CONTEMPORARY ISSUES

IN LEADERSHIP
BML 302
TOPIC 3
Introduction To Contemporary Issues
 Contemporary leadership defined
• The desire to understand, define, and describe the essence of leadership has
interested researchers and scholars for most of the twentieth century.
• Most of the explanations and theories published so far have focused on a
single person and his or her personal qualities and skills.
• Social scientists have tried to identify what abilities, traits, behaviors; sources
of power or aspects of the situation determine how effective a leader is in
influencing others.
• The new paradigm of leadership focuses on a much more complex concept
that reaches beyond the single leader.
• In fact, contemporary definitions most often reject the idea that leadership
revolves around the leader’s ability, behaviors, styles, or
charisma. “Leadership is not the work of a single person, but can rather be
explained as the mutual endeavors of members of a group.
• Therefore, the essence of leadership is not the leader, but the relationship and
the leader’s ability to interact within that defined relationship. (Rost,1993)”.
• One result of this transformation in the concept of leadership has been the
rethinking of leadership definitions.
• Joseph Rost of the University of San Diego is one of the most popular writers in
recognizing the shift from the industrial concept of leadership (leader-centered
view) to a paradigm that he calls the post-industrial concept of leadership.
• The book “Leadership for the Twenty-First Century (1991)”, articulates a
definition of leadership based on this post-industrial perspective.
• A definition that is more consistent with contemporary organizational life.
• Rost’s definition says, “Leadership is an influence relationship among leaders
and followers who intend real changes that reflect their mutual purposes.”
• This contemporary leadership definition is composed of four basic components,
each of which is essential and must be present if a particular relationship is to be
called leadership.
1. The relationship is based on influence.
• This influence is multidirectional, meaning that influence can go any way (not
necessarily top-down), and the influence attempts must not be coercive. Therefore,
the relationship is not based on authority, but rather persuasion.
2. Leaders and followers are the people in this relationship
• If leadership is defined as a relationship, then both leaders and followers are
engaging in leadership. He does not say that all players in this relationship are
equal, but does say all active players practice multi-directional influence.
3. Leaders and followers intend real changes
• “Intend” means that the leaders and followers promote and purposefully seek
changes. “Real” means that the changes intended by the leaders and followers must
4 The changes the leaders and followers intend reflect their mutual purposes.
• The key is that the desired changes must not only reflect the wishes of the leader
but also the desires of the followers. We are reminded that leadership is not
what leaders do. Rather, leadership is what leaders and followers do jointly in a
relationship of mutuality. In today’s society, leaders operate in a power-sharing
setting with followers. No longer does a single leader have all the answers and
the power to make extensive changes. Instead, today we live in a world where
many people participate in leadership, some as leaders, and others as followers.
 B. Understanding leaders based on post-
industrial perspective
• Many organizational theorists would agree that Rost’s definition is more
consistent with the type of leadership needed in contemporary society. Slowly,
scholars and practitioners alike are giving up on the old ways of leadership: the
industrial paradigm.
• The industrial era comprised of a conventional approach to leadership is
characterized by a top-down philosophy, where the leader is decisive,
competent, superbly able to analyze business finances, unemotional, and in-
control. The changes in the way we view leadership can also be found in other
disciplines, where descriptions of our world are objective, single, emotionless,
hierarchical, and controllable.
• The post-industrial leadership paradigm, on the other hand, is characterized by
collaboration, power-sharing facilitation, and the empowerment of followers. This
new view of the world is more multifaceted and diverse, reciprocally shaping and
spontaneously changing (Rogers, 1992).
• The golden rule in successfully dealing with people has always been to treat
others, as you would want to be treated.
• There is no denying the fact that as a manager, you need to be “controlling the
staff” of your business.
• But there is a difference between controlling and abusing your staff. We are
talking about verbal abuse.
• Does anyone truly think that by treating people like dirt they will give their best?
• As the manager are the authority figure and the example. If you disrespect your
staff, don’t be surprised if they treat you with disrespect in return.
• Nobody likes to be yelled at or embarrassed in front of their peers no matter how
dumb their mistake is.
• The bottom line here is simple. Treat your staff as you would like management
C. Leaders as shapers of meaning-Framing issue
• Framing is a way to use language to manage meaning.
• It is a way for leaders to influence how events are seen and understood.
• Framing is analogous to what a photographer does.
• When the photographer aims her camera and focuses on a specific shot, she
frames her photo.
• Others then see what she wanted them to see. They see her point of view.
• Leadership has increasingly become viewed as the management of meaning.
Leaders define organizational reality through the articulation of a vision.
• It is directed predominantly toward leaders at the top of organizations and has
more relevance to explaining the success and failures of chief executives than of
first-line supervisors.
• It is through framing that leaders determine whether people notice problems,
how they understand and remember problems, and how they act upon them.
Framing: Using Words to Shape
Meaning and Inspire Others

Framing
A way to use language to
manage meaning

Leaders
Leadersuseuseframing
framing
(selectively
(selectivelyincluding
including
or
orexcluding
excludingfacts)
facts)to
to
influence
influencehow
howothers
others
see
seeand
andinterpret
interpret
reality.
reality.

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 D-Inspirational approaches to leadership

• Modern leadership looks at leadership from an inspiration perspective,

Emphasizing leadership styles that are geared towards inspiring followers.
• This approach looks at leadership from the aspect of the leader as a
communicator.
Inspirational Approaches to
Leadership
Charismatic Leadership Theory
Followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behaviors.

Charismatic
Charismaticleaders:
leaders:
1.1. Have
Haveaavision.
vision.
2.2. Are
Arewilling
willingtototake
takepersonal
personalrisks
riskstotoachieve
achievethe
the
vision.
vision.
3.3. Are
Aresensitive
sensitivetotofollower
followerneeds.
needs.
4.4. Exhibit
Exhibitbehaviors
behaviorsthatthatare
areout
outofofthe
theordinary.
ordinary.

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Key Characteristics of Charismatic Leaders
1. Vision and articulation. Has a vision—expressed as an
idealized goal—that proposes a future better than the status quo;
and is able to clarify the importance of the vision in terms that are
understandable to others

2. Personal risk. Willing to take on high personal risk, incur high

costs and engage in self-sacrifice to achieve the vision

3. Environmental sensitivity. Able to make realistic

assessments of the environmental constraints and resources
needed to bring about change

4. Sensitivity to follower needs. Perceptive of others’ abilities

and responsive to their needs and feelings

5. Unconventional behavior. Engages in behaviors that are

perceived as novel and counter to norms

EEXXHHI IBBI ITT

Source: Based on J. A. Conger and R. N. Kanungo, Charismatic Leadership in
Organizations (Thousand Oaks, CA: Sage, 1998), p. 94. 13–1
13–1
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Beyond Charismatic Leadership
• Level 5 Leaders
• Possess a fifth dimension—a paradoxical blend of personal humility and
professional will—in addition to the four basic leadership qualities of
individual capability, team skills, managerial competence, and the ability to
stimulate others to high performance
• Channel their ego needs away from themselves and into the goal of building a
great company

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Transactional and Transformational
Leadership
Transactional Leaders • Contingent Reward

Leaders who guide or motivate their • Management by

Exception (active)
followers in the direction of
• Management by
established goals by clarifying role
Exception (passive)
and task requirements
• Laissez-Faire

Transformational Leaders
• Idealized Influence
Leaders who provide the four “I’s”
(individualized consideration, • Inspirational Motivation
inspirational motivation, idealized • Intellectual Stimulation
influence, and intellectual stimulation) • Individual Consideration

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Characteristics of Transactional
Leaders
Contingent Reward: Contracts exchange of rewards for effort,
promises rewards for good performance, recognizes
accomplishments
Management by Exception (active): Watches and searches
for deviations from rules and standards, takes corrective action
Management by Exception (passive): Intervenes only if
standards are not met
Laissez-Faire: Abdicates responsibilities, avoids making
decisions

Source: B. M. Bass, “From Transactional to EEXXHHI IBBI ITT

Transformational Leadership: Learning to Share the 13–2
13–2
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Vision,” Organizational Dynamics, Winter 1990, p. 22.
Full Range of Leadership Model

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Characteristics of Transformational Leaders
Idealized Influence: Provides vision and sense of mission,
instills pride, gains respect and trust
Inspiration: Communicates high expectations, uses symbols to
focus efforts, expresses important purposes in simple ways
Intellectual Stimulation: Promotes intelligence, rationality,
and careful problem solving
Individualized Consideration: Gives personal attention, treats
each employee individually, coaches, advises

EEXXHHI IBBI ITT13–2

13–2
(cont’d)
(cont’d)
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Authentic Leaders and Ethical
Behavior
• Authentic leaders know who they are, what they
believe in and value, and act on those values
openly and candidly.
• Followers see them as ethical.
• Ethical leaders use ethical means to get followers
to achieve their goals, and the goals themselves
are ethical.

© 2007 Prentice Hall Inc. All rights reserved.

Ethical Leadership

Actions
Actions
•• Work
Workto topositively
positivelychange
changethethe
attitudes
attitudesand
andbehaviors
behaviorsofof
employees
employees
•• Engage
Engageininsocially
sociallyconstructive
constructive
behaviors
behaviors
•• Do
Donotnotabuse
abusepower
poweror oruse
use
improper
impropermeans
meansto toattain
attaingoals
goals

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Trust: The Foundation of Leadership
Trust
A positive expectation that
another will not—through
words, actions, or decisions—
act opportunistically
Trust is a history-dependent
process (familiarity) based on
relevant but limited samples of
experience (risk)

EEXXHHI IBBI ITT

13–4
13–4
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Dimensions of Trust
• Integrity • Loyalty
• Honesty and truthfulness • The willingness to
protect and save face for
• Competence another person
• An individual’s technical
and interpersonal
• Openness
knowledge and skills • Reliance on the person to
give you the full truth
• Consistency
• An individual’s reliability,
predictability, and good
judgment in handling
situations

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Three Types of Trust
Deterrence-based Trust
Trust based on fear of reprisal if the trust is violated

Knowledge-based Trust
Trust based on behavioral predictability that comes from a
history of interaction

Identification-based Trust
Trust based on a mutual understanding of one another’s
intentions and appreciation of the other’s wants and desires

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Basic Principles of Trust
• Mistrust drives out trust.
• Trust begets trust.
• Growth often masks mistrust.
• Decline or downsizing tests the highest levels of trust.
• Trust increases cohesion.
• Mistrusting groups self-destruct.
• Mistrust generally reduces productivity.

© 2007 Prentice Hall Inc. All rights reserved.

Contemporary Leadership Roles:
Providing Team Leadership

Team
TeamLeadership
LeadershipRoles
Roles
•• Act
Actas
asliaisons
liaisonswith
withexternal
external
constituencies
constituencies
•• Serve
Serveas
astroubleshooters
troubleshooters
•• Managing
Managingconflict
conflict
•• Coaching
Coachingtotoimprove
improveteam
team
member
memberperformance
performance

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Contemporary
Contemporary Leadership
Leadership Roles:
Roles: Providing
Providing
Team
Team Leadership,
Leadership, cont’d.
cont’d.

EEXXHHI IBBI ITT

13-6
13-6
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Contemporary Leadership Roles: Mentoring
Mentor
A senior employee who
Mentoring
MentoringActivities
Activities
sponsors and supports a
less-experienced employee (a •• Present
Presentideas
ideasclearly
clearly
protégé) •• Listen
Listenwell
well
•• Empathize
Empathize
•• Share
Shareexperiences
experiences
•• Act
Actas
asrole
rolemodel
model
•• Share
Sharecontacts
contacts
•• Provide
Providepolitical
political
guidance
guidance

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Contemporary Leadership Roles: Self-
Leadership

Self-Leadership
Creating
CreatingSelf-Leaders
Self-Leaders
A set of processes •• Model
through which individuals Modelself-leadership
self-leadership
control their own •• Encourage
Encourageemployees
employeestoto
behavior. create
createself-set
self-setgoals
goals
•• Encourage
Encouragethetheuse
useofofself-
self-
rewards
rewards
•• Create
Createpositive
positivethought
thought
patterns
patterns
•• Create
Createaaclimate
climateofofself-
self-
leadership
leadership
•• Encourage
Encourageself-criticism
self-criticism
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Online Leadership
• Leadership at a Distance: Building Trust
• The lack of face-to-face contact in electronic communications removes the
nonverbal cues that support verbal interactions.
• There is no supporting context to assist the receiver with interpretation of an
electronic communication.
• The structure and tone of electronic messages can strongly affect the
response of receivers.
• An individual’s verbal and written communications may not follow the same
style.
• Writing skills will likely become an extension of interpersonal skills

© 2007 Prentice Hall Inc. All rights reserved.

 Moral Leadership
• Only recently have ethicists and leadership researchers begun to consider the
ethical implications in leadership. Ethics touches on leadership at a number of
junctures. Transformational leaders have been described as fostering moral virtue
when they try to change the attitudes and behaviors of followers.

• Unethical leaders are more likely to use their charisma to enhance power
over followers, directed toward self-serving ends. The issue of abuse of power by
leaders, for example, when they give themselves large salaries and bonuses while,
at the same time, they seek to cut costs by laying off long-time employees

• The topic of trust explicitly deals with honesty and integrity in leadership.
Leadership effectiveness needs to address the means that a leader uses in trying to
achieve goals as well as the content of those goals. Leadership is not value free.
• What is Ethical Conduct?
• This can be described as;
• Standard of behaviour that is acceptable in a given organization.
• Universal standards
 Business Ethics
• Business ethics comprises the principles and standards that guide behavior in the world of business.
• Business ethics defines the boundaries within which the behavior of people should be confined in their day to
day business dealings.
• When one operates within these boundaries, they are deemed to uphold some commonly held values
•Ethical Issues in Business
•Ethical issues may take many different forms and below are five broad categories:
1. Honesty and fairness
• Ethical businesses follow laws and regulations and do not engage in activities that
harm customers, clients, employees or competitors. Such activities involve
misrepresentation of facts, deception or coercion;
•
2. Conflict of interest.
• Employees need to separate private interests from business dealings. This means that
staff should decline accepting bribes, gifts, favors that are given to influence decisions;
3. Fraud
• These are deceptive practices by employees such as manipulating records or concealing facts
for personal gain. Typical cases involve falsifying expense and overtime claims;
4. Discrimination.
• Discrimination can be done on the basis of sex, ethnicity, race, religion, social class etc.
5. Information technology
• Ethical issues arise when businesses discreetly monitor emails, telephone usage (may record
phone calls) and internet usage among other things. Also, collection of information from online
purchases, credit card use and purchases made using loyalty cards may raise ethical concerns.

Being ethically responsible means being involved in fair dealings. A business can be involved in fair
dealings and still make a profit. In addition, ethical dealings help build trust, develop a reputation
for honesty and fairness and makes dealing with other parties easier.
 Benefits of Business Ethics

• Employee commitment. Ethical businesses treat their employees well, they

ensure that employees work in a safe environment, earn competitive salaries,
introduce social programs for their employees among other things;
• Investor loyalty. Ethical companies earn the loyalty of investors who are
conscious of the need to encourage ethical behavior in the business world ;
• Customer satisfaction. Treating customers ethically can result in repeat
purchases and long term loyalty and;
• Profitability. Studies have shown that companies associated with unethical
behavior tend to experience declining profits following the disclosure.
Finding and Creating Effective
Leaders
• Selection
• Review specific requirements for the job
• Use tests that identify personal traits associated with leadership, measure
self-monitoring, and assess emotional intelligence
• Conduct personal interviews to determine candidate’s fit with the job
• Training
• Recognize that all people are not equally trainable
• Teach skills that are necessary for employees to become effective leaders
• Provide behavioral training to increase the development potential of nascent
charismatic employees

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