LEADERSHIP

Leadership The process of inspiring and empowering others to voluntarily commit themselves to achieving the leader’s vision A dynamic relationship based on mutual influence and common purpose between leaders and collaborators in which both are moved to higher levels of motivation as they affect intended change It is about how you get people to do the jobs you want them to do. People follow you for reasons. Leadership is about how and what reasons you give them for following you. Think about the Mann Gulch disaster: at the very critical moment of their lives, why didn’t the firefighters follow their team leader’s order? Think about three dot com companies: why do employees work while there is no control system is in place? Think about Lincoln Electric employees: why do they want to go to work early? On holiday? Part of the answer lies in the leadership style/ skills/ philosophies of these companies managers. Test of the leadership: Do people listen to you at a critical moment?

Leadership is NOT… A high position A super person It is a function A super person It is a process for all people Fixed for all activities People can rotate taking leadership in different activities

Concerns of the Leaders In the short run: Performance (do things right) Ethical behaviors (do the right things) In the long run: Competitive advantage Human resource development “Anybody can manage short. Anybody can manage long. Balancing those two things is what management is.” [Jack Welch] Efficiency: do things right: short time/ less cost. Basically managers. Leaders need to concern about ethical issues as well. Think about Nike case: Nike did not violate VN law. VN employees and government did not say anything. Compared to other VN companies, working condition is not worse. Competitors are doing the same thing. So why improve working condition? That’s is ethical issue/ that when people look at their leader and see. Think about the Toy industry we talked about some weeks ago. Electronic toys inhibit their creativity, but kids like it because it is fun. Should the companies make it? Why worry about kids’ imagination and creativity? For longer term: competitive advantage, not only short-tern cost. Some of you gave me your worse bosses: care about wasting beer in the restaurant/ giving away too much free pizza but forget that they may lose customers. Leaders do not only worry about company’s performance. Not only about how best to exploit HR but also about how to develop it. Leader need to have broader/longer perspective. If not, they are just a controller.

Management and leadership Role of Leader - Develop vision - Assemble people - Encourage, support Role of Manager: - Make plans, budget - Develop, implement - Control, supervise

Management and Leadership - “Do the right procedures” Achieve the goal through a system of policies, administration orders Leadership - “Do the right things” Achieve the goal through encouragement and support

Exercise: Leadership vs. Management Tasks

Leadership Qualities Vision TRUST Commitment Relationship Competence Future perspect of org. Road map to get there Vision TRUST Commitment Connections Support Energy Personal sacrify Relationship Competence Knowledge Skills

Rather, teach them to yearn for the far and endless sea.” Vision “If you want to build a ship, then don’t drum up men to gather wood, give orders, and divide the work. Rather, teach them to yearn for the far and endless sea.” Antoine de Saint-Exupery (b. June 1900 - d. July 1944) DAY 1 Directing-Governing+Vision 9

Sources of Power Legitimate: authority/position Reward : tangible or intangible reward Coercive: Punishment Expert: Knowledge/skills Referent: Respect/admiration/loyalty Which ones tend to lead to intrinsic motivation? What power comes into play most in: Nike case? (coercive), in three dot com case? (expert and referent/ reward), in Lincoln Electric? (reward).

Two-Factor Approach to Leadership High Permissive Professional Concern for People Corporate Relationship oriented: main concern is to develop high quality interpersonal relationship with your people. Performance will follow. Task-oriented: main concern is to get the best performance from your people. Relationship only comes if it is relevant to the performance. If you are low at both, you have a lot to work on to improve your leadership skills If you are low on any one of these two, that is the area you need to work on. Highly effective leader have high score in both area. Undefined Autocratic Low Low High Concern for Production

Jack Welch Is Jack Welch production- or people-oriented? What leadership qualities do you see in Jack Welch?