Leadership Models: Then and Now

Leadership Models; Then and Now

Lao Tzu (Chopra, 1994, p.53) said "An integral being knows without going, sees without looking, and accomplishes without doing."

Leadership theory and models has evolved over a period of time as various people´s thoughts, ideas, experiences, and backgrounds shaped what is known about it today. In order to glean a better perspective, historically and culturally, a look into the past may shed light on the future. The purpose of this paper is to compare and contrast leadership theories, models, and styles in four eras. The eras to be compared and contrasted will be; pre-classical (B.C.-1750), classical (1700-1920´s), modernistic (1900´s-1950´s), and post modernistic (1960´s –present).

Findings

Pre-Classical (B.C to 1750)

Organizations evolved along with humans. (Wren, 2005, p.11) Organizations during this time were chiefly family units, tribes, church groups, military institutions, or government organizations. (p.13) People during this time found that working together they could accomplish more and better satisfy their collective needs. While working together it was discovered that some people were better at certain tasks than others. Tasks became more stratified. The division of labor or work usually was designated by the eldest, strongest, or most outspoken of the group. Hence, a leader emerged.

Ancient Chinese teaching by General Sun Tsu (600 B.C.) outline and designate the establishment of ranks in Armies during times of war as well as the use of signal flags or gongs for communication purposes. General Tsu believed that planning for victory was not enough, but one had to also consider, and make provisions for, defeat. General Tsu devised the necessity of having contingencies for original plans or back-up plans. These contingency plans helped to mitigate the risks of plans that went awry. General Tsu authored the 10 to 1 and 5 to 1 rule that calculated how many troops were necessary in times of war to make valid determinations as to continuing or retreating. These calculations were so on target that after all these years they still hold merit and have been implemented by later leaders in similar situations. (Wren, 2005, p.14)

Petruis (unknown date, p.1) identified Tiberius as a compassionate Roman leader in 133 B.C. Tiberius was fortunate to be born into a family of enormous wealth and position. Both of which were criteria of leadership posts during this time period. Tiberius, like General Tsu, led Rome through many tumultuous times, both in war and peace. Tiberius expounded upon the teachings of General Tsu, using both Tsu´s 10 to 1 and 5 to 1 rules. (Wren, 2005, p.14) Tiberius was thought to be somewhat ahead of this time because he was creative and innovative in the transit of military equipment during times of war. He felt that by planning and organizing where roadways would serve their highest purpose he could maximize his successes and minimize his potential failures.

Classical (1700´s – 1920´s)

Many forms of management thought came about in this important period of history because most notable organizations were industrialized and large. These businesses required on-going, monotonous tasks in the manufacturing of various products. Leaders at this time needed to be innovators and change agents. Krishnan (2001, p.1) designates four leadership styles that ring true for leaders in this time period and from that point in time forward; leaders who´s charisma attracts followers, leaders who inspire people to follow them, leaders who intellectually stimulate their followers, and leaders who consider the needs of their followers.

Henri Fayol (1841-1925) is considered one of the most influential authors/contributors of/to classical management school of thought. (Parker and Ritson, 2006, p.1) Fayol outlined five functions of management; forecasting and planning, organizing, coordinating, commanding, and controlling. (p.2) Fayol´s approach to the management style was inflexible/rigid and well grounded in top down management of employees in all situations. Largely, Fayol was perceived as a change agent because his theories emerged from a rapidly changing environment politically, socially, and industrially. (p.9)

Taylor, Urwick, and Smith challenged or built upon theories and premises originated by Fayol. Taylor, who coined Scientific Management, saw management flowing from the bottom up instead top down like Fayol. Taylor believed that a relationship built upon mutual respect between employer and employee produced a more cooperative culture for business and productivity. (Parker and Ritson, 2006, p.5/ Wren, 2005, p.146) Urwick said that followers would not follow without clear objectives set forth by leaders. Clear objectives according to Urwick were stated as simply as possible, flexible and balanced, and could be standardized for later analysis. (Parker and Ritson, 2006, p.6) Smith (1733-1790), like Fayol, felt that a division of labor was necessary in order for businesses to reap the greatest results. Smith outlined three areas that could reap the greatest return. Number one was training and this was the key to the remainder of Smith´s examples. Through training each employee would learn to do their jobs better (job specialization), doing their jobs better meant they could work faster and more efficiently (contributing to cost savings), and by using machines and less people more work could be done in less time (inspiring innovation and greater ROI). (Wren, 2005, p.34)

Modernistic (1900´s – 1950)

Kurt Lewin (1890 – 1947) tied the psychological element of behavior to goal achievement and management theory. Lewin defined group dynamics as the interaction of people within a group or individually being mutually dependent on goal achievement. Lewin felt that conflicts within groups could be positive or negative relative to the end result. Positive tension ensures group successes. Negative tension meant failure. Lewin also introduced the concept of task interdependence. Task interdependence occurs when group tasks (standards governing human conduct) are dependant on each other for their outcomes and how changing one member of a group can and does impact the rest of the group.

Nobel Prize winner in the field of Economics (1994, Nash Equilibrium) went to John Nash who penned to Game Theory, Nash equilibrium, and numerous other works. The game theory outlines the nature of group decision making and the impact it has on the remainder of the group. The findings of this study can be related to a variety of situations ranging from interpersonal relationships to business to economics and politics. Basically, Nash states that in groups decisions the actions of one person can be traced back to (and influenced by) choices or alternatives of others within the group. The Nash Equilibrium theory uses mathematical calculations to find solutions for uncooperative or hostile parties. Specifically it is used to settle arguments or disagreements with mutually beneficial outcomes and has been tested with success in certain situations inside the United Nations. (Brooks, 2004, p.1)

Both, Nash and Lewin, place emphasis on group psychology (group dynamics and decision making) and thus their interactions. It is interesting to see how this interaction affects management theories (and goal achievement) based upon greater understanding of people (from a behavioral/emotional perspective) and their needs, interactions, and interdependencies. Lewin and Nash could be termed somewhat radical at the time they presented their hypothesis. However, there is much to be learned and used from Lewin and Nash´s studies on leadership and group interaction toward goal achievement.

Post-Modernistic (1960´s to present)

In 1957 Douglas McGregor came up with the X Theory of management that suggested how one organization might harness their human potential in order to achieve their organizational requirements or objectives. (Pierce, G., 1991, p.1) Later, McGregor revised the X Theory which paved the way for the Y Theory. One differing premise of the Y Theory was that management needed to outline specific conditions and methods for all employees so they could readily achieve the organizations long and short term goals. (p.2)

Ouchi´s Theory Z takes that theory (Y Theory) one step further by divvying the conditions and methods for work into teams and making all participants responsible for the end result. Ouchi and Price found that (1993, p.1) there are at least two alternative ways to manage aside from the atypical hierarcial management styles; which are cooperative and clans. The clan sort of approach is closer in style and practice to their Z theory and also takes into account the rapid turnover that some organizations seem to experience as they expand and change. Noteworthy corporations that adhere to the Z Theory are Kodak, Proctor & Gamble, Hewlett-Packard, IBM, and Cummins Engines. (p.3)

Viau (1990, p.1) calls the Z Theory the "magic potion" for decentralized management strategies. He found that the five policies for Z; lifetime employment, concern for employees total wellbeing, consensual decision making, more general view of management styles, and combined responsibility between superiors and subordinates might make for a better nursing program in his community. Viau surmised that the involvement of nurses in patient care scenarios and administrative circumstances could form stronger bonds between all involved.

Authors Watson and Burkhalter determined that the Z Theory could also be translated to a public or governmental setting as was the case in Auburn, Alabama. (1992, p.1) The City of Auburn needed to institute cultural change. Part of this change process was geared toward treating all people more fairly, involving employees in the decision making process, allowing conversations to be 2-way, taking an interest in employee´s personal development, and recognizing employee accomplishments. (p.4) After eight years Watson and Burkhalter found that using a more holistic approach ensured more productive employees.

Ashkenas says that (1994, p.1) if employers want improved performance from their employees they need to challenge them to create and adhere to short term goals. Making employees responsible for their decisions empowers them and fosters teamwork. Ashkenas suggests a four step Lead program that begins with launching a program for change. Ashkenas proposes employee/management empowerment and training using the JIT Theory or Just in Time Theory. Backbone of the JIT Theory is that organizations need to continually innovate/regenerate their processes in order that they may achieve those goals. And lastly organizations should reflect, improve, and expand upon those processes that work! (p.2) Ouchi´s Z Theory makes short use of many of Ashkenas suggestions and still keeps their organizations goals set on the employee´s wellbeing.

Dessler (2000, p.14) uses AT&T and GE as examples of how flatter organizations are becoming the norm. AT & T and GE literally sliced their management layers from more than a dozen to half of that, empowered their employees, organized teams that control budgets and quality of output which are all factors for the Z Theory. This management approach has helped to build employee commitment making their organizations better and more competitive. (p.15)

Ratings/Examples of use in Contemporary Environments;

According to the article written by Duke Helfand, (2004, p.1) Arnold Schwarzenneger, while running for CA Governor, fashioned his local school control platform after Ouchi´s Z Theory. At that same time Ouchi co-chaired Schwarzenneger´s educational summit with Riordan. (p.2) Afterward, Riordan invited Ouchi to teach business to minority high school students. In addition to those endeavors Ouchi helped to expand Los Angeles police force, wrote several books touting the rewards of teamwork, and helped to reshape the face of California´s school system.

Samsung of Korea more or less typifies the Z Theory. (Murshin, L., 1992, p.1) Samsung´s corporate environment fosters intense competition amongst their managers. Because of this intense rivalry the term of employment is neither short nor long, but something in the middle. Employee evaluations are a low priority on the corporate totem pole and not performed with much regularity. (p.2) Samsung uses performance measurement systems whereby implicit/informal and explicit/formal control measures can and do peacefully coexist. Samsung´s vision and mission outline their organizations´ future direction along with readily quantifiable objectives for getting them there.

Conclusions

Early management theories were grounded in cultural values that hinged on being anti-achievement, anti-business, and in many circumstances antihuman. Society at that time was largely motionless, political policy was unilateral, and authority was centralized. As more theories evolved leaders/managers began to consider the human factor and its impact on business objective achievement. Ethics or standards of human conduct were further defined by unions who evolved to represent and ensure those human rights. Industrialization and innovation, increased competition and change, connected distant parts of the world creating greater need for emergent and competent leadership strategies.

No matter which theory an organization uses one wants to make ensure that the vision and mission of that organization are communicated clearly and concisely to all employees so that followers can see and participate in planning for the future of that organization. Forward thinking organizations and leaders who wish to remain competitive in this fast paced and ever changing global environment know the importance of making the best use of their human resources by involving their employees and giving them a stake in their organizations successes via ownership/empowerment.

Reference(s)

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