LEADERSHIP AND MANAGEMENT IN THE 21ST CENTURY This page intentionally left blank LEADERSHIP AND MANAGEMENT IN THE 21ST CENTURY BUSINESS CHALLENGES OF THE FUTURE Edited by CARY L. COOPER 1 3 Great Clarendon Street, Oxford OX2 6DP Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide in Oxford New York Auckland Bangkok Buenos Aires Cape Town Chennai Dar es Salaam Delhi Hong Kong Istanbul Karachi Kolkata Kuala Lumpur Madrid Melbourne Mexico City Mumbai Nairobi Sa˜o Paulo Shanghai Taipei Tokyo Toronto Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries Published in the United States by Oxford University Press Inc., New York ß Cary L. Cooper 2005 The moral rights of the author have been asserted Database right Oxford University Press (maker) First published 2005 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, or under terms agreed with the appropriate reprographics rights organization. Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this book in any other binding or cover and you must impose this same condition on any acquirer British Library Cataloguing in Publication Data Data available Library of Congress Cataloging in Publication Data Data available ISBN 0–19–926336–1 13579108642 Typeset by Kolam Information Services Pvt. Ltd, Pondicherry, India Printed in Great Britain on acid-free paper by Biddles Ltd., King’s Lynn, Norfolk Contents List of Figures viii List of Tables ix Contributors x Introduction Cary L. Cooper 1 PART I CHALLENGES OF THE BUSINESS ENVIRONMENT 19 1. Four Great Conflicts of the Twenty-First Century William H. Starbuck 21 2. Discretionary Leadership: From Control/ Co-ordination to Value Co-Creation Through Polylogue Nada Kakabadse and Andrew Kakabadse 57 3. Managers’ Lives, Work, and Careers in the Twenty-First Century Prabhu Guptara 107 4. Late Twentieth-Century Management, the Business School, and Social Capital Ken Starkey and Sue Tempest 139 vi Contents PART II THE ACADEMICS’ VIEW 161 5. A Next Challenge in Organizational Leadership Chris Argyris 163 6. Leadership in a Non-Linear World Fred E. Fiedler and Joseph E. Garcia 185 7. Leadership in the Private Sector: Yesterday Versus Tomorrow Gary P. Latham and Cynthia D. McCauley 204 8. Twenty-First Century Leadership—The God of Small Things; or Putting the ‘Ship’ Back into ‘Leadership’ Keith Grint 229 9. An Agenda for Understanding Individual Leadership in Corporate Leadership Systems Anne Sigismund Huff and Kathrin Moeslein 248 PART III THE PRACTITIONERS’ VIEW 271 10. Leading Human Capital and the Global Economy Hamish McRae 273 11. The Twenty-First Century Manager Book: Working on (and on and on . ) Sir Howard Davies 278 12. Managing Performance through People—the Challenge for Tomorrow’s Organization Geoff Armstrong 285 13. Managing for Creativity Sir Michael Bichard 299 Contents vii 14. Herding Cats or Luxuriating in Talent? Leadership and Management of Universities David Rhind 305 15. Management Education and Leadership Sue Cox and Steve Fox 334 16. What will Tomorrow’s Organization/Company look like over the Next Couple of Decades? Val Gooding 344 Index 355 List of Figures 2.1. Role Discretion 77 2.2. Discretionary Role Analysis 79 2.3. Open Information Interactions 90 2.4. Polylogue Pathway: Shifting Mindsets 91 2.5. Discretionary Leadership Communication for Platform Building 92 2.6. The Polylogue Scales 95 9.1. The Generic Leadership System 257 14.1. Increase and Projected Increases in the Number of Overseas Students, Broken down by the Major Educational Suppliers 308 14.2a. The Entirety of the ‘Geographical Framework’ of Britain in the 1960s 311 14.2b. Equivalent Information in Compact Disk Format 312 14.3. Graph of 170 British HEIs Ranked by Size of Total Income 315 14.4. Average Academic and Academic-Related Pay and Average Earnings 1981–2001. 318 List of Tables 2.1. Models of Capital 75 2.2. Migration of Leadership Models 81 2.3. Communication Models of Leadership 89 6.1. Medians and Range of Correlations between Leaders’ Intelligence and Experience Measures and Performance 186 6.2. Relationship between Leader Intelligence, Experience, and Stress on Performance 188 6.3. Relationship between Leader Personality and the Leadership Situation on Performance 195 9.1. Evolving Models of Leadership 251 14.1. The Qualities and Characteristics of a Successful Leader in the HE Sector 332 Contributors CARY L. COOPER, CBE Editor, Professor of Organizational Psychology and Health, Lancaster University Management School, UK and Pro Vice Chancellor, Lancaster University, UK CHRIS ARGYRIS Professor of Educational and Organizational Behavior, Harvard Business School, USA GEOFF ARMSTRONG Director General, Chartered Institute of Personnel and Development, UK SIR MICHAEL BICHARD Director, The London Institute, UK SUE COX Dean, Lancaster University Management School, UK SIR HOWARD DAVIES Formerly CEO, The Financial Services Authority, Director of LSE, UK FRED E. FIEDLER Professor Emeritus of Psychology and Manage- ment and Organization, University of Washington, USA STEVE FOX Director of Research, Centre for Excellence in Lead- ership, Lancaster University Management School, UK JOSEPH E. GARCIA Director, Center for Excellence in Manage- ment Education, Western Washington University, USA VAL GOODING, CBE CEO, BUPA, UK KEITH GRINT Professor, Lancaster University Management School, UK Contributors xi PRABHU GUPTARA Executive Director, Wolfsberg (a subsidiary of UBS), Evmatingen, Switzerland ANNE SIGISMUND HUFF Formerly Director, Advanced Manage- ment Institute, UK NADA KAKABADSE Professor of Management and Business Re- search, University College Northampton, UK ANDREW KAKABADSE Deputy Director, Cranfield School of Management, UK GARY P. LATHAM Secretary of State Professor of Organizational Behaviour, University of Toronto, Canada CYNTHIA D. MCCAULEY Center for Creative Leadership, Univer- sity of Toronto HAMISH MCRAE Associate Editor, The Independent,UK KATHRIN MOESLEIN Research Associate, Advanced Manage- ment Institute, UK DAVID RHIND, CBE Vice Chancellor, City University London, UK CHRISTOPHER RODRIGUES CEO, Bradford & Bingley plc, UK WILLIAM H. STARBUCK The Stern School, New York University, USA KEN STARKEY Professor of Management and Organizational Learning, Nottingham University Business School, UK SUE TEMPEST Nottingham University Business School, UK This page intentionally left blank Introduction Cary L. Cooper The Changing Nature of Work The 1980s was described as the decade of the ‘enterprise culture’, with people working longer and harder to achieve individual success and material rewards. Globalization, privatization, pro- cess re-engineering, mergers and acquisitions, strategic alliances, joint ventures, and the like, all combine to transform workplaces into hot-house, free-market environments (Cooper, 1999). By the end of the 1980s and into the early 1990s, a major restructuring of work, as we have never known it since the industrial revolution, was beginning to take place. The early years of the decade were dominated by the effects of the reces- sion and efforts to get out of it. Organizations throughout the Western world, and even further afield, dramatically ‘down- sized’, ‘delayered’, ‘flattened’, or ‘rightsized’. Whatever eu- phemism you care to use, the hard reality experienced by many was job loss and wrenching change. Now, many organiza- tions are smaller, with fewer people doing more and feeling much less secure. New technology, rather than being our 2 Cary Cooper saviour, has added the burden of information overload, as well as accelerating the pace of work at a greater speed of response (e.g. e-mails). And, at the same time, as more and more com- panies adopt a global perspective, organizations and the individ- uals they employ are finding that success in the global arena requires fundamental changes in organizational structures as well as individual competencies. As Burke and Cooper (2003) suggest in their book Lending in Turbulent Times some of the dramatic changes affecting work and organizations include increased global competition, the impact of information technology, the re-engineering of business processes, smaller companies that employ fewer people, the shift from making a product to providing a service, and the increasing disappearance of the job as a fixed collection of tasks. These forces have produced wrenching changes in all industri- alized economies. Just as organizations are redesigning to be more flexible and adaptive, individuals are expected to be open to continual change and life-long learning. Workers will be expected to diag- nose their abilities, know where to get appropriate training in deficient skills, know how to network, be able to market them- selves to organizations professionally, and tolerate ambiguity and insecurity. As more organizations experiment with ‘outsourcing’, ‘market testing’, ‘interim management’, and the like, many more of us will be selling our services to organizations on a freelance or short-term contract basis. We are creating a corporate culture of blue-collar, white-collar, managerial, and professional