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9 AUTHENTIC LEADERSHIP

DESCRIPTION Authentic leadership represents one of the newer areas of leadership research. It focuses on whether leadership is genuine and “real.” As the title of this approach implies, authentic leadership is about the authenticity of leaders and their leadership. Unlike many of the theories that we have discussed in this book, authentic leadership is still in the formative phase of development. As a result, authentic leadership needs to be considered more tentatively: It is likely to change as new research about the theory is published.

In recent times, upheavals in society have energized a tremendous demand for authentic leadership. The destruction on 9/11, corporate scandals at companies like WorldCom and Enron, deliberate misinformation and claims of “fake news,” and civil unrest resulting from incidents of racial injustice have all created anxiety and uncertainty. People feel apprehensive and insecure about what is going on around them, and as a result, they long for bona fide leadership they can trust and for leaders who are honest and good. People’s demands for trustworthy leadership make the study of authentic leadership timely and worthwhile.

In addition to the public’s interest, authentic leadership has been intriguing to researchers: It was identified earlier in transformational leadership research but never fully articulated (Bass, 1990; Bass & Steidlmeier, 1999; Burns, 1978; Howell & Avolio, 1993). Furthermore, practitioners had developed approaches to authentic leadership that were not evidence based and so needed further clarification and testing. In attempts to more fully explore authentic leadership, researchers set out to identify the parameters of authentic leadership and more clearly conceptualize it, efforts that continue today.

Authentic Leadership Defined

On the surface, authentic leadership appears easy to define. In actuality, it is a complex process that is difficult to characterize. Among leadership scholars, there is no single accepted definition of authentic leadership. Instead, there are multiple definitions, each written from a different viewpoint and with a different emphasis (Chan, 2005).

One of those viewpoints is the intrapersonal perspective, which focuses closely on the leader and what goes on within the leader. It incorporates the leader’s self-knowledge, self-regulation, and self-concept. In their description of the intrapersonal approach, Shamir and Eilam (2005) suggest that authentic leaders exhibit genuine leadership, lead from conviction, and are originals. This perspective emphasizes the life experiences of a leader and the meaning one attaches to those experiences as being critical to the development of the authentic leader.

A second way of defining authentic leadership is as an interpersonal process. This perspective outlines authentic leadership as relational, created by leaders and followers together (Eagly, 2005). It results not from the leader’s efforts alone, but also from the response of followers. Authenticity emerges from the interactions between leaders and followers. It is a reciprocal process because leaders affect followers and followers affect leaders.

Finally, authentic leadership can be defined from a developmental perspective, which is exemplified in the work of Avolio and his associates (Avolio & Gardner, 2005; Gardner, Avolio, & Walumbwa, 2005b; Walumbwa, Avolio, Gardner, Wernsing, & Peterson, 2008). This perspective, which underpins the approaches to authentic leadership discussed in the following section, views authentic leadership as something that can be nurtured in a leader, rather than as a fixed trait. Authentic leadership develops in people over a lifetime and can be triggered by critical life events, such as a severe illness or a new career.

Taking a developmental approach, Walumbwa et al. (2008) conceptualized authentic leadership as a pattern of leader behavior that develops from, and is grounded in, the leader’s positive psychological qualities and strong ethics. They suggest that authentic leadership is composed of four distinct but related components: self-awareness, internalized moral perspective, balanced processing, and relational transparency (Avolio, Walumbwa, & Weber, 2009). Over a lifetime, authentic leaders learn and develop each of these four types of behavior.

Approaches to Authentic Leadership

Formulations about authentic leadership can be differentiated into two areas: (1) the practical approach, which evolved from real-life examples as well as the training and development literature; and (2) the theoretical approach, which is based on findings from social science research. Both approaches offer interesting insights about the complex process of authentic leadership.

Practical Approach

Books and programs about authentic leadership are popular today; people are interested in the basics of this type of leadership. Specifically, they want to know the “how to” steps to become an authentic leader. In this section, we discuss Bill George’s (2003) authentic leadership approach.

Bill George’s Authentic Leadership Approach.

The authentic leadership approach developed by George (2003; George & Sims, 2007) focuses on the characteristics of authentic leaders. George describes, in a practical way, the essential qualities of authentic leadership and how individuals can develop these qualities if they want to become authentic leaders.

Based on his experience as a corporate executive and through interviews with a diverse sample of 125 successful leaders, George found that authentic leaders have a genuine desire to serve others, they know themselves, and they feel free to lead from their core values. Specifically, authentic leaders demonstrate five basic characteristics: (1) They have a strong sense of purpose, (2) they have strong values about the right thing to do, (3) they establish trusting relationships with others, (4) they demonstrate self-discipline and act on their values, and (5) they are sensitive and empathetic to the plight of others (George, 2003).

Figure 9.1 Authentic Leadership Characteristics

Source: From Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value by Bill George, copyright © 2003.

Reproduced with permission of John Wiley & Sons, Inc.

Figure 9.1 illustrates five dimensions of authentic leadership identified by George: purpose, values, relationships, self- discipline, and heart. The figure also illustrates each of the related characteristics—passion, behavior, connectedness, consistency, and compassion—that individuals need to develop to become authentic leaders.

In his interviews, George found that authentic leaders have a real sense of purpose. They know what they are about and where they are going. In addition to knowing their purpose, authentic leaders are inspired and intrinsically motivated about their goals. They are passionate individuals who have a deep-seated interest in what they are doing and truly care about their work.

A good example of an authentic leader who exhibited passion about his goals was Terry Fox, a cancer survivor, whose right leg was amputated above the knee after a malignant tumor was discovered. Using a customized leg prosthesis, Terry attempted to run across Canada, from the Atlantic to the Pacific, to raise awareness and money for cancer research. Although he died before he finished his run, his courage and passion affected the lives of millions of people. He also accomplished his goals to increase cancer awareness and to raise money for cancer research. Today, the Terry Fox Foundation is going strong and has raised more than $800 million (Canadian) for cancer research (www.terryfox.org). Of the dimensions and characteristics in Figure 9.1, Terry Fox clearly demonstrated purpose and passion in his leadership.

Authentic leaders understand their own values and behave toward others based on these values. Stated another way, George suggests that authentic leaders know their “True North.” They have a clear idea of who they are, where they are going, and what the right thing is to do. When tested in difficult situations, authentic leaders do not compromise their values, but rather use those situations to strengthen their values.

An example of a leader with a strong set of values is Nobel Peace Prize laureate Nelson Mandela. Mandela was a deeply moral man with a strong conscience. While fighting to abolish apartheid in South Africa, he was unyielding in his pursuit of justice and equality for all. When he was in prison and was offered early release in exchange for denouncing his viewpoint, he chose to remain incarcerated rather than compromise his position. Nelson Mandela knew who he was at his core. He knew his values, and his leadership reflected those values.

A third characteristic of authentic leadership in the George approach is strong relationships. Authentic leaders have the capacity to open themselves up and establish a connection with others. They are willing to share their own story with others and listen to others’ stories. Through mutual disclosure, leaders and followers develop a sense of trust and closeness.

George argued that people today want to have access to their leaders and want their leaders to be open with them. In a sense, people are asking leaders to soften the boundary around their leadership role and to be more transparent. People want to have a trusting relationship with their leaders. In exchange, people are willing to give leaders greater loyalty and commitment.

As we discussed in Chapter 7 (leader–member exchange theory), effective leader–follower relationships are marked by high- quality communication in which leaders and followers demonstrate a high degree of mutual trust, respect, and obligation

toward each other. Leaders and followers are tied together in productive ways that go beyond the stereotypical leader–follower relationship. This results in strong leader–member relationships, greater understanding, and higher productivity.

Self-discipline is another dimension of authentic leadership and is the quality that helps leaders to reach their goals. Self- discipline gives leaders focus and determination. When leaders establish objectives and standards of excellence, self- discipline helps them to reach these goals and to keep everyone accountable. Furthermore, self-discipline gives authentic leaders the energy to carry out their work in accordance with their values.

Like long-distance runners, authentic leaders with self-discipline are able to stay focused on their goals. They are able to listen to their inner compass and can discipline themselves to move forward, even in challenging circumstances. In stressful times, self-discipline allows authentic leaders to remain cool, calm, and consistent. Because disciplined leaders are predictable in their behavior, other people know what to expect and find it easier to communicate with them. When the leader is self-directed and “on course,” it gives other people a sense of security.

Last, the George approach identifies compassion and heart as important aspects of authentic leadership. Compassion refers to being sensitive to the plight of others, opening one’s self to others, and being willing to help them. George (2003, p. 40) argued that as leaders develop compassion, they learn to be authentic. Leaders can develop compassion by getting to know others’ life stories, doing community service projects, being involved with other racial or ethnic groups, or traveling to developing countries (George, 2003). These activities increase the leader’s sensitivity to other cultures, backgrounds, and living situations.

In summary, George’s authentic leadership approach highlights five important features of authentic leaders. Collectively, these features provide a practical picture of what people need to do to become authentic in their leadership. Authentic leadership is a lifelong developmental process, which is formed and informed by each individual’s life story.

Theoretical Approach

Although still in its initial stages of development, a theory of authentic leadership is emerging in social science literature (see Kumar, 2014; Leroy, Anseel, Gardner, & Sels, 2015; Peus, Wescher, Streicher, Braun, & Frey, 2012). In this section, we identify the basic components of authentic leadership and describe how these components are related to one another.

Background to the Theoretical Approach.

Although people’s interest in “authenticity” is probably timeless, research on authentic leadership is rather recent. Luthans and Avolio (2003) published one of the first articles on the topic, focusing on authentic leadership development and positive organizational scholarship. Initial writing on authentic leadership gave rise to a leadership summit at the University of Nebraska. This summit was sponsored by the Gallup Leadership Institute and focused on the nature of authentic leadership and its development. From the summit, two sets of publications emerged: (1) a special issue of The Leadership Quarterly in the summer of 2005, and (2) Monographs in Leadership and Management, titled “Authentic Leadership Theory and Process: Origins, Effects and Development,” also published in 2005.

Interest in authentic leadership increased following 9/11, a time in which there was a great deal of societal upheaval and instability in the United States. The attacks of 9/11, widespread corporate corruption, and a troubled economy all created a sense of uncertainty and anxiety in people about leadership. Widespread unethical and ineffective leadership necessitated the need for more humane, constructive leadership that served the common good (Fry & Whittington, 2005; Luthans & Avolio, 2003).

In addition, researchers felt the need to extend the work of Bass (1990) and Bass and Steidlmeier (1999) regarding the meaning of authentic transformational leadership. There was a need to operationalize the meaning of authentic leadership and create a theoretical framework to explain it. To develop a theory of authentic leadership, researchers drew from the fields of leadership, positive organizational scholarship, and ethics (Cooper, Scandura, & Schriesheim, 2005; Gardner et al., 2005b).

A major challenge confronting researchers in developing a theory was to define the construct and identify its characteristics. As we discussed earlier in the chapter, authentic leadership has been defined in multiple ways, with each definition emphasizing a different aspect of the process. For this chapter, we have selected the definition set forth by Walumbwa et al. (2008), who defined authentic leadership as

a pattern of leader behavior that draws upon and promotes both positive psychological capacities and a positive ethical climate, to foster greater self-awareness, an internalized moral perspective, balanced processing of information, and relational transparency on the part of leaders working with followers, fostering positive self- development. (p. 94)

Although complex, this definition captures the current thinking of scholars regarding the phenomenon of authentic leadership and how it works.

Different models have been developed to illustrate the process of authentic leadership. Gardner et al. (2005b) created a model that frames authentic leadership around the developmental processes of leader and follower self-awareness and self- regulation. Ilies, Morgeson, and Nahrgang (2005) constructed a multicomponent model that discusses the impact of authenticity on leaders’ and followers’ happiness and well-being. In contrast, Luthans and Avolio (2003) formulated a model that explains authentic leadership as a developmental process. In this chapter, we will present a basic model of authentic leadership derived from the research literature that focuses on the core components of authentic leadership. Our discussion will examine authentic leadership as a process.

Components of Authentic Leadership.

In an effort to further our understanding of authentic leadership, Walumbwa and associates (2008) conducted a comprehensive review of the literature and interviewed groups of content experts in the field to determine what components constituted authentic leadership and to develop a valid measure of this construct. Their research identified four components: self-awareness, internalized moral perspective, balanced processing, and relational transparency (Figure 9.2). Together, these four components form the foundation for a theory of authentic leadership.

Description

Figure 9.2 Authentic Leadership

Sources: Adapted from “Authentic Leadership Development,” by F. Luthans and B. J. Avolio, in K. S. Cameron, J. E. Dutton, and R. E.

Quinn (Eds.), Positive Organizational Scholarship (pp. 241–258), 2003, San Francisco, CA: Berrett-Koehler; and “‘Can You See the

Real Me?’ A Self-Based Model of Authentic Leader and Follower Development,” by W. L. Gardner, B. J. Avolio, F. Luthans, D. R. May,

and F. O. Walumbwa, 2005, The Leadership Quarterly, 16, pp. 343–372.

Self-awareness refers to the personal insights of the leader. It is not an end in itself but a process in which individuals understand themselves, including their strengths and weaknesses, and the impact they have on others. Self-awareness includes reflecting on your core values, identity, emotions, motives, and goals, and coming to grips with who you really are at the deepest level. In addition, it includes being aware of and trusting your own feelings (Kernis, 2003). A meta-analysis including 11 studies and more than 3,500 respondents found that emotional intelligence is significantly and positively related to authentic leadership (Miao, Humphrey, & Qian, 2018). Leaders with high emotional intelligence are more self-aware and able to benefit from reflection on their past experiences to improve their authenticity.

When leaders know themselves and have a clear sense of who they are and what they stand for, they have a strong anchor for their decisions and actions (Gardner et al., 2005b). Other people see leaders who have greater self-awareness as more authentic. More recently, research has shown that self-knowledge and self-consistency also have a positive impact on followers’ satisfaction with leaders, organizational commitment, and perceived team effectiveness (Leroy et al., 2015; Peus et al., 2012).

Internalized moral perspective refers to a self-regulatory process whereby individuals use their internal moral standards and values to guide their behavior rather than allow outside pressures to control them (e.g., group or societal pressure). It is a self- regulatory process because people have control over the extent to which they allow others to influence them. Others see leaders with an internalized moral perspective as authentic because their actions are consistent with their expressed beliefs and morals.

Balanced processing is also a self-regulatory behavior. Although not completely clear from its title, it refers to an individual’s ability to analyze information objectively and explore other people’s opinions before making a decision. It also means avoiding favoritism about certain issues and remaining unbiased. Balanced processing includes soliciting viewpoints from those who disagree with you and fully considering their positions before taking your own action. Leaders with balanced processing are seen as authentic because they are open about their own perspectives but are also objective in considering others’ perspectives.

Relational transparency refers to being open and honest in presenting one’s true self to others. It is self-regulating because individuals can control their transparency with others. Relational transparency occurs when individuals share their core feelings, motives, and inclinations with others in an appropriate manner (Kernis, 2003). It includes the individuals showing both positive and negative aspects of themselves to others. In short, relational transparency is about communicating openly and being real in relationships with others.

Factors That Influence Authentic Leadership.

There are other factors such as positive psychological capacities, moral reasoning, and critical life events that influence authentic leadership (Figure 9.2). Individuals perceive the critical events that occur in their lives according to their capacities for confidence, hope, optimism, and resilience and for moral reasoning, which is related to how they cultivate the qualities needed to be authentic leaders.

The four key positive psychological capacities that have an impact on authentic leadership—confidence, hope, optimism, and resilience—have been drawn from the fields of positive psychology and positive organizational behavior (Table 9.1; Luthans & Avolio, 2003). Positive attributes predispose or enhance a leader’s capacity to develop the components of authentic leadership discussed in the previous section. Each of these attributes has a trait-like and a state-like quality. They are believed to be malleable and can be enhanced with training.

Table 9.1 Related Positive Psychological Capacities

Confidence Optimism

Hope Resilience

Source: Luthans, F., & Avolio, B. J. (2003). Authentic leadership development. In K. S. Cameron, J. E. Dutton, & R. E. Quinn (Eds.), Positive organizational scholarship

(pp. 241–258). San Francisco: Berrett-Koehler.

Confidence refers to having self-efficacy—the belief that one has the ability to successfully accomplish a specified task. Leaders who have confidence are more likely to be motivated to succeed, to be persistent when obstacles arise, and to welcome a challenge (Bandura, 1997; Luthans & Avolio, 2003). Hope is a positive motivational state based on willpower and goal planning (Luthans & Avolio, 2003). Authentic leaders with hope have goals they know can be accomplished; their hope inspires followers to trust them and believe in their goals. Optimism refers to the cognitive process of viewing situations from a positive light and having favorable expectations about the future. Leaders with optimism are positive about their capabilities and the outcomes they can achieve. They approach life with a sense of abundance rather than scarcity (Covey, 1990). Resilience is the capacity to recover from and adjust to adverse situations. It includes the ability to positively adapt to hardships and suffering. During difficult times, resilient people are able to bounce back from challenging situations and feel strengthened and more resourceful as a result of them (Sutcliffe & Vogus, 2003).

Moral reasoning is another factor that can influence authentic leadership (Figure 9.2). It is the capacity to make ethical decisions about issues of right or wrong and good or bad. Developing the capacity for moral reasoning is a lifelong process. Higher levels of moral reasoning make it possible for the authentic leader to make decisions that transcend individual differences and align individuals toward a common goal. They enable leaders to be selfless and make judgments that serve the greater good of the group, organization, or community. Moral reasoning capacity also enables authentic leaders to use this ability to promote justice and achieve what is right for a community. An extended discussion of how moral reasoning develops is provided in Chapter 13.

Critical life events are major events that shape people’s lives, and therefore also shape individuals’ development as authentic leaders (Figure 9.2). The events can be positive, like receiving an unexpected promotion, having a child, or reading an important book; or they can be negative, like being diagnosed with cancer, getting a negative year-end employment evaluation, or experiencing the death of a loved one. Critical life events act as catalysts for change. Shamir and Eilam (2005) argued that authentic leadership rests heavily on the insights people attach to their life experiences. Authentic leaders often express their genuine emotions and values through telling stories about their pasts—particularly stories that are sensitive, negative, and even embarrassing (Lemoine, Hartnell, & Leroy, 2019). When leaders tell their life stories, they gain greater self- knowledge, more clarity about who they are, and a better understanding of their role. By understanding their own life experiences, leaders become more authentic.

Critical life events also stimulate growth in individuals and help them become stronger leaders (Luthans & Avolio, 2003). For example, Howard Schultz (founder and chairman emeritus of Starbucks) tells a story about when he was little: His father, who was a delivery driver, fell and was hurt on the job but did not have health insurance or workers’ compensation. Seeing the problems that resulted from his father’s difficulties, when Schultz built Starbucks he provided comprehensive health insurance for employees who worked as few as 20 hours a week. Schultz’s style of leadership was triggered by his childhood experience (“Howard Schultz,” 2008).

Authentic leadership is a unique approach to understanding leadership due to its focus on leaders’ self-concept and their corresponding self-expression (Lemoine et al., 2019). As such, authentic leadership is consistent with the movement of positive organizational behavior with its emphasis on an individual’s personal experiences, traits, and development to enhance organizational performance (Yavuz, 2020).

As the theory of authentic leadership develops further, other antecedent factors that influence the process may be identified. To date, however, it is positive psychological capacities, moral reasoning, and critical life events that have been identified as factors that are influential in a person’s ability to become an authentic leader.

HOW DOES AUTHENTIC LEADERSHIP WORK? In this chapter, we have discussed authentic leadership from a practical and theoretical perspective. Both perspectives describe authentic leadership as a process that develops in leaders over time; however, each perspective provides a different description for how authentic leadership works.

The practical approach provides prescriptions for how to be authentic and how to develop authentic leadership. For example, the George approach focuses on five characteristics leaders should develop to become authentic leaders. More specifically,

George (2003) advocates that leaders become more purposeful, value centered, relational, self-disciplined, and compassionate. The essence of authentic leadership is being a leader who strongly demonstrates these five qualities.

Rather than simple prescriptions, the theoretical approach describes what authentic leadership is and what accounts for it. From this perspective, authentic leadership works because leaders demonstrate self-awareness, an internalized moral perspective, balanced processing, and

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