c

cc

AN ANALYSIS OF THE CHARISMATIC LEADERSHIP

QUALITIES OF STEVE JOBS
 INTRODUCTION

Charismatic leaders are precious commodities in any organization who are perceived as

exhibiting magnetic tendencies. They have the ability to lure followers and have outstanding

persuasive skills. This charismatic trait manifests in their good communication skills,

dominant personalities and certain brashness about them.

The subject of charismatic leadership has gained attention in various fields the reby leading

to formulation of theories. Some researchers have opined that charismatic leaders possess

certain personality traits which create a quality known as charisma while others believe the

perception of followers is vital to the definition of a char ismatic leader.

This research report will attempt to analyze a leader with a view to determining whether or

not his leadership qualities and behaviour coincide with charismatic leadership theories. The

leader chosen for this purpose is Steve Jobs who is th e co-founder, Chairman and Chief

Executive Officer of Apple Inc.

The charismatic leadership theories to be used are the behavioural theories of House (1977)

and Conger and Kanungo (1986). The research report is relevant because it seeks a linkage

between the theory and practice of leadership

The research will be divided into four sections. In Chapter 2, a review of the literature is

carried out, looking at the leader as an entrepreneur and theories of charismatic leadership.

Chapter 3 goes on to examine exc erpts from Steve Jobs¶s business life where he displayed

leadership behaviour and qualities. Chapter 4 attempts to discuss the extent to which Steve

Jobs correlates with the theories, gaining an insight into how the leadership instances reflect

the theoretical statements. Finally, in Chapter 5 some conclusions are drawn as to findings

in the analysis. The research project utilizes secondary data sources such as books and

online material and is limited by word count

c

LITERATURE REVIEW

1.0 LEADERSHIP

Leadership has been defined by Northouse (2010, p.3) as ³a process whereby an individual

influences a group of individuals to achieve a common goal´. Similarly, Stogdill¶s 1950 study

(Parry & Bryman 2010, p.447) considers leadership to be ³the process (act) of influe ncing

the activities of an organized group in its efforts toward goal setting and goal achievement´.

Mullins (2007, p.363) sees leadership as a ³relationship through which one person

influences the behaviour or actions of other people´. Leadership entails a symbiotic

association occurring between the leader and the led (followers) in the course of working

towards a common objective. However, the leader exerts influence which is indispensable to

the process. (Northouse, 2010)

Growthink (2010) defines leaders hip as a process through which an entrepreneur is able to

influence employees to achieve the objectives of the organisation. An entrepreneur must

build trust and confidence among employees and communicate effectively with them.

Furthermore, keys to entrepr eneurial leadership includes seeking self improvement,

possessing technical skills, accepting responsibility for action, making good and timely

decisions and being a role model.

1.1 THE CHARISMATIC LEADERSHIP THEORY

Weber (1974) defines charisma as a spec ial personality trait that gives an individual

superhuman power. Additionally, It is reserved for a select few and ultimately results in the

individual being labelled a leader.

House (1976) published a theory of charismatic leadership which hypothesized th at a person

possesses charismatic personality traits which are exhibited in specific behaviours. These

behaviours consequently have certain effects on followers.

According to House (1976, p.11), personality traits of a leader who has charismatic effects

on followers include ³dominance and self -confidence, need for influence, and a strong

conviction in the moral righteousness of their beliefs´.

In addition to exhibiting certain personality traits, charismatic leaders also display specific

types of behaviour according to House (1976). First, they ³behave in the manner in which

they want their followers to behave´ (being role models). Second, they are ³likely to engage

in behaviours designed to create the impression of competence´ (showing competence to

followers). Third, they articulate a ³transcendent¶ goal which becomes the basis of a

movement or cause. Such a goal is ideological rather than pragmatic and is laden with moral

overtones´. Fourth, charismatic leaders ³communicate high performance expectations f or

subordinates and exhibit confidence in their ability to meet such expectations´. Finally, they

³engage in behaviours that arouse motives relevant to the accomplishment of the mission´.

The behaviours may include uplifting talks and emotional appeals (Ba ss, 1985).

House (1976) also hypothesizes that in a situation which involves stress or crisis, followers

will likely turn to an individual possessing vision, confidence and a strong sense of moral

conviction to guide them through the situation. Harvey (200 1) reckons charismatic leaders

are perceived to possess outstanding rhetorical ability.

House¶s theory of charismatic leadership, examining leader behaviours, served as a basis

for future research into the subject of leadership in organizations (House, 197 6). Therefore,

this encouraged the introduction of the attribution approach to the charismatic leadership

theory.

Conger and Kanungo (1987) advocated the attribution approach to the charismatic

leadership theory by asserting that charisma is ³an attributi onal phenomenon´. In essence,
charisma is seen as an attribution made by followers when they observe expressions of

certain charismatic qualities or behaviours in the leader (Conger and Kanungo, 1987)

The behavioural components responsible for such attribu tion are ³inter -related´ according to

Conger and Kanungo (1987, pp.640 -644) and includes: presenting an idealized, µhighly

discrepant¶, goal or vision to followers; engaging in acts perceived by followers as involving

significant personal risk, loss or sel f-sacrifice to achieve a vision; demonstrating expertise in

using unconventional means to µtranscend the existing order¶; engaging in new,

unconventional, counter normative behaviour; sensitivity to environmental changes and

developments; articulation of v ision and expression of motivation to lead; exertion of

personal power over followers (expert and referent); acting as reformers or agents of radical

changes.

1.2 CRITICISMS OF THE THEORY

Parry & Bryman (2010, p.451) reveal charismatic leadership theory, as part of the ³New

Leadership´ approach, focuses research on ³very senior leaders´ rather than ³low - to middle-

level leaders´.

Yukl (1999:8) believes charismatic leadership theories reveal a prejudice towards heroic

leadership. In his view, researchers wi th this bias strive to identify qualities that increase

leader influence over subordinates without describing how the same qualities can be both a

strength and a weakness for a leader. As an example, ³expressing strong convictions, acting

confident and tak ing decisive action can create an impression of exceptional expertise, but it

can also discourage relevant feedback from followers´ (Yukl, 1999).

 OVERVIEW OF STEVE JOBS

2.0 SUMMARY OF BUSINESS CAREER

Along with Steve Wozniak and others, Steve Jobs founded Apple Inc in 1976 . Wozniak, an

electronic genius, had built his own personal computer but had little interest in selling it. Jobs

persuaded him to market the product and together they started Apple Computer Inc

(Kahney, 2008).

Having resigned from Apple in 1985 after losing a power tussle, Jobs founded NeXT

Computers and acquired the computer graphics division of Lucasfilm Ltd, later christened

Pixar Animation Studios.

Pixar, a successful venture, was acquired by the Walt Disney company in 20 06 while NeXT

Computers was bought by Apple. Returning to Apple, Jobs became CEO in 1997 and has

retained the position till date.

2.1 LEADERSHIP INSTANCES

Steve Jobs owes everything he learned about electronics to Heathkits which were popular

kits for building electronics (Kahney, 2008:196). Jobs said the kits ³gave a tremendous level

of self-confidence´ because seemingly complex concepts could now be understood.

Kahney (2008) believes creating easy -to-use technology for people was Jobs¶s goal. In 1979

Steve Jobs recognized that the graphical user interface (GUI) would be the standard for

computer navigation. While touring the Xerox Palo Alto Research Centre, he encountered

the first computer built with this technology and later remarked, ³Within ten minute s, it was

obvious that all computers would work like this someday´ (Kahney, 2008:194).

Jobs communicated this idea passionately to the small team of talented people working on

the Macintosh computer convincing them that the GUI was going to revolutionize c omputing.
He motivated them by insisting that they were doing ³nothing less than God¶s work´ and are

³privileged to be designing such a groundbreaking product.´ (Kahney, 2008:153)

The ability to impress and attract people is a trait synonymous with Steve J obs. His charisma

has been described as a gift bestowed by nature (Young and Simon, 2006:1). He is a

³captivating speaker who exudes as much charisma to an audience of thousands as he does

one-on-one (when on his best behaviour)´ (Young and Simon, 2006). K ahney (2008:39)

believes Jobs is ³a master at conceiving and helping to create innovative new products.´

Steve Jobs is responsible for introducing new products to the world. Moisescot (2010) calls

him the company¶s ³ultimate salesman´ due to his persuasive and charming abilities. The

³reality distortion field´, a term coined by Apple engineer Burrell Smith describes Steve¶s

charisma and ³his ability to convince you of just about anything´.

Jobs is highly passionate about his work so much so that he is known to pore over the

smallest of detail. His insistence on making products customer -friendly results in an endless

pursuit of excellence. He is a control freak, a stickler for detail and possesses a no -

compromise ethos (Kahney, 2008). During the development o f the iPod music player, Jobs

³stayed close to the project all the way....his flawless taste in design shining through in his

rigorous-as-ever demands for the highest standards´ (Young and Simon, 2006:278).

Steve Jobs relishes working with a small team of talented people (Young and Simon,

2006:120). Kahney (2008:108) defines Jobs as an ³elitist who believes that a small A team is

far more effective than armies of engineers and designers´.

On his return to Apple in 1997, the company was in crisis. It reporte d a loss of $69 million

and dismissed 1,300 staff in the first quarter of 1996 (Kahney, 2008:17). After the board lost

confidence in the incumbent CEO, Jobs agreed to take over on a temporary basis.

He turned the company¶s fortunes by introducing a number of changes, chiefly focusing on

making four products excellently (Kahney, 2008). Under Jobs¶s guidance, Apple witnessed
increased sales and made $45 million profit in the last quarter of 1997 (Moisescot, 2010). He

also discontinued development of the Newt on Personal Digital Assistant (PDA) believing ³it¶s

time had passed.´ (Kahney, 2008)

Steve Jobs is known to use his persuasive and charming abilities to inspire and motivate his

team to achieve. ³He sometimes insists on things that are seemingly impossi ble, knowing

that eventually even the thorniest problem is solvable´ (Kahney, 2008:161). Sculley

(1987:84) alluded to his powers of persuasion saying he ³possessed an innate sense of

knowing exactly how to extract the best from people.´ He could also berat e employees and

become overly critical. Jobs is ³no pussycat when dealing with underlings. He knows what

he wants, and he¶ll throw a fit to get it´ (Kahney, 2008:151). Sculley (1987) acknowledges

that Jobs ³pushed them (the workers) to their limits, until even they were amazed at how

much they were able to accomplish´.

Since his return to Apple, Jobs has shunned corporate attire, opting for informal attire when

interacting with the public. Gupta (2010) believes this ³subtly eliminates the perception of

being at higher level than the audience....his closeness with customers enhances his

judgment about what the customers may like or dislike.´

His foray into computer animation with the acquisition of Pixar initially looked foolish. The

company was failing and Jobs ³propped up the struggling company for a decade with $60

million of his own money´ (Kahney, 2008:8). According to Moisescot (2010) the company

was unprofitable in its early years operating at a loss of more than $8 million. As a result,

Jobs would ini tiate lay-offs and reorganise the team.

In 2003, Jobs persuaded five major music labels at the time to try selling songs individually

for 99 cents (Kahney, 2008:183). This led to the birth of the successful iTunes store.

Jobs also took an active role in th e development of innovative retail strategies for selling

Apple computers. In violation of standard practice, the retail stores had ³diminutive size and
non-aggressive sales team´ (Hormby, 2008). Kahney (2008) says the stores have been

called ³experiential innovation´ because they are different from anything else in retailing.
 ANALYSIS

House (1976) identifies personal characteristics of leaders who have charismatic effects on

followers as dominance, self -confidence, strong conviction in the moral righteousness of

their beliefs and a high need to influence others.

Dominance may be identified as a key component in Steve Job¶s character. He is known as

a control freak, who desires to influence others (Kahney, 2008). As a young child, Jo bs

became fascinated by Heathkits ± popular kits that demystified electronics. He recalled the

experience gave a ³tremendous level of self -confidence´ because the inner workings of

electronics could now be understood (Kahney, 2008:196). Additionally, Jobs seems to

project an image of self -confidence in his product presentations as he is responsible for

introducing the newest Apple products to the public. His need or desire for influence is

evident when he aspires to control every detail of the employees wor k making endless

revisions (Kahney, 2008). While working on the Macintosh computer, Jobs appears to

communicate his conviction that it would revolutionize computing to his team members. He

convinced his team they were privileged to be designing a groundbre aking product and were

doing ³nothing less than God¶s work´ (Kahney, 2008:153). He may have convinced his team

they were working towards a just cause.

Furthermore, House (1976) hypothesizes the six behaviours of charismatic leaders as role

modelling, image building (creating an impression of competence), goal articulation,

communication of high expectations for followers and exhibition of confidence in their ability

to meet such expectations and finally behaviours that arouse motives relevant to

accomplishment of the goal.

Steve Jobs seems to be a role model to his followers by expecting them to be as committed

and passionate about their work as he is. A demanding executive, Steve Jobs expects

exceptional performance from subordinates by insisting on thing s that seem impossible at

first but eventually become feasible (Kahney, 2008:161). He motivates by being persuasive
on one hand and overly critical on the other (Kahney, 2008:151). Rather than express

confidence in the employee¶s ability to do the job, he ³pushes them to their limits´ (Sculley,

1987). He appears to arouse the enthusiasm of the Macintosh team convincing them that

³they were in a unique position to change the face of computing´ (Kahney, 2008). Such

persuasive behaviour seems relevant to the a ccomplishment of the task. The vision of Steve

Jobs is to make easy-to-use gadgets for the widest possible audience (Kahney, 2008:7). He

may not articulate it often but it seems implied in the organization.

Steve Jobs creates an impression of competence by being the public face of Apple. He

introduces new products to the world for which he spends weeks in preparation. He also is

adept at visualizing and helping to create innovative new products (Kahney, 2008:39).

Conger and Kanungo (1987) presents the behav ioural components attributed by followers in

charismatic leaders as presenting an idealized, µhighly discrepant¶, goal or vision to

followers; engaging in acts perceived by followers as involving significant personal risk, loss

or self-sacrifice to achieve a vision; demonstrating expertise in using unconventional means

to µtranscend the existing order¶; engaging in new, unconventional, counter normative

behaviour; sensitivity to environmental changes and developments; articulation of vision and

expression of motivation to lead; exertion of personal power (expert and referent) over

followers; acting as reformers or agents of radical changes.

Steve Jobs goal or dream is to make available easy -to0use technology to people (Kahney,

2008:7). This is evident in the development of the Macintosh computer with Jobs envisioning

that they were creating something revolutionary (Kahney, 2008:152). The vision appears to

be idealist since the Macintosh had flaws and failed to meet expectations (Moisescot, 2009).

In 1990 befo re Pixar became a success, Steve Jobs poured $60 million of his personal

money into the company to no avail (Kahney, 2008:8). This can be viewed as an act

involving significant personal risk or loss. Jobs would later express doubts about buying

Pixar if he knew how much it would cost to run it (Kahney, 2008:112).

Steve Jobs appears to demonstrate expertise in using unconventional means to transcend

the existing order. In 2003, he developed an innovative business model by persuading the

five major music labe ls at the time to try selling songs individually for 99 cents (Kahney,

2008:183). This led to the birth of the successful iTunes store. Jobs also took an active role

in the development of the innovative Apple retail stores. In violation of standard practic e, the

retail stores had ³diminutive size and non -aggressive sales team´ (Hormby, 2008). Kahney

(2008) says the stores have been called ³experiential innovation´ because they are different

from anything else in retailing.

Shunning corporate outfit, Jobs pr esents new products to, and generally interacts with, the

public wearing informal clothes. This can be seen as unconventional behaviour.

Steve Jobs may have been sensitive to changes in the environment. Kahney (2008)

observed he was right to discontinue de velopment of the Newton Personal Digital Assistant

(PDA) because the ³PDA¶s time had already passed´.

Articulation of a vision in clear specific terms may not be associated with Steve Jobs. He

rather sets out his vision broadly saying he wants to create ³e asy-to-use computers´ for ³the

widest possible audience.´ He expresses and communicates his motivation to lead by being

committed, persuasive and painstaking in his approach to product development.

Steve Jobs appears not to exert referent and expert power over his team members all of the

time. He seems to utilize coercive means along with referent power because some team

members work hard to gain his attention and approval by virtue of his vision (Kahney, 2008).

Steve Jobs appears to act as a reformer or a n agent of radical change when he returned to

Apple and introduced swift changes including stripping the product line to just four.
 CONCLUSION

The study has shown that Steve Jobs is a leader whose leadership qualities and behaviour

mostly correlate with the behavioural charismatic leadership theories of House (1977) and

Conger and Kanungo (1987). Steve Jobs is a leader who desires to be dominant, has high

levels of self-confidence and a high need for influence. He also has strong conviction in his

beliefs.

He demands that his followers mirror his passion and commitment to the job and displays

competence in various situations. Steve Jobs demands high performance expectations for

subordinates and engages in behaviour that stimulates the reason for goal accom plishment.

Further, he is a visionary who takes massive risks and is unconventional in his methods. He

is a persuasive communicator and has instituted radical changes in the way products are

designed and perceived.

This research has looked at leadership in stances in Steve Jobs¶s business life juxtaposed

with the behavioural theories of charismatic leadership to determine any correlation.

Steve Jobs may have exhibited low level of confidence in employee ability to carry out the

job, pushing the workers hard until they delivered. His leadership style may not be received

well in some quarters raising questions about likeability and emulation. He certainly served

as a role model to his followers with respect to his work ethic.

The exploration of the leadership b ehaviour of Steve Jobs need not end with this study.

Future research can further enrich this topic for instance by including primary data.
 REFERENCES

Bass, B.M., 1985. Leadership and Performance Beyond Expectations . New York, NY: Free

Press.

Conger, J.A and Kanungo, R.N., 1987. Toward a behavioural theory of charismatic

leadership in organizational settings. Academy of Management Review , 12 (4), pp. 637 -647.

Growthink, 2010. Entrepreneurial Leadership: The Definition of an Entrepreneur. [online]

Available at http://www.growthink.com/businessplan/help -center/entrepreneurial -leadership

[Accessed 20 October 2010].

Gupta, A., 2010. Steve Jobs, CEO Apple. [online] Avail able at: http://www.practical -

management.com/Leadership/Steve -Jobs-Apple.html [Accessed 20 October 2010].

Harvey, A., 2001. A Dramaturgical Analysis of Charismatic Leader Discourse. Journal of

Organizational Change Management , 14 (3), pp. 253 ±265.

Hormby, T., 2008. The Roots of Apple¶s Retail Stores. [online] Available at:

http://lowendmac.com/orc hard/08th/roots -of-the-apple-store.html [Accessed 10 November

2010].

Kahney, L., 2008. Inside Steve¶s Brain . London: Atlantic Books.

Moisescot, R., 2010. Steve Jobs: Long Bio. [online] Available at:

http://www.allaboutstevejobs.com/bio/long/05.html [Accessed 20 October 2010].

Mullins, L.J., 2007. Management and Organisational Behaviour . 8th ed. Harlow: FT Prentice

Hall.

Northouse, G.N., 201 0. Leadership: Theory and Practice . 5th ed. London: SAGE

Publications.
Parry, K.W. and Bryman, A., 2006. Leadership in Organizations. In: Clegg et al., ed. 2006.

The SAGE Handbook of Organization Studies . 2nd ed. London: SAGE Publications, pp. 447 ±

468.

Sculley, J., and Byrne, J.A., 1987. Odyssey: Pepsi to Apple . London: Collins.

Young, J.S. and Simon, W.L., 2006. iCon: Steve Jobs, the greatest second act in the history

of business . Updated ed. Hoboken, N.J: Wiley.

Weber, M., 1947. The theory of social and e conomic organization . T. Parsons Trans. New

York: The Free Press. (Original work published 1924).

Yukl, G., 1999. An Evaluative Essay on Current Conceptions of Effective Leadership.

European Journal of Work and Organizational Psychology , 8 (1), pp. 33-48.