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111-413: Customized programs, which are tailored for and offered to executives of a single company, represent the fastest-growing segment of the market. Customized programs help organizations increase management capability by combining the science of business and performance management with specialized programs that enable executives to develop new knowledge, skills, and attitudes. Research shows that a firm which has

222-457: A Divine plan . Compare this with servant leadership . For a more general view on leadership in politics , compare the concept of the statesperson . Anecdotal and incidental observations aside, the serious discipline of theorising leadership began in the 19th century. The search for the characteristics or traits of leaders has continued for centuries. Philosophical writings from Plato 's Republic to Plutarch's Lives have explored

333-436: A general glut in the job market. University enrollment for computer-related degrees dropped noticeably. Aeron chairs , which retailed for $ 1,100 each, were liquidated en masse. As growth in the technology sector stabilized, companies consolidated; some, such as Amazon.com , eBay , Nvidia and Google gained market share and came to dominate their respective fields. The most valuable public companies are now generally in

444-409: A business setting. Assume praise is a positive reinforcer for a particular employee. This employee does not show up to work on time every day. The manager decides to praise the employee for showing up on time every day the employee actually shows up to work on time. As a result, the employee comes to work on time more often because the employee likes to be praised. In this example, praise (the stimulus)

555-692: A clearly articulated and understood business strategy — and the capability to carry it out — will have a higher market-to-book value than a firm that does not. Open enrollment programs are also available as part of university-based executive education offerings, which occur throughout the year on selected dates, and are available to participants from different companies and organizations. Shorter executive education programs tend to focus on specific roles or industries, or on improving specific leadership skills , such as persuasion, negotiation, team building or communication. Some executive education providers offer more comprehensive management training options, such as

666-460: A consortium of nearly 100 universities with executive education programs around the globe. It sponsors three annual conferences that allow members to share best practices, conducts research into topics of concern and provides benchmarking data for members. Executive education further developed in the 1980s and 1990s as the increasing pace and scope of global business demanded higher levels of education among employees. The dot-com boom further changed

777-613: A doubling of revenues to $ 800M. Shortly after the survey, Executive education growth was dramatically impacted by travel restrictions and the economic impact of the September 11 attacks . In 2022, 2023 & 2024, HEC Paris executive education is ranked 1st worldwide by the Financial Times . The participation of many of the most prestigious universities around the world has enhanced the value of university-based executive education. Ongoing business challenges and opportunities –

888-627: A drastically different view of the driving forces behind leadership. In reviewing the extant literature, Stogdill and Mann found that while some traits were common across a number of studies, the overall evidence suggested that people who are leaders in one situation may not necessarily be leaders in other situations. Subsequently, leadership was no longer characterized as an enduring individual trait—situational approaches (see alternative leadership theories below) posited that individuals can be effective in certain situations, but not others. The focus then shifted away from traits of leaders to an investigation of

999-587: A dynamic economy, developing technologies, new business models and globalization – has made the emphasis on learning new concepts throughout ones career a necessity. Despite the growing popularity of university-based executive education around the world, the global economic recession has slowed the industry's growth during the past few years. According to a 2011 study conducted by the Manchester Business School in partnership with Dubai International Academic City and Dubai Knowledge Village ,

1110-419: A fair exchange whereby the leader provides certain benefits such as task guidance, advice, support, and/or significant rewards and the followers reciprocate by giving the leader respect, cooperation, commitment to the task and good performance. However, LMX recognizes that leaders and individual followers will vary in the type of exchange that develops between them. LMX theorizes that the type of exchanges between

1221-697: A great deal of overcapacity as many Internet business clients went bust. That, plus ongoing investment in local cell infrastructure kept connectivity charges low, and helped to make high-speed Internet connectivity more affordable. During this time, a handful of companies found success developing business models that helped make the World Wide Web a more compelling experience. These include airline booking sites, Google 's search engine and its profitable approach to keyword-based advertising, as well as eBay 's auction site and Amazon.com 's online department store. The low price of reaching millions worldwide, and

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1332-403: A group vision. The transactional leader is given power to perform certain tasks and reward or punish for the team's performance. It gives the opportunity to the manager to lead the group and the group agrees to follow his lead to accomplish a predetermined goal in exchange for something else. Power is given to the leader to evaluate, correct, and train subordinates when productivity is not up to

1443-658: A leader performs when promoting organization's effectiveness. These functions include environmental monitoring, organizing subordinate activities, teaching and coaching subordinates, motivating others, and intervening actively in the group's work. Various leadership behaviors facilitate these functions. In initial work identifying leader behavior, Fleishman observed that subordinates perceived their supervisors' behavior in terms of two broad categories referred to as consideration and initiating structure . Consideration includes behavior involved in fostering effective relationships. Examples of such behavior would include showing concern for

1554-421: A much-hyped company that had backing from Amazon.com, went out of business only nine months after completing its IPO. By that time, most Internet stocks had declined in value by 75% from their highs, wiping out $ 1.755 trillion in value. In January 2001, just three dot-com companies bought advertising spots during Super Bowl XXXV . The September 11 attacks accelerated the stock-market drop. Investor confidence

1665-517: A new element – the need for leaders to develop their leadership presence, attitude toward others, and behavioral flexibility by practicing psychological mastery. It also offers a foundation for leaders wanting to apply the philosophies of servant leadership and authentic leadership . Integrated psychological theory began to attract attention after the publication of James Scouller's Three Levels of Leadership model (2011). Scouller argued that older theories offered only limited assistance in developing

1776-404: A new model of the human psyche and outlined the principles and techniques of self-mastery, which include the practice of mindfulness meditation . Bernard Bass and colleagues developed the idea of two different types of leadership: transactional which involves exchange of labor for rewards, and transformational which is based on concern for employees, intellectual stimulation, and providing

1887-552: A new paradigm with which to characterize elected politicians and job-granting employers—thus the development and theorizing of the idea of "leadership". The functional relationship between leaders and followers may remain, but acceptable (perhaps euphemistic) terminology has changed. Starting in the 19th century, the elaboration of anarchist thought called the whole concept of leadership into question. One response to this denial of élitism came with Leninism — Lenin (1870–1924) demanded an élite group of disciplined cadres to act as

1998-421: A normative decision model in which leadership styles were connected to situational variables, defining which approach was more suitable to which situation. This approach supported the idea that a manager could rely on different group decision making approaches depending on the attributes of each situation. This model was later referred to as situational contingency theory. The path-goal theory of leadership

2109-724: A person's ability to lead effectively. He pointed out, for example, that: Scouller's model aims to summarize what leaders have to do, not only to bring leadership to their group or organization, but also to develop themselves technically and psychologically as leaders. The three levels in his model are public, private, and personal leadership: Scouller argued that self-mastery is the key to growing one's leadership presence, building trusting relationships with followers, and dissolving one's limiting beliefs and habits. This enables behavioral flexibility as circumstances change, while staying connected to one's core values (that is, while remaining authentic). To support leaders' development, he introduced

2220-910: A price–earnings ratio of 200, dwarfing the peak price–earnings ratio of 80 for the Japanese Nikkei 225 during the Japanese asset price bubble of 1991. In 1999, shares of Qualcomm rose in value by 2,619%, 12 other large-cap stocks each rose over 1,000% in value, and seven additional large-cap stocks each rose over 900% in value. Even though the Nasdaq Composite rose 85.6% and the S&;P 500 rose 19.5% in 1999, more stocks fell in value than rose in value as investors sold stocks in slower growing companies to invest in Internet stocks. An unprecedented amount of personal investing occurred during

2331-478: A profit. But despite this, the Internet continued to grow, driven by commerce, ever greater amounts of online information, knowledge, social networking and access by mobile devices. The 1993 release of Mosaic and subsequent web browsers during the following years gave computer users access to the World Wide Web , popularizing use of the Internet. Internet use increased as a result of the reduction of

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2442-493: A revenue restatement due to aggressive accounting practices. Its stock price, which had risen from $ 7 per share to as high as $ 333 per share in a year, fell $ 140 per share, or 62%, in a day. The next day, the Federal Reserve raised interest rates, leading to an inverted yield curve , although stocks rallied temporarily. Tangentially to all of speculation, Judge Thomas Penfield Jackson issued his conclusions of law in

2553-554: A standalone facility dedicated to executive education programs. This spurred the development of such facilities at schools nationwide and the subsequent expansion of short open enrollment programs. The industry's exclusive professional association, The International University Consortium for Executive Education, also came into existence during this period. UNICON began sponsoring a tradeshow in the 1970s for companies interested in learning about university-based executive education and an annual conference for members. UNICON has since grown into

2664-492: A study which investigated observable behaviors portrayed by effective leaders. They identified particular behaviors that were reflective of leadership effectiveness. They narrowed their findings to two dimensions. The first dimension, "initiating structure", described how a leader clearly and accurately communicates with the followers, defines goals, and determines how tasks are performed. These are considered "task oriented" behaviors. The second dimension, "consideration", indicates

2775-509: A subordinate or acting in a supportive manner towards others. Initiating structure involves the actions of the leader focused specifically on task accomplishment. This could include role clarification, setting performance standards, and holding subordinates accountable to those standards. The Integrated Psychological Theory of leadership attempts to integrate the strengths of the older theories (i.e. traits, behavioral/styles, situational and functional) while addressing their limitations, introducing

2886-475: A substitute for evaluating or comprehending adept governance abilities. Dot-com bubble The dot-com bubble (or dot-com boom ) was a stock market bubble that ballooned during the late-1990s and peaked on Friday, March 10, 2000. This period of market growth coincided with the widespread adoption of the World Wide Web and the Internet , resulting in a dispensation of available venture capital and

2997-461: A variety of metrics such as diversity, faculty, revenue and participants. Leadership skills Leadership , is defined as the ability of an individual, group, or organization to " lead ", influence, or guide other individuals, teams , or organizations . "Leadership" is a contested term. Specialist literature debates various viewpoints on the concept, sometimes contrasting Eastern and Western approaches to leadership, and also (within

3108-453: A variety of situations and tasks. Additionally, during the 1980s statistical advances allowed researchers to conduct meta-analyses , in which they could quantitatively analyze and summarize the findings from a wide array of studies. This advent allowed trait theorists to create a comprehensive picture of previous leadership research rather than rely on the qualitative reviews of the past. Equipped with new methods, leadership researchers revealed

3219-448: A widely read article that stated: "It's time, at last, to pay attention to the numbers". On Friday, April 14, 2000, the Nasdaq Composite index fell 9%, ending a week in which it fell 25%. Investors were forced to sell stocks ahead of Tax Day , the due date to pay taxes on gains realized in the previous year. By June 2000, dot-com companies were forced to reevaluate their spending on advertising campaigns. On November 9, 2000, Pets.com ,

3330-465: Is a positive reinforcer for this employee because the employee arrives at work on time (the behavior) more frequently after being praised for showing up to work on time. Positive reinforcement is a successful technique used by leaders to motivate and attain desired behaviors from subordinates. Organizations such as Frito-Lay, 3M, Goodrich, Michigan Bell, and Emery Air Freight have all used reinforcement to increase productivity. Empirical research covering

3441-511: Is imperative to consider employee emotional responses to organizational leaders. Emotional intelligence—the ability to understand and manage moods and emotions in the self and others—contributes to effective leadership within organizations. The neo-emergent leadership theory (from the Oxford Strategic Leadership Programme ) sees leadership as an impression formed through the communication of information by

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3552-541: Is made by Rakesh Khurana , among others. The genesis of executive education can be traced to Frederick Taylor and his 1911 treatise Principles of Scientific Management . This book described how the application of the scientific method to the management of workers could improve productivity. Taylor's ideas, also known as "Taylorism" would become the standard for businesses worldwide. On the heels of Taylorism came The Alfred P. Sloan School of Management, which in 1914, began offering Course XV, Engineering Administration, at

3663-563: Is sometimes associated with matriarchies ". Comparable to the Roman tradition, the views of Confucianism on 'right living' relate very much to the ideal of the (male) scholar-leader and his benevolent rule, buttressed by a tradition of filial piety. Leadership is a matter of intelligence, trustworthiness, humaneness, courage, and discipline... Reliance on intelligence alone results in rebelliousness. Exercise of humaneness alone results in weakness. Fixation on trust results in folly. Dependence on

3774-782: The Dulles Technology Corridor in Virginia, governments funded technology infrastructure and created favorable business and tax law to encourage companies to expand. The growth in capacity vastly outstripped the growth in demand. Spectrum auctions for 3G in the United Kingdom in April 2000, led by Chancellor of the Exchequer Gordon Brown , raised £22.5 billion. In Germany, in August 2000,

3885-466: The Fiedler contingency model , the path-goal model states that the four leadership behaviors are fluid, and that leaders can adopt any of the four depending on what the situation demands. The path-goal model can be classified both as a contingency theory , as it depends on the circumstances, and as a transactional leadership theory , as the theory emphasizes the reciprocity behavior between the leader and

3996-478: The Mandate of Heaven postulated the need for rulers to govern justly, and the right of subordinates to overthrow emperors who appeared to lack divine sanction. Pro- aristocracy thinkers have postulated that leadership depends on one's "blue blood" or genes . Monarchy takes an extreme view of the same idea, and may prop up its assertions against the claims of mere aristocrats by invoking divine sanction (see

4107-542: The Massachusetts Institute of Technology . At that time, the concept of providing business training in the academic environment was gaining popularity, thus MIT created a program “specially designed to train men to be competent managers of businesses that have much to do with engineering problems.” Harvard also began offering short five-week selections of standard MBA material in the late 1920s. In 1930, Course XV at MIT became an independent department and

4218-580: The University of Oxford ) that further developed such characteristics. International networks of such leaders could help to promote international understanding and help "render war impossible". This vision of leadership underlay the creation of the Rhodes Scholarships , which have helped to shape notions of leadership since their creation in 1903. In the late 1940s and early 1950s, a series of qualitative reviews prompted researchers to take

4329-598: The divine right of kings ). On the other hand, more democratically inclined theorists have pointed to examples of meritocratic leaders, such as the Napoleonic marshals profiting from careers open to talent . In the autocratic / paternalistic strain of thought, traditionalists recall the role of leadership of the Roman pater familias . Feminist thinking, on the other hand, may object to such models as patriarchal and posit against them "emotionally attuned, responsive, and consensual empathetic guidance, which

4440-400: The quaternary sector of the economy and confidence that the companies would turn future profits created an environment in which many investors were willing to overlook traditional metrics, such as the price–earnings ratio , and base confidence on technological advancements, leading to a stock market bubble . Between 1995 and 2000, the Nasdaq Composite stock market index rose 400%. It reached

4551-489: The vanguard of a socialist revolution, which was to bring into existence the dictatorship of the proletariat . Other historical views of leadership have addressed the seeming contrasts between secular and religious leadership. The doctrines of Caesaro-papism have recurred and had their detractors over several centuries. Christian thinking on leadership has often emphasized stewardship of divinely-provided resources—human and material—and their deployment in accordance with

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4662-541: The " digital divide " and advances in connectivity, uses of the Internet, and computer education. Between 1990 and 1997, the percentage of households in the United States owning computers increased from 15% to 35% as computer ownership progressed from a luxury to a necessity. This marked the shift to the Information Age , an economy based on information technology , and many new companies were founded. At

4773-471: The 19th century, the concept of leadership had less relevance than today—society expected and obtained traditional deference and obedience to lords, kings, master-craftsmen, and slave-masters. The Oxford English Dictionary traces the word "leadership" in English only as far back as 1821, when the term referred to the position or office of a designated leader. The abstract notion of "leadership" as embodying

4884-619: The Alfred P. Sloan Foundation and was formally named the MIT Sloan Fellowship Program for Executive Development at MIT. Executive Education in the United States developed a critical mass after World War II. The Servicemen's Readjustment Act of 1944 — commonly known as the GI Bill of Rights — allowed veterans to take advantage of education benefits. Many studied business in college, a privilege previously only enjoyed by

4995-427: The Federal Reserve , raised interest rates several times; these actions were believed by many to have caused the bursting of the dot-com bubble. According to Paul Krugman , however, "he didn't raise interest rates to curb the market's enthusiasm; he didn't even seek to impose margin requirements on stock market investors. Instead, [it is alleged] he waited until the bubble burst, as it did in 2000, then tried to clean up

5106-519: The Fiedler contingency model, the Vroom-Yetton decision model, and the path-goal theory. The Fiedler contingency model bases the leader's effectiveness on what Fred Fiedler called situational contingency . This results from the interaction of leadership style and situational favorability (later called situational control ). The theory defines two types of leader: those who tend to accomplish

5217-507: The Nasdaq fell 2.6%, but the S&P 500 rose 2.4% as investors shifted from strong performing technology stocks to poor performing established stocks. On March 20, 2000, Barron's featured a cover article titled "Burning Up; Warning: Internet companies are running out of cash—fast", which predicted the imminent bankruptcy of many Internet companies. This led many people to rethink their investments. That same day, MicroStrategy announced

5328-567: The United States were offering some form of executive education. The science of business also was developing at a rapid pace as faculty, such as Michael Porter (Harvard ) and C. K. Prahalad (University of Michigan), published academic papers that changed the way people thought and acted within companies. Prahalad is most notably remembered for developing the concepts of “core competencies” and “strategic intent”. These and other respected academic business thinkers — Don Hambrick, Ram Charan, David Ulrich, Michael Hammer, Gary Hamel and many others — are

5439-484: The Web to be a useful and profitable additional channel for content distribution, and an additional means to generate advertising revenue. The sites that survived and eventually prospered after the bubble burst had two things in common: a sound business plan, and a niche in the marketplace that was, if not unique, particularly well-defined and well-served. In the aftermath of the dot-com bubble, telecommunications companies had

5550-525: The West) North American versus European approaches. Some U.S. academic environments define leadership as "a process of social influence in which a person can enlist the aid and support of others in the accomplishment of a common and ethical task ". In other words, leadership is an influential power -relationship in which the power of one party (the "leader") promotes movement/change in others (the "followers"). Some have challenged

5661-454: The auctions raised £30 billion. A 3G spectrum auction in the United States in 1999 had to be re-run when the winners defaulted on their bids of $ 4 billion. The re-auction netted 10% of the original sales prices. When financing became hard to find as the bubble burst, the high debt ratios of these companies led to bankruptcy . Bond investors recovered just over 20% of their investments. However, several telecom executives sold stock before

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5772-511: The boom and stories of people quitting their jobs to trade on the financial market were common. The news media took advantage of the public's desire to invest in the stock market; an article in The Wall Street Journal suggested that investors "re-think" the "quaint idea" of profits, and CNBC reported on the stock market with the same level of suspense as many networks provided to the broadcasting of sports events . At

5883-535: The case of United States v. Microsoft Corp. (2001) and ruled that Microsoft was guilty of monopolization and tying in violation of the Sherman Antitrust Act . This led to a one-day 15% decline in the value of shares in Microsoft and a 350-point, or 8%, drop in the value of the Nasdaq. Many people saw the legal actions as bad for technology in general. That same day, Bloomberg News published

5994-523: The crash including Philip Anschutz , who reaped $ 1.9 billion, Joseph Nacchio , who reaped $ 248 million, and Gary Winnick , who sold $ 748 million worth of shares. Nearing the turn of the 2000s, spending on technology was volatile as companies prepared for the Year 2000 problem . There were concerns that computer systems would have trouble changing their clock and calendar systems from 1999 to 2000 which might trigger wider social or economic problems, but there

6105-744: The crash; 48% of dot-com companies survived through 2004, albeit at lower valuations. Several companies and their executives, including Bernard Ebbers , Jeffrey Skilling , and Kenneth Lay , were accused or convicted of fraud for misusing shareholders' money, and the U.S. Securities and Exchange Commission levied large fines against investment firms including Citigroup and Merrill Lynch for misleading investors. After suffering losses, retail investors transitioned their investment portfolios to more cautious positions. Popular Internet forums that focused on high tech stocks, such as Silicon Investor , Yahoo! Finance , and The Motley Fool declined in use significantly. Layoffs of programmers resulted in

6216-482: The democratic leadership style is more adequate in situations that require consensus building; finally, the laissez-faire leadership style is appreciated for the degree of freedom it provides, but as the leaders do not "take charge", they can be perceived as a failure in protracted or thorny organizational problems. Theorists defined the style of leadership as contingent to the situation; this is sometimes called contingency theory . Three contingency leadership theories are

6327-406: The desired level, and reward effectiveness when expected outcome is reached. Leader–member exchange (LMX) theory addresses a specific aspect of the leadership process, which evolved from an earlier theory called the vertical dyad linkage model. Both of these models focus on the interaction between leaders and individual followers. Similar to the transactional approach, this interaction is viewed as

6438-444: The dot-com boom can be seen as similar to a number of other technology-inspired booms of the past, including railroads in the 1840s, automobiles in the early 20th century, radio in the 1920s, television in the 1940s, transistor electronics in the 1950s, computer time-sharing in the 1960s, and home computers and biotechnology in the 1980s. Low interest rates in 1998–99 facilitated an increase in start-up companies. In 2000,

6549-642: The dot-com bubble burst, and many dot-com startups went out of business after burning through their venture capital and failing to become profitable . However, many others, particularly online retailers like eBay and Amazon , blossomed and became highly profitable. More conventional retailers found online merchandising to be a profitable additional source of revenue. While some online entertainment and news outlets failed when their seed capital ran out, others persisted and eventually became economically self-sufficient. Traditional media outlets (newspaper publishers, broadcasters and cablecasters in particular) also found

6660-500: The early criticisms of the trait approach, theorists began to research leadership as a set of behaviors by evaluating the behavior of successful leaders, determining a behavior taxonomy, and identifying broad leadership styles. David McClelland , for example, posited that leadership requires a strong personality with a well-developed positive ego. To lead, self-confidence and high self-esteem are useful, perhaps even essential. Kurt Lewin , Ronald Lipitt, and Ralph White developed in 1939

6771-543: The follower responds well, the leader rewards him/her with extra coaching, favorable job assignments, and developmental experiences. If the follower shows high commitment and effort followed by additional rewards, both parties develop mutual trust, influence, and support of one another. Research shows the in-group members usually receive higher performance evaluations from the leader, higher satisfaction, and faster promotions than out-group members. In-group members are also likely to build stronger bonds with their leaders by sharing

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6882-411: The followers to participate in group decision making and encouraged subordinate input. This entails avoiding controlling types of leadership and allows more personal interactions between leaders and their subordinates. The managerial grid model is also based on a behavioral theory. The model was developed by Robert Blake and Jane Mouton in 1964. It suggests five different leadership styles, based on

6993-643: The followers. Functional leadership theory addresses specific leader behaviors that contribute to organizational or unit effectiveness. This theory argues that the leader's main job is to see that whatever is necessary to group needs is taken care of; thus, a leader can be said to have done their job well when they have contributed to group effectiveness and cohesion. While functional leadership theory has most often been applied to team leadership, it has also been effectively applied to broader organizational leadership as well. In summarizing literature on functional leadership, researchers observed five broad functions

7104-473: The following: While the trait theory of leadership has certainly regained popularity, its reemergence has not been accompanied by a corresponding increase in sophisticated conceptual frameworks. Specifically, Stephen Zaccaro noted that trait theories still: Considering the criticisms of the trait theory outlined above, several researchers adopted a different perspective of leader individual differences—the leader-attribute-pattern approach. In contrast to

7215-490: The global economic downturn has had a negative impact on learning and development spending within the Middle East. More than half the respondents noted that spending on executive education had been “significantly” affected, while other organizations agreed that spending had been “somewhat” affected. A return to higher participation appears to be coming as the economy shows more signs of improvement. A substantial portion of

7326-670: The height of the boom, it was possible for a promising dot-com company to become a public company via an IPO and raise a substantial amount of money even if it had never made a profit—or, in some cases, realized any material revenue or even have a finished product. People who received employee stock options became instant paper millionaires when their companies executed IPOs; however, most employees were barred from selling shares immediately due to lock-up periods . The most successful entrepreneurs, such as Mark Cuban , sold their shares or entered into hedges to protect their gains. Sir John Templeton successfully shorted many dot-com stocks at

7437-493: The last 20 years suggests that applying reinforcement theory leads to a 17 percent increase in performance. Additionally, many reinforcement techniques such as the use of praise are inexpensive, providing higher performance for lower costs. Situational theory is another reaction to the trait theory of leadership. Social scientists argued that history was more than the result of intervention of great men as Carlyle suggested. Herbert Spencer (1884) (and Karl Marx ) said that

7548-497: The launch of a new product or website, a company would organize an expensive event called a dot-com party . In the five years after the American Telecommunications Act of 1996 went into effect, telecommunications equipment companies invested more than $ 500 billion, mostly financed with debt, into laying fiber optic cable, adding new switches, and building wireless networks. In many areas, such as

7659-477: The leader and specific followers can lead to the creation of in-groups and out-groups . In-group members are said to have high-quality exchanges with the leader, while out-group members have low-quality exchanges with the leader. In-group members are perceived by the leader as being more experienced, competent, and willing to assume responsibility than other followers. The leader begins to rely on these individuals to help with especially challenging tasks. If

7770-485: The leader behaviors that were effective. This approach dominated much of the leadership theory and research for the next few decades. New methods and measurements were developed after these influential reviews that would ultimately reestablish trait theory as a viable approach to the study of leadership. For example, improvements in researchers' use of the round-robin research design methodology allowed researchers to see that individuals can and do emerge as leaders across

7881-516: The leader or by other stakeholders, not through the actions of the leader. In other words, the reproduction of information or stories form the basis of the perception of leadership by the majority. It is well known by historians that the naval hero Lord Nelson often wrote his own versions of battles he was involved in, so that when he arrived home in England, he would receive a true hero's welcome. In modern society, various media outlets, including

7992-412: The leader tends to emphasize his/her formal authority to obtain compliance to leader requests. Research shows that out-group members are less satisfied with their job and organization, receive lower performance evaluations from the leader, see their leader as less fair, and are more likely to file grievances or leave the organization. Leadership can be an emotion-laden process, with emotions entwined with

8103-607: The leader's ability to build an interpersonal relationship with their followers, and to establish a form of mutual trust. These are considered "social oriented" behaviors. The Michigan State Studies, which were conducted in the 1950s, made further investigations and findings that positively correlated behaviors and leadership effectiveness. Although they had similar findings as the Ohio State studies, they also contributed an additional behavior identified in leaders: participative behavior (also called "servant leadership"), or allowing

8214-418: The leaders' concern for people and their concern for goal achievement. B. F. Skinner is the father of behavior modification and developed the concept of positive reinforcement . Positive reinforcement occurs when a positive stimulus is presented in response to a behavior, which increases the likelihood of that behavior in the future. The following is an example of how positive reinforcement can be used in

8325-481: The mess afterward". Finance author and commentator E. Ray Canterbery agreed with Krugman's criticism. On Friday March 10, 2000, the NASDAQ Composite stock market index peaked at 5,048.62. However, on March 13, 2000, news that Japan had once again entered a recession triggered a global sell off that disproportionately affected technology stocks. Soon after, Yahoo! and eBay ended merger talks and

8436-442: The modular Advanced Management Program (AMP) offered independently by several business schools. Not all observations of university-based executive education are positive. There is some debate about whether professional development is an appropriate part of a business school's curriculum. Some believe that university-based executive education has caused some business schools to "lose track of their professional mission." This argument

8547-547: The more traditional managerial views of leadership (which portray leadership as something possessed or owned by one individual due to their role or authority ), and instead advocate the complex nature of leadership which is found at all levels of institutions, both within formal and informal roles. Studies of leadership have produced theories involving (for example) traits , situational interaction, function, behavior , power , vision , values , charisma , and intelligence , among others. The Chinese doctrine of

8658-468: The mottos "get big fast" and "get large or get lost". These companies offered their services or products for free or at a discount with the expectation that they could build enough brand awareness to charge profitable rates for their services in the future. The "growth over profits" mentality and the aura of " new economy " invincibility led some companies to engage in lavish spending on elaborate business facilities and luxury vacations for employees. Upon

8769-503: The new entrepreneurs had experience in business and economics, the majority were simply people with ideas, and did not manage the capital influx prudently. Additionally, many dot-com business plans were predicated on the assumption that by using the Internet, they would bypass the distribution channels of existing businesses and therefore not have to compete with them; when the established businesses with strong existing brands developed their own Internet presence, these hopes were shattered, and

8880-548: The newcomers were left attempting to break into markets dominated by larger, more established businesses. The dot-com bubble burst in March 2000, with the technology heavy NASDAQ Composite index peaking at 5,048.62 on March 10 (5,132.52 intraday), more than double its value just a year before. By 2001, the bubble's deflation was running full speed. A majority of the dot-coms had ceased trading, after having burnt through their venture capital and IPO capital, often without ever making

8991-400: The numbers of eminent relatives dropped off when his focus moved from first-degree to second-degree relatives, Galton concluded that leadership was inherited. Cecil Rhodes (1853–1902) believed that public-spirited leadership could be nurtured by identifying young people with "moral force of character and instincts to lead", and educating them in contexts (such as the collegiate environment of

9102-689: The organizations surveyed by Manchester Business School said they anticipate executive education spending to moderately increase during the next three years. The situation is similar in other parts of the world according to a late 2010 state of the industry survey conducted by UNICON, which found that many prestigious universities with executive education programs around the world expect notably higher enrollment during 2011. Sixty-five percent of UNICON survey participants predicted increased participation in their open enrollment programs this year. Additionally, 78 percent of schools projected an increase in customized executive education programs during 2011. Nearly half of

9213-579: The peak of the bubble during what he called "temporary insanity" and a "once-in-a-lifetime opportunity". He shorted stocks just before the expiration of lockup periods ending six months after initial public offerings, correctly anticipating many dot-com company executives would sell shares as soon as possible, and that large-scale selling would force down share prices. Most dot-com companies incurred net operating losses as they spent heavily on advertising and promotions to harness network effects to build market share or mind share as fast as possible, using

9324-481: The possibility of selling to or hearing from those people at the same moment when they were reached, promised to overturn established business dogma in advertising, mail-order sales, customer relationship management , and many more areas. The web was a new killer app —it could bring together unrelated buyers and sellers in seamless and low-cost ways. Entrepreneurs around the world developed new business models, and ran to their nearest venture capitalist . While some of

9435-468: The press and blogs, present their own interpretations of leaders. These depictions can stem from actual circumstances, but they might also arise from political influences, monetary incentives, or the personal agendas of the author, media, or leader. Consequently, the impression of leaders is often constructed and may not accurately mirror their genuine leadership attributes. This highlights the historical role of concepts like royal lineage , which once stood as

9546-404: The qualities and behaviors associated with leaders and influencers developed only later during the 19th and 20th centuries - possibly traceable from 1870 onwards. Historically, industrialization , opposition to the ancien regime , and the phasing out of chattel slavery meant that some newly developing organizations ( nation-state republics , commercial corporations ) evolved a need for

9657-407: The question "What qualities distinguish an individual as a leader?" Underlying this search was the early recognition of the importance of leadership and the assumption that leadership is rooted in the characteristics that certain individuals possess. This idea that leadership is based on individual attributes is known as the " trait theory of leadership ". A number of works in the 19th century – when

9768-832: The rapid growth of valuations in new dot-com startups . Between 1995 and its peak in March 2000, investments in the NASDAQ composite stock market index rose by 800%, only to fall 78% from its peak by October 2002, giving up all its gains during the bubble. During the dot-com crash , many online shopping companies, notably Pets.com , Webvan , and Boo.com , as well as several communication companies, such as Worldcom , NorthPoint Communications , and Global Crossing , failed and shut down. Others, like Lastminute.com , MP3.com and PeopleSound remained through its sale and buyers acquisition. Larger companies like Amazon and Cisco Systems lost large portions of their market capitalization, with Cisco losing 80% of its stock value. Historically,

9879-455: The same social backgrounds and interests. Out-group members often receive less time and more distant exchanges than their in-group counterparts. With out-group members, leaders expect no more than adequate job performance , good attendance, reasonable respect, and adherence to the job description in exchange for a fair wage and standard benefits. The leader spends less time with out-group members, they have fewer developmental experiences, and

9990-448: The same time, a decline in interest rates increased the availability of capital. The Taxpayer Relief Act of 1997 , which lowered the top marginal capital gains tax in the United States , also made people more willing to make more speculative investments. Alan Greenspan , then- Chair of the Federal Reserve , allegedly fueled investments in the stock market by putting a positive spin on stock valuations. The Telecommunications Act of 1996

10101-444: The schools surveyed indicated an increase in their number of programming days, now offering up to 39 weeks in open enrollment programs and an average of 49 weeks in custom programs. Slightly more than half also reported increasing the number of days that educational programs for executives are offered. Executive education rankings are carried out annually by the Financial Times and by Bloomberg BusinessWeek . Ranking may be based on

10212-401: The scope of the business landscape by favouring employees and organizations that were quick to adapt to change. As longstanding business concepts became obsolete, continual training was necessary – but earning a degree was not. In a 1999 survey of 63 programs, the University of Michigan Business School topped the list. By the next survey in 2001, the number of programs had doubled to 121, with

10323-500: The seminal work on the influence of leadership styles and performance. The researchers evaluated the performance of groups of eleven-year-old boys under different types of work climate. In each, the leader exercised his influence regarding the type of group decision making , praise and criticism ( feedback ), and the management of the group tasks ( project management ) according to three styles: authoritarian , democratic , and laissez-faire . In 1945, Ohio State University conducted

10434-423: The situation is considered a "favorable situation". Fiedler found that task-oriented leaders are more effective in extremely favorable or unfavorable situations, whereas relationship-oriented leaders perform best in situations with intermediate favorability. Victor Vroom , in collaboration with Phillip Yetton and later with Arthur Jago, developed a taxonomy for describing leadership situations. They used this in

10545-668: The social influence process. A leader's mood affects his/her group. These effects can be described in three levels: In research about client service, it was found that expressions of positive mood by the leader improve the performance of the group, although in other sectors there were other findings. Beyond the leader's mood, her/his behavior is a source for employee positive and negative emotions at work. The leader's behavior creates situations and events that lead to emotional response, for example by giving feedback, allocating tasks, and distributing resources. Since employee behavior and productivity are affected by their emotional states, it

10656-466: The strength of courage results in violence. Excessive discipline and sternness in command result in cruelty. When one has all five virtues together, each appropriate to its function, then one can be a leader. Machiavelli's The Prince , written in the early-16th century, provided a manual for rulers ("princes" or "tyrants" in Machiavelli's terminology) to gain and keep political power . Prior to

10767-443: The task by developing good relationships with the group (relationship-oriented), and those who have as their prime concern carrying out the task itself (task-oriented). According to Fiedler, there is no ideal leader. Both task-oriented and relationship-oriented leaders can be effective if their leadership orientation fits the situation. When there is a good leader-member relation, a highly structured task, and high leader position power,

10878-412: The technology sector. In a 2015 book, venture capitalist Fred Wilson , who funded many dot-com companies and lost 90% of his net worth when the bubble burst, said about the dot-com bubble: A friend of mine has a great line. He says "Nothing important has ever been built without irrational exuberance ." Meaning that you need some of this mania to cause investors to open up their pocketbooks and finance

10989-403: The times produce the person and not the other way around. This theory assumes that different situations call for different characteristics: no single optimal psychographic profile of a leader exists. According to the theory, "what an individual actually does when acting as a leader is in large part dependent upon characteristics of the situation in which he functions." Some theorists synthesized

11100-609: The traditional approach, the leader-attribute-pattern approach is based on theorists' arguments that the influence of individual characteristics on outcomes is best understood by considering the person as an integrated totality rather than a summation of individual variables. In other words, the leader-attribute-pattern approach argues that integrated constellations or combinations of individual differences may explain substantial variance in both leader emergence and leader effectiveness beyond that explained by single attributes, or by additive combinations of multiple attributes. In response to

11211-433: The traditional authority of monarchs, lords, and bishops had begun to wane – explored the trait theory at length: especially the writings of Thomas Carlyle and of Francis Galton . In Heroes and Hero Worship (1841), Carlyle identified the talents, skills, and physical characteristics of men who rose to power. Galton's Hereditary Genius (1869) examined leadership qualities in the families of powerful men. After showing that

11322-405: The trait and situational approaches. Building upon the research of Lewin et al., academics normalized the descriptive models of leadership climates, defining three leadership styles and identifying which situations each style works better in. The authoritarian leadership style, for example, is approved in periods of crisis but fails to win the "hearts and minds" of followers in day-to-day management;

11433-401: The true pioneers of executive education and the ongoing effort to facilitate wealth creation and other new concepts aimed at making stronger businesses while improving the welfare of the world. Throughout the 1970s, university-based executive education continued to evolve as an industry. Several on-campus residential facilities were constructed at several universities, demonstrating the value of

11544-491: The wealthy. Subsequent executive education programs, including the 13-week Advanced Management Program at Harvard University and the four-week Institute for Management at Northwestern University's School of Commerce (now the Kellogg School of Management), developed in response to the need to rapidly train line executives for general management in the post-World War II era. By the late 1970s, nearly 20 business schools in

11655-557: Was developed by Robert House and was based on the expectancy theory of Victor Vroom . According to House, "leaders, to be effective, engage in behaviors that complement subordinates' environments and abilities in a manner that compensates for deficiencies and is instrumental to subordinate satisfaction and individual and work unit performance". The theory identifies four leader behaviors, achievement-oriented , directive , participative , and supportive , that are contingent to environment factors and follower characteristics. In contrast to

11766-602: Was expected to result in many new technologies from which many people wanted to profit. As a result of these factors, many investors were eager to invest, at any valuation, in any dot-com company , especially if it had one of the Internet-related prefixes or a " .com " suffix in its name. Venture capital was easy to raise. Investment banks , which profited significantly from initial public offerings (IPO), fueled speculation and encouraged investment in technology. A combination of rapidly increasing stock prices in

11877-896: Was further eroded by several accounting scandals and the resulting bankruptcies, including the Enron scandal in October 2001, the WorldCom scandal in June 2002, and the Adelphia Communications Corporation scandal in July 2002. By the end of the stock market downturn of 2002 , stocks had lost $ 5 trillion in market capitalization since the peak. At its trough on October 9, 2002, the NASDAQ-100 had dropped to 1,114, down 78% from its peak. After venture capital

11988-488: Was named the Department of Business and Engineering Administration. In 1931, an innovative program for executive development was initiated with the backing of several industrialists. This one-year program — offering graduate study in the fundamentals of management and decision-making — was aimed at young managers who were nominated by their employers and was highly competitive. In 1938, the program received full funding from

12099-442: Was no longer available, the operational mentality of executives and investors completely changed. A dot-com company's lifespan was measured by its burn rate , the rate at which it spent its existing capital. Many dot-com companies ran out of capital and went through liquidation . Supporting industries, such as advertising and shipping, scaled back their operations as demand for services fell. However, many companies were able to endure

12210-400: Was the largest to date and was questioned by many analysts. Then, on January 30, 2000, 12 ads of the 61 ads for Super Bowl XXXIV were purchased by dot-coms (sources state ranges from 12 up to 19 companies depending on the definition of dot-com company ). At that time, the cost for a 30-second commercial was between $ 1.9 million and $ 2.2 million. Meanwhile, Alan Greenspan , then Chair of

12321-439: Was virtually no impact or disruption due to adequate preparation. Spending on marketing also reached new heights for the sector: Two dot-com companies purchased ad spots for Super Bowl XXXIII , and 17 dot-com companies bought ad spots the following year for Super Bowl XXXIV . On January 10, 2000, America Online , led by Steve Case and Ted Leonsis , announced a merger with Time Warner , led by Gerald M. Levin . The merger

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