What IsWhat IsLeadership?Leadership?

Daniel F. Jennings PhD, PEDaniel F. Jennings PhD, PEAndrew Rader Professor of Industrial DistributionAndrew Rader Professor of Industrial Distribution

Texas A&M University, College Station, TXTexas A&M University, College Station, TX

IDIS - 444IDIS - 444

Spring 2012Spring 2012

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What is Leadership?What is Leadership?

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A Leadership Story:A Leadership Story:A group of workers and their leaders have the task of clearing a road A group of workers and their leaders have the task of clearing a road through a dense jungle on a remote island to get to the coast where an through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port.estuary provides a perfect site for a port.

The leaders organize the work force into efficient units and monitor the The leaders organize the work force into efficient units and monitor the progress which is excellent. The leaders continue to monitor and evaluate progress which is excellent. The leaders continue to monitor and evaluate the project, making adjustments along the way to ensure the progress is the project, making adjustments along the way to ensure the progress is maintained and efficiency is increased wherever possible.maintained and efficiency is increased wherever possible.

Then, one day during all the hustle and bustle and activity, one person Then, one day during all the hustle and bustle and activity, one person climbs up a nearby tree. That person surveys the scene from the top of climbs up a nearby tree. That person surveys the scene from the top of the tree.the tree.

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A Leadership Story:A Leadership Story:

•And shouts down to the assembled group below…..And shouts down to the assembled group below…..

•““Wrong Way!”…….Wrong Way!”…….

•(Story adapted from Stephen Covey (2004) “The Seven Habits of Highly Effective People” Simon & Schuster).

•““Management is doing things right, leadership is Management is doing things right, leadership is doing the right things”doing the right things” (Warren Bennis and Peter Drucker)

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PlanningSelect goals and

ways to obtain them

ControllingMonitor activities and

Make corrections

OrganizingAssign authority and

responsibilityfor task accomplishment

DirectingMotivate and coordinate

employees

StaffingRecruit and obtain

employees

THE TRADITIONAL FUNCTIONS OF MANAGEMENTTHE TRADITIONAL FUNCTIONS OF MANAGEMENT

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CategoryCategory RoleRole ActivityActivity

InformationalInformational Monitor Seek and receive information, scan periodicals and reports, maintain personal contacts.

Disseminator Forward information to other organization members; send memos and reports; make phone calls.

Spokesperson Transmit information to outsiders through speeches, reports, memos.

InterpersonalInterpersonal Figurehead Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents.

Leader Direct and motivate subordinates; train, counsel, and communicate with subordinates

Liaison Maintain information links both inside and outside organization; use mail, phone calls, meetings.

DecisionalDecisional Entrepreneur Initiate improvement projects; identify new ideas; delegate idea responsibility to others

DisturbanceHandler

Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crises.

Resource allocator

Decide who gets resources; schedule, budget, set priorities

Negotiator Represent department during negotiation of union contracts, sales purchases, budgets; represent departmental interests.

Manager RolesManager Roles

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TraitTrait

TransformationalTransformational

TransactionalTransactional

BehavioralBehavioral

ContingencyContingency

LeadershipLeadership

Leadership PerspectivesLeadership Perspectives

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Trait PerspectivesTrait Perspectives

Is there a set of characteristics that determines a Is there a set of characteristics that determines a good leader?good leader?

Earlier ConceptsEarlier Concepts - Height - Confidence - Physical Stamina

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Transformational LeadershipTransformational Leadership

Starts with a vision, passion and energyStarts with a vision, passion and energy

People will follow a person who inspires themPeople will follow a person who inspires them

Leading by example – walk the walk Leading by example – walk the walk

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Transactional LeadershipTransactional Leadership

An exchange between the leader and follower based An exchange between the leader and follower based on efforton effort

- Rewards- Rewards- Sanctions- Sanctions

Focus on current issues and problemsFocus on current issues and problems

Popular with many managersPopular with many managers

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Behavior Leadership PerspectiveBehavior Leadership Perspective

Identify successes and failures of leadersIdentify successes and failures of leaders

Adopt the successesAdopt the successes

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Contingency Leadership PerspectiveContingency Leadership Perspective

Leadership is not a fixed set of characteristics that can be Leadership is not a fixed set of characteristics that can be transposed into different contextstransposed into different contexts

Ability to lead is contingent upon:Ability to lead is contingent upon:

- Situational factors- Situational factors - Leader’s style- Leader’s style - Capabilities and behaviors of followers- Capabilities and behaviors of followers

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Leadership StylesLeadership Styles

AutocraticAutocratic

ParticipativeParticipative

Laissez Faire (Laissez Faire (Hands offHands off))

PaternalisticPaternalistic

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AutocraticAutocratic

Leader makes decisions without reference to anyone elseLeader makes decisions without reference to anyone else

High degree of dependency on the leaderHigh degree of dependency on the leader

Can create de-motivation and alienation of staffCan create de-motivation and alienation of staff

May be valuable in some types of business where decisions May be valuable in some types of business where decisions need to be made quickly and decisivelyneed to be made quickly and decisively

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ParticipativeParticipative

Encourages decision making from different Encourages decision making from different perspectives - leadership may be emphasized perspectives - leadership may be emphasized throughout the organizationthroughout the organization

- - Consultative Consultative : : process of consultation before decisions are takenprocess of consultation before decisions are taken

- - PersuasivePersuasive : : Leader makes decision and seeks to persuade others Leader makes decision and seeks to persuade others

that the decision is correctthat the decision is correct

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ParticipativeParticipativeMay help motivation and involvementMay help motivation and involvement

Employees feel ownership of the business and its ideasEmployees feel ownership of the business and its ideas

Improves the sharing of ideas and experiences within Improves the sharing of ideas and experiences within the business the business

Can delay decision makingCan delay decision making

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Laissez – Faire Laissez – Faire (Hands off)(Hands off)

‘‘Let it be’ – the leadership responsibilities are shared by all;Let it be’ – the leadership responsibilities are shared by all;Can be very useful for a business where creative ideas are Can be very useful for a business where creative ideas are important;important;Can be highly motivational, as people have control over Can be highly motivational, as people have control over their working life;their working life;Coordination and decision making can be time-consuming Coordination and decision making can be time-consuming and may lack an overall direction; and may lack an overall direction; Relies on good team workRelies on good team workRelies on good interpersonal relationsRelies on good interpersonal relations

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PaternalisticPaternalisticLeader acts as a Leader acts as a ‘‘father figurefather figure’’

Paternalistic leader makes decision but may consult Paternalistic leader makes decision but may consult with followerswith followers

Believes in the need to support followersBelieves in the need to support followers

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Leadership In The Real WorldLeadership In The Real World

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The Balance of LeadershipThe Balance of Leadership

EmployeesEmployees

Other Other Stakeholders

Stakeholders

ProfitabilityProfitability

LeadershipLeadership

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Some Basic “Truths” About the Nature Some Basic “Truths” About the Nature of Leadershipof Leadership

You You Manage things; you things; you lead people people

Having a “Position of leadership” does not mean you are Having a “Position of leadership” does not mean you are the leader.the leader.

You are not really the leader until the group you are You are not really the leader until the group you are leading says so leading says so ( until they accept you as the leader).

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LeadershipLeadershipThe Art of Influencing Others To Work The Art of Influencing Others To Work

Enthusiastically, Effectively, And Ethically Enthusiastically, Effectively, And Ethically Toward Goals Identified As Being For The Toward Goals Identified As Being For The

Common Good.Common Good.

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““Work Enthusiastically”Work Enthusiastically”

People can do everything they are required to by the People can do everything they are required to by the rules, and your organization will, at best, be mediocre.rules, and your organization will, at best, be mediocre.

People must work with enthusiasm. They must have People must work with enthusiasm. They must have their heart in it.their heart in it.

You cannot buy enthusiasm, you cannot buy loyalty, You cannot buy enthusiasm, you cannot buy loyalty, you cannot buy devotion of hearts, minds and souls. you cannot buy devotion of hearts, minds and souls. These must be earned.These must be earned.

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““Goals Identified As Being For Goals Identified As Being For The Common Good”The Common Good”

This means the leader has:This means the leader has: - - Thought through the organization’s goalsThought through the organization’s goals - - Talked with others about these goalsTalked with others about these goals - - Achieved buy-inAchieved buy-in

This requires a lot more effort than just telling others what This requires a lot more effort than just telling others what to doto do

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How does a leader build How does a leader build influence?influence?

By meeting people’s legitimate needsBy meeting people’s legitimate needs

Through service and sacrificeThrough service and sacrifice

By developing trustBy developing trust

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Leaders identify and meet their Leaders identify and meet their followers legitimate needsfollowers legitimate needs

A want is simply a wish or desire without any regard A want is simply a wish or desire without any regard for the physical or psychological consequences.for the physical or psychological consequences.

A need is a legitimate physical or psychological A need is a legitimate physical or psychological requirement for the well-being of a human being.requirement for the well-being of a human being.

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Service And SacrificeService And Sacrifice

Leadership requires a great deal of effort.Leadership requires a great deal of effort.

Leaders must decide whether they are willing to Leaders must decide whether they are willing to extend themselves for those they lead.extend themselves for those they lead.

Leaders will be called upon to “sacrifice”Leaders will be called upon to “sacrifice”- Their time- Their time

- Physical & mental energy- Physical & mental energy - Ego- Ego - Bad mood days- Bad mood days

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What People Expect From What People Expect From Their LeadersTheir Leaders

HonestyHonestyTo feel appreciated and respectedTo feel appreciated and respectedCompetenceCompetenceForward-lookingForward-lookingInspiringInspiringTo feel they are accomplishing something worthwhileTo feel they are accomplishing something worthwhileTo understand the contribution they are makingTo understand the contribution they are makingTo feel they are “in” on thingsTo feel they are “in” on thingsPatiencePatience

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What People Expect From Their What People Expect From Their Leaders (cont.)Leaders (cont.)

EncouragementEncouragement

HopeHope

To believe their leader understands their personal To believe their leader understands their personal situation and challengessituation and challenges

To be forgiven when they make mistakesTo be forgiven when they make mistakes

Standards and boundariesStandards and boundaries

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Trust….Trust….Trust…Trust… - Is the glue that holds relationships together- Is the glue that holds relationships together - Is not the result of an organizational imperative - Is not the result of an organizational imperative or programor program - Comes…. From being trustworthy- Comes…. From being trustworthy

Acting inconsistent with our words creates Acting inconsistent with our words creates mistrustmistrust

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They are all volunteers!They are all volunteers!

““You can buy a person’s time. You can even buy their You can buy a person’s time. You can even buy their physical place, but you cannot buy enthusiasm, you physical place, but you cannot buy enthusiasm, you cannot buy loyalty, you cannot buy devotion of hearts, cannot buy loyalty, you cannot buy devotion of hearts, minds or souls. You must earn these.”minds or souls. You must earn these.”

- Charles Francis- Charles Francis

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A Key Role Of LeadershipA Key Role Of Leadership

Leaders create and sustain the Leaders create and sustain the environment in which followers spend most environment in which followers spend most of their waking hoursof their waking hours

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The Keys To Establishing A The Keys To Establishing A Solid EnvironmentSolid Environment

ValuesValues

PurposePurpose

VisionVision

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About Organizational About Organizational ValuesValues

The question is not whether an organization is value-The question is not whether an organization is value-based…..based…..

Every organization is value-based.Every organization is value-based.

The question is: What are the real values and are The question is: What are the real values and are these values the ones that will ensure the organization these values the ones that will ensure the organization prospers in the long run?prospers in the long run?

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An Organization’s ValuesAn Organization’s Values

Define what we believe to be importantDefine what we believe to be important

Shape the environment we live and work inShape the environment we live and work in

Guide our work and our relationships with one Guide our work and our relationships with one anotheranother

Become “the real boss.”Become “the real boss.”

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Aligning Values and Aligning Values and BehaviorBehavior

From slogans and wall charts…….to the heartFrom slogans and wall charts…….to the heart

Providing example – The leader must become the Providing example – The leader must become the living symbol of their organization’s values.living symbol of their organization’s values.

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The Importance Of The Importance Of Organizational ValuesOrganizational Values

““Without a set of operating values that are clearly Without a set of operating values that are clearly defined and enforceddefined and enforced(people are expected to behave (people are expected to behave according to them) according to them) you’re at the mercy of people’s you’re at the mercy of people’s good intentions.”good intentions.”

(Blanchard)(Blanchard)

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Effective Leaders Focus On Effective Leaders Focus On PurposePurpose

Key Question:Key Question: - why does our organization exist?- why does our organization exist? - what business are we in?- what business are we in? - Is everything we are doing contributing - Is everything we are doing contributing

to mission accomplishing our purpose? to mission accomplishing our purpose?

Staying FocusedStaying Focused

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Effective Leaders Provide Effective Leaders Provide VisionVision

“… “… a picture of the future that the leader paints for those a picture of the future that the leader paints for those who follow.”who follow.”

“… “… a picture of how things would be if everything were a picture of how things would be if everything were running as planned.”running as planned.”(Blanchard)(Blanchard)

““Providing people an opportunity to be a part of something Providing people an opportunity to be a part of something bigger than themselves and to make a contribution.”bigger than themselves and to make a contribution.”

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Effective Leaders Build TeamsEffective Leaders Build Teams

A team is:A team is:

- A group of people bound together by a - A group of people bound together by a commitment to reach a shared goal commitment to reach a shared goal

- “…. A small group of people with complementary - “…. A small group of people with complementary skills who are committed to a common purpose, skills who are committed to a common purpose, performance goals, and approach for which performance goals, and approach for which

they they hold themselves and each other accountable.” hold themselves and each other accountable.” (Harvard Business School)(Harvard Business School)

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Effective Leaders Build TeamsEffective Leaders Build Teams

The purpose of a team is to make the The purpose of a team is to make the strengths of each person effective, and his/her strengths of each person effective, and his/her weakness irrelevant.weakness irrelevant.

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Effective Leaders Build TeamsEffective Leaders Build Teams

Leaders build teams by:Leaders build teams by:

- Doing and saying things every day that convince - Doing and saying things every day that convince their followers to that they are part of the team their followers to that they are part of the team

- Convincing team members that their well-being is - Convincing team members that their well-being is tied to the team’s well-being tied to the team’s well-being

- Respecting teams and keeping them together.- Respecting teams and keeping them together.

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Effective Leaders Focus On Effective Leaders Focus On Contribution….Contribution….

What can I do that, if done really well, will make What can I do that, if done really well, will make a difference in the organization?a difference in the organization?

What good shall I do this day?”What good shall I do this day?”

What good have I done this day?”What good have I done this day?”

Ben FranklinBen Franklin

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Reflect On Each ExperienceReflect On Each Experience

What’s Happening?What’s Happening?

What’s not happening?What’s not happening?

What do I want to be happening?What do I want to be happening?

How can I make this happen?How can I make this happen?

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Questions?.....Questions?.....

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ThanksThanksDaniel F.Jennings PhD., PEDaniel F.Jennings PhD., PE

Andrew Rader Professor of Industrial DistributionAndrew Rader Professor of Industrial Distribution

E-Mail : E-Mail : djennings@tamu.edu Phone: 979-845-4972Phone: 979-845-4972