Leadership

AVON Case Study.

What is leadership?
A

leader is one who inspires, motivates

and leads people to accomplish
organizational goals

Guiding people
Leading people
Influencing people
Commanding people

LEADERSHIP STYLES

Autocratic (Authoritarian)
Bureaucratic
Democratic
Coercive
Transactional
Transformational
Laissez-Faire

1. Democratic/
Participative Leadership
Style

When to use Democratic

Leadership Style?

Team Agreement is needed

Greater motivation and

commitment

Knowledgeable and skillful

team members

Limitation of Democratic
Leadership Style

It is a time consuming
affair

Bureaucratic

Manager manages by the book

Everything must be done according to

procedure or policy
If it isnt covered by the book, the
manager refers to the next level
above him or her
Police officer more than leader

When to use

Bureaucratic
Performing routine tasks
Need for standards/procedures
Use of dangerous or delicate equipment
Safety or security training being conducted
Tasks that require handling cash

Who are

Bureaucratic
Leaders?

2. Autocratic Leadership
Style

When to use Autocratic

Leadership Style?

When quick decisions are

needed

No need for others input

Team agreement is not

necessary

When high level of

management control is
needed

Limitations of Autocratic
Leadership

Employees cannot
question decisions

Little opportunity to
give suggestions

Coercive
Power from a persons authority to punish
Most obvious types of power a leader has.
Good leaders use coercive power only as a
last resort:
In todays sophisticated and complex workplace,
excessive use of coercive power unleashes
unpredictable and destabilizing forces which
can ultimately undermine the leader using it.

When to use
Coercive
To meet very short term goals
When left with no other choice
In times of crisis

Who are
Coercive
Leaders?

Youre Fired!

Transactional
Motivate followers by appealing to their own
self-interest
Motivate by the exchange process.
EX: business owners exchange status and wages for
the work effort of the employee.

Focuses on the accomplishment of tasks &

good worker relationships in exchange for
desirable rewards.
Encourage leader to adapt their style and
behavior to meet expectations of followers

When to use
Transactional
Leader wants to be in control
When there are approaching
deadlines that must be met
Relationship is short term

Transformational
Charismatic and visionary
Inspire followers to transcend their selfinterest for the organization
Appeal to followers' ideals and values
Inspire followers to think about problems
in new or different ways
Common strategies used to influence
followers include vision and framing

Transformational cont.
Instils feelings of confidence, admiration
and commitment
Stimulates followers intellectually,
arousing them to develop new ways to
think about problems.
Uses contingent rewards to positively
reinforce desirable performances
Flexible and innovative.

When to use
Transformational
When leaders want members to be an
active part of the organization and
have ownership to it
When leaders are building a sense of
purpose
When the organization has a long term
plan
When people need to be motivated

3. Laissez-Faire/ Free
Rein Leadership Style

When to use Laissez Faire/

Free Rein Style?

When the team is highly

capable

When team members are

able to analyze the
situation

When close monitoring of a

decision is not needed

When there is full trust and

confidence in the team
members

Limitations of Laissez Faire/

Free Rein Leadership Style

Not suitable for lesser

experienced employees

Lack of motivation

Poor productivity

What are the factors for

selecting leadership
style?

Objectives that need to be

achieved

Followers

Situation

Apply the appropriate

leadership style and
techniques

Avon Company
- Beauty supply company that believes in "championing
economic empowerment and improving the lives of women
around the world.
- Avon has built itself up to be the fifth largest beauty
supply company in the world, Using a multi-level
marketing structure (Avon ladies)

Andrea Jung

Avon's first female CEO in 2001 since then she has built
the company to the fifth largest beauty supply company
in the world.
Orchestrates Avons Makeover -adjusts her cultural
beliefs and differences to reconstruct Avon and
implement successful changes.

Jung was executive vice president of Neiman Marcus, responsible for all of womens
apparel, accessories, and cosmetics.
Before that, she was senior vice president, general merchandising manager, for I. Magnin.
Jung joined Avon Products, Inc. in 1994 as the company's president in its product
marketing group.
She became president of global marketing in 1996 and executive vice president/president
of global marketing and new business in 1997.
Her responsibilities at that time centered primarily around market research, joint ventures
and strategic planning.
She then became president and chief operating officer, with responsibility for all business
units of Avon worldwide.
She has been on the company's board of directors since 1998.
In November 1999, Jung was promoted to chairman of the board and chief executive
officer.
In the case of Avon, the leadership style of Andrea Jung is perceived to be pure
manifestations of her own unique and effectual characteristics as a leader.
her leadership style comprises her dedication, essential knowledge in the business industry,
optimistic morals and trust with her people in achieving success.

key elements of Jung's

leadership style
As such, the Avon's current Chief Executive Officer Andrea
Jung evidently portrays the characteristics of a truthful
transformational leader as she has been effective in leading
and saving the entire organization from its previous
condition. The less, she is truly transformational for she has
drawn a better financial position

Andrea Jung is the quintessential

transformational leader. Jung
showcases her transformational
leadership style through her

key elements of Jung's

leadership style
Andrea Jung is the quintessential transformational
leader. Jung showcases her transformational
leadership style through her
charisma
delegation of authority
consideration of subordinates
ability to constantly modify the
organizational structure of Avon.

How closely Jung's leadership

charismatic and transformational
Jungs charisma is seen in the strong passion
she has for Avon.
This passion was clearly manifested when Jung
turned down a CEO position at another company
to remain the number two person at Avon.
The genuine love that Jung has for Avon and its
impact on society serves as a motivational
leadership tool.
The influence of Jungs positive attitude
toward Avon promotes an atmosphere of
cooperation and teamwork.

How closely Jung's leadership

charismatic and transformational

Jung is firm believer in delegating authority. An example of Jungs trust in

delegation was seen in her 2001 appointment of Susan Kropf to COO. Despite
Kropfs young age, 31, Jung believed she was the right woman for job. Jungs
instincts proved to be correct, as Kropf saved Avon roughly $460 million.
Jung decided to increase representatives commission payouts. This
action is a clear example of her consideration of subordinates and Jungs
transformational leadership style.

Strong vision
Deep knowledge

Neo charismatic theories she present

Her communication style is another aspect to her

leadership style that must be observed. Its relaxed and
avoids aggression, but it always makes its intentions clear.

Her values are clear, easy to come through, and can be found
in many of her words and deeds. Time and time again, Jung
has proven herself to be someone with a keen open-mind, an
ability to retain a sense of humility in the face of staggering
success, and a natural inclination to be respectful of
employees and competitors.

Involve employees in decision making

The leader entrusts decision making to an
employee of a group of employees

How Far Can You Go?

Andrea Jung has enjoyed a
considerable amount of success in
her corporate career. When you
consider the basics of her
leadership style, its not hard to
understand that success.

From her words about

leadership
Im a firm believer that when you have this job you
have the privilege and responsibility of influence
influence to every constituent, to your associates, to
your community, influence to your consumer. And that
influence can be translated into passion in the work. It
gets you through all the tough parts of the job the
extraordinary ability to change womens lives through
the work, said Andrea Jung, Chairman and CEO of
Avon Products Inc.

How Far Can You Go?