Instruction: Read the case provided and answer the following question.Question:What leadership theories can you identify in the waiter rule? Provide atleast two (2) and justify. CASE 2: THE WAITER RULE: WHAT MAKES FOR A GOODCEO?As the topic of corporate governance has been in the news more and more during the past several years,it is useful to reflect on what boards of directors must do in terms of their roles and responsibilities. Actingon behalf of shareholders, one of the board's most important jobs is the selection of the CEO, who willprovide strategic direction for the firm, and in turn, hire the top management team. But how does a boardgo about hiring a CEO? Certainly, this has got to be one of the toughest jobs of selection in the businessworld.In recent years, so many contentious issues have surrounded CEO that the board's task is no small one.So many CEOS have been implicated in ethics scandals, and so many of them have been criticized forwhat the public considers excessive compensation. Today especially, boards want to be sure they hireCEOS with high integrity and impeccable character. It is a lofty goal, and things don't always turn out theway boards wish. With a record number of CEO firings in the past five years, it is little wonder boards ofdirectors are always seeking insights as to how to make these selection decisions.Businesspeople are always on the alert for guidance, suggestions, and tips that would make hiring moresuccessful or run more smoothly. But if an elusive quality such as character is so important, how doesone gauge a prospective CEO's or top executive's character? Or, for that matter, how can we gauge thecharacter of any level of management? Surely this is a vital ingredient no matter what the level ofmanagement in the organization.Swanson's Unwritten Rules. In a recent (2006) USA Today article, it was revealed that Bill Swanson,CEO of Raytheon, the defense contractor based in Waltham, Massachusetts, has eighty thousandemployees and more than $22 billion in annual sales, had published a booklet containing 33 briefleadership observations. The booklet was titled Swanson's Unwritten Rules of Management. It turns outthat Raytheon has given away 300,000 copies of the booklet to members of its own organization and tovirtually anyone who inquires about it. The book, filled with common sense maxims, observations, rules,and guidelines, is something of a cult hit in corporate America. Among the 33 guidelines or rules compiledin the booklet is one rule that Swanson has said never fails in terms of helping to assess someone'scharacter.The Waiter Rule. Known as the "Waiter Rule," the observation basically says that "a person who is niceto you but rude to the waiter, or to others, is not a nice person." Several CEOS and other corporateexecutives have all agreed with the waiter rule. They basically concur that how a privileged corporateexecutive treats people in subordinate roles, whether they be waiters, clerks, maids, bellmen, golfcaddies, or any other service-type worker, reveals insights into the executive's character that should betaken into consideration in hiring decisions.Office Depot CEO Steve Odland recalls that when he was working in a restaurant in Denver many yearsago, he spilled a glass of purple sorbet all over the expensive white gown of an apparently important andrich woman. Though it occurred more than 30 years ago, he can't get the spill out of his mind. But whatstruck him most was her reaction to his careless spill. The woman responded in a very kind andunderstanding way. She kept her composure and in a calm voice said, "It's okay. It wasn't your fault."Years later, the now-CEO of Office Depot recalls what he learned about this incident: "You can tell a lotabout a person by the way he or she treats the waiter." Character Revealed. As it turns out, just about every CEO has a waiter story to tell. The opinion theyhold in common, moreover, is that the waiter rule is a valid way to gain insights into the character of aperson, especially someone who may be in a position of authority over thousands of workers. The co-founder of Au Bon Pain, the leading urban bakery and sandwich café, Ron Shaich, became CEO ofPanera Bread. He tells the story of interviewing a woman for general counsel who was "sweet" to him butturned "amazingly rude" to the person cleaning tables. She didn't get the job.Author Bill Swanson is quoted as having written: "Watch out for people who have a situational valuesystem, who can turn the charm on and off depending on the status of the person they are interactingwith." Related to this observation, Steve Odland of Office Depot has been quoted as saying, "People withsituational values have situational ethics, and those are people to be avoided."

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What leadership theories can you identify in the waiter rule? Provide atleast two (2) and justify.

Understanding Business

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