Leadership and management in the 21st

LEADERSHIP AND MANAGEMENT IN THE 21 S T CENTURY This page intentionally left blank LEADERSHIP AND MANAGEMENT IN THE 21 S T CENTURY BUSINESS CHALLENGES OF THE FUTURE Edited by CARY L COOPER Great Clarendon Street, Oxford O X 6D P Oxford University Press is a department of the University of Oxford It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide in Oxford New York Auckland Bangkok Buenos Aires Cape Town Chennai Dar es Salaam Delhi Hong Kong Istanbul Karachi Kolkata Kuala Lumpur Madrid Melbourne Mexico City Mumbai Nairobi Sa˜o Paulo Shanghai Taipei Tokyo Toronto Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries Published in the United States by Oxford University Press Inc., New York ß Cary L Cooper 2005 The moral rights of the author have been asserted Database right Oxford University Press (maker) First published 2005 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, or under terms agreed with the appropriate reprographics rights organization Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this book in any other binding or cover and you must impose this same condition on any acquirer British Library Cataloguing in Publication Data Data available Library of Congress Cataloging in Publication Data Data available ISBN 0–19–926336–1 10 Typeset by Kolam Information Services Pvt Ltd, Pondicherry, India Printed in Great Britain on acid-free paper by Biddles Ltd., King’s Lynn, Norfolk Contents List of Figures List of Tables Contributors Introduction Cary L Cooper viii ix x PART I CHALLENGES OF THE BUSINESS ENVIRONMENT 19 Four Great Conflicts of the Twenty-First Century William H Starbuck 21 Discretionary Leadership: From Control/ Co-ordination to Value Co-Creation Through Polylogue Nada Kakabadse and Andrew Kakabadse 57 Managers’ Lives, Work, and Careers in the Twenty-First Century Prabhu Guptara 107 Late Twentieth-Century Management, the Business School, and Social Capital Ken Starkey and Sue Tempest 139 vi Contents PART II THE ACADEMICS’ VIEW 161 A Next Challenge in Organizational Leadership Chris Argyris 163 Leadership in a Non-Linear World Fred E Fiedler and Joseph E Garcia 185 Leadership in the Private Sector: Yesterday Versus Tomorrow Gary P Latham and Cynthia D McCauley 204 Twenty-First Century Leadership—The God of Small Things; or Putting the ‘Ship’ Back into ‘Leadership’ Keith Grint 229 An Agenda for Understanding Individual Leadership in Corporate Leadership Systems Anne Sigismund Huff and Kathrin Moeslein 248 PART III THE PRACTITIONERS’ VIEW 271 10 Leading Human Capital and the Global Economy Hamish McRae 273 11 The Twenty-First Century Manager Book: Working on (and on and on ) Sir Howard Davies 278 12 Managing Performance through People—the Challenge for Tomorrow’s Organization Geoff Armstrong 285 13 Managing for Creativity Sir Michael Bichard 299 Contents vii 14 Herding Cats or Luxuriating in Talent? Leadership and Management of Universities David Rhind 305 15 Management Education and Leadership Sue Cox and Steve Fox 334 16 What will Tomorrow’s Organization/Company look like over the Next Couple of Decades? Val Gooding 344 Index 355 List of Figures 2.1 2.2 2.3 2.4 2.5 2.6 9.1 14.1 14.2a 14.2b 14.3 14.4 Role Discretion Discretionary Role Analysis Open Information Interactions Polylogue Pathway: Shifting Mindsets Discretionary Leadership Communication for Platform Building The Polylogue Scales The Generic Leadership System Increase and Projected Increases in the Number of Overseas Students, Broken down by the Major Educational Suppliers The Entirety of the ‘Geographical Framework’ of Britain in the 1960s Equivalent Information in Compact Disk Format Graph of 170 British HEIs Ranked by Size of Total Income Average Academic and Academic-Related Pay and Average Earnings 1981–2001 77 79 90 91 92 95 257 308 311 312 315 318 List of Tables 2.1 2.2 2.3 6.1 6.2 6.3 9.1 14.1 Models of Capital Migration of Leadership Models Communication Models of Leadership Medians and Range of Correlations between Leaders’ Intelligence and Experience Measures and Performance Relationship between Leader Intelligence, Experience, and Stress on Performance Relationship between Leader Personality and the Leadership Situation on Performance Evolving Models of Leadership The Qualities and Characteristics of a Successful Leader in the HE Sector 75 81 89 186 188 195 251 332 Index 361 employment psychology 206 empowering leadership theories 84 ‘end of history’ 141, 233 energy, and creativity 301–3 engineering approach, to leadership systems 253–4, 263 Enron 143, 144, 165, 218 exchange theory of leadership 60, 85 exchange-equity theory of leadership 60 execution excellence, and people management 295–7, 298 expectancy theory of leadership 60, 84 Exxon 33 enterprise culture Entrepreneurial Quislings facilitators, managers as 296 entrepreneurs, clear-eyed 131 family friendly work policies 280 environmental degradation 156 family-run businesses, and long- environmental responsibility, and corporate governance 131–2 EQ (emotional intelligence) 155 equal employment legislation 206–7 equity theory of leadership 84, 85 Erikson, Sven Goran 242 eternal leadership style 230–4, 245 ethnic minorities, in the workforce 280 ethnocentrism 223 Europe ageing population 274 and corporate consolidation 122–4, 125 and economic globalization 122 and economic integration 124 evolutionary psychology, and leadership 231 run targets 46 famine, in developing countries 26 fax machines 278 Feldman, on the new employment model 154 financial services companies elimination of boundaries 114–15 and globalization 112 and internal divisions 113–14 First World War, and leader selection 206, 222 flattened organizational structures 15, 191, 229, 279, 281–2 and management style 353 flexible leadership systems 233 flexible workforces 3, 153–4 and core management teams 281 362 Index flexible workforces (cont.) and the global economy 274 and long-run commitments 46 and short-term contracts 3, 7, 15, 280–1 and small companies 346 and work/life balance 348–9 Focus of Leadership Development model 251 followers leader-follower relationships 72–6 and omniscience in leaders 239–44 force-field approach to organizations 49–50 Ford, Henry 209 France, Paris School for Economic Warfare 34 Friedman, Milton 141 global economy, and human capital 273–7 global markets, boom and bust in 121 global organizations 71 selecting and developing leaders for 207–11 global village 222 globalization 1, 49, 273 and change 345 and company organization 112–13 and conflict between companies and nations 33–4, 37–8 and the developing world 121–2 and economic growth 21 and the international workplace 57–8 Frye, B.E 307 and leadership 65–7 Fukuyama, Francis 141 and organizational change futurology 205 and people management 16 Gosling, J and Mintzberg, H., Garsten, C 153–4 five minds of a General Electric 320 manager 10–11 general practitioner (GP) managers 5–6 greed, and shareholder value ideology 73 Generic Leadership System 257 ‘greed is good’ 142 Genuine Quislings Greenbury, Richard 240 Geus, Arie de 303 Greenspan, Alan 150, 241 Ghoshal, S 148 Grey, C 342, 343 Global 100 companies, IT- Gulf War (invasion of Iraq) 36, competence of 108 235–6 Index 363 Hamel, Gary 301–2 Handy, Charles, on the role of the manager 4–6 Hayes, R.H 335 health of employees 352–3 healthcare professionals, shortage of 347, 348 horizontal value chain, and ICT 110–12 House, R.J 60 human capital 75, 83, 147, 154, 155 and the global economy 273–7 hedging 48 Human Relations 234 hegemony, and social identity human resource policies, and conflict 208 long-run policies 44 Heifertz, R.A 321, 322 heroic leadership 205, 218, 230 and management education 341 and social capital 74 hierarchical organizations 190 IaCocca, Lee 63, 218 IBM 31–2, 46 IC (Imperial College, London) 320 ICT (information and and creativity 301 communication technology) and information technology 4, 25, 49, 108–33 70 and performance management 289 higher education see universities Higher Education Staff Development Agency, Top Management Programme 321–2 and automation 109–10 and change 345 and company organization 112–13 development and proliferation 65–6, 68–72 and the elimination of industrial Hirakubo, Nakato 46 boundaries 114–19 historical change, and and the horizontal value leadership 232–3 Hitler, Adolf 235, 239 Hollywood model of human capital 276 homeworking 278 Hooker, General 214 chain 110–12 and industrial over-capacity/ over-supply 119–20, 125 and the internal divisions of organizations 113–14 and leadership studies 26, 267 364 Index ICT (cont.) and managerial roles 13 and organizational structure 279 innovation-related core competences 117 insurance 48 intellectual capital 149 predictions 221–2 ‘intellectual piecework’ 276 and universities 310–13, 328, Intellectual Property Rights, and 332 Idea of Leadership model 251 identity defining personal identity 36 social identity conflict 208–10 improvization, and leadership system components 260–3 incentives 351 income inequalities in firms 282 India 273, 275, 287, 348 individual leadership and corporate leadership 15 in corporate leadership systems 248–70 individualism, and ‘new’ capitalism 151 individuals, and personalisation 350–1 university coursework 313 intelligence, and leadership performance 185–9, 191–2 intelligence tests, and employee selection 206 interim management internal organization, and people management 294–5 Internet 278 and change 345 companies 114, 314 and leadership roles 68 Iraq, invasion of 36, 235–6 Islamic countries, and the force-field approach 49–50 Italy, Eni Oil Company 63 ITT Corporation 45 Industrial Betterment 234 information overload Jack Welch leadership style 320 information technology see ICT Jensen, Michael 148 (information and communication technology) information-based organizations 70 innovation and creativity 304 and leadership studies 250 job descriptions/analyses, and leadership 196–7 job satisfaction and flattened organizational structures 281 lowering of morale and 46 job security, loss of 346 Index 365 job-reduction, and technology 109–10, 129–30 Jowett, Wayne 241 Julius Caesar 331 improving 197 leadership leader-follower relationships 72–6 just-in-time production 128 and management Kay, J 141, 151 models of 59–65 Kelleher, Herb 64 situations in the twenty-first education 339–41 knowledge management century 190–1 knowledge workers 3, 73 strategies 189–90 knowledge working, and types 4–11 universities 307 Kunda, G 233–4 in universities 314–15, 320–30, 332 see also discretionary leadership labour market changes 346–7, 348 leadership behaviour theories 85 Laissez-faire managers 9–10 leadership capability 84 large corporations leadership capital 254 and company success 47 leadership competence 85 conflict between nations and leadership deployment, and the 25–38 rethinking ideas about 48–9 Laurie, D 321, 322 Lavelle, Louis, Jespersen, Frederick F and Arndt, Michael 40 Le Breton-Miller, Isabelle 46, 47 leader selection 185–9 and the TUM Leadership Systems Study 256, 257 Leader-March training programme 200 leader-member relations decreasing 198 TUM Leadership Systems Study 257 leadership functions, philosophical disconnects between 264–5 leadership of organizations, studies of 250, 252 leadership research 250 lean production 112 learning chains 72 learning organizations 3, 72 life-long learning 2, 350 Likert, R 212 Lincoln, Abraham 214–15 366 Index line managers, and performance management 290–1, 296 linear model of leadership 232–3 listening management style 11, 353 living standards, increase in 26 logistics-related core competences 117 London School of Economics (LSE) 319 long-run goals, conflict with short-run targets 24, 43–8 Makridakis, Spyros and Winkler, Robert L 44 management coherence, and people management 294–5 management disciplines, and productive reasoning 166 management education 16, 334–43 the 1980s and competency 336–7 the 1990s and the practice of management 338–9 low-income nations 26–7 critics of 335–6 Lowndes, William 238 and leader selection 210, LPC (least preferred co-worker) 193 LSE (London School of Economics) 319 LTCM (late twentieth-century management) 139, 140–2 and business school education 144–5 limitations of 150–7 and social capital 147–8 LTCM (Long Term Capital Management) 241–2 223 and leadership 339–41 management style, and change 353–4 Managerial Quislings managerial types 4–11 managers, changing conceptions of 38–9 Mant, Alistair, historical styles of management 6–8 manufacturing industries costs of compliance 127–8 and the global economy 273, Macaulay, J.E 188 274, 275 McDonald’s 33 Mao Tse-tung 235 McGregor, D 212 market testing McKnight, William 62–3 marketing-related core Makin, P., Cox, C.L and Cooper, competences 117 C., on leadership types Marks and Spencer 240 8–10 Marshall, Sir Colin 62 Index 367 MBA programmes 64, 142–4, 148, 152, 210, 211 mindsets 10, 11 development of personal 154 medium-sized companies see engineering 253–4, 263 middle-sized companies polylogues and shifting mega-universities 311–12 megacorporations 115–19, 126, 129, 133 mergers and acquisitions challenges of 212–13 and the financial services industry 115 and middle-sized companies 126 universities 320 of 88–93 see also defensive reasoning; productive reasoning Mingus, Charles 262 Mintzberg, Henry 335, 336, 342 and Gosling, J., five minds of a manager 10–11 Nature of Managerial Work 267 Mitev, N 342, 343 Mitsui 33 Merton, Robert 241–2 mobile phones 278 meta-businesses 71 Model I theory-in-use, and middle classes and changing employment patterns 128 and underdeveloped nations 27, 29 middle managers and flattened organizational structures 281–2 defensive reasoning 167, 168, 169, 179–80 Model II theory-in-use, and productive reasoning 177 motivation, rewards and incentives 351 Motorola 264 and trade unions 347 multinational corporations middle-sized companies conflict between nations European 125 and 35–6 stripping out of 126–8 European 122 and success 47 and globalization 66 Miller, Danny 44, 46, 47 mind/brain, and productive reasoning 166 mindfulness, and productive reasoning 178–9 and terrorist attacks (11 September 2001) 22–3 multiskilled employees 113–14 Murphy, S.E 188 368 Index Nabe, Bar 63 offshore industries 274 NASDAQ index of technology old and new leadership 17 stocks 150 nation states, and globalization 66 nations, conflict between companies and 24, 29–38 omnipotence in leaders 236, 237, 242–4 omniscience in leaders 236, 237–42 One-World Alliance 72 natural selection 231 Open managers 10 neo-liberalism, and discretionary organic organizational leadership 88 networked organizations 70–2, 153 and discretionary leadership 76, 80 and value creation 87–8 networks structures 14 organizational culture 234 and defensive reasoning 181–3 organizational restructuring 1, 3, 14, 133, 278–9 and change 346 and conflict 24–5 electronic 116 and information technology 69 and leadership 191 and leadership 190–1 and social capital 146, 152 and management new leadership 17 new technology 1–2 and developing nations 27–8 Newcastle 307–8 niche companies 299 Nicholson, N 231 Nietzsche, F 61, 232 non-linear perspective on education 340 and performance management 289–90 O’Toole, James 252 outsourcing 2, 3, 274–5, 346 and the horizontal value chain 111–12 ownership, and performance management 291 leadership 200–1 North Korea 121 Pareto, V 234 Nystrom, Paul C 47 part-time workers 274, 275, 280, 281 occupations, impact of automation on 109–10 partnerships in leadership development 335 Index 369 and leadership in universities 323 path-goal theory of leadership 60, 84 pay polylogues (multiple dialogues) 58, 82, 86, 88–93 polylogue scales 94–5 Popper, Karl 238 population growth 25–6 of chief executives 39–41, 62 Porter, Michael 148 and the labour market 348 portfolio careers 133 university staff salaries 317, position power 318 and Autocrats pensions, and retirement 283 and Bureaucrats people, managing performance decreasing 199 through 16, 285–98 performance and leader intelligence 185–9, 191–2 and leader personality 185–9, 193–5 managing through people 16, 285–98 and the TUM Leadership increasing 198–9 and Open managers 10 poverty conflict between affluence and 24, 25–9 and over-capacity 120 power, and performance management 291 practice of management, in Systems Study 256, management 259–60 education 338–9 in universities 325 personalisation, and the role of management 350–1 personality and leadership Pribilla, Peter 267 private sector, and creativity 299, 300 private sector leaders 217–21 heroic status of 205, 218 performance 185–9, move to a mosaic 219–21 193–5 villain status of 219 and management style 353–4 Pettit, Roger 240 piecework 276 Plato 231, 238 visionary style of 208–9 process re-engineering 1, 32, 43, 111 and outsourcing 112 product shelf-life 112 370 Index productive reasoning 13, 163–4, 165, 166–7 Reichwald, Ralf 267 reinforcement theory 60, 85 and Model II theories-in-use relational thinking, and social 177 capital 148–9 strengthening 178–83 relationship-motivated professional associations, and leadership development 334 project teams 289 leadership 193–4, 195 Reluctant managers 10 resource power Prusak, L 146, 153 and Autocrats psychology 221 and Bureaucrats employment 206 evolutionary 231 and Open managers 10 Respectable Buccaneer and leader selection 185–9 and management education managers 6–7 restructuring see organizational 338, 339 restructuring public sector retirement 16, 283–4, 345 and creativity 299, 300, 302 rewards and incentives 351 and UK universities 316 risk Putnam, Robert 155 owling Alone B 147 and creativity 303–4 risk society 156 Roosevelt, T 218, 239 Quislings, Managerial Russell, Bertrand, on two kinds of R & D, costs of 127 Russia, financial crisis in work race 121 and employment legislation 206–7 and ethnic minorities in the workforce 280 RBV (resource-based view), and value creation 86–7 redundancies, and information technology 69 reflective managers 10, 11 Saddaam Hussein 235–6 salaries see pay Salbu, S 144 scientific management 7, 234, 292 Second World War 235, 239 Se´gur, Marshal 239–40 self-employment 153, 274, 275 Index 371 self-managed teams 14, 190–1 self-management theory 84 senior management and flattened organizational structures 281 in universities 326 Sennett, Richard 144–5 sensitivity, and management style 353, 354 servant-leadership model 64, 84 service sector 273, 275, 346 Seward, William 215 shared leadership 12, 58, 93–4 shared responsibility 14 shared work, leaders as facilitators of 213–15 shareholder value and agency theory 148 and leadership 73 shareholders, accountability of leaders to 58 Shaw, George Bernard, Mrs Warren’s Profession 17 Shell International 28 situational leadership theory 61, 85 Six Sigma 264 skills and leadership in universities 323 and management education 339 Sloan, Alfred 63, 240 small actions, and omniscience in leadership 238 small companies growth in numbers of 346 and success 47 social capital 13, 73–6, 145–50, 151–3, 156–7 and cognitive competence 149 and discretionary leadership 80, 83, 85 and emotional competence 149–50 and networked organizations 70 Shoemaker, P.J.H 67 and polylogues 89 short-run targets, conflict with and relational thinking 148–9 long-run goals 24, 43–8 short-term contracts 3, 7, 15, 280–1 short-term employment 128 Simon, Hermann 46, 47 Singapore 219 situational control, and leadership 197–200, 201 and structural thinking 148 and value creation 87–8 social change, and differences between the affluent and the poor 25 social identity conflict 208–10 groups 223 372 Index social justice/responsibility, and business schools 65 social trust 155 socio-political problems/success, and corporate consolidation 122–3 Star Alliance 72 Starbuck, William H 47 stewardship model of leadership 84 stockholders, senior executives of companies as 40–1, 42 Socrates 213–14 Stogdill, Ralph 249 Sonnenfeld 41 Strategic Corporal model (US South-East Asia Marine Corps) 232 and economic growth 207 strategies financial crisis in 121 agile 293–4, 298 higher education in 309 of change 344–5 Soviet Union and defensive reasoning 168 German invasion of (1941) 239 space, and leadership requirements 230–4, 244 spiritual leadership 85 stakeholders accountability of leaders to 58 and company successes 47 and leadership studies 252 stress and leader performance 187–8, 192, 194–5 reducing stress with your boss 199 and subordinate managers 196 and change 345 in the workplace 352–3 conflict with top structural thinking, and social management 24, 38–43 and discretionary leadership 76 and globalization of work environments 67 capital 148 studies of leadership, changing face of 249–52 subordinate managers, and stress 196 and management style 354 Sudan 121 and people management 295 super leadership theory 84 and polylogues 89–90, 94 superman (‘Ubermensch’) Stalin, Joseph 239 Stanton, Edward 215 Stanton Morris (consultants) 302 concept 61, 81 supply chains, and networked organizations 71–2 Sutcliffe, K.M 178 Index 373 SWIFT (Society for Worldwide top management, and International Funds performance Transfer) 71 management 290–1 Systems Theory 234 top managers, conflict with stakeholders 24, 38–43 task control, and performance TQM (total quality management 291–2 management) 264 task orientation 85 trade unions 346–7 task structure, increasing and training in leadership 200 decreasing 198 task-motivated leadership 193–4, training managers 16 trait approach to leadership 61, 195 Taylor, Humphrey 41 teamworking 230–1 and omniscience 236, 237 transaction cost economics and people management 295, 296 project teams 289 148 transactional leadership 59–60 and discretionary technocracy, and management leadership 81–5, 89 education 335–6, 337 transactional school of Technocrat managers 7–8 management 297 technology see ICT (information transformative leadership 59, and communication technology) 60–1, 65 and discretionary teleworking 3, 49, 278 terrorist attacks (11 September 2001) 22–3 leadership 81–5, 89 see also charismatic leadership transport industry, supply Thatcher, Margaret 133 theories-in-use chains 72 travel transoceanic 28, 33 and defensive reasoning 168 trickle-down theory 121 and human actions 167 trust M 62–3, 182 and creativity 304 time, and leadership management of 49 requirements 230–4, 244 Tolstoy, Leo 235 trust relationships, and social capital 155 374 Index TUM (Technical University of Munich), Leadership Systems Study 249, 255–60, 263, 266, 267 Tyco International 45 courses and student demands 318–19 deficiency of internal communications in 319–20 and economic ULC (University College, London) 320 development 307–10 fund-raising 306, 332 unemployability, and ICT 114 funding 316, 317, 327–8 unemployment and ICT 310–13, 328, 332 effects of 145 in Europe 123 in inner-city ethnic communities 280 in the US 22 United Nations, Global Compact 37 United States of America Air Florida 90 air crash 240 banks 126–7 chief executives of corporations 39–43 Civil War 214 economic future of 207 impact of new technologies on 310–13 leadership and management of 314–15, 320–30 Critical Success Factors 322–4 leading the staff 324–6 qualities of a successful leader 332 and structural change 326–9 mega-universities 311–12 money and values 313–14 overseas students 308, 316, 319 economic recession 22 Oxbridge model of 327 Federal Reserve 241 purposes of 309–10 and the ‘melting pot’ 219 stability and value of 306–7 private sector leaders 218 staff achievement 306 universities 308, 310, 314, 319 staff salaries 317, 318 universities 16, 305–32 brand image and enhancement 306, 314, 329–30 in Britain 310, 314, 315–20, 321–2, 325–6, 327, 329–30 in the USA 308, 310, 314, 319 university model of human capital 276 US Marine Corps, Strategic Corporal model 232 Index 375 value chain Weick, Karl 178, 261–2, 263 horizontal 110–12 Welch, Jack 62, 218 and megacorporations 116 Wheaton, Captain Larry 240 value co-creation 86–8 Wheeler-Dealers value-based leadership 85 ‘whig’ model of historical values, employees and organizational values 351–2 change 232–3, 244 Wilson, ‘Engine Charlie’ 31 virtual communities 224 Wolfsberg Think Tank 113 virtual organizations 15, 71, 299 women visionary leadership 85 Vivendi Universal 118 voice-recognition software 109 and employment legislation 206–7 in the workforce 27, 280 work/life balance 348–9 wages see pay worldly mindsets 10, 11 Wal-Mart 33, 34 Wrong, D 168 warfare and conflict 22–3 and low-income nations 27 Weber, M., and charismatic leadership 60 zero-tolerance towards mistakes 242 Zurich Financial Services 146 ... horses into a frenzy, careering hitherto and yon It is about developing a sensitive awareness of the terrain and of what the team is capable of doing in it, and thereby helping to set and maintain... training managers and business leaders in the technical skills and in the specifics of their function, rather than in the interpersonal, human, social, cultural, political, and ethical issues and. .. power and are admired by their subordinates There have been many theories about what a good manager or leader should be throughout the decades, culminating in an article by Gosling and Mintzberg in