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Steve Jobs Analysis
Steve Jobs Analysis
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Charismatic leaders are precious commodities in any organization who are perceived as
exhibiting magnetic tendencies. They have the ability to lure followers and have outstanding
persuasive skills. This charismatic trait manifests in their good communication skills,
The subject of charismatic leadership has gained attention in various fields the reby leading
to formulation of theories. Some researchers have opined that charismatic leaders possess
certain personality traits which create a quality known as charisma while others believe the
This research report will attempt to analyze a leader with a view to determining whether or
not his leadership qualities and behaviour coincide with charismatic leadership theories. The
leader chosen for this purpose is Steve Jobs who is th e co-founder, Chairman and Chief
The charismatic leadership theories to be used are the behavioural theories of House (1977)
and Conger and Kanungo (1986). The research report is relevant because it seeks a linkage
The research will be divided into four sections. In Chapter 2, a review of the literature is
carried out, looking at the leader as an entrepreneur and theories of charismatic leadership.
Chapter 3 goes on to examine exc erpts from Steve Jobs¶s business life where he displayed
leadership behaviour and qualities. Chapter 4 attempts to discuss the extent to which Steve
Jobs correlates with the theories, gaining an insight into how the leadership instances reflect
the theoretical statements. Finally, in Chapter 5 some conclusions are drawn as to findings
in the analysis. The research project utilizes secondary data sources such as books and
LITERATURE REVIEW
1.0 LEADERSHIP
Leadership has been defined by Northouse (2010, p.3) as ³a process whereby an individual
influences a group of individuals to achieve a common goal´. Similarly, Stogdill¶s 1950 study
(Parry & Bryman 2010, p.447) considers leadership to be ³the process (act) of influe ncing
the activities of an organized group in its efforts toward goal setting and goal achievement´.
Mullins (2007, p.363) sees leadership as a ³relationship through which one person
association occurring between the leader and the led (followers) in the course of working
towards a common objective. However, the leader exerts influence which is indispensable to
Growthink (2010) defines leaders hip as a process through which an entrepreneur is able to
build trust and confidence among employees and communicate effectively with them.
possessing technical skills, accepting responsibility for action, making good and timely
Weber (1974) defines charisma as a spec ial personality trait that gives an individual
superhuman power. Additionally, It is reserved for a select few and ultimately results in the
possesses charismatic personality traits which are exhibited in specific behaviours. These
According to House (1976, p.11), personality traits of a leader who has charismatic effects
on followers include ³dominance and self -confidence, need for influence, and a strong
In addition to exhibiting certain personality traits, charismatic leaders also display specific
types of behaviour according to House (1976). First, they ³behave in the manner in which
they want their followers to behave´ (being role models). Second, they are ³likely to engage
followers). Third, they articulate a ³transcendent¶ goal which becomes the basis of a
movement or cause. Such a goal is ideological rather than pragmatic and is laden with moral
subordinates and exhibit confidence in their ability to meet such expectations´. Finally, they
³engage in behaviours that arouse motives relevant to the accomplishment of the mission´.
The behaviours may include uplifting talks and emotional appeals (Ba ss, 1985).
House (1976) also hypothesizes that in a situation which involves stress or crisis, followers
will likely turn to an individual possessing vision, confidence and a strong sense of moral
conviction to guide them through the situation. Harvey (200 1) reckons charismatic leaders
for future research into the subject of leadership in organizations (House, 197 6). Therefore,
this encouraged the introduction of the attribution approach to the charismatic leadership
theory.
Conger and Kanungo (1987) advocated the attribution approach to the charismatic
leadership theory by asserting that charisma is ³an attributi onal phenomenon´. In essence,
charisma is seen as an attribution made by followers when they observe expressions of
certain charismatic qualities or behaviours in the leader (Conger and Kanungo, 1987)
The behavioural components responsible for such attribu tion are ³inter -related´ according to
Conger and Kanungo (1987, pp.640 -644) and includes: presenting an idealized, µhighly
significant personal risk, loss or sel f-sacrifice to achieve a vision; demonstrating expertise in
personal power over followers (expert and referent); acting as reformers or agents of radical
changes.
Parry & Bryman (2010, p.451) reveal charismatic leadership theory, as part of the ³New
Leadership´ approach, focuses research on ³very senior leaders´ rather than ³low - to middle-
level leaders´.
Yukl (1999:8) believes charismatic leadership theories reveal a prejudice towards heroic
leadership. In his view, researchers wi th this bias strive to identify qualities that increase
leader influence over subordinates without describing how the same qualities can be both a
strength and a weakness for a leader. As an example, ³expressing strong convictions, acting
confident and tak ing decisive action can create an impression of exceptional expertise, but it
Along with Steve Wozniak and others, Steve Jobs founded Apple Inc in 1976 . Wozniak, an
electronic genius, had built his own personal computer but had little interest in selling it. Jobs
persuaded him to market the product and together they started Apple Computer Inc
(Kahney, 2008).
Having resigned from Apple in 1985 after losing a power tussle, Jobs founded NeXT
Computers and acquired the computer graphics division of Lucasfilm Ltd, later christened
Pixar, a successful venture, was acquired by the Walt Disney company in 20 06 while NeXT
Computers was bought by Apple. Returning to Apple, Jobs became CEO in 1997 and has
Steve Jobs owes everything he learned about electronics to Heathkits which were popular
kits for building electronics (Kahney, 2008:196). Jobs said the kits ³gave a tremendous level
Kahney (2008) believes creating easy -to-use technology for people was Jobs¶s goal. In 1979
Steve Jobs recognized that the graphical user interface (GUI) would be the standard for
computer navigation. While touring the Xerox Palo Alto Research Centre, he encountered
the first computer built with this technology and later remarked, ³Within ten minute s, it was
obvious that all computers would work like this someday´ (Kahney, 2008:194).
Jobs communicated this idea passionately to the small team of talented people working on
the Macintosh computer convincing them that the GUI was going to revolutionize c omputing.
He motivated them by insisting that they were doing ³nothing less than God¶s work´ and are
The ability to impress and attract people is a trait synonymous with Steve J obs. His charisma
has been described as a gift bestowed by nature (Young and Simon, 2006:1). He is a
one-on-one (when on his best behaviour)´ (Young and Simon, 2006). K ahney (2008:39)
believes Jobs is ³a master at conceiving and helping to create innovative new products.´
Steve Jobs is responsible for introducing new products to the world. Moisescot (2010) calls
him the company¶s ³ultimate salesman´ due to his persuasive and charming abilities. The
³reality distortion field´, a term coined by Apple engineer Burrell Smith describes Steve¶s
Jobs is highly passionate about his work so much so that he is known to pore over the
smallest of detail. His insistence on making products customer -friendly results in an endless
compromise ethos (Kahney, 2008). During the development o f the iPod music player, Jobs
³stayed close to the project all the way....his flawless taste in design shining through in his
rigorous-as-ever demands for the highest standards´ (Young and Simon, 2006:278).
Steve Jobs relishes working with a small team of talented people (Young and Simon,
2006:120). Kahney (2008:108) defines Jobs as an ³elitist who believes that a small A team is
On his return to Apple in 1997, the company was in crisis. It reporte d a loss of $69 million
and dismissed 1,300 staff in the first quarter of 1996 (Kahney, 2008:17). After the board lost
confidence in the incumbent CEO, Jobs agreed to take over on a temporary basis.
making four products excellently (Kahney, 2008). Under Jobs¶s guidance, Apple witnessed
increased sales and made $45 million profit in the last quarter of 1997 (Moisescot, 2010). He
also discontinued development of the Newt on Personal Digital Assistant (PDA) believing ³it¶s
Steve Jobs is known to use his persuasive and charming abilities to inspire and motivate his
team to achieve. ³He sometimes insists on things that are seemingly impossi ble, knowing
that eventually even the thorniest problem is solvable´ (Kahney, 2008:161). Sculley
knowing exactly how to extract the best from people.´ He could also berat e employees and
become overly critical. Jobs is ³no pussycat when dealing with underlings. He knows what
he wants, and he¶ll throw a fit to get it´ (Kahney, 2008:151). Sculley (1987) acknowledges
that Jobs ³pushed them (the workers) to their limits, until even they were amazed at how
Since his return to Apple, Jobs has shunned corporate attire, opting for informal attire when
interacting with the public. Gupta (2010) believes this ³subtly eliminates the perception of
being at higher level than the audience....his closeness with customers enhances his
His foray into computer animation with the acquisition of Pixar initially looked foolish. The
company was failing and Jobs ³propped up the struggling company for a decade with $60
million of his own money´ (Kahney, 2008:8). According to Moisescot (2010) the company
was unprofitable in its early years operating at a loss of more than $8 million. As a result,
In 2003, Jobs persuaded five major music labels at the time to try selling songs individually
for 99 cents (Kahney, 2008:183). This led to the birth of the successful iTunes store.
Jobs also took an active role in th e development of innovative retail strategies for selling
Apple computers. In violation of standard practice, the retail stores had ³diminutive size and
non-aggressive sales team´ (Hormby, 2008). Kahney (2008) says the stores have been
called ³experiential innovation´ because they are different from anything else in retailing.
ANALYSIS
House (1976) identifies personal characteristics of leaders who have charismatic effects on
a control freak, who desires to influence others (Kahney, 2008). As a young child, Jo bs
became fascinated by Heathkits ± popular kits that demystified electronics. He recalled the
experience gave a ³tremendous level of self -confidence´ because the inner workings of
introducing the newest Apple products to the public. His need or desire for influence is
evident when he aspires to control every detail of the employees wor k making endless
revisions (Kahney, 2008). While working on the Macintosh computer, Jobs appears to
communicate his conviction that it would revolutionize computing to his team members. He
convinced his team they were privileged to be designing a groundbre aking product and were
doing ³nothing less than God¶s work´ (Kahney, 2008:153). He may have convinced his team
Furthermore, House (1976) hypothesizes the six behaviours of charismatic leaders as role
communication of high expectations for followers and exhibition of confidence in their ability
to meet such expectations and finally behaviours that arouse motives relevant to
Steve Jobs seems to be a role model to his followers by expecting them to be as committed
and passionate about their work as he is. A demanding executive, Steve Jobs expects
first but eventually become feasible (Kahney, 2008:161). He motivates by being persuasive
on one hand and overly critical on the other (Kahney, 2008:151). Rather than express
confidence in the employee¶s ability to do the job, he ³pushes them to their limits´ (Sculley,
1987). He appears to arouse the enthusiasm of the Macintosh team convincing them that
³they were in a unique position to change the face of computing´ (Kahney, 2008). Such
persuasive behaviour seems relevant to the a ccomplishment of the task. The vision of Steve
Jobs is to make easy-to-use gadgets for the widest possible audience (Kahney, 2008:7). He
Steve Jobs creates an impression of competence by being the public face of Apple. He
introduces new products to the world for which he spends weeks in preparation. He also is
adept at visualizing and helping to create innovative new products (Kahney, 2008:39).
Conger and Kanungo (1987) presents the behav ioural components attributed by followers in
followers; engaging in acts perceived by followers as involving significant personal risk, loss
expression of motivation to lead; exertion of personal power (expert and referent) over
Steve Jobs goal or dream is to make available easy -to0use technology to people (Kahney,
2008:7). This is evident in the development of the Macintosh computer with Jobs envisioning
that they were creating something revolutionary (Kahney, 2008:152). The vision appears to
be idealist since the Macintosh had flaws and failed to meet expectations (Moisescot, 2009).
In 1990 befo re Pixar became a success, Steve Jobs poured $60 million of his personal
money into the company to no avail (Kahney, 2008:8). This can be viewed as an act
involving significant personal risk or loss. Jobs would later express doubts about buying
the existing order. In 2003, he developed an innovative business model by persuading the
five major music labe ls at the time to try selling songs individually for 99 cents (Kahney,
2008:183). This led to the birth of the successful iTunes store. Jobs also took an active role
in the development of the innovative Apple retail stores. In violation of standard practic e, the
retail stores had ³diminutive size and non -aggressive sales team´ (Hormby, 2008). Kahney
(2008) says the stores have been called ³experiential innovation´ because they are different
Shunning corporate outfit, Jobs pr esents new products to, and generally interacts with, the
Steve Jobs may have been sensitive to changes in the environment. Kahney (2008)
observed he was right to discontinue de velopment of the Newton Personal Digital Assistant
Articulation of a vision in clear specific terms may not be associated with Steve Jobs. He
rather sets out his vision broadly saying he wants to create ³e asy-to-use computers´ for ³the
widest possible audience.´ He expresses and communicates his motivation to lead by being
Steve Jobs appears not to exert referent and expert power over his team members all of the
time. He seems to utilize coercive means along with referent power because some team
members work hard to gain his attention and approval by virtue of his vision (Kahney, 2008).
Steve Jobs appears to act as a reformer or a n agent of radical change when he returned to
Apple and introduced swift changes including stripping the product line to just four.
CONCLUSION
The study has shown that Steve Jobs is a leader whose leadership qualities and behaviour
mostly correlate with the behavioural charismatic leadership theories of House (1977) and
Conger and Kanungo (1987). Steve Jobs is a leader who desires to be dominant, has high
levels of self-confidence and a high need for influence. He also has strong conviction in his
beliefs.
He demands that his followers mirror his passion and commitment to the job and displays
competence in various situations. Steve Jobs demands high performance expectations for
subordinates and engages in behaviour that stimulates the reason for goal accom plishment.
Further, he is a visionary who takes massive risks and is unconventional in his methods. He
is a persuasive communicator and has instituted radical changes in the way products are
This research has looked at leadership in stances in Steve Jobs¶s business life juxtaposed
Steve Jobs may have exhibited low level of confidence in employee ability to carry out the
job, pushing the workers hard until they delivered. His leadership style may not be received
well in some quarters raising questions about likeability and emulation. He certainly served
The exploration of the leadership b ehaviour of Steve Jobs need not end with this study.
Future research can further enrich this topic for instance by including primary data.
REFERENCES
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