Lecture 1

Who Is A Leader?

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Agenda
• The need for leadership
• Defining leadership
• 5 key elements of leadership
• 10 managerial roles
• Four leadership theories
• Managing vs. Leading

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 Businesses in Today’s Global Economy
Face Unique Challenges
• Interdependence
• Matrix organizations
• Increased complexity of execution
• Shifting capital and investments
• Demands for growth
• Requirements for innovation
• Rising expectations of workers
• Heightened level of risks

Mercer Delta ELC:

Global Leadership Imperative (2006)
• Respondents identified their most pressing
business challenges looking forward:
• A global survey of 200+ senior executives from
large corporations across 17 industrial sectors
– Competitive pressures
– Rapidly changing market conditions
– The need for innovation
– Increasing customer expectations

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 McKinsey Global Institute:
The global company’s challenge (2012)
• Respondents identified their most pressing global
challenges
• A global survey of 300 executives at 17 of the
world’s leading global organizations spanning a
diverse range of sectors and geographies, a
broader survey of more than 4,600 executives
– Strategic confidence and stretch
– People as an asset and a challenge
– Scale and scope benefits, complexity costs
– Risk diversification and the loss of familiarity

Forbes Councils (2020)

• Respondents identified their greatest challenges
• Forbes Councils - the collective of exclusive
communities for leading executives and
entrepreneurs
– Generating Revenue (26%)
– Time (22%)
– Leadership (19%)
– Growth/Strategy (18%)
– Marketing (17%)

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 Business Challenges
• They will constantly change as the result of
global and local trends and forces
• Capturing tailwinds created by industry and
geographic trends is a pivotal contributor to
business results
– four to eight times more likely to rise to the top of
the economic profit performance charts than one
that is facing headwinds.

Why Leadership is Important

• For successful management
• For organizational performance
• For employee job satisfaction
• For crisis situations
• For present and emerging business challenges

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 Who do you think are leaders?

Head, Heart, and Guts

• Get me more leaders who are smart, have
good people skills, and have the courage of
their convictions.

—CEO of Fortune 100 company

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 Defining Leadership

http://www.youtube.com/watch?v=f60dheI4ARg

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Defining Leadership

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 Defining Leadership
• What is leadership?
– Process of intended influence through motivation
– Leadership is the influencing process of leaders
and followers to achieve organizational objectives
through change (Lussier & Achua, 2015)
– Leadership is a process whereby an individual
influences a group of individuals to achieve a
common goal (Northouse 2018)
• Leadership performance: Behavioral construct
– what people do to influence

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Defining Leadership
• Leadership is a process
– Transactional and interactive event between the
leader and followers
• Leadership involves influence
– Behaviors of leadership
• Leadership occurs in groups
• Leadership involves common goals

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 Leader Emergence vs. Leader
Effectiveness
• Leader emergence:
– Characteristics of individuals who become leaders:
basis upon which they were elected, appointed, or
simply accepted
• Leader effectiveness:
– Behaviors that lead to an outcome valued by the
organization
• Not all people who emerge as leaders are
effective leaders (Judge et al., 2002)

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Are leader born or made?

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 Trait Approach to Leadership
• Attempt to explain
distinctive characteristics
accounting for leadership
effectiveness to identify a
set of traits that all
successful leaders
possess

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Skill Approach to Leadership

• Attempt to explain
leadership effectiveness
base on knowledge,
skills, and abilities
possessed by that can
be learned and
developed.

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 Behavioral Approach to Leadership
• Attempt to explain
distinctive styles used
by effective leaders, or
to define the nature of
their work

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Situational Approach to Leadership

• Attempt to explain
the appropriate
leadership style
based on the
leader, followers,
and situation.

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 Trait vs. Process Leadership
• A property or set of properties possessed in
varying degrees by different people
– Innate or reside within a person, not observable
and cannot be trained
• A phenomenon that resides in the context of
the interactions between leaders and followers
and makes leadership available to everyone.
– Reside in the context, observable and can be
trained (Jago, 1982)

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Assigned vs. Emergent Leadership

• Assigned leadership: Leadership based on
occupying a position in an organization
• Emergent leadership: Leadership based on the
support and accept of individual behaviors,
personality, or identity by people in the
organization, emerging over time through
communication.

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 Leadership and Power
• Power is the capacity or potential to influence.
– Referent
– Expert
– Legitimate
– Reward
– Coercive
– Information
• Power-based leadership is dismissing and shifting
to followers due to societal and technological
changes

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Leadership and Coercion

• Coercion involves the use of force to effect
change.
– Against followers’ will
– Threats, punishments, penalties and rewards
– Not effective kind of leadership

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 Leadership and Management
• People argued that the paradigm has shifted
from Management to Leadership!
• Do you agree?
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Leadership vs. Management
Management
Creating an Agenda Planning and Budgeting
Details, timetables, resource
allocation
Developing an Organizing and Staffing
Organization Structure, roles, policies,
procedures, and systems
Execution Controlling and Problem
Solving
Monitoring results, identifying
deviations, organizing solutions,
focusing on task
Outcomes Predictability and Order
Focusing on incremental results
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Leadership
Establishing Direction
Vision, values, purpose, strategy,
and innovation
Aligning People
Communicating direction,
influencing, creating teams and
coalitions
Motivating and Inspiring
Energizing people, overcoming
barriers (political, bureaucratic) to
change, focusing on people
Change
Often in the form of dramatic, new
products, programs, processes,
behaviors
 Leading and Managing

Roller coaster of
change initiatives;
Sustainable growth,
bursts of energy,
innovation &
growth & innovation;
execution
loss of control &
rapid meltdown

Predictability,
resistance to change,
Deathbed compliance,
strangulation of
innovation

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How are Vietnamese companies

managing vs. leading?

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