Marcio Carvalho Aamer Abualula TJ Murphy Leadership Evolution

Marcio Carvalho Aamer Abualula TJ Murphy Leadership Evolution Inc. Joel Damitier Andrew Ricci

Topics of Discussion Paternalistic Transactional Transformational Leadership Styles

Paternalistic Leadership

Basic Information “Pater” means father in Latin Leaders show aspects of a “father figure” Primitive way of creating a hierarchy Illustrate, guide, & support employees to succeed Employees are not pawns Avoid negative situations

Advantages & Disadvantages Advantages § Two way conversations § Considered real people, not just robot workers § Ensures employee and organizations needs are met § Increased loyalty Disadvantages § Dictatorial or autocratic § Dependency on the leader § If leader makes mistake, employees feel let down § Less independent thinking among employees

Ethan A. Winning Ø Lack of consistency Ø Over-staffing Ø Over-compensation Ø Poor performance Harry Levinson Ø "that kind of management that does for people what ideally they should do for themselves. "

Popular in the past Now new methods take preference in workplace

Decision Making Consults with employees about ideas Rewards for good thoughts Leader makes final decision in best interest of employees Explains final decision to employees

Maslow's Hierarchy of Needs Give attention to social needs of employees Make sure workers are happy & satisfied

Henry Ford Henry Ford (original founder of Ford Motors) - known for running company using paternalistic leadership Treated workers with care and respect viewed as father figure Raised daily salary from $2. 34 a day to roughly $5. 00 a day workers satisfied and worked at greatest potential Increase in pay based 100% on what he believed was the correct thing to do without taking anyone else’s ideas or strategies “Tunnel Vision” – reluctance of an individual to consider alternatives to their preferred line of thought “The problem was that for too long they worked on only one model. Although people told him to diversify, Henry Ford had developed tunnel vision. He basically started saying "to hell with the customer, " who can have any color as long as it's black. ” – Lee Iacocca, former President of Ford and chairman of Chrysler

Developed a Sociological Department for workers limited spending of $5. 00/day salary Workers had no input on decisions within Ford Motor Company Failure to acknowledge ideas of others “Father figure” approach caused workers to feel as if they were children rather than adults who were part of the company 1941 - Paternalism led to a Dictatorship resulting in a labor strike Ford’s son took over and changed the leadership style from paternalism/dictatorship to servant leadership

Transactional Leadership

Assumptions People are motivated by reward and punishment Social systems work best with a clear chain of command When people have agreed to undertake a job, part of the deal is that they give all authority to the manager/leader Prime purpose of subordinate is to do what the manger tells them to do

Style Leader creates clear structures where it is clear what is required of the subordinates Punishments are not always mentioned but are wellunderstood & formal systems of discipline are usually in place Early stage – negotiating the contract where the subordinate is given a salary/benefits, and the company gets authority over the subordinate When assigned a task, subordinate is fully responsible for it Transactional leaders often use management by exception

Discussion Leadership based on contingency – reward/punishment is contingent upon performance Leadership vs. Management – leans more towards the management side Popular among people who are highly motivated by money and simple rewards behavior seen to be predictable When not to use - demand for a skill exceeds the supply

Types of Transactional Leaders Opinion Leaders Ø Individuals that are thought to be in touch with public opinion Group Leaders Ø Referred to as bureaucrats & bargainers Ø “You give me good results and I will give you more money” Ø Can be granted leadership status by the position they hold in an organization (ex. group manager, group supervisor) Governmental/Party Leaders Ø Political leaders that represent a particular party (ex. Democratic or Republican) Ø Always looking to protect their own interests Legislative Leaders Ø Engage in bargaining, reciprocal exchanges, and political payoffs Executive Leaders Ø Able to transcend party lines & use own personal power & popularity to gain support Ø Do not rely on political party’s power they belong to – rely on connection with people they represent Ø Use press conferences to manipulate others

Transactional & Gender Women Ø more focused on the rewards component Ø seen to exceed men when it came to the positive aspects of a leadership style women always won when it was GOOD to WIN Men Ø more focused on the punishment aspects Ø seen to exceed women when it came to the negative attributes men always won when it was BAD to WIN

Examples Parents & Children § Punishments - being grounded, not watching TV or using the phone, etc. § Rewards – later curfew, greater privileges (phone, car), etc. Tamers & Animals (dogs, cats, etc. )

Transformational Leadership

What is it? Style best defined as leadership that creates valuable and positive change in its followers. A transformational leader focuses on "transforming" others to help one another, to look out for each other, to be encouraging and harmonious, and to look out for the organization as a whole. In this leadership, the leader enhances the motivation, morale and performance of its follower group.

History James Mac. Gregor Burns (1978) - first person to introduce concepts of transformational leadership in his descriptive research on political leaders Bernard Bass (1985) - later enhanced theory According to Burns, the transformational style creates significant change in the life of people and organizations

Style Builds on strengths (may have lain dormant) of others Leaders raise levels of awareness about issues of consequence and ways of reaching organizational goals Enable people to transcend their own self-interest for the sake of others Leaders change reality by building on the human need for meaning focus on values, morals and ethics. They are proactive and encourage human potential. Goal = transform people and organizations; enlarge vision, insight and understanding; clarify purposes; make behavior congruent with beliefs, principles, or values; bring about changes that are permanent, selfperpetuating, and momentum building

Qualities Charismatic Confidence Respect and loyalty Expressive praise Inspiration Working Toward

Characteristics • • • Strategic thinker Ability to empower others Initiative Positive mental attitude Visionary Encouraging human potential Willingness to change Ability to handle conflict Effective communicator Skilled Motivator Ability to inspire trust Ability to gain commitment • Clear sense of purpose • Value driven • Strong role model • High expectations • Persistent • Self-knowing • Effective communicator • Emotionally mature

Model

Transformational Leaders Are: constantly looking into the future for new possibilities changers of context (change people's frame or thinking so that they see new opportunities that were noticed before) stand-up for, speak to, and hold the organization accountable to its vision and mission creators of new organizational capabilities (not just competencies) always wanting the organization to be different, unique, and exceptional working to build organizations that are more self-managing not just foreground heroes, but also work quietly and humbly in the background to put the right people, purpose, and processes in place in the organization inspire others to reach their potential in the context of the work that needs to be done to achieve the organization’s vision and mission

Advantages & Disadvantages Advantages Disadvantages § Higher commitment , effort, performance and job satisfaction of followers § Lower levels of stress and burn out § Greater employee innovation, harmony & good citizenship § Improve performance of organization § Passion and confidence can be mistaken for truth and reality § The energy that gets people going can also make them give up § Leaders may get frustrated if organization does not need transforming

Examples Martin Luther King Jr. John F. Kennedy

Transactional vs. Transformational What distinguishes transformational leaders from transactional leaders? They identify themselves as change agents – these leaders make a difference and transform the organization for which they have assumed responsibility They are courageous individuals – they are able to take a stand, able to take risks and able to stand against the status quo in the larger interest of the organization They believe in people – they are not dictators. They are powerful yet sensitive to other people, and ultimately work towards the empowerment of others They are value-driven – they are able to articulate a set of core values and exhibit behavior that is quite congruent with their value positions They have the ability to deal with complexity, ambiguity and uncertainty – they are able to cope with and frame problems in complex, changing world They are visionaries – they are able to dream, able to translate those dreams and images so that other people can share them

Any Questions?

Bibliography Niu, Chun-Pai, An-Chih Wang, and Bor-Shuian Cheng. “Effectiveness of a moral and benevolent leader: Probing the interactions of the dimensions of paternalistic leadership. ” Asian Journal of Social Psychology 12. 1 (2009): 32+. Academic One. File. Web. 16 Nov. 2009. <http: //find. galegroup. com/gtx/start. do? prod. Id=AONE&user. Group. Name=wit_main>. “Paternalism and Business: They Exist, But Do They Mix? ” Management and Human Resource. Consultants. Web. 18 Nov. 2009. <http: //www. ewin. com/articles/paternal. htm>. Bjerke, Bjorn. Business Leadership and Culture National Management Styles in the Global Economy. London: Edward Elgar Pub, 2001. Print. Series, Jossey-Bass Management. Business Leadership A Jossey-Bass Reader. San Francisco: Jossey-Bass, 2003. Print.