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    THE POWER

    OF

    THE FOLLOWER

    SAND011A

    MBL 921-S Leadership Assignment II

    Group Member Student Number Contribution

    Addison, B. 7078-516-3 100%

    Bheamadu, A 3285-589-3 100%

    Deonarain, N 7288-417-7 100%

    Deshmukh, A 7136-472-2 100%

    Jooste, D L 7276-682-4 100%

    Mahura, S 7300-632-7 100%

    Mavimbela, R 7294-314-9 100%

    Mnube, M 3326-099-0 100%

    Singh, Yashin 3667-383-8 100%

    Nkosi, N 7308-888-9 100%Singh, Yeshvir 7308-490-5 100%

    Thuntsane, E 7294-747-0 100%

    Mulder, R 7303-318-9 100%

    Mkwanazi, S 7288-373-1 100%

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    EXECUTIVE SUMMARY

    This assignment delves into the changing socio-dynamic landscape given the

    growing rate of mobile and IT connectivity as well as the growing number of

    users on social media platforms, such as Twitter, Facebook, YouTube, Flickr and

    the like. The recent political uprisings on the African continent have hinted

    towards the use of social media tools to bring about socio-political change and

    either directly or indirectly challenge the leadership status quo.

    Many have refuted the claims of the impact of social media during the uprisings,

    such as Malcolm Gladwell who dismisses the relevant importance the media,

    academics and thought leaders have placed on its ability to influence leader

    behaviour or bring about any meaningful change (www.newyorker.com, 2010).

    However, the contrary views outweigh Gladwells views and, in our opinion, bare

    consideration. According to Fleishman (2003) leadership is an attempt at

    influencing the activities of followers to willingly cooperate through the

    communication process toward the attainment of some goals. The traditional

    view of leadership is its ability to influence follower behaviour. Thus, this

    assignment aims to explore the role of neo-social dynamics (social media) to

    influence leader behaviour, i.e. follower upward management of leaders.

    The assignment begins with a case study to determine social medias impact in

    Africa, contextualized but not limited to the Egyptian uprisings. It then proceeds

    to propose an alternative mind-map developed in assignment 1 and concludes

    with the development of an HR value proposition to generalize a leadership

    model for use by organizations.

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    TABLE OF CONTENTS

    1. The Case Study 4

    1.1 The Purpose of the Study 4

    1.2 Background of the Study 5

    1.3 Significance of the Study 5

    1.4 Research Methodology 6

    1.4.1 Theoretical Framework 6

    1.4.2 Data Collection 7

    1.4.3 Research Hypothesis 7

    1.4.4 Key Research Questions 7

    1.5 Conclusion 101.6 References 11

    2. Integration of the Case study Findings 12

    2.1 Introduction 12

    2.2 Assignment 1: Overview of the Leadership Model 12

    2.3 Leadership Mind Map Recommendation 14

    2.4 Conclusion 18

    3. The HR Value Proposition 19

    3.1 Definition 19

    3.2 HR Value Proposition Objectives 20

    3.3 A Systemic HR Mental Model 20

    3.4 Organisation Challenges Proposed 21

    3.5 Business Implications 22

    3.6 The HR Value Proposition- Application 22

    3.7 Conclusion 25

    3.8 References ( section 2 and 3) 26

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    I. THECASESTUDY

    1.1 Purpose of the Study

    Social media is a popular term to describe a variety of media tools that is

    suggested to have played an important role in recent political revolutions. In the

    recent events in North Africa, the role of social media has been best

    characterized as an enabler, facilitating rallies and galvanizing participants.

    Despite limited access to the Internet and limited freedom of expression and

    information, social media penetration is on the increase in Africa. Social networksare spoken of in villages, schools, and fast-growing cities where the middle

    classes are now demanding access to quick information (Marime Jamme, 2011).

    In the mid-1990s, as the use of mobile phones spread in much of the developed

    world, few thought of Africa as a potential market. Now, with more than 400

    million subscribers, its market is larger than North America's and is growing

    faster than in any other region.

    The most common social media tools are Facebook, Twitter, YouTube and

    relatively new social media sites like Diggs and Foursquare. The communication

    is in the form of status updates and ad hocstatements. While discussion may be

    limited, the dissemination of information has been seen as the most influential

    component of the upheavals in the Middle East and Northern Africa (MENA)

    region (uicifd.blogspot.com, 2011).

    The case study intends to explain the impact of neo-social dynamics on

    leadership within the context of the recent political uprisings. In doing so we

    propose three hypotheses:

    i. Social media creates the leaderless revolution in the digital age.

    ii. Social Media creates Citizen Journalism - freedom of speech for the

    oppressed.

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    iii. Social Media accelerates the rate of revolutions.

    1.2 Background of the Study

    The rate of technological and online communication advances suggest that

    organizations and governments can no longer suppress the spread of an idea,

    message, or of news occurring globally. The implication is that if one is able to

    connect to the Internet and express a view about a situation, then the information

    will be broadcasted. The recent events in North Africa may signal a way forward

    for the rest of the continent as technology becomes more easily accessible to

    more Africans. Calls for socio-political transformation heard on the streets of

    Tunisia and Cairo were echoed globally, rousing sympathetic support

    internationally. The revolutions in Tunisia and Egypt are extensively seen as

    being mobilized, organized, supported and driven through the use of social

    media tools such as Facebook, Twitter and mobile phone technology which

    allowed for extensive political expression and rallying against government

    corruption online and off the ground.

    1.3 Significance of the Study

    Traditionally, the greatest power that governments have held over their people

    has been that of information/freedom of speech. The promise that Internet

    connectivity brings to Africa is that people are now using the abundance of

    information for oversight of government and more interaction with administrations

    (J. Gossier, 2008). New communication technologies, especially social media via

    the Internet, have become important resources for the mobilization of collective

    action and the subsequent creation, organization and implementation of social

    movements around the world. Therefore, the impact of social media on current

    leadership dynamics requires exploration as the recent public demonstrations of

    rebellion have been underpinned by suggestions that social media has changed

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    the status quo on how Africans engage and share their views and are no longer

    being silenced by oppressive leadership with these (social media) tools in hand.

    1.4 RESEARCH METHODOLOGY

    The qualitative case study method is an effective tool for developing an

    understanding about a particular case, its features, and its impact. According to

    Stake (1994), "case study is defined by individual cases, not by the methods of

    inquiry used." As such, the goal of case study research is to understand the

    complexity of a case in the most complete way possible.

    The richness of data gathered through this method complements the articles

    theoretical framework and is required to answer the research questions. This

    case study will be an exploratory case study which is an attempt to understand

    what happened within cases by looking beyond descriptive features and studying

    the surrounding context. (www.capam.com)

    We categorize the Egyptian revolution in this study as the activities and

    conditions that led to and defined the anti-government protests that occurred

    between 25 January and 11 February 2011, ultimately leading to the resignation

    of Egyptian President Hosni Mubarak. Case researchers examine both common

    and unique features of a case, with an emphasis on its defining features (Stake,

    2005).

    1.4.1 Theoretical Framework

    Researchers may study a single case or multiple cases. In multiple case studies,

    researchers study cases in depth individually as well as look across cases for

    similarities and differences. (RWJF, 2008)

    Selected Cases

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    a. Social Media in the Arab World (Ghannam, J., 2011)

    b. Reasons Social Media contributed to the 2011 Egyptian Revolution

    (Chebib, N. & Sohail, R. 2011)

    1.4.2 Data Collection

    The above literature was selected because of its relevance to social media,

    leadership, information technology and the considerations made regarding the

    plausible causes of changes in the socio-political landscape. Other secondary

    sources originating from published online news reports were also analysed. Such

    secondary data were appropriate for this study because of both the nature of our

    analysis and the wealth of information available. The qualitative researcher often

    must use her or his judgment, based on a set of criteria, to decide how much and

    how long a case should be studied to aid in understanding (Creswell, 1998;

    Stake, 2005).

    1.4.3 Research Hypothesis

    This case study explores the impact of neo-socio (social media) dynamics on

    leadership in Africa in order to understand contemporary social movements. In

    pursuit of this goal, the analysis specifically seeks to establish support for the

    following hypotheses, which will be verified through the case study:

    I. Social media: creates the leaderless revolution in the digital age.

    II. Social media: creates Citizen Journalism - freedom of speech for the

    oppressed.

    III. Social media accelerates the rate of revolutions.

    1.4.4 Key Research Questions

    Three questions have been identified to guide the approach in solving the

    hypotheses:

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    i. Who led the protests in Egypt?

    ii. How was information regarding the revolt obtained and circulated?

    iii. What was the rate of protestor-mobilization and the speed of the

    outcome?

    i. Who led the protests in Egypt?

    To succeed, one of the essential characteristics of the revolution was that there were no

    leaders. Had there been leaders, it would have been far easier for the existing powers

    to target them for arrest or worse and thus decapitate the revolution. The absence of

    leaders made such a response impossible. Instead of a revolutionary leadership - a Che,

    or a Lenin, or even a Walesa (who was imprisoned many times) - there was no

    one. The only way to have contained the revolts was bloody crackdown on everyone on

    the streets - a path that Syria's Bachir al Asad seems to be following, perhaps imitating

    the grotesque example of his father, who had the town of Hama flattened after a

    rebellion there, killing perhaps 20,000. (carneross.com)

    ii. How was information pertaining to the revolt obtained and shared both

    locally and internationally?

    The concept of citizen journalism (also known as "public", "participatory",

    "democratic","guerrilla"or "street" journalism) is based upon public citizens playing an

    active role in the process of collecting, reporting, analysing, and disseminating news and

    information (www.wikipedia.com). New Media technologies such as social networking

    and media-sharing websites in addition to the increasing prevalence of mobile phones

    have made citizen journalism more accessible to people worldwide. Due to the

    availability of technology, citizens can often report breaking news more quickly than

    traditional media reporters. Notable examples of citizen journalism reporting from major

    world events are the Arab Spring. Hundreds of Arab activists, writers, and journalists

    have faced repercussions because of their online activities. (Gannum, 2011)

    In Egypt, blogger Abdel Kareem Nabil Soliman, known as Kareem Amer, was released

    in November 2010 after more than four years in prison and alleged torture for his

    http://en.wikipedia.org/wiki/Social_mediahttp://en.wikipedia.org/wiki/Social_mediahttp://en.wikipedia.org/wiki/Arab_Springhttp://en.wikipedia.org/wiki/Arab_Springhttp://en.wikipedia.org/wiki/Social_mediahttp://en.wikipedia.org/wiki/Social_media
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    writings that authorities said insulted Islam and defamed Mubarak.Soliman returned to

    writing his blog shortly after his release. In Syria, 19-year-old Tal al-Mallouhi was said to

    be the youngest Internet prisoner of conscience in the region and in December 2010

    marked her first year in prison, mostly incommunicado, for blogging through poetry abouther yearning for freedom of expression. (Gannum, 2011)

    In Bahrain, a social networking campaign has called for the release of blogger Ali

    Abdulemam who was imprisoned for allegedly posting false news on his popular site

    BahrainOnline.org. These are merely three of the scores of Arab Internet users across

    the region that have faced arrest and incarceration and other repercussions stemming

    from their online writings.Government challenges and other impediments, notably low

    broadband high-speed Internet penetration rates as a percentage of population, stand inthe way of wider and faster Internet access. According to the Arab Advisors Group, the

    top three countries in broadband adoption in the region as a percentage of population

    are the United Arab Emirates at 14 percent, followed by Bahrain at 12 percent, and

    Qatar at eight percent as of late 2009. (Gannum, 2011)

    In 2009, the Arab region had 35,000 active blogs and 40,000 by late 2010.Although

    Egypts interior ministry maintains a department of 45 people to monitor Facebook,

    nearly 5 million Egyptians use the social networking site among 17 million people in the

    region, including journalists, political leaders, political opposition figures, human rights

    activists, social activists, entertainers, and royalty who are engaging online in Arabic,

    English and French. (Gannum, 2011)

    111. Rate of protestor mobilization and the speed of the outcome

    The Egyptian Revolution began on 25 January 2011 and ended on 11February 2011

    lasting a total of 18 days, overthrowing the 30 year old rule of Mubarak. The JasmineRevolution in Tunisia, which ousted president Zine El Abidine Ben Ali, lasted 28 days.

    The Egyptian revolution succeeded in overthrowing the present regime in the shortest

    time period. (Chebbib and Sohail, 2011) As shown in figure 1 below, the Egyptian

    revolution is the second shortest revolution in terms of both the number of days it lasted

    and deaths.

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    FIGURE 1: Days of Revolutions and Deaths that occurred during those Revolutions

    1.3 Conclusion

    Hypothesis 1: Creates a Leaderless Rebellion

    The analysis above clearly indicates the lack of emergence of significant leaders in any

    of the revolutions. Revolutions ignited by passionate people having sufficient common

    ground and cause can mobilize a revolution which can be steered and sustained(without

    a leader) towards the achievement of the common goal.

    Hypothesis 2: Creates Citizen Journalism freedom of speech for the oppressed

    There is a symbiotic relationship between social media and citizen journalism on the one

    hand and traditional media on the other hand, in that they play off each other. Traditional

    media remains an essential vehicle for reaching a domestic and international audience.

    in that while social media played a tremendous role, especially in empowering freedom

    of speech, the impact of citizen journalism was limited and interest in the cause was

    catapulted only through traditional media coverage.

    Hypothesis 3: Results in Rapid Mobilization and Swift Results

    Revolutions can be short and bloody, or slow and peaceful. Each is different. The

    Egyptian revolution was one of the quickest and swiftest revolutions in history. The facts

    and figures have indicated that it was also a revolution with one of the lowest death

    tolls.The deaths and number of days for revolutions historically were far in excess of the

    3000 3000

    100 300 142448

    51 10 18 30

    Iman Tiananmen Indonesia Egypt Tunisa

    DEATHS DAYS

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    Egyptian revolution; were deaths ranged in the 3000s, the death toll in Egypt was

    documented at 300.

    III. REFERENCES

    1. Ghannam, J (2011): Social Media in the ArabWorld

    2. Chebib, N. and Sohail, R. (2011): The Reasons

    Social Media contributed to the 2011 Egyptian

    Revolution

    3. Cogburn, D. and Espinoza-Vasquez F. (2011):

    From Networked Nominee to Networked Nation.

    4. Abroms, L. and Lefebvre, R. (2009): Obamas

    Wired Campaign: Lessons for public health

    communication

    5. http://www.carneross.com/blog/2011/04/23/necessity-leaderless-revolutions)

    6. Yin, Robert K.,Applications of Case Study

    Research, Sage, Thousand Oaks, CA, 2003a,

    2nd

    7. edition.

    8. Yin, Robert K., Case Study Research: Design

    and Methods, Sage, Thousand Oaks, CA,

    2003b,3rd edition.

    9. Yin, Robert K., The Abridged Version of Case

    Study Research, in Leonard Bickman and Debra

    J.

    10. Rog (eds.), Handbook of Applied Social

    Research, Sage, Thousand Oaks, CA, 1998, pp.

    229-259.

    11. Stake, R. E. (2005). Qualitative case studies. InN. K. Denzin & Y. S. Lincoln (Eds.), The Sage

    handbook of qualitative research (pp. 443466).

    Thousand Oaks, CA: SAGE.

    12. Glesne, C. (2006) Becoming Qualitative

    Researchers (3rd ed.). Boston: Allyn and Bacon.

    13. Gladwell M. 2010

    http://www.newyorker.com/reporting/2010/10/04/

    101004fa_fact_gladwell( date accessed:

    08/07/2012)

    14. Bohler-Muller N. and van der Merwe, C. 2011The potential of social media to influence socio-

    political change on the African Continent. Africa

    Institute of South Africa

    15. Toni Ahlqvist, Asta Bck, Sirkka Heinonen,

    Minna Halonen, (2010),"Road-mapping the

    societal transformation potential of social media",

    foresight, Vol. 12 Iss: 5 pp. 3

    16. Andr-Michel Essoungou, 2010 A social media

    boom begins in Africa,

    www.un.org/en/africarenewal/vol24no4/socialme

    diabom.html (date accessed 17 July 2012)

    17. Gossier, J. 2008 Social Media in Africa, Part 3:

    Democracy

    18. carneross.com/blog/2011/04/23/necessity-

    leaderless-revolution

    SECTION 2

    http://www.newyorker.com/reporting/2010/10/04/101004fa_fact_gladwellhttp://www.newyorker.com/reporting/2010/10/04/101004fa_fact_gladwellhttp://www.readwriteweb.com/archives/africa_democracy_social_media.phphttp://www.readwriteweb.com/archives/africa_democracy_social_media.phphttp://www.readwriteweb.com/archives/africa_democracy_social_media.phphttp://www.readwriteweb.com/archives/africa_democracy_social_media.phphttp://www.newyorker.com/reporting/2010/10/04/101004fa_fact_gladwellhttp://www.newyorker.com/reporting/2010/10/04/101004fa_fact_gladwell
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    2. INTEGRATION OF CASE STUDY FINDINGS -RECOMMENDATIONS FOR LEADERS

    ASSESSED INASSIGNMENT 1

    2.1 Introduction

    Emerging from an exploration of the likely impacts of social medial in the context

    of the political uprisings explored in question 1 above is the indirect threat neo-

    socio dynamics pose to autocratic governance, as was the case with Hosni

    Mubarak resigning from presidential office, a mere 18 days after the start of the

    Egyptian protests (bbc.co.uk 2011).This is in stark contrast to the rise of US

    President Barrack Obama, whose 2008 election campaign has been heralded as

    a win for social media, after a landslide victory which sought to convert

    everyday people into engaged and empowered volunteers, donors and

    advocates through social media (Edelman, 2009). Comparing these two leaders

    on the basis of their style of governance suggests polar opposite styles from

    democratic to autocratic leadership. Autocratic leaders are those who make

    unilateral decisions and issue instructions. It is often criticized because it negates

    relationships between followers that allow decisions to be made by leaders and

    followers (Ehow.com), whereas democracy advocates inclusive and engaging

    governance.

    Following on from the mind map developed in assignment 1, we recommend an

    alternative leadership approach for the business leaders surveyed.

    2.2 Assignment 1: Overview of the Leadership Model

    In the first leadership assignment, three leaders were surveyed and a leadership

    mind map was developed. The mind map sought to establish which leadership

    theory these three leaders subscribed to.

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    As per table 1 (below), all three leaders subscribe to the power and influence

    theory of leadership, path-goal theory, leader-member exchange theory (LMX),

    ethical leadership, transformational leadership, servant leadership, spiritualleadership and authentic leadership. A fundamental leadership trait amongst

    these surveyed leaders was found to be building and maintaining trust.

    THEORY MS. MABUNDA MS. GOVIND MR. SIBEKO

    1. Power &

    Influence

    Legitimate (Positional)

    Expert (Personal)

    Reward (Positional)

    Referent + Expert (Personal)

    Reward (Positional)

    Expert (Personal)

    2. Path-goal Supportive Directive Directive

    3. LMX High LMX High LMX High LMX

    4. Transformational Yes Yes Yes

    5. Ethical Yes Yes Yes

    6. Servant Yes No No

    7. Spiritual Yes Yes Yes

    8. Authentic Yes Yes No

    Table 1 Leader Theory Summation of Surveyed Leaders (SAND011A, 2012)

    Image 1, below, provides a graphic of the leadership mind map that was

    developed in assignment one. The leaders used a combination of both positional

    and personal power. The mind map also showcased adaptations to this power

    and influence model, with various modes of leadership also complementing their

    primary leadership model.

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    Image 1 Assignment 1 Leadership Mind Map (SAND011A, 2012)Trust formed the core of their leadership character, without which these leaders

    believe that their effectiveness to lead would have been severely impeded. We

    believe this to be true as followers are more inclined to trust people when they

    understand their leaders values and observe that their actions are congruent

    with those values because they can reliably predict how their leaders will act. As

    such, leaders of high character instil trust. However, given their reliance on

    positional and personal power, an alternative leadership model is proposed

    below.

    2.3 Leadership mind-map Recommendation

    The demands of neo-socio dynamics on leadership is such that leaders must

    develop a broad range of personal and professional competencies in order to

    meet the challenges they will inevitably face. Tomorrows leaders must stay

    abreast of the impact of the social media curve. Primary and secondary

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    stakeholders now have access through social media applications to mobilize and

    either do great harm to an organisation or support its efforts. This was recently

    illustrated by the Woolworths vs. Frankies dispute. According to Frankies,Woolworths, had sabotaged its attempts to sell its product and claim ownership,

    by selling an imitation of its drink. Supporters of Frankies mobilized and retaliated

    on social media spaces such as Facebook and Twitter. The response by

    Woolworths was plagued by its inability to understand the social media playing

    field. Instead of engaging followers, Woolworths executives chose to release

    press statements that appeared to only exacerbate the situation. The Advertising

    Standards Authority ruled in favour of Frankies, and Woolworths was ordered to

    remove its copy-cat version of the soft drink. (Moneyweb, 2012) In a recent

    Sunday Times Article (Aug, 2012) Woolworths CEO, Ian Moir notes that the

    company was surprised at how quickly outrage was spread in the Frankies soft

    drink saga. In response to his own leadership displayed during the

    communication crisis, he stated that it (the social media outrage) was a problem

    within an hour which made it difficult to manage(C. Barron, 2012). It is safe to

    conclude that had Woolworths leadership endorsed a different response,

    strengthened its stakeholder engagement and understood the immediate impact

    of social networking, they would have adopted an alternative approach to

    engaging their stakeholders.

    i. Authentic-Transformational Leadership

    The case study (in section 1) and the preceding Woolworths example highlights

    the need for open leadership. According to Charlene li (2011) By embracingsocial media, leaders can transform their organizations to become more effective,

    decisive, and ultimately more profitable in this new era of openness in the

    marketplace. Whilst no model and no list of leadership behaviours or

    competencies can fully capture all the critical components of stakeholder

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    management; our group has selected the prescriptive, authentic-transformational

    leadership model, for leaders to align themselves to.

    Transformational leadership describes a leader who motivates followers to

    performance beyond expectations, but has often been attacked for its potential to

    be abused. Bass and Steidlmeier (1999) point out that the ethics of

    transformational leadership have been challenged. For example, transformational

    leaders: (1) can use impression management behaviours that pave the way to

    immoral behaviour (Snyder,1987) and (2) manipulate followers into losing more

    than they gain (White & Wooten, 1986). To mitigate these shortcomings, an

    additional form of leadership has been proposed to complement transformational

    leadership i.e. authentic leadership (Nichols, Thomas W., 2008).

    Authentic leadership is an over-arching concept that aims to include

    transformational leadership and all positive forms of leadership (Avolio and

    Gardner 2005). At the heart of authentic leadership is the concept of

    ethicality.The concept of authenticity may contribute to the transformational

    leadership paradigm, producing an ideal form of leadership. Whilst many pseudo-

    transformational leaders are able to exert control over their followers, their lack of

    character and ethical behaviour ultimately bring harm to their followers. By acting

    on a core set of benevolent values, authentic transformational leaders, bring out

    the best in their followers and spur them on to do great things for society.

    ii. Behaviour of Authentic-Transformational Leaders

    Ethics are a basic component of authentic transformational leadership. Image 2

    (below), demonstrates that these kinds of leaders engage in:

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    Idealized influence: Serving as examples of excellence and character;

    creating a climate of high standards for task performance and ethical

    choices. Inspirational motivation: Developing and communicating an ambitious,

    exciting and morally good vision for the group to achieve; involving

    followers, empowering them and encouraging their development.

    Intellectual stimulation: Fostering open discussion of the vision, its

    implementation and encouraging new ideas from their followers without

    criticizing them publicly for their mistakes.

    Individualized consideration: Demonstrating genuine concern for

    followers' development; provide coaching and mentoring and rewarding

    followers for creativity and innovation.

    Image 2 Transformational Leadership Model (Management Study Guide, 2009)

    iii. Advantages of Authentic Transformational Leaders

    The advantages become apparent when demonstrating ethical behaviour and

    personal character while performing the four types of leadership behaviours in

    Image 1. Many researchers have proposed outcomes relating to authentic,

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    transformational, ethical, and charismatic behaviours. These include trust

    (Robinson, 1996), organizational commitment (Conger, 1999), satisfaction

    (George & Jones, 1997), performance (Howell & Avolio, 1993) and organizationalcitizenship behaviour (Gardner & Schermerhorn, 2004). Additionally, the above

    authors suggest that:

    These leaders develop higher levels of self-awareness.

    They lead followers through personal development and organizational

    change.

    They are able to persuade them to step out of their comfort zones, take a

    leap of faith and follow their leaders into the unknown.

    These also support a recent HBR discussion amongst Harvards leadership

    academia, who advocate the need for an increased level of self-awareness

    amongst business leaders, effective diversity management and forging greater

    partnerships with ALL stakeholders, both consumers and suppliers alike in the

    age of a more connected and socially (pro) active business environment.

    2.4 Conclusion

    Authentic-transformational leaders are those leaders who are able to

    intellectually stimulate, inspirationally motivate and ideally influence their

    followers in an ethical manner. They are transparent in their dealings and ethical

    in their actions and it is their authenticity that removes the potential for them to

    abuse this leadership style.(Bass and Steidlmeier(1999).

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    SECTION 3

    THEHRVALUEPROPOSITION-RECOMMENDATIONS TO MITIGATE THE IMPLICATIONS

    OF THE CASE STUDY FINDINGS THROUGH THE USE OF HR VALUE PROPOSITIONS

    3. HR Value Proposition

    3.1 Definition

    Human Resource, HR, professionals add value when their work aids an

    organization to achieve its goals. It is not the design of a program or declaration

    of policy that matters the most, but what recipients gain from these actions

    (Success360degree.com). In a world of increasingly scarce resources, activities

    that fail to add value are not worth pursuing. The HR value proposition means

    that HR practices, departments and professionals produce positive outcomes for

    key stakeholders - employees, line managers, customers, and investors. (Amerin,

    2005)

    According to David Ulrich (2005) HR needs to be able to show howtheir activities

    create value for key stakeholders. He asserts that HR must have a direct line of

    sight to the market place such as the customers who buy products and services

    and to the shareholders who provide capital and that HR must be framed as a

    source of competitive advantage. He states that ultimately HR professionals

    need to be able to spell out how they provide a unique and powerful perspective

    of the linkages between employee commitment, customer attitudes and investorreturns. (Harvard Business School Working Knowledge, 2005)

    The role of a leader in an organisation is to lead change, lead transformation,

    lead teams and lead engagement. This process is often a learning on the part of

    the leader. For this reason, leadership branding is often part of the HR value

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    Page | 20

    proposition due to the fact that HR is the custodian of learning and development

    within an organisation.

    3.2 HR Value Proposition Objectives

    HR needs to be able to show how their activities create value for key

    stakeholders (i.e. the business, customers, employees, investors)

    HR must have a direct line of sight to the market place such as the

    customers who buy products and services and to the shareholders who

    provide capital (a suggestion of a strong market orientation).

    HR professionals must align practices with the requirements of internal

    and external stakeholders (operating in a silo is no longer suitable).

    HR professionals must acquire the personal knowledge and skills

    necessary to link HR activity to stakeholder value.

    HR professionals need to be able to spell out how they provide a unique

    and powerful perspective of the linkages between employee commitment,

    customer attitudes and investor returns.

    3.3 A Systemic HR Mental Model

    HR needs to frame a new mental model that will make others take notice of and

    acknowledge the profound and sustainable benefits HR brings to organisations in

    the new economy. Such a mental model must form the strategic framework that

    provides HR professionals with the evidence that HR is truly adding value to key

    stakeholders. Once developed, a systemic HR mental model will provide thestrategic framework that enables HR professionals to make significant and

    tangible contributions to business performance. For instance, HR professionals

    will be able to use these models to economically justify their initiatives, advise

    where the business is at risk, highlight opportunities to continually improve

    performance and most importantly, show how they add to stakeholder value. This

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    Page | 21

    conclave will provide a platform where eminent HR professionals will discuss the

    issues that organizations need to handle in order to transform the role of HR and

    aid organizations to gain and sustain competitive advantage. (www.ksom.ac.in)

    The HR Value Proposition, which was developed by Dave Ulrich in

    2005,expressesfivekey elements for the value creation activities of HR, namely:

    1. Knowing external business realities

    2. Serving Internal and External Stakeholders

    3. Creating HR Best Practices

    4. Building HR Resources

    5. Ensuring HR Professionalism

    Figure 1 HR Value Proposition Template (D. Ulrich 2005)

    3.4 ORGANIZATIONAL CHALLENGES PROPOSED

    http://www.ksom.ac.in/http://www.ksom.ac.in/
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    Page | 22

    The HR Value proposition mind map (Table 1) speaks to challenges

    organisations may be facing. Social media connectivity and activism can impact

    business relations both internally (employee relations) and externally (customerrelations). We therefore propose two examples of this for a generic Company X:

    1. Employees who are dissatisfied with autocratic, heavy-handed leadership

    within an organisation; and

    2. customer online queries or complaints are being sluggishly attended to,

    resulting in poor customer service levels.

    3.5 Business Implications

    1. Employees could take to social media and discuss amongst themselves

    their dissatisfaction with their leaders resulting in lower levels of staff

    morale, productivity and insubordination (borne out of frustration and on-

    going discussions in and amongst disgruntled employees). The recent

    Marikana Mining tragedy, although still under investigation, could

    potentially point toward employee mobilization (which may have been

    aided by social media interaction such as Blackberry messenger BBM,

    or possibly Facebook engagement) and possibly suggest how three

    thousand employees mobilized to the exclusion of their own union leaders,

    who purport not to have known about the impending strike action.

    2. Customers who sense that company X is not engaging speedily and

    effectively to their queries or complaints may view the companys

    indifference as a sign of it not being customer oriented and they may

    retaliate on social media platforms. The online conversation could inform

    new customers and other existing customers of the companys level of

    degree of engagement as such impacting business performance.

    3.6 The Value Proposition- Application

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    The HR Value Proposition will address the issues in the two examples cited

    above that will result in improvement or a turnaround strategy. The systemic

    mind map model will seek to address the first two of the elements of Ulrichs HRvalue proposition namely,

    1. Knowing external business realities; and

    2. Serving Internal and External Stakeholders.

    The reason for choosing the above two elements is because neo-socio dynamics

    (social media) suggests (1) a new and evolving external business reality in the

    form of online and mobile phone technology, its connectivity, user activity, and

    continued global growth in online social engagement and (2) serving internal and

    external stakeholders, who are now seemingly more connected and willing to

    voice their dissatisfaction, implies that HR needs to re-orientate its value

    proposition in light ofhowand where internal and external stakeholders are now

    having their conversations, which is online, in real time, sporadic, and

    transparent.

    As such the Value Proposition should aim to:

    Create market value for investors by increasing intangibles.

    Increases customer share by connecting with target customers.

    Help line managers deliver strategy by building organisation

    capabilities.

    Clarify and establish an employee value proposition and enhance

    individual abilities.

    Improve the line managers ability to understand external businessrealities.

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    HR VALUEPROPOSITION

    ELEMENT

    HRTRANSFORMATIO

    N CRITERIA

    HR INTERVENTION HR VALUEPROPOSITION

    Knowingthe external

    businessRealities

    Article I.

    AND

    Article II.

    Serving

    externaland internalstakeholder

    s

    Create marketvalue forinvestors by

    increasingintangibles.

    Increasescustomer shareby connectingwith targetcustomers.

    Helps linemanagersdeliver strategy

    by buildingorganisationcapabilities.

    Clarifies andestablishes anemployee value

    proposition andenhancesindividualabilities.

    Improve the linemanagers abilityto understandexternalbusiness realties

    The experience, level,function, previousmanagement education,current challenges faced

    and demographicbackground of the potentialparticipants needs to beconsidered when settingthe objectives so that theprogramme is maderelevant to the participantas well as the organisation.Leadership developmentneeds may be carried outat this time which arelinked to the strategicobjectives and

    competencies needed fororganisational success.

    Based on the results ofassessments they will benominated to go oncourses to close thecompetency gap.

    A suitable audiencewill be selected

    An evaluation system andcorresponding actions toreward success andimprove on deficienciespreferably the KirkpatrickModel in which to gaugeself-development ofleaders; their ability tocontribute to the teamsthey lead; and which helpthem contribute to thebusiness and strategicchange.

    The basket of offeringsfrom a developmentperspective and

    leadership programmewill be:

    1. EmotionalIntelligence

    2. Resilience3. Customer

    1. Clear focusoncustomer

    satisfactionandmeeting theneeds ofthecustomer.

    2. Improvedstaffretention

    3. Loweredstaff

    turnover4. Increased

    productivity5. Display of

    effectiveleadershipandmanagerialskills

    6. Effectiveproblem

    solving anddecision-making.

    7. Analyseandintegrateinformationand factsanddemonstrate

    performance andchange inbehaviour

    8. Makedecisive

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    Page | 25

    Table 1: HR Value Proposition Mind Map

    Generic Organization X3.7 Conclusion

    The business world shapes leaders, pushing them to adapt and change in the

    face of social technologys revolutionizing impact. Social media has connected,

    networked and empowered employees, customers, partners and investors and all

    stakeholders of the company globally. The change has been so rapid that leaders

    are increasingly caught unprepared(Barry Libert and Sally Ourieff 2012).

    To succeed, and even just to survive, leaders must evolve as todays

    technologies are changing. Social, mobile and cloud technologies force savvy

    businesses to become open, transparent, and inclusive organizations with

    stakeholders. Leaders must create new frameworks to integrate their

    understanding of social and mobile technologies into their leadership skills and

    management teams must recruit candidates equipped with these new capabilities.

    Be Open, Be Transparent, Be Authentic are the current leadership mantras, yet

    companies often push back according to Charlene Li (2011). Traditionally

    Orientation4. Problem solving5. Analytical Skills

    6. Communication7. Networking8. Coaching9. MentoringAnalytical

    skills.10. Communication11. Networking

    andproactivedecisions

    9. Clear anddetailedwrittencommunication skills.

    10. Clear focusonnetworkingwith all keystakeholders.

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    Page | 26

    business is premised on the concept of control, yet the new world order (neo-

    socio dynamics) demands openness.

    _______________________________________________________

    3.8 REFERENCES - SECTION 2 AND 3

    1. Aughton P. 2005, Mapping the HR Value Proposition

    2. Augie Ray May 11, 2010; (http://blogs.forrester.com/augie_ray/10-05-11-

    seven_things_your_organization_must_do_because_social_media)

    3. Barron, C. 2012: A social media shock for Woollies, Sunday Times Business

    Times Aug 19th 2012 pg6.

    4. Barry Libert and Sally Ourieff 2012,Recruiting and Developing Great Teams in

    the Facebook Age , https://www.bluesteps.com/blog/Recruiting-and-Developing-

    Great-Teams-in-the-Facebook-Age.aspx (date accessed: July 28 2012)

    5. Bass, B. M. & Steidlmeier, P. (1999). Ethics, character, and authentic

    transformational leadership behaviour. Leadership Quarterly, 10(2): 181-217.

    6. http://dssresources.com/faq/index.php?action=artikel&id=225

    7. http://www.ccl.org/leadership/pdf/research/creatingGovernmentLeaders.pdf

    8. http://www.ccl.org/leadership/pdf/research/futureTrends.pdf

    9. http://www.ehow.com/list_6713655_effects-autocratic-leadership.html

    10. http://www.highwayafrica.com/media/Citizen_Journalism_and_Democracy_Book.

    pdf

    11. Li, C (2011) Open Leadership: How Social Technology Can Transform How You

    Leadhttp://www.charleneli.com/open-leadership/ date accessed July 16th, 2012

    12. Nichols, Thomas W.. Authentic transformational leadership and implicit

    leadership theories.. Denton, Texas. UNT Digital Library.

    http://digital.library.unt.edu/ark:/67531/metadc9056/. Accessed July 16, 2012.

    http://blogs.forrester.com/augie_ray/10-05-11-seven_things_your_organization_must_do_because_social_mediahttp://blogs.forrester.com/augie_ray/10-05-11-seven_things_your_organization_must_do_because_social_mediahttp://blogs.forrester.com/augie_ray/10-05-11-seven_things_your_organization_must_do_because_social_mediahttp://blogs.forrester.com/augie_ray/10-05-11-seven_things_your_organization_must_do_because_social_mediahttps://www.bluesteps.com/blog/Recruiting-and-Developing-Great-Teams-in-the-Facebook-Age.aspxhttps://www.bluesteps.com/blog/Recruiting-and-Developing-Great-Teams-in-the-Facebook-Age.aspxhttps://www.bluesteps.com/blog/Recruiting-and-Developing-Great-Teams-in-the-Facebook-Age.aspxhttps://www.bluesteps.com/blog/Recruiting-and-Developing-Great-Teams-in-the-Facebook-Age.aspxhttp://dssresources.com/faq/index.php?action=artikel&id=225http://www.ccl.org/leadership/pdf/research/creatingGovernmentLeaders.pdfhttp://www.ccl.org/leadership/pdf/research/futureTrends.pdfhttp://www.ehow.com/list_6713655_effects-autocratic-leadership.htmlhttp://www.highwayafrica.com/media/Citizen_Journalism_and_Democracy_Book.pdfhttp://www.highwayafrica.com/media/Citizen_Journalism_and_Democracy_Book.pdfhttp://www.charleneli.com/open-leadership/http://digital.library.unt.edu/ark:/67531/metadc9056/http://digital.library.unt.edu/ark:/67531/metadc9056/http://www.charleneli.com/open-leadership/http://www.highwayafrica.com/media/Citizen_Journalism_and_Democracy_Book.pdfhttp://www.highwayafrica.com/media/Citizen_Journalism_and_Democracy_Book.pdfhttp://www.ehow.com/list_6713655_effects-autocratic-leadership.htmlhttp://www.ccl.org/leadership/pdf/research/futureTrends.pdfhttp://www.ccl.org/leadership/pdf/research/creatingGovernmentLeaders.pdfhttp://dssresources.com/faq/index.php?action=artikel&id=225https://www.bluesteps.com/blog/Recruiting-and-Developing-Great-Teams-in-the-Facebook-Age.aspxhttps://www.bluesteps.com/blog/Recruiting-and-Developing-Great-Teams-in-the-Facebook-Age.aspxhttp://blogs.forrester.com/augie_ray/10-05-11-seven_things_your_organization_must_do_because_social_mediahttp://blogs.forrester.com/augie_ray/10-05-11-seven_things_your_organization_must_do_because_social_media
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    13. Transformational Leadership theory

    http://managementstudyguide.com/transformational-leadership.htm date

    accessed 16th July 2012

    14. Ulrich D, 2005, HRs New Mandate: Be a strategic player,

    http://hbswk.hbs.edu/archive/4861.html (date accessed: 30/07/2012)

    Images: 2012 (Twitter) Twitter Inc.,

    (Facebook) Facebook Corp,

    (YouTube) Google Inc.


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