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Lecture Notes for Accounting Principles IFRS Version, Global Edition, 1st Edition

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 Lecture Notes Chapter 1 : Understanding Leadership Chapter Summary I. Leadership Explained A. Trait Approach B. Behavior Approach C. Situational Approach D. Relational Approach E. “New Leadership” Approach F. Emerging Leadership Approaches II. Global Leadership Attributes A. American Perspective B. The GLOBE Studies III. The Dark Side of Leadership A. Definitions B. Three Preconditions IV. Practicing Leadership A. Demand for Leadership B. Effective Leadership V. Leadership Snapshot A. Indra Nooyi, CEO, PepsiCo VI. Case Study: King of the Hill Chapter O bjectives 1. Review the evolution of leadership. 2. Examine the different perspectives on leadership. 3. Understand the impact of culture on leader effectiveness.

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 Lecture Notes  Which dimension of leadership seems closest to how you think of leadership?  How would you define leadership? I. Defining Leadership A. The evolution of leadership 1. Leadership has been the topic of extensive literature for centuries. 2. Studies of leadership have emerged from every discipline. 3. As a result, there ar e many approaches to leadership. B. Leadership is a t rait . 1. Early trait theories were called “Great Man” theories. 2. Identification of “The Big 5” personality factors 3. Definition: A trait is a distinguishing quality of an individual, which is often inherited. Thus the view that, “leaders are born, not made.” 4. Most important is that leaders have the traits that a particular situation demands. 5. Effective leadership is a result of utilizing the right traits at the right time. C. Leadership is ability . 1. Definition: Ability refers to a natural capacity, but can be acquired. 2. Example: Athletic ability can be both innate and learned through exercise and practice. 3. Individual’s abilities create outstanding leadership. 4. UCLA Coach John Wooden’s four principles: explanation, demonstration, imitation, and repetition. D. Leadership is a skill. 1. Definition: Skill is a competency developed to accomplish a task effectively. 2. Example: Fund - raising 3. People can learn or develop competencies. E. Leadership is a behavior . 1. Research began in 1930s at Ohio State University and University of Michigan on how leaders act in small groups. 2. Definition: Behavior is what leaders do when in a leadership role; observable actions. 3. Task behaviors get the job done. 4. Process behaviors help people feel comfortable with other group members and feel included. 5. Challenge for leaders is to combine the two behaviors to achieve desired outcomes.

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 F. Leadership is situational. 1. Premise is that different situations demand different kinds of leadership. 2. Serious research began in 1960s with Hersey, Blanchard and Reddin. 3. Path goal theory and contingency theory are outgrowths of this early research. G. Leadership is a relationship. 1. Research began in the 1990s. 2. Research evolved into Leader - Member Exchange Theory, which predicts that high quality relations generate more positive leader outcomes than lower - quality relations. 3. Leadership is not one - way, but interactive. 4. Leadership is not restricted to the formally designated leader in a group. 5. Ethical overtone; working together for a common good. H. Leadership is transformational. 1. Research began in the mid 1980s. 2. Leadership can change people and organizations. 3. Charismatic leadership. I. Leadership is multi - dimensional. 1. Authentic leadership 2. Spiritual leadership 3. Servant leadership 4. Gender based leadership 5. Cultural and global leadership J. Leadership is an influence process. 1. Definition: Leadership is a process whereby an individual influences a group of individuals to achieve a common goal. 2. Not a trait or ability but interactive event. 3. Stresses common goals. 4. Leadership and management overlap at times. 5. Managers are people who do things right, whereas leaders are people who do the right thing. K. Theory or Approach? 1. Terms not the same 2. Approach is more general concept, not research based. 3. Theory uses hypotheses, principles or propositions to explain the leadership process. II. Global Leadership Attributes A. Are there global leadership attributes? B. The leadership concepts in this book are from an American p erspective . C. The GLOBE studies (2004) 1. Surveyed 17,000 people in 62 countries 2. Identified 22 positive leader attributes, 8 negative leader attributes. III. The Dark Side of Leadership A. Same processes at work as above, but for selfish or amoral purposes.

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 B. Toxic leaders leave followers worse off then before. C. Three preconditions for destructive leadership to occur: 1. Destructive leader 2. Susceptible followers 3. Conducive environment IV. Practicing Leadership A. Strong d emand for effective leadership today. B. Effective leadership is intended influence that creates change for the greater good. C. Challenge is for each of us to be prepared to lead when we are asked to. V. Leadership Snapshot A. Indra Nooyi, CEO, PepsiCo B. One of top female executives in the US. C. Masters in Management from Yale D. Chief dealmaker for PepsiCo during Tropicana and Quaker Oats acquisitions. E. Invested in R&D to create healthy alternatives to traditional snack products. VI. Case Study

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 Lecture Notes Chapter 2 : Recognizing Your Traits Chapter Summary I. Leadership Traits Explained A. Intelligence B. Confidence C. Charisma D. Determination E. Sociability F. Integrity II. Leadership Traits in Practice A. George Washington B. Winston Churchill C. Mother Teresa D. Bill Gates E. Oprah Winfrey III. Leadership Snapshot: Nelson Mandela IV. Case Study: An Emerging Leader Chapter O bjectives 1. Understand the six key leadership traits. 2. Reviewing traits and characteristics of famous leaders. Lecture Notes  Wh y are some people leaders and others not?  What makes people become leaders?  Do leaders have certain traits? I. Leadership Traits Explained A. Extensive trait research conducted by social scientists B. Very long list identified of important leadership traits

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 C. House et al (2004) study of 17,000 managers in 62 different cultures identified 22 universally valued traits D. Six specific traits leaders need to be successful 1. Intelligence a. Definition – Having good language skills, perceptual skills and reasoning ability b. Intelligence can be improved by being well - informed, learning as much as possible about our positions c. Example of Chris, coaching his daughter’s middle school soccer team d. Becoming more knowledgeable about our leadership position gives us the information we need to become better leaders 2. Confidence a. Definition – Feeling self - assured and believing one can accomplish one’s goals, not second - guessing b. Confidence can be improved by understanding what is required of you, from having a mentor, and from practice c. Awareness and understanding build confidence d. Example of Michael Phelps whose 28 Olympic medals were earned through rigorous swim practice as well as his natural athleticism 3. Charisma a. Definition – Special magnetic charm and appeal, giving the leader exceptional powers of influence b. Charismatic leaders serve as strong role models, show competence in every aspect of leadership, articulate clear goals and strong values, have high expectations for followers and inspire others. c. Example of John F. Kennedy who motivated Americans by eloquent public speaking ability. 4. Determination a. Definition - Being very focused and attentive to tasks; know where they are going and how to get there. b. Determination can be acquired through perseverance, staying focused on the task, clarifying goals, and encouraging others to stay the course c. Example of Nelson Mandela, whose single goal was to eradicate apartheid in South Africa. 5. Sociability a. Definition – Leader’s capacity to establish pleasant social relationships. b. Sociability can be developed by being friendly, kind and thoughtful, as well as talking freely with others and giving them support. c. Example of student Anne Fox, who learned everyone’s name in class and created an atmosphere of inclusion 6. Integrity a. Definition – Honesty and trustworthiness; taking responsibility for one’s actions; authenticity

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 b. Developing integrity involves being open and candid, yet self - monitoring for appropriateness. Negative example of former president Bill Clinton, lying during a televised speech about his relationship with Monica Lewinski II. Historical Leadership A. George Washington (1732 - 1799) 1. Biography a. Born into a prosperous Virginia family; grew up on a plantation. b. 7 years of formal schooling; worked as a surveyor c. Entered the military at age 20 d. Commander in chief of the Continental Army from 1775 - 1783 e. Experienced both victory and defeat in battles f. Instrumental leader during Revolutionary War g. Chosen to preside over Constit utional Convention in 1787, held in Philadelphia h. Elected as first president of the United States; served two terms i. Retired to Mt. Vernon in 1797; died at age 67. 2. Traits and Characteristics a. Modesty, moral character b. Demonstrated integrity, virtuousness, and wisdom c. Neither highly education, nor brilliant d. Tall, careful about appearance e. Integrity – Rather than use power for his own ends, he gave up his position as commander in chief after the Revolutionary War f. Even - tempered, stable personality – kept a daily record of his work, predictable behavior made him trustworthy g. Sound judgment h. He “was great because he was good.” B. Winston Churchill (1874 - 1965) 1. Biography a. One of the greatest statesman and orators of the 20 th century b. Served in the British military during WWI c. Became Prime Minister of Great Britain in May 1940 and served throughout WWII. d. Stood strong during German invasion of Great Britain e. Many famous speeches that lifted nation’s morale f. Social reformer g. Gifted writer and painter; received Nobel Prize for Literature in 1953 2. Traits and Characteristics a. Average student b. Loner; not many friends c. Bouts of depression throughout his life d. Voracious reader e. Plain - speaking, decisive, detail oriented, informed f. Ambitious , not for self but for the best for Great Britain

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 g. Masterful public speaker h. Ability to build hope and inspire others to rise to the challenge i. Stoicism and optimism . C. Mother Teresa (1920 - 1997) 1. Biography a. Born in Macedonia b. Joined the Catholic Sisters of Loreto at age 18; worked as high school teacher in Calcutta for 18 years c. Left the convent in 1948 to devote herself to working full time with the poorest of the poor in the slums of the city d. In 1950 she founded a new religious order, the Missionaries of Charity, to care for the hungry, homeless and unwanted e. Received the Nobel Peace Prize in 1979 f. Today more than 1 million workers are affiliated with the Missionaries of Charity g. Received many awards for her humanitarian efforts h. Canonized as a saint in 2016 by Pope Francis 2. Traits and Characteristics a. Simple woman; chose to live in poverty b. Focused on goal of caring for the poorest c. True civil servant: Determined, fearless, humble, and spiritual d. Never wavered in her pro - life values e. Role model; practiced what she preached D. Bill Gates (1954 - ) 1. Biography a. Interest in computers began at age 13 ; developed his first software program b. Attended Harvard but left before graduating c. Co - founded Microsoft in 1975 d. Developed MS_DOS system and Internet Explorer browser e. Was the wealthiest person in the world for many years ($70 billion) f. Established Bill & Melinda Gates Foundation in 2000 to improve lives around the world g. Foundation promotes education, health initiatives (HIV/AIDS, TB), libraries, and housing h. Stepped down as CEO in 2006 to serve as chairman of the board i. In 2014 stepped down as board chairman to be “Technology Advisor” and mentor to the new CEO 2. Traits and Characteristics a. Intelligent and visionary b. Task oriented and diligent - 12+ hour workdays c. Focused and aggressive d. Relentless – “There is never a finish line” e. Personally unpretentious, straightforward, altruistic

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 f. Strong concern for the poor and underserved E. Oprah Winfrey . (1954 - ) 1. Biography a. One of the most powerful and influential woman in the world b. Born in rural Mississippi; dysfunctional family; raised by grandmother c. Learned to read very early; skipped two grades in school d. Difficult high school years; molested by family member e. Honors student in high school; national recognition for public speaking ability f. Full scholarship to college where she studied communication and worked at a local radio station g. Eventually became host of the Oprah Winfrey show h. She’s also an actor, film producer, book critic and magazine publisher i. Highest paid entertainer in television ($260 million/year) j. Left her successful TV show in 2011 to concentrate on her TV network, OWN k. Long - lived interest in health issues and dieting programs. l. In 2015 became a stockholder and board member of Weight Watchers m. Total wealth over $ 3. 1.billion n. Philanthropy focused on making a difference in the lives of the underprivileged and poor o. Established a leadership academy in South Africa 2. Traits and Characteristics a. Excellent communicator b. Comfortable in front of an audience c. Intelligent and well - read d. Strong business sense e. Sincere, determined, inspirational f. Charismatic g. Spontaneous, expressive, self - disclosing h. Role model – shares her personal struggles publicly i. Message of hope F. Summary 1. Each of these leaders is unique 2. These leaders share many common characteristics 3. Can learn from them how our own traits affect our leadership III. Leadership Snapshot: Nelson Mandela.(1932 - ) Born in 1918 in a small African village Grew up in South Africa during apartheid

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 Studied law, opened first black law partnership in 1942 Became a leader in African National Congress, resisting South Africa’s apartheid policies Influenced by Gandhi’s ideal of nonviolent resistance, but came to support violent tactics of opposition to apartheid government. Sent to prison in 1964; served 27 years. Refused a chance to leave prison early in exchange for denouncing violent tactics In prison Mandela learned to control his temper and strong will, instead using persuasion and emphasis to convince others Became a natural leader in prison In 1990 President de Klerk released Mandela When released in 1990, Mandela was not angry or vindictive, but worked to unite hos country of South Africa In 1992, the South African government instituted a new constitution Became president of South Africa in 1994 Received Nobel Peace Prize for his role in abolishing apartheid Continues to be an advocate for peace and justice throughout the world IV. Case Study

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 Lecture Notes Chapter 3 : Engaging Strengths Chapter Summary I. Strengths - Based Leadership Explained A. What are strengths? B. Historical background 1. Gallup organization 2. Positive psychology C. Identifying and measuring strengths 1. Gallup and the strengths finder profile 2. Values in Action Institute and Inventory of Strengths 3. Centre for Applied Positive Psychology and Realise2 Assessment II. Strengths - Based Leadership in Practice A. Discovering your strengths B. Developing your strengths 1. Differences across cultures 2. Recognizing weaknesses C. Recognizing and engaging the strength s of others D. Fostering a positive strengths - based environment III. Leadership Snapshot: Steve Jobs, former CEO and founder of Apple, Inc. IV. Case study: Ready to be CEO? Chapter Objectives 1. Explore how strengths can make one a better leader. 2. Understand the concept of strength. 3. Describe the historical background of strengths - based leadership. 4. Examine how to identify strengths. 5. Review measures used to assess strengths. 6. Examine strengths - based leadership in practice.

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 Lecture Notes  What was it about you or the way you presented yourself that made you feel good ?  What did you do that worked so well ? I. Strengths - Based Leadership Explained A. What are Strengths? 1. An attribute or quality of an individual that accounts for successful performance. 2. Ability to consistently demonstrate exceptional work. 3. Positive features of ourselves that make us effective and help us flourish. B. Historical Background . 1. Researchers at Gallup Organization initiated a massive study that included interviews of over 2 million people to describe what’s right with people. a. Academic research began to focus on what accounted for the well - being of mentally and physically healthy people. b. Gallup developed the StrengthsFinder Profile, an online assessment of people’s strengths. c. StrengthFinder, one of most widely used self - assessment questionnaire, has been used by more than 10 million people. d. Widely accepted use of StrengthsFinder has elevated strengths as a key variable in discussions of factors that account for effective leadership. 2. Positive Psychology a. Major change in the discipline of psychology. b. Focus expanded from what’s wrong with people and their weaknesses to what’s right with people and their positive attributes. c. Positive psychology can be defined as “the ‘scientific’ study of what makes life most worth living . ” d. Positive psychology launched that analysis of people’s strengths into the mainstream of scientific research. C. Identifying and Measuring Strengths. 1. Gallup researchers, through extensive interviews of executives, salespeople, teachers, etc., extracted 34 patterns or themes that they thought did the best job at explaining excellent performance. a. Gallup identified themes of human talent, not strengths. b. The equation for developing a strength is talent times investment. c. Talents are not strengths, but they provide the basis for developing strengths when they are coupled with knowledge, skills, and practice. d. Strength is measured by using Gallup’s StrengthsFinder, a 177 item questionnaire that identifies areas where you have the greatest potential to develop strengths.

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 e. There are four domains of leadership strength; executing, influencing, relationship building, and strategic thinking. f. Effective teams possess broad groupings of strengths and work best when all four domains of leadership strength are represented on their teams. 2. Values in Action (VIA) Institute and Inventory of Strengths: Engaged in a project to develop a framework for the field of positive psychology that defined and conceptualized character strengths. a. Reviewed philosophical and spiritual literature in Confucianism, Buddhism, Hinduism, Judeo - Christianity among others to develop this classification. b. They identified 6 universal core virtues: courage, justice , humanity, temperance, transcendence, and wisdom. c. The VIA includes 24 strengths organized under these 6 basic virtues. d. The strengths identified by the StrengthsFinder are more closely tied to the workplace and helping individuals perform better, while VIA strengths are focused more directly on a person’s character and how they can become more virtuous. e. VIA can be completed online in 30 minutes and is available for free at www.viacharacter.org . 3. Centre for Applied Positive Psychology (CAPP) and Realise2 Assessment: Based on the principles of positive psychology. a. CAPP researchers created a more dynamic model of strengths that emphasizes the changing nature of strengths. b. CAPP argued that strengths are more fluid than personality traits and can emerge over a lifetime through the different situations we experience. c. Realise2, the questionnaire CAPP uses, assesses 60 strengths in relationship to three dimensions of energy, performance, and use. d. Realise2 can be completed in 20 minutes and is available online for a fee at www.capp@cappeu.com . e. The CAPPS strengths perspective is represented in the Realise2 Quadrant Model: Realised strengths, Unrealised strengths, Learned Behaviors, and Weaknesses. f. Realised strengths are personal attributes that represent our strongest assets. We are energized when we use them. g. Unrealised strengths are personal attributes that are less visible. We feel good when we tap into them because they support our efforts. h. Learned behaviors represent those ingrained things that we have learned throughout our life experience. Although valuable, they do not excite or inspire us. i. Weaknesses are our limiting attributes. They often drain our energy and result in poor performance. j. Unlike the previous approaches, the CAPP model is prescriptive and pragmatic.

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 k. We should capitalize on our strengths, increase use of unrealized strengths, moderate use of learned behaviors, and minimize use of weaknesses. II. Strengths Based Leadership in Practice A. Discovering your strengths 1. Discovering your strengths requires you to concentrate on your positive attributes and those times when you feel inspirited. 2. There are several ways to discover one’s strengths. Completing one or more of the strengths questionnaires (StrengthsFinder 2.0, VIA - IS, Realise2) is a good start. Completing exercises at the end of this chapter would also help. B. Developing your strengths 1. A multifaceted process that involves several steps. 2. First, you must acknowledge your strengths and be prepared to reveal them to others because it lets other know how we can me most useful when working together. 3. People use a variety of ways to reveal their strengths, such as posting them on Facebook or LinkedIn, adding them to their email signature, or listing them on their resume. 4. Recognize there are cultural differences in how people express strengths . Not all “strengths” are equally valued across cultures. 5. Second, practice working consistently with others based on your strengths. For example, if your strength is as an innovator, find ways to be creative in your leadership. 6. Recognize and address weaknesses which can detract from your leadership . C. Recognizing and engaging the strengths of others 1. Leaders also need to recognize and engage the strengths of their followers. They need to determine that followers are good at doing and help them to do it. 2. Often the strengths of followers are not evident to leaders or even to the followers themselves. 3. Through completing a project or assignments, a person can be surprised to learn that they have a strength in a certain area such as creativity. 4. It is important to find opportunities outside followers’ normal realm of duties or activities that will allow their strengths to emerge. 5. Knowing followers’ unique strengths allows leaders to make work assignments that maximize each individual’s contribution to the collective goals of the group. D. Fostering a positive strengths based environment 1. A final way to practice strengths - based leadership is to create and promote a positive work environment in which people’s strengths play an integral role. 2. Organizations that create positive work environments have a positive physiological impact on employees which in turn impacts performance.

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    Northouse, Introduction to Leadership: Concepts and Practice , 4e SAGE Publishing, 2018 3. Leaders who want to create a positive work environment should attend to four areas: climate, relationships, communication, and meaning. 4. To create a positive climate, leaders should foster among their employees virtues such as compassion, forgiveness, and gratitude. 5. To build positive relationships, leaders need to highlight individuals’ positive images and strengths. 6. To develop positive communication, leaders must be supportive, make positive than negative statements, and be less negatively evaluative of others. 7. Leaders can foster positive meaning in their organizations by emphasizing the connection between employees’ values and the long term impact of their work. III. Leadership Snapshot: Steve Jobs, former CEO and founder, Apple, Inc. A. Undoubtedly brilliant, yet didn’t possess the technical abilities to be a computer genius. B. Notable strengths included creativity, team building, strategic vision, and influencing. C. Created Apple in 1980 with the partner Steve Wozniak. D. Jobs believed rules were meant to be broken and in 1984, Apple did just that, introducing a truly revolutionary product, the Macintosh. E. Jobs wasn’t perfect; he could be confrontational and this quality eventually resulted in him being booted out of his own company. F. Moved on to create NeXt Computers and eventually acquired Pixar studios, a company that revolutionized movie animation and made Jobs a multi - billionaire. G. After more than a decade Jobs came back to Apple and narrowed the focus of his company to laptop and desktop computers for the professional and home consumer. H. Over the next 14 years, he dreamt up the iPod, the iPad, and the iPhone, all very successful products. I. Apple produced products that consumers hadn’t thought of or knew they needed. J. In the end, Jobs revolutionized seven industries. K. “Think different” was as much a statement of Jobs’ own strengths as a leader as it was a mission statement for Apple. IV. Case Study

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