1. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Aspects of Leadership Daniel F. Jennings Ph.D., PE Andrew Rader Professor of Industrial Distribution Texas A&M University

2. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution What Leadership Involves Influence IntentionFollowers Personal Responsibility Shared Purpose Change Leader

3. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution The New Reality For Leadership OLD ParadigmNEW Paradigm Industrial Age Stability Control Competition Things Uniformity Information Age Change Empowerment Collaboration People and relationships Diversity

4. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution TOP 7 REASONS FOR EXECUTIVE DERAILMENT 1.Insensitive, abrasive, intimidating, bullying style 2.Cold, aloof, arrogant 3.Betrayal of personal trust 4.Overly ambitious, self-centered, thinking of next job, playing politics 5.Specific performance problems with the business 6.Over managing: unable to delegate or build a team 7.Unable to select good subordinates

5. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution TODAY’S MANAGEMENT – LEADERSHIP MIX Strong Weak MANAGEMENT Weak LEADERSHIP Too manyAlmost none Too many Too few Strong

6. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 1.Unconscious incompetence 2.Conscious incompetence 3.Conscious competence 4.Unconscious competence Non leader LEADER Learning Stages To Become A Leader

7. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Planning Select goals and ways to obtain them Controlling Monitor activities and Make corrections Organizing Assign authority and responsibility for task accomplishment Directing Motivate and coordinate employees Staffing Recruit and obtain employees THE TRADITIONAL FUNCTIONS OF MANAGEMENT

8. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Micro Macro Scope StableChaotic Environment LEADERSHIP EVOLUTION Era 2 Rational Management Behavior theories Contingency theories Setting: Vertical hierarchy, bureaucracy Five management functions Era 3 Team Leadership Confusion Empowerment Setting: Horizontal organization Cross-functional teams Downsizing Era 1 Great Man Leadership Trait theories Setting Pre-bureaucratic organization Administrative principles Era 4 Facilitating Leadership Shared vision, alignment, relationships Unlock personal qualities in others Setting: Learning organization Constant change, adaption

9. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Planning and budgeting Keeping eye on bottom line Organizing and staffing Directing and controlling Create boundaries Focusing on objects – producing/selling goods and services Based on position power Acting on boss Emotional distance Expert mind Talking Conformity Insight into organization Maintains stability COMPARING MANAGEMENT AND LEADERSHIP Creating vision and strategy Keeping eye on horizon Creating shared culture and values Helping others grow Reduce boundaries Focusing on people-inspiring and motivating followers Based on personal power Acting as coach, facilitator, servant Emotional connections (Heart) Open mind (Mindfulness) Listening (Communication) Nonconformity (Courage) Insight into self (integrity) Creates change, often radical change ManagementLeadership Direction Alignment Relationships Personal Qualities Outcomes

10. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Leaders solves the problem or makes the decision Leader is willing to accept any decision supported by the entire group Using information available at the time, the leader solves the problem or makes the decision The leader obtains necessary information from employees, and then selects a solution to the problem. When asked to share information, employees may or may not be told what the problem is. The leader shares the problem and gets ideas and suggestions from relevant employees on an individual basis. Individuals are not brought together as a group. Then the leader makes the decision, which may or may not reflect their input The leader shares the problem with employees as a group, obtains their ideas and suggestions, and then makes the decision, which may or may not reflect their input. The leader shares the problem with employees as a group. Together, the leader and employees generate and evaluate alternatives and try to reach an agreement on a solution. The leader acts as a facilitator and does not try to influence the group. The leader is willing to accept and implement any solution that has the support of the entire group. Normative Theory, Decision Styles and Levels of Employee Participation

11. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution CHARISMATIC LEADER BEHAVIORS ETHICAL CHARISMATICS UNETHICAL CHARISMATICS Ethical and Unethical Charismatics Exercising power Power is used to serve others Power is used to dominate or manipulate others for personal gain Creating the vision Followers help develop the vision Vision comes solely from the leader and serves his or her personal agenda Communicating with followers Two-way communication: Seek out viewpoints on critical issues. One-way communication: Not open to input and suggestions from others. Accepting feedback Open to feedback. Willing to learn from criticism Inflated ego thrives on attention and admiration of sycophants. Avoid or punish candid feedback.

12. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution CHARISMATIC LEADER BEHAVIORS ETHICAL CHARISMATICS UNETHICALCHARISMATICS. Ethical and Unethical Charismatics Stimulating followers Want followers to think and question status quo as well as leader’s views Don’t want followers to think. Want uncritical, intellectually unquestioning acceptance of leader’s ideas. Developing followers Focus on developing people with whom they interact. Express confidence in them and share recognition with others Insensitive and unresponsive to followers needs and aspirations. Living by moral standards Follow self-guided principles that my go against popular opinion. Have three virtues: Courage, a sense of fairness or justice, and integrity. Follow standards only if they satisfy immediate self-interests. Manipulate impressions so that others think they are “doing the right thing.” Use communication skills to manipulate others to support their personal agenda

13. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution The Five Practices And Ten Commitments Of Leadership. Model the Way Inspire a Shared Vision Challenge the Process Enable Others to Act Encourage the Heart 1.Clarify values by finding your voice and affirming shared ideals. 2.Set the example by aligning actions with shared values. 3.Envision the future by imagining exciting and ennobling possibilities 4.Enlist others in a common vision by appealing to shared aspirations 5. Search for opportunities by seizing the initiative and by looking outward for innovative ways to improve. 6.Experiment and takes risks by constantly generating small wins and learning from experience. 7. Foster collaboration by building trust and facilitating relationships 8. Strengthen others by increasing self-determination and developing competence 9.Recognize contributions by showing appreciation for individual excellence 10.Celebrate the values and victories by creating a spirit of community

14. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Ways to Influence Your Leader Be a Resource for the Leader What are leader’s needs? Zig where leader zags Tell leader about you Align self to team purpose/vision Help the Leader be a Good Leader Ask for advice Tell leader what you think Find things to thank leader for Build a Relationship Ask about leader at your level/position Welcome feedback and criticism, such as “what experience led you to that opinion?” Ask leader to tell you company stories. View the leader Realistically Give up idealized leader images Don’t hide anything Don’t criticize leader to others Disagree occasionally

15. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Blake/Mouton Leadership Grid 1,9 Country Club Management Thoughtful attention to needs of people for satisfying relationships leads to a comfortable, friendly organization atmosphere and work tempo 9,9 Team Management Work accomplished is from committed people: interdependence through a “common stake” in organization purpose leads to relationships of trust and respect 5,5 Middle –of-the- Road Management Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level 1,1 Impoverished Management Exertion of minimum effort to get required work done in appropriate to sustain organization membership 9,1 Authority Compliance Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree Concern for People Concern for Production 1 2 3 4 5 6 7 8 9 1 23456789 High Low High

16. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Leadership Traits/behaviors Outcomes (Performance,satisfaction,etc ) Outcomes (Performance, satisfaction,etc ) Universalistic Approach e.g., Needs Maturity Training Cohesion Followers Contingency Approach e.g., Task Structure Systems Environment Situation e.g., Style Traits Behavior Position Leader Comparing the Universalistic and Contingency Approaches to Leadership

17. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Manager “Sells” decision Manager presents tentative decision subject to change Manager permits subordinates to function within limits defined by superior Manager presents problem, gets suggestions, makes decision Manager presents ideas and invites questions Manager makes decision and announces it Use of authority by manager Area of freedom for subordinates Boss-Centered Leadership Subordinate-Centered Leadership LEADERSHIP CONTINUUM

18. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution CategoryRoleActivity InformationalMonitorSeek and receive information, scan periodicals and reports, maintain personal contacts. DisseminatorForward information to other organization members; send memos and reports; make phone calls. SpokespersonTransmit information to outsiders through speeches, reports, memos. InterpersonalFigureheadPerform ceremonial and symbolic duties such as greeting visitors, signing legal documents. LeaderDirect and motivate subordinates; train, counsel, and communicate with subordinates LiaisonMaintain information links both inside and outside organization; use mail, phone calls, meetings. DecisionalEntrepreneurInitiate improvement projects; identify new ideas; delegate idea responsibility to others Disturbance Handler Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crises. Resource allocator Decide who gets resources; schedule, budget, set priorities NegotiatorRepresent department during negotiation of union contracts, sales purchases, budgets; represent departmental interests. Manager Roles

19. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Daniel F. Jennings, Ph.D., P.E. Texas A&M University 3367 TAMU College Station, TX 77843-3367 Phone: (979) 845-4984 Fax: (979) 845-4980 djennings@tamu.edu