A Contemporary View of Leadership

CONTEMPORARY LEADERSHIP

Bertrand F. 0

Abstract Leadership and the numerous concepts on leadership styles have been subjects of both study and debate for years. Every leader approaches challenges differently, and his or her personality traits and life experiences greatly influence his or her leadership style and the organizations they lead. Furthermore, leadership is a notion resulting from the interaction between a leader and followers, and not a position or title within the organization. This essay examines some of the contemporary theories of leadership, the leadership qualities and traits necessary to be successful in today’s competitive environment, the impact of leadership to the organization, and the importance of moral leadership in today’s world. Keywords: Leadership, Leadership Traits, Moral Leadership, Leadership Theory

CONTEMPORARY LEADERSHIP

Bertrand F. 1 A Contemporary View of Leadership

Leadership and the numerous concepts on leadership styles have been subjects of both study and debate for years. Leadership practitioners around the globe believe there is nothing more important to organizational success than leadership (Daft, 2008). Similar to the notion of beauty, leadership is a concept that is difficult to describe accurately; yet we are all capable of assigning the concept of beauty to objects and situations based on our interpretations (Danby, 2008). Leadership is a complex phenomenon that involves leaders, followers, and situations within the organization (Hughes, Ginnet, & Curphy, 2009). Some research on the subject of leadership has focused on the personality, physical traits, or selected behaviors of the leader. Other scholars have focused on the relationship between leaders and followers; while other researchers have studied the aspects of how different situations affect the way leaders act and followers react (Hughes, Ginnet, & Curphy, 2009). Although the focus of research on leadership varies among scholars; understanding how some individuals stand separate from the rest and have the ability of knowing what to do, when to do it, and how to do it, remains a vibrant scholarly quest to this day (Useem, 2010). Research on leadership has also focused on finding out if the individuals who have managed to become leaders are indeed smarter, more creative, more ambitious, or more outgoing than their less successful counterparts. Nonetheless, the theoretical foundations of leadership have substantially changed since the Great Man Theory, the earliest theory of leadership, emerged in the 1900s. The Great Man Theory maintained that leaders and followers were fundamentally different, and this original concept led to hundreds of research studies and the subsequent leadership theories that exist nowadays (Hughes, Ginnet, & Curphy, 2009). There is little research however on understanding the behavior of the subordinates, based on the

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perception that followers operate within the leader’s context (Kellerman, 2007). As a result, leadership practitioners have given much focus to understand what makes leaders successful; including the charismatic ones, the retiring ones, and even the crooked ones. Successful leaders usually share a number of common skills. But, many individuals have encountered leaders throughout many spheres of their lives without finding any of them sharing all the same attributes (Bell & Smith, 2010). Several approaches to understanding leadership use descriptions of different leadership traits and behaviors trying to prove that leaders can perhaps be able to adopt the most appropriate behavior if they are properly trained (Daft, 2008). Every leader approaches challenges differently, and his or her personality traits and life experiences greatly influence his or her leadership style (Bell & Smith, 2010). Walter Isaacson, the author of Steve Jobs’ best-selling biography, identified some of the unorthodox leadership practices that Steve Jobs utilized when conducting business (Isaacson, 2012). His accounts of Steve Jobs’ rebellious and countercultural approach to leadership illustrates how there is not a particular mixture of leadership skills that can guarantee the success of an individual in an organization. As the demands of the world economy change, organizations have to remain highly adaptive to changes in their external environment to ensure long-term competitiveness. Additionally, as management and organizational behavior practices evolve, the way in which leaders decide to influence the future of their companies and their employees also changes. Recent literature suggests that contemporary leaders are switching to a new approach of leadership, in which they find fulfillment by allowing those on the team accomplish their needs. Consequently, researchers are considering the strategic value of leadership ethics for greater economic efficiency (Becker, 2007). The remaining sections of this essay will examine

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Bertrand F. 3

some of the contemporary theories of leadership, the leadership qualities and traits necessary to be successful in today’s competitive environment, the impact of leadership to the organization, and the importance of moral leadership in today’s world. Leadership Theories Leadership is a notion resulting from the interaction between a leader and followers, and not a position or title within the organization (Hughes, Ginnett, & Curphy, 2009). By looking at leadership in this manner, leadership practitioners can see leadership as a process in which all members of a group or organization perform different roles. Still, there are many other theories of leadership that allow looking into this phenomenon from different perspectives, providing also insight into the different characteristics of leaders and how they behave. Researchers have also started to consider a theoretical link between practical wisdom, derived from lived situations, and authenticity in leadership practice (Kupers & Statler, 2008). This explains why many leaders are capable of contextualizing their experiences to manage organizational events very effectively. The following ten modern leadership theories illustrate the wide range of leadership theory and provides a framework to understand the new approaches to leadership that are examined in the latter section of this article. The Trait Theory Under this theory, there are certain individuals that have the physical, emotional, and personality traits that make them more likely, or predisposed, to be leaders (Rubenstein, 2005). This theory holds the notion that some individuals are born with the necessary traits to become leaders. This theory identifies physiological (appearance, height, and weight), personality, selfconfidence, intellective, task-related, and social characteristics with the effectiveness of an individual as a leader (Rubenstein, 2005). Additionally, given that under this theory traits are

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relatively stable over time, the innate capabilities for leadership remain with the individual throughout his or her life. The Style Approach Under this theory of leadership, the behavior adopted in a specific circumstance determines the leadership approach. The style approach focuses on the behavior of the leader; addressing what they do and how they act in any given situation (Rubenstein, 2005). The typical leadership activity styles include Authority-Compliance, Team Management, Impoverish Management, and Country Club Management (Rubenstein, 2005). This theory focuses on the behavior that leaders follow in different situations, with the notion that leaders can choose to respond with these specific styles of management. The Situational Approach Under this theory, individuals in leadership positions are capable of reading into situations to decide if they need to use supportive or directive behaviors (Rubenstein, 2005). Some of the behaviors that leaders can select are supporting, coaching, and directing. This theory supports the idea that leaders adapt their leadership behaviors based on the situation and their leadership role (Rubenstein, 2005). Effective leaders can act as a coach to an underperforming team-member, while they can also offer clear and decisive direction to a group or business unit struggling to define objectives. The Contingency Theory Under this theory, leaders select a particular leadership style based on three types of leadership situations: the relationship between members and the leader, the structure of the tasks, and the leader’s position of power in relation to the group (Rubenstein, 2005). This theory focuses on the impact that the successful use of a certain style of leadership has on each

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situation. Effective leadership demands reflection on the dynamic relationships between the leader and the followers when aiming towards a future outcome (Ahn, Ettner, & Loupin, 2011). Path Goal Theory Considered the motivational theory of leadership; this theory is based in the assumption that leaders’ major goals are to provide satisfaction and stimulate performance among the members of a group (Rubenstein, 2005). Some of the behaviors leaders follow under this theory include setting goals and ensuring subordinate buy-in; allocation of resources and training; monitoring of all activities while providing strategic outlook, and the establishment of new goals and continuous process improvement. Leader-Member Exchange Theory Under this theory, followers determine the status of a leader and his or her responsibilities. Followers not only share power within the group, but their ability also influences the effectiveness of the leader to exert authority and lead (Rubenstein, 2005). Leaders under this theory have characteristics that allow them to effectively meet goals through teams as they pay attention to group norms, juggle managerial duties, and manage market demands efficiently (Rooke & Torbert, 2009). Transformational Leadership Under this theory, researchers perceive leadership as a process that transforms individuals and groups. Under this theory, the role of leaders is to assess the needs of their followers and ask for input from the group throughout all stages of the relationship (Rubenstein, 2005). Leaders are agents of change and can promote transformation and improvement for the benefit of the organization and the followers as whole. This theory allows leadership practitioners to see

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leadership as a process that initiates with the self and projects outwards to influence other individuals and organizations towards improvement (Sen, 2010). Team Leadership Under this theory, leaders help the group or team determine which goals and tasks they want to achieve while also enabling processes that keep the group supplied with appropriate resources, adequate development and training, and work supplies. Leaders also diagnose and remedy group deficiencies, while coordinating the internal functioning of the group in relation to other groups within the organization (Rubenstein, 2005). Psychodynamic Approach Under this theory, leaders understand the psychological makeup of their followers as well as their own. According to this theory, leaders should be able to understand the impact of psychological factors such as family origin, level of maturity, and personal desires on the followers’ attitude and responses to leadership actions. Leaders must also understand the psychological relationship and psychodynamic interplay that exists between them and their followers (Rubenstein, 2005). This theory deals with emotional intelligence and the attempt to create feelings of safety on followers. When followers feel unsafe they create walls around them and withhold their talents, instead of using them for the greater good of the team or organization (Sen, 2010). By understanding the psychological relationship they have with their followers, leaders can guide them in ways that are more effective. Leaders of Leaders This theory centers in making a distinction between regular leaders and those leaders who lead other individuals with leadership characteristics. Leaders of leaders are visionary individuals who create a vision that guides other leaders to act as leaders within their respective

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environments. Leaders of leaders, help their followers to solve their own problems while making decisions that are sound and in alignment with the overall vision of the organization (Rubenstein, 2005). The types of leaders under this theory act much more differently when creating and communicating a vision to others. A great example of these types of leaders was Arthur Houghton Jr., CEO of Corning Glass. Houghton was trying to announce the world that he did not want his company to be perceived as a specialized art glass company but instead as an industrial producer of common cookware and glass-based manufacturing materials. In order to do so, he grabbed a lead pipe and smashed more than $100,000 worth of fine crystal in front of cameras, reporters, and company stockholders (Bell & Smith, 2010). He was a leader of leaders, and he communicated his message loud and clear. Leadership Traits Different backgrounds heavily influence leaders as they often shape their values, norms, and attitudes. Cultural, economic, and social backgrounds play an important role in shaping the personalities of individuals and their corresponding actions and behaviors (Hughes, Ginnett, & Curphy, 2009). The term personality can be interpreted in two different ways (Hughes, Ginnett, & Curphy, 2009). The first one relates to social reputation or the impression individuals make on others. The second one relates to the behavioral processes occurring inside individuals that affect how they behave and what they do (Hughes, Ginnett, & Curphy, 2009). Although individuals may select either one or both of the aforementioned meanings to understand leadership, personality traits have a significant impact in the effectiveness of leaders. For instance, dominance is the tendency by some individuals to be assertive, self-aware, and forceful when dealing with face-to-face situations (Anderson & Kilduff, 2009). Moreover, there are certain combinations of leadership traits that, based on a particular situation, prove to

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be more effective than other combinations. The importance of leadership traits and tendencies comes from the idea that leaders can be self-aware and can use personality information to create strong work relationships and build organizational success. Jack Welch, the former chairman of General Electric, believed that leaders needed specific skills through which they could translate their vision into reality (Becker, 2007). AS a result, and notwithstanding his approach to management was drastic and unforgiving, he managed to make General Electric one of the most successful companies known to this day. Understanding their own personality traits can allow individuals decide if they fit best as team members or as team leaders depending on the situation (Bell & Smith, 2010). It is important for followers to be able to determine which role to assume when becoming part of a team or an organization, but it is also important and highly beneficial to understand the traits and behaviors of the leaders they follow. Correspondingly, it is important for leaders to be able to discern the personality traits of other group members because they often assume leadership roles. Leaders can enhance the culture of the organization more effectively by knowing the leadership styles of their followers and counterparts. The number of trait-like terms can be an issue when trying to describe cross-situational behavioral patterns through personality traits. As early as 1936, researchers identified over 18,000 trait-related adjectives in the English language (Hughes, Ginnett, & Curphy, 2009). Nonetheless, due to robust research findings, evidence supports the Five Factor Model of personality. The Five Factor Model of personality provides researchers and leadership practitioners with an explanation for both leaders’ and follower’s tendencies to act in a consistent way over time. The five major dimensions include surgency, agreeableness, dependability, adjustment, and intelectance. Surgency, also referred to as dominance, refers to behavioral

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patterns that appear when someone is trying to influence or control others (Hughes, Ginnett, & Curphy, 2009). Agreeableness, also known as interpersonal sensitivity, explains how individuals get along with, instead of getting ahead of, other members in a team or an organization. Leaders with high agreeableness tend to build better teams but can also struggle getting results from followers (Hughes, Ginnett, & Curphy, 2009). Dependability, also referred to as conscientiousness or prudence, deals with people’s behavior towards work. Leaders with high level of dependability are great managers, because they are planful, organized, and goal oriented (Hughes, Ginnett, & Curphy, 2009). The adjustment dimension, also referred to as emotional stability, deals with how individuals respond to failure, personal criticism, or stress. Leaders who remain calm under pressure affect their followers positively, as followers often tend to mimic their leader’s behavior under periods of high stress (Hughes, Ginnett, & Curphy, 2009). Finally, openness to experience, also referred to as intelectance, deals with how individuals learn new information, react to new experiences, and react to problems. Leaders that are dominant in this dimension tend to be curious, broad-minded, and more strategic (Hughes, Ginnett, & Curphy, 2009). The qualities of good leadership transcend geographical barriers and are similar in many successful leaders across the globe. A great example is N. R. Narayana Murthy, the founder of Infosys, and renowned business leader in India. Murthy founded Infosys with other six colleagues in 1981 with only $250, and the company is now a global leader in consulting, technology, and outsourcing, with revenues of roughly $6.9MM (www.infosys.com). When discussing the vision of the organization with the founding members, Murthy’s goal was to aim at becoming India’s most respected company (Morris, 2011). Murthy’s goal of aiming to be a respected company preceded all the other financial and operational goals that the other founding

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members established. As a result, Infosys thrived and became a powerful organization in an era where conducting ethical business was practically unheard of in India. The Organizational Impact of Leadership Modern organizations have an interdependent network of functions and employees; where some employees have autonomy and can be free to exploit their skills with soft ties to management systems and hierarchy, and where the rest of employees have direct lines to supervisions (Daft, 2008). Whether by inspirational approaches in times of crisis, or simple charismatic leadership to inspire necessary change, leadership is the spark that can ignite the fire of sustainable change in any organization. Pat McGovern, CEO of International Data Group, a technology publishing and research firm that owns magazines such as Computerworld, and PC World, takes every employee to lunch at the Ritz on his or her tenth anniversary (Daft, 2008). He requests a list of accomplishments, provided by managers, and memorizes them so that he can congratulate employees when celebrating their anniversary (Daft, 2010). There is not a specific way to correlate the success of International Data Group to McGovern’s approach to leadership, but the motivation and sense of belonging that is derived by his employees can be seen in the quality of the products that company delivers. Nonetheless, measuring the organizational impact of effective leadership is not a simple task. Some commonly used measures include employees’ self-ratings of their job satisfaction and morale, work-unit performance indices, and superiors’ ratings of their employees’ morale (Hughes, Ginnett, & Curphy, 2009). Employees’ ratings have the advantage of having a large pool of raters, but one of their biggest disadvantages is that unmotivated employees’ biases can skew the results of the survey (Hughes, Ginnett, & Curphy, 2009). Work-unit performances indices are quantifiable ways to measure leadership results, but the disadvantage of such methods

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is the possibility that the results are due to factors beyond the leader’s control (Hughes, Ginnett, & Curphy, 2009). Lastly, superiors’ ratings are one of the most frequently used methods, but this approach is subject to the rater’s biases or their inability to provide rough feedback (Hughes, Ginnett, & Curphy, 2009). The organizational results of effective leadership are often organizations with thriving cultures and sustainable performance. After rescuing Apple from innovation inertia in 1997, Steve Jobs began taking his top 100 employees on a retreat each year. At the end of the retreat, he would ask them for new products or ideas to implement the next year (Isaacson, 2012). After crossing off the ones the whole group considered insignificant, he would narrow the ideas to the top ten, and finally announced to his team that the company could only focus on the top three (Isaacson, 2012). Focus was an idea ingrained in Jobs’ leadership style and Apple became an enduring organization because of this approach to business development. There are countless accounts of leaders who changed the course of their organizations; Steve Jobs’ is merely one of them. Effective leadership has a significant impact on the make-up of an organization, but most importantly, leadership can shape the company’s culture is such way that the approach leaders take can become the cornerstone of the ongoing success for any organization. Leadership and Ethics The current world economy requires leaders who behave ethically and foster organizational cultures in which employees are encouraged to behave ethically in their daily work (Stouten, Dijke, & De Cremer, 2012). Moral leadership refers to an individual’s ability to distinguish right from wrong and choosing to do right within the concept of business management (Daft, 2008). Moral leaders are those that manage to conduct business remembering that the success of an organization is also dependent on values, not only on

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financial performance. A report issued by the European Commission found that ethics are the best predictor of trust in leaders, accounting for 62 percent of what followers value as important when defining a successful leader (Stouten, Dijke, & De Cremer, 2012). The perception that followers have about their leader’s ethical behavior determines how a leader’s moral values are measured (Daft, 2008). Although ethical leadership has a more direct impact on the ability of the leader to influence organizational members, there is also financial negative impact experienced by the company when or if a leader decides to behave unethically. The concept of moral leadership is more relevant in contemporary organizations as management teams are no longer only interested in employees who are easy to manage, but instead, they are highly interested on individuals that can distinguish themselves by the use of ethical values in their daily work (Becker, 2007). Value-based organizations are the new approach in business, and companies strive to have cultures in which all employees share the company’s core values (Stouten, Dijke, & De Cremer, 2012). Moral leadership deals with values ranging from behaviors with legal repercussions to simple values such as treating coworkers and subordinates right. Ralph Larsen, retired CEO of Johnson & Johnson, stated that one of the major qualities he looked for in potential employees was their ability to show respect for human dignity (Becker, 2007). He considered someone who treated a subordinate badly a bad person, advocating respect not only among employees but also among business leaders. Moral leadership is more than a simple technique for financial efficiency. It requires a clear value commitment, moral character, and moral common sense (Becker, 2007). Examples of morally committed companies range from manufactures like Levi Strauss to the consulting and technology companies such as Infosys. Levi Strauss’ leaders offered departing employees generous notice and severance packages, including money for education, job training, and

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moving expenses when the company had to close 51 plants in the 1990s (Becker, 2007). Similarly, the leaders of Infosys showed their moral commitment to become a respected company in India when they refused to bribe a government official when trying to import a super minicomputer into their country. Instead, they decided to pay for a custom duty of 135 percent its regular value with borrowed money and appealed for a refund after (Morris, 2011). The result for both companies’ ethical leadership and moral approach to business has been a financial performance that is not only ethically committed, but it is also respected by customers and competitors alike. Conclusion The organizational members of today’s world expect a degree of predictability from the leaders they follow and they expect to see qualities, such as vision and ethical integrity, that reassure their leaders’ effectiveness (Griffin, Parker, & Mason, 2010). The quality and nature of leaders in today’s world is more important than ever before; especially in environments in which the proficiency of individuals in leadership positions is judged by more than just the financial performance of the organizations they lead (Griffin, Parker, & Mason, 2010). Unavoidably, the success of leaders requires the support of all the organizational members that follow them and work with them as counterparts. Leaders must understand the importance of managing their emotions, select the best leadership strategy based on the situation, but most importantly, they must realize the importance of understanding the emotions, personalities, and expectations of the ones they lead. As the demand and understanding of leadership evolves, leadership practitioners must continue to focus on the fundamental basis of leadership; that is, accomplishing organizational success by effectively influencing those around them.

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