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

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Northouse,Introduction to Leadership:Concepts and Practice, 4eSAGE Publishing, 2018Lecture NotesChapter 1:Understanding LeadershipChapter SummaryI.Leadership ExplainedA.Trait ApproachB.Behavior ApproachC.Situational ApproachD.Relational ApproachE.“New Leadership” ApproachF.Emerging Leadership ApproachesII.Global LeadershipAttributesA.American PerspectiveB.The GLOBE StudiesIII.The Dark Side of LeadershipA.DefinitionsB.Three PreconditionsIV.Practicing LeadershipA.Demand for LeadershipB.Effective LeadershipV.Leadership SnapshotA.Indra Nooyi, CEO, PepsiCoVI.Case Study: King of theHillChapter Objectives1.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, 4eSAGE Publishing, 2018Lecture NotesWhichdimension of leadership seems closest to how you think ofleadership?Howwould you define leadership?I.Defining LeadershipA.The evolution of leadership1.Leadership has been the topic of extensive literature for centuries.2.Studies of leadership have emerged from every discipline.3.As a result, there are many approaches to leadership.B.Leadership is a trait.1.Early traittheories were called “Great Man”theories.2.Identification of “The Big 5” personality factors3.Definition: A trait is a distinguishing quality of an individual, which isoften inherited. Thus the view that, “leaders are born, not made.”4.Most important is that leaders have the traits that a particular situationdemands.5.Effective leadership is a result of utilizing the right traits at the righttime.C.Leadership isability.1.Definition: Abilityrefers to a natural capacity, but can be acquired.2.Example: Athletic ability can be both innate and learned throughexercise 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 taskeffectively.2.Example: Fund-raising3.People can learn or develop competencies.E.Leadership is abehavior.1.Research began in 1930s at Ohio State University and University ofMichigan 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 groupmembers and feel included.5.Challenge for leaders is to combine the two behaviors to achieve desiredoutcomes.

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Northouse,Introduction to Leadership:Concepts and Practice, 4eSAGE Publishing, 2018F.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 earlyresearch.G.Leadership is a relationship.1.Research began in the 1990s.2.Research evolved intoLeader-Member Exchange Theory,whichpredicts that high quality relations generate more positive leaderoutcomes 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 leadership2.Spiritual leadership3.Servantleadership4.Genderbasedleadership5.Cultural and global leadershipJ.Leadership is an influence process.1.Definition: Leadership is a process whereby an individual influences agroup 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 peoplewho do the right thing.K.Theory or Approach?1.Terms not the same2.Approach is more general concept, not research based.3.Theory uses hypotheses, principles or propositions to explain theleadership process.II.Global Leadership AttributesA.Are there global leadership attributes?B.The leadership concepts in this book are from an American perspective.C.The GLOBE studies(2004)1.Surveyed 17,000 people in 62 countries2.Identified 22 positive leader attributes, 8 negative leader attributes.III.The Dark Side of LeadershipA.Same processes at work as above, but for selfish or amoral purposes.

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Northouse,Introduction to Leadership:Concepts and Practice, 4eSAGE Publishing, 2018B.Toxic leaders leave followers worse off then before.C.Three preconditions for destructive leadership to occur:1.Destructive leader2.Susceptible followers3.Conducive environmentIV.Practicing LeadershipA.Strong demand foreffectiveleadershiptoday.B.Effective leadershipis intended influence that creates change for the greatergood.C.Challenge is for each of us to be prepared to lead when we are asked to.V.Leadership SnapshotA.Indra Nooyi, CEO, PepsiCoB.One of top female executives in the US.C.Masters in Management from YaleD.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, 4eSAGEPublishing, 2018Lecture NotesChapter2:Recognizing Your TraitsChapter SummaryI.Leadership Traits ExplainedA.IntelligenceB.ConfidenceC.CharismaD.DeterminationE.SociabilityF.IntegrityII.Leadership Traits in PracticeA.GeorgeWashingtonB.Winston ChurchillC.Mother TeresaD.Bill GatesE.Oprah WinfreyIII.Leadership Snapshot: Nelson MandelaIV.Case Study:An Emerging LeaderChapter Objectives1.Understand the six key leadership traits.2.Reviewing traits and characteristics of famousleaders.Lecture NotesWhy are some people leaders and others not?What makes people become leaders?Do leaders have certain traits?I.Leadership Traits ExplainedA.Extensive trait research conducted by social scientistsB.Very long list identified of important leadership traits

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Northouse,Introduction to Leadership: Concepts and Practice, 4eSAGEPublishing, 2018C.House et al (2004) study of 17,000 managers in 62 different cultures identified22 universally valued traitsD.Six specific traits leaders need to be successful1.Intelligencea.Definition–Having good language skills, perceptual skills andreasoning abilityb.Intelligence can be improved by being well-informed, learning asmuch as possible about our positionsc.Example of Chris, coaching his daughter’s middle school soccerteamd.Becoming more knowledgeable about our leadership position givesus the information we need to become better leaders2.Confidencea.Definition–Feeling self-assured and believing one can accomplishone’s goals, not second-guessingb.Confidence can be improved by understanding what is required ofyou, from having a mentor, and from practicec.Awareness and understanding build confidenced.Example ofMichael Phelps whose 28 Olympic medals were earnedthrough rigorous swim practiceas wellas his natural athleticism3.Charismaa.Definition–Special magnetic charm and appeal, giving the leaderexceptional powers of influenceb.Charismatic leaders serve as strong role models, show competence inevery 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 eloquentpublic speaking ability.4.Determinationa.Definition-Being very focused and attentive to tasks; know wherethey are going and how to get there.b.Determination can be acquired through perseverance, stayingfocused on the task, clarifying goals, and encouraging others to staythe coursec.Example of Nelson Mandela, whose single goal was to eradicateapartheid in South Africa.5.Sociabilitya.Definition–Leader’s capacity to establish pleasant socialrelationships.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 classand created an atmosphere of inclusion6.Integritya.Definition–Honesty and trustworthiness; taking responsibility forone’s actions; authenticity

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Northouse,Introduction to Leadership: Concepts and Practice, 4eSAGEPublishing, 2018b.Developing integrity involves being open and candid, yet self-monitoring forappropriateness.Negative example of former president Bill Clinton, lying during a televised speech about hisrelationship with Monica LewinskiII.Historical LeadershipA.George Washington(1732-1799)1.Biographya.Born into a prosperous Virginia family; grew up on a plantation.b.7 years of formal schooling; worked as a surveyorc.Entered the military at age 20d.Commander in chief of the Continental Army from 1775-1783e.Experienced both victory and defeat in battlesf.Instrumental leader during Revolutionary Warg.Chosen to preside over Constitutional Convention in 1787, heldinPhiladelphiah.Elected as first president of the United States; served two termsi.Retired to Mt. Vernon in 1797; died at age 67.2.Traits and Characteristicsa.Modesty, moral characterb.Demonstrated integrity, virtuousness, and wisdomc.Neither highly education, nor brilliantd.Tall, careful about appearancee.Integrity–Rather than use power for his own ends, he gave up hisposition as commander in chief after the Revolutionary Warf.Even-tempered, stable personality–kept a daily record of his work,predictable behavior made him trustworthyg.Sound judgmenth.He “was great because he was good.”B.Winston Churchill(1874-1965)1.Biographya.One of the greatest statesman and orators of the 20thcenturyb.Served in the British military during WWIc.Became Prime Minister of Great Britain in May 1940 and servedthroughout WWII.d.Stood strong during German invasion of Great Britaine.Many famous speeches that lifted nation’s moralef.Social reformerg.Gifted writer and painter; received Nobel Prize for Literature in 19532.Traits and Characteristicsa.Average studentb.Loner; not many friendsc.Bouts of depression throughout his lifed.Voracious readere.Plain-speaking, decisive, detail oriented, informedf.Ambitious, not for self but forthe best for Great Britain

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Northouse,Introduction to Leadership: Concepts and Practice, 4eSAGEPublishing, 2018g.Masterfulpublicspeakerh.Ability to build hope and inspire others to rise to the challengei.Stoicism and optimism.C.Mother Teresa(1920-1997)1.Biographya.Born in Macedoniab.Joined the Catholic Sisters of Loreto at age 18; worked as highschool teacher in Calcutta for 18 yearsc.Left the convent in 1948 to devote herself to working full time withthe poorest of the poor in the slums of the cityd.In 1950 she founded a new religious order, the Missionaries ofCharity, to care for the hungry, homeless and unwantede.Received the Nobel Peace Prize in 1979f.Today more than 1 million workers are affiliated with theMissionaries of Charityg.Received many awards for her humanitarian effortsh.Canonized as a saint in 2016 by Pope Francis2.Traits and Characteristicsa.Simple woman; chose to live in povertyb.Focused on goal of caring for the poorestc.True civil servant: Determined, fearless, humble, and spirituald.Never wavered in her pro-life valuese.Role model; practiced what she preachedD.Bill Gates(1954-)1.Biographya.Interest in computers began at age 13; developed his first softwareprogramb.Attended Harvard but left before graduatingc.Co-founded Microsoft in 1975d.Developed MS_DOS system andInternet Explorer browsere.Was the wealthiest person in the world for many years($70 billion)f.Established Bill & Melinda Gates Foundation in 2000 to improvelives around the worldg.Foundation promotes education, health initiatives (HIV/AIDS, TB),libraries, and housingh.Stepped down asCEO in 2006to serve aschairman of the boardi.In 2014 stepped down as board chairman to be “TechnologyAdvisor” and mentor to the new CEO2.Traits and Characteristicsa.Intelligent and visionaryb.Task oriented and diligent-12+ hour workdaysc.Focused and aggressived.Relentless–“There is never a finish line”e.Personally unpretentious, straightforward, altruistic

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Northouse,Introduction to Leadership: Concepts and Practice, 4eSAGEPublishing, 2018f.Strong concern for the poor and underservedE.Oprah Winfrey.(1954-)1.Biographya.One of the most powerful and influential woman in the worldb.Born in rural Mississippi; dysfunctional family; raised bygrandmotherc.Learned to read very early; skipped two grades in schoold.Difficult high school years; molested by family membere.Honors student in high school; national recognition for publicspeaking abilityf.Full scholarship to college where she studied communication andworked at a local radio stationg.Eventually became host of theOprah Winfreyshowh.She’s also an actor, film producer, book critic and magazinepublisheri.Highest paidentertainer in television ($260 million/year)j.Left her successful TV show in 2011 to concentrate on her TVnetwork, OWNk.Long-lived interest in health issues and dieting programs.l.In 2015 became a stockholder and board member of WeightWatchersm.Total wealth over $3.1.billionn.Philanthropy focused on making a difference in the lives of theunderprivileged and pooro.Established a leadership academy in South Africa2.Traits and Characteristicsa.Excellent communicatorb.Comfortable in front of an audiencec.Intelligent and well-readd.Strong business sensee.Sincere, determined, inspirationalf.Charismaticg.Spontaneous, expressive, self-disclosingh.Role model–shares her personal struggles publiclyi.Message of hopeF.Summary1.Each of these leaders is unique2.These leadersshare many common characteristics3.Can learn from them how our own traits affect our leadershipIII.Leadership Snapshot: Nelson Mandela.(1932-)Born in 1918 in a small African villageGrew up in South Africa during apartheid

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Northouse,Introduction to Leadership: Concepts and Practice, 4eSAGEPublishing, 2018Studied law, opened first black law partnership in 1942Became a leader in African National Congress, resisting SouthAfrica’s apartheid policiesInfluenced by Gandhi’s ideal of nonviolent resistance, but came tosupport 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 denouncingviolent tacticsIn prison Mandela learned to control his temper and strong will,instead using persuasion and emphasis to convince othersBecame a natural leader in prisonIn 1990 President de Klerk released MandelaWhen released in 1990, Mandela was not angry or vindictive, butworked to unite hos country of South AfricaIn 1992, the South African government instituted a new constitutionBecame president of South Africa in 1994Received Nobel Peace Prize for his role in abolishing apartheidContinues to be an advocate for peace and justice throughout theworldIV.Case Study

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Northouse,Introduction to Leadership: Concepts and Practice, 4eSAGE Publishing, 2018Lecture NotesChapter3:Engaging StrengthsChapter SummaryI.Strengths-Based Leadership ExplainedA.What are strengths?B.Historical background1.Gallup organization2.Positive psychologyC.Identifying and measuring strengths1.Gallup and the strengths finderprofile2.Values in Action Institute and Inventory of Strengths3.Centre for Applied Positive Psychology and Realise2 AssessmentII.Strengths-Based Leadership in PracticeA.Discovering your strengthsB.Developing your strengths1.Differences across cultures2.Recognizing weaknessesC.Recognizing and engaging the strengthsof othersD.Fostering a positive strengths-based environmentIII.Leadership Snapshot: Steve Jobs, former CEO and founder of Apple, Inc.IV.Case study: Ready to be CEO?Chapter Objectives1.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.Examinestrengths-based leadership in practice.

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Northouse,Introduction to Leadership: Concepts and Practice, 4eSAGE Publishing, 2018Lecture 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 ExplainedA.What are Strengths?1.Anattribute or quality of an individual that accounts for successfulperformance.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 Organizationinitiated a massive study thatincluded interviews of over 2 million people to describe what’s rightwith 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 assessmentof people’s strengths.c.StrengthFinder, one of most widely used self-assessmentquestionnaire, has been used by more than 10 million people.d.Widely accepted use of StrengthsFinder has elevated strengths as akey variable in discussions of factors that account for effectiveleadership.2.Positive Psychologya.Major change in the discipline of psychology.b.Focus expanded from what’s wrong with people and theirweaknesses to what’s right with people and their positive attributes.c.Positive psychology can be defined as “the ‘scientific’ study of whatmakes life most worth living.”d.Positive psychology launched that analysis of people’s strengths intothe 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 theythought 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 developingstrengths when they are coupled with knowledge, skills, andpractice.d.Strength is measured by using Gallup’s StrengthsFinder, a 177 itemquestionnaire that identifies areas where you have the greatestpotential to develop strengths.

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Northouse,Introduction to Leadership: Concepts and Practice, 4eSAGE Publishing, 2018e.There are four domains of leadership strength; executing,influencing, relationship building, and strategic thinking.f.Effective teams possess broad groupings of strengths and work bestwhen all four domains of leadership strength are represented on theirteams.2.Values in Action(VIA)Institute and Inventory of Strengths: Engaged ina project to develop a framework for the field of positive psychologythat defined and conceptualized character strengths.a.Reviewed philosophical and spiritual literature in Confucianism,Buddhism, Hinduism, Judeo-Christianity among others to developthis 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 tiedto the workplace and helping individuals perform better, while VIAstrengths are focused more directly on a person’s character and howthey can become more virtuous.e.VIA can be completed online in 30 minutes and is available for freeatwww.viacharacter.org.3.Centre for Applied Positive Psychology (CAPP) and Realise2Assessment: Based on the principles of positive psychology.a.CAPP researchers created a more dynamic model of strengths thatemphasizes the changing nature of strengths.b.CAPP argued that strengths are more fluid than personality traits andcan emerge over a lifetime through the different situations weexperience.c.Realise2, the questionnaire CAPP uses, assesses 60 strengths inrelationship to three dimensions of energy, performance, and use.d.Realise2 can be completed in 20 minutes and is available online for afee atwww.capp@cappeu.com.e.The CAPPS strengths perspective is represented in the Realise2Quadrant Model: Realised strengths, Unrealisedstrengths, LearnedBehaviors, and Weaknesses.f.Realised strengths are personal attributes that represent our strongestassets. We are energized when we use them.g.Unrealised strengths are personal attributes that are less visible. Wefeel good when we tap into them because they support our efforts.h.Learned behaviors represent those ingrained things that we havelearned throughout our life experience. Although valuable, they donot excite or inspire us.i.Weaknesses are our limiting attributes. They often drain our energyand result in poor performance.j.Unlike the previous approaches, the CAPP model is prescriptive andpragmatic.

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Northouse,Introduction to Leadership: Concepts and Practice, 4eSAGE Publishing, 2018k.We should capitalize on our strengths, increase use of unrealizedstrengths, moderate use of learned behaviors, and minimize use ofweaknesses.II.Strengths Based Leadership in PracticeA.Discovering your strengths1.Discovering your strengths requires you to concentrate on your positiveattributes and those times when you feel inspirited.2.There are several ways to discover one’s strengths. Completing one ormore of the strengths questionnaires (StrengthsFinder 2.0, VIA-IS,Realise2) is a good start. Completing exercises at the end of this chapterwould also help.B.Developing your strengths1.A multifaceted process that involves several steps.2.First, you must acknowledge your strengths and be prepared to revealthem to others because it lets other know how we can me most usefulwhen working together.3.People use a variety of ways to reveal their strengths, such as postingthem on Facebook or LinkedIn, adding them to their email signature, orlisting 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 yourstrengths. For example, if your strength is as an innovator, find ways tobe creative in your leadership.6.Recognize and address weaknesses which can detract from yourleadership.C.Recognizing and engaging the strengths of others1.Leaders also need to recognize and engage the strengths of theirfollowers. They need to determine that followers are good at doing andhelp them to do it.2.Often the strengths of followers are not evident to leaders or even to thefollowers themselves.3.Through completing a project or assignments, a person can be surprisedto learn that they have a strength in a certain area such as creativity.4.It is important to find opportunities outside followers’ normal realm ofduties or activities that will allow their strengths to emerge.5.Knowing followers’ unique strengths allows leaders to make workassignments that maximize each individual’s contribution to thecollective goals of the group.D.Fostering a positive strengths based environment1.A final way to practice strengths-based leadership is to create andpromote a positive work environment in which people’s strengths playan integral role.2.Organizations that create positive work environments have a positivephysiological impact on employees which in turn impacts performance.

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Northouse,Introduction to Leadership: Concepts and Practice, 4eSAGE Publishing, 20183.Leaders who want to create a positive work environment should attendto four areas: climate, relationships, communication, and meaning.4.To create a positive climate,leaders should foster among theiremployees 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, makepositive than negative statements, and be less negatively evaluative ofothers.7.Leaders can foster positive meaning in their organizations byemphasizing the connection between employees’ values and the longterm 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 computergenius.B.Notable strengths included creativity, team building, strategic vision, andinfluencing.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’tperfect; he could be confrontational and this quality eventuallyresulted in him being booted out of his own company.F.Moved on to create NeXt Computers and eventually acquired Pixar studios, acompany 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 ofhis company to laptop and desktop computers for the professional and homeconsumer.H.Over the next 14 years, he dreamt up the iPod, the iPad, and the iPhone, all verysuccessful products.I.Apple produced products that consumers hadn’t thought of or knew theyneeded.J.In the end, Jobs revolutionized seven industries.K.“Think different” was as much a statement of Jobs’ own strengths as a leader asit was a mission statement for Apple.IV.Case Study

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