Steve Jobs, as Jack Welch called “the most successful CEO
today” exhibits characteristics of both transactional and transformational
leadership styles. Good leadership is key, particularly in today’s competitive
global economy, and can make the difference between the success and the failure
of the organization. He can be perhaps best labelled as a composite of both. He
possesses micromanagement tendencies, is quick to judge, frequently yells and
berates his employees, and reduces them to tears. Yet he also inspires a
transcending vision who can connect emotionally with both his customer base and
employees. Numbers say it all, Apple’s market capitalization is over $300
Billion making it the second most valuable publicly traded company in the
world, surpassing even giant (and rival) Microsoft.
Transactional leadership involves working
within the existing culture, ensuring that employees are doing things
correctly. Rewards are performance based and incorporate
Management-By-Exception which involves monitoring performance and either taking
action if performance deviates from expectations or being proactive in
preventing deviations. It’s a directive Theory X leadership style. Transformational leadership involves
inspiring greater performance, creating a vision and aligning staff around that
vision, fostering creative ideas, and being sensitive to the needs of others. A
transformational leader is charismatic and intuitive. It’s been proven that
transformational leadership results in increases in productivity as well as
employee satisfaction and employees prefer to work for leaders with this style.
It’s in line with MacGregor’s Theory Y and Ouchi’s Theory Z leadership style. However
transactional leadership does have positive attributes in that it can build an
environment of trust and loyalty if the promised rewards are given, which in
turn leads to job satisfaction. In reality both styles are typically not only
present but are needed.
Steve Jobs as
Transactional Leader
It’s no secret that Jobs can be someone to be feared, having
been described as, the great intimidator. He is quick to judge, categorizing
employees as either, geniuses’ or bozos’ and quickly firing those who fall in
the latter camp. Said Larry Tesler, an Apple engineer, regarding Jobs, “the
little things he did would create incredible pressure unlike I’d ever
experienced before just tearing you to the bone ripping you apart and making
you feel worthless.” Fear and reprisal tactics are not qualities of the
aforementioned transformational leader, particularly as transformational
leaders are known to show respect for their employees (a sub-component known as
individualized consideration). Jobs defends these tactics by stating about his
employees, “when you get really good people they know they’re really good and
you don’t have to baby people’s egos so much.” and “My job is not to be easy on
people. My job is to make them better.”
Steve Jobs as
Transformational Leader
Despite Jobs‟ extremes into the transactional space, he is
equally extreme in the transformational space. He is known for his rhetorical
skills and power of persuasion, qualities that define a charismatic leader. He
is famous for luring John Sculley, a move that Jobs would later regret, away
from Pepsi with the words, “Do you want to spend the rest of your life selling
sugared water, or do you want a chance to change the world?” Words like these
were representative of the inspirational motivation aspect of transformational
leadership that Jobs possessed. A colleague described him as “one of the most
charismatic people in the computer industry.” Strategic Direction wrote about
him (“Who has the top”, 2009) that “few CEOs enjoy the iconic status and
fanatical following as Jobs”. Andrea Cunningham who had lamented about his
micromanagement style also said of him, “You have this feeling that you are
going to change the world with him, and it can justify the 90-hour weeks.” This
turns out to be a very revealing comment as transformational leaders are known
to be able to inspire their followers to push further and harder than they
otherwise would by transcending their own self-interest for the sake of the
team and directing their efforts to the pursuit of Maslow’s highest level;
spiritual actualization. Transformational leaders must also believe in their
own vision. Genuine enthusiasm is tangible and transfers easily to others who
can’t help but become enthusiastic themselves and as Jobs says in his own
words, “The only way to be truly satisfied is to do what you believe is great
work.”
He’s a composite
leader in an extreme way, someone to be both greatly feared and greatly
admired. Jobs dual personality that his “rare blend of the charismatic and
tyrannical” has been the “key to Apple’s success”. The reason why Steve Jobs is hero
to me and millions of others is that though many of his creations were
original, expensive and stylish, they improved productivity and enhanced
pleasure. Without the mouse this column would have taken longer to write and
robbed me a little of the joy.
