Leadership Style
Leadership
Jay Mallin/ZUMA/Newscom
Learning Objectives
After studying this chapter, you should be able to:
1. Define leadership and contrast leadership and management.
2. Summarize the conclusions of trait theories of leadership.
3. Identify the central tenets and main limitations of behavioral theories.
4. Assess contingency theories of leadership by their level of support.
5. Compare and contrast charismatic and transformational leadership.
6. Define authentic leadership and show why effective leaders exemplify ethics and trust.
7. Demonstrate the role mentoring plays in our understanding of leadership.
8. Address challenges to the effectiveness of leadership.
9. Assess whether charismatic and transformational leadership generalize across cultures.
I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep.
Talleyrand
Private Equity’s Poster Boy
If it’s true that “Nice guys finish last,” there is no better proof than Stephen Schwarzman, chief executive of the Blackstone Group, who says his mission in life is to “inflict pain” and “kill off” his rivals. “I want war,” he told the Wall Street Journal, “not a series of skirmishes.” And win in business he has. In 20 years, he has made Blackstone one of the most profitable—and most feared—investment groups on Wall Street, with assets approaching $200 billion.
Though these are not easy times for any investment bank, Blackstone has largely avoided the pitfalls of subprime mortgages and mortgage-backed securities. Some of this strategy might be considered good fortune—Blackstone invests much more heavily in commercial than in residential real estate. However, some credit is due to Schwarzman’s foresight. As he notes, “We were cautious in the so-called golden age. We were the least aggressive of all the big firms in the first half of 2007. We were very concerned about the high prices of deals and the vast amount of liquidity fuelling the boom. . . . Things always
Jay Mallin/ZUMA/Newscom
Learning Objectives
After studying this chapter, you should be able to:
1. Define leadership and contrast leadership and management.
2. Summarize the conclusions of trait theories of leadership.
3. Identify the central tenets and main limitations of behavioral theories.
4. Assess contingency theories of leadership by their level of support.
5. Compare and contrast charismatic and transformational leadership.
6. Define authentic leadership and show why effective leaders exemplify ethics and trust.
7. Demonstrate the role mentoring plays in our understanding of leadership.
8. Address challenges to the effectiveness of leadership.
9. Assess whether charismatic and transformational leadership generalize across cultures.
I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep.
Talleyrand
Private Equity’s Poster Boy
If it’s true that “Nice guys finish last,” there is no better proof than Stephen Schwarzman, chief executive of the Blackstone Group, who says his mission in life is to “inflict pain” and “kill off” his rivals. “I want war,” he told the Wall Street Journal, “not a series of skirmishes.” And win in business he has. In 20 years, he has made Blackstone one of the most profitable—and most feared—investment groups on Wall Street, with assets approaching $200 billion.
Though these are not easy times for any investment bank, Blackstone has largely avoided the pitfalls of subprime mortgages and mortgage-backed securities. Some of this strategy might be considered good fortune—Blackstone invests much more heavily in commercial than in residential real estate. However, some credit is due to Schwarzman’s foresight. As he notes, “We were cautious in the so-called golden age. We were the least aggressive of all the big firms in the first half of 2007. We were very concerned about the high prices of deals and the vast amount of liquidity fuelling the boom. . . . Things always