Leadership AVON Case Study.

What is leadership?A leader is one who inspires, motivates and leads people to accomplish organizational goals

LEADERSHIP STYLESAutocratic (Authoritarian) BureaucraticDemocraticCoerciveTransactionalTransformationalLaissez-Faire

1. Democratic/ Participative Leadership Style

When to use Democratic Leadership Style?

Team Agreement is needed

Greater motivation and commitment

Knowledgeable and skillful team members

Limitation of Democratic Leadership Style

It is a time consuming affair

BureaucraticManager manages by the book

Everything must be done according to procedure or policy

If it isnt covered by the book, the manager refers to the next level above him or her

Police officer more than leader

When to use BureaucraticPerforming routine tasks

Need for standards/procedures

Use of dangerous or delicate equipment

Safety or security training being conducted

Tasks that require handling cash

Who are Bureaucratic Leaders?

2. Autocratic Leadership Style

When to use Autocratic Leadership Style?

When quick decisions are needed

No need for others input

Team agreement is not necessary

When high level of management control is needed

Limitations of Autocratic Leadership

Employees cannot question decisions

Little opportunity to give suggestions

CoercivePower from a persons authority to punish

Most obvious types of power a leader has.

Good leaders use coercive power only as a last resort: In todays sophisticated and complex workplace, excessive use of coercive power unleashes unpredictable and destabilizing forces which can ultimately undermine the leader using it.

When to use CoerciveTo meet very short term goals

When left with no other choice

In times of crisis

Who are Coercive Leaders?Youre Fired!

TransactionalMotivate followers by appealing to their own self-interest

Motivate by the exchange process. EX: business owners exchange status and wages for the work effort of the employee.

Focuses on the accomplishment of tasks & good worker relationships in exchange for desirable rewards.

Encourage leader to adapt their style and behavior to meet expectations of followers

When to use TransactionalLeader wants to be in controlWhen there are approaching deadlines that must be metRelationship is short term

TransformationalCharismatic and visionary

Inspire followers to transcend their self-interest for the organization

Appeal to followers' ideals and values

Inspire followers to think about problems in new or different ways

Common strategies used to influence followers include vision and framing

Transformational cont.Instils feelings of confidence, admiration and commitment Stimulates followers intellectually, arousing them to develop new ways to think about problems. Uses contingent rewards to positively reinforce desirable performancesFlexible and innovative.

When leaders want members to be an active part of the organization and have ownership to it

When leaders are building a sense of purpose

When the organization has a long term plan

When people need to be motivated

When to use Transformational

3. Laissez-Faire/ Free Rein Leadership Style

When to use Laissez Faire/ Free Rein Style?

When the team is highly capable

When team members are able to analyze the situation

When close monitoring of a decision is not needed

When there is full trust and confidence in the team members

Limitations of Laissez Faire/ Free Rein Leadership Style

Not suitable for lesser experienced employees

Lack of motivation

Poor productivity

What are the factors for selecting leadership style?

Objectives that need to be achieved

Followers

Situation

Apply the appropriate leadership style and techniques

Avon Company- Beauty supply company that believes in "championing economic empowerment and improving the lives of women around the world. - Avon has built itself up to be the fifth largest beauty supply company in the world, Using a multi-level marketing structure (Avon ladies)

Andrea JungJung was executive vice president of Neiman Marcus, responsible for all of womens apparel, accessories, and cosmetics. Before that, she was senior vice president, general merchandising manager, for I. Magnin.Jung joined Avon Products, Inc. in 1994 as the company's president in its product marketing group. She became president of global marketing in 1996 and executive vice president/president of global marketing and new business in 1997. Her responsibilities at that time centered primarily around market research, joint ventures and strategic planning. She then became president and chief operating officer, with responsibility for all business units of Avon worldwide. She has been on the company's board of directors since 1998. In November 1999, Jung was promoted to chairman of the board and chief executive officer.In the case of Avon, the leadership style of Andrea Jung is perceived to be pure manifestations of her own unique and effectual characteristics as a leader. her leadership style comprises her dedication, essential knowledge in the business industry, optimistic morals and trust with her people in achieving success.Avon's first female CEO in 2001 since then she has built the company to the fifth largest beauty supply company in the world. Orchestrates Avons Makeover -adjusts her cultural beliefs and differences to reconstruct Avon and implement successful changes.

As such, the Avon's current Chief Executive Officer Andrea Jung evidently portrays the characteristics of a truthful transformational leader as she has been effective in leading and saving the entire organization from its previous condition. The less, she is truly transformational for she has drawn a better financial position Andrea Jung is the quintessential transformational leader. Jung showcases her transformational leadership style through her key elements of Jung's leadership style

Andrea Jung is the quintessential transformational leader. Jung showcases her transformational leadership style through her charismadelegation of authorityconsideration of subordinatesability to constantly modify the organizational structure of Avon.key elements of Jung's leadership style

How closely Jung's leadership charismatic and transformationalJungs charisma is seen in the strong passion she has for Avon. This passion was clearly manifested when Jung turned down a CEO position at another company to remain the number two person at Avon.The genuine love that Jung has for Avon and its impact on society serves as a motivational leadership tool. The influence of Jungs positive attitude toward Avon promotes an atmosphere of cooperation and teamwork.

How closely Jung's leadership charismatic and transformationalJung is firm believer in delegating authority. An example of Jungs trust in delegation was seen in her 2001 appointment of Susan Kropf to COO. Despite Kropfs young age, 31, Jung believed she was the right woman for job. Jungs instincts proved to be correct, as Kropf saved Avon roughly $460 million.Jung decided to increase representatives commission payouts. This action is a clear example of her consideration of subordinates and Jungs transformational leadership style.Strong visionDeep knowledge

Neo charismatic theories she presentHer communication style is another aspect to her leadership style that must be observed. Its relaxed and avoids aggression, but it always makes its intentions clear.Her values are clear, easy to come through, and can be found in many of her words and deeds. Time and time again, Jung has proven herself to be someone with a keen open-mind, an ability to retain a sense of humility in the face of staggering success, and a natural inclination to be respectful of employees and competitors. Involve employees in decision making The leader entrusts decision making to an employee of a group of employees

How Far Can You Go?Andrea Jung has enjoyed a considerable amount of success in her corporate career. When you consider the basics of her leadership style, its not hard to understand that success.

From her words about leadershipIm a firm believer that when you have this job you have the privilege and responsibility of influence influence to every constituent, to your associates, to your community, influence to your consumer. And that influence can be translated into passion in the work. It gets you through all the tough parts of the job the extraordinary ability to change womens lives through the work, said Andrea Jung, Chairman and CEO of Avon Products Inc.

How Far Can You Go?

*You want your organization to keep their nose out of trouble?....find a Bureaucratic Leader!

Bureaucratic leadership is where the manager manages by the book. Everything must fall according to procedure or policy. I it is not covered by the book, the manager refers to the next level above him or her.

When considering leadership traits, Integrity is often listed as one of the most valuable traits a leader could possess. Bureaucratic leaders demonstrate the meaning of integrity beautifully. When do we need leaders with an abundance of integrity and when do we want Bureaucratic Leaders?....*The bureaucratic style is most effective when there is a need to be concerned about procedure, safety, and specific, technical tasks.

This style is ineffective when: --Work habits form that are hard to break, especially if they are no longer useful. --Employees lose their interest in their jobs and in their fellow workers. --Employees do only what is expected of them and no more.

*Can you think of some Bureaucratic Leaders?Police were already mentionedAdministrative positions

Where are some places/organizations where we might need Bureaucratic Leaders?Law enforcement absolutely needs bureaucratic leaders. In their professions, law enforcers do not have room to wiggle their toes, and they must be sure to dot their Is and cross their Ts. It is important to consider how important it is for organizations that are funded by state tax dollars to have some bureaucratic leaders to monitor and lead others to be efficient and effective.Anytime there is an exchange of money, or someone is required to manage money, we hope to have bureaucratic leaders, or people with bureaucratic skills in those positions.

On a side note, what kind of connections might there be between bureaucratic leadership and stress management?!*The coercive leadership style, focuses on the use, and possibly abuse of power. While coercive power can produce results in the short term, it relies on intimidation to do so and will backfire badly if used as the sole base for exerting influence.

At first glance, most people incorrectly assume that a leader can only be effective if he or she has access to the formal levers of power: Legitimate Power, which comes from the position a person holds; Reward Power, which comes from his or her ability to give rewards; Information Power, which comes from exclusive access to information; and Coercive Power. The best leaders rely on more subtle forms of power:Expert Power: Where followers do what theyre asked because they respect the leaders knowledge and expertise and, because of such, trust him or her to give the best guidance; and Referent Power: Where followers admire and seek to emulate the leader, and want to receive his or her approval.

Good leaders use coercive power only as a last resort because coercion reduces employees satisfaction with their jobs, leading to lack of commitment and general employee withdrawal.

Think about how you feel when you get coerced into doing something. How would you like to be led that way?...

*Obviously, by the shortness of the list on this slide, coercive leadership is not highly desirable, nor is it commonly used. However, there are still times when a coercive style could be valuable

In times of economic crisis or threats to the survival of the organization at large, coercion may come to the forefront. Coercive power may also materialize as organizations attempt to streamline their operations for efficiency. In those types of situations, it employees must be fired, those who fail to conform to the organizational goals for survival will be most likely candidates for termination.

The threat of termination for failure to comply, in turn, is coercive power.

Where might we see coercive power used today?.....*Coercive leaders are not nearly as recognizable as others, probably because it is not the most highly desirable leadership style to exemplify.

The first illustration represents chaos and crisis. We know that there have been many instances where crisis has occurred. For example, think about the New Orleans situation when Hurricane Katrina hit last summer. Considering the state of emergency those Americans were in, do you think it was valuable to have coercive leaders present?

Although Donald Trump may not be a coercive leader, the phrase he is most famous for demonstrates the ideas of a coercive leader, Youre Fired! Unfortunately, there are times when the need to take action arisein those times, we may need coercive leadership styles present to get it done.*Some researchers added to Burns original theory and it is thought by many today that transactional leadership can encompass four types of behavior. 1. Contingent Reward To influence behavior, the leader clarifies the work needed to be accomplished. The leader uses rewards or incentives to achieve results when expectations are met.2. Passive Management by Exception - To influence behavior, the leader uses correction or punishment as a response to unacceptable performance or deviation from the accepted standards.3. Active Management by Exception - To influence behavior, the leader actively monitors the work performed and uses corrective methods to ensure the work is completed to meet accepted standards.4. Laissez-Faire Leadership The leader is indifferent and has a hands-off approach toward the workers and their performance. This leader ignores the needs of others, does not respond to problems or does not monitor performance.Transactional leadership behavior is used to one degree or another by most leaders. However, as the old saying goes, if the only tool in your workbox is a hammeryou will perceive every problem as a nail. A leader should not exclusively or primarily practice transactional leadership behavior to influence others! Here are a few common problems of those who do so. Some use transactional leadership behavior as a tool to manipulate others for selfish personal gain. It can place too much emphasis on the bottom line and by its very nature is short-term oriented with the goal of simply maximizing efficiency and profits. The leader can pressure others to engage in unethical or amoral practices by offering strong rewards or punishments. Transactional leadership seeks to influence others by exchanging work for wages, but it does not build on the workers need for meaningful work or tap into their creativity. If utilized as the primary behavior by a leader it can lead to an environment permeated by position, power, perks and politics. The most effective and beneficial leadership behavior to achieve long-term success and improved performance is transformational leadership.*If I do this for youwhat can you do for me?

Music to your ears? Probably not!, but it is something you might hear from a Transactional Leader!So, when would we want to hear those words?

Most of the consideration of when the style would be used is based on the leader themselves. Since the transactional leader views the leader-follower relationship as a process of exchange, they would choose to use it in situations where relationships are of little importance and are short-lived.

You might be noticing a trend among some of the leadership styles by now. The Transactional leadership style closely parallels some of the ideas, pertaining to relationships, as the autocratic, bureaucratic, and coercive styles.

Lets look now at the other style, often studied in conjunction with Transactional LeadersTransformational*Transformational leadership is about hearts and minds, about empowering people not controlling them.

4 theories of Transformational Leadership included:Management by Command Unsophisticated management in which subordinates are told what to do and have little say in what and when.

Management by Objectives Process management in which subordinates are given goals and decide how to achieve them.

Management by Communication Sophisticated organizations in which skilled subordinates deduce their own goals by learning about the needs of the organization.

4. Management by Vision In which management is about inspiring people to achieve what only they know they can achieve by concentrating on what is possible.

Transformational leaders are more visionary and inspirational in approach. They tend to communicate a clear and acceptable vision and goals, with which employees can identify and tend to engender intense emotion in their followers. Rather than exchanging rewards for performance, transformational leaders attempt to build ownership on the part of group members, by involving the group in the decision process. When transformational leaders are successful, they are able to move followers from external to internal control.*While it is important to have leaders with the appropriate orientation defining tasks and managing interrelationships, it is even more important to have leaders who can bring organizations into futures they have not yet imagined. Transformational leadership is the essence of creating and sustaining competitive advantage.

*Today, the phrase, the only constant is change, seems truer and truer. Change is inevitable, therefore, we should seek leadership and use leadership styles that embrace change.

Changing organizations to be motivational when members are resistant, to be purposeful when members are not directed, and to be visionary for long term goals. Transformational leadership can be one of the best resources for organizational change.

Because it lends itself to successful change, the latest paradigm shift has directed scholars toward focusing on transformational leadership more than they ever have.