavily with
you think would work the best for you when influ- interpersonal skills?
encing another person? Why? 8. How might a business owner tap into social norms
3. Which of the influence tactics described in this to get employees to lead a healthier lifestyle?
chapter do you think are the most important for 9. For over 100 years, IBM has been a leading tech-
a person in their first leadership assignment? Ex- nology company, yet in in the last few decades it
plain your reasoning. has lost some of its dominance as a technology
4. With so many workers habituated to using mobile leader. What cultural change can you suggest to
devices for so much of their work, should company help company leadership at IBM restore some of
management develop apps for influencing subordi- the company’s past glory?
nates? Explain your reasoning. 10. Get the opinion of an experienced leader as to the
5. Assume that as their leader, you wanted to influ- most effective influence tactics. Share your find-
ence minimum wage earners in an order-fulfillment ings with class members.
center to work faster. Which one or two influence
tactics are likely to be effective?
General Manager Troy Wants to Inspire vehicles Galaxy builds have a sticker price of
Troy is the plant general manager for one of around $150,000, and classify as motorhomes
the two manufacturing plants for Galaxy RV, a rather that trailers attached to an automobile
company that builds recreational vehicles. The or pickup truck. Sales for the various Galaxy
models have accelerated in recent years, but the “To capitalize on this revolution in recre-
pandemic provided an enormous sales boost. In ation, I need every one of you and your direct
fear of being contaminated in hotels, other re- and indirect reports to work harder and smarter.
sorts, and in public transportation, thousands of I want to see Galaxy RVs built more quickly and
people thought that an RV would protect them with fewer defects. Our sales are climbing, but
from the dangers of COVID-19 pandemic. As we have to work harder to get some inventory
one customer said in reference to an RV parked to meet dealer demand. Think of each Galaxy
on a dealer’s lot, “It’s got a sink, a stove, and a we build as a potential safe and trusted home
shower. I’ll take it.” on wheels for loved ones of your own. If we can
When the pandemic subsided, the enlarged build more of these world class queens of the
fan base for RVs remained loyal. Although mar- road, our dealers will find more customers. Our
ket forecasts vary, it appears that the motor- future is up to you.”
home outlook for the next decade is positive. Lance, the operations manager, responded,
Troy became quite optimistic about the present “I hear you Troy, but our entire manufacturing
and future of Galaxy, but he thought that not group is already working at top speed. If we
all members of his management team and the work any faster, that could mean manufacturing
rest of the workforce shared his enthusiasm. defects, and possible recalls.”
Troy thought that he could do a better job of in- Wendy, the procurement and materials man-
spiring Galaxy workers to take their work more ager, said with her eyes close to tearing, “Troy,
seriously. thanks for framing the importance of what we
Troy’s first attempt at inspiration was do here at Galaxy. I’m sure that your words will
during a management team meeting conducted help my staff be even more productive.”
at 8:30 one Monday morning. He stood up and Based on these first two comments, Troy
addressed the rest of the team seated around a thought that his message might be working, but
table, with these words. “Do you folks realize that he might have to try again. One possibility
that we are on the cusp of a revolution at Gal- would be to deliver a similar message to the en-
axy RV? We are helping change the way people tire plant via a videoconference.
in the United States, Canada, and other coun-
tries are spending their leisure time. Instead Questions
of being confined to a hotel or an Airbnb, our 1. What is your evaluation of the effectiveness of
customers are hitting the open road so they can Troy’s inspirational message?
cruise along in their own motorized home. In 2. What other influence tactics might Troy use
some of our bigger models, two families at a to ramp up production at his Galaxy RV
time are experiencing joy, happiness, and love plant?
at the same time.

One student plays the role of Troy who is delivering message in whatever manner seems appropriate.
the same message to his top-management staff. Candor is welcome. Troy, in turn, will respond
You might choose to use part of his message as to the comments made by members of his top-
your script. Four other students play the roles of management team.
members of the team. Each one will react to Troy’s
Katerina Demands Results season is behind us, and we can expect a normal
Katerina is the regional manager of an in- sales decrease. Neither I nor my sales associates
ternational chain of luxury goods boutiques, have found a way to drag people in the mall into
Florentine Bravado. Each boutique, or store, is our store and force them to buy a $9,000 watch
about 4,000 square feet, and features expensive or a $1,200 handbag. We have to deal with the
watches, handbags, men’s and women’s suits, realities of the economy.”
and jewelry. Michael Kors would be a direct Katerina responded, “Garth, I told you at the
competitor of Florentine Bravado. All twelve outset. No moaning, no groaning, no excuses.
store managers in Katerina’s region report di- Your goal is a 3 percent sales increase, and it’s
rectly to her, along with a small administra- not negotiable.”
tive staff at regional headquarters. Florentine Five days later, Katerina met with Sonya, the
Bravado stores are located in upscale malls, and manager of a low-performing store. Katerina
the company also sells merchandise online from said forcibly, “Sonya, I want you to understand
the corporate location. clearly that your days of operating a low-per-
Katerina’s goal for the upcoming year is to forming store are over. Forget your European
stabilize or enhance sales at her twelve stores. charm. Persuade the people who visit the store
Store revenues have been declining about 4 per- to walk away with a purchase. Get on the backs
cent per year for the last five years, in both her of those laid-back sales associates, and make
region and the entire company. Katerina wants them sell, sell, sell. The corporate group and I
her region to standout by reversing this trend. need you to boost sales. Do you understand my
Before holding in-person discussions with her message?”
store managers, Katerina sent out an email to all Sonya rebutted, “Katerina, I thought that
the managers. The email read as follows: you understood the luxury goods business. We
“What is happening to our cultural icon, are not selling kegs of beer to bar owners. Lux-
Florentine Bravado? Are we falling prey to the ury consumers have to be gently coaxed to make
same misery encroaching upon the many mun- a purchase like an $800 pair of cufflinks. He
dane retailers? Are our formerly loyal custom- could easily purchase a pair of cufflinks for $15
ers buying trinkets at discount stores instead of that would get the job done.”
shopping at Bravado? Are our customers now Katerina responded, “Nice try Sonya, but
purchasing knock-offs from overseas imitators?” Florentine Bravado looks at the bottom line, not
Three days later, Katerina met with Garth, excuses. Show me some good sales results real
the store manager located in the region’s most soon.”
upscale mall. She said, “Garth what is wrong
with you? We give you all the advertising sup- Questions
port you need, and your results for the last 1. Which influence tactics does Katerina appear
quarter are putrid. I want to see a 3 percent to be using, and how effective do they appear
improvement in your sales for next quarter. No to be?
moaning, no groaning, no excuses.” 2. What other approach might Katerina take to
Garth replied, “I would like to see a 3 percent getting her store managers to enhance sales?
or more sales increase next quarter also. Yet you 3. To what extent do you think that Katerina is
are expecting too much. The holiday shopping too abrasive in her role as regional manager?

One student plays the role of Katerina who is deliver- who likes the tone of Katerina’s message and wants
ing a kinder, gentler message to store manager about to cooperate. Other students will provide feedback
the need to boost sales by 3 percent for the next quar- about the extent to which Katerina has most likely
ter. Another student plays the role of a store manager influenced the store manager.
Notes 223
people think using the term Chief for sport is rac-
Influence is necessary for leaders, so you need to practice
ist. So I tried to influence the league director that
your influence tactics to enhance your leadership effec-
we needed a name change. I presented my argu-
tiveness. In this chapter’s entry to your leadership journal,
ment using a bunch of facts about how Chief has
describe any influence tactic you implemented recently. De-
become passé for sports teams. (My technique was
scribe what you did and how the influence target reacted.
rational persuasion.) I did get a listen, but I didn’t
Comment on how you might use the tactic differently in your
get approval for the name change. So next, I com-
next influence attempt. Also describe which influence tactic
bined my logical argument with an inspirational ap-
or combination of tactics you plan to use in the upcoming
peal. I asked the league directors how they would
week. Here is a possible example:
like it if our team were called The West Side Chinese
I coach a youth basketball team called the West
or the West Side Jews. Finally, my influence tactics
Side Chiefs. The kids are great, and I am enjoying
worked, and for next season my team will be the
the experience. Yet the name Chiefs really bothers
West Side Rattlers.
me because it is so behind the times, and a lot of
Notes
1. Original story based on facts and observations in 4. Mitchell S. Nesler, Herman Aguinis, Brian M. Quig-
the following sources: Andrew Hampp, “CMO of ley, and James T. Tedeschi, “The Effect of Credibil-
the Week: General Motors’ Deborah Wahl,” Brand ity on Perceived Power,” Journal of Applied Social
Innovators (www.brand-innovators.com), June 15, Psychology, Vol. 23, no. 17, 1993, pp. 1407–1425.
2020, pp. 1–6; Marty Swant, “Cadillac CMO Deborah 5. The sample statements indicating the influence
Wahl Named Global CMO of General Motors,” tactic in question here and at the other places in
Forbes (www.forbes.com), September 6, 2019, the chapter where they are presented are from
pp. 1–3; James Mr. Amend, “New Marketing Chief Gary Yukl, Charles F. Seifert, and Carolyn Chavez,
Charged with Getting Cadillac Coking Again,” Wards “Validation of the Extended Influence Behavior
Auto (www.wardsauto.com), January 22, 2019, Questionnaire,” The Leadership Quarterly, October
pp. 1–5; Michael Wayland, “Wahl Steers Cadillac 2008, pp. 618–620 (© Gary Yukl).
Back to Its Roots,” Automotive News (www.automo- 6. Art Petty, “7 Ways to Build Influence and Persua-
tivenews.com), January 28, 2019, pp. 1–3; Kristina sion at Work,” Smarty Brief www.smartbrief.com),
Monllos, “Former McDonald’s CMO Deborah Wahl March 25, 2021, pp. 1–2.
Takes the Reins at Cadillac as New Marketing Chief,” 7. Rebecca Knight, “How to Increase Your Influence
ADWEEK (www.adweek.com), March 6, 2028, at Work,” Harvard Business Review (https://hbr
pp. 1–3; Lewis Lazare, “McDonald’s Taps New .org), pp. 1–8.
Domestic Marketing Honcho as Sales Decrease,” 8. Josh Eidelson, “Amazon’s Story is Kind of a Bum-
www.bizjournals.com, January 23, 2014, pp. 1–4; mer,” Bloomberg Businesweek.com, March 14–20,
Lorene Yue, “McDonald’s Names U. S. Marketing 2016, pp. 40–41.
Chief,” www.chicagobusiness.com. January 22, 2014, 9. Patrick Burke, “Let’s Trade PowerPoint for Good
pp. 1–3. Stories,” Democrat and Chronicle, November 15,
2. “Judy Vredenburgh: Chief Executive Officer, Girls, 2015, p. 1E.
Inc.” Bloomberg Businessweek, October 19–28, 10. Yukl, Siefert, and Chavez, “Validation of the
2015, p. 80. Extended Influence Behavior Questionnaire,”
3. Liat Eldor, “Leading by Doing: Does Lead- p. 610.
ing by Example Impact Productivity and Ser- 11. Ibid. (For both endnotes 9 and 10 the definitions
vice Quality?” Academy of Management Journal, are credited as Copyright © 2001 by Gary Yukl.)
April 2021, pp. 458–481.
12. “David Joyce to Retire from GE; John Slattery to 25. Cited in Heidi Grant Halvorson, “How to Be a Better
Become President and CEO of GE Aviation,” www Boss,” The Wall Street Journal, January 2, 2013, p. B6.
.geaviation.com, June 15, 2020, pp. 1–2. 26. David M. Buss, Mary Gomes, Dolly S. Higgins,
13. “You Scratch My Back … Tips on Winning Your and Karen Lauterbach, “Tactics of Manipula-
Colleague’s Cooperation,” Working Smart, October tion,” Journal of Personality and Social Psychology,
1999, p. 1. December 1987, p. 1222.
14. Jeffrey Pfeffer, Managing with Power: Power and 27. Comment contributed anonymously to author by a
Influence in Organizations (Boston, MA: Harvard professor of organizational behavior.
Business School Press, 1992), p. 224. 28. Soojin Lee et al., “How Do I Get My Way? A
15. George C, Banks et al., “Construct Redundancy in Meta-Analytic Review of Research on Influence
Leader Behaviors: A Review and Agenda for the Tactics,” The Leadership Quarterly, February 2017,
Future,” The Leadership Quarterly, February 2018, pp. 210–228.
p. 238. 29. Ron Carucci, “How Leaders Get in the Way of Or-
16. John H. (Jack) Zenger, “Leadership’s Silver Bullet: ganizational Change,” Harvard Business Review
The Magic of Inspiration,” in Marshall Goldsmith, (https://hbr.org), April 30, 2021, pp. 4–5.
John Baldoni, and Sarah McArthur, eds., The AMA 30. Tesa Basford and Bill Schaninger, “The Four Build-
Handbook of Leadership (New York: AMACOM, ing Blocks of Change,” McKinsey Quarterly (www
2010), pp. 103–109. .mckinsey.com), April 2016, pp. 2–3.
17. Carlin Flora, “The Art of Influence,” Psychology 31. Beth Sears, “Strategic Cultural Change,” Democrat
Today, September/October 2011, pp. 68–69. and Chronicle, July 5, 2015, p. 5E.
18. Gary Yukl, Skills for Managers and Leaders: Text, 32. Lynn R. Offerman, and Meredith Coats, “Implicit
Cases, and Exercises (Upper Saddle River, NJ: Pren- Theories of Leadership: Stability and Change Over
tice Hall, 1990), p. 65. Two Decades,” The Leadership Quarterly, August
19. Deniz Cam, “Tony Burch’s Survival Sketchbook,” 2018, pp. 513–522.
Forbes, November 2020, pp. 132–137. 33. Olga Epitropaki and Robert Martin, “Implicit
20. Trevor A. Foulk and David M. Long, “Impressed Leadership Theories in Applied Settings: Fac-
by Impression Management: Newcomer Reactions tor Structure, Generalizability, and Stability over
to Ingratiated Supervisors,” Journal of Applied Time,” Journal of Applied Psychology, April 2004,
Psychology, October 2016, p. 1493. pp. 297–299.
21. Ji Koung Kim, Jeffrey A. LePine, and Joe Uk Chun, 34. Olga Epitropaki and Robert Martin, “From Real to
“Stuck Between a Rock and a Hard Place: Contrast- Ideal: A Longitudinal Study of Implicit Leadership
ing Upward and Downward Effects of Leader’s In- Theories in Leader–Member Exchanges and Em-
gratiation,” Personnel Psychology, Number 4, 2018, ployee Outcomes,” Journal of Applied Psychology,
pp. 495–518. July 2005, pp. 659–676.
22. Gary Yukl and Cecilia M. Falbe, “Influence Tactics 35. Austin Lee Nichols and Catherine A. Cottrell,
and Objectives in Upward, Downward, and Lateral “What Do People Desire in their Leaders? The
Influence Attempts,” Journal of Applied Psychology, Role of Leadership Level on Trait Desirability,” The
April 1990, p. 133. Leadership Quarterly, August 2014, pp. 711–729.
23. Jeffrey Pfeffer, “Power Play,” Harvard Business Re- 36. Nina Maureen Junker and Rolf van Dick, “Implicit
view, July–August 2010, p. 90. Theories in Organizational Settings: A Systematic
24. Bernard M. Bass (with Ruth Bass), The Bass Hand- Review and Research Agenda of Implicit Leader-
book of Leadership: Theory, Research, & Managerial ship,” The Leadership Quarterly, December 2014,
Applications, Fourth Edition (New York: The Free p. 1188.
Press, 2008), p. 160.
9
Chapter
Developing Teamwork
Learning Objectives
After studying this chapter and doing the exercises, 9.3 Pinpoint the potential contribution of outdoor training
you should be able to to the development of team leadership.
9.1 Characterize the leader’s role in a team-based 9.4 Articulate how the leader–member exchange model
organization. contributes to an understanding of leadership.
9.2 Describe leader actions that foster teamwork.
Chapter Outline
The Leader’s Role in the Team-Based Organization The Leader–Member Exchange Model and Teamwork
Leader Actions That Foster Teamwork Different Quality Relationships
Actions Leaders Can Take Using Their Own Resources First Impressions
Actions Generally Requiring Organization Structure or Summary
Policy Key Terms
The Problem of Excessive Collaboration Guidelines for Action and Skill Development
Offsite Training and Team Development Leadership Case Problem A
Features of Outdoor and Offsite Training Programs Leadership Case Problem B
Evaluation of Outdoor Training for Team Development Notes
I
n February 2021, Anthony (“Tony”) Capuano was named chief Capuano had played a major role in Marriott’s growth during
executive officer (CEO) at Marriott International, Inc., the world’s the last decade. Marriott said, “He will be a terrific leader as we
largest hotel chain with 30 brands and more than 7,000 proper- continue to advance our growth strategy while also navigating
ties worldwide. The former CEO, Arne Sorenson, died of pancre- the market dynamics of the COVID-19 pandemic.” Marriott also
atic cancer the previous week. Capuano joined Marriott in 1995, said that Capuano works thoughtfully and pragmatically with the
and previous to being named CEO, he served as group president company’s owner and franchise community. He added, “Tony
of global development, design, and operation services. While the has a deep appreciation for Marriott’s thousands of associates
head of global development, the company grew from just over who ultimately deliver our customer and brand promise, and I
3,200 properties in early 2009 to over 7,600 in 2020. know he will be a superb steward for our culture.”
At the time of Capuano’s promotion to CEO, J. W. (“Bill”) Capuano said that his appointment was bittersweet be-
Marriott Jr., the company’s executive chairman, remarked that cause of the death of his predecessor. “Arne was a mentor, a
225
226 Chapter 9 Developing Teamwork
champion, and a friend to each member of his close-knit leader- of the Marriott, “there is simply no substitute for face-to-face
ship team. It is because of Arne’s efforts that we are prepared to interaction.” Another example of Capuano’s reliance on building
move forward with this transition,” he said. strong teams took place during the COVID-19 pandemic.
A major challenge Capuano faced in 2021 was that the He deployed teams to lead Marriott’s Commitment to Clean
hotel sector was still reeling from the coronavirus pandemic Initiative, a program designed to enhance Marriott’s already
which greatly curtailed global travel, and led to a large number strong cleaning protocols to provide additional peace of mind
of hotel closings. Another challenge was replacing a CEO who to hotel and resort guests. The Marriott Cleanliness Council
was devoted to connecting with everyone from the company’s consisted of teams of in-house and outside experts in food and
group leaders to housekeepers. Capuano said he would con- water safety, hygiene, and infection prevention.
tinue with the same type of management style as Sorenson Capuano received a bachelor’s degree in hotel adminis-
who prior to his illness was on the road 200 days a year visiting tration from The Cornell School of Hotel Administration at the
Marriott hotels, resorts, and employees. Cornell SC Johnson College of Business. He is a member of the
Capuano said, “I will very much embrace that style.” dean’s advisory board at the school.
He believes that to develop the strong teams characteristic
The comments by a major hotel executive illustrate the veterinarians, technicians, customer service represen-
importance business firms attach to face-to-face inter- tatives, and kennel staff daily.4 Teamwork facilitates the
action to build teamwork. Developing teamwork is such domestic animals receiving the care they need.
an important leadership role that team building is said The central focus of this chapter is a description of
to differentiate successful from unsuccessful leaders. 2 specific leader actions that foster teamwork. We also
Furthermore, leaders with a reputation as teamwork describe outdoor training, a widely used method of
builders are often in demand, such as Tim Cook, the teamwork development. In addition, we summarize a
CEO of Apple Inc. Cook’s ability to work smoothly with leadership theory that provides insight into how team-
managers from different disciplines at the company work emerges within a work group.
contributed to him being chosen to lead Apple after the
death of Steve Jobs.
A difficulty in understanding teams is that the The Leader’s Role in the
words teams and teamwork are often overused and Team-Based Organization
applied loosely. For some people, team is simply an-
other term for group. As used here, a team is a work Learning Objective 9.1 Characterize the leader’s role in a
group that must rely on collaboration if each member team-based organization.
is to experience the optimum success and achievement.
Teamwork is work done with an understanding and Although an important goal of a team-based organi-
commitment to group goals on the part of all team zation is for group members to participate in leader-
members. ship and management activities, leaders still play an
All teams are groups, but not all groups are teams. important role. In fact, they learn to lead in new ways.
Jon R. Katzenbach and Douglas K. Smith, on the ba- Team-based organizations need leaders who are knowl-
sis of extensive research in the workplace, make a clear edgeable in the team process and can help with the
differentiation between teams and groups.3 A team is interpersonal demands of teams, for example, by giving
characterized by a common commitment, whereas the feedback and resolving conflict. Quite often the leader
commitment within a group might not be as strong. is a facilitator who works with two or three teams at a
A team accomplishes many collective work products, time. The leader helps them stay focused when person-
whereas group members sometimes work slightly more ality and work style differences create problems.
independently. A team has shared leadership roles, A basic way of understanding the leader’s role in
whereas members of a group have a strong leader. a team-based organization is that the CEO as well as
The concepts of teams and teamwork apply other leaders throughout the organization are attempt-
throughout the organization, as well as to a wide variety ing to build high-performing teams. Reid Hoffman, the
of organizations. A basic example is that a veterinary cofounder of LinkedIn, sums it up this way: “No matter
assistant at an animal care hospital explains that a lot how brilliant your mind or strategy, if you’re playing a
of teamwork is required in his post. He works with solo game, you’ll always lose out to a team.”5
Leader Actions That Foster Teamwork 227
Without effective leadership, teams can get off Intergroup leadership can also take place at middle
course, go too far or not far enough, lose sight of their levels within the organization. When the leader is not
mission, and become blocked by interpersonal conflict. a member of the team, that person is classified as an
Effective leadership is particularly important early in external leader. A study conducted in three different
the history of a group to help it reach its potential. Key industrial workplaces with self-managing teams offers
roles of a leader in a team-based organization include some understanding of the external leader’s role. (A
the following: self-managing team has considerable autonomy.) It
was found that under ordinary work conditions, when
● Building trust and inspiring teamwork
the leaders were too actively involved in coaching the
● Coaching team members and group members toward team and in sense making, satisfaction with leadership
higher levels of performance, even to the point of be- declined. An example of sense making here would be
ing a high-performing transformational team (one identifying increases in the price of natural gas, and
that brings about major constructive changes) then explaining to the facilities maintenance team
● Facilitating and supporting the team’s decisions how price increases will affect their work. When the
● Expanding the team’s capabilities team faced disruptive conditions, such as an unusually
heavy work overload or a rapid change in technology,
● Creating a team identity
coaching and sense making by the leader increased
● Anticipating and influencing change satisfaction with leadership.8
● Inspiring the team toward higher levels of A notable challenge for the manager who leads a
performance variety of teams is that different teams within the or-
● Enabling and empowering group members to ac- ganization might have a culture of their won, referred
complish their work to as a subculture. Leading effectively across the orga-
nization requires skill in working across the different
● Encouraging team members to eliminate low-value
subcultures.9 At a super-market chain, for example, the
work6
finance group might have a subculture quite different
Several of these roles have already been noted in from the team that receives goods from delivery trucks.
this book, and several others, such as building trust We emphasize again that an important role for the
and coaching, are described later. All of these roles con- leader in a team-based organization is often to lead a
tribute to effective leadership in general. The enabling group of people who do not report directly to that per-
role, for example, centers on empowerment. Yet prop- son. As a consequence, many of the teamwork develop-
erly motivating team members also enables, or facili- ment tactics described in this chapter become all the
tates, work accomplishment. The leader behavior and more important for accomplishing results.
attitudes that foster teamwork, described in the next
section, might also be interpreted as part of the leader’s
role in a team-based organization. Leader Actions That Foster
A role for executive-level leaders requiring separate
Teamwork
mention is that of leading a number of teams within the
organization, referred to as intergroup leadership. A Learning Objective 9.2 Describe leader actions that
basic example is that the CEO needs to coordinate the foster teamwork.
efforts of large teams, such as marketing, finance, in-
formation technology, and operations. An even broader Fostering teamwork is well worth the leader’s attention
challenge is for the executive to lead groups and teams because teamwork is a major contributor to team suc-
in different organizations, such as a joint venture be- cess. Sometimes a leader’s inspiring personality alone
tween two companies working together to build a pe- can foster teamwork. An experiment with Dutch busi-
troleum pipeline across the United States and Canada. ness students showed that leaders who were perceived
To carry out the role successfully of building team- as charismatic and fair facilitated cooperation among
work among various teams, a starting point is for the group members.10 Yet, inspirational leaders, as well as
leader to talk frequently about the identity of the team less charismatic ones, can also encourage teamwork
composed of teams. Three researchers on the topic through their attitudes and what they do. Table 9-1 lists
argue that the leader must work at building a shared the teamwork-enhancing actions that are described in
collective identity across the teams.7 For example, the the following pages. For convenience, the actions are
leader of the collection of teams building the pipe- divided into two types: actions that leaders can take
line might occasionally communicate the message, using their own resources (informal techniques) and
“Through our collective effort we have become a team actions that generally require organization structure or
bringing North American energy to North Americans.” policy (formal techniques).
Table 9-1 Leader Actions That Foster Teamwork
Actions Leaders Can Take Using Their Actions Generally Requiring Organization Structure
Own Resources or Policy
1. Defining the team’s mission and tasks 1. Designing physical structures that facilitate
2. Establishing a climate of trust communication
3. Developing a norm of teamwork, based on 2. Emphasizing group recognition and rewards
cooperation theory 3. Initiating ritual and ceremony
4. Developing group emotional intelligence 4. Practicing open-book management
5. Emphasizing pride in being outstanding 5. Selecting team-oriented members
6. Serving as a model of teamwork, including 6. Using technology that facilitates teamwork
power sharing and collective leadership including social media
7. Using a consensus leadership style 7. Blending representatives from the domestic
8. Establishing urgency, demanding performance company and foreign nationals on the team
standards, and providing direction
9. Encouraging competition with another group
10. Interacting with the team and providing
feedback and recognition
11. Minimizing micromanagement
12. Practicing e-leadership for virtual teams
Actions Leaders Can Take Using mission establishes a climate in which team members
Their Own Resources can express feelings, ideas, and opinions. Shared lead-
ership is required in developing a mission, as in most
Defining the Team’s Mission and Tasks other ways of enhancing teamwork.
A starting point in developing teamwork is to specify the To help implement the mission, it is useful for the
team’s mission. Commitment to a clear mission is a key leader to define the team tasks, or to work with the group
practice of a highly effective team. The mission state- in defining these tasks. Team members can then identify
ment for the group helps answer the questions, “Why are the subtasks for which each member has responsibility.
we doing this?” and “What are we trying to accomplish?” Each team member needs to know how they are respon-
To answer these questions, the mission statement should sible for attaining the mission and goals.11 For example,
set out a specific goal, purpose, and philosophical tone. a dental office might want to understand why so many
Any goal contained within the mission statement should patients have left the practice. One team member might
be congruent with organizational objectives. If a team be assigned the task of contacting former patients,
wants to cut back on its number of suppliers, the organi- and another team member might be assigned the task
zation should have the same intent as well. Here are two of asking current patients if they are experiencing any
examples of team mission statements: problems with the dental practice.
● To plan and implement new manufacturing ap-
Establishing a Climate of Trust
proaches to enhance our high-performance image
and bolster our competitive edge If team members do not trust each other or the leader,
it is unlikely that they will work cooperatively together.
● To enhance our website development capability, so
Trust is at the heart of collaboration. Unless team
we can provide decision makers throughout the or-
members trust each other, they will not be depen-
ganization with assistance in developing websites
dent on each other and therefore will not work well
that exceed the state of the art
as a team.12 A starting point in establishing a climate
The leader can specify the mission when the team of trust is for the leader to be credible and engage in
is formed or at any other time. Developing a mission the many other trustworthy behaviors, as described in
for a long-standing team breathes new life into its ac- Chapter 2. Encouraging open communication about
tivities. Being committed to a mission improves team- problems and sharing information are two specific
work, as does the process of formulating a mission. The ways the leader can help promote a climate of trust.
dialogue necessary for developing a clearly articulated Being open about problems facing the group and being
candid in expressing opinions is often referred to as the Normative statements about teamwork by influen-
leader being transparent. tial team members are also useful in reinforcing the
norm of teamwork. A team member might assume a
Developing a Norm of Teamwork Based on leadership role by saying to coworkers: “I’m glad this
Cooperation Theory project is a joint effort. I know that’s what earns us
A major strategy of teamwork development is to promote merit points here.”
the attitude among group members that working together Research reported by Adam Grant reinforces the
effectively is expected. Most profit as well as not-for- importance of cooperation within teams for attaining
profit organizations emphasize that teamwork is import- high team performance. A team of researchers investi-
ant. A representative example is HPE Financial Services, gated what made U.S. intelligence units effective. Hun-
a subsidiary of Hewlett-Packard Co. Irv Rothman, pres- dreds of analysts from sixty-four different intelligence
ident and chief executive of this 1,600-employee com- groups were surveyed, interviewed, and observed, and
pany, says he maximizes performance by organizing into the researchers ranked those units from best to worst.
small, manageable teams. Employees are expected to The single strongest predictor of group effectiveness
manage themselves to make decisions on behalf of the was the amount of help the analysts gave each other.
customer. Teams are asked to behave like they are busi- It was found that in the highest performing teams, an-
ness owners.13 (Both of these points carry the message alysts invested extensive time and energy in coaching,
that teamwork is the expected behavior.) teaching, and consulting with colleagues. The cooper-
Another approach to developing a norm of team- ative behavior assisted analysts in such ways as filling
work is to discourage excessive politicking in which in gaps in their knowledge and recognizing patterns in
employees attempt to appear more capable than team- seemingly disconnected pieces of information. In the
mates, and might even discredit the contribution of units related the lowest by the researchers, the analysts
others to the team. Gary Rankin and Colin Gautrey rec- exchanged small amounts of mutual help and struggled
ommend that the political infighting can be decreased to make sense of considerable data.17
through encouraging teamwork. A specific technique A robust approach to establishing a norm of team-
is for the team leader to incorporate into dialogue the work is to encourage prosocial motivation among team
terms “working together,” and “winning team.”14 members. Team members are coached to understand
A norm of teamwork is based on cooperation that the motivation to help each other should be as
theory, a belief in cooperation and collaboration rather strong as the motivation to attain individual and group
than competitiveness as a strategy for building team- goals. A combination of field and laboratory studies
work.15 Individuals who are accustomed to competing found that when prosocial motivation in the team was
with one another for recognition, salary increases, and high, team processes such as citizenship behavior in-
resources must now collaborate. Despite the challenge creased, and so did team effectiveness. Furthermore,
of making a culture shift, the leader can make progress team cooperation also increased.18
toward establishing a teamwork norm by doing the
following: Developing Group Emotional Intelligence
The leader’s role in developing teamwork can also be
● Encourage team members to treat one another as
described as helping the group develop emotional in-
if they were customers, thus fostering cooperative
telligence. The leader contributes to the group’s emo-
behavior and politeness.
tional intelligence by creating norms that establish
● Explicitly state the desirability of teamwork on a mutual trust among members. It is also important for
regular basis both orally and in writing. members to have a sense of group identity as defined
● Communicate the norm of teamwork by frequently in their mission statement. Group efficacy, or feeling
using words and phrases that support teamwork. competent to complete the group task, also contrib-
Emphasizing the words team members or teammate utes to emotional intelligence. Ensuring that the group
and de-emphasizing the words subordinates and em- has the right skills can enhance such efficacy. These
ployees helps communicate the norm of teamwork. three conditions—mutual trust, group identity, and
● Work with the group to establish a code of conduct group efficacy—are the foundation of cooperation and
that everyone agrees to follow. Aspects of the code collaboration.
might include “never abandon a teammate,” “never The leader can also promote group emotional in-
humiliate anyone,” and “keep all agreements.” Also telligence by bringing emotions to the surface in both
helpful is to facilitate productive conversation by group and one-on-one meetings. The leader then dis-
prohibiting unfair interruptions, and encouraging cusses how these emotions might be affecting the
participation by all team members during physical group’s work.19 For example, team members might dis-
or virtual meetings.16 cuss how they feel about their perceived importance
Shelters for the Homeless

This exercise should take about thirty-five minutes; it can (2) Which homeless people will you help? (3) Where will your
be done inside or outside class. Organize the class into shelters be? (4) Who will do the construction? After your
teams of about six people. Each team takes on the assign- plan is completed, evaluate the quality of the teamwork that
ment of formulating plans for building temporary shelters for took place within the group. Review the chapter for tech-
the homeless. The dwellings you plan to build, for exam- niques you might have used to improve it.
ple, might be two-room cottages with electricity and indoor The same kind of teamwork skills you use in this exercise
plumbing. During the time allotted to the task, formulate can be readily applied to most teamwork assignments on
plans for going ahead with Shelters for the Homeless. Con- the job. Note carefully that although some types of teams
sider dividing up work by assigning certain roles to each call for members to be generalists, dividing up the tasks is
team member. Sketch out tentative answers to the following still a basic principle of collective effort.
questions: (1) How will you obtain funding for your venture?
to the organization. One maintenance group said that member. For example, it is better to say “We have to get
they felt entirely unappreciated until a key piece of this done by Friday,” than “You have to …”
equipment broke down, and this underappreciation Another way of being a model of teamwork is to
was adversely affecting their morale. The team leader share power with group members because a good team
helped the group develop an internal public relations player avoids hogging power and making all of the de-
campaign about their contribution to productivity. cisions. As each team member takes the opportunity to
exert power, the team member feels more like a major
Emphasizing Pride in Being Outstanding contributor to team effort. We are referring here yet
A standard way to build team spirit, if not teamwork, is again to shared or collective leadership. Peter Prono-
to help the group realize why it should be proud of its vost, an anesthesiologist and critical-care specialist at
accomplishments. Most groups are particularly good Johns Hopkins Hospital, believes that hospitals would
at some task. The leader should help the group iden- be safer for patients with more power sharing among
tify that task or characteristic and promote it as a key physicians and other medical personnel. (The mistakes
strength. An order-fulfillment department, for example, in hospitals he refers to include ordering the wrong
might have the best on-time shipping record in the re- drug or operating on, or even amputating, the wrong
gion. Or, a claims-processing unit might have the few- limb.) Pronovost believes that nurses should have the
est overpayments in an insurance company. power to challenge doctors, and members of the med-
To try your hand at being part of an outstanding ical team need to work like flight crews in terms of
team, do Leadership Skill-Building Exercise 9-1. power sharing to help minimize medical mistakes.21
Power sharing can also take the form of team mem-
Serving as a Model of Teamwork, Including Power bers feeling free to offer constructive feedback to the
Sharing and Collective Leadership team leader. A leader asking for team members to pro-
vide feedback on a bad idea the leader suggests illus-
A powerful way for a leader to foster teamwork is to
trates this approach.
be a positive model of team play. And one way to ex-
To be a model of team play as a leader, you need the
emplify teamwork is to reveal important information
attitudes of a team player. Leadership Self-Assessment
about ideas and attitudes relevant to the group’s work.
Quiz 9-1 gives you an opportunity to measure such
As a result of this behavior, team members may fol-
attitudes.
low suit. A leader’s self-disclosure fosters teamwork
because it leads to shared perceptions and concerns.20
Self-disclosure is an element of leader transparency. Using a Consensus Leadership Style
Interacting extensively with team members serves as Teamwork is enhanced when a leader practices consen-
a model of teamwork because it illustrates the mecha- sus decision making. Contributing to important deci-
nism by which team development takes place—frequent sions helps group members feel that they are valuable
informal communication. While interacting with team to the team. Consensus decision making also leads
members, the team leader can emphasize being a team to an exchange of ideas within the group, with group
Self-Assesment Quiz
9-1
Team Player Attitudes

Instructions: Describe how well you agree with each of the following statements, using the following scale: disagree strongly
(DS); disagree (D); neutral (N); agree (A); agree strongly (AS).
DS D N A AS
1. I am at my best when working alone. 5 4 3 2 1
2. I have belonged to clubs and teams since I was a child. 1 2 3 4 5
3. It takes far too long to get work accomplished with a group. 5 4 3 2 1
4. I like the friendship of working in a group. 1 2 3 4 5
5. I would prefer to run a one-person business than to be a member 5 4 3 2 1
of a large firm.
6. It is difficult to trust others in the group on key assignments. 5 4 3 2 1
7. Encouraging others comes to me naturally. 1 2 3 4 5
8. I like the give-and-take of ideas that is possible in a group. 1 2 3 4 5
9. It is fun to share responsibility with others in the group. 1 2 3 4 5
10. Much more can be accomplished by a team than by the same 1 2 3 4 5
number of people working alone.
11. I will often poke fun at my other members of my work group 5 4 3 2 1
through a social media post.
12. I would pay a deserving compliment to a team member through a 1 2 3 4 5
social media post.
Total score:
Scoring and Interpretation: Add the numbers you circled to obtain your total score.
● 46–60: You have strong positive attitudes toward being a team member and working cooperatively with other members.
● 35–46: You have moderately favorable attitudes toward being a team member and working cooperatively with other
members.
● 15–34: You much prefer working by yourself to being a team member. To work effectively in a company that emphasizes
teamwork, you may need to develop more positive attitudes toward working jointly with others.
members supporting and refining each other’s sug- Establishing Urgency, Demanding Performance
gestions. As a result, the feeling of working jointly on Standards, and Providing Direction
problems is enhanced. Most managers in their mid-50s Team members need to believe that the team has ur-
or younger tend to practice consensus leadership. gent, constructive purposes. They also want a list of
Striving for consensus does not mean that all con- explicit expectations. The more urgent and relevant
flict is submerged to make people agree. Disagree- the rationale is, the more likely it is that the team will
ments over issues are healthy, and team members are achieve its potential. A customer service team was told
more likely to be committed to the consensus decision that further growth for the corporation would be im-
if their voice has been heard. When voices are heard, possible without major improvements in providing ser-
some power is shared. An example of a conflict over an vice to customers. Energized by this information, the
issue would be the marketing team of an automotive team met the challenge.
company debating whether dealer discounts improve To help establish urgency, it is helpful for the leader
sales in the long run. to challenge the group regularly. Teamwork is enhanced
when the leader provides the team valid facts and infor- leader and members ask and answer questions, such
mation that motivate them to work together to modify as “How can we make an even bigger contribution to
the status quo. New information prompts the team to the company?” When Kevin Johnson became CEO of
redefine and enrich its understanding of the challenge Juniper Networks, he met with all his direct reports as
it is facing. As a result, the team is likely to focus on a a group. He told them that their input was very import-
common purpose, set clearer goals, and work together ant. Two of the questions he asked were “What needs
more smoothly.22 to change, and why?” and “What do you hope I do as
Studies in several industry settings, including the CEO?” The group question-and-answer sessions ap-
development of the Boeing 777 midsize airliner, sug- peared to have a positive impact on creating a cohesive
gest that urgent, demanding tasks also contribute to top-management team.26
the teamwork effectiveness of teams composed of top A motivational form of interacting with the team is
talent. The researchers in question raise the caution to provide positive feedback about recent activities, and
that leader should prune anybody from the group who also recognizing accomplishments. Giving team mem-
is not a good team player, regardless of the person’s bers regular updates on personal performance as well
capability.23 as company performance helps workers feel valued.27
Demanding tasks also facilitate good performance The sales manager for software above might say to the
because reasonably high demands act as healthy stress- group, “I know that I was nagging you about providing
ors that boost performance. For example, imagine that the input for the new software to operate. But you’ve
a sales manager has rolled out new sales management done a fine job, and now our team has helped boost
software, but just a few sales representatives have in- company revenue 3 percent this past quarter. Your
putted their activity as required by the software. The accomplishments are much appreciated.”
sales manager might try direct feedback such as, “It’s
Wednesday and so far, only three reps have provided Minimizing Micromanagement
data. When is everybody going to participate?”24
A strategic perspective on encouraging teamwork is for
the leader to minimize micromanagement, the close
Encouraging Competition with Another Group monitoring of most aspects of group member activities
One of the best-known methods of encouraging team- (as mentioned in Chapter 4 in relation to leadership be-
work is rallying the support of the group against a real haviors). To be a good team leader, the manager must
or imagined threat from the outside. Beating the com- give group members ample opportunity to manage their
petition makes more sense when the competition is own activities. Avoiding micromanagement is a core
outside your organization. When the enemy is within, ingredient of employee empowerment because empow-
the team spirit within may become detrimental to the ered workers are given considerable latitude to manage
overall organization, and we–they problems may arise. their own activities. Not stepping in to make sugges-
While encouraging competition with another group, tions or corrections helps team members develop, and
the leader should encourage rivalry, not intense com- the feeling of growing professionally will often translate
petition that might lead to unethical business practices, into workers developing a stronger team spirit.
such as making false charges against them. An example An effective way of avoiding micromanagement is
of ethical competition against another group would be for the leader to learn to ignore minor actions that the
a product development group at Dodge Ram compet- leader does not like, yet are not real problems. Suppose
ing to produce a pickup truck that outperformed the a manager has a preference for certain fonts used in
Ford 150 series of pickups. PowerPoint presentations. To avoid being a microman-
ager, the leader should not insist that team members
Interacting with the Team and Providing Positive use only the favored fonts in PowerPoint slides. A mi-
Feedback and Recognition cromanager is also referred to as a control freak, be-
A helpful tactic for building teamwork is to build pos- cause they want to maintain so much control. When
itive relationships with team members, and relation- a micromanager is particularly talented, and also
ships are built on conversations.25 The conversations well liked, micromanagement is less of a detriment to
should go beyond superficialities such as discuss- teamwork.
ing weekend plans or how busy the team member is. The contingency leader recognizes the fine line
Meaningful topics would include the team member’s between avoiding micromanagement and not pro-
perception of potential problems, job satisfaction, and viding the guidance and accountability that team
suggestions for improvement. members may need to function well as a unit. Under-
An effective way of interacting with team members management, also referred to as macromanagement,
is to hold question-and-answer sessions. The same ap- includes weak performance management, a tendency
proach demonstrates participative leadership. Both to avoid conflicts with employees, and not holding
subordinates accountable for results. One HR VP ex- cultures. For example, the team leader or manager
claimed in frustration, “The trouble with our managers must often confront the problem of different attitudes
is that too often they just don’t manage.”28 toward hierarchy and authority, such as workers from
An implication is that a manager tinged with a little many cultures not feeling comfortable with the flat
micromanagement is likely to actively manage. structure of a team.30
The leader can foster team spirit (and therefore
teamwork) by sending congratulatory email messages
Practicing E-Leadership for Virtual Teams
for a job well done. In short, the e-leader improves
The heavy presence of communication technology has teamwork by staying connected electronically to team
had a significant impact on team leadership, especially members—although not to the point of blitzing them
when team members do not work in the same physical with so many messages that the leader becomes an
location. If team leader Jennifer, based in Seattle, sends annoyance.
a note of congratulations to team member Surinda, Another driving force for the use of virtual teams has
based in Mumbai, she is practicing e-leadership. been the gig economy—workers who are involved in
Jennifer and Surinda are part of a virtual team: They some form of freelancing or contracting, often based on
work with each other, yet they do not share the same outsourcing. A person accepting a gig works on demand,
physical facility. During the pandemic, the reliance on often through a digital marketplace.31 The freelancers
virtual teams surged. are typically working part time, but make a contribution
E-leadership is a form of leadership practiced in to the efforts of the total team. Visualize a mineral explo-
a context where work is mediated by communication ration team working for a mining company. The team
technology. The leadership focus shifts from individ- makes occasional use of a specialist who uses drones
uals to networks of relationships because the Internet to take videos and still photos of difficult-to-reach loca-
facilitates connecting so many people.29 E-leadership tions. The “drone-person” or is part of the team, even
could, therefore, encompass any activity undertaken by though that person not receive a fulltime salary.
a leader when the Internet connects people. Our con- Based on observations, interviews, and survey data,
cern here is how e-leadership facilitates building team- two intensive studies have identified leadership prac-
work, especially in a virtual team. tices of effective leaders of virtual teams. The purpose
A fundamental challenge to leading virtual teams is of these practices is to overcome the unique challenges
fostering team unity when employees work apart. It is of managing virtual teams, such as not being able to
difficult to establish an office culture when team mem- see in-person when the team needs focus and direction.
bers do not share the same office. Research suggests The conclusions of the researchers along with a few
that teams working in separate locations experience other studies dealing mostly with building teamwork
lower levels of trust and higher levels of conflict than are presented next.32
workers in physical proximity. A survey showed that
these issues can result in unfinished projects, failure 1. Establish and maintain trust through the use
to attain performance goals, substantial lost sales, plus of communication technology. A major hurdle
high levels of stress and low morale.30 in working with a virtual team is deciding on what
When team members are geographically dispersed, information gets communicated and to whom. In
a leader’s communication with team members takes some instances, a norm might be established that
place using information technology, including the dis- restricts members from conveying negative infor-
semination of information needed for task accomplish- mation to anyone outside the team. It is also useful
ment. The original virtual teams were established to to ensure that all team members are equally incon-
facilitate innovation among experts around the world venienced by time zone differences, such as having
who did not have the time to travel. A participative a meeting at 3 A.M. their time. Meeting times would
leader may establish chat rooms to solicit opinions from be rotated, so team members in one time zone
members of a cross-border virtual team before reaching would not suffer.
a final decision. Videoconferencing is ideal for virtual Another trust problem in virtual teams is that
teams because it allows members to see and interact some team members may think that other members
with other from remote locations at the same time. are not doing their fair share of work. The team
The trend toward forming cross-cultural teams leader can help build trust by occasionally present-
from geographically dispersed units of a firm increases ing data to the team about the contribution of indi-
the application of virtual teams. Strategic alliances in vidual team members.
which geographically dispersed companies work with 2. Ensure that diversity in the team is under-
each other depend on virtual teams in many ways. stood, appreciated, and leveraged. Diversity
Meeting electronically does not cure all of the prob- within the team can take many forms, such as
lems of geographically dispersed teams from different experience, skills, and interests. To ensure that
diversity is understood and appreciated, leaders at least two bosses (the virtual team leader and
frequently develop an expertise directory when the on-site boss), so it is important that the work
the team first forms. The directory can include a of the virtual team gets reported externally. A vir-
photo of each member along with details about tual team in the electronics testing industry was
their training, experience, and previous assign- required to report the team’s results to a steering
ments. A skills matrix of team members can serve committee. The link to teamwork is that receiv-
the same purpose. ing rewards and recognition helps build team
3. Maintain frequent communications, including spirit.
virtual meetings. The majority of team leaders in 6. Ensure that individuals benefit from participat-
one of the studies reported that regular videocon- ing in virtual teams. Even if the members are good
ferences involving all members were the lifeblood team players, they need personal benefits to experi-
of the team, even when tasks were distributed ence team spirit. One approach is to have virtual re-
among the team members. The virtual meetings ward ceremonies, such as having gifts delivered to
are used to keep members engaged, excited about each team member and then having a virtual party.
the work, and aligned with each other. At the begin- (No need for designated drivers here because the
ning of the meeting, it is helpful to have the team party takes place at the homes of team members!)
member reconnect with the human side of each The team leader can also encourage executives at
team member. Exchanging personal stories helps the team members’ work environment to thank the
build closeness. A couple of minutes of warmup are team members. Offering opportunities for personal
recommended, such as commenting on extreme growth, such as mini-lectures by an expert, can also
weather in one region, or an outstanding athletic be helpful.
team victory. 7. To maintain a high-touch environment, con-
Leaders can also overcome the physical bar- duct one or two face-to-face meetings per year.
riers of remote work by creating opportunity for Communication technology is not a total substitute
spontaneous, informal communication through for human interaction. Remote workers often feel
such events as virtual beverage and snack breaks, isolated, which can have a negative effect on team
happy hours, or celebrations for birthdays and unity.
work anniversaries. All of these activities might Lack of attention during virtual meetings is a
help build the team culture that can elude virtual warning sign to look for. Virtual teams that invest
workers. in one or two face-to-face meetings annually tend to
Other forms of communication besides vid- perform better than those who skip such meetings.33
eoconferences can serve the function of develop- Even the use of the most advanced videoconferenc-
ing teamwork. At Nokia, for example, the favored ing equipment, or Skype or Zoom, lacks the feel of
communication tool is text messaging, while at interacting with a colleague face to face.
other companies email was more effective. Many
companies use internal social media websites to You will observe that the seven suggestions for lead-
encourage frequent shared interaction among ing virtual teams include both actions leaders can take
team members. Most importantly, communication on their own, plus the use of company technology.
should be frequent and rapid. The communication
platform Slack channels is used by thousands of Actions Generally Requiring Organization
virtual teams to replace or supplement email. Slack
Structure or Policy
can act as a digital headquarters that connects team
members, and enables team members to catch up Designing Physical Structures That Facilitate
and contribute on their own time. Communication
4. Monitor team progress through the use of tech- Group cohesiveness, and therefore teamwork, is fos-
nology. An example of monitoring would be check- tered when team members are located close together
ing to see who is using the team’s online knowledge and can interact frequently and easily. In contrast,
repository regularly and who is not. The leader can people who spend most of their time in their private
also check to see if some members are not doing offices or cubicles are less likely to interact. Frequent
their fair share of work, and then coach the under- interaction often leads to camaraderie and a feeling
performer. This approach might improve teamwork of belongingness. A useful tactic for achieving physi-
because loafers drag down a team. cal proximity is to establish a shared physical facility,
5. Enhance external visibility of the team and such as a conference room, research library, or bever-
its members. Virtual team members may have age lounge. This area should be decorated differently
from other areas in the building, and a few amenities Another aspect of rewarding team performance
should be added, such as a coffeepot, microwave oven, is to avoid disincentives for teamwork. An example
and refrigerator. Team members can then use this area would be a stack-ranking system in which a fixed
for refreshments and group interaction. percentage of workers must be classified as bottom
Recognizing the contribution of a shared physi- or poor performers, regardless of the team’s overall
cal facility to promoting teamwork, many organiza- performance.36
tions have incorporated more open working space into
the workplace, often eliminating private offices and Initiating Ritual and Ceremony
cubicles. Another way to enhance teamwork is to initiate ritual
The use of open office space to enhance collabora- and ceremony.37 Ritual and ceremony afford opportuni-
tion and creativity is frequently accepted uncritically ties for reinforcing values, revitalizing spirit, and bond-
by CEOs and company owners. The noisy, open-floor ing workers to one another and to the team. An example
plans that have become a staple of office life have re- is holding a team dinner whenever the group achieves
ceived many employee complaints. A major problem a major milestone, such as making a winning bid on a
is the assault on privacy and quiet reflection of open major contract. Another formal ritual is to send a team
offices. The architectural firm AKKA notes that the on a retreat to develop its mission and goals and to
open-office layout is fraught with potential distrac- build camaraderie. When the team is working and so-
tions. Among the problems are coworkers chatting or cializing closely together during the retreat—even one
making loud sales pitches, tapping on keyboards, and long day—teamwork is reinforced.
conducting loud personal conversations on their smart-
phones. Another problem is that not everyone has the
Practicing Open-Book Management
same attitudes toward tidiness and cleanliness, creat-
ing discomfort for coworkers.34 A method of getting the company working together as
To counter the potential negative effect on employ- a team is to share information about company finances
ees and productivity, some companies are taking the and strategy with large numbers of employees. In
following measures: adding soundproof rooms; creating open-book management, every employee is trained,
quiet zones; and rearranging floor plans to aid employ- empowered, and motivated to understand and pursue
ees eager to escape disruptions at their desk or table.35 the company’s business goals. In this way, employees
become business partners and perceive themselves to
be members of the same team.
Emphasizing Group Recognition and Rewards In a full form of open-book management, workers
Giving rewards for group accomplishment reinforces share strategic and financial information as well as
teamwork because people receive rewards for what responsibility. The company also shares risks and re-
they have achieved collaboratively. Also, much of work wards based on results, so workers are likely to pull to-
that is accomplished in organizations requires collab- gether as a team so that the company can succeed. 38
oration, so group rewards are justifiable and sensible. The idea is to have a well-informed, partner-oriented,
A warning, however, is that many employees may view high-performance company. Part of keeping workers
switching to a team-based pay plan that places much well informed is for company leaders to host round-
of their pay at risk as an unnerving proposition. Quite table discussions about company financial informa-
often a mix of individual rewards and team rewards is tion. Another approach is to regularly disseminate,
the most effective in terms of morale. by e-mail, information about the company’s financial
The recognition accompanying the reward should progress.
emphasize the team’s value to the organization rather Doug Westerdahl, president and CEO of Monroe
than that of the individual. Recognition promotes team Wheelchair, a company that sells motorized, customiz-
identity by enabling the team to take pride in its con- able wheelchairs, explains how and why the company
tributions and progress. The following are examples of practices open-book management: “We share all our
team recognition: financials with every employee every month. We track
key performance indicators, trend them and share with
● A display wall for team activities such as certificates employees. It helps them feel comfortable that the
of accomplishment, schedules, and miscellaneous company is successful.”39
announcements
● Celebrations to mark milestones such as first-time Selecting Team-Oriented Members
activities, cost savings, and safety records A foundation strategy for achieving good teamwork
● Team-of-the-Month award, with gifts from the orga- is to select members for the team with aptitude, skill,
nization to team members or to the entire team and interest in teamwork. (Selecting team-oriented
members is often a company policy, but it is also an Blending Representatives from the Domestic
action managers can take operating on their own.) A Company and Foreign Nationals on the Team
starting point is self-selection. It is best for the team Cross-cultural considerations enter into enhancing
leader to choose workers who ask to be members of a teamwork as well as in most aspects of leadership. The
team. A person’s record of past team activity can also fact of working with people from your own country as
help one determine whether that person is an effective well as a representative from the country of company
team player. Many managers believe that those who headquarters often enhances teamwork. Perhaps hav-
participate in team sports now or in the past are likely ing a representative from the parent company, yet still
to be good team players on the job. respecting local talent, creates a spirit of cooperation.
At times, workers will be assigned to the team rather Also, blending cultural differences is appealing to some
than selected by the team leader or team members, workers and might make them more interested in per-
so selecting team-oriented members is not possible. forming as a team.
Among the key criteria for selecting teamwork-oriented A case in point is the experience of Jessica C. Isaacs,
members would be teamwork experience, prior success senior vice president of field operations for a reinsurance
as a team player, and favorable personality traits such division of AIG. She notes: “Every time we’ve opened in
as agreeableness and extraversion. a new country, instead of shipping expats in we’ve seen
Todd Carlisle is now the vice president of people at a transition from that and we’ve started to hire more lo-
BFA Industries. When he was the Google staffing man- cal talent. My best performing teams are teams where
ager, he looked carefully for teamwork preferences and I have lots of local talent sprinkled with some expat or
skills when selecting new employees for the company. foreign talent. Having the balance really optimizes ev-
One of Carlisle’s criteria is simply how likeable the can- eryone’s skill set and opens new opportunities.”41
didates are: “You have to want to take them to lunch The accompanying Leader in Action presents infor-
after the interview. It’s important to hire leaders who mation about the leader of a major insurance company
play well with others, so ask about their experiences who uses several approaches to build teamwork.
working on a team. Their bragging that they convinced
everybody else that they were right or taking credit for
The Problem of Excessive Collaboration
everything are red flags.”40
All the approaches to building teamwork and collabora-
tion described so far in this chapter are valuable if not
Using Technology That Enhances Teamwork pushed to the point whereby collaboration is dysfunc-
Workers can collaborate better when they use infor- tional. Collaboration is necessary for all types of groups
mation technology that fosters collaboration, often and teams to function effectively, but excessive collabo-
referred to as collaborative software. For example, the ration can lower individual and team productivity. For
straightforward act of exchanging frequent e-mail mes- many workers, particularly introverts, time working
sages and instant messages can facilitate cooperation. alone can be critical for recharging and creative prob-
Electronic brainstorming is another example of group- lem solving. In the zeal to foster collaboration within
ware. Virtual teams by their nature rely on information groups, the value of people doing outstanding work by
technology to enhance teamwork. themselves is often forgotten.42 If you are interrupted
Videoconferencing as mentioned in relation to vir- incessantly by text messages or alerts from collabora-
tual teams facilitates teamwork. Geographically sepa- tion software, concentration can suffer.
rated workers can participate in a virtual conference During the pandemic the use of Slack and other
and exchange ideas almost as effectively as in a face-to- collaboration platforms such as Microsoft Teams and
face meeting. An example is TelePresence, an advanced Facebook Workplace surged. From January to April
conferencing system installed in its own offices, cus- 2020, the average amount of time office workers used
tomer offices, and in the homes of company executives. Slack increased to about 120 minutes per day from
Meetings can be called spontaneously and group deci- about 85 minutes. Microsoft Teams found a 72 percent
sions made rapidly without traveling. increase in instant messages from January to March
Social networking might be regarded as the most 2020. Dealing with all these chats and messages proved
far-reaching technology for enhancing teamwork be- to be distracting, and many leaders encouraged less use
cause so many workers can exchange information with of these communication platforms.43 In defense of the
each other and thereby collaborate more extensively. software providers, collaborative software does have
Also, when groups of people can readily see what infor- features to help guard against its overuse.
mation others are exchanging, a spirit of cooperation At many companies, workers assigned to groups
might develop. Even the exchange of jokes and interest- spend about 80 percent of their time in meetings, on the
ing YouTube videos might improve team spirit. phone, and responding to messages. All this time spent

Leader in Action
Tricia Griffith, CEO of Progressive, Emphasizes Building Teamwork

Tricia Griffith has been CEO of Progressive Insurance since to one Wall Street Journal survey, Progressive was the top-
2016, having joined the company twenty-eight years pre- rated company for diversity and inclusion.
viously as an entry-level claims representative. The Pro- Griffith also speaks frequently about the importance of
gressive Corporation is one of the largest providers of bringing the whole self to work. (The term refers to being able
automobile insurance in the United States, and is the na- to express your true identity, or bringing all the components of
tion’s third-largest auto insurer behind Geico and State what makes you who you are to the workplace.) She also says
Farm. The company also insures motorcycles, boats, and that “If you are not yourself, you can’t be a truly great leader.”
RVs, and provides home insurance through select partners. Griffith emphasizes compromise as a way to facilitate a
Progressive also provides insurance in Australia. team working together smoothly. During the pandemic she
Over the years, Griffith held several leadership positions observed how difficult it was for Democrats and Republi-
including chief human resources officer, president of claims, cans to reach a compromise on federal unemployment pay-
president of customer operations, and personal lines chief ments. Griffith said, “If we worked this way as a team, all
operating officer. During her tenure as CEO, Griffith has led of us should be fired. I would not allow that. And my board
Progressive to historic growth. Much of the growth was the wouldn’t allow me to work like that. I’ve been disgusted at
result of Griffith’s strategic approach to increase the com- people not being able to compromise.”
pany’s book of business by bundling home and automobile Griffith has established a reputation for her generosity,
insurance. The classic TV commercials with likeable “Flo” especially with respect to female employees. She readily
also contributed to the surge in the sale of Progressive agrees to meet with women employees who want to speak
policies. with her, stating publicly that she believes personal attention
Griffith’s business acumen, or knowledge of the insur- and encouragement to be important leadership qualities.
ance business, has been a major contributor to Progressive’s Griffith holds a bachelor’s degree from Illinois State Uni-
continuing growth in sales and profits. Yet many employees versity and is a graduate of the Advanced Management Pro-
attribute much of the company’s success to Griffith’s ap- gram at the Wharton School of Business.
proachable and authentic leadership style. She places a
Questions
premium on creating a diverse and inclusive environment
1. What leader actions does Griffith take that appear to be
for all employees, with an emphasis on diverse teams work- related to developing teamwork?
ing together smoothly. The Progressive board of directors is 2. What do you think of Griffith’s opinion that compromise
gender balanced, and works smoothly as a team. According facilitates teamwork?
Sources: Original story based on facts and observations in the following sources: “Tricia Griffith, Chief Executive Officer, Progressive
Insurance,” Business Roundtable (www.businessrounbdtagble.org), 2021, pp. 1–2; Eben Shapiro, “Progressive CEO Tricia Griffith on the
Nation’s ‘Sophomoric’ Political Leaders and the Durability of Flo,” https://time.com, August 16, 2020, pp. 1–4; “Tricia Griffith President
@ Chief Executive Officer,” Progressive (www.proigressive.com), 2021, p. 1; “A Progressive Business Woman,” Chief Executive Officer
(https://ceo,com), May 26, 2021, pp. 1–4; “19: Tricia Griffith, President and CEO 56, Progressive,” Fortune, November 2020, p. 71.
on collaboration leaves little time for all the analytical Offsite Training and Team
work they must perform on their own. The excessive
collaboration often leads to workflow bottlenecks and
Development
employee burnout. The latter stems from the long-term Learning Objective 9.3 Pinpoint the potential contribution
stress associated with the feeling of being behind on in- of outdoor training to the development of team leadership.
dividual work because of the time spent in interacting
with others.44 (Recognize, however, that some workers Cognitive information about strategies and tactics for
want to avoid thinking alone and prefer continuous in- improving teamwork is potentially valuable. People
teraction with others in person or digitally.) reading such information can selectively apply the
concepts, observe the consequences, and then fine-tune includes tightrope walking, gourmet cooking as a team,
an approach. Another approach to developing team- paintballing, scavenger hunts, and even simply having
work is to participate in experiential activities (several meals together regularly. Building or repairing houses for
are presented throughout this text). people in need is popular. Some corporate team-building
The most popular experiential approach to building activities required specialized skills, two of which are
teamwork and leadership skills is offsite training, also NASCAR racing and sailboat and regatta racing.
referred to as outdoor training. Wilderness training is Outward Bound is the best-known and largest out-
closely associated with outdoor training, except that door training program. It offers more than 500 courses
the setting is likely to be much rougher—perhaps in the in wilderness areas in twenty states and provinces. The
frozen plains of northernmost Minnesota. Some forms courses typically run from three days to four weeks.
of outdoor training take place in city parks, as well as in Worldwide, Outward Bound runs about forty-eight
the city itself in order to rehabilitate or build a house. schools on five continents. The Outward Bound Pro-
Both outdoor and wilderness training are forms fessional Development Program, geared toward orga-
of learning by doing. Participants are supposed to ac- nizational leaders, emphasizes teamwork, leadership,
quire leadership and teamwork skills by confronting and risk taking. The wilderness is the classroom, and
physical challenges and exceeding their self-imposed the instructors draw analogies between each outdoor
limitations. The goals of offsite training are reasonably activity and the workplace. Among the courses offered
consistent across different training groups, including are dog-sledding, skiing and winter camping, desert
the following: backpacking, canoe expeditions, sailing, sea kayaking,
alpine mountaineering, mountain backpacking and
● Discover your strengths and weaknesses
horse-trailing, and cycling.
● Test your limits (they are far broader than you Rope activities are typical of outdoor training. Par-
imagine) ticipants are attached to a secure pulley with ropes;
● Work together as a team then they climb up a ladder and jump off to another
● Have fun spot. Sometimes, the rope is extended between two
trees. Another activity is a trust fall, in which each
● Face the essence of who you are and what you are
person takes a turn standing on a platform and falling
made of
backward into the arms of coworkers. The trust fall
can also be done on ground level. Many readers of this
Features of Outdoor and Offsite book have already participated in a trust fall. Leader-
ship Skill-Building Exercises 9-2 and 9-3 present offsite
Training Programs
activities, with 9-2 being rare, and 9-3 quite frequent.
Program participants are placed in a demanding out- The most extreme form of offsite training is wil-
door environment, where they rely on skills they did derness adventure expeditions, in which participants
not realize they had and on one another to complete trek through the wilderness. One example is arriving
the program. The emphasis is on building not only at a remote island, with no cell reception, and being
teamwork but also self-confidence for leadership. handed a tent, stove, and kayak paddle. As a result,
Sometimes lectures on leadership, self-confidence, and the participants are forced into new patterns of action
teamwork precede the activity. The list of what consti- and working style. These programs place participants
tutes a team-building activity continues to grow and now in complex, unfamiliar, jungle-like environments that
The Team Leader Candidates

Gather in a group of about six people, on your own or in will address the rest of the team explaining why that person
front of the class. Your group is to carry out a mission that should be chosen as the team leader. After the presenta-
all members can visualize, such as the product development tions are completed, hold a brief group discussion about the
team for a consumer electronics manufacturer. Management effectiveness of the presentations. Attempt to reach con-
has empowered you to select your own team leader, and sensus about which candidate should be chosen as team
each of you would like to be chosen for the position. After leader. Also, reflect on what this exercise demonstrated
being given about fifteen minutes to prepare, each person about team leadership and teamwork.
The Good Samaritans

The Good Samaritans (“people helper”) exercise will have you want to help. Explain that you are a team of problem
to be performed outside of a classroom setting, and could solvers who work for free for the good of society (and, per-
require transportation expenses of a few dollars, as well a haps as a class assignment).
few hours. Select a team of about four people to look for After you have worked on the problem, hold a debriefing
one or more people needing help in a public setting, such session on how well you worked as a team. Answer such
as a mall parking lot, a park, or a neighborhood. Examples questions as the following: Did you assign tasks based on
of situations needing help could be removing snow from a relevant skills within the group? How cooperatively did you
driveway, loading packages into an automobile, controlling work with each other? Did working as a team save any time,
a child’s temper tantrum, or getting a parallel-parked car out or make the task easier? Did a team leader emerge to help
of a tight space. Introduce yourself to the person or persons the members work collectively?
require collaborative decision-making. The ongoing in- the most important are greater self-confidence, appreci-
teractions are designed to build camaraderie and create ating hidden strengths, and learning to work better with
a team norm of open discussion and honest feedback. others. Strong proponents of outdoor training believe
The trust of teammates that develops might last long that those who do not appreciate the training simply
after the expedition ends. do not understand it. Many training directors also have
The developers of the wilderness expedition pro- positive attitudes toward outdoor training. They believe
gram, Christopher G. Myers and Mike Doyle, both of the that a work team that experiences outdoor training will
Johns Hopkins Carey Business School, emphasize that work more cooperatively back at the office.
the experience provides continuous, multisource feed- Many people, however, have legitimate reservations
back. During the expedition courses, students receive about outdoor training. Although outdoor trainers
considerable feedback on their leadership performance claim that almost no accidents occur, a threat to health
and development. The work of the expedition itself pro- and life does exist, and groin injuries are frequent. (To
vides useful feedback, such as whether the team ends up help minimize casualties, participants usually need
on the map where it is supposed to. Nightly debriefing medical clearance.) Another concern is that the team-
meetings are conducted for the team, with peer feed- work learned in outdoor training does not spill over
back partners providing each participant with observa- into the job environment.
tions about how they performed during the adventure.45 A major concern about offsite training is that some
(A human resource manager organizing such a leader- participants or potential participants find it repelling.
ship development program should first advise partic- Not every worker wants to play games, climb rocks, or
ipants that conveniences such as restrooms, showers, prepare a gourmet meal with coworkers after hours.
and heated sleeping facilities will not be available.) They would prefer a more natural, relaxing environment
Outdoor training enhances teamwork by helping in which to build teamwork, such as doing volunteer
participants examine the process of getting things done work or having a family day at the workplace.46 An ex-
through working with people. Participants practice treme example of a poor choice of offsite activities was
their communication skills in exercises such as rap- a company that flew twenty managers to London for a
pelling down a cliff by issuing precise instructions to stay at an expensive hotel. The group was trained to do
one another about how to scale the cliff safely. At the the haka, a traditional war dance, by a group of Maori
same time, they have to learn to trust one another be- tribe members from New Zealand. The exercise aimed
cause their survival appears to depend on trust. to build relationships and bolster team spirit, and
therefore improve collaboration. Instead, it fostered
Evaluation of Offsite Training embarrassment and cynicism.47
One way to facilitate the transfer of training
for Team Development
from outdoors to the office is to hold debriefing and
The merits and drawbacks of office site or outdoor train- follow-up sessions. Debriefing takes place at the end
ing lack scientific verification. Many outdoor trainers of outdoor training. The participants review what
and participants believe strongly that they derive sub- they learned and discuss how they will apply their les-
stantial personal benefits from outdoor training. Among sons to the job. Follow-up sessions can then be held
periodically to describe progress in applying the in- Different Quality Relationships

sights learned during outdoor training.
Leaders do not typically use the same leadership style
in dealing with all group members. Instead, they treat
each member somewhat differently. The linkages (re-
The Leader-Member Exchange lationships) that exist between the leader and each
Model and Teamwork individual team member probably differ in quality. In
theory, the differences lie on a continuum of low quality
Learning Objective 9.4 Articulate how the leader– to high quality. With group members on the top half of
member exchange model contributes to an understanding the continuum, the leader has a good relationship; with
of leadership. those on the lower half of the continuum, the leader has
a poor relationship. Each of these pairs of relationships,
The leader–member exchange model, developed by
or dyads, must be judged in terms of whether a group
George Graen and associates, helps explain why one
member is in or out with the leader. The positive regard
subgroup in a unit is part of a cohesive team but an-
that leaders and members have for each other is a major
other group is excluded.48 The theory, already mentioned
contributor to the quality of their relationship.49
several times in this text, deals with the relationship
A note of caution about LMXs is that evidence
between a leader and a team member. However, the same
suggests that the leader and the group members may
theory tells us a lot about the development of teamwork.
perceive the quality of the exchange differently.50 For
The leader–member exchange (LMX) model pro-
example, the leader might think the exchange is posi-
poses that leaders develop unique working relationships
tive, whereas the subordinate might think the exchange
with group members. One subset of employees, the in-
is neutral or negative. Because of this difference in per-
group, is given additional rewards, responsibility, and
ception, the leader should look carefully for evidence of
trust in exchange for their loyalty and performance. The
the quality of a relationship with a given subordinate.
in-group becomes part of a smoothly functioning team
headed by the formal leader. In contrast, the out-group
employees are treated in accordance with a more for- Treatment of In-Group Versus Out-Group Members
mal understanding of leader–group member relations. In-group members are invited to participate in important
Out-group members are less likely to experience good decision making, are given added responsibility, and are
teamwork. privy to interesting gossip. Members of the out-group are
Figure 9-1 depicts the major concept of the LMX managed according to the requirements of their employ-
model. Here we look at several aspects of LMX as it ment contract. They receive little warmth, inspiration,
relates most closely to teamwork. LMX has also been or encouragement. In-group members tend to achieve a
researched in relationship to many other aspects of higher level of performance, commitment, and satisfac-
workplace behavior, and published research about tion than do out-group members. Furthermore, they are
LMX continues to expand. less likely to quit. A study conducted in a retail setting
found that when the quality of the LMX is high, group
members are more strongly committed to company
goals.51 In turn, this commitment leads to stronger team-
In-Group work because the workers pull together to pursue goals.
Members
(Better quality
relationships fosters Reciprocity Between Leader and Members
good teamwork.)
The in-group versus out-group status also includes an
element of reciprocity or exchange. The leader grants
more favors to the in-group member, who in response
Team Leader works harder to please the leader, a contributor to be-
ing a good team player. Two studies provide more spe-
cific information about the consequences of a positive
Out-Group exchange between a supervisor and group members. In
Members
a hospital setting, positive exchanges involved group
(Poorer quality
relationships members’ engaging in increased good citizenship be-
fosters poor or havior and in-group role behaviors such as putting
neutral teamwork.) extra effort into performing their duties.52 As a result,
the leader would feel justified in granting the in-group
members more resources, such as a larger salary in-
Figure 9-1 The Leader–Member Exchange Model. crease or a larger budget.
The Leader-Member Exchange Model and Teamwork 241
Satisfaction with Teamwork their supervisors. An example of a transformational re-

A study conducted with both public-sector and pri- lationship would be inspiring the subordinate to seek
vate-sector nurses in Iran provides direct support for different perspectives when solving problems or bring-
the idea that LMX is related to teamwork. The findings ing about change. Transformational effects also tie in
suggested that the higher the satisfaction with relation- with teamwork because the workers become energized
ships with the supervisor, the higher the level of satis- to jointly accomplish goals.56
faction with teamwork. A secondary finding was that
nurses who were more satisfied with teamwork expe-
Leader Status
rienced better clarity about their roles in dealing with When group members perceive leaders to have high status,
patients. Expressed differently, lower satisfaction with it is easier for the leader to form the type of high-quality
teamwork was associated with more role ambiguity in relationships that contribute to good teamwork. A study
dealing with patients.53 of 184 bank employees and forty-two managers found
that leaders who were perceived to have higher quality
Extra-Role Behavior relationships with their bosses and who were strongly
connected to network members were regarded as having
A study conducted in diverse industrial settings also
relatively high status. As a result, the leaders were able to
found that high-quality exchanges between supervisors
have higher quality exchanges with their subordinates.57
and employees contribute to employees’ engaging in ex-
tra-role behavior, or being cooperative in ways that were
not expected of them. Supervisory ratings of employee First Impressions
altruism were used to measure helping behaviors, as
The leader’s first impression of a group member’s com-
when an accountant helps a sales representative prepare
petency plays an important role in placing the group
a sales forecast. The researchers concluded that through
member in the in-group or in the out-group. Another
the development of high-quality relationships with
key linking factor is whether the leader and team mem-
group members, supervisors are able to motivate the
ber have positive or negative chemistry. We can assume
group members and enable them to engage in helping
that group members who make effective use of influ-
behaviors that benefit them as well as their coworkers.54
ence and political tactics increase their chances of be-
coming members of the in-group.
Safety Performance
A field study seems to confirm that first impres-
Another contribution of positive LMXs is that they sions make a difference. The researchers gathered rat-
facilitate good safety performance, an important as- ings of six aspects of the manager–group member dyad.
pect of teamwork in many work environments. Sixty- Results showed that the initial leader expectations of
four group leaders in a manufacturing plant partici- members and member expectations of the leader were
pated in a study. A major finding of the study was that good predictors of the LMXs at two weeks and at six
positive LMXs were associated with more communica- weeks. Member expectations of the leader also accu-
tion about safety. The enhanced communication led to rately predicted member assessments of the quality of
more commitment to safety, which in turn led to fewer the LMX at six months. An important interpretation of
accidents on the job.55 these results is that the LMX is formed in the first days
of the relationship.58 As the adage states, “You have
Transformational Effects only one chance to make a good first impression.”
Another of the many consequences of positive LMXs is In summary, the LMX model provides a partial ex-
that they may facilitate the leader having a transforma- planation of teamwork development. Members of the
tional effect. A study of 283 individuals from a broad in-group work smoothly together and with the leader
cross section of job types indicated that transforma- because they feel privileged. Being a member of the
tional relationships were significantly stronger for fol- out-group may not diminish teamwork, but it certainly
lowers who perceived high-quality relationships with does not make a positive contribution.
Reader’s Roadmap
The techniques for developing teamwork are part of a leader’s relationship with the group, as is the subject of the next
chapter, motivational skills.
Summary
Developing teamwork is a key leadership role. (5) selecting team-oriented members; (6) using
Teamwork is an understanding of and commitment technology that facilitates teamwork; and (7) blend-
to group goals on the part of all group members. ing representatives from the domestic company and
Leaders still play an important role in a team- foreign nationals on the team.
based organization, starting with the idea that Building teamwork and collaboration is valu-
the CEO and other leaders attempt to build able if not pushed to the point whereby collabora-
high-performing teams. Other roles include being tion is dysfunctional. Excessive collaboration can
expert in the team process, being facilitators, build- lower individual and group productivity. Time alone
ing trust and inspiring teamwork, and enabling can be important for creativity and analytical think-
and empowering group members to accomplish ing. Communication platforms can drain productiv-
their work. The enabling role centers on empower- ity if used too frequently.
ment. It is important for top-level leaders to build a In offsite training, a popular experiential ap-
shared collective identity among the teams report- proach to building teamwork and leadership skills,
ing to them. The external leader of a self-managing building self-confidence is the focus. Outdoor train-
team plays a key role when the team faces disrup- ing enhances teamwork by helping participants
tive conditions. examine the process of collaboration. The Out-
A wide range of leader actions fosters team- ward Bound Professional Development Program is
work. Measures leaders can take using their own geared toward organization leaders. The most ex-
resources include the following: (1) defining the treme form of offsite training is wilderness adven-
team’s mission and tasks; (2) establishing a climate ture expeditions. Opinion about the effectiveness of
of trust; (3) developing a norm of teamwork based outdoor training for developing teamwork and lead-
on cooperation theory; (4) developing group emo- ership skills is mixed. Concern has been expressed
tional intelligence; (5) emphasizing pride in being that the skills learned in the field do not carry over
outstanding; (6) serving as a model of teamwork, to the workplace.
including power sharing and collective leadership; The LMX model helps explain why one subgroup
(7) using a consensus leadership style; (8) establish- in a work unit is part of a cohesive team and another
ing urgency, demanding performance standards, unit is excluded. According to the model, leaders
and providing direction; (9) encouraging competi- develop unique working relationships with subor-
tion with another group; (10) interacting with the dinates. As a result, in-groups and out-groups are
team and providing positive feedback and recog- created. Members of the in-group tend to perform
nition; (11) minimizing micromanagement; and better, have higher satisfaction, and exhibit more
(12) practicing e-leadership for virtual teams. teamwork than members of the out-group. LMX has
Techniques to foster teamwork that require re- effects on reciprocity between leaders and members,
lying on organization structure or policy include satisfaction with teamwork, extra-role behavior’
the following: (1) designing physical structures that safety performance, and transformational leader-
facilitate communication; (2) emphasizing group ship. The leader’s first impression of a group mem-
recognition and rewards; (3) initiating ritual and ber’s competency plays an important role in placing
ceremony; (4) practicing open-book management; that person into the in-group or the out-group.
Key Terms
team 226 micromanagement 232 leader–member exchange
teamwork 226 e-leadership 233 (LMX) model 240
intergroup leadership 227 gig economy 233
cooperation theory 229 open-book management 235
When attempting to develop teamwork, the leader its potential negative side effects. From the orga-
would ordinarily be thinking of coaching individual nizational standpoint, too much collaboration can
team members to be more effective team players. drain time from independent thought and action.
Some research, however, suggests that teamwork is A small example is the time required to respond
more likely to be enhanced when the team leader to every alert from collaborative software, such as
coaches the team as an entity.59 For example, the a team member somewhere making a tiny input to
team leader might meet with the group physically the project. As a leader it is worthwhile to analyze
or through an internal website, and say, “I don’t no- whether there is an optimum amount of collab-
tice you folks offering each other enough construc- oration in the group. You might need to decrease
tive feedback. In an effective team, the members collaboration where it is not necessary, and make
learn from each other.” collaboration more efficient when it is needed. For
Organizations are based on collaboration, and example, no need to inform fifty people that you
most leaders and many leadership researchers are resolved a customer complaint about merchandise
so enamored with collaboration that they neglect that was damaged upon shipment.
Discussion Questions and Activities versus an “independent thinker.” What is your

1. What would be the potential disadvantages of se- opinion of the validity of this distinction?
lecting a team leader who is highly charismatic and 6. At the hamburger chain, Five Guys, each member
visionary? of the top-management team wears khaki pants
2. Some top-level managers prohibit or discourage and a polo shirt with the Five Guys logo. What im-
workers from telework (including working from pact do you think this practice has on teamwork?
home and other remote locations) because they 7. As the team leader, should you make an effort to
think such activity interferes with teamwork. What speak more clearly and use better grammar than
is your opinion on this issue? the team members? Explain your reasoning.
3. Considering that many CEOs are chosen for their 8. What is your opinion of the value of experience in
position because of their strategic thinking and team sports for becoming a good team player in
transformational leadership ability, how important the workplace?
is it for these CEOs to be outstanding team players? 9. Explain whether you would be willing to partici-
4. Is there a role for independent-thinking, decisive, pate in a wilderness adventure expedition as part
and creative leaders in a team-based organization? of your leadership development.
Explain. 10. How can political skill help a person avoid being
5. When evaluating candidates, some hiring manag- adversely affected by the leader–member exchange
ers draw the distinction between a “team player” model?
Jade Wants to Build an Effective evaluation, employee benefits, and training

Virtual Team and development. To reduce real-estate costs as
Jade is the team leader for training and de- well as attract a wide range of talent, HRGO
velopment at HRGO, a human resources out- relies heavily on virtual teams. As Jade says,
sourcing firm that provides a variety of human “You can custom design a safety training pro-
resources services to other companies. Among gram from your basement as well as in an
these services are payroll administration, job office building.”
Despite Jade’s enthusiastic comments about going as she works from her kitchen table in
HRGO teams working remotely, she has some Burlington, Vermont. She also mentioned that
concerns about how well her team is working the only time she hears from me or any other
collaboratively, and how quickly they are deliver- team member is when they think she is late with
ing results. When CEO Cassandra asked Jade to her input.
give her a few examples of the problems she was “I then focused in on Troy to see how far
facing, Jade offered these scenarios: along he was in laying out the modules for the
“We had a Zoom conference last week to cloud-computing training program. Troy said he
discuss building a brief training program in had laid out the format but without input from
cloud computing for a client. I asked IT special- the other team members, the format was only a
ist Duff what he thought about the feasibility skeleton.
of the program. About two minutes into Duff’s “At this point in our Zoom conference I was
presentation Zorro, his Labrador, starts barking getting a little frustrated, so I made a suggestion
loudly, and won’t stop. The four other members for picking up team spirit. I asked the group if
at the conference start laughing. Duff apol- a virtual team happy hour next Friday afternoon
ogizes, and says that Zorro was frightened by would work. I heard a lot of cheers, but then we
lightning and just won’t shut up. Duff said he got into a ten-minute discussion about having a
would get back to the meeting after he calmed happy hour across three time zones. We finally
down Zorro. settled on 4 p.m. U.S. Central Time even if it
“Next, I asked Melissa if she had assembled meant our west coast member having a few beers
the information from the client about which as- in the middle of the workday.”
pects of cloud computing were the most import-
ant for their business. Melissa said she hadn’t Case Questions
made much progress because she needed some
1. What suggestions can you offer Jade for de-
background information that Duff and Lisa (an-
veloping a more effective virtual team?
other virtual team member) had not yet pro-
2. What role might a virtual happy hour have in
vided her.
building team spirit and collaboration?
“Duff was still trying to calm down Zorro,
3. The barking dog incident may be humorous,
so I asked Lisa when she was going to provide
but it is a frequent problem with virtual meet-
Melissa the input she needed. Melissa said that
ings. Any suggestions for dealing with Zorro?
it has been difficult for her to get momentum

One student plays the role of Jade who decides to lead member should have a casual attitude toward virtual
another Zoom team meeting. Her intent this time is work, thinking that standards should be more lax than
to get the team more focused on the task and more in a traditional work environment. Jade, however,
time conscious. Four other students play the roles takes her role as team leader at HRGO quite seriously
of virtual team members. The attitude of the team and wants to deliver good results for the company.
member is up to the role player, yet at least one team Ten minutes should suffice for this role play.
Should We Dump the Open-Plan Office? some of older workers. Three people over fifty
Jason is the CEO of an advertising agency with have quit in the last month. They say that listen-
125 employees. The agency helps its client develop ing to constant chatter and smartphones beeping
advertising and marketing themes and place ads may be okay for millennials, but they find it to
in all media including print, the Internet, and mo- be overwhelming. I guess that some of our older
bile apps. Jason is pleased with productivity at the workers prefer tranquility to noise when it comes
agency, yet he believes with stronger teamwork in to doing serious work.”
all departments, productivity would be enhanced. Tony, the highest paid advertising copywriter
Jason has read and heard a lot in recent years told Jason directly, “You have got to stop this in-
about the teamwork benefits of an open-plan of- sanity of open-office space. It might work for office
fice or an open-office space. An online comment routine, but it’s a disaster for creative output. How
made by Mark D. Okerstrom, the chief financial can you expect me to be creative in the midst of
officer (CFO) of Expedia, particularly impressed people talking, phones ringing, and people stop-
him: “Modern tech workers want an office that ping by my table to discuss sports and TV shows?
puts collaboration opportunities front and center.”* When I’m trying to develop an advertising or mar-
Jason thought that his advertising firm required keting theme for a client, I try to use one of our
perhaps even more collaboration than an on- two conference rooms. The rooms are usually
line travel agency, such as Expedia. He then care- filled with somebody else trying to escape the open
fully evaluated the openness of the agency’s office space, so I might have to go to my car or work from
space, working with Baxter, the director of admin- home. We don’t have a telecommuting program so
istration. Jason noted that about two-thirds of the coming to the office late is a little awkward.”
agency employees were assigned to cubicles, and a Konrad, a specialist in purchasing advertis-
few to private offices. He decided to make a major ing space for clients, wrote an email to Jason,
structural change to the office layout, enlisting the that included these comments: “Working in an
help of Baxter, and an outside office-design special- open-plan office space has actually alienated me
ist, Kaitlin. The new open-plan office was installed a little from my colleagues. It’s like we all working
over a four-day period, including a Saturday and together in a subway. Even smelling the cologne
Sunday. Jason himself moved from his private of- and perfume of my coworkers is a little annoy-
fice to a desk in the center of the open-work area. ing. Talking on the phone to a media person can
Before making the changes, Jason sent an be difficult also because of all the buzzing around
email to the entire staff with the explanation that me. When is this experiment going to end?”
the purpose of the new office layout was to en- Jason then found a report on the Internet from
hance teamwork, collaboration and creativity. He a firm of architects that made him think further
welcomed feedback on the new plan, and also about the potential pitfalls of the open-plan office.
stated that the new office layout would be tried One conclusion reached was that “Open-plan offices
for one year before becoming permanent. Jason can definitely create uncomfortable situations for
received back a handful of comments. A few of employees who use them and consequently pose
the comments welcomed the opportunity to be- problems for management and hinder the positive
come a more modern office, whereas a few oth- effects of collaboration and social bonding.”**
ers expressed concern about a potential negative
impact on creativity and morale. Questions
As the weeks passed under the new plan, a few 1. How might CEO Jason make better use of
workers casually mentioned that they enjoyed the office space to promote teamwork?
opportunity to have more frequent face-to-face 2. To what extent are the workers opposed to the
interaction with colleagues. In contrast, many open-plan office simply being inflexible?
more negative comments about the new open- 3. Identify several rules Jason might introduce
plan office space surfaced. that would make the open-plan office more
Sarah, the supervisor of media placements conducive to effective teamwork.
told Jason, “The open-office plan is driving out
**Quote from “The Most Common Problems Millennials Experi-
*Quoted in “View from the Top,” The Wall Street Journal, May 31, ence in an Open Plan Office,” AKKA Architects (www.akkaarchitects
2016, p. B1 .com), January 23, 2020, p. 1.

In this group role play, six students are sitting at the the theme by late this afternoon. The role players
same table at the advertising agency described in the want to collaborate as much as possible but an ad-
case. The group task is to develop a catchy advertis- vertising theme for the biscuits must be found. Run
ing theme for a client who wants to promote a new the role play for about ten minutes, and other class
type of dog biscuit that removes plaque from the members will provide feedback about the teamwork
teeth of dogs. Time is short because the client wants and creativity.
Now that you have studied a basketful of ideas about en- meetings, and the club seems headed nowhere. So,
hancing teamwork, you can add to your skill repertoire by at our last meeting, I suggested that we devote the
implementing a few of these tactics. The next time you are entire meeting to building a mission statement. I ex-
involved in group activity, either as the leader or as a group plained that if we knew what our purpose was, maybe
member, attempt to enhance cooperation and teamwork we would pull together better. We are still working on
within the group. Make specific use of at least two of the the mission, but so far it has to do with enhancing
recommended tactics for improving teamwork. Make an en- the impact and reputation of Latino business leaders.
try in your journal after your first attempts to enhance team- I also suggested that we invest in T-shirts with a logo
work. Here is an example: we could be proud of. This idea may sound hokey,
I am the head of the Latino Business Club at our but the group really rallied around the idea of building
college. Attendance hasn’t been too great in recent unity through new T-shirts.
The Trust Fall

Perhaps the most widely used team-building activity is the would prefer not to fall back into others or participate in
trust fall, which may be familiar to many readers. Neverthe- catching others are unconditionally excluded. However, they
less, each application of this exercise is likely to produce new can serve as observers. After the trust falls have been com-
and informative results. The class organizes itself into teams. pleted, a team leader gathers answers to the following ques-
In each team, each willing member stands on a chair and falls tions and then shares the answers with the rest of the class.
back into the arms of teammates. A less frightening alterna- 1. How does this exercise develop teamwork?
tive to falling off a chair is to simply fall backward standing up. 2. How does the exercise develop leadership skills?
Team members who, for whatever physical or mental reason, 3. What did the participants learn about themselves?
Notes
1. Original story based on facts and observations in Bethesda – MD, USA,” HN hospitality.net (www
the following sources: Craig Karmen, “Marriott .hospitalityhnet.org), February 23, 2021, p. 1;
Picks Insider as New CEO,” The Wall Street Journal, “Marriott Names Anthony Capuano New CEO,
February 24, 2021, pp. B1, B6: “Anthony Capuano President,” Associated Press, February 23, 2021,
Named CEO At Marriott International, Inc. in pp. 1–3; “Marriott International Appoints Anthony
Notes 247
Capuano as New CEO And Stephanie Linnartz as 17. Adam Grant, “Givers Take All: The Hidden Dimen-
President,” Marriott International (https://news sion of Corporate Culture,” McKinsey Quarterly,
.marriott.com), February 23, 2021, pp. 1–4; “Travel April 2013, pp. 1–10.
with Confidence During COVID-19,” http://clean 18. Ha Hu and Robert C. Liden, “Making a Difference
.marriott.com, 2021, p. 12. in Teamwork: Linking Team Prosocial Motivation
2. Edwin A. Locke and Associates, The Essence of to Team Processes and Effectiveness,” Academy of
Leadership: The Four Keys to Leading Successfully Management Journal, August 2015, pp. 1102–1127.
(New York: Lexington/Macmillan, 1991), p. 94. 19. Vanessa Urch Druskat and Steven B. Wolff, “Build-
3. Jon R. Katzenbach and Douglas K. Smith, “The ing the Emotional Intelligence of Groups,” Harvard
Discipline of Teams,” Harvard Business Review, Business Review, March 2001, pp. 80–90.
March–April 1993, p. 112. 20. Paul S. George, “Teamwork Without Tears,”
4. Robin L. Flanigan, “Teamwork, Says Veterinary Personnel Journal, November 1987, p. 129.
Assistant, Always Saves the Day,” Democrat and 21. Peter Pronovost and Eric Vohr, Safe Patients, Smart
Chronicle, March 6, 2016, p. 2E. Hospitals (New York: Hudson Street Press, 2010).
5. Quoted in Scott Keller and Mary Meaney, 22. Jon R. Katzenbach and Douglas K. Smith, “The
“High-Performing Teams: A Timeless Leadership Discipline of Teams,” pp. 118–119.
Topic,” McKinsey Quarterly (www.mckinsey.com), 23. Michael Mankins, Alan Bird, and James Root,
June 2017, p. 1. “Making Star Teams Out of Star Players,” Harvard
6. Peter Hawkins, Leadership Team Coaching: Col- Business Review, January–February 2013, pp. 77–78.
lective Transformational Leadership (London and 24. “Improve Your Team’s Performance by Turning Up
Philadelphia, PA: Kogan Page Limited, 2011). the Stress,” The Management Tip of the Day from
7. Michael A. Hogg, Daan Van Knippenberg, and Harvard Business Review, September 20, 2016, p. 1.
David E. Rast III, “Intergroup Leadership in Or- 25. Amy C. Edmonson, “Teamwork on the Fly,” Harvard
ganizations: Leading Across Group and Organi- Business Review, April 2012, p. 78.
zational Boundaries,” Academy of Management 26. “A New CEO Asked Just 4 Questions,” Executive
Review, April 2012, pp. 232–255 Leadership, May 2013, p. 5.
8. Frederick P. Morgeson, “The External Leadership 27. Shibeal O’Flaherty, Michael T. Sanders, and Ash-
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jective Performance, Employment Duration, and
10
Chapter
Motivation and
Coaching Skills
Learning Objectives
After studying this chapter and doing the exercises, you 10.5 Describe coaching as an approach to motivation.
should be able to 10.6 Clarify the characteristics of coaching and how to
10.1 Describe the leader’s role in employee engagement. practice coaching skills and techniques.
10.2 Characterize leadership skills linked to expectancy theory. 10.7 Identify how executive coaches help enhance
10.3 Describe goal theory. leadership skills.
10.4 Articulate how leaders can motivate others through

recognition and pride.
Chapter Outline
Leadership and Employee Engagement Appealing to Pride

The Impact of Worker Engagement on Productivity Coaching as an Approach to Motivation
Meaningful Work for Employee Engagement Key Characteristics of Coaching
Relationship with Leader and Employee Engagement Coaching Skills and Techniques
Expectancy Theory and Motivational Skills Executive Coaching and Leadership Effectiveness
Basic Components of Expectancy Theory Specific Forms of Assistance Provided by Executive
Leadership Skills and Behaviors Associated with Expectancy Coaches
Theory Contributions of and Concerns About Executive Coaching
Goal Theory Summary
Basic Findings of Goal Theory Key Terms
The Importance of How Goals Are Attained and Other Concerns Guidelines for Actions and Skill Development
Using Recognition and Pride to Motivate Others Leadership Case Problem A
Appealing to the Recognition Need of Others Leadership Case Problem B
Recognizing Group Members by Thanking Them and Notes
Expressing Gratitude
E
lizabeth Gaines is the chief executive officer (CEO) of 2018. Gaines is the first woman to be the chief executive offi-
the Perth, Australia-based Fortescue Metals Group cer of a major publicly listed mining company. During her ten-
(FMG), the world’s fourth largest iron ore mine. She ure as CEO, the company has experienced substantial growth
was the company CFO for one year before becoming CEO in in revenue and profits.
249
250 Chapter 10 Motivation and Coaching Skills
Gaines believes that the growth of Fortescue goes beyond Gaines continues to push FMG forward. The company
market forces stimulating the industry. She explains that “stretch began by mining iron ore, and she is now driving a new direc-
targets” (difficult-to-attain goals that are still feasible) have al- tion. FMG is exploring options like hydrogen energy in Western
ways been a hallmark of Fortescue. Goal setting is also built into Australia, as well as other minerals such as copper and gold in
FMG’s continuous improvement in processes, with the goal being South America.
to keep on making small improvements. A major environmental As FMG worked through the turbulent period of the
goal for the company is to attain net zero operational emissions COVID-19 pandemic, Gaines referenced the “fantastic FMG cul-
by 2040, a decade ahead of the commonly cited 2050 timetable. ture shining through.” She credits founder and chairman Andrew
Gaines notes that the mining company has now doubled the Forrest with building that culture in 2003 when FMG was just a
number of products it offered a few years ago, from three to six, small group of people with a big vision. The culture is still rele-
including the first ore with a purity grade of higher than 80 percent. vant today with more than 14,000 people working across multi-
In addition to goal setting, Gaines acknowledges that teamwork ple sites and countries. Gaines says that the culture includes the
has contributed heavily to the success of FMG. “As a team, we’ve ability to band together to make difficult changes. An example
worked really well together,” she says of the company workforce. of such a change was adjusting workforce rosters to limit the
Gaines’ deputy CEO is also a woman, as are over 25 per- movement of people and the potential spread of the coronavirus.
cent of company executives and half of the board of directors. As part of the change, some FMG workers had to be on-site and
Gaines says that women “are key to helping us reach our stretch away from their families for a four-week stretch to limit the move-
goals.” As part of goal setting on a lofty scale, the Fortescue vi- ment of people and potential spread of COVID-19 pandemic.
sion is to become the safest, lowest cost, most profitable mining Gaines has a strong track record in financial and opera-
company. Gaines emphasizes that her priority at work is safety, tional leadership across several industries, including resources,
and she wants “to empower the entire Fortescue family to look construction and infrastructure, financial services, and travel and
out for their mates.” (As many readers know, “mate” is a popular hospitality. Gaines holds a bachelor of commerce and a master
Australian term for “coworker.”) of applied finance from Curtin University in Perth, Australia.1
This story about the mining company executive illus- their work and excited about working for the organiza-
trates the importance of leaders setting difficult goals tion. Engagement is the buzzword for the commitment
to motivate the workforce. In this chapter, we approach workers make to their employer. The term generally re-
motivation and coaching skills from various perspectives. fers to high levels of personal investment in the tasks
First, we take an overview of motivation by explaining performed on a job.2 Engagement centers on an indi-
the leader’s role in employee engagement. We then ex- vidual’s involvement, satisfaction, commitment, and en-
amine first how leaders make effective use of expectancy thusiasm for work. The engaged worker has a positive
theory, recognition, and goal setting to motivate group motivational state that propels that individual to find
members. Second, we describe coaching, including a meaning in work.3
description of specific coaching skills and the role of the Later in this section, we describe how leaders can
executive coach. Most readers of this book have already enhance employee engagement through making work
studied motivation, so here we describe how it is possi- more meaningful. A preliminary observation about the
ble to apply two popular motivation theories rather than impact of leadership on employee engagement comes
repeat a discussion of theories you have already studied, from a study of industrial consultants in the Nether-
such as reinforcement theory or Maslow’s need hierarchy. lands. Using both surveys and individual diaries, it was
found that leaders perceived to be transformational
had a positive impact on worker optimism, resulting in
Leadership and Employee workers experiencing engagement on a daily basis.4
Engagement Gaining employee commitment is especially import-
ant in the current era because a study conducted in 142
Learning Objective 10.1 Describe the leader’s role in countries found that about 63 percent of workers are not
employee engagement. fully engaged in their work. They do what is expected of
them but do not contribute extra mental and physical
A broad purpose of leaders applying motivation and effort to be outstanding. Furthermore, their motivation
coaching techniques is to get employees involved in is low and they are less likely to invest discretionary
Leadership and Employee Engagement 251
effort in important organizational outcomes. The same The Impact of Worker Engagement
study found that 13 percent of employees are engaged,
on Productivity
and 24 percent actively disengaged.5
Leadership Self-Assessment Quiz 10-1 provides you According to Jim Harter, a Gallup research scientist,
an opportunity to think about your own level of en- engagement—or the lack of it—has substantial implica-
gagement in a present or past position. tions for how well business organizations achieve their
Self-Assesment Quiz
10-1
My Work Engagement Tendencies

Indicate the extent to which each of the following statements describes your behavior or attitude by circling one number. The
numbers refer to disagree strongly (DS), disagree (D), neither agree nor disagree (N), agree (A), and agree strongly (AS). Consider
enlisting the help of someone who knows your behavior and attitudes well to help you respond accurately to the statements.
Statement about Job and Work DS D N A AS

1. I feel filled with energy while at work. 1 2 3 4 5
2. My work usually starts to get a little dull after the first couple of
5 4 3 2 1
hours on the job.
3. I am very proud of my work. 1 2 3 4 5
4. I plan to quit my job as soon as a better one comes along. 5 4 3 2 1
5. While at work I often daydream about how nice it would be to be
5 4 3 2 1
retired.
6. My job is a key part of who I am. 1 2 3 4 5
7. I think that helping my coworkers is an important part of my job. 1 2 3 4 5
8. I feel an emotional attachment toward my company. 1 2 3 4 5
9. I look forward to each work day with loads of excitement. 1 2 3 4 5
10. I should really find a different line of work. 5 4 3 2 1
11. The most exciting thing about my job is the fact that I get paid. 5 4 3 2 1
12. I really care about the welfare of my company. 1 2 3 4 5
13. It is really boring answering these questions about my job and work. 5 4 3 2 1
14. Almost every detail of my job interests me. 1 2 3 4 5
15. My job inspires me. 1 2 3 4 5
Scoring and Interpretation: Calculate your score by adding up the numbers circled:
● 60–75: You are intensely engaged and involved in your work and job, which should contribute substantially to your job sat-
isfaction as well as your job performance.
● 30–59: You have an average degree of engagement and commitment in your work and job.
● 15–29: You are below average in work engagement and commitment. Solicit feedback from others to see if this low score
is warranted. If the score is accurate, exercise self-discipline to look for aspects of your work that you find interesting, and
build on these as a foundation to become more engaged in your work.
Source: A few of the statements in the quiz are based on questionnaire items presented in Wilmar B. Schaufeli, Arnold B. Baker, and
Marisa Salanova, “The Measurement of Work Engagement with a Short Questionnaire: A Cross-National Study,” Educational and
Psychological Measurement, August 2006, p. 714.
goals.6 Quantitative evidence points toward the impact opportunity to make an impact in the following four
of employee engagement. The State of the American areas is the most likely to increase the meaningfulness
Workplace report shows that companies with a 9-to-1 of work for employees:
ratio of engaged to actively disengaged employees ex- ● On society—including making a better society,
perience 147 percent higher earnings per share, on av-
building the community, or managing resources
erage, in comparison to their competitors.7
carefully. Millennials, for example, are known to
A key link between leadership, motivation and
care about social issues and find it easier to be en-
coaching techniques, and engagement is that leaders
gaged when their employer is helping address prob-
need to use motivation and coaching techniques to help
lems across the globe.
keep employees engaged. An example of the value of a
coaching technique is that a survey of 1,000 employ- ● On the customer—for example, making life easier
ees revealed that leaders who give positive feedback for customers and providing a superior service or
to employees foster engagement. Furthermore, giving product.
mostly negative feedback is better than no feedback or ● On the workgroup or team—for example, having a
being ignored. A total of 5 percent of employees were sense of belonging, a caring environment, or work-
engaged who believed that supervisors focused on ing collectively in an efficient and effective manner.
their weaknesses (11 percent of employees fell into this ● On themselves—including personal development,
category).8 higher financial compensation, and a sense of
Skill-Building Exercise 10-1 provides you an op- empowerment.10
portunity to develop fresh insights into employee
engagement. A management team at an American financial ser-
vices firm worked to create stories related to these four
sources of impact in order to enhance worker engage-
Meaningful Work for Employee Engagement ment in reducing costs. The society source of impact
Engagement and meaningfulness of work are closely was told in terms of more affordable housing. The im-
related. Research suggests that engagement is a posi- pact on customers was described in relation to increased
tive motivational state directed toward obtaining mean- simplicity and flexibility, fewer errors, and more com-
ingfulness at work.9 A key driver of worker engagement petitive prices. The team impact story was told in terms
therefore is the opportunity to perform meaningful of less duplication of effort, more delegation, increased
work, the feeling of doing work that matters or makes accountability, and a faster pace. Finally, the story about
a difference. Engagement is facilitated when employ- individual impact was related to bigger and more at-
ees understand how their output makes a contribution tractive jobs, an opportunity to build turn-around skills,
to the organization and the larger world. Perhaps no and creating one’s own institution. Within one month,
other aspect of the work environment is more import- the number of employees reporting that they were mo-
ant than meaningful work for feeling committed. The tivated to bring about cost reductions surged to 57 per-
feeling that one’s work has a purpose, or is making an cent from 35 percent, based on morale surveys.11
impact, leads naturally to a state of work engagement. A major way in which leaders can make work
Research by McKinsey and company indicates that the highly meaningful for subordinates is to provide them
Collecting Live Data on Worker Engagement

The purpose of this exercise is to obtain some firsthand person feels that way. After you have collected your inter-
data about worker engagement, and then think through the view data, think through the leadership implications, such as
leadership implications of your findings. Conduct interviews the following:
of about seven minutes in length with the next five work- 1. What could I do as a leader to facilitate group members
ing people you can find, doing any kind of work, at any job getting more engaged in their work?
level. In-person or telephone interviews would be best, but 2. What role did leaders play in helping my interviewees
if necessary use e-mail, text messaging, chat, or social me- get engaged in their work?
dia. Ask each interviewee how much that person feels en- If class time permits, it could prove insightful for class
gaged in or committed to the present job. Also, ask why the members to share some of their findings.
Leadership and Employee Engagement 253
with the opportunity to lead projects or task forces. Nissan Z sports car launched in the mid-1950s that
Such leadership opportunities enhance engagement of had a manual transmission. To Nissan employees, a
the heads of the projects or task forces. According to a car with a manual transmission has a lot of meaning,
McKinsey global survey of 1,047 executives, other man- because it is a major part of the company history. Em-
agers, and employees, the opportunity to lead projects ployees started to feel motivated after seeing the cars.13
or task forces was an extremely or highly effective in- Leadership Self-Assessment Quiz 10-2 gives you an
centive. (A comparable percentage responded that per- opportunity to personalize the concept of meaningful
formance-based cash incentives had the same effect.)12 work and employee engagement.
Makoto Uchida, the CEO of Nissan, provides a con-
crete example of how a leader can help make work
meaningful for employees. Uchida observes that for Relationship with the Leader and Employee
automotive employees to feel secure they must see the
Engagement
cars. Toward this end, company management showed
a video call “A to Z” of Nissan’s new cars. First shown Looking at the leader’s role in enhancing motivation
was Ariya, the company’s new electric car. Next came more broadly, Jean Houston, an Atlanta-based human
the Z sports car prototype, which is a redesign of the resources consultant, makes an important observation.
Self-Assesment Quiz
10-2
How Meaningful Is My Work?

Instructions: Indicate whether you mostly agree or mostly disagree as to how well each of the following statements applies
to your present, or a previous, position. If relating to a job you hold or have held is not sensible, relate each of the statements
to school or volunteer work.
Mostly Mostly
Statement about The Work and/or Job Agree Disagree
1. When I am at work, the time flies by quickly.
2. My job gives me as much pleasure as participating in my favorite pastime.
3. The work I do really helps other people.
4. The work I do really has an impact on society.
5. I feel totally absorbed in my work.
6. I am so excited about my job.
7. I discover something new and interesting about my job almost every week.
8. My job fills me with energy because it is so exciting.
9. It would make me sad to let my coworkers down.
10. I put a lot of mental energy into my job.
11. I put a lot of physical energy into my job.
12. I would feel guilty if I was too sick to come to work.
13. I don’t care if many celebrities earn much more money than I because my
work is very important.
14. I throw myself into my job.
15. My work helps give me a purpose in life.
(continued)
Quiz5-3
10-2 (continued)
Scoring and Interpretation: The more of the above statements you agree with, the more meaning you have in your work and
your job.
● 12–15: Your work is quite meaningful, and if your attitudes persist, you should have a long and rewarding career.
● 5–11: You have an average degree of meaningfulness in your work and job.
● 1–4: Your work may not be meaningful enough to bring you long-term satisfaction. You are advised to look for ways to
make your work more meaningful, such as looking for new tasks that you perceive as more meaningful.
Source: A few of the statements in the quiz are based on questionnaire items presented in a review of the literature found in Michael S.
Christian, Adela S. Garza, and Jerel E. Slaughter, “Work Engagement: A Quantitative Review and Test of Its Relation with Task Perfor-
mance,” Personnel Psychology, no. 1, 2011, pp. 108–109.
She says that managers can engage their workers by stood out in relation to work. Based on 12,000 diary
seeing them as whole people and having courageous entries, the authors discovered that a feeling of making
conversations that will build trust and see what is re- progress was the key to employee engagement among
ally going on. Houston also encourages managers to these workers.17 An example of a leader providing feed-
learn and use soft skills such as communication, rec- back on worker of progress would be to say, “It looks
ognition, mentoring, and caring because soft skills can like you found a way to reduce energy costs another
have a hard impact.14 (Such is the thrust of this chapter one percent toward our goal of a 25 percent reduction.”
and this book.) A promising understanding of how leaders influ-
According to one survey, 20 percent of respon- ence subordinates to become engaged is through the
dents cited career advancement as a key driver of en- energy people derive from a positive relationship with
gagement. A specific technique for leaders to engage their leader. To personalize this concept, think about
employees is therefore to initiate career discussions, people in your network who energize you to engage in
including advancement opportunities.15 The perception constructive activity. A series of three studies showed
of advancement opportunities is an accepted way of fa- that the relational energy workers derive from their re-
cilitating worker engagement including loyalty to the lationship with their leader prompts them to become
company. more work engaged. Both energy and engagement in
A study conducted in a large multinational tech- the study were measured by questionnaires. Two exam-
nology firm in Brazil found that the employee’s unique ples of “energy” statements were (1) I feel invigorated
relationship with their leader creates follower engage- when I interact with this person, and (2) I would go to
ment. Having a high-quality relationship with the this person when I feel the need to be “pepped up.”18
leader was found to be a more important driver of work The engagement statements were quite similar to those
engagement than was inspirational leadership behav- found in Leadership Self-Assessment Quiz 10-1.
ior. A key finding of the study was that leader–member
exchange (LMX) contributed more to worker engage-
ment than did transformational leadership. A conclu- Expectancy Theory and
sion reached in the study was that a better relationship Motivational Skills
with the leader will cause followers to reciprocate with
higher levels of emotional investment in the job.16 Learning Objective 10.2 Characterize leadership skills
Another illustrative way in which leaders can facil- linked to expectancy theory.
itate engagement among employees is to provide them
feedback on the progress they are making with their Expectancy theory is a good starting point in learn-
work. (Providing feedback can be considered part of a ing how leaders can apply systematic explanations of
leader–member relationship.) Teresa Amabile and Ste- motivation, for two major reasons. First, the theory
ven Kramer gathered and analyzed diary reports from is comprehensive: It incorporates and integrates fea-
238 professional-level workers in twenty-six project tures of other motivation theories, including goal the-
teams from seven companies across three different in- ory and positive reinforcement. Second, it offers the
dustries. The diaries were e-mailed to participants, and leader many guidelines for triggering and sustaining
asked a few questions about the day, including what constructive effort from group members. Although not
Expectancy Theory and Motivational Skills 255
much research is conducted about expectancy theory Each outcome has a valence of its own. And each out-
nowadays, it remains a stable approach to understand- come can lead to other outcomes or consequences,
ing work motivation. referred to as second-level outcomes. A person who
The expectancy theory of motivation is based on receives an outstanding performance evaluation (a
the premise that the amount of effort people expend first-level outcome) becomes eligible for a promotion
depends on how much reward they expect to get in re- (a second-level outcome). Second-level outcomes also
turn. In addition to being broad, the theory deals with have valences. The sum of all the valences must be pos-
cognition and process. Expectancy theory is cognitive itive if the person is to work hard. If the sum of all of
because it emphasizes the thoughts, judgments, and the valences is negative, the person might work hard to
desires of the person being motivated. It is a process avoid the outcome.
theory because it attempts to explain how motivation Valences range from 2100 to 1100 in the version of
takes place. expectancy theory presented here. (The usual method
The theory is really a group of theories based on a of placing valences on a 21.00 to 11.00 scale does not
rational, economic view of people. 19 In any given sit- do justice to the true differences in preferences.) A va-
uation, people want to maximize gain and minimize lence of 1100 means that a person intensely desires
loss. The theory assumes that they choose among alter- an outcome. A valence of 2100 means that a person is
natives by selecting one they think they have the best strongly motivated to avoid an outcome such as being
chance of attaining. Furthermore, they choose the al- fired or declaring bankruptcy. A valence of zero signi-
ternative that appears to have the biggest personal pay- fies indifference to an outcome and is therefore of no
off. Given a choice, people will select the assignment use as a motivator.
they think they can handle the best and will benefit An example of using negative and positive valence
them the most. at the same time would be for the CEO to use data to
point out how bleak the company will become if it does
not change, and how wonderful the company will be-
Basic Components of Expectancy Theory come if it does change.
Expectancy theory contains three basic components:
valence, instrumentality, and expectancy. Because of Instrumentality
these three components, the theory is often referred to An individual’s assessment of the probability that per-
as VIE theory. Figure 10-1 presents a basic version of formance will lead to certain outcomes is referred to as
expectancy theory. All three elements must be present instrumentality. (An instrumentality is also referred to
for motivation to take place. To be motivated, people as a performance-to-outcome expectancy because it re-
must value the reward, think they can perform, and lates to the outcome people expect from performing in
have reasonable assurance that their performance will a certain way.) When people engage in a particular be-
lead to a reward. havior, they do so with the intention of achieving a de-
sired outcome or reward. Instrumentalities range from
Valence 0 to 1.0, where 0 is no chance of receiving the desired
The worth or attractiveness of an outcome is referred reward and 1.0 is a belief that the reward is certain to
to as valence. As shown in Figure 10-1, each work situ- follow. For example, a person whose job category makes
ation has multiple outcomes. An outcome is anything them eligible for overtime pay, might say, “I know for
that might stem from performance, such as a reward. sure that if I work overtime, I will receive overtime pay.”
Environment Outcome
Valence of
Effort Expectancy Performance Instrumentality Outcome
outcome
Ability Outcome
Figure 10-1 The Expectancy Theory of Motivation.
Expectancy have a clear understanding of what needs to be

An individual’s assessment of the probability that effort accomplished. At the same time, the leader should
will lead to correct performance of the task is referred make sure that the desired levels of performance
to as expectancy. (The same concept is also referred are possible. For example, sales quotas might be set
to as effort-to-performance expectancy.) An important too high because the market is already saturated
question people ask themselves before putting forth ef- with a particular product or service.
fort to accomplish a task is, “If I put in all this work, 2. Make the performance level attainable by
will I really get the job done properly?” Expectancies the individuals being motivated. If the group
range from 0 to 1.0, where 0 is no expectation of per- members believe that they are being asked to
forming the tasks correctly, and 1.0 signifies absolute perform extraordinarily difficult tasks, most of
faith in being able to perform the task properly. Expec- them will suffer from low motivation. A task
tancies thus influence whether a person will even strive must generally be perceived as attainable to be
to earn a reward. Self-confident people have higher motivational.
expectancies than do less self-confident people. Being 3. Train and encourage people. Leaders should
well trained increases a person’s subjective sense of give group members the necessary training and
ability to perform the task. encouragement to be confident they can perform
The importance of having high expectancies for the required task. Some group members who
motivation meshes well with the contribution of appear to be poorly motivated simply lack the right
self-efficacy, the confidence in your ability to carry skills and self-confidence.
out a specific task. If you have high self-efficacy about
4. Make explicit the link between rewards and
the task, your motivation will be high. Low self-efficacy
performance. Group members should be reassured
leads to low motivation. Some people are poorly moti-
that if they perform the job to standard, they will
vated to skydive because they doubt they will be able to
receive the promised reward.
pull the rip cord while free falling at 120 mph.
In short, if you are confident about your task-re- 5. Make sure the rewards are large enough. Some
lated skills, you will mobilize your resources to do the rewards that are the right kind fail to motivate
task. This is one reason that you should give people the people because they are not in the right amount.
skills and confidence they need to put forth effort. The promise of a large salary increase might
An apparent contradiction in expectancy theory re- be motivational, but a 1 percent increase will
quires explanation. Some people will engage in behav- probably have little motivational thrust for most
iors with low expectancies, such as trying to invent a workers.
successful new product or become the CEO of a ma- 6. Analyze what factors work in opposition to the
jor corporation. The compensating factor is the large effectiveness of the reward. Conflicts between the
valences attached to the second-level outcomes asso- leader’s package of rewards and other influences in
ciated with these accomplishments. The payoffs from the work group may require the leader to modify
introducing a successful new product or becoming a the reward. For example, if the work group favors
CEO are so great that people are willing to take a long the status quo, a large reward may be required to
shot that helps verify the justification for leaders’ and encourage innovative thinking.
managers’ concern about motivating employees: Peo- 7. Explain the meaning and implications of
ple who try harder perform better. second-level outcomes. It is helpful for employees
to understand the value of certain outcomes, such
as receiving a favorable performance evaluation.
Leadership Skills and Behaviors Associated (For example, it could lead to a salary increase,
with Expectancy Theory assignment to a high-status task force, or
promotion.)
Expectancy theory has many implications for lead-
8. Understand individual differences in valences.
ers and managers with respect to motivating others.20
To motivate group members effectively, leaders
Some of these implications also stem from other mo-
must recognize individual differences or
tivational theories, and they fit good management and
preferences for rewards. An attempt should be
leadership practice in general. As you read each impli-
made to offer workers rewards to which they attach
cation, reflect on how you might apply the skill or be-
a high valence. One employee might value a high-
havior during a leadership assignment.
adventure assignment; another might attach a high
1. Determine what levels and kinds of performance valence to a routine, tranquil assignment. Cross-
are needed to achieve organizational goals. cultural differences in valences may also occur. For
Motivating others proceeds best when workers example, many (but not all) Asian workers prefer
Goal Theory 257
not to be singled out for recognition in front of the have incorporated hundreds of studies about goals
group. According to their cultural values, receiving into a theory of goal setting and task performance.22
recognition in front of the group is insensitive and Figure 10-2 summarizes some of the more consistent
embarrassing. Another example is that a $1,000 findings, and the information that follows describes
watch have more valence in the United States than them. A leader should keep these points in mind when
in countries that downplay a flamboyant display of motivating people through goal setting.
wealth. To begin, remember that specific goals lead to
higher performance than do generalized goals. Telling
someone, “Do your best” is a generalized goal. A spe-
cific goal would be, “Increase the number of new hires
Goal Theory to our management training program to fifteen for this
summer.” Another key point is that performance gen-
Learning Objective 10.3 Describe goal theory. erally improves in direct proportion to goal difficulty.
The harder one’s goal is, the more one accomplishes.
Goal setting is a basic process that is directly or indi- An important exception is that when goals are too dif-
rectly part of all major theories of work motivation. ficult, they may lower performance. Difficulty in reach-
Leaders and managers widely accept goal setting as a ing the goal leads to frustration, which in turn leads to
means to improve and sustain performance. The use lowered performance (as explained in relation to expec-
of stretch goals was mentioned in the chapter opener, tancy theory). A stretch goal is motivational because it
as was a vision that can be framed as an exalted goal. requires considerable effort but it not so difficult to at-
The Fortescue vision (see the chapter opener) is to be- tain that pursuing the goal results in frustration.
come the safest, lowest cost, most profitable mining The finding about effective goals being realistic
company. has an important exception for the accomplishment
The core finding of goal theory is that individuals of high-level complex tasks. Effective leaders often in-
who are provided with specific hard goals perform spire constituents by framing goals in terms of a noble
better than those who are given easy, nonspecific, cause or something heroic.23 The manager of a group
“do your best” goals or no goals. At the same time, that made photo printers, for example, might explain
however, the individuals must have sufficient ability, that making high-quality printers enables people to
accept the goals, and receive feedback related to the preserve their memories. Here are two suggestions for
task.21 Our overview of goal theory elaborates on this developing noble powerful goals:
basic finding. ● Create a big, comprehensive goal: an ideal accom-
plishment for your group.
Basic Findings of Goal Theory ● Break the goal down into smaller steps, such as hir-
ing two top-notch workers for the group. Regard
The premise underlying goal theory (or goal-setting
each step (or subgoal) as a project designed to get
theory) is that behavior is regulated by values and
you to your destination. The same approach has
goals. A goal is what a person is trying to accomplish.
been referred to as “running sprints rather than
Our values create within us a desire to behave in a way
marathons.”
that is consistent with them. For example, a leader
who values honesty will establish a goal of hiring only For goals to improve performance, the group mem-
honest employees. The leader would therefore have to ber must accept them. If a group member rejects a goal,
make extensive use of background investigations and that member will not incorporate it into planning. This
honesty testing. Edwin A. Locke and Gary P. Latham is why it is often helpful to discuss goals with group
GOALS THAT ARE:

Specific
Hard but realistic
Accepted by the person IMPROVED
VALUES Used to evaluate performance PERFORMANCE
Linked to feedback and
rewards
Set by individuals or groups
Learning oriented
Figure 10-2 Goal Theory.
members rather than impose goals on them. Other re- enhances organizational success. A specific finding rel-
search, however, suggests that the importance of goal evant to the present discussion is that when company
commitment may be overrated. Goals appeared to im- management supports long-term goals with tough, but
prove performance whether or not people participating achievable short-term performance benchmarks (or
in the studies felt committed to them.24 Despite these goals), the organization is more likely to be profitable.26
findings, many managers and leaders think employee Another consideration about goal setting is the im-
commitment to goals is important. pact of deadlines on goal pursuit. Recent laboratory re-
Participating in goal setting has no major effect on search conducted with college students about goal setting
the level of job performance except when it improves suggests that when people have multiple goals to pursue
goal acceptance. Yet the leader should recognize that at the same time people generally prioritize the goal with
participation is valuable because it can lead to higher the closest deadline. When group members are pursuing
satisfaction with the goal-setting process. Goals are multiple goals with different deadlines, it could therefore
more effective when they are used to evaluate perfor- be important for the leader to emphasize that a particu-
mance. When workers know that their performance lar goal should be emphasized even if it has a less urgent
will be evaluated in terms of how well they attain their deadline. For example, the leader might emphasize that
goals, the impact of goals increases. input for the organization’s strategy is vitally needed even
A key principle is that goals should be linked to if a recruitment report has a closer deadline.27
feedback and rewards. Rewarding people for reaching
goals is the most widely accepted principle of manage- The Importance of How Goals Are Attained
ment. Another goal-setting principle is that group goal and Other Concerns
setting is as important as individual goal setting. Hav-
ing employees work as teams with a specific team goal, A major concern about using goals to motivate per-
rather than as individuals with only individual goals, formance is that leaders, as well as other workers, will
increases productivity. Furthermore, a combination of take unethical and dysfunctional shortcuts to attain
compatible group and individual goals is more effective their goals. For example, a CEO might drastically re-
than either individual or group goals alone. duce investment in research and development and lay
A final goal-setting principle is that a learning goal off too many valuable workers to meet a profit goal
orientation improves performance more than a per- such as earnings per share. Also, managers have been
forming goal orientation does. A person with a learning known to engage in unethical behavior such as ship-
(or mastery) goal orientation wants to develop compe- ping unfinished products to reach sales goals.28 To im-
tence by acquiring new skills and mastering new situ- plement goal setting without creating dysfunctions, it
ations. In contrast, the person with a performing goal is therefore essential to specify how the goals will be
orientation wants to demonstrate and validate their attained with a particular focus on ethical behavior.
competence by seeking favorable judgments and avoid- The use of financial incentives for attaining goals
ing negative judgments. often encourages unethical behavior. A striking exam-
A meta-analysis of seventy-six different results with ple of this potential problem was described in Chapter 6
the impact of goals on group performance also supported in relation to business ethics. Wells Fargo CEO John
several of the conclusions just presented. The major find- Stumpf (now replaced) emphasized cross selling, or
ings of the study of studies included the following: pushing account holders to open new accounts with
the bank. Bank employees were put under exception-
1. Specific difficult goals yield higher group perfor- ally high pressure to boost the number of customer
mance than do nonspecific goals. accounts. Regional bosses established daily quotas for
2. Moderately difficult and easy goals also enhance tellers and bankers, demanding that they stay late or
group performance but to a lesser extent than do work on weekends or be fired. A negative result of these
difficult goals. sales goals was that Wells Fargo representatives opened
3. Participation did not have much of an influence on many accounts for customers without their consent.
the effectiveness of goals. Federal regulators ultimately imposed heavy fines on
the bank, and the Wells Fargo reputation was tarnished.
4. Egocentric goals aimed at maximizing individual
Furthermore, the bank has disbanded sales goals.29
performance had a negative impact on group
A heavy emphasis on goals can also create such
performance.25
problems as workers focusing so much on attaining
Encouraging support for the contribution of goals their goals that they neglect emergencies and new op-
to organizational success comes also from an interna- portunities. For example, a recruiter might ignore an in-
tional research effort conducted over a decade with quiry from an excellent prospect because the recruiter
8,000 manufacturers in twenty countries. The general had to finish a quota of processing job inquiries to the
finding was that following good management practices company website. A related problem with goals, such as
Using Recognition and Pride to Motivate Others 259
Warning
Goals may cause systematic problems in organizations due to narrowed focus, increased risk taking, unethical behavior,
inhibited learning, decreased cooperation, and decreased intrinsic motivation.
Use care when applying goals in your organization.
The Application of Goal Theory

In a group of about five to six people, visualize yourself as The goal of today’s meeting is to establish four goals that
a task force leader whose mission is to enhance the pro- are likely to lead to a more productive organization without
ductivity of individual workers throughout the company. creating excessive strain on workers. After each team has
(Productivity in this context refers to the ratio of outputs established it goals, present them to other class members.
to inputs, or efficiency.) The company manufactures sports Students listening to the goals of the other groups might of-
clothing such as athletic shoes, swimsuits, running suits, fer constructive feedback.
and soccer outfits. One of the group members plays the role Practice in setting effective goals is useful because leaders
of the task force leader. The leader must help the group es- and managers are frequently expected to set goals. When the
tablish goals that are likely to be motivational, following the goal follows at least some of the major findings of goal theory,
principles of goal theory. there is a greater likelihood that productivity will increase.
working to earn large commissions, is that other aspects business and nonprofit firms. An example is rewarding
of a sales representative’s position might be ignored. For high-performing employees with a wristwatch inscribed
example, Susan Parker, the owner of the dressmaker with the company logo or designating them as employee
Bari Jay, observed that her commissioned sales repre- of the month. Pride, as described next, is related to rec-
sentative tended to ignore some accounts where they ognition. People who are proud of their work want to be
didn’t see a big commission opportunity. Parker’s anti- recognized for their good deeds.
dote to the problem was to give year-end bonuses and Recognition is a strong motivator because it is a nor-
profit sharing to employees rather than commissions.30 mal human need. Tony Schwartz, head of the Energy
The potential pitfalls of over-reliance on goals have Project, reminds us that nothing influences employees’ en-
been humorously condensed by group of researchers gagement as the feeling that they are genuinely cared for
suggesting the above “warning label” for setting goals:31 and valued by their leaders.32 (Both being cared for and
Goal setting is widely practiced by leaders and valued are strong forms of recognition.) Recognition is
managers, but they typically do not give careful con- also effective because most workers feel they do not receive
sideration to goal theory. Leadership Skill-Building enough recognition. As indicated by Stress in America sur-
Exercise 10-2 gives you an opportunity to apply what vey conducted by the American Psychological Association
you have learned about goal setting. a few years ago, only 46 percent of the employees are satis-
fied with the recognition practices of their employer.33
David Novak, the Yum Brands’ former CEO, has
Using Recognition and Pride to received the most recognition of any business execu-
Motivate Others tive for emphasizing the motivational impact of rec-
ognition. Under Novak’s tenure, Yum Brands became
Learning Objective 10.4 Articulate how leaders can a multibillion dollar player in the fast food industry.
motivate others through recognition and pride. (Three key brands are KFC, Pizza Hut, and Taco Bell.)
Novak believed that he helped turn the company’s for-
Motivating others by giving them recognition and tunes around by emphasizing recognition. His formal
praise can be considered a direct application of pos- program of recognition began by rewarding employees
itive reinforcement, or reinforcing the right behavior for good work by tossing them a rubber chicken. Today,
by giving a reward. Recognition programs to reward Novak is an evangelist of employee recognition, includ-
and motivate employees are a standard practice in ing a simple “thank you” for a job well done.34
To think through the strength of your own need for of using recognition to sustain desired behavior (a key
recognition, take Leadership Self-Assessment Quiz 10-3. aspect of motivation) follow:
● As the team leader, you receive a glowing letter from
a customer about Kate, one of your team members,
Appealing to the Recognition Need who solved the customer’s problem. You have the let-
of Others ter laminated and present it as a gift to Kate. (The be-
To appeal to the recognition need of others, identify a havior you are reinforcing is good customer service.)
meritorious behavior, and then recognize that behavior ● As the manager of IT, one of your software engi-
with an oral, written, or material reward. Two examples neers, Evan, suggests that you post an ad on Twitter
Leadership Self-Assessment
Self-Assesment Quiz
Quiz5-2
10-3
How Much Do I Crave Recognition?

Instructions: Respond to the following statements on the following scale: disagree strongly (DS), disagree (D), neutral (N),
agree (A), and agree strongly (AS).
DS D N A AS
1. I keep (or would keep) almost every plaque, medal, or trophy I have 1 2 3 4 5
ever received on display in my living quarters.
2. I feel a nice warm glow each time somebody praises my efforts. 1 2 3 4 5
3. When somebody tells me “Nice job,” it makes my day. 1 2 3 4 5
4. When I compliment someone, I am really looking for a compliment 1 2 3 4 5
in return.
5. I would rather win an employee-of-the-month award than receive a 1 2 3 4 5
$200 bonus for my good work.
6. If I had the resources to make a large donation to charity, I would 1 2 3 4 5
never make the donation anonymously.
7. Thinking back to my childhood, I adored receiving a gold star or simi- 1 2 3 4 5
lar acknowledgment from my teacher for my good work.
8. I would rather be designated as Time magazine’s Person of the Year 1 2 3 4 5
than be one of the world’s richest people.
9. I love to see my name in print or electronically. 1 2 3 4 5
10. I do not receive all the respect I deserve. 1 2 3 4 5
11. I regularly check to see how many times my name shows up on an 1 2 3 4 5
Internet search (such as Google or Yahoo).
Total score
Scoring and Interpretation: Add the circled numbers to obtain your total score.
● 50–55: You have an above-average recognition need. Recognition is therefore a strong motivator for you. You will be happi-
est in a job where you can be recognized for your good deeds.
● 30–49: You have an average need for recognition and do not require constant reminders that you have done a good job.
● 11–29: You have a below-average need for recognition and like to have your good deeds speak for themselves. When you
do receive recognition, you would prefer that it be quite specific to what you have done, and not too lavish. You would feel
comfortable in a work setting with mostly technical people.
Using Recognition and Pride to Motivate Others 261
to fill two vacancies for software technicians. You The tech center worker who just conquered a virus
are skeptical at first, but you give it a try, and your on your desktop would prefer a compliment such
recruiting goals are met. You warmly congratulate as, “I appreciated you having disabled the virus and
Evan. You are rewarding his proactive behavior. restored my computer to full functioning.” This type
of compliment would be preferable to, “Fantastic,
An outstanding advantage of recognition, including
you are a world-class virus fighter.”
praise, as a motivator is that it is no cost or low cost yet
powerful. Reward expert Bob Nelson reminds us that 5. Teams, as well as individuals, should receive
while money is important to employees, thoughtful rec- recognition to enhance motivation. Bob Nelson
ognition motivates them to elevate their performance.35 recommends that to build a high-performing team,
Furthermore, one of the Dale Carnegie principles of the leader should acknowledge the success of all
leadership states: “Praise the slightest improvement team members. As with individual recognition,
and praise every improvement; be hearty in your appro- a personal touch works best. Examples include
bation and lavish in your praise.” This basic principle is a manager thanking group members for their
strongly supported by decades of research on operant involvement, suggestions, and initiatives.40
conditioning, including positive reinforcement.36
Recognition thus has an enormous return on invest-
ment in comparison to a cash bonus. Following are a Recognizing Group Members by Thanking
few suggestions for the motivational use of recognition Them and Expressing Gratitude
and praise: The basic human relations principle of giving recogni-
1. To maximize its motivational impact, recognition tion by thanking people for a job well done and express-
should be linked to corporate values and should also ing gratitude has received considerable recent attention
help workers attain personal goals. Visualize a secu- by leadership writers. Gratitude specialist Adrian Gostic
rity guard whose outside passion is sustaining the puts it this way: “It’s vital to pay people appropriately,
environment and who becomes recognized with the but there is only so much money to go around. That
new title of Security and Energy Conservation Mon- makes gratitude all the more meaningful and useful as
itor. The title combines the guard’s interest in saving a leadership tool.” Showing gratitude is sometimes dif-
energy with the company’s interest in keeping out- ficult because it can make managers as uncomfortable
side doors closed and unused lights turned off.37 to praise employees as to criticize them.41
One intervention recommended for expressing
2. Inform others in the group and organization about
gratitude is to write a thank-you letter to a person and
the meritorious behavior, such as via a mention in a
then reading it aloud to the person.42 (Not all leaders
staff meeting or a posting on the intranet. Also, praise
or managers would feel comfortable with this interven-
related to specific tasks is usually more effective
tion, making it best to first make a trial run, perhaps
than general praise. Workers may appreciate praise,
with a friend or family member.) An easy approach to
but they also prefer to know what specifically they
giving thanks and expressing gratitude is to compli-
are being praised for, such as, “Your forecast for the
ment a group member. A field research project revealed
sale of our cutting gear to factories in Poland was
that people underestimated how good their compli-
right on target. Congratulations.”
ment would make the recipient feel, and how much it
3. Do not use praise to set employees in competition would contribute to the recipient’s sense of well-being.
against one another. Praise the employee who Compliment givers have a tendency to believe that the
merits the praise, but do not suggest that other compliment recipients will not enjoy the interaction as
employees are less praiseworthy, such as: “Great much as they actually do. A frequent thought is that
job, José. I wish the rest of the group had put in the giving a compliment will make the recipient uncom-
same kind of effort.”38 fortable. The same research project also found that
4. Take into account the individual’s preference for people underestimate how much recipients appreciate
the type of praise. A challenge in using recognition gratitude. The implication of this study for leaders is to
effectively is that not everyone responds well to the not underestimate the positive impact of compliments
same form of recognition. An example is that highly and gratitude.43
technical people tend not to like general praise Another way to show appreciation and gratitude for
like “Great job” or “Awesome, baby.” Instead, they motivational purposes is to begin team meetings with
prefer a laid-back, factual statement of how their shout-outs for accomplishments of specific team mem-
work made a contribution. According to one study, bers. The indirect effect of expressing appreciation and
the more highly a person’s self-perception is that of gratitude toward certain members of the team, is that
having a technical orientation, the more the person the other team members will work hard to receive sim-
wants praise to be quite specific and task oriented.39 ilar accolades in future meetings.44
Recognition for Outstanding Performance

An IT group has worked tirelessly for four days to success- tells you that highly technical people do not like to be plas-
fully combat a ransomware attack on your company that tered with effusive praise. Instead, they prefer more pin-
manufactures and sells life-saving pharmaceuticals. One pointed praise about their accomplishments. As a result,
student plays the role of the division president who will visit you want to deliver powerful recognition that will be per-
the team for about fifteen minutes today to give them appro- ceived in a positive way. Several other students will play the
priate recognition. Your knowledge of business psychology role of these IT stars.
Skill-Building Exercise 10-3 provides you an oppor- contributes to the meaningfulness of work.) The most
tunity to practice giving deserved recognition as a leader. effective pride builders are masters at identifying and
recognizing the small achievements that will instill
pride in their people.45
Appealing to Pride
Wanting to feel proud motivates many workers, and
giving recognition for a job well done helps satisfy this Coaching as an Approach
desire to feel proud. Being proud of what you accom- to Motivation
plish is more of an internal (intrinsic) motivator than
an external (extrinsic) motivator, such as receiving a Learning Objective 10.5 Describe coaching as an
gift. Giving workers an opportunity to experience pride approach to motivation.
can therefore be a strong internal motivator, yet they
simultaneously receive recognition. Effective leaders are good coaches, and good coaches
Imagine that you are the assistant service manager at are effective motivators. The coaching demands are
a company that customizes recreational vehicles to meet much less rigorous for leaders who have little face-to-
the requirements of individual clients. Your manager face contact with organization members, such as finan-
asks you to prepare a PowerPoint presentation of trends cial deal makers, CEOs, and chairpersons of the board.
in customization for people who live most of the year in Nevertheless, coaching plays an important role in the
their recreational vehicles (RVs). You make your presen- organization, as expressed by John Russell, the former
tation to top management, the group applauds, executives managing director of Harley-Davidson Ltd: “I never
give you a fist bump, and later you receive several con- cease to be amazed at the power of the coaching process
gratulatory email messages. One of the many emotions to draw out the skills or talent that was previously hid-
you experience is likely to be pride in having performed den within an individual, and which invariably finds a
well. You are motivated to keep up the good work. way to solve a problem previously thought insolvable.”46
Workers can also experience pride in relation to rec- Coaching is a way of enabling others to act and build
ognition symbols. For example, a worker might receive on their strengths. The major purpose of coaching is to
a floor clock for having saved the company thousands bring about constructive change in performance and/or
of dollars in shipping costs. The clock might be more behavior. To coach is to care enough about people to in-
valuable to the worker as a symbol of accomplishment vest time in building personal relationships with them.
than as a household decoration. The feeling of pride The organization also benefits from coaching because
stems from having accomplished a worthwhile activity of the elevated productivity of many of the workers
(saving the company money) rather than from being who are coached. Coaching is also seen as a key vehicle
awarded a floor clock. for engaging (or motivating) workers.
According to consultant Jon R. Katzenbach, man- Coaching takes place at different levels with re-
agers and leaders can take steps to motivate through spect to what type of changes the person being coached
pride. A key tactic is for the manager to set the com- wants to make, or the leader wants that person to make.
pass on pride, not money. It is more important for In this chapter we are referring to changes related to
workers to be proud of what they are doing day by day job performance. Coaching authority Richard Boyat-
than for them to be proud of reaching a major goal. sis of Case Western Reserve University uses the term
The manager should celebrate steps (or attaining small compassionate coaching in reference to helping people
goals) equally as much as landings (major goals). make big decisions and changes. Among them would
(As described earlier, the feeling of making progress be choosing between two job offers, contemplating an
Key Characteristics of Coaching 263
international move, or changing careers.47 Our posi- group performance. The effective coach makes team
tion is that this type of coaching activity is really career members aware of one another’s skills, and how these
counseling, not on-the-job coaching. skills can contribute to attaining the group’s goals.49
Coaching Skills and Techniques

Key Characteristics of Coaching Leaders and managers have varied aptitudes for coach-
ing. One way to acquire coaching skill is to study basic
Learning Objective 10.6 Clarify the characteristics
principles and suggestions and then practice them. An-
of coaching and how to practice coaching skills and other is to attend a training program for coaching that in-
techniques. volves modeling (learning by imitation) and role playing.
Here we examine a number of suggestions for coaching,
Coaching in the workplace might ordinarily be ex- all of which might also apply to coaching a group or a
plained as the art of management. Because a coach- team as well as an individual. The typical scenario for a
ing relationship is unique, the person being coached leader to coach a team would take place in a meeting with
is better motivated to accomplish goals for the good of all or most of the group. If implemented with skill, the
the organization. Coaching is an interaction between suggestions will improve the chances that coaching will
two people, usually the manager and an employee. lead to improved performance of individuals and groups.
The purpose of the interaction is to help the employee
1. Define the issues and communicate clear ex-
learn from the job in order to help their development.
pectations to group members. A logical first step
The interaction of the two personalities influences the
in coaching a subordinate is to explain why you are
coaching outcome. Some leaders, for example, can suc-
coaching that person in the first place.50 For example,
cessfully coach certain people but not others.
you might want a team member to produce a higher
Coaching requires a moderate degree of interper-
number of creative ideas. For people to perform well
sonal risk and trust on the part of both people in the
and to continue to learn and grow, they need a clear
relationship. The coach might give the person being
perception of what is expected of them. The expec-
coached wrong advice. Or the person being coached
tations of a position become the standards by which
might reject the coach’s encouragement. Think of the
performance will be judged, thus serving as a base
risk involved when a basketball player asks the coach
point for coaching. If a team member is supposed to
for advice on how to correct a shot that is not working
contribute three new ideas each month for improv-
well. As a result of the coaching, the player might shoot
ing operations, coaching is justified when an average
more poorly, to the embarrassment of both. Similarly,
of only one idea per month is forthcoming.
an organizational leader might coach a team member
in a direction that backfires—for example, that results 2. Build relationships. Effective coaches build
in even fewer sales than before. personal relationships with team members and
Effective coaching focuses on the growth and devel- work to improve their interpersonal skills.51
opment of individuals rather than telling them what to Having established rapport with team members
do in a given situation. To help subordinates grow and facilitates entering into a coaching relationship
develop, the leader as coach should give subordinates with them. The suggestions that follow about active
the resources they need to make their own decisions. listening and giving emotional support are part of
The people being coached should be challenged to find relationship building.
the right solution, and then should be provided feed- 3. Give feedback on areas that require specific
back on how well they have performed.48 improvement. To coach a group member toward
Assume that a manager wants the accident rate on higher levels of performance, the leader pinpoints
the construction of skyscrapers reduced substantially. what specific behavior, attitude, or kills require
Instead of telling a direct report exactly how to accom- improvement. An effective coach might say, “I read
plish this goal, the manager might point to new sources the product-expansion proposal you submitted. It’s
of help for accident reduction. In the process, the di- OK, but it falls short of your usual level of creativity.
rect report might find solutions the manager did not Our competitors are already carrying each product
already know about. you mentioned. Have you thought about …?”
At its best, coaching offers concrete contributions, Another important factor in giving specific
including higher motivation. An effective coach keeps feedback is to avoid generalities and exaggerations,
spirits up and offers praise and recognition frequently. such as, “You never come up with a good product
Good coaching also leads to personal development. idea” or “You are the most unimaginative product
Group members are encouraged to cross-train and serve development specialist I have ever known.” To
as backups for each other. Good coaching also improves give good feedback, the leader or manager has

Leader in Action
Texas Pride Disposal CEO Pumps up Workers through Recognition and Pride
Kevin Atkinson’s love of garbage trucks began during his they complete their regular responsibilities by joining another
youth, when he followed garbage trucks on his bicycle and route or washing a truck. The workers regard the extra work
collected toy garbage trucks. Today, Atkinson is the CEO and as a financial bonus. Atkinson combines the additional com-
coowner of Texas Pride Disposal in Houston, a waste man- pensation with a form of recognition by shaking the hands
agement enterprise with 240 employees and a fleet of 100 of the workers and thanking them for helping out. To trigger
trucks that serves over 225,000 customers. The company excellence, Atkinson showers his team with recognition and
grosses about $7 million annually. Pride means a lot to Atkin- praise. The workers rarely receive positive feedback from
son, and he works hard to install this quality in his workforce. customers, so he seeks ways to make them feel special.
At the same time, the CEO recognizes that being a garbage Atkinson instills in the garbage workers the importance
worker is hard physical work and is usually dirty and smelly. of taking pride in their work. He conducts safety meetings
Each crew picks up trash from about 1,200 houses per day. with his crews, explaining the importance of closing the
“My employees do a job that is widely disrespected,” says lid on trash containers, following instructions given by the
Atkinson. “People assume that if you work on a garbage truck supervisor, and listening to customer comments. Atkinson
you’re a felon that can’t do any better. The customers don’t does regular unannounced observations, in which he fol-
realize these are hard-working guys who are trying to do right lows a truck to ensure that the crew is performing safely
by their families. They don’t get recognition from the custom- and correctly. He will stop a crew on the route, go through a
ers, so recognition has to come from the management team.” safety checklist, and have each crew member sign the list.
Atkinson also notes that people tend to perceive the garbage Atkinson’s actions put the crew on notice that he considers
industry as being run by mobsters. In reality, some of the fin- their work important, and they should too. “We don’t want
est people are part of the waste removal industry.” an employee to ever think that they don’t need to respect
Atkinson begins his program of employee recognition their job because it’s trash,” says Atkinson.
in the hiring process when he dissuades people from In talking about people who have helped make him
working for Texas Pride. He describes how difficult the successful, Atkinson said that he wanted to thank every
job is, such as being chewed by fire ants, enduring foul single Texas Pride Disposal employee, “because without
odors, and being exhausted from hauling tons of refuse them, we are nothing.” Several posts on the job website
in the form of picking up waste containers. The misery Indeed suggest that Atkinson is an effective leader. One
is then repeated the next working day. By discouraging such comment is, “Texas Pride is a great company to work
job applicants, Atkinson believes that he can find workers for. All managers and supervisors are well spoken and
who are truly committed to the job and know what they comfortable to speak with about any issues. Very quick to
are getting into. fix any issues with equipment or issues around the work
Atkinson attempts to win the loyalty of newly hired work- environment.”
ers by jumping on the back of the truck and hauling gar- Atkinson holds a bachelor of science degree in business
bage at least once a month. “I have a massive ant bite on from Louisiana State University. During the summers of his
the back of my arm right now,” he says. “But that shows the college years, he worked on a garbage truck, which con-
crews I’d never ask them to do anything I won’t do myself. It tributed to his passion for the role garbage hauling plays in
matters, and whenever I work on the truck, employees come society.
into my office and comment on it.”
Atkinson builds team spirit by emphasizing to his employ- Questions
ees that Texas Pride Disposal is a team game. Although each 1. How demanding is Kevin Atkinson’s leadership role?
employee is part of a three-person crew, employees are ex- 2. How might this story about giving recognition and in-
pected to familiarize themselves with the routes of the six- stilling pride in the trash removal industry apply to other
work settings involving basic, manual work?
teen other crews. Workers can earn extra compensation after
(continued)

3. What would you think about motivating the garbage 4. Is Kevin Atkinson making good use of his degree in
workers by explaining to them that their grand purpose business?
is to help create a sustainable planet through the compa-
ny’s recycling and safe disposal of waste?
Sources: Original story based on facts and observations in the following sources: “Meet Kevin Atkinson, Partner/Owner Texas Pride
Disposal,” Shoutout HTX (https://shoutouthtx.com). September 14, 2020, pp. 1–6; “How a CEO Motivates Employees in a Dirty,
Sweaty Industry,” Windstream View (https://www.inc.com), November 2, 2016, pp. 1–2; Sandra Bretting, “Trash Entrepreneur Mines
What Others Discard,” Houston Chronicle, January 7, 2016, pp. 1–4; “Texas Pride Disposal,” Indeed (wwww.indeed.com), 2021, p. 2.
to observe performance and behavior directly 4. Provide regular on-the-spot feedback on what is
and frequently, such as by watching a supervisor going well. A modern twist on using feedback for
dealing with a safety problem. coaching is to reinforce the desired performance
A major challenge in giving feedback is that many or behavior when it is observed in the day-by-day
people find negative feedback to be uncomfortable. work environment.55 Text messaging is an effective
It is therefore helpful to get the person’s buy-in, or medium for on-the-spot positive feedback. A
at least acceptance, to receive the feedback. For ex- facilities manager might say to a mechanic, “I saw
ample, if coaching on the fly, the leader might ask, what you did today. The air conditioning was down
“Chris, I’d like to offer some quick feedback because I in the east-wing office. You dropped everything
want to help you. Is this a good time?”52 It also helps to rush in and fix the problem before half the
to be quite specific about negative feedback. Begin staff fainted from the heat. To me that is superior
the conversation by noting where and when the be- performance. Keep it up.” The facilities manager in
havior you want to discuss occurred.53 For example, this scenario had the coaching objective of getting
you might say, “During our product launch meeting the mechanic to respond more quickly to problems,
last week you joked about the physical appearance so he reinforced the speedy response.
of one of our support staff who fortunately was not 5. Listen actively. Listening is an essential ingredient
in the room. Joking about another worker’s physical in any coaching session. An active listener tries to
appearance does not fit our inclusive culture.” grasp both facts and feelings. Observing the group
Feedback is also likely to be less intimidating member’s nonverbal communication is another part
when the coach explains which behaviors should of active listening. The leader must also be patient
decrease and which should increase. This approach and not poised for a rebuttal of any difference of
is a variation of combining compliments with crit- opinion with the group member. Beginning each
icism to avoid insulting the person being coached. coaching session with a question helps set the stage
You might say, “Tanya, I need you to place more for active listening. The question will also spark the
emphasis on quality and less on speed.” employee’s thinking and frame the discussion: For
Feedback can also be made less intimidating example, “How might we use the new database of
when the coach begins with a question, such as customers who have purchased similar products
“How do you think you’re doing?” The question help our staff generate more sales?”
helps give the person being coached joint ownership Part of being a good listener is encouraging the
of the problem, and helps them feel included rather person being coached to talk about their perfor-
than excluded.54 The question also helps feedback mance. Asking open-ended questions facilitates a
become a conversation rather than the coach focus- flow of conversation: For example, ask, “How did
ing on telling the group member what performance you feel about the way you handled conflict with
or behavior requires change. the marketing group yesterday?” A close-ended
Should the coach be dealing with a person who question covering the same issue would be, “Do you
is highly sensitive to criticism, it can be helpful to think you could have done a better job of handling
convert the criticism into a positive suggestion to conflict with the marketing group yesterday?”
avoid intimidating the person being coached. Re- Listening often begins by asking powerful ques-
place “A few of your facts were way off in your last tions, and then engaging in dialogue to arrive at
report” with “You could improve your accuracy by new ideas, insights, and action steps together. A
double checking your facts.”
powerful question might be, “You have so much tal- forms and messages that require attention.” The
ent. What aren’t you living up to your potential?”56 group member might then respond with something
6. Help remove obstacles. To perform at anywhere like, “That’s exactly what I mean. I’m glad you
near top capacity, individuals may need help in understand my problem.” (Notice that the leader
removing obstacles such as a maze of rules and is also giving the group member an opportunity to
regulations and rigid budgeting. An important role express the feelings behind the problem.)
for the leader of an organizational unit is thus to 10. Give some gentle advice and guidance. Too
be a barrier buster. A leader or manager is often much advice giving interferes with two-way
in a better position than a group member to gain communication, yet some advice can elevate
approval from a higher-level manager, find money performance. Also, workers being coached usually
from another budget line, expedite a purchase expect to receive some advice. The manager should
order, or authorize hiring a temporary worker to assist the group member in answering the question
provide assistance. Yet, if the coach is too quick to “What can I do about this problem?” Advice in the
remove obstacles for the group member, the latter form of a question or suppositional statement is
may not develop enough self-reliance. often effective. One example is, “Could the root of
7. Give emotional support and empathy. By being your problem be insufficient planning?” A direct
helpful and constructive, the leader provides much- statement such as, “The root of your problem
needed emotional support to the group member is probably insufficient planning,” often makes
who is not performing at their best. A coaching people resentful and defensive. By responding to a
session should not be an interrogation. An effective question, the person being coached is likely to feel
way of giving emotional support is to use positive more involved in making improvements.
rather than negative motivators. For example, Part of giving gentle guidance for improvement
the leader might say, “I liked some things you did is to use the word could instead of should. To say,
yesterday, and I have a few suggestions that might “You should do this,” implies that the person is cur-
bring you closer to peak performance.” rently doing something wrong, which can trigger
Displaying empathy is an effective way to defensiveness. Saying, “You could do this,” leaves
give emotional support. Indicate with words that the person with a choice: Accept or reject your in-
you understand the challenge the group member put, and weigh the consequences.51 (You could ac-
faces with a statement such as, “I understand that cept this advice to become a better coach!)
working with a reduced staff has placed you un- 11. Allow for modeling of desired performance and
der heavy time pressures.” The genuine concern behavior. An effective coaching technique is to show
you show will help establish the rapport useful in the group member, by example, what constitutes the
working out the problem together. desired behavior. Assume that a manager has been
8. Work on a solution together. Particularly when making statements to customers that stretch the
an employee is struggling to overcome a problem, truth, such as falsely saying that the product met a
it is best to work with that person to come up zero-defects standard. In coaching the manager, the
with a solution together. Giving the subordinate a manager’s boss might allow the manager to observe
chance to take ownership of the difficult situation how the boss handles a similar situation with a
is empowering and often provides extra motivation customer. The manager’s boss might telephone a
for improvement.56 A logistics specialist might say to customer and say, “You have been inquiring about
the manager, “I am trying hard to keep up with my whether we have adopted a zero-defects standard for
work but I get so many digital messages every hour, our laser printers. Right now, we are doing our best
it throws me off track.” The coaching manager might to produce error-free products. Yet so far, we do not
reply, “What steps could you take to block out time for have a formal zero-defects program. We stand by our
these messages, and still get your core work done?” printers and will fix any defect at no cost to you.”
9. Reflect content or meaning. An effective way of 12. Gain a commitment to change. Unless the leader
reflecting meaning is to rephrase and summarize receives a commitment from the team member
concisely what the group member is saying. A to carry through with the proposed solution to a
substandard performer might say, “The reason problem, the team member may not attain higher
I’ve fallen so far behind is that our company has performance. An experienced manager develops
turned into a bureaucratic nightmare. We’re an intuitive sense for when employees are serious
being hit right and left with forms to fill out for about performance improvement. Two clues that
customer satisfaction. I have fifty email messages commitment to change is lacking are (1) over-
that I haven’t read yet.” You might respond, “You’re agreeing about the need for change and (2) agreeing
falling so far behind because you have so many to change without display of emotion.
13. Applaud good results. Effective coaches on the training exercise that simulated pharmaceutical rep-
playing field and in the workplace are cheerleaders. resentative interactions with physicians. Coaching
They give encouragement and positive reinforcement skill was rated by both the managers’ direct bosses
by applauding good results. Some effective coaches and their regional supervisors. The study found that
shout with joy when an individual or team achieves the managers’ coaching skill was directly related to
outstanding results; others applaud. Good results, the annual sales goal attainment of the sales rep-
of course, can only be applauded if results are resentatives that they supervised. Part of the good
measured. results attained by coaching was attributed to the
The scientifically minded reader might be won- managers providing clarity about job expectations.58
dering if there is evidence that coaching by leaders Leadership Self-Assessment Quiz 10-4 will help
and managers has a tangible effect on performance. you think through the development you need to
A positive answer is furnished by a study of con- be an effective coach. If you are already an effec-
ducted with 1,246 sales representatives in 136 teams tive coach, look for ways to improve. Leadership
within a pharmaceutical company over a year. Man- Skill-Building Exercise 10-4 gives you a chance to
ager’s coaching skill was evaluated in the context of a practice coaching.
Self-Assesment Quiz
10-4
Characteristics of an Effective Coach

Instructions: Following is a list of traits, attitudes, and behaviors characteristic of effective coaches. Place a check mark next
to each trait, attitude, or behavior that you need to develop along those lines (for example, whether you need to become more
patient). On a separate sheet of paper, design an action plan for improvement for each trait, attitude, or behavior that you
need to develop. An example of an action plan for improving patience might be, “I’ll ask people to tell me when I appear too
impatient. I’ll also try to develop self-control about my impatience.”
Trait, Attitude, or Behavior
1. Empathy (putting self in other person’s shoes)

2. Listening skill
3. Insight into people
4. Diplomacy and tact
5. Patience toward people
6. Concern for welfare of people
7. Low hostility toward people
8. Self-confidence and emotional security
9. Non-competitiveness with group members
10. Enthusiasm for people
11. Satisfaction in helping others grow
12. Interest in development of group members
13. High expectations for each group member
14. Ability to give authentic feedback
15. Interest in people’s potential
16. Honesty and integrity (or trustworthiness)
17. Friendliness
18. Develops trust and respect
Source: Items 11–15 gathered from information in William D. Hitt, The Leader-Manager: Guidelines for Action (Columbus, OH: Battelle
Press, 1988), pp. 183–186.
Coaching for Improved Performance

Clayton is a financial consultant (stockbroker) at a branch Have one member of the class assume the role of
office of an established financial services firm. His man- Marlene, and another the role of Clayton. Marlene will
ager, Marlene, is concerned that Clayton is 25 percent be- attempt to implement recommended coaching techniques.
low quota in sales of a new gold mutual fund offered by the Other class members will watch and then provide construc-
company. Marlene schedules a late afternoon meeting in tive feedback.
her office to attempt to help Clayton make quota. She has This exercise is a key skill builder because so much of
told Clayton, “I want to talk about your sales performance face-to-face leadership involves working out performance
on the new gold fund and see if I can be helpful.” Clayton problems with group members. If every employee were an
is concerned that the meeting might be a discipline session outstanding, independent performer, we would have less
in disguise. need for managers and leaders.
outstanding athlete. One approach to heightened

Executive Coaching and Leadership performance is to help the leader uncover per-
Effectiveness sonal assets and strengths that person may not
have known existed. An example would be discov-
Learning Objective 10.7 Identify how executive coaches ering that the leader has untapped creativity and
help enhance leadership skills. imagination.
A form of coaching in vogue is for managers to con-

● Counseling the leader about weaknesses that could
sult professional coaches to help them become more interfere with effectiveness, such as being too
effective leaders and to guide them in their careers. hostile and impatient. The coach will also solicit
Executive coaching is a one-on-one development activ- feedback by interviewing coworkers and subordi-
ity contracted between a coach and a management-level nates, and then distilling the feedback to help the
client to help achieve goals related to professional de- executive.
velopment and/or job performance.59 Executive coaches ● Serving as a sounding board when the leader faces
are prevalent in the tech industry. One reason is that a complex decision about strategy, operations, or
startups can grow rapidly, and the founders find it dif- human resource issues. Closely related to being
ficult to deal with the emotional high and lows, and the a sounding board is a coach’s ability to ask tough
massive workloads involved.60 questions, such as asking why the executive is pur-
In the past, business psychologists were typically suing a particular strategy.61
hired as outside coaches to help managers become ● Making specific suggestions about self-promotion
more effective leaders. Today, people from a wide vari- and image enhancement, including suggestions
ety of backgrounds become executive coaches, as well about appearance and mannerisms.
as career coaches and life coaches. Many executive ● Helping the leader achieve a better balance between
coaches are former executives themselves. work and family life, thereby having more focused
energy for the leadership role.
Specific Forms of Assistance Provided ● Serving as a trusted confidante to discuss issues the
leader might feel uncomfortable talking about with
by Executive Coaches
others: for example, talking about feeling insecure
Executive coaches help managers become more effec- in their position.
tive leaders by helping them in a variety of ways. A va- ● Giving advice about career management, such as
riety of reasons for hiring coaches are described next. developing a career path.
However, it is unlikely that one coach would provide all
● Strengthening the executive’s strategic decision-
these services, or that one manager would want or need
making skills by helping the executive think more
all of them.
broadly about issues and appreciate how that per-
● Helping corporate stars attain peak performance, son’s actions will affect the organizational sys-
similar to an athletic coach working with an tem. The coach might point out a blind spot in the
Executive Coaching and Leadership Effectiveness 269
leader’s decision making, such as neglecting part of 180 coachees, 66 coaches, and 140 line managers of
the human consequences of a decision. the coachees. (A coachee is the person coached.) A
● Serving as a coach to the entire team to help guide control group of people on a waitlist for coaching was
the team to insights into their behavior as it affects part of the study. Positive outcomes from coaching
performance, and to help improve the teamwork.62 were observed by the coaches, the people coached, and
their line managers. Among the many positive effects
Note that the coach works as an adviser about be- were improved self-efficacy of the recipients of coach-
havior but does not explicitly help the leader with func- ing, enhanced psychological well-being, and demon-
tional details of the job, such as how to develop a new strating a more positive personality.64
product strategy or design an organization. Executive coaching, however, has some potential
The leader/manager’s employer usually hires the drawbacks for the leader. A major problem is that a
executive coach. The purpose of engaging the coach coach may give advice that backfires because the coach
could be to accelerate the development of a star player does not understand the particular work setting. One
or assist an executive who is having soft-skill prob- outside coach told a manager in an information tech-
lems. For example, the direct reports of a manager at nology firm that she should become more decisive in
a consulting firm referred to her as a “weed whacker,” her decision making and less dependent on consensus.
so an executive coach was hired to help the executive The advice backfired because the culture of the firm
develop more emotional intelligence. The executive emphasized consensus decision making. Many peo-
soon learned that employees perceived in her tone and ple who present themselves as executive coaches may
body language that she was attacking them. Coaching not be professionally qualified or may not have much
helped her soften her approach and work better with knowledge about business.
others.63 An ethical problem is that many coaches delve into
A refinement of individual coaching is for the coach personal and emotional issues that should be reserved
to work with both the individual and that individu- for mental health professionals. The distinction between
al’s work associates. The coach solicits feedback from coaching and therapy is blurred because both disci-
the group members and involves them in helping the plines deal with emotions and outward behavior driven
manager improve. For example, the coach might tell by emotions. The leader who is performing poorly be-
team members to assert their rights when the manager cause of a deep-rooted problem, such as hostility toward
throws a temper tantrum or makes unreasonable de- others, is given superficial advice about making nice.
mands. The coach might also work with the superiors (The opposite ethical problem occurs when a relation-
or peers of the person being coached to obtain useful ship coach offers business advice, without having the
feedback about the leader’s behavior. experience or qualifications to offer such advice.) An-
other potential ethical problem is that the leader/man-
Contributions of and Concerns ager may become too dependent on the coach, checking
before making any consequential decision.
About Executive Coaching
Finally, unlike conversations between a patient
Executive coaching may frequently accomplish several and a licensed psychotherapist, those between the cli-
of the ends specified in the previous list. A comprehen- ent and executive coach are not legally protected. This
sive study of executive coaching conducted in many could mean that the coach can report sensitive infor-
countries demonstrated many benefits. The study was mation, such as the client’s dislike of the CEO, back to
conducted in a global healthcare organization with the CEO.65
Reader’s Roadmap
So far, we have studied considerable information about the nature of leadership; the attributes, behaviors, and
styles of leaders; the ethics and social responsibility of leaders; and how leaders exert power and use politics and
influence. The techniques for developing teamwork are part of a leader’s relationship with the group, as is the subject
of this chapter: motivation and coaching skills. In the next chapter, we describe creativity and innovation as part of
leadership.
Summary
Effective leaders are outstanding motivators and by group members, (3) goals are more effective when
coaches, and the role of the leader and manager to- they are linked to feedback and rewards, (4) the
day emphasizes coaching. A broad purpose of lead- combination of individual and group goals is very
ers applying motivation and coaching techniques is effective, and (5) a learning goal orientation is more
getting employees involved in their work and excited effective than a performance goal orientation. A me-
about working for the organization. Engagement is ta-analysis of many studies supports the conclusions
reflected in employee willingness to stay with the firm just presented about the effectiveness of goals. People
and go beyond the call of duty. Leaders use motiva- generally prioritize the goal with the closest deadline.
tion and coaching techniques to help keep employees A major concern about using goals to motivate
engaged. Employee engagement has a positive im- performance is that leaders, as well as other work-
pact on productivity. Meaningful work is a key driver ers, will take unethical and dysfunctional shortcuts
of worker engagement. The opportunity to lead proj- to attain their goals. A heavy emphasis on goals
ects or task forces makes work meaningful, as does can also create problems such as workers focusing
having a good relationship with the leader, and the so much on attaining their goals that they neglect
feeling of making daily progress in one’s work. emergencies and new opportunities.
The expectancy theory of motivation is use- Motivating others by giving them recognition
ful for developing motivational skills because it and praise can be considered a direct application of
is comprehensive, building on other explanations positive reinforcement. Recognition programs to re-
of motivation. Expectancy theory has three major ward and motivate employees are standard practice.
components: valence, instrumentality, and expec- Recognition is a strong motivator because it is a nor-
tancy. Valence is the worth or attractiveness of an mal human need to crave recognition, and workers
outcome. Each work situation has multiple out- often do not feel they receive enough recognition.
comes, and each outcome has a valence of its own. To appeal to the recognition need, identify a mer-
Valences range from –100 to +100 in the version of itorious behavior and then recognize that behavior
expectancy theory presented here. Zero valences re- with an oral, written, or material reward. To maxi-
flect indifference and therefore are not motivational. mize its motivational impact, recognition should be
Very high valences help explain why some people linked to corporate values and personal goals. Recog-
persist in efforts despite a low probability of pay- nition and praise are no-cost or low-cost motivators
off. Instrumentality is the individual’s assessment of that are powerful. The basic human relations prin-
the probability that performance will lead to certain ciple of giving recognition by thanking people for a
outcomes. (An outcome is anything that might stem job well done and expressing gratitude has received
from performance, such as a reward.) Expectancy considerable recent attention by leadership writers.
is an individual’s assessment of the probability that Giving workers an opportunity to experience
effort will lead to performing the task correctly. pride can be a strong internal motivator, yet work-
Expectancy theory has implications and provides ers still receive recognition. To motivate through
guidelines for leaders, including the following: (1) de- pride, it is best for the manager to set the compass
termine necessary performance levels, (2) make the on pride, not money, and for workers to be proud of
performance level attainable; (3) train and encour- daily accomplishments.
age people, (4) make explicit the link between re- A major purpose of coaching is to achieve en-
wards and performance, (5) make sure the rewards thusiasm and high performance in a team setting.
are large enough; (6) analyze factors that oppose the Several characteristics of coaching contribute to
effectiveness of the reward, (7) explain the mean- its close relationship with leadership. Coaching is
ing and implications of second-level outcomes, and a two-way process, suggesting that being a great
(8) understand individual differences in valences. coach requires having a talented team. Coaching re-
Goal setting is a basic process that is directly or in- quires a moderate degree of interpersonal risk and
directly part of all major theories of motivation. Goal trust on the part of both sides in the relationship.
theory includes the following ideas: (1) specific and Effective coaching focuses on the growth and devel-
difficult goals result in high performance (yet outra- opment of people rather than telling them how to
geous goals can inspire), (2) goals must be accepted deal with a given situation.
Executive Coaching and Leadership Effectiveness 271
Suggestions for improving coaching are as fol- Managers frequently consult executive coaches
lows: (1) define the communicate clear expecta- to help them be more effective leaders. Such coaches
tions, (2) build relationships, (3) give feedback on provide a variety of services, including helping at-
areas that require specific improvement, (4) pro- tain peak performance, counseling about weak-
vide regular on-the-spot feedback for what is going nesses, helping achieve balance in life, helping the
well, (5) listen actively, (6) help remove obstacles, leader uncover hidden assets, and giving career ad-
(7) give emotional support and empathy, (8) work vice. Executive coaching often achieves its purposes,
on a solution together, (9) reflect content or mean- yet there are potential problems: Executive coaches
ing, (10) give gentle advice and guidance, (11) allow can give bad advice, the coach might be unqualified
for modeling of desired performance and behavior, in general or to deal with mental health issues, and
(12) gain a commitment to change, and (13) ap- the leader may become too dependent on the coach.
plaud good results. Also, conversations between the client and the exec-
utive coach are not legally protected.
Key Terms
engagement 250 expectancy theory 255 expectancy 256
meaningful work 252 valence 255 self-efficacy 256
leader–member exchange outcome 255 goal 257
(LMX) 254 instrumentality 255 executive coaching 268
A positive picture of worker engagement is usually are doing for them” to give encouragement for a
painted by management researchers and manage- job well done
ment consultants. Nevertheless, there appears to be ● Comradeship with the boss
an optimum amount of engagement for leaders and ● A pat on the back, fist bump, or handshake
their subordinates. It is possible for highly engaged ● Public expression of appreciation such as on
employees to become so involved in their job that an intranet or social media website (company
they become too little concerned about other import- exclusive or public), including a note of thanks
ant parts of their life. Studies have found that highly to the individual (handwritten, email, or text
engaged workers tend to suffer from work interfer- message)
ing with personal life, including the development of ● A flattering letter from a customer distributed
health problems. Highly engaged workers are also at over email
risk for burnout, leading to poor job performance.66 ● Employee of the month award
Given that recognition can be such a relatively ● A gift from the company recognition program,
low-cost, yet highly effective motivator, the leader/ such as a watch, a clock, or a pin
manager should keep in mind available forms of
Approaches to recognition may pack an extra
recognition. In addition to considering those in
punch when they do not take the same form every
the following list, use your imagination to think
time. For a job well done, the worker might receive
of other forms of recognition. For the recognition
a warm email one week, a gift certificate the next,
technique to work well, it should have high valence
and perhaps an employee of the month designation
for the person or group under consideration.
in the future.
● Compliments, such as “You help us accomplish
our mission,” or “Our customers love what you
Discussion Questions and Activities 7. For purposes of recognition, many companies give
1. Elizabeth Gaines, CEO of the Fortescue Metals out watches, clocks, sport shirts, and crystal vases
Group located in Australia, says that women lead- with a company logo embedded. What do you think
ers are the key to helping the company attain of the effectiveness of this form of recognition?
stretch goals. Do you think that Gaines is engaging 8. Imagine that you are a hospital administrator, and
in sexist thinking? you are told that a custodial worker just saved the
2. Why should a leader be concerned about employee life of a patient who was choking on a pretzel.
engagement when almost all of the leader’s direct What type of recognition would you give this cus-
reports are corporate professionals? todial worker?
3. To what extent would the amount of financial com- 9. Imagine that you have a couple of extra high per-
pensation you receive in a position influence your formers reporting to you, who are carrying out
level of engagement? all their job responsibilities in a superior manner.
4. Identify several outcomes you expect from occu- What kind of coaching might you conduct with
pying a leadership position. What valences do you these people?
attach to them? 10. Ask a manager or coach to describe the amount of
5. Explain which aspect of expectancy theory you coaching that person does on the job. Be prepared
think would actually be useful to you as a leader. to bring your findings back to class.
6. What is an example of a noble cause the plant man-
ager of a division that manufactures paperclips
might use to motivate workers?
Firing Up the Commercial Uniform Team Derrick notes, “Uniforms help provide dis-
Derrick is the regional manager for Commercial cipline to a business but they are losing a little
Uniform Inc. (CUI), a large company that proof their past popularity. It is much cheaper for a
vides uniforms for organizations such as hotels, hotel, bank, or large automobile service center to
car rental agencies, and banks that provide uni- allow employees to wear their own clothing to
forms for their employees. CUI also provides dry work. Derrick has been in contact with HR direc-
cleaning for the uniforms. Derrick is responsible tor Madison to discuss the challenges of keeping
for the operations of providing the uniforms and the van drivers charged up when raises and bo-
associated dry cleaning. His other responsibili- nuses will be almost nonexistent for the foresee-
ties also include running the office and making able future.
sure that the company fleet of delivery vans is Madison says she and the CEO believe that
running smoothly. recognition in the form of praise should be an
The van drivers are the heart of the commer- effective way to motivate almost any van driver.
cial laundry business because they pick up and Madison said she would be sending instructions
deliver the uniforms that require dry cleaning. to Derrick about praising drivers by both email
The drivers also deliver new uniforms to custom- and the company intranet. Derrick believes that
ers. Wages of the van drivers have been flat for he does use praise, but would now do it more sys-
several years because competition makes it dif- tematically, following some of the ideas in the in-
ficult to increase prices for services. Also, there formation disseminated by Madison.
has been a slight decline in the sale of uniforms Two days later, Derrick dropped by the cubicle
because more workplaces, such as hotels have of Courtney, the supervisor of customer billing.
shifted toward more informal business attire. After a couple of minutes of talk about her work,
Derrick recognizes also that other workers at Derrick said, “Courtney, it’s just great how you
CUI are experiencing similar problems about flat keep the money flowing into the company bank
wages, and a business in slight decline. account. Without your efforts CUI would have to
shut down.” Courtney replied, “Thanks Derrick, During a visit to the field, Derrick commented
have a great day.” to Boris, a supervisor of van drivers, “I like how
Later that day, Derrick visited a nearby com- hard and fast your drivers work. You set a high
pany warehouse where the drivers load their vans standard for our operations.” Boris replied,
before taking off on their route. Derrick said to “Right on, Derrick.”
Hector a van driver, “Top job. Without you mak-
ing timely stops at your customers, we have no Case Questions
business.” Hector smiled and said, “Thanks 1. How well is Derrick praising his workers?
Derrick. It feels great to make a contribution.” What advice can you offer him to be more ef-
Derrick liked the way her praise was going, fective in her praise?
so when she ran into Kaitlin, the sales manager, 2. Which statement of praise do you think was
in the office, he said, “You’re doing great. It’s so the most effective, and why?
much fun to be working with a cool and talented 3. Which statement of praise do you think was
woman.” Kaitlin replied with a quizzical look, the least effective, and why?
“Good enough Derrick, whatever you think.”

One student plays the role of Derrick who wants to recognition from Derrick. Another student plays the
use recognition to fire up several members of the role of Vanessa, a van driver who thinks she is the best
uniform delivery team. One student plays the role of driver in the company. When Derrick drops by Vanessa
Clyde, a van driver who thinks he has been doing a is expecting effusive praise. Run the role play for about
mediocre job, and because of it worries about his job nine minutes with observers providing feedback on
security. He is therefore somewhat surprised to receive the effectiveness of the recognition Derrick provides.
Guiding Britany to Find Her Purpose Duncan, the marketing manager at Health
Twenty-six-year-old Britany is the digital market- Superb and Britany’s immediate manager, is
ing manager for Health Superb, a company that satisfied with her performance as the digital
provides a weight-loss program for women and marketing manager. Yet he has concerns about
men. Customers purchase fourteen frozen meals whether she is passionate about her work, and
a week on a subscription basis. The food is deliv- also whether she has found the true purpose in
ered to the home or picked up at a retail outlet. her career. At times Duncan thinks that Britany
Customers also receive instructions about engag- accepted her position with Health Superb sim-
ing in physical exercise and avoiding high-caloric ply because she wanted experience in digital
snacks to supplement the food they receive from marketing.
Health Superb. Another service Health Superb Believing that passion and purpose are the
provides is customer support through a toll-free keys to worker motivation, Duncan decides to in-
number and Internet chat. The customer support terview Britany along these lines. An edited tran-
technicians are knowledgeable about dieting and script of the interview follows:
weight loss but are not necessarily professionals Duncan: Britany, what inspires you about
in nutrition or physical health. your position in our company?
Britany: Getting a regular paycheck is inspira- radio, and TV are losing their impact. That’s
tional when you have bills to pay. (Laughs) Seri- where I fit in. Digital marketing has multiplied in
ously, I enjoy digging deep into digital marketing. importance.
I am learning so much, as the technology keeps Duncan: I have enjoyed our candid conver-
changing and the competition gets tougher ev- sation. But I recommend that you do some soul
ery few months. The fact that we do help some searching to find out why you are working in
customers achieve their goal of losing weight is this industry, and what you are doing to help the
pretty decent. world.
Duncan: What did you enjoy working on the Britany: Don’t get me wrong. I think that our
most in recent months and why? diet program helps some people who think they
Britany: I worked very hard to put together need to lose weight and cannot do it on their own.
a Facebook ad in conjunction with Katrina and
Max (two members of the marketing team). We Case Questions
got a whole bunch of engagement. 1. To what extent do you think that Britany has
Duncan: What was especially good about that found a purpose that will keep her highly
accomplishment? motivated?
Britany: People are so blitzed with ads these 2. What would you recommend Britany do to
days about weight loss that it’s tough to get no- find a way to make her work more meaning-
ticed. And we did, so that’s terrific. ful and purposeful?
Duncan: How is your work today getting 3. What is your opinion as to whether or not
you closer to what you want to achieve in your Duncan is invading Britany’s privacy with his
career? line of questioning?
Britany: The experience I am accumulating is
getting me close to getting your job. (Laughs) I Sources: The manager in this case based a couple of
hope to become a big-company marketing execu- his questions on the following sources: Kristi Hedges,
tive in a consumer-products company. I feel I am “5 Questions to Help Your Employees Find Their In-
on the right track here at Health Superb. ner Purpose,” Harvard Business Review, August 17,
Brett: What is the purpose of your work at 2017, pp. 3–4; Amy Jen Su, “How to Help Someone to
Superb? Discover Work That Excites Them,” Harvard Business
Britany: Face it, Duncan, the company needs Review, September 12, 2017, pp. 1–5.
to make a profit to survive. My purpose is to
add to the top line and the bottom line. Print,

One student plays the role of Duncan who decides who thinks she knows the purpose of her role at
to conduct a Zoom interview with Britany to fulfill Health Superb quite well, but is at least amenable to
his leadership responsibility of guiding and helping having a conversation with Duncan about the topic.
direct reports find their purpose. He thinks that she Other students might provide feedback about how
made progress toward finding a purpose in their face- much progress Duncan is making in guiding Britany
to-face interview, but he thinks that more guidance toward becoming a worker who has a passionate
is needed. Another student plays the role of Britany purpose in their work at Health Superb.
Notes 275
One of the easiest and most powerful ways of motivating generous tip. Or find some helper to recognize with a com-
people is to recognize their efforts, as described in this pliment but without a tip. Observe the responses of these
chapter. Like any other interpersonal skill, being effective people—both their facial expressions and what they say. Of
at giving recognition takes practice. During the next week, even more importance, observe if any of these people ap-
find three people to recognize, and observe how they re- pear eager to serve you the next time you interact with them.
act to your recognition. For example, if a server gives you As with other parts of your leadership portfolio, keep a
fine service, explain after the meal how much you enjoyed written record of what happened to you and how much skill
the service and leave a larger-than-average tip. If your hair you think you have developed.
stylist does a fine job, similarly provide a compliment and a
Notes
1. Original story based on facts and observations 7. Susan Sorenson and Keri Garman, “How to Tackle
in the following sources: Brian O’Keefe, “Busi- U.S. Employees’ Stagnating Engagement,” Gallup
ness-Person of the Year: 2 Elizabeth Gaines, Business Journal (http://businessjournal.gallup
CEO Fortescue Metals Group,” Fortune, De- .com/), June 11, 2013, pp. 1–2.
cember 2019, pp. 78–79; Jennifer Hewett, “The 8. Garry Kraus, “Employees Want Feedback—Even
Secret of Elizabeth Gaines’ Success,” Finan- If It’s Negative,” Workforce Management, February
cial Review (www.afr.com), December 18, 2020, 2010, pp. 10–11.
pp. 1–5; “Elizabeth Gaines,” Forbes (www.forbes 9. Zinta S. Byrne, Janet M. Peters, and James W.
.com), 2021, p. 1; Rachel Pupazzoni, “Elizabeth Weston, “The Struggle with Employee Engage-
Gaines—the Driving Force Behind Fortescue Met- ment: Measures and Construct Clarification Using
als Group,” ABC News (www.abcnet.au), June Five Samples,” The Journal of Applied Psychology,
26, 2020, pp. 1–11; “Executive Team: Elizabeth September 2016, p. 1222.
Gaines, Chief Executive Officer,” Fortescue (www 10. Susie Cranston and Scott Keller, “Increasing the
.fmgl.com.au), 2021, pp. 1–3. ‘Meaning Quotient’ of Work,” McKinsey Quarterly
2. Michael S. Christian, Adela S. Garza, and Jerel (www.mckinseyquarterly.com), January 2013, pp. 4–5.
E. Slaughter, “Work Engagement: A Quantitative 11. Ibid.
Review and Test of Its Relation with Task Perfor- 12. Martin Dewhurst, Matthew Guthridge, and Elizabeth
mance,” Personnel Psychology, no. 1, 2011, p. 89. Mohr, “Motivating People: Getting Beyond Money,”
3. Zinta S. Byrne, Janet M. Peters, and James W. McKinsey Quarterly (www.mckinseyquarterly
Weston, “The Struggle with Employee Engage- .com), November 2009, pp. 1–2.
ment: Measures and Construct Clarification Using 13. “Boss Talk: Makoto Uchida: Nissan’s Unlikely
Five Samples,” Journal of Applied Psychology, Sep- CEO,” The Wall Street Journal, March 13–14, 2021,
tember 2016, p. 122. p. B8.
4. Maria Tims, Arnold B. Bakker, and Despoina Xan- 14. Cited in Laura Raines, “Re-engaging Workers Is
thopoulou, “Do Transformational Leaders Enhance a Big Hurdle for HR,” AJC (www.ajc.com/jobs),
Their Followers’ Daily Work Engagement?” The March 17, 2011, p. 2.
Leadership Quarterly, February 2011, pp. 121–131. 15. Survey cited in “Special Report: Employee Engage-
5. Steve Crabtree, “Worldwide, 13% of Employees Are ment,” Workforce Management, July 11, 2011, p. 26.
Engaged at Work,” Gallup.com (http://www.gallup 16. Tyler C. Burch and Cristiano L. Guarana, “The
.com), October 8, 2013, pp. 1–6. Comparative Influences of Transformational Lead-
6. Cited in Gary Kranz, “Employees Want Feedback, ership and Leader-Member Exchange on Follower
Even If It’s Negative,” Workforce Management, Feb- Engagement,” Journal of Leadership Studies, no. 3,
ruary 2010, p. 11. 2014, pp. 6–25.
17. Tersa Amabile and Steven Kramer, The Progress 28. Maurice E. Schweitzer, Lisa Ordoñez, and Bambi
Principle Using Small Wins to Ignite Joy, Engage- Douma, “Goal Setting as a Moderator of Unethical
ment, and Creativity at Work (Boston, MA: Harvard Behavior,” The Academy of Management Journal,
Business School Press, 2011). June 2004, p. 430.
18. Bradley P. Owens, Wayne E. Baker, Dana McDaniel 29. Massimo Calabresi, “Wells Fargo Customer Fraud
Sumpter, and Kim S. Cameron, “Relational Energy Deals Political Setback to Banks,” Time, October
at Work: Implications for Job Engagement and Job 3, 2016, p. 14; Rachel Louise Ensign, Yuka Ha-
Performance,” Journal of Applied Psychology, Janu- yasi, and Emily Glazer, “Wells CEO Placed on Hot
ary 2016, pp. 35–49. Seat Again,” The Wall Street Journal, September 30,
19. Thad Green, Motivation Management: Fueling Per- 2016, p. C2.
formance by Discovering What People Believe About 30. Cited in Adriana Gardella, “Owner Gets Lesson in
Themselves and Their Organizations (Palo Alto, CA: Managing Sales Reps,” The New York Times, Febru-
Davies-Black Publishing, 2000). An original version ary 4, 2013, p. 1.
of expectancy theory applied to work motivation is 31. Lisa D. Ordóñez, Maurice E. Schweitzer, Adam
Victor H. Vroom, Work and Motivation (New York: D. Galinksy, and Max H. Bazerman, “Goals Gone
Wiley, 1964). Wild: The Systematic Side Effects of Overprescrib-
20. David A. Nadler and Edward E. Lawler III, “Moti- ing Goal Setting,” Academy of Management Perspec-
vation: A Diagnostic Approach,” in Richard Hack- tive, February 2009, p. 14.
man, Edward E. Lawler III, and Lyman W. Porter 32. Tony Schwartz, “Powering Employees with More
(eds.), Perspectives on Behavior in Organizations, Than a Paycheck,” The New York Times Dealbook
Second Edition (New York: McGraw-Hill, 1983), (http://dealbook.nytimes.com/), November 10,
pp. 67–78; James A. F. Stoner and R. Edward Free- 2013, p. 2.
man, Management, Fourth Edition (Upper Saddle 33. “Employees Want More Recognition, Growth Op-
River, NJ: Prentice Hall, 1989), p. 448. portunity,” American Psychological Association
21. Literature reviewed in Gerard H. Seijts, Gary P. (www.phwa.org/media), 2011.
Latham, Kevin Tasa, and Brandon W. Latham, 34. Rita Pyrilis, “Finger Lickin’ Meets Rubber
“Goal Setting and Goal Orientation: An Integration Chicken,” Workforce, May 2016, pp. 40–42.
of ‘Two Different Yet Related Literatures’,” Academy 35. Leslie Gross Klaff, “Getting Happy with the Re-
of Management Journal, April 2004, pp. 227–228. wards King,” Workforce, April 2003, p. 47.
22. Edwin A. Locke and Gary P. Latham, A Theory of 36. Analysis presented in Tessa E. Basford and Andrea
Goal Setting and Task Performance (Upper Saddle Molberg, “Dale Carnegie’s Leadership Principles:
River, NJ: Prentice Hall, 1990); Latham, Work Moti- Examining the Theoretical and Empirical Sup-
vation: History, Theory, Research, and Practice (Thou- port,” Journal of Leadership Studies, no. 4, 2013,
sand Oaks, CA: Sage Publications, 2007; Locke and p. 34.
Latham, eds., New Developments in Goal Setting and 37. Adrian Gostick and Chester Elton, The Carrot Prin-
Task Performance (New York, NY: Routledge, 2013). ciple: How the Best Managers Use Recognition to
23. “Motivate Staff with Noble Cause,” Manager’s Edge, Engage Their People, Retain Talent, and Accelerate
June 2005, p. 1. Performance (New York: The Free Press, 2007).
24. John J. Donavan and David J. Radosevich, “The 38. “Raise Workplace Morale without Spending a
Moderating Role of Goal Commitment on the Goal Dime,” Communication Briefings, April 2010, p. 5.
Difficulty–Performance Relationship: A Meta-An- 39. Andrew J. DuBrin, “Self-Perceived Technical Ori-
alytic Review and Critical Reanalysis,” Journal of entation and Attitudes toward Being Flattered,”
Applied Psychology, April 1998, pp. 308–315. Psychological Reports, vol. 96, 2005, pp. 852–854.
25. Ad Kleingeld, Heleen van Mierlo, and Lidia Arends, 40. Bob Nelson, “Does One Reward Fit All?” Workforce,
“The Effect of Goal Setting on Group Performance: February 1997, pp. 67–70.
A Meta-Analysis,” Journal of Applied Psychology, 41. Quoted in Jennifer Thomas, “Motivating Workers,”
November 2011, pp. 1289–1304. HR Magazine, Summer 2020, p. 82.
26. Nicholas Bloom, Raffela Sadun, and John Van Re- 42. Lauren R. Locklear, Shannon G. Taylorm, and
enen, “How Three Essential Practices Can Address Maureen L. Ambrose, “Building a Better Workplace
Even the Most Complex Global Problems,” Harvard Starts with Saying ‘Thanks,’” Harvard Business Re-
Business Review, November 2012, pp. 76–82. view (https://hbr.org), November 20, 2020, pp. 1–5.
27. Timothy Ballard, Jeffrey B. Vancouver, and Andrew 43. Erica Boothby, Xuan Zhao, and Vanessa K. Bohns,
Neal, “On the Pursuit of Multiple Goals with Differ- “A Simple Compliment Can Make a Big Differ-
ent Deadlines,” Journal of Applied Psychology, No- ences,” Harvard Business Review (https://hbr.org),
vember 2018, pp. 1242–1264. February 24, 2021, pp. 1–5.
Notes 277
44. Kerry Roberts Gibson, Kate O’Leary, and Joseph R. 57. Andrew Nietlich, “Coaching vs. Consulting: Find
Weintraub, “The Little Things That Make Employ- the Perfect Balance to Get Buy-in and Results,”
ees Feel Appreciated,” Harvard Business Review www.clomedia.com, August 4, 2016. p. 2.
(https://hbr.org), July 23, 2022, pp. 1–7. 58. Jason J. Dahling, Samantha Ritchie Taylor, Sa-
45. Cited in John A. Byrne, “How to Lead Now,” Fast mantha L. Chau, and Stephen A. Dwight, “Does
Company, August 2003, p. 66. Coaching Matter? A Multilevel Model Linking Man-
46. Quoted in Sally Ward, “Coach Employees for Peak agerial Coaching Skill and Frequency to Sales Goal
Performance,” Democrat and Chronicle, November 12, Attainment,” Personnel Psychology, no. 4, 2016,
2013, p. 7A. pp. 863–894.
47. Alison Beard, “What Great Coaching Looks Like,” 59. Anna Marie Valerio and Robert J. Lee, Executive
(Interview with Richard Boyatsis), Harvard Busi- Coaching: A Guide for the HR Professional (San
ness Review (https://hbr.org), September 10, 2019, Francisco: Pfeiffer, 2005).
pp. 1–9. 60. Katherine Bindley, “Therapist of Coach? The Lines are
48. Douglas Riddle, “Prepping Tomorrow’s Leaders To- Blurring,” The Wall Street Journal, September 21-22,
day,” Leading Effectively (www.ccl.org), September 2019, p. B2.
2006. 61. Diane Brady, “The Unknown Guru,” Bloomberg
49. Robert D. Evered and James E. Selman, “Coaching Business Week, November 29–December 5, 2010,
and the Art of Management,” Organizational Dy- p. 86.
namics, Autumn 1989, p. 15. 62. “8th Annual Survey: Executive Coaching at the
50. “Coaching’s 3 Critical Steps,” Executive Leadership, Summit,” The Executive Coaching Survey 2013,
October 2016, p. 4. © Sherpa Coaching, p. 8.
51. “Coaching—One Solution to a Tight Training Bud- 63. Michael Maccoby, “The Dangers of Dependence on
get,” HRfocus, August 2002, p. 7. Coaches,” Harvard Business Review, January 2009,
52. Tina Smagala, “Giving Effective Feedback on the p. 95.
Fly,” Democrat and Chronicle, May 28, 2013, p. 5B. 64. Erik De Haan, David E. Gray, and Sally Bonney-
53. Craig Chappelow and Cindy McCauley, “What well, “Executive Coaching Outcome Research in
Good Feedback Really Looks Like,” Harvard Busi- a Field Set4ting: A Near-Randomized Controlled
ness Review (https://hbr.org), May 13, 2019, pp. 1–3. Trial Study in a Global Healthcare Organization,”
54. Karen Wright, “A Chic Critique,” Psychology Today, Academy of Management Learning & Education, De-
March/April 2011, p. 59. cember 2019, pp. 581–605.
55. Marcus Buckingham and Ashley Goodall, “The 65. Bindley, “Therapist or Coach?”, p. B2.
Feedback Fallacy,” Harvard Business Review, 66. Lewis Garrad and Tomas Chamorro-Premuzic, “The
March-April 2019, pp. 92–101. Dark Side of High Employee Engagement,” Harvard
56. Lolly Daskal, “How to Coach a Struggling Em- Business Review (https://hbr.org), August 16,
ployee,” www.lollydaskal.com, January 23, 2020, p. 1. 2016, p. 3.
11
Chapter
Creativity, Innovation,
and Leadership
Learning Objectives
After studying this chapter and doing the exercises, you 11.4 Describe both organizational and individual approaches
should be able to to enhance creative problem solving.
11.1 Identify the steps in the creative process. 11.5 Articulate how the leader and the organization can
11.2 Identify characteristics of creative leaders and establish a climate that fosters creativity.
problem solvers. 11.6 Pinpoint several leadership practices that contribute to
11.3 Apply overcoming traditional thinking in order to organizational innovation.
become more creative.
Chapter Outline
Steps in the Creative Process Getting Advice from Someone Outside Your Field
Characteristics of Creative Leaders Playing the Roles of Explorer, Artist, Judge, and Lawyer
Knowledge Engaging in Appropriate Physical Exercise
Cognitive Abilities Soliciting Feedback on Your Performance
Personality Establishing a Climate and Culture for Creative Thinking
Passion for the Task and the Experience of Flow Fostering a Culture of Originality
Overcoming Traditional Thinking as a Creativity Strategy Leadership Practices for Enhancing Creativity
Organizational Methods to Enhance Creativity and and Innovation
Innovation Methods of Managing Creative Workers
Systematically Collecting Fresh Ideas Leadership Practices Focused Specifically on Enhancing
Brainstorming Innovation
The Morality of Enhancing Creativity Summary
Self-Help Techniques to Enhance Creative Problem Solving Key Terms
Overcoming the Self-Perception That You Are Not Creative Guidelines for Actions and Skill Development
Practicing Creativity-Enhancing Activities Leadership Case Problem A
Staying Alert to Opportunities Leadership Case Problem B
Maintaining an Enthusiastic Attitude, Including Being Happy Notes
Maintaining and Using a Systematic Place for Recording Your
Ideas
278
Steps in the Creative Process 279
A
bout eight years ago, the tool company Stanley Black & Loree has a background in finance rather than engineering.
Decker organized a task force of engineers in a Towson, He joined GE as an auditor, worked there for nineteen years, and
Maryland strip mall office. The engineers were instructed then was recruited into Stanley Works as chief financial officer.
to develop something new in cordless power tools. Three months In 2009 with assist of Loree, Stanley acquired Black & Decker, a
later, James M. Loree, the company’s chief executive officer at century-old manufacturer of power tools.
time checked in. The Towson task force demonstrated a novel way As part of the Stanley Black & Decker innovation strategy, the
to arrange the cells in a battery to make the voltage adjustable. company has an advanced manufacturing center in Hartford, Con-
Loree liked what he saw, and asked what the group of engineers necticut that tests new technologies such as a 3D metal printing pro-
would need to have the battery ready for production within one cess that could enable a tool company to print out products in retail
year. The group asked for a budget of $30 million. Loree asked the outlets. Loree believes that by pushing creativity and innovation his
chief financial officer (CFO), “Are we good for that?” “You bet” was company will be part of the future of American manufacturing.
the CFO’s response. Loree explains that Stanley Black & Decker takes an inno-
Stanley Black & Decker originated 180 years ago. Today vative approach to being a good corporate citizen. He says, “Ev-
Stanley Black & Decker is a Fortune 500 company, with over ery day we work to inspire makers and innovators to create a
$14 billion in annual revenue. The company’s tools, solutions, more sustainable world…. We have a long history of and a deep
and service can be found in virtually every company across the focus on environment, health and safety, social responsibility,
globe. Loree says the company has survived for so long by in- and community engagement to build on.” A few specific envi-
vesting money in long shots like the battery. He says, “History is ronmental targets met in 2020 were a 20 percent reduction in
littered with stories about legacy companies that were compla- energy use, the recycling or reuse of 80 percent of all waste gen-
cent, inwardly focused, and arrogant.” Carpenters have become erated, the use of renewable sources for more than 10 percent
dependent on expensive Stanley Black & Decker batteries. They company energy consumption, and zero life-changing injuries.
are willing to pay a premium price to build a house without hav- Loree is a trustee of his alma mater, Union College, where
ing to be concerned about lugging a noisy generator to the work he received a B.A. in economics. He is a director of both the
site, and tripping over power cords. Hartford Hospital and the Jim and Rebecca Loree Foundation.1
The story about Stanley Black & Decker illustrates the im- additional business or start a new department that offers
portance of having leaders who think innovatively to move another service. A synthesis of 185 studies indicates that
a traditional, long-standing type of organization forward. the leaders’ efforts in facilitating creativity and innova-
An IBM survey of 1,500 chief executive officers (CEOs) tion are worthwhile. The analysis found clear theoretical
across thirty-three industries and sixty countries also em- and empirical evidence demonstrating that leadership
phasizes the relevance of creativity in organizations. It is a key variable that can enhance workplace creativity
was found that the number one attribute CEOs look for and innovation.4 Much of this chapter explains how the
in their new hires is not discipline, integrity, cognitive in- leader facilitates creativity and innovation.
telligence, or emotional intelligence. It is creativity.2 (The This chapter emphasizes the development of cre-
other attributes, however, often contribute to creativity.) ativity in the leader. It also explains the nature of cre-
By thinking creatively, a person can form a new enter- ativity and creative people and examines the leader’s
prise or enlarge an existing one that can keep many people role in establishing an atmosphere that helps group
engaged in productive activity. However, the creative idea members become more creative, along with leadership
has to be executed properly for innovation to take place. practices conducive to innovation.
Although the terms creativity and innovation are often
used interchangeably, innovation refers to the creation
of new ideas and their implementation or commercial-
ization. True innovation involves a breakthrough develop- Steps in the Creative Process
ment, and is regarded by some management thinkers as
the only sustainable source of competitive advantage.3 Learning Objective 11.1 Identify the steps in the creative
The role of a creative leader is to bring into existence process.
ideas and things that did not exist previously or that ex-
isted in a different form. Leaders are not bound by cur- An important part of becoming more creative involves
rent solutions to problems. Instead, they create images understanding the stages involved in creativity, which
of other possibilities. Leaders often move a firm into an is generally defined as the production of novel and
280 Chapter 11 Creativity, Innovation, and Leadership
Step 1 Step 2 Step 3

Opportunity or Immersion Incubation
problem recognition
Step 5 Step 4
Verification and Insight
application
Figure 11-1 Steps in the Creative Process.
useful ideas. A still well-accepted model of creativity be ideally suited to the Internet because a vast data-
developed almost ninety-five years ago can be applied base could be shared with an almost unlimited num-
to organizations. This model divides creative thinking ber of users. The aha! experience usually arrives after
into five stages,5 as shown in Figure 11-1. Step 1 is op- hours of thought and study, as indicated by Step 2,
portunity or problem recognition: A person discovers immersion.
that a new opportunity exists or a problem needs to be Step 5 is verification and application: The individual
resolved. One day in 1994, a financial analyst named sets out to prove that the creative solution has merit.
Jeff Bezos was seated at his desk at the New York hedge Verification procedures include gathering supporting
fund, D. E. Shaw, when he noticed an astonishing sta- evidence, using logical persuasion, and experimenting
tistic: The number of Internet users was growing by with new ideas. Application requires tenacity because
2,300 percent per year. Bezos thought that there must most novel ideas are first rejected as being impracti-
be some good way to commercialize this development. cal. The day after his insight experience, Bezos flew to
Bezos was concerned that he or his company had not Los Angeles to the American Booksellers’ Convention
yet capitalized on the revolutionary development called to learn all he could about the book business. One key
the Internet. He detected an opportunity for some kind fact he found was that the major book wholesalers had
of business, but he did not yet know which one.6 already assembled electronic lists of their inventory.
Step 2 is immersion: The individual concentrates Bezos reasoned that the potential new venture only
on the problem and becomes immersed in it. The in- needed one Internet location where the book-buying
dividual will recall and collect information that seems public could search through the stock and place orders
relevant, dreaming up alternatives without refining or directly.
evaluating them. Bezos grabbed every fact he could Because his employer wasn’t interested in jumping
about mail-order businesses and thought about which into the Internet bookselling business, Bezos decided
ones could be conducted more efficiently over the In- to go into business for himself, founding Amazon.com.
ternet than by the traditional means, such as phoning He and MacKenzie Scott, his wife at the time, then
in or writing for orders. drove to Seattle, Washington, to set up the new busi-
Step 3 is incubation: The person keeps the assem- ness, drawing up the business plan as they rolled down
bled information in mind for a while. They do not ap- the highway in a 1988 Chevy Blazer.
pear to be working on the problem actively, but the Bezos’ opportunity spotting has evolved into a ma-
subconscious mind is still engaged. While the informa- jor business corporation that now sells all kinds of
tion is simmering, it is being arranged into meaningful merchandise in addition to books and music, as well as
new patterns. Bezos kept thinking about using the In- information technology services such as cloud comput-
ternet for a mail order business while performing his ing. Today, Amazon.com is the largest online retailer
regular work. in the world, and also regarded by many as the world’s
Step 4 is insight: The problem-conquering solution largest retailer. The end product of Bezos’ creative
flashes into the person’s mind at an unexpected time, thinking was a business opportunity rather than an in-
such as on the verge of sleep, during a shower, or while vention. Nevertheless, businesspeople typically follow
running. Insight is also called the Aha! experience: All the same five steps of creative thought as do inventors.
of a sudden, something clicks. At some point it clicked Even though creativity usually follows the same steps,
in Bezos’s mind that books were the commodity for it is not a mechanical process that can be turned on
which no comprehensive mail order catalogue existed and off. Much of creativity is intricately woven into a
because a catalogue of this nature would be much too person’s intellect and personality, including being ob-
large to mail profitably. A catalogue of this type would servant and having sharp intuition.
of computer hardware and software. He was also fas-

Characteristics of Creative Leaders cinated with calligraphy in college that helped him
sharpen his sense of design. Jobs said at the peak of
his career something to the effect that creativity is the
Learning Objective 11.2 Identify characteristics of
result of having enough dots to connect. (The dots are
creative leaders and problem solvers.
bits of knowledge.)
Creative leaders, like creative workers of all types, are An example of connecting dots is the development
different in many ways from their less creative counter- of high-tech activity monitors that provide real-time in-
parts. They are devoted to their fields and enjoy intel- formation about physical activity and such indices as
lectual stimulation, and they challenge the status quo, calories burned. The dots connected were (1) peoples’
which leads them to seek improvements. Above all, cre- interest in physical health and conditioning and (2) an
ative people are mentally flexible and can see past the obsession for portable electronic devices.
traditional ways of looking at problems.
As described next, the specific characteristics of Cognitive Abilities
creative people, including creative leaders, can be
grouped into four areas: knowledge, cognitive abili- Cognitive abilities comprise such abilities as general
ties, personality, and passion for the task and the ex- intelligence and abstract reasoning. Creative problem
perience of flow.7 These characteristics are highlighted solvers characteristically have well above-average cog-
in Figure 11-2. Before studying this information, com- nitive intelligence. Creative people are facile at gener-
pare your thinking to that of a creative person by doing ating creative solutions to problems in a short period
Leadership Self-Assessment Quiz 11-1. of time. Creative people also maintain a youthful cu-
riosity throughout their lives, and the curiosity is not
centered just on their own field of expertise. Instead,
their range of interests encompasses many areas of
Knowledge
knowledge, and they are enthusiastic about puzzling
Creative problem solving requires a broad background problems. These mental workouts help sharpen a per-
of information, including facts and observations. son’s intelligence.
Knowledge provides the building blocks for generating A study conducted in call centers lends support to
and combining ideas. Most creative leaders are knowl- the link between curiosity and creativity. Incoming hires
edgeable, and their knowledge contributes to their cha- at ten organizations completed a survey that measured
risma. A well-known case in point is Steven P. Jobs, curiosity among other factors. Four weeks later, employ-
the late chief executive of Apple Inc. He contributed ees were surveyed about various aspects of their roles. It
design and marketing decisions to most of Apple’s key was found that the most curious employees sought the
products, and he played a major role in the develop- most information from coworkers, and the information
ment of the popular iPhone and iPad. A contributor helped them in their jobs. For example, it boosted their
to Jobs’ creativity is his in-depth technical knowledge creativity in resolving customer concerns.8
Knowledge
Knowledgeable about
wide range of information
Personality Cognitive Abilities

Nonconformist Highly intelligent
Self-confident Intellectually curious
Thrill-seeking Able to think divergently
Energetic
Persistent
Passion for the Task

and Flow
Figure 11-2 Characteristics of Creative Leaders.
The Creative Personality Test

Instructions: Describe each of the following statements as “mostly true” or “mostly false.”
Mostly Mostly
True False
1. It is generally a waste of time to read Internet articles, magazine articles, and books
outside my immediate field of interest.
2. I frequently have the urge to suggest ways of improving products and services I use.
3. Taking an elective course outside of my major is (or was, or would be) a time waster.
4. I am a person of very strong convictions. What is right is right; what is wrong is wrong.
5. I enjoy it when my boss hands me vague instructions.
6. Making order out of chaos is actually fun.
7. Only under extraordinary circumstances would I deviate from my To Do list (or

other ways in which I plan my day).
8. I sometimes use search engines other than Google just to explore something different.
9. Rules and regulations should not be taken too seriously. Most rules can be broken
under unusual circumstances.
10. Playing with a new idea is fun even if it does not benefit me in the end.
11. Some of my best ideas have come from building on the ideas of others.
12. In writing, I try to avoid the use of unusual words and word combinations.
13. I frequently jot down improvements in the job I would like to make in the future.
14. I prefer to stay with technology devices I know well rather than frequently updat-
ing my equipment or software.
15. I prefer writing personal notes or poems to loved ones rather than relying on greet-
ing cards.
16. At one time or another in my life, I have enjoyed doing puzzles.
17. If your thinking is clear, you will find the one best solution to a problem.
18. It is best to interact with coworkers who think much like you.
19. I would readily accept an assignment to a new product development committee.
20. Tight controls over people and money are necessary to run a successful organization.
Scoring and Interpretation: Give yourself a score of 1 for each answer that matches the answer key:
1. Mostly false 8. Mostly true 15. Mostly true
2. Mostly true 9. Mostly true 16. Mostly true
3. Mostly false 10. Mostly true 17. Mostly false
4. Mostly false 11. Mostly true 18. Mostly false
5. Mostly true 12. Mostly false 19. Mostly true
6. Mostly true 13. Mostly true 20. Mostly false
7. Mostly false 14. Mostly false
Total score: ________
(continued)
Quiz5-3
11-1 (continued)
Extremely high or low scores are the most meaningful. A score of 15 or more suggests that your personality and attitudes are
similar to those of creative people, including creative leaders. A score of 8 or less suggests that you are more of an intellectual
conformist at present. Do not be discouraged. Most people can develop in the direction of becoming more creative.
How does your score compare to your self-evaluation of your creativity? We suggest you also obtain feedback on your
creativity from somebody familiar with your thinking and your work.
Creative people show an identifiable intellectual of knowing or reasoning in which weighing and balanc-
style: being able to think divergently. They are able ing evidence are done unconsciously and automatically.
to expand the number of alternatives to a problem, The Aha! experience is an example of intuition. The yo-
thus moving away from a single solution. Yet, the cre- gurt entrepreneur mentioned above showed strong in-
ative thinker also knows when it is time to narrow the tuition when he saw the possibilities in an abandoned
number of useful solutions. For example, the diver- and dilapidated yogurt plant. The rise of data analyt-
gent thinker might think of twenty-seven ways to re- ics has prompted many executives and management
duce costs, but at some point, the person will have to writers to believe that intuition has become less im-
move toward choosing the best of several cost-cutting portant in making creative decisions. Brad Fisher, the
approaches. U.S. leader of data and analytics at the consulting firm
A hallmark of a creative businessperson’s intellect is KPMG, said that companies beefing up their analytics
to spot opportunities that others might overlook. A case must also find ways to sharpen executives’ instincts (in-
in point is Hamdi Ulukaya, a Turkish immigrant who tuition). Fisher says, “You should collect as many data
launched Chobani brand yogurt in 2007. At the time, points as you can, but don’t throw out your intuition.”12
the Greek market share of yogurt in the United States Take Leadership Self-Assessment Quiz 11-2 to think
was less than 1 percent. Today the share is over 60 per- through your own intuition tendencies.
cent. Ulukaya says that the growth of his enterprise
began when he spotted an abandoned and dilapidated
yogurt plant Kraft Foods was looking to sell. With only Personality
$3,000 left in his pocket, Ulukaya needed an opportu- Personality factors or the noncognitive aspects of an
nity to make a living.9 individual heavily influence creative problem solv-
The popular belief that creative people are right- ing. Creative people tend to have a positive self-image
brain dominant, whereas left-brain dominant people without being blindly self-confident. But because they
are more logical, detail-oriented, and analytical, has are reasonably self-confident, they are able to cope
been challenged by brain specialists. Neuroscience with criticism of their ideas, and they can tolerate the
research suggests that developing original ideas is a isolation necessary for developing ideas. Part of the
process, and not something that stems from one side self-confidence of a creative worker focuses on the belief
of the brain. Based on 20 years of research, creativity that they can solve problems creatively. Talking to oth-
specialist Ned Herrmann concluded that creativity is ers is a good way to get ideas, yet at some point the cre-
a mental process utilizing all the brain’s special capa- ative problem solver has to work alone and concentrate.
bility. A creative person is therefore “whole-brained,” Self-confidence is an influential factor for enhanc-
rather than left-brained or right-brained.10 Antonio ing the creativity necessary for successful entrepre-
Damasio, director of the Brain and Creativity Institute neurship. A report on entrepreneurial success notes
at the University of Southern California, explains that that “You have to be crazy-sure your product or service
there is a high level of cooperation between different is something the world needs and that you can deliver
parts and systems within the brain. As a result, creative it to overcome the naysayers, who will always deride
problem solving is orchestrated by different parts of what the majority has yet to validate.”13
the brain working together. The imagination that is an Creative people are frequently nonconformists and
integral part of creativity stems from memory because do not need strong approval from the group. They pre-
memory is necessary to recognize when something is fer to search for alternatives than worry about attain-
original—a key component of creativity.11 ing consensus.
A major cognitive contributor to creative thinking is Many creative problem solvers are thrill seekers
intuition. The term refers to an experience-based way and risk takers who find that developing imaginative
Self-Assesment Quiz
11-2
The Intuitive Problem-Solving Style Quiz

Indicate your strength of agreement with each of the following statements: SD—strongly disagree; D—disagree; N—neutral;
A—agree; SA—strongly agree.
SD D N A SA
1. Most of my hunches prove to be correct. 1 2 3 4 5
2. Details tend to take care of themselves providing you are on the right 1 2 3 4 5
track with your plans.
3. Before attempting to solve a problem, I gather a large number of relevant 5 4 3 2 1
facts.
4. Relying on gut feel is a terrible way for a business executive to make a 5 4 3 2 1
decision.
5. When I meet a person for the first time, I take my time in deciding 5 4 3 2 1
whether that person and I will get along.
6. It takes me about ten seconds to know if I am physically attracted to an- 1 2 3 4 5
other person. (Skip this question if you are in a committed relationship.)
7. It takes me a long time to decide whether I like the color on a vehicle I 5 4 3 2 1
am thinking about purchasing.
8. I need, or would need, to gather a lot of facts before I would purchase 5 4 3 2 1
stock in a specific company.
9. When making an important decision, it is much better to gather new 5 4 3 2 1
facts rather than rely on past experience.
10. When making an important decision, it is much better to gather new 5 4 3 2 1
facts rather than rely on past experience.
11. Common sense is an effective source of information for making decisions. 1 2 3 4 5
12. I usually “jump to a conclusion” when making a decision. 1 2 3 4 5
13. My best ideas have come from flashes of insight. 1 2 3 4 5
14. Unless a person is rational and systematic, that person is unlikely to 5 4 3 2 1
make effective decisions.
15. I am more impulsive than reflective. 1 2 3 4 5
16. When the “light bulb goes on” I know that I have a useful idea. 1 2 3 4 5
Scoring and Interpretation: Find your total score by summing the point values for each question.
● 65–80: You probably have a strong intuitive decision-making style that facilitates being a creative thinker.
● 36–64: You probably have a balanced approach between an intuitive decision-making style and one that relies more on
facts and research.
● 16–35: Your decision-making style probably emphasizes basing your decisions on facts and careful observation rather than
on intuition which could be a deterrent to your creativity.
solutions to problems is a source of thrills. Cofounder verification and application stage of creative thinking.
of Google Larry Page, a big risk taker himself, has Selling a creative idea to the right people requires con-
said that the biggest payoffs at Google have stemmed siderable follow-up.
from risky ideas and investments.14 Creative people are Finally, creative people enjoy dealing with ambi-
also persistent, which is especially important for the guity and chaos. Less creative people become quickly
Overcoming Traditional Thinking as a Creativity Strategy 285
frustrated when task descriptions are unclear and dis- habitual thinking patterns can we begin to imagine
order exists. Ambiguity is also important for creativity novel alternatives.18 The concept of traditional think-
because, as explained by Roger von Oech, a pioneering is relative, but it generally refers to a standard
ing creativity researcher, ambiguity can be a powerful and frequent way of finding a solution to a problem.
stimulant to your imagination. When you are scram- A traditional solution to a problem is thus a modal
bling for ideas, a little ambiguity can prompt you to ask or most frequent solution. For example, traditional
such questions as, “What’s going on here?” and “What thinking suggests that to increase revenue, a retail
does this mean?”15 store should conduct a sale or advertise more heavily.
Creative thinking would point toward other solutions.
Passion for the Task and the As an example, a retail store might increase sales by
Experience of Flow shipping goods for a small fee, or by having store as-
sociates offer free fashion advice.
A dominant characteristic of creative people that is The creative person looks at problems in a new light
closely related to personality is a passion for the work. and transcends conventional thinking about them. A
More than twenty years of research in industry con- historically significant example is Henry Ford, who
ducted by Teresa M. Amabile and her associates led to was known for his creative problem-solving ability. A
the intrinsic motivation principle of creativity: People meatpacking executive invited Ford to visit his Chicago
will be at their creative best when they feel motivated plant and observe how employees processed beef. The
primarily by the interest, satisfaction, and challenge of automotive executive noticed that at one end of the
the work itself—and not by external pressures.16 plant, whole carcasses of steers were placed on a giant
Passion for the task and high intrinsic motivation conveyor belt. As the meat traveled through the plant,
contribute in turn to a total absorption in the work workers carved it into various cuts until the carcass
and intense concentration, or the experience of flow. was consumed. A flash of whimsical insight hit Ford:
It is an experience so engrossing and enjoyable that What if the process were reversed, and all the pieces
the task becomes worth doing for its own sake regard- would become a whole steer again? Ford asked him-
less of the external consequences.17 Perhaps you have self, “Why can’t an automobile be built that way?” He
had this experience when completely absorbed in a took his creative idea back to the Ford Motor Company
hobby or some analytical work, or when you were at in Detroit and constructed the world’s first manufactur-
your best in a sport or dance. (Flow also means being ing assembly line.19
in the zone.) The highly creative leader, such as a busi- The central task in becoming creative is to break
ness owner developing a plan for worldwide distribu- down rigid thinking that blocks new ideas. At the same
tion of a product, will often achieve the experience of time, the problem solver must unlearn the conventional
flow. approach. Henry Ford unlearned the custom approach
To fully understand the contribution of personal to building autos, so he could use an assembly line. (In
characteristics to creativity, we note the basic formula the current era, people who have unlearned the assem-
of human behavior: B 5 f (P 3 E) (behavior is a func- bly-line approach and switched to customization are
tion of a person interacting with the environment). In considered to be creative!)
this context, certain personal characteristics may facili- Overcoming traditional thinking is so important to
tate a leader’s being creative, but the right environment creative thinking that the process has been character-
is necessary to trigger creative behavior. As will be de- ized in several different ways. The most familiar is that
scribed later, the right environment includes the leader a creative person thinks outside the box. A box, in this
encouraging creative thinking. sense, is a category that confines and restricts think-
ing. Because you are confined to a box, you do not see
opportunities outside the box. For example, if an insur-
Overcoming Traditional Thinking ance executive thinks that health insurance is only for
as a Creativity Strategy humans, the executive might miss out on the growing
market for domestic animal health insurance.
Learning Objective 11.3 Apply overcoming traditional A caution about thinking outside the box: Work-
thinking in order to become more creative. ers still need some constraints as to how far outside
the box they are permitted to think. Creativity writer
A unifying theme runs through all forms of creativity Shawn Coyne contends that when people are told to
training and suggestions for creativity improvement: think outside the box with no constraints, they quickly
Creative problem solving requires an ability to over- become overwhelmed by the unlimited scope of the
come traditional thinking. An executive’s guide to task. Effective project leaders establish parameters and
the subject explains that only by forcing our brains prepare their teams for idea generation by pointing
to recategorize information and get beyond our them in a specific direction. Coyne also explains that
the best ideas come from “thinking inside a very care- than any other method. The underlying mechanism is
fully designed box that’s not too big or too small.”20 An that each creativity-enhancing method helps bring new
example might be telling team members that they need ideas to the surface.
to find ways of saving the company energy costs but
that no suggestions will be used that are too expensive Systematically Collecting Fresh Ideas
or result in widespread employee complaints.
Sophisticated innovators have long recognized that Creativity is often referred to as a numbers game, be-
constraints prompt and guide innovations. To attain more cause the more ideas you try, the greater the probabil-
disciplined innovation, organizational leaders need to ity of finding one that works. Several approaches to
add a few simple rules for innovation. An example of such systematically collecting fresh ideas are listed next.
a rule would be that a new product will not be launched 1. Straightforward collection of ideas. A basic way
unless there is $100 million in potential revenue.21 of collecting fresh ideas is for employees to furnish
Constraints often force people to rethink the prob- them to a company database so that when some-
lem they are facing, and arrive at a new solution for body needs a fresh idea it can be accessed through
its resolution. According to two professors specializing a company intranet. Posting ideas on an intranet
in innovation, Fiona Murray and Elsbeth Johnson, one is similar to the database. Another straightforward
set of constraints has to do with outcomes, which re- approach to collecting ideas is for company lead-
fers to defining what a good solution would accomplish ership to engage more of its own staff in the search
for users. For example, the innovation could be accept- for innovation. For example, the CEO of Adidas
able if users could reduce the time needed to complete might ask the entire company, “Can you think of
a transaction by one half. A second set of constraints any piece of athletic clothing or equipment the
relates to timeframes, such as getting a new system or world needs or wants that we are not already
product ready within six months. The COVID-19 pan- providing?”
demic illustrates how these two constraints can be ap- 2. Establishing idea quotas. To facilitate having
plied. An example of constraining outcomes was, “the fresh ideas, the leader or manager can establish
new antibody test must have a specified level of sensi- idea quotas, such as by asking staff members to
tivity.” An example of constraining time was, “the tem- bring one new idea to each physical or virtual meet-
porary hospital must be ready in ten days.”22 ing. Although the vast majority of these ideas may
not lead to innovation, a few good ones will emerge.
One reason idea quotas work is that they are a goal.
Another is that an environmental need (in this case,
Organizational Methods to Enhance
the idea quota) is an excellent creativity stimulant.
Creativity and Innovation
3. Making whiteboards regularly available for
Learning Objective 11.4 Describe both organizational and
sketching ideas. The combination of a whiteboard
individual approaches to enhance creative problem solving. and felt-tip pen has proven to be an effective method
of sparking creative ideas. A wide range of compa-
To enhance creative problem solving, most organiza- nies encourage employees to doodle their ideas and
tions regularly engage in systematic approaches to de- draw diagrams to explain complicated concepts to
velop creative and innovative ideas. We focus here on colleagues in fields such as information technology,
new developments in brainstorming and other creativi- retailing, and real estate. Other doodling mecha-
ty-enhancing methods. Programs of this nature are ap- nisms include chalkboards and writable glass on a
plied to actual problems, while at the same time they variety of surfaces.
provide an opportunity to improve creative thinking. Advocates of doodling say it can facilitate idea
The leader has a dual role in implementing creative generation, boost collaboration, and simplify com-
problem-solving techniques: They facilitate group in- munication. Everett Katigbak, a communication de-
teraction and also provide a fair share of creative out- signer formerly at Facebook, emphasizes that even
put. The two creativity-enhancing, problem-solving with electronic gadgets such as smartphones and
techniques described here are systematically collect- tablet computers the hand is the most effective way
ing fresh ideas, including the use of whiteboards and of recording an idea. A representative example is
granting time to explore ideas; and brainstorming. As that at Turner Broadcasting System, the strategy de-
will be described later, creative problem-solving tech- velopment team sketched tree branches and placed
niques are more likely to be effective in an organization sticky notes on the end of the branches to think
culture that favors creativity and innovation. of ways to extend the Turner Classic Movie brand.
A notable point about creativity-enhancing methods The exercise yielded more than 200 ideas, some of
is that no one method is likely to be consistently better which proceeded to the development stage.23
Organizational Methods to Enhance Creativity and Innovation 287
4. Granting tinkering time. A formal policy ap- patents. Inventors get a share of any eventual royalties.
proach for collecting fresh ideas is to allocate an Through a combination of its own brainstorming and
amount or percentage of time for employees to $5 billion in investment funds, the company has col-
think and experiment. Several innovative compa- lected nearly 70,000 “intellectual assets.”27
nies, including 3M, W. L. Gore & Associates, and The Intellectual Ventures application of brain-
Google, attribute some of their most successful storming emphasizes goals as an essential part of the
new products to employees who were granted process. The Ventures team focuses on the goal of at-
thinking time. The Google policy permitted its em- taining ideas worthy of a patent. Another key aspect of
ployees to spend one-fifth of their time on what- brainstorming is that all ideas can be stepping stones
ever innovative products they wished. Company and triggers for new and more useful ideas. Any idea
leadership claimed that many of its significant might lead to other associations and connections.
advances can be traced to granting tinkering time Thus, during the idea-generating part of brainstorm-
to employees. Fewer employees today take advan- ing, potential solutions are not criticized or evaluated
tage of the policy, because it often does not help in any way so that spontaneity is encouraged.
their career. One Google employee described the It is important to make sure that participants are
dilemma: “We have to ask how do we balance in- prepared by studying the problem beforehand. Al-
novation with getting critical features requested by though it is useful to bring in employees from different
customers done or satisfying the demands of our departments to the brainstorming sessions, in-depth
large enterprise customers?”24 expertise on the subject may be as important as diver-
CEO Brad Smith of Intuit says that to spur in- sity in generating innovative ideas. Follow through in
novation, his company has created 10 percent un- terms of implementing the best ideas is essential. If the
structured time. All 7,700 employees are granted good ideas are not implemented, brainstorming partic-
time to work on a problem that they see as hamper- ipants might become disillusioned and less inclined to
ing customer service. Also, they can devote time to share their creative thinking in the future.28
improving their own process so they can be more Brainstorming can be conducted remotely as well
productive than their peers.25 as in person (a.k.a. electronic brainstorming). One
advantage of working remotely is that geographically
In recent years, Google and 3M have both restricted
dispersed employees can participate. The problem the
employee use of time off from regular responsibilities to
group is working on must be clearly communicated
explore innovative ideas, perhaps because the policy was
because communication can easily break down when
regarded as an expensive employee perk. Nevertheless,
people work remotely. A process can be structured
“time to tinker” worked in the past and still remains an-
whereby group members can contribute ideas at vari-
other method of systematically collecting creative and in-
ous times, rather than have everyone online at the same
novative ideas. Another example is that Intel introduced
time. Some brainstorming participants might prefer to
giving engineers time off to think on Tuesday morning.
think independently rather than think in the presence
The engineers took their work offline, and even put a “do
of others The leader might create a shared document
not disturb” sign on their door outside their cubicle.26
where participants can share their ideas. After the
ideas are collected, group members should be given the
Brainstorming opportunity to refine the suggestions.29
Brainstorming, much like other creative problem-
The best-known method for creativity improvement is solving techniques, works best in an organizational
brainstorming, which you have probably already done. culture that fosters innovation. It is an integral part of
Although brainstorming is often condemned as being the famous design firm IDEO, Inc., whose employees
superficial, it remains a key idea-generation method for believe passionately in innovation. As a result, they are
even the most advanced technology companies. Fur- able to argue about alternative solutions to problems yet
thermore, brainstorming is as much entrenched into still unite to produce an effective design.30
business life as are job interviews and problem-solving As a refresher, do Leadership Skill-Building Exer-
meetings. A notable example of brainstorming is the cise 11-1. Because the vast majority of employers use
firm Intellectual Ventures, whose primary mission is brainstorming, it is helpful to have some advanced
to develop inventions, cofounded by Nathan P. Myhr- knowledge of the topic other than that it is simply
vold, the former chief technology officer at Microsoft. shouting out ideas.
Myhrvold assembles groups of doctors, engineers, and
scientists known for their brilliance, along with in-
The Morality of Enhancing Creativity
house inventors and lawyers, for daylong brainstorm-
ing sessions. The Intellectual Ventures staff takes ideas Methods that help generate creative ideas, as well as
from the brainstorming sessions and turns them into the leadership and managerial actions to enhance
Two Brainstorming Scenarios

Presented below are two different scenarios for brainstorming. ● A chain of assisted-living residence homes for seniors
Choose one or both to work on practical business problems. ● A leadership training institute for young professionals
B. The Next Billion Dollar Brand

A. Choose an Effective Brand Name
Students organize into small new venture groups for your em-
Organize into groups of about six people to play Choose an
ployer, Coca-Cola, PepsiCo, or Dr. Pepper Snapple Group.
Effective Brand Name. An effective brand name is typically
Although the company is a major player in its field, the CEO
one that is easy to remember and that often appears to fit
tasks you with the responsibility of identifying the next bil-
the product or service. (“Clorox,” “IBM,” and “Ritz-Carlton”
lion-dollar brand, meaning that the brand will bring in gross
are examples of brand names that helped build a prosper-
revenues of about $1 billion annually. Although the CEO is
ous business.) After your team has brainstormed a few pos-
giving you considerable latitude to think creatively and inno-
sible brand names, conduct an Internet search to see if the
vatively, the major constraint is that you are a food and bever-
name has not already been taken, and holds a trademark.
age company. The CEO tells you that carbonated beverages
Here are a few possible products or services to assign a
have lost some of their fizz in recent years, and thinks that
brand name:
your mission is high priority. You have twenty minutes to con-
● A chain of tattoo and body piercing studios duct your problem-solving/brainstorming session to think of
● A micro-camera hidden in a ring or necklace what might be the next billion-dollar brand. At the end of that
● A fat-free chocolate bar short time period, present your best suggestion to the CEO.
creativity described at various places in this chapter, Warning labels and informative advertising are at least
have ethical and moral consequences. Creativity writer a step in the right direction.
Gerald Sindell emphasizes the need for creative think-
ers to place their work within a moral context. He
notes that creative work and output never exist in a Self-Help Techniques to Enhance Creative
vacuum. In contrast, every idea and product has poten- Problem Solving
tial harmful consequences in minor and major ways.31
Leaders and others who want to solve problems more
A relevant example is the smartphone that enables
creatively can find hundreds of methods at their dis-
millions of people to communicate readily for business
posal. Six strategies and specific techniques for en-
and personal purposes. Yet, the unintended dysfunc-
hancing creative problem solving are presented next
tional consequences have been enormous. Driving under
and are outlined in Table 11-1. These strategies and
the influence of smartphones, including texting and In-
techniques support and supplement the organizational
ternet surfing, is as dangerous as driving under the influ-
programs described previously. An underlying contri-
ence of alcohol. Also, productivity suffers enormously as
bution of these techniques is that they facilitate flexible
workers become distracted by the ready availability of
thinking, or viewing the world with open and curious
their smartphone for nonwork purposes. A serious eth-
eyes. With such a mental stance, almost anything can
ical issue is that some scientists are concerned that ex-
spark a new idea. As a warehouse manager, you might
cessive use of smartphones can cause physical ailments.
observe young people rollerblading in the park. With a
Another problem is that many young people become se-
creative attitude, you might conclude that your logistic
riously depressed when they are insulted or ignored by
specialists would be more efficient if they used Roller-
people in their social media network.
blades rather than walked.
Hundreds of other products and services also have
ethical implications. For example, brilliantly developed
financial products, such as derivatives, have also cre- Overcoming the Self-Perception
ated harm for many consumers. Sindell recommends
That You Are Not Creative
that creative workers should imagine all the possible
misuses of an innovative product or service, and then Creativity is commonly perceived to be a binary quality:
take steps to limit the damage from the misuses .32 either you have it you do not. It is true that some people
brake and accelerator pedals?” “What would happen if

Table 11-1 Self-Help Techniques for Creativity all consumers in the world refused to buy anything for
Improvement
three days?”
1. Overcoming the self-perception that you are Learning a second (or third) language, including
not creative sign language, can facilitate creativity because you are
2. Practicing creativity-enhancing activities forced to shift mental sets. For example, your second
3. Staying alert to opportunities language may require you to remember the gender of
4. Maintaining an enthusiastic attitude, every noun and to match the spelling of each adjective
including being happy to the gender and number (singular versus plural) of
5. Maintaining and using a systematic place for the noun.
recording your ideas Leadership Skill-Building Exercise 11-2 gives you
6. Playing the roles of explorer, artist, judge, and an opportunity to practice creative thinking. Doing
lawyer exercises of this nature enhances creative problem
7. Engaging in appropriate physical exercise solving.
8. Solicit feedback on your performance
Staying Alert to Opportunities

A key characteristic of creative leaders is that they
in all fields are highly creative, but creative-thinking can spot opportunities that other people overlook
ability is really on a continuum, like problem-solving (as already mentioned three times in this chapter).
ability. A person who has exhibited very little or no Staying alert to opportunities can be framed as an
creativity in the past, can begin improving. The basic application of the leader being mindful. Opportunity
starting point is to look for one or two more alterna- seeking is associated with entrepreneurial leadership
tives when faced with a problem, such as a business because the entrepreneur might build an organiza-
owner saying, “What other steps can I take to cope with tion around an unmet consumer need. The origin of
the inflation in my costs for purchasing supplies and Amazon.com mentioned in relation to the steps in
energy?” creative thinking is a classic example of staying alert
All the information in this section of the chapter to opportunities.
can be applied to help a leader or a nonleader make Tom Kelly, CEO of IDEO, provides a humorous ex-
improvements in personal creativity. To be more pre- ample of opportunity spotting in the extreme. He was
cise, if you engage in creativity-improvement exercises, waiting for a subway train in a jammed Japanese sta-
you can move yourself further along on the creativity tion. Thousands of people streamed by, yet Kelly and
continuum. A basic example is described in the next a colleague were intrigued by one person—a young
section: developing a mindset of scanning your envi- woman wearing mismatched shoes. The observers de-
ronment for potential opportunities. bated the reason for the mismatch, such as dressing in
the dark, wearing borrowed clothes, or maybe an inten-
tional decision. The last insight led to a company that
Practicing Creativity-Enhancing Activities prospers by selling mismatched socks.33 Apparently, the
unmet consumer need is to wear socks in a playful way.
An established way to sharpen creative thinking is to
Does this example of opportunity spotting blow your
regularly engage in activities that encourage flexible
socks off?
thinking. If you enjoy photography, put yourself on
assignment to take a photograph illustrating a theme.
You might, for example, take photographs illustrating Maintaining an Enthusiastic Attitude,
the proper use of your company’s product. Puzzles of
Including Being Happy
all types are useful in stretching your imagination;
many creative people regularly do crossword puzzles. The managerial leader faces a major hurdle in becom-
Another mind stretcher is to force yourself to write ing a creative problem solver. The leader must resolve
jokes around a given theme. Can you create a joke the conflict between being judicial and being imagina-
about the creativity of a leader? tive. In many work situations, being judicial (or judg-
Another standard technique for become a more flex- mental) is necessary. Situations calling for judicial
ible thinker is to ask yourself “what-if” questions. Such thinking include reviewing proposed expenditures and
questions stretch your imagination to think of possi- inspecting products for quality or safety defects. Being
bilities not previously given much or any thought. Two judicial is much like a self-imposed restraint on cre-
examples: “What would be the consequences if next ativity. Imaginative thinking is involved when search-
year vehicle manufacturers switched the location of the ing for creative alternatives. Alex F. Osburn, a former
Choosing a Compelling Domain Name

Using brainstorming, huddle in small groups. Your task is After your team has brainstormed a few possible domain
to develop original domain names for several products or names, search the Internet to see if your domain name is
services. A compelling or effective domain name is typically already in use. Simply enter “www” plus the name you have
one that is easy to remember and will capture potential cus- chosen into your browser. After you have developed your list
tomers in an uncomplicated web search. One reason this of domain names not already in use, present your findings to
exercise is difficult is because “cybersquatters” (domain the rest of the class.
name exploiters) grab unclaimed names they think business ● Hair salons specializing in bald men
owners might want and then sell these names later. For ex- ● Replacement parts for antique or classic autos
ample, a cybersquatter might develop or buy the domain ● A used-car chain
name www.dogfood.com, hoping that a dog-food company ● Yoga salons
will want this name in the future. The owner of dogfood.com ● Personal loans for people with poor credit ratings
would charge a company like Pet Smart every time a surfer ● Recycled steel for manufacturers
looking to purchase dog food over the Internet entered dog- ● Choose one of your own
food.com and was linked to Pet Smart.
advertising executive and the originator of brainstorm- Maintaining and Using a Systematic
ing, notes how judgment and imagination are often in
Place for Recording Your Ideas
conflict:
It is difficult to capitalize on creative ideas unless you
The fact that moods won’t mix largely explains
keep a careful record of them. A creative idea trusted
why the judicial and the creative tend to clash. The
to memory may be forgotten in the press of everyday
right mood for judicial thinking is largely negative.
business. An important suggestion kept on your daily
“What’s wrong with this? … No, this won’t work.”
planner may become obscured. Creative ideas can
Such reflexes are right and proper when trying to
lead to breakthroughs for your group and your career,
judge.
so they deserve the dignity of a separate notebook, a
In contrast, our creative thinking calls for a posi- computer file, a smartphone notes section, or any other
tive attitude. We have to be hopeful. We need enthu- storage device that works for you. A cautious or forget-
siasm. We have to encourage ourselves to the point ful person is advised to keep two copies of the ideas in
of self-confidence. We have to beware of perfection- separate places or storage devices.
ism lest it be abortive. 34 The action step is therefore
to project oneself into a positive frame of mind when
Getting Advice from Someone Outside
attempting to be creative. The same principle applies
when attempting to be creative about a judicial task.
Your Field
For instance, a leader might be faced with the task of When attempting to find a creative solution to a com-
looking for creative ways to cut costs. The manager plex and major problem, it can help to seek advice from
would then have to think positively about thinking someone outside your field. These “outsiders” might
negatively! have a perspective that you and other “insiders” are
Closely related to enthusiasm as a contributor to overlooking or think is too obvious. A mayor might be
creativity is the fact that being in a good mood facil- seeking a creative solution for constructing low-cost
itates creativity. The finding comes from an analysis housing in a down-trodden section of the city. Housing
of diaries or journals. The journal entries showed that specialists might offer many suggestions that seem fea-
people are happiest when they come up with a creative sible, but still cost more than housing developers, even
idea. However, they are more likely to have a break- with a subsidy from the city, are willing to invest. In
through idea if they were happy the day before. One chatting about the problem with an outsider—a ship-
day’s happiness is often a predictor of the next day’s ping company executive—a creative solution emerges.
creative idea.35 The shipping executive talks enthusiastically about
how some city authorities as well as housing develop- marketing professor at Rhode Island College, found
ers have been repurposing used giant shipping contain- that a single aerobic workout is sufficient to trigger the
ers for low-cost housing. brains of students into high gear—and that the benefit
lasted for a minimum of two hours. Gary Kasparov, the
chess champion, is a gym fanatic and has an extraordi-
Playing the Roles of Explorer, Artist, nary intellect. He has credited his physical fitness with
Judge, and Lawyer boosting his skill in chess.
The fact that creative insights often arise during
Another creativity-improvement method incorporates
physical exercise fits the steps on the creative process
many of the preceding methods. Say you want to en-
referred to as immersion and incubation. Another ex-
hance your creativity on the job. This method calls for
planation of why exercise facilitates creativity is that
you to adopt four roles in your thinking.36 First, be an
exercising pumps more blood and oxygen into the
explorer. Speak to people in different fields and get ideas
brain. Exercise also enhances activity in the frontal
that can bring about innovations for your group. For
lobe, the region of the brain involved in abstract rea-
example, if you manage a telecommunications group,
soning and attention.37
speak to salespeople and manufacturing specialists.
Lars Bastholm, the global chief creative officer
Second, be an artist by stretching your imagination.
at Google the Zoo, offers another perspective on the
Strive to spend about 3 percent of your day imagining
role physical activity plays in the creative process. He
new solutions to the challenges you face. For example,
claims that while engaging in such activity a person
the leader of a manufacturing department might ask,
can ruminate on a subject without having pressure on
“Where else can we look to find people who want to be-
the thought process. Among these low-intensity activ-
come manufacturing technicians?” Also remember to
ities are raking leaves, walking, bicycling, or cleaning
challenge the commonly perceived rules in your field.
a closet or garage.38 These small accomplishments are
A night club manager asked “Why continue to have a
simultaneous stress reducers, further clearing the brain
cover charge?” The questioning led to increased reve-
to be creative.
nue because more people visited the club, resulting in
The fact that physical exercise can boost creative
higher beverage and food sales.
thinking should not be interpreted in isolation. Without
Third, know when to be a judge. After developing
other factors going for a leader, such as a storehouse of
some imaginative ideas, at some point you have to eval-
knowledge and passion for the task, physical exercise
uate them. Do not be so critical that you discourage your
will not lead to creative breakthroughs. Physical exer-
own imaginative thinking. Be critical enough, however, so
cise also facilitates sleeping well, and a rested brain is
that you do not try to implement weak ideas. A managing
helpful for creative problem solving.
partner in an established law firm formulated a plan for
opening two storefront branches that would offer legal
services to the public at low prices. The branches would Soliciting Feedback on Your Performance
advertise on radio, on television, online, and in newspa- Another effective way of enhancing creativity on the
pers. After thinking through her plan for several weeks, job is to seek feedback on your performance from both
however, she dropped the idea. She decided that the your manager and your coworkers. Even if you are not
storefront branches would most likely divert clients away asking for feedback on creative suggestions exclusively,
from the parent firm, rather than create a new market. the feedback process is likely to sharpen your imagina-
Fourth, achieve results with your creative thinking tion. An example of a feedback-seeking question would
by playing the role of lawyer. Negotiate and find ways to be “What did you think of my suggestion for reducing
implement your ideas within your field or place of work. energy costs by encouraging employees to bring sweat-
The explorer, artist, and judge stages of creative thought ers to the office?” The feedback refines your thinking,
might take only a short time to develop a creative idea. Yet, helping you develop ideas that others perceive to be
you may spend months or even years getting your break- imaginative.
through idea implemented. For example, many income tax A study demonstrating the link between feed-
preparation firms now loan clients instant refunds in the back seeking and job creativity was conducted with
amount of their anticipated tax refunds. It took a manager 456 supervisor–employee pairs in four management
in a large tax preparation firm a long time to convince top consulting firms. Employees who asked for feedback
management of the merits of the idea. directly and looked around for indirect feedback
tended to be rated more highly on displaying creativ-
ity.39 Examples of indirect feedback would be seeing
Engaging in Appropriate Physical Exercise
positive mention of your performance in an email or
A well-accepted method of stimulating creativity is hearing a spontaneous comment about your work
to engage in physical exercise. Stephen Ramocki, a during a meeting.
creativity, such as that of DuPont: “Our vision is to be

Establishing a Climate and Culture the world’s most dynamic science company, creating
for Creative Thinking sustainable solutions essential to a better, safer, and
healthier life for people everywhere.” Vision statements
Learning Objective 11.5 Articulate how the leader and the and mission statements set the pace, but they must be
organization can establish a climate that fosters creativity. supported by the right climate, or organizational culture,
and extensive use of the techniques described through-
Leaders need to develop creative ideas of their own to out this chapter.
improve productivity and satisfaction. Establishing a Information about establishing a climate for cre-
climate, or culture, conducive to creative problem solv- ativity can be divided into (1) fostering a culture of
ing is another requirement of effective leadership. The originality, (2) leadership and managerial practices for
point is that top management purposely sets about to enhancing creativity and innovation, and (3) methods
take steps to make the organization more innovative. for managing creative workers. To become sensitized
A foundation step in fostering organizational cre- to this vast amount of information, do Leadership Di-
ativity is to establish a vision and mission that includes agnostic Activity 11-1. The instrument gives you an
Leadership Diagnostic Activity 11-1
Assessing the Climate for Creativity and Innovation

Instructions: Respond “mostly yes” or “mostly no” as to how well each of the following characteristics fits an organization fa-
miliar to you. If you are currently not familiar with an outside organization, respond to these statements in regard to your school.
Mostly Mostly
Yes No
1. Company leadership wants workers to be creative.
2. People who contribute new and useful ideas often receive financial
rewards.
3. Creative thinking is mostly the responsibility of people in creative jobs
such as research and development and marketing.
4. Workers are encouraged to spend part of their time coming up with new
ideas for products or services.
5. Creative types rarely get promoted.
6. The company invests considerable resources in innovation.
7. Few of our leaders appear to be innovative thinkers.
8. Innovative thinkers are publicly recognized in our organization.
9. People are often poked fun at for suggesting a unique idea.
10. Constructive change is welcome in this organization.

11. Many of our work groups are diverse both in terms of professional back-
ground and cultural factors.
Scoring and Interpretation: The score in the direction of a climate for creativity and innovation is “mostly yes” for state-
ments 1, 2, 4, 6, 8, 10, and 11, and “mostly no” for statements 3, 5, 7, and 9. A score of 7 or higher suggests a climate
well suited for creativity and innovation. A score of 4–6 is about average, and 3 or below suggests a climate that inhibits
creativity and innovation.
Leadership Practices for Enhancing Creativity and Innovation 293
opportunity to ponder many of the management and

leadership practices that encourage or discourage cre- Leadership Practices for Enhancing
ative problem solving. Creativity and Innovation
Learning Objective 11.6 Pinpoint several leadership
practices that contribute to organizational innovation.
Fostering a Culture of Originality
A macro approach to establishing a climate and cul- Nine leadership and managerial practices are par-
ture for creative thinking is to foster a culture that ticularly helpful in fostering creative thinking, and
favors original thinking. The larger the number of therefore innovation, as revealed by the work of many
workers who think originally, the more likely that researchers and observers.40 The organizational meth-
innovation will take place. Almost all the ideas ex- ods already described for enhancing creativity might
pressed in the rest of the chapter as well in the pre- also be interpreted as leadership practices.
vious sections could in some way foster original
1. Hire creative people from the outside, and iden-
thinking. Yet here we mention several specific ideas
tify creative people from within. The most robust
on the topic.
leadership and management practice for enhancing
Wharton School professor and organizational psy-
creativity is to hire people with the aptitude for, or
chologist Adam Grant offers several ideas for generat-
track record in, being creative. Creativity training is
ing great ideas, and therefore stimulating a culture of
helpful, yet starting with creative people enhances
originality. Several of these ideas are as follows: First,
the potential of training. Part of the same argument
it is important for workers to generate a large number
is that hiring innovative people helps foster an inno-
of ideas because one or two might be breakthroughs.
vative environment. Arthur D. Levinson, chairman
Second, look to other innovators to judge the original
of Apple Inc. and former chairman and chief execu-
merits of an idea because they will tend to be more
tive of Genentech, the heralded biotechnology firm,
objective than the idea generator, and more positive
says, “If you want an innovative environment, hire
than managers who judge original ideas. As a result,
innovative people, listen to them tell you want they
the fellow innovators are more likely to predict which
want, and do it.”42
ideas will be successful. Third, solicit ideas from in-
dividuals rather than groups. People can take their 2. Intellectual challenge. Matching people with the
best ideas to the group for evaluation and refinement, right assignments enhances creativity because it
but the best unit of originality is still people thinking supports expertise and intrinsic motivation. The
independently. amount of stretch is consistent with goal theory;
Fourth, strike the right balance between cohesion too little challenge leads to boredom, but too much
and dissent in your organization because both are challenge leads to feelings of being overwhelmed
needed. Too much harmony and cohesion in the or- and loss of control. The leader or manager must
ganization might lead to homogeneous thinking, pro- understand his or her group members well to of-
ducing very few new ideas. A little dissent in the form fer them the right amount of challenge. Moderate
of critical thinking may spur originality.40 For exam- time pressures can sometimes bring about the right
ple, a middle manager at Kellogg Company might ask, amount of challenge.
“How long are so many people around the world go- 3. Empowerment including freedom to choose
ing to keep on spending so much money on packaged the method. Research with information tech-
cereal?” nology workers in the People’s Republic of China
A study of transformational leadership in energy com- supported the idea that an empowering style of
panies in China offers another path for leaders to create leadership facilitates worker creativity. Specifically,
a culture of originality. Transformational leadership fa- when workers are empowered they are more likely
cilitates followers internalizing (accepting as their own) to work through the steps for creative problem solv-
the leader’s values and standards and exhibiting similar ing. Part of the creativity was attributed to empow-
qualities. Yet to foster creative output from followers, the ered workers having a sense of self-determination,
transformational leader must set and communicate bold which sparked their creative thinking.43
expectations for original thinking.41 An example of such Workers also tend to be more creative when they
activity by a leader is the behavior of Lee Kun-hee, the are granted the freedom to choose which method is
former long-time chairman of Samsung. He continued best for attaining a work goal (as described in our
to insist on transforming the company, and was success- study of empowerment in Chapter 7). Stable goals
ful in transforming the company into a world-leading in- are important because it is difficult to work cre-
novator and industrial powerhouse. atively toward a moving target.
4. Ample supply of the right resources. Time and most people to sustain their passion, they must
money are the most important resources for en- feel that their work matters to the organization.
hancing creativity. Deciding how much time and Creative ideas should be evaluated quickly rather
money to give to a team or project is a tough judg- than put through a painfully slow review process.
ment call that can either support or stifle creativity. Encouragement fosters creativity, and the oppo-
Under some circumstances, setting a time deadline site is also true: discouragement inhibits creativ-
will trigger creative thinking because it represents ity. Advertising executive Charlie Brower says a
a favorable challenge. An example would be hurry- new idea “can be killed by a sneer or a yawn…
ing to be first to market with a new product. False stabbed to death by a quip and worried to death
deadlines or impossibly tight ones can create dis- by a frown.”45
trust and burnout. To be creative, groups also need In addition to encouraging innovation, super-
to be adequately funded. visory leaders should promote the idea that inno-
5. Effective design of work groups. Work groups are vative thinking improves job performance. A study
the most likely to be creative when they are mutu- conducted with 238 pairs of workers and super-
ally supportive and when they have a diversity of visors in four U.S. companies in several different
backgrounds and perspectives. Blends of gender, industries supported the importance of employee
race, and ethnicity are recognized today as con- expectations. When employees believed that in-
tributing to creative thought, similar to cross-func- novative thinking would lead to better job perfor-
tional teams with their mix of perspectives from mance, they were more likely to solve problems
different disciplines. The various points of view of- creatively. The supervisor could help in the pro-
ten combine to achieve creative solutions to prob- cess by explaining how innovation improves job
lems. Homogeneous teams argue less, but they are performance.46
often less creative. Putting together a team with the 7. Organizational support and leader encourage-
right chemistry—just the right level of diversity and ment. The entire organization as well as the im-
supportiveness—requires experience and intuition mediate manager should support creative effort if
on the leader’s part. creativity is to be enhanced on a large scale. The
A useful perspective on fostering creativity in company-wide reward system should support
culturally diverse groups is to engage in cultural creativity, including recognition and financial in-
brokerage, the facilitation of interactions across centives. At John Deere & Company workers are
parties from different cultural backgrounds. Cul- encouraged to bring forth ideas. Cultivating inno-
tural brokers are team members who have more vation begins with tapping into worker insights.
multicultural experience than other team members, Deere executive John Stone says, “For John Deere
and act as a communication bridge between their to realize our Smart Industrial vision, innovation
monocultural teammates.44 A possible example here has to be there. And it has to be empowered, en-
is that a person from a polite culture, such as In- couraged, invested in, and cultivated.”47
dia, might need a cultural broker to explain that it Organizational leaders should encourage in-
is okay to suggest a drastic change in a company’s formation sharing and collaboration, which lead
major product line. to the development of the expertise so necessary
A leadership and management practice related for creativity and to more opportunities for intrin-
to work group design is encouraging face-to-face sic motivation. Executives who combat excessive
contact to facilitate innovative thinking. It is more politics can help creative people focus on work
difficult for geographically dispersed workers to instead of fighting political battles. In a highly po-
think creatively. The use of whiteboards around litical environment, a worker would be hesitant to
the company, as described earlier, is one work ar- suggest a creative idea that was a political blun-
rangement that facilitates face-to-face contacts, as der, such as replacing a product particularly liked
do open work spaces. Yet again, allowances must be by the CEO.
made for people who are at their creative best when 8. Have favorable exchanges with creative work-
working alone. ers. Another insight into encouraging a creative
6. Supervisory encouragement and linking in- climate is for leaders to have favorable exchanges
novation to performance. The most influential with group members, as defined by LMX theory
step a leader can take to bring about creative (see Chapter 9). A study with 191 research and
problem solving is to develop a permissive at- development specialists found a positive rela-
mosphere that encourages people to think freely. tionship between LMX ratings and creativity of
Praising creative work is important because, for workers as measured by supervisory ratings. 48
Company Justification for Being Perceived as Innovative
Apple Inc. Apple has consistently invented products that have created enormous demand for consumer-
oriented digital technology, including the iPad that has been the pacesetter for tablet
computers, and the iPhone. Business leaders throughout the world admire the creativity of
Apple, as led by an innovative design team, and Apple products are increasingly used in the
workplace. The legal staff at Apple continually fights off imitators of the company’s innovations.
Apple is lauded as delivering the future today.
CVS Although its thousands of stores (or pharmacies) sell a wide variety of everyday products, CVS
Health Health has made considerable progress in redefining retail health care. CVS has introduced in-
store clinics because about one half of their patients come in on nights and weekends, and one
half do not have a primary-care physician. CVS has partnered with the Watson supercomputer
to monitor the health of its patients with respect to following their prescriptions or if their
health is deteriorating. CVS was a major player in making COVID-19 vaccinations available
locally to millions of people.
Instagram The photo sharing platform has become a dominant marketing arm for visually driven
companies in fields such as fashion and tourism. Thousands of restaurants are dependent on
Instagram for attracting new customers. The Instagram-ready restaurant has created its own
cottage industries of small firms that help restaurants post photos on the platform. As with
Facebook and Twitter, Instagram has become an integral part of life for untold millions of
users, especially younger people.
Trader Beloved by its customers, this grocery chain jumped past Whole Foods to become the favorite
Joe’s specialty grocer in the United States. Part of the innovation is in the selection of products that
are both low priced and have a gourmet appeal.
Fitbit Fitbit is categorized as highly innovative for making health tracking mainstream. The company
has one of the high-rank apps at the Apple App Store. Fitbit continually improves the software
on its wrist bands, prompting wearers to follow and challenge their friends.
Figure 11-3 Five Consumer-Oriented Business Organizations Judged to Be Highly Innovative.

Sources: Based partially on information in Fast Company Staff, “The World’s 50 Most Innovative Companies,” Fast Company, March/April
2020, pp. 32–88; “Most innovative Companies,” March/April, 2018, pp. 20–88; Alan Murray, “50 Most Innovative Companies,” Fortune (www
.fortune.com), December 2, 2015, pp. 1–4.
When group members have positive relationships action moving forward.”49 Another factor is that fi-
with their manager, they may have a more relaxed nancial rewards have spurred useful inventions for
mental attitude that allows the imagination to hundreds of years. More recent research with high-
flow. A useful strategy for enhancing creativity tech teams suggests that financial inducements
throughout the organization is to emphasize the are also important for enhancing the creativity of
importance of working with a sense of heightened groups. Two of the financial inducements were
awareness, of being alert to new possibilities. “provide competitive bonuses,” and “offer good
9. Give financial rewards for innovation. Creativ- health care and medical insurance beyond legal
ity is self-rewarding to some extent because it is requirements.”50
so exciting. Nevertheless, financial rewards for
Figure 11-3 presents capsule descriptions of five il-
contributions to innovation help sustain a climate
lustrative companies that are successful in establishing
of innovation. Jeffrey Wadsworth is the chief ex-
a climate and culture for creative thinking.
ecutive of the Battelle Memorial Institute, a think
tank of 23,000 employees specializing in inventions
for profit. He points out that financial rewards Methods of Managing Creative Workers
for creativity are widespread in industry and uni-
versities. “If you publish a patent you get $1,000, Closely related to establishing organizational condi-
or you get $1 in a frame. Or you get a piece of the tions favoring creativity is choosing effective methods
for managing creative workers. The suggestions that also aware of the importance of building a creative and
follow supplement effective leadership and manage- innovative organization.
ment practices in general.51
1. Give creative people tools and resources that
Leadership Practices Focused Specifically
allow their work to stand out. Creative workers
have a high degree of self-motivation and therefore
on Enhancing Innovation
want to achieve high-quality output. To achieve Creativity in organizations leads to innovations in
such high quality, they usually need adequate re- products, services, and processes (such as a billing
sources, such as state-of-the-art equipment and an system or safety improvement). All leadership and
ample travel budget for such purposes as conduct- management practices that enhance creative problem
ing research. solving therefore also enhance innovation. Despite the
2. Give creative people flexibility and a minimum importance of innovation, it is difficult to attain. A
amount of structure. Many creative workers re- recent analysis contends that venture capitalists look
gard heavy structure as the death knell of creativ- at more than 100 deals to invest in one, and typically
ity. Structure for these workers means rules and less than one in ten delivers a significant financial re-
regulations, many layers of approval, strict dress turn. 52 Here, we describe eight additional leadership
codes, fixed office hours, rigid assignments, and initiatives specifically geared toward enhancing inno-
fill-in-the-blank Internet forms. (Typically, the vation, along with the chances that the innovation will
leader/manager will have to achieve a workable be successful.
compromise in this area that stays within the 1. Emphasize transformational leadership if pos-
framework of organizational policy. Regular office sible. A macro-perspective on a leader’s role in fos-
hours, for example, are a must for team assign- tering innovation is to exercise transformational
ments. Also, creative people may need help with leadership. The transformational leader creates
meeting deadlines because many creative people an environment of change and growth. Based on
do not manage time well.) case histories, management professors Adegoke
3. Give gentle feedback when turning down an Oke, Natasha Munshi, and Fred O. Walumbwa
idea. Creative employees are emotionally involved concluded that transformational leaders are par-
with their work. As a result, they are likely to in- ticularly well suited to jump start the innovation
terpret criticism as a personal attack on their self- process.53 This is probably because the transfor-
worth. (Students often feel the same way about mational leader is good at providing intellectual
their term papers and projects.) An effective way stimulation.
of lessening the sting of negative feedback is to be- 2. Continually pursue innovation. A major charac-
gin by using phrases such as “What I see is…” and teristic of the Most Admired Companies, as com-
“My opinion is…” In this way you are not declar- piled by the Hay Group consultancy for Fortune, is
ing that all observers of the creative work would constant innovation. Translated into practice, this
share your opinion. means that company leaders stay alert to innova-
4. Employ creative people to manage and eval- tive possibilities. Innovation is important because
uate creative workers. Managers of creative a new technology can make an industry obsolete
workers should have some creative ability of or place it in grave danger. What will happen to pe-
their own so that they can understand creativ- troleum refineries when (and if) electric cars and
ity and be credible as leaders. Understanding trucks dominate the market? Another practical
the creative process is important for evaluating way of pursuing innovation is to assign innova-
the creative contribution of others. What con- tion teams freed of daily time-to-market pressures.
stitutes creative output is somewhat subjective, At tool maker Stanley Black & Decker, one team
but the output can be tied to objective criteria. based in Maryland concentrates on developing new
At Hallmark Cards, Inc., for example, creativity technology to current products. A second team in
is measured by such factors as how well the cre- the United Kingdom develops disruptive technol-
ative work sold and how well it performed in a ogies. The teams are given time, money, and reg-
consumer preference test. In general, a manag- ular access to senior leaders. One of the first hits
er’s intuition about the potential contribution of from the innovation teams was a motion-activated
a creative idea or product still weighs heavily in screwdriver inspired by the concept behind a Nin-
the evaluation. tendo Wii controller.54
The accompanying Leader in Action insert de- 3. Question traditional beliefs or orthodoxies. A
scribes a technology leader who is highly creative and bedrock principle of both creativity and innovation
Leader in Action
Bridget van Kralingen, Senior Vice President of IBM Global Markets, Spearheads Innovation
Bridget van Kralingen is senior vice president, IBM Global IBM Food Trust, which is being used at Walmart, Unilever,
Markets, responsible for the company’s revenue, profit, busi- and Nestle among others. Food is placed on the blockchain
ness development, and client satisfaction across the globe. from farm to table, meaning that if there is a food-safety
In her previous position van Kralingen led Industry Plat- incident, it can be tracked. For example, it might take two
forms, a business unit that invents, develops, and ramps up seconds on a blockchain to track where compromised pro-
disruptive software cloud platforms for specific industries. duce originated. “About 30 percent of the world’s food to-
The Platforms unit also opens new markets for the Watson day is thrown away because it’s not managed effectively on
artificial intelligence platform, and forged IBM as the leader the supply chain, which this technology can do,” says van
in the emerging market for blockchain. Kralingen’s leader- Kralingen.
ship role requires creative and innovative thinking, such as in In reference to her early career involvement in career
spearheading the efforts to help clients adopt new business development and counseling workers, van Kralingen
models on cloud platforms using artificial intelligence and said she learned a lot about leaders. Those who were
blockchain. the most curious, the most open to change and learning
Ginni Rometty, the IBM CEO at the time, selected van themselves, were the most successful in a dynamic and
Kralingen to oversee several of the company’s most stra- unstable world. Val Kralingen also observed that leaders
tegic businesses to help stimulate growth, including the who loved their companies, their work, and their teams
emerging blockchain unit. Van Kralingen was specifically were able to accomplish things that other leaders
chosen for her new position to help IBM shift from declin- could not.
ing legacy businesses into rapidly growing areas, including Van Kralingen began her career as a researcher and in-
artificial intelligence and cloud computing. Van Kralingen is dustrial psychologist at the South African Council for Scien-
credited with having built a blockchain startup within the tific and Industrial Research. Since 2011, van Kralingen has
tech giant. During that period, van Kralingen played a key been listed as one of Fortune Magazine’s 50 Most Powerful
leadership role in some of IBM’s largest deals including the Women in Business. She holds a Masters of Commerce de-
acquisition of Red Hat and a major alliance with AT&T. gree from the University of South Africa and Bachelors of
In reference to the IBM blockchain unit, she said that Commerce degree from the University of Witwatersrand.
leading a startup with no playbook, even with a prosperous
company, requires removing fear of failure. “People have to Questions
feel like it’s okay to make mistakes and learn from them be- 1. Why might IBM have chosen van Kralingen to lead the
company’s blockchain business unit?
cause that’s how we actually move forward.”
2. What message does van Kralingen send you about the
Van Kralingen understands in depth how blockchain has
importance of passion for leadership?
industrial applications. One example she provides is called
Sources: Original story based on facts and observations in the following sources: Vanessa Fuhrmans, “IBM’s Go-To Disrupter Runs
on Change,” The Wall Street Journal, July 26, 2018, p. B5; “Bridget Van Kralingen, Senior Vice President, IBM Global Industry Plat-
forms,” www.americanbanker.com, May 22, 2018, p. 1; “Bridget Van Kralingen, SVP Global Industries. Clients, Platforms & Block-
chain, IBM,” https: blockchainrevolutionglobal.com, 2020, p. 1; “Executive Biographies: Bridget van Kralingen, Senior Vice President,
Global Markets,” https://newsroom.ibm.com, 2021, pp. 1–2; Kristen Bellstrom, “The 50 Most Powerful Women in Business,” Fortune,
October 2019, p. 68.
is to question the way something has been done what already works.55 Many entrepreneurs have
traditionally. Searching for alternatives can lead spotted the possibilities of the sharing economy in
to innovation. Tradition may block potential inno- which people are willing to share their resources
vations because people are reluctant to abandon in order to earn income. A prime example is Brian
Chesky, the CEO of Airbnb, a company that en- ranking engineer who has worked in more divisions
ables home owners and renters of large dwellings of the company might be a smarter choice because
to charge people to stay at their homes instead of the engineer could tap broader knowledge and con-
renting hotel space. The innovation is that compa- nections inside the company.
nies such as Airbnb act as digital clearing houses Leaders in multiunit organizations are at an ad-
to enable asset owners to monetize the unused vantage for innovation because workers from the
capacity of assets they already own. At the same various units can share ideas that would be useful
time, consumers can rent from other people rather for many different products. For example, if one
than rent or purchase from a company.56 unit of a medical company developed a patch for
4. Recognize that small scale innovations can have delivering medicine to the body, other units might
a major payoff. Current research suggests that a be able to profit from the same technology. The
constructive path for business leaders is to purse topic of encouraging idea sharing will be reintro-
small-scale innovations rather than aiming only at duced in Chapter 13.
blockbusters. Successful small-scale innovations in A more direct way of attaining collaboration
consumer items sometimes involve packaging. In is to organize workers into teams for purposes of
2004 when McDonald’s changed how it sold milk, innovation. Jeffrey Wadsworth from Battelle notes
shifting from cardboard boxes to translucent jugs that most of the successful innovations he has
resembling old-fashion milk bottles, sales tripled seen have come from remarkably complex teams.
within one year.57 (Not everyone would agree that a People from different disciplines, such as accoun-
new shape milk carton is an innovation!) tants, lawyers, and customer service representa-
tives must work together smoothly for innovation
5. Take risks and encourage risk taking. “No risk,
to surface.59
no reward” is a rule of life that applies equally well
to the leadership of innovation. Even in a slow- 7. Avoid innovation for its own sake. Leaders also
growth economy, companies cannot win big in the have to exercise good judgment: Innovation just for
marketplace by doing things just a teeny bit better the sake of innovation is not always valuable. Many
than the competition. It is necessary to gamble in- gadgets are scientific marvels, yet they have limited
telligently, shrewdly, and selectively, even during a market appeal. An example is the robot lawnmower,
period of insecurity and instability.58 Because most which arouses the curiosity of many people but
new ideas fail, part of taking risks is being willing to does not appeal much to consumers. Most compa-
go down blind alleys. nies have loads of interesting ideas floating to the
surface, but very few will even translate into a prof-
6. Emphasize collaboration among employees.
itable product or service.
Most innovations stem from networks, that is,
groups of people working in concert. The work- 8. Use loose–tight leadership. Looseness refers
ers needed for the innovation are often dispersed to granting space for new ideas and exploration,
throughout the organization. Choosing the right whereas a tight approach means finally making a
leader for a project can be the key to collaboration. choice among the alternatives. Innovation is also
The workers chosen to develop new ideas are often enhanced when workers throughout the organiza-
top performers in individual areas. However, they tion are able to pursue absurd ideas without pen-
may be lacking the connections within the com- alty for being wrong or for having wasted some
pany that are vital for accomplishing the innovation resources. An axiom of creativity is that many ideas
task. For instance, an outstanding engineer might typically have to be tried before a commercially suc-
be selected to lead a major project. But a lower cessful one emerges.
Reader’s Roadmap
So far, we have studied considerable information about the nature of leadership; the attributes, behaviors, and styles
We then studied techniques for developing teamwork as well as motivation and coaching skills. After having studied
creativity and innovation as part of leadership, we focus next on communication skills as they relate to leadership.
Summary
A creative idea becomes an innovation when it is potential harmful consequences in minor and ma-
implemented or commercialized. Creativity is an jor ways.
essential characteristic of leaders. A creative leader Self-help techniques to enhance creative
brings forth ideas or things that did not exist pre- problem solving include (1) overcoming the
viously or that existed in a different form. The self-perception that you are not creative; (2) practic-
creative process has been divided into five steps: ing creativity-enhancing exercises; (3) staying alert
opportunity or problem recognition; immersion to opportunities; (4) maintaining enthusiasm and
(the individual becomes immersed in the idea); in- being happy; (5) getting advice from someone out-
cubation (the idea simmers); insight (a solution sur- side your field; (6) maintaining and using a system-
faces); and verification and application (the person atic place for recording ideas; (7) playing the roles
supports and implements the idea). of explorer, artist, judge, and lawyer; (8) engaging
Distinguishing characteristics of creative people in appropriate physical exercise; and (9) soliciting
fall into four areas: knowledge, cognitive abilities, feedback on your performance.
personality, passion for the task, and the experience Establishing a climate conducive to creative
of flow. Creative people possess extensive knowledge, problem solving is another requirement of effective
good intellectual skills, intellectual curiosity, and a leadership. Fostering a culture of originality is a
wide range of interests. Personality attributes of cre- major step forward. Such a culture includes expect-
ative people include a positive self-image, tolerance ing employees to generate a large number of ideas,
for isolation, nonconformity, and the ability to tolerate and striking the right balance between cohesion
ambiguity and chaos. Passion for the work and flow and dissent in the organization.
are related to intense intrinsic motivation. Creative Leadership practice for enhancing creating in-
people also enjoy interacting with others. The right clude (1) hire creative people from the outside and
personal characteristics must interact with the right identify creative people from within; (2) provide in-
environment to produce creative problem solving. tellectual challenge; (3) empower workers and allow
A major strategy for becoming creative is to over- them freedom to choose their own method; (4) supply
come traditional thinking, or a traditional mental the right resources; (5) design work groups effectively;
set. Also, it is necessary to break down rigid thinking (6) have supervisors encouraging and linking innova-
that blocks new ideas. Yet, workers still need some tion to performance; (7) give organizational support or
constraints in terms of creative solutions to prob- creativity and explain how innovation improves per-
lems. Imagination is still required to think outside formance; (8) have favorable exchanges with creative
the box within the limits of a required framework. workers; and (9) give financial rewards for innovation.
Creative thinking can be enhanced by systemat- Special attention should be paid to managing
ically considering fresh ideas, brought in through a creative workers. One should provide excellent tools
number of ways including consciously calling for and resources, give creative people flexibility, turn
ideas, establishing idea quotas, using whiteboards down ideas gently, and employ creative people to
throughout the company, and granting time to tin- manage and evaluate creative workers.
ker. Brainstorming is a key idea-generation method Leadership practices that focus specifically on
even for the most advanced technology companies. enhancing innovation include the following: em-
It is important that brainstorming participants be phasize transformational leadership; continually
prepared by studying the problem beforehand. pursue innovation; question traditional beliefs and
Brainstorming can be conducted remotely as well orthodoxies, take risks and encourage risk taking;
as in person. The generation of creative ideas has emphasize collaboration; avoid innovation for its
moral implications. Every idea and product has own sake; and use loose–tight leadership.
Key Terms
innovation 279 intuition 283 cultural brokerage 294
creativity 279 experience of flow 285
Although creativity is important for leaders, research In an attempt to be consumer-oriented, many

suggests that being perceived as highly creative has a business leaders believe that all innovation should
downside. Creative people are sometimes perceived stem from customer desires and suggestions, as of-
as quirky, and such a perception can block a person’s ten revealed in a focus group. True product leader-
attempt to climb the leadership and management ship, however, can sometimes stem from offering
ladder. In studies conducted with business groups in a new product or service consumers never thought
India, and then repeated with U.S. college students, they wanted or needed. During the first McIntosh
individuals who expressed more creative ideas were team retreat, one member asked whether market
viewed as having less—not more—leadership talent.60 research would be helpful to find out what cus-
The way to get around this potential negative per- tomers wanted. Steve Jobs, replied, “No, because
ception is for the imaginative person who wants to customers don’t know what they want until we’ve
climb the leadership ladder to frequently remind oth- shown them.” He then quoted the famous line from
ers in a subtle way that they are business-oriented. Henry Ford, “If I’d asked customers what they
If you are the creative person aspiring to climb the wanted, they would have told me, ‘A faster horse!’”
ladder, casually mention such concepts as the re- The point here is that the product leader’s own in-
turn on investment of your ideas, and how your idea tuition can sometimes be the source of profitable
might contribute to the bottom line. innovation.61
Discussion Questions and Activities 6. Describe a leadership situation in which you think
1. After reading the chapter opener and the Leader in a leader being a creative thinker would be more
Action insert, what do the stories tell you about the important than the person being charismatic.
suitability of leaders with a business background to 7. Several people have written that refrigeration was
be leaders of product innovation? one of the most important innovations of all time.
2. How might a leader being highly creative inspire Why might this opinion be true?
subordinates? 8. What do you think the next great creative
3. Assume that you are the leader of the paperclip breakthrough in business will be that will rival
manufacturing division of a company. Do you think e-commerce and mobile devices in importance?
it would be worth your time and that of your group (Loads of product planners and business leaders are
to attempt to improve the design and intended use waiting for your answer.)
of the paperclip? Explain your reasoning. 9. Assuming that you are convinced that creativity is
4. In what way does your current program of study a legitimate part of a leader’s role, what percent of
contribute to your ability to solve problems your working time do you think you should invest
creatively? in creative thinking? Explain your answer.
5. The opinion has often been expressed that too 10. Speak to the most creative person you know in any
much emphasis on teamwork inhibits creativity. field, and find out if that person uses any specific
What do you think of this argument? creativity-enhancing technique. Be prepared to
bring your findings back to class.
The T-Shirt Production Innovators was closing. To commemorate the closing, the
In 2011, two Brown University seniors, Walker two friends decided to print T-shirts, but they
Williams and Evan Stites-Clayton, were sad that were struck by the upfront costs, and the need to
their favorite bar in Providence, Rhode Island estimate how many of each size they would need
to order. Williams built a website to take orders fonts and icons are possible. The designer then
and measure demand, and also posted a link to sets a sales goal. If a minimum of five T-shirts
the site on Facebook. By morning, hundreds of are preordered, Teespring produces the items
orders were received, along with a few e-mails and ships them directly to customers, charging
requesting that he create similar websites for the the designer about $9 per T-shirt. The T-shirt de-
T-shirt ideas of other people. The Aha Moment signer sets the retail price per item.
arrived for Williams, and he immediately knew The Teespring model has been so successful
that he had hit upon a commercially viable idea. that the founders built a printing facility in Ken-
The company Teespring soon followed. tucky, where all the shirts can be produced and
Today Teespring is one of the top T-shirt ven- shipped efficiently. An example of a Teespring
dors in the United States, and prints approxi- success story is restaurant manager Benny Hsu,
mately 7 million shirts annually, with annual who earned more than $120,000 in one year
revenues estimated at $100 million. T-shirts with a Tee-shirt bearing the slogan, “Keep calm
have been shipped to more than eighty countries and let the radiation therapist take care of it.”
worldwide. Teespring has evolved into a print-
on-demand service that allows you to design Questions
T-shirts, custom clothing, household items, post- 1. In what way have the founders of Teespring
ers, and more to place for sale on their website. demonstrated creative and innovative
The company has grown to over 300 employ- leadership?
ees. The business model is that individuals cre- 2. In what way does Teespring provide its cus-
ate Internet campaigns to sell custom T-shirts tomers an opportunity to develop their cre-
and related clothing on the Teespring website. ativity skills?
Campaign creators are required to design and 3. What is your evaluation of the prospects of
market the product themselves, but they are not Teespring being sustainable in the sense of
required to invest money upfront, paying only lasting a long time as a business?
when they have secured orders for their T-shirts. 4. If you were required to come up with a
Teespring’s role is to fulfill order for cam- T-shirt to sell through Teespring, what mes-
paigns that have attained their sale goals, and sage would you place on the T-shirt?
then ships the T-shirts to the buyers. T-shirts are
printed on demand, thereby avoiding the prob- Sources: Case based on facts and observations in the
lem of inventory accumulation. Teespring does following sources: “Teespring Review 2020 — Start-
all the T-shirt manufacturing and shipping for the ing the Perfect Print-On-Demand Business,” Within
designer, whereas the designer creates the idea the Flow (www.withintheflow.com), January 15, 2020,
and helps market the T-shirt through social me- pp. 1–18; Alyson Shontell, “A Startup Called Teespring
dia and word-of-mouth. However, the company Has Turned 10 People into Millionaires, and It Just
also contributes to advertising on Facebook. Raised $35 Million To Kill Excess Inventory,” Business
Tools on the Teespring website enable the Insider (www.businessinsider.com), November 18, 2014,
T-shirt designer to upload their ideas and slo- pp. 1–7; “How to Make Money from Teespring without
gans. The designers can select which quality Spending a Penny!” Tee Income (www.teeincome.com),
and type of shirt (traditional hoodie, or tank 2016; Adam Satarino, “How Your T-Shirt Can Make You
top) they choose to print on, and many different Rich,” Bloomberg Businessweek, April 20–26, 2015.

One study plays the role of the operations manager T-shirts. Two other students play the roles of Clayton
at Teespring. The operations manager confides in and Williams who are upset with the operations man-
cofounders Evan-Stites Clayton and Walker Williams ager, yet they see some truth in what the manager is
doubts that the company has a sustainable business saying. Other students might provide feedback on the
model because so many enterprises can make custom productivity of the meeting.
The Distressing Empty Storefronts stop shopping on our block, or in downtown

Audrey is the president of the Downtown Neigh- all together.”
borhood Association, a volunteer position that Emma, the owner of a jewelry store that
supplements her fulltime position as a custom- closed, said that online shopping did her in. “In-
er-care manager. The broad purpose or mission stead of browsing in my shop, my former custom-
of the Association is help create and sustain a ers shopped for jewelry online.” Audrey countered
vibrant downtown that welcomes businesses, that after the pandemic was over, e-commerce
customers, families, and tourists during day and accounted for only about 18 percent of all retail
evening hours. Audrey and the other Association sales. “That still leaves 82 percent of shoppers vis-
members are increasingly troubled by a major iting physical retail stores,” said Audrey.
problem facing downtown—too many empty Under the leadership of Audrey, the mem-
stores facing the street front, usually referred to bers of the Downtown Neighborhood Associa-
as the vacant storefront problem. tion held two brainstorming sessions to sketch
Working in conjunction with the City Coun- out a few tentative solutions to the empty store-
cil Small Business Committee, Audrey and the front problem. A few merchants who were not
other Association members have observed that members of the Association also participated
about 25 percent of the stores in the heart of in the sessions. Here are a few of their tentative
downtown are vacant storefronts. On one block, solutions to the problems:
five consecutive storefronts no longer have a ● Rent an empty window to someone who
tenant. The vacant storefronts represent a vari- might want to use it to advertise their own
ety of former business establishments. Among store or promote a cause.
them are restaurants, flower shops, hair salons, ● Find a pop-up tenant. Set up a temporary
nail salons, barber shops, clothing stores includ-
store, such as during the Holiday season, a
ing two national retailers, a pet store, a wine
blood drive, or a flu vaccination drive.
store, and a pawnbroker.
Audrey said to the other members of the As- ● Decorate the window to make it an attrac-
sociation, “I know it is popular to label vacant tive feature of downtown, rather an eyesore.
stores high-rent blight, but the problem is not The possibilities would include displaying
so simple. Most of the landlords are charging high-school arts and crafts, or a non-political
just enough rent so they can make a reasonable mural.
return on their investments. The landlords and ● Fine landlords for having an empty store-
property owners are faced with ever-increasing front. In this way, they will be motivated to
taxes and energy costs. We cannot expect these find a new tenant or lower the rent to hold
people to lower rents below the break-even on to an existing tenant.
point.”
Audrey thanked the group for having made
Two of the restaurant owners became food-
a good start but that more work has to be done
truck operators because they could no longer
to resolve the problem of the large number of
pay the rents demanded by the landlord. Ce-
empty storefronts in downtown.
drick, the owner and operator of a high-end
clothing store, pointed to a vexing problem
Questions
with empty storefronts: “Three stores on my
street closed, and the foot traffic in my store 1. Explain if the Downtown Neighborhood Asso-
dropped heavily. When people see empty store- ciation has yet found a workable solution to
fronts, they think there is something wrong the problem of too many empty storefronts in
with the neighborhood. They then decide to downtown.
2. What else might Audrey do in her leader- 3. What is your opinion of the impact of online
ship role to resolve the problem of empty shopping on retail store vacancy rates?
storefronts?

You guessed it. One student plays the role of Audrey, members. Because you are facing both a local, na-
leading a brainstorming group of Downtown Neigh- tional, and international problem, be as bold and wild
borhood Association members to arrive at a few tenta- in your creative problem solving as possible. About
tive solutions to the empty storefront problems. A few fifteen minutes should suffice to come up with some
other students play the role of brainstorming group good brainstorming solutions.
For this chapter’s entry into your leadership portfolio, re- rise, but nobody seems to go beyond expressing a
cord any creative or innovative idea you have had lately little sympathy.
in relation to organizational activity, including school. Af- Then I got a brainstorm. I thought, “Why not organize
ter recording the idea, ask yourself what prompted you to a ‘Socks for Seniors’ program?” My friends and I would
develop it. If you have not contributed a creative idea re- buy dozens of pairs of socks that usually sell for about
cently, your assignment is to develop a creative idea within $5.00 a pair from deep discounters like Dollar General and
the next ten days. If possible, make plans to implement the TJ Maxx. We could raise some of the money by returning
idea; otherwise, it will not lead to innovation. Here is an ex- bottles and cans with deposits. A few friends of mine made
ample of a creative community initiative taken by Alexis, a a bunch of text messages and phone calls, and we raised
marketing major: $300 in no time for our project. Then, one cold night, we
In my neighborhood, there is a ten-story building. visited the high rise, rang a few doorbells, and told the res-
Practically all of the tenants are senior citizens who idents what we were up to. We were allowed in to start dis-
live on limited pensions. Some of the folks in the tributing the socks. The smiles and words of appreciation
building are in their eighties or even their nineties. we received were enormous. My idea is so good, I plan to
The building is old and not particularly warm, espe- do it every year. My friends are with me, and we think that
cially for people with poor blood circulation. I’ve of- if we post this idea on a website, it might spread around
ten heard friends and family members say that we the country.
should do something to help the seniors in the high
The Multimedia Presentation

Here is an opportunity to be creative about the topic of busi- possible to upload your presentation to a social networking
ness creativity. Work individually or in groups to develop a site. The presentation might also include music, art, poetry,
multimedia presentation about the importance of creativ- or quotations from literary figures. Spoken words might also
ity in business. By multimedia, we refer to using more than be considered a medium for delivering your message. If
one media to develop your presentation. For example, you the multimedia presentations are limited to about five min-
might make a presentation using bulleted lists, narratives, utes, class time might allow for several students, or student
still photos, video clips, and Internet links. It might also be groups, to present.
Notes
1. Original story based on facts and observations in 10. Ned Herrmann, “Is It True that Creativity Resides
the following sources: Amy Feldman, “The Retool- in the Right Hemisphere of the Brains?” www
ing of Stanley Black & Decker,” Forbes, August 31, .scientificamerican.com, September 2, 2014,
2018, pp. 40–42; “James M. Loree, President & pp. 1–16.
CEO at Stanley Black & Decker,” https:theorg.com, 11. Research of Damasio reported in Karen Weintraub,
2021, pp. 1–3; James M. Loree, Chief Executive of- “Inner Workings of a Creative Brain,” USA Today,
ficer, Stanley Black & Decker,” Business Roundta- November 9, 2013; Amy Novotney, “No Such Thing
ble (www.businessfroundtgable.org), 2020, pp. 1–2; as ‘Right-Brained’ or ‘Left-Brained,’ New Research
“A Message from Jim Loree,” 3BL Media (www Finds,” Monitor on Psychology, November 2013, p. 10.
.3blmedia.com), May 7, 2021pp. 1–3. 12. Quoted in John D. Stoll, “Feel the Force’: Gut In-
2. Emma Seppala, “How Senior Executives Find Time stinct, Not Data is the Thing,” The Wall Street Jour-
to Be Creative,” Harvard Business Review (https:// nal, October 19–20, 2019, p. B4.
hbr.org), September 14, 2016, p. 1. 13. Research reported in Joe Robinson, “Do You Have
3. Andrew Razeghi, “Innovation: Vehicle to Great- What It Takes?” Entrepreneur, January 2014, p. 49.
ness,” Executive Leadership, December 2011, p. 3. 14. Cited in “Larry Page on How to Change the World,”
4. David J. Hughes et al, “Leadership, Creativity, and Fortune, May 12, 2008, p. 84.
Innovation: A Critical Review and Practical Rec- 15. Roger von Oech, A Whack on the Side of the Head:
ommendations,” The Leadership Quarterly, October How You Can Be More Creative (Stamford, CT: U.S.
2018, pp. 549–569. Game Systems, Inc., 1990), p. 116.
5. Graham Wallas, The Art of Thought (New York: 16. Amabile, “How To Kill Creativity,” p. 79.
Harcourt Brace, 1926). 17. Mihaly Csikszentmihalyi, “If We Are So Rich, Why
6. Josh Quittner, “How Jeff Bezos Rules the Retail Aren’t We Happy?” American Psychologist, October
Space,” Fortune, May 5, 2008, pp. 126–132; “Jeff 1999, p. 824.
Bezos: Founder and CEO, Amazon.com,” Academy 18. Maria M. Capozzi, Renée Dye, and Amy Howe,
of Achievement (www.achievement.org), August 9, “Sparking Creativity in Teams: An Executive’s
2010, pp. 1–4. Guide,” McKinsey & Company (www.mckinsey
7. Teresa M. Amabile, “How to Kill Creativity,” Har- .com), April 2011, p. 1.
vard Business Review, September–October 1998, 19. “Putting Creativity into Action,” Success Workshop,
pp. 78–79; Darrell K. Rigby, Kara Gruver, and supplement to The Pryor Report, April 1996, p. 1.
James Allen, “Innovation in Turbulent Times,” 20. Cited in Dawn Klingensmith, “Give Your Team
Harvard Business Review, June 2009, pp. 79–86. Direction,” CTW Features, March 8, 2011. Based
8. Francesca Gino, “The Business Case for Curios- on information in Shawn Coyne, Brainsteering: A
ity,” Harvard Business Review, September–October Better Approach to Breakthrough Ideas (New York:
2018, p. 50. HarperCollins, 2011).
9. Maria Bartiromo, “Entrepreneur Lives the Dream: 21. Donald Sull, “The Simple Rules of Disciplined In-
Chobani’s Ulukaya Created Greek Yogurt Craze,” novation,” McKinsey & Company (www.mckinsey
USA Today, June 18, 2013. .com), May 2015, p. 1.
Notes 305
22. Fiona Murray and Elsbeth Johnson, “Innovation pp. 86–94; Interview with Adam Grant, “Six Secrets
Starts with Defining the Right Constraints,” Har- to True Originality,” McKinsey & Company (www
vard Business Review (https://hrb.org), April 5, .mckinsey.com), August 2016, pp. 1–8.
2021, pp. 1–3. 41. Rujie Qu, Onne Janssen, and Kan Shi, “Transfor-
23. Rachel Emma Silverman, “Doodling for Dollars,” mational Leadership and Follower Creativity: The
The Wall Street Journal, April 25, 2012, pp. B1, B8. Mediating Role of Follower Relational Identifica-
24. Brian M. Carney and Issac Getz, “How an Endan- tion and the Moderating Role of Leader Creativ-
gered Google Policy Got Results,” The Wall Street ity Expectations,” The Leadership Quarterly, April
Journal, August 29, 2013, p. A15; Nate Klemp, 2015, pp. 286–299.
“Google Encourages Employees to Take Time Off 42. Quoted in Jena McGregor “25 Most Innovative
to Be Creative. Here’s How You Can Too, Without Companies,” BusinessWeek, May 14, 2007, p. 52.
Sacrificing Outcomes,” Inc. (www.inc.com), No- 43. Xiaomeng Zhang and Kathryn M. Bartol, “Linking
vember 14, 2019, pp. 1–5. Empowering Leadership and Employee Creativ-
25. Geoff Colvin, “Brad Smith: Getting Rid of Fric- ity: The Influence of Psychological Empowerment,
tion,” Fortune, July 21, 2014, p. 24. Intrinsic Motivation, and Creative Process En-
26. Klemp, “Google Encourages Employees,” pp. 1–6. gagement,” Academy of Management Journal, Feb-
27. Michael Orey, “Inside Nathan Myhrvold’s Myste- ruary 2010, pp. 107–128.
rious New Idea Machine,” BusinessWeek, July 3, 44. Sujin Jang, “The Most Creative Teams Have a Spe-
2006, pp. 54, 57; Jim Kerstetter and Josh Lowen- cific Type of Cultural Diversity,” Harvard Business
sohn, “Inside Intellectual Ventures, the Most Hated Review (https;//hbr.org), July 24, 2018, pp. 1–5.
Company in Tech,” http://news.cnet.com, August 21, 45. Quoted in John C. Maxwell, “The War of Ideas:
2012, pp. 1–2. May the Best Idea Win,” Success, September/
28. Dori Meinert, “Brainstorming Gone Bad,” HR Mag- October 2020, p. 33.
azine, April 2016, p. 14. 46. Amabile and Khaire, “Creativity and the Role of
29. Michael Schrage, “Playing Around with Brain- the Leader,” pp. 100–109; “How to Kill Creativ-
storming,” Harvard Business Review, March 2001, ity,” pp. 80–81; Teresa M. Amabile, Constance N.
pp. 149–154; “Stock a Room to Improve Brain- Hadley, and Steven J. Kramer, “Creativity Under
storming,” Business Management Daily (www the Gun,” Harvard Business Review, August 2002,
.businessmanagementdaily.com), March 18, 2011, pp. 52–61; Giles Hirst, Daan van Kippenberg, and
p. 1. Jing Zhou, “A Cross-Level Perspective on Employee
30. Art Markman, “How to Brainstorm—Remotely,” Creativity: Goal Orientation, Team Learning Be-
July 20, 2020, pp. 1–5. havior, and Individual Creativity,” Academy of Man-
31. Gerald Sindell, The Genius Machine: The 11 Steps agement Journal, April 2009, pp. 280–293.
That Turn Raw Material into Brilliance (Novato, CA: 47. Feron Yuan and Richard W. Woodman, “Innova-
New World Library, 2009). tive Behavior in the Workplace: The Role of Per-
32. Sindell, The Genius Machine, p. 40. formance and Image Outcome Expectations,”
33. Tom Tobin, “Inspired to Be Innovators,” Democrat Academy of Management Journal, April 2010,
and Chronicle, May 24, 2012, p. 5B. pp. 323–342.
34. Quoted in Alex F. Osburn, “Breakthrough Ideas,” 48. Quoted in “Innovation that Starts on the Factory
Success, October 1990, p. 38. Floor,” Fast Company, September 2020, p. 52.
35. Research cited in Bill Breen, “The Six Myths of 49. Pamela Tierney, Steven M. Farmer, and George B.
Creativity,” Fast Company, December 2004, p. 78. Graen, “An Examination of Leadership and Em-
36. “Be a Creative Problem Solver,” Executive Strate- ployee Creativity: The Relevance of Traits and Re-
gies, June 6, 1989, pp. 1–2. lationships,” Personnel Psychology, Autumn 1999,
37. Richard A. Lovett, “Jog Your Brain: Looking for pp. 591–620.
a Creative Spark? Hop to the Gym,” Psychology 50. Quoted in “The Profit Motive,” The Wall Street Jour-
Today, May/June 2006, p. 55. nal, September 27, 2010, p. R11.
38. Quoted in Seppala, “How Senior Executives Find 51. Liangding Jia, Jason D. Shaw, Anne S. Tsui, and
Time to Be Creative,” p. 4. Tae-Youn Park, “A Social Structural Perspective
39. Kathleen D. De Stobbeleir, Susan J. Ashford, and on Employee-Organization Relationships and Em-
Dirk Buyens, “Self-Regulation of Creativity at ployee Creativity,” Academy of Management Jour-
Work: The Role of Feedback Seeking In Creative nal, June 2014, pp. 869–891.
Performance,” Academy of Management Journal, 52. Shari Caudron, “Strategies for Managing Creative
August 2011, pp. 811–831. Workers,” Personnel Journal, December 1994,
40. Adam Grant, “How to Build a Culture of Origi- pp. 104–113; Spencer Harrison, “How to Give and
nality,” Harvard Business Review, March 2016,
Receive Feedback About Creative Work,” Harvard 58. Rob Cross, Andrew Hargadon, Salvatore Parise,
Business Review (https://hbr.org), p. 4; Adam Born- and Robert J. Thomas, “Together We Innovate,”
stein, “Can Creativity Be Created?” Entrepreneur, The Wall Street Journal, September 15–16, 2007,
April–May 2021, p. 28. p. R6
53. Curtis R. Carlson, “Innovation for Impact: Value 59. “The Profit Motive,” p. R11.
Creation as an Active Learning Process,” Har- 60. Jennifer Mueller, Jack A. Goncalo, and Dishan
vard Business Review, November-December 2020, Klamdar, “Recognizing Creative Leadership: Can
p. 133. Creative Idea Expression Negatively Relate to
54. Adegoke Oke, Natasha Munshi, and Fred O. Perceptions of Leadership Potential?” Journal
Walumbwa, “The Influence of Leadership Pro- of Experimental Social Psychology, March 2011,
cess on Innovational Processes and Activities,” pp. 494–498; “A Bias against ‘Quirky’? Why Creative
Organizational Dynamics, January–March 2009, People Can Lose Out on Leadership Positions,”
pp. 64–72. Knowledge@Wharton (http://knowledge.wharton
55. Todd Henneman, “Brighter Ideas,” Workforce Man- .upenn.edu/), February 16, 2011, pp. 1–3.
agement, January 2013, p. 18. 61. Walter Isaacson, “The Real Leadership Lessons of
56. Tomio Geron, “The Share Economy,” Forbes, Steve Jobs,” Harvard Business Review, April 2012,
February 11, 2013, pp. 58–66. p. 96.
57. “Reevaluating Incremental Innovation: Swinging
for the Fences Can Yield Lower Returns,” Har-
vard Business Review, September-October 2018,
pp. 22–23.
12
Chapter
Communication and
Conflict Resolution Skills
Learning Objectives
After studying this chapter and doing the exercises, you 12.4 Articulate the basic principles of persuasion.
should be able to 12.5 Discuss the challenge of selective listening, and the
12.1 Detail how leaders use communication networks to basics of making the rounds.
accomplish their tasks. 12.6 Be sensitive to the importance of overcoming cross-
12.2 Summarize the basics of inspirational and emotion- cultural barriers to communication.
provoking communication. 12.7 Enumerate basic approaches to resolving conflict
12.3 Pinpoint the key features of a power-oriented and negotiating.
linguistic style.
Chapter Outline
Communication Networks for Leaders Making the Rounds

Face-to-Face Communication Networks Overcoming Cross-Cultural Communication Barriers
Social Media Networks The Leader’s Role in Resolving Conflict and Negotiating
Group Messaging Apps as Leadership Communication Network Conflict Management Styles
Inspirational and Powerful Communication Resolving Conflict Between Two Group Members
Speaking and Writing Negotiating and Bargaining
Basic Principles of Persuasion Summary
Nonverbal Communication Including Videoconferencing Key Terms
and Telepresence Guidelines for Actions and Skill Development
Listening as a Leadership Skill Leadership Case Problem A
Show Respect Leadership Case Problem B
Selective Listening to Problems Notes
S
outhwest Airlines has developed a reputation span- because of travel restrictions in 2020, only fifty-four million
ning over fifty years as a low-cost airline with excep- were served). What Southwest passengers do not see, but
tional service offered by happy, friendly employees profit from indirectly, is the communication principles and
who exert extra effort to satisfy their passengers. The airline practices of the airline’s leadership that facilitate such a high
serves over 134 million passengers annually (except that level of customer service.
307
308 Chapter 12 Communication and Conflict Resolution Skills
In January 2013, Gary C. Kelly, chief executive officer (CEO) part of the corporate culture is to follow the Golden Rule—treat
and chairman of Southwest, presented a new corporate vision each other the way we want to be treated.
and purpose intended to motivate employees to elevate their Linda Rutherford, the senior vice president and chief com-
customer service to new heights. The vision is “to become the munications officer, and a Southwest veteran, observes that
world’s most loved, most flown, and most profitable airline.” The communication is a core element of being able to engage em-
Southwest vision is supported by its purpose: “We exist to con- ployees. The reason is that the first thing you want employees
nect people to what’s important in their lives through friendly, to know is the state of the business. When employees know
reliable, and low-cost air travel.” what is going on in the business, along with its priorities, they
Company leadership and management decided to use can pivot their work and be focused on the right things. Ruth-
storytelling as a key approach to assure that all the 56,000 erford says that when employees feel engaged the culture can
employees pursue the vision each work day. An example of come alive because the employees can do their best work.
the storytelling is stories about reliability. These stories often During the pandemic, Southwest communicated intensively
focus on business travel. In one video a businesswoman says, with employees, with thousands of communication efforts di-
“They board the fastest, they get my bags off the fastest, rected at employees. The company tracked employee conver-
which is efficient. I know exactly when I will land every week, sation through its intranet and private social media groups. The
and I can easily schedule my meetings because I know they’ll extensive communication facilitated higher reputation scores on
be on time.” surveys in areas such as governance, workplace, and leadership.
Another approach to communicating with employees is Another result was positive employee optimism and engagement.
Kelly’s weekly Monday morning audio message that can be Kelly believes that a strong relationship with people is
heard via a toll-free number and is podcast on the employee based on communication. He says, “I think communication is
blog. The message might be about company plans, such as most effective if it includes top management. Southwest’s top-
expansion to another city. Employee recognition is frequently down communication is carried out through a collaborative ef-
contained in these messages, such as attributing much of the fort between Kelly and the company’s communication team. The
company’s success to the people of Southwest Airline. Kelly, communication might be face-to-face, but digital transmission
as do other managers, frequently reminds employees that a key is also of major importance.1
The executive leaders just described act on an obvi- substantial amount of communication time resolving
ous truth that many leaders ignore—open communi- conflicts, the chapter also discusses conflict resolution
cation between company leaders and group members and negotiating skills.
helps an organization overcome problems and at- To focus your thinking on your communication
tain success. Effective managers and leaders listen effectiveness, complete Leadership Self-Assessment
to employees, and open communications contribute Quiz 12-1.
to leadership effectiveness. John Hamm notes that
effective communication is a leader’s most essential
tool for executing the essential job of leadership: in- Communication Networks
spiring organizational members to take responsibility for Leaders
for creating a better future.2 Effective communication
skills contribute to all aspects of leadership. Leaders Learning Objective 12.1 Detail how leaders use
who cannot convey their useful ideas in a meaningful communication networks to accomplish their tasks.
way to employees, clients, and customers will have
limited influence.3 A major feature of communication by leaders is to
Chapter 3 described how charismatic leaders are rely on networks of contacts both in-person and elec-
masterful oral communicators. This chapter expands tronically. Without being connected to other peo-
on this theme and also covers the contribution of writ- ple, leaders would find it almost impossible to carry
ten, persuasive, and nonverbal communication. In out their various roles. Communication researchers
addition, this chapter describes the leadership use of Bruce Hoppe and Claire Reinelt note that leadership
communication networks, how the ability to overcome networks are a response to a rapidly changing world
cross-cultural communication barriers enhances lead- in which interconnectedness is important because it
ership effectiveness. Finally, because leaders spend a facilitates learning and solving complex problems.
A Self-Portrait of My Communication Effectiveness

Instructions: The following statements relate to various aspects of communication effectiveness. Indicate whether each of
the statements is mostly true or mostly false, even if the most accurate answer would depend somewhat on the situation.
Asking another person who is familiar with your communication behavior to help you answer the questions may improve the
accuracy of your answers.
Mostly True Mostly False
1. When I begin to speak in a group, most people stop talking, turn

toward me, and listen.
2. I receive compliments on the quality of my writing, including my
email messages and social media posts.
3. The reaction to the messages I leave on voice mail has been
favorable.
4. I welcome the opportunity to speak in front of a group.
5. I have published something, including a letter to the editor, an

article for the school newspaper, or a comment in a company
newsletter.
6. I have my own website, and have received at least two compli-
ments about its effectiveness.
7. The vast majority of my written projects in school have received
a grade of B or A.
8. People generally laugh when I tell a joke or make what I think is
a witty comment.
9. I stay informed by reading news articles on the Internet and in
print, and watching news on television.
10. I have heard such terms as enthusiastic, animated, colorful, or
dynamic applied to me.
11. The text messages I send look a little better in terms of spelling
and grammar than most of the text messages I receive.
Total score:
Scoring and Interpretation: If eight or more of these statements are true in relation to you, it is most likely that you are an
effective communicator. If three or fewer statements are true, you may need substantial improvement in your communication
skills. Your scores are probably highly correlated with charisma.
Skill Development: The behaviors indicated by the eleven statements in the self-assessment exercise are significant for lead-
ers because much of a leader’s impact is determined by their communication style. Although effective leaders vary consider-
ably in their communication style, they usually create a positive impact if they can communicate well. Observe some current
business leaders on a business news channel to develop a feel for the communication style of successful business leaders.
Networks provide resources and support for leaders. are within the organization, but many are also exter-
With networks, leaders have more impact because nal, such as communicating with a customer, sup-
they influence more people. 4 Many of these contacts plier, government official, or union official.
A focus on the communication networks of lead- through shared interests and commitments, as well as
ers is also important because much of leadership ac- shared work. Network members share information,
tivity and effectiveness depends on working within a provide advice and support, engage in mutual learning,
network.5 The point made in Chapter 1 about leader- and sometimes collaborate together. Members of the
ship being a relationship between and among people leader’s network are perceived as providing resources
is part of the network perspective on leadership. Ex- that can be trusted.8
pressed simply, the leader works within the context of The operational network is aimed at doing one’s
a network. assigned task more effectively. It involves cultivating
Here we describe briefly how organizational leaders stronger relationships with coworkers whose mem-
use face-to-face (or in-person) as well as social media bership in the network is clear. Some of these rela-
networks to communicate. Recognize, however, that tionships may be part of the formal structure, such
the categories often overlap. A leader might be speak- as getting cost data from a member of the finance
ing with a colleague from another department in the department. Personal networks engage cooperative
company cafeteria, and then continue the communica- people from outside the organization in a person’s ef-
tion that evening by tweeting the network member. fort to develop personally and advance. This type of
networking might involve being mentored on how to
deal with a challenge, such as dealing with the prob-
Face-to-Face Communication Networks lem of sexual harassment by a senior manager. (The
personal network has much in common with the peer
Developing networks of live interpersonal contacts network, except that it might include people who are
remains an essential method for a leader building re- not peers.)
lationships, motivating others, and attaining collabo- Strategic networks focus networking on attaining
ration. Even the most smartphone-obsessed executives business goals directly. At this level, the manager cre-
who carry several mobile devices with them at the ates a network that will help identify and capitalize on
same time, supplement their electronic messages with new opportunities for the company, such as breaking
some personal contacts. A major reason that face-to- into the African market.9 Even when the manager’s own
face communication networks are vital is that leaders company has good resources for identifying business
achieve more engagement and credibility when they opportunities, speaking to external people can provide
participate in genuine conversation with the subordi- a fresh and useful perspective.
nates and coworkers.
A conversation in this sense is a frank exchange of
ideas and information with an agenda specified or un-
Social Media Networks
specified. 6 An example would be a product designer
at an automotive manufacturer talking with the CEO An important use of the social media is for the leader
about how the company emphasizing fuel-efficient to build and maintain a professional network, much
vehicles might make sense for the environment but like being a member of LinkedIn. The productive
could be losing sales. The designer might allude to leader is more likely to focus on contacts of relevance
the fact that the latest growth in vehicles sales is for or density rather than focus on accumulating hun-
pickup trucks and SUVs, not small-size vehicles. The dreds of superficial network members. The websites
two people would talk about the issue rather than used for networking can be external (or public) as well
the CEO delivering as stern message about obeying as internal. Most consulting and management services
orders. firms, such as Accenture, have widely internal social
The ongoing value of face-to-face communication media websites.
was reinforced in a survey conducted by Future Work- The strength-of-ties perspective explains the dif-
place and Randstad. A key finding was that although ference between strong and weak ties.10 The quality
the digital natives in the workplace have different values of a contact in the network is particularly important
than previous generations, 39 percent prefer in-person for social media networks because so many contacts
communication over digital forms, such as email, so- can be of dubious value. A key part of the theory is
cial networking, and videoconferencing.7 (These find- that there are different densities in different parts of
ings might also be interpreted that 61 percent of digital the network. A high-density network consists of close
natives prefer electronic communication over the face- friends or associates linked together, such as CEOs in
to-face type.) the same industry exchanging information. In con-
Various types of leadership networks have been trast, a low-density network consists of acquaintances
identified, with four of these types being particularly linked together.
relevant. First is the peer leadership network that is a The relationships among the different actors in
system of social ties among leaders who are connected a network can be broadly classified into two major
types: strong versus weak ties and direct versus in- with her boss. (The conversation about the relation-
direct ties. An acquaintance would be a weak tie, ship with the boss would probably only take place on
whereas a close friend would be a strong tie. Strength a social media website if it could not be observed by
of ties would ordinarily be measured by frequency of others.)
contact, yet some contacts could be relatively super- Direct versus indirect ties relate to whether you are
ficial and others might be more emotional and inti- directly connected to a person because of a contact you
mate. Melissa might ask Trevor for status reports on developed, or indirectly, such as a friend of a friend.
his prediction about currency fluctuation, whereas she Your direct contact might be Mike, but Mike is con-
talks to Sylvie about her career and her relationship nected to Sally, so Sally is an indirect contact.

Leader in Action
Lockheed Martin Executive Chairman Marillyn Hewson Emphasizes

Communication as a Leader
More than a decade ago, longtime Lockheed Martin Corp. employees, particularly in the form of a flood of emails. She
executive Marillyn Hewson became the company’s chairman says that she responds to every single one of them. “If they
and CEO after a steady thirty-one-year climb to the top. In take the initiative to send me an email, they deserve a re-
2020, she was appointed as executive chairman of the com- sponse,” she says. Another key aspect of Hewson’s com-
pany. Lockheed Martin is the biggest defense company in munication approach is to have a monthly meeting with her
the history of the world. Hewson has been named by both leadership team, with a dinner the night before, and then an
Forbes and Fortune as one of the most powerful women in entire day devoted to strategy.
business. She has held nineteen leadership roles since join- Hewson explains that employee meetings are the most
ing Lockheed Martin in 1983 as an engineer although she important. She says that employees drive the company suc-
was a business administration major. cess. “If they don’t know you, understand where you’re try-
Hewson combines her knowledge of technology and ing to take the business and trust in your leadership, you’ll
strategic leadership with strong interpersonal skills, includ- have a hard time keeping them engaged,” she wrote in an
ing an emphasis on effective communication. When she email. “Whether you’re a CEO or first-line manager, face-to-
took over for Robert Stevens, the outgoing CEO, he joked face communication with your team is vital to your success
with investors, “People seem to like Marillyn more than they as a leader.”
like me. She is a genuinely likeable person who understands Although Hewson has a reputation for being gracious
people and connects with people in this company at an in- and gregarious, she is an executive ready to make tough
dividual level.” Another time Stevens said, “Marillyn is an choices, such as finding ways to boost earnings per share.
exceptional leader with impeccable credentials. She knows Hewson says her management approach is “opportunistic,”
our business, our customers, our shareholders, out commit- meaning that her strategy does not change, but her tactics
ments, and our employees.” and timing are dictated by market conditions.
Hewson says that every business problem she has ever Hewson said during an interview with a journalist that
faced where things go awry, could be chalked up to mis- she wants to continue to be a role model for women in busi-
communication or lack of communication. She notes that ness. “But I don’t think it’s necessarily about being a female
“Listening and responding is what makes the difference in in business. I think it’s about my track record, my results.”
any business. Some people find it tedious to keep saying Born in Junction City, Kansas, Hewson received a Bach-
the same things over and over and over again. I think you’ve elor of Science in business administration and a Master of
got to constantly do that.” Arts degree from the University of Alabama. She also at-
As part of her approach to communication, Hew- tended executive development programs at Columbia Busi-
son notes that she receives a lot of unsolicited input from ness School and Harvard Business School.
(continued)

Questions 2. What lesson or lessons does the story about Marillyn

1. How surprising is it to you that the top executive at an aero- Hewson have for people who want to become business
space company emphasizes the basic techniques of face-to- leaders?
face meetings and emails to communicate with employees?
Sources: Original story based on facts and observations in the following sources: “Conversation with Marillyn Hewson, Executive
Chairman of Lockheed Martin,” Leadership in Challenging Times (www.ced.org), September 28, 2020, p. 1; “Three CEOs Weigh In
On Winning Leadership Traits,” www.bbc.com, 2021, p. 1; Dan Bigman, “Lockheed Martin’s Marillyn Hewson: 2018 CEO of the Year,”
Chief Executive (www.ChiefExecutive.net), July 16, 2018, pp. 1–3; Kristen Bellstrom et al, “Fortune Most Powerful Women: Marillyn
Hewson,” Fortune, October 2018, p. 59; Loren Thompson, “Lockheed martin Chairman & CEO Marillyn’s Vision: Continuous Innova-
tion, Sustained Profitability, Forbes (www.forbes.com), August 6, 2014, pp. 1–5.
Group Messaging Apps as Leadership are going to interrupt what I am doing with a direct
Communication Network message, it should be important. If it can wait over-
night or even a few hours, email is probably fine.”11 An
For internal communications with an emphasis on even worse problem is when leaders think that sending
collaboration, leaders also make extensive use of com- and receiving group app messages is their primary job.
munication tools often referred to as group messag-
ing apps. Three of the mostly widely used are Slack,
Microsoft Teams, and Google Workspace. Sending
messages in these applications is effective for asking Inspirational and Powerful
quick questions, receiving back updates, and accessing Communication
shared knowledge and files by sending people links.
Group messaging apps are less formal than email, Learning Objective 12.2 Summarize the basics of
which circumvents writing greetings or goodbyes in inspirational and emotion-provoking communication.
your notes. It has been recommended that channel
Harvard instructor and brand adviser Carmine Gallo
messages be short and direct, and easy to skim.
makes the case for the importance of inspirational and
Group chat is another communication platform,
powerful communication. He says that the historians,
bringing together both people and multiple software
economists, entrepreneurs, and venture capitalists he
programs. Chat has been widely used as a form of cus-
has talked to in his research all profess the same idea:
tomer support for many years, with many customers
“In this age of artificial intelligence, globalization,
preferring to exchange written messages rather than
automation—the one skill that can separate you not only
engaging in conversation with a customer service or
from the technology that we create but from your peers
tech support representative. Chat can be both immedi-
is mastering the ancient art of persuasion: combining
ate and synchronous identical to a phone call or physi-
words and actions to ignite people’s imagination.”12
cal meeting, or asynchronous like email.
Information about communicating persuasively and
The leadership communication angle to chat is that
effectively is extensive. Here we focus on suggestions for
the leader can quickly connect with several group mem-
creating the high-impact communication that contrib-
bers at the same time, and receive feedback and input in
utes to effective leadership. Effective communication is
the amount of time it takes to compose a sentence. Chat
frequently a criterion for being promoted to a leadership
is also used as a team huddle to prepare for the work-
position. In this section, suggestions for becoming an
day. One crowdfunding company uses a “Standup bot”
inspirational and emotion-provoking communicator are
whereby team members summarize what they did yes-
divided into the following two categories: (1) speaking
terday, what they plan to do today, and any impediments
and writing and (2) nonverbal communication. We also
to their work. The leader can play a key role by making
discuss seven basic principles of persuasion.
suggestions about overcoming the impediments.
As described in Chapter 9 about teamwork, group
messaging platforms can encourage over-collaboration
Speaking and Writing
and time wasting, and be disruptive. David Johnson, You are already familiar with the basics of effective spo-
principal analyst at Forester Research Inc., says, “If you ken and written communication. Yet, the basics—such as
Inspirational and Powerful Communication 313
manufacturing plant will receive careful attention—

Table 12-1 Suggestions for Inspirational Speaking and build support—by saying that jobs will not be out-
and Writing
sourced to another country. The same CEO will receive
A. A Variety of Inspirational Tactics the support of stockholders when by emphasizing how
1. Be credible. cost reductions will boost earnings per share and en-
2. Gear your message to the listener. large dividends.
3. Sell group members on the benefits of your In order to gear your message to the listener, it is
suggestions. usually necessary to figure out what the person wants,
4. Use heavy-impact and emotion-provoking or deal with the other person’s perceived self-interest.13
words. Visualize the head of a customer support center who
5. Use anecdotes to communicate meaning. believes strongly that more funding is necessary to
6. Back up conclusions with data (to a point). meet the demands placed on the department. To be
7. Minimize language errors, junk words, and convincing, the woman needs to figure out what the
vocalized pauses. CEO really expects from a customer support center.
8. Write crisp, clear memos, letters, and reports, Careful listening might indicate that the CEO is mainly
including a front-loaded message. interested in customers not asking for refunds and/or
9. Use business jargon in appropriate doses. badmouthing the company face-to-face as well as on-
line. The customer support head can then direct her
B. The Power-Oriented Linguistic Style
pitch for more funding in terms of how an expanded
Included here are a variety of factors such as department can reduce merchandise returns and cus-
downplaying uncertainty, emphasizing direct tomer complaints.
rather than indirect talk, and choosing an effective The average intelligence level of the group is a key
communication frame. contingency factor in designing a persuasive message.
People with high intelligence tend to be more influ-
enced by messages based on strong, logical arguments.
Bright people are also more likely to reject messages
writing and speaking clearly, maintaining eye contact, and based on flawed logic.14
not mumbling—are only starting points. The majority of ef-
fective leaders have an extra snap or panache in their com-
Sell Group Members on the Benefits
munication style, both in day-by-day conversations and
of Your Suggestions
when addressing a group. The same energy and excitement
are reflected in both speaking and writing. Suggestions for Leaders are constrained by the willingness of group
dynamic and persuasive oral and written communication members to take action on their suggestions and ini-
are presented next and outlined in Table 12-1. tiatives. As a consequence, the leader must explain to
group members how they can benefit from what the
leader proposes. For example, a plant manager at-
Be Credible tempting to sell employees on the benefits of recycling
Attempts at persuasion, including inspirational speak- supplies as much as possible might say, “If we can cut
ing and writing, begin with the credibility of the down enough on the cost of supplies, we might be able
message sender. If the speaker is perceived as highly to save one or two jobs.”
credible, the attempt at persuasive communication is A variation on the same theme of selling benefits is
more likely to be successful. The perception of cred- to promise, or assure, results from your suggestion. For
ibility is influenced by many factors, including those example, if the division president wants every group
covered in this entire section. Being trustworthy heav- in the division to reduce costs by 10 percent, the pres-
ily influences being perceived as credible. A leader ident might say, “If the entire division can reduce costs
with a reputation for lying will have a difficult time by 10 percent for the fiscal year, I promise you that
convincing people about the merits of a new initiative the bonus pool will be increased by at least 1 percent.”
such as outsourcing. Being perceived as intelligent
and knowledgeable is another major factor contribut- Use Heavy-Impact and Emotion-Provoking Words
ing to credibility. Certain words used in the proper context give power
and force to your speech. Used comfortably, naturally,
Gear Your Message to the Listener, and sincerely, these words will project the image of a
Including the Person’s Needs self-confident person with leadership ability or poten-
An axiom of persuasive communication is that a tial. Two examples of heavy-impact phrases are “We
speaker must adapt the message to the listener’s in- will be outsourcing those portions of our knowledge
terests and motivations. The company CEO visiting a work that are not mission critical” and “We will be
leading edge in both product development and business Zippo is a consumer products company that has
processes.” However, too much of this type of language hundreds of anecdotes to share about how those
will make the leader appear to be imitating a Dilbert sturdy steel cigarette lighters saved somebody’s life by
cartoon (a long-running cartoon satire about managers deflecting a bullet. It seems that the stories originated
and businesspeople). in World War II but have continued into modern
Choosing the right verb between two pairs of words times, such as how a Zippo in the pocket of a police
that seem interchangeable can enhance the impact of worker prevented a criminal’s bullet from killing the
your message. An example is the difference between officer. Zippo leaders can inspire workers with such
enable versus allow. If a leader’s effort produced a re- heroic tales starring the Zippo lighter. In recent years,
sult, the leader enabled it. In the leader simply removed Zippo has shifted into many nonsmoking-related
an obstacle, the leader merely allowed it.15 products, but the anecdotes are still inspiring for the
Closely related to heavy-impact language is the use nonsmoker.
of emotion-provoking words and phrases. According to
molecular biologist John Medina, the brain does not Back Up Conclusions with Data
pay attention to boring things, which helps explains the You will be more persuasive if you support your spo-
importance of emotion-provoking words and phrases.16 ken and written presentations with solid data. One
An expert persuasive tactic is to sprinkle your speech approach to obtaining data is to collect them your-
with emotion-provoking—and therefore inspiring— self—for example, by conducting an online survey of
words. Emotion-provoking words bring forth images your customers or group members. Published sources
of exciting events. Examples of emotion-provoking and also provide convincing data for arguments. Support-
powerful words include “outclassing the competition,” ing data for hundreds of arguments can be found on
“partnering with customers,” “surpassing previous appropriate websites, in the business pages of newspa-
profits,” “capturing customer loyalty,” and “rebound- pers, and in business magazines and newspapers. The
ing from a downturn.” It also helps to use words and Statistical Abstract of the United States, published an-
phrases that connote being modern. Those now in nually, is an inexpensive yet trusted reference for thou-
vogue include inclusive organization, transparent orga- sands of arguments.
nization, and seamless organization. Relying too much on research has a potential disad-
An emotion-provoking phrase to get an answer to vantage, however. Being too dependent on data could
your proposal is, “On a scale of 1 to 10, how excited are suggest that you have little faith in your own intuition.
you about this proposal?” If you want to move people For example, you might convey an impression of weak-
to action, a phrase with emotion-provoking possibil- ness if, when asked your opinion, you respond, “I can’t
ities is, “Here is what most people do next.” Another answer until I collect some data.” Leaders are generally
possibility is, “What is stopping you form moving decisive. An important issue, then, is for the leader to
forward?”17 find the right balance between relying on data and us-
A large vocabulary assists using both heavy-impact ing intuition alone when communicating an important
and emotion-provoking words. When you need to per- point.
suade somebody on the spot, it is difficult to search for
the right words in a dictionary or thesaurus—even if
Minimize Language Errors, Junk Words,
you access the Internet with your smartphone. Also,
and Vocalized Pauses
you need to practice a word a few times to use it com-
fortably for an important occasion. Using colorful, powerful words enhances the percep-
tion that you are self-confident and have leadership
qualities. Also, minimize the use of words and phrases
Use Anecdotes to Communicate Meaning that dilute the impact of your speech, such as “like,”
Anecdotes are a powerful part of a leader’s kit of per- “you know,” “you know what I mean,” “he goes” (to
suasive and influence tactics, as already mentioned in mean “he says”), and “uh.” Such junk words and vo-
this chapter and in Chapter 3 about charismatic leader- calized pauses convey the impression of low self-confi-
ship. Although storytelling is an ancient art, it is more dence, especially in a professional setting, and detract
in vogue than ever as a method for leaders to influence from a sharp communication image.
and inspire others. The title of the marketing manager An effective way to decrease the use of these extra-
at the software giant SAP is “Chief Storyteller Execu- neous words is to video-record your side of a phone
tive Advisory and Architecture.” A carefully chosen conversation and then play it back. Many people are
anecdote is also useful in persuading group members not aware that they use extraneous words until they
about the importance of organizational values. So long hear recordings of their speech.
as the anecdote is not repeated too frequently, it can An effective leader should be sure always to write
communicate an important message. and speak with grammatical precision to give the
Inspirational and Powerful Communication 315
impression of being articulate and well informed, without deliberate thought, and at other times jargon
thereby enhancing their leadership stature. Here are words and phrases are chosen to help establish rapport
two examples of common language errors: “Just be- with the receiver. A vastly overused phrase these days is
tween you and I” is wrong; “just between you and me” “at the end of the day,” with “scale” fighting for second
is correct. “Him and I,” or “her and I,” are incorrect place. “The end of the day” has come to replace “in the fi-
phrases despite how frequently they creep into social nal analysis,” “space” has replaced “industry sector,” and
and business language. “He and I” and “She and I” are “buckets” replace “categories.” Many businesspeople say
correct when used as the subjects of a sentence. “Him “at the end of the day” twice in the same few sentences.
and me” or “Her and me” are correct when used as the Six major executives and management professors
objects of a sentence. For example, “She and I greeted were asked which buzzwords they would ban from con-
the client” and “The client greeted her and me” are versation in the boardroom, office, and beyond: The
both correct. six disliked buzzwords, or jargon words, were “push
Using they to refer to a singular antecedent has the envelope,” “de-layering” (in place of downsizing),
become so common in the English language that “dynamic resilience,” “out-of-the-box thinking,”
many people no longer make the distinction between “passionate,” and “viral.”19
singular and plural. A contributing reason is that us- Sprinkling business talk with jargon does indeed
ing the singular often results in saying “he” or “she.” help establish rapport and adds to a person’s popularity.
This terminology is considered by many people to be But too much jargon makes a person seem stereotyped
non-inclusive because the implication is that sex, or in thinking, and perhaps even unwilling to express an
gender, is binary. Using “they” to refer the singular is original thought—and therefore lacking power.
therefore no longer considered a grammatical error
by most people. Not every culture agrees. For exam-
Write Crisp and Clear Memos, Letters, and Reports
ple, the French education ministry has banned the use
that Include a Front-Loaded Message
of gender-neutral language in schools, citing harm to
the learning of the French language. Unlike English, Business leaders characteristically write easy-to-read,
almost every noun and adverb in the French language well-organized messages, both in email and in more
is either masculine or feminine, making midpoints formal reports. Writing, in addition to speaking, is
or compromise difficult.18 In support of inclusive lan- more persuasive when key ideas are placed at the be-
guage, many education officials intend to fight the ban ginning of a conversation, email message, paragraph,
on gender-free language. or sentence.20 Front-loaded messages (those placed at
Perhaps the most common language error busi- the beginning of a sentence) are particularly important
ness leaders make is to convert hundreds of nouns into for leaders because people expect leaders to be forceful
verbs. Many nouns do become legitimate verbs, such as communicators. A front-loaded and powerful message
using the noun phone for a verb, such as “I will phone might be, “Cost reduction must be our immediate pri-
you later.” The leader has to set a limit, and perhaps not ority,” which emphasizes that cost reduction is the ma-
use such verb-to-noun conversions such as, “Facebook jor subject. It is clearly much more to the point than,
me tonight,” “Focus-group this problem,” and “Skype for example, “All of us must reduce costs immediately.”
me a message.” Yet, the hip leader will correctly use One way to make sure messages are front-loaded
nouns that have been converted into dual use as a verb is to use the active voice, making sure the subject of
and noun, such as “Google some potential customers the sentence is doing the acting, not being acted upon.
for this product.” Judgment is called for with respect to Compare the active (and front-loaded) message, “Loyal
which nouns should be used as verbs to avoid sounding workers should not take vacations during a company
silly, and therefore weak. crisis” to the passive (not front-loaded) message,
When in doubt about a potential language error, “Vacations should not be taken by loyal workers during
consult a respected dictionary or guide to business a company crisis.” Recognize, however, that less em-
communications. With printed information, you at phasis is placed on the active voice today than several
least know that the suggestions have usually been ed- years ago. Also, the passive voice may be necessary for
ited by a knowledgeable person. front-loading, as in “Cloud backups are recommended
by cybersecurity experts.”
Suggestions for effective business writing continue
Use Business Jargon in Appropriate Doses to evolve, and many of these tips are worthy of a lead-
Business and government executives and profession- er’s or potential leader’s attention. For example, using
als make frequent use of jargon. Workplace jargon is a “Dear” in a salutation is practiced rarely, particularly
natural part of almost any organization. (Only athletic in the United States. The leader who uses “Dear” might
coaches exceed businesspeople in the heavy use of jar- therefore stand out. Yet, “Hello” beats “Hey” or “Hi” for
gon and clichés.) Often the jargon is used automatically appearing dignified.
Learning Objective 12.3 Pinpoint the key features of a plan shortly before the end of November. I need to
power-oriented linguistic style. collect input from my team and sift through the
information.”
Use a Power-Oriented Linguistic Style ● Know exactly what you want. Your chances of sell-
A major part of being persuasive involves choosing the ing an idea increase to the extent that you have clar-
correct linguistic style, a person’s characteristic speak- ified the idea in your own mind. The clearer and
ing pattern. According to Deborah Tannen, linguistic more committed you are at the outset of a session,
style involves such aspects as the amount of directness, the stronger you are as a persuader and the more
pacing and pausing, word choice, and the use of such powerful your language becomes.
communication devices as jokes, figures of speech, an- ● Speak at length, set the agenda for a conversation,
ecdotes, questions, and apologies.21
make jokes, and laugh. Be ready to offer solutions
Linguistic style is complex because it includes the
to problems, as well as to suggest a program or
culturally learned signals by which people communi-
plan. All of these points are more likely to create a
cate what they mean, along with how they interpret
sense of confidence in listeners.
what others say and how they evaluate others. Many of
the elements of a power-oriented linguistic style are in-
● Strive to be bold in your statements. As a rule of
cluded in other suggestions made in this section of the thumb, be bold about ideas, but tentative about
chapter, including using heavy-impact words. Here are people. If you say something like “I have a plan that
several components of a linguistic style that would give I think will solve these problems,” you are present-
power and authority to the message sender in many ing an idea, not attacking a person.
situations, as observed by Tannen and other language ● Frame your comments in a way that increases your
specialists:22 listener’s receptivity. The frame is built around the
best context for responding to the needs of others.
● Speak loudly enough to be heard by the major-
An example would be to use the frame, “Let’s dig a
ity of people with at least average hearing abil-
little deeper,” when the other people present know
ity. Speaking too softly projects an image of low
something is wrong but cannot pinpoint the prob-
self-confidence.
lem. Your purpose is to enlist the help of others in
● Make frequent use of a big picture perspective finding the underlying nature of the problem.
rather than focusing on details. Proving an over-
all direction makes the person presenting the idea Despite these suggestions for having a power-
seem more in control. After the big picture has been oriented linguistic style, Tannen cautions that there
presented, a few supporting details can add to the is no one best way to communicate. How you project
persuasiveness of the pitch. The CEO of a startup your power and authority is often dependent on the
might begin a presentation to potential investors people involved, the organizational culture, the relative
by emphasizing that her company is one the most rank of the speakers, and other situational factors. The
innovative in its niche of home and small-business power-oriented linguistic style should be interpreted as
security systems. The CEO would then give a couple a general guideline.
examples of these innovative devices.
● Minimize self-deprecation with phrases such as,
“This will probably sound stupid, but ...” Apologize
infrequently, and particularly minimize saying, “I’m Basic Principles of Persuasion
sorry.”
● Make your point quickly. You know you are taking
Learning Objective 12.4 Articulate the basic principles of
too long to reach a conclusion when others look
persuasion.
bored or finish your sentences for you.
● Emphasize direct rather than indirect talk: Say, “I Persuasion is a major form of influence, so it has
need your report by noon tomorrow,” rather than, gained in importance in the modern organization be-
“I’m wondering if your report will be available by cause of the reason described in Chapter 8: Managers
noon tomorrow.” must often influence people for whom they have no
● Weed out wimpy words. Speak up without qual- formal responsibility. The trend stems from leaner
ifying or giving other indices of uncertainty. It is corporate hierarchies and the breaking down of di-
better to give dates for the completion of a proj- vision walls. Managers must persuade peers in situa-
ect rather than say, “I’ll get it to you soon” or “It tions where lines of authority are unclear or do not
shouldn’t be a problem.” Instead, make a state- exist. One way to be persuasive is to capitalize on sci-
ment like, “I will have my portion of the strategic entific evidence about how to persuade people.
Robert B. Cialdini has synthesized knowledge from improve quality might mention being certified in
experimental and social psychology about methods for the quality process Six Sigma.
getting people to concede, comply, or change. These 6. Scarcity: People want more of what they can
principles can also be framed as influence principles, have less of. An application of this principle is that
but with a focus on persuasion.23 The seven principles the leader can persuade group members to act in a
described next have accompanying tactics that can be particular direction if the members believe that the
used to supplement the other approaches to persuasion resource at issue is shrinking rapidly. One way to
described in this chapter. (The seventh principle is a apply this principle is to persuade group members
more recent addition to the basic six.) by using information not readily available to others.
1. Liking: People like those who like them. As a The leader might say, “I have some preliminary sales
leader, you have a better chance of persuading and data. If we can increase our sales by just 10 percent
influencing group members who like you. Empha- in the last month of this quarter, we could be the
sizing similarities between you and the other per- highest performing unit in the company.”
son and offering praise are the two most reliable 7. Pre-suasion: put people in a receptive mood be-
techniques for getting another person to like you. fore asking them for something. Persuasion is
The leader should therefore emphasize similarities, likely to be the most effective when you get others
such as common interests with group members. to agree with a message before it is even sent. You
Praising others is a powerful influence technique attempt to get the other person in a receptive mood
and can be used effectively even when the leader before asking for something. A practical approach to
finds something relatively small to compliment. pre-suasion is to solicit other people’s advice before
Genuine praise is the most effective. proposing a key initiative. For example, you might
2. Reciprocity: People repay in kind. Managers can ask for advice on your idea of consolidating three
often influence group members to behave in a par- office locations into one. Asking the advice makes
ticular way by displaying the behavior first. The the other people more favorable toward your idea.24
leader might therefore serve as a model of trust, The developer of these principles explains that they
good ethics, or strong commitment to company should be applied in combination to multiply their im-
goals. In short, give what you want to receive. pact. For example, while establishing your expertise
3. Social proof: People follow the lead of similar you might simultaneously praise people for their ac-
others. Persuasion can have high impact when it complishments. It is also important to be ethical, such
comes from peers. If you as the leader want to in- as by not fabricating data to influence others.25
fluence a group to convert to a new procedure, such Another principle of persuasion of potential use
as virtually eliminating paper records in the office, to leaders is altercasting, in which you characterize
ask a believer to speak up in a meeting or send their another person as a certain type of person to encour-
statement of support of digital record-keeping only. age the desired behavior. You cast the other person,
4. Consistency: People align with their clear com- or alter, in a role before you make a request. The ap-
mitments. People need to feel committed to what proach can work as a persuasion, or influence, tactic
you want them to do. After people take a stand or because many people want to rise to the occasion.26
go on record in favor of a position, they prefer to Suppose team leader Tammy has to deal for the third
stay with that commitment. Suppose you are the time with an angry client who wants to cancel the
team leader and you want team members to be- team’s contract because of a cost overrun. Tammy
come more active in the community as a way of recognizes that she is responsible for this task, but is
creating a favorable image for the firm. If the team performing poorly. She altercasts by saying to team
members talk about their plans to get involved and member Ivy, “You’re so effective in resolving conflict,
also put their plans in writing, they are more likely how about you dealing with this irate client the next
to follow through. If the people involved read their time she calls?”
action plans to each other, the commitment will be
even stronger. Nonverbal Communication Including
5. Authority: People defer to experts. The action
Videoconferencing and Telepresence
plan here is to make constituents aware of your Effective leaders are masterful nonverbal as well as
expertise to enhance the probability that your plan verbal communicators. Nonverbal communication is
will persuade them. A leader might mention cer- important because leadership involves emotion, which
tification in the technical area that is the subject words alone cannot communicate convincingly. A ma-
of influence. For example, a leader attempting to jor component of the emotional impact of a message is
persuade team members to use statistical data to communicated nonverbally.
A self-confident leader not only speaks and writes Self-confidence is projected by such small items as the
with assurance but also projects confidence through following:
body position, gestures, and manner of speech. Not ev- ● Neatly pressed and sparkling clean clothing
erybody interprets the same body language and other
nonverbal signals in the same way, but some aspects of
● Freshly polished shoes, or freshly cleaned athletic
nonverbal behavior project a self-confident leadership shoes
image in many situations.27 ● Impeccable fingernails
● Using an erect posture when walking, standing,
● Well-maintained hair
or sitting. Slouching and slumping are almost ● Good-looking, bright teeth
universally interpreted as an indicator of low What constitutes a powerful and self-confident ex-
self-confidence. ternal image is often influenced by the organizational
● Standing up straight during a confrontation. Cow- culture. At a software development company, for exam-
ering is interpreted as a sign of low self-confidence ple, powerful people might dress more casually than at
and poor leadership qualities. an investment banking firm. Leadership at many law
● Standing with toes pointing outward rather than firms has moved back toward formal business attire
inward. Outward-pointing toes are usually perfor the professional staff. Your verbal behavior and the
ceived as indicators of superior status, whereas forms of nonverbal behavior previously discussed con-
inward-pointing toes are perceived to indicate in- tribute more to your leadership image than your cloth-
feriority. Also, opening limbs at eighteen inches or ing, providing you dress acceptably.
more expresses power and dominance. Videoconferencing, including Zoom conferences,
places extra demands on the nonverbal communication
● Speaking at a moderate pace, with a loud, confi-
skills of leaders, managers, and other participants. An
dent tone. People lacking in self-confidence tend to
advance in videoconferencing, referred to as telepres-
speak too rapidly or very slowly.
ence, places even more demands on nonverbal com-
● Smiling frequently in a relaxed, natural-appearing munication skills because it appears closer to human
manner. presence. For example, the illumination highlights the
● Maintaining eye contact with those around you, facial features of the people sitting in the telepresence
with the ideal gaze lasting about seven to ten sec- studio. Some telepresence systems are custom-built
onds. The ability to make eye contact has multi- meeting rooms equipped with a bank of high-defini-
plied in importance as a sign of leadership because tion screens and cameras. Other systems take the form
so many people are accustomed to looking at their of humanoid robots that are used outside of meeting
mobile devices at every possible moment, and rooms. Etiquette tips for making a strong nonverbal
therefore lack skill in looking directly at people. presence during a videoconference or telepresence con-
● Gesturing in a relaxed, nonmechanical way, includ- ference include the following, and are similar to nonver-
ing pointing toward others in a way that welcomes bal communication suggestions in general:
rather than accuses, such as using a gesture to indi- ● Choose what you wear carefully, remembering that
cate, “You’re right,” or “It’s your turn to comment.” busy (confusing and complex) patterns look poor
● Taking up a lot of space, which might include ex- on video. Also do not wear formal attire mixed with
tending the arms, conveys power and confidence. running shoes because you might move into full
camera view. (Recognize, however that when work-
A general approach to using nonverbal behavior
ing from home and participating in a video confer-
that projects confidence is to have a goal of appearing
ence, formal attire is probably not required.)
self-confident and powerful. This type of autosugges-
tion makes many of the behaviors seem automatic. For
● Speak in crisp conversational tones and pay atten-
example, if you say, “I am going to display leadership tion. (The tone and paying attention are the nonver-
qualities in this meeting,” you will have taken an im- bal aspects of communication.)
portant step toward appearing confident. ● Never forget the video camera’s powerful reach,
Your external image also plays an important role such as catching you rolling your eyes when you
in communicating messages to others. People pay disagree with a subordinate, or sending and receiv-
more respect and grant more privileges to those they ing text messages during the conference.
perceive as being well dressed and neatly groomed.
An effective way of sharpening your videocon-
Even on casual dress days, most effective leaders will
ferencing and telepresence nonverbal skills, as well
choose clothing that gives them an edge over others.
as other nonverbal skills, is to be videotaped several
Appearance includes more than the choice of clothing.
times. Make adjustments for anything you don’t like,
Feedback on Verbal and Nonverbal Behavior

Ten volunteers have one week to prepare a three-minute Emphasis should be placed on positive feedback and
presentation on a course-related subject of their choice. constructive suggestions. Students pass the feedback
The topics of these presentations could be as far-reaching cards along to the speakers. The cards can be anony-
as “The Importance of Investing in Gold” or “My Goals and mous to encourage frankness, but they should not be
Dreams.” The class members who observe the presenta- mean-spirited.
tions prepare feedback slips on 3 3 5 cards, describing how Persuading and inspiring others is one of the main vehi-
well the speakers communicated powerfully and inspiration- cles for practicing leadership. Knowing how others perceive
ally. One card per speaker is usually sufficient. Notations you helps you polish and refine your impact.
should be made for both verbal and nonverbal feedback.
and repeat what you do like. Feedback on your behav- and chief marketing officer of Sapient Corporation, a
ior from another observer can be quite helpful. global services company, believes that the organiza-
Now that you have refreshed your thoughts on tional culture contributes to effective listening. He says
effective verbal and nonverbal communication, do that it is incumbent upon the company to create an en-
Leadership Skill-Building Exercise 12-1. vironment that welcomes exploration and questioning.29
Three major impediments face the leader who
wants to be an effective listener. First, the leader is
Listening as a Leadership Skill so often overloaded with responsibilities, including
Listening is a fundamental management and leader- analytical work, that it is difficult to take the time to
ship skill. Listening also provides the opportunity for carefully listen to subordinates. Second is the speed
dialogue and conversation, in which people understand difference between speaking and listening. The average
each other better by taking turns having their point of rate of speaking is between 125 and 175 words per min-
view understood. For a leader to support and encour- ute, yet people can listen on average to 450 words per
age a subordinate, active listening (as described in minute. The leader, as well as anybody else, will there-
the discussion of coaching) is required. Also, effective fore often let the mind wander. Third, multitasking is
leader–member exchanges require that each party lis- a major deterrent to listening carefully to subordinates
ten to one another. The relationship between two par- because the leader who is involved in another task at
ties cannot be enhanced unless each one listens to the the moment, such as glancing at a tablet computer, is
other. Furthermore, leaders cannot identify problems not paying full attention to the speaker.
unless they listen carefully to group members. Here, we look at three leadership aspects of listen-
The relevance of careful listening to leadership ef- ing to supplement your general knowledge of listening,
fectiveness is underscored by the listening tours taken acquired most likely in other courses: showing respect,
by newly appointed executives. Before making changes, avoiding selective listening to problems, and making
such as deciding on new policies or developing strategy, the rounds.
the executive spends time listening to stakeholders such
as employees, customers, and suppliers. When Adena
Show Respect
Friedman returned as copresident of Nasdaq Inc, the
first thing she did was embark on an international tour. A foundation tactic for a leader to become an effective
(She left Nasdaq to serve as chief financial officer of an listener is to show respect for others. Researchers and
investment banker for two years, and is now president practitioners have observed that the everyday behavior
and CEO of Nasdaq.) “I met with clients and employees of asking subordinates open-ended questions and at-
in every single one of our divisions across the world,” said tentively listening to their responses is a powerful lead-
Friedman. She traveled to twenty-two cities in her first ership technique. This approach of respectful inquiry
eighteen months.28 motivates subordinates because it increases their feel-
An effective approach to developing good listening ing of autonomy. Just the act of asking, “How’s it go-
habits is to remember to ask questions—and then listen ing?” or “What do you think?” relinquishes the leader’s
to the answers. Bill Kanarick, the senior vice president control of the situation.”30
Consultant Bernard T. Ferran provides the case in CEO with a propensity to listen only to financial re-
point of the COO of a large medical institution. He told sults might ignore any word of problems so long as
Ferran that he could not run an operation as complex the company is earning a profit.
as a hospital without gathering input from staff mem-
bers at all levels—from the chief of surgery to the cus-
todial crew. The chief operating officer let everyone Making the Rounds
know that he believed each one of them had some- A robust communication channel for the leader/
thing unique to contribute. As the executive drew out manager is to engage in face-to-face communication
the critical information, he attentively processed what with direct reports and others, with an emphasis on
he heard. Part of the COO’s being liked and admired listening. Making the rounds refers to the leader ca-
stemmed from his listening approach.31 sually dropping by constituents to listen to their ac-
A finding from a study based on 3,500 participants in complishments, concerns, and problems and to share
a training program for managerial coaching supports the information. Rounding is a well-established concept
idea of showing respect. It was found that good listening from health care in which the physician talks to pa-
included interactions that build a person’s self-esteem. tients and other health care workers to observe prob-
Good listeners made the other person feel emotionally lems and progress firsthand.34 Through rounding, vital
supported and conveyed confidence in that individual.32 information is gathered if the physician or manager lis-
An example of an esteem-building suggestion would be, tens carefully. Making the rounds is also referred to as
“Your idea about reaching the Native American market management by walking around, yet rounding seems
is well thought through. Let’s explore it further.” more focused and systematic.
From the perspective of listening, the leader stays
alert to potential problems. Assume that a subordinate
is asked, “How are things going?” and replies, “Not too
Avoiding Selective Listening
terribly.” This response begs a little digging, such as,
to Problems “What is happening that is a little terrible?”
Leadership Skill-Building Exercise 12-2 gives you
Learning Objective 12.5 Discuss the challenge of
an opportunity to try out the fundamental leadership
selective listening, and the basics of making the rounds.
skill of listening.
Organizational leaders are so often bombarded with
demands and information that it is difficult to be at-
tentive to a full range of problems. The leader there- Overcoming Cross-Cultural
fore makes an intentional or unintentional decision
to listen to just certain problems. Organizational
Communication Barriers
psychologist and now dean of the Wharton School, Learning Objective 12.6 Be sensitive to the importance
Erika H. James, notes that despite how our brains or- of overcoming cross-cultural barriers to communication.
dinarily work, success is dependent on staying open
to all incoming information. 33 The busy leader must Another communication challenge facing leaders and
avoid listening to limited categories of information managers is overcoming communication barriers cre-
such as good news, bad news, or financial news. A ated by dealing with people from different cultures and
Leadership Listening
Six or seven students gather for a team meeting to dis- The team leader, along with team members, displays care-
cuss an important operational problem, such as finding ful listening whenever ideas surface. Students not directly
new ways to reduce the cycle time required to complete involved in the group role play will take note of the listening
their tasks, or deciding how to convince top management skills they observe so that they can provide feedback later.
to expand the team budget. One person plays the role of Be particularly observant of selective listening. If class time
the team leader. All of the group members take turns at allows, another team of six or seven students can repeat
making both useful and apparently not useful suggestions. the group role play.
Overcoming Cross-Cultural Communication Barriers 321
subcultures. Leaders typically communicate with peo- of cross-cultural communication barriers. Implement-
ple from other countries and with a more diverse group ing these guidelines will help overcome and prevent
of people in their own country. Because of this work- many communication problems. A useful starting point
place diversity, leaders who can manage a multicultural here is to take Leadership Self-Assessment Quiz 12-2
and cross-cultural work force are in strong demand. to help you think through your cross-cultural skills and
Here we give some guidelines for overcoming a variety attitudes.
Cross-Cultural Skills and Attitudes

Instructions: Listed here are various skills and attitudes that various employers and cross-cultural experts think are important
for relating effectively to coworkers in a culturally diverse environment. Indicate whether or not each statement applies to you.
Applies to Not There

Me Now Yet
1. I have spent some time in another country.

2. At least one of my friends is deaf, blind, or uses a wheelchair.
3. I have an approximate idea of how much the U.S. dollar is worth
in comparison to the euro.
4. I have tried eating food from a culture much different than my
own—aside from eating in a Chinese or Italian restaurant.
5. I can speak in a language other than my own.
6. I can read and write in a language other than my own.
7. I can understand people speaking in a language other than my
own.
8. I can identify a religious holiday from at least two religions.
9. My friends include people of races different from my own.
10. My friends include people of different ages.
11. I feel (or would feel) comfortable having a friend with a sexual
orientation different from mine.
12. My attitude is that although another culture may be very different
from mine, that culture is equally good.
13. I would be willing to (or already do) hang art from different coun-
tries in my home.
14. I would accept (or have already accepted) a work assignment of
more than several months in another country.
15. I have a passport.
Scoring and Interpretation: If you answered “Applies to Me Now” to ten or more questions, you most likely function well
in a multicultural work environment. If you answered “Not There Yet” to ten or more questions, you need to develop more
cross-cultural awareness and skills to work effectively in a multicultural work environment. You will notice that being bilingual
gives you at least 4 points on this quiz.
1. Be sensitive to the fact that cross-cultural com- Speaking slowly is also important because
munication barriers exist. Awareness of these even people who read and write a second language
potential barriers is the first step in dealing with at an expert level may have difficulty catching
them. When dealing with a person of a different some nuances of conversation. Facing the person
cultural background, solicit feedback to minimize from another culture directly also improves
cross-cultural barriers to communication. For ex- communication because your facial expressions
ample, investigate which types of praise or other and lips contribute to comprehension. And
rewards might be ineffective for a particular cul- remember, there is no need to speak much louder.
tural group. In many instances, Asians newly ar- 5. Look for signs of misunderstanding when your
rived in the United States feel uncomfortable being language is not the listener’s native language.
praised in front of others because in Asian cultures Signs of misunderstanding may include nods and
group performance is valued more than individual smiles not directly connected to what you are say-
performance. Being alert to cultural differences in ing, a lack of questions, inappropriate laughter, and
values, attitudes, and etiquette will help you com- a blank expression. If these signs are present, work
municate more effectively with people from differ- harder to apply the suggestions in point 4.36 Also,
ent cultures. ask questions to clarify misunderstanding, such as
2. Challenge your cultural assumptions. The as- “Who would like clarification about what ‘top-line
sumptions we make about cultural groups can cre- revenue’ means?”
ate communication barriers. The assumption you 6. When the situation is appropriate, speak in the
make about another group may not necessarily be language of the people from another culture.
incorrect, but stopping to challenge the assump- Americans who can speak another language are at a
tions may facilitate communication. A U.S. leader, competitive advantage when dealing with business-
for example, might assume that the norms of inde- people who speak that language. The language skill,
pendence and autonomy are valued by all groups in however, must be more advanced than speaking a
the workplace. In reality, the idea of individual ac- few basic words and phrases. Speaking the local
complishment does not have positive connotations language will often bring a person more insight and
for all groups. Among many Latino cultural groups, prevent misunderstandings. Equally important, be-
interpersonal harmony is valued over individual ing bilingual helps bring a person the respect that a
accomplishment. leader needs to be fully credible.37
3. Show respect for all workers. The same behav- A frustration the native English speaker who is
ior that promotes good cross-cultural relations in using another language faces is that so many people
general helps overcome communication barriers. around the world capitalize on an opportunity to
A widely used comment that implies disrespect is speak English. As a result, the leader who speaks
to say to a person from another culture, “You have another language to establish rapport might be
a funny accent.” Should you be transposed to that rebuffed. Despite this problem, speaking another
person’s culture, you too might have a “funny ac- language in the workplace is likely to have a
cent.” The attitude of highest respect is to commu- positive net effect.
nicate your belief that although another person’s As more deaf people have been integrated into
culture is different from yours, it is not inferior to the work force, knowing American Sign Language
your culture. Showing respect for another culture can be a real advantage to a leader when some
can be more important than being bilingual in over- constituents are deaf. (The term deaf is chosen
coming communication barriers.35 here with care because hearing impaired is now
4. Use straightforward language, and speak slowly considered offensive by many deaf people.)
and clearly. When working with people who do 7. Observe cross-cultural differences in etiquette.
not speak your language fluently, speak in an Violating rules of etiquette without explanation can
easy-to-understand manner. Minimize the use of id- erect immediate communication barriers. A major
ioms and analogies specific to your language. A sys- rule of business etiquette in most countries is that
tems analyst from New Delhi, India, left confused the participants conducting serious business to-
after a performance review with her manager. The gether should first share a meal. If you are invited
manager said, “I will be giving you more important to a banquet that takes place the night before dis-
assignments because I notice some good chemistry cussions about a major business deal, regard the
between us.” The woman did not understand that banquet as a major opportunity to build a relation-
good chemistry means rapport, and she did not ask ship. To avoid the banquet is a serious faux pas.
for clarification because she did not want to appear 8. Do not be diverted by style, accent, grammar, or
uninformed. personal appearance. Although these superficial
The Leader’s Role in Resolving Conflict and Negotiating 323
factors are all related to business success, they are Another type of intergroup conflict leaders might face
difficult to interpret when judging a person from is dealing with heavy demands from a large employee
another culture. It is therefore better to judge the group, such as employees uniting to complain about
merits of the statement or behavior. A highly in- working conditions. A frequent conflict of this type is a
telligent worker from another culture may still be group of workers demanding a higher minimum wage,
learning English and thus make basic mistakes. The particularly at large discount retailers and fast-food
person might also not yet have developed a sensitiv- chains. Leaders are sometimes involved in conflict with
ity to dress style in your culture, for example. groups outside their organization, and such conflict may
9. Be sensitive to differences in nonverbal com- need to be resolved. An example is that state governments
munication. A person from another culture may have begun demanding sales taxes from online merchants
misinterpret nonverbal signals. To use positive re- who claimed that they were exempt from such taxation.
inforcement, some managers will give a sideways An important perspective on workplace conflict is that
hug to an employee or will touch the employee’s a moderate degree can be healthy because it can result in
arm. People from some cultures resent touching confronting issues and resolving the problem. For exam-
from workmates and will be offended. Koreans in ple, conflict about how much time the professional staff
particular dislike being touched or touching others can work from home might lead to a favorable resolution
in a work setting. of the problem. Psychologist and business strategist Li-
one Davey argues that tension and conflict is not the an-
10. Be attentive to individual differences in appear-
tithesis of teamwork, it is the purpose of teamwork.40
ance. A major cross-cultural insult is to confuse
An extensive description of conflict resolution is
the identity of people because they are members
more appropriate for the study of managerial skills
of the same race or ethnic group. A study suggests
than for the study of leadership skills. The reason is
that people have difficulty seeing individual differ-
because conflict resolution has more to do with estab-
ences among people of another race because they
lishing equilibrium than with helping the firm or orga-
see so-called racial differences first; they might
nizational unit reach new heights. Here we focus on a
think, “He has the eyes of a Japanese person.”
basic framework for understanding conflict resolution
However, people can learn to search for more dis-
styles, resolving conflict between two group members,
tinguishing features, such as a dimple or eye color,
and a few suggestions for negotiating and bargaining.
and expression (serious or not so serious).38
Conflict Management Styles

As shown in Figure 12-1, a widely accepted finding is
The Leader’s Role in Resolving that there are five major styles of conflict management:
Conflict and Negotiating
Learning Objective 12.7 Enumerate basic approaches to Competitive Collaborative
resolving conflict and negotiating. (High concern for self; (High concern for self;
low concern for other high concern for other
Leaders and managers spend considerable time resolv- side.) side.)
ing conflicts and negotiating. A frequent estimate is

that they devote about 20 percent of their time to deal-
ing with conflict including negotiation. Conflict arises
frequently among top executives, and it can have enor- Sharing
mous consequences for the organization. An example (Looks for compromise;
of such competition would be two business units com- willing to go half-way.)
peting for resources.

Departmental competition has been regarded as
the ugly underbelly of all sizes of companies, often re-
sulting in product delays, increased costs, and dwin-
Avoidant Accommodative
dling market shares as departments fight each other
for domination behind the scenes. Until conflict be- (Low concern for self; (Low concern for self;
low concern for other high concern for other
tween or among the groups is resolved, collaboration side.) side.)
is unlikely.39 For example, if the operations group is
in conflict with the human resources group, it will be
difficult for the two groups to collaborate on a diver- Figure 12-1 Conflict-Handling Styles According to the
sity training program. Degree of Cooperation and Assertiveness.
My Conflict Resolution Style

Instructions: Answer each of the following statements “mostly true” or “mostly false” with respect to how you have dealt
with the situation, would deal with the situation, or how much you agree with the attitude expressed.
Mostly Mostly
True False
1. I see myself as a hard-hitting, smash-mouth negotiator.

2. The best way to resolve conflict is to overwhelm the other side.
3. When negotiating a price, I like to make sure that the other side walks away
with at least some profit.
4. When negotiating a price, I like to start with an outrageous demand or offer
so I can eventually get the price I really wanted.
5. After a successful negotiation, one side wins and one side loses.
6. After a successful negotiation, both sides walk away with something of value.
7. When I am in conflict with somebody else, I try to listen carefully to under-
stand that person’s point of view.
8. Wining is key, so why grant concessions when in a dispute?
9. When working out a disagreement with a workmate, I keep in mind the fact
that we will have to work together in the future.
10. Nice people finish last when it comes to resolving disputes.
Total score:
Scoring and Interpretation: Give yourself a score of 1 for each answer that matches the scoring key:
● Mostly false ● Mostly false ● Mostly true
● Mostly false ● Mostly true ● Mostly false
● Mostly false ● Mostly true
● Mostly true ● Mostly false
If your score is 8, 9, or 10, you most likely use the collaborative (win–win) approach to resolving conflict and negotiating. If
your score is 7 or less, you most likely use the competitive (win–lose) approach to resolving conflict and negotiating. The col-
laborative approach is more likely to enhance your leadership effectiveness in the long run.
competitive, accommodative, sharing, collaborative, A person with a competitive orientation is likely to en-
and avoidant. Each style is based on a combination gage in win–lose power struggles. A leader with a com-
of satisfying one’s own concerns (assertiveness) and petitive style might attempt to get another company
satisfying the concerns of others (cooperativeness).41 leader fired who disagreed with him rather than look-
Leadership Self-Assessment Quiz 12-3 gives you an ing to resolve differences between the two.
opportunity to think about your conflict management
style. Accommodative Style
The accommodative style favors appeasement, or satis-
Competitive Style fying the other’s concerns without taking care of one’s
The competitive style is a desire to achieve one’s own own. People with this orientation may be generous or
goals at the expense of the other party, or to dominate. self-sacrificing just to maintain a relationship. An irate
customer might be accommodated with a full refund, would be even more helpful. In general, a good apology
“just to shut that customer up.” The intent of such ac- must be perceived as genuine, with an honest appeal
commodation might also be to retain the customer’s for forgiveness.42
loyalty.
Avoidant Style
Sharing Style
Avoiders combine lack of cooperation and unassert-
The sharing style is halfway between domination and
iveness. They are indifferent to the concerns of either
appeasement. Sharers prefer moderate but incomplete
party. The person may actually be withdrawing from
satisfaction for both parties, which results in a compro-
the conflict or be relying upon fate. An example of an
mise. The term splitting the difference reflects this ori-
avoider is a manager who stays out of a conflict be-
entation, which is commonly used in such activities as
tween two team members, leaving them to resolve their
settling a patent infringement lawsuit.
own differences.
People engaged in conflict resolution typically com-
Collaborative Style bine several of the five resolution styles to accomplish
In contrast to the other styles, the collaborative style re- their purpose. For example, a generally effective ap-
flects a desire to fully satisfy the desires of both parties. proach to resolving conflict is to be competitive with
It is based on the underlying philosophy of the win– regard to a cost that is important to oneself but unim-
win approach to conflict resolution, the belief that portant to the opponent, and at the same time use ac-
after conflict has been resolved, both sides should gain commodation for a cost that is unimportant to oneself
something of value. The user of win–win approaches but important to the opponent.43
is genuinely concerned about arriving at a settlement Deciding which mode or modes of conflict han-
that meets the needs of both parties, or at least does dling to use depends upon a number of variables. The
not badly damage the welfare of the other side. When major contingency factors are the importance of the
collaborative approaches to resolving conflict are used, conflict issue and the relative power of the opposing
the relationships among the parties are built on and parties. An issue may be so important to a leader, such
improved. as preventing the organizational unit from being out-
The collaborative style of conflict management has sourced, that domination may be the most effective
many variations, one of which is to agree with the per- mode. At other times, a leader may use the accommo-
son criticizing you. When you agree with a critic, you dating mode of conflict management when the oppos-
show that you seek a solution, not a way to demon- ing side has much more power, and the leader may
strate that you are right. If you agree with the sub- want to save domination for a more important issue
stance of the criticism, you show that you are aware in the future.
of the situation and ready to do what is best to solve A variable influencing how much conflict a leader
the problem. has to resolve is the leader’s personality. An ac-
To illustrate, if a group member criticizes you for cepting, warm, and understanding leader will have
having been too harsh in your performance appraisal, less conflict to resolve than a rejecting, cold, and
you might say: “I agree that my evaluation was harsh, non-compassionate leader. Yet a leader who has a con-
but I was harsh for a purpose. I want to be candid flict-prone personality is likely to experience consid-
with you so you will be motivated to make what I erable workplace conflict. Self-Assessment Quiz 12-4
think are necessary improvements.” Your agreement gives you an opportunity to reflect on your degree of
is likely to spark further discussion about how the conflict-proneness.
group member can improve. The collaborative style is
the approach an effective leader is most likely to use
because the outcome leads to increased productivity Resolving Conflict Between
and satisfaction.
Two Group Members
Another form of agreeing with criticism is for lead-
ers to apologize when they have truly made a mistake. A high-level leadership and managerial skill is to help
An apology often reduces conflict because the other two or more group members resolve conflict between
side becomes less hostile, and the scene is set for co- or among them. Much of the time a manager or leader
operation. Visualize a scenario in which members of invests in conflict resolution is geared toward assisting
the executive team vote themselves large financial bo- others to resolve their conflict. Often, the conflict is be-
nuses during a period of financial losses to the com- tween the heads of two different departments or divi-
pany and layoffs of employees. Saying, “We’re sorry, sions. A team leader will sometimes be placed in the
and we goofed” to the union and/or employees can position of having to resolve conflict between or among
help soften the sting. Giving back some of the bonuses team members.
My Tendencies Toward Conflict Proneness

Indicate the extent to which each of the following statements describes your attitude or behavior by circling one number. The
numbers refer to Very Inaccurate (VI), Moderately Inaccurate (MI), Neither accurate nor inaccurate (N), Moderately Accurate
(MA), and Very Accurate (VA). Consider enlisting the help of someone who knows your behaviors and attitudes well to help
you respond accurately to the statements.
Statement Related to Conflict Proneness VI MI N MA VA

1. I like a good fight on the job. 1 2 3 4 5
2. I prefer that coworkers be candid with me if they disagree with 1 2 3 4 5
something I have said or written.
3. I rarely (or would rarely) criticize another person on the job. 5 4 3 2 1
4. Competing against coworkers is enjoyable if I do well. 1 2 3 4 5
5. If somebody at work insulted me, I most likely would not respond. 5 4 3 2 1
6. I enjoy criticizing others when the criticism is even a little bit 1 2 3 4 5
justified.
7. It seems to me that some departments in a large organization are 1 2 3 4 5
just a waste of time and money.
8. It is almost never justified for an employee to devote time to work 1 2 3 4 5
outside of regular working hours.
9. I have gotten along well with almost everyone I have worked with. 5 4 3 2 1
10. I enjoy (or would enjoy) working with people who have different 5 4 3 2 1
work specialties than I do.
11. Business is a tough competitive battle. 1 2 3 4 5
12. I like the idea of different departments in the same organization 1 2 3 4 5
competing for their share of the overall budget.
13. If I noticed a spelling error in somebody else’s PowerPoint presenta- 1 2 3 4 5
tion, I would poke fun at the presenter.
14. I believe strongly in the old saying, “Let sleeping dogs lie.” 5 4 3 2 1
15. If a company thinks that one of their patents is being infringed 1 2 3 4 5
upon, they should sue the other company immediately.
16. I think that “turf wars” are (or would) be a lot of fun on the job. 1 3 3 4 5
17. Conflict with other people gets me discouraged and lowers my 5 4 3 2 1
productivity.
18. Conflict with other people is exciting and boosts my productivity. 1 2 3 4 5
19. The less conflict I face in a job, the better off I am emotionally. 5 4 3 2 1
20. I worry (or would worry) about my job interfering with personal 5 4 3 2 1
life.
21. I worry (or would worry) about my personal life interfering with my 5 4 3 2 1
work.
22. I enjoy (or would enjoy) the excitement of dealing with a workplace 1 2 3 4 5
bully.
23. If another person at work treats me rudely, I would retaliate with 1 2 3 4 5
rudeness of my own.
(continued)
Quiz5-3
12-4 (continued)
Scoring and Interpretation: Calculate your score by adding up the numbers circled.
65-75: You are highly prone toward entering into conflict with others in the workplace. Be on guard against entering into need-
less conflict with others and developing the reputation of a troublemaker.
41-64: You have an average tendency toward conflict-proneness in the workplace. You most likely do not look to enter into
conflict, but you are willing to deal constructively with conflict when it surfaces.
23-40: You are prone to avoid as much conflict as possible in the workplace, and minimize the stress that stems from conflict.
Because so much conflict exists on the job, it might prove helpful to you to deal with rather than avoid conflict.
One analysis suggests that destructive conflict stems runs to the break room so she can chat on her
from perceived incompatibility in the way the team cellphone.
members operate. Among the contributing factors are Stephanie: Look who’s talking. I have seen you nap-
differences in personality, industry background, gen- ping in your SUV when you have a little downtime.
der, and age.44 An incompatibility problem that surfaces Leader: I’m beginning to see what’s going on here.
frequently is that a couple of team members might be Both of you are antagonistic toward each other, and
big-picture thinkers, while a few others focus carefully you look for little faults to pick. With a little more
on details. Big-picture-thinking Amy might say, “I see respect on both sides, I think you would be more
our team having a major impact on the total organiza- willing to help each other out.
tion,” Detail-thinking Tyler might say angrily, “Amy will Josh: Actually, Stephanie’s not too bad. And I know she
you please tells us exactly what you have in mind? Be can perform well when she wants to. Next time I see
specific about we could accomplish.” her needing help, I’ll pitch in.
The most useful approach is to get the parties in Stephanie: I know that the name “Josh” is related
conflict to engage in confrontation and problem solving. to joking around, but our Josh really has a warm
(Confrontation refers to discussing the true problem, heart. I’m open to starting with a fresh slate. Maybe
and problem solving refers to finding a way to resolve Josh can ask me politely the next time he needs
the conflict.) The manager sits down with the two sides help.
and encourages them to talk to each other about the
An effective component to this type of conflict reso-
problem (rather than to the manager). This approach is
lution is for the leader to ask each side to restate what
preferable to inviting each side to speak with the man-
the other person has said.46 In the scenario just pre-
ager or leader alone, because then each side might at-
sented, Josh might say, “I heard Stephanie say that I
tempt to convince the manager that the side is right.
never want to help her.” Stephanie might say, “I heard
During the confrontation and problem-solving ses-
Josh say that I run to the break room to talk on my cell-
sion, the leader/manager is placed in a mediator role
phone when I have a little downtime.”
of being impartial and wanting both sides to come to
Conflict specialist Patrick S. Nugent believes that
an agreement. As shown in the illustration below, the
being able to intervene in the conflicts of group mem-
heart of the approach is storytelling in which each em-
bers is a management skill that grows in importance.
ployee tells how and why the conflict started and per-
Such competencies are useful in an emerging form of
sists. Each side must allow the other side to talk, and
management based less on traditional hierarchy and
the leader maintains impartiality.45 An abbreviated ex-
more on developing self-managing subordinates and
ample follows:
teams. When the conflict is between two different
Leader: I’ve brought you two together to see if you can groups, such as online versus off-line marketing, a ma-
overcome the problems you have about sharing the jor goal of conflict resolution is to get the two sides to
workload during a period in which one of you is see the company’s big picture.47
overloaded.
Stephanie: I’m glad you did. Josh never wants to help
Negotiating and Bargaining
me, even when I’m drowning in customer requests.
Josh: I would be glad to help Stephanie if she ever As described in Chapter 1, negotiating and bargaining
agreed to help me. If she has any downtime, she is a basic leadership role. Few leaders have enough
formal power to get everything they want without ne- negotiation, and figure out how you will be able to at-
gotiation. Situations calling for negotiation include tain them.50 For example, a business unit leader might
arriving at a price for purchasing another company, be negotiating with executives from headquarters about
receiving a tax break from a local government, or sat- outsourcing the manufacture of a product. The unit head
isfying worker (or labor union) demands for adequate might attempt to analyze why the headquarters group
working conditions. really wants to outsource. Are they attempting to re-
In carrying out the negotiator role, it is helpful duce operating costs? Are they concerned mostly about
for leaders to recognize that ethics enter into negoti- increasing quality? Are they concerned mostly about en-
ations of every kind, such as not purposely deceiving hancing profits?
the counterpart. Two professors of ethics, Lily More Listening skills are essential for seeing the big
of the University of Notre Dame and Taya R. Cohen picture. Being the first to listen helps establish trust.
of Carnegie Mellon University, emphasize that moral Listening also involves paying attention to what the
character counts in negotiation. Among other desirable other side is saying. A person might begin a negotiat-
attributes, individuals with high levels of moral charac- ing session claiming to want a bigger share of the di-
ter tend to be fair and genuine when interacting with vision budget. Yet careful listening might indicate that
others, even when other people might take advantage the person is looking for the department to receive
of them.48 more respect and attention. The issue is therefore not
The link between negotiating and bargaining is that financial.
conflicts can be considered situations that call for ne- As shown in the example just presented, listening
gotiating and bargaining, or conferring with another helps the negotiator dig for information as to why
person to resolve a problem. When you are trying to the other side wants what it does.51 If the other side
negotiate a fair price for relocating an office, you are wants a bigger budget just to have more respect, there
simultaneously trying to resolve a conflict. At first, the are less expensive ways to grant respect than grant
demands of the two parties may seem incompatible, a bigger share of the budget. Perhaps the leader can
but through negotiation a salary may emerge that sat- give the person a classier job title, rename the depart-
isfies both parties. Here, we review a handful of negoti- ment, or appoint the person to head a task force. For
ating tactics a leader will find helpful. The approaches example, the head of marketing is renamed “chief
to negotiation presented here emphasize a strategy of brands,” and that person’s department, “brand
of integration or collaboration, with a philosophy of development.”
win–win. Negotiation specialist Gary Miller suggests that
making the first offer yourself can exert a strong pull
throughout the negation, referred to as an anchor-
Minimize Feeling or Looking Anxious
ing effect. 52 The first-offer approach can be compat-
During the Negotiation
ible with listening first because after making the first
Negotiation specialist and assistant professor Alison offer, the negotiator can listen carefully to the reac-
Wood Brooks, at the Harvard Business School, advises tions. So doing can lead to valuable tips for making a
us not to feel or look anxious during the negotiation final offer.
session. Experiments suggest that negotiators who feel
anxious tend to make weaker first offers, and are more
likely to exit negotiation early. Brooks recommends Begin with a Plausible Demand or Offer
that to minimizing being and looking anxious during Most people believe that compromise and allowing
negotiation, train, practice, and rehearse.49 Visualize room for negotiation include beginning with an ex-
how you will conduct yourself during the negotiation treme demand or offer. The theory is that the final
and practice making some of your key statements. For compromise will be closer to the true demand or of-
example, look into the mirror or talk into a video cam, fer than if the negotiation were opened more realis-
“We want you as a supplier, but your prices are 20 per- tically. But a plausible demand is better because it
cent more than we are willing to pay.” Role playing be- reflects good faith bargaining. An extreme demand
fore the negotiation is also an effective way of reducing or offer will often be perceived as insulting to the
anxiety. other side, leading to a possible exit from the negoti-
ation. Assume that the owner of a startup technology
Listen First to Investigate What company aspires to sell the company to a technology
the Other Side Wants giant for $15 million. If the big company representa-
An advanced negotiating technique is to begin by so- tive makes an initial offer of $1 million, the owner of
liciting the other person’s or group’s point of view. You the small firm might simply exit the negotiation in
can use this information to shape the objectives of the anger.
Also, if a third party has to resolve the conflict, a deal in writing. In the United States and Northern
plausible demand or offer will receive more sympathy Europe, summarizing the agreement in writing is
than an implausible one. For example, if a conflict goes standard practice. Yet this seemingly efficient prac-
to arbitration, the arbitrator is likely not to grant an tice can backfire in Africa or in Asia. A spoken agree-
outrageous demand such as $10 million in damages for ment is preferable in African and Asian countries,
software that failed. where relationships are more important than written
contracts. A Nigerian manager explained, “If the mo-
ment we come to an agreement, you pull out a con-
Focus on Interests, Not Positions
tract…I start to worry. Do you think I won’t follow
Rather than clinging to specific negotiating points, through? Are you trying to trap me?”54
one should keep overall interests in mind and try
to satisfy them. The true object of negotiation is to
satisfy the underlying interests of both sides. As pro- Use Facts More than Threats
fessional mediator John Heister explains, when you During negotiation both sides often become emotional,
focus on interests, all of the disputants get on the sometimes to the point of one party threatening the
same side of the table and say, “We have a problem other such as saying, “If you don’t change that feature
to solve. Based on our common interests, we need to on your website that you copied from us, I will sue you
find a solution that meets the needs of each of the so heavily that your company will go bankrupt.” It is a
stakeholders.”53 better negotiating tactic to stick with the facts, rather
Here is how the strategy works: Your manager asks than threatening the other side. In this example, “We
you to submit a proposal for increasing sales volume. want you to remove that feature because the legal in-
You see it as an important opportunity to link up with terpretation we received is that the feature is our intel-
another distributor. When you submit your ideas, lectual property.”
you learn that management wants to venture further Joseph Grenny, a social science writer, notes that peo-
into e-commerce, not to expand the dealer network. ple want psychological safety within a negotiating ses-
Instead of insisting on linking with another dealer, sion. You should therefore do everything you can to share
be flexible. Ask to be included in the decision mak- your understanding of the situation without triggering a
ing for additional involvement in e-commerce. You perception of hostility or malicious intent on your part.
will increase your sales volume (your true interest), One recommendation is to frame your statement as a
and you may enjoy such secondary benefits as having natural consequence, not planned revenge. Rather than
helped the company develop a stronger e-commerce threatening the other side in this example, you state, “I
presence. have an obligation to protect our company’s intellectual
property.”55
Be Sensitive to International Differences
in Negotiating Style Allow for Face Saving
A challenge facing the multicultural leader is how to While negotiating, it is important to recognize that you
negotiate successfully with people from other cul- might want to make another deal, another day, with the
tures. By sizing up what constitutes an effective ne- same party. As a result, you want to conduct yourself
gotiating style, the negotiator stands a reasonable in a dignified way and not attempt to maximize gain
chance of achieving a collaborative solution. A strik- for yourself and minimize gain for the other side. If the
ing difference between American negotiations and solution being proposed will cause a loss of face for any
those in many foreign cultures concerns time. Jap- party, the proposal on the table will most likely be re-
anese, Chinese, and Arab negotiators, for example, jected.56 Furthermore, if employees are allowed to save
are willing to spend many days negotiating a deal. face after dealing with a problem, they are more likely
Much of their negotiating activity seems to be cere- to perform well and report errors.
monial (including elaborate dining) and unrelated to Negotiating and bargaining, as with any other
the task. This often frustrates the “strictly business” leadership and management skill, require conceptual
American. knowledge and practice. Leadership Skill-Building
There are also many other differences in negoti- Exercise 12-3 gives you an opportunity to practice col-
ating styles and techniques across cultures. Consid- laboration, the most integrative form of negotiating
erable study and practice is therefore required to and bargaining, as well as conflict resolution. Practice
negotiate effectively in another culture. One of the in finding options for mutual gains is helpful for the
rules of thumb offered by cross-cultural specialist leader because negotiating is a high-impact part of
Erin Meyer is to be careful about putting the final the job.
The Minimum Wage Negotiation

One student plays the role of the Chair and CEO of a fast- workers were paid more their increased income would stimu-
food restaurant chain who is holding a negotiation session to- late the economy, and (4) the restaurant executives are highly
day with an employee group. About five students play the role paid. The CEO believes strongly in treating workers fairly but
of the representatives of the employees. The group is asking that a minimum wage of $16 per hour would force a loss of
for a $16 per hour minimum wage for all restaurant workers. jobs because of automation, and that many locations would
Among their reasons for the demand are that (1) a full-time have to close because of financial losses.
worker cannot support a family on the current minimum Regard this negotiation as an exercise in skill develop-
wage of $10.25 per hour, (2) many restaurant workers need ment, not an opportunity to take a political stance. Both sides
food stamps to supplement their income, (3) if the restaurant should attempt to put into action sensible negotiating tactics.
Reader’s Roadmap
We then studied techniques for developing teamwork, as well as motivation and coaching skills. After studying cre-
ativity and innovation as part of leadership, we focused on communication skills as they relate to leadership. Next, we
shift our study to direction setting at the organizational level: strategic leadership.
Summary
Open communication between company leaders An important use of social media is for the leader
and employees helps an organization overcome to build and maintain a professional network. The
problems and attain success. Effective communi- productive leader is more likely to focus on con-
cation skills contribute to inspirational leadership. tacts of relevance or density rather than superficial
Nonverbal skills are also important for leadership contacts. The strength-of-ties perspective explains
effectiveness. A major feature of communication the difference between strong and weak ties. The
by leaders is to rely on networks of contacts both relationships among the different actors in a net-
in-person and electronically. Without being con- work can be broadly classified into two major types:
nected to other people, it would be almost impossi- strong versus weak ties and direct versus indirect
ble for leaders to carry out their various roles. ties. Leaders make frequent use of group messaging
Developing networks of live interpersonal con- apps such as Slack, Microsoft Teams, and Google
tacts remains an essential method for a leader build- Workspace. Group chat is an important leadership
ing relationships, motivating others, and attaining communication network, allowing for connecting
collaboration. Face-to-face communication networks with several group members simultaneously.
allow for helpful conversations. Leadership networks Inspirational and powerful communication
include the peer, operational, personal, and strategic. helps leaders carry out their roles. Suggestions
for inspirational and powerful speaking and writ- Such rounds are effective for dealing with morale
ing include the following: (1) be credible; (2) gear problems.
your message to your listener including their Overcoming communication barriers created by
needs; (3) sell group members on the benefits of dealing with people from different cultures is an-
your suggestions; (4) use heavy-impact and emo- other leadership and management challenge. Guide-
tion-provoking words; (5) use anecdotes to commu- lines for overcoming cross-cultural barriers include
nicate meaning; (6) back up conclusions with data; the following: (1) be sensitive to the existence of
(7) minimize language errors, junk words, and vo- cross-cultural communication barriers; (2) chal-
calized pauses; (8) use business jargon in appropri- lenge your cultural assumptions; (3) show respect
ate doses; and (9) write crisp, clear memos, letters, for all workers; (4) use straightforward language,
and reports, including a front-loaded message. and speak slowly and clearly; (5) look for signs of
Using a power-oriented linguistic style is another misunderstanding when your language is not the lis-
way to communicate with inspiration and power. tener’s native language; (6) when appropriate, speak
The style includes a variety of techniques, such as in the language of the people from another culture;
downplaying uncertainty, emphasizing direct rather (7) observe cross-cultural differences in etiquette;
than indirect talks, and choosing an effective com- (8) do not be diverted by style, accent, grammar, or
munication frame. Leaders can also improve their personal appearance; (9) be sensitive to differences
communication skills by following the seven princi- in nonverbal communication; and (10) be attentive
ples of persuasion: liking, reciprocity, social proof, to individual differences in appearance.
consistency, authority, scarcity, and pre-suasion. Leaders and managers spend considerable time
(The latter refers to putting people in a receptive managing conflict, including conflict with outsiders.
mood.) Altercasting is a persuasion technique in Resolving conflict facilitates collaboration. Five major
which you characterize a person as a certain type, styles of conflict management are as follows: competi-
perhaps to encourage a desired behavior. tive, accommodative, sharing, collaborative (win–win),
Skill can also be developed in using nonverbal and avoidant. Each style is based on a combination of
communication that connotes power, being in con- satisfying one’s own concerns (assertiveness) and sat-
trol, forcefulness, and self-confidence. Among the isfying the concerns of others (cooperativeness). The
suggestions for nonverbal communication are to collaborative style of conflict management includes
stand erect; speak at a moderate pace with a loud, agreeing with the criticizer and apologizing. When re-
clear tone; and smile frequently in a relaxed man- solving conflict, people typically combine several of the
ner. A person’s external image also plays an import- five resolution styles to accomplish their purpose, such
ant part in communicating messages to others. as dominating and accommodating. Which modes of
Videoconferencing, including telepresence, conflict handling to use depends upon a number of
places heavy demands on nonverbal communica- variables such as the importance of the issue and the
tion. Videoconferences represent a powerful tool for relative power between the parties.
far-flung managers to make a name for themselves A high-level managerial skill is to help two or
at corporate headquarters. The camera magnifies more group members resolve conflict between or
small nonverbal communication errors, such as among them. The most useful approach is to get
scratching your head. the parties in conflict to engage in confrontation
Listening is a fundamental management and and problem solving. An effective technique is for
leadership skill. Three impediments for the leaders the leader to ask each side to restate what the other
who want to listen well are (1) leaders are already person said.
overloaded, (2) people can listen to more words per Conflicts can be considered situations calling
minute than others can speak, and (3) the leader for negotiating and bargaining. Specific negotiating
multitasking while listening. techniques include the following: (1) minimize feel-
A foundation tactic for a leader to become an ef- ing or looking anxious during the negotiation; (2) lis-
fective listener is to show respect for others. Lead- ten first to investigate what the other side wants;
ers have to be careful about listening selectively. (3) begin with a plausible demand or offer; (4) focus
A robust communication channel for the leader/ on interests, not positions; (5) be sensitive to inter-
manager is to engage in face-to-face communi- national differences in negotiating style; (6) use facts
cation with direct reports by making the rounds. more than threats; and (7) allow for face saving.
Key Terms
linguistic style 316 making the rounds 320 win–win approach to conflict
altercasting 317 resolution 325
A subtle part of being an effective communicator— no comment of your own. Such behavior implies
including be a good listener—is to avoid language that you either don’t care or are denying the reality
that discourages another person from expressing an of what the person is saying. (Again, this is behav-
opinion, or worse, silences the person. At times you ior an effective leader should avoid because it may
may feel like telling a subordinate not to express a block valuable input.)
negative opinion. However, in the long run, silenc- A basic principle of negotiation, “Be hard on
ing your team will backfire because you will lose the problem, and soft on the on the person” applies
valuable input. Here are three examples of state- equally well to other types of conflict resolution be-
ments leaders and managers frequently use that cause it diminishes anger and a desire for revenge.
clamp down on communication: “I already know “Being hard on the problem” refers to working dil-
that,” “Why would you want to change that? It’s not igently on dealing with the problem. “Being soft on
broken,” and, “Well, it’s my decision and I say no.”57 the person” refers to not attacking the other side be-
Another technique for curtailing communica- cause they disagree with you.
tion is to react to a comment with a blank stare and
Discussion Questions and Activities 7. What concrete steps can a leader take to demon-
1. Now that you have studied this chapter, what are strate respect for a group member from another
you going to do differently to improve your com- culture?
munication effectiveness as a leader? 8. Assume that during a meeting, a middle manager
2. How could a person find out early in their career is told by a subordinate that the former is not fit
if their communication skills were good enough to for the position and should resign. What approach
become a successful leader? do you recommend that the leader take to resolve
3. In the United States, a person who has an English this conflict?
(UK) accent is often at advantage to obtain a lead- 9. Perhaps by consulting a person in your network,
ership position. What is your opinion of the ethics provide two examples of a situation facing a leader
of a person developing such an accent in order to that requires negotiation.
get promoted? 10. Think of any business leader you admire, and
4. What do you see as a potential downside to using a then go to YouTube to find a video of that leader
power-oriented linguistic style? talking. (You may need to try a few business
5. In what ways does being good at public speaking leaders to find one featured on YouTube.) What
enhance a leader’s effectiveness? do you think of that executive’s communication
6. As you review the information about persuasive effectiveness?
communication, how might an introverted person
be a persuasive leader?
Dani the Front-Stabbing CEO clothing combination often looks like it was cho-
Dani is the CEO of Bellerose Exhibits and sen at random from your closet. What’s wrong
Events—an events planning firm that coordinates with you?’ Katrina replied, “Dani you are being
all aspects of events and professional meetings. a little harsh. I have been experiencing some per-
Among the many tasks Bellerose handles for cli- sonal problems during the last few months.”
ents are arranging meeting locations, providing The following Monday morning, Dani held a
for transportation, erecting and taking down ex- strategy meeting with her top management team.
hibitor booths, and supervising the installation of As she had alerted the team prior to the meeting,
technology for the events. At times Bellerose also she would be presenting a revised vision state-
organizes a theme for the event, such as pretend- ment. Before getting to the theme of the meeting,
ing that participants are superheroes or superher- Dani asked if there were any other key issues that
oines, or an emphasis on charitable giving. should be addressed. Lyndon, an events-planning
Dani has decided that a deterrent to Bellerose associate, said, “Dani, I am concerned about
is that she as well as other staff members are too the parking lot we all use. The snow-plowing is
gentle in their feedback to each other. Instead of poor, and there is a lot of debris scattered about.”
being totally honest with other about mistakes Cheryl, the chief finance officer, responded to
or errors in judgment, staff members tend to Lyndon in these terms: “Lyndon, you are being
be too polite and indirect in their feedback to small minded when you should be thinking big
each other. Dani has read that some firms have about the company vision.”
moved toward front-stabbing, or complete can- Dani later presented her new vision for Bel-
dor in discussing problems directly with people. lerose, as follows: “Within five years we will
She decides to initiate a process of her as well as become the world standard of excellence for
other staff members being more open in bringing designing and executing events to a wide va-
problems to each other’s attention. Her approach riety of organizations. The events we plan will
was to send an email to all Bellerose workers to take our clients to new heights of organizational
launch the front-stabbing initiative. performance.”
The day after announcing the initiative, Karl, the chief technology officer, responded
Brock, an exhibits designer, asked Dani what to Dani’s vision in this manner: “Dani, have
she thought of the neon sign he used to deco- you been smoking medical marijuana? Are you
rate a client’s booth. Dani replied, “The neon creating a sensible vision for us, or are you
sign might work as a design to help build a retro hallucinating?”
image. But your sign was just a distraction for a As the meeting disbanded one hour later,
company that wanted to publicize its food sup- Dani thought, “Has my front-stabbing initiative
plements.” Brock replied, “Was my neon sign re- gone too far. Am I being nasty with my staff, and
ally that bad?” are they being nasty with each other?”
The next morning Katrina, Dani’s admin-
istrative assistant, dropped by her cubicle to Questions
review a few items on the budget. Dani said, “Be- 1. How helpful does the new candid feedback at
fore we get started on these budget items, I have Bellerose appear to be?
an observation to share with you. Your appear- 2. What suggestions might you make to Dani
ance has deteriorated recently. Your hair is often and her staff so that candid feedback to each
messy, you have bags under your eyes, and your other does not trigger interpersonal conflict?

Two students play the role of Bellerose staff members. highly candid statement. Students providing feedback
Each role player decides now is the time to engage will look to see if the front-stabbing comments have
in front-stabbing the ideas of each other. Each role any constructive value.
player reacts to a work-related idea of the other with a
Struggling for Conference Room Space posts directed at me and other department
Bradley is the vice president of administrative heads. We spend far too much time fighting
services and human resources at Broadview about conference-room space. We are wast-
Travel, a national travel agency serving corpora- ing a lot of time that should be spent serving
tions and large government agencies. Although customers.”
online booking has replaced most travel agen- Asked what Broadview Travel has done so far
cies, Broadview has found a niche in organiz- to deal with the meeting-room shortage, Bradley
ing travel for business meetings and controlling said, “We are using online calendars to allocate
travel costs. Bradley is facing a bothersome space, but the results can be ugly. Some group
problem related to internal conferences. gets scheduled for a Monday 7:30 meeting,
“Like so many of our clients,” says Bradley, which doesn’t go over very well. Neither does
“we have a small amount of office space for our a meeting set for 4:45 on a Friday. Then you’ve
number of employees, particularly with respect got the problem of deception and trickery. A few
to the availability of conference rooms. Our peo- groups book space, just in case they might have
ple love to meet in person and thrash out prob- a meeting. It’s like booking a second airplane
lems and plan our next moves. We do conduct flight just in case there will not be space avail-
some virtual meetings, but there is still a high able with one carrier.
demand for in-person meetings.” “I asked the CEO if he would consider keep-
Asked what specific problems the shortage ing a trailer in the parking lot for meetings,
of conference-room space created, Bradley an- but he said it would look too crude for a travel
swered, “You wouldn’t believe it. You should see agency. Whatever we decide to do, my job is to
those angry faces. One group is in the conference reduce some of this time-wasting and stressful
room running a little late, and the next group is conflict.”
knocking on the door or trying to barge into the Questions
meeting and take over the space. Some of our
1. How can conflict about conference rooms ex-
people conduct their meetings at a Starbucks,
ist in this age of high technology?
McDonald’s, or Dunkin’ Donuts. We have found
2. How should Bradley go about resolving the
small groups of people conducting brief meetings
conflicts mentioned in this case?
in the building lobby, or even under a stairwell.
3. What’s wrong with company employees meet-
“When one group can’t find a place to meet,
ing at a nearby coffee shop or restaurant?
we get all sorts of angry emails and intranet

One student plays the role of Bradley who decides to roles of the department heads who are angry about
hold a dinner meeting at 5:30 p.m. in a private room at the conference room struggle. Observers will provide
a restaurant one block away from Broadview. He ad- feedback about how much progress the five people
vises the four department heads who will attend the have made toward resolving the conflict about confer-
meeting that before dinner they will discuss the con- ence-room space.
ference space problem. Four other students play the
The Emotionally Intelligent Negotiator

Your assignment is to make emotionally intelligent re- What would be your emotionally intelligent response to the
sponses to the incidents that take place during a negotiation criticism your company has received?
as presented in the following scenarios.
Scenario C: The Recent Recipient of a Kidney
Scenario A: Hot Coffee on the Lap Transplant
You are ten minutes into a negotiation about cost-of-living You are the key representative of a company that makes plas-
adjustments. While walking near you, a negotiator from the tic straws. Today, you are meeting with several representatives
other side happens to stumble, and accidently spills an en- of a major fast-food company to negotiate the price of your
tire cup of hot coffee on your lap. The incident displeases company shifting from plastic straws to another material such
you intensely, and you feel compelled to say something. as biodegradable paper. The lead negotiator from the restau-
What would be your emotionally intelligent response to the rant chain opens the session with this comment: “I may look
hot coffee spilled on your lap? a little fatigued today because I had a kidney transplant two
Scenario B: An Insult to Your Company weeks ago. But I’m feeling much better.” You feel compassion
As the representative of your building custodial services for the person, but you think their medical problem should
company, you are negotiating a new multi-building contract. not influence negotiations. Make an emotionally intelligent re-
As the negotiations get underway, your counterpart says, sponse to the negotiator with the recent kidney transplant.
“I’ll be upfront about this. Your company has a reputation of As time permits, compare your emotionally intelligent
promising great service, but then you often follow through responses to the above scenarios with several classmates.
with sloppy work. Sometimes a cleaning crew does not even Look for any possible patterns in the emotionally intelligent
show up.” You feel strongly that you have received an invalid responses. Did you find any responses that you would clas-
criticism, and you still want to negotiate a favorable contract. sify as emotionally unintelligent?
For this chapter’s entry into your leadership portfolio, think and distracted. Instead of telling Rick to go home, I
through how you have dealt with your opportunities to com- took him aside in the office. I asked him to give me
municate as a leader in your experiences. Did you have an a full explanation of whatever problem he was fac-
opportunity to attempt to persuade an individual or group? ing. We both sat down, and I poured Rick a cup of
Did you have an opportunity to be supportive toward an- coffee. After a minute or so, Rick opened up to tell
other person? Did you have an opportunity to make a me about how he rammed the back of his car into a
presentation on the job or in class? During these commu- two-foot-high guardrail in a parking lot. His fiberglass
nication opportunities, how well did you come across as a bumper split, and he figures it will cost him $950 to
leader? Did you impress anybody with persuasive skill or replace it. I listened to his whole story without being
warmth? Carlos, an assistant restaurant manager, made this judgmental. I said I would check with the manager
entry in his portfolio: to see if we could give him extra hours this month
I help manage an upscale restaurant. The wait staff to earn more money to apply toward his repair. Rick
has to be on top of its game when in the dining room. said, “Thanks for listening,” and he left our one-on-
Without superior service, nobody is going to pay our one session feeling better and looking well enough to
prices, even if the food and wine are good. Late one face the guests.
afternoon, Rick dragged in, looking in no shape to I give myself a gold star for having been a supportive
give good service to our guests. He looked worried leader. Ha! Ha!
Evaluating the Communication Skills of an Organizational Leader

So much has been said about the importance of good com- In preparing your evaluation, look for such factors as
munication skills for an effective leader. Your assignment is persuasiveness, adequate grammar and sentence struc-
to observe a specific organizational leader of your choice, ture, and ability to establish rapport with the receiver of the
such as a business executive. Methods of observing an or- message.
ganizational leader include (1) a live or video replay interview A side aspect of this assignment is to observe the ex-
of an executive on a television news channel, (2) finding a ecutive’s communication skills with the intent of picking
brief executive presentation on YouTube or Hulu, and (3) at- up an idea or two to improve your own communication
tending a function in which an executive is either giving a effectiveness.
talk or interacting with visitors.
Notes
1. Original story based on facts and observations in 7. Study cited in Jared Lindzon, “Communicating
the following sources: Lippe Taylor, “Southwest In-Person at Work Isn’t Dead Yet, Says Gen Z,” Fast
Airlines CCO Linda Rutherford on Living Your Company (www.fastcompany.com), September 7,
Brand Purpose During Volatile Times,” PRovoke 2016, pp. 1–6.
Media (www.provokemedia.com) August 25, 2020, 8. Bruce Hoppe and Claire Reinelt, “Social Network
pp. 1–16: Carmine Gallo, “Southwest Airlines Mo- Analysis,” p. 601.
tivates Its Employees with a Purpose Bigger than 9. Networks three, four, and five are from Herminia
a Paycheck,” Forbes (www.forbes.com), January Ibarra and Mark Hunter, “How Leaders Create and
21, 2014, pp. 1–3; Kevin J. Allen, “Focus on Com- Use Networks,” Harvard Business Review, Janu-
munication Fuels Southwest Airlines,” Health Care ary 2007, pp. 40–47.
Communication News (www.healthcarecommuni- 10. Mark Granovetter, “The Strength of Weak Ties: A
cation.com), November 11, 2007, pp. 1–2; Natasha Network Theory Revisited,” Sociological Theory,
Bach, “How Brands such as Southwest Airlines and vol. 1, 1983, pp. 201–233.
Blue Shield of California are Making Sure they’re 11. This section is based on Andrew Heinzman, “The
Getting through to Employees at Home.” PR Week 6 Best Group Chat Apps for Teams, Coworkers, or
(www.prweek.com), May 4, 2021, p. 1. Friends,” www.reviewgeek.com, March 25, 2020, pp.
2. John Hamm, “The Five Messages Leaders Must Man- 1–4; Suzanne Oliver, “Slack, Zoom, or Gmail: How
age,” Harvard Business Review, May 2006, p. 116. to Pick the Right Communications Tool,” The Wall
3. Dori Meinert, “Mixed Messages: Are Poor Commu- Street Journal, March 10, 2021, p. R9; Christopher
nication Skills Holding You Back?” HR Magazine, Mims, “Chat Emerges as the Hottest Thing in
Spring 2019, p. 18. IT,” The Wall Street Journal, November 7, 2016,
4. Bruce Hoppe and Claire Reinelt, “Social Network pp. B1, B5.
Analysis and the Evaluation of Leadership Net- 12. Carmine Gallo, “The Secret to Great Communica-
works,” The Leadership Quarterly, August 2010, tion: Be Like Aristotle,” Knowledge @ Wharton (http://
p. 600. knowledge.wharton.upenn.edu), September 18,
5. Dorothy R. Carter, Leslie A. DeChurch, Michael T. 2020, p. 2.
Braun, and Noshir S. Contractor, “Social Network 13. Carlin Flora, “The Art of Influence,” Psychology
Approaches to Leadership: An Integrative Concep- Today, September/October 2011, p. 67.
tual Review,” Journal of Applied Psychology, May 14. Stephen P. Robbins and Phillip L. Hunsaker,
2015, pp. 597–622. Training in Interpersonal Skills: Tips for Managing
6. Boris Groysberg and Michael Slind, “Leadership People at Work (Upper Saddle River, NJ: Prentice
Is a Conversation,” Harvard Business Review, June Hall, 1996), p. 115. (These findings are still valid
2012, p. 79. today.)
Notes 337
15. Joel Schwartzberg, “Find the Right Words to In- 30. Niels Van Quaquebeke and Will Felps, “Respect-
spire Your Team,” Harvard Business Review (https:// ful Inquiry: A Motivational Account of Lead-
hbr.org), April 13, 2021, p. 2. ing Through Asking Questions and Listening,”
16. Gallo, “The Secret to Great Communication.” p. 4. Academy of Management Review, January 2018,
17. Michael Thompson, “9 Phrases That Will Make pp. 5–27.
You More Persuasive,” www.ladders.com, May 20, 31. Bernard T. Ferran, “The Executive’s Guide to
2020, pp. 1–8. Better Listening,” McKinsey Quarterly (www
18. Matthew Impelli, “France Bans Gender-Neutral .mckinseyquarterly.com), February 2012, p. 2.
Language in Schools, Citing ‘Harm’ to Learning,” 32. Jack Zenger and Joseph Folkman, “What Great
Newsweek (www.newsweek.com), May 10, 2021, Listeners Actually Do,” Harvard Business Review
pp. 1–4. (https://hbr.org), July 14, 2016, p. 3.
19. “Which Buzzwords Would You Ban?” The Wall 33. Erika H. James, “Selective Hearing Can Lead to a
Street Journal, January 2, 2014, p. B4. Blind Eye,” The Darden Perspective in First Person,
20. Sherry Sweetham, “How to Organize Your published in The Wall Street Journal, December 4,
Thoughts for Better Communication,” Personnel, 2007, p. A16.
March 1986, p. 39. 34. Linda Dulye, “Get Out of Your Office,” HR Maga-
21. Deborah Tannen, “The Power of Talk: Who Gets zine, July 2006, pp. 99–100; “Making Rounds’ Like
Heard and Why?” Harvard Business Review, a Physician,” Manager’s Edge, February 2006, p. 8.
September–October 1995, pp. 138–148. 35. Gunnar Beeth, “Multicultural Managers Wanted,”
22. Deborah Tannen, “The Power of Talk: Who Gets Management Review, May 1997, p. 17.
Heard and Why?” pp. 138–148; Without Backped- 36. “When English Is Not Their Native Tongue,”
aling, Qualifying,” Working Smart, March 2000, Manager’s Edge, April 2003, p. 5.
p. 2; Joel Stein, “Could You Explain It Less Clearly?” 37. Kathryn Kranhold, “Lost in Translation,” The Wall
Bloomberg Businessweek, July 21–27, 2014, p. 63. Street Journal, May 18, 2004, p. B1.
23. Robert B. Cialdini, “Harnessing the Science of Per- 38. Siri Carpenter, “Why Do ‘They All Look Alike’?”
suasion,” Harvard Business Review, October 2001, Monitor on Psychology, December 2000, p. 44.
pp. 72–79. 39. Jeff Weiss and Jonathan Hughes, “Want Collabo-
24. Robert H. Cialdini, Pre-suasion: A Revolutionary ration? Accept—and Actively Manage—Conflict,”
Way to Influence and Persuade (New York: Simon & Harvard Business Review, March 2005, pp. 92–101.
Schuster, 2016). 40. “How You Can Use Conflict to Build a Better
25. Robert B. Cialdini, “Harnessing the Science of Per- Team,” Knowledge@Wharton (http://knowledge
suasion,” p. 79. .wharton.upenn.edu), January 6, 2019, p. 2.
26. Elizabeth Bernstein, “If You Want to Persuade 41. Kenneth Thomas, “Conflict and Conflict Manage-
People, Try ‘Altercasting’,” The Wall Street Journal, ment,” in Marvin D. Dunnette, ed., Handbook of
September 6, 2016, p. D1; “Altercasting” Changing Industrial and Organizational Psychology (Chicago,
Minds (www.changiningminds.org), p. 1. Retrieved IL: Rand McNally, 1976), pp. 900–922.
November 19, 2016. 42. Barbara Kellerman, “When Should a Leader Apol-
27. Several of the suggestions here are from Sue Shel- ogize and When Not?” Harvard Business Review,
lenbarger, “Strike a Powerful Pose: Posture Can April 2006, pp. 72–81.
Determine Who’s a Hero, Who’s a Wimp; Bad 43. Elizabeth A. Mannix, Leigh L. Thompson, and Max
News for Phone Users,” The Wall Street Journal, H. Bazerman, “Negotiation in Small Groups,” Jour-
August 21, 2013, pp. D1, D2; Shellenbarger, “Just nal of Applied Psychology, June 1989, pp. 508–517.
Look Me in the Eye Already,” The Wall Street Jour- 44. Ginka Toegel and Jean-Louis Barsoux, “How to
nal, May 29,2013, p. D1; Body Language for Busi- Preempt Team Conflict,” Harvard Business Review,
ness Success (New York: National Institute for June 2016, pp. 78–83.
Business Management, 1989), pp. 2–29; Andy 45. Deb Levine, “Solutions: Advice from HR Knowl-
Yap et al., “The Ergonomics of Dishonesty: The edge Advisers,” HR Magazine, October 2013, p. 18.
Effects of Incidental Posture on Stealing, Cheat- 46. Tamara Lytle, “Confronting Conflict,” HR Magazine,
ing, and Traffic Violations,” Psychological Science, July/August 2015, p. 29.
November 2013, pp. 2281–2289. 47. Patrick S. Nugent, “Managing Conflict: Third-
28. Bradley Hope, “Friedman to Be Nasdaq Operating Party Interventions for Managers,” Academy of
Chief,” The Wall Street Journal, December 16, 2015, Management Executive, February 2002, p. 152.
p. C4. 48. Lily Morse and Taya R. Cohen, “Moral Character in
29. “A Conversation with Bill Kanarick: The Art of Negotiation,” Academy of Management Perspectives,
Asking Questions,” Executive Leadership, January February 2019, pp. 12–25.
2014, p. 3.
49. Alison Wood Brooks, “Emotion and the Art of 54. Erin Meyer, “Getting to Sí, Ja, Oui, Hai, and
Negotiation,” Harvard Business Review, December Da,” Harvard Business Review, December 2015,
2015, pp. 59–60. pp. 74–75.
50. Jeff Weiss, Aram Donigian, and Jonathan Hughes, 55. Joseph Grenny, “How to Deal with the Irrational
“Extreme Negotiations,” Harvard Business Review, Parts of a Negotiation,” Harvard Business Review
November 2010, pp. 68–69. (https://hbr.org), June 6, 2016, pp. 1–6.
51. Deepak Malhotra and Max H. Bazerman, “Investi- 56. Joshua N. Weiss, “To Succeed in a Negotiation,
gative Negotiation,” Harvard Business Review, Sep- Help Your Counterpart Save Face,” Harvard Busi-
tember 2007, pp. 72–78. ness Review (https://hbr.org), October 2, 2020, p. 4.
52. Gary Miller, “When to Make the First offer in Ne- 57. Avoid Language That Shuts People Up,” Executive
gotiations,” www.denverpost.com, July 17, 2016, Leadership, January 2008, p. 8.
pp. 1–4.
53. John Heister, “Collaborate to Solve Societal Ills,”
Rochester, New York, Democrat and Chronicle, May 14,
2004, p. 18A.
13
Chapter
Strategic Leadership and

Knowledge Management
Learning Objectives
After studying this chapter and doing the exercises, you 13.3 Paraphrase how to use the SWOT model to assist in
should be able to strategic planning.
13.1 Articulate the relevance of organizational agility for 13.4 Enumerate a number of current business strategies.
business strategy and knowledge management. 13.5 Discuss how leaders contribute to the management of
13.2 Describe the development of business strategy. knowledge and the learning organization.
Chapter Outline
Organizational Agility, Business Strategy, and Knowledge Knowledge Management and the Learning Organization
Management Knowledge Sharing
The Development of Business Strategy Knowledge Management
The Importance of Strategic Thinking Servant Leadership and the Creation of Knowledge
Maintaining a Human and Emotional Aspect The Learning Organization
Gathering Multiple Inputs to Formulate Strategy Summary
Leadership Effectiveness and Strategy Implementation Key Terms
The Contribution of Artificial Intelligence (AI) to Business Guidelines for Action and Skill Development
Strategy Leadership Case Problem A
Conducting a SWOT Analysis Leadership Case Problem B
A Sampling of Business Strategies Formulated Notes
by Leaders
R
ima Qureshi is executive vice president and chief the chief strategy officer and head of mergers and acquisitions
strategy officer for Verizon Communications. Her major at Ericsson. She has considerable experience in successfully
responsibilities are to develop and implement Verizon’s managing different business functions. Among them are sales,
overall corporate strategy, business development, partnerships, product management, operations, and research and development.
strategic investments, and acquisitions. Qureshi has more than Qureshi also has extensive experience in acquisitions and
thirty years of leadership experience in the mobile communications integration of business units.
industry, including more than fifteen years of global experience. As chief strategy officer, Qureshi’s mission is to find ways to
Before joining Verizon in November 2017, Qureshi was pres move beyond basic connectivity. She leads a team charged with
ident and CEO of Ericsson North America. She was previously being “as creative and off the wall as possible” while remaining
339
340 Chapter 13 • Strategic Leadership and Knowledge Management
focused on creating products that can be commercially Qureshi said that the coronavirus pandemic increased the
successful. She tells her team, “I don’t want you to come up with need to improve digital inclusion. She noted that the Edison
demos. I want products.” Qureshi grills team members monthly Alliance, a group within the World Economic Forum (WEF), offers
on the financial viability of products and services. The drive to the opportunity to “look at how we create that basic capability
monetize ideas has led to forming partnerships with technology to bring as many people as possible over the digital divide and
giants including Amazon.com and Microsoft Corporation. Among then address the specific verticals that we believe are going to
the results have been creating new business-use cases for benefit society as a whole.” (A vertical in this sense is a business
connected products like robots and drones, and finding revenue niche where vendors service a specific audience and their set
models that capitalize on 5G. of needs.) The target areas were financial inclusion, healthcare,
Billions of dollars are at stake in Qureshi’s efforts because and education. Qureshi said that 5G could play a major role in
Verizon had budgeted for more than $50 billion paid to the addressing these sectors. Two examples are more immersive
federal government for airwaves and related expenses. The educational experiences and remote medical interventions.
company also planned to invest another $10 billion to expand its Qureshi is a passionate advocate of diversity and inclusion
mid-band range. A strategic decision Qureshi faced in relation in the workplace. Her strategic perspective is that chairpersons
to the Verizon expansion was whether to enlarge its own cloud and CEOs need certain attributes to truly leverage the power of
capability. She concluded, “Does it make sense to go in and diversity. “Leaders need self-awareness, a willingness to listen,
develop against the experts in the field?” Qureshi decided and an ability to be challenged and to accept and process
that joining with large, well-established cloud providers was different points of view. That’s not always easy.”
a quicker way to begin generating revenue and making edge Qureshi’s family moved from Pakistan to Canada. She
computing to use for business clients. (Edge computing is when holds both a B.S. degree in information systems and an M.B.A.
information processing is located closer to the edge—where from McGill University in Montreal, Quebec. She is fluent in both
things and people produce or consume the information.) English and French. Qureshi is a board member of MasterCard
Thinking the big picture, Qureshi said that the airways Incorporated and GSNMA, the global telecom industry
Verizon secured are the ‘rocket fuel’ for new projects. “It’s really association.1
a question of what you can imagine and that’s the fun of it.”
The story about the Verizon executive illustrates the

importance a business corporation places on strate- Organizational Agility, Business
gic thinking and strategic leadership. A key leadership Strategy, and Knowledge Management
role is to form a strategy, the organization’s plan for
achieving its vision, mission, and goals. For our pur- Learning Objective 13.1 Articulate the relevance of
poses, strategic leadership is the process of providing organizational agility for business strategy and knowledge
the direction and inspiration necessary to create or sus- management.
tain an organization.
In this chapter we approach strategic leadership A recent emphasis in understanding how organiza-
by emphasizing the leader’s role rather than present- tions adapt to their environment concerns flexibility
ing extensive information about business strategy and or agility, the ability to quickly reorient the organiza-
the analytics that support strategy and strategic plan- tion to capitalize on valuable opportunities. Agility is
ning. To begin, we describe briefly how being an agile an organizational model designed for the age of high
organization is linked to both strategy and knowledge technology, and offers a future without major restruc-
management. We then describe the development of turings. An agile leadership team helps the company
business strategy including a frequently used tool for adapt to the environment without creating major
development strategy, SWOT analysis. Next is a de- upheavals. The leaders strike the optimum balance
scription of the strategies that leaders most frequently between standardizing operations and pursuing a rea-
use to bring about success. Following that is a descrip- sonable number of innovations. For example, leader-
tion of a leader’s contribution to an important thrust ship at Stanley Black & Decker has been able to adapt
in strategy, knowledge management, and developing a to technology changes in its line of tools without re-
learning organization. structuring the company.
The Development of Business Strategy 341
Humility helps a leader stay agile because humble approach to attaining this purpose would be to install
leaders listen carefully to a wide range of input, know- a company facility in a low-income neighborhood, and
ing that good ideas can come from anywhere. Rima hire local residents. Another approach would be for a
Qureshi at Verizon was humble enough to recognize company to partner with a few community colleges and
that it made more sense for the company to form al- career schools to train people from low-income families
liances with cloud service providers than for the com- for well-paying skilled-trade positions.
pany to develop its own services. After the firm’s purpose is established, the leader
Agile ways of working can improve organizational also becomes the steward of the strategy. Mintzberg ar-
performance, reduce risks, and create flexibility. One gues that if you want good strategy, skip all the elabo-
reason is that an agile organization enables teams to rate planning and just focus on having a great vision.5
test and validate ideas before the business commits to Planning alone does not create strategy because
developing the idea into a product or service. strategy can also stem from inspired thinking. Corpo-
One of the notable characteristics of an agile organi- rate values also influence strategy because well-man-
zation is that leadership agrees on a small, well-defined aged organizations tend to develop strategy to fit what
set of priorities, ideally a maximum of ten. Business the people in power think is important. If the company
units receive extra funding if their main initiatives sup- highly values innovation, it will not adopt a strategy of
port the main strategic priorities. In turn the business being successful by imitating other successful prod-
units assign more funding to teams whose work contrib- ucts. Piaget, for example, has remained successful for
utes directly to the strategic priorities. An example of this more than 200 years by staying with its own high-qual-
approach is that a North American provider of financial ity watches, and not imitating other trends in the watch
and software services chose to identify a maximum of industry.
five strategic priorities to pursue every year. Company While strategy often stems from planning, many
leadership also set clear, measurable goals that could be business leaders choose a strategy prior to strategic
used in quarterly reviews of how well the company was planning. Once the firm has the strategy, a plan is devel-
progressing toward its strategic priorities.2 oped to implement it. A chief executive might say, “Let’s
Organizational agility is relevant for strategy be- compete by becoming the most recognizable company
cause company leaders search for strategies that en- in our field.” The executive team would then develop
able them to capitalize on opportunities. For example, specific plans to implement that strategy, rather than
a traditional automobile manufacturer might acquire strategic planning leading to the conclusion that brand
a startup maker of electric vehicles (EVs) to capitalize recognition would be an effective strategy. For many
on a growing demand for EVs. Organizational agility medium-sized and small organizations, it is strategy
is relevant for knowledge management because part of first, followed by plan.
organizational learning is the ability to spot opportuni- Our approach to understanding the development of
ties, and share knowledge that could facilitate spotting business strategy focuses on the importance of strate-
opportunities. gic thinking, the human and emotional aspect of strat-
egy, gathering multiple inputs to formulate strategy, the
implementation of strategy, and the SWOT analysis.
The Development The Importance of Strategic Thinking

of Business Strategy
Strategic planning, as well as setting the vision with-
Learning Objective 13.2 Describe the development of out the planning, shares an important purpose. It is to
business strategy. get managerial workers throughout the organization
thinking strategically and wondering about how the
Elaborate methods of planning are often used to help firm adapts to its environment and how it will cope
develop business strategy. The SWOT analysis presented with its future. One of the central challenges of modern
later is a basic planning tool. In the opinion of some organizations is for leaders at all levels of the firm to
management specialists, the best strategy emerges from think strategically—including seeing the overall picture
an organization having a grand purpose.3 The effective as they go about their work.6
leader, and often the founder, sets the purpose of the Strategic thinking heavily emphasizes long-term
firm. Cola-Cola began this way, as did Apple Inc., and thinking. A business leader might want to make major
the Sloan Kettering Cancer Institute. The organization’s capital expenditures that will have a payoff in the long
purpose might be part of corporate social responsibility, run, but reduce short-term earnings. Long-term strat-
such as attempting to reduce income inequality.4 One egies can be difficult to implement when investors are
eager for short-term results. Tim Cook, the CEO of Ap- that as part of its strategy, the company will continue
ple Inc., has sometimes frustrated Wall Street investors to pursue improbable projects that will require enor-
because he pushes for a long-term strategic perspec- mous amounts of cash and great leaps of faith. Among
tive. At one point a few years ago, he ended the compa- these moon shots are self-driving cars, antiaging drugs,
ny’s practice of reporting sales numbers for individual and computerized glucose-sensing contact lenses for
units, saying that a 90-day performance is not a good diabetics.8
proxy for the strength of a product line.7 A study of 231 upper-level leaders in a large global
A strategically minded worker at any level would company found that global work experience was asso-
think, “How does what I am doing right now support ciated with a stronger tendency to think strategically.
corporate strategy?” The customer care center worker The effect was more pronounced when the experience
at Hewlett Packard Enterprises might think, “Each was in a culture distant from one’s own, such as an
time I help a customer solve a problem I am contrib- American being on assignment in Japan.9
uting to the strategy of having the highest quality prod- Because effective strategy begins with strategic
ucts in all the markets we serve.” thinking, you are invited to think through your ten-
An example of high-level strategic thinking is the dencies toward being a strategic thinker by taking the
company leadership at Google saying it will continue Leadership Self-assessment Quiz 13-1 to explore your
“pursuing moon shots.” The phrases refer to the idea orientation toward thinking strategically.
Are You a Strategic Thinker?

Instructions: Indicate your strength of agreement with each of the following statements: SD = strongly disagree;
D = disagree; N = neutral; A = agree; SA = strongly agree.
SD D N A SA
1. Every action I take on my job should add value for our cus- 1 2 3 4 5
tomers, our clients, or the public.
2. Let company leadership ponder the future; I have my own 5 4 3 2 1
job to get done.
3. Strategic thinking is fluff. Somebody down the organization 5 4 3 2 1
has to get the job done.
4. A company cannot become great without an exciting vision. 1 2 3 4 5
5. What I do on the job each day can affect the performance of 1 2 3 4 5
the company many years into the future.
6. It is rather pointless to develop skills or acquire knowledge 5 4 3 2 1
that cannot help you on the job within the next month.
7. Strategic planning should be carried out in a separate depart- 5 4 3 2 1
ment rather than involve people throughout the organization.
8. It makes good sense for top management to frequently ask 1 2 3 4 5
itself the question, “What business are we really in?”
9. If a company does an outstanding job of satisfying its cus- 5 4 3 2 1
tomers, there is little need to worry about changing its mix of
goods or services.
(continued)
Quiz5-3
13-1 (continued)
SD D N A SA
10. Organizational visions remind me of pipe dreams and 5 4 3 2 1

hallucinations.
11. I like the idea of an organization sending a group of manag- 1 2 3 4 5
ers and professionals to an off-site strategy development ses-
sion every couple of years or so.
12. Strategy formulation is a bureaucratic exercise that usually 5 4 3 2 1
gets the organization nowhere.
Scoring and Interpretation: Find your total score by summing the point values for each question. A score of 52–60 suggests
that you already think strategically, which should help you provide strategic leadership to others. Scores of 30–51 suggest
a somewhat neutral, detached attitude toward thinking strategically. Scores of 12–29 suggest thinking that emphasizes the
here and now and the short term. People scoring in this category are not yet ready to provide strategic leadership to group
members.
Skill Development: Reflecting on your ability to think strategically is useful because leaders at all levels are expected to see
the big picture and point people in a useful direction.
Maintaining a Human and Emotional Aspect functional home furnishing products at prices so low
that as many people as possible can afford them.”11
As implied by the creative component to strategy, strate-
Typically, the purpose comes from intuition rather than
gic leaders rely heavily on intuition as to what direction
extensive analysis.
the organization should take. Cynthia Montgomery, a
Strategy professor Adam Brandenburger, at the
strategy professor and former head of the Strategy Unit
New York University Stern School, emphasizes that
at Harvard Business School, says that many executives
analytic tools are effective at helping strategic leaders
have lost the leadership and the human dimension of
develop business ideas that are close at hand. Yet these
strategy. She believes that strategy has become too ana-
tools are less effective at developing transformative
lytical, a must-do instead of a want-to-do. To make strat-
strategies. An example of transformative thinking by a
egy more personal, leaders should answer the questions:
business leader is how Elon Musk at Tesla spearheaded
“Does your company matter? What is your company add-
a new way to sell its electric cars.
ing to what already exists in the market?”
Tesla had the financial resources to enter the automo-
To illustrate the human touch in strategy, Montgom-
bile market, but it lacked a dealer network for selling its
ery gives the example of Gucci. The brand had become
vehicles. The dealership network was considered a key
trashed and of low value because the name appeared on
part of automakers’ business model. Rather than build
22,000 products, including cigarette lighters and tennis
a dealer network, Tesla chose to sell its vehicles online
balls. A new chief executive officer (CEO) revamped the
and build Apple-like stores staffed with salaried sales
Gucci strategy. He decided the brand should be sexy, at
representatives. In this way Tesla has avoided its electric
the leading edge of fashion, and a good value. The orig-
cars competing with gas-powered vehicles at traditional
inal Gucci market niche was high-fashion appealing to
dealers.12 (Note that his transformative idea has also
an older audience. The new CEO turned the company
triggered conflict with automobile dealers’ associations
around to meet the new strategy, leading to survival
and many local regulations designed to protect traditional
and good profits.10
automobile dealers.)
Purpose was mentioned above in relation the devel-
opment of business strategy, and purpose is also key to
maintaining a human and emotional aspect to strategy.
Gathering Multiple Inputs
Most great companies start with great purposes formu- to Formulate Strategy
lated by the founder. A sterling example is IKEA’s in- Many strategic leaders arrive at their ideas for the or-
tent to offer customers “a wide range of well-designed, ganization’s future by consulting with a wide range of
interested parties, in a process similar to conducting relationships that could be useful in formulating strat-
research to create a vision. Customers are a natural egy. Artificial intelligence (AI) is the ability of a
source of inputs for formulating strategy, often by sim- computer program or machine to think and learn in
ply asking them what new products, services, or fea- a manner that emulates human intelligence. The algo-
tures they would want. rithms produced by AI are sets of rules or procedures
In most business enterprises, authority for the most to solve a problem and guide decision making.
important strategic decisions is left to the highest paid One example of how AT and algorithms might as-
person’s opinion (HIPPO). (How is that for another sist in strategy is to study thousands of bank loans and
sample of giant-size business jargon?) The problem is repayment rates, and reveal if one type of borrower is
that HIPPOs are often wrong due to personal biases, a hidden risk for default. Even better, the algorithm
misinformation and other factors that can cloud one might uncover a surprisingly good but overlooked lend-
executive’s opinion.13 The solution to this problem is ing prospect.16 Using these data, the bank executive
gathering strategy inputs through crowdsourcing, the might develop a strategy for pursuing the overlooked
use of collective intelligence gathered from the public borrowing prospects.
for accomplishing tasks, often by the use of social me- Strategy deals with the future, making forecast-
dia. One reason for gathering data for strategy formu- ing helpful in developing strategy. AI is often helpful
lation through crowdsourcing is to pull in diverse and in forecasting. AI plays a major role in quantitative
end-user perspectives that are typically overlooked but approaches to forecasting by providing data about
potentially useful. A second reason is to build enthu- associations among possibly thousands of facts and
siasm and alignment behind a company’s strategic di- observations. Hernân Orsey, the chief data officer
rection. The people whose opinions are solicited might at Salesforce, says that the human and technologi-
become more committed to the new strategic direction cal sides must work together to make effective use
of the company. Crowdsourcing can involve employees of Big Data and artificial intelligence. He says that
as well as other stakeholders, including customers and when Salesforce missed its sales goals one quarter, the
the general public. company turned to AI, and more accurate forecasts
Lego is an example of a company that makes ex- ensued.
tensive use of crowdsourcing. The company allows For forecasting to be considered scientific, data
users to design new products, and simultaneously and facts should be the basis for conclusions, and AI
test demand. Any user can submit a design that is amasses data and facts. With AI, the decision maker
voted on by other users. The idea receiving the high- can use data-driven rationales to explain how the result
est number of votes is placed in production, with was found.17 For example, a sales manager for high-
the creator receiving one percent royalty on net rev- priced recreation vehicles (RVs) might prepare a chart
enue. 14 You could argue here that choosing another based on AI indicating that even a slight uptick in the
variation of an existing product is not true strategy. economy leads to a minimum 15 percent increase in
Or, you could argue that obtaining consumer input the sales of RVs. Assuming that the economy was im-
supports the strategy of diversification of goods and proving, manufacturing might ramp up for the antici-
service. pated sales increase.
Inputs to strategy are helpful, particularly in en- An advantage of AI for forecasting is that it is bru-
couraging debate and coming up with original ideas. tally honest, providing cold, hard truth. The facts
Strategy consultant, Melissa Raffoni, advises, however, provided by AI can be used to verify hunches, but the
that if staff members are asked what direction the or- strategic leader and decision maker must decide if
ganization should take, the executive shows weakened the facts are relevant. In the RV example, AI might re-
leadership.15 veal that 85 percent of RV owners have purchased all-
weather boots. The fact might be true, but people who
do not own outdoor boots might also be potential pur-
The Contribution of Artificial Intelligence (AI) chasers of RVs.
to Business Strategy
As described previously, breakthrough business strat- Leadership Effectiveness and Strategy
egies are powered by creativity and intuition. Yet the
Implementation
strategic leader also relies on data that might help
provide flashes of insight, because creativity relies Carefully crafting a strategy and vision is not suffi-
heavily on connecting previously unconnected bits of cient for its effectiveness. The strategy and vision must
information. Strategic leaders sometimes use the re- also be implemented or executed by the leader/man-
sults of artificial intelligence to analyze data to uncover ager. Part of being an effective leader is to implement
a strategic initiative. A basic example is that Domino’s strategic investment. Successful promotions, such as
managers throughout the organization successfully im- free hotel rooms and subsidized airplane flights, bring
plemented the strategic initiative of upgrading pizza new customers to the casino. The profits generated by
quality after the CEO decided that a high quality was the game the customer play usually offset the cost of
necessary. The Domino example reinforces the sugges- promotion. Many promotions, however, are unsuccess-
tions of three strategy specialists who emphasize that to ful because they either fail to generate new customer
execute their strategies, leaders must foster coordina- interests or the gains in revenue are not sufficient to
tion across units.18 For example, the pizza developers cover the cost of the promotions.
must match their pizza flavors with the observations of To deal with this problem, leadership at Caesars
the marketing staff. uses its network of more than fifty casinos to test pro-
Field sales representatives have a major role in im- motions before rolling them out full scale. The test-and-
plementing strategy because in a business enterprise a learn approach enables Caesars to cancel unsuccessful
major purpose of strategy is to sell more products or promotions and ensure the that the most successful
services. A major problem, however, is that company promotions are implemented in as many casinos as
leadership embarks on a strategy without considering possible.20
the realities the sales representatives face with custom- Formulating and implementing organizational
ers. To deal with this problem, it is recommended that strategy is a process that must quite often be repeated
the sales organization should be part of every conversa- in order for the firm to be competitive and survive.
tion about strategy.19 Strategy researcher and Columbia University Busi-
A recurring example is that many office equip- ness School professor, Rita Gunther McGrath, points
ment manufacturers have developed a diversification out that leaders need to embrace the idea that advan-
strategy of obtaining a large proportion of their reve- tage is transient. Companies must therefore launch
nue from services rather than hardware. Such services new strategic initiatives from time to time. The result
would include taking over payroll processing for cus- is a portfolio of advantages that can be built quickly
tomers, or offering cloud computing. Executing the and dropped as rapidly.21 PepsiCo is an example of a
service strategy would require considerable training for company that has shifted its marketing strategy several
existing sales representatives and/or the hiring of new times, moving away from dependence on carbonated
reps with the right technical skills. beverages to a firm that sells a wide variety of snack
A cautious, yet effective, approach to strategy im- foods and noncarbonated beverages.
plementation is to test and learn. Caesars Entertain- Leadership Skill-Building Exercise 13-1 gives you
ment has incorporated test-and-learn into is marketing an opportunity to practice a straightforward approach
investments. For Caesars, promotions are a major to developing business strategy.
Mapping Out a Future for an Organization

The purpose of this exercise is to give you practice on a is today. This might include product or service offerings,
key aspect of strategic leadership, articulating where you annual revenues, and number of employees.
want your organization to be, and how to arrive at that in Step Two is to write down where you want the firm to be
future. To formulate a basic organizational strategy, first at a future date.
choose an organization. The organization could be a present Step Three is to write down what must be done to get
employer (including self-employment), a past employer, or from Step One to Step Two. You have therefore created
any organization familiar to you. future goals for your organization and the strategy required to
Step One is to write down at the bottom of a page a brief achieve those goals (or vision).
description of where the organization (business or nonprofit)
Source: The idea for this exercise stems from “Business Strategies for Thinking Managers,” www.thinkingmanagers.com,
June 7, 2006, p. 1.
on analyzing the outside environment. Step four is to

Conducting a SWOT Analysis create a workshop environment by encouraging open
communication among participants.
All present should feel free to criticize the status
Learning Objective 13.3 Paraphrase how to use the quo, even questioning what most people think is a
SWOT model to assist in strategic planning.
company strength. A SWOT team member of a group
at Starbucks might say, “Is having so many stores such
Strategic planning helps a manager lead strategically.
a great strength? Could we be losing out to the coffee
Strategic planning encompasses those activities that
lovers who want a more unique, intimate experience?”
lead to the statement of goals and objectives and the
choice of strategy. Quite often, a firm arrives at its Conducting the Analysis
strategy after completing strategic planning. In prac-
The components of the basic version of SWOT are de-
tice, many executive leaders choose a strategy prior to
scribed next, as outlined in Figure 13-1.
strategic planning. As mentioned earlier, at times intu-
ition and judgment is more important than planning in 1. Identify Internal Strengths. The emphasis in this
the creation of a strategy. Once the firm has the strat- step is assessing factors within the organization that
egy, such as forming strategic alliances, a plan is devel- will have a positive impact on implementing the
oped to implement it. plan. (In some versions of SWOT analysis, an anal-
Quite often, strategic planning takes the form of a ysis of the external environment is included in this
SWOT analysis, a long-standing method of consider- step.) What are the good points about a particular
ing internal strengths and weaknesses as well as exter- alternative? What are your advantages? What do you
nal opportunities and threats in a particular situation. do well? Use your own judgment and intuition, and
A SWOT analysis represents an effort to examine the in- also ask knowledgeable people. As a business owner,
teraction between the particular characteristics of your you may have a favorable geographic location that
organization or organizational unit and the external makes you more accessible to customers than your
environment, or marketplace, in which you compete.22 competitor is. Another strength is that you may have
The framework, or technique, is useful in identifying a invested in state-of-the-art equipment that became
niche the company has not already exploited. The com- available only recently.
ponents of a basic version of SWOT are described next, A representative approach to capitalizing on
and are also outlined in Figure 13-1. internal strengths takes place when a name-brand
food processing company uses its manufactur-
Preparing for the Analysis ing capabilities to produce private label food for
Four steps are recommended to bring about a suc- supermarkets. An example is Perry’s Ice Cream,
cessful SWOT analysis. First, it is important to be located in a small town near Buffalo, New York.
clear about what you are doing and why. The purpose In addition to its regular product line of 290 pre-
might be to fine-tune a present strategy or to point the mium ice creams, Perry’s does private label work.
business in a new direction. Second, it is important The company’s fleet of 150 trucks (another internal
to select appropriate contributors. Select people with capability) also distributes such national brands as
appropriate experience, talent, and enthusiasm. Imagi- Ben & Jerry’s. Nestlé, and Häagen-Dazs.
native people are particularly useful for a SWOT analy- 2. Identify Internal Weaknesses. Here the strategy
sis. Six to ten people are usually enough, but involving developer takes a candid look at factors within the
more people can be helpful to get more people in- firm that could have a negative impact on the pro-
volved in the changes that SWOT might trigger. Third, posed plan. Consider the risks of pursuing a par-
allocate research and information-gathering tasks. ticular course of action, such as subcontracting
Several members of the team might concentrate on work to a low-wage country (outsourcing). What
analyzing the firm, whereas others might concentrate could be improved? What is done badly? What
should be avoided? Examine weaknesses from in-
ternal and external perspectives. Do outsiders per-
Prepare for the Analysis Conduct the Analysis
ceive weaknesses that you do not see? (You may
1. Identify purpose of the 1. Identify internal strengths
have to ask several outsiders to help you identify
analysis 2. Identify internal
2. Select right (qualified) weaknesses these weaknesses.) Are there products, services, or
participants 3. Identify external work processes your competitors perform better
3. Allocate tasks opportunities than you do? You are advised to be realistic now
4. Create workshop 4. Identify external threats
and face any unpleasant truths as soon as possible.
environment
Again, use your judgment and ask knowledgeable
Figure 13-1 The Basics of a SWOT Analysis. people. As a manager or business owner, you may
A Sampling of Business Strategies Formulated by Leaders 347
Conducting a SWOT Analysis

In small groups, develop a scenario for a SWOT analysis, SWOT analysis with the rest of the class. Conducting a
such as the group starting a chain of Panini restaurants, SWOT analysis reinforces the skill of thinking strategically
pet-care service centers, or recycling centers for electronic about a course of action. A key challenge in preparing this
devices. Because you will probably have mostly hypothetical hypothetical SWOT analysis is to make a distinction between
data to work with, you will have to rely heavily on your internal and external forces.
imagination. Group leaders might share the results of the
have problems managing your inventory, or you much more complex schemes have been developed for
may have employees who are not up to the task of strategic planning, they all include some analysis of
implementing a new plan or venture. strengths, weaknesses, and opportunities. Leadership
3. Identify External Opportunities. The purpose of Skill-Building Exercise 13-2 gives you an opportunity
this step is to assess socioeconomic, political, envi- to conduct a SWOT analysis.
ronmental, and demographic factors among others
to estimate what benefits they may bring to the orga-
nization. Think of the opportunities that await you if A Sampling of Business Strategies
you choose a promising strategic alternative, such as
creating a culturally diverse customer base. Use your Formulated by Leaders
imagination, and visualize the possibilities. Look for
Learning Objective 13.4 Enumerate a number of current
interesting trends. Useful opportunities can derive
businesss strategies.
from such events as the following:
• Changes in technology and markets on both a We have been focusing on the process by which leaders
broad and narrow scale and managers make strategic decisions. Of interest also
• Changes in government policy related to your to leaders and potential leaders is the content of such
field decisions. Business strategies are often classified ac-
• Changes in social patterns, population profiles, cording to their focus of impact: corporate level, busi-
lifestyles, and so forth ness level, or functional level. Corporate-level strategy
asks, “What business are we in?” Business-level strat-
4. Identify External Threats. The purpose of this
egy asks, “How do we compete?” And functional-level
step is to assess what possible negative impact
strategy asks, “How do we support the business-level
socioeconomic, political, environmental, and de-
strategy?” Some of the business strategies listed next
mographic factors may have on the organization.
might cut across more than one of these three levels.
There is a downside to every alternative, so think
The first three of these strategies are the classic generic
ahead, and do contingency planning. Ask people
strategies espoused by Michael Porter.23
who may have tried in the past what you are at-
tempting now. Answer questions such as 1. Differentiation. A differentiation strategy seeks
to offer a product or service that the customer per-
• What obstacles do you face?
ceives as being different from available alternatives.
• What is your competition doing?
The organization may use advertising, distinctive
• Are the required specifications for your job,
features, exceptional service, or new technology to
products, or services changing?
gain this perception of uniqueness. A challenge with
• Is changing technology changing your ability
the differentiation strategy is that if the product or
to compete successfully?
service is successful, competitors move in quickly.
Despite a careful analysis of threats, do not be dis- An example is pioneering travel reservation web-
suaded by the naysayers, heel draggers, and pessimists. sites, such as Expedia and Priceline. Dozens of com-
To quote Nike, “Just do it.” petitors quickly moved into the sector, taking away
Carrying out a SWOT analysis is often illuminat- market share from the original travel websites.
ing in terms of both pointing out what needs to be 2. Cost leadership. A basic strategy is to produce a
done and putting problems into perspective. Although product or service at a low cost in order to lower the
selling price and gain market share. ALDI, a chain 5. Imitation. If you cannot be imaginative, why not
of deep-discount food stores, is the eighth-largest imitate the best? Manufacturers of popular digital
retailer in the world, with over 1,600 stores across devices such as digital cameras and smartphones
thirty-five states in the United States. The company use an imitation strategy. The company waits for
capitalizes on the bargain hunter who accepts pri- the right time to introduce a lower-priced compet-
vate labels, limited choices, and paying 25 cents itor. Benchmarking is a form of learning by watch-
to use a grocery cart. ALDI relentlessly pursues its ing. One company emulates the best practices of
own brands with packaging strikingly similar to another company, usually without outright steal-
American brands. The choice of fewer brands and ing the product or service ideas of another com-
limited inventory helps cut costs. No shelving is pany. The automotive industry is rampant with
necessary because products are wheeled in on pal- one company imitating another. Next time you are
lets, saving the cost of hiring human stockers. ALDI in a busy parking lot or driving on the highway, see
does not accept credit cards or checks but does al- how many hoods and auto grilles you can find that
low payments through debit cards, and Electronic resemble a Mercedes.
Benefit Transfer (EBT), plus a few other forms of 6. Strategic alliances. A standard business strategy is
electronic payments. Customers are encouraged to to form alliances, or joint ventures, with other com-
bring their own bags.24 panies to exploit a market opportunity. Strategic
A major problem with a cost leadership strat- alliances have become more common as leaders in
egy is that competitors can easily enter the field, the high-tech industry attempt to capitalize on the
creating a downward spiral in pricing. strengths of other companies. Typically, the parent
3. Focus or niche. In a focus strategy, the organization companies have complementary skills and assets. A
concentrates on a specific regional market or buyer clear-cut example of a strategic alliance took place
group. To gain market share, the company will use in the auto industry several years ago. Luxury car
either a differentiation or a cost leadership approach manufacturers BMW and Daimler AG, the maker of
in a targeted market. The focus strategy is a natural, Mercedes Benz, put aside their longstanding rivalry
commonsense approach to business because it is dif- to combine forces to develop self-driving car tech-
ficult to serve every customer well. A focus strategy nology. The two companies also combined forces to
is about the same thing as finding a niche, or your develop new mobility devices such as car-sharing
place in the market. Almost every successful busi- and ride-hailing.26
ness venture was found by locating a niche. Pawn
7. Growth through acquisition. A basic strategy
shops that cater to the affluent exemplify how varied
for growth is for one company to purchase others.
a niche strategy can be. One such firm is Suttons &
Growth in size is important, but companies may
Robertsons. CEO, Jeffrey A. Weiss, explains, “We fo-
also purchase other companies to acquire a new
cus on the blue-chip, wealthy crowd.” The company
technology or complete a product line. Buying a
has been in business for over 250 years and capital-
new technology is often less expensive than invest-
izes on the fact that many people today are asset rich
ing huge sums in R&D that might not yield a mar-
but have a temporary liquidity problem.25
ketable product. During his first six years in office,
4. High quality. A basic business strategy is to offer Microsoft CEO Satya Nadella acquired several com-
goods or services of higher quality than the compe- panies that included hundreds of millions of users.
tition does. Leaders continue to emphasize quality, The acquisitions included “Minecraft” video, the
even if there is less explicit emphasis today on for- professional networking site LinkedIn, and the cod-
mal quality programs than in the past. Important ing—collaboration site, GitHub Inc.27
exceptions are the Six Sigma programs that em-
phasize statistical approaches to attaining quality. 8. High-speed and first-mover strategy. High-speed
Leaders at GE and 3M, for example, emphasize managers focus on speed in all of their business
Six Sigma. One reason that quality is classified as a activities, including product development, sales re-
strategy is that it contributes to competitive advan- sponse, and customer service. Believing that time is
tage in cost and differentiation. Because many cus- money, they choose time as a competitive resource.
tomers now expect high quality, a quality strategy It is important to get products to market quickly
must be supplemented with other points of differen- because the competition might get there first or
tiation, such as supplying customized features and might deliver a product or service more rapidly.
services that customers desire. How about Apple Getting to market first is also referred to as the first-
Inc. or the Swiss Army knife for a quality strategy? mover strategy. Starbucks was the first national
Also, all the merchandise offered at the pawn shop chain of coffee bars. The many storefronts served
just mentioned is of high quality, such as diamond as marketing devices to acquire more customers.
necklaces. A first-mover strategy sometime gives only a
A Sampling of Business Strategies Formulated by Leaders 349
temporary advantage, such as the BlackBerry once (4) Google, (5) Samsung, (6) Coca-Cola, (7) Toyota,
being almost synonymous with smartphone. Many (8) Mercedes Benz, (9) McDonald’s, and (10) Disney.
competitors swept in, including Samsung, Apple, An Interbrand executive says that these companies
and Nokia, making it difficult for BlackBerry to “Look inward and outward, expand into new mar-
survive. kets, and create better experiences to grow their
9. Product and global diversification. A natural brands and businesses.”31 By building the reputa-
business strategy is to offer a variety of products tion of their brands, senior management (assisted
and services and to sell across borders to enhance by countless thousands of workers) has helped
market opportunities. Coca-Cola Co. exemplifies a these companies succeed financially.
company that thrives on both global and product 12. Self-reinvention. To survive, many business
diversification. Coke now generates 75 percent of enterprises have to radically change their busi-
its revenue and operating profit from countries ness model. A leading example is how Intuit, the
outside the United States. Despite the compa- tax-software maker stays on top of the competition
ny’s reputation for relying too heavily on Coke, it by rethinking its business model. The company’s
has acquired many smaller brands of beverages original product, Quicken Personal Finance, had
in recent years, including the purchase of the or- to be recreated when Microsoft Windows replaced
ganic beverage company Honest Tea of Bethesda. its DOS operating system. QuickBooks for small
A key point of the acquisition is that Honest Tea business and Turbo tax for tax preparation re-
is a growth company, and many consumers have mained product leaders when Intuit management
made a move toward health and wellness in their moved them from PCs to online in the early days of
beverage consumption.28 Global diversification is the Internet. About six years ago Intuit reinvented
such a widely accepted strategy that the burden of itself again by becoming an open platform so de-
proof would be on a business leader who shunned velopers could add apps that would be useful to its
globalization customers.32
10. Sticking to core competencies. Many firms of all 13. Competitive advantage through hiring talented
sizes believe they will prosper if they confine their people. A powerful strategy for gaining competi-
efforts to the activities they perform best—their core tive advantage is to build the organization with
competencies. Corporate strategist Jim Collins calls talented, well-motivated people at every level. The
this the Hedgehog concept: becoming very good at most urgent need in building great companies is
one thing in a world of companies that spread them- to find and keep great people. Microsoft and Net-
selves into many areas where they lack depth.29 flix, along with elite business consulting firms, are
Many firms that expanded through diversification examples of firms that explicitly use the hiring-tal-
later trimmed back operations to activities on which ented-people strategy. Talented people may need
they had built their reputation. Making as business some leadership direction, but they will think of
too complex can create similar problems. new products and services and develop effective
The CEO of McDonald’s, Chris Kempczinski work processes.
said that one thing the company learned during All of these impressive strategies have limited
the pandemic was that if management simplified impact unless they are implemented properly,
the business and focuses on what McDonald’s is meaning that effective management must support
great at—like drive-thru (really “through”) and the strategic leadership. To repeat, visions must be fol-
core items—there’s a fantastic benefit for the com- lowed up with execution. Strategies are sometimes
pany’s customers. During the pandemic, customer not implemented correctly because top manage-
service scores elevated across the globe, and so did ment is not aware of problems that threaten the
productivity and profit margins. The leadership business.33 An example would be that faced with
team identified the complexity in the business, and pressures to reduce costs, some manager in oper-
now McDonald’s is committed to keep the business ating units do not report that quality is being sac-
simple.30 rificed to hold down manufacturing costs. Another
11. Brand leadership. As obvious as it may appear, problem, as mentioned earlier, is that the sales
succeeding through developing the reputation of force may not be involved sufficiently in imple-
a brand name can be considered a business strat- menting the strategy.
egy. The opposite strategy is to build components The accompanying Leader in Action insert
for others, build products that others market un- describes how one of the world’s most visible
der their names, or be a commodity, such as cinder business leader and inventors relies on business
blocks. According to research company Interbrand, strategy. Leadership Skill-Building Exercise 13-3
the world’s ten leading brands in order of brand provides you an opportunity to dig further into
strength are (1) Apple, (2) Amazon, (3) Microsoft, business strategy.

Leader in Action
Elon Musk Has a Business Strategy for SpaceX

Elon Musk is the founder CEO of Tesla and SpaceX, and the results & latter rewards waste. Outcome contracting should
Chairman of Solar City. He has been referred to as the mod be applied broadly within government. The difference in re
ern-day Thomas Edison. Aside from being a world-class sults will be incredible.”
inventor, Musk is a notable strategic leader, as reflected in In May 2019, SpaceX took the initial steps to be the first
his business strategy for SpaceX. His strategy for the space company to deliver inexpensive, satellite-based Internet to
exploration company is built on contrast. He has overturned planet Earth. The project, called Starlink, launched sixty com
three assumptions about space travel: that it must take munication satellites into orbit. The business strategy is to link
place on a fixed schedule, that is must be paid for by the inexpensive and speedy Internet around the globe, especially
government, and that rockets are for onetime use. Reusable to people living in remote areas without online capability.
rockets have drastically reduced the costs for space trans Later in 2019, Musk announced another business strat
portation. As a private company, SpaceX will be permitted egy for SpaceX to keep the company operating: rideshares
to ferry American astronauts to and from orbit. for small satellites. The plan is for the company’s Falcon 9
The vision linked to Musk’s strategy is to become a rockets to carry out regularly scheduled launches carrying
spacefaring civilization and a multi-planet species. The large batches of small satellites (smallsats), instead of one
Starship will be a fully reusable transport system capable of large, primary payload. The smallsats range in size from as
carrying up to 100 people to Mars. About forty cabins would small as a smartphone to approximately the size of a kitchen
be installed with about three people per cabin. The voyage refrigerator. The rideshare concept refers to cramming a
could take up to about nine months each way. Musk has bunch of smallsats onto a large rocket. A company repre
said that he aims to launch one of the vehicles on a per sentative said, “SpaceX is committed to serving the com
son-less flight to the Red Planet in 2024. mercial market as it grows and changes, and we believe we
Sending astronauts into space is a major expenditure, can address the needs of small satellite operators.” Another
but SpaceX’s involvement has reduced the cost dramatically. way of implementing the SpaceX strategy is to launch one
The per-seat cost for sending an astronaut into a space mis dedicated smallsat rideshares per year. Each mission ven
sion has come down to $55 million as compared to Soyuz, a tures about 372 miles above the Earth.
Russian spacecraft, which would cost about $80 million per Musk received two bachelors’ degrees at the University
seat. The Apollo, used for the lunar landing mission in the of Pennsylvania, a B.A. in economics and an B.S. in physics.
late 1960s, would cost a $390 million per astronaut in today’s He also spent some time in a doctoral program in energy
dollars. Another strategy of cost reduction and efficiency, ac physics at Stanford University.
cording to Musk, is the participation of multiple contractors.
Questions
Musk said that contracting outcome-based work (pay
1. Identify at least one specific business strategy presented
ing at least in part for the results attained by the contrac
by Musk for SpaceX.
tor) provides better results. He tweeted, “Outcome-based
2. Which aspects of Musk’s strategy and vision appear to
contracting with multiple competitors is vastly better than be mostly science fiction (if any)?
cost-plus (especially if sole-source) as the former rewards
Sources: Original story created from facts and observations in the following sources: Andrew Nusca and Michal Lev-Ram, “Business
Person of the Year: Elon the Bold,” Fortune, December 2020/January 2021, pp. 135–143; Adam Brandenburger, “Strategy Needs
Creativity: An Analytic Framework Alone Won’t Reinvent Your Business,” Harvard Business Review, March–April 2019, p. 61; Akash
Chandrashekhar Gulankar, “What Makes SpaceX a Game-Changer in Advanced Space Exploration?” The Federal (https://the federal
.com), June 19, 2020, pp. 1–4; Paul Rincon, “What is Elon Musk’s Spaceship?” www.bbc.com, March 4, 2021, pp. 1–8; Harmon Leon,
“Space X is Utilizing Uber’s Business Strategy to Bring Satellites to Space,” Observer (https://observer.com), August 12, 2019, pp. 1–3;
Jackie Wattles, “SpaceX’s New Business Strategy: Rideshares for Small Satellites,” CNN Business (www.cnnbusiness,com). August 5,
2019, pp. 1–4.
Knowledge Management and the Learning Organization 351
The Business Strategies of a Favorite Company

The term business strategy is used frequently in reference to term into a search engine such as, “Business strategy of
business enterprises, yet which strategy or strategies a given Kellogg.” If you are unable to find the strategy for the first
company uses can be difficult to identify. Think of one of your company you researched, try another business enterprise.
favorite companies, then identify at least one specific strategy After you have identified at least one specific strategy,
that company uses, as expressed by company management comment on whether it fits one or more of the sampling of
or the press. A good starting point, of course, is to enter a business strategies identified in the leadership textbook.
Educational Testing Service), have developed knowl-

Knowledge Management and the edge transfer programs to deal with the problem of so
Learning Organization much useful knowledge exiting the organization.
A key part of the knowledge transfer program is for
Learning Objective 13.5 Discuss how leaders contribute older workers to share useful knowledge with younger
to the management of knowledge and the learning
workers before the former depart. Technical knowledge
organization.
is often included in knowledge sharing. NASA devel-
oped a program when the U.S. space agency began to
Another strategic thrust of leaders is to help their orga-
lose expertise about lunar landings as senior engineers
nizations better adapt to the environment by assisting
retired. Recognizing it would need the expertise for
workers and the organization to become better learners.
missions to Mars, NASA asked engineers who worked
To accomplish this, the leader manages knowledge and
on the Apollo mission to share their knowledge in
cultivates a learning organization. A recent scholarly
meetings with new engineers.37
analysis indicates that organizational learning provides
The relevance of knowledge sharing to the organi-
a sustainable competitive advantage to an enterprise
zation is reinforced by the negative impact of knowl-
facing a highly volatile environment. Furthermore,
edge hiding. When knowledge is hidden, colleagues are
knowledge sharing strategies are a major contributor
less likely to generate creative ideas, and the knowl-
to organizational learning.34 Organizational learning is
edge hider might also experience less creativity. The
also characteristics of an agile organization.
reason is that creativity often depends on information
Knowledge management (KM) is a concerted
and knowledge sharing, as described in Chapter 11.
effort to improve how knowledge is created, deliv-
Leadership Self-assessment Quiz 13-2 gives you an
ered, and applied.35 When knowledge is managed ef-
opportunity to think through your tendencies toward
fectively, information is shared as needed, whether
sharing or hiding knowledge.
it be printed, stored electronically, or rests in the
brains of workers. Managing knowledge helps create
a learning organization—one that is skilled at cre-
ating, acquiring, and transferring knowledge and at Knowledge Management
modifying behavior to reflect new knowledge and in- Knowledge management (KM) deals with a cultural fo-
sights.36 In the two following sections, we look first cus on knowledge sharing. Managing knowledge is an
and knowledge sharing, then knowledge management important leadership role because very few organiza-
in general. tions make systematic use of the collective wisdom of
employees. Loads of information is often collected in
databases, and even through text messaging, but little
Knowledge Sharing
systematic use is made of the information. Here, we
Knowledge management in the form of knowledge look at the general format of KM programs.
sharing has surged in importance because so many KM has three components, as revealed by the re-
baby boomers are retiring, resulting in tribal knowl- search and observations of Thomas H. Davenport,
edge leaving the firm. (Tribal knowledge refers to inside Laurence Prusak, and Bruce Strong.38 Knowledge cre-
knowledge about how the organization operates.) Sev- ation is used to spur innovation. Programs for creat-
eral firms including selected divisions of GE and the ing knowledge solicit ideas, insights, and innovations
My Attitudes Toward Sharing Knowledge

Instructions: Indicate how much you agree with the following statements: disagree strongly (DS); disagree (D); neutral (N);
agree (A); and agree strongly (AS).
DS D N A AS
1. I have often helped other students with their homework or 1 2 3 4 5

papers.
2. In brainstorming sessions, I usually hold back from giving 5 4 3 2 1
my best ideas because I do not want them stolen.
3. I enjoy helping another person with a work or school 1 2 3 4 5
problem.
4. I would be willing to submit some of my best ideas to a com- 1 2 3 4 5
pany database, such as an intranet.
5. I am concerned about submitting my most creative ideas on 5 4 3 2 1
a term paper because these ideas could be stolen.
6. I enjoy working as part of a team and sharing ideas. 5 4 3 2 1
7. I get a little suspicious when a coworker or fellow student 1 2 3 4 5
attempts to pick my brain.
8. It upsets me if I do not receive full credit for my ideas. 5 4 3 2 1
9. If I had a great idea for a screenplay or novel, I would not tell 5 4 3 2 1
anyone about it before I was finished with the idea.
10. I have often let other people know about a good method I 1 2 3 4 5
developed to improve work efficiency.
Total score:
Scoring and Interpretation: Tally your score by adding the numbers you circled or checked.
• 40 or higher: You are generous with respect to knowledge sharing and would probably fit well in an organization that
practices knowledge management.
• 20–39: You have average attitudes toward sharing knowledge, with a mixture of enthusiasm and skepticism about knowl
edge sharing.
• 1–19: You are quite cautious and guarded about sharing ideas. Unless you become more willing to share your ideas, you
would not fit well in an organization that emphasized knowledge management.
Note: You are authorized to share this quiz with as many people as you would like.
from many sources, including rank and file workers, include company intranets that consolidate informa-
customers, and business partners, instead of relying tion in one place so that it is more accessible to po-
exclusively on the research and development staff. For tential users. Also of importance are internal online
example, more than 40 percent of Procter & Gamble collaboration networks and chat platforms in which
products have a component from external sources. workers from the same as well as geographically dis-
Knowledge dissemination through information persed units share work-related information. An
technology is the most frequent activity within knowl- example is to make an intranet a one-stop informa-
edge management. Methods of sharing knowledge tion shop designed to support critical jobs and work
processes. For example, Intel places on one website facilitates servant leaders and followers communi-
all of the information workers need to make a capi- cating freely. With less power distance between group
tal purchase. Knowledge application is the process of members and leader, the group members believe in the
getting workers better at what they do. Many organi- importance of their opinions and suggestions, which
zations have discovered that the most effective way of leads to more information exchange. The exchange of
encouraging workers to apply knowledge is through information often triggers new learning.
basic practices such as mentoring, on-the-job training, Caring for people is another aspect of servant lead-
and workshops. ership that facilitates knowledge creation. The reason
is that caring relationships facilitate the expression of
General Format of KM Programs diverse ideas and foster constructive reasoning and
KM systems often take the form of a digital system for evaluation of ideas. When people feel that they are
collecting and organizing potentially useful informa- cared for, they are more willing to disclose information
tion. However, knowledge is still disseminated through and put effort into processing information.41
traditional approaches such as people exchanging sto- An example of this abstract theory about servant
ries about incidents that have taken place in the past. leadership and the creation of knowledge is as follows:
For example, a leader might say that the CEO con- A marketing assistant at a financial services firm was
cluded that our group’s morale was high last year be- concerned about the portion of the company’s web-
cause during a Zoom conference we were all smiling. site that dealt with customers investing in funds. The
A very practical form of KM is to deliver informa- manager in his caring and sharing style could be classi-
tion just in time, or at the point at which it is most fied as a servant leader. The assistant said that she had
needed. A widely practiced method of delivering infor- three relatives (who were customers of the company)
mation just in time is through tablet computers, such who attempt to navigate the appropriate portion of the
as an insurance accessing the right information to website, and all three agreed that the experience was
help a customer with a complicated coverage problem. frustrating. Furthermore, two of the relatives said the
Whatever advanced technology is used to implement website was so goofy that they would telephone cus-
KM, it works best in an organizational culture that val- tomer service rather than invest online. The manager
ues knowledge and encourages its dissemination. accepted the information in a relaxed and inquisitive
A study conducted in 121 new-product development manner. The discussion ultimately led to getting the co-
teams and forty-one subsidiaries of a high-technology operation of the website developer in creating a more
company quantified another factor that influences user-friendly experience for customers.
knowledge sharing. Professional workers are less likely To round out your understanding of knowledge man-
to hoard knowledge when there is less competition agement, do Leadership Skill-Building Exercise 13-4.
across the organizational units.39 (In other words, why
share knowledge with a strong competitor?) The Learning Organization
The organizational subculture shapes our assump-
tions about what constitutes knowledge and which A learning organization can be viewed as a group of
knowledge is worth managing.40 Professional workers people working together to enhance their capacities to
in the finance division of Gap, Inc. might think that create the results they value.42 Organizational leader-
watching music channels on company time or surfing ship, however, must usually take the initiative to create
the Internet is a waste of company time. In the mer- the conditions whereby such enhancement of capaci-
chandising division, however, watching music channels ties, or learning, takes place. The research based on
and Internet surfing might be perceived as a valuable 20,000 executives found that strategic leaders are the
way of understanding clothing trends. focal point for organizational learning. Such leaders
promoted a culture of inquiry, and they search for the
Servant Leadership and the lessons to be learned in both successful and unsuccess-
ful outcomes. Strategic leaders also study their own
Creation of Knowledge
failures and those of the team to find hidden lessons.43
One theory of how knowledge is created in organiza- For example, a retailing executive might conclude that
tions focuses on the role of the servant leader. A key going too far to attract young, more fashionable cus-
point of the theory is that servant leaders are effective tomers wound up alienating too many older, more tra-
in sharing leadership responsibility, and shared leader- ditional customers.
ship enhances the creation of knowledge. One reason To facilitate organizational learning, several firms
is that shared leadership leads to a free flow of infor- have created a position labeled chief knowledge officer
mation exchange among group members. Shared lead- (CKO), or its equivalent. The major justification for cre-
ership de-emphasizes hierarchical boundaries, which ating such a position is that in many companies, human
The Knowledge-Sharing Investigation Teams

A challenge with the idea of knowledge sharing is to easiest method, whether it be a phone call, a text message,
know what knowledge should be shared among company or a tweet.
members. The class is organized into knowledge-sharing Discuss your findings in a group, and perhaps add
investigation teams. Members of each team contact two opinions of your own as to what knowledge would be
people working in a support, technical, sales, professional, worthwhile sharing in an organization. Arrive at a conclusion
or managerial position in a profit or nonprofit organization. about five specific types of knowledge within an organization
Ask the contact persons what knowledge would be valuable worth sharing. Share your findings with members of the other
to share in their place of work. Communicate using the groups in the class.
skills, intuition, and wisdom are replacing capital as the finding new products, services, processes, or technol-
most precious resource. CKOs seek to disperse those ogy. An example would be a bank finding an entirely
assets throughout the firm and convert them into inno- new service to offer to the public, such as a relocation
vations. They are in charge of systematically collecting service for geographically transferred employees. An-
information and connecting people with others who other major finding was that transactional leadership
might have valuable information. behaviors facilitate improving and extending existing
WD-40, the company that makes the famous lu- knowledge and are associated with exploitative innova-
bricant for such purposes as unscrewing a rusty bolt, tion.45 Exploitation relates to learning ways to make in-
exemplifies an extreme learning organization. When cremental improvements in existing products, services,
Gary Ridge was appointed CEO in 2009, WD-40 was or processes. An example would be a bank developing a
used in four out of five households in the United States, line of credit specifically geared toward the one-person
and in virtually every mine, factory, and construction enterprise.
site in the country. CEO Gary Ridge has made learning
central to the corporate culture. Ridge insists that ev- Leadership Initiatives for Enhancing the Learning
ery employee takes the “WD-40 Maniac Pledge,” a com- Organization
mitment to become a “learning maniac.” The pledge A wide variety of leadership initiatives can create and
includes the phrase, “If I’m doing something others enhance a learning organization. Understanding them
should know about, I’m responsible for telling them.” will help you grasp the concept of what a leader might
Ridge has placed a premium on learning, experiment- do to enhance organizational learning.46
ing, and improvising. Based somewhat on helping em- A major building block of a learning organization
ployees become more interested in what was possible is a supportive learning environment. Several factors
for the company, WD-40 now sells its products in 176 comprise a supportive learning environment. Employ-
countries. ees should not fear being belittled or marginalized
As part of the learning organization culture, Ridge when they disagree with their manager or coworkers
says, “My job is to create a company of learners. I like or ask naive questions. Instead, they should feel com-
to ask my people and myself, ‘When’s the last time you fortable about expressing disagreement or puzzlement.
did something for the first time?’’’44 Differences in opposing views should be both accepted
Here we look at a variety of leadership practices and appreciated. Supportive learning also includes be-
and attitudes that facilitate organizational learning. ing open to new ideas and having the time to think and
reflect. In many organizations, a person seen looking
Transformational Versus Transactional Leadership out the window would be assumed to be daydreaming
and Organizational Learning rather than thinking about work-related problems.
Research in a large European financial services firm A second building block of a learning organization
has brought into sharper focus the leader’s role in or- is concrete learning processes and practices. One exam-
ganizational learning. One major finding was that ple would be for a company to hold debriefing sessions
transformational leadership behaviors contribute sig- discussing what went right or wrong with a recent pro-
nificantly to encouraging workers to pursue explor- gram of placing product advertisements as temporary
atory innovation. An exploratory innovation deals with tattoos on the foreheads of paid participants.
A third building block is leadership that reinforces process of resolving an actual work problem, the par-
learning. For example, when leaders actively question ticipants acquire and use new skills, tools, or concepts.
and listen to employees, dialogue and debate as well As the project progresses, new skills are applied while
as learning are encouraged. Most of the behaviors in working with the problem. For example, if the team
the rest of this section would fit the building block of learned how to eliminate duplication of effort in one
leadership that reinforces learning. Providing rewards aspect of the work process, it would look to eliminate
for learning is a direct approach to reinforcing learning duplication at other points in the cycle.
by individuals and teams. For example, when workers Action learning provides another benefit that can
have increased their knowledge and value to the com- facilitate knowledge sharing. The benefit uncovered by
pany they might be provided with new and challenging research is an increase of psychological safety within
opportunities. the group. The term refers to a shared belief by team
A top-level leader should create a strategic intent to members that the team is safe for interpersonal risk
learn. Organizational learning then becomes a vehicle taking, such as taking one’s turn in speaking up, either
for gaining competitive advantage. Creating a shared digitally or in person.47 When team members feel safe
vision enhances learning, as organization members de- in speaking up, they are more likely to share knowledge.
velop a common purpose and commitment to having Learning from failure contributes immensely to a
the organization keep learning. If workers at all levels learning organization. A company that diversified into
believe that the company is headed toward greatness, an area unsuccessfully might analyze why it failed, and
they will be motivated to learn to help deliver greatness. then not repeat the same mistake. Encouraging contin-
In a learning organization, employees are empow- uous experimentation is another important practice for
ered to make decisions and seek continuous improve- crafting a learning strategy. The leader encourages work-
ment. The idea is to develop a community of learning ers to learn from competitors, customers, suppliers, and
in which every worker believes that they can contribute other units within the organization.
to a smarter, more effective organization. For organizational learning to proceed smoothly,
Systems thinking is almost synonymous with or- workers throughout the organization must have the
ganizational learning. The leader helps organization political skills to make connections with and influ-
members regard the organization as a system in which ence others. For example, if a production technician
everybody’s work affects the activities of everybody else. discovers an effective method of reducing water con-
Systems thinking also means keeping the big picture sumption, the technician must have the skill to sell an
foremost in everybody’s mind and being keenly aware of influential person on the merits of this idea.
the external environment. In addition to the big picture A final perspective on creating the learning organi-
of systems thinking, the leader must encourage the little zation is that the leader must encourage organizational
picture of personal mastery of the job. As team members members to think creatively—to imagine possibilities
gain personal mastery of their jobs, they contribute to that do not already exist. Research synthesized by lead-
team learning, an essential part of a learning organiza- ership professor Gary Yukl suggests that a comprehen-
tion. Team learning centers on collective problem solving sive way for leaders to enhance organizational learning
in which members freely share information and opinions is to “Develop, implement, and support programs and
to facilitate problem solving. systems that will encourage and reward the discovery of
Action learning, or learning while working on real new knowledge and its diffusion and application in the
problems, is a fundamental part of a learning organiza- organization.”48 Instead of merely adapting to the envi-
tion. Participants in action learning are asked to work ronment, the organization engages in the type of break-
in teams to attack a significant organizational problem, through thinking described in our previous discussions of
such as decreasing the cycle time on a project. In the creativity and strategic leadership.
Reader’s Roadmap
So far, we have studied the nature of leadership; the attributes, behaviors, and styles of leaders; the ethics and social
responsibility of leaders; and how leaders exert power and use politics and influence. We then studied techniques for
developing teamwork as well as motivation and coaching skills. After having studied creativity and innovation as part
of leadership, we focused on communication skills as they relate to leadership. We then shifted to strategic leadership.
Next, we examine another broad challenge facing leaders: dealing with cultural diversity within the organization and
across borders.
Summary
Strategic leadership deals with the major purposes alliances, (7) growth through acquisition, (8) high-
of an organization or organizational unit and pro- speed and first-mover strategy, (9) product and
vides the direction and inspiration necessary to cre- global diversification, (10) sticking to core compe
ate, provide direction to, or sustain an organization. tencies, (11) brand leadership, (13) self-reinvention,
The development of business strategy is a major and (13) competitive advantage through hiring
component of strategic leadership. talented people.
A recent emphasis in understanding how Another strategic thrust of leaders is to help
organizations adapt to their environment concerns their organizations adapt to the environment by
agility, the ability to quickly reorient he organization assisting workers and the organization to become
to capitalize on valuable opportunities. Humility better learners. To accomplish this feat, the leader
helps leaders stay agile because they listen to a wide manages knowledge and cultivates a learning
range of input. In an agile organization, leadership organization. Knowledge management focuses on
agrees on a small, well-defined set of priorities. the systematic sharing of information, including
Organizational agility is relevant for developing being able to deliver information just in time.
s t r a t e g y a n d b e i n g e ff e c t i v e a t k n o w l e d g e Knowledge management consists of knowledge
management. creation, dissemination, and application.
Strategic leaders rely heavily on intuition as Servant leaders are effective in sharing leadership
to what direction the organization should take. responsibility, and shared leadership enhances
Many strategic leaders arrive at their ideas for the creation of knowledge. De-emphasizing
the organization’s future by consulting a wide hierarchical boundaries facilitates servant leaders
range of interested parties, in a process similar to communicating freely. People who feel cared for are
conducting research to create a vision. Gathering more willing to disclose and process information.
multiple inputs if helpful for developing strategy. In The leader has many roles in a learning
addition to intuition and creativity, strategic leaders organization. Transformational leaders tend toward
rely on data that might provide flashes of insight for encouraging exploratory innovation, whereas
connecting pieces of information. Strategic leaders transactional leaders tend toward encouraging
sometime use the results of artificial intelligence exploitative (increments in what already exists)
(AI) to analyze data to uncover relationships that innovation.
cold be useful in formulating strategy. Major leadership initiatives for creating a
Carefully crafting a strategy and vision is not learning organization include creating a supportive
sufficient for effectiveness. The strategy and vision learning environment and establishing concrete
must also be implemented or executed by the learning processes and practices. Leadership should
leader/manager. Strategy cannot be implemented reinforce learning including rewards for learning,
successfully unless key people know what they need create a strategic intent to learn, and create a
to do differently and understand how they should shared vision. Employees should be empowered to
be executing. Quite often, implementation requires make decision and seek continuous improvement.
a series of goals that will be steps along the way to Also important is encouraging systems thinking,
implementing the strategy. encouraging personal mastery of the job, and
A SWOT analysis takes into account internal team learning. Action learning, or learning while
strengths and weaknesses and external opportunities working on real problems, learning from failures,
and threats in a given situation. A SWOT analysis and encouraging continuous experimentation are
also examines the interaction between the also part of the learning organization. Learning
organization and the environment. from failure is useful, and workers must have the
Strategic leaders use many different types political skills to make connections and influence
of business strategies, including the following: others. Encouraging creative thinking is also part of
(1) differentiation, (2) cost leadership, (3) focus or the learning organization.
niche, (4) high quality, (5) imitation, (6) strategic
Key Terms
strategy 340 artificial intelligence (AI) 344 knowledge management (KM)
strategic leadership 340 strategic planning 346 351
agility 340 SWOT analysis 346 learning organization 351
crowdsourcing 344
Business strategy may be a complex subject, but the for automotive leadership.” (Notice that his vi-
end result should be something almost everybody sion statement includes mention of both human
in the organization can understand. Three recom- resources and a major company product.)
mended rules toward making strategy understand- 4. Understandable. A major purpose of the vision
able are as follows:49 statement is that employees will know where
the organization wants to go and how to help
1. Make it simple. Strategy can usually be re-
it get there. Being understandable is therefore a
duced to one page that addresses in which
key quality of the vision statement. Terms such
space the organization will compete, and how
as world class and leading edge might be subject
it will win.
to wide interpretation. The vision statement of
2. Perfection is not necessary. Strategy is not
Caterpillar Inc. would be understood by almost
about finding perfect answers, but more about
every employee: “Our vision is a world in which
placing bets with a reasonable chance of winning.
all people’s basic needs—such as shelter, clean
3. Explain the logic behind the strategy clearly.
water, sanitation, food, and reliable power—are
Be clear about the changes necessary to achieve
fulfilled in an environmentally sustainable way
the strategic goal and mission.
and a company that improves the quality of the
To make sure that all workers understand environment and the communities where we
the company’s vision of where it wants to go, live and work.”
the vision statement should have certain key 5. Inspirational. To inspire, a vision statement
characteristics:50 should make employees feel good about work-
ing for the organization and should focus them
1. Brief. The statement should be short enough,
on measurable business goals.
so employees can recall it with ease. It has been
suggested that a vision should fit on an adult- A basic component of a learning organization is
size T-shirt. for workers to share useful work-related informa-
2. Verifiable. A verifiable vision is one that ten tion with each other, particularly information that
people could agree that an organization has is not readily accessible on the Internet. As a leader,
achieved. you might want to share tidbits of information with
3. Focused. Vision statements often contain too group members and colleagues that might help
many ideas. It is better to focus on a major goal them in their work. For example, you might want
such as the vision of Ford Motor Company: “Peo- to share a negotiation tactic that worked for you
ple working together as a lean global enterprise during an important negotiation.
Discussion Questions and Activities 7. Many top-level managers say that they want low-
1. As described in the chapter opener, the strategy er-ranking managers to think strategically. How
chief at Verizon demands that her creative team can a middle manager or a first-level manager
come up with revenue-generating products and think strategically?
8. Working alone or with several team members, pro-
services. How effective is that approach to leading
vide a recent example of a company that is in big
creative workers?
trouble or went out of business because it lacked
2. Why is cognitive intelligence, including knowledge
an effective strategy.
of the business, important for a strategic leader?
9. During the Great Recession, many consumers who
3. Why might being very practical minded interfere
had previously shopped at traditional supermar-
with being an outstanding strategic leader? kets shifted to doing basic shopping at dollar stores
4. How might being very strong with business analyt- and discount department stores, and the same
ics (such as analyzing reams of data and prepar- trend re-surfaced during the pandemic. Further-
ing spreadsheets) help a person develop business more, many of these shoppers remained loyal to
strategy? the low-priced stores long after the recession and
5. In what way can a business strategy motivate and the pandemic. What are the strategy lessons here?
inspire employees? 10. In what way might doing a good job of knowl-
6. How could you adapt a business strategy to guide edge management give a company a competitive
you in your own career as a leader? advantage?
Vehicle Buddy Seeks Its Purpose folks, let’s take turns describing what you think is
Jordan is the CEO of Vehicle Buddy, a manufac- the purpose of Vehicle Buddy. Why are we here?
turer and seller of vinyl floormats, trunk organiz- What are we trying to do? What is our raison
ers, and smartphone holders for cars and trucks. d’être (reason for being)?” A partial transcript of
The products are sold to consumers in automo- the meeting follows:
bile parts stores, department stores, and through Ashley (chief marketing officer): I’ve been
telephone orders, and online. As people tend to thinking a little about this topic for a while, so
keep their cars and trucks longer today than in I thank Jordan for calling this meeting. As I’ve
the past, Vehicle Buddy’s business has thrived. tried to communicate in some of my marketing
Jordan recently read in an article on the Internet efforts, the purpose of Vehicle Buddy is to make
that enduring and successful companies have a driving cars and trucks a more esthetic and en-
purpose, or a reason for being. He reflected that joyable experience.
the purpose of Vehicle Buddy seems obvious, but Alfredo (chief financial officer): From my
maybe a Friday afternoon meeting with the man- standpoint, we have the same purpose as any sen-
agement team could articulate the company’s sible business. We are trying to make a profit and
true purpose. Jordan also noted that a company survive.
with a purpose has more committed employees Sean (head of manufacturing): Our purpose is
and customers, and sometimes suppliers. clear to me. We are in the business of protecting
Jordan sent an email message to the man- car and truck interiors. That’s common sense.
agement team indicating that the purpose of the Abigail (chief engineering officer): Sean is on
meeting was to discuss the purpose of Vehicle the right track. Vehicle Buddy’s purpose is to de-
Buddy. To start the meeting, Jordan said, “Okay sign and distribute high-quality protective devices
for vehicle interiors that will help sustain the ap- Questions
pearance and functionality of those vehicles. 1. Which of the suggested purposes of Vehi-
Wendy (customer support manager): Let’s cle Buddy do you think would be the most
not get too fancy or unrealistic. Our purpose is effective in enhancing the commitment of
to help our customers enjoy a more comfortable the company’s customers, employees, and
experience with their vehicles. suppliers?
Devin (head of logistics and shipping): You 2. Which of the suggested purposes of Vehi-
folks might be overlooking our ultimate purpose. cle Buddy do you think would be the least
We are helping sustain the planet by making car effective in enhancing the commitment of
and truck interiors more durable thereby reduc- the company’s customers, employees, and
ing the need for replacing the vehicles. suppliers?
Jordan: Great stuff folks. I’ll be sending you 3. To what extent do you think that Jordan is
an email after I integrate these thoughts. Maybe just wasting time? Does Vehicle Buddy really
we will vote on which one or two final contenders need a written purpose?
should be our purpose.

The Vehicle Buddy leadership and management team consumers millions of dollars by extending the life of
gathers again to pin down its corporate purpose. One their vehicles, and enhance the enjoyment of personal
student plays the role of Jordan who proposes a pur- transportation.” Five other students play the role of
pose that he thinks integrates and expands on the the top-level management team members who have
points made in the previous meeting. He says that mixed reactions to the purpose Jordan expressed. See
as he stated in his text message list night, “The pur- if you can agree on a Vehicle Buddy purpose within
pose of Vehicle Buddy is to sustain the planet, save twenty minutes.
The Product Differentiation Strategy Team conglomerate is too conventional. We go after

A group of middle managers sat in a well-lit con- markets in which we can compete successfully,
ference room overlooking the Chicago skyline. and earn a decent profit in practically our di-
All six were impressed by the technology in the visions.” Team member Rob asked “So what’s
room, the furniture, and the refreshments. At wrong with being successful? What’s wrong with
9 a.m., the meeting began, and team leader Jes- turning in good profits quarter after quarter, and
sica spoke first: seeing our stock price rise year by year?”
“We all know why we are here. Kevin, our With a determined expression, Jessica said,
CEO, has become convinced of the necessity of “What’s wrong is that we are competing in tra-
a product differentiation strategy. He thinks our ditional spaces where the competition is too
intense. Kevin wants us to compete in market have to identify a multimillion-dollar market

space that does not already exist. We should be space that no other company is serving right now.
creating a new demand, and then filling that The world already has millions of products and
demand. Kevin wants us to come up with some services being offered. How is our humble team
product or service differentiation, or unique, going to identify a market of value that does not
ideas that he will then consider.” already exist?”
“I get it,” said Kim, “We should stay in the Jessica said, “I don’t know how we are going
profitable markets our various divisions already to find our unique strategy. But I do know that
serve. But at the same time, we should get into Kevin wants our report in thirty days. We’re go-
new markets that nobody is serving. How about ing to meet for four consecutive full-day sessions
making smartphones that will work during outer on Thursdays to get the job done. We probably
space travel? In a few years, we might have loads will be communicating with each other between
of private citizens taking trips into outer space.” the meetings also.
“Great sense of humor Kim,” responded Mar-
“Let’s get to work right now.”
vin, “but the demand might be too small.”
Jessica then clicked open a PowerPoint slide
Questions
listing the sixty-two products and services the
company already provides. She told the group, 1. What approaches would you recommend
“Kevin says we should forget about these mar- that the product differentiation strategy team
kets already being served. We have to invade new use to identify new market space for the
markets, maybe even create a market. conglomerate?
“Whoever thought twenty years ago that peo- 2. How realistic is it for Kevin to delegate the
ple would go shopping on a hand-held device task of finding a product differentiation strat-
while sitting in their den? Whoever thought peo- egy to a group of middle managers? Explain
ple would pay for a package delivery service that your reasoning.
competed with a government-backed postal ser- 3. What do you think would be the effective-
vice? Whoever thought people would want to ness of using the Internet to develop a prod-
read make and receive phone calls while driving uct-differentiation strategy for the team? For
in their cars, riding a bike, or sitting in a ski lift?” example, why not go to Ask.com and enter
Cecilia commented, “You are saying that as the question, “What would be a new market
the product differentiation strategy team, we space with no competition?”

One student plays the role of Jessica who has gathered role of the middle managers who will have to do some
the group on another Thursday strategy-development rapid brainstorming (Jessica included) to identify at
day. She is concerned that the group has not yet iden- least one product-differentiation strategy. Other stu-
tified an open market space to explore. She tells the dent can provide feedback on how well the group has
group not to leave until we have at least one good idea attained its goal this Thursday.
to present to Kevin. Several other students play the
Notes 361
A major part of being a strategic leader is to think spot close enough so they could avoid walking the block, or
strategically. Entrapped by the necessities of the small tasks so, necessary if they parked farther from the entrance.
facing us daily, it is easy to “think little” instead of “think My friend is a fitness nut, so he said the parking space
big” as required to be a strategic thinker. A “little thinker” chasers could do themselves a favor by parking a long
might attend a leadership seminar and spend five minutes distance from the mall entrance. In this way they could get
demanding a $10.00 rebate because that person was served a little physical exercise. A strategic flash went through my
ill-prepared food at lunch. A “big thinker” might reflect on the mind. If I, or perhaps the First Lady, could launch a national
same poorly prepared meal as a lesson in the importance of campaign for parking a distance away from mall entrances,
employees’ taking care of small details to ensure customer we could make some headway on two of the major problems
satisfaction. In this installment in your leadership portfolio, facing our society. First, physical inactivity is becoming
enter into your journal how you capitalized—or did not almost as big a killer as smoking or alcohol abuse. Second,
capitalize—on the opportunity to think strategically during think of all the gas people are wasting. On a national scale,
the last week, or so. An example follows: think of all the gas we would save if people would stop
My friend and I visited a large shopping mall on Saturday circling around looking for spaces. Besides, those little extra
morning. We noticed a large number of vehicles, both autos blocks of gas consumption add up. My strategic brainstorm
and small trucks, circling around within a block of the mall could lead to more fitness and less energy consumption in
entrance. The drivers were obviously looking for a parking our country.
Developing a Business Strategy for a Small Appliance Repair Chain

Imagine that you and a few classmates are the management Today, you are holding a business strategy session
team of a business that is fading rapidly—a chain of focused on the survival of your business. Be as bold as
household appliance repair stores. Over the years, your possible in your thinking, but keep in mind that your probably
business has been declining steadily. A major contributing do not have much cash on hand and that your borrowing
factor is that most people just replace rather than repair power is limited. Within thirty minutes, see if you can
appliances such as television sets, DVD players, irons, construct at least a tentative path for the survival of your
heaters, hair dryers, electric razors, and even clothes appliance-repair business.
washers and dryers.
Notes
1. Original story created from facts and observa- (www.rusellreynolds.com), 2021, pp. 1–2; Diana
tions in the following sources: Sarah Krouse, “In- Goovaerts, “Verizon Targets Digital Inclusion,”
side Verizon’s Quest to Monetize 5G.” The Wall Mobile Work Live (www.mobileworldflive.com),
Street Journal, March 25, 2012, p. 2; David Mills, February 24, 2021, pp. 1–2; “Rima Qureshi: Exec-
“Podcast: Rima Qureshi—‘Leveraging Diversity utive Vice President and Chief Strategy Officer,”
in the Boardroom’,” Russell Reynolds Associates www.verizon.com, 2021, pp. 1–2; Katie Regner,
“Meet One of Verizon’s Most Powerful Women- 17. Hernân Asorey, “How AI Is Transforming Forecast-
Rima Qureshi,” Verizon New Archives (www ing for the Better,” www.salesforce.com, pp. 1–3.
.verizon.com), March 13, 2018, pp. 1-3. Accessed June 25, 2021.
2. Santiago Comella-Dorda, Khushpreet Kour, 18. Donald Sull, Rebecca Homkes, and Charles Sull,
and Ahmad Zaidi, “Planning an Agile Organi- “Why Strategy Execution Unravels—And What
zation,” McKinsey Digital (www.mckinsey.com), to Do About It,” Harvard Business Review, March
F e b r u a r y 2 0 1 9 , p p . 1 – 1 0 ; D a r r e l l R i g b y, 2015, pp. 58–66.
Sarah Elk, and Steve Berez, “The Agile C-Suite: A 19. Frank Cespedes, “Putting Sales at the Center of
New Approach to Leadership for the Team at the Strategy,” Harvard Business Review, December
Top,” Harvard Business Review, May–June 2020, 2014, pp. 23–25.
pp. 64–73; Christopher Handscomb and Shail Thaker, 20. Michael Mankins, “5 Ways the Best Compa-
“Activate Agility: The Five Avenues to Success,” nies Close the Strategy-Execution Gap,” Harvard
McKinsey & Company (www.mackinsey.com), Business Review (https://hbr.org), November 26,
February 1, 2018, pp. 1–2. 2017, pp. 5-6.
3. Cynthia A. Montgomery, “Putting Leadership Back 21. Rita Gunther McGrath, “Transient Advantage,”
Into Strategy,” Harvard Business Review, January Harvard Business Review, June 2013, pp. 62–70.
2008, pp. 54–80. 22. Several ideas for this version of SWOT are from
4. “Purpose Shifting: Shifting from Why to How,” “SWOT Analysis,” Business Owner’s Tool Kit
McKinsey Quarterly (www.mckinsey.com), April 22, (http://csi.toolkit.tst.cch.com), November 8, 1999;
2020, p. 2. “Performing a SWOT Analysis,” in Business:
5. Henry Mintzberg, Managing (San Francisco, CA: The Ultimate Resources (Cambridge, MA: Perseus
Berrett-Koehler, 2009), pp. 162–163. Publishing, 2002), pp. 226–227.
6. James R. Bailey, “The Mind of the Strategist,” 23. Michael Porter, Competitive Strategy (New York:
Academy of Management Learning and Education, The Free Press, 1980), pp. 36–46.
December 2003, p. 385. 24. Alyssa Mertes, “How Aldi’s Business Model Leads
7. John D. Stoll, “It’s Really Hard to Think Long- to Happy Customers and Rapid Expansion,” www
Term,” The Wall Street Journal, December 4, 2018, .qualitylogoproducts.com, February 12, 2021,
p. R11. pp. 1-5; Stephanie Clifford, “Where Wal-Mart
8. Jessica Guynn, “Google to Keep Shooting for the Failed, Aldi Succeeds,” The New York Times (www
Moon,” USA Today Money, June 4, 2014, p. 4B. .nytimes.com), March 20, 2011, pp. 1–4.
9. Lisa Dragnoni et al., “Developing Leader’s Strate- 25. Paul Sullivan, “Need Cash? Own a Bentley? Take a
gic Thinking through Global Work Experience: The Pawn Ticket,” The New York Times (www.nytimes
Moderating Role of Cultural Distance,” Journal of .com), January 13, 2014, pp. 1–4.
Applied Psychology, September 2014, pp. 867–882. 26. William Boston, Volkswagen Targets 7,000 Office
10. “A Conversation with Cynthia Montgomery: How Jobs,” The Wall Street Journal, March 14, 2019,
We Think about Strategy,” Executive Leadership, p. B1.
June 2012, p. 3. 27. Aarin Tilley, “Microsoft CEO Aims To Expand
11. Cynthia Montgomery, “Putting Leadership Back Reach,” The Wall Street Journal, August 4, 2020,
into Strategy,” Harvard Business Review, January p. A7.
2008, pp. 54–80. 28. Seth Goldman and Barry Nalkebuff, “Mission in
12. Adam Brandenburger, “Strategy Needs Creativity: a Bottle,” Knowledge @Wharton (http://knowledge
An Analytic Framework Alone Won’t Reinvent Your .wharton.upenn.edu), October 28, 2013, pp. 1–13.
Business,” Harvard Business Review, March-April 29. Cited in George Anders, “Homespun Strategist,”
2019, pp. 58-65. The Wall Street Journal, January 6, 2004, p. B1.
13. David Burkus, “Ignore The HIPPOs (Highest Paid 30. “Keeping McDonald’s ‘Relevant,’: An Interview with
Person’s Opinions,“ The Medium (https:medium CEO Chris Kempczinski,” McKinsey & Company
.com), December 3, 2019, pp. 1–3. (www.mckinsey.com), March 19, 2012, pp. 4–5.
14. Kathryn Kearns, “9 Great Example of Crowd- 31. “Best Global Brands 2020, www.interbrandsbrands
sourcing in the Age of Empowered Consumers,” .com, 2020, pp. 1–7. The quote is from “2016 Best
TweakYourBiz (http://tweakyyourbiz.com), July 10, Global Brands Report,” http://interbrand.com,
2015, p. 3. October 5, 2016, pp. 1–5.
15. Cited in “4 Subtle Leadership Traps to Avoid,” 32. Geoff Colvin, “How Intuit Reinvents Itself,”
Executive Leadership, October 2015, p. 8. Fortune, November 1, 2017, pp.76–81.
16. Kai-Fu Lee, “The Four Waves of A.I.,” Fortune, 33. Michael Beer and Russell A. Eisenstat, “How to
November 1, 2018, p. 94. Have an Honest Conversation about Your Business
Notes 363
Strategy,” Harvard Business Review, February 2004, 44. Reported in Bill Taylor, “How WD-40 Created a
pp. 82–89. Learning-Obsessed Company Culture,” Harvard
34. Jiamin Dong, Renjin Liu, Yu Qiu, and Mary Cros- Business Review (https://hbr.org), September 16,
san, “Should Knowledge Be Distorted? Managers’ 2016, pp. 1–6.
Knowledge Distortion Strategies and Organiza- 45. Justin J. P. Jansen, Dusya Vera, and Mary Cros-
tional Learning in Different Environments,” The san, “Strategic Leadership for Exploration and Ex-
Leadership Quarterly, June 2021, pp. 1-17 (101477). ploitation: The Moderating Role of Environmental
35. Thomas H. Davenport, Laurence Prusak, and Dynamism,” Leadership Quarterly, February 2009,
Bruce Strong, “Putting Ideas to Work: Knowledge pp. 5–18.
Management Can Make a Difference, but It Needs 46. The three building blocks are from David A. Garvin,
To Be More Pragmatic,” The Wall Street Journal, Amy C. Edmondson, and Francesca Gino, “Is
March 10, 2008, p. R11. Yours a Learning Organization?” Harvard Busi-
36. David A. Garvin, “Building a Learning Organiza- ness Review, March 2008, pp. 110–114. The rest
tion,” Harvard Business Review, July–August 1993, of the list is from the following sources: Robert
p. 80. M. Fulmer and Philip Gibbs, “The Second Gen-
37. “Chowing Down On Boomers’ Brains,” Bloomberg eration Learning Organizations: New Tools for
Businessweek, January 25–January 31, 2016. Sustainable Competitive Advantage,” Organiza-
pp. 19–20. tional Dynamics, Autumn 1998, pp. 7–20; Thomas
38. Davenport, Prusak, and Strong, “Putting Ideas to P. Lawrence, Michael M. Mauws, Bruno Dyck, and
Work,” p. R11. Robert F. Kleysen, “The Politics of Organizational
39. Morten T. Hansen, Marie Louise Mors, and Bjorn Learning: Integrating Power into the 4I Frame-
Lovas, “Knowledge Sharing in Organizations: work,” Academy of Management Review, January
Multiple Networks, Multiple Phases,” Academy of 2005, pp. 180–191; Joe Raelin, “Does Action Learn-
Management Journal, October 2005, p. 790. ing Promote Collaborative Leadership?” Academy
40. David W. De Long and Liam Fahey, “Diagnosing of Management Learning & Education, June 2006,
Cultural Barriers to Knowledge Management,” pp. 152–168.
Academy of Management Executive, November 47. Peter Cauwelier, “Action Learning Can Accelerate
2000, pp. 115–117. Team Psychological Safety,” www.cloimedia.com,
41. Rishabh Rai and Anand Prakash, “A Relational June 9, 2016, pp. 1–4.
Perspective to Knowledge Creation: Role of 48. Gary Yukl, “Leading Organizational Learning:
Servant Leadership,” Journal of Leadership Studies, Reflections on Theory and Research,” Leadership
no. 2, 2012, pp. 61–85. Quarterly, February 2009, p. 50.
42. Robert M. Fulmer and J. Bernard Keys, “A Con- 49. Roger L. Martin, “The Big Lie of Strategic Plan-
versation with Peter Senge: New Developments in ning,” Harvard Business Review, January–February
Organizational Learning,” Organizational 2014, p. 81.
Dynamics, Autumn 1998, p. 35. 50. “Making Vision Statements ‘Visionary,’” Manager’s
43. Schoemaker, Krupp, and Howland, “Strategic Edge, December 1998, p. 1.
Leadership,” pp. 133–134.
14
Chapter
International and Culturally

Diverse Aspects of Leadership
Learning Objectives
After studying this chapter and doing the exercises, you 14.3 Summarize the contribution of cultural sensitivity to
should be able to leadership effectiveness.
14.1 Elaborate on the potential ethical and competitive 14.4 Explain how global leadership skills contribute to
advantages from leading and managing diversity, leadership effectiveness.
equity, and inclusion. 14.5 Pinpoint leadership initiatives to attain cultural diversity,
14.2 Describe how cultural factors, including values, equity, and inclusion.
influence leadership practice.
Chapter Outline
The Advantages of Managing for Diversity Establish Minority Recruitment, Retention, and Mentoring
Cultural Factors Influencing Leadership Practice Programs
Key Dimensions of Differences in Cultural Values Conduct Diversity Training
Conduct Anti-Bias Training
Cultural Sensitivity
Conduct Cross-Cultural Training
The English-Only Policy and Cultural Sensitivity
Avoid Group Characteristics When Hiring for Person–
Global Leadership Skills
Organization Fit
General Model of Global Leadership Skills
Attain Diversity Among Organizational Leaders
Success Factors in International Management Positions Emphasize Inclusive Language
Motivating and Inspiring Workers in Other Cultures Summary
Resolving Cross-Cultural Conflict Key Terms
Understanding which Leadership and Management Guidelines for Action and Skill Development
Practices Function Well in a Specific Culture Leadership Case Problem A
Leadership Initiatives for Achieving Cultural Diversity
Notes
Hold Managers Accountable for Achieving Diversity
364
Chapter 14 • International and Culturally Diverse Aspects of Leadership 365
P
interest is an app for saving and organizing images. Stated For several years, Pinterest has devoted attention to diver-
with a broader purpose, Pinterest is a social network where sifying leadership within the company. The process begins with
people can find inspiration and ideas for creative projects. building relationships with internal and external talent, including
Every idea is represented by a pin, an image that is searched and “reverse mentorship” relationships. The company requires at
saved by Pinterest users. Company leadership has long empha- least two candidates from underrepresented minority groups at
sized diversity, equity, and inclusion, but recently attempted to ac- the final onsite stage for any new leadership role. (Underrepre-
celerate its effort to accomplish this social purpose. Despite these sented minorities are defined as employees of Native American,
efforts, in 2020, Pinterest faced claims of gender-bias. Pacific Islander, Latinx, and Black descent.)
Ben Silbermann, cofounder and chief executive of Pinter- Another effort to increase diversity and inclusion at
est, said that he is accountable for employee experiences on the Pinterest related to users of the app. The company released a
job, and it was difficult to be told that some staffers said they en- search feature that allows users to filter results by skin tone.
countered discrimination. Silverman’s response was, “What came Those looking for beauty tips can find relevant makeup and hair
out of that is learning what we need to do to better, and making advice, regardless of their race. Pinterest management said that
changes.” One goal that emerged from concerns about job dis- the skin tone research feature is a direct result of the diversity
crimination was to increase the number of employees from under- and inclusion team working closely with the technical and engi-
represented races and ethnicities to 20 percent from 12 percent by neering teams within the company.
2025. Pinterest also planned to increase the percentage of women Pinterest leadership believes that it has made substantial
in leadership positions to 36 percent from 30 percent. Silbermann progress in diversity, equity, and inclusion and provides exten-
also said, “We need to invest and keep investing in building a fu- sive data to support their conclusion. A few 2020 highlights are
ture where people from every background can feel welcome.” as follows: (a) 49 percent of global employees were women up
Also, in response to claims of bias and discrimination, Pin- from 42 percent in 2015, (b) 30 percent of leadership roles were
terest leadership hired a law firm to make an independent review held by women, up from 16 percent in 2015, (c) 29 percent of
of its workplace culture. Among the changes made were making engineers globally were women, up from 19 percent in 2015,
unconscious bias training mandatory, and establishing a team and (d) 8 percent of U.S. engineers were from underrepresented
to investigate workplace concerns. Other initiatives to improve races and ethnicities, up from 1 percent in 2015.
diversity were to hire a new head of diversity and inclusion, Tyi Silbermann is a graduate of Yale University with a degree in
McCray, and add three people of color to the company board of political science. Both his parents are ophthalmologists.1
directors, two of whom are women.
The story about Pinterest illustrates the efforts com- Diversity, equity, and inclusion continue to highlight
panies today place on diversity, equity, and inclusion, more groups with current attention focused on the im-
including overcoming complaints launched against the portance of paying attention to the needs and rights of
company. trans (transgender) people, and creating a trans-inclu-
As stated many times in this book, diversity and in- sive workplace. The concern is that trans people often
clusion have become an integral part of most organiza- experience stigma, discrimination, and hostility.3
tions, with the term equity often incorporated into the Not only is the workforce becoming more diverse,
mix. Equity refers to ensuring that access, resources, but business has also become increasingly global.
and opportunities are provided for all to succeed and Small- and medium-size firms, as well as corporate
develop, especially for people who are underrepre- giants, are increasingly dependent on trade with
sented and have been historically disadvantaged.2 Eq- other countries. Furthermore, most manufactured
uity therefore means giving everyone a fair chance to goods contain components from more than one
succeed. The term, however, does not refer to everyone country, and global outsourcing has become a dom-
achieving the same outcomes, such as every employee inant trend.
receiving the same performance appraisal results or fi- A point of confusion about the emphasis on cul-
nancial compensation. tural diversity in organizations is that there are two
366 Chapter 14 • International and Culturally Diverse Aspects of Leadership
different ways in which diversity is framed. 4 One According to research and opinion, managing for
frame is to emphasize differences among people, and diversity also brings the firm a competitive advantage.
the importance of these differences. This value in dif- Almost fifteen years ago, Patricia Harris, the Global
ference approach promotes increasing awareness of Chief Diversity Officer of McDonald’s Corporation,
differences and biases, and suggests that these dif- expressed the matter quite directly: “We began to di-
ferences improve employee experiences and enhance versify our operations when it became clear to us it
profitability. For example, an executive at the clothing was the best way to sell more hamburgers in minority
retailer Talbot might say, “Yes, we have young people communities.”5
running our marketing and information technology The advantages of cultural and demographic (dif-
groups. And we also have women in their seventies ferent group membership) diversity are most likely to
who interact directly with our customers. That’s why accrue when diversity is built into the firm’s strategy. In
we are so successful.” addition, the chief executive of an organization should
The other diversity approach is an appeal to equal- be the champion for valuing inclusion and must estab-
ity and fairness no matter what the differences among lish this perspective and associated actions for others
people. This value in equality approach emphasize that throughout the organization.6 In this context inclusion
differences will not be a barrier to advancement, and refers to diverse employees being embraced, welcomed,
that all employees are judged fairly based on merit. Al- and enabled to make meaningful contributions.7
most all company leaders say, “We are an equal oppor- Robin J. Ely, a professor at Harvard Business
tunity employer.” School, and David A. Thomas, the president of More-
Our approach to cultural diversity both within and house College, emphasize that the business case for
across countries emphasizes the leadership perspec- cultural diversity is well accepted. Yet there is no ev-
tive. Key topics include the ethical and competitive idence that simply diversifying the workforce makes
advantage of managing for diversity, how cultural fac- a company more profitable. What is required is an
tors influence leadership practices, and how cultural organizational culture whereby leaders create a psy-
sensitivity and global leadership skills contribute to chologically safe atmosphere, and embrace the styles
leadership effectiveness. This chapter also describes of employees from different identity groups. Leaders
initiatives that enhance the acceptance of cultural di- must also work to eliminate job discrimination and
versity. The underlying theme is that effective lead- subordination should it exist in the organization.8
ership of diverse people requires a sensitivity to and Here we review evidence and opinion about the
enjoyment of cultural differences. competitive advantage of demographic and cultural
diversity.
1. Managing diversity well offers a marketing
advantage. A representational workforce facil-
The Advantages of Managing
itates the sale of products and services, and the
for Diversity need for such a workforce appears to be increasing.
A major component of the marketing advantage of
Learning Objective 14.1 Elaborate on the potential
ethical and competitive advantages from leading and diversity is that a work force that matches the di-
managing diversity, equity, and inclusion. versity of a company’s customer base has an edge
in appealing to those customers. A representational
The ethical and socially responsible goals of leaders workforce facilitates reaching a multicultural mar-
and their organizations include providing adequately ket. A study of more than 1,000 companies cover-
for members of the diverse work force. Ethical leaders ing twelve countries found that gender diversity in
should therefore feel compelled to use merit instead top-level management was associated with higher
of favoritism or bias as a basis for making human re- profits. Business firms in the top quartile in gen-
source decisions. A firm that embraces diversity is also der diversity were 21 percent more likely to have
behaving in a socially responsible manner. A leader, for above-average profits than those companies in the
example, who chose to hire five developmentally dis- fourth quartile. The same study found that com-
abled, unemployed individuals, would be acting in a panies with the most ethnically diverse teams are
socially responsible manner. Hiring these people would more likely to outperform comparable companies
transfer responsibility for their economic welfare from on profitability.9
the state or private charity to the employer. (Some Another marketing advantage is that many peo-
would argue that unless hiring these people is cost ef- ple from culturally diverse groups prefer to buy
fective, the company is neglecting its responsibility to from a company with a good reputation for man-
shareholders.) aging diversity. Allstate Insurance Company, Inc.
The Advantages of Managing for Diversity 367
is well known for its diversity initiatives, and the 4. Diversity and inclusion programs help local econ
company has become the nation’s leading insurer omies thereby boosting social responsibility.
of African-Americans and Latinos. Allstate leader- Many large companies take the diversity initiative
ship states that inclusive diversity is one of its core of purchasing from local, minority, and female
values.10 The large number of agents and customer suppliers. The substantial purchases aid the local
service representatives from these two groups facil- economy in terms of the flow of money as well as
itates attracting and retaining a high percentage of employment. The Macy’s Supplier Diversity Pro-
Blacks and Latinos as customers. gram is a corporate initiative aimed at fostering the
The general picture is that cultural diversity can promotion, growth, and development of minority-
drive business development. By reflecting the de- and women-owned businesses. Company leadership
mographics of the community companies become at the 158-year-old retailer perceives the program
more desirable in the global marketplace. The net- as a solid business investment. By supporting local
works of talented employees from culturally and and regional business enterprises, Macy’s believes it
demographically diverse groups enable the com- can strengthen itself and expand while at the same
pany to connect with various audiences and expand time contribute to the financial growth of the com-
into new markets.11 For example, the many Latino munity it serves.14
employees at the Buick division of General Motors
5. Enhancement of team performance. Similar
have helped increase the popularity of Buick cars
to the creativity advantage, cultural diversity
among Latinos in the United States.
can enhance team performance, often because
2. Companies with a favorable record in manag- diverse backgrounds are associated with diverse
ing diversity are at a distinct advantage in re- information, knowledge, and perspectives that
cruiting and retaining talented people. Those can be used to solve problems. The potential of
companies with a favorable reputation for welcom- diversity to enhance team performance has an
ing diversity attract the strongest job candidates important moderating factor. The leader of the
among women and racial and ethnic minorities. diverse group must help members collaborate;
Also, a company that does not welcome a diverse otherwise, the advantages of diverse perspectives
work force shrinks its supply of potential candi- will be lost.15
dates. An organization that strives for diversity in
6. Cultural diversity can make more effective
recruiting simply has a larger talent pool in which
use of human capital. As implied in the second
to search for candidates. A telling example is that
advantage above, a culturally diverse workforce
in recent years companies have chosen more exec-
tends to make good use of human capital be-
utive leaders who are women or who are natives of
cause a wider range of talent is tapped. A study
other countries. When companies hire culturally
diverse workers and provide them with all the tools, conducted in 3,888 workplaces explored how age
resources, and opportunities they need to succeed, diversity improved organizational performance.
those companies are more likely to display the full A major finding was that age diversity was posi-
talents of their work force. tively associated with organizational performance
because of better use of human and social capi-
3. Heterogeneity in the work force may offer the
tal. Human capital is mostly about skills, whereas
company a creativity advantage, as well as im-
social capital is mostly about interpersonal rela-
prove its problem-solving and decision-making
tionships. Furthermore, when functional diversity
capability. Creative solutions to problems are more
(different occupational specialties) was combined
likely to be reached when a diverse group attacks
with age-inclusive management, age diversity had
a problem. Diversity specialist Joe Gerstandt pres-
an even stronger impact on the use of human and
ents a chemical analogy: By themselves, atoms of
social capital.16
oxygen, carbon, and hydrogen are tasteless. When
combined, however, they create sugar. Gerstandt be- The accompanying Leader in Action insert de-
lieves that innovation takes place at the intersection scribes an executive in the tourism field who believes
of differences, even if getting there may bring some strongly in the business case for diversity.
tensions at first.12 Research evidence suggests that To raise your level of awareness about how to
working with people who are different from you capitalize on the potential advantages of diversity,
may challenge your brain to overcome its traditional do Leadership Skill-Building Exercise 14-1, which
thinking and sharpen its performance. Another pos- illustrates that diversity skills are another import-
sibility is that diverse teams are more likely to reex- ant subset of interpersonal skills associated with
amine facts frequently and remain objective.13 leadership.

Leader in Action
Carnival Corporation Capitalizes on Managers from Diverse Backgrounds

to Reignite Growth
Arnold W. Donald, president and chief executive officer The most dramatic way in which Carnival Corporation
(CEO), Carnival Corporation says that diversity is a business capitalizes on thought diversity is by choosing different
imperative. “The key to innovation is diversity of thinking.” types of people to be in charge of each of its nine brands
He believes that having people from different backgrounds (cruise lines). Arnold himself triggered diversity in the com-
and different cultural experiences who are focused on a pany leadership by being the first Black (specifically Afri-
common objective are much more likely to achieve innova- can-American) CEO in an industry that had generally been
tion than a homogenous group. Furthermore, the same di- dominated by White corporate leaders.
versity of thinking is a powerful advantage. During his first two years at the helm Donald replaced
Donald was the former chairman of the chemical com- seven of the nine cruise line heads. Four are now women,
pany Merisant, and top executive at the weed killer division one is Black, and one gay, and major change from a business
of Monsanto. He became president and CEO at Carnival that was once an offshoot of the European made-dominated
Corporation in 2013, after having served on the board for shipping industry. Donald says that his strategy is to create
thirteen years. When Donald became CEO, Carnival Cor- an environment where differing opinions are heard and taken
poration was reeling from several crises, including a deadly seriously, leading to diversity in thinking. Several of the cruise
ship crash and a ship idled in the ocean in an unsanitary line presidents have been chosen from outside the cruise in-
condition. One of his major goals was to increase the per- dustry. For example, Orlando Ashford, the president of the
centage of North Americans who cruise each year, which Holland American line had previously been running a com-
has stood at four percent for many years. pensation consulting business and had never taken a cruise.
Among the better-known Carnival Corporation brands Mark Conroy, the president of a former competitor, Re-
are Carnival, Cunard, Costa Cruises, Holland American Line, gent Seven Seas Cruises, commented about Donald’s
and Princess Cruises. Each operating brands has its own diverse recruiting: “You had people who grew up in the busi-
unique culture based on its headquarters location, guests ness, and they’re always doing the same thing. People from
served, and the diversity of employees and the leaders. the outside look at things differently.” Another aspect Don-
Arnold emphasizes that maintaining a diverse workforce ald’s approach to diversity is to offer special promotions to
promotes an open, tolerant, and positive work environment attract more young guests, rather than focusing so heavily
the talents and strengths of everyone can be put into play. on older people. One approach is to offer lectures on board
The company works to attract, motivate, develop, and retain on such topics as wine, and provide information about the
the best talent from the diversity within the world. Carnival locations where the ships stop.
leadership believes that the company’s ability to be compet- The leadership and management skills of Arnold and his
itive and to thrive globally depends on a diverse workforce. team were put to a severe test during the COVID-19 pan-
Donald says that “A highly talented team, with a pro- demic. In February, 2020 a passenger who had been on
cess to work together, that is diverse will out-innovate a Carnival’s Diamond Princess ship, docked in Japan, tested
homogeneous team 99.9 percent of the time.” In addition positive for COVID-19. Shortly thereafter, 700 people on
to being the right thing to do, diversity leads to better the ship contracted the virus. Within a few weeks, 25 other
shareholder returns, and helps sustain business success.” cruise ships reported coronavirus infections. By mid-March,
Jan Schwarz, president of Princess, says “Arnold is a Carnival suspended operations across the globe. Weeks
champion of diversity and holds firm in the belief that were required to get the 260,000 guests and 80,000 em-
diversity adds depth and breadth to thinking about chal- ployees at sea back to their homes in 130 countries. Carni-
lenges and opportunities.” val shut down cruises for an entire year, and faced lawsuits
(continued)
The Advantages of Managing for Diversity 369

from passengers who thought that the company did not do jointly to weather the storm created by COVID-19. As with
enough to keep them safe. other cruise lines, Carnival took extensive measures to en-
Donald and his team went into a crisis-leadership mode sure passenger safety when the ships returned to the seas.
that enabled Carnival to survive. The company cut its annual Among the dozens of protocols were environmental sanita-
operating expenses by $1 billion. Many employees were laid tion, and improved ship ventilation systems.
off or furloughed, and older, less productive ships were sold Arnold obtained his BA from Carleton College, a BS in
where possible. Carnival leadership also restructured its mechanical engineering from Washington University, and
debt, such as extending debt maturities. The customer loy- an MBA from the University of Chicago Graduate School
alty Carnival had developed over the years contributed to its of Business. In 1997, Donald was named Black Enterprise
survival. Approximately 45 percent of customers opted for magazine’s Executive of the Year.
vouchers for a future cruise instead of a refund, contributing
Questions
to $2.4 billion cash on hand.
1. In what way is Arnold Donald emphasizing diversity in
In addition to the financial wizardry, a key factor in Car-
thought as well as cultural diversity among his division
nival’s survival was the calm and reassuring leadership leaders?
Donald provided. In his typical leadership mode, Donald pa- 2. How is it possible that outsiders to the cruise industry
tiently listed to the suggestions of his team as they worked would be qualified to run a cruise ship line?
Sources: Original story created from facts and observations in the following sources: “Information about Arnold Donald,” The His-
tory Makers www.thehistorymakers.org, May 15, 2019, pp. 1–4; Melanie Trottman, “Cruise Lines Woo the Never-Cruisers,” The Wall
Street Journal, February 21, 2017, p. R4; “Sustainable Workforce,” Carnival Corporation & PFC (www.carnivalcorp.com), July 29,
2016, pp. 1–5; “Diversity & Inclusion,” Carnival Corporation & PLC (www.carnivalcorp.com), July 29, 2016, pp. 1–8; Michael Blanding,
“Cruising in Crisis: How Carnival is Riding Out the COVID-19 Storm,” Harvard Business School Working Knowledge (https://hbs.edu),
June 16, 2021, pp. 1–5; “Carnival Corporation Update on Operations,” www.carnivalcorp.com, 202, pp. 1–10.
Pinpointing a Diversity Advantage

Much has been written and talked about of the advantage Ask the person to identify any workplace advantage to di-
that a culturally diverse workforce can bring to a company, versity that the person has observed. Record the evidence
school, or government agency. Organize into teams of about you have collected, and share with group members if you
five, or conduct this exercise on your own. Each person out- formed a group. The skill builder in this exercise is that you
side of class attempts to find one advantage that stemmed might raise your awareness level of the advantages of a cul-
to an organization from having a culturally diverse work- turally diverse workforce. You might also become aware of a
force. Instead of relying on written information, contact one potential problem to diversity that you would have to man-
or two people in your network. Speak to your contact per- age as a leader.
son or persons by phone, text, or conduct a video interview.
One way to understand how national cultures dif-

Cultural Factors Influencing fer is to examine their values or cultural dimensions.
Leadership Practice The cultural dimensions presented here and outlined
in Figure 14-1 are based mostly on those included in
Learning Objective 14.2 Describe how cultural factors, Global Leadership and Organizational Behavior Ef-
including values, influence leadership practice. fectiveness (GLOBE), a research program in sixty-two
societal cultures, and builds on previous analyses of
A multicultural leader is a leader with the skills and
cultural dimensions. 17 We also include two other di-
attitudes to relate effectively to and motivate peo-
mensions useful in working with people from other
ple across race, gender, age, social attitudes, and life-
cultures—attitudes toward time and work orientation.
styles. To influence, motivate, and inspire culturally
Keep in mind that these cultural dimensions are ste-
diverse people, the leader must be aware of overt and
reotypes that apply to a representative person from
subtle cultural differences. Although such culturally
a particular culture and are not meant to insult any-
based differences are generalizations, they function
body. Individual differences are substantial. For ex-
as starting points in the leader’s attempt to lead a per-
ample, many Americans are not assertive, and many
son from another culture. For example, many Asians
French people are willing to work seventy hours per
are self-conscious about being praised in front of
week (particularly during the continuing recession in
the group because they feel that individual attention
France).
clashes with their desire to maintain group harmony.
Therefore, a manager might refrain from praising an 1. Performance orientation is the degree to which
Asian group member before the group until the leader a society encourages (or should encourage) and
understands that group member’s preferences. The rewards group members for performance im-
manager is likely to find that many Asians welcome provement and excellence. Countries high on this
praise in front of peers, especially when working out- dimension are the United States and Singapore,
side their homeland. whereas those low on this dimension are Russia
Here we examine how understanding key dimen- and Greece.
sions of differences in cultural values can help a man- 2. Assertiveness is the degree to which individuals
ager lead in a culturally diverse workplace. are (and should be) assertive, confrontational, and
Performance
orientation
Work Assertiveness
orientation
Uncertainty Future
avoidance orientation
Time
Power distance
orientation
Gender Humane
egalitarianism orientation
In-group
collectivism vs.
individualism
Figure 14-1 Dimensions of Cultural Values.
Cultural Factors Influencing Leadership Practice 371
aggressive in their relationships with one another. score high on acceptance of power and authority
Countries scoring high on this dimension are the are Thailand, Brazil, France, and Japan.
United States and Austria, whereas those low on 9. Uncertainty avoidance is the extent to which
this dimension are Sweden and New Zealand. As- members of a society rely (and should rely) on so-
sertive people enjoy competition in business, in cial norms, rules, and procedures to lessen the
contrast to less assertive cultural groups who prefer unpredictability of future events. The stronger the
harmony, loyalty, and solidarity. desire to avoid uncertainty, the more likely people
3. Future orientation is the extent to which individ- are to seek orderliness, consistency, and laws to
uals engage (and should engage) in future-oriented cover situations in daily life. Examples of societies
behaviors such as delaying gratification, planning, with high uncertainty avoidance are Singapore and
and making investments for the future. Singapore Switzerland. Societies with low uncertainty avoid-
and Switzerland are the examples of societies with ance include Russia and Greece.
longer time horizons, whereas Russia and Argentina 10. Work orientation is the number of hours per
are less future oriented. week and weeks per year people expect to invest
4. Time orientation is the importance nations and in- in work versus leisure, or other nonwork activi-
dividuals attach to time. People with an urgent time ties. American corporate professionals typically
orientation perceive time to be a scarce resource work about fifty-five hours per week, take for-
and tend to be impatient. People with a casual time ty-five-minute lunch breaks, and go on two weeks
orientation view time as an unlimited and unend- of vacation. Across all types of U.S. workers, the
ing resource and tend to be patient. Americans average workweek for fulltime employees is 41.5
are noted for their urgent time orientation. They hours, the twenty-fifth longest among 37 countries
frequently impose deadlines and are eager to get studied in one survey. Columbia has the longest av-
started doing business. Asians, Mexicans, and Mid- erage workweek of 49.8 hours, with Denmark has
dle Easterners, in contrast, are patient negotiators. the shortest average workweek (37.2 hours) among
5. Humane orientation is the degree to which a soci- the 37 countries studied.18 (These are the results
ety encourages and rewards, and should encourage of one study about average workweeks, and other
and reward, individuals for being fair, altruistic, and studies might have slightly different results.)
caring to others. Egypt and Malaysia rank high on How might a manager use information about dif-
this cultural dimension, and France and Germany ferences in values to become a more effective leader?
rank low. A starting point would be to recognize that a person’s
6. In-group collectivism is the degree to which indi- national values might influence the person’s behavior.
viduals express, and should express, pride, loyalty, Assume that a leader wants to influence a person with
and cohesiveness in their organizations and fami- a low power distance orientation to strive for superior
lies. Asian societies emphasize collectivism, as do performance. The low-power person will not spring
Egypt and Russia. One consequence of collectivism into action just because the boss makes the suggestion.
is taking pride in family members and the organiza- Instead, the leader needs to patiently explain the per-
tions that employ them. sonal payoffs of achieving superior performance. An-
7. Gender egalitarianism is the degree to which a other example is a leader who wants to improve quality
culture minimizes, and should minimize, gender and therefore hires people who value collectivism. A
inequality. European countries emphasize gender backup tactic would be to counsel people who value in-
egalitarianism, and so do the United States and dividualism on the merits of collective action.
Canada. South Korea is an example of a country A useful reminder to leaders about how cultural
that is low on gender egalitarianism and is male values influence their behavior stems from an exhaus-
dominated. This stereotype, however, may be less tive study of follower traits and cultural values on the
true today than in the past. effects of leadership behavior.19 The cultural values of
group members might influence how the leader works
8. Power distance is the degree to which members of
with them, but personality traits still have a major im-
a society expect, and should expect, power to be dis-
pact. For example, a highly conscientious worker from
tributed unequally. Individuals who accept power
any culture will be willing to put in extra effort, and
and authority expect the boss to make the major
will not require frequent follow-up by the leader to sus-
decisions. These same individuals are more formal;
tain high performance.
however, being formal toward people in positions
Leadership Self-Assessment Quiz 14-1 will help you
of authority has decreased substantially throughout
think about how values can moderate (or influence)
the world in recent years. Examples of societies that
work performance.
Charting Your Cultural Value Profile

Instructions: For each of the ten value dimensions, circle the number that most accurately fits your standing on the
dimension. For example, if you perceive yourself to have a “high humane orientation,” circle the 7 on the fifth dimension.
1. Low performance orientation High performance orientation

1 2 3 4 5 6 7
2. Low assertiveness High assertiveness
1 2 3 4 5 6 7
3. Casual time orientation Urgent time orientation
1 2 3 4 5 6 7
4. Low future orientation High future orientation
1 2 3 4 5 6 7
5. Low humane orientation High humane orientation
1 2 3 4 5 6 7
6. In-group individualism In-group collectivism
1 2 3 4 5 6 7
7. Low gender egalitarianism High gender egalitarianism
1 2 3 4 5 6 7
8. Low power distance High power distance
1 2 3 4 5 6 7
9. Low uncertainty avoidance High uncertainty avoidance
1 2 3 4 5 6 7
10. Low work orientation High work orientation
1 2 3 4 5 6 7
Scoring and Interpretation: After circling one number for each dimension, use a marker, pen, or pencil to connect the circles;
this gives you a profile of cultural values. Do not be concerned if your line cuts through the names of the dimensions.
Compare your profile to others in class. Should time allow, develop a class profile by computing the class average for each
of the ten dimensions and then connecting the points. If the sample size is large enough, compare the cultural value profiles
of Westerners and Easterners.
One possible link to leadership development is to hypothesize which type of profile would be the most responsive and
which would be the least responsive to your leadership.
the essence of cultural sensitivity in these words: “You

Cultural Sensitivity don’t need to have lived in five countries and learned
five languages to be successful across borders. You do
need to be thoughtful and self-aware, and you need to
Learning Objective 14.3 Summarize the contribution of
be willing to take that leap into the unknown.”20
cultural sensitivity to leadership effectiveness.
Five aspects of cultural sensitivity are described
next.
Some managers are more effective at leading diverse
groups than others. The traits and behaviors described 1. Recognition of nuances in customs. A person
in Chapters 2 through 4 should equip a person to lead with cultural sensitivity will recognize certain nu-
diverse groups. In addition, cultural sensitivity, certain ances in customs that will help build better relation-
specific global leadership skills are essential for inspir- ships with work associates from another culture.
ing people from cultures other than one’s own. Global Information about appropriate leadership behavior,
leadership skills encompass so many behaviors that or good etiquette, in different culture is presented
they receive a section of their own. in Figure 14-2.
Leaders, as well as others, who are attempting to Another aspect of cultural sensitivity is be-
influence a person having a different culture, must be ing appreciative of the subtle differences between
alert to possible cultural differences. Thus, in a foreign and among cultures. Leadership Self-Assessment
country the leader must be willing to acquire knowl- Quiz 14-2 gives you an opportunity to reflect on
edge about local customs and learn to speak the native your own appreciation for cross-cultural situations.
language at least passably (unless the company has 2. Being a multicultural worker. Cultural sensitivity
an English-only policy on the job). A cross-cultural is also important because it helps a person become
leader must be patient, adaptable, flexible, and will- a multicultural worker. Such an individual is con-
ing to listen and learn. All of these characteristics are vinced that all cultures are equally good and enjoys
part of cultural sensitivity, an awareness of and a learning about other cultures. Multicultural work-
willingness to investigate the reasons why people of ers and leaders are usually people who have been
another culture act as they do. Transcultural special- exposed to more than one culture in childhood. (Re-
ist and Brandeis professor, Andy Molinsky, captures fer to Leadership Self-Assessment Quiz 12-2, about
Positive Behaviors
• Demonstrate empathy by listening carefully to employees with different experiences and perspectives. Careful eye
contact will help show empathy.
• Show that you care about the other culture by learning what is important to them, such as asking about the national and
local soccer teams in most countries and cities.
• Know where the country you are visiting is located; know name of the city in which the business interaction is taking
place, and pronounce it correctly.
• Define acronyms, slang and jargon, such as explaining that “EBITDA” means earnings before interest, taxes, depreciation,
and amortization.
• Emphasize how everybody’s job is important to the team.
Negative Behaviors
• Touching and hugging employees without first knowing that such behavior is acceptable.
• Suggesting that the business practices from your country are superior to those of the country you are visiting.
• Display an individualist approach rather than showing humility and being group-oriented in most countries.
• Emphasizing the importance of financial incentives in motivating people.
Figure 14-2 Suggestions for Engaging in Successful Cross-Cultural Leadership Interactions.

Sources: Several of the ideas are adapted from Gayle Cotton, “Do This, Not That When Doing Business Overseas,” www.cnbc.com, April 8,
2013, pp. 1–5; Tina Smagala, “Empathy a Critical Skill for Leaders to Have,” Democrat and Chronicle, January 21, 2014, p. 5B.
cross-cultural relations.) Being multicultural helps to new team members, so the team members feel
one be accepted by a person from another culture. comfortable clarifying their own pronouns.
The concept of a multicultural worker also refers to What constitutes acceptable personal appear-
an employee who identifies with two more cultures, ance and behavior varies considerably across cul-
such as a graphics designer born in Japan, who tures. Grooming, office attire, eating habits, and
speaks Japanese at home and works in the United nonverbal communication may deviate significantly
States. Because multicultural workers can readily from the U.S. standards. Many workers around the
relate to people from other cultures, they are well- world may perceive American workers as over-
suited to the global workplace.21 friendly, aggressive, or rude.
Sensitivity is the most important characteris- A key item in personal appearance is choosing
tic for leading people from other cultures because appropriate attire when working in another culture.
cultural stereotypes rarely provide entirely reliable Cultural sensitivity helps you detect what type of
guides for dealing with others. An American man- clothing is appropriate. In some countries wearing
ager, for example, might expect Asian group mem- flip-flops to the office would be considered unac-
bers to accept the manager’s directives immediately ceptable. Many faux pas are possible, including that
because Asians are known to defer to authority. many Hindus in India may be offended by a finely
Nevertheless, an individual Asian might need con- tooled leather belt and briefcase because steers have
siderable convincing before accepting authority. religious significance. In some parts of Asia, white
3. Recognizing potential problems of cultural mis- is the color of mourning. A cross-cultural guideline
understanding. Problems of cultural misunder- for professionals is that a dark, well-made business
standing leaders should be aware of cluster in five suit and conservative accessories such as ties and
areas.22 Language differences create problems be- simple jewelry are acceptable for business around
cause U.S. workers (most of whom are monolingual) the world.23
can become frustrated by coworkers’ accents and A frequently occurring area of cultural mis-
limited English skills. Non-English speakers may understanding is the importance of punctuality
feel that they do not fit well into the team. Differ- in terms of arriving to work and to meetings at a
ences in religion are the source of many misunder- specified time, and submitting work at an agreed
standings. In many cultures, religion dominates life upon dates. “On time” has different meanings in
in ways that Americans find difficult to comprehend. different cultures, so it is important for the leader
Work habits vary enough across cultures to create to be very specific about starting times and due
friction and frustration. Employees in some cul- dates. In a culture with lax attitudes toward com-
tures are unwilling to spend personal time on work. pleting projects on time, it is helpful to ask for
Problems can also stem from office rituals, such as needed work early than really needed. It is also im-
having coffee or tea together during work breaks, or portant to explain why Western-style punctuality is
singing songs together at the start of the workday. important.24
Gender roles are changing rapidly in the United Generational differences are another manifes-
States, and they may be different from those in dif- tation of cultural differences, quite often within a
ferent countries. Women in many countries may not leader’s national culture. For example, young peo-
have the same independence or access to education ple typically want more frequent recognition and
and higher-level jobs as American women. Workers rewards as well as flexible scheduling. Older people
from various countries may therefore have trouble might want more deference to their knowledge and
accepting the authority of an American manager experience.
who is female. Some countries make assuming dif- 4. Flexibility in dealing with others. Cultural sen-
ferent gender roles and/or having a same-sex sex- sitivity is enhanced by cultural training, and also
ual orientation illegal, while in the United States, by simply listening carefully and observing. A key
it is illegal to discriminate on the basis of gender principle is to be flexible when dealing with people
or sexual orientation. Employees across the gen- from other cultures. Cultural sensitivity is also en-
der continuum can face significant discrimination hanced by asking questions, such as whether it is
within the United States and abroad. In order to en- reasonable to expect people to work on Saturday
sure an inclusive and welcoming work environment and Sunday. When cross-cultural issues about per-
for all employees, thoughtful consideration should formance arise, the leader/manager is advised to
be given to issues like apparel, respectful personal ask: “My job requires that I manage your perfor-
pronoun usage, and gender-neutral restrooms. For mance. Your job is to meet or exceed our perfor-
example, identify your own personal pronouns (for mance standards. How can I help you do that?”25
example, she/her/hers) when introducing yourself
5. Eliciting ideas and giving critical feedback. Two senior colleagues have provided their input. Fur-
more areas in which cross-cultural communication thermore, in some cultures, such as Scandinavian
can break down are in eliciting ideas from subordi- countries, workers tend to wait until they have care-
nates and providing them feedback. Cultural norms fully developed an idea for fear of seeming foolish.
about expressing ideas vary across cultures. Team In a culture that that accepts half-processed (or
members from relatively egalitarian cultures, such Tweet-like) ideas, such as the United States, many
as the United States, may be accustomed to voicing workers will express ideas that they have carefully
their candid opinions and ideas. In contrast, team reasoned.
members from more hierarchical cultures such as Giving critical feedback presents transcultural
Japan and China, tend to speak up only after more challenges because feedback is perceived differently
My Appreciation for Cultural Differences

Instructions: Indicate how comfortable you would feel in the following circumstances: very uncomfortable (VU);
uncomfortable (U); neutral (N); comfortable (C); and very comfortable (VC).
VU U N C VC
1. Working on a team with men and women and transgender 1 2 3 4 5

people.
2. Coaching a team or club when all the members are of a dif- 1 2 3 4 5
ferent sex or sexual orientation than myself
3. Having a person who is transgender or gender non- 1 2 3 4 5
conforming for a boss
4. Having a person of a different race for a boss 1 2 3 4 5
5. Having a person of a different gender for a boss 1 2 3 4 5
6. Having an age difference of more than thirty years between 1 2 3 4 5
my boss and me
7. Having dinner with someone who eats what I consider to be 1 2 3 4 5
a pet
8. Having dinner with someone who eats what I consider to be 1 2 3 4 5
a repulsive animal or insect
9. Working alongside a teammate who I know is HIV positive 1 2 3 4 5
10. Working alongside a teammate who has been convicted of a 1 2 3 4 5
felony
Total score:
Scoring and Interpretation:

• 40–50: You are highly appreciative and flexible in terms of working with a broad spectrum of people. These attitudes
should help you be an effective multicultural leader.
• 21–39: Your appreciation for working with people different from yourself is within the average range. If you learn to be-
come more tolerant of differences, you are more likely to become an effective multicultural leader.
• 10–20: You may be experiencing difficulties in working with people quite different from yourself. As a consequence, your
effectiveness as a multicultural leader might be hampered. If you seek out more diverse cross-cultural experiences, you
are likely to become more tolerant of differences.
Positive Cross-Cultural Experiences in the Workplace

Organize into brainstorming groups to identify at least six completed your brainstorming, attempt to draw conclusions
positive cross-cultural experiences you have observed in from the findings. Comparing the results of your group with
the workplace, or would like to observe. Take an expansive those of other brainstorming groups in the class will be help-
view of cross-cultural experiences to include many types ful in drawing conclusions because you will have more data
of demographic factors such as wheelchair use, visual at your disposal.
status, and ethnic, racial, and age groups. After you have
depending somewhat on the culture. Executives implication that English is the superior language. Fur-
from more individualistic and task-oriented cul- thermore, some businesspeople may not feel comfort-
tures such as the United States and Canada, usu- able speaking about complicated topics in English if
ally perceive critical feedback as an opportunity for their English-speaking ability is not strong. One ap-
personal development, and therefore as advanta- proach the leader can take to demonstrate cultural sen-
geous. People from more collectivistic and relation- sitivity in this area is to emphasize that English-only
ship-oriented cultures might feel uncomfortable in policy applies mostly to formal meetings, and want-
receiving critical feedback, particularly in a group ing to listen to the sound of another language at other
setting.26 (Despite cultural differences, the leader is times. Insisting that workers speak English during in-
advised to apply in any culture, one of the most ba- formal interactions is an Equal Employment Opportu-
sic human relations principles: Praise in public, and nity Commission (EEOC) violation.29 Also, if the leader
criticize in private.) speaks another language well, a few words in that lan-
guage can be exchanged before the formal meeting gets
started.
The English-Only Policy and Cultural Should a company adopt an English-only policy,
Sensitivity it is strongly recommended that the leadership team
To facilitate communication in global enterprise, a spearhead assessments in English skills and training
growing number of companies have declared English for all nonnative speakers. A rule of thumb is that ap-
as the official language for conducting business. For proximately 3,500 words of English are sufficient for
example, Honda Motor Company switched its official conducting business in the language. (A naïve aspect
corporate language for international communications of this rule of thumb is that knowing 3,500 nouns
within the company to English in 2020. English has and adjectives is not sufficient. You also need to know
been a key part of its operations for several years. The how to conjugate verbs.) Language training, which
decision to make English the corporate lingua franca might include apps, the Internet, and CDs, should be
recognizes the global presence of the company.27 held during work hours. An accessible on-site location
A key argument for an English-only policy in should be available.30
companies involved in cross-cultural activity is that Leadership Skill-Building Exercise 14-2 focuses on
multilingualism without restriction interferes with ac- profiting from cross-cultural experiences.
complishing business goals.28 Without clearly under-
stood communication, sales are lost, physical accidents
occur, and post-merger cultures are difficult to integrate.
(The accidents might occur with respect to misunder- Global Leadership Skills
standing safety directions or not taking precautions.)
Many businesspeople from all over the world are proud Learning Objective 14.4 Explain how global leadership
of their ability to speak English that tends to minimize skills contribute to leadership effectiveness.
negative attitudes toward an English-only policy.
Despite the general acceptance of English as the In general, global leadership skills refer to the ability
language of business, problems of cultural sensitiv- to exercise effective leadership in a variety of countries.
ity remain. Some people may regard the policy as an The definition stems from the idea that the essence
affront to their cultural identity and may resent the of global leadership is the ability to influence people
Global Leadership Skills 377
who are dissimilar to the leader and stem from differ- in Johannesburg, South Africa, would be culturally
ent cultural backgrounds.31 Such skills would there- adventurous.
fore include the concepts already reviewed of cultural A study demonstrated that deficits in emotional
sensitivity and being a multicultural worker. Under- intelligence contributed to executive failure on assign-
standing the culture from another country is also im- ments in Latin America, Europe, and Japan. 34 Being
portant. Here, we look at global leadership skills from able to read emotions is particularly helpful when eval-
several perspectives: a general model of global leader- uating how well the person from another culture is ac-
ship skills, success factors in international positions, cepting your propositions.
motivating workers in different cultures, and resolving Tolerance for ambiguity is important for leaders in
cross-cultural conflict. Another topic is understanding general, and especially important for developing global
whether a leadership or management practice will be leadership skills. Every country the leader works in
effective in another culture. represents a new way of doing things, so the leader has
to work with only general guidelines. A leader from an
American company might be visiting a South Korean
General Model of Global Leadership Skills affiliate. The leader should probably reflect, “South Ko-
Global leadership skills are so important that they reans have high respect for authority, and at the same
improve a company’s reputation and contribute to a time have a strong work ethic. So how far should I
sustainable competitive advantage.32 Excellent global go in asking questions? They might expect me as the
leaders have a leadership style that generates supe- leader to have all the answers. Yet at the same time,
rior corporate performance in terms of four criteria: they probably want to display their knowledge.” Ask-
(1) profitability and productivity, (2) continuity and ing Korean managers questions before the presentation
efficiency, (3) commitment and morale, and (4) adapt- might be a good idea.35
ability and innovation. Another area where tolerance for ambiguity is
Excellent global leaders are able to understand a success factor lies within providing leadership to
complex issues from the four perspectives just men- cross-cultural teams. One of the more pronounced
tioned and to achieve the right balance. For example, cross-cultural differences is that various members of
when a company is facing a mature market, it might the team nay have differing attitudes toward hierar-
be necessary to invest more effort into being innovative chy and authority (or power distance). Team members
than into achieving high profits. from some cultures may have difficulty with the flat
The global leader must tap into a deep, universal structure of most teams. If team members defer to a
layer of human motivation to build loyalty, trust, and higher-status team member, their behavior will be re-
teamwork in different cultures. Universal needs are garded as appropriate when most of the team derives
found among people in all cultures; for example, both from a hierarchical culture. In contrast, team mem-
Dominican Republicans and Inuit want to be part of a bers who defer to authority may damage their stature
group. Another example of a universal need is to have and credibility if most of the team comes from a cul-
meaning in the work one performs. Meaningful work ture of low power distance (egalitarian). One manager
would therefore be another universal need, with a large of Mexican heritage who belonged to a cross-cultural
percentage of people wanting to perform work they team lamented:
consider to be relevant. People vary considerably in In Mexican culture, you’re always supposed to be
what they regard as meaningful work, with some people humble. So, whether you understand something
thinking that producing pharmaceuticals is meaningful or not, you’re supposed to put it in the form of a
while others think the same for producing video games. question. You have to keep it open-ended, out of
respect. I think that actually worked against me,
Success Factors in International because the Americans thought I really didn’t know
Management Positions what I was talking about. So, it made me feel like
they thought I was wavering on my answer.36
A study was conducted of success factors in interna-
tional management positions. Two traits were specif- A potential leadership intervention to the problem
ically related to success in conducting international of status and hierarchy is to talk about the problem in
business: sensitivity to cultural differences and being advance, and to encourage behavior that will fit most
culturally adventurous. 33 Cultural sensitivity has al- team members. The team leader might mention several
ready been described. The adventurous aspect refers times that the structure is flat, and that all team mem-
to a willingness to take chances and experiment with bers have an equal voice. Because cultural values con-
a new culture. A Mexican-American from Phoenix, trol behavior so strongly, the message will have to be
Arizona, who volunteered for a six-month assignment repeated frequently.
A confusing skill issue for many international work- managers from Japanese, German, and American cul-
ers is the importance of having a good command of a tures. All participants had been educated by business
second language. Part of the confusion comes from the programs in their cultures and were currently working
fact that English has become the standard language of for companies in their cultures. Participants completed
business, as well as technology, engineering, and sci- surveys about resolving conflicts over different ap-
ence. However, when you are trying to influence a per- proaches to resolving a business problem.
son from another culture, you are more influential if A major finding of the study was that Japanese,
you can speak, read, and write very well in the target’s German, and American managers tended to use differ-
language. (We assume that even with an English-only ent models when resolving workplace conflict. Half the
policy, some conversations take place outside of group variance (reason for something taking place) in choos-
meetings. Also, not every company has an English-only ing a conflict model could be accounted for by a man-
policy.) Another point of confusion is that most busi- ager’s cultural group membership. Japanese preferred
nesspeople from around the world speak English, and a status power model (using their authority). Germans
look for the opportunity to converse in English. Nev- preferred a regulations model (appealing to rules and
ertheless, a command of a second language also en- regulations), and Americans preferred an interests
hances the person’s charisma. (win-win) model.
Tinsley cautions that these cross-cultural differ-
ences may complicate the work life for expatriate man-
Motivating and Inspiring Workers agers who find themselves trying to resolve conflict in
in Other Cultures a foreign cultural system. A particular concern is that
The discussion of expectancy theory in Chapter 10 American managers may be surprised to learn that col-
provided the best general clue to motivating people in leagues from Japanese and German culture do not fa-
other cultures—figure out which rewards have high va- vor the interests (win–win) model.37
lence for them. Workers who lack basic necessities in A study conducted in Asia provides additional evi-
life would rather be rewarded with a scooter or bicycle dence that cultural values could influence which is the
than a $500 luxury fountain pen or watch. Workers will most effective. The two purposes of the research were
be motivated and inspired to the extent that need satis- to (a) examine how Chinese, Japanese, and Koreans
faction will be forthcoming. resolve an interpersonal conflict with their supervisor,
Here are a few examples of transcultural differences and (b) how cultural factors explain the differences in
in the effectiveness of rewards: Team members from conflict management styles. To obtain data, a survey
Asian cultures are more motivated by rewards that was conducted of 275 employees in the three countries.
emphasize group harmony, such as a group reward. The study found that Koreans, in comparison to the
American workers appreciate rewards for individual Chinese and Japanese, were more likely to use com-
accomplishment, but also take pride in receiving team promise to resolve conflict with their supervisor. It was
rewards. Mexican–American workers often respond also found that Japanese workers compared to their
well to financial rewards because they are family ori- Chinese and Korean counterparts were less likely to
ented, and like to send money to family members in dominate and more likely to oblige their supervisor. A
Mexico. (Again, we are presented with cultural stereo- takeaway from the study is that the preferred approach
types that work much of the time but not all the time.) to resolving interpersonal conflict is not the same in
all East Asia countries. The study also reinforced the
idea that cultural values influence an approach to con-
Resolving Cross-Cultural Conflict flict resolution. For example, the strong collective value
National culture can influence the choice of the most among Koreans might prompt them to compromise
effective method of conflict resolution. Research pro- when resolving conflict.38
vides some quantitative evidence that culture influences
which method of conflict resolution a leader or man- Understanding Which Leadership and
ager chooses, and therefore thinks might be the most Management Practices Function Well
effective. Catherine Tinsley sorted conflict–resolution
in a Specific Culture
models into three types: resolving conflict by (a) defer-
ring to status power, (b) applying regulations, and (c) A general challenge confronting the global leader is that
integrating interests. techniques that work well in one culture may not nec-
According to her observations, preference for a essarily work well in another culture. For example, in
model, or method, is influenced by culture that fil- a culture that highly respects the authority of the boss,
ters information and guides members toward a par- granting decision-making authority to the group may
ticular model. The 396 participants in the study were not be so effective. In cultures such as those of India
Leadership Initiatives for Achieving Cultural Diversity, Equity, and Inclusion 379
Gaining International and Cross-Cultural Experience Inexpensively

Gaining international and cross-cultural experience is valu- class members can acquire international and cross-cultural
able for occupying a leadership role. Learning to relate com- experience inexpensively, or at no cost. (One student doing
fortably with people from different cultures alone is useful. this exercise said she would have breakfast at IHOP [Inter-
Acquiring international and cross-cultural experience can national House of Pancakes] at least once a month!) After
be time consuming and quite expensive, such as spending the groups have identified about six specific suggestions for
three months in another country. Organize into brainstorm- gaining international and cross-cultural experience, share
ing groups of about five people to identify ways in which the results across groups.
and Japan, the manager is supposed to make most de- feature in this chapter, fits the description. His enter-
cisions. Most workers in India and Japan would there- prise crosses the globe, and he works well with team
fore consider it a sign of weakness if the manager called members and guests from many countries.
on them to make most decisions. Do Leadership Skill-Building Exercise 14-3 to sensi-
An example of how a specific management practice tize you even more to cross-cultural experiences.
might not work well in another culture comes from a
large high-technology company that had established an
innovation center in one of their U.S. offices. Most of
Leadership Initiatives for
the employees at the center were entrepreneurial, en-
gaged, and excited to come to work. As a result, many Achieving Cultural Diversity,
new-product ideas were forthcoming. One element of Equity, and Inclusion
the innovation center was open office space, in a lo-
cation removed from the main campus. Managers be- Learning Objective 14.5 Pinpoint leadership initiatives to
attain cultural diversity, equity, and inclusion.
lieved that on balance, the open, flexible workplaces
fostered collaboration and innovation.
For organizations to value diversity and inclusion, top
An attempt at using open office space at a new in-
management must be committed to it. Company lead-
novation center in China was poorly received. Open
ership should dedicate time to work personally on di-
offices were unusual in China, and the product devel-
versity and inclusion initiatives.41 Diversity initiatives
opers were puzzled by the expectation of being more
should be deep rather than superficial. A true diversity
collaborative. Instead, they continued their cultural
strategy should encourage all employees to contribute
practice of working alone at their desks, with limited
their unique talents, skills, and expertise to the organi-
interaction except for lunch and physical meetings.
zation’s operations, independent of race, gender, ethnic
Furthermore, they saw the separation from the main
background, and any other definable difference. In ad-
campus as isolating. The innovation center was eventu-
dition, leaders should take the initiative to ensure that
ally closed, enabling the workers to return to the main
many activities are implemented to support the diver-
campus.39
sity strategy. Table 14-1 lists the seven leadership initia-
Certain leadership practices are likely to work in ev-
tives for encouraging diversity that are discussed in the
ery culture, including giving people clear directions and
following text.
administering appropriate rewards for attaining goals.
A comprehensive analysis of leader–member relations,
conducted with studies from twenty-three countries, Hold Managers Accountable for
found that high-quality relationships with subordinates
Achieving Diversity
facilitated task performance in countries with different
values. The anchor values in clusters of values studied A high-impact diversity initiative is for top-level orga-
were individualistic versus collectivist.40 nizational leaders to hold managers accountable for
Who might be an example of a leader with global diversity results at all levels. If managers are held ac-
leadership skills—one person who has most of the at- countable for behavior and business changes in the
tributes described in this section? Arnold W. Donald, diversity arena, an organizational culture supportive
the Carnival CEO described in the Leader in Action of diversity will begin to develop. Metrics are essential
approximately 70 percent by men.43 Another measure

Table 14-1 Leadership Initiatives for Achieving of progress for minorities in business is that five well-
Cultural Diversity, Equity, and Inclusion
known companies, such as Lowe’s and USAA, have
1. Hold managers accountable for achieving CEOs who are Black. Also of note, 41 Fortune 500 com-
diversity. panies have women CEOs.
2. Establish minority recruitment, retention, and Efforts at recruiting a culturally diverse work force
mentoring programs. must be supported by a leadership and management
3. Conduct diversity training. approach that leads to high retention. To increase re-
4. Conduct anti-bias training. tention rates, diversity consultants advise employers
5. Avoid group characteristics when hiring for to strengthen cultural training programs, recognize
person–organization fit. employees’ hidden skills and talents, and give diversity
6. Attain diversity among organizational leaders. committees clout with top management.44 Retaining
7. Emphasize inclusive language. employees is also a function of good leadership and
management in general, such as offering workers chal-
lenging work, clear-cut goals, feedback, and valuable
rewards for goal attainment. Mentoring is a key initia-
because, “What gets measured gets done,” and there-
tive for retaining minority group members, as well as
fore becomes part of the corporate dashboard. Two
for facilitating their advancement.
current examples of this accountability are Starbucks
A study of 829 midsize and large U.S. firms found
Corp. and Nike Inc. Starbucks leadership gives top-
that college recruitment targeting minorities is an ef-
level executives more shares if the chain’s managerial
fective diversity initiative. Recruiting at historically
ranks grow more diverse over three years. Nike ties a
Black schools typically yields a group of qualified mi-
portion of executive pay to five-year goals for improv-
nority group members. The same study found men-
ing racial and gender diversity in its workforce and
toring to have an especially positive impact. Leaders
leadership positions.42
who sponsored women and minorities come to believe
Accountability for diversity results when achiev-
that through increased contact that the people they
ing diversity objectives is included in performance
mentored deserve the training and opportunities they
evaluations and when compensation is linked in part
receive.45
to achieving diversity results. Another way of making
An example of this type of initiative took place re-
managers accountable for diversity is to consider the
cently at three major investment firms, Apollo Global
attainment of diversity and inclusion a factor in being
Management Inc, Ares Management Corp., and Oaktree
promoted to a higher-level position.
Capital Management LP. The three firms committed
$90 million over ten years to partner with historically
Establish Minority Recruitment, Retention, Black colleges and universities, or HBCUs, to attract
more Black talent to the investment industry. The part-
and Mentoring Programs
nership includes mentored fellowships, a scholarship
An essential initiative for building a diverse work force program, and a virtual institute with curriculum de-
is to recruit and retain members of the targeted mi- veloped by the Wharton School.46 A bold initiative rec-
nority group. Because recruiting talented members of ommended for attracting Black candidates is to locate
minority groups and women is competitive, careful hubs, branches, second headquarters, and factories
human resources planning is required. A balanced per- where Black workers are concentrated, such as Atlanta,
spective on diversity, equity, and inclusion is that sub- Cleveland, and Detroit.47
stantial progress has been made, even if many observers To build a diverse workforce, recruiting should be
think the progress is not sufficient. Demographic com- supplemented by creating the internal escalators nec-
position of boards is one way of measuring diversity. essary to raise diverse talent from within the organiza-
The number of Fortune 500 business firms whose tion. One immediate key to establishing diversity is to
boards are more than 40 percent female and people of reskill employees so they shift into positions predomi-
color has nearly quadrupled since 2010. In 2020, the nantly white or male. An example is that 27 percent of
percentage of directors who were women or people of compensation analysts are Black, Hispanic, or Native
color rose to higher than 38 percent from 34 percent in American as compared to 15 percent of financial an-
2018. By 2021, S&P 500 companies tripled the share of alysts. Because the two types of analysts have over-
new directors who are Black, and more than doubled lapping skills, many minority compensation analysts
those who are Latino. The shift left close to 80 percent could readily develop the new skills needed to become
of the board seats occupied by White directors and a financial analyst.48
Conduct Diversity Training Leaders of diversity training exercises are cau-

tioned to guard against encouraging participants to be
Diversity training has become a widely used method
too confrontational and expressing too much hostility.
for enhancing diversity within organizations. The pur-
Companies have found that when employees are too
pose of diversity training is to bring about workplace
blunt during these sessions, it may be difficult to patch
harmony by teaching people how to get along better
up interpersonal relations in the work group later on.
with diverse work associates. Quite often the program
Sometimes the diversity trainer encourages group
is aimed at minimizing open expressions of racism and
members to engage in outrageous behavior, such as by
sexism. All forms of diversity training center on in-
having women sexually harass men so the men know
creasing people’s awareness of and empathy for people
what it feels like. Key themes of negative reactions to
who are different from themselves in some important
diversity training are charges of political correctness
way. Diversity training often emphasizes leveraging di-
and White male bashing. Another concern of diversity
versity to enhance business performance.49
training is that participants may become defensive,
Training sessions in valuing differences focus on the
thinking they are under attack for their attitudes and
ways in which men and women, or people of different
behaviors about cultural diversity.
races, reflect different values, attitudes, and cultural
A review of 178 articles found that when diversity
backgrounds. These sessions can vary from several
training was integrated into a system of other diver-
hours to several days or longer. Sometimes the pro-
sity-related activities, the outcomes were more likely
gram is confrontational, sometimes not.
to be positive, such as participants believing that they
An essential part of relating more effectively to di-
learned to interact more effectively with other cul-
verse groups is to empathize with their point of view.
tural groups. Another key finding was that programs
To help training participants develop empathy, repre-
that focus on a more general, positive, and inclusive
sentatives of various groups explain their feelings re-
approach—rather than singling out one demographic
lated to workplace issues. Leadership Skill-Building
group—may be better received by all participants.50
Exercise 14-4 gives you the opportunity to engage in an
effective diversity training exercise. Relating effectively
to coworkers who are different from you in some mean- Conduct Anti-Bias Training
ingful way adds to your interpersonal effectiveness.
Closely related to diversity training are programs to
A frequently mentioned concern about diversity
help employees discover their unconscious biases that
training is that it reinforces stereotypes about groups.
may adversely affect certain demographic and cultural
Participants are informed about group differences,
groups. Examples include being more likely to call back
such as cultural values, and tactics might be suggested
a White than Black applicant than for a second inter-
for coping with these differences—such as using more
view, and automatically not inviting a worker in their
body language when relating to Latinos.
The Diversity Circle

Some diversity trainers use the diversity circle exercise to workers were hesitant to ask him out for a beer, worrying
help workers appreciate diversity and overcome mispercep- whether he could handle alcohol. Another name for this
tions. The exercise adapts well for classroom use. Form a exercise is “How I Felt Different” because each person de-
group of about ten students. Arrange your chairs into a cir- scribes feeling different from others at one point in life.
cle, and put one additional chair in the center of the circle. A An equally effective alternative to this procedure is for
group member who feels diverse in any way volunteers to sit each class member to come up in front of the class to de-
in the center chair and become the first awareness subject. scribe a significant way of feeling different from others. After
Because most people are diverse in some way, most people each class member has presented, a discussion might be
are eligible to occupy the center chair. held of observations and interpretations.
The person in the center tells the others what it felt like What lessons did you learn about interpersonal relations
being diverse or different, and how people have reacted to from this exercise that will help you be a more effective
the diversity. For example, an Inuit described how fellow leader?
sixties to join a team on a high-tech venture. Anti-bias designed to help employees understand the customs,
training is a program to help employees discover their traditions, and beliefs of another culture. Foreign lan-
unconscious biases that may adversely affect certain guage training is often included in cultural training.
demographic and cultural groups. A major thrust to cross-cultural training is improv-
An unconscious bias is a hidden, reflex-like prefer- ing internal and external communications, including
ence that can shape a person’s view of the world. Such overcoming cross-cultural communication barriers.
biases also can shape diversity by rejecting people for Improved communication would include knowing how
certain assignments and not valuing their ideas. For ex- to build trust in different cultures, and how to give crit-
ample, a project manager at a mine in northern Alaska icism. In many cultures trust is built by slowing devel-
might not give a key assignment to an Inuit because the oping a relationship though such means as frequent
manager has an unconscious bias suggesting that an exchange of polite messages. Feedback differences
Inuit has a weak work ethic. include the tendency for French managers to provide
Facebook and Google make extensive use of uncon- direct, blunt feedback. American and British managers
scious bias training.51 The Facebook class concentrates tend to accentuate the positive aspects of performance,
on identifying and neutralizing racial, age, gender, and and softly introduce negative feedback.54
other forms of bias that might be present in the work- The multicultural leader needs to know that English
place. More recently Facebook has also focused on po- is spoken differently in the United States, Great Britain,
litical bias when the company was accused of giving too Australia, and South Africa, among other countries.
little space on its website to conservatively toned news.52 Four examples follow:
Unconscious bias training usually includes admin-
• Britons say “keen,” whereas Americans say
istration of the Implicit Association Test that is based
“enthusiastic.”
on the logic of describing what comes to mind when
a specific demographic group is mentioned. For exam- • Britons say “to table (an idea),” whereas Americans
ple, “What associations do you make to Puerto Rican?” say “to put (an idea) out for discussion.”
Research conducted at Google indicates almost • Britons say “to put (an idea) aside,” whereas Ameri-
everyone is a little bit sexist or racist. 53 Training can cans say “to table (an idea).”
help us become aware of our unconscious biases and • Britons say “lift,” whereas Americans say “elevator.”
make appropriate adjustments. For example, a leader
• Britons say “sorry” when they accidentally get in
might have the bias that Chinese workers want to oc-
your way, whereas Americans say “excuse me.”55
cupy strictly technical roles, and are therefore not well
suited for supervisory roles. After training, the leader Cross-cultural training usually includes information
would recognize that many Chinese-American workers about cross-cultural bloopers such as not taking off your
are interested in and skilled at supervisory positions. shoes when visiting a Japanese work associate at the
After anti-bias training people may not change their person’s home. In addition, the art of facial cheek-kiss-
attitudes completely, but they may be willing to explore ing is an amusing, yet important, aspect of cross-cultural
if their perceptions are correct. Favorable experiences training. Americans favor fist bumps or handshakes for
can then lead to a change in attitude. In the example of greetings, yet in most countries outside of Asia, light
Chinese people, after observing Chinese people as man- kisses on the cheek of the other person are more ac-
agers, the leader would not think, “I guess I was wrong. ceptable. The kisses are given to people of the same and
A lot of Chinese workers are good at management.” opposite sex, or other gender identity, for greeting pur-
A major concern about anti-bias training is that just poses. Yet kissing a business acquaintance of the oppo-
because a person has an unconscious or hidden bias, it site sex is even more expected and appropriate.
does not always follow that the bias will lead to discrim-
ination. Take Todd, the owner of a construction com-
pany. His hidden bias is that Mexican-Americans are Avoid Group Characteristics When Hiring
the most reliable and skilled construction workers. Yet for Person–Organization Fit
this bias does not stop Todd from hiring other ethnic An important consideration in employee recruitment
and racial group members for construction positions. and hiring is to find a good person–organization fit, the
compatibility of the individual with the organization.
Conduct Cross-Cultural Training The compatibility often centers on the extent to which a
person’s major work-related values and personality traits
For many years, companies and government agencies fit major elements of the organization culture. Following
have prepared their managers and other workers for this idea, a person who is adventuresome and prone to
overseas assignments. The method frequently chosen is risk taking would achieve highest performance and sat-
cross-cultural training, a set of learning experiences isfaction where adventuresome behavior and risk taking
are valued. Conversely, a methodical and conservative Emphasize Inclusive Language

individual should join a slow-moving bureaucracy.
We have already mentioned several times how
Many business firms today are investing time and
leaders can help create a more culturally diverse and
effort into recruiting and hiring employees who show
inclusive organizational culture by avoiding terms
a good person–organization fit. A selection strategy of
that might make anybody feel excluded. An example is
this type can lead to a cohesive and strong organiza-
that some people feel rejected when sexes or genders
tional culture. The danger, however, is that when em-
are divided into only two categories. Yet a leader can
ployers focus too sharply on cultural fit in the hiring
go beyond these subtle nuances of language. A strong
process, they might inadvertently discriminate against
leadership initiative for fostering a diverse, equitable,
protected classes of workers. Specifically, the hiring
and inclusive culture is to emphasize phrases that spe-
manager might focus on superficial aspects of confor-
cifically welcome every organizational member as well
mity to culture, such as physical appearance and which
as other stakeholders. Most charismatic leaders find
schools the candidates attended.
this to be a natural communication style.
The selection of candidates who look alike and act
Two corporate communication specialists, Noah
alike conflicts with a diversity strategy. Leaders can take
Zandon and Lisa Shalett, have identified three ways
the initiative to guard against this problem. The way
inclusive leaders talk and send written messages.
to circumvent it is to avoid using group characteristics
First, they use audience-centered language. To be au-
(such as race, sex, ethnicity, or physical status) in assess-
dience-centered, the leader needs to understand the
ing person–organization fit. The alternative is to focus
needs of the group members, and personalize the lan-
on traits and behaviors, such as intelligence or ability
guage. For example, members of the HR department
to be a team player. Leaders at Microsoft and Netflix
have heard frequently enough that they are a staff
emphasize hiring intelligent people only, because bright
rather than a line function, and might find the refer-
people fit their culture best. Being intelligent is an indi-
ence to be annoying. Use second-person pronoun “you”
vidual difference rather than a group characteristic.
frequently to take the focus off yourself and bring the
audience into your message.
Attain Diversity Among Second, demonstrate subject matter expertise, such as
Organizational Leaders providing relevant data. At the same time show a willing-
ness to process new data that will enhance your expertise
To achieve a multicultural organization, firms must and incorporate new perspectives. An automobile mar-
also practice leadership diversity—that is, have a cul- keting manager might say, “My research shows that we
turally heterogeneous group of leaders. Many global are losing a little market share because our dashboards
firms have already achieved leadership diversity with are too complicated to use for some customers. What in-
respect to ethnicity. Sex is another key area for lead- sights have you gathered on this problem?” Third, be au-
ership diversity, with many organizations today hav- thentic. If you gain the trust of group members, you will
ing women in top executive positions. An organization convey that you really care they feel included.57
with true leadership diversity also has a heterogeneous Another approach to emphasizing inclusive language
group of leaders in such positions as supervisors, mid- is to introduce humble phrases into a conversation, which
dle managers, and team leaders. McDonald’s Corpora- creates the space for others to contribute, and therefore
tion and General Motors Corporation are two examples feel included. To include more diverse opinions, a leader
of well-known companies whose C-level executives might say, “Our team has worked hard at fine-tuning the
include minority group members and women. One of company vision. But please tell me how we can make our
the executive positions at McDonald’s is chief diversity vision even more attractive to more people.”58
officer, a practice also followed by several other large An effective way to make people from diverse orga-
business firms including PepsiCo. nizational functions feel included rather that excluded
Top-team diversity appears to be associated with is to minimize negative categorization of work roles.
the financial success of the enterprise. A study of 180 Examples of exclusionary terminology include a divi-
firms conducted by the consulting firm, McKinsey & sion president referring to “nontechnical staffers,” or
Company, measured diversity in terms of women and “nonbusiness types.” Another exclusionary term as per-
foreign nationals on senior teams. Firms in the top ceived by many people is “foreign workers.” “Foreign”
quartile of executive diversity, in comparison to the sometimes connotes different in a negative way, such
bottom quartile, had a 53 percent higher return on eq- as having a foreign element in a tube of medicine or
uity. The same firms had scored 14 percent higher on in the ear canal. A preferred term would be “workers
earnings before interest and taxes.56 (Another interpre- from other countries.” Mentioning the contribution of
tation of these results is that more prosperous firms are all team members is inclusive, in contrast to mention-
more willing to recruit diverse leaders.) ing only the contribution of one or two.
The final suggestion is the easiest of all to execute. 3. Selective blind screening. A favorable development
The inclusive leader says frequently, “Welcome every- for creating a diverse workforce is for recruiters
body” in speaking, writing, and sign language. and hiring managers not to know or suspect the
gender (or sex), race, or ethnicity of the candidate.
The risks are when leaders make an exception to
Be Aware of Potential Diversity the practice for certain position, such as in recruit-
Danger Zones ing a chief marketing officer because you purposely
Despite the importance of initiatives to accomplish want to hire a person from a specific demographic
diversity, equity, and inclusion, leaders must be aware group for that position.
of those initiatives that carry legal risk, and might also 4. Implicit awareness tests. As described above in an-
be considered unfair. As described by employment law ti-bias training, the results of these tests might be
attorney Jonathan A. Segal, these risks are summarized accurate in detecting bias. The problem is that the
next. tests may not be valid as predictors of biased job
behavior toward the individual.
1. Imposing caps on experience. Some employers im-
pose caps on job experience to attract minorities 5. Demographic or cultural diversity as a basis for
and women who might lack extensive experience. hiring decisions. Outright rejection of candidates
As a result, older workers with more experience who fall outside the targeted demographic or cul-
might be excluded. tural group is job discrimination. Yet it is possible
to hire people with attributes related to the group
2. Targeted applicant pools. Target recruiting, such as
status that are a true job requirement. For exam-
toward affected minorities and women, should be
ple, the ability to speak Spanish fluently might be
conducted at the same time as general recruiting.
a requirement for an emergency room supervisor.
This approach helps avoid the appearance of bias
As a result of the requirement, more Latinos are
against candidates who were qualified but not a
likely to apply for the position.59
member of the targeted groups.
Reader’s Roadmap
So far, we have studied the nature of leadership; the attributes, behaviors, and styles of leaders; the ethics and social
responsibility of leaders; and how leaders exert power and use politics and influence. We then studied techniques
for developing teamwork as well as motivation and coaching skills. After studying creativity and innovation as part of
leadership, we focused on communication skills as they relate to leadership. We then shifted our attention to strategic
leadership, after which we discussed another broad challenge facing leaders: dealing with cultural diversity within
the organization and across borders. Next, we deal with the capstone topic of developing leaders and choosing
successors for executives.
Summary
The modern leader must be multicultural because force. The ethical and social responsibility goals of
corporate success, profit, and growth depend in- leaders and their organizations include providing ad-
creasingly on the management of a diverse work equately for the members of the diverse work force.
Managing for diversity brings a competitive ad- Choosing appropriate attire for conducting busi-
vantage to the firm in several ways. Marketing can ness in another culture requires careful observation.
be improved because a representational work force A key principle is to be flexible in dealing with peo-
facilitates selling products and services, and a good ple from other cultures. Transcultural differences
reputation for diversity management may attract are often found in the best way to elicit ideas from
customers. Companies with a favorable record in work associates and give feedback.
managing diversity are at an advantage in recruit- To facilitate communication in international
ing and retaining talented minority group members. enterprise, many companies have declared English
Managing diversity also helps unlock the potential as the official language for conducting business.
for excellence among employees who might oth- Despite the general acceptance of English as the
erwise be overlooked. A heterogeneous work force official language of business, problems of cultural
may also offer an advantage in creativity and prob- sensitivity remain, and speaking a second language
lem solving. Diversity and inclusion programs also well still gives the leader an edge.
help local economies partly because of the reliance Global leadership skills help improve a compa-
on minority suppliers, and team performance is of- ny’s reputation and contribute to a sustainable com-
ten enhanced. Diversity can enhance team perfor- petitive advantage. Excellent global leaders have a
mance because diverse backgrounds provide diverse leadership style that generates superior corporate
information, knowledge, and perspectives useful in performance. Among the success factors for inter-
solving problems. Cultural diversity can also make national management positions are cultural sensi-
more effective use of human capital. tivity; cultural adventurousness (or being a global
To influence, motivate, and inspire culturally di- explorer); emotional intelligence; and tolerance
verse people, the leader must be aware of overt and for ambiguity. Having a command of a second lan-
subtle cultural differences. Differences in cultural guage is helpful for influencing a person from an-
values help explain differences among people. Ten of other culture. An effective way of motivating people
these values are as follows: (1) performance orienta- from another culture is to figure out which rewards
tion, (2) assertiveness, (3) future orientation, (4) time have a high valence for them. A general challenge
orientation, (5) humane orientation, (6) in-group confronting the global leader is that techniques that
collectivism, (7) gender egalitarianism, (8) power work well in one culture many not necessarily work
distance (acceptance of formal authority), (9) uncer- in another culture.
tainty avoidance, and (10) work orientation. Top management commitment to valuing di-
Cultural sensitivity is essential for inspiring peo- versity is clearest when valuing diversity is embed-
ple from different cultures. Part of this sensitivity ded in organizational strategy. Specific leadership
is the leader’s willingness to acquire knowledge initiatives for valuing diversity can be divided into
about local customs and to learn to speak the na- eight categories: (1) hold managers accountable for
tive language. A person with cultural sensitivity will diversity; (2) establish minority recruitment, reten-
recognize certain nuances in customs that help him tion, and mentoring programs; (3) conduct diversity
or her build better relationships with people from training; conducting anti-bias training; (4) conduct
different cultures. Cultural misunderstandings tend cross-cultural training; (5) avoid group characteris-
to cluster in five key areas: (1) language differences, tics when hiring for person–organization fit; (6) at-
(2) religious differences, (3) work habits, (4) gender tain diversity among organizational leaders; and
roles, and (5) personal appearance and behavior. (7) emphasize inclusive language.
Key Terms
equity 365 multicultural worker 373 anti-bias training 382
multicultural leader 370 global leadership skills 376 cross-cultural training 382
cultural sensitivity 373 diversity training 381 leadership diversity 383
When working with people from another culture, members find acceptable. At the same time, at-
it is natural to focus on differences in values and tempting to appear trendy by using the latest label
behaviors to avoid mistakes, such as assuming to describe that group could irritate some mem-
that money is that person’s primary motivator. Fo- bers of that group. Two actions are recommended.
cusing on differences, however, is insufficient for First, recognize that there are very few occasions
building connections. A recommended approach when mentioning a demographic or cultural group
for building connections is to focus on similar- is necessary such as saying “Indian software de-
ities. Casual conversations will often reveal simi- velopers,” or “Black manufacturing engineers.”
larities. A representative example for an American (An exception is that HR might need to collect
visiting Europe would be to notice that the work demographic information for government statis-
associate is a strong fan of football (soccer). The tics.) Second, ask group members which term they
American could then comment that soccer is the prefer. For example, the Hispanic Association for
fastest growing sport among children in the United Professional Advancement at Xerox employee net-
States, and how professional soccer leagues are work group might prefer “Hispanic” to “Latino” or
also flourishing.60 “Latinx.” The leadership lesson is that it is insensi-
A challenge for leaders as well as individ- tive to impose labels on people created by someone
ual contributors in a multicultural organization outside their cultural or demographic group that
is using labels to describe groups that the group the outsider thinks is best.
Discussion Questions and Activities 6. Assume that a manager becomes the leader of a
division in which the vast majority of the work-
1. A wheelchair user is conducting a job search to ers are under twenty-five, such as at a restaurant
land a middle management position. Given that so chain. Would you recommend that the leader get
many companies are attempting to build a more some body piercing and tattoos to help establish
culturally diverse group of managers, should a job rapport with the division work force? Explain your
hunter who uses a wheelchair include a photo of reasoning.
in a wheelchair on their job resume? Explain your 7. Walmart has such a diverse workforce in both its
reasoning. management ranks and store associates that it ap-
2. With so much business being conducted over the pears the majority of workers are minority-group
Internet, including email, why is it important to un- members. Why do you think that Walmart receives
derstand cross-cultural differences in values? such little publicity for being culturally diverse?
3. Suppose an American manager is assigned to be the 8. Should a company such as McDonald’s restau-
general manager of a division in Sweden. During rants that already has a highly diverse workforce
the first week in her position, she is confronted by and customer base require managers and franchise
a group of workers who say that because they are owners to attend diversity training? Explain your
Swedish, they do not respect rank and status. They reasoning.
insist that she should share her executive salary 9. Suppose you are a team leader and one of your
with the production and support staff. If you were team members has a strong work ethic, based on
the American manager, how would you respond? the person’s cultural values. Is it fair to assign this
4. If a business leader is regarded as charismatic by member much more work just because that person
many people in one culture, to what extent do you is willing to work longer and harder than the other
think the leader would be perceived as charismatic team members?
in many other cultures? 10. What can you do this week to help prepare yourself
5. What actions might a leader take to demonstrate to become a multicultural leader?
that that person’s interest in inclusion goes beyond
rhetoric?
Cultural Sensitivity at Pacific Pods surprised that Ava dropped by her work station.
Ava is the operations manager of Pacific Pods, a The two engage in small talks for several min-
manufacturer and distributor of the large con- utes, and then Ava says, “Do you and your neigh-
tainers. Small businesses and individuals use borhood friends play a lot of shuffle board and
these containers to store items for which they bingo? My folks and their friends do.” Shrugging
have no room in their workspace or residences. her shoulders, Gloria said, “I don’t care about
A company that owns these pods typically trans- shuffle board and bingo, Instead I text back and
ports them to a person’s workplace or home, forth with my four grandchildren.”
loads the pods, and then charges a storage fee. The next person Ava approached to display
Customers who rent a pod usually can visit the what she believed to be enhanced cultural sensi-
site of the storage company and have access to tivity was Tyler, a young accountant and wheel-
their goods. chair user. After chatting about a couple of
Revenues at Pacific Pods are growing steadily. financial ratios related to Pacific Pods quarterly
With the high cost of office space and housing in results, Ava commented, “Tyler, I have wanted
northern California, many people lack enough to tell you for a long time how much I admire
space to house all their goods. Turnover at Pacific your courage. A lot of professionals who use a
Pods is relatively low (about 15 percent per year), wheelchair would look to work at home, instead
and the workers seem to be reasonably engaged of going through the rigors of commuting. Tyler
in their work. Ava recognizes that manufactur- replied, “I’m no different from anybody else. I ac-
ing pods does not represent exciting work for all cept challenges.”
employees. Next, Ava approached Lindsay, an informa-
The workforce reporting to Ava is culturally tion technology specialist with many visible tat-
and demographically diverse, and she values toos and several body piercings. After chatting
their talent and dedication. Ava herself represents about cloud computing for a few moments, Ava
cultural diversity, with a Mexican father and a said, “Please don’t ever think that your tattoos
Chinese mother. After talking to the HR director and body piercings will ever hold you back from
and reading many articles on the subject, Ava promotions at Pacific Pods. We are an equal op-
decides that if she displayed even more cultural portunity employer.” With a quizzical look on her
sensitivity than she does now, employee retention face, Lindsay said, “Why is my body even a sub-
and engagement might be even higher. She then ject for discussion?”
embarks on an initiative to display even more Ava thought, “I think I am going to wait for
cultural sensitivity. any informal feedback about how my cultural
The first target of Ava’s enhanced cultural sen- sensitivity is working before I continue.”
sitivity is Deon, a middle-aged supervisor who is
Black. Toward the end of a conversation about Questions
recruiting more production technicians with a 1. What is your evaluation of appropriateness
better understanding of math, Ava says, “I hope and effectiveness of Ava’s cultural sensitivity
that you and your family have a great Kwanzaa initiatives?
this year.” Deon responded good-naturedly, “And 2. What suggestions can you offer Ava to be
a Happy Cinco de Mayo to you and your family.” even more effective in displaying cultural
The second person Ava approached to dis- sensitivity?
play more cultural sensitivity is Gloria, a parts 3. Explain if you found any one of Ava’s four cul-
assembler in her late sixties. Gloria is pleasantly tural sensitivity initiatives to be offensive.

One person plays the role of Ava who will attempt each were actually the recipient of Ava’s cultural sensitiv-
one of the cultural sensitivity initiatives described in ity initiatives. Other students might provide feedback
the above case. Four other students choose one of on the effectiveness of Ava’s initiatives, as well as the
the roles of Deon, Gloria, Tyler, and Lindsay. The role plausibility of the responses of the four Pacific Pods
players should react in the manner they would if they workers.
Unfiltered Expressions at Anti-Bias Training refrigerator or smart TV receiver, I’ll approach an

Amanda, an HR consultant, is conducting an on- Asian sales associate first, if possible, especially an
site workshop in anti-bias training for Ambrose Indian American or a Chinese American—because
Inc., a vehicle parts manufacturer. Ambrose was my bias is that they are smart and efficient.
not deluged with complaints about discrimi- Eric: If meet a young Black person in our
nation or limited growth opportunities for any company I am concerned that the person might
particular group. Company leadership, however, think I have White privilege because of all the
wanted proactively to foster a climate of cultural publicity on the topic. So, I am concerned that
diversity and inclusion. The CEO commented, the Black person might dislike me. I know that’s
“We are hiring Amanda as much for prevention a horrible insult, but Amanda asked us to be to-
of problems as for resolving problems that have tally honest.
taken place.” Marty: A few months ago, I was given the
After delivering a twenty-minute PowerPoint assignment of putting together a men’s basket-
presentation on the meaning of implicit bias and ball team to play in an industrial league. My
how it might impact workplace relationships, first initiative was to talk to or send texts to
Amanda gives the eleven workshop participants African-American or African guys in the com-
this assignment: “I want each of you, one by one, pany. I figure they have more interest and ability
to tell the group any bias you might possibly have. in basketball. I hope that I didn’t upset anybody
Nothing you say will be recorded on a hidden video with my comments.
and reported to management. You can therefore be Ashley: When I needed technical advice, I
as candid as you want. I want us to all learn what never ask anybody in the company over age 50.
biases might exist at Ambrose.” Although they I assume that if you are not a digital native,
showed visible signs of being nervous, the work- you won’t be helpful with a difficult technology
shop participants complied with Amanda’s request. problem.
Kurt: I’ll go first at the risk of being hated Bianca: I never thought of myself as biased,
by the other people at this training session. As a but I do have one bias. If I need something done
sales manager, when I am interviewing a candi- in a hurry, I don’t ask an obese person. I think
date for a sales position and she is a total beauty, that obese people are lazy.
I think she might not be so sharp intellectually. I Fred: When Ambrose recently announced that
apologize folks, but that’s my bias. the new CEO had an MBA from Harvard, I was
Cindy: When I’m at a physical retail store delighted. I figure that the best financial minds
purchasing something complicated like a smart have attended elite schools.
Emily: Six months ago, I had an opportunity to Amanda said, “Thanks for being so open and
transfer to one of two departments. I avoided the honest. Let’s reflect together on what we have just
department headed by a recently divorced mid- learned about bias at Ambrose.”
dle-aged male because I thought there was a possi-
bility that he would sexually harass me. Mohamed: Questions
Three weeks ago, I had to visit our affiliated ur- 1. To what extent do you think that the staff
gent-care clinic because I had cut a capillary in my members’ expression of their conscious bi-
thumb. I asked to be treated by a female nurse be- ases in a workshop accomplishes anything
cause I believe that nursing is a job for a woman. worthwhile?
Eva: I needed to add another member to my 2. Which one or two of biases revealed do you
project. I purposely avoided inviting a millennial think might be harmful to a culture of diver-
to join because I think they have poor attendance sity and inclusion at Ambrose?
records and are too self-centered. 3. If you were at this workshop, explain whether
Manfred: We had to order some new, complex or not you would express any conscious bias
AI equipment. I suggest that we order the equip- you might have.
ment from a German firm because I believe that
Germans are the best manufacturing engineers.

One person plays the role of Amanda who has a fol- the anti-bias training will help or harm Ambrose. Feel
low-up session with the group one month later. The free to confront any participant about the bias that
topic is whether the first anti-bias training session was person expressed in the first session. Perhaps you can
worthwhile. Four other students play the roles of any reach a conclusion about whether anti-bias training
of the group participants they choose to represent. should be continued at Ambrose.
Hold a candid discussion of whether you think that
To be an effective cross-cultural leader, you need to work ef- of being legally blind. She can read with visual as-
fectively with people from demographic and cultural groups sists, including reading what is on her computer
different from your own. Describe what experiences you screen. Yet paper forms are difficult for Claire to nav-
have had lately in working with and/or relating effectively igate. I telephoned Claire one night and asked her if
to a person quite different from you. If you have not had she could use my assistance in preparing her income
such an experience, take the initiative during the next week tax this year. Claire agreed, and it worked out well.
to relate meaningfully to a person quite different from you I now feel more comfortable working side by side
in terms of culture or demographic group membership. Fi- with a visually handicapped person. Also, I picked
nance major Stephanie had this to say: up some practical experience in preparing a compli-
Claire, a special education teacher, lives on my cated tax form.
block. Claire goes to work every school day in spite
Notes
1. Original story based on facts and observations 14. “About Us—Community Relations—Vendor
in the following sources: Sarah E. Needleman, Development Program—Macy’s (www1.macys.com).
“Pinterest Vows to Diversify Workforce,” The Wall © 2021 Macy’s Inc.
Street Journal, May 18, 2021, p. B4; Jo Dennis, 15. Katherine J. Klein and David A. Harrison,
“What We’re Learning as We Build a More Inclu- “On the Diversity of Diversity: Tidy Logic, Messier
sive Company,” https:newsroom.pinterest.com, Realities,” Academy of Management Perspectives,
January 16, 2020, pp. 1–5; “Inclusion and Diver- November 2007, p. 31.
sity at Pinterest,” https://newsroom.pinterest.com, 16. Yixuan Li et al, “Leveraging Age Diversity for
May 18, 2021, pp. 1–9; No Lees, “Pinterest’s Diverse Organizational Performance: An Intellectual Cap-
Workforce Helped It Design A Better Skin Tone ital Perspective,” Journal of Applied Psychology,
Filter,” engadget (www.engadget.com), January 24, January 2021, pp. 71–91.
2019, pp. 1–2. 17. Mansour Javidan, Peter W. Dorfman, May Sully de
2. “Diversity, Equity, and Inclusion Definitions Luque, and Robert J. House, “In the Eye of the Be-
(Draft),” W Research (www.washington.edu), holder: Cross Cultural Lessons in Leadership from
2021, p. 1. Project GLOBE,” Academy of Management Perspec-
3. Christian N. Thoroughgood, Katina B. Sawyer, and tives, February 2006, pp. 69–70. Similar dimen-
Jennica R. Webster, “Creating a Trans-Inclusive sions were described in Geert Hofstede, Culture’s
Workplace,” Harvard Business Review, March–April Consequences: International Differences in Work Re-
2020, pp. 114–123. lated Values (Beverly Hills, CA: Sage Publications,
4. Evan Appelbaum, “Why Your Diversity Program 1980); updated and clarified in Hofstede, “Who
May Be Helping Women, But Not Minorities Is the Fairest of Them All, Galit Ailon’s Mirror,”
(or Vice Versa),” Harvard Business Review (https:// Academy of Management Review, July 2009,
hbr.org), August 8, 2016, pp. 2–3. pp. 570–571. Dimensions 4 and 10 are not included
5. Patricia Harris, “The McDonald’s Diversity Story,” in the above research.
Guest Insights (http://views.washingtonpost.com), 18. “ Av e r a g e Wo r k We e k B y C o u n t r y 2 0 2 1 , ”
November 25, 2009, p. 1. https:worldpopulationreview.com, 2021, pp. 1–12.
6. Susan Meisinger, “Diversity: More Than Just Rep- 19. Samuel H. Matthews, Thomas K. Keleman, and
resentation,” HR Magazine, January 2008, p. 8. Mark C. Bolino, “How Follower Traits and Cul-
7. Diana Elsworth, Drew Goldstein, and Bill tural Values Influence the Effects of Leadership,”
Schaninger, “Inclusion Doesn’t Happen by Ac- The Leadership Quarterly, February 2021, pp. 1–14
cident: Measuring Inclusion in a Way that Mat- (101497).
ters, McKinsey & Company (www.mckinsey.com), 20. Cited in an Interview by Sarah Cliffe, “Companies
February 16, 2021, p. 2. Don’t Go Global, People Do,” Harvard Business
8. Robin J. Ely and David A. Thomas, “Getting Se- Review, October 2015, p. 85.
rious About Diversity: Enough Already About 21. Stacey R. Fitzsimmons, “Multicultural Employee:
the Business Case,” Harvard Business Review, A Framework for Understanding How They Con-
November-December 2020, pp. 114–122. tribute to Organizations,” Academy of Management
9. Vivian Hunt, Larsina Yee, Sara Prince, and Review, October 2013, pp. 525–549.
Sundiatu Dixon-File, “Delivering through Diver- 22. Carla Johnson, “Cultural Sensitivity Adds Up to
sity,” McKinsey & Company, (www.mckinsey.com), Good Business Sense,” HR Magazine, November
January 2018, p. 8. 1995, pp. 83–85.
10. “Inclusive Diversity,” www.allstate.com/diversity 23. Christina Binkley, “Where Yellow’s a Faux Pas and
.aspx, © 2021 Allstate Insurance Company. White Is Death,” The Wall Street Journal, December 6,
11. Juan Baron, “Workforce Diversity: Building a 2007, p. D8.
Stronger Future,” www.hispanicbusiness.com, 24. Andy Molinsky and Ernest Gundling, “How to
September 18, 2013, p. 1. Build Trust on Your Cross-Cultural Team,” Harvard
12. Quoted in Diana Louise Carter, “The Diversity Di- Business Review (hbr.org), June 28, 2016, pp. 1–2.
lemma,” Democrat and Chronicle, December 15, 25. “Managing Diversity: When Cultures Collide,”
2013, p. 5E. When Cultures Collide,” Managing People at Work,
13. David Rock and Heidi Grant Halvorson, “Why sample issue, 2008, p. 7.
Diverse Teams Are Smarter,” Harvard Business 26. Ginka Toegel and Jean-Louis Barsoux, “3 Situ-
Review, November 4, 2016, pp. 1–2. ations Where Cross-Cultural Communication
Notes 391
Breaks Down,” Harvard Business Review, June 8, 42. Emily Glazer and Theo Francis, “CEO Pay Is Tied to
2016, pp. 2–3, 4–5. Diversity Progress,” The Wall Street Journal, June 3,
27. “Honda Makes English Official,” The Japan Times 2021, p. B1.
(www.japantimes.co.jp), July 18, 2015, p. 1. 43. Charisse Jones, “Report: Corporate Diversity on the
28. Tsedal Neeley, “Global Business Speaks English: Rise, but Parity May Be Decades Away,” USA To-
Why You Need a Language Strategy Now,” Harvard day, June 20, 2021, p. 1; Theo Francis and Jennifer
Business Review, May 2012, pp. 116–124. Maloney, “More Board Seats Go to Blacks and Lati-
29. Cited in Amanda Shelby, “EEOC to Update Guid- nos,” The Wall Street Journal, June 17, 2021, p. B1.
ance on English-Only Policies?” HR Hero (http:// 44. Marc Adams, “Building a Rainbow One Stripe at a
blogs.hrhero.com), January 19, 2014, p. 1. Time,” HR Magazine, August 1998, pp. 72–74.
30. Tsedal Neely and Robert Steven Kaplan, “What’s 45. Frank Dobbin and Alexandra Kalev, “Why Diversity
Your Language Strategy?” Harvard Business Programs Fail: And What Works Better,” Harvard
Review, September 2014, pp. 70–76. Business Review, July–August 2016, p. 59.
31. Javidan, Dorfman, de Luque, and House, “In the 46. Miriam Gottfried, “Investment Firms Team Up To
Eye of the Beholder,” p. 85. Attract Black Candidates,” The Wall Street Journal,
32. J o s e p h A . P e t r i c k , R o b e r t E . S c h e r e r, June 16, 2021, p. B10.
James D. Bodzinski, John F. Quinn, and M. Fall 47. Bryan Hancock and Monne Williams, “One Move
Ainina, “Global Leadership Skills and Reputational Companies Can Take to Improve Diversity,”
Capital: Intangible Resources for Sustainable Com- McKinsey Quarterly (www.mckinsey.com), April 9,
petitive Advantage,” The Academy of Management 2021, p. 8.
Executive, February 1999, pp. 58–69. 48. Matt Sigelman and Johnny C. Taylor, Jr. “To Build a
33. Gretchen M. Spreitzer, Morgan W. McCall Jr., and Diverse Company for the Long Terms, Develop Ju-
Joan D. Mahoney, “Early Identification of Inter- nior Talent,” Harvard Business Review (https://hbr
national Executive Potential,” Journal of Applied .org), April 12, 2021, pp. 1–6.
Psychology, February 1997, pp. 6–29. 49. Rohini Anand and Mary-Frances Winters, “A Retro-
34. Research cited in Douglas T. Hall, Guorong Zhu, spective View of Corporate Diversity Training from
and Amin Yan, “Developing Global Leaders: To 1964 to the Present,” Academy of Management Learn-
Hold on to Them, Let Them Go,” Advances in ing & Education, September 2008, pp. 356–372.
Global Leadership, Vol. 2, 2001, p. 331. 50. Katerina Bezrukova, Karen A. Jehn, and Chester
35. Javidan, Dorfman, de Luque, and House, “In the S. Spell, “Reviewing Diversity Training: Where We
Eye of the Beholder,” p. 85. have been and Where We Should Go,” Academy
36. Jeanne Brett, Kristin Behfar, and Mary C. Kern, of Management Learning & Education, June 2012,
“Managing Multicultural Teams,” Harvard Business pp. 207–227.
Review, November 2006, p. 87. 51. Farhad Manjoo, “Exposing Hidden Bias at
37. Catherine H. Tinsley, “How Negotiators Get to Yes: Google,” The New York Times (www.nytimes.com),
Predicting the Constellation of Strategies Used September 24, 2014, pp. 1–4; Jessica Guynn,
Across Cultures to Negotiate Conflict,” Journal of “Facebook Develops Unconscious Bias Training,”
Applied Psychology, August 2001, pp. 583–593. USA Today, July 30, 2015, p. 3B.
38. Tae-Yeol Kim, Chongwei Wang, Mari Kondo, and 52. Deepa Seethharaman and Natalie Andrew,
Tae-Hyun Kim, “Conflict Management Styles: “Facebook to Train Against Bias,” The Wall Street
The Differences among the Chinese Japanese, and Journal, June 24, 2016, p. B3.
Koreans,” International Journal of Conflict 53. Manjoo, “Exposing Hidden Bias at Google,”
Management, Issue 1, 2007, pp. 23–41. pp. 1–4.
39. Pamela Hinds, “Research: Why Best Practices 54. Raju Chebium, “A Common Language: Training
Don’t Translate Across Cultures,” Harvard Business Across Borders,” HR Magazine, January/February
Review (https://hbr.org), June 27, 2016, p. 4. 2015, pp. 52–56.
40. Thomas Rockstuhl, James H. Duhlbohn, and 55. DeeDee Doke, “Perfect Strangers,” HR Magazine,
Soon Ang, and Lynn M. Shore, “Leader-Member December 2004, p. 64; Terry Eagleton, “Sorry, But
Exchange (LMX) and Culture: A Meta-Analysis Do You Speak English?” The Wall Street Journal,
of LMX Across 23 Countries,” Journal of Applied June 22–23, 2013, p. C3.
Psychology, November 12, pp. 1097–1130. 56. Thomas Barta, Markus Kleiner, and Tilo Neumann,
41. B o r i s G r o y s b e r g a n d K a t h e r i n e C o n n o l l y, “Is There a Payoff from Top-Team Diversity?”
“Twenty-Four CEOs on Creating Diverse and McKinsey Quarterly (www.mckinseyquarterly.com),
Inclusive Organizations,” Harvard Business Review, April 2012, pp. 1–4.
September 2013, p. 76.
57. Noah Zandan and Lisa Shalette, “What Inclusive 59. Jonathan A. Segal, “5 Diversity Danger Zones,” HR
Leaders Sound Like,” Harvard Business Review Magazine, November/December 2018, pp. 84–85.
(https://hbr.org), November 19, 2020, pp. 1–7. 60. Andy Molinsky and Sujin Jang, “To Connect Across
58. Juliet Bourke and Andrea Espedido, “The Key to Cultures, Find Out What You Have in Common,”
Inclusive Leadership,” Harvard Business Review Harvard Business Review (https://hbr.org), January 20,
(https://hbr.cor), March 8, 2020, pp. 1–5. 2016, pp. 1–4.
15
Chapter
Leadership Development
and Succession
Learning Objectives
After studying this chapter and doing the exercises, you 15.3 Enumerate the nature of leadership development
should be able to programs.
15.1 Detail how leaders develop through self-awareness and 15.4 Describe the nature of leadership succession.
self-discipline.
15.2 Elaborate how leaders develop through education,
experience, and mentoring.
Chapter Outline
Development Through Self-Awareness and Self-Discipline Developing a Pool of Successors

Leadership Development Through Self-Awareness Promotion from Within
Leadership Development Through Self-Discipline Characteristics of an Effective Leadership Development Program
Development Through Education, Experience, and Mentoring Challenges of Being a New Leader
Education Summary
Experience Key Terms
Mentoring Guidelines for Action and Skill Development
Leadership Development Programs Leadership Case Problem A
Types of Leadership Development Programs Leadership Case Problem B
Leadership Succession Notes
How the Board Chooses a Successor
The Emotional Aspects of Leadership Succession
T
he Ritz-Carlton hotel chain, a subsidiary of Marriott Inter- activities as the Ritz-Carlton Hotel Company. A key component of
national, is one of the world’s best-known luxury brands, Ritz-Carlton’s efforts in this area is the Voyage global leadership
including a reputation for superior customer service. To development program, sponsored by the Marriott.
help sustain its reputation and high-quality service, top-level man- The Voyage program is aimed at recent college graduates,
agement has invested resources into leadership and management and is available in forty countries worldwide. The fulltime program
development for many years. Few organizations have attained lasts for twelve to eighteen months at full pay, and offers sev-
such tangible business results for their training and development eral opportunities for career enrichment, including the following:
393
394 Chapter 15 • Leadership Development and Succession
(1) Hands-on training in a specific discipline geared to specific The participants were supervisors from different depart-
interests such as food and beverage operations, culinary, engi- ments within the hotel, but all had the ambition and potential
neering, revenue management, and sales and marketing. The to become leaders in hospitality. Held during working hours,
acquisition of knowledge in a discipline is the foundation for the curriculum included instructor-led training, and individual
becoming a manager and leader. (2) Immersion in the opera- and team projects designed to develop strategic thinking and
tions of an individual hotel. (3) Comprehensive understanding of teamwork. Also included were written assignments and cross-
the global scale of the Marriott operations, and global brands. exposure to another country during a familiarization to other
(4) Opportunities to interact with and learn from the senior global Ritz-Carlton properties around the world.
leadership at the Marriott. (5) Experience with the Virtual Hotel The Ritz-Carlton chain has developed a world-wide reputa-
Simulator, a gaming experience that enables Voyagers to com- tion for high levels of customer service combined with luxury to
pete globally to manage a hotel and test their knowledge. the point many companies want to study its success. For over
Voyagers who successfully complete the program transition a century, the Ritz-Carlton name has been synonymous with
into an entry-level management or supervisory position suited to quality and service. This fact combined with the success of the
the capability and interests. The entry-level position is the build- leadership and management training programs at Ritz-Carlton
ing block for becoming a leader within Ritz-Carlton or Marriott. fostered the development of the Ritz-Carlton Leadership Center.
The Voyage program is sometimes combined with the lead- The Center provides training and development programs that
ership and management development program at one large ho- help organizations improve their cultures, enhance employee
tel. A hotel-specific example of leadership development at the engagement, and develop high-level customer service environ-
Ritz-Carlton is the program at the Al Bustan Palace, located in ments that create significant competitive advantage.
Oman, a sultanate of the southeast Arabian Peninsula on the Antonio Hock, global head of the Center, tells program par-
Gulf of Oman. In one year, the Omani Leadership Development ticipants, “As a leader, you need to be a living example. That
program enrolled eleven high potential “ladies and gentlemen” means showing your team that being bold is valued, being vul-
for an eleven-month leadership course. (Yet, the Ritz-Carlton nerable is part of growth, and respecting and nurturing others is
does not exclude gender unspecified and trans people from the part of punching your ticket.”
development program.)
The huge amount of time and resources the how self-development can enhance leadership effec-
Ritz-Carlton invests in leadership development illus- tiveness, as well as the processes organizations use to
trates the importance organizations attach to the de- develop current and future leaders. Such activities and
velopment of leaders and managers. TrainingIndustry. processes are typically referred to as leadership devel-
com estimates that leadership training is a $366 bil- opment or management development.
lion global industry, with $166 billion spent annu- The primary emphasis in leadership development is
ally on leadership development in the United States.2 on building and using interpersonal competence, even
Even if this estimate is highly inflated, the amount when it appears that a trait or behavior is the focus of
of money invested in leadership development would development.4 For example, a leader might work on en-
still be substantial. Sydney Finkelstein, the Director hancing self-discipline, yet being more self-disciplined
of the Leadership Center at the Tuck School of Busi- might help the leader to remember to provide feedback
ness at Dartmouth College, further emphasizes the and recognition to group members.
importance of leadership development. He contends In addition to describing various approaches to
that generating and regenerating talent is more im- leadership development, this chapter also describes
portant for success than strategy, technology, and even leadership succession. Leadership succession is in-
products.3 cluded here because an important part of leadership
The previous chapters in this book have included development is being groomed for promotion. The text-
information and activities designed to develop leaders book concludes with a glimpse of the challenges newly
and enhance their effectiveness. This chapter describes appointed leaders face.
Development Through Self-Awareness and Self-Discipline 395
headquarters campus are filled with inspirational quotes

Development Through Self- about “inviting new ideas” and “fostering curiosity.”7
Awareness and Self-Discipline
Learning Objective 15.1 Detail how leaders develop Leadership Development Through
through self-awareness and self-discipline. Self-Awareness
An important mechanism underlying self-development
Leadership development is often perceived in terms of
is self-awareness, insightfully processing feedback
education and training, job experience, and coaching.
about oneself to improve one’s effectiveness. Part of
Nevertheless, self-help also contributes heavily to de-
self-awareness is being able to understand how the in-
veloping leadership capabilities. Self-help takes many
dividual is perceived by others.8 A leader might say, “I
forms, including working on one’s own to improve
come across to others as a person of passion and com-
communication skills, to develop charisma, and to
mitment.” If others perceive the leader in the same way,
model the behavior of effective leaders. As the self be-
the leader has good self-awareness. In contrast, if most
comes developed, the leader is able to engage in more
subordinates perceive the leader as unexcited about at-
effective interactions with people. Two major compo-
taining group goals, the leader’s self-awareness is low.
nents of leadership self-development are self-awareness
According to two specialists in leadership assess-
and self-discipline, as described below.
ment, many big mistakes in careers and organizations
Research suggests that individuals with a strong
result from gaps in self-awareness.9 For example, a de-
career growth orientation are more skilled at
partment leader might observe that three key group
self-development of leadership characteristics and behav-
members left her group over a six-month time span.
iors. Career growth orientation involves greater career
The leader might defensively dismiss this fact with an
exploration and feedback-seeking activities.5 Underly-
analysis such as, “I guess we just don’t pay well enough
ing a career growth orientation is a growth mindset,
to keep good people.” Her first analysis might be cor-
the idea that the true mark of success is the ability to
rect. With a self-awareness orientation, however, the
learn. A growth mindset thrives on challenge and sees
leader would dig deeper for the reasons behind the
failure not as an indicator of low intelligence, but as a
turnover. She might ask herself, “Is there something
springboard for growth and improving current abilities.6
in my leadership approach that creates turnover prob-
Table 15-1 presents a sampling of the thought patterns
lems?” She might ask for exit interview data to sharpen
of a person with a growth mindset. Microsoft CEO Sa-
her perceptions about her leadership approach.
tya Nadella works hard to incorporate a growth mind-
The research of organizational psychologist Tasha
set into the company’s culture. The walls of Microsoft’s
Eurich reveals that self-awareness is made of two kinds
of knowledge, both of which are relevant for leaders. One
type is introspective awareness, or seeing ourselves clearly,
Table 15-1 Seven Attitudes and Beliefs of a Person knowing what we value, and what we aspire to. The sec-
with a Growth Mindset ond type of self-awareness is knowing how people see us.
People who have both types of self-awareness are those
1. I believe that I can strengthen my intelligence
who are the most successful in work and personal life.10
to some extent.
A fruitful area of self-awareness is for leaders to rec-
2. I can improve my mental ability just like
ognize their standing on two key dimensions of leader-
athletes can improve their skills.
ship: forceful versus enabling leadership, and strategy
3. I can acquire knowledge about difficult
versus operational. Bob Kaplan explains that the leader
subjects even if I do not have strong natural
should not go overboard on each dimension, such as
talent in that area.
being too forceful or too enabling (empowering). A
4. With hard work and self-discipline, I can make
leader should also not spend so much time strategizing
improvements in almost any job-related skill.
that operations become neglected, or so much time fo-
5. With practice and study, I can improve my
cusing on operations that strategy is neglected.
leadership effectiveness.
The process of self-awareness on these two dimen-
6. If I take constructive feedback seriously, I can
sions is much like volume control—raise or lower the
improve in almost all job-related areas.
volume to get the best result. Figure 15-1 outlines this
7. Even if I do not always attain my goal, I have
area of self-awareness in terms of the extremes, or
learned something while trying.
being lopsided. The ideal point is to be just right in
Source: The idea for this table stems from Carol S. Dweck, forcefulness versus enabling, and strategic versus op-
Mindset: The New Psychology of Success (New York: Ballantine erational. Feedback from others helps leaders become
Books, 2016). The statements, however, are original. self-aware of their standing on these two dimensions.11
Strategic
Heroic Leader (too Presidential (too strategic

forceful and too strategic) and too enabling)
Field General (too One of the Troops (too

forceful and too operational) operational and too enabling)
Operational
Forceful Enabling
Figure 15-1 Four Kinds of Lopsided Leaders.

Source: Based on concepts from Bob Kaplan with Rob Kaiser,
The Versatile Leader: Make the Most of Your Strengths—Without Overdoing
It (San Francisco, CA: Pfeiffer, 2006).
Self-awareness can also be helpful in understanding Leadership Self-Assessment Quiz 15-1 gives you the
how close an individual is to that person’s concept of an opportunity to examine your own tendencies toward
ideal leader.12 Many people develop perceptions of who being self-disciplined. Leadership Self-Assessment
they consider to be an ideal leader, even without a con- Quiz 15-2 contains an interpersonal skills checklist that
scious process of searching for such a person. A person will help you identify your own developmental needs
with high self-awareness might think, “I’m getting close related to interpersonal relationships.
to behaving like ____, but I still have to develop my cha-
risma and strategic thinking further to get there.”
Development Through Education,
Experience, and Mentoring
Leadership Development Through
Self-Discipline Learning Objective 15.2 Elaborate how leaders develop
through education, experience, and mentoring.
As with other types of personal development, leadership
development requires considerable self-discipline. In Much of leadership development takes place through
the present context, self-discipline is mobilizing one’s means other than self-awareness and self-discipline or
effort and energy to stay focused on attaining an import- leadership development programs. Leadership is such a
ant goal. A key component of being a self-disciplined comprehensive process that almost any life activity can
learner is to set goals for development such as, “I am help people prepare for a leadership role. Three import-
going to think more strategically about my work.”13 ant life and work experiences that contribute to leader-
Self-discipline is required for most forms of leadership development are education, experience as a leader,
ship development. Assume that a leader is convinced and mentoring. In the next several pages, we look at the
that active listening is an important leadership behav- link between each of these three factors and leadership.
ior. The leader reads about active listening and also at-
tends a workshop on the subject. After the reading and
workshop are completed, the leader will need to con- Education
centrate diligently in order to remember to listen ac-
Education generally refers to acquiring knowledge
tively. Self-discipline is particularly necessary because
without concern about its immediate application. If a
the pressures of everyday activities often divert a per-
potential leader studies mathematics, the logical rea-
son’s attention from personal development.
soning acquired might someday help the leader solve
Self-discipline plays an important role in the con-
a complex problem facing the organization. As a result,
tinuous monitoring of one’s behavior to ensure that
the leader’s stature is enhanced. Reading biographies
needed self-development occurs. After one identifies
and autobiographies about successful people is a good
a developmental need, it is necessary to periodically
source of ideas about leadership. Formal education is
review whether one is making the necessary improve-
positively correlated with achieving managerial and
ments. Assume that a person recognizes the develop-
leadership positions. Furthermore, there is a positive
mental need to become a more colorful communicator
relationship between the amount of formal education
as a way of enhancing charisma. The person would
and the level of leadership position attained.
need self-discipline to make the conscious effort to
Another key contribution of formal education to
communicate more colorfully when placed in an ap-
leadership development is that enhances a person’s
propriate situation.
Development Through Education, Experience, and Mentoring 397
My Self-Discipline Tendencies
Indicate the extent to which each of the following statements describes your behavior or attitude by circling one number.
The numbers refer to disagree strongly (DS), disagree (D), neither agree nor disagree (N), agree (A), and agree strongly (AS).
Consider enlisting the help of someone who knows your behavior and attitudes well to help you respond accurately to the
statements.
Statement Related to Self-Discipline DS D N A AS
1. I usually stay focused on whatever goal I am pursuing. 1 2 3 4 5

2. I have a mission or purpose in life. 1 2 3 4 5
3. Saving or investing for the future makes little sense when you 5 4 3 2 1
can have fun with the money in the present.
4. A highly talented person does not have to invest much time in 5 4 3 2 1
practicing the skill related to that talent.
5. I am able to work on my job for an entire hour without check- 1 2 3 4 5
ing to see if I have a phone, text, or email message.
6. I have developed a new skill in the last twelve months without 1 2 3 4 5
being forced to by my employer or an instructor.
7. I almost never bother retaining facts any longer because 5 4 3 2 1
I can find whatever facts I need on the Internet.
8. My days rarely turn out the way I hope. 5 4 3 2 1
9. Given a choice between receiving a gift of $2,000 today 1 2 3 4 5
versus receiving a gift on $4,000 three months from today,
I would wait for the $4,000.
10. I would be willing to devote fifteen minutes per day for two 1 2 3 4 5
years to learn another language.
11. Working sixty hours per week for even a short period of time 5 4 3 2 1
is something that I would never do.
12. I tend to daydream a lot even on the job or during quite 5 4 3 2 1
moments with family and friends.
13. I usually read the owner’s manual before I spend much time 1 2 3 4 5
operating a new vehicle or complicated piece of electronic
equipment.
14. When I’m involved in an important work project, I can enjoy 1 2 3 4 5
myself fully at a recreational event after hours.
15. I feel that I’m moving forward a little bit at every day toward 1 2 3 4 5
achieving my goals.
16. I accomplish very little unless I am closely supervised. 5 4 3 2 1
17. Several people have described me as being conscientious. 1 2 3 4 5

18. My work area is neat, clean, and well organized. 1 2 3 4 5
(continued)
Statement Related to Self-Discipline DS D N A AS
19. I become bored easily. 5 4 3 2 1
20. I am willing to work hard and long at a task even if the payoff 1 2 3 4 5
is uncertain.
21. It makes sense for a marathon runner to keep going even 1 2 3 4 5
when it appears that the runner has almost no chance of be-
ing among the top group of finishers.
22. I frequently misplace or lose items such as my keys, wallet, 5 4 3 2 1
smartphone, or glasses.
23. Planning is difficult because life is so unpredictable. 5 4 3 2 1
24. I am able to concentrate on an entire news story if the subject 1 2 3 4 5

interests me.
25. I’m terrible at remembering names of people I meet only one 5 4 3 2 1
or twice.
Scoring and Interpretation: Calculate your score by adding up the numbers circled:
• 110–125: You are a highly self-disciplined person who should be able to capitalize on your skills and talents.
• 61–109: You have an average degree of self-discipline.
• 25–60: You appear to have a below-average degree of self-discipline that could be interfering with your accomplishing
goals and achieving satisfaction.
Leadership Self-Assesment Quiz
Quiz 5-3
15-2
The Interpersonal Skills Checklist

Instructions: Following are a number of specific aspects of behavior that suggest that a person needs to improve inter-
personal skills related to leadership and influence. Check each statement that is generally true for you. You can add to the
reliability of this exercise by asking one or two other people who know you well to rate you. Then compare your self-analysis
with their analysis of you.
Developmental Needs and Areas for Improvement
1. I am too shy and reserved.

2. I bully and intimidate others frequently.
3. I tell others what they want to hear rather than emphasizing the truth.
4. I have trouble expressing my feelings.
5. I make negative comments about group members too readily.
6. Very few people pay attention to the ideas I contribute during a meeting.
(continued)
Developmental Needs and Areas for Improvement
7. My personality is not colorful enough.

8. People find me boring.
9. I pay too little attention to the meaning behind what team members and coworkers
are saying.
10. It is very difficult for me to criticize others.
11. I am too serious most of the time.
12. I avoid controversy in dealing with others.
13. I do not get my point across well.
14. It is difficult for me to make small talk with others.
15. I boast too much about my accomplishments.
16. I strive too much for individual recognition instead of looking to credit the team.
17. Self-confidence is my weak point.
18. My spoken messages are too bland.
19. I rarely ever speak to people any longer. Instead, I rely on text messages.
20. I relate poorly to people from cultures different from my own.
21. I read people poorly.
22. I display a lot of nervous mannerisms when I am working in a group.
23. I do a poor job of making a presentation in front of others.
24. I multitask, such as receiving a phone call, while talking to another person face-to-face.
25. (Fill in your own statement.)
Now that you (and perhaps one or two others) have identified specific behaviors that may require change, draw up an action
plan. Describe briefly a plan of attack for bringing about the change you hope to achieve for each statement that is checked.
Ideas might come from personal development books or from leadership development and human relations workshops. After
formulating an action plan, you will need self-discipline for its successful implementation. For example, if you checked, “People
find me boring,” you might want to expand your fund of knowledge by extensive reading and by talking to dynamic people. You
will then need the self-discipline to continue your quest for ideas and to incorporate some of these ideas into your conversation.
Another approach to this exercise is for each student to choose one developmental need, combined with an action plan,
that the person is willing to share with others. Next, students present their developmental need and action plan to the rest
of the class. After all students have presented, a class discussion is held about whatever observations and generalizations
students have reached.
learning agility (the ability to learn). Michael Trusty, the and leadership is that leaders are required to learn
head of capability consulting at Rolls Royce, observes, regularly.
“The pace at which information now flows means that The correlation between education and leadership
those who are the most ready for change, particularly status, however, may not reflect causation. Many peo-
in knowledge-driven organizations, don’t just apply ple get the opportunity to hold a business leadership
what they know but can quickly seek out and assimilate position only if they have achieved a specified level of
new information.”14 The link between learning agility education. A more important issue than the statistical
association between leadership and formal education is failed have avoided taking big risks. Richard Branson,
how education contributes to leadership effectiveness. the flamboyant chair of Virgin Atlantic Airways Limited
Most high-level leaders are intelligent, well-informed (and space traveler), claims that “the best developer of
people who gather knowledge throughout their career. a leader is failure.” An effective way of capitalizing on
The knowledge that accrues from formal education failure is to reflect on what you might do differently in
and self-study provides them with information for in- the future. Ask yourself questions such as “What would
novative problem solving. Being intellectually alert also have to change inside me to enable me to do things dif-
helps them exert influence through logical persuasion. ferently?”18 For example, perhaps the project failed be-
cause you did not provide enough guidance to the group
Experience and did not communicate a sense of urgency. In the fu-
ture, you might lead with more control and assertion.
On-the-job experience is an obvious contributor to Table 15-2 lists a number of powerful learning experi-
leadership effectiveness. Without experience, knowl- ences for developing leadership and managerial skills.
edge cannot readily be converted into skills. For An important part of capitalizing on challenging expe-
example, you will need experience to put into prac- riences is for the leader or manager to be given leeway in
tice the appropriate influence tactics you studied in choosing how to resolve the problem. A team leader, for
Chapter 8. Leadership experience also helps build skills example, might be told, “Increase productivity by 10 per-
and insights that a person may not have formally stud- cent and, at the same time, decrease costs by 10 percent.”
ied. Many company leadership development programs The team leader would have the developmental opportu-
focus on giving participants varied experiences, such nity of finding a solution to this challenge.
as Yum! Brands requiring that executive leaders obtain Challenging experiences are the most likely to result
experience managing a store. in leadership development when the leader receives
some coaching and guidance about the lessons to be
Challenging Experiences derived from these experiences.19 Imagine that middle
The best experiences for leadership development are manager Max is given a three-month assignment to
those that realistically challenge the manager, includ- help turn around a distribution center that has been
ing dealing with stressful problems. A recommended suffering from financial losses and poor morale. Max
approach to developing as a leader is to step outside is successful, and then goes over an intense debriefing
your comfort zone and gain novel experiences.15 Novel with his boss and the HR director as to why he suc-
experiences that are complex are even more important ceeded. Max then achieves the insight, “It looks like I
for development. Claudio Fernández-Aráoz observes expressed confidence that the workers could resolve the
that the most successful leaders are those who con- problems. I also pointed people in the right direction.”
tinue to learn and grow, and the best way to do that Another contributing factor to profiting from ex-
is through assignments of increasing complexity. Aráoz periences is the leader having the right mental set for
gives the example of a leader within a multinational learning. According to the theorizing of Peter A. Hesling
conglomerate who was exposed to new complexities. and Lauren A. Keating of the UNSW Australian Busi-
He was successfully rotated through financial, mar- ness School, leaders learn more from their challeng-
keting, and production roles in his domestic Argentine ing leadership experiences when they are in a learning
market, as well as U.S. markets, and those in Europe. mode. The mode refers to intentionally framing and
As a result, he was ready for the leadership assignment pursuing each element of learning through experience
of launching a new business that would compete with with more of a growth than a fixed mindset. A leader
the company’s clients.16 in a learning mode has a motive of self-improvement
Creating an environment for development requires and self-enhancement. Assume that a leader is placed
that an organization first rid itself of the belief in sur- in charge of a global task force to find ways to pene-
vival of the fittest. The goal of leadership development trate markets in underdeveloped countries. In a learn-
is to provide meaningful development opportunities, ing mode, the leader would reflect, “Here is a great
not to push managers to the point where they are most opportunity to learn how to really work smoothly with
likely to fail.17 An example of a stretch experience for workers and consumers from other cultures.”
many managers is being placed in charge of an orga- The learning mode contains many different el-
nizational unit with low productivity and morale. The ements, yet its nature is reflected in growth mind-
manager would need to apply many leadership skills to set-related assumptions such as the following:
improve the situation. “Leadership ability is not limited by genetics or carved
Failure is a special type of challenging experience in stone.” “Frustrating mistakes contribute to learning,
that contributes enormously to reaching one’s leader- so should not be feared.” “Disappointing results often
ship potential. One reason is that people who have never indicate where more learning is needed.” 20
Table 15-2 Powerful Learning Experiences for Developing Leadership Skills

Research with managers has revealed fifteen types of powerful learning experiences that contribute to one’s
development as a leader and manager.
1. Unfamiliar responsibilities. Responsibilities are new, quite different, or much broader than previous ones.
As a result, the situation requires skills and abilities beyond a person’s current competencies.
2. Proving yourself. There is pressure to show others that one can get the job done.
3. Developing new directions. The leader is responsible for starting something new, implementing a
reorganization, or responding to rapid changes in the business environment.
4. Inherited problems. The manager must fix problems created by a former manager or is handed the
responsibility for problem employees.
5. Downsizing decisions. The manager must make decisions about shutting down operations or
reducing staff.
6. Dealing with problem employees. The group members lack adequate experience, are incompetent,
or are resistant.
7. Facing high stakes. The manager is faced with tight deadlines, pressure from senior management, high
visibility, and responsibility for success and failure.
8. Managing business complexity. The job is large in scope, and the manager is responsible for multiple
functions, groups, products, customers, or markets.
9. Role overload. The size of the job requires a large investment of time and energy. An example is that
suddenly you deal with a customer request far beyond the capacity of the company to handle.
10. Handling external pressure. The manager is forced to deal with external factors that affect the business,
such as negotiating with unions or government agencies or coping with serious community problems.
11. Having to exert influence without authority. To accomplish the job, it is necessary to influence peers,
higher management, external parties, or other key people over whom one has no formal control.
12. Adverse business conditions. The business unit faces a drop in revenues or a drastic budget cut. For
example, it becomes necessary to raise funds from investors and you have to be humble and almost beg
for money.
13. Lack of top management support. Senior management is reluctant to provide direction, support, or
resources for the manager’s major work activities or for a new project.
14. Lack of personal support. The manager is excluded from key networks and receives little encouragement
from others about the work activities.
15. Difficult boss. A personality clash with the boss is evident, or that the boss is incompetent.
16. Solving difficult problems around the world. IBM deploys a Corporate Service Corps in which emerging
leaders work as volunteers to solve difficult problems in developing countries.
Sources: Adapted from Cynthia D. McCauley and Morgan W. McCall Jr. (Eds.), Using Experience to Develop Leadership Talent: How
Organizations Leverage On-the-Job Development (San Francisco, CA: Wiley, 2014); Cynthia D. McCauley, Marian N. Ruderman, Patricia
J. Ohlott, and Jane E. Morrow, “Assessing the Developmental Components of Managerial Jobs,” Journal of Applied Psychology, August
1994, pp. 544–560. Point 1 is also derived from Gretchen M. Spreitzer, “Leadership Development Lessons from Positive Organizational
Studies,” Organizational Dynamics, no. 4, 2006, p. 307. Points 7 and 12 are also derived from “Moments of Truth: Global Executives
Talk About the Challenges That Shaped Them as Leaders,” Harvard Business Review, January 2007, pp. 16–17.
Sources of Experience and the group becomes defensive and recalcitrant. You
The two major developmental factors in any work situ- have learned how not to confront. Members of upper
ation are work associates and the task itself.21 Work as- management, peers, and reporting staff can also help
sociates can help a person develop in myriad ways. An a leader profit from experience. For example, by trial
immediate superior can be a positive or negative model and error, the worker might learn which type of praise
of effective leadership. You might observe how your is best for influencing others.
boss skillfully confronts a cost overrun problem during Work-related tasks can also contribute to leader-
a staff meeting. You observe carefully, and plan to use a ship development because part of a leader’s role is to
similar technique when it becomes necessary for you to be an effective and innovative problem solver. The tasks
confront a problem with a group. In contrast, assume that do most to foster development are those that are
that your boss’s confrontational approach backfires more complex and ambiguous than a person has faced
previously (as mentioned earlier). Starting a new activ- through learning new skills rather than a preoccupation
ity for a firm, such as establishing a dealer network, ex- with vertical mobility. For example, more professionals
emplifies a developmental experience. today than in the past are willing to take a lateral move
An extreme approach to developing leadership skills instead of a promotion if there is an opportunity to ac-
is to be assigned responsibility for an area in which you quire new skills. For example, the manager of market
lack the appropriate skills or knowledge of the busi- research might be content to become a sales manager
ness. An example would be appointing an operations (a position at about the same level) in order to enhance
manager as the director of marketing. According to the skill portfolio.
Matt Paese of Development Dimensions International, A particularly effective type of broad experience
leadership ability is the most effective way of succeed- early in a career is to perform technical work in one’s
ing in areas where you lack technical expertise. Among specialty, and combine it with frontline supervision. A
the specific leadership skills would be consulting with representative example is a person with a specialty in
people who have the necessary expertise and exuding materials management who receives an assignment of
self-confidence, yet not being arrogant.22 supervising order delivery technicians.
Experience is the most beneficial when the person
Broad Experience extracts value from what is happening. People with this
Many aspects of leadership are situational. A sound ap- capability have the capacity to scan for new ideas, the
proach to improving leadership effectiveness is there- intellectual skills to absorb them, and the practical in-
fore to gain managerial experience in different settings. telligence to translate that new learning into productive
An aspirant to executive leadership is well advised to action for customers and organizations.23 The materi-
gain management experience in at least two differ- als management supervisor just mentioned might spot
ent organizational functions, such as marketing and a way to stack inventory to save enough space to avoid
operations. having to construct a new wing to the distribution center.
A widespread practice is to assign managers to The leadership portfolio that you have been main-
cross-functional teams to give them experience in taining will help you capitalize on experience as a
working with other disciplines. The more urgent the source of leadership development. The accompanying
purpose of the team, the more likely meaningful lead- Leader in Action insert describes a person whose broad
ership development will take place. Achieving broad ex- experience helped catapult her into a major executive
perience fits well with the current emphasis on growth position.

Leader in Action
Broad Experience Helps Propel Ebony Beckwith into the C-Suite at Salesforce
Ebony Beckwith is the chief philanthropy officer and CEO of Beckwith is the highest-ranking Black executive at Sales-
the Salesforce Foundation. Her major responsibility is for the force.com, and leads a global operation that disburses
company’s philanthropic investment strategy. Beckwith is part charitable grants. She reports directly to chairman and CEO
of a ten-person executive leadership team. She oversees a Marc Benioff, a much higher than usual reporting relation-
global team that cultivates a culture of giving back and directs ship for a corporate philanthropy officer. Salesforce.com
hundreds of millions of dollars in grants. The focus of these hired Beckwith to be chief of staff for the company’s chief
grants is education and workforce development programs. information officer. In 2014, she began a tryout role as a vice
Beckwith is responsible for engaging 45,000 Salesforce president of the Salesforce Foundation, and then continued
employees in community service opportunities, and admin- as a company top-level executive.
istering millions of dollars in grants to improve communities Beckwith and her team have achieved positive results
across the globe. Some of these activities are included in with their international work in the fields of education and
Beckwith’s leadership of Salesforce.org. Beckwith’s other re- workforce development. Locally, she has headed partner-
sponsibilities include leading Salesforce’s response to socie- ships with San Francisco Unified School District and the
tal crises such as the COVID-19 pandemic, and coleading a Oakland Unified School District. Beckwith’s other com-
taskforce committed to racial equality and justice. munity leadership includes service on the boards of the
(continued)

Warriors Community Foundation, Hamilton Families, and the computer programming while working as a quality-assurance
Women’s Funding Network. She is a member of the Techni- manager for Pacific Bell, and then operations supervisor.
cal Advisory Board of Year Up Bay Area. The organization’s She held both positions for about twelve months.
mission is to close the opportunity gap by providing under- Beckwith holds a bachelor’s degree in computer and
represented young adults with the skills, experience, and information sciences from Golden State University, and
support to excel in 21st century jobs. an honorary doctorate of Humane Letters from the same
Prior to joining Salesforce.org in 2014, Beckwith worked university.
five years in the technology division of Salesforce as the
division head of technology business operations. Earlier at Questions
Washington Mutual, she spent eleven years managing tech- 1. How has Beckwith’s community activities and volunteer
work benefited her career?
nology. The three positions she held at Washington Mutual
2. Assume that Beckwith being the CEO of the Salesforce
were director, IT strategic planning, director of IT production
Foundation is part of her broad experience. What other
support, and vice president technology operations and proj- career opportunities do you see in her future?
ect management office. Afterward, at Providian Financial 3. Ebony Beckwith is enjoying a highly successful leader-
Beckwith began as enterprise operations manager, and then ship career, yet what risky moves does she appear to
was promoted to production support/crisis management. have taken earlier in her career?
As an adolescent, Beckwith was interested in studying
defense law or journalism. She then shifted to an interest in
Sources: Original story created from facts and observations in the following sources: “Ebony Beckwith: Chief Philanthropy Officer
and EVP, Marketing, Salesforce,” https://powerfulwomen.com, 2021, pp. pp. 1–2; “Ebony Beckwith, “Chief Philanthropy Officer and
CEO of the Salesforce Foundation,” www.salesforce.com, 2021, p. 1; Joann S. Lublin, “Ebony Beckwith: Chief Philanthropy Officer of
Salesforce and CEO, Salesforce Foundation,” The Wall Street Journal, June 18–20, 2021, p. B6; “Ebony Beckwith: CEO of Salesforce
Foundation, Chief Philanthropy Officer at Salesforce, Board Member,” LinkedIn, 2021, pp. 1–8.
Mentoring each other. Identification includes the thought that the

protégé views the mentor as a model of someone the
Another experience-based way to develop leadership
person wants to be in the future.24 At the same time the
capability is to be coached by an experienced, knowl-
mentor might think, “I was just like you when I was
edgeable leader. Quite often this person is a mentor,
getting started in my leadership career.”
a more experienced person who develops a protégé’s
All mentoring does not take place in the context of a
abilities through tutoring, coaching, guidance, and
spontaneous relationship between two people. Employ-
emotional support. Mentoring others is an import-
ers often formally assign a mentor to a new employee
ant leadership responsibility. In some companies, ev-
to help the person adjust well to the organization and
ery manager from the CEO on down is supposed to
to succeed. Mentoring is so widely accepted as a valu-
be an active mentor. The mentor, a trusted counselor
able approach to development that most large organi-
and guide, is typically a person’s manager. However, a
zations have a formal mentoring program.
mentor can also be a staff professional or coworker. An
Another approach to mentoring is shadowing, or
emotional tie exists between the person mentored and
directly observing the work activities of the mentor
the mentor.
by following the person around for a stated period of
time, such as one day per month. The protégé might
Informal Versus Formal Mentoring be invited to strategy meetings, visits with key custom-
Mentoring is traditionally thought of as an informal ers, discussions with union leaders, and the like. The
relationship based on compatibility or spark between protégé makes observations about how the mentor
two personalities. A key aspect of informal mento- handles situations, and a debriefing session might be
ring is that the mentor and the protégé identify with held to discuss how and why certain tactics were used.
Online Mentoring • Encourages you to set stretch goals for yourself

Online, or virtual, mentoring is popular because send- • Presents opportunities and points to challenges you
ing email messages, text messages, and social media might not have seen on your own
posts helps overcome barriers created by geography, • Instead of giving a definitive answer to your prob-
limited time, and voice mail. Exchanges of tweets are lem, shares a way of thinking about a problem you
popular for mentoring also because of the brevity and may not have thought about25
pointedness, such as a mentor sending this message
to the person being mentored, “Good presentation but The behaviors just listed are examples of contribu-
avoid getting defensive when questioned. Ask for clar- tions by a mentor that can assist the protégé develop as
ification rather than getting angry.” Another positive a leader.
feature of online mentoring is that the protégé might
Impact on Leadership
pose a career or work question to the mentor and re-
ceive a helpful reply that day. A major advantage of Leadership writer John Maxwell notes that mentorship
online mentoring is that it offers a wide pool of pos- is the way leaders spread their influence, transfer their
sible mentors and better matches between the mentor wisdom, and allow others to take part in their experi-
and the person mentored. Going online, you might be ences.26 In the process, mentors often help their men-
working in Chicago, yet have a good fit with a manager tees develop as leaders.
in San Francisco or London. Mentors enhance the career of protégés in many
One innovation in online mentoring are websites ways, such as by recommending them for promotion
that link mentors and mentored employees via profil- and helping them establish valuable contacts. An im-
ing software, modeled after dating websites. Another portant role for a mentor is to coach and guide the per-
innovation is virtual mentoring that makes face-to-face son being mentored on leadership situations the person
contact rare. With one system, an employee searching is facing or will be facing. Jeff Immelt, the former long-
for a mentor logs onto an intranet and enters up to time CEO of General Electric, explains how a former
three career interests or skills to develop. Video trans- mentor guided him in an aspect of strategic leadership:
missions, such as webcams, Zoom, and Skype, can also I started my career selling plastic in Detroit and
be effective for mentoring. my first boss was a sales manager, a guy named
Despite the efficiency advantage of online mentor- Pat Bayes, and he was awesome. He really taught
ing, some face-to-face contact with a mentor is recom- me how to see the company through the eyes of
mended to help keep the relationship vibrant. Can you the marketplace and through customers. He told
imagine somebody recommending you for promotion me to have a healthy skepticism of headquarters,
after having communicated with you exclusively by an which I still have today. I think there’s value in the
email and a website? CEO having a healthy skepticism of what corporate
people do. He taught me in a constructive way
Effective Mentoring Behaviors how to be agnostic about corporates and see the
Because many mentors are leaders, effective mentors company through the eyes of the customer. I still
are likely to engage in many of the behaviors of effec- carry that with me today.27
tive leaders described throughout this book. Interviews
A challenge in having a strong mentor is to at some
with professionals in service firms, such as consultan-
point graduate from mentorship. Your mentor may
cies and accounting firms, suggest that the following
have given you credibility and connections for a long
behaviors in particular are characteristic of a good
time, but at some point you have to emerge from the
mentor:
shelter of that shadow in order to be perceived as a
• Highly credible, and whose integrity shows through leader with your own strengths. Detaching yourself
whether the message delivered is positive or from a strong mentor is often facilitated by a few ac-
negative complishments of your own, outside your mentor’s
• If necessary, will tell you things you do not want to jurisdiction.28
hear, but listens to you The impact of mentoring on leadership works in
two directions. The mentor helps the protégé, and hav-
• Interacts with you in a way that makes you want to
ing a protégé often improves the mentor’s leadership ef-
improve your effectiveness
fectiveness. The process of a younger, less experienced
• Makes you feel secure enough to be willing to take person teaching an older, more experienced person is
risks termed reverse mentoring. An obvious learning oppor-
• Helps boost your self-confidence enough to put tunity is that the mentee might have expertise the men-
aside your inner doubts and fears tor lacks, helping the mentor develop more expertise.
The protégé might be knowledgeable about the intrica- advocating that women speak out about their own
cies of data analytics, and impart some of this knowl- experiences of this type. Out of 954 women surveyed
edge to the mentor, helping the latter become more up about their negative experiences with male mentors,
to date. Another example is that the mentee might have one third complained of sexual harassment. A con-
been raised in a different culture, and offer the men- tributing factor to any harassment that takes place
tor new insights into the cultural group. The global law is that the mentor exerts power over the person men-
firm Linklaters initiated a reverse mentoring program tored, a well-known factor underlying sexual harass-
to improve leadership’s understanding of minority con- ment. Male mentors also are concerned about being
cerns, including those ethnic and LGBT minorities.29 accused of sexual harassment by female protégées.
Nearly 60 percent of men surveyed by Leanin.org
The Importance of Having More than One Mentor said they would avoid working alone with, socializ-
Having a backup mentor is important because mento- ing with, or mentoring women.
ring relationships are often fragile, and problems can As a result of concerns about a mentoring rela-
occur. Also, your mentor in the company might leave tionship involving sexual harassment, the more senior
the organization. As expressed by financial executive person should exert extra care to keep the relation-
Michael J. Mardy, “You don’t want to hitch your horse ship professional. The leader/mentor might want still
to one post.”30 One potential problem is that the men- to be a warm and welcoming person, but comments
tor might perceive the protégé to be a rival and there- about non–job-related attributes such as appearance,
fore attempt to damage the latter’s career through such hairstyle, or smile should be strongly limited. A sug-
means as badmouthing. A more common problem is gestion made to organizations in the study cited above
that the mentor may wind up neglecting the protégé is to carefully screen male mentors, and avoid select-
because the former becomes preoccupied with job re- ing as mentors, men with a pattern of dominance and
sponsibilities. Having more than one mentor at a time aggression, and a strong sexual identity. (It would, of
helps alleviate both problems.31 course, be difficult to obtain accurate measures of
Kate Mitchell, a venture capitalist, uses the term these personality factors.) Another suggestion is to
composite mentor to refer to a collection of people make awareness of sexual harassment part of mentor
you draw lessons from, including enhancing strategic training.33
thinking and creativity. A composite mentor is import-
ant because challenges typically evolve. Relying on
multiple sources enables you to zero in on the best ad-
vice for different situations.32 Leadership Development Programs
Leadership Skill-Building Exercise 15-1 is designed
to make you proactive bout finding a mentor.
Learning Objective 15.3 Enumerate the nature of leadership
development programs.
The #MeToo Movement and Mentoring
Concerns have been expressed about more se- A time-honored strategy for developing prospective,
nior males mentoring young women as part of the new, and practicing leaders is to enroll them in lead-
#MeToo movement. #MeToo is a social movement ership development programs. Many management
against sexual violence, assault, and harassment, development programs are also aimed at leadership
Finding a Mentor or Mentors for Leadership Development

The vast majority of successful leaders have had or currently find a person with whom you have rapport. After the brain-
have one or more mentors. Yet finding an effective mentor storming groups have accomplished their task, share your
is not always so easy. Organize into brainstorming groups results across groups. Look to see if the same method for
to identify at least three ways of finding a mentor who could identifying a mentor showed up in all the brainstorming
be a positive force in your leadership development. Keep in groups. Also look for creative suggestions, and remember
mind that for a mentoring relationship to work you have to that “useful” is embedded in the definition of creativity.
development. The difference, however, is that manage- Types of Leadership Development Programs
ment development programs offer courses that cover
In practice, the various programs for developing lead-
hundreds of topics within the functions of planning,
ers often overlap. For ease of comprehension, we divide
organizing, controlling, and leading. Table 15-3 lists a
these programs into six categories: feedback-intensive
sample of leadership development programs.
programs, skill-based programs, conceptual knowl-
Leadership development is important because with-
edge and awareness, socialization, action learning,
out a cadre of effective current and future leaders, a
and coaching. We also comment on the effectiveness of
company would lose its competitive edge. Part of the
leadership development.
reason is that leaders are either responsible for provid-
ing innovative ideas or for creating the conditions that
foster innovation (refer back to Chapter 11).
Feedback-Intensive Programs
Developing and training leaders is far more com- As implied at many places in this text, an important ve-
plex than merely sending aspiring leaders to a one- hicle for developing as a leader is to obtain feedback on
week seminar. The leadership development program various aspects of your behavior. A feedback-intensive
has to be appropriately sponsored, carefully designed, development program helps leaders develop by seeing
and professionally executed. Although online learning more clearly their patterns of behaviors, the reasons for
supplements other forms of leadership development, such behaviors, and the impact of these behaviors and
face-to-face interaction with other leaders and course attitudes on their effectiveness. Such a program also
presenters will most likely remain popular. Leader- helps leaders or potential leaders find more construc-
ship development programs for C-level executives are tive ways of achieving their goals. 360-degree is widely
less frequently conducted online because executives used in organizations of every type, including corporate
believe that face-to-face contact with professors and government, non-profit, military, and education. As de-
other executives is an important part of the learning scribed in Chapter 4, 360-degree feedback is a promi-
process. nent process for facilitating leadership development.34
Table 15-3 A Sampling of Leadership Development Programs Offered by Universities and Training and
Development Firms
High-Performance Leadership
Strategic Business Leadership: Engagement, Performance, and Execution
Building an Organizational Culture of Diversity, Equity, and Inclusion
Leveraging Artificial Intelligence for Innovation and Organizational Performance
Leading with Data and Analytics
Reinventing Your Business Strategy
Building a Sustainable Organization
The Disney Approach to Leadership Excellence
Leading Change and Innovation
Leading High-Performing Teams
Building Better Work Relationships
Fostering Psychological Safety in the Organization
Emerging Leaders Program
Leading into the Future
Developing Exemplary Leaders: Key Practices for Achieving Results
The Voice of Leadership: How Leaders Inspire, Influence, and Achieve Results
Leading Into the Future: Managing in a Changing World
The Leader Within
Note: Organizations offering such seminars and courses are the Wharton School of the University of Pennsylvania, the University of
Michigan Business School, the University of Chicago Graduate School of Business, the Cornell University School of Industrial and
Labor Relations, the Northwestern Kellogg School of Management, the Massachusetts Institute of Technology, MIT Sloan School
of Management, the Center for Creative Leadership, Chicago Booth (the University of Chicago), Dale Carnegie Training, the World
Business Forum, Stanford Executive Briefings and DVDs and Video Streaming, Tuck Executive Program at Dartmouth, and the Disney
Institute.
An instructive point about feedback-intensive pro- The most effective training involves competition.
grams, as well as practically all forms of leadership de- Having teams go up against each other is a powerful
velopment, is that the person being developed needs to motivator for people to test and hone their skills. An-
follow up. If you learn that you tend to shut people off other advantage of simulations for leadership training
with an angry smirk on your face, unless you practice is that making mistakes and learning from a simulation
removing that smirk, you have not gained much from is better than failing in the outside world.37
the feedback. In the words of well-known leadership Simulations are also used to give managers the op-
coach Marshall Goldsmith, “If you go to a class and portunity to work on problems that approximate those
don’t do any follow-up, it’s a complete waste of time.”35 faced by the company. For example, at Macy’s Leader-
ship Institute in Cincinnati, Ohio teams of four or five
Skill-Based Programs middle managers tackle problems such as contending
with an underperforming juniors department.38
Skill training in leadership development involves ac-
quiring abilities and techniques that can be converted Conceptual Knowledge and Awareness Programs
into action. Acquiring knowledge precedes acquiring
A standard university approach to leadership develop-
skills, but in skill-based training the emphasis is on
ment is to equip people with a conceptual understanding
learning how to apply knowledge. A typical example
of leadership. The concepts are typically supplemented
would be for a manager to develop coaching skills, so
by experiential activities such as role playing and cases.
the manager can be a more effective face-to-face leader.
Conceptual knowledge is very important because it
Skills training, in short, involves a considerable ele-
alerts the leader to information that will make a differ-
ment of how to.
ence in leadership. For example, if a person studies how
Five different methods are often used in skill-based
a leader brings about transformations, the person can
leadership training: lecture, case study, role play, behav-
put these ideas into practice. Table 15-3 presents exam-
ioral role modeling, and simulations. Because the first
ples of the types of conceptual knowledge contained in
three methods are quite familiar, only the last two are
leadership development programs.
described here. Behavioral role modeling is an extension
A promising area of conceptual knowledge for lead-
of role playing and is based on social learning theory.
ership development is the application of neuroscience,
You first observe a model of appropriate behavior, and
or brain science, to enhance effectiveness. Knowing a
then you role-play the behavior and gather feedback. A
few facts about how the brain functions can provide
person might observe a video of a trainer giving positive
leaders new insights, or reinforce existing practices.
reinforcement, then role-play giving positive reinforce-
Several examples follow:
ment. Finally, the classroom trainer and the other par-
ticipants would offer feedback on performance. • Neuroscience reinforces the idea that people respond
An example of a complex skill that might be taught well to short term challenges because they expe-
via behavioral role modeling is the ability to encourage rience a surge of dopamine from achieving a goal
a positive team climate and psychological safety. To- quickly. It is therefore helpful to break large goals
ward this end, the leader would be shown how to use into objectives and tie these objectives to rewards.
consultative supportive leadership to demonstrate that • Neuroscience suggests that biases are a natural part
all ideas are welcome, and will not result in retalia- of human functioning. The leader can therefore
tion.36 The leader, however, might not welcome hateful, take extra steps to control bias, such as establishing
disparaging, and hostile suggestions. objective criteria when selecting a candidate to join
Simulations give participants the opportunity to the group.
work on a problem that simulates a real organization.
• Neuropsychological evidence reinforces common
In a typical simulation, participants receive a digital
knowledge that if we want to communicate effec-
packet of information about a fictitious company. The
tively with group members, it is important to be
participants are given details such as the organization
simple, clear, and concise and make frequent eye
chart, the company’s financial status, descriptions of
contact.39
the various departments, and key problems facing the
organization and/or organizational units. Participants One of the reasons for the continuing acceptance of
then play the roles of company leaders and devise solu- university-based conceptual knowledge programs for
tions to the problems. During the debriefing, partici- leadership development is that these programs often
pants receive feedback on the content of their solutions address topics of immediate concern to business. For
to problems and the methods they used. The group example, programs have been developed to help man-
might be told, for example, “Your decision to form a agers provide leadership in using social media, par-
strategic alliance was pretty good, but I would have ticularly for users of mobile devices, to the company’s
liked to have seen more group decision making.” advantage.
Socialization Programs might be able to improve in an area that is preventing

From the company standpoint, an essential type of them from becoming a leader, or blocking further prog-
leadership development program emphasizes becom- ress as a leader.
ing socialized—becoming acclimated to the company Leadership coach Julie Cohen describes how she
and accepting its vision and values. Senior executives helped an SAP sales support executive move into a new
make presentations in these programs because they leadership role by reshaping his image of being quiet
serve as role models who thoroughly understand the and reflective. He was encouraged to present himself as
vision and values participants are expected to perpet- an innovator and expert on public sector clients. Cohen
uate.40 Many of the other types of programs presented suggested that he promote himself and his skills rather
so far also include a segment on socialization, particu- than assuming “people would see his ability and tap
larly in the kickoff session. Quite frequently, the chief him on the shoulder.” The client advanced so rapidly
executive makes a presentation of the company’s vision in his interpersonal skills that an SAP executive com-
and values. An important purpose of a socialization mented, “I barely recognized him.”42
program is to help leaders sustain the organizational An analysis of 84 studies about executive coach-
culture, such as placing a high priority on honest dealing concluded that it might be the most effective form
ing with each other and customers. of leadership development. Among the many posi-
tive outcomes from coaching related to leadership
Action Learning Programs effectiveness are (a) enhancement of the manage-
ment and development of others, (b) improved team
A directly practical approach to leadership develop-
player and team-building skills, (c) better ability to
ment is for leaders and potential leaders to work to-
build cross-functional relationships, and (d) improved
gether in groups to solve organizational problems
agenda setting skills.43
outside their usual sphere of influence. You will recall
that action learning is part of the learning organization,
Evaluation of Leadership Development Programs
as described in Chapter 13. Much of the development
relates to problem solving and creativity, yet collaborat- Many companies evaluate their leadership develop-
ing with a new set of people from your firm can also ment programs to see if they are cost effective. In a
enhance interpersonal skills. large company, for example, a comparison would be
At one time, executives at Goodyear Tire & Rubber made of the ratings from superiors and subordinates
Company decided to change the business from a vol- for those leaders who participated in the program ver-
ume tire supplier to one that focused on market seg- sus those who did not. Another method of evaluating
ments, such as tires for construction equipment. A deep the outcome of a leadership development program
leadership bench was required to bring about these would be to compare the financial results of partici-
changes. An action learning format was included in pants versus nonparticipants.
developing the necessary number of leaders. Program
participants identified areas they wanted to learn more
about, and found learning partners to assist them. The
executive team developed the learning projects by iden- Leadership Succession
tifying real business issues. High-impact projects were
chosen, including a cost-reduction plan that had a ma-
Learning Objective 15.4 Describe the nature of leadership
jor impact on the supply chain. One measure of the succession.
success of the program is that within a year after the
program began, one half of the members received new In a well-managed organization, replacements for ex-
assignments or increased responsibilities, and 22 per- ecutives who quit, retire, or are dismissed are chosen
cent received promotions.41 through leadership succession, an orderly process of
identifying and grooming people to replace managers.
Coaching Succession planning is vital to the long-term health of
Executive coaching as described in Chapter 10 is clearly an organization, and therefore an important respon-
a form of leadership development because the manag- sibility of senior leadership. Instead of engaging in a
ers coached receive advice and encouragement in re- flurry of activity after a key person leaves the organiza-
lation to their leadership skills. A coach, for example, tion, the planning is done in an orderly way over time.
might advise a leader that giving more recognition for Succession planning is linked to leadership devel-
good performance would make that person a more dy- opment in two important ways. First, being groomed
namic leader. Coaching is perhaps the most direct ap- as a successor is part of leadership development. Sec-
proach to leadership development because the person ond, the process of choosing and fostering a successor
Leadership Succession 409
is part of a manager’s own development. Our approach The Emotional Aspects of

to understanding the leadership aspects of succession Leadership Succession
focuses on five topics: (1) how the board chooses a new
chief officer; (2) the emotional aspects of leadership Leadership succession should not be regarded as a de-
succession; (3) developing a pool of successors; (4) pro- tached, objective management process. Even financially
motion from within; and (5) characteristics of an effec- independent executives are likely to experience an emo-
tive leadership development program. Understanding tional loss when they are replaced; they might yearn for
these factors should lead to more success in new ap- the power and position they once possessed. A study in-
pointments to leadership positions. volving close to 1,400 firms points to a strong emotional
factor in succession. Founder CEOs who are strongly
emotionally attached to their firms are less likely to
How the Board Chooses a Successor
leave voluntarily. The specific emotional attachment un-
A major responsibility of the board of directors is to se- der study was personal identification with the firm, or
lect a successor to the chief executive, typically a CEO. the firm being a key part of the founder’s identity.46
The general approach is to follow standard principles Leadership succession in family-owned firms is
of human resource management selection, such as a highly emotional process for many reasons. Fam-
thoroughly screening candidates, including speaking ily members may fight over who is best qualified to
to several people who have worked with the individ- take the helm, or the owner and founder may not feel
ual. Conducting a background investigation to uncover that any family member is qualified. An intensely
any possible scandalous or illegal behavior is also im- emotional situation exists when the owner would like
portant. When the successor is an outsider, boards a family member to be the successor, yet no family
consistently use executive search firms (also known as member is willing. The business may therefore have to
headhunters) to locate one or several candidates. Even be sold or simply abandoned; in any case, its identity
when the board has an outside candidate in mind, a will be lost.
search firm might be hired to act as an intermediary. When a family member is chosen as a successor
A major challenge in choosing a new CEO is that among several qualified members, the traditional choice
many executives who want the top job lack experi- has been to choose the oldest sibling. New research sug-
ence as the chief executive officer. Yet few other roles gests that this tradition is lessening. One reason is that
in a company adequately prepare someone to become the later-born children have increased opportunities to
a CEO. Boards often select a person who has general learn about business in college, as opposed to learning
manager experience, thinking that such a role is com- in the family firm. As a result, the younger siblings have
parable to that of a CEO. Being a small-company CEO become viable candidates for the CEO/business owner
is frequently good preparation for being a CEO at a role. Primogeniture no longer rules!47
larger company. The emotional aspects of leadership succession are
George D. Kennedy, a person with experience on also evident when a business founder is replaced by an-
many boards, provides a few specifics of a representa- other leader, whether or not the enterprise is a family
tive approach to selecting an internal candidate for the business. After the sale of the company, the business
top executive position. First, the information from a founder often stays on in some capacity, perhaps as a
development program for successors must be carefully consultant or chair. Watching the new owner manage
reviewed, including documentation of performance. the business can be uncomfortable for the founder. The
Second, the board should have direct and regular con- issue transcends concerns about delegation. Entrepre-
tact with all of the promising candidates. Some of the neurial leaders typically are emotionally involved in the
contact should be formal; for example, the candidate firms they have founded and find it difficult to look on
should make regular presentations at board meetings. while somebody else operates the firm.
Informal connections are also important. Board mem- Emotional reactions to leadership succession also
bers should invest the time to develop a feel for the per- take place at the workgroup level, as described in a
sonal chemistry of the candidates through such means theory developed by Gary A. Ballinger and F. David
as casual conversations over dinner and lunch.44 Schoorman. For example, when a departing leader is
Whether selecting an insider or an outsider to suc- well liked by the group or team, it will be more difficult
ceed a given leader, the board is encouraged to obtain for the new leader to exert authority or to be accepted.
objective data about the candidate’s performance in Another problem is that when the previous leader was
addition to opinions about that person’s effectiveness.45 well liked, turnover in the group will be higher and pro-
Among these objective performance indicators would ductivity might be lower. Yet, on the positive side, if the
be profits, changes in stock price, new product intro- previous leader was disliked, turnover might be lower
ductions, employee turnover, and cost control. and productivity might be higher.48
Developing a Pool of Successors about change within the company.51 Furthermore, new-
comers often misread the political situation or overes-
Developing a pool of successors goes beyond succes-
timate the organization’s willingness to abandon old
sion planning, which usually involves identifying one
traditions and behaviors.52 An example of misreading
or two candidates for a specific job. The following steps
the political situation would be not recognizing who
are involved in developing a pool of successors (or suc-
are the most influential people at the company.
cession management):49
Promotion from within also offers the advantage of
• Evaluate the extent of an organization’s pending more hope to insiders because they believe they have
leadership shortage. Planning should begin several more opportunity for advancement within their own
years in advance of when the new leaders will be company. Company insiders promoted to a top position
needed. know the company, its culture, and its people but of-
• Identify needed executive competencies based ten do not see clearly the need for radical change. Also,
on the firm’s future business needs, values, and their many political ties may inhibit them from making
strategies. some necessary personnel shifts. Outsiders may recog-
nize the need for a new approach but may be limited
• Identify high-potential individuals for possible in-
because they do not understand the company culture
clusion in the pool, and assess these individuals to
or the industry. Harvard Business School Professor
identify strengths and developmental needs to de-
Joseph L. Bower recommends that companies nurture
termine who will stay in the high-potential pool.
insider–outsiders—internal candidates who have devel-
• Establish an individually tailored developmental oped an outside perspective.
program for each high-potential candidate that in- Insider–outsiders are frequently those who have
cludes leadership development programs, job ro- considerable experience away from the company main-
tation, special assignments, and mentoring. Rising stream (and away from headquarters), and experience
stars should be given the opportunity to change re- in taking on challenging opportunities. A frequent ex-
sponsibilities every three to five years. ample is an executive who spends several years running
• Select and place people into senior jobs based on a division of the company in another country. For in-
their performance, experience, and potential. While stance, a U.S. executive at Walmart might be assigned
in these positions, the leaders should have access to the position of president of Walmart of Canada for
to board members including making presentations. several years.
The managers develop a sense of what matters to A study indicated that board members who are
directors, and directors get to see firsthand the tal- appointed as CEO outperformed other types of candi-
ent in the pipeline. dates because they represent a strong blend of insider
• Continuously monitor the program and give it top and outsider. Board members have more company
management support. knowledge than a pure outsider. Yet, at the same time,
they don’t have the constraints of a pure insider with
Developing a pool of candidates, therefore, combines respect to making politically unpopular decisions or
evaluating potential with giving high-potential individu- bring about painful changes. For example, it is often
als the right type of developmental experiences. To the difficult for an insider to lay off a well-liked but under-
extent that these procedures are implemented, a leader- performing executive.53
ship shortage in a given firm is less likely to take place.
Characteristics of an Effective Leadership
Promotion from Within Development Program
A continuing debate related to succession planning is Leadership development programs have been presented
whether a company should promote an insider or an in a separate section in this chapter, yet leadership de-
outsider to a top position. Approximately 20–30 percent velopment also includes succession, and promotion
of boards replace outgoing CEOs with outside execu- from within. Here we highlight five characteristics of
tives.50 Yet research and analysis suggest that promot- an effective leadership development program.54
ing insiders with an outside perspective may be the best First, the program should involve both cognitive and
solution. A study conducted by the consultancy Booz experiential components. For example, the leader might
& Company found that CEOs hired from outside a com- study advanced coaching techniques, and then try out
pany are more than twice as likely to be dismissed as these techniques in role playing or on the job. Second,
those promoted from within. A major problem is that the developers should have both applicable academic
the outsider often does not understand how to bring credentials and experience in working with managers
and leaders. Academic credentials are particularly 2. Overcoming the resentment of the people in the
useful because the leadership development specialist group who wanted your leadership position. If
is more likely to take a research-based view of what is you are selected from among the group to be the
likely to work rather than simply promoting a fad. new leader, you will have to deal with the resent-
Third, senior executives should participate in the ment and envy of several direct reports who wanted
program. The participation of C-suite members en- your position. It can be helpful to deal openly with
hances the credibility of the program, and also increases the issue with such statements as, “I know that
the probability that the content of the program will be other people would be equally qualified to be the
implemented in the organization. For example, if mid- leader of the group. Yet management has chosen
dle managers are taught how to think strategically, ex- me for this position, at least for now. I respect your
ecutives should also implement more strategic thinking. expertise, and I need your contribution. I also want
Fourth, a key part of leadership development is for your respect for me in my job as the chosen leader.”
leaders to understand their own strengths and weak- 3. Building relationships and fostering teamwork
nesses. 360-degree evaluations are useful in helping quickly enough. As a new leader, a high priority
leaders develop more self-awareness, such as helping a is to build constructive relationships with subor-
person know what to do to become a better listener. dinates as quickly as possible, using many of the
Fifth, heavy emphasis must be placed on sustained techniques described in Chapter 9. Several direct
use of what knowledge and skills are learned in the lead- reports who were your former coworkers may at-
ership development program. One of the most frequent tempt to manipulate you and take advantage of
criticisms of development programs is that the leader is prior friendships to receive special treatment. It is
a changed person for about one week after the program, essential to build a professional, merit-based team
but then reverts to typical behavior. The leadership de- climate as soon as possible. In the words of career
velopment program providers might therefore develop a coach Aya Fubara Eneli: “Friendships work best be-
method following up with participants to see how well tween equals. If you were already friends with some
the application of new skills and knowledge is going. of the staff, expect those relationships to change. It’s
difficult to be a friend while giving orders and judg-
ing performance.”55
Challenges of Being a New Leader
4. Having realistic expectations about how much
People participate in leadership development pro- you can accomplish right away. The role of a
grams for two broad purposes: (1) preparing to be- leader/manager is not like that of a house painter—
come a leader for the first time, or (2) enhancing their you typically do not see sparkling results right
leadership skills, knowledge, and behavior for a cur- away. Patience is necessary. Many organizational
rent position or advancement into more leadership leaders as well as elected officials proclaim, “Every-
responsibility. thing will be different from day one.” Leadership
Everything that has been written in this book and involves building relationships, so the process will
discussed in your leadership course fits these two take more time than the implied in the two previous
broad purposes. Another way of preparing for becom- statements.
ing a leader for the first time is to think through some 5. Overcoming the need to be liked by everybody.
of the inevitable challenges in the role. The information The most admired leaders at every level are rarely
about the rewards and frustrations of occupying a lead- liked by everybody. By the nature of their roles,
ership role in Chapter 1 points to the challenges of oc- leaders make decisions that not everybody agrees
cupying a formal leadership position for the first time. with. The changes you bring about may hurt the
In addition, consider these five additional challenges feelings of some people and jeopardize their posi-
for the first-time leader: tions. Your role is to establish and implement goals
1. Uncertainty about how much time to spend that will result in the greatest good.
leading versus doing individual tasks. From the 6. Being able to deal with sensitive and delicate
first-level supervisor of entry-level workers to the issues. Leadership is not all about developing
chairperson of the board, leaders spend some time strategy, creating an inclusive culture, leading or-
as individual contributors, including preparing bud- ganizational change, and being charismatic. It
gets, thinking of ideas for new products, and making also involves dealing with dozens of personal is-
financial deals. As a new leader, you have to work sues, such as a team member who is absent too
with your manager and perhaps your direct reports frequently, a group member who snores while
to find the right balance between doing and leading. napping in the cubicle, and a team member who
Building for the Future

Our close-to-final skill-building exercise, the use of a feed- members, Arianna is free to comment. It is then the next
back circle, encompasses many aspects of leadership person’s turn to be the feedback target. Class members
covered in this and the previous fourteen chapters. Ten who are not in the circle observe the dynamics of what is
members of the class arrange their chairs in a circle. One happening and report their observations after the circle
person is selected as the feedback target, and the other nine finishes. With diligence, the whole process will take about
people take turns giving the person supportive feedback. ninety minutes. If time permits, a new feedback circle can
Assume it is Arianna’s turn. Each person in the circle gives form. Alternatively, the class can break into several circles
Arianna two pieces of feedback: (1) her best leadership attri- that operate simultaneously, or run just one circle with ten
bute, and (2) how she needs to develop for the future. volunteers.
The feedback should take about thirty seconds per
feedback giver. After receiving input from all of the circle
frequently tells offensive jokes. A new leader there- Leadership Skill-Building Exercise 15-2 may give
fore sometimes has to act in the role of a supervi- you a few good insights into the type of leader you are
sor who deals with uncomfortable problems. The becoming and how well you fit the role of a new or
leader must be willing to confront and counsel experienced leader.
workers about issues that are more personal than
strictly job-related.
Summary
Leadership and management development are widely development. Most high-level leaders are intelli-
practiced in a variety of organizations and take many gent, well-informed people who gather knowledge
forms, including self-development. Self-awareness throughout their career. Learning agility is also
involves the insightful processing of feedback about important. The best experiences for leadership de-
oneself to improve personal effectiveness. Individu- velopment are those that realistically challenge the
als with a strong career growth orientation are more manager. An important part of capitalizing on chal-
skilled at self-development of leadership character- lenging experiences is for the leader/manager to be
istics and behavior. Underlying a growth orientation given leeway in how to resolve the problem. Two
is a growth mindset. A promising area of self-aware- important aspects of leadership experience are work
ness is for leaders to recognize their standing on two associates and the task itself (such as a complex and
key dimensions of leadership: forceful versus en- ambiguous assignment). An extreme approach to
abling, and strategy versus operational. developing leadership skills is to be assigned respon-
Leadership development requires consider- sibility for an area in which you lack the appropriate
able self-discipline. For example, self-discipline is skills or knowledge of the business. Being in a learn-
needed to monitor one’s behavior to ensure that the ing mode also facilitates learning from experience.
necessary self-development takes place. Broad experience is important for leadership
Education, leadership experience, and men- development, as suggested by membership on a
toring are all major contributors to leadership cross-functional team. An effective type of broad
experience early in a career is to perform technical and values. Action learning is a directly practical
work in one’s specialty, combined with frontline su- approach to leadership development and may be
pervision. People who profit from their experience directed at areas outside the participant’s expertise.
have good potential for leadership. Coaching is a highly personal way of developing as
Another experience-based way to develop lead- a leader, and research suggests that it might be the
ership capability is to receive mentoring. Although most effective form of leadership development.
usually an informal relationship, mentoring can Leadership succession is linked to leadership de-
also be assigned. The human resource department velopment because being groomed as a successor is
often coordinates a formal mentoring program. part of a leader’s development. Boards of directors
Shadowing is a form of mentoring, and online men- use standard selection methods in choosing a CEO.
toring is widely used. Mentors enhance the career In addition, they look for both formal and informal
of protégés in many ways, such as by recommend- contact with insiders. When recruiting an outsider,
ing them for promotion and helping them establish organizations often employ executive search firms.
valuable contacts. Also, the mentor can serve as a Leadership succession is highly emotional for the
model for effective (or ineffective) leadership. Hav- leader who is being replaced, especially when a
ing more than one mentor is helpful because a men- founder sells a business. The succession problem
toring relationship can fail. As a result of concerns in a family business often leads to conflict among
about a mentoring relationship involving sexual ha- family members. Less emphasis is placed today on
rassment, the senior person should exert extra care choosing the oldest sibling as the successor CEO in
to keep the relationship professional. a family business.
Feedback-intensive development programs help One way to cope with potential shortages of
leaders develop by seeing more clearly their pat- leaders is to identify a pool of high-potential in-
terns of behavior, the reasons for such behaviors, dividuals and provide them with developmental
and the impact of these behaviors and attitudes experiences. Promotion from within to top-level
on their effectiveness. Skill training in leadership leadership positions is often more effective than
development involves acquiring abilities and tech- recruiting an outsider. Research and analysis sug-
niques that can be converted into action. Such gest that promoting company insiders with an
training involves a considerable element of how outside perspective may be the best solution to
to. Five methods of skill-based training are lecture, succession through an internal versus an external
case study, role play, behavior role modeling, and candidate.
simulations. During simulations, participants play One way of preparing for becoming a first-time
the role of company leaders and devise solutions to leader is to think through some of the inevitable
problems. Simulations can also involve working on challenges in the role, including the following: un-
hypothetical company problems. Feedback on per- certainty about how much time for leading versus
formance is provided. doing individual tasks; overcoming resentment of
A standard university approach to leadership people who wanted your job; quickly building re-
development is to equip people with a conceptual lationships and fostering teamwork; having real-
understanding of leadership. The concepts can be istic expectations about quick accomplishments;
applied to leadership situations. From the company overcoming the need to be liked by everybody;
standpoint, an essential type of leadership develop- and being able to deal with sensitive and delicate
ment is becoming socialized in the company vision issues.
Key Terms
growth mindset 395 mentor 403 feedback-intensive
self-awareness 395 shadowing 403 development program 406
self-discipline 396 reverse mentoring 404 leadership succession 408
A major determinant of whether a person will de- conceptual knowledge. He might be a good candi-
velop as a leader later in life is the motivation to date for a leadership development program con-
lead, as mentioned in Chapter 2. Typically, this centrating on formal knowledge about leadership.
motivation develops early in life. The motivation Sources of data for assessing leadership develop-
is manifested in such activities as volunteering for mental needs include the following:
leadership roles, as well as taking the initiative to
1. Self-perceptions of developmental needs, in-
lead in sport, club, or neighborhood activities. It is
cluding the results of many of the diagnostic
therefore important to assume leadership roles in
instruments presented in this text
both work and personal life as early in your career
2. Perceptions by superiors, subordinates, and
as possible.
peers of the person’s developmental needs, in-
An important method for enhancing both the
cluding 360-degree survey results
acceptance and the effectiveness of leadership de-
3. Psychological evaluation of developmental
velopment is needs analysis, the diagnosis of the
needs
needs for development. A needs analysis is based on
4. A statement of organizational needs for devel-
the idea that there are individual differences among
opment, such as the importance of leaders who
leaders and future leaders. For example, Jasmine
can deal effectively with diversity (within the
might have excellent conceptual knowledge about
company, with customers, and globally)
leadership but limited team experience. She might
be a good candidate for outdoor training. Jordan Multiple sources of data are useful because of
might be an excellent team leader with limited possible errors in perception, biases, and favoritism.
Discussion Questions and Activities 6. Why is being a member of a cross-functional team

1. The Fire Department of New York (FDNY) offers considered to be helpful experience for a future
a leadership development program that includes leader?
simulating being a firefighter by going through 7. A number of elementary schools have programs
emergency drills such as rescuing passengers from with a title such as “Everybody is a leader,” or “The
a subway accident. Assuming that you have the leader in me.” What do you think of the merits of
physical capabilities, would you be willing to par- conducting leadership development with children
ticipate in such a challenge as part of your lead- younger than twelve years?
ership and teamwork skills development? Explain 8. Identify at least one developmental need with
your reasoning. respect to leadership skills for the current pres-
2. Many business executives believe that playing team ident of the United States. Point to any specific
sports helps a person develop as a leader. Based on behavior of the president that indicates the need
your knowledge of leadership development, where for the particular development you specify. (At-
do you stand on this issue? tempt to be objective rather than political in your
3. How convinced are you that having a growth mind- answer.)
set contributes to a leader’s effectiveness? 9. Ask an experienced leader what the person
4. In terms of developing as a leader, should an execu- thinks is the most effective method of develop-
tive take seriously nasty comments made about the ing leadership skills. Bring your findings back to
executive on Facebook, Twitter, and Instagram? class.
5. Suppose you aspired to become a senior manager 10. Now that you have completed a course in lead-
in a large company. How would working as an of- ership, what do you think of this ancient adage:
fice supervisor, production supervisor, or manager “Leadership shouldn’t be a popularity contest.”?
in a quick-service restaurant help you achieve your
goal?
Holly, the Potential Team Leader do leadership. Yet I did form an environmen-
Holly works as an environmental engineer at a tal club in high school that lasted about six
pollution prevention institute in Philadelphia, months. We would go around different neigh-
Pennsylvania. The institute is funded by the state, borhoods giving people tips on how to protect
and helps companies become more sustainable the environment if we saw a problem. Come to
for workers, the public, the environment, and the think of it though, I did head up a subgroup in
economy. The institute has been growing based our department to analyze what toxic and re-
on the many useful and money-saving suggestions cyclable materials were being placed in dump-
offered to business firms. For example, Holly and sters. It was a dirty job, but somebody had to do
her colleagues have help companies save money it (laughs).
by recycling water and reducing food waste. The Malcolm: What about your personality, Holly?
demands on Holly’s team have expanded to the What leadership traits do you have?
point that the manager of the group, Malcolm, Holly: People do ask my opinion about envi-
has decided to create the position of team leader. ronmental engineering topics, as well as informa-
Today Malcolm, the director of the institute, tion technology problems. I get along with people
is interviewing Holly to recommend whether she pretty well, and I also set a good example of be-
should be promoted to team leader. If Malcolm ing a hard worker. I think that’s important for a
thinks Holly is qualified to be team leader, she leader.
will be interviewed also by two other managers Malcolm: What is your long-term career goal?
at the institute. A partial transcript of the inter- Holly: I wanted to be known as an environ-
view follows: mental engineer who helped create a better envi-
Malcolm: As I explained in my email, we want ronment without being a fanatic or a pest.
to talk about the possibilities of you becoming the Malcolm: Would you accept the team leader-
first team leader for the environmental engineering ship position if it were offered to you within two
group. Your performance has been outstanding. I weeks.
am aware also that you majored in environmental Holly: My tentative answer is yes, but I would
engineering, and took a cross-major in business have to have more details about what the posi-
administration. Do you have any interest in be- tion would entail. Becoming a team leader would
coming the team leader of your group? be a big step for me.
Holly: The thoughts of becoming a team Malcolm: It’s been a pleasure interviewing
leader intrigue me. Yet, I would only want to be you, and you will be hearing back from me
the team leader if I still had the opportunity to soon.
do environmental engineering. I am passionate
about my chosen field. Questions
Malcolm: What kind of leadership experiences 1. Based on her interview responses, explain
have you had so far, both on and off the job? whether Malcolm should recommend that
Holly: I’ve always loved technical work and Holly be promoted to team leader.
math since early childhood. As a teenager I was 2. What has Holly revealed that would suggest
a little nerdy (laughs). So, I didn’t jump in and she might be an effective team leader?

One student plays the role of Malcolm who regards really wants the position. As a result, she will attempt
Holly as a good possibility for the team leadership to present to convince Malcolm that she is the person
position. However, he is going to dig deeper today as for the job. Feedback from other students is welcome
to whether Holly has leadership potential. Another in terms of Holly’s qualification and the interviewing
student plays the role of Holly who has decided she skills of Malcolm.
Ashok Eyes the Executive Suite manufacturing complex. Upon accepting the
Ashok comes from a family whose members com- distribution center assignment. Ashok told his
prise successful business executives, including manager, “I will do my best to be an outstanding
his parents. Since he was a teenager, Ashok has performer here. But I am wondering if spending
been fascinated with the prospect of becoming a time in a distribution center will really enhance
corporate executive. In addition to more typical my credentials for becoming an executive in this
teenage interests, Ashok would read frequently company.”
the business section of his local newspaper, The Upon completing his eighteen-month supervi-
Wall Street Journal, and Forbes either in print or sory assignment, Ashok’s performance was evalu-
online. He also enthusiastically read biographies ated. His manager noted that his performance was
of business executives including Warren Buffet, slightly above average, but that he seemed a little
Henry Ford, and Martha Stewart. too focused on his career ambitions. At the same
Ashok majored in industrial engineering as time, he was not focused enough on the good of
an undergraduate, thinking that such a program the company. Ashok’s next assignment was as a
would give him a solid base for understanding the team leader of a logistics group that kept track
operations of a business. He followed up his under- of the flow of equipment that was manufactured
graduate degree with an MBA, with an emphasis overseas. Given that about 80 percent of the com-
on leadership and organizational behavior. Ashok pany’s manufacturing was globally outsourced, lo-
said to himself, his family, and friends repeatedly, gistics was highly valued by the company.
“I know I have what it takes to get into the C-suite.” A few weeks after Ashok began his new assign-
With first-rate interpersonal skills to match ment, he met with his company-assigned mentor,
his solid education, Ashok was well received by Jessica, a manufacturing executive. Asked how
an on-campus recruiter for a major player in high- his work was going at the company, Ashok re-
tech, a manufacturer of computer equipment and plied, “Maybe you can help me. I’m enjoying my
services. He was selected into a management train- work, but I think that my career is inching along
ing program in which he would be given approx- when I should be making big strides. I would
imately one-year assignments in several business like to be assigned to a strategy team, or maybe
functions. Ashok’s initial assignment was as a mem- a new product development team. In this way, I
ber of a team whose purpose was to help reduce would get the experience and the visibility I need
the manufacturing costs of desktop computers. to move more quickly into the C-suite.”
Six weeks after being assigned to the team, Jessica responded, “Ashok, I think highly of
Ashok informed his team leader that he was you, but your idea of career progress is old fash-
developing his skills in Mandarin Chinese, a ioned. You need to focus more on performance
language he had studied in college. As Ashok ex- than promotion.”
plained to his team leader, “Mandarin is going to
help me because so much of our manufacturing Questions
is outsourced to China. Besides, a second lan- 1. In what way is this case about leadership
guage can only be an asset for a future executive.” development?
After about fifteen months on the team, 2. What do you recommend that Ashok do to fa-
Ashok was appointed as the supervisor of cilitate his path to an executive position?
an order-fulfillment group within a distribu- 3. To what extent do you think Jessica’s com-
tion center of the company within the same ment is justified?

One student plays the role of Ashok who has arranged listens but wants to avoid making any commitments
to have a brief meeting with Peter, the company di- to Ashok. At the same time Peter thinks that perhaps
rector of management and organization development. Ashok is expecting too much from the company. Ob-
Ashok wants to plead his case that he has potential servers might want to look for signs of leadership po-
to be an executive in the company. He wants to make tential Ashok displays during his interview.
sure that he is not overlooked by the company. Peter
The final entry for your leadership portfolio deals more with people are crying out for attention, so I will try to pay more
the future than the present. As you build your leadership ca- attention to a difficult person should I encounter one.
reer in either a formal or informal leadership position, update • We had a major flood in the area last week, and our office
your journal from time to time, perhaps once a quarter. Re- became inundated. We had to do something quick be-
view what experiences you have had that contribute to your fore we were damaged so badly that we could not serve
development as a leader. Entries might take forms such as our customers. Our supervisor was out of town. I called
the following: her on her phone and asked for her authorization to be
in charge of organizing our salvage operation. I spear-
• In January, my company sent me to a seminar about
headed an effort that helped salvage a lot of equipment
dealing with difficult people. I came away with a few good
and personnel records. I think I really polished my crisis
insights about helping to turn around a difficult person,
management skills.
such as explaining how the person’s behavior was hurting
productivity and morale. I also learned that many difficult
Analyzing a Local Leader

As an individual or group project, identify a leader in your both the positive and negative personal characteristics,
community who you would like to analyze from the stand- along with the developmental needs of this particular leader.
points of strengths, weaknesses, and needs for develop- If this is a group project, look to see if there is any con-
ment. Among the possibilities of a leader to analyze would sistency across groups with respect to the traits, behaviors,
be a prominent business person, the president of your learn- and developmental needs of the leader chosen. If you think
ing institution, or an athletic coach. Use information from the analysis is constructive, you might send a copy to the
anywhere in the text, plus your own thoughts, to identify leader in question.
Notes
1. Original story based on facts and observations in 13. Herminia Ibarra, “The Authenticity Paradox,”
the following sources: Craig Leggo, “Training & Harvard Business Review, January–February 2015,
Development Case Study: The Ritz-Carlton Ho- p. 59.
tel Group,” www.craigleggo.com, June 29, 2017, 14. Cited in Vadim Liberman, “Will Your People Be
pp. 1–13; Melanie Dorange, “Al Bustan Palace, Ready?” The Conference Board Review, December
A Ritz-Carlton Hotel Develops the Next Genera- 10,2016, p. 5.
tion of Omani Hoteliers,” Al Bustan Palace (www 15. Dori Meinert, “Fake It ‘Til You Make It’,”
.ritzcarlton.com), pp. 1–4. Retrieved September 11, HR Magazine, October 2015, p. 19.
2016; “The Voyage Global Leadership Development 16. Claudio Fernández-Aráoz, “To Grow as a Leader,
Program,” (www.marriott.com), September 12, Seek More Complex Assignments,” Harvard
2016, pp. 1–2; “Leading with Empathy, Authority, and Business Review (https://hbr.org), July 20, 2016,
Accountability,” https://ritzcarltonleadershipcenter p. 2.
.com, June 6, 2021, pp. 1–3; 17. Morgan W. McCall, “Leadership Development
2. Data presented in Chris Westfall, “Leadership De- Through Experience,” Academy of Management Ex-
velopment is a $366 Billion Industry: Here’s Why ecutive, August 2004, pp. 127–130; Jean Martin and
Most Programs Don’t Work,” Forbes (www.forbes Conrad Schmidt, “How to Keep Your Top Talent,”
.com), June 20, 2019, p. 1. Harvard Business Review, May 2010, p. 58.
3. Sydney Finkelstein, “Why We Loathe Leadership 18. “How Great Leaders Benefit from Failure,” Man-
Training,” BBC – Capital (www.bbc.com), July 20, ager’s Edge, November 2004, p. 3; Steven Snyder,
2016, p. 1. Leadership and the Art of the Struggle: How Great
4. Ronit Kark, “Games Managers Play: Play as a Leaders Grow through Challenge and Adversity
Form of Leadership Development,” Academy of (San Francisco: Berrett-Koehler Publishers, 2013).
Management Learning & Education, vol.10, no. 3, 19. Cynthia D. McCauley and Morgan W. McCall Jr.
September 13, 2011, p. 507. (Eds.), “Using Experience to Develop Leadership
5. David V. Day et al., “Advances in Leader and Lead- Talent: How Organizations Leverage On-the-Job
ership Development: A Review of 25 Years of Re- Development” (San Francisco, CA: Wiley, 2014),
search and Theory,” The Leadership Quarterly, p. 5.
February 2014, p. 68. 20. Peter A. Heslin and Lauren A. Keating, “In Learn-
6. Carol S. Dweck, Mindset: The New Psychology of ing Mode? The Role of Mindsets in Derailing and
Success (New York: Ballantine Books, 2006, 2016). Enabling Experiential Leadership Development,”
7. Simone Stolzoff, “How Do You Turn Around the The Leadership Quarterly, June 2017, pp. 367–384.
Culture of a 130,000-Person Company? Ask Satya 21. Richard L. Hughes, Robert C. Ginnett, and Gordon
Nadella,” Quartz at Work (https://qz.com), pp. 1–7. J. Curphy, Leadership: Enhancing the Lessons of
8. Scott N. Taylor, Mo Wang, and Yujie Zhan, “Going Experience (New York: McGraw-Hill/Irwin, 2006),
Beyond Self-Other Rating Comparison to Mea- pp. 58–61.
sure Leader Self-Awareness,” Journal of Leadership 22. Cited in Joann S. Lublin, “Leadership Skills Ease
Studies, vol. 6, no. 2, 2012, p. 7. Stressful Promotion to Uncharted Area,” The Wall
9. Research cited in “Are You a Self-Aware Leader?” Street Journal, July 3, 2007, p. A7.
Knowledge @Wharton (https://knowleege.wharton. 23. Douglas A. Ready, Jay A. Conger, and Linda A. Hill,
upenn,edu) June 14, 2017, p. 2. “Are You a High Potential?” Harvard Business
10. Robert Hogan and Rodney Warrenfeltz, “Educat- Review, June 2010, p. 82.
ing the Modern Manager,” Academy of Management 24. Beth K. Humberd and Elizabeth D. Rouse, “Seeing
Learning and Education, March 2003, p. 74. You In Me: Personal Identification in the Phases of
11. Bob Kaplan and Rob Kaiser, The Versatile Leader: Mentoring Relationships,” Academy of Management
Make the Most of Your Strengths—Without Review, July 2016, p. 435.
Overdoing It (San Francisco: Pfeiffer, 2006). 25. Thomas J. DeLong, John J. Gabarro, and Robert
12. Roseanne J. Foti, Bethany C. Bray, Nicole J. J. Lees, “Why Mentoring Matters in a Hypercom-
Thompson, and Sarah F. Allgood, “Know Thy- petitive World,” Harvard Business Review, January
self, Know Thy Leader: Contributions of a 2008, p. 117; “The Give and Take of Mentoring,”
Pattern-Oriented Approach to Examining Leader The Wall Street Journal, May 23, 2013, p. B5.
Perceptions,” The Leadership Quarterly, August 5,
2012, p. 703.
Notes 419
26. John CV. Maxwell, “Cultivate Wisdom: Learn to 42. Sue Shellenbarger, “Career Makeover: Shaking Off
Excel as a Mentor or Mentee,” Success, March a Shy Image,” The Wall Street Journal, January 15,
2018, p. 28. 2014, p. D3.
27. “GE’s Jeff Immelt on Leadership, Global Risk and 43. Andromachi Athanasopoulou and Sue Dopson,
Growth,” Knowledge@Wharton (http://knowledge “A Systematic Review of Executive Coaching Out-
.wharton.upenn.edu/), April 30, 2013, p. 3. come: Is it the Journey or the Destination that Mat-
28. Joann S. Lublin, “Protégé Finds Mentor Gave Her ters the Most?” The Leadership Quarterly, February
a Big Boost, but Shadow Lingers,” The Wall Street 2018, pp. 70–88.
Journal, September 7, 2004, p. B1. 44. Cited in Jay W. Lorsch and Rakesh Khurana,
29. Jennifer Jordan and Michael Sorell, “Why Re- “Changing Leaders: The Board’s Role in CEO Suc-
verse Mentoring Works and How to Do It Right,” cession,” Harvard Business Review, May–June
Harvard Business Review (https://hbr.org), October 3, 1999, p. 100.
2019, p. 4. 45. Todd Henneman, “Most Companies Err on Prep-
30. Quoted in Joann S. Lublin, “How to Cope When ping Heir Apparents,” Workforce Management,
Your Mentor Moves On.” The Wall Street Journal, January 2012, p. 8.
November 23, 2016, p. B5. 46. Joon Mahn Lee, Dalee Yoon, and Steven Boivie,
31. Dawn E. Chandler and Lillian Eby, “When Mento- “Fonder CEO Succession: The Role of CEO Orga-
ring Goes Bad,” The Wall Street Journal, May 24, nizational Identification,” Academy of Management
2010, p. R3. Journal. February 2020, pp. 224–245.
32. Cited in “The Give and Take of Mentoring,” 47. Research reported in Katie Deighton, “Should the
The Wall Street Journal, p. B5. Oldest be the Successor?” The Wall Street Journal,
33. Susan Elaine Murphy, Ellen A. Ensher, and November 2, 2020, p. R9.
Xiao-min Xu, “5 Strategies to Diminish Sexual 48. Gary A. Ballinger and F. David Schoorman,
Harassment and Toxicity in Mentoring,” Chief “Individual Reactions to Leadership Succession
Learning Officer (www.chieflearningofficer.com), in Workgroups,” Academy of Management Review,
September 15, 2020, pp. 1–7. January 2007, pp. 118–136.
34. Day et al., “Advances in Leader and Leadership 49. William C. Byham, “Grooming Next-Millennium
Development,” p. 70. Leaders,” HR Magazine, February 1999, pp. 46–50;
35. Quoted in Jared Sandberg, “The Sensitive Me,” Joseph Weber, “The Accidental CEO,” Business-
The Wall Street Journal, April 11, 2006, p. B1. Week, April 23, 2007, p. 068; Henneman, “Most
36. Aaron De Smet, “Psychological Safety and the Crit- Companies Err on Prepping Heir Apparents,” p. 8.
ical Role of Leadership Development,” McKinsey 50. Even Harrell, “Succession Planning: What the Re-
& Company (www.McKinsey.com), February 11, search Says,” Harvard Business Review, December
2021, pp. 1–10. 2018, pp. 70–74.
37. Lori Hawkins, “Using Role-Playing to Create 51. Joseph L. Bower, “Solve the Succession Problem by
Real-World Success,” Austin American Statesman, Growing Inside-Outside Leaders,” Harvard Busi-
January 14, 2014. ness Review, November 2007, pp. 90–96.
38. Leadership Development: The Secret to Success 52. Ram Charan, “The Secrets of Great CEO Selec-
at Macy’s” www.bts.com. Copyright © 2015 BTS, tion: An Insider’s Guide,” Harvard Business Review,
pp. 1–2. December 2016, p. 63.
39. “Interview with Michael Platt: Neuroscience Can 53. James M. Citrin and Dayton Ogden, “Succeeding at
Help You Become a Better Leaders,” Knowledge @ Succession,” Harvard Business Review, November
Wharton (https://knowledge.wharton.upenn.edu), 2010, pp. 29–31.
October 27, 2020, pp. 1–10; Thomas Griffin, “How 54. Deborah Rowland, “Why Leadership Development
Brain Science Cam Make You a Better Leader,” Busi- Isn’t Developing Leaders,” Harvard Business Re-
ness 2 Community (www.businesws2community view (https://hbr.org), October 14, 2016, pp. 1–7;
.com), October 1, 2020, pp. 1–4. Finkelstein, “Why We Loathe Leadership Training,”
40. Jay A. Conger and Beth Benjamin, Building Lead- pp. 2–3; Meinert, “5 Characteristics of Companies
ers: How Successful Companies Develop the Next with Top Leaders,” p. 20.
Generation (San Francisco, CA: Jossey-Bass, 1999), 55. Quoted in Sonja D. Brown, “Congratulations,
p. 79; Conger, “Can We Really Train Leadership,” You’re a Manager, Now What?” Black Enterprise,
www.strategy-business.com, 2006. April 2006, p. 104.
41. Gary Vander Lind and Amy Alexy, “All for To-
morrow’s Leaders,” HR Magazine, August 2013,
pp. 27–28.
Glossary
NOTE: The number in brackets following each term refers Coercive power The power to punish for noncompliance;
to the chapter in which the term first appears. power based on fear. [7]
Abusive supervision A dysfunctional leadership behavior Cognitive factors Problem solving and intellectual skills
that adversely affects its targets and the organization as a collectively. [2]
whole. [6]
Commitment The most successful outcome of a leader’s
Achievement motivation Finding joy in accomplishment influence tactic: The person makes a full effort. [8]
for its own sake. [2]
Compliance Partial success of an influence attempt by a
Agility The ability to quickly reorient the organization to leader: The person makes a modest effort. [8]
capitalize on valuable opportunities. [13]
Consensus leader The person in charge who encourages
Altercasting A principle of persuasion in which you group discussion about an issue and then makes a decision
characterize another person as a certain type to encourage that reflects general agreement and that group members
that person to behave in a desired manner. [12] will support. [4]
Anti-bias training A program to help employees discover Consideration The degree to which the leader creates an
their unconscious biases that may adversely affect certain environment of emotional support, warmth, friendliness,
demographic and cultural groups. [14] and trust. [4]
Apprising Influence tactic in which influence agent Consultative leader A person in charge who confers
explains how carrying out a request or supporting a with group members before making a decision, but who
proposal will benefit the target personally, including retains the final authority to make decisions. [4]
advancing the target’s career. [8] Contingency approach to leadership The contention
Artificial intelligence (AI) The ability of a computer that leaders are most effective when they make their
program or machine to think and learn in a manner than behavior contingent upon situational forces, including
emulates human intelligence. [2] group member characteristics. [5]
Assertiveness Forthrightness in expressing demands, Cooperation theory A belief in cooperation and

opinions, feelings, and attitudes. [2] collaboration rather than competitiveness as a strategy for
As a cultural value, the degree to which individuals are building teamwork. [9]
(and should be) assertive, confrontational, and aggressive Co-opt To win over opponents by making them part of
in their relationships with one another. [14] your team or giving them a stake in the system. [8]
Authenticity Being genuine and honest about your per Core self-evaluations A broad personality trait that captures
sonality, values, and beliefs, as well as having integrity. [2] bottom-line self-assessment, composed of self-esteem, locus of
Autocratic leader A person in charge who retains most of control, generalized self-efficacy, and emotional stability. [2]
the authority. [4] Corporate social responsibility The idea that firms have
obligations to society beyond their financial obligations to
bounded ethicality Systematic cognitive barriers that
owners and stockholders, and also beyond those prescribed
prevent us from being as ethical as we would like to be.
by law or contract. [6]
Charisma A special quality of leaders whose purposes,
Creativity The production of novel and useful ideas. [11]
powers, and extraordinary determination differentiate
them from others. [3] Crisis leadership The process of leading group members
through a sudden and largely unanticipated, intensely
Coalition A specific arrangement of parties working
negative, and emotionally draining circumstance. [5]
together to combine their power. [8]
420
Glossary 421
Cross-cultural training A set of learning experiences Environmental, social, and governance (ESG) A set
designed to help employees understand the customs, of standards investors use to evaluate investments in
traditions, and beliefs of another culture. [14] volving the environment, people, and governance of the
organization. [6]
Crowdsourcing The use of collective intelligence
gathered from the public for accomplishing tasks, often by Equity Ensuring that access, resources, and opportunities
the use of social media. [13] are provided for all to succeed and develop, particularly
for people who are underrepresented and have been
Cultural brokerage The facilitation of interactions
historically disadvantaged. [14]
across parties from different cultural backgrounds. [12]
Ethical mind A point of view that helps the individual
Cultural sensitivity An awareness of and a willingness
aspire to good work that matters to their colleagues,
to investigate the reasons why people of another culture
companies, and society in general. [6]
act as they do. [14]
Ethics The study of moral obligations, or separating
Debasement Demeaning or insulting oneself to control
right from wrong. [6]
the behavior of another person. [8]
Evidence-based leadership or management The
Delegation The assignment of formal authority and
approach whereby managers translate principles based on
responsibility for accomplishing a specific task to another
best evidence into organizational practices. [5]
person. [7]
Executive coaching A one-on-one development process
Democratic leader A person in charge who confers final
formally contracted between a coach and a management-
authority on the group. [4]
level client to help achieve goals related to professional
Dependence perspective The point of view that a development and/or business performance. [10]
person accrues power by being dependent on that person
Expectancy An individual’s assessment of the prob
for things they value. [7]
ability that effort will lead to correct performance of the
Diversity training A learning experience designed to task. [10]
bring about workplace harmony by teaching people how
Expectancy theory A theory of motivation based on the
to get along better with diverse work associates. [14]
premise that the amount of effort people expend depends
Drive A propensity to put forth high energy into achieving on how much reward they can expect in return. [10]
goals and persistence in applying that energy. [2]
Experience of flow An experience so engrossing and
Effective leader One who helps group members enjoyable that the task becomes worth doing for its own
attain productivity, including high quality and customer sake, regardless of the external consequences. [11]
satisfaction, as well as job satisfaction. [4]
Farsightedness The ability to understand the long-range
E-leadership A form of leadership practiced in a context implications of actions and policies. [2]
where work is mediated by information technology. [9]
Feedback-intensive development program A learning
Emergent leader A group member who significantly experience that helps leaders develop by seeing more
influences another group member even though not having clearly their patterns of behaviors, the reasons for such
been assigned formal authority. [1] behaviors, and the impact of these behaviors and attitudes
on their effectiveness. [15]
Emotional intelligence The ability to do such things
as understand one’s feelings, have empathy for others, and Flexibility The ability to adjust to different situations. [2]
regulate one’s emotions to enhance one’s quality of life. [2]
Future orientation As a cultural value, the extent to
Empowerment Passing decision-making authority and which individuals engage (and should engage) in future-
responsibility from managers to group members. [7] oriented behaviors such as delaying gratification, planning,
and making investments for the future. [14]
Engagement The high levels of personal investment in
the tasks performed on a job. [10] Gender egalitarianism As a cultural value, the degree to
which a culture minimizes, and should minimize, gender
Entitlement In relation to unethical behavior by ex
inequality. [14]
ecutives, the idea that some CEOs lose their sense of reality
and feel entitled to whatever they can get away with or Gig economy Workers who are involved in some form
steal. [6] of freelancing, contorting, often based on outsourcing. [9]
Entrepreneurial CEO A leader involved in developing Global leadership skills The ability to exercise effective
and managing a portfolio of new ventures. [4] leadership in a variety of countries. [14]
422 Glossary
Goal What a person is trying to accomplish. [10] Leader political support Political acts and influence
behaviors performed by leaders to provide followers
Growth mindset The idea that the true mark of success
with valuable resources to advance individual, group, or
is the ability to learn. [15]
organizational objectives. [7]
Hands-on leader A leader who gets directly involved in
Leadership The ability to inspire confidence and
the details and process of operations. [8]
support among the people who are needed to achieve
Humane orientation As a cultural value, the degree organizational goals. [1]
to which a society encourages and rewards, and should
Leadership by storytelling The technique of inspiring
encourage and reward, individuals for being fair, altruistic,
and instructing group members by telling fascinating
and caring others. [14]
stories. [3]
Humility A personality trait combining (a) self-
Leadership diversity The presence of a culturally
awareness, (b) appreciating the strengths and contributions
heterogeneous group of leaders. [14]
of others, and (c) openness to ideas and feedback regarding
one’s performance. [2] Leadership effectiveness Attaining desirable outcomes
such as productivity, quality, and satisfaction in a given
Implicit leadership theories Personal assumptions
situation. [1]
about the traits and abilities that characterize an ideal
organizational leader. [8] Leadership polarity The idea that leaders are often
either revered or vastly unpopular. [3]
Influence The ability to affect the behavior of others in a
particular direction. [8] Leadership style The relatively consistent pattern of
behavior that characterizes a leader. [4]
In-group collectivism As a cultural value, the degree
to which individuals express, and should express, pride, Leadership succession An orderly process of identifying
loyalty, and cohesiveness in their organizations and and grooming people to replace executives. [15]
families. [14]
Leading by example Influencing others by acting as a
Initiating structure Organizing and defining rela positive role model. [8]
tionships in the group by activities such as assigning
Learning organization An organization that is skilled
specific tasks, specifying procedures to be followed,
at creating, acquiring, and transferring knowledge and
scheduling work, and clarifying expectations of team
at modifying behavior to reflect new knowledge and
members. [4]
insights. [13]
Innovation The creation of new ideas and their
Legitimate power The lawful right to make a decision
implementation or commercialization. [11]
and expect compliance. [7]
Insight A depth of understanding that requires
Linguistic style A person’s characteristic speaking
considerable intuition and common sense. [2]
pattern. [12]
Instrumentality An individual’s assessment of the
Machiavellians People in the workplace who ruthlessly
probability that performance will lead to certain
manipulate others. [8]
outcomes. [10]
Making the rounds The leader casually dropping by
Integrity Loyalty to rational principles, thereby
constituents to listen to their accomplishments, concern,
practicing what one preaches, regardless of emotional or
and problems and to share information. [12]
social pressure. [6]
Management openness A set of leadership behaviors
Intergroup leadership Leading a number of teams
particularly relevant to subordinates’ motivation to voice
within the organization. [9]
their opinion. [4]
Intuition An experienced-based way of knowing or
Meaningful work The feeling of doing work that matters
reasoning in which the weighing and balancing of evidence
or makes a difference. [10]
are done unconsciously and automatically. [11]
Mentor A more experienced person who develops a
Knowledge management (KM) A concerted effort to
protégé’s abilities through tutoring, coaching, guidance,
improve how knowledge is created, delivered, and applied. [13]
and emotional support. [15]
Leader–member exchange (LMX) model An expla
Micromanagement The close monitoring of most
nation of leadership proposing that leaders develop unique
aspects of group member activities by the manager or
working relationships with group members. [9]
leader. [9]
Glossary 423
Mindfulness A state of nonjudgmental attentiveness to Political skill An interpersonal style that manifests itself
and awareness of moment-to-moment experiences. [2] in being socially astute and engaging in behaviors that lead
to feelings of confidence trust, and sincerity. [7]
Moral identity The extent to which an individual holds
morality as part of the self-concept. [7] Positive psychological capital An individual’s positive
psychological state of development, characterized by four
Moral leadership A situation in which the leader takes
psychological resources: self-efficacy, hope, optimism, and
a moral stance on an issue, and convinces others to do the
resilience. [7]
same. [6]
Power The potential or ability to influence decisions and
Morals An individual’s determination of what is right or
control resources. [7]
wrong influenced by personal values. [6]
Power distance As a cultural value, the degree to which
Motivation to lead A desire to attain leadership roles
members of a society expect, and should expect, power to
as well as to expend effort to meet the requirements of a
be distributed unequally. [14]
leadership role. [2]
Practical intelligence The ability to solve everyday
Multicultural leader A leader with the skills and
problems by using experience-based knowledge to adapt
attitudes to relate effectively to and motivate people across
to and shape the environment. [2]
race, gender, age, social attitudes, and lifestyles. [14]
Prestige power The power stemming from one’s status
Multicultural worker A worker who is convinced that
and reputation. [7]
all cultures are equally good and enjoys learning about
other cultures. [14] Proactive personality A relatively stable tendency to
effect environmental change. [2]
Narcissism A relatively stable personality trait
characterized by a sense of personal superiority, a desire Pygmalion effect The situation that occurs when a
for power, and a sense of self-importance. [3] managerial leader believes that a group member will
succeed and communicates this belief without realizing
Open-book management An approach to management
it. [4]
in which every employee is trained, empowered, and
motivated to understand and pursue the company’s Resistance The state that occurs when an influence
business goals. [9] attempt by a leader is unsuccessful: The target is opposed
to carrying out the request and finds ways to either not
Organizational politics Informal approaches to gaining
comply or do a poor job. [8]
power through means other than merit or luck. [7]
Reverse mentoring The process of a younger, less
Outcome Anything that might stem from performance,
experienced person teaching an older, more experienced
such as a reward. [10]
person. [15]
Participative leader A person in charge who shares
Reward power The authority to give employees rewards
decision making with group members. [4]
for compliance. [7]
Path-goal theory An explanation of leadership
Self-awareness Insightfully processing feedback about
effectiveness that specifies what the leader must do to
oneself to improve personal effectiveness. [15]
achieve high productivity and morale in a given situation. [5]
Self-discipline The ability to mobilize one’s efforts to
Performance orientation As a cultural value, the degree
stay focused on attaining an important goal. [15]
to which a society encourages (or should encourage) and
rewards group member for performance improvement and Self-efficacy The confidence in one’s ability to carry out
excellence. [14] a specific task. [10]
Personal brand Your basket of strengths that makes you Self-leadership The idea that all organizational
unique. [3] members are capable of leading themselves, at least to
some extent. [7]
Personal magnetism A captivating, inspiring personality
with charm and charismatic-like qualities. [8] Servant leader One who serves constituents by working
on their behalf to help them achieve their goals, not the
Personal power Power derived from the person rather
leader’s own goals. [4]
than from the organization. [7]
Shadowing An approach to mentoring in which the
Personalized charismatic A charismatic leader who
trainee follows the mentor around for a stated period of
exercises few restraints on the use of power in order to
time. [15]
best serve the leader’s own interests. [3]
424 Glossary
Social entrepreneurship The use of market-based Tolerating ambiguity Being able to accept and profit
methods to solve social problems. [6] from vague, uncertain, or inconsistent information or
situations. [1]
Socialized charismatic A charismatic leader who
restrains the use of power in order to benefit others. [3] Tough question One that makes a person or group
stop and think about why they are doing or not doing
Strategic contingency theory An explanation of sources
something. [4]
of power suggesting that units best able to cope with the
firm’s critical problems and uncertainties acquire relatively Transformational leader A leader who brings about
large amounts of power. [7] positive, major changes in an organization. [3]
Strategic leadership The process of creating or Triple bottom line The idea that organizations should
sustaining an organization by providing the right direction prepare three different and separate bottom lines: the
and inspiration. [13] corporate bottom line; people in terms of well-being; and
the planet, referring to environmental responsibility. [6]
Strategic planning Those activities that lead to the
statement of goals and objectives and the choice of Trust A person’s confidence in another individual’s
strategy. [13] intentions and motives and in the sincerity of that
individual’s word. [2]
Strategy The organization‘s plan for achieving its vision,
mission, and goals. [13] Uncertainty avoidance As a cultural value, the extent to
which members of a society rely (and should rely) on social
Substitutes for leadership Factors in the work
norms, rules, and procedures to lessen the unpredictability
environment that provide guidance and incentives to
of future events. [14]
perform, making the leader’s role almost superfluous. [1]
Upward appeal A means of influence in which the leader
SWOT analysis A long-standing method of considering
enlists a person with more formal authority to do the
internal strengths, weaknesses, and external opportunities
influencing. [8]
and threats in a given situation. [13]
Valence The worth or attractiveness of an outcome. [10]
Team A work group that must rely on collaboration if
each member is to experience the optimum success and Virtuous circle The idea that corporate social
achievement. [9] performance and corporate financial performance feed
and reinforce each other. [6]
Teamwork Work done with an understanding and
commitment to group goals on the part of all team Vision The ability to imagine different and better
members. [9] conditions and ways to achieve them. [3]
Territorial games Also referred to as turf wars, political Whistleblower An employee who discloses organizational
tactics that involve protecting and hoarding resources that wrongdoing to parties who can take action. [6]
give one power, such as information, relationships, and
Win–win approach to conflict resolution The belief
decision-making authority. [7]
that after conflict has been resolved, both sides should gain
360-degree feedback A formal evaluation of superiors something of value. [12]
based on input from people who work for and with them,
Work orientation As a cultural value, the number of
sometimes including customers and suppliers. [4]
hours per week and weeks per year people expect to invest
Time orientation As a cultural value, the importance in work versus leisure, or other nonwork activities. [14]
nations and individuals attach to time. [14]
Name Index
A C F
Achor, Shawn, 33 Cain, Susan, 33 Fairhurst, Gail T., 4
Addison, John, 179 Campbell, Denise, 184 Feldman, Daniel C., 159
Akerson, Dan, 73 Capuano, Anthony, 225–226 Fenley, Marika, 69
Amabile, Teresa, 254, 285 Carlisle, Todd, 236 Ferguson, Roger, 126
Antonakis, John, 69 Carnegie, Dale, 92 Ferran, Bernard T., 320
Ashford, Orlando, 368 Caro, Robert A., 173 Ferrin, Donald L., 31
Ash, Mary Kay, 65 Chan-She, 179 Fiedler, Fred E., 118
Atkinson, Kevin, 264–265 Chesky, Brian, 297–298 Fink, Larry, 150
Cialdini, Robert B., 317 Fischoff, Baruch, 131
B Ciampa, Dan, 75 Fisher, Brad, 283
Barksdale, Jim, 60 Clark, Barbara Baker, 128 Flynn, Timothy P., 146
Barling, Julian, 5, 44, 72 Clouse, Mark, 40 Folkman, Joseph, 105, 128
Barra, Mary, 65, 73–74, 201, 214 Cohen, Taya R., 328 Ford, Henry, 285, 300
Basford, Tessa E., 92 Collar, Maria, 95 Forrest, Andrew, 250
Bassoul, Selim, 25–26 Collins, Jim, 62, 349 Frazier, Kenneth, 159
Bassoul, Yvonne, 26 Collinson, David, 76 Friedman, Adena, 319
Bastholm, Lars, 291 Conger, Jay A., 65 Friedman, Milton, 150
Bazerman, Max H., 147 Conroy, Mark, 368
Becker, Thomas E., 143 Cook, Tim, 43, 92, 205, 226, 342 G
Benioff, Lynne, 170 Cote, Dave, 71 Gaga, Lady, 146
Benioff, Marc, 104, 169–170, 215 Covey, Stephen, 93 Gaines, Elizabeth, 249–250
Bennis, Warren, 18, 60, 75 Coyne, Shawn, 285–286 Gale, Adam, 9
Bergli, Chip, 132 Cuban, Mark, 59 Galetti, Beth, 45
Bernieri, Frank, 68 Gallo, Carmine, 312
Bertolini, Mark, 71 D Gardner, Howard, 147
Bezos, Jeff, 5, 43, 96, 156, 185, 280 Damasio, Antonio, 283 Garfinkle, Joel, 33
Biberman, Gerald, 181 Danjsereau, Fred, 15 Gass, Michelle, 132–133
Blake, Frank, 174 Davenport, Thomas H., 351 Gates, Bill, 101, 155
Borne, Bill, 128 Davey, Lione, 323 Gates, Melinda, 155
Bossidy, Larry, 89 DeChurch, Leslie A., 130 Gautrey, Colin, 229
Boyatzis, Richard, 38, 262 Delmas, Magali A., 154 Gentile, Mary, 147
Boyle, Gregory, 154 de Vries, Reinout E., 95 George, Bill, 31
Bradberry, Travis, 38 Dirks, Kurt T., 31 Gerstandt, Joe, 367
Brandenburger, Adam, 343 Donald, Arnold W., 368–369, 379 Gibbs, Joe, 123
Branson, Richard, 62 Doyle, Mike, 239 Gietan, Michelle, 33
Breeding, Patricia, 157 Duke, Mike, 2 Goldsmith, Marshall, 181
Brewer, Rosalind, 1–2 Dweck, Carol, 28 Goleman, Daniel, 38
Brooks, Alison Wood, 328 Golub, Harvey, 159
Brower, Charlie, 294 E Goodnight, Jim, 145
Buckingham, Marcus, 89 Ellison, Larry, 60, 170 Gostic, Adrian, 261
Buell, Catherine, 156 Ely, Robin J., 366 Gothelf, Jeff, 66
Buffet, Warren, 155 Emerson, Richard M., 172 Graen, George, 240
Burch, Tory, 209 Enrico, Roger, 43 Grant, Adam, 5, 229, 293
Buritt, David, 2 Etzion, Dror, 154 Grauer, Peter, 46
Greenleaf, Robert K., 96
425
426 Name Index
Grenny, Joseph, 329 Kirkpatrick, Shelly, 46 Musk, Elon, 42, 58, 64, 89, 220, 343,
Griffith, Tricia, 237 Koestenbaum, Peter, 71 350
Gross, Bill, 215 Kramer, Steven, 254 Myers, Christopher G., 239
Kun-hee, Lee, 293 Myhrvold, Nathan P., 287
H Kusserow, Paul, 128
Hackman, J. Richard, 6, 17 N
Hamel, Gary, 175 L Nadella, Satya, 348
Hamm, John, 308 Lake, Katrina, 85–86, 103 Nairn-Birch, Nicholas, 154
Harris, Patricia, 366 Latham, Gary P., 257 Nanus, Burt, 75
Harter, Jim, 251 Lee, Soojin, 213 Nardelli, Robert, 174
Hayes, John, 11 Levering, Robert, 151, 153 Nassetta, Chris, 153
Hayward, Tony, 188 Levinson, Arthur D., 293 Nelson, Bob, 261
Heister, John, 329 Liechti, Sue, 69 Ng, Thomas W. H., 159
Hellerstein, Mark, 179 Locke, Edwin A., 46, 143, 257 Nooyi, Indra, 2, 43
Herrmann, Ned, 283 Loree, James M., 279 Northouse, Peter G., 145
Hewson, Marillyn, 158, 311–312 Lores, Enrique, 116–117 Novak, David, 132, 259
Hoffman, Reid, 103, 226 Lyubomirsky, Sonja, 93 Nugent, Patrick S., 327
Holmes, Elizabeth, 150
Hoppe, Bruce, 308 M O
Machiavelli, Niccolo, 181, 212 Oke, Adegoke, 296
House, Robert, 121–122
Madoff, Bernard L., 149 Okerstrom, Mark D., 245
Houston, Jean, 253–254
Madoff, Bernard M., 75 O’Leary, John, 4
Hsu, Benny, 301
Ma, Jack, 101 Orsey, Hernân, 344
I Malakyan, Petros G., 18 Osburn, Alex F., 289
Isaacs, Jessica C., 236 Ma, Peter, 101 Oudén, Fréderic, 128
Marchionni, Federica, 194–195, 220
Marotta, Steven, 195 P
J
Page, Larry, 284
Jacquart, Philippe, 58 Marriott, J. W., 225
Palmer, Richard, 164
Jago, Arthur G., 118 Marshall, Randall, 131
Parker, Susan, 259
James, Erika H., 320 Martin, Lockheed, 158
Petrie, Nick, 3
Janah, Leila, 141–142 Martin, Steve, 212
Petty, Art, 206
Jobs, Steve, 4, 39, 58, 170, 226, 281, Maxwell, John, 39
300 Pfeffer, Jeffrey, 184
Mayer, Marc, 4
Johnson, David, 312 Piccolo, Ronald F., 72
McCray, Tyi, 365
Johnson, Elsbeth, 286 Porter, Michael, 347
McGrath, Rita Gunther, 345
Johnson, Kevin, 232 Prieto, Leon C., 103
McKee, Annie, 38
Johnson, Ron, 75 Pronovost, Peter, 230
McMillon, Doug, 171
Joly, Hubert, 69, 71, 147 Prusak, Laurence, 351
McNerney, W. James, 92
Joyce, David, 207 Medina, John, 314 Q
Judge, Timothy A., 72 Melrose, Ken, 100–101 Quincey, James, 154
Mensah, Sarah, 89 Qureshi, Rima, 339–340, 341
K Meyer, Dan, 164
Kabat-Zinn, Jon, 118 Meyer, Erin, 329 R
Kambe, Shiro, 154 Miller, Gary, 328 Raffoni, Melissa, 344
Kanarick, Bill, 319 Mintzberg, Henry, 4, 6, 118, 176 Ramocki, Stephen, 291
Kantor, Julie, 186 Molberg, Andrea, 92 Rankin, Gary, 229
Kasparov, Gary, 291 Molinsky, Andy, 373 Reinelt, Claire, 308
Kasser, Joe, 87 Montgomery, Cynthia, 343 Richardson, Chad, 146
Katigbak, Everett, 286 More, Lily, 328 Ridge, Gary, 354
Katzenbach, Jon R., 226, 262 Morrison, Elizabeth, 158 Rock, David, 44
Kellerman, Barbara, 17 Moskowitz, Milton, 153 Roman, Emmanuel, 215–216
Kelley, Robert, 17, 18 Munoz, Oscar, 41 Rometty, Ginni, 297
Kelly, Gary C., 308 Munshi, Natasha, 296 Rosener, Judy, 104
Kelly, Tom, 289 Murphy, Mark, 123 Rothman, Irv, 229
Kempczinski, Chris, 349 Murray, Fiona, 286 Rubin, Amir Dan, 146
Name Index 427
Russell, John, 262 Strong, Bruce, 351 Wageman, Ruth, 6, 17

Rutherford, Linda, 308 Stumpf, John, 149, 258 Wahl, Deborah, 201–202
Sugar, Anne, 179 Wallace, Ron, 143
S Sweet, Julie, 56–57, 147, 186 Walumbwa, Fred O., 296
Sadove, Stephen I., 186 Ward, Sally, 28
Salazar, Ken, 131 T Warner, Chris, 130
Samuel, Mark, 178 Tan, Jessica, 101 Warrior, Padmasree, 50–51
Sandberg, Sheryl, 87 Tannen, Deborah, 316 Wartell, Sarah Rosen, 156
Scalzo, Michael, 129 Taylor, Michael, 163 Wasserman, Noam, 101
Schmincke, Don, 130 Thomas, David A., 366 Weiss, Jeffrey A., 348
Schultz, Howard, 37 Tichy, Noel, 28 Westerdahl, Doug, 235
Schwartz, Tony, 259 Tindell, Kip, 12 Westphal, James D., 187
Scott, MacKenzie, 280 Tinsley, Catherine, 378 Wilke, Jeff, 45
Segal, Jonathan A., 384 Tishkoff, Julie, 157 Williams, Evelyn, 43
Shalett, Lisa, 58, 383 Tomé, Carol, 173–174, 208 Williams, Walker, 300–301
Shegerian, John S., 153 Tourish, Dennis, 76 Wobegun, Obdu, 197
Silbermann, Ben, 365 Toyoda, Akio, 72
Silver, Adam, 87 Tredgold, Gordon, 131 Y
Simmons, Annette, 191 Tucker, Robert, 75 Yammarino, Francis J., 15
Simon, Bill, 2 Yoshida, Kenichiro, 154
Sindell, Gerald, 288 U Yukl, Gary, 355
Sluss, David, 93 Uchida, Makoto, 253
Smith, Brad, 287 Uhl-Bien, Mary, 4 Z
Smith, Douglas K., 226 Ulukaya, Hamdi, 283 Zak, Paul J., 104
Snyder, Rich, 93 Zandon, Noah, 383
V Zenger, Jack, 105, 128
Sorenson, Arne, 225
van Kralingen, Bridget, 297 Zenger, John H., 208
Spaulding, Elizabeth, 86
von Hippel, William, 60 Zhang, Daniel, 170
Spreitzer, Gretchen M., 175
von Oech, Roger, 285 Zheng, Wei, 129
Steinem, Gloria, 195
Vredenburgh, Judy, 202 Zuckerberg, Mark, 59, 103, 130, 173
Stern, Ithai, 187
Vroom, Victor H., 118
Stevens, Robert, 311
Stites-Clayton, Evan, 300 W
Stogdill, Ralph, 107 Waddell, Jane T., 98
Stone, John, 294 Wadsworth, Jeffrey, 295, 298
Company Index
A C Fitbit, 295
Accenture, 56–57, 147, 187, 310 Caesars Entertainment, 345 Florentine Bravado, 222
Adidas, 286 Campbell Soup Company, 40 Ford Motor Company, 148, 202, 285
AIG, 236 Caravan, 103 Forester Research Inc., 312
Airbnb, 298 Carnival Corporation, 368–369, 379 Fortescue Metals Group (FMG),
AKKA, 235 Caterpillar, 63–64 249–250
ALDI, 348 Chrysler, 202
Alibaba, 101, 170 Cisco Systems Inc., 50 G
Allstate Insurance Company, Inc., Coca-Cola Co., 65, 93, 154, 341, 349 Galaxy RV, 220–221
366 Commercial Uniform Inc. (CUI), 272 Game Time, 100
Amazon.com, 1, 5, 43, 45, 72, 96, 151, Container Store, 12 Gap, Inc., 353
156, 185, 206, 280, 289, 349 Corporate Executive Board, 90 GEMKO Information group, 129
Ambrose Inc., 388 Covenant Health, 157 Genentech, 293
Amedisys Inc., 128 CVS Health, 295 General Electric Co. (GE), 66, 207,
American Express, 159 279, 348, 351, 404
Apollo Global Management Inc., 380 D General Motors Company (GM), 2, 65,
Apple Inc., 4, 39, 43, 58, 75, 92, 157, Daimler AG, 348 73–74, 148, 201–202, 214, 367, 383
205, 208, 226, 281, 293, 295, 341, Dallas Mavericks, 59 Getty Images, 142
342, 349 D. E. Shaw, 280 Girls Inc., 202–203
Ares Management Corp., 380 Development Dimensions GitHub Inc., 348
AT&T, 63 International, 402 Global Fashion Agenda, 195
Dick’s Sporting Goods, 159 GMO LLC, 4
B Disney, 349 Good Doctor, 101
Ball Corporation, 11 Goodyear Tire & Rubber Company,
Dolce & Gabanna USA, 194
Bari Jay, 259 408
Domino, 345
Battelle Memorial Institute, 295, Google, 62, 64, 142, 206, 208, 284,
Downtown Neighborhood
298 287, 291, 342, 349, 382
Association, 302
Baxter, 40 Great Place to Work® Institute, 153
Dunkin’ Donuts, 334
Bellerose Exhibits and Events, 333 Green Bay Packers, 123
DuPont, 292
Ben & Jerry’s, 346 Gucci, 343
Bernard L. Madoff Investment E
Securities, 149 eBay, 142 H
Best Buy, 69, 71, 147 Edison Alliance, 340 Häagen-Dazs, 346
Better World Books, 154 Electronic Recyclers International, Hallmark Cards, Inc., 296
BFA Industries, 236 153 Harley-Davidson Ltd, 262
BlackBerry, 349 Energy Project, 259 Hay Group consultancy, 296
BlackRock, 150 Ericsson, 339 Health Superb, 273
Bloomberg Ltd., 46 Expedia, 245 Hewlett-Packard Company, 117, 229,
Blue Ocean, 96 342
BMW, 348 F Hilton, 153
Boeing Company, 92 Fable Group Inc., 51 Holland American line, 368
Booz & Company, 410 Facebook, 4, 59, 67, 68, 87, 103, 130, Homeboy Apparel & Merchandise,
BP, 131, 188 173, 181, 188, 197, 286, 382 154
Brain and Creativity Institute, 283 FedEx, 45 Homeboy Industries, 154
Broadview Travel, 334 Ferrari, 194 Home Depot, 173–175
428
Company Index 429
Homegirl Café, 154 Medtronic, 31 Salesforce, 104, 169–170, 215, 344,

Honda Motor Company, 376 Merck, 159 402–403
Honest Tea of Bethesda, 349 Merisant, 368 Sama Group, 141–142
Honeywell International, 71 Microsoft Corporation, 9, 64, 142, 155, Samaschool, 141, 142
HPE Financial Services, 229 287, 348, 349, 383, 395 Samasource, 141, 142
HP Inc., 116–117 Middleby Corporation, 25–26 Sam’s Club, 1, 2
HRGO, 243 Monroe Wheelchair, 235 Samsung, 293, 349
Monsanto, 368 SAP, 314
I Sapient Corporation, 319
IBM Global Markets, 297 N SAS, 145
IDEO, Inc., 287, 289 NASDAQ, 75, 149 Sears, 195
IKEA, 343 Nasdaq Inc, 319 Siemens, 87
Influence at Work, 212 Navy Federal Credit Union, 153 Slack, 104
In-N-Out Burger, 93 Nehemiah Manufacturing Co., Sloan Kettering Cancer Institute,
Instagram, 197, 295 163–164 341
Intel, 287, 353 Nestlé, 297, 346 SM Energy Company, 179
Intellectual Ventures, 287 Netflix, 349, 383 Société Générale, 128
Interbrand, 349 Netscape, 60 Sony Corp., 154
Intuit, 287, 349 NeuroLeadership Institute, 46 Southwest Airlines, 307–308
NextEv Inc., 50 SpaceX, 42, 64, 89, 350
J Nike Inc., 380 Stanley Black & Decker, 279, 296,
J.C. Penney, 75 NIO USA Inc., 50–51 340
John Deere & Company, 294 Nissan, 253 Starbucks, 1–2, 37, 118, 132, 334, 346,
Jordan Brand North America, 89 Nokia, 234, 349 348, 380
Juniper Networks, 232 Stitch Fix, 85–86, 103
O
Suttons & Robertsons, 348
K Oaktree Capital Management LP, 380
Kellogg Company, 63, 293 1Life Healthcare, 146 T
KFC, 132, 259 Oracle Corporation, 60, 170 Taco Bell, 132, 259
Kimberly Clark Corporation, 1 Target, 75
Kohl’s, 132–133 P
Teespring, 301
KPMG, 146, 283 Pacific Investment Management
Tesla, 42, 58, 63, 89, 343, 350
Company (PIMCO), 215–216
Texas Pride Disposal, 264
L Pacific Pods, 387
Lands’ End, 194–195, 220 Theranos, 150
Paycom, 146
Leading by Serving LLC, 100 3M, 287, 348
PepsiCo, 2, 43, 345, 383
Leanin.org, 405 TIAA, 126
Perry’s Ice Cream, 346
Lego, 344 Toro Company, 100–101
Pfizer, 64
Lehman Brothers, 11 Tory Burch LLC, 209
Piaget, 341
Levi Strauss & Co., 132 Toyota Motor Corporation, 72, 202
Ping An, 101
LinkedIn, 67, 103, 142, 184, 226, 310, Trader Joe’s, 295
Pinterest, 365
348 Train and Subway Interiors, 79
Pizza Hut, 132, 259
Linklaters, 405 TrainingIndustry. com, 394
Procter & Gamble (P&G), 133, 163
Lockheed Martin, 158, 311 Turner Broadcasting System, 286
Progressive Corporation, 237
Long John Silver’s, 132 Twitter, 4, 67, 188, 197
Providian Financial, 403
Lowe’s, 380 Pulte Homes, 202 U
LXMI, 141, 142
Ultrapay, 111
R
M Unilever, 297
Regent Seven Seas Cruises, 368
Marriott International, 64, 225–226, United Continental Holdings Inc., 41
Ritz-Carlton Hotel Company,
393 393–394 United Parcel Service (UPS),
Mary Kay, Inc., 65 173–174
Rolls Royce, 399
Mazda, 202 UPS International, 143, 153, 208
McDonald’s Corporation, 132, 201, S Urban Institute, 156
202, 215, 298, 334, 349, 366, 383 Safe Partners, 179 USAA, 380
McKinsey & Company, 215, 216, 252, Saks, Inc., 186 U.S. Steel Corporation, 2
253, 383 Salary Advance United, 162
430 Company Index
V W Y
Vehicle Buddy, 358–359 Walgreens Boots Alliance (WBA), 1–2 YouTube, 132
Verizon Communications, 339–340, Walmart, 2, 132, 142, 159, 171–172, Yum! Brands, 132, 259, 400
341 297, 410
Virgin Atlantic Airways Limited, Washington Mutual, 403 Z
400 WD-40, 354 Zippo, 314
Virgin Group, 62 Wells Fargo & Co., 149, 157, 258
Vroom, 103 W. L. Gore & Associates, 287
Subject Index
A displaying patience, 93 leadership making difference, 20–21
Abuse of power, 191 emotional support and leadership roles, 22
Abusive supervision, 158–159 encouragement, 92–93 meaningfulness of work for
Acceptance of power and authority, 96 hands-on-guidance and feedback, 89 employees, 273–274
Accommodative style of conflict higher-level need satisfaction, 92 mistake in organizational politics,
management, 324–325 high performance standards, 89 194–196
Achievement motive, 41 initiating structure dimension, 87–88 motivational use of praise, 272–273
inspiration and visibility, 92 open-plan office, 245–246
Achievement-oriented style, 122
openness to worker opinions, 92 path to executive position, 416–417
Acquisition strategy, 348
organizing for collaboration, 90 payday loans business, 162–163
Action learning, 355 principles and values promotion, 93 political blunders, 196–197
programs, 408 Pygmalion effect, 89 product differentiation strategy
Active listening, 265–266 reducing task ambiguity, 93 team, 359–360
Activists, 18 relationship-oriented attitudes and quality relationship, 137–138
Adaptability, flexibility and, 39 behaviors, 91–93 team leadership position, 415
Adaptability to situation, 88 risk taking and execution of plans, 89 360-degree survey, 111–112
Advancement opportunities, 12, 254 situational influences on, 117–118 tough questions, 110
Affective identity, 39 strengths of group members, 89 transformational leadership, 80–81
Age diversity, 367 task-related attitudes and behaviors, T-Shirt production innovators,
Aggressive humor, 34 88–91 300–301
360-degree feedback, 105–107 vacant storefront problem, 302–303
Agility, 340–341
tough question asking, 89–90 Vehicle Buddy purpose, 358–359
Aligning people, 91–92
Benchmarking, 348 virtual team collaboration, 243–244
Altercasting, 317 Casual overtime, 13
Bounded ethicality, 147
Amazon’s Housing Equity Fund, 156 Catastrophe faking, 191
Brainstorming, 287
Ambiguity, reducing of, 93 Celebrity charismatic leaders, 59
Brand leadership, 349
Anecdotes, 314 Charismatic leadership, 57–82
Burnout, 13
Anti-bias training, 381–382, 384 ability to inspire trust, 60
Bystanders, 17
Antiprototypes, 218 almost-never-accept-no attitude, 68
Appearance, polished, 68 C celebrity charismatic, 59
Apprising, 207 Capitalizing on opportunity, 172 challenge, prod, and poke quality, 60
Artificial intelligence (AI), 42, 344 Capitalizing on strengths of group challenges to validity of, 75
Assertiveness, 33, 370–371 members, 89 characteristics of, 60–64
Authenticity, 31 Case problems communication style, 60, 65–67
Autocratic leaders, 96 characteristics and traits of leader, concerns about, 75–76
Avoidant style of conflict 50–51 dark side of, 75–76
management, 325 charismatic leadership, 79–80 development of, 67–69
conference room struggle, 334 effects of charisma, 58–59
contingency and situational energy and action orientation,
B
leadership, 136–137 60, 68
Backstabbing, 190
cultural sensitivity, Pacific Pods, enthusiasm, optimism, and energy,
Backup mentor, 405
387–388 67–68
Behavioral role modeling, 407 eye-directed gazing, 65
emotional intelligence, 49–50
Behaviors and attitudes of leaders, expressions at anti-bias training, face-to-face networks, 66
85–112. See also Leadership styles 388–389 gearing language to different
adaptability to situation, 88 front-stabbing, 333 audiences, 65
aligning people, 91–92 hiring workers with criminal past, hubris and drama, 60
consideration dimension, 87–88 163–164 impact on performance and
direction setting, 88–89 inspirational message, 220–221 behavior, 72–73
431
432 Subject Index
Charismatic leadership (continued) farsightedness, 43 speaking and writing, 312–316

leadership by inspiration, 65 insight into people and situations, 43 speaking in local language, 322
leadership by storytelling, 65–66 knowledge of business or group task, straightforward language and
meaning and definitions of charisma, 42 speaking slowly, 322
57–59 Cognitive intelligence, 41–42 style, accent, or appearance of
metaphors and analogies use, 65 Collaboration person from another culture,
narcissism component of, 61–62, 75 excessive, 236–237 322–323
persistence and, 68 for innovation, 298 with virtual teams, 234
personal brand for, 68 between leaders and followers, 18 vocalized pauses, 314
personalized charismatics, 59 Collaboration technologies, 90 Community building, 145
reading emotions and ability to Collaborative leadership, 3 Compassionate leadership, 128
connect with people, 60 Collaborative software, 236 Compelling vision, 184
relationship aspects, 58 Collaborative style, of conflict Competence, as quality of effective
remembering names, 68 management, 325 followers, 18
risk romanticizing, 60 Competition with another group, 232
Collective leadership, 230
socialized charismatic, 59 Competitive style of conflict
Commitment
social networking use, 66–67 management, 324
synchrony with others, 68 influence tactics, 203
as quality of effective followers, 18 Compliance, 203
transformational leader and, 60
Communication, 307–323 Composite mentor, 405
types of, 59
visionary quality, 60 anecdotes to communicate meaning, Concentrating on strengths of group
vision component of, 62–64 314 members, 89
vision formulation for others, 67 awareness of barriers to, 322 Conceptual knowledge, for leadership
wisdom for projecting e-charisma, back up conclusions with data, 314 development, 407
69 business jargon use, 315 Conceptual thinking, 43
Chief knowledge officer (CKO), credibility for, 313 Conflict management styles
353–354 during crisis, 126–127 accommodative style, 324–325
Climate for creativity, 292–293 crisp and clear memos, letters, and avoidant style, 325
reports, 315 collaborative style, 325
Climate of trust, 228–229
cross-cultural barriers, 320–323 competitive style, 324
Coach and motivator role, 8
cultural assumptions, 322 sharing style, 325
Coaching, 262–269 emotion-provoking words and Conflict resolution, 323–330
active listening, 265–266 phrases, 314
advice and guidance, 266 anxiety during negotiation, 328
etiquette differences across cultures, conflict management styles, 323–325
applauding results, 267 322
as approach to motivation, 262–263 confrontation and problem solving,
extraneous words, 314 327
commitment to change, 266 face-to-face communication
emotional support and empathy, 266 departmental competition and, 323
networks, 310 face saving, 329
employee engagement, 250–254 front-loaded messages, 315
executive type, 268–269 interests vs. position, 329
gearing message to listener, 313 international negotiating style
feedback on areas for improvement, group chat, 312
263, 265 differences, 329
group messaging apps, 312 listening skills, 328
issues and expectations, 263 heavy-impact words, 313–314
key characteristics of, 263–267 negotiating and bargaining, 327–329
individual differences in appearance, plausible demand or offer, 328–329
modeling of desired performance 323
and behavior, 266 sticking with facts, 329
inspirational and powerful type, between two group members,
obstacle removing, 266 312–316
on-the-spot feedback, 265 325–327
junk words, 314 win–win approach to, 325
reflection of content or meaning, 266 language errors, 314–315
relationship building, 263 Conflict–resolution models, 378
listening, 319
skills and techniques, 263–267 Consensus decision making, 230–231
making the rounds, 320
working on solution together, 266 Consensus leaders, 95, 96
networks for leaders, 308–312
Coalition, 209 nonverbal communication, 317–319 Consideration, 87–88
Codes of conduct, written, 157 power-oriented linguistic style, 316 Consultation with others, 209
Coercive power, 171 principles of persuasion, 316–317 Consultative leaders, 95
Cognitive abilities, 281, 283 respect for others, 319–320, 322 Contingency and situational
Cognitive factors, 41 selective listening, 320 leadership, 116–138
cognitive intelligence, 41–42 selling benefits, 313 achievement-oriented style, 122
conceptual thinking, 43 signs of misunderstanding, 322 control over situation, 121
creativity, 42–43 social media networks, 310–311 crisis leadership, 126–132
Subject Index 433
directive style, 122 opportunity alertness, 289 in recruiting, 367

environmental forces and, 118 organizational methods for, 286–291 team performance enhancement,
evidence-based leadership, 133–134 passion for task and flow, 285 367
factors beyond leader’s control, 118 personality for, 283–285 Cultural sensitivity, 373–376
Fiedler’s contingency theory, physical exercise for, 291 eliciting ideas and providing
118–121 recording of ideas, 290 feedback, 375–376
leader-member exchange (LMX) self-help techniques for, 288–291 English-only policy and, 376
theory, 124–125 steps in process, 279–280 flexibility in dealing with others, 374
leader–member relations, 121, 125 systematic idea collection, 286–287 gender roles, 374
least preferred coworker (LPC) scale, traditional thinking for, overcoming generational differences, 374
120 of, 285–286 language differences, 374
matching leadership style to Credibility of message sender, 313 multicultural workers and leaders,
situation, 122–123 Credit stealing, 191 373–374
participative style, 122 Crisis leadership, 126–132 nuances in customs, 373
path-goal theory, 121–124 accountability for problems, 130 personal appearance, 374
situational influences, 117–118 attributes and behaviors, 126 problems of cultural
situation measurement, 120 authority delegation, 131 misunderstanding, 374
steps to influence performance and calm and steady performance, 128 religion, differences in, 374
satisfaction, 123–124 circle-the-wagon avoidance, 131 Cultural training, 374
supportive style, 122 communication about problem, Cultural value dimensions, 370–371
Contingency approach to leadership, 126–127 Culture of originality, 293
117. See also Contingency and compassion display, 128 Cybersquatters, 290
situational leadership core value, sticking with, 129
Cooperation theory, 229 decisiveness for, 129–130 D
Co-opting antagonists, 212 emphasis on unified effort, 130 Dale Carnegie principles of
Core competency strategy, 349 major problems division, 130–131 leadership, 261
Core self-evaluations, 30 optimistic attitude, 127–128 Debasement, 213
Corporate social responsibility, planning for disaster, 131 Decisive during crisis, 129–130
149–150 psychological safety promotion, 129 Delegation, 179. See also
Cost leadership strategy, 347–348 recognition for accomplishments, Empowerment
Courage, as quality of effective 128–129 Democratic leaders, 95
followers, 18 relationship building, 128
Demographic diversity, 366–367, 384
with relationship emphasis, 126–129
Courageous leadership, 39 Dependence theory of power, 172
sadness about crisis, 128
Creation-of-the-enterprise story, 37 Development of leaders, 393–408. See
stakeholder capitalism, 129
Creative ideas, recording of, 290 strategical thinking, 130 also Leadership succession
Creative solution, outsiders advice for, with task emphasis, 129–132 action learning programs, 408
290–291 time and space for team bonding, 129 challenges for first-time leader,
Creative workers, methods for transformational leadership during 411–412
managing of, 295–296 crisis, 131–132 coaching and, 408
Creativity, 278–304 work routine reestablishment, 131 conceptual knowledge and
advice from outsiders, 290–291 Crisis planning, 131 awareness programs, 407
brainstorming, 287 Cross-cultural communication, 382 education for, 396, 399–400
characteristics of creative leaders, evaluation of programs for, 408
Cross-cultural conflict resolution, 378
281–285 experience and, 400–402
Cross-cultural leadership interactions,
climate and culture for, 292–293 feedback-intensive programs,
373
cognitive abilities, 281, 283 406–407
Cross-cultural training, 382 informal vs. formal mentoring, 403
creative workers management,
Crowdsourcing, 344 lopsided leadership insight, 395–396
295–296
Cruelty in organization, 213 mentoring and, 403–405
creativity continuum, moving on,
288–289 Cultural brokerage, 294 programs for, 405–408, 410–411
creativity-enhancing activities, 289 Cultural diversity, 365–366, 384 self-awareness and, 395–396
defined, 278–279 advantages of, 366–367 self-discipline for, 396
enthusiastic attitude for, 289–290 and business development, 367 shadowing, 403
explorer, artist, judge, and lawyer creative solutions to problems, 367 skill-based programs, 407
roles, 291 human capital use, 367 socialization programs, 408
feedback on performance, 291 initiatives for, 379–384 360-degree feedback, 406
knowledge, 281 local economy and social Diehards, 18
leadership practices for, 293–298 responsibility, 367 Differentiation strategy, 347
morality of, 287–288 marketing advantage, 366–367 Direction setting, 88–89
434 Subject Index
Directive leader, 122 self-efficacy and competence, perception of being unethical, 13

Display wall for team activities, 235 175–176 principles of ethical and moral
Divergent thinking, 283 self-leadership and, 178 leadership, 141–147
Diversity training, 381 Encouragement rationalization and implied
Doodling of ideas, 286 creativity and, 294 permission, 146
and job performance, 92 respect for individuals, 145
Dress codes, 190
by supportive leader, 92–93 situational influences, 146–147
Drive, 40–41
Engagement, 250. See also Employee socially responsible and ethical
engagement organization, 149–159
E
English-only policy, 376 strategic leadership of, 150–159
Education for leadership
Enthusiasm strategic leadership of ethics and
development, 396, 399–400
for creativity, 289–290 social responsibility, 150–159
Effective leader, 86
as leadership trait, 33 unethical behaviors, 149
Effort-to-performance expectancy, 256 Ethics hotline, 157
E-leadership, 233–234 Entitlement, feelings of, 146
Entrepreneurial CEO, 101 Ethics training, 158
Electronic brainstorming, 236, 287 Evidence-based leadership or
Electronic communication, 310 Entrepreneurial leadership, 9, 99,
101–104 management, 133–134
Electronic recycling, 153 Exclusionary terminology, 383
achievement motives, 101
E-mail messages, 236 Executive coaching, 268–269, 408
dealing with customers, 103–104
Emergent leaders, 3 contributions of and concerns about,
dislike of hierarchy and bureaucracy,
Emotional aspects, of leadership 103 269
succession, 409 enthusiasm and passion, 101, 103 specific forms of assistance, 268–269
Emotional insecurity, 181 focus on future, 104 Executive edict, 215
Emotional intelligence, 37–39 proactive personality, 103 Executor role, 9
group, 229–230 quick action, 103 Exercises and self-assessment
moods and, 38–39 risk taking, 101 quizzes, 15
relationship management, 38 visionary perspective with applying influence tactics, 217
role in high-level management tenacity, 103 asking advice role play, 187
positions, 38 Environmental, social, and best leadership attribute, 46
self-awareness, 38 governance (ESG) criteria, 151 blunder quiz, 189
self-management, 38 Equal Employment Opportunity brainstorming scenarios, 288
social awareness, 38 Commission (EEOC) violation, 376 building for future, 412
Emotional stability, 30 Equity, 365 business strategies of favorite
Emotional support, 92–93, 266 Ethical decision-making guide, company, 351
Emotion-provoking words, 314 148–150 characteristics of charismatic leader
Employee engagement, 250–254 Ethical mind for leaders, 147 on YouTube, 67
impact of, 251–252 Ethics, 141–165 characteristics of effective coach,
meaningful work for, 252–253 267
attention to all stakeholders, 143, 145
relationship with leader, 253–254 charisma checklist, 61
bounded ethicality, 147
Employees checklist for crisis leadership, 127
character of person, 147
creative, 296 (See also Creativity) climate for creativity and innovation,
community building, 145
information to, 177–178 292
defined, 143
Employees welfare, 93 coaching for improved performance,
differences in ethics and morals
Empowerment, 175–179 268
among leaders, 145–147
communication skills of
and creativity, 293 entitlement feelings, 146
organizational leader, 336
cultural differences, 178 ethical mind, development of, 147
company stand on social issues, 165
delegation and, 179 greed, gluttony, and avarice, 146
compelling or effective domain
goals of organization and, 177 guide to ethical decision making,
name, 290
and impact, 176 148–150
conducting empowerment session,
information providing, 177–178 healthy leadership, 145
180
initiative and responsibility, 176 honesty and trustworthiness, 143
conducting environmental audit, 155
internal commitment, 176 integrity and, 143
conflict resolution style, 324
leadership continuation, 178 leadership behaviors related to, 143,
contrasting leadership styles, 107
limits setting, 178–179 145
controlling too eager direct report,
meaningful work, 175 moral development level and, 146
192
method choosing, 178 moral identity and, 145–146
creative personality test, 282–283
nature of, 175–176 motivated blindness, 147
crisis leadership, 133
practice optimal amount of, 179 organizational performance and,
cross-cultural relations, 375
practices for, 176–179 159–160
Subject Index 435
cross-cultural skills and attitudes, positive organizational politics F

321 questionnaire, 182–183 Face-to-face communication
cultural value profile, 372 proactive personality, 35–36 networks, 310
degree of conflict-proneness, profiting from cross-cultural Face-to-face contacts, 294
326–327 experiences, 376 Failure, as challenging experience,
developing inspirational message, 82 quality of leader–member relations, 400
Dinosaur Power on market, 148 124–125 Farsightedness, 43
diversity circle, 381 recognition for outstanding Feedback
emotionally intelligent negotiator, performance, 262
on areas for improvement, 263, 265
335 relationship-oriented and task-
by coach, 263, 265
empowering attitudes and beliefs, oriented attitudes and behaviors, 94
giving of, 209–210, 254
177 satisfaction of being leader, 12
and job creativity, 291
entrepreneurial leadership, 104 self-discipline tendencies, 397–398
negative, 265
entrepreneurial thinking and self-evaluation of humility, 29–30
positive, 232
behavior, 102–103 self-portrait of communication
Feedback-intensive development
feedback on verbal and nonverbal effectiveness, 309
program, 406–407
behavior, 319 servant leader, 99
Feedback on performance, 89
feedback skills, 90 servant leadership quiz, 97–98
gaining international and cross- shelters for homeless, 230 behavior of leaders and, 89
cultural experience, 379 situational perspective measurement, development programs and,
goal theory application, 259 119 406–407
Good Samaritans, 239 socially responsible behavior, 158 360-degree feedback, 105–107
identifying influence tactics, 214 social responsibility initiative Fiedler’s contingency theory, of
identifying most annoying political checklist, 152 leadership effectiveness, 118–121
behavior tactics, 191 strategic thinker, 342–343 Figurehead role, 6
influence tactics, 213 strength of need for recognition, 260 Financial matters, control on, 12
interpersonal skills checklist, 398–399 supportive leadership, 123 Financial rewards, for creativity, 295
interpersonal work values, 94 survey of influence tactics, 204–205 First-mover strategy, 348–349
intuitive problem-solving style quiz, SWOT analysis, 347 Flattery, 187
284 task-oriented attitudes and Flexibility, 39
knowledge sharing, 352 behaviors, 91 Focus strategy, 348
knowledge-sharing investigation team leader candidates, 238 Followership, 17–18
teams, 354 team player attitudes, 231
collaboration between leaders and
leader ingratiating checklist, 211 thinking big, 44
followers, 18
leader-member exchange with traits, motives, and characteristics of
qualities of effective followers, 18
in-group member and out-group leader, 52
training in, 17
member, 126 trust fall, 246
types of followers, 17–18
leadership by storytelling, 66 trustworthy leader quiz, 32
Framework for leadership, 14–15
leadership ethics quiz, 144–145 vision formulation, 64
Front-loaded messages, 315
leadership experience audit, 16 work engagement tendencies, 251
leadership listening, 320 worker engagement data collection, Frustrations of leaders, 13
leadership role analysis, 7–8, 10 252 Future orientation, 371
local leader analysis, 417 Expectancy theory, 254–255
making inspirational appeal, 208 contradiction in, 256 G
mapping out future for organization, effort-to-performance expectancy, 256 Gender differences in leadership
345 instrumentality, 255 styles, 104–105
meaningful work, 253–254 leadership skills and behaviors, Gender egalitarianism, 371
mentors for leadership development, 256–257 Generalized self-efficacy, 30
405 and motivational skills, 254–257 Gig economy, 233
minimum wage negotiation, 330 valence, 255 Global Business Ethics Survey of
multimedia presentation, 304 Experience of flow, 285 2020, trends from, 143
narcissism attitudes and behavior Experiences for leadership Global diversification, 349
checklist, 63 development, 400–402 Global Leadership and Organizational
paying back favors from network Expertise directory, 234 Behavior Effectiveness (GLOBE),
members, 184 Expert power, 171 370
pinpointing diversity advantage,
Explorer, artist, and judge stages of Global leadership skills, 376–379
369
creative thought, 291 Goals, 13, 257
portfolio for leadership, 16, 52, 81,
Extraversion, 31, 33 conflicting types, 13
112, 165, 197, 223, 246, 275, 303,
335, 389, 417 Eye-directed gazing, 65 motivation and, 257–259
436 Subject Index
Goal-setting theory. See Goal theory dishonest and unethical tactics, International and culturally diverse
Goal theory, 257–259 212–213 aspects of leadership, 364–389
basic findings of, 257–258 ethical and honest tactics, 205–210 accountability for diversity, 379–380
core finding of, 257 exchanging favors and bargaining, anti-bias training, 381–382
ethical behavior for attaining goals, 207 assertiveness, 370–371
258 feedback giving, 209–210 cross-cultural conflict resolution,
over-reliance on goals, 258–259 hands-on leadership, 209 378
Google Workspace, 312 implicit leadership theories and, cross-cultural training, 382
Grit, 41 217–218 cultural factors influencing
Group chat, 312 ingratiation, 210 leadership, 370–371
inspirational appeal, 208 cultural sensitivity, 373–376
Group discussion, 95
joking and kidding, 210 cultural value dimensions, 370–371
Group messaging apps, 312
leadership for organizational change, diversity management, 366–367
Growth and development of other 214–215 diversity training, 381
people, 12 leading by example, respect, and future orientation, 371
Growth mindset, 395 trust, 205–206 gender egalitarianism, 371
Guidance for improvement, 266 legitimating a request, 207–208 general model of, 377
Machiavellianism, 212 global leadership skills, 376–379
H manipulation of people and humane orientation, 371
Hands-on-guidance, 89 situations, 212 inclusive language, emphasizing,
Hands-on leader, 209 model of power and influence, 383–384
Headhunters, 409 203–204 in-group collectivism, 371
Healthy leadership, 145 neutral influence tactics, 210–212 initiatives carrying legal risk, 384
personal appeal, 207 initiatives for cultural diversity,
Heavy-impact words, 313–314
personal magnetism, 208 equity, and inclusion, 379–384
Hedgehog concept, 349
rapport and connections making, 206 leadership diversity, 383
Heredity vs. environment for rational persuasion, 206 management practices in specific
leadership, 43–44, 46 resistance, 203 culture, 378–379
Higher-level need satisfaction, 92 sequencing of, 217 minority recruitment, retention, and
High performance standards, 89 storytelling, 206 mentoring programs, 380
Hiring-talented-people strategy, 349 subject matter expert (SME), 207 motivation and inspiration to
Hubris, 60 team player, 209 workers, 378
Humane orientation, 371 undue pressure, 212–213 multicultural leader, 370
Human resource problems, 13 upward appeal, 211–212 multicultural worker, 373–374
Humility, 341 Informal social network, 184 performance orientation, 370
for leadership, 28–30 Ingratiation, 210 person-organization fit, 382–383
Humor and leadership, 33–34 In-group collectivism, 371 power distance, 371
Initiating structure, 87–88 success factors in international
Initiative and responsibility, 176 management positions, 377–378
I
Innovation, 279. See also Creativity time orientation, 371
Idea quotas, 286
uncertainty avoidance, 371
Ideas, collection of, 286–287 continually pursuing innovation, 296
work orientation, 371
Imitation strategy, 348 encouraging, 294
Interpersonal skill
Implicit Association Test, 382 financial rewards for, 295
and job performance, 294 coach and motivator role, 8
Implicit leadership theories, 217–218 compassion during crisis, 128
loose–tight leadership for, 298
Inclusion, 366. See also International consideration dimension, 87–88
small-scale, 298
and culturally diverse aspects of for crisis leadership, 128
transformational leaders and, 296
leadership emotional intelligence, 37–39
Innovative people, hiring of, 293
Inclusion facilitator role, 8 feedback intensive program for,
Inside information to leader, 12
Inclusive language, emphasis on, 406–407
Insight, 43
383–384 relationship-oriented attitudes and
Inspirational and powerful behaviors, 91–93
Income of leaders, 12
communication, 312–316 team builder role, 8
Influence tactics, 201–223
Inspirational appeal, 208 team player role, 8
apprising, 207
Inspiring people, 92 360-degree survey for improvement,
coalition formation, 209
commitment, 203 Instrumentality, 255 105–107
compliance, 203 Integrity, 143 warmth, 33
consultation with others, 209 Intellectual challenge, 293 Intrinsic satisfaction, 6
co-opting antagonists, 212 Intellectual humility, 28 Intuition, 43, 283
debasement, 213 Intergroup leadership, 227 Isolates, 17
Subject Index 437
J nuts and bolts of leadership, 93 Griffith, Tricia of Progressive

Jargon words, 315 organizational performance and, 4–6 Insurance, 237
Job fatigue and burnout, 13 readiness for leadership role, 7–8 Hayes, John of Ball Corporation, 11
Joking and kidding, 210 and relationship building, 4 Hewson, Marillyn of Lockheed
Junk words, 314 roles for, 6–10 Martin Corp, 311–312
satisfactions, 12 Melrose, Ken of Toro, 100–101
K shared and collaborative, 3 Musk, Elon of SpaceX, 350
Knowledge, creative people and, 281 skill development in, 15 Roman, Emmanuel of PIMCO,
Knowledge management (KM), substitutes for leadership, 5, 6 215–216
351–353 succession, 408–412 Tomé, Carol of UPS, 173–175
general format of, 353 tolerance for ambiguity, 9 Leading by example, 205–206
Knowledge sharing, 351 trait-based perspective on, 26–27, Learning agility, 399
46–47 (See also Traits, motives, and Learning experiences for leadership
L characteristics of leaders) development, 401
Labor abuses, 157 transformational leadership, 69–82 Learning organization, 351, 353–355
Lack of authority, 13 Leadership by inspiration, 65 action learning, 355
Laissez-faire leadership, 72–73, 96 Leadership diversity, 383 concrete learning processes and
Language errors, 314–315 Leadership effectiveness, 14, 26, 86, practices in, 354
137 leadership initiatives for, 354–355
Language training, 376
Leadership motives, 39–41 leadership reinforcing learning in,
Leader behavior and style, 14. See also
Behaviors and attitudes of leaders drive and achievement motive, 40–41 355
motivation to lead, 39–40 learning from failure, 355
Leader characteristics. See also Traits,
power motive, 40 supportive learning environment in,
motives, and characteristics of
tenacity and resilience, 41 354
leaders
Leadership networks, 310 transformational vs. transactional
Leader-member exchange (LMX)
Leadership polarity, 75 leadership and, 354
model, 240, 254
Leadership prototypes, 218 Least preferred coworker (LPC) scale,
extra-role behavior, 241 120
in-group vs. out-group members, Leadership styles, 95–105
autocratic, 96 Legitimate power, 171
treatment of, 240
consensus, 95 Legitimating a request, 207–208
leader’s first impression, 241
leader status, 241 consultative, 95 Linguistic style, 316
reciprocity between leaders and democratic, 95, 96 Listening
members, 240 entrepreneurial, 99, 101–104 as leadership skill, 319
safety performance, 241 gender differences in, 104–105 making the rounds, 320
satisfaction with teamwork, 241 organizational culture and, 107 selective, 320
and teamwork, 240–241 participative, 95–96 showing respect for others, 319–320
transformational effects, 241 selection of best style, 107 Locus of control, 30
Leader-member exchange (LMX) servant type, 96–99 Loneliness, feeling of, 13
theory, 124–125 Leadership succession, 394, 408–412 Loose–tight leadership, 298
Leader political support, 180 board selection, 409
Leadership and leaders emotional aspects, 409 M
in family-owned firms, 409 Machiavellianism, 181, 212
charismatic leadership, 57–82
leadership development programs, Machiavellians, 212
cognitive factors and, 41–43
410–411 (See also Development of Machiavellian tendencies, 181
communication networks of, 308–312
leaders) Macromanagement, 232–233
cultural diversity and, 364–389
pool of successors, 410
development, 393–408 Macy’s Supplier Diversity Program,
promotion from within, 410
difference making, 5–6 367
Leaders in action
dimensions of leadership behavior, Making the rounds, 320
87–88 Amazon leadership investment in
Male–female differences in leadership
dissatisfactions and frustrations, 13 affordable housing, 156
style, 104–105
effectiveness, 14, 86 Atkinson, Kevin of Texas Pride
Disposal, 264 Management
employee engagement and, 250–254 diversity, 366–367
and followers, 17–18 Barra, Mary of GM, 73–74
Beckwith, Ebony of Salesforce knowledge, 351–353
framework for understanding, leadership vs., 4
14–15 Foundation, 402–403
Donald, Arnold W. of Carnival Management by wandering around
impact of mentoring on, 404–405 (MBWA), 123
and management, 4 Corporation, 368–369
Galetti, Beth of Amazon, 45 Management openness, 92
meaning and definitions, 2–4
Gass, Michelle of Kohl’s, 132–133 Manipulative approach, 212
as multilevel phenomenon, 14–15
438 Subject Index
Meaningful work, for employee Optimistic leadership, 33 reciprocity, 317

engagement, 252–253 Organizational agility, 340–341 scarcity, 317
Mentor, 403 Organizational citizenship behavior, social proof, 317
Mentoring, 403–405 34 Philanthropy, 155
backup mentor, 405 Organizational learning, 351 Physical exercise, and creative
effective behaviors, 404 transformational vs. transactional thinking, 291
impact on leadership, 404–405 leadership and, 354 Physical facility, shared, 234–235
informal vs. formal, 403 Organizational performance Political skill, 182
#MeToo movement and, 405 ethics and, 159–160 Politics in organizations, 13, 180–197
online, 404 leadership and, 4–6 abusing power, 191
Metaphors and analogies, 65 Organizational politics, 13, 180. See advice asking, 187
#MeToo movement, 405 also Politics in organizations backstabbing, 190
Micromanagement, avoiding, 232–233 Organizational support, for creativity, blunder avoidance, 188–190
Micromanager, 232 294 bypassing boss, 188
Microsoft Teams, 236, 312 Organization structure, pyramid- change acceptance, 185
Mindfulness, 36–37 shaped, 180–181 communication style of boss, 186
Minority group recruitment and Outcome and valence, 255 control over dysfunctional type, 192
retention, 380 Outdoor training. See Offsite training courteous, pleasant, civil and positive
behavior, 186–187
Mission statements, 228, 292 Outward Bound Professional
credit stealing, 191
Model of teamwork, 230 Development Program, 238
criticizing boss in public, 188
Moral identity, 145–146, 173 Overtime, uncompensated, 13
declining offer from top
Moral leadership, 143, 146 Oxytocin role, in interpersonal management, 188
Morals, 143 relationships, 104–105 demands of political environment,
Motivated blindness, 147 185
P
Motivation skills dress code conformance, 190
Participants, 17–18
coaching, 262–263 embrace or demolish strategy, 190
Participative leadership, 95–96, 122, emotional insecurity, 181
employee engagement, 250–254
232 encouraging admiration from
expectancy theory, 254–257
goal theory, 257–259 Passion subordinates, 181
recognition and pride, 259–262 entrepreneurial, 101, 103 environmental uncertainty and
Motivation to lead, 39–40 for task, 285 turbulence, 181
Multicultural leader, 370, 382 for work and people, 37 ethical tactics and strategies,
Path-goal theory of leadership, 182–190
Multirater feedback. See 360-degree
121–124 exit interview, 190
feedback
Patience, display of, 93 failure set up, 190–191
N Peer leadership network, 310 false catastrophe technique, 191
Narcissism, 61–62 Performance orientation, 370 flattery, 187
Need satisfaction, 92 Performance standards, 232 frustrations of leaders and, 13
Negotiating and bargaining, 327–329 Perform-or-perish mentality, 13 gaining power techniques, 182–185
Personal appeal, 207 getting noticed by senior leadership,
Negotiator role, 8
187–188
Neuroscience, 407 Personal brand, 68
impression management, 186
Nonverbal communication, 317–319 Personality, of creative people,
indiscreet behavior in private life,
Norm of teamwork, 229 283–285
190
Norms for professionals, 6 Personality traits, 27 law of reciprocity, 185
general, 27–34 loyalty display, 186
O task-related, 34–39 Machiavellian tendencies, 181
Offsite training Personalized charismatics, 59 paying back for good deeds, 185
evaluation of, 239–240 Personalized power motive, 40 political correctness, 185
features of, 238–239 Personal magnetism, 208 positive psychological capital, 185
goals of, 238 Personal networks, 310 power contact development, 184
and team development, 237–240 Personal power, 171–172 putting foot in mouth, 188
One-on-one meetings, 92 Persuasion, principles of, 316–317 pyramid-shaped organization
Online mentoring, 404 altercasting, 317 structure and, 180–181
Open-book management, 235 authority, 317 relationship building, 185–188
Open-office layout, 235 consistency, 317 satisfied customer technique, 186
Operational network, 310 liking, 317 subjective standards of performance,
Opportunity spotting, 289 pre-suasion, 317 181
Subject Index 439
tactics and strategies, 181–191 R and knowledge creation, 353

territorial games, 191 Rational persuasion, 206, 213 lending hand, 98
thank-you note technique, 187 Recognition, 259 limitations knowledge, 98
unethical tactics and strategies, for accomplishments, 128–129 listening, commitment to, 96–97
190–191 appreciation and gratitude, 261–262 service before self-interest, 96
vision, 184 motivational impact of, 259–262 and serving behavior of
vital information control, 184–185 Recycling business, 153–154 subordinates, 99
ways to improve performance, 185 Referent power, 171 work on most pressing issue, 98
Position power, 171 Relationships with team members, Sexual harassment, 405
Positive psychological capital, 185 232 Shadowing, 403
Post-bureaucratic organization, 18 Resilience, 41 Shared leadership, 3
Power, 170–173, 202 Resistance, 203 Sharing style of conflict management,
closeness to, 173 Resources for enhancing creativity, 325
coercive, 171 294 Simulations for leadership training,
dependence perspective, 172 Respect and status of leader, 12 407
expert, 171 Six Sigma programs, 348
Respecting individuals, 145
and influence, distinction between, Skill development, 15
Reverse mentoring, 404–405
202 Skill training, in leadership
legitimate, 171 Reward power, 171
development, 407
from managing critical problems, Rewards for group accomplishment,
235 Slack channels, 234, 236, 312
173
Reward system, 215 Smartphones use, 288
opportunity capitalizing, 172
Risk taking, 89 Social awareness, 38
from ownership, 172
personal, 171–172 innovation and, 298 Social entrepreneurship, 154
position, 171 Role play, 407 Social issues, stand on, 159
prestige, 172 Roles in leadership, 6–10 Socialization programs, 408
referent, 171 Rope activities, 238 Socialized charismatic, 59
reward, 171 Rounding, 320 Socialized power motive, 40
and self-serving behavior, 173 Social media networks, 310–311
sources and types, 170–173 S direct vs. indirect ties, 311
Power and prestige feeling, 12 The Sarbanes–Oxley Act, 157 strength-of-ties perspective, 310
Power contacts, 184 Self-awareness, 38 strong vs. weak ties, 311
Power distance, 371 for leadership development, 395–396 Social network, 95
Power motive, 40 Self-confidence, 27–28 Social networking sites use, 67
personalized, 40 of creative worker, 283 Social normative, 39
socialized, 40 Self-confident leadership image, 318 Social responsibility and ethical
Power-oriented linguistic style, 316 Self-discipline, for leadership culture
Power sharing, 230 development, 396 abusive supervision minimizing,
Practical intelligence, 42 Self-disclosure, 230 158–159
Praising others, 316 Self-efficacy, 185, 256 corporate social responsibility,
Prestige power, 172 Self-esteem, 30 149–150
Pride, motivation through, 262 Self-help techniques, for creativity formal mechanisms for dealing with
Principles promotion, 93 improvement, 288–291 ethical problems, 157
Self-leadership, 178 organizational performance and,
Proactive behavior, 34
159–160
Proactive personality, 34–36, 103 Self-management, 38
philanthropy, 155
Productivity, worker engagement as quality of effective followers, 18
pleasant workplace, 151, 153
impact on, 251–252 Self-reinvention, 349
social entrepreneurship, 154
Professional norms, 6 Sensemaking by leader, 126–127 stand on social issues, 159
Prototypes, 218 Sense of entitlement, 146 supplier working conditions
Psychological entitlement, 159 Sequencing of influence tactics, 217 improvement, 155, 157
Psychological safety, promotion of, Servant leadership, 96–99 sustainable environment building,
129 acting as role model, 98–99 153–154
Pygmalion effect, 89 bold with respect to values, morality training in, 158
and doing right thing, 98 triple bottom line, focus on, 151
emotional healing, 98 virtuous circle, 160
Q focus on employee’s development, 99 whistleblower acceptance, 157–158
Quality strategy, 348 helping others main concern, 96 written ethical codes, 157
Question-and-answer sessions, 232 honest and trustworthy, 98 Social support for employees, 145
440 Subject Index
Spokesperson role, 6, 8 preparing for, 346 physical structures for, 234–235

Standards of performance, subjective, strengths, 346 power sharing, 230
181 threats, 347 pride in being outstanding, 230
Standup bot, 312 weaknesses, 346–347 quality relationships, 240–241
The State of Moral Leadership report, Systems thinking, 355 question-and-answer sessions, 232
146 reciprocity between leaders and
The Statistical Abstract of the United T members, 240
States, 314 Tapping into social norms technique, recognition and rewards, 235
212 ritual and ceremony, 235
Storytelling, 65–66, 206, 314
Target recruiting, 384 role of leader in organization,
Strategic acuity, 43
226–227
Strategic alliances, 348 Team-based organizations, 18
safety performance, 241
Strategic contingency theory of power, leader’s role in, 226–227
satisfaction with teamwork, 241
173 Team bonding, time and space for,
team-oriented members selection,
Strategic developer role, 9 129
235–236
Strategic leadership, 340 Team-builder role, 8 team’s mission and tasks, 228
artificial intelligence use, 344 Team impact story, 252 technology for, 236
brand leadership, 349 Team learning, 355 transformational effects, 241
business strategy, development of, Team mission statements, 228 urgent and relevant rationale,
340–345 Team-of-the-Month award, 235 231–232
core competency strategy, 349 Team-oriented members selection, Technical problem solver role, 8
cost leadership strategy, 347–348 235–236 Technology use, for teamwork, 236
differentiation strategy, 347 Team player, 209 TelePresence, 236, 318
focus or niche strategy, 348 Team-player role, 8 Tenacity, 41
growth through acquisition, 348 Team recognition, 235 Territorial games, 191
hedgehog concept, 349
Teams of trained individuals, 6 Test-and-learn approach, 345
high quality strategy, 348
Teamwork development, 225–246 Text messaging, 234, 265
high speed and first-mover strategy,
348–349 blending representatives, 236 Thank-you notese, 187
hiring-talented-people strategy, 349 climate of trust for, 228–229 360-degree feedback, 105–107, 406
human and emotional aspect to collective leadership, 230 Time deadline, setting of, 294
strategy, 343 competition with other group, 232 Time orientation, 371
imitation strategy, 348 consensus leadership style, 230–231 Tinkering time, 287
multiple inputs for strategy, 343–344 cooperation theory, 229
Tolerating ambiguity, 9
product and global diversification, cross-cultural considerations, 236
Tough questions, asking of, 89–90
349 direction providing, 231–232
e-leadership for virtual teams, Town hall, 92
sampling of strategies, 347–349 Training programs in ethics and social
self-reinvention, 349 233–234
excessive collaboration problem, responsibility, 158
strategic alliances, 348
236–237 Traits, motives, and characteristics of
strategic thinking importance,
extra-role behavior, 241 leaders, 25–52
341–342
feedback, providing, 232 adaptability, 39
and strategy implementation,
first impressions, 241 assertiveness, 33
344–345
group emotional intelligence, authenticity, 31
SWOT analysis, 346–347
229–230 cognitive intelligence, 41–42
Strategic networks, 310
group recognition and rewards, 235 conceptual thinking, 43
Strategic planning, 346
in-group vs. out-group members, core self-evaluations, 30
Strategy, 340 courage, 39
treatment of, 240
Street smarts, 42 interaction with team, 232 creativity, 42–43
Stress and burnout, 13 leader–member exchange model and, drive and achievement motive, 40–41
Subject matter expert (SME), 207 240–241 emotional intelligence, 37–39
Substitutes for leadership, 5, 6 leader’s actions for, 227–237 enthusiasm, 33
Succession planning, 408. See also leader status, 241 extraversion, 31, 33
Leadership succession micromanagement minimization, farsightedness, 43
Supportive leader, 92–93, 122 232–233 flexibility, 39
Supportive learning, 354 model of teamwork, 230 general personality traits, 27–34
Sustainable environment, building of, norm of teamwork, 229 heredity vs. environment, 43–44, 46
153–154 offsite training and, 237–240 humility, 28–30
open-book management, 235 insight into people and situations, 43
SWOT analysis, 346–347
outdoor training, 237–240 knowledge of business or group task,
opportunities, 347
performance standards, 232 42
Subject Index 441
likability factor, 34 trust building, 71 charismatic leaders and, 62–64

mindfulness, 36–37 vision aspect, 72 compelling, 184
motivation to lead, 39–40 ways of transformations, 70–71 and mission, 62
optimism, 33 Trans-inclusive workplace, 365 statements, 62–64
passion for work and people, 37 Tribal knowledge, 351 Vision statements, 292
personalized power motive, 40 Triple bottom line, 151 Vital information, controlling of,
proactive personality, 34–36 True north, 31 184–185
self-confidence, 27–28 Trust and trustworthiness for Vocalized pauses, 314
sense of humor, 33–34 leadership, 30–31, 32 Voyage global leadership development
socialized power motive, 40 program, 393–394
Trust fall activity, 238
strengths and limitations of trait
approach, 46–47 U W
task-related personality traits, 34–39 Uncertainty avoidance, 371 Warmth characteristic, 33, 60
tenacity and resilience, 41 Welfare of employees, focus on, 93
Unconscious bias training, 382
trustworthiness, 30–31 Whistleblowers, 157–158
Undue pressure, 212–213
warmth, 33
Unethical behaviors, 149 Whiteboards, use of, 286, 294
Transactional leadership, 72–73
Upward appeal, 211–212 Wilderness adventure expeditions,
Transformational leader, 60
Upward ingratiation, 210 238–239
Transformational leadership, 69–82
Wilderness training, 238
attributes of, 71–72
V Wind turbines, endorsement of, 154
change awareness, 70–71
Valence, 255 Winning team, 229
charisma of, 71–72
Values, 143 Win–win approach, to conflict
concerns about, 75–76
and culture of originality, 293 Values promotion, 93 resolution, 325
face-to-face communication, 71 Videoconferencing, 233, 234, 236, Wisdom, 42
greatness commitment, 71 318–319 Words
impact on performance and Virtual meetings, 234 emotion-provoking, 314
behavior, 72–73 Virtual mentoring, 404 heavy-impact, 313–314
innovative thinking, 72 Virtual reward ceremonies, 234 Worker opinions, openness to, 92
laissez-faire leadership and, 72–73 Virtual teams, 234, 236 Work group design, 294
long-range perspective, 71 communication with, 234 “Working together,” 229
looking beyond self-interest, 70 diversity and directory, 233–234 Work-life balance, 145
personal development of staff, 72 external visibility of team members, Work orientation, 371
positive core evaluations, 72 234 Workplace conflict, 323. See also
powerful narratives about future, 71 face-to-face meetings annually, 234 Conflict resolution
proactive behaviour, 71 forms of communication, 234 Workplace jargon, 315
raising awareness about rewards, 70 individuals benefit, 234 Workplace, trans-inclusive, 365
resources concentration, 71 leadership practices for, 233–234
respect, confidence, and loyalty of monitoring team progress, 234 Z
group members, 72 trust problem in, 233 Zoom conferences, 318
role in fostering innovation, 296 Virtue, 147
self-fulfillment search, 70 Virtuous circle, 160
sense of urgency, 71 Visible and available, 92
supportive leadership, 72
Vision, 62
transactional leadership and, 72–73

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Chapter 2 Traits, Motives, and Characteristics of Leaders 25

Chapter 3 Charismatic and Transformational Leadership 56

Chapter 4 Leadership Behaviors, Attitudes, and Styles 85

Chapter 5 Contingency and Situational Leadership 116

Chapter 6 Leadership Ethics and Social Responsibility 141

Chapter 7 Power, Politics, and Leadership 169

Chapter 8 Influence Tactics of Leaders 201

Chapter 9 Developing Teamwork 225

Chapter 10 Motivation and Coaching Skills 249

Chapter 11 Creativity, Innovation, and Leadership 278

Chapter 12 Communication and Conflict Resolution Skills 307

Chapter 13 Strategic Leadership and Knowledge Management 339

Chapter 14 International and Culturally Diverse Aspects of Leadership 364

Chapter 15 Leadership Development and Succession 393

Summary ∙ Key Terms ∙ Guidelines for Action

The Impact of Leadership on Organizational Chapter 2 Traits, Motives, and Characteristics

Leader in Action: Beth Galetti, Senior Vice President of Transformational Leadership 69

Leadership 56 Leadership Skill-Building Exercise 3-5: Developing an

Overcoming Traditional Thinking as a Creativity

Group Messaging Apps as Leadership The Development of Business Strategy 341

Chapter 14 International and Culturally

Leadership Skill-Building Exercise 14-1: Pinpointing a

Features of the Book personal attributes associated with effective leaders,

Framework of the Text

Chapter 10 new offerings include an expanded Instructor Resources

The Nature and

The Meaning of Leadership A Framework for Understanding Leadership

The description of Rosalind Brewer touches on many

Closely knit teams of highly

Figure 1-1 Substitutes for Leadership.

Leadership Self-Assessment Quiz 1-1

Readiness for the Leadership Role

9. Entrepreneur. Although not self-employed, provides an opportunity to apply role analysis to

Leadership Skill-Building Exercise 1-1

My Leadership Role Analysis

Capable of Need Preparation

4. Coach and motivator (Recognize achievements; encourage; give

7. Technical problem solver (Help group members solve technical

for a person who reports to a leader or manager is team

Leadership Skill-Building Exercise 1-2

Appreciating the Satisfactions of Being a Leader

the leader is effective depends on the three sets of vari-

Leader Group member Context

Figure 1-2 A Basic Framework for Understanding

Leadership Skill-Building Exercise 1-3

Leadership Self-Assessment Quiz 1-2

The Leadership Experience Audit

the importance of collaboration between leaders and

Figure 1-3 Followers Classified by Level of Engagement.

Guidelines for Action and Skill Development

Discussion Questions and Activities

Leadership Case Problem A

continued on following page

continued from previous page