AGW 663 Leadership For

Transformation

Tuan Haji Noor Nasir Hj Kader Ali

Chin Sze Pheng PGSM0207/09
Ng Patricia PGSM0136/09
Susan Tan Soo Ling PGSM0168/09

Chapter 7 :
Other Leadership Perspectives
Upper Echelon and Leadership of
Nonprofits

Micro
UpperEchelon /
Strategic
Leader

OUTLOOK

Domain
Structure

Moderate
factors:
External and
Internal
Factors that
Impact
Strategic
Leaders
Discretion

Culture
President
/CEO/CO
O/BOD

Roles
To
balance

Environment

Technology
Strategy

Culture and
Gender
4 Strategic
Leadership
Types

Leadership

Process that
leaders Use To
Impact
Direct Decision
Allocation of
Resources

Strategy Formulation
Develop
Vision and
Mission
statements

Establis
h LT
obj.

Generate,
evaluate
and select
strategies

Reward System

Need to Control
Challenges
seeking

Characteristics,

Setting the
Norms and
Modeling

Power

Compensation
Salary/Reward

Accountability

Leading
Change

Strategy
Implementation
Performance/
Competitive
Advantage

Coverage of Understanding

Differences Between Micro and Upper-Echelon leadership

The Domain and Roles of Strategic Leaders in the Management of an

Organization.

The External and Internal Factors that Impact Strategic Leaders Discretion.

Strategic Leaders Individual Characteristics and their Impact on Leadership Style

Contrast the four Strategic Leadership Types

The Role of Culture and Gender in Strategic Leadership.

Process that Leaders use to Impact/Influence the Organization.

Issues of Executive Compensation and Accountability

The Characteristics and Challenges of Leadership in Nonprofit Organization

DIFFERENCES BETWEEN MICRO AND

UPPER-ECHELON STRATEGIC LEADERSHIP

Nubla IftikharMarketing Manager

(Pakistan)

Susan Tan
Purchasing Section
Manager (Malaysia)

Michael Dell
Chairman and CEO
Dell Computer
Corporation

DIFFERENCES BETWEEN MICRO AND

UPPER-ECHELON STRATEGIC LEADERSHIP
Micro (Group)

Strategic (Upper Echelon)

Who

One person heading a group,

team, or department

Head for a whole organization

(president, CEO, COO)
Top Management Team (TMT)
Governance body such as BOD

What is the
scope?

Small group, team, department Entire organization

Where is the Internal

focus?

External

Effectivenes
s Criteria

Stock prices and other financial

measures; stakeholder satisfaction

Productivity; quality;
employee satisfaction and
motivation; turnover;
absenteeism

THE DOMAIN AND IMPACT OF STRATEGIC

LEADERSHIP
Strategy

Environment
Technology

Structure
Leadership

Culture

ROLE OF STRATEGIC LEADERS

Moderating
Factors

Leader

Strategy
Formulation

Performance

Strategy
Implementation

FACTORS THAT MODERATE THE POWER OF

LEADERS
External Environmental
Factors

Internal Organizational
Factors

External Environmental Factors

Environment Uncertainty, type of industry
-leaders make strategic decisions based on their interpretations.
Market growth
leaders have considerable discretion to set and change the
course.
legal constraints
- Leaders have limited discretion

FACTORS THAT MODERATE THE POWER OF

LEADERS
Internal Organizational Factors
Stability
Leaders provide direction and guidance, charismatic leadership behaviors to influence
followers to a high degree.

Size, structure and culture

- Large organizations- decision making is decentralized, impact of leaders in daily operations
decline.
- Small organizations- desires of leaders are reflected in actual operations.

Stage of organizational development

- Early stage : culture, strategies and structure are the reflection of its leaders preference.
- Mature stage: influence of leaders decrease and replaced by strong culture and established
routines.

Presence, power, and makeup of TMT

-If an organization does not have a TMT/ it is weak, impact of CEO is more direct.
-If an organization has powerful TMT, such a team will moderate the power and discretion of
the individual leader.

CHARACTERISTICS OF UPPER-ECHELON
LEADERS
Personality +
Individual
Characteristic

Impact

Leader
Style
+ way

Openness

Impact

Innovative/
Futuristic

Insider/Risk
adverse

Impact

Status Quo
Centralization

Desire for
Control

Challenge
Seeking

Manage

Organization

Manage

Celebrated
Current
Climate
Crisis and
Leading
Change

Manage

Less Likely to
change the
Organization

Four Strategic
Leadership Types

FOUR STRATEGIC LEADERSHIP

Delegation
TYPES Centralization
Openness to
change
Risk taking
Willingness to
innovate
Future
Orientation

High

Challenge
Seeking
Low

Uniformity of Practice
Focus on process

Desire for Control

High
Risky
Strategies,
Undertake
new/
Original
endeavors

Low

High-Control
Innovator (HCI)
Risk Taking
/Tight Control

Participative
Innovator (PI)
Risk Taking
/Delegate
Control

Status Quo
Guardian
(SQG)
Risk Adverse and
Tight Control

Process Manager
(PM)
Risk Adverse
and Delegate
Control

Openness ,
adapt culture,
Employee
Empowernment
.

IMPACT OF STRATEGIC LEADERSHIP TYPES

ON THE 6 STRSTEGIC FORCES
Environment

Tech

Strategy

Culture

HCI
(HH)

High O/T

Innovation
+ High Use

High Risk/
Innovate
Core

Strong
Conservative

SQG
(L/H)

High
T/Protect
org from
Outsiders

Low use
unless
helps
Control

Low Risk
Efficiency

Strong
Low
diversity

PI
(H/L)

High O
Open to
outside

Wide Use

High Risk/
Innovate
Open New/
Original

Fluid
High
diversity

PM
(L/L)

T/Protect
org from
Outsiders

Low Risk
Efficiency

Fluid but
no change
Tolerance
- diversity

Leader

Moderate

Structure

Centralize
common
goal
Uniformity

Decentralize
Delegation
Empower
Participatio
n

Leadership

Leader
+Mgr same
style and
view

Leader
+mgr with
diverse
style +view

THE ROLE OF CULTURE AND

GENDER IN STRATEGIC
LEADERSHIP.

THE ROLE OF CULTURE

Different countries have different pattern of leadership which will
impact leader style and approaches.
Cross cultural differences when organization become global.

US

Asia

Empowering

Delegation

Centralization

Directive

Low

High

Social
class/skill

Mixture

Upper

Power distance

Low

High

Power

Casual/Think out
of box

Formal/Authority
/High Power

Celebrity
Culture

Open

Conservative

THE ROLE OF GENDER

Fewer women in high leadership position.

Women

Men

Try to do too much

More willing to delegate

Less Hierarchical

More Hierarchical

More Cooperative and

Collaborative

Set Strong Boundaries

and Clear Responsibility

Emotional/Caring

Calm

Encourage
Participation, Share
power and Info.

Directive and Control

style.

http://www.genderinscience.org/downloads/Consensus_Report_references/Eagly%20and%20Johannesen-Schmidt%202001.pdf
http://masters.donntu.edu.ua/publ2002/fem/puliaeva.pdf

PROCESS THAT LEADERS USE TO

IMPACT/INFLUENCE THE ORGANIZATION
To support org. goal
/R&D/Training to
boost the innovation/
creativity.

Vision/Mission,
decision on the org
structure/Strategy
and selection of
other leaders

Environment
Strategy

Direct Decision

LEADER

Formal (Salary)
Informal (
Recognition).
Promotion

Allocation of
Resources
Reward
System
Setting the
Norms and
Modeling
Setting Std and Norms for
other to make decision.
Type of behavior/style Model

Culture
Structure
Technology
Leadership

Organization

Factors That Affect Executive Compensation

Firm size
Industry competition
CEO power and discretion

Internationalization

The larger the firm, the higher the

compensation
Companies often outbid one another to
hire top executives
The higher the power, the higher the
compensation package
Increase internationalization is related to
higher executive pay

High stress and instability High stress required high compensation

Unique Challenges of Nonprofit Organization

Leadership is not

Position
Authority
Power

Characteristics of Nonprofit Organization

Operate
without
profit

Fund are reinvested to

support the operation of
the organization

Public
service
mission

To serve public good

Healthcare, education ,
community improvement

Voluntary
board of
directors

Governing board are

staffs by volunteers

Funded
through
contribution

Grants and donation from

individual, government
agencies and other
foundations

Roles of Leaders of Nonprofits Organization

Recipients

Donor

Nonprofit
organization
Individual donors
Members
Foundation monies
Governmental grants
Other contribution

LEADER

Individuals
Members
Communities
Other organizations

Roles of Leaders of Nonprofits Organization

Leader must rely on participatory leadership to build consensus

To allocate the resources, such as donations and grants
Strong ethical value
Motivating and inspiring the followers
Finding and training future leaders

Leading Change : Kavita Ramdas

CEO of the Global Fund for Women

Help women achieve full equality
and participation worldwide
Ramdas is tireless and passionate
advocate
Strong presence and persuasive
skills

CONCLUSION
Themes about top management characteristics

Leader degree of challenge seeking

and preference for risk and innovation
Leaders need for control over the organization
Combination of these two themes
Strategic Leaders
HCI
SQG
PI
PM

Direct
Decision

Allocation
of resources

Rewards

Setting of
norm and
modeling

Gain power and influences

CONCLUSION
Leading the nonprofit organization
Leaders need a particular emphasis

building relationship and trust

to develop future leader

THE END

Q&A