1. Leadership Style and
Organisational
Effectiveness
20 July 2012
SHANMUGA PILLAIYAN (010194)
TAN CHEE HOAW (010120)
KEVIN CHOO (010226)
HELMMY SHAHNY MOHD MUSTAFA (010268)
AMRI MOHD SOFIAN (010563)
GURMEET SINGH (002967)

2. Agenda
1.
Introduction – What is Leadership?
2. Leadership Models & Styles
3. Case Study – Apple Inc
I.
Historical Milestones
II. Steve Job‟s Management Style
III. Impact on Organisation Behaviour
IV. Evidence of Organizational Effectiveness
4.
Comparisons with Other Leaders
5. Conclusion
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3. What is Leadership ?
“The ability to influence a
group toward the
achievement of goals”
(Robbins 2003)
“Management is doing
things right, leadership
is doing the right things”
(Warren Bennis and Peter Drucker)
Robbins, Stephen. Organizational Behavior. 10th ed. Upper Saddle River, NJ: Prentice, Hall, 2003.
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4. Leadership Theory
The Evolution of Leadership Theory
Transactional
Theory
Behavioural
Styles Theory
1940
1950s
Trait Theory
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1960s
Transformatio
nal Theory
1970s
1980s
1990s
Contingency
Theory
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5. Leadership Theory
Transformational Leader
1.
Leaders stimulate and inspire(transform)
followers to achieve extraordinary outcomes
2. Characteristics:
I.
Leadership is proactive
II. Works to change the organizational culture
by implementing new ideas
III. Employees achieve objectives through
higher ideals and moral values
IV. Motivates followers by encouraging them to
put group interests first
V.
People will
follow a
person who
inspires
them.
Intellectual stimulation: Promote creative
and innovative ideas to solve problems.
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6. Leadership Theory
Transactional Leader
1.
Leaders promote compliance of his followers
through both reward or punishment.
2. Characteristics:
I.
Leadership is reactive
II. Works within the organizational culture
III. Employees achieve objectives through
rewards and punishments set by leader
Subordinates
are not selfmotivating
IV. Motivates followers by appealing to their
own self interest
V.
Management-by-exception: maintain the
status quo; stress correct actions to
improve performance
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7. Leadership Theory
Contingency Theory
1.
According to the contingency approach of
leadership, a single leadership style is not
applicable to all situations.
2. The 3 contingency models of leadership styles.
I.
Fiedler‟s Contingency Model
II. Hersey and Blanchard‟s situational theory
III. Path Goal Theory
a single
leadership
style is not
applicable to
all situations
IV. Tannenbaum and Schmidt‟s leadership
continuum
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8. Leadership Style
Research done by the consulting firm Hay-McBer Associates (Harvard
Business Review, 2000) , found six different leadership styles as the
following:
1.
The coercive style
2. The authoritative style
3. The affiliative style
4. The democratic style
5.
The pacesetting style
6. The coaching style
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9. Leadership Style
-Details
Coercive
Authoritative
Affiliative
Mode of Operation
Demand immediate
compliance
Mobilize people toward a
vision
Create emotional bonds and
harmony
The style in a phrase
“Do what I tell you.”
“Come with me.”
Maximizes people's
commitment toward
organisation goal, enhance
clarity and flexibility
“People come first.”
Advantage
Efficient and effective
Disadvantage
Erode flexibility,
motivation and
responsibilty.
Failed when a leader is
working with a team of
experts who are more
experienced than him
Drives up trust and
flexibility, build up sense of
recognition and belonging.
Allow poor performance to
go uncorrected, and leaves
people rudderless
In a crisis, to kick start When changes require a
To heal rifts in a team/
When the style works
a turnaround, or with new vision, or when a clear motivate people during
best
problem employees
direction is needed
stressful circumstances
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10. Leadership Style
-Details
Democratic
Pacesetting
Coaching
Mode of Operation
Build consensus through
participation
Expect excellence and
self-direction
Develop people for the
future
The style in a phrase
“What do you think?”
“Do as I do, now.”
“Try this.”
Advantage
Drives up flexibility and
responsibility
Fast pace, focus and
result oriented.
Coaching improves
flexibility, responsibility
and commitment.
Disadvantage
Endless meetings and
elusive consesus. People
end up feeling confused
and leaderless
Erode Flexibility and
responsibility. Lack of
commitment.
Time consuming
When the style works
best
To help an employee
To build buy-in or
To get quick results from
improve performance or
consensus, or to get input a highly motivated and
develop long-term
from valuable employees competent team
strengths
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11. Organisational Climate
The term organisational climate was first defined by psychologists
George Litwin and Richard Stringer. It refers to six factors that
influences working environment:
1.
Flexibility- How free employees feel to innovate.
2. Responsibility- Sense of responsibility to the organization.
3. Standards- The level of standards that people set.
4. Rewards- The sense of accuracy about performance feedback and
aptness of rewards.
5.
Clarity- The clarity people have about mission and values.
6. Commitment- The level of commitment to a common purpose.
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12. Leadership Impacts Company Performance
Leadership has a direct impact on Organisational Climate
and Organisational Performance.
LEADERSHIP
1. Leadership
Models
2. Leadership
Styles
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ORGANISATIONAL
CLIMATE
1.
2.
3.
4.
5.
6.
Flexibility
Responsibility
Standards
Rewards
Clarity
Commitment
ORGANISATIONAL
EFFECTIVENESS
1.
2.
3.
Product Innovation
Profit
Share Price
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13. Apple Inc.'s Historical Milestones
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14. Steve Job’s Leadership Style
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15. Steve Job’s Leadership Characteristics*
Visionary
Transformational
Persuasive
Leadership
Gifted
Inspirational
Detail Oriented
Passionate
Relentless
Autocratic and
Blunt
Pace-setting
Manipulative
Approach
Rude
*drawn from comments and quotes from friends,
colleagues, employees, fans, anc competitors
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Dismissive
Spiteful
Hostile
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16. Steve Job is a Transformational Leader
• When Jobs returned to Apple in 1997, his assessment was that the company
was ninety days from going bankrupt
• In May 1998, Jobs announced the new direction for Apple to focus on just
four core products: laptops for consumers & professionals & desktops for
consumers & professionals. The direction was simple & clear.
• The high value placed on ideas is one of the things that Steve burned into the
Apple culture & it will likely to continue to guide the company into the future
• Steve Jobs
 became a steward of creative thinking & became its greatest advocate
while expecting such behaviour from each employee
 built an organization that recognized the needs for creativity,
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17. Impact on Organizational Behaviour
Individual
1.
Emotions: Most employees at Apple are fans of Steve Jobs, and
tend to “hero-worship” him from afar. Senior and middle
management personnel who have regular contact with Steve,
approach him with a mixture of reverence (because of their
immense respect for him and his vision) and fear (because of his
“take-no-prisoners” style of management)
2. Attitudes: Apple sets the tone of the work culture within the
organization from day 1, and focuses on developing the higher
levels of their employees‟ hierarchy of needs, which are Esteem
and Self Actualization.
3. Values: Employees with a high nAch* disposition appear to thrive at
Apple, due to the focus on Motivators instead of Hygiene Factors
* nAch – Need for achievement
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18. Impact on Organizational Behaviour
Feedback from Apple employees:
“Steve Jobs is revered at the company.” – Apple Employee
“Watching Apple grow in the Steve 2.0 era has been nothing short of astonishing.” – Apple
Network Engineer
“ I am proud to say that I work for Apple. The products speak for themselves and it is great to be
able to use them.” - Apple Project Manager (Austin, TX)
“Great products and phenomenal co-workers! An awesome work environment that
cultivated creativity and competition. I woke up every day and could not wait to get to
work!” – Apple Account Executive (Atlanta, GA)
“Apple is an amazing company with a very successful management. Innovation is at the heart
of all decisions. Successful organization. And great products.” – Apple Employee (location n/a)
“Apple is an amazing company, with cutting edge products, unparalleled customer service focus and
a place that cultivates a family atmosphere. Very enjoyable working environment.” –
Apple Employee (location n/a)
Apple is an amazing place to work. There are so many opportunities to grow and learn. “- Apple
Employee (Cupertino, CA)
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19. Impact on Organizational Behaviour
Group: Communication
• The approach to management & talent development is top-down
 with an all-knowing CEO aided by a powerful executive team – ET
o the purpose of the ET is to coordinate things & set the tone for
the company through effective communication platforms
• The company maybe top-down, but the executive –team format
engenders a system of managing up
 teams throughout the organization are in a constant state of
communication by preparing their boss or their boss‟s boss to
present at an executive team meeting
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20. Impact on Organizational Behaviour
Group: Conflict
Given Apple‟s product silo structure in a relatively flat organization,
internal conflicts are usually resolved within the small teams in each
silo independently. The thoroughness of Jobs‟ vision and mandates, as
well as his blunt manner, usually precludes conflicts from significantly
affecting day-to-day operations, leaving the onus of satisfactory conflict
resolution to the various stakeholders of the organization.
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July 2012
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21. Impact on Organizational Behaviour
Organisation Structure
The Organization
Organizational culture: Loyalty, Evangelistic,
Hero-Worship
Decision Making: Top down approach, tempered
by upwards management
Change: The organization is resilient and adaptable
to changing circumstances due to a strong
structure and culture.
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July 2012
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22. Job’s Impact on Organizational Behaviour
Organisational Climate
1.
Flexibility- Apple employees are encouraged, even expected to
continually innovate, but always within the boundaries of Steve‟s vision
2.
Responsibility- Most Apple employees proudly feel a deep, abiding sense
of responsibility towards the company and behave accordingly
3.
Standards- Steve sets very high standards for performance and
innovation, and every Apple employee is expected to adhere and exceed
those standards
4.
Rewards- Apple‟s remuneration is on par with market trends, and they do
not seem to be focused on obtaining and retaining talent through hygiene
factors
5.
Clarity- Every Apple employee has a clear sense of what they need to do
on a day-to-day basis
6.
Commitment- Despite his brusque manner, most Apple employees
remain committed to realizing Steve‟s vision
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23. Evidence of Organizational Effectiveness
Steve Left
For Good
Steve Left
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Steve Came Back
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24. Staff force for Apple, Microsoft and HP.
Staff Force (2001-2010)
350,000
300,000
250,000
200,000
HP
Microsoft
150,000
Apple
100,000
50,000
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
(Source: Financial Reports)
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July 2012
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25. Profit per employee
(Source: Yahoo Finance)
1.
With 46,600 employees and a turnover of 20 billion dollars in
2010, each Apple‟s employee generates a turnover of 419 528
dollars per year.
2. While, Microsoft with 244,831 dollar at 3rd place. And HP with
28,096 dollar per year.
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26. Comparisons with other Leaders
• Born in September 1954
• A UCLA drop out
• Six time Forbes Businesswoman of the year
• First female CEO of a fortune 20 company
with a mandate to shake things up
• Also known as “Fiorina Shakeup”
She is Carly Fiorina
CEO of Hewlett-Packard (1999 to
2005)
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27. Comparisons with other Leaders
Carly‟s Leadership
Carly’s leadership traits
• Fostered a top-down approach to management (Transactional).
Conflicted with the old-style of HP: a completely decentralised
management approach
• Exhibited a truly coercive – pace-setting leadership style
• Dynamic and headstrong leader
• Highly motivational speaker
• “Consummate” Saleswoman – Customer satisfaction
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28. Comparisons with other Leaders
Carly‟s Leadership
Carly’s downfall as a leader
• Was not able to delegate tasks
• Move too fast and too drastic with changes for the organization to
cope
• Neglected to foster employee needs resulted in high turnover
• Was not able to form and communicate a cohesive, convincing and
powerful vision of HP‟s future
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29. Comparisons with other Leaders
Carly‟s Leadership - A Transactional Leader
Conclusion
• Carly failed to execute HP‟s strategy and deliver improvements in
HP‟s profits and stock price
• Was asked by HP‟s BOD to resign due to lack of leadership skills
needed to take advantage of emerging market opportunities
• Indeed, Carly was a very good businesswoman but she could not
prove herself as a leader.
• She saw her downfall when she could not relate to her
employees, and without followers, there cannot be a leader
• Perhaps, Carly could be a successful leader by adding more people
centred leadership skills into her highly dominant job centred
leadership style.
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30. Comparisons with other Leaders
Carly‟s Leadership
Hewlett Packard‟s Organizational Effectiveness
Carly joined HP
Carly helm as CEO
1999 to 2005
Carly left HP
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July 2012
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31. Comparisons with other Leaders
Bill Gates‟ Leadership
1. Co-founded Microsoft with Paul Allen
2. Philosophy – his vision turned to his philosophy which ultimately
the focus is about running software in every computer
3. Fast in taking in ideas and turned them into a successful product –
„95 Microsoft response to internet with the launch of MSN
4. Transformational Leader – visionary, and inspirational
5. Authoritative, and Democratic – free hand to research and create
teams for more product development & launches BUT careful in
control and judgement
6. Microsoft 2005 from 7 decentralised business unit converted to 3
centralised units.
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32. Comparisons with other Leaders
Bill Gates‟ Leadership
Characteristics
1. Intelligent
2. Visionary
3. Passionate
4. Innovative
5. Risk Bearer
6. Continuous Learner
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33. Comparisons with other Leaders
Bill Gates‟ Leadership - Organisational Effectiveness
• Microsoft IPO in 1986 at $21.00 (13 March 1986) Close at $28.00
• Pays a quarterly dividend of $0.20
• Stocks has split 9 times over 26 years
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34. Comparisons with other Leaders
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35. Conclusion
1.
Industries that experience a high rate of change and uncertainty (in terms
of products, paradigm shifts, business climate) like computing, internet
services and telecommunications benefit more from transformational
leadership than any other leadership model. The success of an organization
within these industries depend heavily on the vision of its leader to
successfully navigate the inherent uncertainties.
2.
Transformational Leaders who are proven visionaries are able to easily
gather around them people who are willing to buy into their visions and
passionately commit to making them a reality.
3.
Both Jobs and Gates are considered Transformational Leaders because of
their ability to inspire high levels of innovation, creativity and productivity
from their employees through their visions
4.
A leader can afford to be autocratic, even dictatorial and still lead an
organization successfully as long as the leader continues to be successful in
his role as a visionary.
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36. Thank You
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