Economics for Future Leaders

1. Economics for Future Leaders Lecture 2 - Principles of Leadership, June 27, 2012

2. Being a Leader • What does it take to be a leader? • Defining leadership. • In the leadership literature, more than 100 different definitions of leadership have been identified. • Despite the many definitions, a number of different concepts are recognized by most people as accurately reflecting what it is to be a leader.

3. Being a Leader • “Leadership is a trait.” • Defining leadership as a trait means that each individual brings to the table certain inherent qualities that influence the way she or he leads. • Confidence; decisiveness; outgoingness or sociability. • Despite the elitist overtone, all of us are born with unique traits that can influence leadership, and some traits can be changed. • “Leadership is an ability.” • The leader has the capacity to lead. • The capacity can be innate, but it also can be learned.

4. Being a Leader • “Leadership is a skill.” • Leadership is a competency developed to accomplish a task effectively. • Leaders know the means and methods for carrying out their responsibilities well. • “Leadership is a behavior.” • Leadership is what leaders do. • Two types of leadership behavior. • Task behaviors – Used by leaders to get the job done. • Process or relationship behaviors – Used by leaders to make other group members at ease with each other and with the task.

5. Being a Leader • “Leadership is a relationship.” • Leadership is communication and collaboration between leaders and followers. • A strong interrelational and ethical component.

6. Global Leadership Attributes • The GLOBE (Global Leadership and Organizational Behavior Effectiveness) Studies. • Surveys of 17,000 managers in 62 countries.

7. Positive Leader Attributes Trustworthy Foresighted Positive Builds confidence Intelligent Win-win problem solver Administratively skilled Excellence oriented Just Plans ahead Dynamic Positive Leader Attributes Motivational Decisive Communicative Coordinator Honest Encouraging Motivator Dependable Effective bargainer Informed Team builder Global Leadership Attributes

8. Global Leader Attributes • Negative Leader Attributes • Loner • Irritable • Ruthless • Asocial • Non-explicit • Dictatorial • Non-cooperative • Egocentric

9. Practicing Leadership • When people ask for leadership, it is not always clear exactly what they want. • What they want is effective leadership: • Intended influence that creates change for the greater good. • Leaders who listen to and understand their needs and who can relate to their circumstances.

10. Recognizing Your Traits • Historical Leaders: What Traits Do They Display? • George Washington (1732-1799). • Modesty, moral character, well read, bravery, tenacity, stability, prudence. • Harriet Tubman (c. 1820-1913) • Symbol of hope, single-mindedness, lack of fear, determination, focus, spirituality, strength, lack of pretension, practicality. • Eleanor Roosevelt (1884-1962). • Conflict management, listener, plain speaker, honesty, selflessness, tolerance, deep sense of humanity, optimism.

11. Recognizing Your Traits • Historical Leaders: What Traits Do They Display? • Winston Churchill (1874-1965). • Well-read, plain speaker, decisiveness, detail orientation, well informed, ambitious, master of language, stoicism, optimism • Mother Teresa (1910-1997). • Simplicity, determination, fearlessness, spirituality, humility, strong-willed.

12. Recognizing Your Traits • Historical Leaders: What Traits Do They Display? • Nelson Mandela (1932-). • Conscience, self-reflection, sense of morality, unwavering commitment to principles, self-discipline, consensus builder, courage, patience, humility, and compassion.

13. Recognizing Your Traits • Historical Leaders: What Traits Do They Display? • Bill Gates (1954-). • Intelligence, vision, task orientation, diligence, focus, aggressiveness, simplicity, straight-forwardness, lack of pretension, and altruism. • Oprah Winfrey (1954-). • Excellent communicator, intelligent, well-read, strong business sense, sincerity, determination, inspiration, charisma, spontaneity, openness, expresssiveness.

14. Recognizing Your Traits • What traits do effective leaders exhibit? The research is not crystal clear; however, the following seem to be most relevant. • 1. Intelligence. • Includes good language skills, perceptual skills, and reasoning ability. • While one cannot improve native intelligence, one can make the most of native abilities. • Key element for improving intelligence: keeping informed.

15. Recognizing Your Traits • 2. Confidence. • Confident people feel self-assured and believe that they can accomplish their goals. • How to build confidence: Knowing what to do, mentoring, practice. • 3. Charisma. • Special magnetic charm and appeal. • How to do you show charisma? • Strong role model. • Show competence. • Articulate clear goals and strong values. • High expectations of followers and confidence in their ability to achieve them.

16. Recognizing Your Traits • 4. Determination. • They know where they are going and how to get there. • Display initiative, persistence, and drive. • The key component is perseverance. • 5. Sociability. • Capacity to establish pleasant social relationships – friendly, outgoing, courteous, tactful, and diplomatic. • Sensitive to others and showing concern for their well-being.

17. Recognizing Your Traits • 6. Integrity. • Characterizes leaders with integrity and trustworthiness. • Strong set of principles and taking responsibility for one’s actions. • Integrity underpins all aspects of leadership.

18. Philosophy and Style of Leadership • Human nature and leadership • Theory X (Directive and controlling leadership). • People dislike work. • People need to be directed and controlled. • People want security, not responsibility. • Theory Y (Supportive leadership). • People like work. • People are self-motivated. • People accept and seek responsibility.

19. Philosophy and Style of Leadership • Styles of Leadership. • Authoritarian (Example: Glory Road, 2006). • Characteristics: directive, controlling, task-oriented, subjective evaluation (Theory X). • Outcomes: efficient, productive, but also dependence, submissiveness, and loss of individuality. • Democratic (Example: School of Rock, 2003). • Characteristics: supportive, two-way communication, informative, guiding (Theory Y). • Outcomes: satisfaction, cohesion, commitment, group-mindedness, motivation, creativity, participation, somewhat less efficient, and more time consuming. • Laissez-Faire (Example: Office Space, 1999). • Characteristics: hands-off, unguided, non-leadership. • Outcomes: low accomplishment, chaotic working environment, low morale.

20. Tasks and Relationships • Task-oriented style. • Goal-oriented, achievement-oriented, doing things. • Initiating structure, production orientation. • Doing something to achieve group goals. • Relationship-oriented style. • Person-oriented, connection-directed, being with people. • Consideration behavior, employee orientation, concerned for people. • Treating followers with dignity, building relationships and helping people get along, and making the work setting a pleasant place to be. • Good leaders are both.

21. Leadership Skills • Administrative skills. • Managing people. • Managing resources. • Showing technical competence.

22. Leadership Skills • Interpersonal skills. • Being socially perceptive. • Showing emotional intelligence. • Awareness of own emotions. • Awareness of others’ emotions. • Regulation of one’s own emotions and put them to good use. • Handling conflict. • Differentiation (define the nature of the conflict and clarify positions). • Fractionation (break down large conflicts into smaller, more manageable ones). • Face saving (preservation of each other’s self-image during a conflict).

23. Leadership Skills • Conceptual skills. • Problem solving. • Identify the problem. • Generate alternative solutions. • Select the best solution. • Implement the solution. • Strategic planning. • Ability to learn. • Capacity to adapt. • Managerial wisdom. • Creating vision. • Challenge people with compelling visions of the future.

24. Leadership Question #2. • Of the three sets of leadership skills discussed in this lecture (administrative, interpersonal, and conceptual), what set of skills comes easiest for you? What set of skills comes hardest? Describe how people respond to you when you use these skills.