We noted in Chapter 6 and again in Chapter 8 that m any organizations today are using teams. Many other organizations are attempting to become less hierarchical by eliminating the old-fashioned command-and-control mentality often inherent in bureaucratic organizations and motivating and empowering individuals to work independently. In each case, the role of leaders is also changing. Whereas leaders were once expected to control situations, direct work, supervise people, closely monitor performance, make decisions, and structure activities, many leaders today are instead being asked to change how they manage people. Perhaps the best description of this new role is for the leader to become more of a coach rather than an overseer.¹³

From the standpoint of a business leader, a coaching perspective would call for the leader to help select and train team members and other new employees, to provide some general direction, and to help the team get the information and other resources it needs. Coaches from different teams may play important roles in linking the activities and functions of their respective teams. Some leaders may function as mentors, helping less experienced employees learn the ropes and better preparing them to advance within the organization; they may also help resolve conflicts among team members and mediate other disputes that arise. But beyond these activities, the leader keeps a low profile and lets the group get its work done with little or no direct oversight, just as during a game, an athletic coach trusts his or her players to execute the plays successfully.

Jeff Bezos, founder and CEO of Amazon.com, often plays the role of coach. He likes to focus on long-term, strategic issues and leave the daily management of Amazon.com to senior managers. But their decisions must also be consistent with his vision for the firm. As a result, he works with them on a regular basis to help them develop their decision-making skills and to equip them with the information they need to help lead the firm in the directions he has set.

Another factor that is clearly altering the face of leadership is the growing number of women advancing to higher levels in organizations. Given that most leadership theories and research studies traditionally focused on male leaders, developing a better understanding of how women lead is clearly an important next step. Some early observers, for instance, predicted that (consistent with prevailing stereotypes) female leaders would be relatively warm, supportive, and nurturing as compared to their male counterparts. But research suggests that female leaders are not necessarily more nurturing or supportive than male leaders. Likewise, male leaders are not systematically harsher, more controlling, or more task focused than female leaders.

The one difference that has arisen in some cases is that women may be slightly more democratic in making decisions, whereas men have a tendency to be more autocratic.¹⁵ However, much more work needs to be done to better understand the dynamics of gender and leadership. In the meantime, high-profile and successful female leaders, such as Indra Nooyi (CEO of PepsiCo), Sherilyn McCoy (CEO of Avon Products), and Angela Merkel (chancellor of Germany), continue to demonstrate the effectiveness with which women can be exceptional leaders.

Another changing perspective on leadership relates to cross-cultural issues. In this context, culture is used as a broad concept to encompass both international differences and diversity-based differences within one culture. For instance, Japan is generally characterized by collectivism (group before individual), whereas the United States is based more on individualism (individual before group). So when a Japanese firm sends an executive to head up the firm’s operation in the United States, that person will likely find it necessary to recognize the importance of individual contributions and rewards and the differences in individual and group roles that exist in Japanese and U.S. businesses.

For instance, Carlos Ghosn runs both Renault (an Italian car company) and Nissan (a Japanese car company). Ghosn knows that cultural differences cause his European managers to expect him to lead in certain ways, whereas his Japanese managers expect him to lead in slightly different ways. More specifically, in Europe, leaders must often be aggressive, and meetings are often characterized by loud verbal exchanges and arguments. In Japan, though, more emphasis is put on consensus building and polite exchanges of dialogue.

Similarly, cross-cultural factors also play a growing role in organizations as their workforces become more diverse. As African Americans, Asian Americans, Hispanics, and members of other ethnic groups achieve more leadership positions, it may be necessary to reassess how applicable current theories and models of leadership are when applied to an increasingly diverse pool of leaders.