Zahid Nazir

Roll # AB523655

1

[ T Y P E T H E C O M P A N Y A D D R E S S ]

ASSIGNMENT 2

HUMAN RESOURCE

MANAGEMENT

PERSONALITY TRAITS OF

A LEADER

ZAHID NAZIR

Roll No. AB523655

MBA Executive

2nd Semester , Spring 2009

A L L A M A I Q B A L O P E N U N I V E R S I T Y , I S L A M A B A D

C O M M O N W E A L T H O F L E A R N I N G E X E C U T I V E M B A P R O G R A M M E

Zahid Nazir

Roll # AB523655

2

LEADERSHIP

Concept of Leadership is very important in

organizations because leaders are the ones

who make things happen. Without leaders, an

organization would find it difficult to get

things done. Leaders mostly help others to

learn – just as a coach would help players play

instead of playing himself. This assignment

covers the concept of leadership, personality

traits of a leader and leadership effectiveness

by providing working definitions and by

emphasizing the cultural limitations of the concepts. It presents several cultural

models that are used throughout the text to explain cross-cultural difference in

leadership. There is no universally agreeable definition of leadership. Just go

and type “leadership” on Google and you can find more than 123,000,000

different pages of reference on web. It involves influencing attitudes,

behaviors, beliefs and feelings of people and believes to be an important topic.

Peter Drucker the guru of Management defines Leadership as

“The only definition of a leader is someone who has followers." While John C Maxwell defines

"leadership is influence - nothing more, nothing less." According to John W. Gardner Leadership is

“the process of persuasion and example by which an individual (or leadership team) induces a group to take action that is in accord with the leader’s purpose,

or the shared purposes of all.”

Zahid Nazir

Roll # AB523655

3

Remember Leadership is a process and not a position. This important process

has three important components/ingredients:

1) Leader

2) Followers

3) Situation.

These three components play very important role on the process of leadership.

Leaders are those persons who are able to influence others and who possess

managerial authority.

Leadership, then, is the ability to influence a group toward the achievement of

goals. Trust is the foundation of leadership. Leaders develop an environment of

trust where the organizational members tend to establish a follower-ship with

the leader.

Who is a leader? A leader is defined as any person who influences individuals

and groups/teams within an organization, helps them in the establishment of

goals, and guides them toward achievement of those goals, thereby allowing

them to be effective.

Characteristics of Successful Leaders Effective and successful leaders have

certain characteristics. They are good communicators, they motivate others

(team members), they are good team builders, solve problems of others and of

organizations, they are good listeners and resolve conflicts, anticipate change

and mange it within team and organizations, they encourage risk taking by

their team members and also to promote the creativities.

If you study the life of successful leaders, you can find them a challenger of the

process, they inspire a shared vision, enable others to act, they model the way

by showing the path, encourage the followers, act as change agent and take

followers to the destination.

Zahid Nazir

Roll # AB523655

4

Below is a list of leaders of corporate sector who created impression in this

world.

1. Bill Gates, co-founder of Microsoft 9. Asa G. Candler Coca-Cola

2. Sam Walton, former CEO of Wal-Mart 10. Michael Dell, founder of Dell Computer

3. Jack Welch, former CEO of General Electric

11. Andy Grove, former CEO of Intel

4. Lee Iacocca, former CEO of Chrysler 12. Ted Turner, founder of CNN

5. Steve Jobs, CEO of Apple 13. Jeff Bezos, founder of Amazon.com

6. Walter E. Disney Walt Disney 14. Phil Knight, CEO of Nike

7. Henry Ford Ford Motor 15. Lou Gerstner, former CEO of IBM

8. William C. Procter Procter & Gamble 16. Robert W. Johnson Jr. Johnson & Johnson

Think of someone in your life whom you would consider as “Leader”. What are

the qualities of character that this person has? I try to enlist few important

characters that person “leader” may have..

• Honest, trustworthy • Good role model

• Caring • Committed

• Good listener • Treats people with respect

• Positive, enthusiastic • Risk taker

• Planner • Decision Maker

• Consistent • Open

• Accountable • Transparent

• Responsible • Sensitive

• Connected to the Community • Knowledge

• Wisdom • Social Skills

Zahid Nazir

Roll # AB523655

5

Are we born with these qualities or are they learned behaviors? To some

degree we have all of them -- some more so than others. We must choose and

work to strengthen these qualities in ourselves if we are to be effective

leaders.

Do we really need leaders? Consider how life would be different without

leadership in e.g. Families, Education, Businesses, Service Associations, Teams,

Countries and World.

EFFECTIVE LEADER

Leaders’ effectiveness depends on the achievements of group/team goals,

when internal processes are smooth and group/team is working as a cohesive

team. Effectiveness can also be seen when team/group adapt to external

forces. An organization achieves its goals when the leaders of an organization

will be more effective. A leader is effective when team/group is effective and

vice versa. Leader and followers are both important and depend on each other

for effectiveness.

Can a leader fail? Yes, some time we see leaders who are not effective or not-

good do fail in achieving their goals.

BAD LEADERSHIP

This can be defined as:

“Bad leadership falls into two categories: bad as in ineffective and bad as in

unethical. Ineffective leadership fails to produce the desired change while

unethical leadership fails to distinguish between right and wrong.”

Barbara Kellerman

Zahid Nazir

Roll # AB523655

6

Characteristics of Leaders Who Fail

� Rude and unapproachable: if the leader will act rudely and is

unapproachable to employee. He will fail to achieve organizational goals

because due to his/her this behavior participative environment can not

created within organization.

� Cold and arrogant: if the leader will be proud of himself, no one wants to

work with him. And also if he or she has no feeling about others, nobody

will be agreeing to work with this type of arrogant person.

� Untrustworthy: without trust, leaders can not perform well in the

organization. Teams/Groups/Organizations always grow when they have

trust on each others and a trustworthy leader is very essential for the

success of a team. If leader is untrustworthy, the probability of his/her

failure will be high.

� Self-centered and political: if the leader will create or involve in political

environment in the organization, he/she will lose the ground because politics can not work in the organization especially if leader is involved in political activities. Especially when a leader is self centered and interested only in personal benefits the result will be a mess and failure and out put will be zero.

� Poor performers: Team always depends on its leader. Leader is mentor,

role model, coach and sets the example for others. So if the leader of

team will be poor performer, team can not achieve the goals.

� Unable to delegate: In this competitive environment of participations,

the leader must delegate the power and authority to downwards for

achieving the organizational goals in more efficient and effective

manner. So if the leader will not delegate the power and authority to

others or his subordinates, he will lose and that will be the failure of

leader.

Zahid Nazir

Roll # AB523655

7

LEADERSHIP MANAGERIAL ROLES In this competitive environment the style of management has also changed.

Now the organizations are working in more competitive environment, more

flat structures, depends on more functional teams lead by a leader.

MANAGERIAL ROLES Leaders are managers too but not necessary that all managers are leaders.

Leaders need to play managerial role too. Management roles refer to specific

categories of managerial behavior.

a). Interpersonal roles included figurehead, leadership, and liaison activities.

� Figurehead When they represent the organization, signing official document,

informally talking to people and attending out side meetings,

presiding the meetings and ceremonial events etc they are playing

the role of figurehead.

� Leader

Leader is responsible for giving instruction, coaching, hiring,

training, motivating, and evaluating performance etc and these are

responsibility of a leader.

� Liaison

When interacting with people outside their organization, attending

professional meetings, serving on committees, visiting and

meeting people to keep in touch, all these role are kind of liaison

on behalf of his/her team or organization.

b). Informational roles included monitoring, disseminating, and spokesperson

activities.

Zahid Nazir

Roll # AB523655

8

� Monitor

Gather information, reading reports, publication etc, talking to

others in meeting inside or outside the organization, observing etc.

� Disseminator

They send information, instruction, orally or written and play the

role of disseminator.

� Spokesperson Provide information outside the organization, answering queries,

letters, reporting information to govt. etc.

c). Decisional roles included those of entrepreneur, disturbance handler,

resource allocator and negotiator.

� Entrepreneur Good leaders are always famous for innovation and creativity.

When innovate and initiate improvement (through monitor),

developing new ideas, new product & service, procedures, tools

etc

� Disturbance handler Taking Corrective action during crises, uncertainty, breakdown,

labor issues, strike, material crises, or any others Resource

allocator Allocating and distribution of resources (financial, space,

equipment, material, HR etc)

� Negotiators They represent organization at different levels, with competitors,

customers, clients, employees, Govt etc

Leadership and management are closely related but with distinguishable

functions. As discussed earlier, leaders are managers but not necessary that all

Zahid Nazir

Roll # AB523655

9

managers are leaders. There are distinct differences among them if we

compare a leader from a manager.

Leaders Vs Managers

Leaders Managers

• Innovate � Administer

• Develop � Maintain

• Inspire � Control

• Take the long-term view � Have a short-term view

• Ask what and why � Ask how and when

• Originate � Imitate

• Challenge the status quo � Accept the status quo

• Do the right things � Do things right

MANAGERS VS LEADERS

As said earlier, leaders are manger too but not necessary that all managers may

be leaders. Arguments about the difference between leadership and

management are presented. Leaders are considered to be visionary and future-

oriented, whereas managers focus on day-to-day routine activities. The section

concludes that effective managers often perform many of the duties and

activities ascribed to leaders thereby making the distinction between the two

concepts somewhat unnecessary.

Leaders Managers

Vision oriented: the leaders are vision oriented and think about future.

Process oriented: managers always think about process that how the organization works in efficient manner.

Protects staff: leaders always protect their staff and motivate them towards achievement of organizational goals.

Protects self: Managers always protect himself.

Zahid Nazir

Roll # AB523655

10

Approaches decisions actively: the leaders are decision makers and do not hesitate to take decisions in any respect.

Approaches decisions cautiously: Managers always depends on his superiors and others to take decisions.

Staff oriented: leaders are staff oriented.

Career oriented: managers always think about his career that how he/she moves up or develop his/her career.

Listens actively: leaders always involve his staff in decision making and listen every body and get the suggestions from employees seriously.

Listens selectively: managers always listen and involve selective staff/employees during decision making.

Deals with conflict: leader always deal with conflict as they are critical analyst in the positive way.

Avoids conflict: Managers always avoids being involved in conflicts.

Trusted: leaders always trust on his employees/staff and vice versa.

Unclear regarding trust: he is unclear regarding trust.

These obvious differences between leaders and managers also affect the

processes in the organizations.

Difference between leadership and management:

Leadership Management

Set overall & future direction: they set the overall organization direction and give the vision.

Set day-day direction: Mangers sets day by day direction to organization as per circumstances.

Focuses on results: A leader always focuses on out put.

Focuses on processes: Managers always focuses on processes that how to gets the maximum out put by utilization of minimum resources through reducing in processes of the organization.

Mostly external: leaders mostly keep the close eyes on external environment.

Mostly internal: Managers always keep the close eyes on internal environment.

Concern=effectiveness: his concern on effectiveness

Concern=efficiency: his concern on efficiency

Stakeholder focused: Leaders focused on stake holder’s interest and strive for the satisfactions of stakeholders.

Personnel focused: Here the focus is personal and not on the stakeholders.

Customer needs/capacities: thinks about Worker needs/capacities: thinks about

Zahid Nazir

Roll # AB523655

11

customers demand organization capacity for customers demand Embodies mission/vision: sets the mission and vision

Embodies goals/objectives: sets the goals and objectives to achieve the mission.

Gets more resources: gets more recourse to accomplish the mission. They always try to look for other opportunities.

Manages resources: a manager always manages the resources.

Secures technologies: they protect the technologies. Always keep their eyes open and try to secure new technologies essential to create competitive advantages.

Applies technologies: managers always apply technologies available to them and will not strive for change.

Seeks to create needed change: they always seek to create the needed change and believe on “Change as the environment change”.

Seek stability/Manage change: Management will try to manage the change and prefer to maintain the stability in the organization.

Create teams’ esp. top teams: Leadership is always focused on creating a team especially top performing team. Leader role is act as a coach and convert individual working into teams.

Manage teamwork: Management focus is to get things done from people/team and they will try for this.

So, after the detail discussion on difference between leadership and

management, we can conclude that in Management we have an authority

relationship while leadership is a multidirectional influence relationship.

“Jack Welch (Former CEO of GE) says; “…dangerous to call someone a

manager” because..

“A manager…” Controls rather than facilitates, Complicates rather than

simplifies, Acts more like a governor than an accelerator.

CHARACTERISTICS 1. Personal Characteristics

A managerial culture emphasizes rationality and control, whether his or her

energies are directed towards goals, resources, organization structure. The

manager ask, ”What problems need to be solved, and what are the best ways

to achieve results, so people will continue to contribute to this organization.

Zahid Nazir

Roll # AB523655

12

Management is keeping themselves away from emotions and focus mainly on

organization, compliances. They seem to know the procedure and policies

required to accomplish the organization routine tasks. From this prospective

leadership is more practical and emotionally connected with employees and

also with environment. Leadership is more open minded and listen different

ideas, ready for change and not only focusing present objectives of the

organization but also keep their focus on future too. They are honest with

themselves, with followers and with others too. With this honesty and concern

with the welfare of others they build trust and that is very essential for

leadership process.

2. Relationships

Leadership always focuses on people, inspire them and develop them to

achieve the organizational mission. They use personality powers to influence

others and act as coach and facilitators for followers. With their charismatic

personality leaders create a dynamic environment within the organization.

They also encourage the creativity and focuses on the dynamic environment

changes. While management focuses on objective and are mainly concern with

outputs, reports and mechanics of the organizations. To influence others,

management depends on the position powers and use control rather than

motivation. Risk taking is not encouraged and they suppress creativity in the

organization.

3. Providing Direction

Leadership always focuses on vision. Leadership reshapes the organizational

culture, motivates the employees, and believes on long term focus. Whether

management depends on detailed plan/schedule, allocation of resources,

improve the efficiency and focuses ob short term goals.

Zahid Nazir

Roll # AB523655

13

4. Grouping

Leadership always creates the culture of communication and listen each

others, help others and facilitate others. They also reduce the boundaries and

create the teamwork in organization. Whereas management believe in line and

staff management, believe on organization, staff and structure, creates

boundaries and focuses on direct and control. Provide solution and guidelines

in the organization.

5. Outcomes

Leadership creates the culture of change and tries to implement change in

response to the changing environment for greatest outcome. Leadership

challenges the status quo and adopts the change. Believe on effectiveness and

efficiency. While management are concern about stability, are more

predictable and focus on short term expectations. Believe on day to day

outcome and not taking any risk.

EFFECTIVE LEADERSHIP Traits desired in a leader are like Integrity, Consistency, Listen and discern

needs, Open-minded, Honest w/themselves; Inspire trust, Calm, Stays focused

while handling a volatile situation etc.

� Trust

Trust among leader and followers is the key to success of this leadership

process. A trust between the leader and followers is very essential. When

trust exists, individuals are more likely to enter into the relationships

necessary for goal attainment.

Trust: The Foundation of Leadership Leader’s integrity, competency, consistency, loyalty and openness are the key ingredients to build trust.

Zahid Nazir

Roll # AB523655

14

� A Nurturing Climate

All members of the organization must be able to work in a climate that is free of fear, one that fosters creativity and rewarding the achievements. This nurturing climate is also essential for proper leadership process and for the success of a team/group or organization and for the effectiveness of a leader.

� Freedom of Expression

All employees must be able to talk with one another, share ideas, critique

proposals, view issues critically, and obtain information that assists them

in being effective and creative. This will only be achieved through

creation of participative culture in the organization and freedom to

express on procedures, policies etc. Leader needs to create culture that

allows freedom of expression.

� Respect for Diversity In this competitive environment of business, organization are dealing

with diversify culture. Organizations are trying to capitalize this diversity

in the organization. Diversity of workforce has huge benefit and yes

some cost too. In order to make a commitment to the attainment of a

particular goal by capitalizing diversity in the organization/team, they

need to respect the diversity and let all people coming from different

background to feel valued, respected, and appreciated.

� Free and Open for Creativity

A leader must create an environment where every one can share his/her

ideas and create the awareness that individuals must feel free to seek

new approaches, take independent decision and take risks. This will be

only done through a congenial environment in the organization, where

every one feels free to share his/her idea and are open for creativity.

Zahid Nazir

Roll # AB523655

15

� Change Agent The leader may act as a change agent, which is an individual who acts as

a catalyst and leads the change process. Change is the true reality of the

organization. In this competitive business environment, without

responding the change no one can survive. “Change as the environment

change”.

IMPORTANT TRAITS OF LEADER

Leader Traits That Influence the Leadership Process:

� Personality is defined as a combination of psychological traits that

describes a person. Personality of leader play important role.

� Position is defined that one can influence on the group member or

in the organization.

� Experience is defied as an exposure that he or she have in his field

of expertise.

Zahid Nazir

Roll # AB523655

16

QUALITIES OF LEADERS Real leaders have certain qualities which make them different from rest of the

team members/followers. Few of those qualities are given below:

Qualities of a Leader

� Vision � Self Confidence

� Ability � Persistence

� Enthusiasm � Vitality

� Stability � Charisma

� Concern for others � Integrity

Vision: A leader has to have some ideas about his/her organization, about how

the future could be different. A leader requires strong sense of purpose and

should be clear in concept of collective Vision (Organization) and recognizes

what must be done and how to makes strategies for the accomplishment of

their vision. Clear concepts about vision can make a leader more focused and

effective. Vision about what is happening, what needs to be done and what is

coming in future.

Ability: Leaders must know about his or her Job and keep knowledge updated

and have ability to understand information, formulate strategies, and make the

decisions. If leader fails to do all these, employees do not respect him/her, and

ultimately leader loses faith and trust. That will be failure of a leader. Followers

always look toward leaders when making decision, when they are in problem,

or stuck or when things are not working. They will look toward leaders. Even

for technical issues, they will look toward leaders for solution. So a leader must

have the ability to handle all such issues.

Zahid Nazir

Roll # AB523655

17

Enthusiasm: This is also an important trait of leaders. Leaders always create

excitements, which causes others to become interested and willing to accept

the challenges. Leaders always generate enthusiasm in followers so that this

excitement can trigger the goal oriented actions and ultimately followers get

motivated and involved in the achievement of the organizational goals.

Stability: Stability is another important quality of leaders. Leaders need to be

emotionally stable in handling challenges, in decision making and during the

time of pressures. During the process of leadership plus and minuses do come

and leaders need to face them with courage and unless they have stability in

their personality, this will become very difficult. Leaders should possess

objectivity, should not bring personal problems to work and be emotionally

stable.

Concern for Others: Leaders must be concerned always for their followers,

with their welfares and don’t treat them as machines. It is always the

responsibility of the leaders to think about the welfare of the employees. A

leader must have a humble and caring attitude towards employee/followers.

So that if he/she always puts the interest of others first, the loyalty will be built,

and ultimately the employees will work with more devotion and commitment.

Self-Confidence: Self confidence is very important quality one should have. For

leaders this will become even more important. All we discussed different

leaders qualities above, these are all linked with the self concept. With self

confidence, leaders can mange and handle even difficult situations. That is the

trait/quality which is appreciated by all concerns. Successful leaders stay calm

and confident and show confidence in their actions.

Persistence: Determination of a leader is also very important for business

success. So, a leader should have the devotion and commitment for business

and continuously motivate the employees for achieving the organizational

goals. The outgoing approach and persistence approach is always paying and

pushing the followers for the accomplishment of goals.

Zahid Nazir

Roll # AB523655

18

Vitality: Leaders need strength/energy and stamina. Effective leaders are

electric, vigorous, active, and full of life, regardless of age or disability. These

qualities energize followers too. To achieve goals, leaders need stamina,

energy, health, and vigor. Same is true for followers.

Charisma: A Personality Trait. A quality that generates others’ interest and

creates followers. To influence others, charisma plays very important role.

Integrity: The most important quality of leader is honesty, strength of

character, and courage. Leaders need to have strong integrity. So leader must

have loyal, honest with his/her work and also with his/her team too. It will also

lead to trust and respect. Honesty, strength of character, and courage will

always lead to trust building, creating loyalty.

LEADERSHIP THEORIES / APPROACHES

Over time, a number of theories of leadership have been proposed. Here are

some of the main ideas.

� Great Man Theory

� Trait Theory

� Behavioral Theories

Role Theory

The Managerial Grid

� Participative Leadership

Lewin's leadership styles

Likert's leadership styles

� Situational Leadership

Hersey and Blanchard's Situational Leadership

Zahid Nazir

Roll # AB523655

19

Vroom and Yetton's Normative Model

House's Path-Goal Theory of Leadership

� Contingency Theories

Fiedler's Least Preferred Co-worker (LPC) Theory

Cognitive Resource Theory

Strategic Contingencies Theory

� Transactional Leadership

Leader-Member Exchange (LMX) Theory

� Transformational Leadership

Bass' Transformational Leadership Theory

Burns' Transformational Leadership Theory

Kouzes and Posner's Leadership Participation Inventory

REVIEW OF LEADERSHIP THEORIES

A review of the leadership literature reveals an evolving series of 'schools of

thought' from “Great Man” and “Trait” theories to “Transformational”

leadership (see table). Whilst early theories tend to focus upon the

characteristics and behaviours of successful leaders, later theories begin to

consider the role of followers and the contextual nature of leadership.

Great Man Theories

Based on the belief that leaders are exceptional people, born with innate qualities, destined to lead. The use of the term 'man' was intentional since until the latter part of the twentieth century leadership was thought of as a concept which is primarily male, military and Western. This led to the next school of Trait Theories

Trait Theories The lists of traits or qualities associated with leadership exist in abundance and continue to be produced. They draw on virtually all the adjectives in the dictionary which describe some positive or virtuous human attribute, from ambition to zest for life

Behaviourist Theories

These concentrate on what leaders actually do rather than on their qualities. Different patterns of behaviour are observed and categorised as 'styles of leadership'. This area has probably attracted most attention from practising managers

Zahid Nazir

Roll # AB523655

20

Situational Leadership

This approach sees leadership as specific to the situation in which it is being exercised. For example, whilst some situations may require an autocratic style, others may need a more participative approach. It also proposes that there may be differences in required leadership styles at different levels in the same organisation

Contingency Theory

This is a refinement of the situational viewpoint and focuses on identifying the situational variables which best predict the most appropriate or effective leadership style to fit the particular circumstances

Transactional Theory

This approach emphasises the importance of the relationship between leader and followers, focusing on the mutual benefits derived from a form of 'contract' through which the leader delivers such things as rewards or recognition in return for the commitment or loyalty of the followers

Transformational Theory

The central concept here is change and the role of leadership in envisioning and implementing the transformation of organisational performance

From ‘Great Man’ to ‘Transformational’ Leadership

Each of these theories takes a rather individualistic perspective of the leader,

although a school of thought gaining increasing recognition is that of

“dispersed” leadership. This approach, with its foundations in sociology,

psychology and politics rather than management science, views leadership as a

process that is diffuse throughout an organisation rather than lying solely with

the formally designated ‘leader’. The emphasis thus shifts from developing

‘leaders’ to developing ‘leaderful’ organisations with a collective responsibility

for leadership.

Now we will discuss these theories one by one.

1). GREAT MAN THEORY

Assumptions

� Leaders are born and not made.

� Great leaders will arise when there is a great need.

Zahid Nazir

Roll # AB523655

21

Description

Early research on leadership was based on the the study of people who

were already great leaders. These people were often from the

aristocracy, as few from lower classes had the opportunity to lead. This

contributed to the notion that leadership had something to do with

breeding.

The idea of the Great Man also strayed into the mythic domain, with

notions that in times of need, a Great Man would arise, almost by magic.

This was easy to verify, by pointing to people such as Eisenhower and

Churchill, let alone those further back along the timeline, even to Jesus,

Moses, Mohammed and the Buddah.

Discussion

Gender issues were not on the table when the 'Great Man' theory was

proposed. Most leaders were male and the thought of a Great Woman

was generally in areas other than leadership. Most researchers were

also male, and concerns about androcentric bias were a long way from

being realized.

2). TRAIT THEORY

Assumptions

� People are born with inherited traits. � Some traits are particularly suited to leadership. � People who make good leaders have the right (or sufficient)

combination of traits.

Description

Early research on leadership was based on the psychological focus of

the day, which was of people having inherited characteristics or traits.

Attention was thus put on discovering these traits, often by studying

Zahid Nazir

Roll # AB523655

22

successful leaders, but with the underlying assumption that if other

people could also be found with these traits, then they, too, could also

become great leaders.

Stogdill (1974) identified the following traits and skills as critical to

leaders.

Traits Skills

• Adaptable to situations

• Alert to social environment

• Ambitious and achievement-orientated

• Assertive

• Cooperative

• Decisive

• Dependable

• Dominant (desire to influence others)

• Energetic (high activity level)

• Persistent

• Self-confident

• Tolerant of stress

• Willing to assume responsibility

• Clever (intelligent)

• Conceptually skilled

• Creative

• Diplomatic and tactful

• Fluent in speaking

• Knowledgeable about group task

• Organised (administrative ability)

• Persuasive

• Socially skilled

McCall and Lombardo (1983) researched both success and failure

identified four primary traits by which leaders could succeed or 'derail':

� Emotional stability and composure: Calm, confident and predictable,

particularly when under stress.

� Admitting error: Owning up to mistakes, rather than putting energy into

covering up.

� Good interpersonal skills: Able to communicate and persuade others

without resort to negative or coercive tactics.

Zahid Nazir

Roll # AB523655

23

� Intellectual breadth: Able to understand a wide range of areas, rather

than having a narrow (and narrow-minded) area of expertise.

Discussion

There have been many different studies of leadership traits and they

agree only in the general saintly qualities needed to be a leader.

For a long period, inherited traits were sidelined as learned and

situational factors were considered to be far more realistic as reasons

for people acquiring leadership positions.

Paradoxically, the research into twins who were separated at birth along

with new sciences such as Behavioral Genetics have shown that far

more is inherited than was previously supposed. Perhaps one day they

will find a 'leadership gene'.

3). BEHAVIORAL THEORY

Assumptions

� Leaders can be made, rather than are born. � Successful leadership is based in definable, learnable behavior.

Description

Behavioral theories of leadership do not seek inborn traits or

capabilities. Rather, they look at what leaders actually do.

If success can be defined in terms of describable actions, then it should

be relatively easy for other people to act in the same way. This is easier

to teach and learn then to adopt the more ephemeral 'traits' or

'capabilities'.

Zahid Nazir

Roll # AB523655

24

Discussion

Behavioral is a big leap from Trait Theory, in that it assumes that

leadership capability can be learned, rather than being inherent. This

opens the floodgates to leadership development, as opposed to simple

psychometric assessment that sorts those with leadership potential

from those who will never have the chance.

A behavioral theory is relatively easy to develop, as you simply assess

both leadership success and the actions of leaders. With a large enough

study, you can then correlate statistically significant behaviors with

success. You can also identify behaviors which contribute to failure, thus

adding a second layer of understanding.

a). ROLE THEORY

Assumptions

� People define roles for themselves and others based on social learning and reading.

� People form expectations about the roles that they and others will play.

� People subtly encourage others to act within the role expectations they have for them.

� People will act within the roles they adopt.

Description

We all have internal schemas about the role of leaders, based on what we read, discuss and so on. We subtly send these expectations to our leaders, acting as role senders, for example through the balance of decisions we take upon ourselves and the decisions we leave to the leader.

Leaders are influenced by these signals, particularly if they are sensitive to the people around them, and will generally conform to these, playing the leadership role that is put upon them by others.

Within organizations, there is much formal and informal information about what the leader's role should be, including 'leadership values', culture, training sessions, modeling by senior managers, and so on. These and more

Zahid Nazir

Roll # AB523655

25

(including contextual factors) act to shape expectations and behaviors around leadership.

Role conflict can also occur when people have differing expectations of their leaders. It also happens when leaders have different ideas about what they should be doing vs. the expectations that are put upon them.

Discussion

Role expectations of a leader can vary from very specific to a broad idea within which the leader can define their own style.When role expectations are low or mixed, then this may also lead to role conflict.

b). THE MANAGERIAL GRID

Description

Leaders may be concerned for their people and they also must also have some concern for the work to be done. The question is, how much attention to they pay to one or the other? This is a model defined by Blake and Mouton in the early 1960s.

The Managerial Grid

Zahid Nazir

Roll # AB523655

26

Discussion

This is a well-known grid that uses the Task vs. Person preference that appears in many other studies, such as the Michigan Leadership Studies and the Ohio State Leadership Studies. Many other task-people models and variants have appeared since then. They are both clearly important dimensions, but as other models point out, they are not all there is to leadership and management.

The Managerial Grid was the original name. It later changed to the Leadership Grid.

3). PARTICIPATIVE LEADERSHIP

Assumptions

� Involvement in decision-making improves the understanding of

the issues involved by those who must carry out the decisions.

� People are more committed to actions where they have involved

in the relevant decision-making.

� People are less competitive and more collaborative when they are

working on joint goals.

� When people make decisions together, the social commitment to

one another is greater and thus increases their commitment to

the decision.

� Several people deciding together make better decisions than one

person alone.

Style

A Participative Leader, rather than taking autocratic decisions, seeks to

involve other people in the process, possibly including subordinates,

peers, superiors and other stakeholders. Often, however, as it is within

the managers' whim to give or deny control to his or her subordinates,

most participative activity is within the immediate team. The question of

Zahid Nazir

Roll # AB523655

27

how much influence others are given thus may vary on the manager's

preferences and beliefs, and a whole spectrum of participation is

possible, as in the table below.

< Not participative Highly participative >

Autocratic decision by

leader

Leader proposes

decision, listens to feedback, then decides

Team proposes decision, leader

has final decision

Joint decision with team as

equals

Full delegation of decision to team

There are many varieties on this spectrum, including stages where the

leader sells the idea to the team. Another variant is for the leader to

describe the 'what' of objectives or goals and let the team or individuals

decide the 'how' of the process by which the 'how' will be achieved (this

is often called 'Management by Objectives').

The level of participation may also depend on the type of decision being

made. Decisions on how to implement goals may be highly participative,

whilst decisions during subordinate performance evaluations are more

likely to be taken by the manager.

Discussion

There are many potential benefits of participative leadership, as ndicated in the assumptions, above.

This approach is also known as consultation, empowerment, joint decision-making, democratic leadership, Management By Objective (MBO) and power-sharing.

Participative Leadership can be a sham when managers ask for opinions and then ignore them. This is likely to lead to cynicism and feelings of betrayal.

Zahid Nazir

Roll # AB523655

28

A). LEWIN'S LEADERSHIP STYLES

Description

Kurt Lewin and colleagues did leadership decision experiments in 1939 and identified three different styles of leadership, in particular around decision-making.

Autocratic

In the autocratic style, the leader takes decisions without consulting with others. The decision is made without any form of consultation. In Lewin's experiments, he found that this caused the most level of discontent.

An autocratic style works when there is no need for input on the decision, where the decision would not change as a result of input, and where the motivation of people to carry out subsequent actions would not be affected whether they were or were not involved in the decision-making.

Democratic

In the democratic style, the leader involves the people in the decision-making, although the process for the final decision may vary from the leader having the final say to them facilitating consensus in the group.

Democratic decision-making is usually appreciated by the people, especially if they have been used to autocratic decisions with which they disagreed. It can be problematic when there are a wide range of opinions and there is no clear way of reaching an equitable final decision.

Laissez-Faire

The laissez-faire style is to minimize the leader's involvement in decision-making, and hence allowing people to make their own decisions, although they may still be responsible for the outcome.

Laissez-faire works best when people are capable and motivated in making their own decisions, and where there is no requirement for a central coordination, for example in sharing resources across a range of different people and groups.

Zahid Nazir

Roll # AB523655

29

Discussion

In Lewin et al's experiments, he discovered that the most effective style was Democratic. Excessive autocratic styles led to revolution, whilst under a Laissez-faire approach, people were not coherent in their work and did not put in the energy that they did when being actively led.

These experiments were actually done with groups of children, but were early in the modern era and were consequently highly influential.

b). LIKERT'S LEADERSHIP STYLES

Description

Rensis Likert identified four main styles of leadership, in particular around decision-making and the degree to which people are involved in the decision.

Exploitive authoritative

In this style, the leader has a low concern for people and uses such methods as threats and other fear-based methods to achieve conformance. Communication is almost entirely downwards and the psychologically distant concerns of people are ignored.

Benevolent authoritative

When the leader adds concern for people to an authoritative position, a 'benevolent dictatorship' is formed. The leader now uses rewards to encourage appropriate performance and listens more to concerns lower down the organization, although what they hear is often rose-tinted, being limited to what their subordinates think that the boss wants to hear. Although there may be some delegation of decisions, almost all major decisions are still made centrally.

Consultative

The upward flow of information here is still cautious and rose-tinted to some degree, although the leader is making genuine efforts to listen carefully to ideas. Nevertheless, major decisions are still largely centrally made.

Participative

At this level, the leader makes maximum use of participative methods, engaging people lower down the organization in decision-making. People

Zahid Nazir

Roll # AB523655

30

across the organization are psychologically closer together and work well together at all levels.

Discussion

This is a classic 1960s view in that it is still very largely top-down in nature, with the cautious addition collaborative elements towards the Utopian final state.

4). SITUATIONAL LEADERSHIP

Assumptions

The best action of the leader depends on a range of situational factors.

Style

When a decision is needed, an effective leader does not just fall into a

single preferred style, such as using transactional or transformational

methods. In practice, as they say, things are not that simple.

Factors that affect situational decisions include motivation and capability

of followers. This, in turn, is affected by factors within the particular

situation. The relationship between followers and the leader may be

another factor that affects leader behavior as much as it does follower

behavior.

The leaders' perception of the follower and the situation will affect what

they do rather than the truth of the situation. The leader's perception of

themselves and other factors such as stress and mood will also modify

the leaders' behavior.

Yukl (1989) seeks to combine other approaches and identifies six variables:

• Subordinate effort: the motivation and actual effort expended.

• Subordinate ability and role clarity: followers knowing what to do and how to do it.

Zahid Nazir

Roll # AB523655

31

• Organization of the work: the structure of the work and utilization of resources.

• Cooperation and cohesiveness: of the group in working together.

• Resources and support: the availability of tools, materials, people, etc.

• External coordination: the need to collaborate with other groups.

Leaders here work on such factors as external relationships, acquisition

of resources, managing demands on the group and managing the

structures and culture of the group.

Discussion

Tannenbaum and Schmidt (1958) identified three forces that led to the

leader's action: the forces in the situation, the forces in then follower

and also forces in the leader. This recognizes that the leader's style is

highly variable, and even such distant events as a family argument can

lead to the displacement activity of a more aggressive stance in an

argument than usual.

Maier (1963) noted that leaders not only consider the likelihood of a

follower accepting a suggestion, but also the overall importance of

getting things done. Thus in critical situations, a leader is more likely to

be directive in style simply because of the implications of failure.

a). HERSEY AND BLANCHARD'S SITUATIONAL LEADERSHIP

The Hersey-Blanchard Leadership Model also takes a situational perspective of

leadership. This model posits that the developmental levels of a leader's

subordinates play the greatest role in determining which leadership styles

(leader behaviours) are most appropriate. Their theory is based on the

amount of direction (task behaviour) and socio-emotional support

(relationship behaviour) a leader must provide given the situation and the

"level of maturity" of the followers.

�Task behaviour is the extent to which the leader engages in spelling out the duties and responsibilities to an individual or group. This behaviour includes telling people what to

Zahid Nazir

Roll # AB523655

32

do, how to do it, when to do it, where to do it, and who's to do it. In task behaviour the leader engages in one-way communication.

�Relationship behaviour is the extent to which the leader engages in two-way or multi-way communications. This includes listening, facilitating, and supportive behaviours. In relationship behaviour the leader engages in two-way communication by providing socio-emotional support. �Maturity is the willingness and ability of a person to take responsibility for directing his or her own behaviour. People tend to have varying degrees of maturity, depending on the specific task, function, or objective that a leader is attempting to accomplish through their efforts. In summary therefore leader behaviours fall along two continua:

Directive Behaviour Supportive Behaviour One-Way Communication Followers' Roles Clearly Communicated Close Supervision of Performance

Two-Way Communication Listening, providing support and encouragement Facilitate interaction Involve follower in decision-making

For Blanchard the key situational variable, when determining the appropriate

leadership style, is the readiness or developmental level of the subordinate(s).

As a result, four leadership styles result:

•Directing: The leader provides clear instructions and specific direction. This style is best matched with a low follower readiness level. • Coaching: The leader encourages two-way communication and helps build confidence and motivation on the part of the employee, although the leader still has responsibility and controls decision making. Selling style is best matched with a moderate follower readiness level. • Supporting: With this style, the leader and followers share decision making and no longer need or expect the relationship to be directive. Participating style is best matched with a moderate follower readiness level. • Delegating: This style is appropriate for leaders whose followers are ready to accomplish a particular task and are both competent and motivated to take full responsibility. Delegating style is best matched with a high follower readiness level.

To determine the appropriate leadership style to use in a given situation, the leader must first determine the maturity level of the followers in relation to

Zahid Nazir

Roll # AB523655

33

the specific task that the leader is attempting to accomplish through the effort of the followers. As the level of followers' maturity increases, the leader should begin to reduce his or her task behaviour and increase relationship behaviour until the followers reach a moderate level of maturity. As the followers begin to move into an above average level of maturity, the leader should decrease not only task behaviour but also relationship behaviour. Once the maturity level is identified, the appropriate leadership style can be determined.

b). PATH-GOAL THEORY OF LEADERSHIP

The Path-Goal Theory of Leadership was developed to describe the way that leaders encourage and support their followers in achieving the goals they have been set by making the path that they should take clear and easy.

In particular, leaders:

• Clarify the path so subordinates know which way to go.

• Remove roadblocks that are stopping them going there.

• Increasing the rewards along the route.

Leaders can take a strong or limited approach in these. In clarifying the path, they may be directive or give vague hints. In removing roadblocks, they may scour the path or help the follower move the bigger blocks. In increasing rewards, they may give occasional encouragement or pave the way with gold.

This variation in approach will depend on the situation, including the follower's capability and motivation, as well as the difficulty of the job and other contextual factors.

House and Mitchell (1974) describe four styles of leadership.

Zahid Nazir

Roll # AB523655

34

Path-Goal Theory

Discussion

Leaders who show the way and help followers along a path are effectively 'leading'. This approach assumes that there is one right way of achieving a goal and that the leader can see it and the follower cannot. This casts the leader as the knowing person and the follower as dependent. It also assumes that the follower is completely rational and that the appropriate methods can be deterministically selected depending on the situation.

5). CONTINGENCY THEORY

Assumptions

The leader's ability to lead is contingent upon various situational factors,

including the leader's preferred style, the capabilities and behaviors of

followers and also various other situational factors.

Zahid Nazir

Roll # AB523655

35

Description

Contingency theories are a class of behavioral theory that contend that

there is no one best way of leading and that a leadership style that is

effective in some situations may not be successful in others.

An effect of this is that leaders who are very effective at one place and

time may become unsuccessful either when transplanted to another

situation or when the factors around them change.

This helps to explain how some leaders who seem for a while to have

the 'Midas touch' suddenly appear to go off the boil and make very

unsuccessful decisions.

Discussion

Contingency theory is similar to situational theory in that there is an

assumption of no simple one right way. The main difference is that

situational theory tends to focus more on the behaviors that the leader

should adopt, given situational factors (often about follower behavior),

whereas contingency theory takes a broader view that includes

contingent factors about leader capability and other variables within the

situation.

a). FIEDLER'S LEAST PREFERRED CO-WORKER (LPC) THEORY

Assumptions

� Leaders prioritize between task-focus and people-focus. � Relationships, power and task structure are the three key factors that

drive effective styles.

Description

Fiedler identified the a Least Preferred Co-Worker scoring for leaders by asking them first to think of a person with which they worked that they would like least to work with again, and then to score the person on a range of scales

Zahid Nazir

Roll # AB523655

36

between positive factors (friendly, helpful, cheerful, etc.) and negative factors (unfriendly, unhelpful, gloomy, etc.). A high LPC leader generally scores the other person as positive and a low LPC leader scores them as negative.

High LPC leaders tend to have close and positive relationships and act in a supportive way, even prioritizing the relationship before the task. Low LPC leaders put the task first and will turn to relationships only when they are satisfied with how the work is going.

Three factors are then identified about the leader, member and the task, as follows:

• Leader-Member Relations: The extent to which the leader has the support and loyalties of followers and relations with them are friendly and cooperative.

• Task structure: The extent to which tasks are standardised, documented and controlled.

• Leader's Position-power: The extent to which the leader has authority to assess follower performance and give reward or punishment.

The best LPC approach depends on a combination of there three. Generally, a high LPC approach is best when leader-member relations are poor, except when the task is unstructured and the leader is weak, in which a low LPC style is better.

# Leader-Member

Relations

Task structure Leader's Position-

power

Most Effective

leader

1 Good Structured Strong Low LPC

2 Good Structured Weak Low LPC

3 Good Unstructured Strong Low LPC

4 Good Unstructured Weak High LPC

5 Poor Structured Strong High LPC

6 Poor Structured Weak High LPC

7 Poor Unstructured Strong High LPC

8 Poor Unstructured Weak Low LPC

Zahid Nazir

Roll # AB523655

37

Discussion

This approach seeks to identify the underlying beliefs about people, in particular whether the leader sees others as positive (high LPC) or negative (low LPC). The neat trick of the model is to take someone where it would be very easy to be negative about them. This is another approach that uses task- vs. people-focus as a major categorisation of the leader's style.

b). COGNITIVE RESOURCE THEORY

Assumptions

� Intelligence and experience and other cognitive resources are factors in leadership success.

� Cognitive capabilities, although significant are not enough to predict leadership success.

� Stress impacts the ability to make decisions.

Description

Cognitive Resource Theory predicts that:

1. A leader's cognitive ability contributes to the performance of the team only when the leader's approach is directive.

When leaders are better at planning and decision-making, in order for their plans and decisions to be implemented, they need to tell people what to do, rather than hope they agree with them.

When they are not better than people in the team, then a non-directive approach is more appropriate, for example where they facilitate an open discussion where the ideas of team can be aired and the best approach identified and implemented.

2. Stress affects the relationship between intelligence and decision quality.

When there is low stress, then intelligence is fully functional and makes an optimal contribution. However, during high stress, a natural intelligence not only makes no difference, but it may also have a negative effect. One reason for this may be that an intelligent person seeks rational solutions, which may not be available (and may be one of the causes of stress). In such situations, a leader who is inexperienced in 'gut feel' decisions is forced to rely on this

Zahid Nazir

Roll # AB523655

38

unfamiliar approach. Another possibility is that the leader retreats within him/herself, to think hard about the problem, leaving the group to their own devices.

3. Experience is positively related to decision quality under high stress.

When there is a high stress situation and intelligence is impaired, experience of the same or similar situations enables the leader to react in appropriate ways without having to think carefully about the situation. Experience of decision-making under stress also will contribute to a better decision than trying to muddle through with brain-power alone.

4. For simple tasks, leader intelligence and experience is irrelevant.

When subordinates are given tasks which do not need direction or support, then it does not matter how good the leader is at making decisions, because they are easy to make, even for subordinates, and hence do not need any further support.

Discussion

CRT arose out of dissatisfaction with Trait Theory.

Fiedler also linked CRT with his Least Preferred Co-worker (LPC) Theory, suggesting that high LPC scores are the main drivers of directive behavior.

A particularly significant aspect of CRT is the principle that intelligence is the main factor in low-stress situations, whilst experience counts for more during high-stress moments.

6). 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 do a job, a part of the deal is that

they cede all authority to their manager. � The prime purpose of a subordinate is to do what their manager

tells them to do.

Zahid Nazir

Roll # AB523655

39

Style

The transactional leader works through creating clear structures

whereby it is clear what is required of their subordinates, and the

rewards that they get for following orders. Punishments are not always

mentioned, but they are also well-understood and formal systems of

discipline are usually in place.

The early stage of Transactional Leadership is in negotiating the

contract whereby the subordinate is given a salary and other benefits,

and the company (and by implication the subordinate's manager) gets

authority over the subordinate.

When the Transactional Leader allocates work to a subordinate, they are

considered to be fully responsible for it, whether or not they have the

resources or capability to carry it out. When things go wrong, then the

subordinate is considered to be personally at fault, and is punished for

their failure (just as they are rewarded for succeeding).

The transactional leader often uses management by exception, working

on the principle that if something is operating to defined (and hence

expected) performance then it does not need attention. Exceptions to

expectation require praise and reward for exceeding expectation, whilst

some kind of corrective action is applied for performance below

expectation.

Whereas Transformational Leadership has more of a 'selling' style,

Transactional Leadership, once the contract is in place, takes a 'telling'

style.

Discussion

Transactional leadership is based in contingency, in that reward or

punishment is contingent upon performance.

Zahid Nazir

Roll # AB523655

40

Despite much research that highlights its limitations, Transactional

Leadership is still a popular approach with many managers. Indeed, in

the Leadership vs. Management spectrum, it is very much towards the

management end of the scale.

The main limitation is the assumption of 'rational man', a person who is

largely motivated by money and simple reward, and hence whose

behavior is predictable. The underlying psychology is Behaviorism,

including the Classical Conditioning of Pavlov and Skinner's Operant

Conditioning. These theories are largely based on controlled laboratory

experiments (often with animals) and ignore complex emotional factors

and social values.

In practice, there is sufficient truth in Behaviorism to sustain

Transactional approaches. This is reinforced by the supply-and-demand

situation of much employment, coupled with the effects of deeper

needs, as in Maslow's Hierarchy. When the demand for a skill outstrips

the supply, then Transactional Leadership often is insufficient, and other

approaches are more effective.

7). TRANSFORMATIONAL LEADERSHIP

Assumptions

� People will follow a person who inspires them. � A person with vision and passion can achieve great things. � The way to get things done is by injecting enthusiasm and energy.

Style

Working for a Transformational Leader can be a wonderful and uplifting

experience. They put passion and energy into everything. They care

about you and want you to succeed.

Zahid Nazir

Roll # AB523655

41

Developing the vision

Transformational Leadership starts with the development of a

vision, a view of the future that will excite and convert potential

followers. This vision may be developed by the leader, by the

senior team or may emerge from a broad series of discussions. The

important factor is the leader buys into it, hook, line and sinker.

Selling the vision

The next step, which in fact never stops, is to constantly sell the

vision. This takes energy and commitment, as few people will

immediately buy into a radical vision, and some will join the show

much more slowly than others. The Transformational Leader thus

takes every opportunity and will use whatever works to convince

others to climb on board the bandwagon.

In order to create followers, the Transformational Leader has to be

very careful in creating trust, and their personal integrity is a critical

part of the package that they are selling. In effect, they are selling

themselves as well as the vision.

Finding the way forwards

In parallel with the selling activity is seeking the way forward. Some

Transformational Leaders know the way, and simply want others to

follow them. Others do not have a ready strategy, but will happily

lead the exploration of possible routes to the promised land.

The route forwards may not be obvious and may not be plotted in

details, but with a clear vision, the direction will always be known.

Thus finding the way forward can be an ongoing process of course

correction, and the Transformational Leader will accept that there

will be failures and blind canyons along the way. As long as they

feel progress is being made, they will be happy.

Zahid Nazir

Roll # AB523655

42

Leading the charge

The final stage is to remain up-front and central during the action.

Transformational Leaders are always visible and will stand up to be

counted rather than hide behind their troops. They show by their

attitudes and actions how everyone else should behave. They also

make continued efforts to motivate and rally their followers,

constantly doing the rounds, listening, soothing and enthusing.

It is their unswerving commitment as much as anything else that

keeps people going, particularly through the darker times when

some may question whether the vision can ever be achieved. If the

people do not believe that they can succeed, then their efforts will

flag. The Transformational Leader seeks to infect and reinfect their

followers with a high level of commitment to the vision.

One of the methods the Transformational Leader uses to sustain

motivation is in the use of ceremonies, rituals and other cultural

symbolism. Small changes get big hurrahs, pumping up their

significance as indicators of real progress.

Overall, they balance their attention between action that creates

progress and the mental state of their followers. Perhaps more

than other approaches, they are people-oriented and believe that

success comes first and last through deep and sustained

commitment.

Discussion

Whilst the Transformational Leader seeks overtly to transform the

organization, there is also a tacit promise to followers that they also will

be transformed in some way, perhaps to be more like this amazing

leader. In some respects, then, the followers are the product of the

transformation.

Zahid Nazir

Roll # AB523655

43

Transformational Leaders are often charismatic, but are not as

narcissistic as pure Charismatic Leaders, who succeed through a belief in

themselves rather than a belief in others.

One of the traps of Transformational Leadership is that passion and

confidence can easily be mistaken for truth and reality. Whilst it is true

that great things have been achieved through enthusiastic leadership, it

is also true that many passionate people have led the charge right over

the cliff and into a bottomless chasm. Just because someone believes

they are right, it does not mean they are right.

Paradoxically, the energy that gets people going can also cause them to

give up. Transformational Leaders often have large amounts of

enthusiasm which, if relentlessly applied, can wear out their followers.

Transformational Leaders also tend to see the big picture, but not the

details, where the devil often lurks. If they do not have people to take

care of this level of information, then they are usually doomed to fail.

Finally, Transformational Leaders, by definition, seek to transform.

When the organization does not need transforming and people are

happy as they are, then such a leader will be frustrated. Like wartime

leaders, however, given the right situation they come into their own and

can be personally responsible for saving entire companies.

a). BASS' TRANSFORMATIONAL LEADERSHIP THEORY

Assumptions

� Awareness of task importance motivates people. � A focus on the team or organization produces better work.

Description

Bass defined transformational leadership in terms of how the leader affects followers, who are intended to trust, admire and respect the transformational leader.

Zahid Nazir

Roll # AB523655

44

He identified three ways in which leaders transform followers:

� Increasing their awareness of task importance and value. � Getting them to focus first on team or organizational goals, rather than

their own interests. � Activating their higher-order needs.

Charisma is seen as necessary, but not sufficient, for example in the way that charismatic movie stars may not make good leaders. Two key charismatic effects that transformational leaders achieve is to evoke strong emotions and to cause identification of the followers with the leader. This may be through stirring appeals. It may also may occur through quieter methods such as coaching and mentoring.

Bass has recently noted that authentic transformational leadership is grounded in moral foundations that are based on four components:

� Idealized influence � Inspirational motivation � Intellectual stimulation � Individualized consideration

...and three moral aspects:

� The moral character of the leader. � The ethical values embedded in the leader’s vision, articulation, and

program (which followers either embrace or reject). � The morality of the processes of social ethical choice and action that

leaders and followers engage in and collectively pursue.

This is in contrast with pseudo-transformational leadership, where, for example, in-group/out-group 'us and them' games are used to bond followers to the leader.

Discussion

In contrast to Burns, who sees transformational leadership as being inextricably linked with higher order values, Bass sees it as amoral, and attributed transformational skills to people such as Adolf Hitler and Jim Jones.

Zahid Nazir

Roll # AB523655

45

b). BURNS' TRANSFORMATIONAL LEADERSHIP THEORY

Assumptions

� Association with a higher moral position is motivating and will result in people following a leader who promotes this.

� Working collaboratively is better than working individually.

Description

Burns defined transformational leadership as a process where leaders and followers engage in a mutual process of 'raising one another to higher levels of morality and motivation.'

Transformational leaders raise the bar by appealing to higher ideals and values of followers. In doing so, they may model the values themselves and use charismatic methods to attract people to the values and to the leader.

Burns' view is that transformational leadership is more effective than transactional leadership, where the appeal is to more selfish concerns. An appeal to social values thus encourages people to collaborate, rather than working as individuals (and potentially competitively with one another). He also views transformational leadership as an ongoing process rather than the discrete exchanges of the transactional approach.

Discussion

Using social and spiritual values as a motivational lever is very powerful as they are both hard to deny and also give people an uplifting sense of being connected to a higher purpose, thus playing to the need for a sense of meaning and identity.

Ideals are higher in Maslow's Hierarchy, which does imply that lower concerns such as health and security must be reasonably safe before people will pay serious attention to the higher possibilities.

PRACTICAL STUDY

OF ORGANISATION

GALXOSMITHKLINECOMPANY’S OVERVIEW

At GlaxoSmithKline, we conduct our business with integrity and honesty, and aspire to excellence in all we do. We know our people are vital to the success of the business, and encourage everyone to achieve their maximum potential. We offer a competitive benefits package and recognize the need for a healthy balance between work and family life.

GlaxoSmithKline welcomes the talent of people from diverse backgrounds to provide the expertise, dedication and imagination to propel us toward a prosperous future. We look for individuals with daring spirits and inquisitive minds who seek a broad range of opportunities growth, and whose efforts are realized in the improved health of people worldwide.

GlaxoSmithKline is an exciting organization, which offers a variety of career opportunities. Our recruitment process aims to achieve the highescandidate care by listening to your interests, and treating you like a valued customer.

47

GALXOSMITHKLINEOVERVIEW

, we conduct our business with integrity and honesty, and aspire to excellence in all we do. We know our people are vital to the success of the business, and encourage everyone to achieve their maximum potential.

titive benefits package and recognize the need for a healthy balance between work and family life.

welcomes the talent of people from diverse backgrounds to provide the expertise, dedication and imagination to propel us toward a prosperous future. We look for individuals with daring spirits and inquisitive minds who seek a broad range of opportunities for personal and professional growth, and whose efforts are realized in the improved health of people

is an exciting organization, which offers a variety of career opportunities. Our recruitment process aims to achieve the highescandidate care by listening to your interests, and treating you like a valued

Zahid Nazir

Roll No. 523655

GALXOSMITHKLINE

, we conduct our business with integrity and honesty, and aspire to excellence in all we do. We know our people are vital to the success of the business, and encourage everyone to achieve their maximum potential.

titive benefits package and recognize the need for a healthy

welcomes the talent of people from diverse backgrounds to provide the expertise, dedication and imagination to propel us toward a prosperous future. We look for individuals with daring spirits and inquisitive

for personal and professional growth, and whose efforts are realized in the improved health of people

is an exciting organization, which offers a variety of career opportunities. Our recruitment process aims to achieve the highest level of candidate care by listening to your interests, and treating you like a valued

The organizational structure of company a model for excellence in the pharmaceutical industry company that represents best practice in every way.

GSK is a company with the size and scale to invest in the tools we need to succeed, and to drive that successorganized as a flexible company, capable of responding quickly to a rapidly changing marketplace. Organized globally to coordinate activities and gain the benefits of size and scale, the company is built on smalunits, dedicated to delivering medicines that relieve the suffering of patients around the world.

The new and innovative model for R&D, the focused structure of our pharmaceutical business throughout the world and the organization of global services such as IT and Procurement are some of the highlights in the approach which will lead our success.

GSK CONSUMER HEALTHC

GlaxoSmithKline is a leader in the worldwide consumer healthcare market. With nearly $6 billion in sales, over markets, the consumer healthcare business brings an added dynamic dimension to GSK.

Operating in the fiercely competitive environment of retail and consumer marketing GlaxoSmithKline Consumer Healthcare brings oral heathe-counter medicines and nutritional healthcare products to millions of people.

48

BUSINESS UNITS

The organizational structure of GlaxoSmithKline (GSK) is designed to make our company a model for excellence in the pharmaceutical industry company that represents best practice in every way.

is a company with the size and scale to invest in the tools we need to succeed, and to drive that success going forward. To achieve that goal, GSK is organized as a flexible company, capable of responding quickly to a rapidly changing marketplace. Organized globally to coordinate activities and gain the benefits of size and scale, the company is built on smaller, customerunits, dedicated to delivering medicines that relieve the suffering of patients

The new and innovative model for R&D, the focused structure of our pharmaceutical business throughout the world and the organization of global services such as IT and Procurement are some of the highlights in the approach which will lead our success.

GSK CONSUMER HEALTHCARE

is a leader in the worldwide consumer healthcare market. With nearly $6 billion in sales, over ten million brands and present in 130 markets, the consumer healthcare business brings an added dynamic

Operating in the fiercely competitive environment of retail and consumer marketing GlaxoSmithKline Consumer Healthcare brings oral hea

counter medicines and nutritional healthcare products to millions of

Zahid Nazir

Roll No. 523655

is designed to make our company a model for excellence in the pharmaceutical industry - a new

is a company with the size and scale to invest in the tools we need to going forward. To achieve that goal, GSK is

organized as a flexible company, capable of responding quickly to a rapidly changing marketplace. Organized globally to coordinate activities and gain the

ler, customer-focused units, dedicated to delivering medicines that relieve the suffering of patients

The new and innovative model for R&D, the focused structure of our pharmaceutical business throughout the world and the organization of our global services such as IT and Procurement are some of the highlights in the

is a leader in the worldwide consumer healthcare market. ten million brands and present in 130

markets, the consumer healthcare business brings an added dynamic

Operating in the fiercely competitive environment of retail and consumer marketing GlaxoSmithKline Consumer Healthcare brings oral healthcare, over-

counter medicines and nutritional healthcare products to millions of

Brand names such as Panadol, Aquafresh toothpaste, Lucozade, Nicorette and Niquitin smoking cessation products are household names around the world. In one year GSK Consumer Healthcare produces billion tablets to relieve stomach upsets, six billion tablets of pain relief tablets and 600 million tubes of toothpaste.

But the driving force behind is science. With four dedicated consumer healthcare R&D centers and consumer healthcare regulatory affairs, the business takes scientific innovation as seriously as marketing excellence and offers leading

GSK CORPORATE FUNCTI

The Corporate business unit within leadership, processes, policies, standards and services in the core business areas of Corporate Communications & Global Community Partnerships, Corporate Ethics & Compliance, Financefunctions work individually and in crosscorporate functions and businesses within GSK.

The functions aim to achieve compliance with legal, financial and regulatory frameworks within and oumotivating GSK people and the communities in which they work. They utilize a responsive business infrastructure shared services approaches Corporate functions count among their audiences; employees, communities, media, governments, analysts, institutions and shareholders worldwide.

49

Brand names such as Panadol, Aquafresh toothpaste, Lucozade, Nicorette and Niquitin smoking cessation products are household names around the world. In

GSK Consumer Healthcare produces - among many others billion tablets to relieve stomach upsets, six billion tablets of pain relief tablets and 600 million tubes of toothpaste.

But the driving force behind GlaxoSmithKline's Consumer Healthcare busineis science. With four dedicated consumer healthcare R&D centers and consumer healthcare regulatory affairs, the business takes scientific innovation as seriously as marketing excellence and offers leading-edge capability in both.

GSK CORPORATE FUNCTIONS

The Corporate business unit within GlaxoSmithKline, is responsible for leadership, processes, policies, standards and services in the core business areas of Corporate Communications & Global Community Partnerships, Corporate Ethics & Compliance, Finance, Human Resources and Legal. The functions work individually and in cross-functional teams across different corporate functions and businesses within GSK.

The functions aim to achieve compliance with legal, financial and regulatory frameworks within and outside the corporation; protecting, supporting and motivating GSK people and the communities in which they work. They utilize a responsive business infrastructure - combining account management and shared services approaches - to work with GSK's diverse busCorporate functions count among their audiences; employees, communities, media, governments, analysts, institutions and shareholders worldwide.

Zahid Nazir

Roll No. 523655

Brand names such as Panadol, Aquafresh toothpaste, Lucozade, Nicorette and Niquitin smoking cessation products are household names around the world. In

among many others - nine billion tablets to relieve stomach upsets, six billion tablets of pain relief tablets

Consumer Healthcare business is science. With four dedicated consumer healthcare R&D centers and consumer healthcare regulatory affairs, the business takes scientific innovation

edge capability in both.

, is responsible for leadership, processes, policies, standards and services in the core business areas of Corporate Communications & Global Community Partnerships,

, Human Resources and Legal. The functional teams across different

The functions aim to achieve compliance with legal, financial and regulatory tside the corporation; protecting, supporting and

motivating GSK people and the communities in which they work. They utilize a combining account management and

to work with GSK's diverse businesses. The Corporate functions count among their audiences; employees, communities, media, governments, analysts, institutions and shareholders worldwide.

GSK INFORMATION TECH

In GSK, Information Technology is a business unit, one that is closely

with all parts of the company, all around the world. It is organized to take best advantage of global scale when that is appropriate, while supporting GSK people and businesses locally so they have the IT tools they need to succeed.

Six IT departments provide core services that are required by each of the business units and by GSK at large. These IT departments are:

• Cross Functional Process Designchanges have a significant, positive ibusiness processes.

• Global eBusiness - Develops GSK's commercial capabilities in eBusiness.• Global Strategy & Applications

ensures the IT architecture is coordinated in concert witstrategies.

• Project and Portfolio Managementprojects, manages project issues as they progress and works with the project management groups to build skills and capabilities.

• Systems and Communications Servicescost effective, flexible, computing and communications infrastructure required by GSK.

• Risk Management & Securityrisks resulting from external or internal use of information teand computerized information.

IT is supported by six core service teams: Audit, Communications, Finance & Alliances, Human Resources, Legal and Procurement.

50

GSK INFORMATION TECHNOLOGY

n GSK, Information Technology is a business unit, one that is closely

with all parts of the company, all around the world. It is organized to take best advantage of global scale when that is appropriate, while supporting GSK people and businesses locally so they have the IT tools they need to succeed.

Global capabilities:

Six IT departments provide core services that are required by each of the business units and by GSK at large. These IT departments are:

Cross Functional Process Design - Ensures that all proposed systems changes have a significant, positive impact on the performance of the business processes.

Develops GSK's commercial capabilities in eBusiness.Global Strategy & Applications - Drives the overall IT strategy of GSK and ensures the IT architecture is coordinated in concert wit

Project and Portfolio Management - Builds processes for approving projects, manages project issues as they progress and works with the project management groups to build skills and capabilities.Systems and Communications Services - Builds, deploys and operates the cost effective, flexible, computing and communications infrastructure

Risk Management & Security - Identifies and addresses security and other risks resulting from external or internal use of information teand computerized information.

IT is supported by six core service teams: Audit, Communications, Finance & Alliances, Human Resources, Legal and Procurement.

Zahid Nazir

Roll No. 523655

n GSK, Information Technology is a business unit, one that is closely integrated

with all parts of the company, all around the world. It is organized to take best advantage of global scale when that is appropriate, while supporting GSK people and businesses locally so they have the IT tools they need to succeed.

Six IT departments provide core services that are required by each of the business units and by GSK at large. These IT departments are:

Ensures that all proposed systems mpact on the performance of the

Develops GSK's commercial capabilities in eBusiness. Drives the overall IT strategy of GSK and

ensures the IT architecture is coordinated in concert with business

Builds processes for approving projects, manages project issues as they progress and works with the project management groups to build skills and capabilities.

Builds, deploys and operates the cost effective, flexible, computing and communications infrastructure

Identifies and addresses security and other risks resulting from external or internal use of information technology

IT is supported by six core service teams: Audit, Communications, Finance &

GLOBAL MANUFACTURING

GSK has 85 manufacturing sites in 37 countries with overThe sites within the GSK manufacturing network:

� supply products to 191 global markets for GSK� produce over 1,200 different brands� manufacture almost 4 billion packs per year� produce over 28,000 different finished packs per year� supply around 6,900 tons of bulk active each year� manage about 2,000 new product launches globally each year

Production of nutritional products is in excess of 300 million Lucozade/Ribena bottles, 350 million Ribena tetra packs and 20 million Lucozade carbonated cans per year. The annual output of Horlicks is 50 million kilograms, equivalent to about 1,000 million servings. In oral care, the volume of toothpaste manufactured annually exceeds 600 million tubes.

You would be forgiven for thinking that a company the size of GlaxoSmithKline - with over 100,000 employees around the world the bottom line. But the truth is that every member of our organization is equally dedicated to helpiand Do more.

51

GLOBAL MANUFACTURING AND SUPPLY

GSK has 85 manufacturing sites in 37 countries with over 35,000 employees. The sites within the GSK manufacturing network:

supply products to 191 global markets for GSK produce over 1,200 different brands manufacture almost 4 billion packs per year produce over 28,000 different finished packs per year

around 6,900 tons of bulk active each yearmanage about 2,000 new product launches globally each year

Production of nutritional products is in excess of 300 million Lucozade/Ribena bottles, 350 million Ribena tetra packs and 20 million Lucozade carbonated cans per year. The annual output of Horlicks is 50 million kilograms, equivalent to about 1,000 million servings. In oral care, the volume of toothpaste manufactured annually exceeds 600 million tubes.

GSK PHARMACEUTICALS

You would be forgiven for thinking that a company the size of GlaxoSmithKline with over 100,000 employees around the world - is only ever concerned with

the bottom line. But the truth is that every member of our organization is equally dedicated to helping people around the world Live longer, F

Zahid Nazir

Roll No. 523655

AND SUPPLY

35,000 employees.

produce over 28,000 different finished packs per year around 6,900 tons of bulk active each year

manage about 2,000 new product launches globally each year

Production of nutritional products is in excess of 300 million Lucozade/Ribena bottles, 350 million Ribena tetra packs and 20 million Lucozade carbonated cans per year. The annual output of Horlicks is 50 million kilograms, equivalent to about 1,000 million servings. In oral care, the volume of toothpaste

You would be forgiven for thinking that a company the size of GlaxoSmithKline is only ever concerned with

the bottom line. But the truth is that every member of our organization is ive longer, Feel better

We have a diverse portfolio of brands, as well as a health pipeline of new exciting compounds. Every year

GlaxoSmithKline invests approx. $5 billion into research and development. GlaxoSmithKline is a leader in four major therapeutic areas central nervous system, respiratory and gastroAnnual Results, GSK had sales of $37.2 billion and profit before tax of 11.1 billion. Pharmaceutical sales accounte22% of total pharmaceutical sales.

This continued success is achieved by being a responsible leader, committed to working with healthcare professionals, listening to patients and responding to a changing environment.

RESEARCH AND DEVELOP

We live in an exciting moment in the history of biomedical science. Disease is giving up its secrets to the intelligence and dedication of scientists aided by technological marvels that might have been the stuff of generation ago. We have every reason to believe that ahead of us lies accelerating progress against many of the afflictions of humankind.

At GlaxoSmithKline, scientists in Research and Development are committed to capturing this moment. They bring to it their own very considerable abilities, the resources of a parent company devoted to the scientific enterprise, and the urgency of knowing that their highest purpose is the relief of human suffering. In pursuit of this purpose, they desothers who share their talents, whether as prospective corporate colleagues or as collaborators in industry, academe, and government.

Creating a new medicine is a complex business, costing over $324 million and typically taking between 12 and 15 years. Regulatory hurdles are increasingly stringent, yet escalating costs, medical need and the pressure of competition

52

We have a diverse portfolio of brands, as well as a health pipeline of new exciting compounds. Every year

GlaxoSmithKline invests approx. $5 billion into research and development. line is a leader in four major therapeutic areas

central nervous system, respiratory and gastro-intestinal. Based on 2004 Annual Results, GSK had sales of $37.2 billion and profit before tax of 11.1 billion. Pharmaceutical sales accounted 24.8 billion with new products representing 22% of total pharmaceutical sales.

This continued success is achieved by being a responsible leader, committed to working with healthcare professionals, listening to patients and responding to

nment.

RESEARCH AND DEVELOPMENT (R&D)

We live in an exciting moment in the history of biomedical science. Disease is giving up its secrets to the intelligence and dedication of scientists aided by technological marvels that might have been the stuff of science fiction only a generation ago. We have every reason to believe that ahead of us lies accelerating progress against many of the afflictions of humankind.

At GlaxoSmithKline, scientists in Research and Development are committed to nt. They bring to it their own very considerable abilities,

the resources of a parent company devoted to the scientific enterprise, and the urgency of knowing that their highest purpose is the relief of human suffering. In pursuit of this purpose, they desire to make of GlaxoSmithKline a magnet for others who share their talents, whether as prospective corporate colleagues or as collaborators in industry, academe, and government.

Creating a new medicine is a complex business, costing over $324 million and ypically taking between 12 and 15 years. Regulatory hurdles are increasingly

stringent, yet escalating costs, medical need and the pressure of competition

Zahid Nazir

Roll No. 523655

We have a diverse portfolio of brands, as well as a health pipeline of new

GlaxoSmithKline invests approx. $5 billion into research and development. line is a leader in four major therapeutic areas - anti infectives,

intestinal. Based on 2004 Annual Results, GSK had sales of $37.2 billion and profit before tax of 11.1 billion.

d 24.8 billion with new products representing

This continued success is achieved by being a responsible leader, committed to working with healthcare professionals, listening to patients and responding to

MENT (R&D)

We live in an exciting moment in the history of biomedical science. Disease is giving up its secrets to the intelligence and dedication of scientists aided by

science fiction only a generation ago. We have every reason to believe that ahead of us lies accelerating progress against many of the afflictions of humankind.

At GlaxoSmithKline, scientists in Research and Development are committed to nt. They bring to it their own very considerable abilities,

the resources of a parent company devoted to the scientific enterprise, and the urgency of knowing that their highest purpose is the relief of human suffering.

ire to make of GlaxoSmithKline a magnet for others who share their talents, whether as prospective corporate colleagues or

Creating a new medicine is a complex business, costing over $324 million and ypically taking between 12 and 15 years. Regulatory hurdles are increasingly

stringent, yet escalating costs, medical need and the pressure of competition

demand that the whole process is condensed into as short a time as possible. GSK uses the scale of a improve patient health. Equally important is its flexibility, allowing teams of scientists the freedom to take an entrepreneurial approach, and enabling them to move quickly, on the basis of informed de

Once a compound has been identified as a potential drug candidate, it goes through an exacting, rigorous process to prove that the new drug is both safe and effective. Any potential new project not meeting the criteria at any stage is dropped from the company portfolio to make way for other, more promising candidates.

GSK IN TIME

� Every second, more than 30 doses of vaccines are distributed by GSK worldwide.

� Every minute, more than 1,100 prescriptions are written for GSK products worldwide.

� Every hour, GSK spends more than $450,000 to find new medicines.

� Every day, more than 200 million people around the world use a GSK brand toothbrush or toothpaste.

� Every year, GlaxoSmithKline donates more than $138 million in cash and products to communities aro

GSK employees are each expected to strive for improvement in these key competencies and align themselves with the supportive behaviors.

Performance with Integrityand individual trustworthiness.

People with Passionwork.

53

demand that the whole process is condensed into as short a time as possible. GSK uses the scale of a huge company to reach its goal of applying science to improve patient health. Equally important is its flexibility, allowing teams of scientists the freedom to take an entrepreneurial approach, and enabling them to move quickly, on the basis of informed decisions.

Once a compound has been identified as a potential drug candidate, it goes through an exacting, rigorous process to prove that the new drug is both safe and effective. Any potential new project not meeting the criteria at any stage is

the company portfolio to make way for other, more promising

Every second, more than 30 doses of vaccines are distributed by GSK worldwide. Every minute, more than 1,100 prescriptions are written for GSK products worldwide.

hour, GSK spends more than $450,000 to find new

Every day, more than 200 million people around the world use a GSK brand toothbrush or toothpaste. Every year, GlaxoSmithKline donates more than $138 million in cash and products to communities around the world.

GSK employees are each expected to strive for improvement in these key competencies and align themselves with the supportive behaviors.

Performance with Integrity - Delivering on promises with organizational and individual trustworthiness.

eople with Passion - People are enabled and motivated to do their best

Zahid Nazir

Roll No. 523655

demand that the whole process is condensed into as short a time as possible. huge company to reach its goal of applying science to

improve patient health. Equally important is its flexibility, allowing teams of scientists the freedom to take an entrepreneurial approach, and enabling them

Once a compound has been identified as a potential drug candidate, it goes through an exacting, rigorous process to prove that the new drug is both safe and effective. Any potential new project not meeting the criteria at any stage is

the company portfolio to make way for other, more promising

Every second, more than 30 doses of vaccines are distributed by

Every minute, more than 1,100 prescriptions are written for GSK

hour, GSK spends more than $450,000 to find new

Every day, more than 200 million people around the world use a

Every year, GlaxoSmithKline donates more than $138 million in cash

GSK employees are each expected to strive for improvement in these key competencies and align themselves with the supportive behaviors.

Delivering on promises with organizational

People are enabled and motivated to do their best

Zahid Nazir

Roll No. 523655

54

Innovation & Entrepreneurship - Competitive advantage through well-executed ingenuity.

Sense of Urgency - A nimble, focused, resilient and fast-learning organization.

Everyone Committed, Everyone Contributing- All employees have an opportunity to make a meaningful contribution, and to succeed based on merit.

Accountability for Achievement - Clear expectations; focus on the critical few. Performance matters, and will be rewarded.

Alignment with GSK Interests - One team, in single-minded pursuit of our mission, reflecting a common spirit and integrated strategies.

Develop Self and Others - A norm of career-long learning agility across the organization. Employees continuously learn and develop their professional potential. Leaders have key roles as teachers, coaches and champions of development.

WHAT IS DIVERSITY AT GSK?

At GSK, we are committed to creating an inclusive environment for our employees, customers, and stakeholders.

For employees, it means creating an environment where we value and draw on the differing knowledge, perspectives, experiences, and styles resident in our global community.

For customers, it means understanding who they are, what their changing needs are, and how GSK can help them do more, feel better, and live longer.

For stakeholders, it means understanding what they prefer, what they require, and how GSK can work most effectively with them.

What makes GSK a great place to work?

We asked some of our current emp

"There are lots of local companies that would welcome someone of my background and experience. Here, I get the added bonus of knowing that I am contributing to better lives around the world"

"The company offers a competitanalyze the whole package, you'll find that most companies can't beat it"

"Through friendly and supportive teams, individual innovation is encouraged and rewarded."

"When you have a project there is a real sense ofmeans things get done"

"It's the people within the company that makes it great"

****************

55

What makes GSK a great place to work?

We asked some of our current employees, and here's what they said:

"There are lots of local companies that would welcome someone of my background and experience. Here, I get the added bonus of knowing that I am contributing to better lives around the world"

"The company offers a competitive salary and excellent benefits. If you analyze the whole package, you'll find that most companies can't beat it"

"Through friendly and supportive teams, individual innovation is encouraged and rewarded."

"When you have a project there is a real sense of means things get done"

"It's the people within the company that makes it great"

****************

Zahid Nazir

Roll No. 523655

loyees, and here's what they said:

"There are lots of local companies that would welcome someone of my background and experience. Here, I get the added bonus of knowing that I am contributing to better lives around the world"

ive salary and excellent benefits. If you analyze the whole package, you'll find that most companies can't beat it"

"Through friendly and supportive teams, individual innovation is

ownership which

"It's the people within the company that makes it great"

Zahid Nazir

Roll No. 523655

56

GALXOSMITHKLINE PAKISTAN LIMITED

Overview

GlaxoSmithKline Pakistan Limited was created on January 1st 2002 through the

merger of SmithKline and French of Pakistan Limited, Beecham Pakistan

(Private) Limited and Glaxo Wellcome (Pakistan) Limited- standing today as the

largest pharmaceutical company in Pakistan.

As a leading international pharmaceutical company we make a real difference

to global healthcare and specifically to the developing world. We believe this is

both an ethical imperative and key to business success. Companies that

respond sensitively and with commitment by changing their business practices

to address such challenges will be the leaders of the future. GSK Pakistan

operates mainly in two industry segments: Pharmaceuticals (prescription drugs

and vaccines) and consumer healthcare (over-the-counter- medicines, oral care

and nutritional care).

GSK leads the industry in value, volume and prescription market shares. We are

proud of our consistency and stability in sales, profits and growth. Some of our

key brands include Augmentin, Panadol, Seretide, Betnovate, Zantac and

Calpol in medicine and renowned consumer healthcare brands include Horlicks,

Aquafresh, Macleans and ENO.

In addition, we are also deeply involved with our communities and undertake

various Corporate Social Responsibility initiatives including working with the

National Commission for Human Development (NCHD) for whom we were one

Zahid Nazir

Roll No. 523655

57

of the largest corporate donors. We consider it our responsibility to nurture the

environment we operate in and persevere to extend our support to our

community in every possible way. GSK participates in year round charitable

activities which include organizing medical camps, supporting welfare

organizations and donating to/sponsoring various developmental concerns and

hospitals. Furthermore, GSK maintains strong partnerships with non-

government organizations such as Concern for Children, which is also

extremely involved in the design, implementation and replication of models for

the sustainable development of children with specific emphasis on primary

healthcare and education.

************************

Zahid Nazir

Roll No. 523655

58

MISSION STATEMENT

Excited by the constant search for innovation, we at GSK undertake our quest with the enthusiasm of entrepreneurs. We value performance achieved with integrity. We will attain success as a world class global leader with each and every one of our people contributing with passion and an unmatched sense of urgency.

Our mission is to improve the quality of human life by enabling people to do more, feel better and live longer.

Quality is at the heart of everything we do- from the discovery of a molecule to the development of a medicine.

**************

Zahid Nazir

Roll No. 523655

59

GSK LEADERSHIP

Andrew Witty

Chief Executive Officer

Biography:

Andrew Witty was named CEO designate for GSK in

October 2007 and assumed the position of Chief

Executive Officer on 21 May 2008. He is a member of

the Board and Corporate Executive Team and

previously held the role of President, Pharmaceuticals

Europe, for five years.

Andrew joined Glaxo in 1985 and held a variety of roles

in the UK business. He was a Sales Representative for

the Respiratory business, held a variety of Marketing

roles and was Director of Pharmacy and Distribution.

He has worked in the Company’s International New Products groups, both in

the Respiratory and HIV/Infectious disease fields and has been involved in

multiple new product development programmes.

In 1993, Andrew was appointed Managing Director of Glaxo South Africa and

later Area Director for GlaxoWellcome, South and East Africa. Subsequently he

moved to North Carolina as Vice President and General Manager, Marketing for

GlaxoWellcome Inc., the group’s US subsidiary.

Andrew then moved to Singapore and led the Group’s operations in Asia as

Senior Vice President, Asia Pacific prior to his appointment to the Corporate

Executive Team as President of GSK Europe in 2003.

Zahid Nazir

Roll No. 523655

60

While in Singapore Andrew was a Board Member of the Singapore Economic

Development Board, the Singapore Land Authority and in 2003 was awarded

the Public Service Medal by the Government of Singapore.

Andrew has served in numerous advisory roles to Governments around the

world including South Africa, Singapore, Guangzhou China and the UK.

Andrew is currently a Non-Executive Director of the UK’s Office for Strategic

Co-ordination of Health Research, sits on the Imperial College

Commercialization Advisory Board, is a member of the Health Innovation

Council and is a member of INSEAD UK Council.

He is also a member of the Business Council for Britain, a Board Member of

PhRMA, a Vice-President of EFPIA and a Member of the Singapore Economic

Development Board's International Advisory Council.

Andrew has a Joint Honours BA in Economics from the University of

Nottingham.

Personality Traits of Andrew Witty

Andrew Witty is the youngest CEO in the history of GlaxoSmithKline. There are

dozens of personal traits that can affect leadership and some, namely integrity

and character, that are absolute but I have observed the following traits in

Andrew Witty which makes him a successful man. These traits are:

� Ambition,

� Drive and tenacity,

� Self-confidence,

� Psychological openness,

� Realism

� Appetite for learning.

Ambition: A desire to achieve something visible and noteworthy propels

individual leaders and their companies to strive to reach their potential.

Zahid Nazir

Roll No. 523655

61

Leaders need a healthy dose of it to push themselves and others. But ambition

can be blind. That’s when you see leaders making flashy acquisitions that are

financially unsound or setting attention-getting goals or taking on more

priorities than the organization can handle out of a desire to do everything.

Over ambitiousness, combined with a lack of integrity, can lead to undesirable

behavior and even corruption.

Drive and Tenacity: Some leaders have an inner motor that pushes them to get

to the heart of an issue and find solutions. They drill for specific answers and

don’t give up until they get them. Their high energy is infectious. They

consistently drive their priorities through the organization. They search

tenaciously for information they’re missing and keep tweaking their mental

models until they arrive at a positioning that works. But drive and tenacity can

cause a leader to stick to a plan that isn’t working or to outdated assumptions

or an investment that is no longer promising.

Self-Confidence: You have to be able to listen to your own inner voice and

endure the lonely moments when an important decision falls on your

shoulders. You have to be able to speak your mind and act decisively, knowing

that you can withstand the consequences. It’s not a matter of acting tough. It’s

having a tough inner core, or what some refer to as emotional fortitude.

Underlying fears and insecurities can be just as detrimental to your know-hows

as can excessive self-confidence in the form of narcissism or arrogance.

Some leaders have a need to be liked. They therefore tend to go easy on

people. They have an especially hard time dismissing people who have been

loyal to them. Such leaders often find their own progress slowed, because they

promote people for the wrong reasons, tolerate nonperformers and allow the

social system to corrode.

A fear of response is also common. Such leaders tend to avoid conflicts and

find it hard to challenge people on their performance or point of view. They

back off when they should be giving brutally honest feedback and sometimes

have a third party do that work for them. Leaders with a fear of failure are

Zahid Nazir

Roll No. 523655

62

often indecisive, defensive and less likely to spot opportunities because they’re

risk averse. They find it hard to select goals for fear of choosing the wrong

ones and wait too long to connect the dots in the external environment or to

reposition the business.

Self-confidence also affects your use or abuse of power. Every leader has to

use power from time to time in assigning tasks, allocating resources, selecting

or promoting people, giving differentiated rewards or redirecting dialogue. An

excessive fear of failure or fear of response can make a leader uncomfortable

using power, and not using power appropriately actually erodes it. Failure to

deal with a recalcitrant direct report, for instance, diminishes the leader’s

power. On the other hand, narcissistic leaders tend to abuse power, using it

irrationally or against the interests of the organization.

Psychological Openness: The willingness to allow yourself to be influenced by

other people and to share your ideas openly enhances the know-hows, while

being psychologically closed can cause problems. Leaders who are

psychologically open seek diverse opinions, so they see and hear more and

factor a wider range of information into their decisions. Their openness

permeates the social system, enhancing candor and communication. Those

who are psychologically closed are secretive and afraid to test their ideas,

often cloaking that fear under the guise of confidentiality. They’re distant from

their direct reports and have no one outside to bounce ideas off or to provide

information that counters their own beliefs. In the new environment of

complexity, being psychologically closed makes it particularly difficult to

reposition the business, because the leader lacks perspectives from diverse

disciplines, functions and cultures.

Realism: Realism is the mid-point between optimism and pessimism, and the

degree to which you tend toward one or the other has a particularly powerful

effect on your use of the know-hows. Optimism can lead, for example, to

ambitious goals that outstrip the company’s ability to accomplish them or can

compromise your judgments of people: “I know his ego has no bounds, but I

Zahid Nazir

Roll No. 523655

63

can coach him to become a team player.” But pessimists don’t want to hear

ambitious plans or bold initiatives and can find all the flaws and risks in

pursuing them when they do. They’re likely to miss opportunities. A realist is

open to whatever hand reality deals him. Only the realist wants to get

unfiltered information that can be weighed, measured, evaluated and tested to

determine what step to take next. He spends time interacting with customers,

employees and suppliers, getting information and a “feel” from those

constituencies about their thinking.

Appetite for Learning: Know-hows improve with exposure to diverse

situations with increasing levels of complexity, so an eagerness for new

challenges is essential. Leaders who seek out new experiences and learn from

them will build their know-hows faster than those who don’t.

**********************