Making decisions that are best for the team is an important aspect of leadership. Some decisions will be accepted positively by the team and others will not. For this Assignment, you will analyze a situation that needs a decision using the Normative Decis

CHAPTER 4 Leadership Behaviors, Attitudes, and Styles

LEARNING OBJECTIVES

After studying this chapter and doing the exercises, you should be able to

· • Explain the key leadership dimensions of initiating structure and consideration.

· • Describe at least five task-oriented leadership behaviors and attitudes.

· • Describe at least five relationship-oriented attitudes and behaviors.

· • Explain how leaders use 360-degree feedback to improve their performance.

· • Describe the participative and autocratic leadership styles.

· • Present the case for the entrepreneurial style of leadership and for gender differences in leadership style.

· • Determine how to choose the most appropriate leadership style.

CHAPTER OUTLINE

The Classic Dimensions of Consideration and Initiating Structure

Task-Related Attitudes and Behaviors

Relationship-Oriented Attitudes and Behaviors

360-Degree Feedback for Fine-Tuning a Leadership Approach

Leadership Styles

Participative Leadership

Autocratic Leadership

Leadership Grid™ Styles

Entrepreneurial Leadership

Gender Differences in Leadership Style

Selecting the Best Leadership Style

Summary

Key Terms

Guidelines for Action and Skill Development

Leadership Case Problem A

Leadership Case Problem B

Notes

By job title, Sheryl Sandberg is COO (chief operating officer) at Facebook, placing her in charge of business operations that encompass sales, marketing, business development, human resources, public policy, and communication. Beyond her job title, Sandberg has been a driving force behind the phenomenal success of Facebook, the best-selling author of Lean-in: Women, Work, and the Will to Succeed, and regarded as one of the most powerful women in the world. She is also a mentor to her boss, company cofounder, Mark Zuckerberg.

   Before joining Facebook in 2008, Sandberg was Vice President of Global Online Sales and Operations at Google, Chief of Staff to the United States Secretary of the Treasury, and a management consultant at McKinsey & Company. Sandberg graduated from Harvard College, with a major in economics, and an MBA from Harvard University.

   As part of her role as COO, Sandberg provides leadership for solving the problems of users, advertisers, and partner websites by using automated systems rather than hiring new staff. She generously praises team members who develop productivity-generating tools that enable Facebook to grow in members and revenue without growing the size of the company.

   Jim Breyer, a member of the Facebook board, said about Sandberg, “I have never met anyone with her combination of infectious, enthusiastic spirit, combined with extraordinary intelligence.” As Zuckerberg sees it, Sandberg “… is unique in that she has a high IQ and EQ [emotional intelligence quotient], and it's just really rare to get than in any single person.”

   Sandberg's management style has been described as highly professional, because she pairs empathy with high expectations and frequent direct feedback, and values entrepreneurial problem-solving above all else. During meetings, Sandberg is an attentive listener, and makes careful observations about how people feel. For example, during an acquisitions meeting, she reminded the team that the firm's founder was about to have a birthday, and the he wanted to complete the deal before the big day.

   If you want to know if you are a good leader, according to Sandberg, answer the following three questions:

· • Do I have followers?

· • Do I have a cause bigger than myself?

· • Do I get stuff done? 1

The story about a world leading technology executive illustrates how leaders' behaviors can influence their effectiveness. Among these behaviors are listening carefully to staff members, providing feedback and guidance, and welcoming risk taking. This chapter describes a number of key 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 other places in the text, to leadership effectiveness. A working definition of an  effective leader  is one who helps group members attain productivity, including high quality and customer satisfaction, as well as job satisfaction. Leadership effectiveness is typically measured by two key criteria.

   The first criterion relates to objective data, such as those dealing with sales, production, safety, number of patents produced by the group, cost cutting, or staying within budget. Measures of job satisfaction and turnover are also used to measure leadership effectiveness. The second criterion focuses on judgments by others about the leader's effectiveness, such as a plant manager rating a supervisor or the board rating a CEO. Most of the research reported throughout this text includes measures of leadership effectiveness in the study design.

The Classic Dimensions of Consideration and Initiating Structure

Studies conducted at Ohio State University in the 1950s identified 1,800 specific examples of leadership behavior that were reduced to 150 questionnaire items on leadership functions. 2  The functions are also referred to as dimensions of leadership behavior. This research became the foundation for most future research about leadership behavior, attitudes, and styles. The researchers asked team members to describe their supervisors by responding to the questionnaires. Leaders were also asked to rate themselves on leadership dimensions. Two leadership dimensions accounted for 85 percent of the descriptions of leadership behavior: consideration and initiating structure.

    Consideration  is the degree to which the leader creates an environment of emotional support, warmth, friendliness, and trust. The leader creates this environment by being friendly and approachable, looking out for the personal welfare of the group, keeping the group abreast of new developments, and doing small favors for the group.

   Leaders who score high on the consideration factor typically are friendly and trustful, earn respect, and have a warm relationship with team members. Leaders with low scores on the consideration factor typically are authoritarian and impersonal in their relationships with group members. Three questionnaire items measuring the consideration factor are as follows:

· 1. Do personal favors for people in the work group.

· 2. Treat all people in the work group as your equal.

· 3. Do little things to make it pleasant to be a member of the staff.

   The relationship-oriented behaviors described later in this chapter are specific aspects of consideration. Another key example of consideration is making connections with people. For example, much of the time Sheryl Sandberg spends outside the office on business is devoted to making connections with key people who could advance the cause of Facebook, as well as help women succeed in their careers.

   Being soft-spoken is a leadership style element that contributes to consideration because workers feel respected when the leader does not attempt to dominate the discussion. Adam Silver, the National Basketball Association (NBA) commissioner is regarded as dispassionate, congenial, and practical— and rarely argumentative. 3

    Initiating structure  means organizing and defining relationships in the group by engaging in such activities as assigning specific tasks, specifying procedures to be followed, scheduling work, and clarifying expectations for team members. A team leader who helped group members establish realistic goals would be engaged in initiating structure. Other concepts that refer to the same idea include production emphasisand task orientation. The taskrelated leadership behaviors and attitudes described later in this chapter are specific aspects of initiating structure.

   Leaders who score high on this dimension define the relationship between themselves and their staff members, as well as the role that they expect each staff member to assume. Such leaders also endeavor to establish well-defined channels of communication and ways of getting the job done. Three self-assessment items measuring initiating structure are as follows:

· 1. Try out your own new ideas in the work group.

· 2. Emphasize meeting deadlines.

· 3. See to it that people in the work group are working up to capacity.

   A positive example of an emphasis on initiating structure is the way Sheryl Sandberg focuses on finding operating efficiencies such as using software instead of adding more people to resolve user problems.

    Leaders have been categorized with respect to how much emphasis they place on consideration and initiating structure. As implied by  Figure 4-1 , the two dimensions are not mutually exclusive. A leader can achieve high or low status on both. For example, an effective leader might contribute to high productivity and still place considerable emphasis on warm human relationships. The four-cell grid of  Figure 4-1  is a key component of several approaches to describing leadership style. We return to this topic later in this chapter and in  Chapter 5 .

   A study of the validity of consideration and initiating structure indicates that these classic dimensions do indeed contribute to an understanding of leadership because they are related to leadership outcomes. A meta-analysis showed that consideration is strongly related to the job satisfaction of group members, satisfaction with the leader, worker motivation, and leader effectiveness. Initiating structure was slightly more strongly related to job performance, group performance, and organization performance. However, initiating structure was also associated with satisfaction and performance. 4  These results are encouraging because they reinforce the importance of this pioneering research.

   Recent research conducted with an online research group and U.S. Air Force officers provides additional insight into the effects of initiating structure and consideration on employee work-related attitudes. The focus of the research was the fit between consideration and initiating structure needed and received. One key result of the study was that when employees did not receive the amount of consideration and initiating structure they thought they needed, unfavorable attitudes were forthcoming. Among these attitudes were less trust in the supervisor, lower job satisfaction, and less commitment to the organization. The study also found that excess levels of consideration were associated with favorable attitudes, and excess levels of initiating structure were associated with unfavorable attitudes. (Apparently, employees don't mind being treated with excess kindness, but they do object to being over-controlled.) 5

FIGURE 4-1 Four Combinations of Initiating Structure and Consideration.

Task-Related Attitudes and Behaviors

The task-related versus relationship-related classification remains a useful framework for understanding leadership attitudes, behaviors, and practices. This section identifies and describes task-related attitudes and behaviors that are characteristic of effective leaders, as outlined in  Table 4-1 . Task-related in this context means that the behavior, attitude, or skill focuses more on the task to be performed than on the interpersonal aspect of leadership.

   As mentioned in  Chapter 2 , a synthesis of many studies indicates that the combination of leadership traits and behaviors (both task and relationship) accounts for a minimum of 31 percent of the differences in leadership effectiveness. Yet, according to the research in question, leader behaviors have a bigger impact on effectiveness than do traits. Although certain traits may predispose individuals to certain behaviors, behaviors are the more important predictor of leadership effectiveness. For example, a leader who is assertive may take naturally to providing clear guidelines and providing feedback to subordinates. It is also noteworthy to recognize that it is easy to develop behaviors than to develop or modify traits. 6

1.  Adaptability to the situation.  Effective leaders adapt to the situation. Adaptability reflects the contingency viewpoint: A tactic is chosen based on the unique circumstances at hand. A leader who is responsible for psychologically immature group members will find it necessary to supervise them closely. If the group members are mature and self-reliant, the leader will use less supervision. The adaptive leader also selects an organization structure that is best suited to the demands of the situation, such as choosing between a brainstorming group and a committee.

2.  Direction setting.  Given that a major responsibility of leadership is to produce change, the leader must set the direction of that change. Direction setting is part of creating a vision and a component of strategy. The strategy describes a feasible way of achieving the vision. Former GE executive turned business author Larry Bossidy believes that it is part of a business leader's job to communicate clearly where the business is going, why, and how the company will benefit if goals are achieved. 7

TABLE 4-1 Task-Related Leadership Attitudes and Behaviors

1. Adaptability to the situation

2. Direction setting

3. High performance standards

4. Concentrating on strengths of group members

5. Risk taking and execution of plans

6. Hands-on guidance and feedback

7. Ability to ask tough questions

8. Organizing for collaboration

© Cengage Learning

3.  High performance standards.  Effective leaders consistently hold group members to high standards of performance. High performance standards can also take the form of challenging the thinking of others. Former General Motors CEO Daniel Akerson has been known to press executives in meetings to justify their plans and initiatives. Furthermore, he does not back down when told that matters were complicated. Akerson would reply that issues should not be complicated; instead, they should be simplified. 8

   When performance is measured against high standards, productivity is likely to increase, since people tend to live up to the expectations of their superiors. This is called the  Pygmalion effect , and it works in a subtle, almost unconscious way. When a managerial leader believes that a group member will succeed, the manager communicates this belief without realizing it. Conversely, when a leader expects a group member to fail, that person will not disappoint the manager. The manager's expectation of success or failure becomes a self-fulfilling prophecy because the perceptions contribute to success or failure.

4.  Concentrating on the strengths of group members.  An axiom of effective leadership and management is to make good use of the strengths of group members rather than concentrating effort on patching up areas for improvement. The effective leader helps people improve, yet still capitalizes on strengths. A team member might have excellent interpersonal skills, yet poor technical skills. It would be best to assign that person a role that emphasizes interpersonal skills, while at the same time helping him or her improve technical skills. Marcus Buckingham emphasizes that capitalizing on each person's unique pattern of skills saves time because group members are not laboring at tasks outside their capability and interest. The manager might even develop a job description that best fits each employee's uniqueness.  9  Suppose you are the leader of a call center, and one staffer is great at calming down angry customers. Other call center members are then asked to refer customers who have gone ballistic to your team member who can handle customer rage well.

5.  Risk taking and execution of plans.  To bring about constructive change, the leader must take risks and be willing to implement those risky decisions. The relevance of risk taking to leadership effectiveness is emphasized by Sarah Mensah, the chief operating officer & chief marketing officer of the professional basketball team, the Portland Trail Blazers. She believes that the ability to welcome and seek out risks is a valuable skill: “I've learned that if there is no risk, there will be no reward.” 10  Larry Bossidy says about the importance of execution: “I'm an impatient person, and I get more satisfaction from seeing things get done than I do about philosophizing or building sand castles. Many people regard execution as detail work that's beneath the dignity of a business leader. That's wrong. It's a leader's most important job.” 11

6.  Hands-on guidance and feedback.  You will recall that technical competence and knowledge of the business are important leadership characteristics. They enable the leader to provide group members with hands-on guidance about how to accomplish important work. The leader who provides such guidance helps the group accomplish important tasks; at the same time, group members learn important skills. Too much guidance of this nature, however, can be a symptom of poor delegation and micromanagement (managing too closely). Too little guidance, and macromanagement is the result, in which the manager gives too little or no direction to group members. Henry Mintzberg observes that the leader's strategy might suffer because he or she does not understand the operations of the business. 12

   Muhtar Kent, the CEO of Coca-Cola Co., is a well-regarded leader who emphasizes using hands-on management to help him better understand the business. He says that he goes to the market at least once a week everywhere he is at the time to help him comprehend the dynamics of the business. When he joined the company in 1978, he spent time on the trucks for about seven and one-half months. 13  (The point here is that understanding the frontline operations of the business facilitates providing hands-on guidance.)

   Closely related to guidance is giving frequent feedback on performance. The leader can rarely influence the actions of group members without appropriate performance feedback. This feedback tells group members how well they are doing so that they can take corrective action if needed. It also serves as reinforcement that prompts group members to continue favorable activities. Leadership Skill-Building Exercise 4-1 provides practice in developing feedback skills.

 LEADERSHIP SKILL-BUILDING EXERCISE 4-1

Feedback Skills

After small groups have completed an assignment such as answering the case questions or discussion questions, hold a performance feedback session. Also use observations you have made in previous problem-solving activities as the basis for your feedback. Each group member provides some feedback to each other member about how well he or she thinks the other person performed. Use only volunteers, because this type of feedback may be uncomfortable and disturbing to some individuals. Students not receiving feedback can serve as observers and later present their views on what took place during the exercise. To increase the probability of benefiting from this experience, feedback recipients must listen actively. Refer to the section in  Chapter 10  on coaching skills and techniques for more information on feedback and active listening.

   A convenient way to do this exercise is for everyone to sit in a circle. Choose one feedback recipient to begin. Going clockwise around the circle, each group member gives that person feedback. After all people have spoken, the feedback recipient gives his or her reactions. The person to the left of the first recipient is the next one to get feedback.

   After everyone has had a turn receiving performance feedback, hold a general discussion. Be sure to discuss three key issues:

· 1. How helpful was the feedback?

· 2. What was the relative effectiveness of positive versus negative feedback?

· 3. Were some group members better than others in giving feedback?

7.  Ability to ask tough questions.  Often, leaders can be effective by asking tough questions rather than providing answers. A  tough question  is one that makes a person or group stop and think about why they are doing or not doing something. (A tough question might also be considered the right question.) In this way, group members are forced to think about the effectiveness of their activities. They might ask themselves, “Why didn't I think of that? It seems so obvious.” Asking questions is important because quite often group members may have the solutions to difficult problems facing the organization.

   When Alan R. Mulally was the newly appointed CEO at Ford Motor Co., he was told that the company loses close to $3,000 every time a customer buys a Focus compact. He asked, “Why haven't you figured out a way to make a profit?” Given a few excuses, Mulally hammered away again: “I want to know why no one figured a way to build this car at a profit, whether it has to be built in Michigan or China or India, if that's what it takes.” 14

8.  Organizing for collaboration.  A leadership behavior on the borderline between a task orientation and a relationship orientation is to demand that workers collaborate with each other. The task focus is that the information sharing takes place, whereas the relationship focus is that group members must work collaboratively with each other. The Corporate Executive Board, a research and advisory service company, recommends three steps for the leader who wants more collaboration:

· • First, identify the high-value business outcomes desired, such as accelerating new-product development, before selecting collaboration technologies.

· • Second, identify collaboration hot spots. Speak with employees to understand their communication patterns and workflows. (A specialist might be required here to help map workflows, such as who is interacting with whom. More will be said about this topic in  Chapter 12 .)

· • Select technologies that will improve or speed up existing workflows. For example, a search engine dedicated to in-company practices might be effective. Most leaders would have to work with an IT consultant to find a technology most likely to increase collaboration. 15

   Now that you have studied various components of task-oriented attitudes and behaviors, do Leadership Self-Assessment Quiz 4-1. It will further sensitize you to the task activities of leaders and managers

Relationship-Oriented Attitudes and Behaviors

Leadership involves influencing people, so it follows that many effective leadership attitudes, behaviors, and practices deal with interpersonal relationships.

 LEADERSHIP SELF-ASSESSMENT QUIZ 4-1

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 AGREE
1. I keep close tabs on productivity figures and interpret them to the group.	□	□
2. I send frequent e-mail and text messages to group members, 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 e-mail, text messages, or the Internet during working hours unless the activity is actually increasing productivity.	□	□
8. I freely criticize work that does not meet standards.	□	□
9. I spend at least 5 percent of my workweek either planning myself or helping team members with their planning.	□	□
10. I spend a good deal of time solving technical or business 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 taskoriented 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 and behaviors that we will discuss next. (Most other parts of this book describe the interpersonal skill aspects of leadership.)

1.  Aligning people.  Getting people pulling in the same direction and collaborating smoothly is a major interpersonal challenge. To get people pulling together, it is necessary to speak to many people. The target population can involve many different stakeholders. Among them are managers and team leaders, higher-ups, peers, and workers in other parts of the organization, as well as suppliers, government officials, and customers. Anyone who can implement the vision and strategies or who can block implementation must be aligned. 16  After being aligned, organizational members can pull together toward a higher purpose. Alignment also incorporates getting the group working together smoothly.

TABLE 4-2 Relationship-Oriented Attitudes and Behaviors

1. Aligning people

2. Openness to worker opinions

3. Creating inspiration and visibility

4. Satisfying higher-level needs

5. Giving emotional support and encouragement

6. Promoting principles and values

7. Being a servant leader

© Cengage Learning

2.  Openness to worker opinions.  A major part of relationship-oriented leadership is to engage in  management openness , or a set of leader behaviors particularly relevant to subordinates' motivation to voice their opinion. 17  When the leader is open in this way, subordinates perceive that their boss listens to them, is interested in their ideas, and gives fair consideration to suggestions. Being open to worker opinions is part of the consideration dimension, and it is also central to participative leadership. A representative example being open to worker opinions is Frank Blake, the CEO of Home Depot. He incorporates face-to-face meetings with almost all new store managers or assistant managers at the home-improvement chain, as well as occasional meetings with other store managers. 18  During these meetings, Blake listens attentively to suggestions for improving store operations and customer experience.

3.  Creating inspiration and visibility.  As described in the discussion of charismatic and transformational leadership, inspiring others is an essential leadership practice. Inspiring people usually involves appealing to their emotions and values, such as when the head of a snowmobile business unit encourages workers to believe that they are making winters more enjoyable for people who live in regions that accumulate snow as well as facilitating rescue missions.

   Because human contact and connections reinforce inspiration, another part of being inspirational is being visible and available. Frank Blake's frequent visits to Home Depot stores help create the visibility that has enhanced his stature as the company leader. The fact that he dons the Home Depot uniform of an orange apron adds to his accessibility.

4.  Satisfying higher-level needs.  To inspire people, effective leaders motivate them by satisfying higher-level needs, such as needs for achievement, personal growth, a sense of belonging, recognition, self-esteem, and a feeling of control over one's life. Many leaders in organizations express an awareness of the importance of need satisfaction for building good relationships with workers. A robust method of satisfying workers' higher-level needs is to help them grow professionally. Star executive W. James McNerney, now the Boeing Company chairman, president, and CEO, says that he has been a successful executive at three major companies primarily through helping people perform better. McNerney contends that people who grow are open to change, have the courage to do so, work hard, and are good team players. In his words, “What I do is figure out how to unlock that in people, because most people have that inside of them. But they often get trapped in a bureaucratic environment where they've been beaten about the head and shoulders.” 19

5.  Giving emotional support and encouragement.  Supportive behavior toward team members usually increases leadership effectiveness. A supportive leader gives frequent encouragement and praise and also displays caring and kindness even about nonwork-related matters such as the health of a worker's ill family member. Keep in mind that encouragement means to fill with courage. One of the many work-related ways of encouraging people is to ask for their input about important decisions. Emotional support generally improves morale and sometimes improves productivity. In the long term, emotional support and encouragement may bolster a person's self-esteem. Being emotionally supportive comes naturally to the leader who is empathetic and warm.

   Giving encouragement was also the eighth leadership principle of Dale Carnegie, the famous early proponent of human relations principles, in work and personal life. Recently, Tessa E. Basford and Andrea Molberg searched for empirical evidence for the validity of Carnegie's leadership principles, including encouragement. Overall, they found support for Carnegie's recommendations to use encouragement. Encouragement is linked to improvement of job performance and attitudes, probably because encouragement boosts feelings of self-worth. 20

   Michael Mathieu, the CEO of YuMe, an online video advertising team, believes that part of the reason he landed his job was his personality, which includes the willingness to encourage workers. He says that his employees can talk to him about anything with absolutely no fear of being told their idea is stupid. 21

6.  Promoting principles and values.  A major part of a top leader's role is to help promote values and principles that contribute to the welfare of individuals and organizations. This promotion can be classified as relationshiporiented because it deals directly with the emotions and attitudes of people, and indirectly with the task. The late Stephen Covey, who is widely quoted for his uplifting messages, advises that an organization's mission statement must be for all good causes. 22  Leaders who believe in these good causes will then espouse principles and values that lead people toward good deeds in the work place. To encourage managers and all other employees to conduct their work affairs at a high moral level, many companies put their values in written form. The values might be placed in employee handbooks, on company intranets, or on company websites.

   IBM is an example of a company that heavily emphasizes values in the leadership of the enterprise. Randy MacDonald, the company's worldwide HR czar explains that being an IBMer is not about a product line, about a team, or  about the individual. The focus is on the values built into the enterprise with an emphasis on the client, innovations for the both the company and society around trust and personal responsibility, and the way company employees treat each other. 23  An emphasis on such values helps an IBM project leader inspire the team to develop solutions to help a city decrease pollutants.

   Another value that often helps an enterprise is a strong focus on the welfare of employees. A notable example is the leadership of Rich Snyder, CEO of the successful fast-food chain, In-N-Out Burger. Wages and benefits are relatively high, and managers who meet their goals are eligible for company paid luxury vacations. The Snyder family was committed to viewing employees as if they were family members. As a result, In-N-Out Burger boasts one of the lowest turnover rates in the industry. Snyder met an early death at age 49, but the family kept the business operating based on the same values. 24

   Providing moral leadership begins with understanding one's own values. Leadership Skill-Building Exercise 4-2 gives you an opportunity to think through your work-related values so that you can better provide moral leadership to others. Also, more will be said about values and ethics in  Chapter 6 .

 LEADERSHIP SKILL-BUILDING EXERCISE 4-2

Clarifying Your Interpersonal Work Values

Instructions:  To provide effective value leadership, it is essential that you first understand your own values with respect to dealing with others. Rank from 1 to 15 the importance of the following values to you as a person. The most important value on the list receives a rank of 1; the least important, a rank of 15. Use the space next to “Other” if we have left out an important value related to interpersonal relations on the job.

· _____ Having respect for the dignity of others

· _____ Ensuring that others have interesting work to perform

· _____ Earning the trust of others

· _____ Earning the respect of others

· _____ Impressing others with how well my group performs

· _____ Giving others proper credit for their work

· _____ Inspiring continuous learning on the part of each member in our group, myself included

· _____ Holding myself and others accountable for delivering on commitments

· _____ Helping others grow and develop

· _____ Inspiring others to achieve high productivity and quality

· _____ Developing the reputation of being a trustworthy person

· _____ Being in contact regularly with work associates using social networking sites

· _____ Contributing to the job satisfaction of work associates

· _____ Avoiding creating intense job dissatisfaction for any work associate

· _____ Other

· 1. Compare your ranking of these values with that of the person next to you, and discuss your observations.

· 2. Perhaps your class, assisted by your instructor, might arrive at a class average on each of these values. How does your ranking compare to the class ranking?

· 3. Look back at your own ranking. Does your ranking surprise you?

· 4. Are there any surprises in the class ranking? Which values did you think would be highest and lowest?

Clarifying your values for leadership is far more than a pleasant exercise. Many business leaders have fallen into disgrace and brought their companies into bankruptcy because of values that are unacceptable to employees, stockholders, outside investigators, and the legal system. For example, a CEO who valued “developing the reputation of being a trustworthy person” would not borrow $400 million from the company while paying thousands of employees close to the minimum wage.

7.  Being a servant leader.  Your desire to help others is another important workplace value. A  servant 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 formulated by Robert K. Greenleaf, is that leadership derives naturally from a commitment to service. 25  Serving others, including employees, customers, and community, is the primary motivation for the servant leader. A study with CEOs found, not surprisingly, that narcissism as measured by a personality test is negatively related to servant leadership. 26  True leadership emerges from a deep desire to help others. A servant leader is therefore a moral leader. Servant leadership has been accomplished when group members become wiser, healthier, and more autonomous. The following are key aspects of servant leadership. 27

· • Place service before self-interest. A servant leader is more concerned with helping others than with acquiring power, prestige, financial reward, and status. The servant leader seeks to do what is morally right, even if it is not financially rewarding. He or she is conscious of the needs of others and is driven by a desire to satisfy them. (You will recall that wanting to satisfy the needs of others is a relationship behavior.)

· • Listen first to express confidence in others. The servant leader makes a deep commitment to listening in order to get to know the concerns, requirements, and problems of group members. Instead of attempting to impose his or her will on others, the servant leader listens carefully to understand what course of action will help others accomplish their goals. After understanding others, the best course of action can be chosen. Through listening, for example, a servant leader might learn that the group is more concerned about team spirit and harmony than striving for companywide recognition. The leader would then concentrate more on building teamwork than searching for ways to increase the visibility of the team.

· • Inspire trust by being trustworthy. Being trustworthy is a foundation behavior of the servant leader. He or she is scrupulously honest with others, gives up control, and focuses on the well-being of others. Usually such leaders do not have to work hard at being trustworthy because they are already moral. In support of this principle, a survey found that most employees want a boss who is a trusted leader, not a pal. 28

· • Focus on what is feasible to accomplish. Even though the servant leader is idealistic, he or she recognizes that one individual cannot accomplish everything. Therefore, the leader listens carefully to the array of problems facing group members and then concentrates on a few. The servant leader thus systematically neglects certain problems. A labor union official might carefully listen to all the concerns and complaints of the constituents and then proceed to work on the most pressing issue.

· • Lend a hand. A servant leader looks for opportunities to play the Good Samaritan. As a supermarket manager, he or she might help out by bagging groceries during a busy period. Or a servant leader might help clean out mud in the company lobby after a hurricane.

· • Provide emotional healing. A servant leader shows sensitivity to the personal concerns of group members, such as a worker being worried about taking care of a disabled parent. A recurring example of the need for emotional healing is when a natural disaster, such as a tornado or sinkhole strikes an employee's home. The servant leader would likely grant the employee time off with pay to manage the problem, and also direct the employee toward any company resources available for emergency help.

· • Act as a role model for other organizational members to emphasize service. As a result of the behaviors just described, servant leaders often ignite a cycle of service by acting as a role model servant behavior. A study conducted in a large retail chain found that the leader's servant behavior is mirrored through coworker modeling behavior and high-quality customer service. 29

   In addition to being logically sound, research with 182 workers indicates that servant leadership has a positive relationship with organizational citizenship behavior, job performance, and staying with the organization. 30  A study with seven multinational companies in Kenya suggested that servant leadership sets up a positive climate (company atmosphere) that in turn encourages employees to be good organizational citizens. 31

   Recent evidence suggests that servant leadership at the top of the organization has a positive impact on the performance of a firm. The study involved 126 CEOs in the United States from the software and hardware technology industries. Servant leadership was measured by a self-report questionnaire, and firm performance was measured by return on assets (annual income divided by net assets). Analysis of data revealed that CEO servant leadership tendencies were significantly related to firm performance. Another part of the study suggested that CEOs who were company founders were more likely to be servant leaders, 32  reinforcing the idea that founders are often passionate about their company and its employees.

   Leadership Skill-Building Exercise 4-3 provides an opportunity for you to practice relationship-oriented and task-oriented behaviors. Combined, these are sometimes referred to as the nuts and bolts of leadership.

360-Degree Feedback for Fine-Tuning a Leadership Approach

In most large organizations, leaders not only provide feedback to group members, but they also receive feedback that gives them insight into the effects of their attitudes and behaviors. This feedback is systematically derived from a full sampling of parties who interact with the leader. In particular,  360-degree feedback  is a formal evaluation of superiors based on input from people who work for and with them, sometimes including customers and suppliers. It is also referred to as multirater feedback. The process is also called 360-degree survey because the input stems from a survey of a handful of people. The multiple input becomes another way of measuring leadership effectiveness. The specific 360-degree form is often customized to a particular firm's needs, but standardized (off-the-shelf) forms are used by about 25 percent of firms using the method.

 LEADERSHIP SKILL-BUILDING EXERCISE 4-3

Applying Relationship-Oriented and Task-Oriented Attitudes and Behaviors

About six role players who can tolerate brutal outdoor conditions are needed for this exercise. The setting is an oil drilling rig in the Arctic Circle, where deep underground oil reserves have been discovered, and energy companies are now digging. Today the wind chill factor is –40 degrees Fahrenheit. The crew of five is uncomfortable and a little confused about how to get the drilling started this morning. The leadership task of the supervisor is to help the crew get the digging accomplished.

   Supervisor A attempts to engage in relationshiporiented attitudes and behavior with the group. He or she will use several of the behaviors mentioned in the text. The other five or so role players will react to his or her leadership. Work the role play for about ten minutes.

   After the first scenario is complete, Supervisor B will engage in task-oriented attitudes and behaviors, using several of the behaviors mentioned in the text. The other five or so role players will react to this leadership. Continue the role play for about ten minutes.

   Class members not thrown into the frozen tundra will observe the interactions of the supervisor with the workers. Provide feedback as to (a) how well the leadership attitudes and behaviors were carried out, and (b) how likely these attitudes and behaviors were helpful in accomplishing the task of getting the drilling started.

   Specialists in the field view 360-degree feedback as more suited for its original purpose of development for a manager or leader than for administrative purposes, such as performance evaluation and salary administration. When used for development, 360-degree feedback should emphasize qualitative comments rather than strictly quantitative ratings.33 For example, being told, “You do not maintain eye contact with me during meetings,” is more helpful than simply receiving a low rating on “Makes others feel comfortable.” The feedback is communicated to the leader (as well as others receiving 360-degree feedback) and interpreted with the assistance of a human resources professional or an external consultant.

   The data from the survey can be used to help leaders fine-tune their attitudes and behavior. For example, if all the interested parties gave the leader low ratings on “empathy toward others,” the leader might be prompted to improve his or her ability to empathize, such as by reading about empathy, attending a seminar, or simply making a conscious attempt to empathize when involved in a conflict of opinion with another person.

   An example of a 360-degree feedback form is shown in  Figure 4-2 . When used for purposes of development, the leader will often provide a self-rating on each dimension and then compare self-ratings with those of subordinates as well as other work associates. When there is a large gap between self-ratings and ratings by others, professionally trained counselors or business coaches should be involved in 360-degree feedback. Some people feel emotionally crushed when they find a wide discrepancy between their self-perception on an interpersonal skill dimension and the perception of others. A middle manager involved in a 360-degree evaluation prided herself on how well she was liked by others. The feedback that emerged, however, depicted her as intimidating, hostile, and manipulative. Upon receiving the feedback, the woman went into a rage (proving the feedback true!) and then into despondency. Professional counseling can sometimes help a person benefit from critical feedback and place it in perspective.

   For best results, it is extremely important that 360-degree surveys reflect those behaviors and attitudes that the organization values most highly. Care should also be taken that the dimensions measured reflect important aspects of leadership functioning. Following are some suggestions for making better use of 360-degree surveys. 34

FIGURE 4-2 A 360-Degree Feedback Chart

· • The person receiving the multiple feedback should have some say about who the raters will be. The supervisor of the person receiving the survey is also invited to suggest who should provide the feedback.

· • Customize the assessment dimensions based on the leadership competencies that are associated with success in your organization.

· • Train workers in giving and receiving feedback. Giving constructive feedback takes coaching, training, and practice.

· • Create an action plan for improvement for each leader based on the feedback. For example, a leader rated low on interpersonal skills might benefit from training in emotional intelligence. When a serious leadership problem exists, the regular sessions might be scheduled with an industrial psychologist or executive coach.

· • Ensure that the managers rated have full ownership of the feedback information so that they will perceive the feedback as being geared toward personal development rather than administrative control.

   A potential problem with 360-degree feedback is its anonymity. Much like people who post nasty comments about people on social media websites, an angry subordinate can write an insulting and crushing comment about a manager on the 360-degree feedback form. The criticism might be without merit.

Leadership Styles

A leader's combination of attitudes and behaviors leads to a certain regularity and predictability in dealing with group members.  Leadership style  is the relatively consistent pattern of behavior that characterizes a leader. Studying leadership style is an extension of understanding leadership behaviors and attitudes. Most classifications of leadership style are based on the dimensions of consideration and initiating structure. Comments such as “He's a real command-and-control-type” and “She's a consensus leader” have become commonplace.

   An important insight into leadership style is that personality traits influence which style will be natural for a given individual. The same association exists between the leadership behaviors already described in this chapter. Imagine a person who is authoritarian and controlling; this person would gravitate toward an authoritarian leader. And a person who scores high on the traits of agreeableness and extraversion might take naturally to a shared type of leadership.

   Reinout E. de Vries conducted a study with 113 leaders and 201 subordinates at several companies to explore the relationship between personality traits and leadership style. His key findings support information presented at several places in this book in addition to being directly related to the styles to be described in this section. The study concluded that (1) honesty– humility was positively related to ethical leadership, (2) extraversion is positively related to charismatic leadership, (3) agreeableness is positively related to supportive leadership, and (4) conscientiousness is positively related to task-oriented leadership. 35

   Here we describe the participative leadership style, the autocratic leadership style, the Leadership Grid, the entrepreneurial leadership style, gender differences in leadership style, and choosing the best style. Chapter 5 continues the exploration of leadership styles by presenting several contingency leadership theories.

Participative Leadership

Sharing decision making with group members and working with them side by side has become the generally accepted leadership approach in the modern organization. Consultant Maria Collar observes that in today's volatile markets where abilities to explore and innovate are highly valued, collective approaches to leadership can help foster creative problem solving. 36  A useful perspective for understanding collective and participative leadership is that they are based on networks of people working together and sharing information. A social network consists of a set of individuals and the relationships that bind them, such as people within a work group who trust each other enough to accept their advice on a problem. 37  (Social network in this context refers more to physical than virtual groups).

    Participative leaders  share decision making with group members. The terms shared leadership, collaborative leadership, and team leadership all refer to the same idea as participative leadership. Participative leadership encompasses so many behaviors that it can be divided into three subtypes: consultative, consensus, and democratic.

    Consultative leaders  confer with group members before making a decision. However, they retain the final authority to make decisions.  Consensus leaders  strive for consensus. They encourage group discussion about an issue and then make a decision that reflects general agreement and that group members will support. All workers who will be involved in the consequences of a decision have an opportunity to provide input. A decision is not considered final until it appears that all parties involved will at least support the decision.  Democratic leaders  confer final authority on the group. They function as collectors of group opinion and take a vote before making a decision.

   The participative style is based on management openness because the leader accepts suggestions for managing the operation from group members. Welcoming ideas from below is considered crucial because as technology evolves and organizations decentralize, frontline workers have more independence and responsibility. These workers are closer to the market, closer to seeing how the product is used, and closer to many human resource problems. Frontline knowledge can provide useful input to leaders for such purposes as developing marketing strategy and retaining employees.

   The participative style encompasses the teamwork approach. Predominant behaviors of participative leaders include coaching team members, negotiating their demands, and collaborating with others. Often, the team member who has the most relevant knowledge for the task at hand slips into a leadership role. Research indicates that poor-performing teams are often dominated by the team leader, whereas high-performing teams are characterized by shared leadership. 38

   The participative style is well suited to managing competent people who are eager to assume responsibility. Such people want to get involved in making decisions and giving feedback to management. Because most graduates from business and professional programs expect to be involved in decision making, participative leadership works well with the new breed of managers and professionals.

   Participative leadership does have some problems. It often results in extensive and time-consuming team meetings and committee work. Also, consensus and democratic leaders are sometimes accused of providing too little direction, or being macromanagers. Sometimes, participative leadership is carried to extremes. Team members are consulted about trivial things that management could easily handle independently. Another problem is that many managers still believe that sharing decision making with members reduces their power.

  If democratic leadership goes one step further, the result is extreme macromanagement, which is referred to as the laissez-faire leadership style. A study conducted with 4,500 Norwegian employees found that employees managed by a laissez-faire (the French term for “let do”) leader experienced role ambiguity. The ambiguity led them to anxiously guess what criteria their supervisor would follow when evaluating their performance, and also guess about which tasks should receive the highest priority. 39

   A practical problem with participative leadership, especially the consensus subtype, is that it consumes so much time, particularly in the form of so many face-to-face meetings to make decisions. The use of communication technology, such as collaborative software, can often help overcome the problem of the time consumed by in-person meetings.

   The accompanying Leader in Action describes a high-technology executive who emphasizes a consensus style.

Autocratic Leadership

In contrast to participative leaders are  autocratic leaders , who retain most of the authority. They make decisions confidently, assume that group members will comply, and are not overly concerned with group members' attitudes toward a decision. Autocratic leaders are considered task-oriented because they place heavy emphasis on getting tasks accomplished. Typical autocratic behaviors include telling people what to do, asserting authority, and serving as a model for team members.

   In some situations, and in some organizational cultures, autocratic leadership is called for. Dan Ackerman became the CEO at General Motors in 2010, a time when quick results were needed. He had served GM for a year previously as a financial officer. Ackerman was a former naval officer with a reputation for being tough-minded in seeking results and quite decisive. Also, as a private equity fund manager, he had led companies in turnaround situations where clear goals must be attained quickly. As with other effective autocratic leaders, Ackerman moves quickly in making many decisions but does seek some input from trusted advisors. 40  To be described as autocratic does not necessarily mean the leader is impulsive or stubborn.

 LEADER IN ACTION

Craig Federighi, Senior Vice President, Software Engineering at Apple Inc.

A key rising star at Apple Inc. is Craig Federighi, the senior vice president of software engineering, who reports directly to CEO Tim Cook. He oversees several major Apple technology groups including the common operating system engineering teams. The teams Federighi oversees are responsible for delivering the software at the heart of Apple's products, including the user interface, applications, and frameworks.

   Prior to his present position, Federighi had been working at Apple on and off for many years. He began his professional career as a project engineer in 1994 at NeXT, the company Steve Jobs started after being released from Apple in the 1980s. Federighi joined Apple when the company acquired NeXT, and Jobs was brought back. Soon thereafter, Federighi resigned from Apple to join Ariba, an enterprise software company. He spent ten years at Ariba, eventually being promoted to chief technology officer. Federighi rejoined Apple to head the division responsible for the Mac OS X.

   Federighi contributes enormous technical expertise to the company and frequently appears on stage during product launch events, such as the developer's conference. His passion for Apple hardware and software, combined with his charisma contribute to his effectiveness as a product pitchperson. As Federighi explains, “OK, I'm a technology freak, but I think probably if someone mapped my brain, you would find there were moments when I lit up the love pattern in my neurons in association with our products.”

   Several people who know both Federighi and Tim Cook say that the two are similar in their preference for building consensus on major decisions, which often increases the time consumed in making a decision. Federighi also works to attain collaboration among specialists who relish complexity in products with those who look to make things simple for the end user. He says that having team members who are good at complexity and those who are not is a critical element of collaboration.

   To overcome some of the divisiveness that existed in the previous top-management team, the new top team consisting of Cook, Jony Ive, and Federighi emphasizes collaboration and camaraderie. The three men collectively are considered to be the new visionary-in-chief to replace the late Steve Jobs.

   Federighi's formal education includes a Master of Science degree in computer science and a bachelor of science degree in electrical engineering and computer science from the University of California, Berkeley.

QUESTIONS

· 1. How would you characterize the leadership style of Craig Federighi?

· 2. What appear to be several of Federighi's leadership characteristics?

· 3. To what extent do you think Federighi is qualified for his position as a leading technology executive?

Sources: Original story created from facts and observations in the following sources: Seth Fiegerman, “Apple's Next Big Thing: Craig Federighi,” Mashable ( www.mashable.com ), June 12, 2013, pp. 1–10; Jessica E. Lessin, “Apple's Rising Star: Craig Federighi,” The Wall Street Journal, June 12, 2013, p. B8; Casey Newton, “Apple's Most Important Introductions: Tim Cook, Craig Federighi, and Jony Ive,” Verge ( www.theverge.com ), September 20, 2013, pp. 1–11; Sam Grobart, “Apple's Jonathan Ive and Craig Federighi: The Complete Interview,” Businessweek ( www.businessweek.com ), September 25, 2013, pp. 1–20.

   Part of your skill development as a leader involves gaining insight into your own leadership style or potential style. To this end, do Leadership Self-Assessment Quiz 4-2.

Leadership Grid™ Styles

A classic method of classifying leadership styles suggests that the best way to achieve effective leadership is to integrate the task and relationship orientations. The  Leadership Grid™  is a framework for specifying the extent of a leader's concern for production and people. 41

 LEADERSHIP SELF-ASSESSMENT QUIZ 4-2

What Style of Leader Are You or Would You Be?

Instructions:  Answer the following statement, keeping in mind what you have done, or think you would do, in the scenarios and attitudes described.

	MOSTLY TRUE	MOSTLY FALSE
1. I am more likely to take care of a high-impact assignment myself than turn it over to a group member.	□	□
2. I would prefer the analytical aspects of a manager's job to working directly with group members.	□	□
3. An important part of my approach to managing a group is to keep the members informed almost daily of any information that could affect their work.	□	□
4. It is a good idea to give two people in the group the same problem and then choose what appears to be the best solution.	□	□
5. I like to have updates a few times a day on the work progress of subordinates, even if the update is simply a text message or instant message.	□	□
6. I look for opportunities to obtain group input before making a decision, even on straightforward issues.	□	□
7. I would reverse a decision if several of the group members presented evidence that I was wrong.	□	□
8. Differences of opinion in the work group are healthy.	□	□
9. I think that activities to build team spirit, like fixing up a poor family's house on a Saturday, are an excellent investment of time.	□	□
10. If my group were hiring a new member, I would like the person to be interviewed by the entire group.	□	□
11. An effective team leader today uses e-mail or other digital media for about 98 percent of communication with team members.	□	□
12. Some of the best ideas are likely to come from the group members rather than from the manager.	□	□
13. If our group were going to have a banquet, I would get input from each member on what type of food should be served.	□	□
14. I have never seen a statue of a committee in a museum or park, so why bother making decisions by committee if you want to be recognized?	□	□
15. I dislike it intensely when a group member challenges my position on an issue.	□	□
16. I typically explain to group members how (what method) they should use to accomplish an assigned task.	□	□
17. If I were out of the office for a week, most of the important work in the department would get accomplished anyway.	□	□
18. Delegation of important tasks is something that would be (or is) very difficult for me.	□	□
19. When a group member comes to me with a problem, I tend to jump right in with a proposed solution.	□	□
20. When a group member comes to me with a problem, I typically ask that person something like, “What alternative solutions have you thought of so far?”	□	□

Scoring and Interpretation:  The answers for a participative leader are as follows:

· 1. Mostly false

· 2. Mostly false

· 3. Mostly true

· 4. Mostly false

· 5. Mostly false

· 6. Mostly true

· 7. Mostly true

· 8. Mostly true

· 9. Mostly true

· 10. Mostly true

· 11. Mostly false

· 12. Mostly true

· 13. Mostly true

· 14. Mostly false

· 15. Mostly false

· 16. Mostly false

· 17. Mostly true

· 18. Mostly false

· 19. Mostly false

· 20. Mostly true

   Give yourself a score of 1 for each answer that matches the answer key.

   If your score is 15 or higher, you are most likely (or would be) a participative leader. If your score is 5 or lower, you are most likely (or would be) an authoritarian leader.

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 participative leadership. For example, statement 20 suggests that you encourage group members to work through their own solutions to problems. If your goal is to become an authoritarian leader, the statements can also serve as useful guidelines. For example, statement 19 suggests that an authoritarian leader first looks to solve problems for group members.

   Concern for production is rated on the grid's horizontal axis. Concern for production includes results, bottom line, performance, profits, and mission. Concern for people is rated on the vertical axis, and it includes concern for group members and coworkers. Both concerns are leadership attitudes or ways of thinking about leadership. Each of these concerns (or dimensions) exists in varying degrees along a continuum from 1 to 9. A manager's standing on one concern is not supposed to influence his or her standing on the other. As shown in  Figure 4-3 , the Grid encompasses seven leadership styles. If you are already familiar with the Grid, you will notice that the names of the styles have been changed in this version.

   The creators of the Grid argue strongly for the value of 9, 9 Sound (contribute and commit). According to their research, the sound management approach pays off. It results in improved performance, low absenteeism and turnover, and high morale. Sound (9, 9) management relies on trust and respect, which combine to bring about good results.

   An example of a manager who might qualify as a 9, 9 leader is Mark Mason, the CEO of the private banking division of Citigroup Inc. He has a staff of his own and is also responsible for working with each of the regional CEOs in addition to market managers, bankers, and investment counselors for the purpose of accelerating growth. Mason is known for his outstanding business results and also has been highly effective in developing relationships with team members, his mentors, and senior executives. 42

Entrepreneurial Leadership

Many entrepreneurs use a similar leadership style that stems from their personality characteristics and circumstances. Although there are different types and definitions of entrepreneurs; in general, an entrepreneur is a person who founds and operates an innovative business. Not all business owners, including franchise operators, are therefore entrepreneurial leaders. The general picture that emerges of an entrepreneur is a task-oriented and charismatic person. Entrepreneurs drive themselves and others relentlessly, yet their personalities also inspire others.

   This entrepreneurial leadership style often incorporates the behaviors described in the following paragraphs. Although some authorities disagree about whether an entrepreneurial personality exists, evidence is accumulating that many entrepreneurs share a recognizable personality pattern. 43  Leadership Self-Assessment Quiz 4-3 gives you the opportunity to think about the type of entrepreneurial thinking and behavior typical of the entrepreneurial personality.

1.  Strong achievement drive and sensible risk taking.  Entrepreneurs have stronger achievement motives than most leaders (see  Chapter 2 ). Building a business is an excellent vehicle for accomplishment and risk taking. To accomplish what they think needs to be accomplished, entrepreneurs are willing to work extraordinary hours, with twelve-hour days, seven days a week not being unusual. Because entrepreneurs take sensible risks, many do not perceive themselves as being risk takers—just as many tightrope walkers believe they are not taking risks because they perceive themselves to be in control.

2.  High degree of enthusiasm and creativity.  Entrepreneurs are highly enthusiastic, partially because they are so excited about their achievements. As Entrepreneur magazine puts it, “Something about being an entrepreneur is, for them, a five-star, butt-kicking, rocket-boosting blast.” Entrepreneurs' enthusiasm, in turn, makes them persuasive. As a result, they are often perceived as charismatic. Some entrepreneurs are so emotional that they are regarded as eccentric.

   The enthusiasm of entrepreneurs often develops into passion. The late Anna Roddick, who founded the Body Shop, asserted that “to succeed you have to believe in something with such a passion that it becomes a reality.” A theoretical analysis of entrepreneurial passion suggests that it is invested in three roles. First is the inventor role of recognizing an opportunity such as seeing the need for a product or service. Second is the founder role of creating the venture, with all its associated managerial and leadership responsibilities. Third is the developer role of growing the venture, such as expanding into the global market. 44

3.  Typical pattern of being proactive.  Leon C. Prieto argues that the proactive personality has potential for providing additional insight into how personality traits are related to entrepreneurship. The natural link is that entrepreneurship is inherently proactive—to be an entrepreneur one has to scan the environment to find an opportunity, and then capitalize on the opportunity. Individuals with a proactive personality may be more inclined to mobilize resources and gain the commitment required for value creation that the entrepreneur requires. 45

 LEADERSHIP SELF-ASSESSMENT QUIZ 4-3

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 every week that it seems senseless to bother dreaming up an idea for another new product.	5	4	3	2	1
4. In enjoy the challenge of meeting new people and explaining what I do.	1	2	3	4	5
5. I get excited about thinking of a new idea for a product or service.	1	2	3	4	5
6. My career advice to young people is to pursue a well-established occupation with a high demand for newcomers to the field.	5	4	3	2	1
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 working hours.	1	2	3	4	5
10. The best job for me would be one that offers a stable salary, regular working hours and vacations, and a guaranteed pension.	5	4	3	2	1
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 commission.	5	4	3	2	1
13. I enjoy the challenge of selling my ideas and myself to people I have not met before.	1	2	3	4	5
14. I need at least eight hours of sleep and regular rest breaks during the day to perform well.	5	4	3	2	1
15. If I personally knew a family that had been a disaster victim, I would be willing to attempt to raise money for that family.	1	2	3	4	5
16. I enjoy purchasing lunch from a street vendor when the opportunity arises.	1	2	3	4	5
17. If you are not a scientist or an engineer it is useless to try to invent something that is intended for the marketplace.	5	4	3	2	1
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 new products in a company department located away from where most employees worked.	1	2	3	4	5
20. If I were self-employed or worked from home for an employer, I would probably start my workday at about 10 A.M.	5	4	3	2	1
	Total Score:_________________________________________

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.

   Proactive personality types may have a strong desire to become entrepreneurial leaders to create value for the firm. An assistant manager at a large restaurant, for example, might explore the possibilities of establishing a team-building component based on the preparation of gourmet meals. The program would be sold to organizations, as has been done successfully by a handful of elite restaurants.

4.  Tendency to act quickly when opportunity arises.  Entrepreneurs are noted for seizing upon opportunity, as part of their proactivity. When a deal is on the horizon, they push themselves and those around them extra hard. Entrepreneurs are always in a hurry. While engaged in one meeting, their minds typically begin to focus on the next meeting. Their flurry of activity rubs off on group members and those around them. Entrepreneurs often adopt a simple dress style in order to save time, and they typically allow little slack time between appointments.

5.  Visionary perspective combined with tenacity.  Entrepreneurs, at their best, are visionaries. As with other types of effective leaders, they see opportunities others fail to observe. Specifically, they have the ability to identify a problem and arrive at a solution. Ted Turner of CNN is a legendary example of an entrepreneurial visionary. Turner picked up on a trend that people wanted—an all-news cable channel that they could access anytime. Not only is CNN a commercial success, but it also revolutionized the way people get their news all over the globe. After the vision is established, the entrepreneur tenaciously implements the vision, working an eighty-hour week if need be.

   For many entrepreneurs, just growing their businesses requires tenacity. A relevant example is none other than Mark Zuckerberg, who in his early twenties became one of the best-known entrepreneurs of all time. During the Great Recession, he sank money and time into developing Facebook and grew its engineering ranks by 50 percent. 46

6.  Dislike of hierarchy and bureaucracy.  Entrepreneurs are not ideally suited by temperament to working within the mainstream of a bureaucracy. Many successful entrepreneurs are people who were frustrated by the constraints of a bureaucratic system. The implication for leadership style is that entrepreneurs deemphasize rules and regulations when managing people.

7.  Preference for dealing with external customers.  One reason that entrepreneurs have difficulty with bureaucracy is that they focus their energies on products, services, and customers, rather than on employees. Some entrepreneurs are gracious to customers and moneylenders but brusque with company insiders. A blind spot many entrepreneurs have is that they cannot understand why their employees do not share their passion for work and customer focus. As a result, they may be curt with employees who do not share their dedication to the firm.

8.  Eye on the future.  Entrepreneurs have the pronounced characteristic of thinking about future deals and business opportunities even before a current business is running smoothly. “Where is my next deal coming from?” is the mantra of the true entrepreneur. Even after accumulating great wealth from a current business activity, the entrepreneurial leader looks toward future opportunities. A good example is Richard Branson, whose empire contains about 250 companies with the Virgin label, yet he continues to look for the next company to start or acquire.

   A survey conducted by Ernest & Young and The Wall Street Journal found that the six top qualities of an entrepreneurial leader are vision, passion, drive, integrity, innovation, and risk-taker thereby supporting most of the points just presented. 47  A caution, however, is that the entrepreneurial personality carried to an extreme can lead to addictive behavior, including substance abuse.

   To practice one aspect of entrepreneurial leadership, do Leadership Skill-Building Exercise 4-4.

Gender Differences in Leadership Style

Controversy over whether men and women have different leadership styles continues. Several researchers and observers argue that women have certain acquired traits and behaviors that suit them for relations-oriented leadership. Consequently, women leaders frequently exhibit a cooperative, empowering style that includes nurturing team members. According to this same perspective, men are inclined toward a command-and-control, militaristic leadership style. Women find participative management more natural than do men because they appear to feel more comfortable interacting with people. Furthermore, it is argued that women's natural sensitivity to people gives them an edge over men in encouraging group members to participate in decision making. Here we look briefly at some of the evidence and reasoning whether gender differences exist in leadership style.

 LEADERSHIP SKILL-BUILDING EXERCISE 4-4

Entrepreneurial Leadership

An important part of the entrepreneurial role is convincing others of the merit of your idea so that they will invest in your company or lend you money. Two students play the role of a team of entrepreneurs who have a new product or service and want to launch a business. (The two entrepreneurs choose the product or service.) About five other students play the role of a group of venture capitalists or bankers listening to the presentation to decide whether to invest or lend money. The entrepreneurs will communicate excitement and commitment about their product, along with a good business plan. (You might want to quickly review the material about persuasive communication in  Chapter 12 .) The students who are not participating will evaluate how well the two entrepreneurs displayed aspects of the entrepreneurial leadership style.

   As many researchers use the term, gender refers to perceptions about the differences among males and females. An example would be to believe that women managers tend to be better listeners than their male peers. Gender differences refer to roles that men and women occupy. Sex differences, however, refer to actual (objective and quantitative) differences, such as the fact that the mean height of men exceeds that of women. Nevertheless, the terms gender and sex are still used interchangeably in general usage and to some extent in scholarly writings.

The Argument for Male–Female Differences in Leadership Style  Judy Rosener, a specialist in workplace gender issues, concluded that men and women do tend toward opposite styles. Based on self-reports, she found that men tended toward a command-and-control style. In contrast, women tended toward a transformational style, relying heavily on interpersonal skills. 48  As corporate managers, women tend to place greater emphasis on forming caring, nurturing relationships with employees. Women are also more likely than men to praise group members. And when an employee falls short of expectations, women are more likely to buffer criticism by finding something praiseworthy.

   Fundamental differences in the biological and psychological makeup of men and women have also been used as evidence that the two sexes are likely to manifest different leadership styles. Brain researchers Raquel Gur and Ruben Gur uncovered one such set of differences. They found that women may be far more sensitive to emotional cues and verbal nuances than men are. Women leaders would therefore be more suited to responding to the feelings of group members and understanding what they really mean by certain statements. 49

   Gender differences in communication also are reflected in leadership style. Above all, women are more likely than men to use spoken communication for building relationships and giving emotional support. 50 Men focus more on disseminating information and demonstrating competence. Women are therefore more likely to choose a relationship-oriented leadership style.

   An experiment was conducted with working adults by administering questionnaires about how men and women exhibit certain aspects of transformational leadership, and which aspects they should emphasize to get promoted. Conforming to stereotypes about gender differences, it was found that women display more transformational behavior and give rewards more based on merit. It was also believed that women engage in fewer management-by-exception (only intervening when a problem exists) and laissez-faire behaviors than do men. In terms of getting promoted, inspirational motivation was perceived as more important for men than women, especially to be promoted to CEO. In contrast, individualized consideration (responding to the needs of individuals) was perceived as more important for women than men, and especially important for promotion to CEO. 51

Placing Gender Differences in Leadership Style in Perspective  To what extent the stereotypes of men and women leaders are true is difficult to judge. Even if male and female differences in leadership style do exist, they must be placed in proper perspective. Both men and women leaders differ among themselves in leadership style. Plenty of male leaders are relationship oriented, and plenty of women practice command and control (the extreme task orientation). Many women believe that women managers can be more hostile and vindictive than men managers.

   Perhaps the best approach to leadership takes advantage of the positive traits of both men and women. To compete in the global marketplace, companies need a diverse leadership team including men and women. Not recognizing that both male and female styles are needed can lead to confusion for women managers.

Selecting the Best Leadership Style

An underlying theme of our discussion of leadership styles in this and the next chapter is that there is no one best or most effective leadership style. A study of 3,000 executives revealed that leaders who get the best results do not rely on one style. Instead, they use several different styles in one week, such as being autocratic in some situations and democratic in others. 52  Another consideration is the national culture in which the leadership takes place. An effective leadership style for most German workers would be a high performance (task) orientation and a modest amount of compassion (consideration). 53  However, Scandinavian workers respond best to a democratic leadership style.

   The organizational culture also influences which leadership style will be tolerated and effective. A friendly, collaborative culture calls for more of a consensus style of leadership. In contrast, in a perform-or-perish culture, a more directive or autocratic leadership style will be effective.

   At several places in this book, we will mention the leader–member exchange (LMX) theory. A key point of the theory is that the leader establishes different quality relationships with each group member. 54  Part of establishing a high-quality relationship would be for the leader to vary his or her style to meet the needs of each subordinate. For example, Randy might need more guidance, and Suzanne might want to work more independently.

   Over forty years ago, pioneering researcher Ralph Stogdill made a statement about selecting a leadership style that still holds today: “The most effective leaders appear to exhibit a degree of versatility and flexibility that enables them to adapt their behavior to the changing and contradictory demands made on them.” 55  A recent suggestion urges leaders to follow a similar path of changing with the times, and customize a culture that is specific to each company, and the personality of its work force. 56

   Before moving on to the end-of-chapter activities, do Leadership Skill- Building Exercise 4-5 that deals with flexibility and adaptability.

 LEADERSHIP SKILL-BUILDING EXERCISE 4-5

Contrasting Leadership Styles

One student plays the role of a new associate working for a financial services firm that sells life insurance and other investments. The associate has completed a sixweek training program and is now working full time. Four weeks have passed, and the associate still has not made a sale. The associate's boss is going to meet this associate today to discuss progress. Another student plays the role of a task-oriented leader. The two people participate in the review session.

   Before playing (or assuming) the role of the associate or the boss, think for a few minutes how you would behave if you were placed in that role in real life. Empathize with the frustrated associate or the taskoriented leader. A good role player is both a scriptwriter and an actor.

   Another two students repeat the same scenario, except that this time the manager is a strong relationship-oriented leader. Two more pairs of students then have their turn at acting out the task-oriented and relationship-oriented performance reviews. Another variation of this role play is for one person to play the roles of both the task-oriented and the relationship-oriented boss. Other class members observe and provide feedback on the effectiveness of the two styles of leadership.

 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, skills, and attitudes, as emphasized in the classic Ohio State University studies. Two major dimensions of leadership behavior were identified: consideration and initiating structure. Consideration is the degree to which the leader creates an environment of emotional support, warmth, friendliness, and trust. Making connections with people is a current aspect of consideration. Initiating structure is the degree to which the leader organizes and defines relationships in the group by such activities as assigning tasks and specifying procedures. Both consideration and initiating structure are related to important leadership outcomes such as job satisfaction and performance.

   Many task-related attitudes and behaviors of effective leaders have been identified. Among them are (1) adaptability to the situation, (2) direction setting, (3) high performance standards, (4) concentrating on strengths of group members, (5) risk taking and execution of plans, (6) hands-on guidance and feedback, (7) ability to ask tough questions, and (8) organizing for collaboration.

   Many relationship-oriented attitudes and behaviors of leaders have also been identified. Among them are (1) aligning people, (2) openness to workers' opinions, (3) creating inspiration and visibility, (4) satisfying higher-level needs, (5) giving emotional support and encouragement, (6) promoting principles and values, and (7) being a servant leader.

   Servant leaders are committed to serving others rather than achieving their own goals. Aspects of servant leadership include placing service before selfinterest, listening to others, inspiring trust by being trustworthy, focusing on what is feasible to accomplish, lending a hand, and emotional healing.

   Many leaders receive extensive feedback on their behaviors and attitudes in the form of 360-degree feedback, whereby people who work for or with the leader provide feedback on the leader's performance. Such feedback is likely to be useful when the feedback relates to business goals and strategy and to important aspects of leadership, when training is provided in giving and receiving feedback, when action plans are developed, and when managers own the feedback evaluation. The anonymous comments in 360-degree feedback can be a problem.

   Understanding leadership style is an extension of understanding leadership attitudes and behavior. Participative leaders share decision making with group members. The participative style can be subdivided into consultative, consensus, and democratic leadership. The participative style is well suited to managing competent people who are eager to assume responsibility. Yet the process can be time-consuming, and some managers perceive it to be a threat to their power. Autocratic leaders retain most of the authority for themselves. The Leadership Grid™ classifies leaders according to their concern for both production (task accomplishment) and people.

   Another important style of leader is the entrepreneur. The entrepreneurial style stems from the leader's personal characteristics and the circumstances of self-employment. It includes a strong achievement drive and sensible risk taking; a high degree of enthusiasm (including passion) and creativity; a typical pattern of being proactive; the tendency to act quickly on opportunities; hurriedness and impatience; a visionary perspective; a dislike of hierarchy and bureaucracy; a preference for dealing with external customers; and an eye on the future.

   Male–female differences in leadership style have been observed. Women have a tendency toward relationship-oriented leadership, whereas men tend toward command and control. Perhaps the best approach to leadership takes advantage of the positive traits of both men and women.

   Rather than searching for the one best style of leadership, managers are advised to diagnose the situation and then choose an appropriate leadership style to match. To be effective, a leader must be able to adapt style to circumstance.

KEY TERMS

effective leader  109

consideration  110

initiating structure  110

Pygmalion effect  113

tough question  115

management openness  117

servant leader  120

360-degree feedback  121

leadership style  124

participative leaders  125

consultative leaders  125

consensus leaders  125

democratic leaders  125

autocratic leaders  126

Leadership Grid™  129

 GUIDELINES FOR ACTION AND SKILL DEVELOPMENT

A major consideration about choosing a leadership style is that you may have to modify your style to fit the occasion. For example, your group members may need close direction at one point, and at other times they may require less direction (as explained in several of the leadership theories presented in this chapter).

   Most leadership-style classifications are based on the directive (task-oriented) dimension versus the nondirective (relationship-oriented) dimension. In deciding which of these two styles is best, consider the following questions:

· 1. What is the structure of your organization and the nature of your work? You might decide, for example, that stricter control is necessary for some types of work, such as dealing with proprietary information.

· 2. Which style suits you best? Your personality, values, and beliefs influence how readily you can turn over responsibility to others.

· 3. Which style suits your boss and the organization culture? For example, a boss who is highly directive may perceive you as weak if you are too nondirective. In a tough-minded, perform-or-perish culture, you might want to use a highly directive leadership style.

· 4. Is there high potential for conflict in the work unit? A directive leadership style can trigger conflict with independent, strongwilled people. A more nondirective style allows for more freedom of discussion, which defuses conflict. 57

   It is probably better for you to lead in the style you consider to be the most effective rather than be concerned with a gender stereotype dictating the style you should be using. For example, many male leaders are the most effective when being conciliatory and supportive. And many female leaders prefer to be more task-oriented in their leadership and are less concerned with building cordial relationships and being supportive.

Discussion Questions and Activities

· 1. Give an example of a high-consideration behavior that a supervisor of yours showed on your behalf. What was your reaction to his or her behavior?

· 2. Why is direction setting still an important leadership behavior in an era of empowerment and shared leadership?

· 3. How might a manager use e-mail and text messaging to help carry out both task-oriented and relationship-oriented behaviors?

· 4. Why do so many CEOs say they want entrepreneurial style leaders in their company even though the company is essentially a large bureaucracy?

· 5. Why would being a highly narcissistic person interfere with being an effective servant leader?

· 6. Visualize yourself in a leadership position in a field of interest to you. How would you feel about being described as a hands-on leader by the members of your team?

· 7. How would you characterize the leadership style of your favorite executive, athletic coach, or television character who plays a boss?

· 8. Why is shared or participative leadership likely to be effective with well-educated and intelligent team members?

· 9. Which, if any, style differences have you noticed between men and women leaders?

· 10. Several people have commented that this chapter deals with the “nuts and bolts of leadership.” What makes them say that?

LEADERSHIP CASE PROBLEM A

Frank Won't Accept “We Can't” for an Answer

Frank is the business development manager at a small firm that provides business process improvement solutions to federal, state, and local governments. His firm's organization structure includes four project managers who are both managers of projects and also solicit for new business. Up until last year, the company had enough contracts to be profitable. This year, a few big government contracts have expired and have not yet been renewed. As a result, the company could lose money and perhaps be forced to lay off one-third of the staff.

   Frank is particularly worried. He calls a meeting with his four project managers to discuss the need for more sales. A couple of minutes into the meeting, Frank informs his four direct reports, “The time for excuses is over. We need at least $1 million worth of new contracts to stay afloat. I haven't heard about even a warm lead for a new contract from any of you in about a year. We need new business, and we need it now.”

   Project manager Jennifer responded: “Frank, I hear you. The other project managers hear you. But government spending has tightened up. It's not possible to squeeze a contract out of a government agency if they don't have money in the budget.”

   Oliver, another project manager, responded, “Frank, I have to agree with Jenny. There is no way to coax a contract out of a government agency when the well is dry. You know as well as we do that government funding is way down for everything but national defense. Help us by pointing us in a new direction for obtaining contracts. Do you have any contacts in private industry that we might pursue?”

   Shaking his head in discouragement, Frank said: “I've heard enough excuses. I know you are trying, but get out there and try harder. I don't care which one of you pulls it off, but I want one new pending contract for my approval within six months.

   “I will do what I can to find new business for the firm also. But I am not here to do your job. Get back to me when you have made some progress.”

Questions

· 1. Based on the limited evidence, how would you characterize Frank's leadership style?

· 2. What leadership behaviors and attitudes is Frank displaying?

· 3. How else might Frank approach his project managers about developing new business?

ASSOCIATED ROLE PLAY

One student plays the role of Frank who wants to use an effective leadership approach to encourage his project managers/account managers to bring in a few new accounts. He knows that this is a tough leadership task. Four other students play the roles of the project manager who will react to Frank's leadership initiatives. Class members providing feedback should be particularly observant of Frank's leadership approach.

LEADERSHIP CASE PROBLEM B

Tricia and Her Facebook Friends and Twitter Followers

Tricia is the human resources team leader in the regional headquarters of an international bank. She has five direct reports plus considerable individual responsibility for carrying out various human resource initiatives. About six months ago, Tricia started thinking about how she could improve her leadership effectiveness with her team of human resource professionals, plus one support person. As she reflected on feedback she had received from their boss, the vice president of administration, Tricia thought that perhaps she was a little too business-like and task oriented. The insight came to her that perhaps she should become Facebook friends and have Twitter exchanges with her staff of five.

   Tricia's first step was to invite each staff member to become a Facebook friend and also follow each group member on Twitter. (All five direct reports already had Facebook and Twitter accounts.) Tricia began her social media initiative by writing about strictly work-related topics, with posts such as the following:

· • “I feel good about the response we are getting to our proposed wellness program.”

· • “Did you catch how the regional VP of administration said in her monthly intranet post that our team was doing a great job?”

· • “Our new group interview program seems to be working. Most of our new hires are turning in above-average performance, and turnover among them is below average.”

   After a couple of months of these business-like posts on Facebook and Twitter, Tricia did not observe that she and the group were developing a better personal relationship. Consequently, she decided to send posts that were more personal, including the following:

· • “How about you and I spending a little quality time at the shopping mall this weekend?”

· • “My two-year old nephew is having a birthday party October 10 at noon. You are warmly invited. Let me know ASAP.”

· • “I thought that taupe and beige combination you wore to the office today was stunning. The way you dress picks up morale.”

· • “My boyfriend was angry with me last night because he said I don't like his parents.”

· • “Don't let the fact that I'm the team leader interfere with us being friends.”

   Tricia did receive a few positive responses from her posts, but a few responses to her posts suggested the team members were not comfortable receiving the personal messages. One tweet response was simply “????.”

Questions

· 1. What would you advise Tricia to do about future posts of a personal nature to the team?

· 2. Which one or two relationship-oriented behaviors does Tricia appear to be exaggerating?

· 3. If your team leader sent you a post about his or her team leadership role and your potential friendship, how would you respond?

ASSOCIATED ROLE PLAY

One student plays the role of Tricia who happens to meet Ken, the benefits specialist, in the company cafeteria. Another student plays the role of Ken who wants to preserve a good working relationship with Tricia, but he thinks her social media posts to him have become unprofessional. Class members who provide feedback will be particularly observant of (a) how receptive Tricia is to the feedback from Ken, and (b) how diplomatic Ken is in expressing his concerns.

 LEADERSHIP SKILL-BUILDING EXERCISE 4-6

My Leadership Portfolio

For this addition to your leadership portfolio, identify four leadership task-oriented behaviors or relationship-oriented behaviors that you have demonstrated this week. Your list can comprise any combination of the two sets of behaviors. Also jot down the result you achieved by exercising these behaviors. Here is an example:

   “Thursday night, I applied direction setting and it really worked. We have a group assignment in our marketing class with each group consisting of about five people. Our assignment is to analyze how well employee self-service is working in supermarkets and home-improvement stores. The group was hitting a wall because in their Internet searches they were finding mostly advertisements for Home Depot and the like. I suggested that we each visit a supermarket or home-improvement store and make firsthand observations of the customers who were using the automated checkout system. I also suggested we ask a couple of questions of the store associate supervising the activity. The group loved my idea, and the project was a big success. We supplemented written articles with a firsthand field study. I set the group in the right direction.”