Leadership Electronic Cover Sheet

Assignment Student Name Student Number Student Email Unit Code Unit De$cri%tion Nguyen Duy Nguyen 21919116 duy.nguyen1987@yahoo.com !S""1#6 &eader$hi%

STUDENT DECLARATION ' ha(e read and under$tand the )ule$ relating to *+ard$ ,)ule -.18. a$ contained in the Uni(er$ity !andboo/. ' under$tand the %enaltie$ +hich a%%ly 0or %lagiari$m and agree to be bound by the$e rule$. 1he +or/ ' am $ubmitting electronically i$ entirely my o+n +or/. Student Name Date Submitted Nguyen Duy Nguyen 22th *ugu$t 2"11

Executive Summary

Leadership
This report will attempt to analyze Steve Jobs who is the co-founder, Chairman and Chief Executive Officer of pple !nc" The report will be divided into four sections" !n section #, bac$%round and the two leadership models includin% behavior model of &i$ert's system and Contin%ency model of (iedler's theory will be described and explained how they are appropriate to Steve Jobs' leadership style" !n section ), the two models of section # will be deeply analyzed so that readers can understand how Steve Jobs is an autocratic leader and how he used his central-personality style to positively affect pple !nc" Section * will attempt to discuss the extent to which Steve Jobs behaves as a transformational or transactional leader or he behaves as both" !n section +, Steve Jobs will be critically evaluated how appropriate and suitable his leadership style and behavior for the situations in which he is a leader and how internal factor li$e culture and external ones li$e %lobalization, competitors, and technolo%ical advances will affect his style and decision" (inally, in section ,, there will be recommendations for Steve Jobs so that he can improve his leadership style and behavior"

Table of Content

Leadership
Section1.Introduction4 Section2.Leadershi style and behavior..!"# Section$.Transactional and Transformational Leadershi ...%"& Section4.Internal and External 'actors...1("11 Section!.)ecommendation.12 )eferences.

Section1 Introduction 1.1 *ac+,round

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Steven -aul Jobs .(ebruary, #/,,0 is the co-founder, Chairman, and CEO of pple !nc" 1e's also the founder and former CEO of -ixar nimation Studios" 1e's the bi%%est shareholder of 2alt 3isney and is bein% on the list of 4oard of 3irectors" 1e's a leadin% person in both the entertainment and computer industries" The (ortune 5a%azine ran$ed Steve as the most powerful businessman of the year of )667 amon% twenty-five other top entrepreneur" 1.2 *ehavior leadershi &i$ert .#/870 maintained that autocratic leader is authoritarian and exploitative of subordinators" (rom the findin%s and researches, Steve is considered as an autocratic leader" 1e doesn9t want to listen to people's feelin% but what he cares is how the tas$ is done" Steve is considered as bein% central personality and pple is therefore a personality-driven or%anization .:oun%, )66,0" 1owever, he has brou%ht success to pple by combinin% his shared vision and innovation" 1.$ Contin,ency leadershi s stated by (iedler .#/870, leader cannot chan%e his leadership style but can chan%e the situation to fit the style" This model is used to evaluate Steve Jobs because he is a leader with tas$-oriented style" !n (iedler's theory, Steve's style is tas$-structure because he is only concerned with tas$ achievement instead of relationship orientation .:oun%, )66,0" !n terms of leader-member relations, Steve's relationship with employees is low, but it doesn9t affect his influence because pple's culture is effective" !n terms of power, Steve has positional power because he is CEO and chairman of pple" 1e has expert power because of !T and related sub;ects s$ills .5oisescot, )66<0 and mar$etin% vision .:oun%, )66,0" Steve also has referent power since he can convince employees and customers .3ubrins, )6#60"

Section2. Leadershi style and behavior 2.1*ehavior theory ccordin% to &i$ert .#/87, p"+0, an autocratic leader is considered as person who forces people what to do, authorizes and exploit the team members" ccordin% to 5oney=ine, in case of
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Leadership
emer%ency, the autocratic is really effective because it %ets wor$s done >uic$ly" !n fact, in the period of crisis, most employees want their leaders to be autocratic so that they can be forced to do wor$" !n contradiction, a participative leader would li$e to hear opinion of subordinators and allow them to ta$e part in the decision-ma$in% in a democratic way" The benefit of participative style is that the leader can %et more ideas and opinions from his subordinators and he can ma$e the appropriate decision" s stated by :oun% and Simon .)66,0, pple employees didn9t want to be called to do product presentation because Steve mi%ht lop off them and their product with it" dditionally, they didn9t want to encounter Steve in the hallway as he mi%ht not li$e their answer and undermine their confidence by sayin% somethin% demeanin% .:oun% and Simon)66,0" 5oreover, in an interview with (ortune 5a%azine .)66<0, Steve said ?5y ;ob is to not be easy on people" 5y ;ob is to ma$e them better" 5y ;ob is to pull thin%s to%ether from different parts of the company and clear the ways and %et the resources for the $ey pro;ects" nd to ta$e these %reat people we have and to push them and ma$e them even better, comin% up with more a%%ressive visions of how it could be"@ 1e wants subordinators to follow and obey him and his personality therefore is conflicted with the standard of participative leader" 2.2Contin,ency theory !n his boo$, theory of leadership effectiveness, (iedler .#/87, p"#6*0 maintained that leadership was classified as either tas$ structure or leader-member relations" Tas$-structure expresses a stron% emotional reaction a%ainst people whom they find difficult to wor$ with whereas leadermember relations refer to the close interpersonal relations which are necessary for accomplishin% the tas$"

2.2.1 Tas+"orientation !n terms of tas$- oriented leadership, Steve Jobs is a leader who always focuses on tas$ and performance of the company" 1e is an autocratic leader, who had made pple into ti%ht and disciplinary company on accomplishment on his demandin% product schedules .Aahney, )66<0" 1e is also $nown as the person who stresses on the hi%h re>uirement of performance" ccordin% to the interview with ndreessen, Beneral -artner .(ortune, )66/0, Jobs always establishes the
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Leadership
performance standards" 1e never wants to hear ?no@ for any answer and he has hi%h re>uirement for his product" 2.2.2 )elationshi "orientation !n terms of relationship-oriented leadership, Steve Jobs never %oes into any relationship behaviors" !n www.cc.gatech.edu, Angelelli, (1994) maintained that Steve has showed that he has more interest in tas$, productivity than in people and interpersonal relations" !n fact, Steve Jobs is not concerned with people's feelin% but their ideas nd their ideas must be disputable as Steve will force them to stic$ up for the ideas and often raise their blood pressure to chec$ whether they $now the fact and have stron% ar%uments .Aahney, )66<0" 2.2.$ .o/er 2.2.$.1 Le,itimate .o/er ccordin% to 3al%lish C 5iller .)6#6, p"#780 maintained that le%itimate power depends on the mana%erial position of the leader" !n terms of positional power, as the CEO of pple, Steve has the hi%hest position and also has nearly a half of the shares of the company .Bamet, )66<0" Steve Jobs is also %iven /#D ratin% by subordinators whereas 5icrosoft and 3ell CEO %ain only ,,D and 88D .Bamet, )66<0" 2.2.$.2 Ex ert .o/er Expert power is related to s$ill and $nowled%e of the leader to influence the others .3al%lish C 5iller, )6#6, p"#780" Steve has never really studied about !T or related sub;ects, but when he was youn% he already had passion and lust in technolo%y and he led the production of video %ames and then invented his own computer .5oisescot, )6##0" !ndeed, he has special !T s$ills" 5oreover, Jobs can thin$ of products and mar$ets that satisfy the needs of customers .:oun%, )66,0" 2.2.$.$ )eferent .o/er. ccordin% to 3al%lish C 5iller .)6#6, p"#780, referent power is based on relationship of one person with others and their ability to affect throu%h what others receive to be %ood
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characteristics" Steve Jobs is si%nificantly persuasive spea$er and has ability to confuse and surprise his subordinators and the public with a convinced delivery .3ubrins, )6#6, p"<80"

Section$. Transactional and Transformational Leadershi !n the boo$ of leadership, 4urns .#/7<0 said that transactional leadership depends on the transaction between leader and followers" This means the leader will reward and praise his employees if they do somethin% %ood for the company" Conversely, if they do bad thin%s they will be fired and punished" !n contrast, transformational leader inspires people to follow him by leadin% them with passion and vision instead of usin% force" nd people will have willin%ness to follow him in the way he wants them to follow .4urns, #/7<0" $.1 Transactional leadershi
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ccordin% to &ashins$y C Si$los .)66/0, as a transactional leader, Steve reco%nized Coo$'s ability and put operations of the company in his hand" 1e also has respects for Coo$ when the company has already fused around him since he didn9t do anythin% that made people show an expression of lac$ of respect him .&ashins$y C Si$los, )66/0" On other occasion, Steve praised Eatzlaff for developin% an %ood desi%n for i5ac which %ave him the achievement because Steve's re>uirement is extremely hi%h and he is a person with very hi%h expectation .Aahney, )66<0" $.2 Transformational leadershi s a transformational leadership, Steve Jobs envisions the 5acintosh and challen%es his subordinators to reach the impossible %oals" ccordin% to .3eustchman, )666, p"*60, Jobs vindicated that pple's board was wron% to push him aside by openly showin% his vision of computer's future" Jobs visualized that people have to thin$ about the future, so that they can see the prospect and potential of the particular vision" Steve always re>uired people to focus on what they are capable of and ta$e responsibility for what they do .4aldoni, )6680" !n order to save pple, he let them $now the necessity to concentrate on their best potential products .Aahney, )66<0" (urthermore, he tried to convince employees that pple can pro%ress new businesses li$e cell phone in spite of si%nificant competition in the mar$et .4urrows, )66/0" nd he subse>uently mana%ed to convince them that they were in a distinctive position where they will have ability to chan%e the face of computin% that nobody had done before .Aahney, )66<0" Therefore, since the introduction of i-od, his followers were hi%hly self-fulfilled when pple dominated the electronics mar$et with the accompaniment of i-hone and 5ac products .&yons, )66<0" dditionally, in the boo$ ?!con Steve JobsF The Breatest Second ct in the 1istory of 4usiness@, :oun% and Simon .)66,, p"#<+-#<,0 described Steve Jobs as a transformational leader" 1e has ability use his vision and plans to direct his people and ma$e them do thin%s that they have never done before" Steve is considered as Ge%otistG, and his e%oism often appears to be a motivation to endeavor for success in business and wor$ers should be affected by this e%oism .:oun% and Simon, )66,0" Steve does not only have e%oism for himself, but he also brin%s it to his
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Leadership
employees so that they can reach unreachable thin%s" Steve's e%oism also partially %ives him success no matter what his sphere of activity will be .:oun% C Simon, )66,0" Steve Jobs used his shared vision and innovation to inspire his employees and used reward and praise to motive them accordin% to their performances" Therefore, he is either transformational or transactional leader"

Section4. Internal and External 'actors 4.1 Internal factor 4.1.1 Culture ccordin% to 3avid Caldwell, professor of mana%ement at Santa Clara Hniversity, culture is a shared $nowled%e of expectations amon% members of the company, and it is reflected in the policies, vision, and %oals of that company" Steve Jobs has based the leadership culture of the pple on brand admiration and customer loyalty" There is no mar$et research in pple" -eople $now what is %ood, who they are and they will stay with their opinions, philosophy and values .Hxmovement, )6#60" s a CEO, Steve Jobs hasn9t done mar$et research because he has created
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Leadership
the culture for pple, and this culture is pursuin% the innovation, perfect products, mar$etin% vision and focus on >uality .:oun%, )66,0" 5oreover, pple always aims for perfection" Their policy is that if the product is not perfect, it is not %oin% out to the customers .Hxmovement)6#60" Ievertheless, this ;ust means that they li$e perfection and wor$ hard for it, whereas the other or%anizations will %et it out and deal with it later" s stated by 4enezra C Bilbert .)66)0, Steve Jobs is considered as bein% perfectionist throu%h his vision" 1e always supposes that $illin% products will brin% $illin% profits" 4.2 External factors 4.2.1 Technolo,ical advances ccordin% to 4urrows .)6670, as Steve Jobs returned to pple in #//7, he did use the 5ac fter Steve

computer's disadvanta%e to run several applications in his advanta%e by decidin% to deal with 5icrosoft whose the Office software was compatible with that of 5ac computer" realized that isolation of pple from partners, competitors, and customers limited company9s

success in the technolo%y industry, he used vision to turn pple into a technolo%ical ecosystem"

4.2.2Com etiors lthou%h 5ac had reputation because of world's best personal computers, software and add-ons which were compatible with 5ac" partner with the pple lac$ed of

nd Steve Jobs decided to choose

pple9s rivals to %et user-friendly features for 5ac due to the decreased sales,

and lac$ of ability to compete with software competitors" .4usinesswee$, )6670 ccordin% .4usinesswee$, )6670 when i-od and i-hone were invented, they turned to be userfriendly devices for customers because of the screen-touch technolo%y and they brou%ht the success to the company" !n order to %et lar%er base of consumer, Steve a%ain made a deal with his competitors such as :ahoo and Boo%le to create applications for the new devices" pple does not focus on their own products, but they also wor$ on compatibility with operatin% system .OS0 of competitor 5icrosoft so that they can catch non-5ac users .Uxmovement, )6#60"
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4.2.$ 0lobali1ation Blobalization brin%s opportunity for the company to enter into a wider mar$et, but it also brin%s more competition that re>uires supervisors to deal with the competitors by ta$e advanta%e of competitive advanta%e .4ritt, )6##0" ccordin% to pple annual report .)66,0, the >uarterGs revenue of international sales was +*D and it is continually risin%" 4ecause of %ood mana%ement, pple can ma$e hi%h profit by %lobalizin% their company"

Section!. )ecommendation Steve Jobs should have emotional intelli%ence which is appropriate for an effective leader" !ndeed, most effective leaders have hi%h rate of emotional intelli%ence .Boleman, #//,0" Steve Jobs also needs to control the impulsive behavior and react with proper temper to situations so that employees can feel comfortable to wor$ with him" 5oreover, he should show his empathy to employees and learn to $now the emotion of other people and treat them base on their emotional reactions" !n addition, Jobs should be more sensitive to his subordinators' feelin%s and encoura%e them rather than firin% them by usin% verbal attract"

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)eferences
Young, J. and Simon, W. (2005) Icon Steve Jobs: The Greatest Second Act in the History of Business, Canada: Jo n !ile", #$235, 236$ Kahney, L. (2008)$ Inside Steve's Brain, %e& 'o(): *eng+in ,oo)- .td$

The 2ac 3bserver .)66<0 Apple Employees Give Steve Jobs a 91% Approval ating! JonlineK vailable atF httpFLLwww"macobserver"comLtmoLarticleL ppleMEmployeesMBiveMSteveMJobsMaM/#M pprovalM Eatin%L J ccessedF #,th u%ust )6##K"
all about Steve Jobs (2011) Bio, /online0 Availa1le at: tt#:22&&&$alla1o+t-teve3o1-$4om21io21io$ tml /A44e--ed: 5t A+g+-t 20110$ Dubrin, A. (2010) Leadership, 6t ed$ 5ive( 6(ove: Cengage .ea(ning, #$186$ CNN Money (2008) Steve Jobs speaks out, /online0 Availa1le at: tt#:22mone"$4nn$4om2galle(ie-2200827o(t+ne208032galle("$3o1-8na$7o(t+ne25$ tml /A44e--ed: 2nd A+g+-t 20110$ Deuts hman, A. (2000) The Second o!in" of Steve Jobs, %e& 'o(): ,(oad&a", #$30, 103$ 12

Leadership
!urro"s, #. (2009) A##le &it o+t it- 4o(e9 , Business#eek, 41(17), #$31$ Lyons, D. (2008) :teve Jo1-, $e#s#eek, 153(31), #$61$ !aldoni, J. (2006) Ho# "reat %eaders "et "reat resu%ts, %e& 'o(): ;46(a&<=ill$ Lashins$y, A. and Si$los, %. (2009) :teve>- leave, &ortune, 159(2), #$96<102$ business"ee$ (2004) Steve Jobs: He thinks different, /online0 Availa1le at: tt#:22&&&$1+-ine--&ee)$4om2maga?ine24ontent204@44213906025@m?072$ tm /A44e--ed: 12t A+g+-t 20110 Su&&ly ' Demand Chain ()e utive (2011) I!pact of G%oba%i'ation in reatin" Sustainab%e o!petitive Advanta"e, /online0 Availa1le at: tt#:22&&&$-d4exe4$4om2a(ti4le2102896942im#a4t< o7<glo1ali?ation<in<4(eating<-+-taina1le<4om#etitive<advantage /A44e--ed: 18t A+g+-t 20110$ !usiness"ee$ (2007) (e%co!e to )%anet App%e, /online0 Availa1le at: tt#:22&&&$1+-ine--&ee)$4om2maga?ine24ontent207@28214042058$ tml /A44e--ed: 17t A+g+-t 20110$ A&&le (2005) App%e *eports Second +uarter *esu%ts, /online0 Availa1le at: tt#:22&&&$a##le$4om2#(2li1(a("22005204213A##le<5e#o(t-<:e4ond<A+a(te(<5e-+lt-$ tm /A44e--ed: 17t A+g+-t 20110$ u)movement (2010) , Thin"s to -no# About the o!pany u%ture at App%e, /online0 Availa1le at: tt#:22+xmovement$4om2(e-o+(4e-28<t ing-<to<)no&<a1o+t<t e<4om#an"<4+lt+(e<at<a##le2 /A44e--ed: 17t A+g+-t 20110$ (ntre&reneur (2002) The ./ as brand: Their na!es are synony!ous #ith their co!panies' products00and that presents a s%e# of uni1ue cha%%en"es2, /online0 Availa1le at: tt#:22&&&$ent(e#(ene+($4om2t(ade3o+(nal-2a(ti4le282016527$ tml /A44e--ed: 17t A+g+-t 20110$ *oleman, D. (1995), .!otiona% Inte%%i"ence, :"dne": ,antam ,oo)-$ money+,ine (2004) Autocratic Leadership, /online0 Availa1le at: tt#:22&&&$mone"< ?ine$4om2Ca(ee(<Bevelo#ment2.eade(- i#<:)ill2A+to4(ati4<.eade(- i#2 /A44e--ed: 7t A+g+-t 20110$ .gate h (1994) Steve )au% Jobs, /online0 Availa1le at: tt#:22&&&$44$gate4 $ed+24la--e-24-6751@97@7all2#(o3e4t-2intelli# one2Jo1-$ tml /A44e--ed: 4t A+g+-t 20110$ 13