AGW 663 Leadership For

Transformation

Tuan Haji Noor Nasir Hj Kader Ali

Chin Sze Pheng PGSM0207/09

Ng Patricia PGSM0136/09

Susan Tan Soo Ling PGSM0168/09

Chapter 7 :

Other Leadership Perspectives

Upper Echelon and Leadership of

Nonprofits

OUTLOOK

Upper-

Echelon /

Strategic

Leader

Micro

President

/CEO/CO

O/BOD

Structure

Culture

Environment

Technology

Strategy

Domain

Leadership

Roles

To

balance

Develop

Vision and

Mission

statements

Establis

h LT

obj.

Generate,

evaluate

and select

strategies

Strategy Formulation

Strategy

Implementation

Moderate

factors:

External and

Internal

Factors that

Impact

Strategic

Leaders

Discretion

Characteristics,

Challenges

seeking

Need to Control

4 Strategic

Leadership

Types

Process that

leaders Use To

Impact

Direct Decision

Allocation of

Resources

Reward System

Setting the

Norms and

Modeling

Performance/

Competitive

Advantage

Leading Change

Compensation

Salary/Reward

Power Accountability

Culture and

Gender

Coverage of Understanding Differences Between Micro and Upper-Echelon leadership

The Domain and Roles of Strategic Leaders in the Management of an Organization.

The External and Internal Factors that Impact Strategic Leaders Discretion.

Strategic Leaders Individual Characteristics and their Impact on Leadership Style

Contrast the four Strategic Leadership Types

The Role of Culture and Gender in Strategic Leadership.

Process that Leaders use to Impact/Influence the Organization.

Issues of Executive Compensation and Accountability

The Characteristics and Challenges of Leadership in Nonprofit Organization

DIFFERENCES BETWEEN MICRO AND

UPPER-ECHELON STRATEGIC LEADERSHIP

Nubla Iftikhar-

Marketing Manager

(Pakistan)

Susan Tan

Purchasing Section

Manager (Malaysia)

Michael Dell

Chairman and CEO

Dell Computer

Corporation

DIFFERENCES BETWEEN MICRO AND

UPPER-ECHELON STRATEGIC LEADERSHIP

Micro (Group) Strategic (Upper Echelon)

Who One person heading a group,

team, or department

Head for a whole organization

(president, CEO, COO)

Top Management Team (TMT)

Governance body such as BOD

What is the

scope?

Small group, team, department Entire organization

Where is the

focus?

Internal External

Effectivenes

s Criteria

Productivity; quality;

employee satisfaction and

motivation; turnover;

absenteeism

Stock prices and other financial

measures; stakeholder satisfaction

THE DOMAIN AND IMPACT OF STRATEGIC

LEADERSHIP

Environment

Strategy

Culture

Technology

Leadership

Structure

ROLE OF STRATEGIC LEADERS

Leader Strategy

Formulation

Strategy

Implementation

Performance

Moderating

Factors

FACTORS THAT MODERATE THE POWER OF

LEADERS

External Environmental Factors

Environment Uncertainty, type of industry -leaders make strategic decisions based on their interpretations.

Market growth leaders have considerable discretion to set and change the

course.

legal constraints - Leaders have limited discretion

External Environmental

Factors Internal Organizational

Factors

FACTORS THAT MODERATE THE POWER OF

LEADERS

Internal Organizational Factors

Stability Leaders provide direction and guidance, charismatic leadership behaviors to influence

followers to a high degree.

Size, structure and culture - Large organizations- decision making is decentralized, impact of leaders in daily operations

decline.

- Small organizations- desires of leaders are reflected in actual operations.

Stage of organizational development - Early stage : culture, strategies and structure are the reflection of its leaders preference.

- Mature stage: influence of leaders decrease and replaced by strong culture and established

routines.

Presence, power, and makeup of TMT -If an organization does not have a TMT/ it is weak, impact of CEO is more direct.

-If an organization has powerful TMT, such a team will moderate the power and discretion of

the individual leader.

CHARACTERISTICS OF UPPER-ECHELON

LEADERS

Personality +

Individual

Characteristic Impact

Leader

Style

+ way

Manage

Organization

Openness

Insider/Risk

adverse Impact

Impact Innovative/

Futuristic

Status Quo

Centralization

Manage

Celebrated

Current

Climate

Crisis and

Leading

Change

Manage Less Likely to

change the

Organization

Desire for

Control

Challenge

Seeking

Four Strategic

Leadership Types

FOUR STRATEGIC LEADERSHIP

TYPES

Desire for Control

Challenge

Seeking

High Low

High

Low

Openness to change

Risk taking Willingness to

innovate

Future Orientation

Delegation Centralization Uniformity of Practice Focus on process

High-Control

Innovator (HCI)

Risk Taking

/Tight Control

Participative

Innovator (PI)

Risk Taking

/Delegate

Control

Process Manager

(PM)

Risk Adverse

and Delegate

Control

Status Quo

Guardian

(SQG)

Risk Adverse and

Tight Control

Openness ,

adapt culture,

Employee

Empowernment

.

Risky

Strategies,

Undertake

new/

Original

endeavors

IMPACT OF STRATEGIC LEADERSHIP TYPES

ON THE 6 STRSTEGIC FORCES

Fluid but

no change

Tolerance

- diversity

Fluid

High

diversity

Strong

Low

diversity

Strong

Conser-

vative

Decentralize

Delegation

Empower

Participatio

n

Centralize

common

goal

Uniformity

Leader-

ship Structure Culture Strategy Tech

Environ-

ment Leader

Leader

+mgr with

diverse

style +view

Leader

+Mgr same

style and

view

High Risk/

Innovate

Core

Low Risk

Efficiency

Innovation

+ High Use

T/Protect

org from

Outsiders

High O

Open to

outside

High

T/Protect

org from

Outsiders

High O/T

Low use

unless

helps

Control

Wide Use

Moderate

High Risk/

Innovate

Open New/

Original

Low Risk

Efficiency

HCI

(HH)

SQG

(L/H)

PI

(H/L)

PM

(L/L)

THE ROLE OF CULTURE AND

GENDER IN STRATEGIC

LEADERSHIP.

THE ROLE OF CULTURE

Different countries have different pattern of leadership which will impact leader style and approaches.

Cross cultural differences when organization become global.

Directive

Social

class/skill

Power distance

Power

Empowering

US Asia

High Low

Low High

Delegation Centralization

Casual/Think out

of box

Formal/Authority

/High Power

Mixture Upper

Celebrity

Culture Open Conservative

THE ROLE OF GENDER

Fewer women in high leadership position.

Women Men

Try to do too much More willing to delegate

Less Hierarchical

More Cooperative and

Collaborative

http://www.genderinscience.org/downloads/Consensus_Report_references/Eagly%20and%20Johannesen-Schmidt%202001.pdf

http://masters.donntu.edu.ua/publ2002/fem/puliaeva.pdf

Set Strong Boundaries

and Clear Responsibility

More Hierarchical

Emotional/Caring Calm

Encourage

Participation, Share

power and Info.

Directive and Control

style.

PROCESS THAT LEADERS USE TO

IMPACT/INFLUENCE THE ORGANIZATION

Direct Decision

Allocation of

Resources

Reward

System Setting the

Norms and

Modeling

LEADER

Environment

Strategy

Culture

Technology

Leadership

Structure

Vision/Mission,

decision on the org

structure/Strategy

and selection of

other leaders

To support org. goal

/R&D/Training to

boost the innovation/

creativity.

Formal (Salary)

Informal (

Recognition).

Promotion

Setting Std and Norms for

other to make decision.

Type of behavior/style -

Model Organization

Factors That Affect Executive Compensation

The larger the firm, the higher the compensation

Firm size

Companies often outbid one another to hire top executives

Industry competition

The higher the power, the higher the compensation package

CEO power and discretion

Increase internationalization is related to higher executive pay

Internationalization

High stress required high compensation High stress and instability

Leadership is not

Position Authority Power

Unique Challenges of Nonprofit Organization

Characteristics of Nonprofit Organization

Operate without

profit

Funded through

contribution

Voluntary board of directors

Public service mission

Fund are reinvested to support the operation of

the organization

To serve public good Healthcare, education , community improvement

Governing board are staffs by volunteers

Grants and donation from individual, government

agencies and other foundations

Roles of Leaders of Nonprofits Organization

Donor

Individual donors

Members

Foundation monies

Governmental grants

Other contribution

Recipients

Individuals

Members

Communities

Other organizations

Nonprofit organization

LEADER

Roles of Leaders of Nonprofits Organization

Leader must rely on participatory leadership to build consensus To allocate the resources, such as donations and grants Strong ethical value Motivating and inspiring the followers Finding and training future leaders

Leading Change : Kavita Ramdas

CEO of the Global Fund for Women Help women achieve full equality and participation worldwide Ramdas is tireless and passionate advocate Strong presence and persuasive skills

CONCLUSION

Themes about top management characteristics

Leader degree of challenge seeking and preference for risk and innovation Leaders need for control over the organization

Combination of these two themes

Strategic Leaders

HCI

SQG

PI

PM

Direct Decision

Allocation of resources

Rewards Setting of norm and modeling

Gain power and influences

CONCLUSION

Leading the nonprofit organization

Leaders need a particular emphasis

building relationship and trust

to develop future leader

THE END

Q & A