LP-3

Ch 5-7 Vision and Motive to Lead Describe and discuss Leadership Decisions of far reaching consequences Collect Assign-1

DESCRIBE AND DISCUSS LEADERSHIP DECISIONS OF FAR REACHING CONSEQUENCES

UBS chief executive Oswald Gruebel has resigned over a $2.3 billion rogue trading loss RAMALLAH, WEST BANK Two days after seeking full membership for a state of Palestine in the United Nations, Mahmoud Abbas, the President of the Palestinian Authority, returned here on Sunday to a heros welcome. King Abdullah of Saudi Arabia on Sunday granted women the right to vote and run in future municipal elections, the biggest change in a decade for women in a puritanical kingdom that practices strict gender separation, including banning women from driving. IMF DG --- Ms. Lagarde --- European banks were not as sheltered from this storm as they might seem. Pakistan ----- USA blames Pakistan Army and ISI for aiding and abetting terrorists harming US Forces and Interests in Afghanistan

(GENEVA) UBS chief executive Oswald Gruebel has resigned over a $2.3 billion rogue trading loss, the bank said Saturday. The move ends days of speculation about whether Gruebel could retain his position following the latest scandal to hit Switzerland's biggest bank. UBS Europe chief Sergio P. Ermotti will take over immediately as interim chief executive until Gruebel's replacement is appointed, the bank said in a statement. (SEE HOW UBS CAN BOUNCE BACK FROM THE TRADING SCANDAL.) UBS's president Kaspar Villiger said the board regretted Gruebel's decision to resign but had decided to accept it. "Oswald Gruebel feels that it is his duty to assume responsibility for the recent unauthorized trading incident," Villiger was quoted as saying in the statement. "It is testimony to his uncompromising principles and integrity. London-based UBS trader Kweku Adoboli was arrested last week and charged with fraud and false accounting for the $2.3 billion loss. A judge ordered him Thursday to be held in jail until a hearing next month. Villiger said Gruebel, who was brought in more than two years ago to help revive the fortunes of the Zurich-based bank, had achieved "an impressive turnaround and strengthened UBS fundamentally." "He steps down having helped make UBS one of the world's best capitalized banks," Villiger added.
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RAMALLAH, WEST BANK

Two days after seeking full membership for a state of Palestine in the United Nations, Mahmoud Abbas, the president of the Palestinian Authority, returned here on Sunday to a heros welcome. He told his supporters that they were part of a Palestinian Spring and that he would resume peace talks only if Israel froze settlement building. On Friday 23 Sep11, the United States, the United Nations, Russia and the European Union known together as the Quartet urged the Palestinians and Israelis to return to direct negotiations within one month without preconditions. Since that call is close to the Israeli position, Israeli leaders welcomed it. 4

King Abdullah of Saudi Arabia

Granted women the right to vote and run in future municipal elections, the biggest change in a decade for women in a puritanical kingdom that practices strict gender separation, including banning women from driving. Saudi women, who are legally subject to male chaperones for almost any public activity, hailed the royal decree as an important, if limited, step toward making them equal to their male counterparts. They said the uprisings sweeping the Arab world for the past nine months along with sustained domestic pressure for womens rights and a more representative form of government prompted the change.
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IMF DG --- Ms. Lagarde had gone independent

In the few short months since becoming the first woman to lead the I.M.F., Ms. Lagarde had taken her former European colleagues to task for not speaking with a single voice to save the euro. In speech after speech, she had warned that the austerity that Europe was pressing on Greece and its debt-weakened neighbors was choking economic growth and needed to be tamed. Worse, as far as the men seated in the room were concerned, Ms. Lagarde was partly responsible for the collapse of confidence bedeviling the financial markets. For she had dared to state what none of them would admit publicly: that European banks were not as sheltered from this storm as they might seem. Was this the I.M.F. talking? It was now, under Ms. Lagarde. As the future of the euro hangs in the balance, she is emerging as the European who is willing to speak openly about Europes problems. 6

Ch-5

VISION

The Power of vision

The importance of vision The motive to lead Organizational Climate

THE POWER OF VISION

The best way to predict the future is to create it.
Peter Drucker

The most important function of a leader:

Develop a clear and compelling picture of the future, and to secure commitment to that ideal.

Fords Leadership strategy:

Affect The moving assembly line Make fair payments to workers Ensure Vertical integration

Any other examples:

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VISION AS AN IDEAL
Future orientation Standard of excellence Virtuous condition Quality of uniqueness Ideal image what is and what it should be 3 Questions:
Is the proposed direction a correct one Are the goals so enunciated correct Is this the right time to pursue the goals
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LEADER AS A VISIONARY
When leaders have passion and authority, others are inspired to follow The research has led to three acts:
1. Leader is to recognize the need for change (New vision) 2. Create a clear and positive vision for the future 3. To institute empowering structures and processes to achieve the vision

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LEADER AS A VISIONARY
Taking personal responsibility for initiating change Creating a vision and strategy for the organization Trusting and supporting others

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VISION AND LEADERSHIP

Leadership is important from the boardroom to the shop floor Positions have no relationship to leadership performance Without leadership, organizations falter in times of change Organizational leadership involves interdependence more than individualism Leaders inspire others to take on the tasks of leadership Leadership is contextual 12

THE CONCEPT OF VISIONING Leaders to initiate and provide constant vigilance for creating a vision Be challenging, yet realistic Seek involvement sharing of ideas Encourage comments and reviews Keep communication flowing Allow time for the process to work Demonstrate commitment, follow-through, and concurrent action Maintain harmony
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VISION KEY ELEMENTS Central purpose (reason for existence) Broad goals to achieve the vision Core values to measure the rightness and wrongness of the behaviour How would the stakeholders look at the achievements SWOT analysis Strategic Initiative success factors Tactical plans (projects and short term business plans)
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VISIONING PRINCIPLES
Honor and live the vision as a constitution Encourage new employees to understand and adhere to the vision seek comments Make it constantly visible Create an integrated organization through alignment Review the vision periodically ------?

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VISION EFFECTIVE ONE

It must be developed by leaders Must be communicated to followers and be supported by them It must be comprehensive It must be inspiring

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CH-6 MOTIVE TO LEAD 3 basic motives for leadership

Power Achievement Affiliation

Ex 6-1 page 73

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CH-7 ORGANIZATIONAL CLIMATE Organizations have peculiar attributes:

Strict rituals to handle situations Certain pace and style of working Unspoken taboos Social structures pecking orders etc Habits governing dress, food language etc Norms dealing with utilization of resources

An org is only as strong as its weakest link Organizational climate plays the major role Ex 7-1 page 79 18

PATTERNS OF LEADERSHIP
Exploitative Autocratic and hierarchical with no participation by the members. Benevolence is missing Impoverished Power remains at the top, but members are given occasional opportunities in the DM process. Benevolence, if accompanied by autocracy maintains the organization in good health. Supportive Power resides in leaders but members have confidence in the organization and leaders. Broad spectrum of involvement in DM process. Enlightened People at all levels of organization have high level of freedom to initiate, coordinate, and execute plans. HR related issues are at the lowest ebb.
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BUILDING COMMUNITY IN WORKPLACE

Shared vision Wholeness incorporating diversity Shared culture Internal communications Consideration and trust Maintenance and government Participation and shared leadership Development of younger leaders Affirmation Links with outside groups
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