Leadership Is the Process of Influencing People to Act in a Particular Way. in an Organization

Module 6 Leadership

Leadership is the process of influencing people to act in a particular way. In an organization, effective leadership encourages people to do things consistent with the company’s mission and goals. Leaders do not “force” people to do what they want, nor do they just allow people to do whatever they please. Instead, leaders use their skills, traits, and abilities to change people’s attitudes, beliefs and behaviors.

People who study organizations have long been fascinated with the question of what makes a good leader. Think about your own experience with bosses, coaches, teachers, or group leaders. Have some been more effective than others? Why do you think some people are better leaders than other people are?

There are a number of theories that try to explain differences in the quality of leadership. Each of them contributes something unique to our understanding of how and why some people are able to lead better than others. By looking at Southwest Airline’s leaders, we can better understand the components of some of these theories of leadership.

SOUTHWEST’S LEADERSHIP STYLE

Generally, the style of leadership at Southwest is This kind of leadership is also known as a collaborative and participative. The company “Democratic Style.” expects managers to be genuinely interested in their Leaders in this style subordinates. Southwest's’philosophy dictates that involve employees in managers listen to their people and use subordinates’ decision making, input and insight to solve problems and achieve work delegate authority, encourage employee goals; no manager is allowed to be a dictator. participation in deciding Leadership training programs emphasize the “soft work methods and skills” of communication, listening, and motivation as goals, and use keys to a successful management career with the feedback to coach airline. employees for better performance.1 1 Robbins, S. P., & DeCenzo, D. A. (1998). Fundamentals of management (2nd ed.). Upper Saddle River, NJ: Prentice Hall. To be successful, Southwest’s’ leaders rely heavily on though it sometimes the fact that workers share both their goals for the may be more difficult in the short term, for company and their work values. As we’ve already people to develop noted, Southwest is careful to hire people that can through a situation by develop a real concern for their internal and external doing it on their own customers. Leaders at Southwest take advantage of with him coaching from 3 this. Because they know employees will act for the the sideline.” good of the company, they can delegate a great deal of decision-making authority. Leaders at Southwest are taught to express belief in their subordinate’s talents and capabilities. As you might expect, they Leadership Classes: are also consistently reminded not to take themselves Most of Southwest’s too seriously. internal training is conducted at their LEADERSHIP TRAINING AT SOUTHWEST “University for People” located at Dallas’ Love Field. Trainees can Southwest holds leadership classes for walk directly from the management-level employees about every two years. Southwest Airline gate Here, employees learn the difference between merely to their classroom, then being a manager who directs the work of others and fly home again that being a leader who encourages and promotes others. evening. (PHOTO OF CORP HQ @ CEO Herb Kelleher describes the message of these http://www.iflyswa.com/i seminars as follows: “We tell these employees to stop nfo/photos.html) managing; when they manage themselves, they are ready to start leading. We tell them to stop administering because we want them to be leaders. And that’s what we’re looking for because leaders are so scarce. The focus is entirely upon how to get different people with different backgrounds to work together harmoniously for a goal. What makes companies ultimately perform well is when everybody is leading and there’s a little less management and administration – bureaucracy, in other words.”2 that they have what CHOOSING TO LEAD it takes to lead. But what identifies a Southwest recognizes that many people can advance potential leader? to managerial positions where they direct the work of other people. However, only a few people have the WHAT MAKES A necessary talents and skills to really lead others. GOOD LEADER? Consequently, the company is constantly on the lookout for people that demonstrate Many researchers SIDEBAR: Bob Rapp, VP of Systems at Southwest, is described believe that some by his subordinates as a “visionary.” Ken Rundas, Director of Solutions and Systems, said, “He’ll leave every opportunity, even 3 Malloy, A. (1996, June). On the job: 2 Kelleher, H. (1998, May/June). Customer Service: It Starts at Southwest Airlines. Home. The Secured Lender, v54#3, pp. 68-73. Computerworld, p. 47+. people’s personal characteristics make them better and Wesleyan leaders than others. This belief is known as the University in Connecticut. He also “Great Person Theory.” People who subscribe to this made Law Review at theory believe that leaders possess special traits that New York University set them apart from other people. The theory was Law School.5 most popular early in the twentieth century, and prompted a significant amount of research. We now know that successful leaders are, as you would expect, intelligent people with drive. They have energy, are ambitious, and show initiative.4

Another personal characteristics more prominent among recognized leaders than other people is “leadership motivation,” or the desire to take a leadership role. This is straightforward: people who want to be in leadership positions tend to do a better job than those who do not. Recognizing this, Southwest invites people to attend their leadership training program, but does not assign or “force” anyone into a supervisory or management role. Also, Southwest’s pay structure favors seniority, rather than position in the organization. Consequently, people do not feel that they have to take a promotion simply to get ahead financially. This policy insures that people who are leaders at Southwest WANT to be leaders...an important element of their success.

Self-confidence is another important trait that most successful leaders possess in abundance. Their HERB KELLEHER: ability to believe in themselves and their ideas helps A SPECIAL followers to believe in them as well. Some leaders LEADER possess a special kind of self-confidence that inspires subordinates to see them as hero-like figures. We The theory of call these individuals charismatic leaders. Herb charismatic Kelleher, Southwest’s CEO, is perhaps the most leadership is based widely acknowledged charismatic leader in American on the premise that business. followers often attribute heroic or extraordinary abilities to particular

SIDEBAR: Respected leaders usually have a long history of hard 5 Labich, K. (1994, May work and success. Southwest’s CEO Kelleher was a successful 2). Is Herb Kelleher athlete and study body president at Haddon Heights High School America’s best CEO? 4 Kirkpatrick, S. A., & Locke, E. A. (1991). Leadership: Do traits Fortune, v129#9, p. matter? Academy of Management Executive, v5, pp. 48-60. 44+. individuals.6 Herb Kelleher’s employees see him as a hero, and his ability to inspire their devotion is nothing short of amazing. To celebrate a recent “bosses day,” Southwest employees donated $60,000 to buy a full- page ad in USA Today to thank and commemorate Kelleher.7 At the many gatherings, both planned and impromptu, that take place on Southwest’s corporate headquarter’s patio, Kelleher can always be found surrounded by a group of admiring people who find joy in simply listening to him speak.

KELLEHER IS A CHARISMATIC LEADER

Charismatic leaders are known to inspire their employees to do great things. Significant research tells us that charismatic leaders tend to have high performing, well-satisfied subordinates.8 People also tend to like charismatic leaders personally, and so are motivated to put forth extra effort for them.9 These effects have certainly been seen at Southwest Airlines. Kelleher’s leadership is one of the most important components of Southwest’s success.

Researchers have identified a number of behavioral characteristics that help us identify a charismatic leader. We’ll examine some of these to explain why

SIDEBAR: Southwest’s Chief Operating Officer, Jim Wimberly has a life-sized cardboard cutout of Herb Kelleher in his Herb Kelleher is office...sort of. Actually, Kelleher’s head has been transposed onto a promotional figure for Wild Turkey, Kelleher’s favorite widely identified as 10 bourbon. charismatic.

6 Conger, J. A., & Kanungo, R. N. (1988). Charismatic 1. Vision. Leadership. San Francisco: Jossey-Bass. Charismatic leaders 7 Rigler, G. C. (1995, March). Case study: Southwest airlines. have a compelling Across the Board, v32#3, p. 56+. goal. In some way, 8Agle, B. R., & Sonnenfeld, J. A. (1994, August 14-17). Charismatic chief executive officers: Are they more effective? An empirical test of charismatic leadership theory. In D. P. Moore 10 The list of behaviors (Ed.), Academy of Management Best Papers Proceedings 1994, is taken from Conger, J. pp. 2-6. A., & Kanungo, R. N. 9 House, R. J. (1977). A 1976 theory of charismatic leadership. (1988). Charismatic In J. G. Hunt & L. L. Larson (Eds.), Leadership: The cutting edge Leadership. San (pp. 189-207). Carbondale, IL: Southern Illinois University Francisco: Jossey- Press. Bass. they want to make the future better, and they are fully committed to achieving what they see as possible. Kelleher’s vision is simple: he wants to make air travel accessible to everyone. As we noted in Module 2, his idea of a “short hop” airline revolutionized the industry.

2. Ability to articulate the vision. Not only do charismatic leaders have a vision of how the future might be better, they also come up with ways to communicate that vision to others. They allow people SIDEBAR: Kelleher not to understand their dreams, and others come to first only tell his employees about his vision for understand and then share their vision. Charismatic excellent customer leaders aren’t afraid to talk about their ideas. They service...he shows they communicate them effectively...and often. them. Like all top managers at Southwest, When you log onto the Southwest Airlines web page, Herb regularly spends a day performing the job you are invited to click on a picture of Kelleher to of a typical Southwest learn more about him. Rather than personal employee such as a information about himself, Kelleher’s web page is a baggage handler, statement of his vision for Southwest Airlines. reservation agent, or Employees take his message about customer service flight attendant. PHOTO OF HERB to heart: it is not unusual for a Southwest worker to PASSING OUT rationalize going out of their way to help a customer PEANUTS AS FLIGHT because “It’s what Herb would do.” ATTENDANT AVAILABLE ONLINE: 3. Self-confidence. Charismatic leaders trust their http://www.iflyswa.com/i nfo/photos.html; title abilities. The have confidence in their judgment and “Our Chairman, decisions, and this helps followers believe in them as President, CEO & Flight well. Kelleher’s self-confidence is so high that he Attendant.” often pokes fun at himself for it. For example, when asked if he ever planned on retiring, Kelleher replied “No, because I’m immortal.”11 Through the humor, Southwest employees got the message. There is no doubt that Herb believes in himself.

4. Unusual, extraordinary behavior. Charismatic leaders behave in unusual 11 “How Herb keeps Southwest hopping” (1999, April). Money, ways. They do v28#6, pp. 61-62+. things that are unexpected, abnormal, and quirky. These behaviors see him dressed as not only get employees’ attention, but they make the Ethel Merman, ignore him; we’re trying to cure leader...and their vision...more memorable. Herb him of that.” TO SEE Kelleher personifies the silly, often goofy antics that THIS AND OTHER are commonplace at Southwest Airlines. He appears SOUTHWEST ADS: in costume for company events, rewards employees Web address is for telling good jokes, and makes up songs while http://www.iflyswa.com/ presenting service awards. Impromptu celebrations promotions/netads.html are commonplace at Southwest. Kelleher defends the cost, in both money and time, of this practice by noting that “What we do communicates itself to the outside world in better service and warmer hospitality.”12 He believes that the parties and get- togethers keep his employees happy, and when employees are happy, they treat customers well. SIDEBAR: Luckily, by all accounts Kelleher’s THE DOWNSIDE OF CHARISMA charisma is based on a positive and honest mentality. As one However, despite the positive outcomes associated employee put it: with charismatic leaders, there can be a downside for “Anyone who has ever companies with such a visible and well-known CEO met Herb Kelleher will as Kelleher. One of the biggest dangers of tell you that whether charismatic leadership is embedded in a central he’s talking to a U.S. Supreme Court justice, characteristic of charismatic leaders: their self- a member of his board confidence. Sometimes people who are highly self- of directors, or a hotel confident have difficulty listening to others’ ideas, valet, he displays the which makes them less effective managers in the long same level of genuine run. At Southwest, any tendencies Kelleher might interest and intensity. Herb doesn’t have a have in this area are well overcome by the open and patronizing bone in his participative management style he has developed. In body, and this is the fact, any employee can write to Kelleher with an idea, way he runs the problem, or suggestion at any time...and all letters are airline.”13 personally answered. (Historians Additionally, people with the ability to persuasively generally agree that communicate a vision and inspire others to share that Adolf Hitler was a vision have great power...and the temptation to use charismatic leader.) that power in negative ways might be compelling.

SIDEBAR: Kelleher’s antics are so strongly associated with 13 Southwest’s corporate image that Freiberg, J. & they are even used in recruiting advertisements. One ad Freiberg, K. (1996, pictured him dressed as Elvis, with the slogan, “Work in a place September). Is this where Elvis has been spotted.” The ad ends by saying, “If you company completely nuts? Executive 12 Gruner, S. (1998, May). Have fun, make money. Inc., v20#6, Excellence, v13#9, p. p. 123+. 20+. KELLEHER AS TRANSFORMATIONAL LEADER

Some charismatic leaders are able to avoid these downfalls, and Kelleher appears to be one. These leaders have charisma, but also something more: the ability to transform and empower the people working for them. We call these individuals transformational leaders, and Kelleher possess some of the special qualities of a transformational leader.

1. Intellectual Stimulation. First, transformational leaders care first and foremost about their people. They provide them with intellectual stimulation, motivating them to recognize and solve problems on their own. As we noted in Module 5, Southwest employees are fully empowered to solve almost every problem they encounter. Kelleher’s formal policy is, “No employee will ever be punished for using good judgment and good old common sense when trying to accommodate a customer – no matter what our rules are.”14 SIDEBAR: What asked how he has stayed motivated for 25 years, 2. Individualized Consideration. Transformational Kelleher says “The leaders make their employees feel as if they are people. They have the important as individual people, not just nameless hearts of lions, the workers. In this arena, Kelleher is a master. His strength of elephants ability to remember the names of, and personal and the determination of water buffaloes...We details about, literally thousands of Southwest’s’ receive thousands of employees is legendary. He never hesitates to credit letters a year from his staff for the success of both himself and the customers commending airline. Under his leadership, employees are employees for driving encouraged to display personal photographs in the two hours to drop off luggage, or for buying office and share their lives with co-workers. lunch for someone who was stranded at the Transformational leaders enjoy similar successes to airport.”15 charismatic leaders. However, because they and positive. If a empower their employees and self-based action, their leader is only impression on a company is more lasting charismatic, the focus is on the leader. With transformational

15 McGoon, C. (1999, April/May). Aim low, lefty, they’re riding shetlands! 14 Rosenspan, A. (1998, December). Airline soars to new Communication World, heights. Direct Marketing, v61#8, pp. 18-21. v16#5, pp. 30-32. leaders, the focus is where it belongs: on the employees and the company they form. There is little doubt that Herb Kelleher is truly a people-focused transformational leader.

SO...CAN HERB DO ANYTHING WRONG?

Despite the advantages that Kelleher brings to Southwest, there are potential difficulties that should be acknowledged. Like any high-visibility CEO, Kelleher may draw attention to himself at the expense of his airline. In the short run, his antics provide Southwest with a great deal of free publicity. In fact, when Herb arm-wrestled the head of another airline for the right to use the advertising slogan “Just Plane Smart,” the event was so well publicized that Kelleher and his opponent received personalized letters from then President George Bush. These events make people familiar with Kelleher and his company. But in the long run, the public needs to be more familiar with the name “Southwest” than “Kelleher” when they look for an airline. (Kelleher lost the contest, by the way.) SIDEBAR: Interestingly, Companies with a highly visible charismatic leader Kelleher has long been also face a difficult question: what will they do when unwilling to name a the leader leaves? Despite his claim to immortality, successor to his CEO Kelleher is thought to be planning retirement within 5- spot. Though he has been repeatedly asked 7 years, and his health is rumored to be failing. His to do so, Herb will not departure will be a challenge for Southwest. As Chief name anyone, either Financial Officer Gary Kelly reflected, “After he inside or outside retired, you can see someone wanting to try Southwest, that he something different and the cry going up, ‘Herb would believes should take over his job when he never do it that way!’ That will be interesting. We’re retires. certainly very powerful as a company, but we’re not invincible.”16 It will be interesting to see how Southwest replaces their leader. Kelleher is an important part of Southwest’s culture, and some observers note that the company may actually have difficulty surviving after he leaves.

16 Fisher, L. (1998, July). Success in a nutshell. Accountancy, v122#1259, pp. 28-29+