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contrast, leaders may either be appointed or emerge from within a group. Leaders can influence others to perform beyond the actions dictated by formal authority.

Should all managers be leaders? Conversely, should all leaders be managers? Because no one yet has been able to demonstrate through research or logical argument that leadership ability is a handicap to a manager, we can state that all managers should ideally be leaders. However, not all leaders necessarily have capabilities in other managerial functions, and thus not all should hold managerial positions." The fact that an individual can influence others does not mean that he or she can also plan, organize, and control. Given (if only ideally) that ail managers should be leaders, we can pursue the subject from a managerial perspective. Therefore, by leaders we mean those who are able to influence others and who possess managerial authority.

Trait Theories of Leadership

Ask the average person on the street what comes to mind when he or she thinks of leadership. You're likely to get a list of qualities such as intelligence, charisma, decisiveness, enthusiasm, strength, bravery, integrity, and self-confidence. These responses represent, in essence, trait theories of leadership. The search for traits or characteristics that differentiate leaders from nonleaders, though done in a more sophisticated manner than our on-the-street survey, dominated the early research efforts in the study of leadership.

Is it possible to isolate one or more traits in individuals who are generally acknowledged to be leaders — for instance. Herb Kelleher, Cheong Choong Kong, Governor Whitman of New Jersey, Nelson Mandela, or Katherine Graham — that nonleaders do not possess? We may agree that these individuals meet our definition of a leader, but they have utterly different characteristics. If the concept of traits were to prove valid, all leaders would have to possess specific characteristics.

Research efforts at isolating these traits resulted in a number of dead ends. Attempts failed to identify a set of traits that would always differentiate leaders from followers and effective leaders from ineffective leaders. Perhaps it was a bit optimistic to believe that a set of consistent and unique personality traits could apply across the board to all effective leaders, whether they were in charge of the Carolina Panthers Football Team, Nortel, Cedars-Sinai Hospital, Volvo, Bombardier, United Way, or Outback Steakhouse.

However, attempts to identify traits consistently associated with leadership have been more successful. Six traits on which leaders are seen to differ from nonleaders include drive, the desire to lead, honesty and integrity self-confidence, intelligence, and job-relevant knowledge.

Yet traits alone do not sufficiently explain leadership.

leaders

People who are able to influence others and who possess managerial authority

trait theories of leadership

Theories that isolate characteristics that differentiate leaders from nonleaders

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Explanations based solely on traits ignore situational factors. Possessing the appropriate traits only makes it more likely that an individual will be an effective leader. He or she still has to take the right actions. And what is right in one situation is not necessarily right for a different situation. So, although there has been some resurgent interest in traits during the past decade, a major movement away from trait theories began as early as the 1940s. Leadership research from the late 1940s through the mid1960s emphasized the preferred behavioral styles that leaders demonstrated.

Behavioral theories of Leadership

The inability to explain leadership solely from traits led			behavioral			theories
researchers to look at the behavior of specific leaders.			of leadership
Researchers wondered whether there was something unique in			Theories		that		isolate
the behavior of effective leaders. For example, do leaders tend to			behaviors				that
be more democratic than autocratic?			differentiate			effective
It was hoped that the behavioral theories of leadership			leaders				from
approach would not only provide more definitive answers about			ineffective leaders
the nature of leadership but, if successful, also have practical
implications quite different from those of the trait approach. If
trait research had been successful, it would have provided a			autocratic			style		of
basis for selecting the right people to assume formal positions in			leadership
organizations requiring leadership. In contrast, if behavioral			The	term		used		to
studies were to turn up critical behavioral determinants of			describe a leader who
leadership, we could train people to be leaders. That's precisely			centralizes			authority,
the premise behind the management development programs at,			dictates				work
for example, Sun Microsystems, the U.S. Postal System, Ernst			methods,				makes
and Young, Sonoco, and Sears'.			unilateral			decisions,
A number of studies looked at behavioral styles. We shall briefly			and	limits		employee
review three of the most popular studies: Kurt Lewin's studies at			participation
the University of Iowa, the Ohio State group, and the University
of Michigan studies. Then we shall see how the concepts that
those studies developed could be used to create a grid for
appraising leadership styles.
ARE THERE IDENTIFIABLE LEADERSHIP			democratic			style		of
BEHAVIORS?			leadership
One of the first studies of leadership behavior was done by			The	term		used		to
Kurt Lewin and his associates at the University of Iowa, in their			describe a leader who
studies, the researchers explored three leadership behaviors or			involves employees in
styles: autocratic, democratic, and laissez-faire. An autocratic			decision				making,
style is that of a leader who typically tends to centralize			delegates			authority
authority, dictate work methods, make unilateral decisions, and			encourages
limit employee participation. A leader with a democratic style			participation					in
tends to involve employees in decision making, delegates			deciding				work
authority, encourages participation in deciding work methods			methods		and		goals,
and goals, and uses feedback as an opportunity to coach			and	uses	feedback			to
employees. The democratic style can be further classified in two			coach employees

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ways: consultative and participative. A democratic-consultative leader seeks input and hears the concerns and issues of employees but makes the final decision himor herself. In this capacity, the democratic-consultative leader is using the input as an information-seeking exercise. A democratic-participative leader often allows employees to have a say in what's decided. Here, decisions are made by the group, with the leader providing one input to that group. Finally, the laissez-faire leader generally gives his or her employees complete freedom to make decisions and to complete their work in whatever way they see fit. A laissez-faire leader might simply provide necessary materials and answer questions.

Lewin and his associates wondered which one of the three leadership styles was most effective. On the basis of their studies of leaders from boys' clubs, they concluded that the laissez-faire style was ineffective on every performance criterion when compared with both democratic and autocratic styles. Quantity of work done was equal in groups with democratic and autocratic leaders, but work quality and group satisfaction were higher in democratic groups. The results suggest that a democratic leadership style could contribute to both good quantity and high quality of work.

Later studies of autocratic and democratic styles of leadership showed mixed results. For example, democratic leadership styles sometimes produced higher performance levels than autocratic styles, but at other times they produced group performance that was lower than or equal to that of autocratic styles. Nonetheless, more consistent results were generated when a measure of employee satisfaction was used.

Group members' satisfaction levels were generally higher under a democratic leader than under an autocratic one." Did this mean that managers should always exhibit a democratic style of leadership? Two researchers, Robert Tannenbaum and Warren Schmidt, attempted to provide that answer.

Tannenbaum and Schmidt developed a continuum of leader behaviors. The continuum illustrates that a range of leadership behaviors, all the way from boss centered (autocratic) on the left side of the model to employee centered (laissez-faire) on the right side of the model, is possible. In deciding which leader behavior from the continuum to use, Tannenbaum and Schmidt proposed that managers look at forces within themselves (such as comfort level with the chosen leadership style), forces within the employees (such as readiness to assume responsibility), and forces within the situation (such as time pressures). They suggested that managers should move toward more employeecentered styles in the long run because such behavior would increase employees' motivation, decision quality, teamwork, morale, and development.

laissez-faire style of leadership

The term used to describe a leader who gives employees complete freedom to make decisions and to decide on work methods

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Six Traits That Differentiate Leaders from Nonleaders

1.Drive Leaders exhibit a high effort level. They have a relatively high desire for achievement, they're ambitious, they have a lot of energy, they're tirelessly persistent in their activities, and they show initiative.

2.Desire to lead Leaders have a strong desire to influence and lead others. They demonstrate the willingness to take responsibility.

3.Honesty and integrity Leaders build trusting relationships between themselves and followers by being truthful or nondeceitful and by showing high consistency between word and deed.

4.Self-confidence Followers look to leaders for an absence of self-doubt. Leaders, therefore, need to show self-confidence in order to convince followers of the rightness of goals and decisions.

5.Intelligence Leaders need to be intelligent enough to gather, synthesize, and interpret large amounts of information and to be able to create visions, solve problems, and make correct decisions.

6.Job-relevant knowledge Effective leaders have a high degree of knowledge about the company, industry, and technical matters. In-depth knowledge allows leaders to make well-informed decisions and to understand the implications of those decisions.

TEXT 2 Emerging Approaches to Leadership

We'll conclude our review of leadership theories by presenting three emerging approaches to the subject: charismatic leadership, visionary leadership, and transactional versus transformational leadership. If there is one theme that underlies these approaches, it is that they take a more practical view of leadership than previous theories have (with the exception of trait theories, of course). That is, these approaches look at leadership the way the average person on the street does.

WHAT IS CHARISMATIC LEADERSHIP THEORY?

We discussed attribution theory in relation to perception. Charismatic leadership theory is an extension of that theory. It says that followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. Studies on charismatic leadership have, for the most part, attempted to identify those behaviors that differentiate charismatic leaders — the Jack Welches, Elizabeth Doles, and Colin Powells of the world — from their noncharismatic counterparts.

Several authors have attempted to identify personal characteristics of the charismatic leader. Robert House (of path-goal fame) has identified three: extremely high confidence, dominance, and strong convictions. Warren Bennis, after studying 90 of the most effective and successful leaders in the United States, found that they had four common competencies: They had a compelling vision or sense of purpose; they could communicate that vision in clear terms that their followers could readily identify with; they demonstrated consistency and focus in the pursuit of their vision; and they knew their own strengths and capitalized on them. The most comprehensive analysis, however, has been completed by Jay Conger and Rabindra Kanungo at McGill University. They concluded that charismatic leaders have an idealized goal that they want to achieve and a strong personal commitment to that goal, are perceived as unconventional, are assertive

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and self-confident, and are perceived as agents of radical change rather than as managers of the status quo.

What can we say about the charismatic leader's effect on his or her followers? There is an increasing body of research that shows impressive correlations between charismatic leadership and high performance and satisfaction among followers. Compared with people working for noncharismatic leaders, people working for charismatic leaders are motivated to exert extra work effort and, because they like their leader, express greater satisfaction. But charismatic leadership may not -always be needed to achieve high levels of employee performance. It may be most appropriate when the follower's task has an ideological component. This aspect may explain why charismatic leaders most often surface in politics, religion, or a business firm that is introducing a radically new product or facing a life-threatening crisis. Such conditions tend to involve ideological issues. Second, charismatic leaders may be ideal for pulling an organization through a crisis but become a liability to an organization once the crisis and the need for dramatic change subside. Why? Because the charismatic leader's overwhelming selfconfidence often becomes a problem. He or she is unable to listen to others, becomes uncomfortable when challenged by assertive employees, and begins to hold an unjustifiable belief in his or her "rightness" on issues.

TEXT 3 WHAT IS VISIONARY LEADERSHIP?

The term vision appeared in our previous discussion of charismatic leadership, but visionary leadership goes beyond charisma. In this section, we review recent revelations about the importance of visionary leadership.

Visionary leadership is the ability to create and articulate a realistic, credible, attractive vision of the future for an organization or organizational unit that grows out of and improves upon the present. ; This vision, if properly selected and implemented, is so energizing that it "in effect jump-starts the future by calling forth the skills, talents, and resources to make it happen."

A review of various definitions finds that a vision differs from other forms of direction setting in several ways: "A vision has clear and compelling imagery that offers an innovative way to improve, which recognizes and draws on traditions, and connects to actions that people can take to realize change. Vision taps people's emotions and energy. Properly articulated, a vision creates the enthusiasm that people have for sporting events and other leisure-time activities, bringing this energy and commitment to the workplace."

The key properties of a vision seem to be inspirational possibilities that are value centered, realizable, and have superior imagery and articulation. Visions should be able to create possibilities that are inspirational, unique, and offer a new order that can produce organizational distinction. A vision is likely to fail if it doesn't offer a view of the future that is clearly and demonstrably better for the organization and its members. Desirable visions fit the times and circumstances and reflect the uniqueness of the organization. People in the organization must also believe that the vision is attainable. It should be perceived as challenging yet doable. Visions that have clear articulation and powerful imagery are more easily grasped and accepted.

What are some examples of visions? Rupert Murdoch had a vision of the future of the communication industry that combined entertainment and media. Through his News Corporation, Murdoch has successfully integrated a broadcast network, TV stations, movie studio, publishing, and global satellite distribution. Mary Kay Ash's vision of women as entrepreneurs selling products that improved their self-image gave impetus to

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her cosmetics company. Michael Dell has created a vision of a business that allows Dell Computer to sell and deliver a finished PC directly to a customer in fewer than eight days.

What skills do visionary leaders exhibit? Once the vision is identified, these leaders appear to have three qualities that are related to effectiveness in their visionary roles. First is the ability to explain the vision to others. The leader needs to make the vision clear in terms of required actions and aims through clear oral and written communication. Former President Ronald Reagan — the so-called "great communicator"— used his years of acting experience to help him articulate a simple vision for his presidency: a return to happier and more prosperous times through less government, lower taxes, and a strong military. Second is the ability to express the vision not just verbally but through the leader's behavior. This requires behaving in ways that continually convey and reinforce the vision. Herb Kelleher at Southwest Airlines lives and breathes his commitment to customer service. He's famous within the company for jumping in, when needed, to help check in passengers, load baggage, fill in for flight attendants or do anything else to make the customer's experience more pleasant. The third skill is the ability to extend the vision to different leadership contexts. This is the ability to sequence activities so the vision can be applied in a variety of situations. For instance, the vision has to be as meaningful to the people in accounting as to those in marketing and to employees in Prague as well as in Pittsburgh.

TEXT 4

1In this extract from his hook Mind your Manners, John Mole compares western and Japanese approaches to business in terms of Leadership and Attitudes/Behaviour. Before you read, try to predict some of his comments.

2Read the first part of the text about Leadership and decide which of the following statements accurately reflect John Mole's comments.

1The Japanese approach to leadership is more individualistic than the western approach.

2Japanese bosses tend to be more decisive, charismatic and overtly ambitious than their western counterparts.

3European employees expect defined job responsibilities and clear-cut goals.

4Japanese employees expect regular feedback on their performance.

5Japanese employees expect to use their initiative more than their European counterparts.

6Success in Japanese business depends on careful observation of the boundaries of status and hierarchy.

3Read the rest of the text and complete the following chart. You will need to infer some of the information.

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DIFFERENCES IN ATTITUDES FND BEHAVIUOR

		Western		Japanese
	1.	……………………………	Use last name followed by san
	2.	……………………………	Subtle status symbols
		speak your mind	3.	…………………………
		time is money	4.	…………………………
		regular hours with time off	5.	…………………………
		humour is vital and varied	6.	…………………………
		rarely meet outside work	7.	…………………………
		meeting outside work purely social	8.	…………………………
		more to life than work	9.	…………………………
	10 …………………………		karoshi

Leadership

Westerners tend to value a tough, individualistic and dominating leadership style including the ability to take independent decisions and have them successfully implemented. The higher a Japanese manager rises in a company the more pains he will take to hide his ambition and capability and not to be seen as a forceful leader. Westerners who look for a decisive and charismatic boss are likely to be disappointed.

A Japanese manager concentrates on getting his group to work together. He is expected to be accessible, to work as an integral part of the group and to share whatever information he has. Because he has spent his whole career with the company, more often than not in the same type of function, he is expected to be fully knowledgeable about his subordinates' work as well as his own.

One of the problems Japanese managers often have with western subordinates is getting them to show initiative. They complain that Europeans need to be told what to do all the time. And when they have done it they need immediate assurance that they have done it right and a pat on the back. This would be embarrassing to the boss and personally offensive to a Japanese subordinate who expects no more than a vague indication of the job to be done. Japanese do not have personal job descriptions or performance appraisal systems. Japanese job definition is for the group and it is assumed that everyone will do their best to fulfil it

Their western subordinates on the other hand complain that they are given only vague hints of what they are supposed to do. Without defined responsibility, clear direction, and realistic goals they may find their jobs boring and without scope. When individual descriptions are instituted in Japanese companies in Europe it is usually at the European's insistence.

Europeans who discover the ground rules find that they have more scope to make their own jobs than in a circumscribed western environment The ground rules are never do anything that is above your status, never do anything that infringes on someone else's status and never cut across hierarchical boundaries. The way to ensure you keep within the boundaries of your status is to keep your boss informed of the smallest detail. Among the sample of people I talked to it was those at the lower level of organisation who found this the most stimulating change from a European working environment where junior people are given comparatively little scope or responsibility.

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Attitudes and behaviour

Etiquette

Japanese in Europe have reluctantly learned to use first names but feel more comfortable when addressed by the last name followed by san. Senior people may be addressed by their title plus san instead of last name. First names are reserved for family and close friends.

Titles, modes of address and language are carefully measured to indicate relative status, as are the other subtle status symbols of office life such as job titles or the positioning of desks in an open office. For example, seniors would have their backs to the windows where they could enjoy the privilege of natural light, in contrast with the fluorescent lighting pervading Japanese offices. While very sensitive to fine distinctions of rank, the western use of material goods to communicate achievement and authority are noticeably lacking. Offices are workmanlike, cars are unostentatious and soon.

More important than the actual forms of language and behaviour is pervasive politeness and a concern to avoid embarrassment to oneself or others. Displays of temper or any other uncontrolled emotions are seen as a sign of weakness.

Japanese manners are based on reciprocation, a sense of mutual indebtedness. To many westerners the excessive deference of a subordinate to a superior is less surprising than that it is returned in kind. Relationships between all levels are built on exchange, whether gifts, courtesies, help, information and soon.

Extreme politeness does not exclude openness in relationships. Europeans, especially women, may be surprised at the personal nature of conversations. This is usually because Japanese need to know people well before they can be comfortable with them. In some European countries you need not trust people to work with them as long as they do their job. In a Japanese environment there is a higher tolerance of professional and human frailty, but it is compensated with a greater demand for loyalty and trust

Punctuality

Japanese are very punctual when politeness requires it and especially with senior people. Otherwise time is fluid. A meeting will carry on until it is finished or interrupted by the demands of a senior person outside. The working day can be very long, reflecting a demanding work ethic and a high level of commitment. Being the first to leave, even if you have no work to do, is a snub to the group and an embarrassment to your senior. As in Japan, Japanese may regularly work on Saturdays, rarely take more than a week's vacation or their full entitlement, and count sick days as holiday.

Humour

On informal occasions when they know everyone well, Japanese will be humorous and entertaining. At a formal meeting or among strangers they may be awkward and withdrawn and too nervous to loosen up. In presentations and speeches to westerners many have learned that the audience expects jokes and informality and respond accordingly. Japanese do not usually appreciate flippancy or triviality and find selfdeprecation a mystery.

Social life

The most common complaint among westerners is that most major decisions seem to be made outside office hours by their Japanese colleagues. While in day-to-day activities they are kept well informed, they are kept in the dark about the overall direction of the company. For a westerner to progress in a Japanese managed company it is essential to

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work late in the evening and at weekends. This can be a major impediment for women who wish to progress in a Japanese company. In the workplace itself most of the women I talked to did not find Japanese more chauvinistic than their western counterparts. The difficulty was in establishing the appropriate relationships, as well as finding the time, to join in the after-hours discussions.

It is not so easy for men either. While the expatriate Japanese is considerably more flexible and adaptable to European ways than the stereotypical image of the chauvinistic and single minded Tokyo salaryman, it is hard to break into the inner circle. As in any foreign company a first requirement is to make an effort to speak the employer's language. As well as practically useful it demonstrates a commitment to career and company to which Japanese are particularly sensitive.

It is this level of dedication to the organisation which is probably the biggest hurdle to making any more than an averagely successful career in a Japanese company. The emotional and practical commitment that Japanese expect is incomprehensible to most westerners. The term 'British disease' is a byword among Japanese for idleness and is extended to most other western countries. The Japanese disease is Karoshi, or death by overwork. The difference between the British and Japanese diseases is perhaps the biggest cultural hurdle for each side to overcome.

©Nicholas Brealey Publishing

LISTENING

I. Listen to the interview. Put the characteristics which the speaker suggests are common to successful leaders in the order in which he mentions them.

a)Successful leaders achieve their goals.

b)They are prepared to do anything to achieve their objectives.

c)They know exactly what their objectives are.

d)Their objectives are always for the good of ordinary people.

e)They maintain absolute concentration on their aim.

II.

Leadership	1. Max Landsberg is		a partner at Heidrick and
qualities	Struggles, the	international	executive search consultants.
	Listen to the first part of an interview. What three qualities
	do leaders of large companies usually have?
	2. Listen to the second part of the interview. Max talks
	about the ways that leaders can develop their skills.
	1. Match the following percentages - 70%, 20%, 10% - with
	the development activity.
	a) training	b) coaching	c) on the job
	2.What, according to Max, is the main way that companies
	develop leaders?

3. Listen to the third part of the interview. Max talks about three leaders that have influenced or impressed him.

Make notes on what he says about each one.
Nelson Mandela	Winston Churchill	Bernie Ellis

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DISCUSSION QUESTIONS

1.Discuss the strengths and weaknesses of the trait theory of leadership.

2."Charismatic leadership is always appropriate in organizations". Do you agree or disagree? Support your position.

3.When might leaders be irrelevant?

4.Develop your own definition of leadership.

5.Is there a difference between effective management and effective leadership? Why or why not?

6.Assess yourself as a leader based on what you have read. What are your strengths and weaknesses?

7.Identify the developmental experiences you have had that may have strengthened your ability to lead. What did those experiences teach you? Also identify some developmental experiences you need to acquire, and how you will seek them. Be specific.

CASE STUDY

Developing Your Diagnostic and Analytical Skills

HIROSKI OKUDA AT TOYOTA

Hiroski Okuda isn't afraid to speak his mind nor impose radical change in an organization. And because of these traits, he sticks out in Toyota, where he is the chairman of the board. Prior to becoming chairman, Okuda served as Toyota's president

— the first nonfamily member in over 30 years to head the company. He also sticks out in his executive circles, because in Japan executives are supposed to be unseen. Okuda justifies his outspoken and aggressive style as necessary to change a company that has become lethargic and overly bureaucratic.

Okuda moved ahead at Toyota by taking jobs that other employees didn't want. For example, in the early 1980s, the company was trying to build a plant in Taiwan, but the Taiwanese government's demands for high local content, technology transfer, and guaranteed exports convinced many at Toyota that the project should be scrapped. Okuda thought differently. He successfully lobbied for the plant in the company, and it's now very profitable for the organization. As Okuda has noted, "Everyone wanted to give up. But I restarted the project and led it to success." His drive and ability to overcome obstacles were central to his rise in the company's hierarchy.

When Okuda ascended to the presidency of Toyota in early 1995, the company was losing market share in Japan to both Mitsubishi and Honda. Okuda attributed this problem to several factors. Toyota had been losing touch with customers in Japan for several years. For example, when engineers redesigned the Corolla in 1991, they made it too big and too expensive for the Japanese tastes. Then, four years later, they stripped out so many of the costs in the car that the Corolla looked too cheap. Competitors, on the other hand, had also done a much better job at identifying the boom in recreational vehicles — especially the sports utility market. Toyota's burdensome bureaucracy also bothered Okuda. A decision that took only five minutes to filter through the company at Suzuki Motor Corporation took upwards of three weeks at Toyota.

In his first 18 months on the job, Okuda implemented some drastic changes. In a country in which lifetime employment is consistent with the culture, he replaced nearly

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