1. UPPER ECHELON VIEW: STRATEGIC LEADERSHIP
CHAPTER NINE
UPPER ECHELON VIEW: STRATEGIC LEADERSHIP

2. Learning Objectives Differentiate between micro and
upper-echelon leadership.
2. Describe the domain and roles of strategic leaders in the management of an organization.
3. Identify the external and internal factors that impact strategic leaders’ discretion.
4. List the individual characteristics of strategic leaders and their impact on their style.

3. Learning Objectives (cont’d)
Contrast the four strategic leadership types and discuss the role of culture and gender in strategic leadership.
Explain the processes through which strategic leaders manage their organization.
Review issues of executive compensation and accountability.

4. Strategic Forces ORGANIZATIONS Strategy Culture Technology Structure
Environment
Leadership
ORGANIZATIONS

5. Differences Between Lower Level and Upper Echelon Leaders
Who the leader is
Scope of responsibility
Focus
Effectiveness criteria

6. Dual Role Of Upper Echelon Leaders
Moderating
Factors
Leadership
Characteristics
Strategy
Formulation
Implementation
Performance

7. External Moderators Of Executive Discretion
Environmental uncertainty
Type of industry
Market growth
Legal constraints

8. Internal Moderators Of Executive Discretion
Stability
Size and structure
Organizational culture
Stage of organizational growth
Presence, power, and makeup of TMT

9. Themes In Upper Echelon Style
Challenge Seeking
Risk taking
Openness to change
Willingness to innovate
Future orientation
Need for Control
Delegation
Centralization
Uniformity of practices
Focus on process

10. Strategic Leadership Dimensions
High
challenge-
seeking
Low
CHALLENGE-
SEEKING
HIGH-CONTROL
INNOVATOR (HCI)
Challenge-seeker who
maintains tight control
over organization
PARTICIPATIVE
INNOVATOR (PI)
Challenge-seeker who
delegates control
of organization
STATUS QUO
GUARDIAN (SQG)
Challenge-averse who
maintains tight control
over organization
PROCESS
MANAGER (PM)
Challenge-averse who
delegates control
of organization
NEED FOR CONTROL
High control Low control

11. Processes Leaders Use To Impact Their Organization
Environment
Direct decisions
Allocation of resources
Reward system
Selection of other leaders
Promotions
Role-modeling
Strategy
Culture
LEADER
Structure
Leadership
Technology

12. Organizational culture Selection of other leaders
Direct Decisions
Vision
Mission
Strategy
Structure
Organizational culture
Selection of other leaders

13. Allocation of Resources and Reward System
Decisions regarding funding and budgets
Allocation of resources to support goals
Formal rewards, such as salary and bonuses
Informal rewards such as recognition
Promotion of other leaders and managers

14. Setting the Norms and Role Modeling
Setting decision criteria and rules by which others make decisions
Active or subtle role modeling of behaviors and styles

15. Responsibility Of Upper Echelon Leaders
Organizational performance
Accountability to various internal and external constituents
Ethical behavior and role-modeling

16. Factors that Affect Executive Salaries
Firm size
Industry competition
C.E.O. power and discretion
Internationalization
High stress and instability

17. Leading Change: Sari Baldauf of Nokia
Extensive experience in the industry
Recognizes need for flexibility and change
Focus on using teams
Partnerships with universities

18. Leadership In Action: Fernando Capellàn
President of largest private employer in Dominican Republic
Focus on employees and community first and profit second
Extensive programs to educate and support employees and their families
Participation from employees

19. The Leadership Challenge
C.E.O. involvement in nomination of board members helps assure that members with the right skills and expertise are selected
Those nominated by C.E.O. may have a conflict of interest and a positive bias towards the C.E.O.
Creation of a balance of members nominated by different stakeholders is essential