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Leaders expect their followers to be loyal and to be able to depend on their loyalty. Good leaders understand that there is a difference between real loyalty and a related but different concept - fealty. Smart leaders understand that fealty is demanded whereas loyalty is earned. In this article, the author notes some things that leaders can do to earn loyalty.

Look into the soul of any great leader and you will find a good leader. But, if only that were the case. Some leaders, those who crave and bathe in the spotlight, are in fact not so great. Others, who are highly effective (and modest) and possess the five key characteristics this author describes, are good leaders first and foremost. Which is what, in the end, makes them great.

Louise Chen must decide what performance assessment to give one of her employees who has, uncharacteristically, failed to meet one of her key objectives for the year. The situation is difficult for several reasons; the causes of the unacceptable performance are not clear; the employee has previously received excellent appraisals, including a recent one by the vice-president; and the employee was absent for a good part of the year on maternity leave. The various factors that influence sustained performance (ability, motivation, resources, role clarity, reinforcement) are examined, as well as steps leaders can take in improving performance of those for whom they are responsible.

Louise Chen must decide what performance assessment to give one of her employees who has, uncharacteristically, failed to meet one of her key objectives for the year. The situation is difficult for several reasons; the causes of the unacceptable performance are not clear; the employee has previously received excellent appraisals, including a recent one by the vice-president; and the employee was absent for a good part of the year on maternity leave. The various factors that influence sustained performance (ability, motivation, resources, role clarity, reinforcement) are examined, as well as steps leaders can take in improving performance of those for whom they are responsible.

HSBC is one of the largest and most global financial institutions in the world. The company has identified Bital, Mexico's fourth largest bank, as a potential acquisition target. Negotiations have come down to the wire, and the controlling Mexican shareholders are trying to get HSBC to raise its offer. Is it worth it? HSBC must decide on both strategic and short-term financial criteria under some degree of uncertainty as illuminated by a due diligence process. The HSBC executive who has handled the acquisition at a local level, and would be chief executive officer of HSBC Mexico should the deal go ahead, is assessing the pros and cons of the acquisition and must also identify the priorities which he and his team would have to address, including culture change issues, re-branding Bital as HSBC Mexico, personnel issues and maintaining the continuity of the business.

The new senior vice president of marketing at Vista-Sci Health Care Inc. must decide which of two very strong yet very different candidates he should promote to the position from which he has just been promoted. Both candidates have demonstrated strengths and weaknesses in their current jobs; the question is whether or not these competencies and other personal characteristics make them a good fit for the new role.

HSBC is one of the largest and most global financial institutions in the world. The company has identified Bital, Mexico's fourth largest bank, as a potential acquisition target. Negotiations have come down to the wire, and the controlling Mexican shareholders are trying to get HSBC to raise its offer. Is it worth it? HSBC must decide on both strategic and short-term financial criteria under some degree of uncertainty, as illuminated by a due diligence process. The HSBC executive who has handled the acquisition at a local level, and would be CEO of HSBC Mexico should the deal go ahead, is assessing the pros and cons of the acquisition and must also identify the priorities that he and his team would have to address, including culture change issues, rebranding Bital as HSBC Mexico, personnel issues, and maintaining the continuity of the business.

Jonathon Elderslie, recently retired after running his own company for 30 years, must decide what questions he should ask before deciding whether to join the board of directors of a publicly traded company. While flattered by the invitation, he has some concerns given the current climate of concern about corporate governance and, more specifically, the views about the role of a director expressed by one of his business acquaintances.

Jonathon Elderslie, recently retired after running his own company for 30 years, must decide what questions he should ask before deciding whether to join the board of directors of a publicly traded company. While flattered by the invitation, he has some concerns given the current climate of concern about corporate governance and, more specifically, the views about the role of a director expressed by one of his business acquaintances.

Elise Smart must decide what performance assessment to give one of her employees who has, uncharacteristically, failed to meet one of her key objectives for the year. The situation is difficult for several reasons; the causes of the unacceptable performance are not clear; the employee has previously received excellent appraisals, including a recent one by the vice-president; and the employee was absent for a good part of the year on maternity leave. The various factors that influence sustained performance (ability, motivation, resources, role clarity, reinforcement) are examined, as well as steps leaders can take in improving performance of those for whom they are responsible.

Elise Smart must decide what performance assessment to give one of her employees who has, uncharacteristically, failed to meet one of her key objectives for the year. The situation is difficult for several reasons; the causes of the unacceptable performance are not clear; the employee has previously received excellent appraisals, including a recent one by the vice-president; and the employee was absent for a good part of the year on maternity leave. The various factors that influence sustained performance (ability, motivation, resources, role clarity, reinforcement) are examined, as well as steps leaders can take in improving performance of those for whom they are responsible.

Organizations need a leadership pipeline where leaders use and develop their judgment to a point where it becomes wisdom. This author uses 25 years of teaching experience to conclude that leaders can be developed within a company. The challenge for human resource development is to accelerate the development of high-quality leadership in organizations, increase the yield of mature leaders from a pool of high potentials, and create a pipeline of management talent that delivers leaders where and when they are needed. Organizations should involve the expertise of senior executives in the recruitment process and hire talented individuals. These individuals should be channeled into the right experiences that encourage individual development. Learning should be combined with doing so practical skills are gained and development must be integrated with personal career management and organizational development. People in development programs must be monitored for dedication levels and high-potentials should be given frequent performance reviews and constant reassurance that they are high-potentials. The article also examines the extensive role of human resource development in development. The best organizations centralize ownership of high-potential leaders rather than delegating responsibility to individual departments. Human Recourses should ensure that leadership development is connected to broader organizational strategy, integrate critical HR systems around the leadership development challenge, manage the leadership development process, advice and consult on individual career plans , brief management on developments in leadership thinking, seek and evaluate outside leadership development resources and benchmark leadership development practices against high-performing organizations.

Procter & Gamble has been in Eastern Europe for 2 1/2 years. The case outlines the problems, missed opportunities and difficulties Procter & Gamble has had in transplanting their corporate culture onto the newly liberalized economies of Eastern Europe. The case requires students to generate alternatives for Procter & Gamble's future strategy in Eastern Europe given the political, economic, societal, and technological (PEST) environment.

Procter & Gamble must determine an entry strategy for Eastern Europe. The case examines the former Soviet Bloc countries, the opportunity they provide for a business endeavor like Procter & Gamble, and the product choices Procter & Gamble has available to them. Students must examine the political, economic, societal, and technological (PEST) environment and determine if the newly liberalized economies of Eastern Europe provide appropriate investment opportunities for Procter & Gamble. Students must also determine the scope of the necessary investment, the time profile and the difficulties it may face. A follow-up case (9A97H002) is available.

Several months after a management incentive program (MIP) is introduced, various divisions are asked to provide feedback on staff reaction, award determination, communication and delivery. Building on (A) case, case 9A92C003, this case provides details on the results of the implementation. Changes made are presented, as well as detailed feedback from award recipients and non-recipients.

The manager incentive compensation, human resources division is wondering what effect, if any, non-payment of the management incentive program (MIP) award would have on employees. She is also wondering whether the MIP is achieving the desired results, and what changes are needed to increase employee acceptance of the program. A supplement to this case bearing the same name, case 9A92C004, addresses the employee's acceptance of the MIP.

A newly appointed manager of customer services for a department store, must decide whether or not to offer a job to an employee who was recovering from a serious illness, and who might experience a relapse if she took on this high-stress position.