L E A D E R S H I P O R

C O N T E S T G A N I Z A T I O

E S S E N C E

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Module: MOD070

INDEX I LUNDOJI PINTO DA SILVA declare that I am the sole author of this assignment and the work is a result of my own investigations, except where otherwise stated. All references have been duly cited

PART I: LITERATURE REVIEW OF THE KEY THEORIES IN NATURE AND OBJECTIVE ABOUT LEADERSHIP
Leadership in analysis.....4 Leadership Vs management.......4 Development of leadership studies Leadership.........5 Leadership behaviour approach....6, 7 Contingency approach7- 9 Recent developments 9 Leader-member exchange theory...10 Transformational Leadership....10, 11 Substitutes for leadership theory11 Servant leader..11, 12 Historical leadership........12, 13 Modern Leadership13 - 15

PART II: EVALUATION OF THE BEHAVIOUR OF SELECTED LEADERS FROM

PART III: EVALUATION OF HOW THE TWO LEADERS PERCEIVE THEIR ROLE
AND WHAT HAS HELPED THEM TO DEVELOP AS LEADERS Leader A.20 Leader B20, 21 2

PART IV: SUMMARY OF LEARNING OF THIS ASSIGMENT FOR MY

PART V: CONCLUDING THE LEADERSHIP DILEMMA:

PART I
1. LITERATURE REVIEW OF THE KEY THEORIES IN NATURE AND OBJECTIVE ABOUT LEADERSHIP
LEADERSHIP IN ANALISYS Leadership is one of the most frequent studied topics in the organizational sciences. A considerable number of leadership studies have been published and millions of pages on leadership have been written in academic books, journals, business-oriented publications, and general-interest publications. Despite this, the nature of leadership and its relationship to key criterion variables such as: subordinate satisfaction, commitment, and performance is still uncertain, to the point where Fred Lufthansa, in his book Or7ganizational Behaviour (2005), said that "it [leadership] does remain pretty much of a 'black box' or unexplainable concept." So many well-known scientists have made clear that Leadership can be defined as a process by which one individual influences others toward the attainment of group or organizational goals. Three points about the definition of leadership should be emphasized: 1. Leadership is a social influence process. Leadership cannot exist without a leader and one or more followers. 2. Leadership elicits voluntary action on the part of followers. The voluntary nature of compliance separates leadership from other types of influence based on formal authority. 3. Leadership results in followers' behaviour that is purposeful and goaldirected in some sort of organized setting. Many, although not all, studies of leadership focus on the nature of leadership in the workplace. LEADERSHIP VS MANAGEMENT Leadership should be distinguished from management. Management involves planning, organizing, staffing, directing, and controlling. Manager normally very involved in the implementation of all the above. Managers have formal authority by virtue of his or her position in the office. Leadership deals with influence. A manager may or may not be an effective leader. A leader's ability to influence others may be based on 4

a variety of factors other than his or her formal authority or position. Normally leaders are unique in the way they do things, in other words they are mostly motivated by principles that are latter translated into great results. DEVELOPMENT OF LEADERSHIP STUDIES AND KEY LEADERSHIP THEORIES Three main theoretical frameworks have dominated leadership research at different points in time. These included the trait approach (1930s and 1940s), the behavioural approach (1940s and 1950s), and the contingency or situational approach (1960s and 1970s). Table 1 (page 24) summarizes leadership theories from the time of introduction. TRAIT APPROACH The scientific study of leadership began with a focus on the traits of effective leaders. The basic premise behind trait theory was that effective leaders are born, not made, thus the name sometimes applied to early versions of this idea, the "great man" theory. Many leadership studies based on this theoretical framework were conducted in the 1930s, 1940s, and 1950s. Leader trait research examined the physical, mental, and social characteristics of individuals. In general, these studies simply looked for significant associations between individual traits and measures of leadership effectiveness. Physical traits such as height, mental traits such as intelligence, and social traits such as personality attributes were all subjects of empirical research. The initial conclusion from studies of leader traits was that there were no universal traits that consistently separated effective leaders from other individuals. In an important review of the leadership literature published in 1948, Ralph Stogdill concluded that the existing research had not demonstrated the utility of the trait approach. Several problems with early trait research might explain the perceived lack of significant findings. First, measurement theory at the time was not highly sophisticated. Little was known about the psychometric properties of the measures used to operationalize traits. As a result, different studies were likely to use different measures to assess the same construct, which made it very difficult to replicate findings. In addition, many of the trait studies relied on samples of teenagers or lower-level managers. Early trait research was largely a theoretical, offering no explanations for the proposed relationship between individual characteristics and leadership. 5

Finally, early trait research did not consider the impact of situational variables that might moderate the relationship between leader traits and measures of leader effectiveness. As a result of the lack of consistent findings linking individual traits to leadership effectiveness, empirical studies of leader traits were largely abandoned in the 1950s. LEADER BEHAVIOR APPROACH Partially as a result of the disenchantment with the trait approach to leadership that occurred by the beginning of the 1950s, the focus of leadership research shifted away from leader traits to leader behaviors. The premise of this stream of research was that the behaviours exhibited by leaders are more important than their physical, mental, or emotional traits. The two most famous behavioural leadership studies took place at Ohio State University and the University of Michigan in the late 1940s and 1950s. These studies sparked hundreds of other leadership studies and are still widely cited. The Ohio State studies utilized the Leader Behaviour Description Questionnaire (LBDQ), administering it to samples of individuals in the military, manufacturing companies, college administrators, and student leaders. Answers to the questionnaire were factor-analyzed to determine if common leader behaviours emerged across samples. The conclusion was that there were two distinct aspects of leadership that describe how leaders carry out their role. Two factors, termed consideration and initiating structure, consistently appeared. Initiating structure, sometimes called task-oriented behaviour, involves planning, organizing, and coordinating the work of subordinates. Consideration involves showing concern for subordinates, being supportive, recognizing subordinates' accomplishments, and providing for subordinates' welfare. The Michigan leadership studies took place at about the same time as those at Ohio State. Under the general direction of Rensis Likert, the focus of the Michigan studies was to determine the principles and methods of leadership that led to productivity and job satisfaction. The studies resulted in two general leadership behaviours or orientations: an employee orientation and a production orientation. Leaders with an employee orientation showed genuine concern for interpersonal relations. Those with a production orientation focused on the task or technical aspects of the job. The conclusion of the Michigan studies was that an employee orientation and general instead of close supervision yielded better results. Likert eventually developed four "systems" of management based on these studies; he advocated System 4 (the participative6

group system, which was the most participatory set of leader behaviours) as resulting in the most positive outcomes. One concept based largely on the behavioural approach to leadership effectiveness was the Managerial (or Leadership) Grid, developed by Robert Blake and Jane Mouton. The grid combines "concern for production" with "concern for people" and presents five alternative behavioural styles of leadership. An individual who emphasized neither production was practicing "impoverished management" according to the grid. If a person emphasized concern for people and placed little emphasis on production, he was terms a "country-club" manager. Conversely, a person who emphasized a concern for production but paid little attention to the concerns of subordinates was a "task" manager. A person who tried to balance concern for production and concern for people was termed a "middle-of-the-road" manager. Finally, an individual who was able to simultaneously exhibit a high concern for production and a high concern for people was practicing "team management." According to the prescriptions of the grid, team management was the best leadership approach. The Managerial Grid became a major consulting tool and was the basis for a considerable amount of leadership training in the corporate world. The assumption of the leader behaviour approach was that there were certain behaviours that would be universally effective for leaders. Unfortunately, empirical research has not demonstrated consistent relationships between task-oriented or person-oriented leader behaviours and leader effectiveness. Like trait research, leader behaviour research did not consider situational influences that might moderate the relationship between leader behaviours and leader effectiveness. CONTINGENCY APPROACH Contingency or situational theories of leadership propose that the organizational or work group context affects the extent to which given leader traits and behaviours will be effective. Contingency theories gained prominence in the late 1960s and 1970s. Four of the more wellknown contingency theories are Fiedler's contingency theory, pathgoal theory, the Vroom-Yetton-Jago decision-making model of leadership, and the situational leadership theory. Each of these approaches to leadership is briefly described in the paragraphs that follow. Introduced in 1967, Fiedler's contingency theory was the first to specify how situational factors interact with leader traits and behaviour to influence leadership effectiveness. The theory suggests that the 7

"favourability" of the situation determines the effectiveness of task- and person-oriented leader behaviour. Favourability is determined by (1) the respect and trust that followers have for the leader; (2) the extent to which subordinates' responsibilities can be structured and performance measured; and (3) the control the leader has over subordinates' rewards. The situation is most favourable when followers respect and trust the leader, the task is highly structured, and the leader has control over rewards and punishments. Fiedler's research indicated that task-oriented leaders were more effective when the situation was either highly favourable or highly unfavourable, but that person-oriented leaders were more effective in the moderately favourable or unfavourable situations. The theory did not necessarily propose that leaders could adapt their leadership styles to different situations, but that leaders with different leadership styles would be more effective when placed in situations that matched their preferred style. Fiedler's contingency theory has been criticized on both conceptual and methodological grounds. However, empirical research has supported many of the specific propositions of the theory, and it remains an important contribution to the understanding of leadership effectiveness. Path-goal theory was first presented in a 1971 Administrative Science Quarterly article by Robert House. Path-goal theory proposes that subordinates' characteristics and characteristics of the work environment determine which leader behaviours will be more effective. Key characteristics of subordinates identified by the theory are locus of control, work experience, ability, and the need for affiliation. Important environmental characteristics named by the theory are the nature of the task, the formal authority system, and the nature of the work group. The theory includes four different leader behaviours, which include directive leadership, supportive leadership, participative leadership, and achievement-oriented leadership. According to the theory, leader behaviour should reduce barriers to subordinates' goal attainment, strengthen subordinates' expectancies that improved performance will lead to valued rewards, and provide coaching to make the path to payoffs easier for subordinates. Pathgoal theory suggests that the leader behaviour that will accomplish these tasks depends upon the subordinate and environmental contingency factors. Path-goal theory has been criticized because it does not consider interactions among the contingency factors and also because of the complexity of its underlying theoretical model, expectancy theory. 8

Empirical research has provided some support for the theory's propositions, primarily as they relate to directive and supportive leader behaviours. The Vroom-Yetton-Jago decision-making model was introduced by Victor Vroom and Phillip Yetton in 1973 and revised by Vroom and Jago in 1988. The theory focuses primarily on the degree of subordinate participation that is appropriate in different situations. Thus, it emphasizes the decision-making style of the leader. There are five types of leader decision-making styles, which are labelled AI, AII, CI, CII, and G. These styles range from strongly autocratic (AI), to strongly democratic (G). According to the theory, the appropriate style is determined by answers to up to eight diagnostic questions, which relate to such contingency factors as the importance of decision quality, the structure of the problem, whether subordinates have enough information to make a quality decision, and the importance of subordinate commitment to the decision. The Vroom-Yetton-Jago model has been criticized for its complexity, for its assumption that the decision makers' goals are consistent with organizational goals, and for ignoring the skills needed to arrive at group decisions to difficult problems. Empirical research has supported some of the prescriptions of the theory. The situational leadership theory was initially introduced in 1969 and revised in 1977 by Hersey and Blanchard. The theory suggests that the key contingency factor affecting leaders' choice of leadership style is the task-related maturity of the subordinates. Subordinate maturity is defined in terms of the ability of subordinates to accept responsibility for their own task-related behaviour. The theory classifies leader behaviours into the two broad classes of task-oriented and relationship-oriented behaviours. The major proposition of situational leadership theory is that the effectiveness of task and relationshiporiented leadership depends upon the maturity of a leader's subordinates. Situational leadership theory has been criticized on both theoretical and methodological grounds. However, it remains one of the betterknown contingency theories of leadership and offers important insights into the interaction between subordinate ability and leadership style.

RECENT DEVELOPMENTS Although trait, behavioural, and contingency approaches have each contributed to the understanding of leadership, none of the 9

approaches have provided a completely satisfactory explanation of leadership and leadership effectiveness. Since the 1970s, several alternative theoretical frameworks for the study of leadership have been advanced. Among the more important of these are leadermember exchange theory, transformational leadership theory, the substitutes for leadership approach, and the philosophy of servant leadership. LEADER-MEMBER EXCHANGE THEORY Leader-member exchange (LMX) theory was initially called the vertical dyad linkage theory. The theory was introduced by George Graen and various colleagues in the 1970s and has been revised and refined in the years since. LMX theory emphasizes the dyadic (i.e., oneon-one) relationships between leaders and individual subordinates, instead of the traits or behaviours of leaders or situational characteristics. The theory's focus is determining the type of leader-subordinate relationships that promote effective outcomes and the factors that determine whether leaders and subordinates will be able to develop high-quality relationships. According to LMX theory, leaders do not treat all subordinates in the same manner, but establish close relationships with some (the in-group) while remaining aloof from others (the out-group). Those in the in-group enjoy relationships with the leader that is marked by trust and mutual respect. They tend to be involved in important activities and decisions. Conversely, those in the out-group are excluded from important activities and decisions. LMX theory suggests that high-quality relationships between a leadersubordinate dyad will lead to positive outcomes such as better performance, lower turnover, job satisfaction, and organizational commitment. Empirical research supports many of the proposed relationships (Steers et al., 1996). TRANSFORMATIONAL LEADERSHIP THEORIES Beginning in the 1970s, a number of leadership theories emerged that focused on the importance of a leader's charisma to leadership effectiveness. Included within this class of theories are House's theory of charismatic leadership, Bass's transformational leadership theory, and Conger and Kanungo's charismatic leadership theory. These theories have much in common. They all focus on attempting to explain how leaders can accomplish extraordinary things against the 10

odds, such as turning around a failing company, founding a successful company, or achieving great military success against incredible odds. The theories also emphasize the importance of leaders' inspiring subordinates' admiration, dedication, and unquestioned loyalty through articulating a clear and compelling vision. Transformational leadership theory differentiates between the transactional and the transformational leader. Transactional leadership focuses on role and task requirements and utilizes rewards contingent on performance. By contrast, transformational leadership focuses on developing mutual trust, fostering the leadership abilities of others, and setting goals that go beyond the short-term needs of the work group. Bass's transformational leadership theory identifies four aspects of effective leadership, which include charisma, inspiration, intellectual stimulation, and consideration. A leader who exhibits these qualities will inspire subordinates to be high achievers and put the long-term interest of the organization ahead of their own short-term interest, according to the theory. Empirical research has supported many of the theory's propositions. SUBSTITUTES FOR LEADERSHIP THEORY Kerr and Jermier introduced the substitutes for leadership theory in 1978. The theory's focus is concerned with providing an explanation for the lack of stronger empirical support for a relationship between leader traits or leader behaviours and subordinates' satisfaction and performance. The substitutes for leadership theory suggest that characteristics of the organization, the task, and subordinates may substitute for or negate the effects of leadership, thus weakening observed relationships between leader behaviours and important organizational outcomes. Substitutes for leadership make leader behaviours such as taskoriented or relationship-oriented unnecessary. Characteristics of the organization that may substitute for leadership include formalization, group cohesiveness, inflexible rules, and organizational rewards not under the control of the leader. Characteristics of the task that may substitute for leadership include routine and repetitive tasks or tasks that are satisfying. Characteristics of subordinates that may substitute for leadership include ability, experience, training, and job-related knowledge. The substitutes for leadership theory have generated a considerable amount of interest because it offers an intuitively appealing explanation for why leader behaviour impacts subordinates in some situations but not in others. However, some of its theoretical 11

propositions have not been adequately tested. The theory continues to generate empirical research. SERVANT LEADER This approach to leadership reflects a philosophy that leaders should be servants first. It suggests that leaders must place the needs of subordinates, customers, and the community ahead of their own interests in order to be effective. Characteristics of servant leaders include empathy, stewardship, and commitment to the personal, professional, and spiritual growth of their subordinates. Servant leadership has not been subjected to extensive empirical testing but has generated considerable interest among both leadership scholars and practitioners. Leadership continues to be one of the most written about topics in the social sciences. Although much has been learned about leadership since the 1930s, many avenues of research still remain to be explored as we enter the twenty-first century. HISTORICAL LEADERSHIP Ancient leadership styles and behaviours have influenced what we see today in any organization. Since the times of the Great Egyptian, Greek, Med-Persian and Roman Empire, the figure of the Emperor/leader was described as a strong, know- ledged, fearful, and illuminated, god sent, immortal and divine human being. Is there any relationship between yearly leadership style and new ones? History has proven that yearly Egyptian Emperors/kings did use the chain of command and the pyramid of control in order to lead their followers in order to build cities, temples, and go to war and establish their kingdom. Each man had a position and specific duty to fulfil in order to accomplish the goals of the Emperor. Orders came from above no man had the right to make decisions unless given by the emperor/king or by his trusted men. Any men that did follow the emperor orders could face death. The emperor was a dictator, but sometimes had to become theocratic in order to receive counselling from other governors and representatives of the kingdom.

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Yearly leadership theories did see the true leader as a: born leader, coming from a genetic blood line, true evidence of his unique qualities Today organizations do have a chain of command, a pyramid of control with duties and responsibilities for each member. The top level managers are responsible for setting up the goals, strategies and aim of the organization. Middle managers are responsible for implementing goals and objectives of the organization, lower level members would simply execute pre-planned duties. Today organizations do have a code of ethics in order to keep the balance between right and wrong doing if members fail certainly they will be punished, certainly not with death but they will loose their job. MODERN LEADERSHIP Modern leaders have become more involved with their internal affairs and much less divinely seem by their followers. Information and technology closed the gap of the very well informed and uninformed today its almost impossible to cement a legacy without proven facts, because followers are more reluctant to follow just any one. Below we mention some of what we call world changers: 1. Raymond Ackerman: Founder of the Pickn Pay Food Retail business well known for its Four legs of the table leadership principle, his philosophy was crucial for the establishment of one the most successful superstore retail franchise in Africa: Picks Pay. For Raymond A. the table is your business, the centre piece of the table is Customer sovereignty, then four legs: Administration, merchandise, promotions/social responsibility, and people. After thirty years still most companies do see how important it is to retain customer satisfaction at optimum level. 2. Martin Luther king Jr.: Activist and pastor, lead the fight against racism and fundamental human rights in the United States of America. 3. Nelson Mandela: Main figure beyond the apartheid regime liberation fight and establishment of sovereign democracy in South Africa. The downfall of apartheid was crucial for the establishment of democracy in Africa. 13

4. Abraham Lincom: one the greatest presidents of America, a man know for his honesty and integrity of character. Under his administration important bills were passed that helped to strength the economy. Was one the few presidents trying pass a bill in order prevent the FED to control money creation and supply. 5. Warren Buffet: C.E.O of the Berkshire Waltaway investment group owns 83 businesses. Known for his unique investment style, he is the real master of investment in the world. Just 3 years before the current economic/financial crisis he warned the Fed and Investors about the threat of sub-mortgages. As described by Warren Buffet the word Leadership represents the qualities that good managers and leaders should have: o o o o o o o o o o L for loyalty E for enthusiasm A for attitude D for discipline E for example R for respect S for scholarness H for honesty I integrity P for pride

Warren Buffets definition of organizational success is directly linked to the way we treat people in and out of the organization in order to achieve goals. Most organizations spend considerable amounts of money to make sure that goals are achieved, and that is not bad at all. Problem is that when we cut costs with human capital we are definitely cutting important members of the organization. Profit is the blood stream of the business, not the head, feet, arms or the heart of the business. Question is: will the goals work for the people you employ? Or will the people work in order to accomplish organizational goals? 6. Bill Gates: founder and ex-CEO of Microsoft, is well know for brilliant idea about 20 years ago, when he visualised that a large majority of people would be using a Personal computer and therefore a Operational System to run it. Today Microsoft is one the largest I.T companies in the world with a market cap of over 200 Billion and more than 10 years of sustainable growth. 14

As a leader, Bill Gates inspires his team to understand that technology will not be same in the years to come and that Microsoft is there to change it. His unique capacity relies in the fact that he inspires his team to visualize the future of the IT Industry.

His leadership style is unique and simple in principle. The foundation of his leadership style relies in 10 secrets: Be in the right place at the right time: its difficult to translate all success for Microsoft if it wasnt for the contract with IBM Have passion for what you do: feel in love with what you do (technology) Do not make prisoners: Think as a winner, act like a winner, be fierce with competition All always employee bright people: Being bright its not about experience; its about peoples with very high I.Q. and passion. Learn to survive: In order to keep a head with competition, Bill Gates engineered an organizational structure that looks like a University campus. Not very often companies would value knowledge so much like Microsoft. The concept of a Learning Organization Its based on the works of Chris Argyris Harvards Business School and Peter Senge from Sloan School of Business at Massachusetts Institute of Technology (MIT)

In principle a learning organization, its a group of people that its always striving to increase its capacity to create the future Do not wait for compliments: For Gates his leadership style has proven results, but as he is well aware that competition will never be happy about its style and strategies that have driven some companies out of business. Assume a Visionary position: if people had to ask me: why do I need to climb that mountain? I would reply, because the mountain is there.

Sit and think, we pay our staff to sit and think about the future of IT Speak the right language. I communicate in a language that my software engineers understand 15

Well succeed companies are those that consider their products outdated before any one does Its worth later than never. Microsoft could very well become outdated in the 90s since it failed to recognize the power of the internet and its users on time. Luckily Microsoft had enough resources to for a serious recovery. Cover the whole field: Diversify your product line. When we launch new products some will fail, but the combined result will be positive. Build small business units like bytes: Create a culture of small teams. The best software comes from a small group of software developers. Never, ever take youre yeis from the ball: Over time softwares become outdated; our best strategy is to innovate the next software.

PART II
2. EVALUATION OF THE BEHAVIOUR OF SELECTED LEADERS FROM SPECIFIC ORGANIZATIONS, IN CONNECTION WITH THE TEORIES STUDIED:

*Information was collected through series of live interviews

Participative leadership 3) Personal qualities? Honest and accurate he sticks to the company process, so that the team is able to perform their jobs. 4) Specific Traits as a Leader: He sets the example for the team; the employees need to follow the leader. 5) Whats your team role? Co-cordinator I enjoy Co-ordination, I normally stick to objectives; I tray to remain calm and controlled during crisis; I am able to be positive when the team is down 6) What is difference between a leader and a manager? Leader sets a good example and does the right thing Manager informs the employees what needs to be done and the employees carry out the instruction. 7) How do you respond to current financial challenges? Look for new businesses when they are losing customers. He welcomes new suggestions. Encourages positive attitudes They provide incentive structures in terms of monetary value. He also provides non monetary rewards to employees 8) What is your biggest challenge? Working with different people and motivating unhappy people. 9) How the fact that you become a leader did affect your life? . Being able to motivate different people, from different cultures . Became more responsible for my decisions 17

. Become aware that I was responsible for a team that had to be looked after. . Took responsibility for tasks that didnt match my personality . Become more confident about the future of this organization, since my contribution was very positive Leader (B) Name: Nico Gobbler Position: Dealer Principal Company: FIAT/ALFA Pretoria dealership 1. What is your Leadership style? He uses a participative and commanding leadership style by setting goal and objectives with the team and them expects them to perform. He is the type of leader that is hands on the job. He listens to customer complaints, takes constructive criticism and uses it in a positive way. 1a) what is your leadership behaviour? Task oriented behaviour, since increase in sales comes first Autocratic leadership 2. Traits and skills: Possesses strong decisiveness and intellectual capacity to multitask 3. Personal qualities? Honest and consistent with the dealership vision 4. What is your team role? Shaper/Monitor He is Very aggressive (towards goals), disruptive (can use strong facts to get attention), impatient (intolerant towards failure of the team) 18

He ensures that the team members (sales) are taken through the training process in order to achieve goals. The whole process of coaching consists of showing them where their shortfalls are. Communication is extremely important and the information is cascaded to the team member through regular meetings 5. Which strategies do you use in order to motivate your team? Clear all communication, barriers, easy process setting, and effective reward system to motivate my team: . Communicate goals constantly . Keep CPI (Customer service index) at 92% . Keep excellent after sales service. . Use internet as a powerful tool to boost sales. 6. How did your leadership role affect your life? In my previous job at the Defence Force I lead a team of 20 people. For me this job was no different from the previous, the only difference was that auto-motor industry is surrounded by fierce competition. . Leading this team gave me an extra bust and experience to take this organization to the next level. . Leading this team enable me to develop my communication skills and better interact with different peoples. . Became more organized as a person, can now better identify problems and set a specific course of action when there is crisis.

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PART III
3. EVALUATION OF HOW THE TWO LEADERS PERCEIVE THEIR ROLE AND WHAT HAS HELPED THEM TO DEVELOP AS LEADERS? Leader (A) Name: Tommie Barkhuizen Position: Parts Manager Company: BMW Hatfield, Pretoria dealership For Tommie it was crucial to implement uncomplicated processes. His role as co-cordinator is to communicate the process and help the team understand and achieve goals set by BMW. The BMW headquarters sets high standards which at the end of the day need to be implemented by our team. As team leader, I was able to increase my ability to manage pressure and delegate effectively without compromising the job. I believe that good leaders should live by example, I live by example. I could not be a good leader if did have the passion and motivation to lead this team. I need to tell and show my team how to do things properly by setting the example.

Leader (B) Name: Nico Gobbler Position: Dealer Principal Company: FIAT/ALFA Pretoria dealership Nico Gobbler on the other hand sees his role more as a Shaper/Monitor. I have to allow certain degree of participation, but if goals are not achieve we need to come back to table to correct mistakes. If my team member can not perform them I have to let him go His previous job at Defence Force (10 years) enabled him to understand how to effectively manage teams and communicate

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goals. For him the Auto-Motor industry is a new challenge since competition is fierce and sales are essential to keep doors open. Since he was appointed as dealer principal at FIAT/ALFA Hatfield dealership, he was able to increase sales by 22%, increase dealership Customer Service Index (CPI) by 92%, provide regular training, reinforce rewards, encourage feedback and value performance. For him none of this would be possible if not for team work and discipline. He enforced that FIAT/ALFA had some difficult times. On the late 90s FIAT become well know for its assembly plant in South Africa, being branded as poorly managed. FIAT UNO which was one the best sellers in Europe become South Africans worse nightmare. Factory recalls and small defects blundered profits driving the company to a bad reputation. Eventually FIAT broke out from Nissan South Africa, to become more independent and implement a new strategy: . Build and assemble high quality vehicles (Strictly complying standards of FIAT Europe), . Increase customer satisfaction . Implement fair reward systems that work . Measure after sales service regularly (CPI) Only after few years of hard work, FIAT is ripping the rewards. The recently launched entry level FIAT 500 and the light commercial FIAT DUCATO are the best sellers.

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PART IV
4. SUMMARY OF LEARNING OF THIS ASSIGMENT FOR MY PRACTICE AND DEVELOPMENT:
We all have a calling to lead or to be leaded either in organization, political affiliations or religious organizations. We might say that we all have a leader within us requiring some degree of intelligence to influence others and fulfil certain tasks. Lessons to learn: Its of great importance to understand the core of leadership so that it can be exercised properly. Few important considerations: Leaders need followers to exercise power Followers can choose to follow or not follow leaders. Not all leaders where successful when leading organizations, Small mistakes bear great costs. Normally leaders display unique skills such: attention to detail, decisiveness, responsibility and endurance. Leaders do not have a specific list of personal qualities, but most tend to have some degree of: honesty, intelligence, vitality and loyalty. The best leader is that combines effectively two leadership behaviours: task and peoples oriented. Any individual can become a leader provided that he or she has a considerable influence over a number of followers and a defined objective. Its crucial for leader to influence teams in order to achieve goals, without then (team) tasks will not be accomplished.

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Modelling my path towards becoming a better leader: Need to Inspire a Shared Vision Need to become an inspirational raw model Need to Challenge the Process Need to Enable Others to Act Need to Encourage the Heart A Personal Inventory is crucial Need to Create an Action Plan Need to set Leadership Goals Will encourage growth into others Will encourage mutual respect Will Influencing others perspectives

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PART V
CONCLUDING THE LEADERSHIP DILEMMA: Geo-political factors and leadership: Geo-political and financial systems sometimes narrow the opportunity to reveal great leaders. Particularly in Africa, many countries still leave under dictatorship regimes where there is no freedom of speech, association, creativity and religion. Late in 80s to 90s Angolas public TV network had to resume/end broadcast after playing both national hymn and the ruling partys hymn every day. Every weekend there would be propaganda to venerate our leader a political speech, inflating

All news papers wrote good things about the same leader everyday. All associations were forbidden especially those that promoted entrepreneurship initiatives. The state had a piece of peoples mind, enabling it to manipulate dream, believes, fate to induce fear and mediocrity. The country was leaded by one leader; followers were forced to obey fearing the worse could happen to their lives. Private/Government organizations and leadership in Africa Sometimes organization decision makers fail to identify great leaders among teams simple because of bias either by tradition, religion, race, proficiency, culture or any other reason. For instance: South African companies are now forced by law to implement BEE (Black Economic Empowerment) a racist approach to the unemployment deficit facing this country. As a result many inexperienced leaders were selected just to fill empty posts. Poor decision making leading to an increase in corruption has put the countrys top leadership at the test.

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TABLE 1: Summary of Leadership Theories

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References: Buffet, M. and David, C. (2010), Warren Buffets Management Secrets, UK: Simon and Schuster Phillip, D. (2005), Four Legs of The Table, South Africa: New Africa Books Mascarenhas, O., Dias, N. and Monteiro, A. (2007), A Gestao Segundo Bill GatesBusiness Bill Gates Way, Portugal: Multitipo, Artes graficas Bernard M., Bruce, J., Dong, I. and Berso, A. (2003), "Predicting Unit Performance by Assessing Transformational and Transactional Leadership," Journal of Applied Psychology, 88, p. 207218. Blank, W., John, R. and Stephen, G. (1990), A Test of the Situational Leadership Theor," Personnel Psychology, 43, p. 579597. Fiedler, E. (1967), A Theory of Leadership Effectiveness, New York, NY: McGrawHill. Graeff, L. (1983), "The Situational Leadership Theory, A Critical View, Academy of Management Review, 8, p. 285291. Graen, G. and William, S. (1978), A Vertical Dyad Linkage, Leader-Member Agreement Approach, Journal of Applied Psychology, 63, p. 206212. Greenberg, Jerald. and Robert, B. (2000), Behaviour in Organization. Understanding and Managing the Human Side of Work, Upper Saddle River, NJ: Prentice-Hall. House, Robert J. (1971), "A Path-Goal Theory of Leader Effectiveness." Administrative Science Quarterly, 16, p. 321339. House, J. and Ram, A. "The Social Scientific Study of Leadership: Quo Vadis?" Journal of Management, 23, p. 409473. Kirkpatrick, A. and Edwin, L. "Leadership: Do Traits Matter?" Academy of Management Executive, 5, p. 4860. Kinicki, A. and Robert, K. (2006), Organizational Behaviour, Boston, MA: McGrawHill Irwin. Philip M. (1993), "Do Substitutes for Leadership Really Substitute for Leadership? An Empirical Examination of Kerr and Jermier's Situational Leadership Model, Organizational Behaviour and Human Decision Processes, 54, p. 144. Steers, M., Lyman, P. and Gregory, B. (1996), Motivation and Leadership at Work, New York: McGraw-Hill. Stogdill, M. (1948), "Personal Factors Associated with Leadership, A Survey of the Literature," Journal of Psychology, 25, p.33571. 26

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