Leadership paper - Frank Lowly.doc

Leadership paper -Frank Lowly
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Executive Summary

Leadership plays an integral role in the modern organizations. In the
absence of effective leadership, a business cannot work efficiently. The
organization is built with an intent of achieving set objective through the
human capital. It is important to control and offer direction to the
workforce in order to achieve the set goals. The intent of this paper is to
examine the leadership of Frank Lowy who is the Chairman of Westfield Group
and other organizations. The papers examine his leadership style, traits
and suggest better leadership to be utilized. Accordingly, the prosperity
of Lowy can be attributed to his business-mindedness and entrepreneurship
as well a strong character that many credits to his Jewish background. He
seems to follow Leader-Member Exchange (LMX) Theory of offering more
rewards to highly talented workers who offer superior results. Furthermore,
his portrays transactional leadership styles that can hinder creativity. To
improve his leadership, Frank should apply transformation style that is
inspiring, motivation, visionary and mores the organisation and followers
ahead.

Frank Lowy

Frank Lowy is a heavy-weight in the business world. He is an
Australian-Israeli businessman who is ranked highly by BRW Rich ratings
(Margo, Lowy & Westfield Holdings 2000). Accordingly to 2010 ratings, he
was ranked as the richest man in Australia. His wealth runs into billions,
and by 2011, the business magnate fortune indicated that his richness was
more than $1.75 billion (Mayne & Power, 2013). In 2016, Frank`s assessed
net worth was A$8.26 billion (Bonanno, 2016). Thus, was ranked third in
Australia for richness. Frank was born in 1930 in the Czech Republic, but
he has made a business impact across, Australia, the United Kingdom, New
Zealand and the United States based on the phenomenal shopping centers. In
1959, Lowy opened his first mall in Blacktown which is located in Sydney
with John Saunders, a business partner. Saunders was a Hungarian immigrant
who met with Lowy in 1953 (Bonanno, 2016). Together, they established
Westfield Group, and by the year 1977, the two had expanded their business
operations into the United States market. They were listed on the Stock
Exchange of Australian in 2004. Accordingly, the prosperity of Lowy can be
attributed to his business-mindedness and entrepreneurship as well a strong
character that many credits to his Jewish background (Margo, Lowy &
Westfield Holdings 2000).

Frank Lowy and Leadership

Leadership involves offering direction, motivating people and
implementing plans that ensure the organizational accomplishes the set
goals. Various leadership styles have been proposed by various pundits.
Luna (2015) argues that the leader`s intellectual ability assists in
conceptualizing solutions and acquiring knowledge to a given job. The
leaders influence the success of their organization. As mention above,
there are several leadership styles including Authoritarian, democratic,
laissez-faire, transactional leaders, transformational and charismatic
leadership. The authoritarian leaders stress on the division of the
followers and leaders. The autocratic leaders usually make a decision
without seeking information or views from the members even when their
opinions or inputs can be very beneficial (Hughes, 2015). This leadership
is appropriate when decision ought to be made rapidly with no need for
agreement. Nonetheless, the style is known to be demoralizing. The
democratic leaders may make the final decisions, but they involve the
people around them in the decision-making process. Democrats encourage
creativity and individuals are highly engaged in the decisions and work
(Voon et al., 2011). The Laissez-faire leaders offer significant freedom to
the followers. The members determine how the work will be done and the
deadlines. For the leaders, they offer resources and support where
required. Otherwise, their involvement is minimal. Another form of
leadership style involves transformational leadership. These leaders are
characterized by high emotional intelligence and integrity. The
transformational leaders motivate individual by building a shared vision of
the organization`s future. They communicate effectively and show empathy
and humility with care for others.
Another form of leadership involves bureaucratic leader who follows
robust and rigorous rules to make sure individuals follow procedures
(Limsila & Ogunlana, 2008). This leadership is only effective when managing
people working in areas that have safety risks (like dangerous heights,
machinery, and toxic substances). Bureaucracy is useful for managing a
workforce that undertakes routine tasks (Voon et al., 2011). Also,
Charismatic leadership is commonly applied today in many organization.
Limsila and Ogunlana (2008) argue that charismatic leadership is similar to
transformational leadership since it attempts to inspire and motivate the
members. Nonetheless, the variation lies in the intent of inspiration and
motivation. The transformational leaders desire to transform the
organization and teams but the charisma focus on their own ambitions. They
do not want to change anything at the end. Finally, we examine
transactional leadership which is based on the assumption that members will
obey their leaders after accepting the job (Voon et al., 2011, p.24-32).
Transaction entails the company paying the employees in return for the
time, efforts, work done and compliance. The leaders can push team members
if they believe their work is not meeting the appropriate standards.
A deep examination Frank Lowy shows that he follows Leader-Member
Exchange (LMX) Theory. LMX model is based on leaders who focus on two-way
relationship between the followers and the leader (Hughes, 2015). The
leaders usually develop an exchange with their subordinate. The quality of
the leader-follower exchange determines the subordinates' access to
resources, responsibility, and decision. Frank Lowy seems to select the
best members and makes offers or rewards that they cannot resist. The
leader`s action is not similar to all members. Those who are highly
talented and deliver superior results are more respected and high ranking
in the organisation. The relation to the followers is transactional based
and to some extent leader. As a transactional leader, he focuses on the
results the organization will obtain and conforms to the existing
organizational as well as measures the success of the organization
(Pieterse et al., 2010, p.616). On the other hand, Lowy demonstrates
transformational leadership through his ability to grow his sons to take
over the leadership of the Westfield Group after he took a back seat as the
chairman while they raise to be the executives of the company. He shares
with them the vision and nurtures them to be the future leaders of the
organization. Back to transactional leadership, Frank has had formal
authority and a big position in the organization since it was founded. He
was the Executive Chairman of the organization for a long time.
Transactional leadership focuses on maintaining a routine of a company by
managing the individual performance while facilitating group performance.
As an owner of a football club and Westfield Group, he believes that things
need to be done in a specific way and above other organizations.
Transactional also called managerial leadership concentrates on organizing
working, supervision, and performance (Emery & Barker, 2007, p.77). Unlike
the transformational leadership, transactional leaders do not want to
change the future of the people they are governing. They only want the best
for the organization and themselves. He applied a model that pays attention
to the followers to establish whether they are deviating from the norms or
any errors are occurring.
The transactional leaders set goals, focus on increasing efficiency
and establish standards that help the workers meet goals. Pieterse et al.
(2010) note that Lowy has articulated the goals of the Westfield Group even
if he has left his sons in charge. Thus, he has articulated what the
organization expects from the workforce and how they will be compensated or
rewarded in case their meet their goals. The organization offers feedback
regarding the performance. In the football club where Frank is one of the
owners, they focus on increasing the efficiency and making more money. This
is similar to transactional leaders who establish procedures and routines
with a focus on achieving efficiency. They are concerned with employees
following the existing regulations. As a rich entrepreneur, Lowy does not
want employees who will make him lose money. Workers who make him more
money and are highly creative are rewarded handsomely. As such, the
organization employees rewards and punishment in pushing its agendas.
Emery and Barker (2007) indicate that transactional leadership in the
context of Maslow`s hierarchy of needs theory of motivation works at the
basic levels of satisfaction whereby the leaders concentrate on the lower
level of needs. The leaders employ the exchange model whereby the rewards
are offered for a positive outcome or good works. This leadership calls for
punishment for poor work performance or negative results until they correct
the poor performance. One approach utilized by the transactional leader to
concentrate on the lower level of needs includes stressing particular task
performance. The transactional leadership is effective in ensuring specific
projects are accomplished by managing every portion of the project
individually. Spinelli (2006) asserts that transactional leadership is
concerned with the organizational process but not forward thinking. Frank
is seen to offer contingent rewards (contingent positive reinforcement)
including praising workers for work well-done or accomplishing ahead of
time a given projects.
Spinelli (2006) examines the advantages and disadvantages of
transactional leadership. One benefit of transactional leadership is that
it can help an organization accomplish short-term objectives rapidly. The
style rewards individuals who are motivated to achieve set goals and follow
instruction. Therefore, it reinforces positive behavior. Accordingly, it
offers an unambiguous organizational structure for companies that undertake
repetitive or routine work thus a reproducible workplace (Emery & Barker,
2007). The organization clearly defines the rewards and penalties for the
workforce in case a given outcome is achieved. This is the case at
Westfield Group where workers are offered yearly bonuses for meeting
specific objectives. Nonetheless, transactional leadership is not very
motivating since it considers the low level of needs. The style utilizes
perks, bonuses, and money in rewards the workers while neglecting other
important issues of motivation including work environment and non-monetary
rewards (Spinelli, 2006). The leadership limits creative since clear goals
or objectives have been set. Furthermore, they do not reward personal
initiative. Transactional leadership is best suited for multinational
organizations such as Westfield Group where employees speak different
languages (Emery & Barker, 2007). Once the requirements are learned by the
employees and the structure is put in place, it is very easy for the
workers to accomplish their responsibility effectively. The transactional
training is easy to learn and apply across the organization.

Leadership traits of Frank Lowy

One of the outstanding leadership qualities of Lowy involves being a
visionary. Since he was young, he had a vision of establishing a big
company and becoming an outstanding entrepreneur. In establishing Westfield
Group, Frank clearly sets the objectives and provides direction to the
followers (Hughes, 2015). He sees what can be and works toward it to
achieve his dream. He turns his ideas into reality. Frank is a decisive
leader who knows hard decisions must be made to ensure the organization
withstands trying times. He knows that he cannot impress every person, but
he is also aware that decision must be made (Nahavandi, 2016). While he
seeks opinions from the workers, he understands that it is important to
avoid sideshows. Confidence runs through the blood of Lowy Frank. Since he
was born, he does not seem to fear people around him. He takes his family
and hides them when his father does not return home. He helps his mother
and brother cross the borders and move away from the war-stricken country
where Nazis want to kill every person (Hughes, 2015). His confidence is
further seen in the way he develops his business. Thus, he instills
confidence in his followers that he can beat his competitors and become one
of the best companies even in the world.
To some extent, Frank is an inspirational leader who motivates and
nurture people around him. He nurtures his sons on leadership and allows
them to grow with role and responsibility to take up the company`s
leadership after he steps down (Germain, 2012). Frank understands the
importance of delegation. Since he is aging, he decided to take a back seat
in business by stepping down as Westfield`s executive chairman. However, he
keeps a keen eye on his businesses. Peter and Steven who are his sons have
taken up the role of being the Chief Executives and Lowy is just a
Chairman. He assesses the people who can take up after him and trains them
then gives them the responsibility of being the executive. This allows Lowy
to focus his energy elsewhere while the young and energetic sons take
leadership in the organization.
Frank has a strong passion. This is seen in the way he crosses
boundaries to ensure he finds the best place to do business (Northouse,
2012). He loves what he does and more especially his business. No matter
how much Westfield Group becomes successfully, Lowy wants to make it even
better by seeking for ways of expanding his business. He is never satisfied
by small success but rather relentlessly pushes to achieve even bigger
returns (Nahavandi, 2016). It also takes patience to be in the position
where Lowy has reached. The path to his success was not easy. He is bold in
taking steps against the order. He truly believes that one day he will be a
big person even if other people doubt his capability at first. His shows
open-mindedness as a get visionary with superior flexibility and
innovation.
Frank has excessively determined. Frank`s early years saw him undergo
a tough life. As a young man, he moved around often Gonski & Niesche,
2016). When war broke out in Europe and his father wanted to rescue them,
he was killed by the Nazis. Lowy and his siblings remain in hiding and live
in a ghetto where they fight for survival. Frank never gives up. This
becomes part of the reasons why Lowy is determined in live after arriving
in Australia with no possessions and did not understand the English
language. He is also loving and compassionate Gonski & Niesche, 2016). He
gives back to the society through philanthropy. Lowly was appointed as the
Companion of the Australian Order in the year 2000 for his excellent
services of retail expansion in the Australia and his involvement in
cultural and social programs. In 2002, Frank was named as the Australia`s
number one philanthropist. Furthermore, in 2008 Lowly was commemorated on
the postage stamp alongside other Philanthropists from Australia.

Improving the leadership

The majority of the leadership skills depicted by Frank are
transactional based. He expects the followers to be compliant through the
use of rewards or punishments. Therefore, the leader does not intend to
change the followers or improve the future. Lowy aims at eliciting the
desired behavior by using through external motivation. The relationships
between the workers at Westfield Group and the management is transactional
based. Since transactional leadership does not intend to transform workers,
they tend to be highly resistant. The style discourages independent
thinking and innovativeness of the workforces. This is because the
independent thoughts or risky actions are avoided or frowned upon by the
leaders. Thus, there is constraint thinking making people be comfortable
where they are. I suggest the use of a different approach or style of
leadership that will make Westfield Group at a better place.
While Frank demonstrates some form of transformational leadership, it
is not enough. All his leadership should be based on transformational
approach. As mentioned earlier, transformational involves the process
whereby the leaders and the followers will raise one another higher in
motivation and morality (Bass & Riggio, 2006). It involves a model of clear
goals, encouraging workers, ensuring integrity, providing support and
recognition, inspiring the workers to reach the impracticable, and leaders
looking beyond self-interest. Lowy should be a transformer who creates an
inspiring leader for the future of Westfield Group and motivates the entire
organization towards buying into the vision and delivering it. He vision
should not be narrow and based only on making profit. However, Frank should
consider the needs of other people in the organization. It is important to
also build strong and trustworthy relationships with the workforce
(Gumusluoglu & Ilsev, 2009). As a leader, Frank should identify what
motivates people and whom to improve performance. Workers should have a
sense of identity but not be utilized as tools for achieving the strategic
goals of the organization (Hughes, 2015). The culture of the organization
should stress on the importance of collective identity but not just make
money for the family of Lowy Frank.

Conclusion

Leadership in the modern organizations is a vital function of
management that aids the organization to maximize her efficiency and
accomplish the set organizational objectives. It determines the level of
motivation of the workforce and their productivity. The growth of Frank
Lowy to be one of the richest entrepreneurs can be attributed to his
experience, leadership styles, traits, and attitude. He seems to know how
to ensure that the workers achieve the set goals. He commonly utilizes
transactional based leadership that rewards people for behaving in a
certain manner. Furthermore, he seems to understand the significance of
transformational leadership but does not apply the style effectively.
Transactional based leadership limits the workers and can be demotivating.
I propose the use of transformational leadership in Westfield Group by Lowy
to inspire, transform, motivate and create a better future for the
organization.

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