Leadership and Steve Jobs Essay Example For Students

Leadership and Steve Jobs Essay 2010 Leadership Analysis Steve Jobs vs Anita Roddick Mentor: Daniel Burns RMIT International University Vietnam Bachelor of Commerce Program ASSIGNMENT COVER PAGE Your assessment will not be accepted unless all fields below are completed Subject Code:| BUSM 3286| Subject Name: | Leadership| Location where you study:| Hanoi Campus| Title of Assignment:| Leadership Analysis| File(s) Submitted | Steve Jobs and Anita Roddick_Leadership Analysis| Student name:| Nguyen Hong NhungNguyen Thuy HaTran Ngoc LinhVuong Thuy LinhLa Thi Huyen Nga| Student Email Address:| [emailprotected] edu. [emailprotected] du. [emailprotected] edu. [emailprotected] edu. [emailprotected] edu. vn  | Learning Facilitator in charge:| Daniel Burns| Assignment due date:| 4th January, 2010| Date of Submission: | 4th January, 2010| Number of pages including this one: | 26| Word Count:| 4,341 words (Excluding Executive Summary, Contents, and References)| Executive Summary Steve Jobs (CEO of Apple – the worldâ₠¬â„¢s leading information technology company) and Anita Roddick (founder of the Body Shop) are very famous around the world as two revolutionary innovators, one of IT industry and one in the cosmetic industry. The differences in industries that they work in and their gender lead to their interesting differences in leadership behavior and style, charismatic leadership and leadership powers. In term of leadership behavior and style, Anita Roddick performs obviously a relationship-oriented. In contrast, Steve Jobs has both relationship and task-oriented attitude. However, with Jobs, task-oriented attitude is stronger than relationship oriented. Both Steve Jobs and Anita Roddick have similar charismatic leadership’s characteristics as being great vision, unconventional strategy and ability to create the trust. However, they are opposite in term of Emotional expressiveness and personal warmth and masterful communication skills. In addition, Anita Roddick is considered as transformational leader only but Steve Jobs is both transactional and transformational leader. Referring to leadership powers, they have some similar powers that are legitimate power and personal power that are gain from position, knowledge and admiration. However, because of difference in leadership style, Jobs uses reward power to lead followers. In contrast, uses empowering practices to. Through the leadership analysis, three valuable learning outcomes are gained in order to improve leadership’s aspects. Firstly, most people admire participative leaders more than autocratic leaders. Secondly, each type of power has both advantages and disadvantages sides so it is not really important to use all of them. Thirdly, the crucial thing is that leaders should select type of power that is suitable with current situation. Contents 1. Introduction5 1. 1Reasons5 1. 2Theories5 1. 3Biography6 1. 3. 1Steve Jobs6 1. 3. 2Anita Roddick6 2. Findings7 2. 1Leadership behavior and styles7 2. 1. 1Steve Jobs7 2. . 2Anita Roddick9 2. 2Charismatic and Transformational Leadership10 2. 2. 1Steve Jobs10 2. 2. 2Anita Roddick11 2. 3Power, Politics and Influence Tactics of Leadership12 2. 3. 1Steve Jobs12 2. 3. 2Anita Roddick14 3. Discussion and Analysis14 3. 1Leadership behavior and styles14 3. 1. 1Similarities14 3. 1. 2Differences15 3. 1. 3Conclusion16 3. 2Charismatic and Transformational Leadership17 3. 2. 1Similarities17 3. 2. 2Differences18 3. 3Power, Politics and Influence Tactics of Leadership19 3. 3. 1Similarities19 3. 3. 2Differences20 3. 3. 3Conclusion21 4. Key Learning Outcome21 5. Reference24 1. Introduction . 1 Reasons This report analyses the leadership styles of Steve Jobs (CEO of Apple – the world’s leading information technology company) and Anita Roddick (founder of Body Shop). There are many reasons that we have chosen Steve Jobs to study. They are considered to be two revolutionary innovators, one in the IT industry and one in the cosmetic industry. They have both brought successes to their companies due to their effective leadership. As members of the third generation, we really admire him for his well known products such as Ipod, Iphone and Macbook that having a big influence on the youth. Therefore we would like to learn how he has achieved successes. Anita Roddick is not yet famous in Vietnam; however, after searching for information about her we have seen that she also has a great impact on not only Western countries but also some South East Asian countries. What differs from her of Steve Jobs is that she is a woman and she is able to bring forward a movement of protecting the environment, activate self esteem, be against animal testing and defend human rights which are really remarkable. This is something that really inspires us. Even though these two persons are working in totally different industries, their influence could be seen all over the world. 2. 2 Theories In order to understand more about the two leaders’ leadership styles, three theories are used. This includes firstly the leadership behaviours, attitudes and styles from Dubrin et al (2003). This theory is used because it is the foundation for a leader. This theory will give an overview of the different leaders. The second theory is charismatic and transformational leader. According to Dubrin et al (2003) it is a useful concept in understanding and practicing leadership. Then it is also really important to take into consideration that not all leaders are charismatic leaders. The last theory is the power, politics and leadership. This approach is to know the nature of leaders’ power and the different ways they acquire power and empower others. Then we could see how they use and control that power in the organization. 2. 3 Biography 2. 4. 1 Steve Jobs Steve Jobs was born in 1955 in California. He dropped out from College and with his friend Wozniak began in 1976 to sell computers that made in the garage. They called it Apple Computers which made him a billionaire. Then, he was fired in 1985 and started another business called Next but then Apple bought Next so he came back to Apple and became after some time CEO. At that moment he then came up with iMac, iPhone, etc. That makes him become the biggest shareholder in the company. As a result, he is becoming one of the most influential leaders in the world and one of its richest men. 2. 4. 2 Anita Roddick Roddick was born in 1942 in Littlehampton. In 1976, she opened the first ? Body Shop` as a shop selling green cosmetics products. Then she traveled a lot for her campaign of values of ? reducing environmental impact, saying no to animal testing, promoting well-being and affecting social changes. This is what made her products different from others. Even though, the Body Shop was sold to L’Oreal in 2006 (Bio,2007), she has made The Body Shop chain, one of the biggest cosmetic retailer chain in the world and inspired millions of people due to sustainable products. 2. Findings 3. 4 Leadership behavior and styles 3. 5. 3 Steve Jobs Task related leadership: Hands on guidance and feedback: ‘He always does personally checking the fine print on partnership agreements or calling reporters late in the evening to talk on important things or to tell them whether there is something wrong with that’ (Businessweek,2006) Adaptability to the situation: * After many years of not working for Apple and coming back, he still can make Apple one of the most successful technology organization. Then also, he can get through the 2008 financial crisis by increasing the research and development budget so he can beat its competitors. Ability to ask tough questions: Jobs makes the design process from start to finish. He always asks difficult questions and gives his personal opinions then finally, unfailingly push Apple to create better products (Jon, 2005). Risk taking and a bias for action: * Before setting up his business of ‘Apple I’ he has to sell their most prized possessions to get capital without knowing really what Apple I will become ’ (Jon,2005). Then he also saw the idea of Apple TV fail, though he has taken the risk to invent. High performance standards: * When he hires someone for any position, the only thing he asks for is competence. To measure his employees he also asks for a difficult task such as creating a new version of Ipod software. Relationship oriented leadership: Creating inspiration and visibility: * ‘He organizes regular meetings to ensure that effective communication and information are established among all members in the company’ (Ambler, 2008) Aligning and mobilizing people: * ‘ When a good idea comes, I spread with other members in the company, ask what people think and discuss with them to find best solutions’ ( Jobs, 2008) Concert building: I like getting different people together to explore different aspects of new things quietly’ (Jobs, 2008) 3. 5. 4 Anita Roddick Relationship-oriented leadership Aligning and mobilising people * Anita looks for employees who show their interest for what they are doing rather than their qualification for the job. She employs big people with big thinking and big ideas. Employ people that will fit in (AMR Research, 2007) Create i nspiration and visibility * In our interconnected environment every member can contribute to or detract from your associations presence in the marketplace. Make it easy for people to understand how their contribution to the work program makes a positive difference in the world and productivity will increase dramatically. * She travelled around different locations in all over the world where her The Body Shops appear (Jones, 1998) Satisfying higher-level needs * Anita Roddick said Nothing is more motivating than giving staff, employees, and associates the opportunity to express their own individual influences. (Anita Roddick: A legend of Cosmetics World, 2008) * Anita Roddick was the first person to provide the insurance for gay (same sex) people who are working for company (romow. om, 2008) Promoting principles and values * â€Å"If you are an activist, you bring the activism of your life into your business, or if you love creative art, you can bring that in. † Anita bring her own ideal to spread it across organisation (Ehicalcorp. com, 2000) Giving emotional support and encouragement: * You have to believe in what you are doing so strongly it becomes a reality, said Roddick who inspired others to get involved in creating a better world (AnitaRoddick,2004) 3. 5 Charismatic and Transformational Leadership 3. 6. 5 Steve Jobs Transformational leader: brings positive changes in an organization on managing through the economic downturn. He regarded the lay-off worker solution as the last thing for Apple Computer, but he planned to set aside amount of money in their profit for funding for research and development and marketing advertising budget (CNNmoney. com, 2008) Visionary: * He drew a perspective for people in 5 years ahead when they can watch their favourite channel on Apple TV, basketball match via video’s blog or TV shows via Disney’s ESPN Inc (CNNmoney. om, 2008) Masterful communication skill: * In presentation, the motto of Steve jobs is he not only sell product, but sell the dream for audience about the better world they are going to have as well. (Businessweek. com, 2008) Ability to inspire the trust: * Steve Jobs made his employee to pursuit their dream by the quote â€Å"most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary. † (CNNmoney. com, 2008). Able to make members feel capable praise members or make members feel capable * Steve Jobs said to his employees in the organization conference Theres no other company that could make a MacBook Air and the reason is that not only do we control the hardware, but we control the operating system† (CNNmoney. com, 2008). Unconventional strategies * Steve Jobs decided not to hire consultant or do market research. Apple only has a 10-year consultant firm for analysing the competitor’s retail strategy to avoid making the same mistake (CNNmoney. com, 2008). Emotional expressiveness: express feeling openly When employee proposes him a not so good plan, the often quote he say to them is â€Å"that’s shit†. However, when they come back with the better one, he says â€Å"You worked hard. Well done† (CNNmoney. com, 2008) 3. 6. 6 Anita Roddick Transformational leader: When selecting supply chain or manufacturing issues Anita never considers profit, revenue or finan cial issues first, but environmental or ethic perspectives (Anitaroddick. com, 2004) Visionary: * Anita saw that a company or organization that displays a commitment in term of making this world better will gain a great deal; especially in times when world has many changes. Beyond Suffrage: A Book Review EssaySince Body Shop was founded, Roddick had envisioned a higher purpose for the company – social and environmental change, including education for staff (Conger ; Kanungo, 1998). Both leaders are visionary because they have great attractive visions which draw an impressive picture which the companies would attain. (Durbin, et al 2006) Unconventional Strategy In order to create the differentiation for Apple, Steve Jobs has worked out some unusual strategy to attain the goal. For example, Apple has no market research, instead only focuses on great products (see part Finding above). It means Steve Jobs treasured the risk but this unusual strategy can inspire innovation for greater products – one significant goal. Roddick designed unconventional strategy when she traveled around the world to find out natural beauty products that were friendly to environment and never test products on animals (Durbin, Dalglish ; Miller, 2006). At present, this is becoming more popular but at that time, Roddick was the first person to implement it and made Body Shop a sample of natural products. Ability to create trust Steve Jobs is also well known for his ability to create trust. For example, when Apple determines to invest on Macintosh computer, the product development group was out of sync; however, Steve Jobs is successful in directing them toward a groundbreaking end by creating total trust (Harkins, 2005). In this case, Jobs has created the trust to make followers willing to risk their career in pursuit of the goal. As discussed above, in Body Shop, employees are considered as an important element in her long term vision. To Roddick, there is a basic idea that companies have a responsibility to their people as well as the society. When employees really believe in this fundamental principle of the company; they will want to remain as a part of company Bruce ; Pepitone (1999); it means Roddick had created the trust to all Body Shop people. 4. 9. 13 Differences Emotional expressiveness and personal warmth – masterful communication skills Steve Jobs has ability to express his feelings openly when he evaluates quality of his employees’ projects. Expressing feelings openly is also demonstrated in his presentation skills when he shows his feelings about the new products very impressively which persuade customers effectively. It is also a part of Jobs’ masterful communication skill. He not only sells the greater product but also gives a dream of better world. Besides that, Steve Jobs knows how to promote risk taking; with all new great products such as Mac, i-phone, Jobs has made others admire such courage (Galo, 2009). While Roddick had not shown her ability to express feelings clearly; instead, everyone can see her personal warmth by visiting and talking to employees on factory floor which has made all people feel they are parts of the organization (Roddick, 2007). Transformational leadership – transactional leadership Are Steve Jobs and Anita Roddick transformational leaders? According to Yulk (2006), within transformational leadership, followers attain trust, admiration, loyalty, respect to the leaders; they are also motivated to achieve more than expected. Above all, transformational leaders are the leaders who make the positive changes in organizations. Therefore, it can be concluded that both Steve Jobs and Anita Roddick are transformational leaders. However, in general, the charismatic characteristics in Jobs have shown more impressively than Roddick. Jobs also has shown masterful communication skills, promote risk taking. However, Jobs also has transactional leadership. As discussed above, Jobs’ behaviours focus on task related relationship. He always clarifies expectation and expect high performance standard and provide rewards for that high performance (see the comparison of behavior). In contrast, Roddick only has relationship oriented relationship; therefore Roddick has no transactional leadership. 4. 9. 14 Conclusion In conclusion, Jobs and Roddick has some common and also different characteristics but both of them are effective leaders who have made great changes for their organizations. Though sharing some common characteristics, they express them in different ways; however, the important point is that those characteristics work very effectively. Specifically, both leaders do not have all characteristics of charismatic leadership but they have significant elements to make successes and the key point of these successes is transformational leadership. 4. 9 Power, Politics and Influence Tactics of Leadership 4. 10. 15 Similarities Both Steve Jobs and Anita Roddick have personal power type. According to Yukl 2006, personal power type includes referent and expert power that are gained from admiration, respect and knowledge respectively. However, the common interesting thing of these two leaders is that their knowledge did not come from academic training but from their own experience. This seems to increase their personal power as they got unique knowledge of how to do their jobs well (Hickson et al. , 1971). In addition, both leaders are transformational leaders (Scott. E 2003). Dubrin et al. , 1968 assert that transformational leaders have influence on others through being respected and admired. Thus, both Steve Jobs and Anita Roddick have referent power. 4. 10. 16 Differences Although, both Anita Roddick and Steve Jobs have similar source of power that is legitimate power that leaders have legal right to make a decision (Zand 1997). However, there are differences in the way they gain these powers. Anita Roddick is founder of Body Shop so it is transparent that she got the whole right to make decision in term of Bodyshop’s business. However, Steve Jobs is just one of Apple’s founders. Therefore, his right to make decision might have to be shared with other founders. According to Finklstein 1992, how strong power is related to amount of money that leader invests in the company. Steve Jobs has approximately 50% of Apple’s share (Mintz 2009). In addition, he is also CEO of Apple so he got highest right to make a decision. Steve Jobs and Anita Roddick use different other powers to lead their employees. Steve Jobs uses reward power to increase culture amongst Apple’s retail employees. According to Bubrin et al. , 1968, transactional leader often use rewards and punishment to control behaviours. In addition, Scott (2003) reckons that Steve Jobs is both transactional and ransformational leader. These might explain why Jobs uses rewards power to lead his employees. In contrast, Anita Roddick practices empowerment to lead her employees. Empowerment refers to realizing the talents and human potential that lies in the knowledge, experience and internal motivation of the people in the organization and releasing the power (Lussier and Achua 200 7). Anita Roddick’s leadership style is participative as her focus on relationship with follower. This might be one of reasons that why she practices empowerment in order to share power with qualified employees. In addition, through empowering practices, Anita Roddick also can build good relationship with her employees. 4. 10. 17 Conclusion Although Anita Roddick and Steve jobs work in different industries, they have some similar powers that are gained from position, knowledge and admiration. However, because of difference in leadership style, Roddick and Jobs use some different types of power. Jobs are also transactional leader so he use reward power to lead follower. In contrast, Roddick has relationship oriented so she uses empowering practices to share power in order to increase tasks’ effectiveness. . Key Learning Outcome 5. 10 Learning Outcome 1 Participative leader is usually admired by the majority. Through the findings, discussion and analysis under the topic of leadership behaviours and styles, it can be inferred that a leader with mainly autocratic style like Steve Jobs is usually admired by his performance. However, he is not close to his employees and it is difficult for him to influence people nicely. According to Draft 2007, autocratic leaders can have high performance since they used to set high standards for the performance. However, this is true with Steve Jobs. In contrast, a leader with democratic (participative) styles like Anita Roddick performs well and also receives the involvement of every group member voluntarily. 5. 11 Learning Outcome 2 Each type of power has both advantages and disadvantages sides. Each type of power has both advantages and disadvantages. For example, using empowering practices might help leaders have good relationship with employees and reduce stress and increase productivity and effectiveness as sharing power to generate new idea, solution from followers. However, it can create conflict amongst employees as. In term of reward power, leaders can encourage and force employees to put effort into their tasks. However, according to Arthur G. Sharp 2009, reward power might not work if employees do not believe they will be rewarded for their efforts or the value of rewards are not satisfied by employees as they think they can gain more value of rewards than that for their effort. Therefore, effective and power leaders do not mean that they have and use all type of power to lead follower. Effective and power leaders are people who can understand current situation to define suitable power. In addition, high level of power does not totally depend on which gender leader is, how many and high degree leader achieve. The crucial factor is what you really gain from real experience, how well leaders applied his knowledge and perform their work. To illustrate, Steve Jobs did not gain any IT degree from university but he can make computers by himself. Now he has strong power in Apple. Steve Jobs also has strong influence on many people over the world not only in his company. 5. 12 Learning Outcome 2 Either transactional or transformational leadership can make effective leaders. As discussed above, Jobs has some characteristics of transactional leadership. He understands his employees very well, knows how to motivate the whole group and gives them deserved rewards for high performance standard. However, what makes Steve Jobs and Anita Roddick great leaders is transformational leadership. If Jobs only applied transactional leadership, he probably wouldn’t create Apple’s fame which wins the admiration in the last decade. Since transformational leaders motivate their followers to take ownership of company’s vision, pursue the higher needs, perform more than expectation (Daft, 2005). That can be the reason why Jobs and his team can create the great products such as Mac or iTunes. Moreover, (Durbin, et al 2005) stated that transformational leaders also inspire people to make the difference and develop long term relationship through personal consideration that is the key of Roddick’ success. Roddick has no transactional leadership quality but everyone has to confirm that she is an effective and successful leader when she can inspire her people about the company of natural beauty regarding moral which make the particular difference of Body Shop. . Reference * ‘All about Steve’ 2009, Fortune, Vol. 160, Iss. 10, pp 123-126, viewed 31st December 2009, ;http://search. ebscohost. com. ezproxy. lib. rmit. edu. au/login. aspx? direct=true;db=buh;AN=45693827;site=ehost-live;scope=site; * â€Å"Anita Roddick – The power of one†, 2004, viewed at 24th December 2009, ;http://www. ethicalcorp. com/content. asp? 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