This Page Intentionally Left Blank DEVELOPING POTENTIAL ACROSS A FULL RANGE OF LEADERSHIP" Cases on Transactional and Transformational Leadership Edited by Bruce J. Avolio Bernard M. Bass Center for Leadership Studies School of Management SUNY-Binghamton LAWRENCE ERLBAUM ASSOCIATES, PUBLISHERS 2002 Mahwah. New Jersey London Copyright 0 2002 by Lawrence Erlbaum Associates. Inc. All rights reserved. No part of the book may be reproduced In any form, by photostat, microform, retrleval system, any other or means, without the prior written permission of the publisher. Lawrence Erlbaum Associates. Inc.. Publishers 10 Industrial Avenue Mahwah. New Jersey 07430 I I Coverd eslgnb yK athrynH oughtaling-Lacey Llbmy of Congress Cataloglngin-PublicatJonD ata Developing potential across a full range of leadershlps :C ases on transactional and transformational leadership/ Bruce J. Avolio and Bernard Bass. M. cm p. . Includes bibliographical references and indexes. ISBN 080583894-5 (pbk. :a lk. paper) 1. Leadershipcase studies. 1 .Avolio, Bruce J. 11 .Bass, Bernard M. HD57.7 2002 .D498 658.4092-dc21 2001433043 CIP Books published by Lawrence Erlbaum Associates are printed acld-free paper, on and their bindings are chosen for strength and durability. Printed In the United States of America l 0 9 8 7 6 5 4 3 2 1 Contents Preface vii Introduction 1 I ATITI'UDFS AND BEHAVIOR INDMDUAL LEADER!5 OF 1 Still Flylng HighA fteAr ll TheseY earsa St outhwesAt irlines 13 TPh2oo wu Cge hollt'lssin on Leadership 16 3 In the Land of Cornflakes andA Cs saerm bly 20 4 Can You Name AmeSreicv ae'sn BBoe ssste s? 24 Listening by 5 Leading 36 6 PaGtraic lliua p, CEO, PC Connection (Excerpts) 42 Leadership 7 Global 48 LeadeI n8rss htiTilDplus r ranmar ao und 55 Ladies 9 Leading 62 10 The Many Facets oLfe aTdi nears'sh ip 66 V vi c o r n I1 DEVELOPMENTA ND SUCCESSION LEADER 11 Playing Powell Politics 73 12 Larry Bossidy 76 13 Gertrude Boyle 79 14 A. Diane Moeller: A Talk With the Healthcare Forum’s Incoming Chair 84 15 Leadership of Renewal: Leadership for the 21st Century 88 16 Profiles of Successful Women Managers 96 Two 17 Nimrod Press 98 111 AND IMPLEMENTATION STRATEGIES THEIR 18 The Future at Telview 111 19 David Glassman: Division Manager in Telview 116 20 Joan Rivers’ Memo 125 21 Back to theP ast When the Future Seemed So Obvious 130 22 Amy’sD ebrief 134 23 A Doll’s House 138 N ETHICALISSUES 24 Managerial Ethical Leadership: Adrian Cadbury 149 25 JimC orby 152 26 The Commandant’s Dilemma 154 27 Jack Gets a Grip 159 28 The Fine Art of Leadership 164 Preface This is a volume of 28 cases. In each case, the focusi s on the leadership style of the key players. The cases were chosen to present all facets of a model of leadership, which says that the most effective leaders are both transformational and transactionailn their leaderships tyle. Cases were se- lected for inclusion and/or developed to provide examples of leaders from across the spectrum of public and private sectors. Specific emphasis was placed on selecting male and female leaders from a broada rray of cultures. Purpose of This Book A great deal has been written about am odel of leadership that we refer to as a "full range" of leadership potential. This book adds to the literatureb,y highlighting specific people who exemplify the various styles and orientationsre garding a full range of leadership PO- tential. lntended Audience. We expect that practitioners who conduct orf acili- tate leadership traininwg ill find this book quite useful to their work. In ad- dition, managers interested in developing their own leadership potential will be able to learnb y example how different styles affect leadership per- formance. This book can also be used as a supplement to other books on leadership for undergraduate, graduate, and executive education courses in management. vii viii PREFACE Transformational leaders tend to be: Idealized andin spiring: They act as role models; take calculated risks; dem- onstrate high standards of ethical conduct: and are admired, respected, and trusted by their followers. Such leaders provide meaning and challenge. They arouse team spirite, nvision attractive futures, and demonstraat cel ear sense of purpose and commitment to them ission. Intellectually stimulating: They frame and reframe problems, question as- sumptions, and stimulatfeo llowers and peerst o creative thinking and inno- vation. Individuallyconsiderate:T hey show concernfo r the well-being of each per- son theyw ork with, and treat eacha s an individual with unique needs and capabilities. They place a considerable amount of attention on developing each person to his or her full potential. Transactional leaders tend to be: Contingently rewardingT: hey provide rewards and/or promisefso r people who meet standards of performance set jointly or by thel eader. Active in managingb y exception: They monitor followers' performanacne d take corrective action as needed. Nontransactional passive leaders wait for problems to arise before taking action, avoid making decisions, or are not aroundw hen needed. Each leader has a profile that includes some or all of these transfor- mational, transactional, andn ontransactional behaviors. The better leaders do both, and the beslet aders are more transformational than transactional. In the first 27 cases, ybu will find one or more componentso f a full range of leadership illustrated for discussion. Some of the leadersp rofiled exhibit certain components of leadership to a much greater extent than they do other components. Case 28 illustrates a false leadership. The leaders discussed seem like transformational leaders but think and act in ways to benefit only them- selves at thee xpense of others-they are pseudotransformational and pseu- dotransactional leaders. Discussion of the cases highlights how to build balance in one's leader- ship profile to optimize the potential of leaders, followers, and their organi- zations. The presence or absenceo f styles in a wide variety of contexts is discussed in terms of the effects on individuals, groups, or organizations. Discussion questions are posed at the endo f each case. The book begins with an overview of what constitutes transactional and transformational PREFACE ix leadership. This discussion is then expanded to include what we term a Full range of leadership potentialTM. We wish to acknowledge Juliette Monet and Ben Laurenzi fort heir assis- tance in helping identify the cases that were ultimately selected; Wendy Kramer, who helped put all the pieces together: and Sally Bowers, Berna- dette Cencetti, and Maureen Whitney for their data-processing assistance. -Bruce J. Auolio -Bernard M. Bass Binghamton, New York